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Recruitment and Placement Contracting

Private Recruitment Private Recruitment Job Contracting Labor-Only Contracting

Agency Entity
Citizenship Filipino citizens or corporations, partnerships or entities Elements: (RSC) Elements:
requirement at least 75% of the AUTHORIZED and VOTING 1. The contractor tor subcontractor must be 1. The contractor or subcontractor does not
CAPITAL STOCK of which is OWNED and REGISTERED in accordance with the rules and have SUBSTANTIAL CAPITAL or
CONTROLLED by Filipino citizens. carries a distinct and independent business INVESTMENT which relates to the job, work
Change of In SINGLE PROPRIETORSHIP, change of the owner undertakes to perform a job, work or service its own or service to be performed, and the
ownership shall cause the automatic revocation of the license. responsibility, according to its own manner and employees recruited, supplied or placed by
HOWEVER, in Corporation, partnership or entity, it does method, and free from control and direction of the such contractor or subcontractor are
not affect their personality. principal in all matter connected with the performance performing activities which are directly related
Capitalization For single or corporations, the minimum net worth of the work, except as the result thereof. to the main business of the principal; or
requirement or paid-up capital requirement for LOCAL 2. The contract has SUBSTANTIAL CAPITAL and 2. The contractor or subcontractor DOES NOT
EMPLOYMENT is P1Million. investment; and, EXERCISE CONTROL over the performance
However, for OVERSEAS EMPLOYMENT, the 3. The service agreement ensures COMPLIANCE with of the work of the contractual employee.
minimum net worth requirement or paid-up capital all the rights and benefits under Labor Code.
requirement is P2Million, provided, for corporation,
those with existing licenses shall within 4yrs from
effectivity hereof, shall increase their capitalization or
paid-up capital of P250,000.00 every year.
Right to charge It can CHARGE fee, It does NOT CHARGE Substantial Capital refers to the paid-up capital stocks/shares of at-least P3Million in cases of corporations,
fee directly or indirectly, from fee, directly or indirectly, partnerships and cooperatives; in the cases of single proprietorship, a net worth of at least P3M.
workers or employers or from workers or
both. employers or both.
Persons whom Overseas employment Overseas and domestic Existence of TRILATERAL RELATIONSHIP, the ff. contracts exist:
they are allowed employment 1. Contract for specific job, work or service between the principal and contractor / subcontractor.
to recruit 2. Contract of employment between contractor / subcontractor and its workers: Principal, Contractor /
subcontractor and contractual workers.
Source of License Authority Permissible Prohibited by law
Liability SOLIDARY LIABLE with the foreign Er for claims and  The Er/Principal is merely an INDIRECT Employer by  The Er/Principal is treated as DIRECT
liabilities which may arise in connection with the operation of law of his contractor’s Em. Employer of contractor’s employees in all
implementation of the contract.  The Principal becomes SOLIDARILY LIABLE with the instances. The contractor is deemed AGENT of
contractor in the event the latter fails to pay the Ems’ the employer.
wages and for violation of labor standard laws. The  The Principal becomes SOLIDARILY LIABLE
liability, however, does not extend to the payment of with the contractor not only for unpaid wages
BACKWAGES or SEPARATION PAY of ems who are but also for all rightful claims of the ems under
illegally dismissed. (Rosewood Processing v. NLRC) the Labor Code and ancillary laws (SMC v.
MAERC Integrated Services, Inc.)
Reimbursement NA  The principal is entitled to be reimbursed by the contractor in case the latter failed to pay the wages of the

Labor Code Benefits Labor Legislations Benefits
EMPLOYEES 8-hr OT MR NSD Reg. Sp. SIL SB VL PL BWL ML/PL SL 13th M. RP Other Facilities Supplements
(25%) (10%) HP HP (1yr.) pay Bonuses (WD) (NWD)
Regular Employee (Em.) A MP A A A A A A MP A A A A A A MP MP MP
Minimum Wage Earner Em. A MP A A A A A A MP A A A A A A MP MP MP
Gov. Em. / Mngr. Em. / Field NA NA NA NA NA NA NA A MP A A A A NA A MP MP MP
Personal unsupervised /
Mem. of the family of the Er.
Domestic Helper - DH (RA A NA NA NA NA NA A A MP A A A NA NA NA MP MP MP
10361); (UND ME)
Establishment regularly NA NA NA NA NA NA NA A MP A A A A A NA MP MP MP
employing less than 10 Em.
Establishment regularly A MP A A A A A A MP A A A A A A MP MP MP
employing more than 10
Piece-rate workers Em. NA NA NA NA NA NA NA NA MP NA NA NA NA NA NA MP MP MP
Piece-rate workers A MP A A A A A A MP A A A A A A MP MP MP
supervised by Er.
Part- time faculty member NA NA NA NA NA A NA NA MP NA NA NA NA NA NA MP MP MP
(independent contractor)
Industrial Homeworker NA NA NA NA NA NA NA A NA NA NA NA NA NA NA MP MP MP
Movie Actor – independent A MP A A NA NA NA A NA NA NA NA NA NA NA MP MP MP

13th Month Pay – Em have worked at least 1 month during RP – Retirement Pay
A – applicable the calendar year. Computation, it includes only the Basic Other Bonuses – 14th month pay, etc.
NA – not applicable salary, it excludes OT, NSD, HP etc.. Facilities – part of the wage; deductible from the wage
UNDME – usually necessary and desirable for the VL – Vacation / Sick Leave – it a management prerogative Supplements – no wage deductible, they are granted for the
maintenance and enjoyment of the Er in his family home. or based on CBA; not commutable. convenience of the employer.
MP – Management Prerogative; inherent right to regulate; it PL – Parental Leave; not more than 7 days every year is
must be exercised in good faith and w/out grave abuse of granted to any solo parent employee who has rendered
discretion; service at least 1 yr. NOTE:
OT – Overtime pay (25%/30%) BWL – Battered Woman Leave; it is entitled to a female Non-Diminution of Benefits (CURE):
MR – Meal and Rest period; less than 20 mins – employee who is a victim of (physical, sexual or 1. The practice is CONSISTENT and deliberate;
compensable. psychological) violence is entitled to 10 days paid leave; if 2. The diminution or discontinuance is done
NSD – Night Shift Differential pay (10%) from 10pm to 6am; not used, not convertible to cash UNILATERALLY by the Er;
Reg. HP – Regular Holiday Pay (200%); compensable even ML – Maternity Leave; all female pregnant must be 3. The grant of the benefit is founded on a policy or
if unworked subject to conditions. employed at the time of Miscarriage, Abortion or Delivery has RIPENDED into practice over a long period;
Sp. HP - Special Holiday Pay (130%); not compensable if (MAD); it shall be paid only for the first 4 MDs; it may not be and
unworked. included in computing the 13th month pay 4. The practice is not due to ERROR in the
SIL – Service Incentive Leave of 5 days (mandatory by PL – Paternity Leave; every Married male employee in construction or application of doubtful or difficult
law); convertible to cash, except for DH; employee (Em.) private sector shall be entitled of 7 days with full pay for the question of law.
must render at least 1 year of service. first four deliveries by his Lawful spouse; if not consumed,
SB – an Em has rendered at least 1 month of services is not convertible to cash;
entitled to be covered of Social Benefits: SSS, Phil. Health, SL – Special leave or Surgical Leave; 2 month’s leave
Pag-Ibig; there must be an existence EEr. under Magna Carta of Women, RA 9710;
Organized establishment (w/ union) Unorganized establishment (w/out union)
Wage distortion 1. Er and union shall negotiate to correct the distortion; 1. The EEs shall endeavor to correct the distortion;
(non-strikeable) 2. They resolve any dispute arising therefrom through GRIEVANCE PROCEDURE under 2. Any dispute therefrom shall be settled through National Conciliation
their CBA; Mediation Board (NCMB);
3. If unresolved, it shall be resolved through VOLUNTARY ARBITRATION`. 3. If it remains unresolved after 10 days of conciliation, it shall be referred
to the NLRC.
4. Disregard nos. 2 and 3, unless agreed by the parties that the dispute
shall be decided by the Voluntary Arbitrators within 10 days from the
time the said dispute was referred to the Voluntary Arbitration (VA).
Check-Off Union members and nonunion members who are enjoying the benefits provided under the
CBA, union dues can be AUTOMATICALLY DEDUCTED by the employer from the NA
employees’ salary without authority from them. The employer is responsible to remit the union
dues to the certified bargaining agent.

No special assessment, attorney’s fees, registration fees or any other extra-ordinary fees
may be checked off by the employer from any amount due an employee without an
INDIVIDUAL WRITTEN AUTHORIZATION duly signed by the employee.
1. those MANDATORY activities provided under the Labor Code; or
2. when non-members of the union AVAIL of the benefits of the CBA.
Wage Order  Any party aggrieved by the Wage Order issued by the Regional Tripartite Wage and Productivity Board (Regional Board) may appeal such order to the National Wages
and Productivity Commission (Commission) within 10 days from the publication of such order.
 The Commission shall be given 60 days to decide such appeal from the filing thereof.
CBA w/ CBA w/out CBA the LO can file a PETITION for CERTIFICATION ELECTION at any time,
however subject to the ONE ELECTION PER YEAR RULE.
 The CBA has 5-year lifespan with respect  the LO can file a PETITION for
to representation; 3 years for economic CERTIFICATION ELECTION, at any time,
provisions; subject to the DEADLOCK BAR RULE.
 the LO can file a PETITION for
60 day freedom period (CONTRACT

 Maintenance of membership clause – requires all  For violation of a CBA to constitute ULP, the violation
 Close shop clause – all employees are required to be members who are union members at the time of the must be a violation of its ECONOMIC PROVISION
members of the union at the time of hiring; they must execution of the CBA to maintain their membership of and it must be GROSS and FLAGRANT.
remain members of good standing during the period of good standing, as a condition of continued
employment as a condition of continued employment. employment.

Secretary of Labor NLRC Bureau of Labor Relations (BLR) Voluntary Arbitration
1. Visitorial power at any time; 1. Simple money claims exceed P5k arising from 1. Federation/National 1. Cases arising from the interpretation or
2. Regulatory power to regulate and restrict the EEr; Union/Trade Union Center implementation of CBAs;
recruitment and placement of all agencies; 2. Certified cases by the Sec. of Labor for registration / revocation and 2. Cases arising from the interpretation or
3. Exclusive and original jurisdiction to act on compulsory arbitration; cancellation cases enforcement of company personnel
appeals or petition for review of disciplinary 3. Injunction cases; 2. Appellate jurisdiction over policies;
action cases decided by POEA; 4. Contempt cases decided by LA; decisions decided by the Med- 3. Cases arising from the interpretation and
4. Existence of EEr, it shall have the power to 5. Exclusive appellate jurisdiction over cases Arbiter; implementation of the productivity
issue compliance orders and the writ of decided by the LA; 3. Concurrent Jurisdiction w/ MA incentive programs under RA 6071;
execution thereof to give effect to the labor 6. Exclusive appellate jurisdiction over cases over inter-union and intra-union 4. Wage distortion, when there is CBA
standards provisions under Labor Code and decided by the RD in the exercises of its disputes; 5. Those cases under the exclusive
other labor legislations; adjudicatory function under Art. 129, LC; 4. Inter-union conflicts; jurisdiction of the LA, which the parties
5. It may order stoppage of work or suspension 7. Power to issue TRO or Injunction; 5. Inter-union conflicts; agreed to submit it for voluntary
of operations of any unit or department of an 8. Ocular inspection 6. Other related labor disputes arbitration.
establishment when non- compliance with
the law or IRR poses grave and imminent APPEAL: RULE 65, proceed to CA (St. Martin APPEAL: RULE 43, proceed to
danger (GID) to the health and safety of Funeral v. CA) CA. NOTE: It must undergo first with the
workplace; GRIEVANCE MACHINERY as stipulated in
6. Appellate jurisdiction of decisions decided by the CBA.
the BLR;
APPEAL: RULE 43, proceed to CA.
APPEAL: RULE 65, proceed to CA (St. Martin
Funeral v. CA)

POEA Regional Director Labor Arbiter (LA) Regional Office-Med Arbiter Regional Trial Courts
(RD) (RTC)
1. Regulatory functions 1. Simple money 1. Monetary claims of OVERSEAS 1. Independent union/chartered 1. As gen. rule, it has exclusive jurisdiction
2. Administrative cases claims do not CONTRACT WORKERS arising from EEr local registration / revocation / over cases / disputes decided by a
involving violations of exceed P5k under RA 8042 as amended by RA 10022 cancellation; judicial / quasi-judicial body NOT within
licensing rules and w/out claim for (NOTE: perfection is actual deployment, 2. Complaints or petitions their exclusive jurisdiction;
regulations of reinstatement of otherwise, RTC has jurisdiction); involving labor unions with 2. Post-employment disputes;
recruitment and an Em or DH 2. Any claims, including for damages, arising independent registration, 3. Action for Declaratory Relief with
employment agencies or employed in from any contract or law involving Filipino chartered local; Annulment of a CBA provision as a
entities; domestic or workers for overseas deployment; 3. CBA registration of cause of action;
3. Disciplinary action cases household 3. Unfair Labor Practices by the Er or LO; independent local and 4. Enforcement of foreign judgement
and other special cases service, 4. Termination disputes; chartered local involving labor disputes;
which are administrative summary 5. Claims for damages arising from EEr; 4. Check-off disputes; 5. Criminal action arising from Illegal
in character; proceeding and 6. Questions involving legality of strikes or lock- 5. Petition for certification of recruitment; such as estafa;
4. It has CONCURRENT non-litigious in out; election; 6. No EEr exist and no issue is involved
JURISDICTION with nature; 7. Claims involving money claims exceeding which may be resolved by reference to
DOLE Sec. to suspend P5K, wages, rates of pay, hours of work and APPEAL: Petition for Review w/ the Labor Code, other labor statutes or
and cancel a license. other terms of employment, regardless BLR. any CBA;
accompanied by a claim of 7. Claims of an Independent Contractor to
APPEAL: Petition for Review APPEAL: REINSTATEMENT, except claims for Ems’ adjust contractor’s fee;
w/ Secretary of Labor. SSS, Phil. Health, maternity benefits; 8. Intra-corporate disputes w/c fall under
8. Wage Distortion disputes in unorganized PD 902-A;
establishments not voluntarily settled by the
parties; APPEAL: RULE 43, proceed to CA.
9. Cases under visitorial and enforcement
powers of the DOLE Secretary.
10. Enforcement of COMPROMISE
AGREEMENTs when there is non-
compliance of the parties; and
11. Other cases as may be provided by law.

APPEAL: Petition for Review w/ NLRC.


REASONABLE CAUSAL CONNECTION RULE – if there is reasonable connection between the claim asserted and EE relation, it is within the jurisdiction of labor tribunals. Otherwise, it is the
regular courts that have jurisdiction;
SOLE REFERENCE TO LABOR LAW RULE – if the principal cases arises from labor laws, statutes, employment contracts, labor principles or CBAs, it is within the jurisdiction of labor

Lockout Strike
Economic ULP (political)
Grounds 1. Collective bargaining deadlock (CBD); or
2. Unfair Labor Practice (ULP by Employer or Employee)
Initiator(s) Employer Collective Bargaining Agent 1.Collective Bargaining Agent; or
2.Legitimate Labor Organization on behalf of its
Nature Temporary stoppage of work as a result of an Voluntary Strike to compel the Involuntary Strike; an act of self-defense where the Er
industrial labor dispute management to grant its demands committed ULP against them
Procedure 1. A notice of strike or lockout must be FILED with (National Conciliation Mediation Board) NCMB-DOLE:
a. at least 30 days from intended date thereof, if the issue arose from CBD; or
b. at least 15 days from intended date thereof, if the issue arose from ULPs
2. A notice must be SERVED to NCMB-DOLE at least 24 hours prior to the taking of strike or lockout VOTE by secret balloting informing said office of
the decision to conduct a strike or lockout vote, and the date, place and time thereof;
3. A STRIKE VOTE must be taken where a MAJORITY vote of the members of the union (in the bargaining unit concerned) must approve it, obtained
by a secret ballot in a meeting duly called for the purpose; or
LOCKOUT VOTE must be taken where a MAJORITY of the members if the Board of Directors of a corporation must approve it, obtained by a secret
ballot in a meeting duly called for the purpose;
4. A strike or lockout vote REPORT should be submitted to the NCMB-DOLE at least 7 days before the intended date of strike or lockout subject to the
COOLING-OFF PERIOD; NOTE: it is the period given to the NCMB to mediate and conciliate the parties;
5. The Cooling-off period prescribed by law should be observed, except in cases of UNION BUSTING; and
6. The 7-day waiting period or STRIKE BAN after submission of strike or lockout vote to the NCMB-DOLE should be fully observed in ALL CASES,
including union busting.

 Failure of the UNION to serve the company a copy of the NOTICE OF STRIKE is a clear violation of the LABOR CODE and it will not trigger the
running of the cooling-off period; thus, the strike is considered unlawful;
 A no-strike, no-lockout provision in the CBA is valid stipulation although the clause may be invoked by an Er only when the strike is ECONOMIC in
nature or one which is conducted to force wage, but not to ULP cases;
 Non-compliance with the PROCEDURE in conducting a strike; thus, the strike conducted is ILLEGAL (BAR 2015)
Assumption of Jurisdiction  It is within the discretion of the SECRETARY OF LABOR whether to assumes JURISDICTION over a strike when there exists a labor dispute causing
or likely to cause strike or lockout in an industry INDISPENSABLE to the NATIONAL INTEREST;
 It is in the OPINION of the Sec. of Labor to determine a certain industry is impressed with national interest;
 The assumption of jurisdiction or certification order to the NLRC for COMPULSORY ARBITRATION is in the nature of POLICE POWER measure;

1. Automatically ENJOINS the intended or impending STRIKE or LOCKOUT;
2. If one has already taken place at the time of assumption or certification, all striking or locked-out employees shall within 24 hours return to
work from report of an assumption or certification order; and
3. The Er shall immediately resume operations and re-admit all workers under the SAME TERMS and CONDITIONS prevailing before the strike
or lockout.
Hiring or Replacement  The hiring of replacement for the strikers during a strike is not ULP act of the employer;
 Such hiring may even be done on PERMANENT BASIS in case of ECONOMIC STRIKE and an
employer is entitled to carry out his business.
 However, in ULP STRIKE, such replacements may NOT BE PERMANENTLY EMPLOYED.
Reinstatement Striking employees are ENTITLED TO REINSTATEMENT, irrespective whether or not the strike was the consequence of the Er’s ULP.
 Union workers who knowingly participate in an ILLEGAL STRIKE; or
 Any strikers / union member who knowingly participate in the COMMISSION OF ILLEGAL ACTS during the strike; it is sufficient ground for
Backwages The strikers are NOT ENTITLED TO BACKWAGES on the principle that “a fair day’s wage” accrues only for a fair day’s labor or no work, no pay
 Involuntary strikers illegally locked-out
 Voluntary strikers in ULP strike ho offered to return to work unconditionally; and
 If there is a strike-duration pay in the CBA.

Employment Requisites To attain REGULARITY Backwages Reinstatement Separation Pay Termination Notice
by operation of law
Regular 1. Engaged to perform activities which are USUALLY NECESSARY or In case of illegal dismissal, the employee is ENTITLED to full Twin Notice Rule – 1st
DESIRABLE in the UNSUAL BUSINESS or TRADE of the employer backwages from the time he was illegally dismissed and be notice, to apprise the
(UND-UBTE) – NATURE OF WORK TEST; restored from his position from which he has been unjustly employee of the grounds of
2. He has rendered at least 1 year of service, whether continuous or removed. However, under the DOCTRINE of STRAINED termination and be given of
broken, with respect to the activity in which he is employed for; RELATIONS, where the employment has become so strained the opportunity to be heard;
(PERIOD SERVICE TEST) or to preclude a harmonious working relationship, the employee and 2nd notice, the decision
3. He has been allowed to work after a PROBATIONARY PERIOD is accord with backwages and SEPARATION PAY. of the Er.
Probationary The employee undergo a TRIAL PERIOD 1. Extension of employment; On the other hand, employee is not entitled to the same if Same as above, plus:
not more than 6 months, during which the or cause of dismissal is due to an act imputable to him. 1. Just cause;
Er determines his fitness to qualify for 2. If NO STANDARD made 2. Fail to meet the standards
regular employment based on known to the employee. for qualification for regular
reasonable standard MADE KNOWN TO employment.
HIM at the time of his engagement.
Contractual – He is governed by the contracts signed by NA OFW’s who are terminated WITHOUT JUST, VALID or Same with regular
OFW him and by his employer every he is AUTHORIZED CAUSED are entitled to full reimbursement of employment
rehired; placement fee and deductions made with legal interest per
Art. 1306, NCC, parties may stipulate annum; and salaries for the UNEXPIRED portion of the
terms and conditions, provided they are employment contract.
not contrary to law, morals or public policy
Casual 1. Engaged to perform activities which CONTINUOUS HIRING more In case of illegal dismissal, the employee is ENTITLED to full Same with regular
are NOT USUALLY NECESSARY or than 1 year. backwages from the time he was illegally dismissed and be employment
DESIRABLE in the UNSUAL restored from his position from which he has been unjustly
removed. However, under the DOCTRINE of STRAINED

BUSINESS or TRADE of the RELATIONS, where the employment has become so strained
employer (NUND-UBTE); or to preclude a harmonious working relationship, the employee
2. He has rendered NOT MORE THAN is accord with backwages and SEPARATION PAY.
1 year of service, whether
continuous or broken, with respect to
the activity in which he is employed
Project 1. The employment has been fixed for a 1. The employment of project Terminated WITHOUT JUST, They are NOT ENTITLED. Completion of the project
specific project or undertaking, the has been EXTENDED long VALID or AUTHORIZED Exception: terminates the contract the
COMPLETION or TERMINATION of after the supposed project CAUSED is entitled to salaries if the projects they are Employer is obliged to
which has been determined at the has been finished or for the UNEXPIRED portion of working on have not yet render report to the DOLE
time of engagement of the employee; CONTINUOUS HIRING; the employment contract. been completed when their on the termination.
2. The specific project phase is stated in and services are terminated.
the employment contract; 2. The tasks performed are
3. The duration of the specific / identified UND-UBTE.
undertaking for which the worker is
engaged is reasonable determinable;
4. The employee, while not employed
and awaiting engagement, is free to
offer his service to any other
5. Art. 1306, NCC, parties may stipulate
terms and conditions, provided not
contrary to law, morals or public policy
Seasonal An employment arrangement where an 1. The tasks performed are Same as with regular employee Same with regular
employee is engaged to work during a UND-UBTE; and employment
particular season on an activity that is 2. The employment is
to perform the same task
for more than one year.

Authorized Causes Requisites Separation Pay

Redundancy / Reorganization 1. Written notice served both the employee and the DOLE at least 1 month prior to Payment of SP equivalent to at least 1 month pay salary or
the intended date of termination; one-half month salary for every year of service, w/chever is
2. Good faith in abolishing the redundant position; and GREATER.
3. There must be a FAIR and REASONABLE CRITERIA in ascertaining what
positions to be declared redundant.
Retrenchment 1. The losses expected are SUBSTANTIAL and not merely de minimis in extent; Same as above.
2. The substantial loss are IMMINENT and can be perceived by the employer in
good faith;
3. The retrenchment is NECESSARY to prevent the expected loss; and
4. It must be proved by sufficient and convincing evidence.

NOTE: Last in, First out Rule.

Closure or Cessation of Operation of 1. The closure of the business must be in good faith; Same as above.
the Establishment 2. There is NO OTHER OPTION available to the employer except to close the
operations However, where the CLOSURE is due to SERIOUS
BUSINESS LOSSES or due to an act of the government, no
separation pay is required.
Disease 1. The employee is SUFFERING from a disease; Same as above.
2. His continued employment is either prohibited by law, prejudicial to his health
or to his co-employees;
3. There is a certification by a competent public health authority that the disease
of the employee cannot be cured within a period of 6-month;
4. There must be notice of termination based on the ground to be served to the
concerned employee and the DOLE at least 30 days prior to the effectivity of
the termination.

Rules – Compensable Exceptions
 Direct Premise Rule – in order for an accident to To be compensable, the injury must be sustained:
be considered as compensable, the injury
sustained must be at the place of work; otherwise, 1. When the employee is proceeding to or from his workplace, it must be a continuing act and not diverted to any other activity;
it is not compensable. 2. Ingress-Egress / Proximity rule – the employee is about to enter or leave the workplace by way of the exclusive or customary
 Going and Coming Rule – in the absence of means of ingress and egress;
special compelling circumstances, an Em injured 3. Special Errand Rule – the employee is charged to do some duty or errand connected w/ his employment; or
in going or coming from, his place of work is 4. The Employer provides a means of transportation to or from the workplace;
excluded from the benefits of workmen’s 5. Special Engagement Rule – injury sustained during temporary cessation of work, but ARISES OUT and IN THE COURSE of
compensation acts. employment, such as field trip outings, within or outside the workplace;
 Proximate Cause Doctrine – proximate cause 6. 24-hour duty rule – applies only injury or death sustained by soldiers, policemen and firemen by the NATURE OF THEIR WORK,
resulting the injury out of the employment, except when they are on vacation leave.
EXCEPT when the INDEPENDENT 7. Doing work at home PURSUANT to the REQUEST of the employer, except when done in voluntary;
INTERVENING CAUSE ensues ATTRIBUTABLE 8. Acts during EMERGENCY in the FURTHERANCE of the employer’s business or pursuant to habit or custom;
to claimant’s fault 9. Incidents of Employment Doctrine –
1. Acts of personal ministration for the COMFORT or CONVENIENCE of the employee;
2. slight deviation from work;
3. Acts for the BENEFIT of the EMPLOYER;
5. Act done to FURTHER the GOODWILL of the business
FORCE MAJEURE is not compensable, except when the accident is one ARISING OUT of EMPLOYMENT if the person so injured
 An Occupational Disease is compensable when
the illness or disease is obtained as a result of the
NATURE OF THE WORK of the employee;
 Increased Risk Theory – the claimant must
adduce reasonable proof of connection between
his work and the risk of contracting the disease or
that the risk contracting the disease was increased
by the claimant’s working conditions.


 To determine existence of EEr, if the nature of the work of the employment is USUALLY NECESSARY and DESIRABLE in the USUAL BUSINESS of the employer (UND-UBE); or
existence of control by the Employer to the methods or task assigned to the employee (CONTROL TEST);
 Management Prerogative to promote, transfer or demote personnel to other positions, provided it must be exercised in good faith and without abuse of discretion, or demotion or
diminution of benefits, when the interest of the company reasonably demands it (MP-GF);
 In transfer of ownership, the buyer is NOT DUTY-BOUND to ABSORB the employees of the selling corporation.

 PREVENTIVE SUSPENSION is valid if his continued employment would pose SERIOUS and IMMINENT THREAT to the LIFE or PROPERTY of the Employer or his co-employees (SIT-
LPE); the maximum period for such suspension is 30 days, otherwise, it constitutes CONSTRUCTIVE DISMISSAL;
 Constructive dismissal – if an act of the clear discrimination by the employer becomes so unbearable on the part of the employee that it could foreclose any choice by him, except to
forego his continued employment such as DEMOTION in Rank / DIMINUTION of pay / FLOATING STATUS of a security.
 Successor Employer doctrine refers to a sale or transfer in ownership of an entity that has been done in bad faith or defeat the rights of labor; there is no changes in EEr; consequently, the
buyer is obliged to absorb the displaced employees;