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1 2015 PRE WEEK NOTES On Labor Standards FOR CLASS USE
1 2015 PRE WEEK NOTES On Labor Standards FOR CLASS USE
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TOPIC NO. 1
FUNDAMENTAL PRINCIPLES AND POLICIES
A. CONSTITUTIONAL PROVISIONS
Labor relations and labor standards laws are not mutually exclusive.
They are complementary to, and closely interlinked with, each other. For
instance, the laws on collective bargaining, strikes and lockouts which are
covered by labor relations law necessarily relate to the laws on working
conditions found in Book III.
Who has the burden of proof to show that the dismissal of the
OFW is legal?
Burden of proof devolves on both recruitment agency and its foreign
principal.
DIRECT HIRING
What is direct hiring?
“Direct Hiring” refers to the process of directly hiring workers by
employers for overseas employment as authorized by the DOLE Secretary
and processed by the POEA, including:
1. Those hired by international organizations;
2. Those hired by members of the diplomatic corps;
3. Name hires or workers who are able to secure overseas employment
opportunity with an employer without the assistance or participation of any
agency.
TOPIC NO. 3
LABOR STANDARDS
A. HOURS OF WORK
1. COVERAGE/EXCLUSIONS
(Article 82, Labor Code)
MEAL BREAK
(Article 85, Labor Code)
What is the rule on time-off for regular meal?
Every employer is required to give his employees, regardless of sex, not less
than one (1) hour (or 60 minutes) time-off for regular meals.
WAITING TIME
(Article 84, Labor Code)
• What is covered by compensable working hours?
The following shall be considered as compensable hours worked:
a. All time during which an employee is required to be on duty or to be at
the employer’s premises or to be at a prescribed workplace; and
PART-TIME WORK
• What is part-time work?
“Part-time work” is “a single, regular or voluntary form of employment
with hours of work substantially shorter than those considered as normal in
the establishment.” A “part-time worker” is an employed person whose
normal hours of work are less than those of comparable full-time
workers.
Part-time work may take different forms depending on the agreed hours of
work in a day, the days of work in a week or other reference periods. In the
Philippines, however, the two most common and acceptable
forms are four (4) hours work per day and weekend work or two
(2) full days per week.
B. WAGES
COMMISSIONS
• What is “commission”?
“Commission” is the recompense, compensation or reward of an
employee, agent, salesman, executor, trustee, receiver, factor, broker or
bailee, when the same is calculated as a percentage on the amount of
his transactions or on the profit of the principal.
NON-DIMINUTION OF BENEFITS
COMPANY PRACTICE
• What is company practice?
Company practice is a custom or habit shown by an employer’s repeated,
habitual customary or succession of acts of similar kind by reason of which,
it gains the status of a company policy that can no longer be disturbed or
withdrawn.
To ripen into a company practice that is demandable as a matter of right,
the giving of the benefit should not be by reason of a strict legal or
Example:
(a) Hinatuan Mining Corporation and/or the Manager v. NLRC,4
where the act of the employer in granting separation pay to resigning
employees, despite the fact that the Labor Code does not grant it, was
considered an established employer practice.
BONUS
• What is the rule on its demandability and enforceability?
1 G.R. No. L-57636, May 16, 1983, 122 SCRA 267; 207 Phil. 2235.
2 G.R. No. 74156, June 29, 1988, 163 SCRA 71.
3 G.R. No. 163419, Feb. 13, 2008.
4 G.R. No. 117394, Feb. 21, 1997.
WAGE DISTORTION/RECTIFICATION
• What is wage distortion?
“Wage distortion” contemplates a situation where an increase in prescribed
wage rates results in either of the following:
1. Elimination of the quantitative differences in the rates of wages or
salaries; or
2. Severe contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure
based on the following criteria:
a. Skills;
b. Length of service; or
c. Other logical bases of differentiation.
Wage distortion presupposes a classification of positions and ranking of
these positions at various levels. One visualizes a hierarchy of positions
with corresponding ranks basically in terms of wages and other
emoluments. Where a significant change occurs at the lowest level of
REST PERIODS
1. WEEKLY REST DAY
• What is the duration of weekly rest period?
It shall be the duty of every employer, whether operating for profit or not,
to provide each of his employees a rest period of not less than twenty-
four (24) consecutive hours after every six (6) consecutive
normal work days.
A. Regular Holidays
New Year’s Day - 1 January
Araw ng Kagitingan - 9 April
Maundy Thursday
Good Friday
Labor Day - 1 May
Independence Day - 12 June
National Heroes Day - 25 August (Last Monday of
August)
Bonifacio Day - 30 November
Christmas Day - 25 December
Rizal Day - 30 December
LEAVES
2. MATERNITY LEAVE
PATERNITY LEAVE
PARENTAL LEAVE
(R.A. No. 8972)
• What is parental leave?
“Parental leave” is the leave benefit granted to a male or female solo
parent to enable him/her to perform parental duties and responsibilities
where physical presence is required.
SERVICE CHARGE
• What are the kinds of establishment covered by the law on
service charge?
The rules on service charge apply only to establishments collecting service
charges, such as hotels, restaurants, lodging houses, night clubs, cocktail
lounges, massage clinics, bars, casinos and gambling houses, and similar
enterprises, including those entities operating primarily as private
subsidiaries of the government.
SEPARATION PAY
What are the separation pays expressly provided under the
Labor Code?
The Labor Code prescribes the payment of separation pay only in the
Illustrative cases.
Yrasuegui v. Philippine Airlines, Inc., where the dismissal of
petitioner (an international flight attendant) due to his obesity was held
valid as an analogous cause under Article 282(e) of the Labor Code. The
Supreme Court, however, as an act of
social justice and for reason of equity, awarded him separation pay
equivalent to one-half (1/2) month’s pay for every year of service, including
his regular allowances. The Court observed that his dismissal occasioned by
his failure to meet the weight standards of his employer was not for serious
misconduct and does not reflect on his moral character.
J. WOMEN WORKERS
a. PROVISIONS AGAINST DISCRIMINATION
• What are acts of discrimination under the Labor Code?
(a) Payment of a lesser compensation, including wage, salary or other form
of remuneration and fringe benefits, to a female employee as against a male
employee, for work of equal value; and
(b) Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants solely on
account of their sexes.
• What are acts of discrimination under the Magna Carta of
Women?
R.A. No. 9710, otherwise known as “The Magna Carta of Women,” is a
comprehensive women’s human rights law that seeks to eliminate
discrimination against women by recognizing, protecting, fulfilling and
promoting the rights of Filipino women, especially those in marginalized
sector.
Based on the definition of the term “Discrimination Against Women”
in R.A. No. 9710, the following are considered discriminatory acts:
1. Any gender-based distinction, exclusion, or restriction which has the
effect or purpose of impairing or nullifying the recognition, enjoyment, or
exercise by women, irrespective of their marital status, on a basis of
equality of men and women, of human rights and fundamental freedoms in
the political, economic, social, cultural, civil or any other field;
2. Any act or omission, including by law, policy, administrative measure, or
practice, that directly or indirectly excludes or restricts women in the
recognition and promotion of their rights and their access to and enjoyment
of opportunities, benefits or privileges;
3. A measure or practice of general application that fails to provide for
mechanisms to offset or address sex or gender-based disadvantages or
limitations of women, as a result of which women are denied or restricted
in the recognition and protection of their rights and in their access to and
enjoyment of opportunities, benefits, or privileges; or women, more than
c. PROHIBITED ACTS
• What are the prohibited acts against women under the Labor
Code?
Article 137 of the Labor Code and its implementing rule consider unlawful
the followings acts of the employer:
1. To discharge any woman employed by him for the purpose of
preventing such woman from enjoying maternity leave, facilities
and other benefits provided under the Labor Code;
2. To discharge such woman on account of her pregnancy, or while on
leave or in confinement due to her pregnancy;
3. To discharge or refuse the admission of such woman upon returning to
her work for fear that she may again be pregnant;
4. To discharge any woman or any other employee for having filed a
complaint or having testified or being about to testify under the
• Who are the persons who may be held liable for sexual
harassment?
Work, education or training-related sexual harassment is committed by any
employer, employee, manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainor, or any other person who, having
authority, influence or moral ascendancy over another in a work or training
or education environment, demands, requests or otherwise requires any
sexual favor from another, regardless of whether the demand, request or
requirement for submission is accepted by the object of said act.
Further, any person who directs or induces another to commit any act of
K. EMPLOYMENT OF MINORS
(Labor Code and R.A. No. 7678, R.A. No. 9231)
L. HOUSEHELPERS
(Labor Code as amended by R.A. No. 7655,
Payment of wages:
1. To whom paid. - It should be made on time directly to the Kasambahay
to whom they are due in cash at least once a month.
2. Deductions, prohibition; when allowed. - The employer, unless
allowed by the Kasambahay through a written consent, shall make no
deductions from the wages other than that which is mandated by law such
as
for SSS, Philhealth or Pag-IBIG contributions.
3. Mode of payment. - It should be paid in cash and not by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object
other than the cash wage as provided for under this Act.
4. Pay slip. – The employer shall at all times provide the Kasambahay with
a copy of the pay slip containing the amount paid in cash every pay day, and
indicating all deductions made, if any. The copies of the pay slip shall be
kept by the employer for a period of three (3) years.
5. Prohibition on Interference in the disposal of wages. – It shall
be unlawful for the employer to interfere with the freedom of the
Kasambahay in the disposition of his/her wages, such as: (a) Forcing,
compelling, or obliging the Kasambahay to purchase merchandise,
commodities or other properties from the employer or from any other
person; or (b) Making use of any store or services of such employer or any
other person.
6. Prohibition against withholding of wages. – It shall be unlawful
for an employer, directly or indirectly, to withhold the wages of the
Kasambahay. If the Kasambahay leaves without any justifiable reason, any
unpaid salary for a period not exceeding fifteen (15) days shall be forfeited.
Likewise, the employer shall not induce
the Kasambahay to give up any part of the wages by force, stealth,
intimidation, threat or by any other means whatsoever.
M. EMPLOYMENT OF HOMEWORKERS
• What is impairment?
“Impairment” refers to any loss, diminution or aberration of
psychological, physiological, or anatomical structure or function.
• What is disability?
“Disability” means (1) a physical or mental impairment that substantially
limits one or more psychological, physiological or anatomical functions of
an individual or activities of such individual; (2) a record of such an
impairment; or (3) being regarded as having such an impairment.
• What is handicap?
“Handicap” refers to a disadvantage for a given individual, resulting from
an impairment or a disability that limits or prevents the function or activity
that is considered normal given the age and sex of the individual.
TOPIC NO. 4
TERMINATION OF EMPLOYMENT
A. EMPLOYER-EMPLOYEE RELATIONSHIP
1. Four-Fold Test
• What is the 4-fold test of existence of employer-employee
relationship?
1. Selection and engagement of the employee;
2. Payment of wages or salaries;
3. Exercise of the power of dismissal; or
4. Exercise of the power to control the employee’s conduct.
These tests, however, are not fool-proof as they admit of exceptions.
The control test is the controlling test which means that the employer
controls or has reserved the right to control the employee not only as
a. PROBATIONARY EMPLOYMENT
How is probationary period, say, of 6 months computed?
The 6-month probationary period should be reckoned “from the date of
appointment up to the same calendar date of the 6th month
following.”
May probationary period be extended?
Yes, but only upon the mutual agreement by the employer and the
probationary employee.
What is the effect of allowing a probationary employee to
work beyond the probationary period?
He is considered a regular employee.
What is the effect if there is no written contract providing for
probationary employment?
If there is no written contract, the employee is considered a regular
employee from day one of his employment. And even if there is one, he is
deemed regular if there is no stipulation on probationary period.
What are the grounds to terminate probationary
employment?
Under Article 281, a probationary employee may be terminated only on
three (3) grounds, to wit:
1. For a just cause; or
2. For authorized cause; or
3. When the probationary employee fails to qualify as a regular
employee in accordance with reasonable standards made known
by the employer to the employee at the start of the employment.
Is procedural due process required in termination of
probationary employment?
Yes, but only in the case of Numbers 1 and 2 above.
No, in the case of No. 3 above.
When should termination of probationary employment be
made?
Termination to be valid must be done prior to lapse of probationary
period. Termination a few days after lapse of probationary period cannot be
b. REGULAR EMPLOYMENT
How does one become a regular employee?
Under the Labor Code, regular employment may be attained in either of
three (3) ways, namely:
1. By nature of work. - The employment is deemed regular when the
employee has been engaged to perform activities which are usually
necessary or desirable in the usual business or trade of the employer.
2. By period of service. - The employment is reckoned as regular when
the employee has rendered at least one (1) year of service, whether such
service is continuous or broken, with respect to the activity in which he is
employed and his employment shall continue while such activity exists.
3. By probationary employment. - The employment is considered
regular when the employee is allowed to work after a probationary period.
Is the manner or method of paying wage material in
determining regularity of employment?
No. The manner and method of payment of wage or salary is immaterial to
the issue of whether the employee is regular or not.
c. PROJECT EMPLOYMENT
What is the litmus test of project employment?
The litmus test of project employment, as distinguished from regular
employment, is whether or not the project employees were assigned to
carry out a specific project or undertaking, the duration and scope
of which were specified at
the time the employees were engaged for that project.
A true project employee should be assigned to a project which begins and
ends at determined or determinable times and be informed thereof at the
time of hiring.
d. SEASONAL EMPLOYMENT
Can a seasonal employee become a regular seasonal
employee?
Yes, provided the following requisites are complied with:
1. The seasonal employee should perform work or services that are
seasonal in nature; and
2. They must have also been employed for more than one (1) season.
Can a regular seasonal worker file an illegal dismissal case
in the event he is not hired for the next season?
Yes. The reason is, being a regular seasonal employee, the employer should
re-hire him in the next season. During off-season, his employment is
deemed suspended and he is considered as being on leave of absence
without pay.
e. CASUAL EMPLOYMENT
What is the most important distinguishing feature of casual
employment?
The most important distinction is that the work or job for which he was
hired is merely incidental to the principal business of the employer and
such work or job is for a definite period made known to the employee at
the time of engagement.
When does a casual employee become regular?
Casual employee becomes regular after one year of service by operation of
law. The one (1) year period should be reckoned from the hiring date.
Repeated rehiring of a casual employee makes him a regular employee.
f. FIXED-TERM EMPLOYMENT
What are the requisites in order for fixed-term employment
to be valid?
The two (2) requisites or criteria for the validity of a fixed-term contract of
employment are as follows:
1. The fixed period of employment was knowingly and voluntarily
3. JOB CONTRACTING
Is job contracting valid if the contractor-supplied employees
are engaged to perform not merely peripheral but core
jobs with the principal?
Yes, per the 2012 case of Digital Telecommunications Philippines,
Inc. v. Digitel Employees Union (DEU), where the Court recognized
the management prerogative to farm out any of its activities, regardless of
whether such activity is
peripheral or core in nature.
LABOR-ONLY CONTRACTING.
When is there labor-only contracting?
(a) The contractor does not have substantial capital or investments in the
MANAGEMENT PREROGATIVES
What are management prerogatives?
Management prerogatives are granted to the employer to regulate every
aspect of their business, generally without restraint in accordance with
A. DISCIPLINE
What are the components of the right to discipline?
The right or prerogative to discipline covers the following:
1) Right to discipline;
2) Right to dismiss;
3) Right to determine who to punish;
4) Right to promulgate rules and regulations;
5) Right to impose penalty; proportionality rule;
6) Right to choose which penalty to impose; and
7) Right to impose heavier penalty than what the company rules prescribe.
B. TRANSFER OF EMPLOYEES
What are the various kinds of transfer?
a. Two (2) kinds of transfer. - A transfer means a movement:
1. From one position to another of equivalent rank, level or salary, without
a break in the service; or
C. PRODUCTIVITY STANDARD
How may productivity standards be imposed?
The employer has the prerogative to prescribe the standards of productivity
which the employees should comply. The productivity standards may be
used by the employer as:
1. an incentive scheme; and/or
2. a disciplinary scheme.
As an incentive scheme, employees who surpass the productivity
standards or quota are usually given additional benefits.
As a disciplinary scheme, employees may be sanctioned or dismissed for
failure to meet the productivity standards or quota.
Illustrative cases:
In the 2014 case of International School Manila v. International
School Alliance of Educators (ISAE),1 the teacher was held guilty of
gross inefficiency meriting her dismissal on the basis of the Court’s finding
that she failed to measure up to the standards set by the school in teaching
Filipino classes.
In the 2012 case of Reyes-Rayel v. Philippine Luen Thai Holdings
Corp.,2 the validity of the dismissal of petitioner who was the Corporate
Human Resources (CHR) Director for Manufacturing of respondent
company, on the ground of inefficiency and ineptitude, was affirmed on the
basis of the Court’s finding that petitioner, on two occasions, gave wrong
information regarding issues on leave and holiday pay which generated
confusion among employees in the computation of salaries and wages.
In another 2012 case, Realda v. New Age Graphics, Inc.,3 petitioner, a
machine operator of respondent company, was dismissed on the ground,
among others, of inefficiency. In affirming the validity of his dismissal, the
Supreme Court reasoned:
D. GRANT OF BONUS
See discussion on this under Topic III (Labor Standards) above.
G. POST-EMPLOYMENT BAN
Is a non-compete clause valid?
Yes. The employer and the employee are free to stipulate in an employment
contract prohibiting the employee within a certain period from and after
the termination of his employment, from:
(1) starting a similar business, profession or trade; or
(2) working in an entity that is engaged in a similar business that might
compete with the employer.
The non-compete clause is agreed upon to prevent the possibility that upon
an employee’s termination or resignation, he might start a business or work
for a competitor with the full competitive advantage of knowing and
exploiting confidential and sensitive information, trade secrets, marketing
plans, customer/client lists, business practices, upcoming products, etc.,
which he acquired and gained from his employment with the former
TOPIC NO. 6
B. GSIS LAW
(R.A. No. 8291)
Who are compulsorily required to become members of the
GSIS?
1. All government personnel, whether elective or appointive, irrespective of
status of appointment, provided they are receiving fixed monthly
compensation and have not reached the mandatory retirement age of 65
years, are compulsorily covered as members of the GSIS and shall be
required to pay contributions.
2. However, employees who have reached the retirement age of 65 or more
shall also be covered, subject to the following rules:
An employee who is already beyond the mandatory retirement age of 65
shall be compulsorily covered and be required to pay both the life and
retirement premiums under the following situations:
a. An elective official who at the time of election to public office is below
65 years of age and will be 65 years or more at the end of his term of office,
including the period/s of his re-election to public office thereafter without
interruption.
b. Appointive officials who, before reaching the mandatory age of 65, are
appointed to government position by the President of the Republic of the
Philippines and shall remain in government service at age beyond 65.
c. Contractual employees including casuals and other employees with
an employee-government agency relationship are also compulsorily
covered, provided they are receiving fixed monthly compensation and
rendering the required number of working hours for the month.
What are the classes of membership in the GSIS?
Membership in the GSIS is classified either by type or status of
membership.
As to type of members, there are regular and special members:
(a) Regular Members – are those employed by the government of the
Republic of the Philippines, national or local, legislative bodies,
government-owned and controlled corporations (GOCC) with original
charters, government financial institutions (GFIs), except uniformed
D. EMPLOYEE’S COMPENSATION
COVERAGE AND WHEN COMPENSABLE
What is the State Insurance Fund [SIF]?
The State Insurance Fund (SIF) is built up by the contributions of
employers based on the salaries of their employees as provided under the
Labor Code.
There are two (2) separate and distinct State Insurance Funds: one
established under the SSS for private sector employees; and the other,
under the GSIS for public sector employees. The management and
investment of the Funds are done separately and distinctly by the SSS and
the GSIS. It is used exclusively for payment of the employees’ compensation
benefits and no amount thereof is authorized to be used for any other
purpose.
What are the agencies involved in the implementation of the
Employees Compensation Program (ECP)?
There are three (3) agencies involved in the implementation of the
Employees’ Compensation Program (ECP). These are: (1) The Employees’
Compensation Commission (ECC) which is mandated to initiate,
rationalize and coordinate policies of the ECP and to review appealed cases
from (2) the Government Service Insurance System (GSIS) and (3)
the Social Security System (SSS), the administering agencies of the
ECP.
Who are covered by the ECP?
a. General coverage. – The following shall be covered by the Employees’
Compensation Program (ECP):
1. All employers;
2. Every employee not over sixty (60) years of age;
TOPIC NO. 8
1. JURISDICTION
1. NATURE OF JURISDICTION OF LABOR ARBITERS -
ORIGINAL AND EXCLUSIVE.
The jurisdiction conferred by Article 217 upon the Labor Arbiters is both
original and exclusive, meaning, no other officers or tribunals can take
cognizance of, or hear and decide, any of the cases therein enumerated.
2. ILLUSTRATIVE CASE.
In Department of Foreign Affairs v. NLRC,1 involving an illegal
dismissal case filed against the Asian Development Bank (ADB), it was
ruled that said entity enjoys immunity from legal process of every form and
therefore the suit against it cannot prosper. And this immunity extends to
its officers who also enjoy immunity in respect of all acts performed by
them in their official capacity. The Charter and the Headquarters
Agreement granting these immunities and privileges to the ADB are treat
covenants and commitments voluntarily assumed by the Philippine
government which must be respected.
I. APPEAL IN GENERAL
1. APPEAL, MEANING AND NATURE.
The term “appeal” refers to the elevation by an aggrieved party to an
agency vested with appellate authority of any decision, resolution or order
disposing the principal issues of a case rendered by an agency vested with
original jurisdiction, undertaken by filing a memorandum of appeal.
3. REQUISITES.
The requisites for perfection of appeal to the NLRC are as follows:
(1) Observance of the reglementary period;
(2) Payment of appeal and legal research fee;
(3) Filing of a Memorandum of Appeal;
(4) Proof of service to the other party; and
(5) Posting of cash, property or surety bond, in case of monetary
awards.
The foregoing are discussed below.
V. MEMORANDUM OF APPEAL
1. REQUISITES.
The requisites for a valid Memorandum of Appeal are as follows:
1. The Memorandum of Appeal should be verified by the appellant himself
in accordance with the Rules of Court, as amended;
2. It should be presented in three (3) legibly typewritten or printed copies;
3. It shall state the grounds relied upon and the arguments in support
thereof, including the relief prayed for;
4. It shall contain a statement of the date the appellant received the
appealed decision, award or order; and
5. It shall be accompanied by:
(i) proof of payment of the required appeal fee and legal research fee;
(ii) posting of a cash or surety bond (in case of monetary awards); and
(iii) proof of service upon the other party.
1. NATURE.
The NLRC is an administrative quasi-judicial body. It is an agency attached
to the DOLE solely for program and policy coordination only. It is in
charge of deciding labor cases through compulsory arbitration.
2. COMPOSITION OF THE NLRC.
The NLRC is composed of a Chairman and twenty-three (23) members
called “Commissioners.” The NLRC has tripartite composition. Eight
(8) members thereof should be chosen only from among the nominees of
the workers sector and another eight (8) from the employers sector.
The Chairman and the seven (7) remaining members shall come from the
public sector, with the latter to be chosen preferably from among the
1. JURISDICTION
1. TWO (2) KINDS OF JURISDICTION.
The NLRC exercises two (2) kinds of jurisdiction:
1. Exclusive original jurisdiction; and
2. Exclusive appellate jurisdiction.
2. EXCLUSIVE ORIGINAL JURISDICTION.
The NLRC exercises exclusive and original jurisdiction over the following
cases:
a. Petition for injunction in ordinary labor disputes to enjoin or
restrain any actual or threatened commission of any or all prohibited or
unlawful acts or to require the performance of a particular act in any labor
dispute which, if not restrained or performed forthwith, may cause grave or
irreparable damage to any party.
b. Petition for injunction in strikes or lockouts under Article 264 of
the Labor Code.
c. Certified cases which refer to labor disputes causing or likely to cause a
strike or lockout in an industry indispensable to the national interest,
certified to it by the Secretary of Labor and Employment for compulsory
3. REMEDIES
1. EXTRAORDINARY REMEDIES.
a. Nature.
The power of the Commission (NLRC) to grant extraordinary remedies
mentioned in No. 3 above is not provided in the Labor Code or in any other
laws. It is a newly created remedy which saw light for the first time under
Rule XII of the 2011 NLRC Rules of Procedure. Past NLRC Rules did not
provide therefor. Since this is a recent newly minted remedy, there has yet
been no decision by the Supreme Court dwelling on its validity.
What is clear though is that this remedy is not equivalent to nor a substitute
for appeal. It is directed against “orders” or “resolutions” issued by the
Labor Arbiter in the course of the proceedings before him where the
remedy of appeal is not available. Notably, the remedy of appeal is available
only against the main decision of a case. But orders or resolutions issued
prior to the rendition of the decision in the main as well as orders or
resolutions issued thereafter, specifically during the execution stage, are
subject of this rule on extraordinary remedies.
b. Grounds.
The petition filed under this Rule may be entertained only on any of the
following grounds:
(a) If there is prima facie evidence of abuse of discretion on the part of the
Labor Arbiter;
(b) If serious errors in the findings of facts are raised which, if not
corrected, would cause grave or irreparable damage or injury to the
petitioner;
(c) If a party by fraud, accident, mistake or excusable negligence has been
1. INTRODUCTION.
For purposes of clarity in the otherwise labyrinthine issue of jurisdiction
and procedure in the BLR, there is a need to cite first the cases over which
the following officials have their respective jurisdictions:
(1) Mediator-Arbiter (Med-Arbiter);
(2) DOLE Regional Director; and
(3) BLR Director.
The Mediator-Arbiter and the DOLE Regional Director exercise
original and exclusive jurisdiction over specified cases mentioned below.
For his part, the BLR Director exercises not only appellate but original
jurisdiction over some particular cases.
2. CASES COVERED.
There are three (3) general classifications of the cases covered by
the jurisdiction of said officials, to wit:
(a) Inter-union disputes;
(b) Intra-union disputes; and
(c) Other related labor relations disputes.
1. NATURE OF PROCEEDINGS
1. NCMB IS NOT A QUASI-JUDICIAL AGENCY.
NCMB is not a quasi-judicial agency, according to the 2009 case of
Tabigue v. International Copra Export Corporation.2
“Quasi-judicial function” is a term which applies to the action,
discretion, etc. of public administrative officers or bodies, who are required
to investigate facts or ascertain the existence of facts, hold hearings, and
draw conclusions from them
as a basis for their official action and to exercise discretion of a judicial
nature.
2. NOT BEING A QUASI-JUDICIAL AGENCY, NCMB’S RULINGS
CANNOT BE ELEVATED TO, AND COGNIZABLE BY, THE
COURT OF APPEALS.
Rule 43 of the Rules of Court applies only to awards, judgments, final
orders or resolutions of or authorized by any quasi-judicial agency in
3. PREVENTIVE MEDIATION
1. PREVENTIVE MEDIATION AS A REMEDY.
“Preventive mediation,” as a remedy, is not found in the Labor Code. But
under the law which created the NCMB, it is expressly stated that one of its
functions is to provide preventive mediation to disputing parties.
The term “preventive mediation case” refers to the potential or brewing
labor dispute which is the subject of a formal or informal request for
conciliation and mediation assistance sought by either or both parties in
order to remedy, contain or prevent
its degeneration into a full blown dispute through amicable settlement.
2. HOW TO INITIATE PREVENTIVE MEDIATION.
Preventive mediation proceeding may be initiated in two (2) ways:
(1) By filing a notice or request of preventive mediation, as
distinguished from a notice of strike/lockout; or
(2) By conversion of the notice of strike/lockout into a preventive
mediation case.
3. AUTHORITY TO CONVERT A NOTICE OF STRIKE/LOCKOUT
INTO A PREVENTIVE MEDIATION CASE.
The NCMB has the authority to convert a notice of strike/lockout filed by
the union/employer into a preventive mediation case under any of the
following circumstances:
1. When the issues raised in the notice of strike/lockout are not strikeable
in character.
2. When the party which filed the notice of strike/lockout voluntarily
asks for the conversion.
1. JURISDICTION
1. JURISDICTION OF THE DOLE REGIONAL DIRECTORS.
The DOLE Regional Directors have original and exclusive jurisdiction over
the following cases:
(a) Labor standards enforcement cases under Article 128;
2. ORIGINAL JURISDICTION.
The DOLE Regional Directors exercise original jurisdiction over the
following:
1. JURISDICTION.
As EVAs, the DOLE Regional Directors and their Assistants have
jurisdiction over the following cases:
(a) All grievances arising from the interpretation or implementation of the
CBA;
(b) All grievances arising from the interpretation or enforcement of
company personnel policies which remain unresolved after exhaustion of
the grievance procedure;
(c) Cases referred to them by the DOLE Secretary under the DOLE’s
Administrative Intervention for Dispute
Avoidance (AIDA) initiative (provided under DOLE Circular No. 1, Series
of 2006); and
(d) Upon agreement of the parties, any other labor dispute may be
submitted to the EVAs for voluntary arbitration.
F. DOLE SECRETARY
1. POWERS OF THE DOLE SECRETARY.
The DOLE Secretary, being the head of the Department of Labor and
Employment, is possessed of a number of powers, some of which are
mentioned in the syllabus, to wit:
1. Visitorial and enforcement powers;
2. Power to suspend/effects of termination;
3. Assumption of jurisdiction;
4. Appellate jurisdiction; and
5. Voluntary arbitration powers.
3. ASSUMPTION OF JURISDICTION
4. APPELLATE JURISDICTION
2. VOLUNTARY ARBITRATOR
1. VOLUNTARY ARBITRATION.
“Voluntary arbitration” refers to the mode of settling labor-management
disputes in which the parties select a competent, trained and impartial
third person who is tasked to decide on the merits of the case and whose
decision is final and executory. It is a third-party settlement of a labor
dispute involving the mutual consent by the representatives of the
employer and the labor union involved in a labor dispute to submit their
case for arbitration.
2. VOLUNTARY ARBITRATOR.
a. Who is a Voluntary Arbitrator?
A “Voluntary Arbitrator” refers to:
(1) any person who has been accredited by the National Conciliation and
Mediation Board (“NCMB” or “Board”) as such; or
(2) any person named or designated in the CBA by the parties as their
Voluntary Arbitrator; or
(3) one chosen by the parties with or without the assistance of the NCMB,
pursuant to a selection procedure agreed upon in the CBA; or
(4) one appointed by the NCMB in case either of the parties to the CBA
refuses to submit to voluntary arbitration.
This term includes a panel of Voluntary Arbitrators.
(a) JURISDICTION
1. ORIGINAL AND EXCLUSIVE JURISDICTION.
a. In general.
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have
exclusive and original jurisdiction over the following cases:
(1) Unresolved grievances arising from the interpretation or
implementation of the collective bargaining agreement (CBA).
(2) Unresolved grievances arising from the interpretation or enforcement
of company personnel policies.
(3) Violations of the CBA which are not gross in character.
(4) Other labor disputes, including unfair labor practices and bargaining
deadlocks, upon agreement of the parties.
(5) National interest cases.
(6) Wage distortion issues arising from the application of any wage orders
in organized establishments.
(7) Unresolved grievances arising from the interpretation and
implementation of the Productivity Incentive Programs under R.A. No.
6971.
b. Rights disputes.
Nos. 1, 2 and 3 above, which are provided for under Article 261 of the
Labor Code, are commonly known as “rights disputes.” This kind of
disputes contemplates the existence of a CBA already concluded or, at any
c. Interest disputes.
Bargaining deadlocks are often referred to as “interest disputes.” This
kind of disputes relates to disputes over the formation of collective
agreements or efforts to secure them. They arise where there is no such
agreement or where it is sought to change the terms of one and therefore
the issue is not whether an existing agreement controls the controversy.
They look to the acquisition of rights for the future, not to assertion of
rights claimed to have vested in the past.
I.
III. JURISDICTION OVER OTHER LABOR DISPUTES
Under Article 262 of the Labor Code, upon agreement of the parties, the
Voluntary Arbitrator or panel of Voluntary Arbitrators may also hear and
decide all other labor disputes, including unfair labor practices
and bargaining deadlocks.
2. HOW INITIATED.
Based on the foregoing discussion, an arbitration may be initiated either by
3. SOME PRINCIPLES.
1) Cases cognizable by Voluntary Arbitrators in their original
jurisdiction but filed with Labor Arbiters, DOLE Regional Offices
or NCMB should be disposed of by referring them to the Voluntary
Arbitrators or panel of Voluntary Arbitrators mutually chosen by the
parties.
2) Cases cognizable by Voluntary Arbitrators but filed with
regular courts should be dismissed.
(c) REMEDIES
1. RELIEFS AND REMEDIES THAT MAY BE GRANTED BY
VOLUNTARY ARBITRATORS.
Besides the procedural remedies discussed above, the Voluntary Arbitrator
or panel of Voluntary Arbitrators may grant the same reliefs and remedies
granted by Labor Arbiters under Article 279 of the Labor Code, such as:
(1) In illegal dismissal cases:
(a) Actual reinstatement;
(b) Separation pay in lieu of reinstatement, in case reinstatement becomes
impossible, non-feasible or impractical;
(c) Full backwages;
(d) Moral and exemplary damages; and
(e) Attorney’s fees.
(2) Monetary awards in monetary claims cases in which case, the
decision should specify the amount granted and the formula used in the
computation thereof.
H. COURT OF APPEALS
1. RULE 65, RULES OF COURT
1. RULE 65 PETITION FOR CERTIORARI, THE ONLY MODE OF
ELEVATING A LABOR CASE TO THE COURT OF
APPEALS.
The only mode by which a labor case decided by any of the following labor
I. SUPREME COURT