LABOR LAW REVIEW

Soft Course framework for Labor Law Review

Dean Porfirio DG. Panganiban, Jr.
CHAIRMAN – Labor Law Department, AUSL

Suggested References:

DUKA, Cecilio D., LABOR LAWS AND SOCIAL LEGISLATION, A Barrister’s

Companion
CHAN, Joselito G., Labor Code Annotated Vol. I Labor Standards and
Welfare AND Vol. II Labor Relations and Termination of Employment
BACUNGAN, Froilan, LABOR AND SOCIAL LEGISLATION, An Updated
Systematic Presentation
AZUCENA, Cesari Alverio, Jr, THE LABOR CODE WITH COMMENTS AND
CASES VOL. I AND VOL. II-A Labor Relations and Employment
Termination
ABAD and ABAD. Compendium on Labor Law

I. Fundamental Principles and Policies

A. Constitutional provisions related to Labor

1. Article II. Secs. 2, 9, 10, 11, 13, 14, 18, and 20

2. Article. III, Secs. 1, 4, 7, 8, 10, 16, and 18(2).
3. Article. IX B, Sec. 2B
4. Article. XII, Sec. 12
5. Article XIII, Secs. 1, 2, 3, 13, and 14.
a. Cardinal Rights of Labor

B. Civil Code provisions related to Labor

1. Article 19
2. Article 1700
3. Article 1701
4. Article 1702
5. Article 1703
6. Article 1704
7. Article 1705 to Article 1712
8. Article 2241 par. (6)
9. Article 2242 par. (3)

C. Significant Labor Law Provisions

1. Article 3
2. Article 4
3. Article 172 (166)
4. Article 218 (211)
5. Article 219 (212)
6. Article 267 (255)
7. Article 292 (277)

D. Social Justice

1. Concept
2. Governing principle: Law or Contract
 3. Calalang vs.Williams

II. Recruitment and Placement

RA No. 10022 in relation to and amending RA 8042

A. Recruitment of local and migrant workers

1. Illegal recruitment (Sec. 5, R.A. No. 10022)

a) License vs. authority

b) Essential elements of illegal recruitment
c) Simple illegal recruitment
d) Illegal recruitment in large scale
e) Illegal recruitment as economic sabotage
f) Illegal recruitment vs. estafa
g) Liabilities
1) Local recruitment agency
2) Foreign employer

(a) Theory of imputed knowledge

i. Solidary liability
ii. Concept of Agency

h) Pre-termination of contract of migrant worker

i ) One Country Approach Principle

2. Direct hiring

B. Regulation and enforcement

1. Suspension or cancellation of license or authority (Art. 35, Labor Code)

2. Regulatory and Visitorial powers of the DOLE secretary
3. Remittance of foreign exchange earnings
4. Prohibited activities

C. EXECUTIVE ORDER NO. 797 REORGANIZING THE MINISTRY OF LABOR AND

EMPLOYMENT, CREATING THE PHILIPPINE OVERSEAS EMPLOYMENT
ADMINISTRATION, AND FOR OTHER PURPOSES ACT of 1982

D. Recruitment under Art. 38 and RA No. 10022

E. Money Claims Under Ra No. 10022

F. Doctrine Of Imputed Knowledge

III. Labor Standards

A. Hours of work

1. Coverage (Art. 82, Labor Code)

a) Exclusion
b) Reason
2. Work Day vs. Calendar Day
3. Normal hours of work
a) Rational
b) Compressed work week
4. Meal break
 5. Waiting time
a) When Compensable
b) Security Guard
c) PNP/AFP
d) Power Interruptions
6. Overtime work
a) Overtime pay
b) Applicable Rates
c) Employees not covered
7. Rest Day
a) Applicable Rates
b) Employees not covered
8. Holiday
a) Applicable Rates
b) Employees not covered
c) Regular Holidays
d) Special Holiday
(i) Special Working Holiday
(ii) Special Non-Working Holiday
9. Night work (R.A. No. 10151), Night shift differential
10. Part-time work
11. Contract for piece work
a. Article 1713 to Article 1731

B. Wages

1. Wage vs. Salary

2. Rules on Wages
3. Minimum wage defined, Minimum wage setting
4. Minimum wage of workers paid by results
a) Workers paid by results
b) Apprentices
c) Learners
d) Persons with disability
5. Commissions
a) Commission based employees
1. Concept
2. Purely Commission based employee
3. Partially Paid in Commission
4. Benefits and Entitlements

6. Supplements vs. Facilities,

a) Kinds
b) Illustration
c) Inclusive of wages vs. add on benefit
7. Recognized Deductions from wages
8. Non-diminution of benefits
9. Wage Distortion/Rectification
10. Divisor to determine daily rate
11. Minimum Wage

C. Rest Periods

1. Weekly rest day

2. Emergency rest day work
3. Exceptions

D. Holiday pay/Premium pay

1. Coverage, exclusions
2. Teachers, piece workers, takay, seasonal workers, seafarers
3. Security Guards
E. Leaves

1. Service Incentive Leave

2. Maternity Leave
3. Paternity Leave
4. Parental Leave (R.A. No. 8972)
5. Battered Woman Leave. Leave for Victims of Violence against Women and Children
(R.A. No. 9262)
6. Special leave benefit for women.
7. Gynecological Leave. R.A. No. 9710 - The Magna Carta of Women.

F. Service Charge

G. Presidential Decree No. 851 - Thirteenth Month Pay Law and IRR, Exception.
Republic Act No. 10653 in relation with Bureau of Internal Revenue (BIR) issued Revenue
Regulations (RR) 3-2015

H. 13th Month pay, New Tax Obligation Rate under TRAIN Law for 2018 Onwards

H. Separation Pay

I. Retirement Pay

1. Eligibility
2. Amount
3. Retirement benefits of workers paid by results
4. Retirement benefits for commission based employees
5. Retirement benefits of part-time workers
6. Taxability

J. Women Workers

1. Provisions against discrimination

2. Stipulation against marriage
3. Prohibited acts
4. Anti-Sexual Harassment Act (R.A. No. 7877)

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, An Act Increasing the Minimum
Wage of Househelpers; see also – Household Service under the Civil Code). Republic Act No.
10361 is an Act Instituting Policies for the Protection and Welfare of Domestic
Workers, otherwise known as 'Domestic Workers Act' or 'Batas Kasambahay.'

M. Employment of Homeworkers

N. Apprentices and Learners

O. Persons with disability (R.A. No. 7277, as amended by R.A. No. 9442)
a. Definition
b. Rights of persons with disability
c. Prohibition on discrimination against persons with disability
d. Incentives for employers

IV. Termination of Employment

A. Employer-employee relationship

1. Four-fold test
a. Important Test
 b. Other test used to determine Employer-employee relationship

2. Kinds of employment
a) Probationary
b) Regular
c) Project employment
d) Contract Based
e) Seasonal
f) Casual
g) Fixed-term

3. Independent Contracting

a. Articles 106 to 109 of the Labor Code

b. Job Contracting vs. Labor Only Contracting
c. Department Order No. 174 (Department Order No. 18-A)
d. Department Circular No. 01-12
e. Effects of Labor-Only Contracting
f. Trilateral relationship in job contracting

B. Dismissal from employment

1. Just Causes
2. Authorized Causes
3. Due Process

a. Twin-notice Requirement/Rule
b. Hearing; meaning of opportunity to be heard
c. When notices may be dispensed
d. Abandonment

C. Reliefs for Illegal Dismissal

1. Reinstatement

a. Pending appeal (Art. 223, Labor Code)

b. Separation pay in lieu of reinstatement

2. Backwages

a. Computation
b. Limited backwages

D. Preventive Suspension
E. Constructive Dismissal

V. Management Prerogative
A. Definition
B. Constitutional Basis of Management Prerogative
C. Discipline
D. Contractual Prerogative vs. Management Prerogative
E. Transfer of employees
F. Productivity standard
G. Grant of bonus
H. Change of working hours
I. Designation of work Day
J. Calendar day vs. Work day
K. Rules on Marriage between employees of competitor-employers
L. Post-employment ban
VI. Social Welfare Legislation (P.D. 626)
A. SSS LAW (R.A. NO. 8282)
1. Basis
2. Coverage
3. Exclusions from coverage
4. Benefits
5. Beneficiaries'
B. GSIS LAW (R.A. NO. 8291)
1. Basis
2. Coverage
3. Exclusions from coverage
4. Benefits
5. Beneficiaries
C. Limited Portability Law (R.A. No. 7699)
D. Employee’s compensation – coverage and when compensable
E. R.A. No. 6727 – WAGE RATIONALIZATION ACT
F. R.A. No. 7305 – THE MAGNA CARTA OF PUBLIC HEALTH WORKERS
G. R.A. No. 7641 – RETIREMENT PAY LAW
H. R.A. No. 7658 – PROHIBITING THE EMPLOYMENT OF CHILDREN BELOW
FIFTEEN (15) YEARS OF AGE IN PUBLIC AND PRIVATE UNDERTAKINGS
I. R.A. No. 8042 – MIGRANT WORKERS ACT AS AMENDED BY R.A. No, 10022 AN ACT
AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, FURTHER
IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE
WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS
IN DISTRESS, AND FOR OTHER PURPOSES
J. R.A. No. 8187 –PATERNITY LEAVE ACT OF 1996
K. R.A. No. 8188 – LAW INCREASING THE PENALTY FOR VIOLATION OF THE WAGE
LAW
L. EXECUTIVE ORDER NO. 51, Series of 2018 IMPLEMENTING ARTICLE 106 OF
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED, TO PROTECT THE
RIGHT TO SECURITY OF TENURE OF ALL WORKERS BASED ON SOCIAL
JUSTICE IN THE 1987 PHILIPPINE CONSTITUTION.
M. DEPARTMENT ORDER NO. 174, SERIES OF 2017: RULES
IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR CODE, AS
AMENDED
N. REPUBLIC ACT No. 10801, AN ACT GOVERNING THE OPERATIONS AND
ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE ADMINISTRATION of
2016.
O. OWWA Resolution No. 15, Series of 2016, IMPLEMENTING RULKES AND
REGULATION OF RA 10801, OTHERWISE KNOWN AS THE OVERSEAS WORKERS
WELFARE ADMINISTRATION ACT of 2016

VII. Labor Relations Law

A. Constitutional Basis
B. Right to self-organization

1. Who may unionize for purposes of collective bargaining?

Who cannot form, join or assist labor organizations
2. Bargaining unit
a) Test to determine the constituency of an appropriate bargaining unit
b) Voluntary recognition
(i) Requirements
c) Certification election
(i) In an unorganized establishment
(ii) In an organized establishment
 d) Run-off election
(i) Requirements
e) Re-run election
f) Consent election
g) Affiliation and disaffiliation of the local union from the mother union
(i) Substitutionary doctrine
h) Union dues and special assessments
(i) Requirements for validity
i) Agency fees
(i) Requisites for assessment
C. Right to collective bargaining
1. Duty to bargain collectively
a) When there is absence of a CBA
b) When there is a CBA
2. Collective Bargaining Agreement (CBA)
a) Mandatory provisions of CBA
(i) Grievance procedure
(ii) Voluntary arbitration
(iii) No strike-no lockout clause
(iv) Labor management council
b) Duration
(i) For economic provisions
(ii) For non-economic provisions
(iii) Freedom period
3. Union Security
a) Union security clauses; closed shop, union shop, maintenance of membership
shop, etc.
b) Check-off; union dues, agency fees
4. Unfair Labor Practice in collective bargaining
a) Bargaining in bad faith
b) Refusal to bargain
c) Individual bargaining
d) Blue sky bargaining
e) Surface bargaining
5. Unfair Labor Practice (ULP)
a) Nature of ULP
b) ULP of employers
c) ULP of labor organizations

D. Right to peaceful concerted activities

1. Forms of concerted activities

2. Who may declare a strike or lockout?
3. Requisites for a valid strike
4. Requisites for a valid lockout
5. Requisites for lawful picketing
6. Assumption of jurisdiction by the DOLE Secretary or Certification of the labor
dispute to the NLRC for compulsory arbitration
7. Nature of assumption order or certification order
8. Effect of defiance of assumption or certification orders
9. Illegal strike
a) Liability of union officers
b) Liability of ordinary workers
c) Liability of employer
d) Waiver of illegality of strike
10. Injunctions
a) Requisites for labor injunctions
b) “Innocent bystander rule”

VIII. Procedure and Jurisdiction

A. Labor Arbiter
 1. Jurisdiction
a) Contrasted with and as opposed to the Regional Director
2. Reinstatement pending appeal
3. Requirements to perfect appeal to NLRC
B. National Labor Relations Commission (NLRC)
1. Jurisdiction
2. Effect of NLRC reversal of Labor Arbiter’s order of reinstatement
3. Remedies
4. Certified cases
C. Bureau of Labor Relations – Med-Arbiters
1. Jurisdiction (original and appellate)
D. National Conciliation and Mediation Board
1. Nature of proceedings
2. Conciliation vs. Mediation
3. Preventive mediation
E. DOLE Regional Directors
1. Jurisdiction
F. DOLE Secretary
1. Visitorial and enforcement powers
2. Power to suspend/effects of termination
3. Assumption of jurisdiction
4. Appellate jurisdiction
5. Voluntary arbitration powers
G. Grievance Machinery and Voluntary Arbitration
1. Subject matter of grievance
2. Voluntary Arbitrator
a) Jurisdiction
b) Procedure
c) Remedies
H. Court of Appeals
1. Rule 65, Rules of Court
I. Supreme Court
1. Rule 45, Rules of Court
J. Prescription of actions

GTMAXIMUSLCC95’
LABOR LAW REVIEW
Jan012019