University of Santo Tomas Labor Law Review

Faculty of Civil Law Dean Salvador A. Poquiz

A.Y. 2017 – 2018, 1st Semester (4A) |1

LABOR RELATIONS (b) To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice
Labor Relations and development;

(c)To foster the free and voluntary organization of a strong

- The term denotes all aspects of employer-employee
relationship which involve concerted action on the
part of the workers.
- It is usually associated with all the ramifications of
unionism, collective bargaining and negotiations and
concerted activities such as strike, picket, mass leave
and the like.
and united labor movement;
(d) To promote the enlightenment of workers concerning
their rights and obligations as union members and as employees;
(e) To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;

(f) To ensure a stable but dynamic and just industrial peace;

Purpose of Labor Relations and

- To adjust and align the conflicting interests between (g) To ensure the participation of workers in decision and
labor and management to deter the incubation of policy-making processes affecting their rights, duties and welfare
industrial dispute which may inevitably lead to
convulsive strife or civil war. B. To encourage a truly democratic method of regulating the
relations between the employers and employees by means of
Parties in Labor Relations Case agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to
set or fix wages, rates of pay, hours of work or other terms and
1. Employees – active party conditions of employment, except as otherwise provided under
2. Employer/Management – active party this Code.
3. Public – passive party
4. The State – passive party Non-interference of non-parties in collective bargaining

NOTE: The Government plays an active role when it
directly intervenes in the resolution of a labor conflict that
affects an industry indispensable to national interest under
compulsory arbitration.
- The relations between capital and labor are not
merely contractual but so impressed with public
interest that labor contracts must yield to the common
good.
Principle of Non-oppression
- The New Civil Code mandates the capital and labor
not to act oppressively against each other or impair
the interest or convenience of the public.1
BOOK V
LABOR RELATIONS
TITLE I
POLICY DEFINITIONS
CHAPTER I
POLICY
Art. 218. Declaration of Policy. – A. It is the policy of the State:
No court or administrative agency or official shall
have the power to set or fix wages, rates of pay, hours of
work, or other terms and conditions of employment, except as
otherwise provided under the Labor Code, the purpose of
which is to encourage a truly democratic method of regulating
the relations between the employers and employees by means
of agreements freely entered into through collective
bargaining.
Exceptions
Refer to the powers and functions vested by law upon
the following:
1. National Wages and Productivity Commission
(NWPC) and Regional Tripartite Wages and
Productivity Board (RTWPB) – as to wage fixing2
2. National Conciliation and Mediation Board (NCMB)
and the National Labor Relations Commission
(NLRC) – as to wage distortions3
3. Secretary of Labor and Employment and the
President of the Philippines – as to certification and
assumption powers over labor disputes 4

(a) To promote and emphasize the primacy of free collective

bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor or
industrial disputes;
2
Arts. 99 and 122.
3
Art. 124.
1 4
Capili vs. NLRC, 270 SCRA 488. Art. 269(g).
 University of Santo Tomas
Faculty of Civil Law
CHAPTER II
DEFINITIONS
Art. 219. – Definitions.
(a) "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be,
as provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations and/or
the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the
Department of Labor.
(c) "Board" means the National Conciliation and
Mediation Board established under Executive Order
No. 126.
(d) "Council" means the Tripartite Voluntary Arbitration
Advisory Council established under Executive Order
No. 126, as amended.
(e) "Employer" includes any person acting in the interest
of an employer, directly or indirectly. The term shall
not include any labor organization or any of its officers
or agents except when acting as employer.
(f) "Employee" includes any person in the employ of an
employer. The term shall not be limited to the
employees of a particular employer, unless the Code so
explicitly states. It shall include any individual whose
work has ceased as a result of or in connection with any
current labor dispute or because of any unfair labor
practice if he has not obtained any other substantially
equivalent and regular employment.
(g) "Labor organization" means any union or association
of employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with
employers concerning terms and conditions of
employment.
(h) "Legitimate labor organization" means any labor
organization duly registered with the Department of
Labor and Employment, and includes any branch or
local thereof.
(i) "Company union" means any labor organization whose
formation, function or administration has been assisted
by any act defined as unfair labor practice by this Code.
(j) "Bargaining representative" means a legitimate labor
organization whether or not employed by the employer.
(k) "Unfair labor practice" means any unfair labor
practice as expressly defined by the Code.
(l) "Labor dispute" includes any controversy or matter
concerning terms and conditions of employment or the
association or representation of persons in negotiating,
fixing, maintaining, changing or arranging the terms
and conditions of employment, regardless of whether
Labor Law Review
Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester (4A) |2
the disputants stand in the proximate relation of
employer and employee.
(m) "Managerial employee" is one who is vested with the
powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend,
lay-off, recall, discharge, assign or discipline employees.
Supervisory employees are those who, in the interest of
the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely
routinary or clerical in nature but requires the use of
independent judgment. All employees not falling within
any of the above definitions are considered rank-and-
file employees for purposes of this Book.
(n) "Voluntary Arbitrator" means any person accredited
by the Board as such or any person named or
designated in the Collective Bargaining Agreement by
the parties to act as their Voluntary Arbitrator, or one
chosen with or without the assistance of the National
Conciliation and Mediation Board, pursuant to a
selection procedure agreed upon in the Collective
Bargaining Agreement, or any official that may be
authorized by the Secretary of Labor and Employment
to act as Voluntary Arbitrator upon the written request
and agreement of the parties to a labor dispute.
(o) "Strike" means any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute.
(p) "Lockout" means any temporary refusal of an
employer to furnish work as a result of an industrial or
labor dispute.
(q) "Internal union dispute" includes all disputes or
grievances arising from any violation of or
disagreement over any provision of the constitution and
by laws of a union, including any violation of the rights
and conditions of union membership provided for in
this Code.
(r) "Strike-breaker" means any person who obstructs,
impedes, or interferes with by force, violence, coercion,
threats, or intimidation any peaceful picketing affecting
wages, hours or conditions of work or in the exercise of
the right of self-organization or collective bargaining.
(s) "Strike area" means the establishment, warehouses,
depots, plants or offices, including the sites or premises
used as runaway shops, of the employer struck against,
as well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all points
of entrance to and exit from said establishment.
Employer
- One who hires services of another and pays him
compensation.
- It includes any person acting in the interest of an
employer directly or indirectly.
- It shall not include any labor organization or any of
its officers or agents except when acting as employer.
 University of Santo Tomas
Faculty of Civil Law
Employee
- Any person in the employ of an employer.
- It shall not be limited to the employees of a particular
employer.
- It includes any individual whose work has ceased as a
result of or in connection with any current labor
dispute or because of any unfair labor practice if he
has not obtained any other substantially equivalent
and regular employment.
a. Direct employee (ie. Janitor directly hired by the
management)
b. Indirect employee (ie. Security guard employed
through security agency)
Types of Employees5
1. Managerial
2. Supervisory
3. Rank-and-file
NOTE: When the recommendatory powers are subject to
evaluation, review and final action by the department
heads and other executive of the company, the same,
although present, are not effective and not an exercise of
independent judgment as required by law. 6
NOTE: “Paper or dummy” managers are considered as
rank-and-file employee. What is controlling is the actual
exercise of functions and not the name given to the
position.
NOTE: The exercise of independent judgment qualifies a
supervisory employee to become a managerial employee.
However, if his recommendation is not effective and the
same is still subject to approval of higher management
authorities or his authority is merely routinary or clerical
in nature, no independent judgment is involved. As such,
the supervisor remains as such or falls under the category
of rank-and-file employee.
TITLE II
NATIONAL LABOR RELATIONS COMMISSION
CHAPTER I
CREATION AND COMPOSITION
Art. 220. National Labor Relations Commission. – There shall be
a National Labor Relations Commission which shall be attached
to the Department of Labor and Employment solely for program
and policy coordination, composed of a Chairman and twenty-
three (23) members.
Eight (8) members each shall be chosen from among the
nominees of the workers and employers organizations,
5
Art. 219(m).
6
Philacor vs. Hon. Laguesma, G.R. No. 105223 (1993).
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A.Y. 2017 – 2018, 1st Semester (4A) |3
respectively. The Chairman and the seven (7) remaining
members shall come from the public sector, with the latter to be
chosen preferably from among the incumbent labor arbiters.
Upon assumption into office, the members nominated
by the workers and employers organizations shall divest
themselves of any affiliation with or interest in the federation or
association to which they belong.
The Commission may sit en banc or in eight (8)
divisions, each composed of three (3) members. The Commission
shall sit en banc only for purposes of promulgating rules and
regulations governing the hearing and disposition of cases before
any of its divisions and regional branches, and formulating
policies affecting its administration and operations. The
Commission shall exercise its adjudicatory and all other powers,
functions, and duties through its divisions. Of the eight (8)
divisions, the first, second, third, fourth, fifth, and sixth divisions
shall handle cases coming from the National Capital Region and
other parts of Luzon; and the seventh and eighth divisions, cases
from the Visayas and Mindanao, respectively; Provided, that the
Commission sitting en banc may, on temporary or emergency
basis, allow cases within the jurisdiction of any division to be
heard and decided by any other division whose docket allows the
additional workload and such transfer will not expose litigants to
unnecessary additional expense. The divisions of the Commission
shall have exclusive appellate jurisdiction over cases within their
respective territorial jurisdictions.
The concurrence of two (2) Commissioners of a division
shall be necessary for the pronouncement of judgment or
resolution. Whenever the required membership in a division is
not complete and the concurrence of two (2) commissioners to
arrive at a judgment or resolution cannot be obtained, the
Chairman shall designate such number of additional
Commissioners from the other divisions as may be necessary.
The conclusions of a division on any case submitted to it
for decision shall be reached in consultation before the case is
assigned to a member for the writing of the opinion. It shall be
mandatory for the division to meet for purposes of the
consultation ordained herein. A certification to this effect signed
by the Presiding Commissioner of the division shall be issued and
a copy thereof attached to the record of the case and served upon
the parties.
The Chairman shall be the Presiding Commissioner of
the first division, and the seven (7) other members from the
public sector shall be the Presiding Commissioners of the second,
third, fourth, fifth, sixth, seventh, and eighth divisions,
respectively. In case of the effective absence or incapacity of the
Chairman, the Presiding Commissioner of the second division
shall be the Acting Chairman.
The Chairman, aided by the Executive Clerk of the
Commission, shall have exclusive administrative supervision over
the Commission and its regional branches and all its personnel,
including the Labor Arbiters.
The Commission, when sitting en banc shall be assisted
by the same Executive Clerk and, when acting thru its Divisions,
by said Executive Clerks for the second, third, fourth, fifth, sixth,
seventh, and eighth Divisions, respectively, in the performance of
 University of Santo Tomas
Faculty of Civil Law
such similar or equivalent functions and duties as are discharged
by the Clerk of Court and Deputy Clerks of Court of the Court of
Appeals.
The Commission and its eighth (8) divisions shall be
assisted by the Commission Attorneys in its appellate and
adjudicatory functions whose term shall be coterminous with the
Commissioners with whom they are assigned. The Commission
Attorneys shall be members of the Philippine Bar with at least
one (1) year experience or exposure in the field of labor-
management relations. They shall receive annual salaries and
shall be entitled to the same allowances and benefits as those
falling under Salary Grade twenty-six (SG 26). There shall be as
many Commission Attorneys as may be necessary for the
effective and efficient operation of the Commission but in no case
more than three (3) assigned to the Office of the Chairman and
each Commissioner.
No Labor Arbiter shall be assigned to perform the
functions of the Commission Attorney nor detailed to the office of
any Commissioner.
Tripartite Composition of the NLRC (Tripartism in Labor
Relations)
1. Representatives of workers
2. The employers
3. The public
Administrative Autonomy of NLRC
The NLRC has become autonomous for it is attached
to the DOLE for program and policy coordination only.
Trisectoral Composition
The Chairman and the 23 Commissioners shall be
chosen from the works, employers, and public sectors.
However, upon assumption into office, the members
nominated by the workers and employers organizations shall
divest themselves of any affiliation with or interest in the
federation or association to which they belong.
NLRC sitting en banc or in divisions
The NLRC sits en banc only for purposes of
promulgating rules and regulations governing the hearing and
disposition of cases before any of its divisions and regional
branches and formulating policies affecting its administration
and operations.
Adjudicatory function of NLRC exercised through its
divisions
The NLRC exercises its adjudicatory and all other
powers, functions, and duties through its divisions. 7
7
Union of Filipino Employees vs. NLRC, G.R. No. 91025 (1990).
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A.Y. 2017 – 2018, 1st Semester (4A) |4
The Divisions of the NLRC have exclusive appellate
jurisdiction over cases within their respective territorial
jurisdiction.8
Conclusions of a division
They shall be reached in consultation before the case
is assigned to a member for writing of the opinion. It shall be
mandatory for the division to meet for purposes of the
consultation ordained therein.
PURPOSE: To preclude any belief that certain
decisions of the NLRC are one-man decisions to
which other members only affix their signatures
signifying their concurrence. However, a member
may want to write a separate concurring or dissenting
opinion.
Pronouncement of a judgment
The concurrence of two (2) Commissioners of a
division shall be necessary for the pronouncement of a
judgment or resolution. Whenever the required membership in a
division is not complete and the concurrence of two (2)
commissioners to arrive at a judgment or resolution cannot be
obtained, the Chairman shall designate such number of additional
Commissioners from the other divisions as may be necessary.
The law vests upon the NLRC Chairman to effect
temporary assignments if the required concurrence is not met.
The territorial divisions do not confer exclusive jurisdiction to
each division and are merely designed for administrative
efficiency.9
Art. 221. Headquarters, Branches and Provincial Extension
Units. – The Commission and its first, second, third, fourth, fifth,
and sixth divisions shall have their main offices in Metropolitan
Manila, and the seventh and eight divisions in the Cities of Cebu
and Cagayan de Oro, respectively. The Commission shall
establish as many regional branches as there are regional offices
of the Department of Labor and Employment, sub-regional
branches or provincial extension units. There shall be as many
Labor Arbiters as may be necessary for the effective and efficient
operation of the Commission.
Art. 222. Appointment and Qualifications. – The Chairman and
other Commissioners shall be members of the Philippine Bar and
must have engaged in the practice of law in the Philippines for at
least fifteen (15) years, with at least five (5) years experience or
exposure in the field of labor-management relations, and shall
preferably be residents of the region where they are to hold
office. The Executive Labor Arbiters and Labor Arbiters shall
likewise be members of the Philippine Bar and must have been
engaged in the practice of law in the Philippines for at least ten
(10) years, with at least three (5) years experience or exposure in
the field of labor-management relations.
8
Mina vs. NLRC (1995).
9
Malayang Samahan ng Manggagawa sa Greenfield vs. Ramos, 326 SCRA
441.
 University of Santo Tomas
Faculty of Civil Law
The Chairman, the other Commissioners, and the
Labor Arbiters shall hold office during good behavior until they
reach the age of sixty-five (65) years, unless sooner removed for
cause as provided by law or become incapacitated to discharge
the duties of their office: Provided, however, That the President of
the Republic of the Philippines may extend the services of the
Commissioners and Labor Arbiters up to the maximum age of
seventy (70) years upon the recommendation of the Commission
en banc.
The Chairman, the Division Presiding Commissioners
and other Commissioners shall be appointed by the President.
Appointment to any vacancy shall come from the nominees of the
sector which nominated the predecessor. The Labor Arbiters
shall also be appointed by the President, upon recommendation
of the Commission en banc to a specific arbitration branch,
preferably in the regions where they are residents, and shall be
subject to the Civil Service Law, rules and regulations: Provided,
That the labor arbiters who are presently holding office in the
regions where they are residents shall be deemed appointed
thereat.
The Chairman of the Commission shall appoint the
staff and employees of the Commission and its regional branches
as the needs of the service may require, subject to the Civil
Service Law, rules and regulations, and upgrade their current
salaries, benefits and other emoluments in accordance with law.
Qualifications of the Chairman and the Commissioners
1. Must be member of the Philippine Bar;
2. Must have been engaged in the practice of law in the
Philippines for at least 15 years;
3. Must have experience or exposure in handling labor
management relations for at least 5 years;
4. Preferably a resident of the region where he is to hold
office.
Qualifications of Labor Arbiters
1. Must be member of the Philippine Bar;
2. Must have been engaged in the practice of law in the
Philippines for at least 10 years;
3. Must have experience or exposure in handling labor
management relations for at least 5 years.
Term of Office
The NLRC Commissioners and the Labor Arbiters
shall hold office during good behavior until they reach the age
of 65 years, unless sooner removed for cause as provided by
law or become incapacitated to discharge the duties of their
office. However, the President of the Philippines may extend
their services up to the maximum age of 70 years upon the
recommendation of the Commission en banc.
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Confirmation of appointment not needed
The 1987 Constitution does not expressly provide for
the confirmation of heads of bureaus and commissioners.10
Commissioners and Labor Arbiters have the right of
security of tenure
They are covered by the protective mantle of the
security of tenure clause of the Constitution. Thus, such
positions cannot be declared vacant.
Furthermore, they are civil service employees and
“no officer or employee in the civil service shall be removed
or suspended except for cause provided by law.” Thus, they
have the right to remain in service until the expiration of the
terms for cause provided by law.11
Art. 223. Salaries, Benefits and Emoluments. – The Chairman
and members of the Commission shall have the same rank,
receive an annual salary equivalent to, and be entitled to the
same allowances, retirement and benefits as those of the
Presiding Justice and Associate Justices of the Court of Appeals,
respectively. The Labor Arbiters shall have the same rank,
receive an annual salary equivalent to, and be entitled to the
same allowances, retirement and benefits as those of the Judges
of the Regional Trial Courts. In no case, however, shall the
provision of this Article result in the diminution of existing
salaries, allowances and benefits of the aforementioned officials.
Salaries, benefits and emoluments
1. Chairman and other Commissioners – same as the
Presiding Justice and Associate Justices of the CA,
respectively;
2. Labor Arbiters – same as the Judges of RTC
CHAPTER II
POWERS AND DUTIES
Art. 224. Jurisdiction of the Labor Arbiters and the Commission.
– (a) Except as otherwise provided under this Code, the Labor
Arbiters shall have original and exclusive jurisdiction to hear and
decide, within thirty (30) calendar days after the submission of
the case by the parties for decision without extension, even in the
absence of stenographic notes, the following cases involving all
workers, whether agricultural or non-agricultural:
1) Unfair labor practice cases;
2) Termination disputes;
3) If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of
employment;
10
Sarmiento III vs. Com. Mison, 156 SCRA 459; Mayor vs. Macaraig, 194
SCRA 672; Calderon vs. Carale, G.R. No. 91636 (1992).
11
Mayor vs. Macaraig, G.R. No. 87211 (1991).
 University of Santo Tomas
Faculty of Civil Law
4) Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations;
5) Cases arising from any violation of Article 264 of this
Code, including questions involving the legality of
strikes and lockouts; and
6) Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other
claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement.
(b) The Commission shall have exclusive
jurisdiction over all cases decided by Labor Arbiters.
(c) Cases arising from the interpretation or implementation
of collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies
shall be disposed of by the Labor Arbiter by referring the same
to the grievance machinery and voluntary arbitration as may be
provided in said agreements.
Original and Exclusive Jurisdiction of Labor Arbiters over
the following cases:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of
employment;
4. Claims for actual, moral, exemplary and other forms
of damages arising from the employer-employee
relations;
5. Cases arising from any violation of Article 264 of
this Code, including questions involving the legality
of strikes and lockouts; and
6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other
claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether accompanied
with a claim for reinstatement.
REQUIREMENT: The Labor Arbiter has jurisdiction
over controversies involving employers and employees
only if there is a “reasonable causal connection” between
the claim asserted and the employer-employee relations.
Absent such link, the complaint is cognizable by the
regular courts in the exercise of its civil and criminal
jurisdiction.12
12
Pepsi-Cola Distributors of the Phil., Inc. vs. Hon. Gallang, G.R. No. 89621
(1991).
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EXCEPTION: Despite the absence of employer-
employee relationship between the seafarer and the
manning agency, the NLRC has jurisdiction because the
jurisdiction of the Labor Arbiter is not limited to claims
arising from employer-employee relationship.13
NOTE: The cases of unfair labor practice, bargaining
deadlocks and termination disputes may be resolved
through grievance machinery or voluntary arbitration
procedures by agreement of the parties.14
NOTE: The Secretary of Labor and Employment has
concurrent jurisdiction over those cognizable by the
Labor Arbiter under Art. 236 (g), which is an exercise of
appellate
the assumption or the pre-emptive power.
Unfair Labor Practice Cases
Unfair Labor Practice
- An act of an employer or the union or their agents,
which violates the constitutional right of workers to
self-organization, which includes the following:
1. Right to form a union
2. Right to take part in its formation
3. Right to join or assist a union of their own
choosing for purposes of collective bargaining
and negotiations
4. Right to engage in concerted activities for mutual
help and protection
The civil aspect of all cases involving unfair labor
practices shall be under the jurisdiction of the Labor Arbiters.
A criminal case of a unfair labor practice cannot be
instituted until and unless the Labor Arbiter has decided on the
administrative and civil aspects of an unfair labor practice.
EXCEPTIONS:
1. The President or the Secretary of Labor is not
precluded from exercising jurisdiction over an
unfair labor practice which may cause a strike or
lockout in a vital industry.15
2. The parties can enter into an agreement to submit
an unfair labor practice dispute for resolution by
the voluntary arbitrator.16
13
Santiago vs. CF Sharp Crew Mgt., Inc., G.R. No. 162419 (2007).
14
Arts. 266-268.
15
Art. 263(g).
16
Art. 268.
 University of Santo Tomas
Faculty of Civil Law
Termination disputes
Termination
- Denotes dismissal or lay-off
Dismissal
- Discharge of an employee, a termination of an
employee at the instance of the employer.
Discharge
- Takes place when the employer has the resolute
intention to dispense with the services of the
employee.
Lay-off
- Termination initiated by the employer without
prejudice to recall or rehiring of a worker who has
been temporarily separated from the service.
Jurisdiction:
1. Labor Arbiter – termination or illegal dismissal cases
2. RTC – termination of a corporate officer (intra-
corporate dispute)
3. Voluntary Arbitrator – termination cases arising from
interpretation and implementation of the CBA
Gross violations of the CBA
- Refer to flagrant and/or malicious refusal to comply
with the economic provisions of the CBA, which is
considered as an unfair labor practice cognizable by
the Labor Arbiter.
NOTE: Ordinary CBA violations are mere grievances
subject to grievance machinery and voluntary arbitration
procedures.
Money claim with a claim for reinstatement
- This converts the cause of action from money claim
into an illegal dismissal case.
Money claim exceeding P5,000.00
Jurisdiction
1. Labor Arbiter
a. Money claim arising from employer-employee
relationship, regardless of amount, with a claim
for reinstatement.
b. Money claim arising from employer-employee
relationship, involving an amount exceeding
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P5,000.00, regardless of whether accompanied
with a claim for reinstatement.
2. Regional Director – money claims involving an
amount less than P5,000.00
Jurisdiction over money claims by the Regional Director
and Exercise of visitorial and enforcement power
Requisites in order for the Regional Director to try money
claims
1. The claim is presented by an employee or person
employed in domestic or household service, or
househelper under the law;
2. The claimant, no longer being employed, does not
seek reinstatement;
3. The aggregate money claim of the employee or
househelper does not exceed P5,000.00.
Plenary Visitorial Powers of the Secretary of Labor thru the
Regional Director
1. To order the inspection of all establishments where
labor is employed;
2. To look into possible violations of labor laws and
regulations;
3. To hear and decide employee’s claim exceeding
P5,000.00 in the exercise of such inspection power.
Enforcement Power of the Regional Director
Even if the amount of the claim exceeds P5,000.00, it
does not remove from the Regional Director to take
cognizance of the claim as he may still exercise the
enforcement power under Art. 128 (b).17
Claims for damages
Moral damages
- The same would be recoverable where the dismissal
of the employee was not only effected without
authorized cause or due process for which relief is
granted, but was attended by bad faith or fraud or
constituted an act oppressive to labor or was done in
a manner contrary to morals, good customs or public
policy.18
Exemplary Damages
- May also be decreed where moral damages are
awarded especially to an illegally dismissed
17
Cireneo Bowling Plaza vs. Sensing, G.R. No. 146572 (2005).
18
Suario vs. BPI, G.R. No. 50459 (1989).
 University of Santo Tomas
Faculty of Civil Law
employee whose dismissal was tainted with an unfair
labor practice.19
Violations of Article 270
Cases arising from the violation of activities related
to strikes, picketing, and lockouts and questions involving the
legality of strikes and lockouts are cognizable by the Labor
Arbiter.
Claims arising from employer-employee relationship
- Cognizable by the Labor Arbiter
Examples:
1. Claim for a house-and-lot prize for being the top
salesman.20
2. Claim for legal fees by an attorney-employee.21
Cases involving Migrant Workers (OFWs)
The Labor Arbiters shall have the original and
exclusive jurisdiction to hear and decide, within 90 calendar
days after the filing of the complaint, the claims arising out of
an employer-employee relationship or by virtue of any law or
contract involving Filipino workers for overseas deployment
including claims for actual, moral, exemplary, and other forms
of damages.22
Cases involving GOCCs without original charters
Subsidiaries or Corporate Offsprings
- GOCCs without original charters
- These were existing previously as private
corporations but were absorbed by GOCCs with
original charters or they were created pursuant to the
Corporation Code
- Employees of such are governed by the Labor Code
GOCC with original charters
- Employees of such are governed by the Civil Service
Commission
Jurisdiction over collateral matters
Where the Labor Arbiter has jurisdiction over the
main case, it likewise has full jurisdiction to consider and
decided all matters collateral thereto, such as claims for
attorney’s fees.23
19
Quadra vs. CA, G.R. No. 147593 (2006).
20
Pepsi-Cola Bottling Co. vs. Martinez, 112 SCRA 578.
21
Sentinel Insurance Co. vs. Bautista, 127 SCRA 623.
22
Sec. 10, R.A. No. 8042.
23
NAPOCOR vs. NLRC, G.R. No. 65802 (1988).
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Jurisdiction over labor disputes involving church men
Jurisdiction
1. Labor Arbiter – if what is involved is the relationship
of the church as an employer and the minister as an
employee; purely secular in nature
2. Not with the Labor Arbiter – ecclesiastical in nature
Filing of third-party claim with NLRC Sheriff re writ of
execution in a labor case
- Within the jurisdiction of the Labor Arbiter.24
Jurisdiction on issue of deduction for tax purposes
- If such issue is a money claim arising from the
employer-employee relationship, then it falls within
the jurisdiction if the Labor Arbiter and NLRC. 25
Cases not cognizable by the Labor Arbiter
1. The aggregate money claim of the employee does not
exceed P5,000.00 and without claim for
reinstatement26
2. Claims for employees compensation, social security,
Phil-health and maternity benefits27
3. Claim for employee for cash prize under the
Innovation Program of the company, although arising
out of employer-employee relationship, is one
requiring application of general civil law on contracts
which is within the jurisdiction of the regular courts 28
4. Claim for liquidated damages for breach of “non-
compete” provision in a contract within 2 years from
employees’ registration is intrinsically a civil
dispute29
5. Employer’s claim for a sum of money and damages
for cost of repair and jobs made upon employee’s
personal car30
6. Cause of action is based on quasi-delict or tort which
has no reasonable connection with any of the claims
under Art. 22431
7. A case of replevin filed by a charterer against striking
employees who were in possession of the vessel 32
8. Intra-corporate controversies which are within the
jurisdiction of RTC33
24
Deltaventures Resources, Inc. vs. Cobato, 327 SCRA 521.
25
Santos vs. Servier Phils., Inc., 572 SCRA 487.
26
27
Rajah Humabon Hotel, Inc. vs. Trajano, G.R. Nos. 10022-23 (1993).
Art. 224 (a)(6).
28
San Miguel Corp. vs. NLRC, 161 SCRA 719.
29
Yusen Air vs. Villamor, G.R. No. 154060.
30
Molave Motor Sales vs. Laron, 129 SCRA 485.
31
Ocheda vs. CA, 214 SCRA 629.
32
Basaya vs. Militante, 156 SCRA 299.
33
RA No. 8799.
 University of Santo Tomas
Faculty of Civil Law
9. Illegal dismissal case filed against a local water
district which is a quasi-public corporation falls
within the Civil Service Law34
10. Cases involving GOCCs with original charters
11. Cases involving unresolved grievances arising from
interpretation or implementation of a CBA
12. Cases involving unresolved grievances arising from
interpretation or enforcement of company personnel
policies
13. Complaint arising from violation of training
agreement35
14. To review an order and/or decision of another Labor
Arbiter
15. International agencies or other entities which enjoy
immunity from suit (ie. SEAFDEC, IRRI, ADB)
16. Claims of security guards against the Department of
Agriculture arising from the Contract for Security
Services should be brought to the COA36
17. Over a case in which the Labor Arbiter’s judgment
has assumed the character of finality and the same
may not lawfully reopen the case or modify or alter
the judgment most especially when the changes are
material and substantial, even if the judgment is
erroneous37
18. Charges of unethical conduct of lawyers38
19. In money claims filed by an employer against an
employee where the Labor Code is not involved 39
20. Injunctive power in labor disputes involving strikes
or lockout as the same falls within the primary
jurisdiction of the NLRC
21. Validity of acquisition or disposal by a union of the
property after the termination of the case 40
Exceptions to the Original and Exclusive Jurisdiction of
the Labor Arbiter
1. When the Secretary of Labor exercises his
assumption or pre-emptive power over national
interest cases
2. When the Secretary of Labor exercises its
compulsive arbitration power over national interest
cases certified by him
3. When the parties mutually agree to submit their case
to a voluntary arbitrator or panel of voluntary
arbitrators, who also exercise original and exclusive
jurisdiction over cases submitted to them by the
parties for arbitration.
Art. 225. Powers of the Commission. – The Commission shall
have the power and authority:
34
Hagonoy Water District vs. NLRC, G.R. No. 81490 (1988).
35
Singapore Airlines vs. Pano, 122 SCRA 671.
36
Department of Agriculture vs NLRC, 227 SCRA 693.
37
Cayena vs. NLRC, 194 SCRA 134.
38
Cadalin vs. POEA’s Administrator, G.R. N0. 104776 (1994).
39
Grotjahn vs. Usuani, 54 SCRA 289.
40
Halili vs. NLRC, 257b SCRA 174.
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(a) To promulgate rules and regulations governing the
hearing and disposition of cases before it and its regional
branches, as well as those pertaining to its internal functions and
such rules and regulations as may be necessary to carry out the
purposes of this Code;
(b) To administer oaths, summon the parties to a
controversy, issue subpoenas requiring the attendance and
testimony of witnesses or the production of such books, papers,
contracts, records, statement of accounts, agreements, and others
as may be material to a just determination of the matter under
investigation, and to testify in any investigation or hearing
conducted in pursuance of this Code;
(c) To conduct investigation for the determination of a
question, matter or controversy within its jurisdiction, proceed to
hear and determine the disputes in the absence of any party
thereto who has been summoned or served with notice to appear,
conduct its proceedings or any part thereof in public or in
private, adjourn its hearings to any time and place, refer
technical matters or accounts to an expert and to accept his
report as evidence after hearing of the parties upon due notice,
direct parties to be joined in or excluded from the proceedings,
correct, amend, or waive any error, defect or irregularity
whether in substance or in form, give all such directions as it may
deem necessary or expedient in the determination of the dispute
before it, and dismiss any matter or refrain from further hearing
or from determining the dispute or part thereof, where it is
trivial or where further proceedings by the Commission are not
necessary or desirable; and
(d) To hold any person in contempt directly or indirectly
and impose appropriate penalties therefor in accordance with
law.
A person guilty of misbehavior in the presence of or so near
the Chairman or any member of the Commission or any Labor
Arbiter as to obstruct or interrupt the proceedings before the
same, including disrespect toward said officials, offensive
personalities toward others, or refusal to be sworn, or to answer
as a witness or to subscribe an affidavit or deposition when
lawfully required to do so, may be summarily adjudged in direct
contempt by said officials and punished by fine not exceeding five
hundred pesos (P500) or imprisonment not exceeding five (5)
days, or both, if it be the Commission, or a member thereof, or by
a fine not exceeding one hundred pesos (P100) or imprisonment
not exceeding one (1) day, or both, if it be a Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter
may appeal to the Commission and the execution of the judgment
shall be suspended pending the resolution of the appeal upon the
filing by such person of a bond on condition that he will abide by
and perform the judgment of the Commission should the appeal
be decided against him. Judgment of the Commission on direct
contempt is immediately executory and unappealable. Indirect
contempt shall be dealt with by the Commission or Labor Arbiter
in the manner prescribed under Rule 71 of the Revised Rules of
Court; and
(e) 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
 University of Santo Tomas
Faculty of Civil Law
irreparable damage to any party or render ineffectual any
decision in favor of such party: Provided, That no temporary or
permanent injunction in any case involving or growing out of a
labor dispute as defined in this Code shall be issued except after
hearing the testimony of witnesses, with opportunity for cross-
examination, in support of the allegations of a complaint made
under oath, and testimony in opposition thereto, if offered, and
only after a finding of fact by the Commission, to the effect:
1. That prohibited or unlawful acts have been threatened
and will be committed and will be continued unless
restrained, but no injunction or temporary restraining
order shall be issued on account of any threat,
prohibited or unlawful act, except against the person or
persons, association or organization making the threat
or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual
knowledge thereof;
2. That substantial and irreparable injury to
complainant’s property will follow;
3. That as to each item of relief to be granted, greater
injury will be inflicted upon complainant by the denial
of relief than will be inflicted upon defendants by the
granting of relief;
4. That complainant has no adequate remedy at law; and
5. That the public officers charged with the duty to protect
complainant’s property are unable or unwilling to
furnish adequate protection.
Such hearing shall be held after due and personal notice
thereof has been served, in such manner as the Commission shall
direct, to all known persons against whom relief is sought, and
also to the Chief Executive and other public officials of the
province or city within which the unlawful acts have been
threatened or committed, charged with the duty to protect
complainant’s property: Provided, however, that if a
complainant shall also allege that, unless a temporary restraining
order shall be issued without notice, a substantial and
irreparable injury to complainant’s property will be unavoidable,
such a temporary restraining order may be issued upon
testimony under oath, sufficient, if sustained, to justify the
Commission in issuing a temporary injunction upon hearing
after notice. Such a temporary restraining order shall be effective
for no longer than twenty (20) days and shall become void at the
expiration of said twenty (20) days. No such temporary
restraining order or temporary injunction shall be issued except
on condition that complainant shall first file an undertaking with
adequate security in an amount to be fixed by the Commission
sufficient to recompense those enjoined for any loss, expense or
damage caused by the improvident or erroneous issuance of such
order or injunction, including all reasonable costs, together with
a reasonable attorney’s fee, and expense of defense against the
order or against the granting of any injunctive relief sought in
the same proceeding and subsequently denied by the
Commission.
The undertaking herein mentioned shall be understood to
constitute an agreement entered into by the complainant and the
surety upon which an order may be rendered in the same suit or
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proceeding against said complainant and surety, upon a hearing
to assess damages, of which hearing, complainant and surety
shall have reasonable notice, the said complainant and surety
submitting themselves to the jurisdiction of the Commission for
that purpose. But nothing herein contained shall deprive any
party having a claim or cause of action under or upon such
undertaking from electing to pursue his ordinary remedy by suit
at law or in equity: Provided, further, That the reception of
evidence for the application of a writ of injunction may be
delegated by the Commission to any of its Labor Arbiters who
shall conduct such hearings in such places as he may determine
to be accessible to the parties and their witnesses and shall
submit thereafter his recommendation to the Commission.
Powers of the NLRC
1. Rule-making power (Power of Subordinate
Legislation or Quasi-Legislative Power)
a. Governing the hearing and disposition of
the cases before it and its regional
branches;
b. Pertaining to its internal functions; and
c. As may be necessary to carry out the
purposes of the Code.
2. Power to issue compulsory processes
(Investigatory or Inquisitorial Power), which
includes the power to:
a. Administer oaths;
b. Summon parties; and
c. Issue subpoenas ad testificandum and
duces tecum.
3. Power to conduct investigation and hear dispute
or controversy within its jurisdiction, which
includes the power to:
a. Conduct investigations for the
determination of a question, matter or
controversy within its jurisdiction; and
b. Proceed to hear and determine disputes.
4. Power to hold any person in contempt (Contempt
Power)
a. Direct contempt – the person summarily
adjudged in direct contempt by the LA
may appeal to the NLRC and the
execution of the judgment shall be
suspended pending the resolution of the
appeal upon the filing of such person of a
bond on condition that he will abide by
and perform the judgment of the NLRC
should the appeal be decided against
him. NLRC judgment should be
immediately executor and inappealable.
University of Santo Tomas
Faculty of Civil Law
b. Indirect contempt – shall be dealt with by
the NLRC or LA in the manner
prescribed under Rule 71 of the Rules of
Court.
5. Power to issue injunctions and restraining orders
(Injunctive Power)
Power to issue injunction
- must be in ordinary labor disputes, that is, those
not involving strikes or lockouts
NOTE: Existence of a labor dispute is
jurisdictional.
Requirements for the issuance of a valid
injunction
a. Prohibited or unlawful acts have been
threatened and will be committed unless
restrained;
b. Substantial and irreparable injury to
complainant’s property will follow;
c. Greater injury will be inflicted upon the
complainant by a denial of the relief
than will be inflicted upon the
defendant by granting the relief;
d. Complainant has no adequate remedy at
law;
e. The public officers charged with the
duty to protect complainant’s property
are unwilling to furnish adequate
protection; and
f. Due process of law must be observed,
i.e. a hearing must be conducted
(jurisdictional requirement)
NOTE: An injunction is issued de parte.
Power to issue TRO
- to compel the parties to maintain the matters in
controversy in status quo until the question of
whether or not a temporary or preliminary
injunction ought to be issued may be determined.
Requirements for the issuance of a TRO
a. A complainant also alleges that, unless
a TRO is issued without notice, a
substantial and irreparable injury to
complainant’s property will be
unavoidable;
b. The testimony under oath of the
complainant is sufficient, if sustained,
to justify the NLRC in issuing a
temporary injunction;
c. Such TRO shall be effective for not
longer than 20 days and shall be void at
the expiration of the 20 days;
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d. Complainant shall file an undertaking
with adequate security (a bond) in an
amount to be fixed by the NLRC; and
e. A hearing must be conducted where the
sworn testimony of the applicant should
be received.
NOTE: A TRO may be issued ex parte,
when the urgency of the situation or extreme
necessity so demands. It shall be valid for a
period not exceeding 20 days.
6. Power to resolve certified cases under Art. 278 (g)
(Assumption/Pre-emptive Power of the
President/SOLE in an industry indispensable to
national interest)
- When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the
SOLE may assume jurisdiction over the dispute and
decide it or certify the same to the NLRC for
compulsory arbitration.
- Such assumption or certification shall have the
effect of automatically enjoining the intended or
impending strike or lockout.
NATURE: Plenary, full, public, and at the same time
discretionary.
- The President/SOLE may assume jurisdiction:
a. Motu proprio; or
b. The employer may file a petition for
assumption directly to the SOLE or the
union or both.
NOTE: Under the old Labor Code, the law speaks of
a vital industry. The law enumerated cases of vital
industry disputes. However, under the new Labor
Code, it states “industry indispensable to the national
interest,” and there is no enumeration of the cases
constituting such. Thus, the determination of
industries which are indispensable to national interest
are under the latitude or discretion of the
President/SOLE.
NOTE: Injunctive relief is not an adequate remedy to
restrain an employer from investigating an erring
employee for it is a management prerogative.
Jurisdiction of the NLRC
1. Original Jurisdiction
a. Cases certified to it for compulsory arbitration
by the President/SOLE;
 University of Santo Tomas
Faculty of Civil Law
b. Cases on injunction;
c. Cases on contempt;
2. Appellate Jurisdiction
a. Cases decided by the Regional Offices of the
DOLE in the exercise of its adjudicatory
function;
b. Cases decided by the LA pursuant to Art.
224(b) and Sec. 10 of RA No. 8042 or the
Migrant Workers and Overseas Filipino Act;
c. Cases decided by the LA on wage distortion
problem in non-unionized establishment and
cases certified by the Regional Director
pursuant to Art. 128(b); and
d. Denial of the claim of the third party where
property was levied by the Sheriff of the LA.
Art. 226. Ocular inspection. – The Chairman, any Commissioner,
Labor Arbiter or their duly authorized representatives, may, at
any time during working hours, conduct an ocular inspection on
any establishment, building, ship or vessel, place or premises,
including any work, material, implement, machinery, appliance
or any object therein, and ask any employee, laborer, or any
person, as the case may be, for any information or data
concerning any matter or question relative to the object of the
investigation.41
Power to conduct ocular inspection
The Chairman, any Commissioner, LA, or their duly
authorized representative may, at any time during work hours:
1. Conduct an ocular inspection on any establishment,
building, ship, place or premises, including any work,
material, implement, machinery, appliance, or any
object therein; and
2. Ask any employee, laborer, or any person, for any
information or data concerning any matter or
question relative to the object of investigation.
NOTE: An ocular inspection is an auxiliary remedy that law
affords to the parties and the labor tribunal to reach an
enlightened determination of the case. It does not constitute
full hearing.
Art. 227. Technical rules not binding and prior resort to amicable
settlement. – In any proceeding before the Commission or any of
the Labor Arbiters, the rules of evidence prevailing in courts of
law or equity shall not be controlling and it is the spirit and
intention of this Code that the Commission and its members and
the Labor Arbiters shall use every and all reasonable means to
ascertain the facts in each case speedily and objectively and
without regard to technicalities of law or procedure, all in the
41
Repealed by Sec. 6, BP Blg. 130, which expressly provides that: “Section
16. Articles 220, 228, paragraph (f) of Article 251, Article 266, paragraph (b)
of Article 273 of the Labor Code and all provisions of said Code and other
laws, orders, decrees and rules and regulations inconsistent with the
provisions of this Act, are hereby repealed.”
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interest of due process. In any proceeding before the Commission
or any Labor Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the Chairman, any Presiding
Commissioner or Commissioner or any Labor Arbiter to exercise
complete control of the proceedings at all stages.
Any provision of law to the contrary notwithstanding,
the Labor Arbiter shall exert all efforts towards the amicable
settlement of a labor dispute within his jurisdiction on or before
the first hearing. The same rule shall apply to the Commission in
the exercise of its original jurisdiction.
Doctrine of Speedy Labor Justice
The NLRC, tasked to administer speedy labor justice,
shall be free from technical rules of procedure and evidence.
Technical rules of procedure and evidence, relaxed in
labor cases
Rules of procedure and evidence in courts of law or
equity shall not control labor proceedings. The application of
technical rules of procedure and evidence may be relaxed in
labor cases to serve the demands of substantial justice.
Position paper proceeding allowed
Labor cases can be decided on the basis of position
papers and other documents submitted by the contending
parties without resorting to the technical rules of evidence
observed in the court of justice. However, it is required for the
parties to attach all documentary evidence to their position
papers for there is no need of a formal trial. A trial is
discretionary on the LA.
Immediately after submission by the parties of their
position paper/memoranda, the LA shall motu proprio shall
determine whether there is need for a formal trial or hearing.
At this stage, he may, at his discretion and for the purpose of
making such determination, ask clarificatory questions to
further elicit facts or information.
Lack of verification and failure to submit position paper
not fatal
The lack of verification of the position paper-
affidavit is a formal rather than a substantial defect. Likewise,
the failure to submit position paper on time is not one of the
grounds for the dismissal of a complaint in labor cases.
NOTE: Principle of res judicata may not be invoked in labor
relations proceedings because such are non-litigious and
summary in nature.
NOTE: Due process should be observed despite disregard of
technical rules of procedure.
 University of Santo Tomas
Faculty of Civil Law
Art. 228. Appearances and Fees.42 – (a) Non-lawyers may appear
before the Commission or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
(b) No attorney’s fees, negotiation fees or similar charges of
any kind arising from any collective bargaining agreement shall
be imposed on any individual member of the contracting union:
Provided, However, that attorney’s fees may be charged against
union funds in an amount to be agreed upon by the parties. Any
contract, agreement or arrangement of any sort to the contrary
shall be null and void.
Appearance of non-lawyers
Non-lawyers can appear in the following cases:
1. If they represent themselves;
2. If they represent their organization or members
thereof; and
3. If he is a duly-accredited member of the legal aid
office duly recognized by the DOJ or IBP in cases
referred thereto by the latter.
Appearance of unions as counsel
The appearance of labor federations and local unions
as counsel in labor proceedings has been given legal sanction
under Art. 228, which allows non-lawyers to represent their
organization or members thereof.
Attorney’s fees for negotiating a CBA
The law prohibits the payment of attorney’s fees only
when it is effected through forced contributions from the
workers from their own funds as distinguished from the union
funds.
The obligation to pay the attorney’s fees belongs to
the union.
The 10% attorney’s fees shall be paid to him on the
total benefits secured after the CBA negotiations.
All benefitted employees shall pay the attorney’s
fees.
Collection of special assessment prohibited
The collection of special assessment for the payment
of services rendered by union officers, consultants and others,
is a form of an exaction which falls in the category of a
“similar charge” and therefore prohibited under the law.
42
As amended by PD No. 1691. See also Sec. 6, Rule III of the 2011 Rules of
Procedure of the NLRC.
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Union’s special assessment for incidental expenses,
attorney’s fees and representation expenses is valid upon
concurrence of the 3 conditions:
1. Authorization by a written resolution of the majority
of all the members at the general membership
meeting which was called for the purpose;
2. Minutes of the meeting duly recorded by the
secretary; and
3. Written authorization for check-off duly signed by
each employee.
NOTE: Union officers, who are non-lawyers, are not entitled
to attorney’s fees.
CHAPTER III
APPEAL
Art. 229. Appeal.43 – Decisions, awards, or orders of the Labor
Arbiter are final and executory unless appealed to the
Commission by any or both parties within ten (10) calendar days
from receipt of such decisions, awards, or orders. Such appeal
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 the decision, order or award was secured through
fraud or coercion, including graft and corruption;
(c) If made purely on questions of law; and
(d) If serious errors in the findings of facts are raised which
would cause grave or irreparable damage or injury to
the appellant.
In case of a judgment involving a monetary award, an
appeal by the employer may be perfected only upon the posting
of a cash or surety bond issued by a reputable bonding company
duly accredited by the Commission in the amount equivalent to
the monetary award in the judgment appealed from
.
In any event, the decision of the Labor Arbiter reinstating a
dismissed or separated employee, insofar as the reinstatement
aspect is concerned, shall immediately be executory, even
pending appeal. The employee shall either be admitted back to
work under the same terms and conditions prevailing prior to his
dismissal or separation or, at the option of the employer, merely
reinstated in the payroll. The posting of a bond by the employer
shall not stay the execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission
or the Labor Arbiter shall impose reasonable penalty, including
fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the
memorandum of appeal to the other party who shall file an
answer not later than ten (10) calendar days from receipt thereof.
43
As amended by Sec. 12, RA No. 6715 (1989).
 University of Santo Tomas
Faculty of Civil Law
The Commission shall decide all cases within twenty (20)
calendar days from receipt of the answer of the appellee.
The decision of the Commission shall be final and executory
after ten (10) calendar days from receipt thereof by the parties.
Any law enforcement agency may be deputized by the
Secretary of Labor and Employment or the Commission in the
enforcement of decisions, awards or orders.
I. Appeals from LA to NLRC
Period to file appeal
Decisions or orders of the LA may appealed to the
NLRC by any or both parties within 10 calendar days from
receipt of such decisions or orders. Otherwise, the shall
become final and executor upon the expiration of such period
which entitles the prevailing party, as a matter of right, to a
writ of execution and issuance thereof is a ministerial duty
compellable by mandamus.44
Commencement of the 10-day period
The 10-day reglementary period should be counted
from the date of receipt by:
1. The party, if not represented by a counsel; or
2. The counsel of record, at his given address, when
a party is represented by a counsel 45
Receipt by one of several counsels is receipt by the
party. Failure of the counsel to notify the party on time of the
adverse judgment to enable him to appeal therefrom is
negligence, which is not excusable. Notice sent to counsel on
record is binding on the client and is not a ground to set aside
a valid judgment.46
Compliance with appeal period mandatory; Exceptions
GR: Compliance with appeal period is not only mandatory but
is jurisdictional and failure to conform to the rules will render
the judgment sought to be reviewed final and unappealable.
XPN:
1. The delay in the perfection of an appeal was only one
day which was caused by an excusable negligence. 47
2. The higher interest of substantial justice demands the
relaxation of the rule to prevent miscarriage of justice
44
Abbot vs. NLRC, 145 SCRA 206.
45
Applying the provisions on service of notices, pleadings, orders, and the
like under Sec. 2, Rule 13 of the Rules of Court.
46
Curaza vs. NLRC, 354 SCRA 453.
47
PAL vs. NLRC, G.R. No. 120506 (1996).
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or of unjust enrichment48 and in the exercise of the
adjudicating body’s equity jurisdiction49
BUT, the existence of such substantial justice
should not be premised on:
(a) The alleged extreme poverty; and
(b) The thesis that the acceptance of benefits and
subsequent execution of a quitclaim did not bar
the respondents from pursuing their claims. 50
3. Due to special circumstances of the case with its
attendant legal merits.
4. With due consideration of the amount and the issue
involved in the case.
10th day falls on a Saturday/Sunday/Holiday
The appeal many be made on the next working day.
Frivolous or dilatory appeal
The NLRC and the LA have the power to impose
reasonable penalties upon a party for filing a frivolous appeal.
This implies that even when appeal is still with the LA, and
not yet transmitted to the NLRC, the former may already find
it frivolous and, there and then, terminate the appeal.
Appeal seasonably filed benefits a co-party
It is a settled rule that a reversal of a judgment
obtained by a party appealing from it also benefits a co-party
who had not appealed, or who had appealed out of time, where
the rights and liabilities of both parties under the modified
decision are so interwoven and interdependent as to be
substantively inseparable.
Doctrine of Immutability of Final Judgment
Once the judgment has become final and executor, it
may no longer be modified in any aspect, even if the
modification is meant to correct what is perceived to be an
erroneous conclusion of fact or law, and regardless of whether
the modification is attempted to be made by the arbiter
rendering it or by the highest court of the land as what remains
to be done is purely ministerial enforcement or execution of
the judgment.
Motion for reconsideration treated as an appeal
The only remedy of the losing party from the decision
of the LA is to appeal to the NLRC, as no motion for
reconsideration or petition for relief from judgment may be
entertained by the LA.
48
Blancaflor vs. NLRC, 218 SCRA 366.
49
Ranises vs. NLRC, G.R. No. 111914 (1996).
50
American Home Insurance Co. vs. NLRC, G.R. No. 111929 (1996).
 University of Santo Tomas
Faculty of Civil Law
Whenever a motion for reconsideration of the
decision of the LA is filed, it will be properly treated or
considered as an appeal.
Grounds for Appeal
1. Prima facie evidence of abuse of discretion;
2. Fraud or coercion, including graft and corruption in
securing the decision;
3. Pure questions of law; and
4. Serious errors in findings of facts causing grave or
irreparable damage or injury
Requirements for Appeal
1. Memorandum of appeal under oath; with verification
and certificate of non-forum shopping;
2. Payment of appeal, docket, or filing fees;
3. Posting of cash or surety bond, if the judgment
involves monetary award
Surety bond
a. It shall be issued by a reputable company duly
accredited by the NLRC and the SC; and
b. Shall be accompanied by a joint declaration
under oath by the employer, his counsel, and the
bonding company, attesting that the bond posted
is genuine, and shall be in effect until final
disposition of the case.51
4. Proof of service of copy to the adverse party
In addition, the NLRC requires the following:
a. Original copy of the bond;
b. Amount of the bond;
c. Certificate of accreditation and authority from
the SC certifying that the bonding company has
not outstanding liability;
d. Certified copy of Authority issued to the bonding
company by the Insurance Commission;
e. Certificate of registration from the SEC;
f. Certificate of authority to transact business from
the Office of the President;
g. A copy of the Indemnity Agreement between the
employer-appellant and the bonding company;
h. A copy of security depositor collateral securing
the bond such as Certificate of Time Deposit
issued by the bank; and
i. Notarized Board Resolution or Secretary’s
certificate.
NOTE: A mere notice of appeal does not constitute
the appeal and shall not stop the running of the period
for perfecting an appeal.
51
Sec. 6, Rule VI, 2011 Rules of Procedure of the NLRC.
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A. Memorandum of Appeal
The appellant shall furnish a copy of the
memorandum of appeal to the other party who shall file an
answer not later than 10 calendar days from receipt thereof.
Failure to furnish copy of appeal memorandum to
adverse party is not a fatal defect under the doctrine of speedy
labor justice.
The motion for extension of time to file a record on
appeal may be made before the expiration of the reglementary
period for filing said record on appeal. If the order if the
NLRC granting the motion is issued only after the expiration
of the original period, the appeal may still be perfected within
a period extended. Likewise, the appeal is deemed perfected
only after the approval of the record on appeal.
B. Payment of appeal, docket, or filing fees
It is an essential requirement in the perfection of an
appeal without which the decision appealed from would
become final and executory.
Thus, if not paid, it is fatal to the appeal, as it is not a
matter of procedure but a matter of jurisdiction.
C. Posting of cash or surety bond
1. In case of a judgment involving a monetary award,
the appeal by the employer may be perfected only
upon the posting of a cash or surety bond issued by a
reputable bonding company, in an amount equivalent
to the monetary award, exclusive of moral and
exemplary damages as well as attorney’s fees.
Thus, it is a jurisdictional requirement and
non-compliance therewith is fatal and renders the
award final and executory.
XPN: Instances where posting of cash or surety bond
is relaxed:
a. The notice of decision, while stating the
requirements of the appeal, did not mention
that a bond must be filed;
b. The failure of the LA to state the exact
amount of backwages and separation pay,
for which there was no basis to compute the
amount of the bond;
c. On account of insolvency or poverty;
d. Property bond is posted where the worth of
the property is substantial to cover the
monetary award.52
52
UERM Medical Center vs. NLRC, G.R. No. 110419 (1997).
 University of Santo Tomas
Faculty of Civil Law
NOTE: Property bond is generally not a
substitute to cash or surety bond. The only
exception is the UERM case.
NOTE: A bank certification or an
irrevocable bank guarantee cannot validly
substitute a cash and surety bond.
NOTE: It is the LAW that fixes the amount of the
bond, that is equivalent to the amount of monetary
award.
2. If the appeal by the employer raises no questions
other than the award of moral and/or exemplary
damages and the appellant is prepared to accept and
comply with all and any other monetary award, the
bond is not required.
Motion to reduce bond
A motion to reduce bond can be entertained by the
NLRC only:
1. When filed within the reglementary period to appeal;
2. On meritorious grounds; and
3. Upon posting of the full or reasonable amount in
relation to the monetary award.
NOTE:
Reasonable amount of the bond = at least 20%
Reasonable amount of the appeal bond + motion to
reduce bond = 10%
10% appeal bond APPLIES ONLY to motion to
reduce bond53
EFFECTS:
1. If denied – the appellant is given 10-day fresh period
to pay the full amount of the bond; otherwise, the
appeal shall be dismissed.
2. If filed, but no bond is posted – the LA’s decision is
final and executor and the NLRC acquires no
appellate jurisdiction over the motion.
LA’s decision immediately executory as to reinstatement
aspect
The decision of the LA reinstating a dismissed or
separated employee, insofar as the reinstatement aspect in
concerned, shall immediately be executory, even pending
appeal.
53
McBurnie vs. Ganzon, G.R. Nos. 178034, 178117, 186984-85 (2013).
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The posting of a bond by the employer shall not stay
the reinstatement of the dismissed employee.
Reinstatement self-executory pending appeal
Reinstatement pending appeal is immediately
executory and at the same time self-executory (immediately
self-executory).54 It is in accord with the doctrine of speedy
labor justice for an illegally dismissed employee shall be
immediately restored to his former position sans the
procedural requirement of a writ of execution.
Immediately executory – it requires a motion for
issuance of a writ of execution.
Immediately self-executory – it is reinstatement sans
writ of execution.
NOTE:
1. Reinstatement, insofar as LA is concerned –
immediately self-executory.
2. On appeal, the NLRC reinstated the employee, which
was not previously ordered by the LA – not self-
executory.
Effect of refusal of the employer to reinstate the employee
The employer has 2 options to comply with the order
of reinstatement, even pending appeal:
1. Admit the dismissed employee back to work under
the same terms and conditions prevailing prior to his
dismissal or separation in a substantially equivalent
position; or
2. If the former position is already filled up, he can
merely reinstate the employee in the payroll
NOTE: Reinstatement in the payroll violates the no-
work no-pay policy, but it is the mandate of the law
(dura lex sed lex).
Failure to exercise any of the above options or
unreasonably delay reinstatement, the employer can be
compelled to pay instead the salary of the employee from the
date the employer failed to reinstate him.
Effect of finding legal dismissal in payroll reinstatement
A dismissed employee whose case was favorably
decided by the LA is entitled to receive wages pending appeal
upon reinstatement which is immediately self-executory.55
54
Pioneer Texturizing Corp. vs. NLRC, G.R. No. 118651 (1997).
55
Garcia vs. PAL, G.R. No. 164856 (2009).
 University of Santo Tomas
Faculty of Civil Law
Appeal to the NLRC not part of the arbitration proceeding
When the LA rendered his decision, compulsory
arbitration is deemed terminated because by then, the hearing
and determination of the controversy has ended. Any appeal
from the LA’s decision is already beyond the scope of
arbitration since in the appeal stage, the NLRC merely reviews
the LA’s decision for errors of fact or law and no longer
duplicates the proceedings before the LA. 56
II. Appeals from NLRC to CA
GR: No law provides for an appeal from decisions of NLRC;
hence, there can be no review and reversal on appeal by higher
authority of its factual or legal conclusions.
XPN: When it decides a case without or in excess of
jurisdiction, or with grave of abuse of discretion, the aggrieved
party may file a Petition for Certiorari with the CA under
Rule 65 of the Rules of Court.57
Motion for Reconsideration
Functions of a motion for reconsideration
1. To rectify the error committed by the NLRC
2. To comply with the doctrine of exhaustion of
administrative remedies
3. Requisite sine qua non prior to the filing of the
Petition for Certiorari before the CA under the
doctrine of hierarchy of courts.
GR: Only 1 motion for reconsideration of the decision or
order of the NLRC should be seasonably filed as requisite sine
qua non prior to certiorari.
XPN: Such requirement does not apply:
1. Where the decision sought to be annulled is a
nullity;58 or
2. The petition is grounded on purely questions of law. 59
Petition for Certiorari filed before the CA (Rule 65)
It shall be filed not later than 60 days from notice of
judgment, order or resolution. In case a motion for
reconsideration is timely filed, the 60-day period shall be
counted from the notice of the denial of said motion.
3essential dates required in the Petition for Certiorari
1. Date when notice of judgment or final order or
resolution of NLRC was received;
2. Date when a motion for reconsideration is filed;
56
PAL, Inc. vs. NLRC, 180 SCRA 555.
57
St. Martin’s Funeral Home vs. NLRC, G.R. No. 130886 (1988).
58
Quiambao vs. NLRC, G.R. No. 91935 (1996).
59
Samson vs. NLRC, G.R. No. 113166 (1996).
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3. Date when the notice of the denial thereof was
received.
Failure to comply with the above requirement is a
sufficient ground to dismiss the petition.
NOTE: Submission of “certified Xerox copy” of the
judgment, etc. in a Petition for Certiorari is substantial
compliance, as it is no different from a “certified true
copy” of the original document.60
Finality of findings of facts; Exceptions
GR: Findings of facts of quasi-judicial agencies which have
acquired expertise because their jurisdiction is confined to
specific matters are accorded not only respect but at times
even finality if such findings are supported by substantial
evidence.
XPN:
1. Whenever the factual findings are not supported by
evidence
2. Where the findings are vitiated by fraud, imposition,
or collusion
3. Where the procedure which led to the factual findings
is irregular
4. When palpable errors are committed
5. When a grave abuse of discretion, arbitrariness, or
capriciousness is manifest
6. When the conclusion is a finding grounded entirely
on speculations
7. When the inference made is manifestly mistaken,
absurd, or impossible
8. Where there is grave abuse of discretion
9. When the judgment is based on a misapprehension of
facts
10. When the adjudicating agency, in making its
findings, went beyond the issues of the case and the
same are contrary to the admissions of both appellant
and appellee
11. When the factual findings of the NLRC and the other
LA are at odds with each other
Certification against non-forum shopping
Revised Circular No. 29-91 requires that a party must
certify under oath that
1. He has not commenced any other action or
proceeding involving the same issues in the SC,
CA, or any other tribunal or agency;
2. To the best of his knowledge, no such action or
proceeding is pending in said courts or agencies.
60
Quintano vs. NLRC, G.R. No. 144517 (2004).
 University of Santo Tomas
Faculty of Civil Law
A violation thereof entails sanctions including
summary dismissal of the multiple petitions or complaints,
contempt of court and appropriate actions against the counsel
or party concerned.
Verification of the Petition
Lack of verification is merely a formal defect which
is neither jurisdictional nor fatal.
III. Appeals from CA to SC
Appeal by Certiorari to the SC from CA under Rule 45
The appeal from a final disposition of the CA is a
Petition for Review on Certiorari under Rule 45. The
reglementary period to appeal is 15 days from notice of
judgment or denial of the motion for reconsideration. It is but
a continuation of the appellate process.
GR: A Petition for Certiorari under Rule 65 cannot be a
substitute for a lost appeal under Rule 45.
XPN:
1. When public welfare and the advancement of public
policy dictates
2. When the broader interests of justice so require
3. When the writs issued are null
4. When the questioned order amounts to an oppressive
exercise of judicial authority
Judicial review of question of facts
GR: Findings of fact of LA and NLRC are generally accorded
respect and finality and are binding upon the SC.
XPN: Judicial review of findings of fact is allowed under the
following instances:
1. Where the factual findings of the LA and NLRC and
those of the CA are contradictory or diametrically
opposed
2. When the conclusions of the CA are based on
speculations, surmises and conjectures
3. Where the judgment of the CA is premised on
misapprehension of facts
4. When the CA failed to take into account and consider
the facts which if properly considered would justify a
different conclusion.61
Grounds to file Petition for Review on Certiorari under
Rule 45 (According to Dean Poquiz)
1. Grave abuse of discretion
61
Grand Boulevard Hotel vs. Dacanay, G.R. No. 153665 (2003).
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2. Pure questions of law
3. Misapprehension of facts
4. Changing the tenor of the decision
5. Due to fraud, imposition or collusion
6. When the decisions are at
odds/contradictory/diametrically opposed with each
other
NOTE: The aggrieved party may file a motion for
reconsideration of SC decision. If denied, the aggrieved
party can still file the same until he/she is told to stop.
Remand of a case from the SC or the CA
A case dismissed by the CA on procedural defects
but reversed by the SC may be remanded to the CA for the
proper determination of the substantive issue.
However, remand of a case is not proper if it would
cause undue delay of its disposition.
Art. 230. Execution of decisions, orders or awards. – (a) The
Secretary of Labor and Employment or any Regional Director,
the Commission or any Labor Arbiter, or Med-Arbiter or
Voluntary Arbitrator may, motu proprio or on motion of any
interested party, issue a writ of execution on a judgment within
five (5) years from the date it becomes final and executory,
requiring a sheriff or a duly deputized officer to execute or
enforce final decisions, orders or awards of the Secretary of
Labor and Employment or regional director, the Commission,
the Labor Arbiter or Med-Arbiter, or Voluntary Arbitrator or
panel of Voluntary Arbitrators. In any case, it shall be the duty
of the responsible officer to separately furnish immediately the
counsels of record and the parties with copies of said decisions,
orders or awards. Failure to comply with the duty prescribed
herein shall subject such responsible officer to appropriate
administrative sanctions.
(b) The Secretary of Labor and Employment, and the
Chairman of the Commission may designate special sheriffs and
take any measure under existing laws to ensure compliance with
their decisions, orders or awards and those Labor Arbiters and
Voluntary Arbitrator or panel of Voluntary Arbitrators,
including the imposition of administrative fines which shall not
be less than P500.00 nor more than P10,000.00.
Issuance of Writ of Execution
A writ of execution may be issued by the following
officials for the final decisions, orders or awards promulgated
by them:
1. Secretary of Labor and Employment
2. Regional Director
3. NLRC
4. LA
5. Med-Arbiter
6. Voluntary Arbitrator; or
7. Panel of Voluntary Arbitrators
 University of Santo Tomas
Faculty of Civil Law
The writ of execution on judgment may be issued:
1. Motu proprio; or
2. On motion of any interested party within 5 years
from the date it becomes final and executory
A writ of execution must conform strictly with every
essential particular of the judgment promulgated. Where it is
in excess of and beyond the original judgment or award, the
execution is void.
The prevailing party, once the judgment has become
final and executor, is entitled as a matter of right to a writ of
execution; and issuance thereof is a ministerial duty of the LA,
compellable by mandamus.
Order of execution of final and executor judgment not
appealable; Exceptions
GR: An order of execution of a final and executor judgment is
not appealable.
XPN:
1. Where the Order of Execution varies or goes beyond
the terms of the judgment it seeks to enforce;
2. Where the terms of the judgment are ambiguous and
leave a room for doubt;
3. Where the implementation of the Order was irregular
Supervening events that may affect execution
It is the duty of the NLRC to consider the same and
inquire into the correctness of the execution, as such
supervening events may affect such execution and to give
petitioner its day in court to present evidence on the
supervening events that would affect the award.
NOTE: The power of the NLRC to issue a writ of execution
carries with it the right to look into the correctness of the
execution of the decision in the case and to consider the
supervening events that may affect the execution.
Jurisdiction over motion to quash
The NLRC has jurisdiction to entertain motions to
quash its writ of execution or set aside a sheriff’s sale on the
ground of satisfaction of judgments or by reason of the full
payments of judgment debt because every court has the
inherent power for the advancement of justice, to correct
errors of its ministerial officers and to control its own
processes.
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Grounds for quashal of a writ of execution
1. Where the writ has been improvidently issued;
2. Where the writ has been issued not to the proper
party;
3. Where the judgment debt has already been fully paid;
4. Where the writ has been issued without authority;
5. Where there is change in the situation of the parties
that makes the execution inequitable;
6. Where there is irregularity in the issuance of the writ
that makes it defective.
NOTE: A writ of execution issued before a judgment has
become final and executor is invalid. Hence, its execution can
be restrained.
When and where to file motion for execution
A motion for execution should be filed within 5 years
from the date of its entry with the LA, since it was he who
issued the decision sought to be executed.
XPN: On meritorious grounds, the SC allowed the execution
by mere motion even after the lapse of 5 years, when the delay
was caused or occasioned by actions of the judgment debtor
and/or incurred for his benefit or advantage. 62
Execution pending appeal
Execution shall issue only upon a judgment or order
that finally disposes of an action or proceeding, except in
specific instances where the law provides for execution
pending appeal.
NOTE: A Petition for Certiorari with the CA or the SC shall
not stay the execution of the assailed decision unless a TRO is
issued by the said courts.
Execution by independent action
After the lapse of the 5-year period within which to
file a motion for execution, the judgment shall become
dormant, and may only be enforced by an independent action
before the Regional Arbitration Branch of origin and within a
period of 10 years from the date of its finality. 63
Third party claim
It is the remedy of a person, not a party to the case,
against a wrongful execution by the Sheriff, for the purpose of
asserting his title to or right to the possession of the property
levied upon.
62
Philippine Rabbit Bus Line, Inc. vs. NLRC, G.R. No. 122078 (1999).
63
Sec. 2, Rule XII, 2011 Rules of Procedure of the NLRC.
 University of Santo Tomas
Faculty of Civil Law
It is filed with the Sheriff’s Office and copies served
upon the NLRC or LA who issued the writ and the prevailing
party.
Upon receipt of the third party claim, all proceedings
with respect to the execution of the property subject of the said
claim shall be automatically suspended. The NLRC or LA
who issued the writ conducts a hearing with due notice to all
parties concerned and resolves the validity of the claim with
10 working days from receipt thereof.
The decision on the third party claim is appealable to
the NLRC within 10 working days.
However, where the prevailing party puts up an
indemnity in a sum not less than the valued of the property
levied, execution proceeds. In case of disagreement as to the
value, the same is determined by the NLRC or LA who issued
the writ.
In the event the third party claim is declared to be
valid, the Sheriff will release the property to the third party
claimant or his duly authorized representative and the levy on
execution is immediately lifted or discharged.
If the third party claim is found to be without factual
or legal basis, the Sheriff proceeds with the execution of the
property levied upon as if no third party claim has been filed. 64
Execution against the company under rehabilitation
receivership
A stay of execution is warranted if the corporation is
placed under rehabilitation receivership.65 Once the
receivership proceedings had ceased and the receiver and
liquidator had been given the imprimatur to proceed with the
corporate liquidation, there is no more legal impediment for
the execution of the decision of the LA.66
Art. 231. Contempt powers of the Secretary of Labor. – In the
exercise of his powers under this Code, the Secretary of Labor
may hold any person in direct or indirect contempt and impose
the appropriate penalties therefor.
Direct Contempt
A person guilty of misbehavior in the presence of or
so near the Secretary of Labor and Employment as to obstruct
or interrupt the proceedings before him may be summarily
adjudged in direct contempt by said official and punished by a
fine or imprisonment not exceeding 5 days or both.67
64
Rule VI, NLRC Manual on Execution of Judgment.
65
Alermar’s Sibal and Sons, Inc. vs. NLRC, G.R. No. 114761 (2000).
66
Alermar’s Sibal and Sons, Inc. vs. Elbinias, G.R. No. 75414 (1999).
67
Sec. 1, Rule XXIII, Book V, Rules to Implement the Labor Code, as
amended by DO No. 40-03, S. of 2003.
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The judgment of the SOLE in appealed cases of
contempt is immediately executor and inappelable.68
Indirect Contempt
It is an act committed outside of the presence of
SOLE which tends to despise, degrade, obstruct, or embarrass
him in the administration of justice.
Indirect contempt shall be dealt with by the SOLE in
the manner prescribed under Rule 71 of the Rules of Court.
Quasi-judicial agencies that have the power to cite
persons for indirect contempt can only do so by initiating it in
the RTC.69
TITLE III
BUREAU OF LABOR RELATIONS
Art. 232. Bureau of Labor Relations. – The Bureau of Labor
Relations and the Labor Relations Divisions in the regional
offices of the Department of Labor, shall have original and
exclusive authority to act, at their own initiative or upon request
of either or both parties, on all inter-union and intra-union
conflicts, and all disputes, grievances or problems arising from or
affecting labor-management relations in all workplaces, whether
agricultural or non-agricultural, except those arising from the
implementation or interpretation of collective bargaining
agreements which shall be the subject of grievance procedure
and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act
on labor cases before it, subject to extension by agreement of the
parties.
Concurrent original and exclusive jurisdiction of the
Bureau of Labor Relations and Labor Relations Divisions
of the Regional Office
The BLR and the LRD in the Regional Offices of the
DOLE shall have concurrent and original exclusive authority
to act, at their own initiative or upon request of either or both
parties, on the following:
1. All inter-union conflicts;
2. All intra-union conflicts; and
3. All disputes or problems arising from or affecting
labor-management relations in all workplaces, except
those arising from the implementation or
interpretation of CBAs which shall be the subject of
grievance procedure and/or voluntary arbitration.
68
Ibid.
69
LBP vs. Listana, G.R. No. 152611 (2003).
 University of Santo Tomas
Faculty of Civil Law
Concurrent administrative functions of the BLR and the
LRD
The BLR and the LRD shall have concurrent Scope and coverage of inter-union and intra-union
administrative authority on the following matters: disputes
1. Registration of labor unions; 1.
2. Keeping of registry of labor unions;
3. Keeping a file of all CBAs.
2.
Decisions appealable to the BLR
1. Decisions of the LRD denying the registration of 3.
labor unions are appealable to by the applicant union
to the BLR within 10 days from receipt of notice 4.
thereof; 5.
2. Decisions of Med-Arbiters in intra-union disputes
6.
NOTE: Decisions of Med-Arbiters in inter-union
disputes are appealable to the SOLE. 7.
Inter-union or Intra-union Disputes
8.
Inter-union Dispute/Representation Dispute 9.
- Refers to a case involving a petition for certification 10.
election filed by a duly registered labor organization
which is seeking to be recognized as the sole and
exclusive bargaining agent of the rank-and-file 11.
employees or supervisory employees in the
appropriate bargaining unit of a company, firm or 12.
establishment.
13.
- It also refers to any conflict between and among
legitimate labor unions involving representation 14.
questions for purposes of collective bargaining or to
any other conflict or dispute between legitimate labor
unions.
Intra-union Dispute/Internal Union Dispute/Organizational
Dispute
- Refers to any conflict between and among union Venue of complaints involving independent unions, local
members, including grievances arising from any chapters or workers’ associations
violation of the rights and conditions of membership,
violation of or disagreement over any provision of 1.
the union’s constitution and by-laws or disputes
arising from chartering or affiliation of a union.
- It also refers to a case involving the control,
supervision, and management of the internal affairs 2.
of a duly registered labor union, i.e. relating to
specific violations of the union’s constitution and by-
laws.
NOTE: A complaint for any violation of the
constitution and by-laws and the rights and
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conditions of union membership may be filed in the
Regional Office where the union is domiciled.
Cancellation of registration of a labor organization
filed by its members or by another labor
organization;
Conduct of election of union and worker’s
association officers or nullification of election of
union and worker’s association officers;
Audit/accounts examination of union or worker’s
association funds;
Deregistration of CBAs;
Validity/invalidity of union affiliation or
disaffiliation;
Validity/invalidity of acceptance/non-acceptance for
union membership;
Validity/invalidity of impeachment/expulsion of
officers or members of the union or worker’s
association;
Validity/invalidity of voluntary recognition;
Opposition to application for union and CBA
registration
Violations of or disagreements over any provision in
the constitution and by-laws of a union or worker’s
association
Disagreements over chartering or registration of labor
organizations and CBAs;
Violations of the rights and conditions of
membership in a union or worker’s association;
Violations of the rights of legitimate labor
organizations, except interpretation of the CBA;
Such other disputes or conflicts involving the rights
to self-organization, union membership and
collective bargaining –
a. Between and among legitimate labor
organizations;
b. Between and among members of a union or
worker’s association.
Regional Office that issued their certificates of
registration or certificates of creation of local
chapter – complaints or petitions involving labor
unions with independent registrations, local chapters,
workers’ associations, or their officers or members
DOLE RD (may appoint a Hearing Officer form the
LRD) –
a. petitions for cancellation of registration of labor
unions with independent registration of local
chapters; and
b. workers’ associations and petitions for
deregistration of CBAs
 University of Santo Tomas
Faculty of Civil Law
3. Med-Arbiter in the RO of DOLE – other inter-union
or intra-union disputes
Venue of complaints involving federations, national unions
or industry unions
They shall be filed either with the:
1. Regional Office
2. BLR
But the complaint or petition shall be heard and
resolve by the BLR.
Effects of filing or pendency of inter-union or intra-union
and other related labor relations disputes
1. The rights, relationships and obligations of the
parties-litigants against each other and other parties-
in-interest prior to the institution of the petition shall
continue to remain during the pendency of the
petition and until the date of finality of the decision
rendered therein
2. The filing or pendency of any inter-union or intra-
union dispute and other related labor relations dispute
is not a prejudicial question to any petition for
certification election and shall not be a ground for
dismissal of a petition for certification election or
suspension of the proceedings therein.
NOTE: The requirement of 30% union support need not be
strictly observed in a complaint affecting the entire
membership for the acquisition of jurisdiction by the BLR. 70
Labor Relations Division
It consists of:
1. Labor organization and CBA Registration Unit – in
charge of processing the applications for registration
of independent unions, chartered locals, workers
associations and CBAs; maintaining said records and
all othe reports and incidents pertaining to labor
organizations and workers associations; and
2. Med-Arbitration Unit – conducts hearings and
decides certification election or representation cases,
inter/intra-union and other labor related relations
disputes.
Jurisdiction of the BLR
1. Authority to order certification election even if
subscription requirement was not strictly complied
with (also within the domain of RO)
70
Art. 250.
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2. Representation issues (i.e. expansion of the
bargaining unit and the authority to represent it for
purposes of collective bargaining
NOTE: BLR has no authority to order referendum to
decide suspension or expulsion of union officers.
3. Intra-union conflicts including removal of erring
union officers
NOTE: If the legality of expulsion is interwoven
with illegal dismissal and violation of the CBA, it is
within the jurisdiction of the NLRC.
4. Labor-management relations including determination
of employer-employee relationship
NOTE: The Med-Arbiter, who is an officer of the
BLR, has authority to determine the employer-
employee relationship indispensable in the exercise
of his jurisdiction. His findings may only be reviewed
and reversed by the SOLE under its appellate
jurisdiction.
5. Appellate jurisdiction over all cases originating from
the RO involving complaints for examination of
union books of accounts.
NOTE: Exhaustion of remedies under the constitution and by-
laws must be observed.
NOTE: Position papers are not required in BLR proceedings.
DECISION, APPEALS AND EXECUTION
I. Decision of the BLR
The BLR and the Med-Arbiter or RO shall have 20
days from the date of the last hearing within which to decide
the complaint or petition. The decision shall be released to the
parties personally on a date and time agreed upon during the
last hearing.
II. Appeal to the BLR
The decision of the Med-Arbiter and RD may be
appealed to the BLR within 10 days from receipt thereof, copy
furnished the opposing party.
The decision of the Bureau Director in the exercise of
his original jurisdiction may be appealed to the Office of the
DOLE Secretary within the same period.
III. Where to file appeal
The memorandum of appeal shall be filed in the RO
or BLR where the complaint or petition originated.
 University of Santo Tomas
Faculty of Civil Law
Within 24 hours from the receipt of the memorandum
of appeal, the BLR or RD shall cause the transmittal thereof
together with the entire records of the case to the Office of the
DOLE Secretary or the BLR.
IV. Finality of decision
Where no appeal is filed within the 10-day period,
the BLR and RD or Med-Arbiter shall enter the finality of the
decision in the records of the case and cause the immediate
implementation thereof.
V. Period to reply
A reply to appeal may be filed by any party to the
complaint or petition within 10 days from receipt of the
memorandum of appeal. The reply shall be filed directly with
BLR or the Office of the DOLE Secretary.
VI. Decision of the BLR or Office of the DOLE
Secretary
The Bureau Director or SOLE shall have 20 days
from receipt of the entire records within which to decide the
appeal.
The BLR or Office of the DOLE Secretary may call
the parties to a clarificatory hearing in aid of its appellate
jurisdiction.
VII. Finality of the decision of the BLR or Office
of the DOLE Secretary
The decision of the BLR or the Office of the DOLE
Secretary shall become final and executory after 10 days from
receipt thereof by the parties, unless a motion for
reconsideration is filed within the same period.
Only 1 motion for reconsideration shall be allowed.
VIII. Execution of decision
The decision of the Med-Arbiter and RD shall
automatically be stayed pending appeal with the BLR.
The decision of the BLR in the exercise of its
appellate jurisdiction shall be immediately executory upon
issuance of an entry of final judgment.
The decision of the BLR in the exercise of its
original jurisdiction shall automatically be stayed pending
appeal with the Office of the DOLE Secretary.
The decision of the Office of the DOLE Secretary
rendered therein shall be immediately executory upon issuance
of entry of final judgment.
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IX. Transmittal of records to the RO or BLR
Within 48 hours from notice of receipt of the decision
by the parties and finality of the decision, the entire records of
the case shall be remanded to the BLR or RO of origin for
implementation. The implementation of the decision shall not
be stayed unless restrained by the appropriate court.
NATIONAL CONCILIATION MEDIATION BOARD
(NCMB)
The NCMB refers to the agency attached to the
DOLE principally in-charge of the settlement of labor disputes
through conciliation, mediation and of the promotion of
voluntary approaches to labor dispute prevention and
settlement.
Conciliator-Mediator
It refers to an officer of the NCMB whose principal
function is to assist in the settlement and disposition of labor-
management disputes through conciliation and preventive
mediation, including the promotion and encouragement of
voluntary approaches to labor disputes prevention and
settlement.
Conciliation or mediation
It is the process whereby a third person call the
Conciliator or Mediator, intervenes in a dispute involving 2 or
more conflicting parties for the purpose of reconciling their
differences or persuading them into adjusting or settling their
dispute.
Composition of the NCMB
1. Administrator
2. 2 Deputy Administrators – appointed by the President
upon recommendation of the SOLE
3. Executive Conciliators-Mediator – heads each branch
of the NCMB
4. Conciliators-Mediators – as many as the needs of the
public service may require, who shall have:
a. At least 3 years of experience in handling labor
relations; and
b. Appointed by the SOLE.
Functions of the NCMB
1. Formulate policies, programs, standards, procedures,
manuals of operations and guidelines pertaining to
effective mediation and conciliation of all labor
dispute;
2. Perform preventive mediation and conciliation
functions;
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Faculty of Civil Law
3. Coordinate and maintain linkages with other sectors
of institutions, and other government authorities
concerned with matters relative to the prevention and
settlement of labor disputes;
4. Formulates policies, plans, programs, standards,
procedures, manuals of operations and guidelines
pertaining to the promotion of cooperative and non-
adversarial schemes, grievance handling, voluntary
arbitration and other voluntary modes of dispute
settlement;
5. Administer the voluntary arbitration program,
maintain/update a list of voluntary arbitrators,
compile arbitration awards and decisions;
6. Provide counseling and preventive mediation
assistance particularly in the administration of
collective agreements;
7. Monitor and exercise technical supervision over the
Board's programs being implemented in the regional
offices; and
8. Perform such other functions as may be provided by
law or assigned by the Secretary.
Duties of the NCMB in case of negotiation deadlock
Once there is deadlock, the law directs the NCMB to
intervene either:
1. Motu proprio;
2. Upon request of management;
3. Upon request of the union; or
4. Upon the joint request of management and the union.
The NCMB shall immediately call the parties to
conciliation meetings.
Jurisdiction of NCMB
Cases arising from the implementation or
interpretation of CBAs that are the subject of grievance
procedure and/or voluntary arbitration are cognizable by the
NCMB.
Issuance of compulsory process (subpoena)
For purposes of conducting meetings, the NCMB is
empowered to issue subpoenas ad testificandum or duce tecum
– requiring the presentation of documents and attendance of
the parties to such meetings.
Art. 233. Compromise agreements. – Any compromise
settlement, including those involving labor standard laws,
voluntarily agreed upon by the parties with the assistance of the
Bureau or the regional office of the Department of Labor, shall
be final and binding upon the parties. The National Labor
Relations Commission or any court, shall not assume jurisdiction
over issues involved therein except in case of non-compliance
thereof or if there is prima facie evidence that the settlement was
obtained through fraud, misrepresentation, or coercion.
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Compromise Agreement
Any compromise settlement agreed upon by the
parties with the assistance of the BLR or the RO shall be final
and binding upon the parties. If the terms of the settlement are
violated, execution is the proper remedy.
A quitclaim partakes the nature of a compromise.
Such settlement is required to be approved by the LA before
whom the case is pending.71
NOTE: Quitclaims are frowned upon as they are
usually in the form of contracts of adhesion.
Effect of offer of compromise
An offer of compromise is not an admission of any
liability, and not admissible in evidence against the offeror. 72
Right to appeal waived in judicial compromise
The decision rendered in conformity with a
compromise agreement constitutes an implicit waiver of the
right to appeal against the decision.
The order approving the compromise agreement
becomes a final act and it forms part of the judgment that can
be enforced by a writ of execution unless enjoined by a
restraining order.
When compromise agreement is allowed
1. When the case is about to be filed;
2. When the case is pending in courts/tribunals;
3. Even after the judgment has become final and
executory;
4. Even prior to the execution of a final judgment.
Judgment rendered pursuant to the compromise
agreement immediately executory
A judgment rendered in accordance with a
compromise agreement is not appealable and is immediately
executory unless a motion is filed to set aside the agreement
on the ground of fraud, mistake, or duress in which case an
appeal may be taken against the order denying the motion.
The NLRC or any court has no jurisdiction over issues
involved in a compromise; Exceptions
GR: The NLRC or any court shall not assume jurisdiction
over issues involved in a compromise.
71
St. Gothard Disco Pub & Restaurant vs. NLRC, 218 SCRA 327.
72
Rule 130 of the Rules of Court.
 University of Santo Tomas
Faculty of Civil Law
XPN:
1. In case of non-compliance of the compromise
agreement; or
2. If there is prima facie evidence that the settlement
was obtained through fraud, misrepresentation or
coercion.
Examples of matters of compromise agreements
1. Compromise involving labor standards –
a. Must be reduced in writing;
b. Must be signed in the presence of the RD or
his duly authorized representative; and
c. Must be approved by the complainant’s
individually.
2. Compromise by union officers – it must be
authorized by union members.
3. Compromise by a lawyer – can be effected only upon
presentation of SPA that he can bind his clients;
otherwise, the judgment rendered therein shall be
void.
- Presence of the counsel is not required in
compromise agreement.
4. Backpay as a compromise in lieu of reinstatement
5. Compromise of an unfair labor practice (ULP) – must
be done in good faith.
Requisites of a valid compromise agreement
1. Reality of the claim; and
2. Bona fide of the compromise
Requisites of a valid and binding quitclaim and waiver
1. It must be shown that the person making the waiver
did so voluntarily;
2. He has full understanding of what he was doing;
3. The consideration for the quitclaim is credible and
reasonable;
4. There is no fraud or deceit on the part of any of the
parties; and
5. The contract is not contrary to law, public policy,
morals or good customs.
NOTE: A quitclaim or waiver cannot bar an employee from
demanding the full benefits to which he is legally entitled.
NOTE: Dire necessity or economic difficulties are not
acceptable grounds to annul compromise agreement.
Art. 234. Mandatory Conciliation and Endorsement of Cases. –
(a) Except as provided by Title VII-A, Book V of this Code, as
amended, or as may be excepted by the Secretary of Labor and
Employment, all issues arising from labor and employment shall
be subject to mandatory conciliation-mediation. The labor
arbiter or the appropriate DOLE agency or office that has
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jurisdiction over the dispute shall entertain only endorsed or
referred cases by the duly authorized officer.
(b) Any or both parties involved in the dispute may pre-
terminate the conciliation-mediation proceedings and request
referral or endorsement to the appropriate DOLE agency or
office which has jurisdiction over the dispute, or if both parties so
agree, refer the unresolved issues to voluntary arbitration.
Art. 235. Issuance of subpoenas. – The Bureau shall have the
power to require the appearance of any person or the production
of any paper, document or matter relevant to a labor dispute
under its jurisdiction, either at the request of any interested
party or at its own initiative.
Art. 236. Appointment of bureau personnel. – The Secretary of
Labor and Employment may appoint, in addition to the present
personnel of the Bureau and the Industrial Relations Divisions,
such number of examiners and other assistants as may be
necessary to carry out the purpose of the Code.
Art. 237. Registry of unions and file of collective bargaining
agreements. – The Bureau shall keep a registry of legitimate
labor organizations.
The Bureau shall also maintain a file of all collective
bargaining agreements and other related agreements and records
of settlement of labor disputes and copies of orders and decisions
of voluntary arbitrators or panel of voluntary arbitrators. The
file shall be open and accessible to interested parties under
conditions prescribed by the Secretary of Labor and
Employment, provided that no specific information submitted in
confidence shall be disclosed unless authorized by the Secretary,
or when it is at issue in any judicial litigation, or when public
interest or national security so requires.
Within thirty (30) days from the execution of a
Collective Bargaining Agreement, the parties shall submit copies
of the same directly to the Bureau or the Regional Offices of the
Department of Labor and Employment for registration,
accompanied with verified proofs of its posting in two
conspicuous places in the place of work and ratification by the
majority of all the workers in the bargaining unit. The Bureau or
Regional Offices shall act upon the application for registration of
such Collective Bargaining Agreement within five (5) calendar
days from receipt thereof. The Regional Offices shall furnish the
Bureau with a copy of the Collective Bargaining Agreement
within five (5) days from its submission.
The Bureau or Regional Office shall assess the employer
for every Collective Bargaining Agreement a registration fee of
not less than one thousand pesos (P1,000.00) or in any other
amount as may be deemed appropriate and necessary by the
Secretary of Labor and Employment for the effective and
efficient administration of the Voluntary Arbitration Program.
Any amount collected under this provision shall accrue to the
Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall
undertake or assist in the publication of all final decisions, orders
and awards of the Secretary of Labor and Employment, Regional
Directors and the Commission.
 University of Santo Tomas
Faculty of Civil Law
Registry of unions
The BLR shall keep a registry of legitimate labor
organizations, i.e. those registered with the DOLE which
include any branch or local thereof.
Registration of CBA
The procedures for registration are the following:
1. Within 30 days from the execution of a CBA, the
parties shall submit 2 duly signed copies of the same
directly to the BLR or the ROs of the DOLE for
registration of said CBA accompanied by the
following:
a. Verified proof of its posting in 2
conspicuous places in the place of work; and
b. Verified proof of its ratification by the
majority of all the workers in the bargaining
unit.
2. The BLR or the RO shall act upon the application for
registration within 5 calendar days from receipt
thereof.
3. The RO shall furnish the BLR with a copy of the
CBA within 5 days from its submission.
4. The BLR or RO shall assess the employer for every
CBA, the prescribed registration fee or any amount
deemed appropriate by the SOLE. The amount
collected accrues to the Special Voluntary Arbitration
Fund.
5. Issuance of certificate of registration.
NOTE: CBA is valid even without certification by the BLR,
as long as it is duly entered into and signed by the parties.
NOTE: The substantial validity of the CBA is not affected by
non-registration, since it is more than a contract, it being
highly impressed with public interest. Thus, it may not be set
aside on technical grounds, consistent with the public good.
Effect of an unregistered CBA
1. It does not bar certification election (inter-union
affair).
2. It does not bar referendum (intra-union affair).
Art. 238. Prohibition on certification election. – The Bureau shall
not entertain any petition for certification election or any other
action which may disturb the administration of duly registered
existing collective bargaining agreements affecting the parties
except under Articles 253, 253-A and 256 of this Code.
Contract-bar rule
The existence of a duly registered CBA bars the
holding of a certification election or any action that may
disturb said CBA. This is to promote stability and fairness in
CBAs.
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Requisite for contract-bar rule
1. The CBA has been duly executed in conformity with
law and duly registered;
2. It was ratified by the majority of all the workers in
the bargaining unit;
3. It is adequate or complete for the terms and
conditions of employment are not substandard;
4. It embraces the employees in the appropriate
bargaining unit;
5. It was not hastily entered into or prematurely
extended;
6. It is for a definite period
a. Representation – 5 years
b. Renegotiation – 3 years
7. Neither there was schism nor mass disaffiliation that
affects the bargaining agent during the lifetime of the
CBA;
8. The contracting union is the certified bargaining unit
in the company premises;
9. The bargaining agent is not a captive union; and
10. The CBA can be terminated/modified only during the
60-day freedom period.
Exceptions to the contract-bar rule
1. The CBA is unregistered
NOTE: A CBA which is an arbitral award need not be
certified by the BLR to constitute as a bar to certification
election.
2. The CBA is inadequate or incomplete (sweetheart
contract)
3. The CBA was hastily entered into (i.e. doctrine of
premature extension)
4. Withdrawal of affiliation form the contracting union
brought about by schism or split, or mass
disaffiliation which can no longer foster industrial
peace or stability
5. The automatic renewal clause in the CBA will not
apply where the petitioning union makes known to
the employer its claim to represent the employees or
seasonably files a petition for certification election or
has given a timely notice prior to the operative date
of the automatic renewal clause.
6. Contract where the identity of the representative is in
doubt
7. A CBA entered into between the employer and the
union during the pendency of a petition for
certification election
8. A CBA concluded between the employer and the
union (incumbent bargaining agent) is not a bar to
certification election filed by another union and said
CBA can be renegotiated at the option of the new
bargaining agent
 University of Santo Tomas
Faculty of Civil Law
9. A CBA is registered with falsified supporting
documents
10. A CBA entered into with a labor union that is not the
exclusive bargaining agent in the company premises
11. The petition for certification election is filed within
the 60-day freedom period before the expiration of
the CBA
Art. 239. Privileged communication. – Information and
statements made at conciliation proceedings shall be treated as
privileged communication and shall not be used as evidence in
the Commission. Conciliators and similar officials shall not
testify in any court or body regarding any matters taken up at
conciliation proceedings conducted by them.
TITLE IV
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND CANCELLATION
Art. 240. Requirements of registration. – Any applicant labor
organization, association or group of unions or workers shall
acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following
requirements.
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal
address of the labor organization, the minutes of the
organizational meetings and the list of the workers who
participated in such meetings;
(c) The names of all its members comprising at least twenty
percent (20%) of all the employees in the bargaining
unit where it seeks to operate;
(d) If the applicant union has been in existence for one or
more years, copies of its annual financial reports; and
(e) Four (4) copies of the constitution and by-laws of the
applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it.
Registration requirement with the BLR
It is a valid exercise of police power because the
activities in which labor organizations, associations, and
unions of workers are engaged affect public interest, which
should be protected.
It is merely a condition sine qua non for the:
1. Acquisition of legal personality by labor
organizations, associations or unions.
NOTE: Such legal personality cannot be
subject to collateral attack in a petition for
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certification election but may be questioned
only in an independent petition for cancellation.
2. Possession of the rights and privileges granted
by law to legitimate labor organizations.
Effects of registration (rights of a labor union)
1. Right of representation
This refers to the right of the labor union to act as
representative of its individual members for the purpose of
collective bargaining, which includes the authority to
represent them for purposes of enforcing the provisions of the
CBA, and to file an action for their benefit and behalf without
joining them as separate parties.
2. Right to be certified as the exclusive bargaining
agency within the premises (Doctrine of Union
Monopoly or Exclusive Right Rule)
It refers to the right to represent the entire employees
in the bargaining unit. It gives the union the right to
collectively bargain with the management to the exclusion of
other minority or competing unions.
3. Right to acquire and dispose of property, real or
personal, pursuant to the purpose embodied in its
constitution
GR: The authority belongs to the President with the approval
of the Board of Directors (BOD).
XPN:
a. If the constitution and by-laws are silent, the approval
of the majority of the members in a general
membership meeting is necessary for the acquisition
or disposition of property.
b. If the constitution and by-laws authorized the BOD to
appoint a person to exercise the right, then a mere
Board resolution will suffice.
4. Right to sue and be sued in its own registered name
5. Right to engage in activities which would redound to
the welfare and benefit of the members of the union
The labor union may engage in activities such as
cooperativism, housing projects, business and others provided
they are not contrary to law. This is strengthen the union in the
bargaining table.
6. Right to be exempted from taxes
The labor union’s incomes and property shall be
exempted to taxes, duties and other assessments, including
 University of Santo Tomas
Faculty of Civil Law
gifts or donations they receive, except earnings or benefits
derived for purely business activities.
7. Right to be furnished a copy of employer’s audited
financial statements
Upon written request, the union has the right to be
furnished by the employer of annual audited financial
statements, on the basis of the workers’ constitutional right to
have a just share in the fruits of production.
NOTE: Refusal to furnish requested information is in itself
an unfair labor practice and may lend support to the inference
of surface bargaining.
Labor organizations that are required to register
1. Federation
2. National union
3. Industry union
These three refer to a group of legitimate labor
organizations in private establishments organized for
collective bargaining purposes or for dealing with employers
concerning the terms and conditions of employment of its
member-unions or for practicing in the formulation of social
and employment policies, standards, and programs.
4. Trade union center
It is any group of registered national unions or
federations organized for the mutual aid and protection of its
members, for assisting such members in collective bargaining.
5. Independent union
It refers to a labor organization operating at the
enterprise level which acquired legal personality though
independent registration.
NOTE: The 20% membership requirement for application for
registration applies only to an independent union.
Types of an affiliate of a labor federation
1. Chartered local/local chapter/local union – does not
undergo the rudiments of registration; not registered
by force of law, but it becomes a legitimate labor
organization.
2. Independently registered union – has to undergo the
requirements of registration.
– it shall be considered an affiliate union
after submission to the BLR of the contract of
affiliation within 30 days after its execution.
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Acquisition of legal personality
The issuance of certificate of registration will vest in
the labor organizations legal personality.
However, a local chapter directly created by a
federation or national union acquires legal personality under
the following instances:
1. An unregistered local chapter acquires an incomplete
legal personality upon the issuance to it of a charter
certification by the federation or national union
which is only designed for on purpose, that is, to file
a petition for certification election.
2. A local chapter acquires complete or full legal
personality only upon submission of its charter
certificate and the documents required to the DOLE.
NOTE: The fact of submission, not registration to
the DOLE, signals the start of its complete status as a
legitimate labor organization.
Where to file applications for registration
1. Applications for registration of independent labor
unions, local chapters or workers’ associations shall
be filed with the RO where the applicant principally
operates, and processed by the LRD.
2. Applications for registration of federations, national
unions or workers’ associations operating in more
than one region shall be filed with the BLR or RO,
but shall be processed by the BLR.
Requirements for registration of federations
1. A statement indicating the name of the applicant
labor union, its principal address, the name of its
officers and their respective addresses;
2. The minutes of the organizational meeting and the
list of employees who participated in the said
meeting;
3. The annual financial reports if the applicant has been
in existence for 1 or more years, unless it has not
collected any amount from the members, in which
case a statement to this effect shall be included in the
application;
4. The applicant’s constitution and by-laws, minutes of
its adoption or ratification, and the list of the
members who participated in it. The list of ratifying
members shall be dispensed with where the
constitution and by-laws were ratified or adopted
during the organizational meeting. In such case, the
factual circumstances of the ratification shall be
recorded in the minutes;
5. The resolution of affiliation of at least 10 legitimate
labor organizations, whether independent unions or
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Faculty of Civil Law
chartered locals, each of which must be a duly
certified or recognized bargaining agent in the
establishment where it seeks to operate;
6. The names and addresses of the companies where the
affiliates operate and the list of the members in each
company involved.
Requirements for registration of independent labor unions
1. The name of the applicant labor union, its principal
address, the name of its officers and their respective
addresses, approximate number of employees in the
bargaining unit where it seeks to operate, with a
statement that it is not reported as a chartered local of
any federation or national union;
2. The minutes of the organizational meeting and the
list of employees who participated in the said
meeting;
3. The name of all its members comprising at least 20%
of the employees in the bargaining unit;
4. The annual financial reports if the applicant has been
in existence for 1 or more years, unless it has not
collected any amount from the members, in which
case a statement to this effect shall be included in the
application;
5. The applicant’s constitution and by-laws, minutes of
its adoption or ratification, and the list of the
members who participated in it. The list of ratifying
members shall be dispensed with where the
constitution and by-laws were ratified or adopted
during the organizational meeting. In such case, the
factual circumstances of the ratification shall be
recorded in the minutes.
Requirements for registration of workers’ associations
1. The name of the applicant association, its principal
address, the name of its officers and their respective
addresses;
2. The minutes of the organizational meeting and the
list of members who participated therein;
3. The financial reports of the applicant association if it
has been in existence for 1 or more years, unless it
has not collected any amount from the members, in
which case a statement to this effect shall be included
in the application;
4. The applicant’s constitution and by-laws to which
must be attached the names of ratifying members, the
minutes of adoption or ratification of the constitution
and by-laws, and the date when ratification was
made, unless ratification was done in the
organizational meeting in which case such fact shall
be reflected in the minutes of organizational meeting;
5. Application for registration of a workers’ association
operating in more than 1 region shall be accompanied
by a resolution of membership of each member
association, duly approved by its BOD;
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6. The report of creation of a chartered local shall be
accompanied by a charter certificate issued by the
federation or national union indicating the creation or
establishment of the chartered local.
Requirements for notice of change of name of a labor
organization
The notice shall be filed with the BLR or RO where
the concerned labor organizations’ certificate of registration or
certificate of creation of a chartered local was issued.
The notice shall be supported by the following
documents:
1. Proof of approval or ratification of change of name;
and
2. The amended constitution and by-laws.
Requirements of affiliation of independently registered
labor organizations
1. Resolution of the labor union’s BOD approving the
affiliation;
2. Minutes of the general membership meeting
approving the same;
3. The total number of members comprising the labor
union and the names of members who approved the
affiliation;
4. The certificate of affiliation issued by the federation
in favor of the independently registered labor union;
and
5. Written notice to the employer concerned if the
affiliating union is the incumbent bargaining agent.
Requirements of merger or consolidation of labor
organizations
The merger or consolidation of independent labor
unions, chartered locals and workers’ associations shall be
filed and recorded by the RO that issued the certificate of
registration/of creation of chartered local of either the merging
or consolidating labor organization.
Notice of merger or consolidation of federations or
national unions shall be filed with and recorded by the BLR.
The merger or consolidation shall be supported by
the following documents:
1. The minutes of merger or consolidation convention
or general membership meeting of all the merging or
consolidating labor organizations, with the list of
their respective members who approved the same;
and
2. The amended constitution and by-laws and minutes
of its ratification, unless ratification transpired in the
 University of Santo Tomas
Faculty of Civil Law
merger or consolidation convention, which fat shall
be indicated accordingly.
Registration of government employees’ organization
1. Government employees’ organization shall register
with the CSC and the DOLE.
2. The application shall be filed with the
a. BLR of DOLE which shall process the same
under the Labor Code; or
b. RO of the DOLE which shall immediately
transmit the said applications to the BLR
within 3 days from receipt thereof.
Requirements for registration of government employees’
organization
1. The payment of registration fee;
2. The names and addresses of the officers, the principal
address of the organization, the minutes of the
organizational meeting and the list of employees who
participated in the such meeting;
3. The names of all its employees comprising at least
20% of all the employees in the appropriate
organizational unit where it seeks to operate;
4. If the applicant has been in existence for 1 or more
years, copies of its financial reports shall be
submitted;
5. 4 copies of the constitution and by-laws, minutes of
its adoption and the list of employees who
participated therein;
6. The application shall be signed by at least 20% of the
employees in the appropriate bargaining unit.
Art. 241. Chartering and Creation of a Local Chapter. – A duly
registered federation or national union may directly create a
local chapter by issuing a charter certificate indicating the
establishment of the local chapter. The chapter shall acquire legal
personality only for purposes of filing a petition for certification
election from the date it was issued a charter certificate.
The chapter shall be entitled to all other rights and
privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter
certificate:
(a) The names of the chapter’s officers, their addresses, and
the principal office of the chapter; and
(b) The chapter’s constitution and by-laws: Provided, That
where the chapter’s constitution and by-laws are the
same as that of the federation or the national union, this
fact shall be indicated accordingly.
The additional supporting requirements shall be certified
under oath by the secretary or treasurer of the chapter and
attested by its president.
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Local chapter directly created by the federation or
national union
The local chapter acquires legal personality upon
issuance of the federation or national union of a certificate
indicating its establishment and only for the purposes of filing
a petition for certification election from the date it was issued
a charter certificate.
NOTE: The 20% membership requirement does not apply to
chartering of a local chapter, as it is not subject to the stringent
rules for creation and registration.
NOTE: The copy of the charter certificate shall be submitted
to the BLR within 30 days from the issuance thereof.
Issuance of a charter certificate
It does not clothe the local chapter with complete and
full legal personality but only for the purpose of filing a
petition for certification election from the date it was issued a
charter certificate. (See discussion on acquisition of legal
personality)
Principle of agency applies to a local chapter
1. Federation/national union – status of an agent; it acts
in representation of the local chapter.
2. Local union/local chapter – the basic unit of the
association free to serve the common interest of all its
members subject to restraints provided under the
constitution and by-laws.
- It is a separate and distinct voluntary
association owing its creation to the will of the
members (not to the federation).
NOTE: It has the right to disaffiliate from the
federation. Once it disaffiliates, it ceases to be
entitled to the rights and privileges granted to a
legitimate labor organization, including the right to
check-off federation dues.
NOTE: Employees voting for disaffiliation of the
local union from the federation shall not be
considered violative of the union security clause in
the CBA.
Art. 242. Action on application. – The Bureau shall act on all
applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified
under oath by the secretary or the treasurer of the organization,
as the case may be, and attested to by its president.
The proper remedy against the refusal to register a
labor organization which complies with all the requirements is
mandamus.
 University of Santo Tomas Labor Law Review
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Art. 243. Denial of registration; appeal. – The decision of the Structural types of labor union
Labor Relations Division in the regional office denying
registration may be appealed by the applicant union to the 1. Craft union – an organization of employees engaged
Bureau within ten (10) days from receipt of notice thereof.
in a single occupation or in a group of closely related
Denial of application for registration occupations based upon skill or specialty in
performance of one task or of a number of closely
When the documents supporting the application for related crafts.
registration/notice of change of name, affiliation, merger or 2. Labor union – a conglomerate of different groups
consolidation are incomplete or do not contain the required having in mind the solidarity of all the working class.
certification and attestation, the RO or BLR shall, within 5 3. Industrial union – organized on the basis of skills or
days from receipt of the application/notice, notify the specialties in a given industry and without regard to
applicant/labor organization concerned in writing of the craft or occupation.
necessary requirements and complete the same within 30 days
from the receipt notice. For failure to complete the Functional forms of labor union
requirements within the said period, the application shall be
denied or the notice shall be returned. 1. Conservative unionism – a business-like
unionism which accepts the economic order of
Appeal from the denial of application of registration capitalism.
– It is more on terms and conditions of
The denial may be appealed to the: work.
1. BLR – if denial is made by the RO; or – It is craft-conscious.
2. SOLE – if denial is made by the BLR
2. Welfare unionism – a form of conservative but
The appeal may be filed on the ground of grave abuse idealist unionism.
of discretion or violate of the Rules. – Its object is to promote the welfare of the
workers.
Art. 244. Additional requirements for federations or national
unions. – Subject to Article 23873, if the applicant for registration 3. Revolutionary unionism – it is the radical type.
is a federation or a national union, it shall, in addition to the – It seeks to overthrow the existing
requirements of the preceding Articles, submit the following: economic order of capitalism.

Proof of the affiliation of at least ten (10) locals or a. Socialistic – seeks to attain its goal thru
chapters, each of which must be a duly recognized collective peaceful methods such as education of
bargaining agent in the establishment or industry in which it
workers.
operates, supporting the registration of such applicant federation
or national union; and b. Quasi-anarchist or anarcho-syndicalistic –
aims to replace capitalism with a system of
The names and addresses of the companies where the self-governing, worker-owned and operated
locals or chapters operate and the list of all the members in each industries.
company involved. c. Communistic – seeks to establish a system
under “dictatorship of the proletariat.”
Right to self-organization; Reasons for unionism 4. Predatory unionism – a notorious tyoe of union
which preys upon employers and consumers
1. Equality of bargaining power through methods such as dynamiting, graft,
2. Satisfactory terms and conditions of employment extortion, etc.
3. Security of tenure
4. Participation in policy and decision-making processes Art. 245. Cancellation of registration. – The certificate of
5. Pressure group registration of any legitimate labor organization, whether
national or local, may be cancelled by the Bureau, after due
Negative freedom of association – it is the right not to join a hearing, only on the grounds specified in Article 239 hereof. 74
labor union.
Venue of action for cancellation of registration

73
The opening phrase “Subject to Article 238” has been rendered inoperative 1. RO having jurisdiction over the place where the
by virtue of Sec. 5, EO No. 111 (1986) which repealed the then Article 238 respondent principally operates – if the respondent to
(Conditions for Registration of Federation or National Unions) and second
paragraphs of Articles 239 and 241 relating to the restructuring of the labor
movement along one-union-
74
one industry policy. As amended by Sec. 3, RA No. 9481 (2007).
 University of Santo Tomas
Faculty of Civil Law
the petition is a local chapter, affiliate or a workers’
association with operations limited to one region.
2. BLR – petitions filed against federations, national or
industry unions, trade union centers, or workers’
associations operating in more than 1 regional
jurisdiction.
Who may file
GR: A party-in-interest
XPN: In actions involving violations of Art. 247, it can be
commenced only by the members of the respondent labor
organization or workers’ association.
Appeal
The decision of the RD or Bureau Director may be
appealed to the BLR or SOLE within 10 days from receipt
thereof by the aggrieved party on the ground of grave abuse of
discretion or any violation of the Rules.
Finality of the decision of the BLR or Office of SOLE
It shall become final and executory after 10 days
from receipt thereof by the parties, unless a motion for
reconsideration is filed.
Execution
1. Decision of the BLR in the exercise of its appellate
jurisdiction – immediately executory upon issuance
of an entry of final judgment.
2. Decision of BLR in the exercise of its original
jurisdiction – automatically stayed pending appeal
with Office of the SOLE.
3. Decision of the SOLE – immediately executory upon
issuance of an entry of final judgment.
Appellate jurisdiction of the BLR and SOLE
The appellate jurisdiction of the SOLE is confined
only to review of cancellation proceedings decided by the
BLR in the exercise of its exclusive original jurisdiction.
1. If the petition for cancellation of union registration is
filed directly with the RO – its decision cancelling a
union’s certificate of registration may be appealed to
the BLR whose decision is final and inappealable.
2. If the petition for cancellation of union registration is
filed directly with the BLR – its decision cancelling a
union’s certificate of registration may be appealed to
the SOLE whose decision is final and inappealable.
REMEDY in BLR and SOLE’s appealed cases:
Certiorari under Rule 65.
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Effect of cancellation of registration of federation on its
locals/chapters
The cancellation of registration of federation or
national union shall operate to divest its locals/chapters of
their status of legitimate labor organizations, unless the
locals/chapters are covered by a duly registered CBA which
will allow them to register as independent unions. Failing
which, they shall lose their legitimate status upon expiration of
the CBA.
Legal effect of cancellation of registration
The labor organization simply loses its rights and
privileges under the Labor Code.
It does not entail dissolution of the union and does
not affect its legal personality.
Art. 246. Effect of a Petition for Cancellation of Registration. – A
petition for cancellation of union registration shall not suspend
the proceedings for certification election nor shall it prevent the
filing of a petition for certification election.
In case of cancellation, nothing herein shall restrict the
right of the union to seek just and equitable remedies in the
appropriate courts.
The filing of a petition for cancellation of union
registration does not have the effect of depriving it of its rights
as a legitimate labor organization under the Code.
The legitimate labor organization whose registration
is cancelled during the pendency of a case may still continue
to be a party to the case without the necessity of substitution.
However, whatever decision rendered therein shall only be
binding on the members who have not signified their desire to
withdraw from the case before its trial and decision on the
merits.
Art. 247. Grounds for cancellation of union registration. – The
following may constitute grounds for cancellation of union
registration:
(a) Misrepresentation, false statement or fraud in
connection with the adoption or ratification of the constitution
and by-laws or amendments thereto, the minutes of ratification
and the list of members who took part in the ratification;
(b) Misrepresentation, false statements or fraud in
connection with the election of officers and the list of voters; and
(c) Voluntary dissolution by the members.
2 categories of grounds for cancellation
1. Fraudulent acts
a. Adoption or ratification of the constitution
and by-laws or amendments thereto;
 University of Santo Tomas
Faculty of Civil Law
b. Minutes of ratification;
c. List of members who took part in the
ratification;
d. Election of officers and the minutes
governing said election; and
e. List of voters
2. Voluntary acts (see Art. 248)
a. Cancellation of union registration by
voluntary dissolution;
b. Approved by 2/3 votes of its general
membership in a meeting called for the
purpose; and
c. Application for cancellation is filed by the
union board and attested to by its president.
Art. 248. Voluntary Cancellation of Registration. – The
registration of a legitimate labor organization may be cancelled
by the organization itself: Provided, That at least two-thirds (2/3)
of its general membership votes, in a meeting duly called for that
purpose to dissolve the organization: Provided, further, That an
application to cancel registration is thereafter submitted by the
board of the organization, attested to by the president thereof.
Art. 249. Equity of the incumbent. – All existing federations and
national unions which meet the qualifications of a legitimate
labor organization and none of the grounds for cancellation shall
continue to maintain their existing affiliates regardless of the
nature of the industry and the location of the affiliates.
Local union may also disaffiliate from federations or
national unions without being burdened by the “one-industry
one union” policy.
CHAPTER II
RIGHTS AND CONDITIONS OF MEMBERSHIP
Art. 250. Rights and conditions of membership in a labor
organization. – The following are the rights and conditions of
membership in a labor organization:
(a) No arbitrary or excessive initiation fees shall be
required of the members of a legitimate labor organization nor
shall arbitrary, excessive or oppressive fine and forfeiture be
imposed;
(b) The members shall be entitled to full and detailed
reports from their officers and representatives of all financial
transactions as provided for in the constitution and by-laws of
the organization;
(c) The members shall directly elect their officers in the
local union, as well as their national officers in the national union
or federation to which they or their local union is affiliated, by
secret ballot at intervals of five (5) years. No qualification
requirements for candidacy to any position shall be imposed
other than membership in good standing in subject labor
organization. The secretary or any other responsible union
officer shall furnish the Secretary of Labor and Employment
with a list of the newly-elected officers, together with the
appointive officers or agents who are entrusted with the handling
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of funds, within thirty (30) calendar days after the election of
officers or from the occurrence of any change in the list of
officers of the labor organization;
(d) The members shall determine by secret ballot, after
due deliberation, any question of major policy affecting the entire
membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot
impractical, in which case, the board of directors of the
organization may make the decision in behalf of the general
membership;
(e) No labor organization shall knowingly admit as
members or continue in membership any individual who belongs
to a subversive organization or who is engaged directly or
indirectly in any subversive activity;
(f) No person who has been convicted of a crime
involving moral turpitude shall be eligible for election as a union
officer or for appointment to any position in the union;
(g) No officer, agent or member of a labor organization
shall collect any fees, dues, or other contributions in its behalf or
make any disbursement of its money or funds unless he is duly
authorized pursuant to its constitution and by-laws;
(h) Every payment of fees, dues or other contributions
by a member shall be evidenced by a receipt signed by the officer
or agent making the collection and entered into the record of the
organization to be kept and maintained for the purpose;
(i) The funds of the organization shall not be applied for
any purpose or object other than those expressly provided by its
constitution and by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general
meeting duly called for the purpose;
(j) Every income or revenue of the organization shall be
evidenced by a record showing its source, and every expenditure
of its funds shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and
purpose of such payment. Such record or receipt shall form part
of the financial records of the organization.
Any action involving the funds of the organization shall
prescribe after three (3) years from the date of submission of the
annual financial report to the Department of Labor and
Employment or from the date the same should have been
submitted as required by law, whichever comes earlier: Provided,
That this provision shall apply only to a legitimate labor
organization which has submitted the financial report
requirements under this Code: Provided, further, that failure of
any labor organization to comply with the periodic financial
reports required by law and such rules and regulations
promulgated thereunder six (6) months after the effectivity of
this Act shall automatically result in the cancellation of union
registration of such labor organization;
(k) The officers of any labor organization shall not be
paid any compensation other than the salaries and expenses due
to their positions as specifically provided for in its constitution
and by-laws, or in a written resolution duly authorized by a
majority of all the members at a general membership meeting
 University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester (4A) | 34

duly called for the purpose. The minutes of the meeting and the
list of participants and ballots cast shall be subject to inspection
by the Secretary of Labor or his duly authorized representatives.
Any irregularities in the approval of the resolutions shall be a
ground for impeachment or expulsion from the organization;
(l) The treasurer of any labor organization and every
officer thereof who is responsible for the account of such
organization or for the collection, management, disbursement,
custody or control of the funds, moneys and other properties of
the organization, shall render to the organization and to its
members a true and correct account of all moneys received and
paid by him since he assumed office or since the last day on
which he rendered such account, and of all bonds, securities and
other properties of the organization entrusted to his custody or
under his control. The rendering of such account shall be made:
(1) At least once a year within thirty (30) days
after the close of its fiscal year;
(2) At such other times as may be required by
a resolution of the majority of the members of the
organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by
affidavit and a copy thereof shall be furnished the Secretary of
Labor.
Any violation of the above rights and conditions of
membership shall be a ground for cancellation of union
registration or expulsion of officers from office, whichever is
appropriate. At least thirty percent (30%) of the members of a
union or any member or members specially concerned may
report such violation to the Bureau. The Bureau shall have the
power to hear and decide any reported violation to mete the
appropriate penalty.
Criminal and civil liabilities arising from violations of
above rights and conditions of membership shall continue to be
under the jurisdiction of ordinary courts.
Union membership
Any employee, whether employed for a definite
period or not, shall, beginning on his first day of service, be
considered an employee for purposes of membership in a labor
union.
Relationship between union and its members
It is governed by:
1. Their mutual agreement;
2. The terms and conditions set forth in the union
constitution and by-laws and binding on the members
and organization itself.

(m) The books of accounts and other records of the Rights of union members
financial activities of any labor organization shall be open to
inspection by any officer or member thereof during office hours; 1.
(n) No special assessment or other extraordinary fees 2.
may be levied upon the members of a labor organization unless
authorized by a written resolution of a majority of all the 3.
members in a general membership meeting duly called for the
purpose. The secretary of the organization shall record the
minutes of the meeting including the list of all members present, 4.
the votes cast, the purpose of the special assessment or fees and
the recipient of such assessment or fees. The record shall be 5.
attested to by the president. 6.
(o) Other than for mandatory activities under the Code, 7.
no special assessments, attorney’s fees, negotiation fees or any
other extraordinary fees may be checked off from any amount 8.
due to an employee without an individual written authorization
duly signed by the employee. The authorization should
specifically state the amount, purpose and beneficiary of the 9.
deduction; and
10.
(p) It shall be the duty of any labor organization and its
officers to inform its members on the provisions of its 11.
constitution and by-laws, collective bargaining agreement, the
prevailing labor relations system and all their rights and 12.
obligations under existing labor laws.
13.
For this purpose, registered labor organizations may
assess reasonable dues to finance labor relations seminars and
other labor education activities. 14.
Right against arbitrary or excessive initiation fees,
fines and forfeitures;
Right to full and detailed reports on financial
transaction;
Right to directly elect union officers, both local and
national, by secret ballot;
Right to take part in determining and voting upon
major questions of policy such as declaring a strike;
Right against admission of subversives;
Right against appointment or election of certain
persons;
Right against unauthorized collection of fees or
disbursement of funds;
Right to demand receipt for payment of fees, dues,
or other contributions;
Right against unauthorized disbursement of union
funds;
Right against unauthorized compensation to union
officers;
Right of inspection of books of accounts and other
financial records of the union;
Right against unreasonable special assessment or any
other extraordinary fees;
Right against check-off for special assessment or any
other extraordinary fees;
Right to be informed on matters affecting constitution
and by-laws, CBA, prevailing labor relations system
and rights and obligations under existing laws;
 University of Santo Tomas
Faculty of Civil Law
15. Right to run for union office; and
16. Right to due process on matters of discipline.
Union Officers
1. Qualifications
a. Must be an employee of the company where
the union is operating;
b. Must be a member of the union in good
standing and
c. Must not have been convicted of a crime
involving moral turpitude, unless he had
been given an absolute pardon for such
offense.
2. Disqualifications
a. Convicted of a crime involving moral
turpitude;
b. Belongs to a subversive organization; and
c. Engaged directly or indirectly in any
subversive activity.
3. Election
The union members shall directly elect their
offices in the local union as well as their national officers
in the federation, by secret ballot at interval of 5 years.
4. Election protest
Protests against union elections should be
formalized before the Med-Arbiter within 5 days from the
close of the election proceedings and must be decided by
the latter within 20 working days. If not formalized within
the prescribed period, the protest is deemed dismissed.
5. Expulsion of union officers
The remedy against erring union officers is
expulsion, if they were guilty of the acts imputed against
them.
6. Grounds for impeachment or expulsion
a. Failure to provide mandatory adequate labor
education and research services to members
of a labor organization;
b. Misuse or illegal disbursement of the labor
education and research fund;
c. Any irregularities in the approval of the
resolutions on unauthorized compensation of
officers;
d. Membership in another labor union;
e. Culpable violation of the constitution and
by-laws of the union.75
75
Duyag vs. Inciong, 98 SCRA 522.
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Filing of intra-union dispute cases
Cases involving violation of the constitution and by-
laws and the rights and conditions of membership are
cognizable by the RO where the union is domiciled.
Requirements:
1. Complaints for violation of rights and conditions of
union membership
a. If the violation affects the general
membership – should be signed by at least
30% of all the members of the union
b. If the violation affects only a particular
membership – he may alone file his
complaint
2. The petition on its face must show that the
administrative remedies provided for in the
constitution and by-laws have been exhausted or such
remedies are not readily available to the complaining
members through no fault of their own.
XPN to requirement of exhaustion:
a. Resort to the remedy would be futile,
illusory, or vain;
b. Remedy applied for was not acted upon for
an unreasonable length of time;
c. Relief sought was simply for damages;
d. Act complained of is contrary to the
constitution and by-laws;
e. Issue is purely question of law; and
f. Due process was not observed.
Appeals
Decisions involving intra-union disputes may be
appealed to the BLR within 10 calendar days on the following
grounds:
1. Grave abuse of discretion; and
2. Gross incompetence
The decision of the RD is stayed pending appeal with
the BLR. The decision of the BLR in the exercise of appellate
jurisdiction is immediately executory upon issuance of entry
of final judgment.
Prescriptive period on actions involving union funds
3 years from the:
1. Date of submission of the annual financial report to
the DOLE; or
2. Date of the same should have been submitted as
required by law
Whichever comes earlier.
 University of Santo Tomas
Faculty of Civil Law
Check-off
It is a method of deducting from an employee’s pay
at prescribed period, the amounts due the union for fees, fines,
or assessments for the purpose of raising revenues for the
union.
Union agreements containing check-off provisions,
may establish a general check-off for all employees, or in the
absence of a closed shop, they may provide a check-off for
every union member without the requirement of individual
authorization.
Types of check-off
1. Voluntary irrevocable – employer agrees to deduct
union dues and other monies from the worker’s
wages if the latter signs a form authorizing the former
to do so, which is irrevocable for a certain period or
beyond the termination of the contract, whichever is
sooner.
2. Voluntary revocable – the worker is given the
discretion to revoke the authorization at any time he
sees fit.
3. Involuntary irrevocable – employer agrees that to
secure and keep his job, a worker must sign a form
authorizing the employer to deduct union dues and
other monies from his wages.
4. Automatic – employer agrees to deduct automatically,
dues and other monies from the worker’s wages and
turn over the money to the union.
5. Year-to-year renewal – If the worker does not revoke
the check-off authorization at the end of the year, it
goes into effect for another year.
NOTE: Irrevocable check-off authorization is coterminous
with union membership or affiliation.
NOTE: The federation is not entitled to check-off dues upon
disaffiliation of local union.
NOTE: The law requires an individual written authorization
duly signed by every employee in order that a special
assessment may be validly checked-off.
Requirements for a valid special assessment
1. General membership meeting called for the purpose;
2. Written resolution;
3. The resolution was passed by the majority of all the
union members; and
4. The minutes of the meeting recorded by the union
secretary and attested by the union president.
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CHAPTER III
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
Art. 251 Rights of legitimate labor organizations. – A legitimate
labor organization shall have the right:
(a) To act as the representative of its members for the
purpose of collective bargaining;
(b) To be certified as the exclusive representative of all
the employees in an appropriate bargaining unit for purposes of
collective bargaining;
(c) To be furnished by the employer, upon written
request, with its annual audited financial statements, including
the balance sheet and the profit and loss statement, within thirty
(30) calendar days from the date of receipt of the request, after
the union has been duly recognized by the employer or certified
as the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar
days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and
benefit of the labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit
the organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special
law to the contrary, the income and the properties of legitimate
labor organizations, including grants, endowments, gifts,
donations and contributions they may receive from fraternal and
similar organizations, local or foreign, which are actually,
directly and exclusively used for their lawful purposes, shall be
free from taxes, duties and other assessments. The exemptions
provided herein may be withdrawn only by a special law
expressly repealing this provision.
See notes on Art. 240.
Art. 252. Reportorial Requirements. – The following are
documents required to be submitted to the Bureau by the
legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto,
the minutes of ratification, and the list of members who took part
in the ratification of the consultation and by-laws within thirty
(3) days from adoption or ratification of the constitution and by-
laws or amendments thereto;
(b) Its list of officers, minute of the election of officers,
and list of voters within thirty (3) days from election:
(c) Its annual financial report within thirty (30) days
after the close of every fiscal year; and
(d) Its list of members at least once a year or whenever
required by the Bureau.
 University of Santo Tomas
Faculty of Civil Law
Failure to comply with the above requirements shall not
be aground for cancellation of union registration but shall
subject the erring officers of members to suspension, expulsion
from membership, or any appropriate penalty.
See notes on Art. 240.
TITLE V
COVERAGE
Art. 253. Coverage and employees’ right to self-organization. –
All persons employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or educational
institutions, whether operating for profit or not, shall have the
right to self-organization and to form, join, or assist labor
organizations of their own choosing for purposes of collective
bargaining. Ambulant, intermittent and itinerant workers, self-
employed people, rural workers and those without any definite
employers may form labor organizations for their mutual aid and
protection.
Who may join labor organizations
1. All persons employed in:
a. Commercial
b. Industrial
c. Agricultural enterprises
d. Religious
e. Charitable
f. Medical
g. Education institutions, whether for profit or not
2. Ambulant, intermittent and itinerant workers
3. Self-employed people
4. Rural workers
5. Those without any definite employers
6. Alien employees with valid working permits issued
by the DOLE if they are nationals of a country which
grants the same or similar rights to Filipino workers,
as certified by the DFA
7. Supervisory employees may form, join or assist
separate labor unions of their own but shall not be
eligible for membership in a labor union of the rank-
and-file employees
NOTE: Managerial employees shall not be eligible to form,
join or assist any labor unions for purposes of collective
bargaining.
NOTE:
Registered legitimate labor organizations – have the
right to represent their members for collective bargaining and
other purposes.
Workers’ association – can represent their members
for purposes other than collective bargaining.
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Principle of union autonomy (freedom from government
interference)
GR: A labor organization enjoys a certain degree of autonomy
or freedom from government interference.
XPN: When there is an inter-union or intra-union conflict,
labor officials should not hesitate to enforce strictly the law
and regulations even if that course of action would curtail
union autonomy and freedom from government interference.
Employee for purposes of union membership
Any employee, whether employed for a definite
period or not, shall, beginning on his first day of service, be
considered an employee for purposes of membership in any
labor union.
Supervisory employees, however, shall not be
eligible for membership in a labor organization of the rank-
and-file employees. But, they may join, assist, pr form
separate labor organizations of their own.
Examples of employees who are allowed to form or join a
union
1. Security guards may now join labor organizations of
the rank-and-file or that of supervisory unions
depending on their rank;76
2. Working children can join a union. P.D. 603 or The
Child and Youth Welfare Code provides that neither
the management nor any collective bargaining union
shall threaten or coerce working children to join,
continue or withdraw as members of such union;
3. Homeworkers;
4. Independent contractor’s employees;
5. The right of members of Iglesia ni Kristo sect not to
join a labor union for being contrary to their religious
beliefs does not bar the members of that sect from
forming their own union of for the recognition of the
tenets of the sect should not infringe on the basic
right to self-organization granted by the Constitution
to workers regardless of religious affiliation;77
6. Employees of non-profit institutions.
Example/s of employees who are not allowed to form or
join a union
1. Employee-members of a cooperative cannot join a
labor union. But, they are not prohibited from
withdrawing their membership in the cooperative in
order to join a labor union pursuant to their right to
self-organization.78
76
MERALCO vs. Sec. of Labor, G.R. No. 91902 (1991).
77
Kapatiran vs. Ferrer-Calleja, 162 SCRA 367.
78
Central Negros Electric Cooperative, Inc. vs. Sec. of Labor, G.R. No. 94045
(1991).
 University of Santo Tomas Labor Law Review
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3. Personnel growth and development;

Confidential employee doctrine; Exceptions
GR: Confidential employees are ineligible to form, assist or
join a labor union because by the nature of their functions,
they assist and act in a confidential capacity to, or have access
to confidential matters, of persons who exercise managerial
functions in the field of labor relations, and the union might
not be assured of their loyalty in view of evident conflict of
interest.79
This includes confidential employees performing
managerial functions, in the same manner as managerial
employees, applying the doctrine of necessary implication.80
XPN:
1. If the access to confidential labor relations
information is merely incidental in the performance
of their functions;
2. If he does not have access or is not allowed access to
confidential labor relations information.
4. Communication system;
5. Provision for protection and safety;
6. Provision for facilities for handicapped personnel;
7. Provision for first aid medical services and supplies;
8. Physical fitness program;
9. Provision for family planning services for married
women;
10. Annual physical/medical examination;
11. Recreational, social, athletic, and cultural activities
and facilities.
Matters not proper for collective negotiation
1. Terms and conditions of employment that are fixed
by law;
2. Matters that require appropriation of funds;
3. Matters that involve exercise of management
prerogatives
Government employees may not strike

Art. 254. Right of employees in the public service. – Employees of Government employees may, therefore, through their
government corporations established under the Corporation union or associations, either:
Code shall have the right to organize and to bargain collectively
with their respective employers. All other employees in the civil
1. Petition the Congress for the betterment of the terms
service shall have the right to form associations for purposes not
contrary to law. and conditions of employment which are within the
ambit of legislation; or
Right to self-organization in the public sector 2. Negotiate with the appropriate government agencies
for the improvement of those which are not fixed by
1. Employees in GOCCs with original law.
charters/Chartered corporations – governed by the
civil service laws. NOTE:
– they cannot collectively bargain but they have
the right to collective negotiation. 1. Employees of international organizations may join a
union but not for purposes of collective bargaining
2. Employees in GOCCs without original charters/ for this may trigger off an international organization
Subsidiary or corporate offspring – governed by the to be involved in a legal process which is the evil
Labor Code. sought to be prevented by the grant of immunity.
2. Alien employees without valid working permits
Not allowed to form, join or assist organizations, cannot form or join a union. Even if they possess
associations or federations permits, they still cannot enjoy the right to self-
organization if they are nationals of a country that
1. Members of the AFP; does not grant the same right to Filipino workers.
2. Police officers;
3. Policemen; Art. 255. Ineligibility of managerial employees to join any labor
organization; right of supervisory employees. – Managerial
4. Firemen;
employees are not eligible to join, assist or form any labor
5. Jail guards; organization. Supervisory employees shall not be eligible for
6. High-level employees membership in the collective bargaining unit of the rank-and-file
employees but may join, assist or form separate collective
Matters proper for collective negotiation bargaining units and/or legitimate labor organizations of their
own. The rank and file union and the supervisors’ union
1. Schedule of vacation and other leaves; operating within the same establishment may join the same
2. Work assignment of pregnant women; federation or national union.

79
Philips Industrial Dev., Inc. vs. NLRC, G.R. No. 88957 (1992).
80
NATU vs. Hon. Torres, G.R. No. 93468 (1994).
 University of Santo Tomas
Faculty of Civil Law
Managerial Employee
One who is vested with powers or prerogatives to lay
down and execute management polices and/or to hire, transfer,
suspend, lay-off, recall, discharge, assign, or discipline
employees.
1. Top and Middle Managers – have the authority to
devise, implement and control strategic and
operational policies.
2. First-Line Managers – to ensure that such policies
are carried out by the rank-and-file employees of an
organization.
NOTE: Designation should not be reconciled with the actual
job description of the employee for it is the job description or
the nature of functions that determines the nature of
employment.
Supervisory Employee
One who, in the interest of the employer, effectively
recommends managerial actions if the exercise of such
authority is not merely routinary or clerical in nature but
requires the use of independent judgment.
Rank-and-file employee
All employees not falling within the definitions of
managerial or supervisory employee.
NOTE: A labor organization composed of both rank-and-file
and supervisory employees is no labor organization at all as
the supervisory employees cannot join the rank-and-file
employees’ union.
Separation of unions doctrine; comingling prohibited (Old
Rule)
This doctrine prohibits a situation where the
supervisory union and the rank-and-file union operating within
the same establishment are both affiliated with one and the
same federation or national union because of the possible
conflict of interest which may arise in the areas of discipline,
collective bargaining and strike.
It is to prevent the supervisors from comingling with
the rank-and-file employees whom they directly supervise in
their own bargaining unit.
Adamson & Adamson Ruling reinstated; comingling
allowed (New Rule)
The law now allows a rank-and-file union and a
supervisors’ union operating within the same bargaining unit
to join the one and the same federation or national union.
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The fact that the 2 groups of workers are employed
by the same company and that the unions are affiliated with
one and the same federation is not sufficient to justify the
conclusion that their organizations are actually just one.81
Art. 256. Effect of inclusion as members of employees outside the
bargaining unit. – The inclusion as union members of employees
outside the bargaining unit shall not be a ground for the
cancellation of the registration of the union. Said employees are
automatically deemed removed from the list of membership of
said union.
Members outside of the bargaining unit, automatically
deemed removed
The inclusion as union members of employees
outside of the bargaining unit are automatically deemed
removed from the list of membership of said union; but the
same shall not be aground for cancellation of union
registration.
Art. 257. Non-abridgment of right to self-organization. – It shall
be unlawful for any person to restrain, coerce, discriminate
against or unduly interfere with employees and workers in their
exercise of the right to self-organization. Such right shall include
the right to form, join, or assist labor organizations for the
purpose of collective bargaining through representatives of their
own choosing and to engage in lawful concerted activities for the
same purpose for their mutual aid and protection, subject to the
provisions of Article 26482 of this Code.
Title VI
UNFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
Art. 258. Concept of unfair labor practice and procedure for
prosecution thereof. – Unfair labor practices violate the
constitutional right of workers and employees to self-
organization, are inimical to the legitimate interests of both labor
and management, including their right to bargain collectively
and otherwise deal with each other in an atmosphere of freedom
and mutual respect, disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations.
Consequently, unfair labor practices are not only
violations of the civil rights of both labor and management but
are also criminal offenses against the State which shall be subject
to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the
Secretary of Labor and Employment of the powers vested in
them by Articles 263 and 264 of this Code83, the civil aspects of all
cases involving unfair labor practices, which may include claims
for actual, moral, exemplary and other forms of damages,
attorney’s fees and other affirmative relief, shall be under the
81
Adamson & Adamson, Inc. vs. CIR, G.R. No. L-35120 (1989).
82
Art. 264 has been renumbered as Art. 279.
83
Renumbered as Arts. 278 and 279, respectively.
 University of Santo Tomas
Faculty of Civil Law
jurisdiction of the Labor Arbiters. The Labor Arbiters shall give
utmost priority to the hearing and resolution of all cases
involving unfair labor practices. They shall resolve such cases
within thirty (30) calendar days from the time they are submitted
for decision.
Recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be
instituted without a final judgment finding that an unfair labor
practice was committed, having been first obtained in the
preceding paragraph. During the pendency of such
administrative proceeding, the running of the period of
prescription of the criminal offense herein penalized shall be
considered interrupted: Provided, however, That the final
judgment in the administrative proceedings shall not be binding
in the criminal case nor be considered as evidence of guilt but
merely as proof of compliance of the requirements therein set
forth.
Unfair Labor Practice
It is an act of an employer or union or their agents, which
violates the right of workers to self-organization, which
includes the right to:
1. Form a union;
2. Take part in its formation;
3. Join or assist a union of their own choosing for
purposes of;
4. Collective bargaining and negotiations; and
5. Engage in concerted activities for mutual aid and
protection.
2 kinds of ULP:
1. Employer ULP
2. Union ULP
Civil aspects of ULP
These shall be under the jurisdiction of the LA, who
shall resolve such cases within 30 calendar days from the time
they are submitted for decision.
NOTE: Recovery of civil liability in the administrative
proceedings shall bar recovery under the Civil Code.
Criminal aspects of ULP
These shall be under the concurrent jurisdiction of
the regular courts.
No criminal prosecution for ULP may be instituted
without a final judgment finding ULP was committed, having
been first obtained in the administrative proceedings before
the LA.
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During the pendency of such administrative
proceedings, the running of the period of prescription of the
criminal offense (1 year from accrual of such ULP) shall be
considered interrupted.
However, the final judgment in the administrative
proceedings shall not be binding in the criminal case nor be
considered as evidence of guilt but merely as a proof of
compliance of the requirements therein set forth.
Scope of ULP
1. ULP can be committed only if there exists employer-
employee relationship.
XPN: Instances when it can be committed
against a non-employee (ie. Yellow-dog contract).
2. ULP can be committed only against an employee
who exercises or has exercised his right to self-
organization.
Burden of proof in ULP
It shall be upon the union to present substantial
evidence to support its allegations (administrative
proceedings).
Penalties for ULP
1. Fine of not less than P1,000.00 nor more than
P10,000.00; or
2. Imprisonment of not less than 3 months nor more
than 3 years; or
3. Both, at the discretion of the court.
Criminal liability of officers
The officers and agents of corporations, associations
or partnerships, OR the officers, board members,
representatives or agents or members of labor organizations or
associations, who have actually participated in, authorized or
ratified the ULP shall be held criminally liable.
Prescriptive period of ULP
Within 1 year from accrual of such ULP.
CHAPTER II
UNFAIR LABOR PRACTICES OF EMPLOYERS
Art. 259. Unfair labor practices of employers. – It shall be
unlawful for an employer to commit any of the following unfair
labor practice:
(a) To interfere with, restrain or coerce employees in
the exercise of their right to self-organization;
 University of Santo Tomas Labor Law Review
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(b) To require as a condition of employment that a c. Accepting an offer by the majority of the
person or an employee shall not join a labor organization or shall employees to abandon their union in return
withdraw from one to which he belongs; for a wage increase;
d. Changing work assignments after the
(c) To contract out services or functions being
employees had organized themselves;
performed by union members when such will interfere with,
restrain or coerce employees in the exercise of their rights to self- e. The closure or shut down of the corporation
organization; shortly after the union had been organized as
well as the dismissal of the employees
(d) To initiate, dominate, assist or otherwise interfere effected under false pretenses
with the formation or administration of any labor organization,
including the giving of financial or other support to it or its 2. Indirect interference; such as:
organizers or supporters; a. Anti-union conduct of supervisory
employees or by outsiders acting as agents
(e) To discriminate in regard to wages, hours of work
for the employer;
and other terms and conditions of employment in order to
encourage or discourage membership in any labor organization. b. Anti-union conduct or statements of the
Nothing in this Code or in any other law shall stop the parties managerial employees.
from requiring membership in a recognized collective bargaining
agent as a condition for employment, except those employees who TEST: Whether the employer has engaged in conduct that
are already members of another union at the time of the signing would reasonably tend to interfere with the free exercise of the
of the collective bargaining agreement. Employees of an employees’ right to self-organization.
appropriate bargaining unit who are not members of the
recognized collective bargaining agent may be assessed a II. Restraint and coercion
reasonable fee equivalent to the dues and other fees paid by
members of the recognized collective bargaining agent, if such
non-union members accept the benefits under the collective 1. Economic coercion – may be exerted through:
bargaining agreement: Provided, that the individual a. Wage increase, particularly prior to election;
authorization required under Article 242, paragraph (o) of this b. Granting bonuses to strikers who return to
Code84 shall not apply to the non-members of the recognized work while withholding it from those
collective bargaining agent; continuing to strike;
c. Promising permanent employment rather
(f) To dismiss, discharge or otherwise prejudice or that lay-offs, promotions and vacations with
discriminate against an employee for having given or being about pay;
to give testimony under this Code;
d. Evictions from company houses
(g) To violate the duty to bargain collectively as
prescribed by this Code; 2. Physical coercion
3. Psychological coercion
(h) To pay negotiation or attorney’s fees to the union or
its officers or agents as part of the settlement of any issue in III. Yellow-dog Contract
collective bargaining or any other dispute; or
It is an ULP committed by an employer against an
(i) To violate a collective bargaining agreement applicant to require as a condition of employment that:
1. He is not a member of a union;
The provisions of the preceding paragraph
notwithstanding, only the officers and agents of corporations, 2. If a member, he will resign;
associations or partnerships who have actually participated in, 3. He will not join a labor union.
authorized or ratified unfair labor practices shall be held
criminally liable. IV. Company or captive unionism

I. Employer’s interference; Totality of Conduct Another form of ULP committed by an employer to

Test initiate, dominate, assist or otherwise interfere with the
formation or administration of any labor organization,
1. Direct Interference, such as: including the giving of financial or other support to it or its
a. When an employer requires an employee to organizers or officers.
sign a contract not to join a union (yellow-
dog contract); Other forms of Company Domination:
b. Espionage or surveillance of union
members; 1. Initiation of the company union idea
a. Outright formation by the employer or his
84
representatives;
Renumbered as Art. 250, par (o).
 University of Santo Tomas Labor Law Review
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b. Employee formation on outright demand by

employer; and NOTE: The employees could validly stage a strike in
c. Managerially motivated formation by the new location for the law provides that strike area
employees. includes run-away shop.
2. Financial support to the union
3. Employer encouragement and assistance 2. Surface bargaining – going through the motions of
4. Supervisory assistance negotiating without any legal intent to reach an
5. Passivity of the union agreement; it involves question of intent.
a. If the union makes no effort to procure a 3. Take it or leave it bargaining (Boulwareism) – a
CBA; violation of the duty to bargain collectively and in
b. If it accepts an agreement lacking the usual good faith.
substantive provisions; 4. Declining to deal with the certified bargaining union
c. Failure of the union to hold meetings, elect on the ground that the unit was not appropriate
officers, collect dues, or to adopt 5. Delaying bargaining negotiations
constitution and by-laws.
6. Employer becomes more friendly to the union VIII. Gross violation of a CBA
(captive unionism)
It means the flagrant and/or malicious refusal to
V. Contracting out services being performed by comply with the economic provisions of the CBA (the law
union members between the employer and the union; impressed with public
interest).
It is an ULP committed by employer to contract out
services or functions being performed by union members IX. Dismissal for giving testimony
when such will interfere with, restrain or coerce employees in
the exercise of their right to self-organization. It is an ULP committed by an employer to dismiss,
discharge or otherwise prejudice or discriminate against an
VI. Acts of discrimination employee for having given or being about to give his
testimony under the Labor Code.
1. Dismissal lay-off – must be committed because of
union activities. NOTE: It is the only ULP not related to the right of workers
2. Closure or shutdown – due to union activities. to self-organization and collective bargaining.
3. Rehiring (ie. Delayed reinstatement, conditional
reinstatement) Union Security Clauses
4. Transfer – when an employee is transferred from one
job to another, even though it carries the same wage The parties are not prohibited from requiring
rate, if the new job is considered by the employee to membership in a recognized collective bargaining agent as a
be less desirable and the purpose is discouragement condition for employment, EXCEPT those employees who are
of union activity. already members of another union at the time of the signing of
5. Retrenchment – due to union activities. the CBA.
6. Constructive dismissal
1. Closed-shop – All employees must be members of
VII. Refusal to bargain the union at the time of hiring and they must remain
members in good standing during the period of
It is a violation of the duty to bargain collectively. employment

Duty to bargain collectively –
a. Mutual obligation to meet and convene
b. Promptly and expeditiously
c. In good faith
For the purpose negotiating an agreement.
1. Run-away shop – transferring operation to elude the
union; it usually takes place by effecting the transfer
of ownership, the plant itself, or its equipment and
machines or by temporarily closing its business
purposely to bust the union or to evade payment of its
legitimate obligations
NOTE: This applies only to persons to be hired and
to those who are not yet members; otherwise, the
same is null and void.
NOTE: That “they must remain members in good
standing during the period of employment” must be
clear and unequivocal for it to be considered a
closed-shop agreement.
NOTE: Members of Iglesia ni Kristo cannot be
compelled to join a union under a closed-shop
agreement (religious or conscientious objectors).
 University of Santo Tomas
Faculty of Civil Law
2. Closed-shop with a closed union – A form of closed-
shop where union membership is limited and entry of
new members is restricted.
3. Closed-shop with an open union – A form of closed-
shop where union membership is open and entry of
new members is unlimited.
4. Union shop – Workers are not required to be union
members when hired; but to maintain continued
employment, they must continue to pay union dues
and must become member within a specified period
of time.
5. Modified union shop – This requires all new
employees to become union members for sometime
after employment but does not require present
employees to join the union.
NOTE: This cannot bind the minority union and the
conscientious objectors.
6. Maintenance of membership – Non-members are not
required to join the union, but those who do join must
maintain their membership for the duration of the
union contract under penalty of discharge.
7. Agency shop/ Anti-free rider/ Anti-hitchhiker clause/
Maintenance of Treasury Shop – Employees who do
not join the union must pay agency fees as a
condition of employment to help defray the union
expenses as a bargaining agent for the group or all
employees.
BASIS: Principle against unjust enrichment
NOTE: An agency fee may be collected from
employees who are non-union members, provided:
a. The agency fee is a reasonable fee;
b. Such non-union members accept benefits
under the CBA; and
c. The individual authorization requirement
shall not apply to such non-union members.
NOTE: The agency-fee provision is not mandatory.
8. Preferential hiring agreement – The employer is
obliged to give preference to the members of the
union who are qualified. However, absent such
qualified union members will give the employer the
right to choose those from outside of the contracting
union
9. Hiring agreement – The employer is obliged to hire
only those union members without further agreement
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of requiring them to maintain their membership as a
condition sine qua non form employment.
10. Percentage union shop – The employer agrees that a
certain percentage of his employees shall become
union members in good standing.
11. Union recognition clause/ Exclusive bargaining
rights/ Doctrine of Union Monopoly – The employer
recognizes the majority union as the exclusive
bargaining agent in the premises for all employees in
the appropriate bargaining unit.
12. Check-off agreement – It allows the employer to
withhold/deduct union dues from a member’s pay
and transmit the money directly to the union for its
continuous existence.
Principles of Union Security Clauses
1. Protection
2. Benefits
3. Self-preservation
Dismissal of union members; Requisites
Union members who joined another union may be
expelled and consequently dismissed pursuant to the union
security clause. The employer then should prove the
following:
1. The union security clause is applicable;
2. The union demands for the enforcement of the union
security clause; and
3. There is sufficient evidence to support the union’s
decision to expel the union member.
CHAPTER III
UNFAIR LABOR PRACTICES OF LABOR
ORGANIZATIONS
Art. 260. Unfair labor practices of labor organizations. – It shall
be unfair labor practice for a labor organization, its officers,
agents or representatives:
(a) To restrain or coerce employees in the exercise of
their right to self-organization. However, a labor organization
shall have the right to prescribe its own rules with respect to the
acquisition or retention of membership;
(b) To cause or attempt to cause an employer to
discriminate against an employee, including discrimination
against an employee with respect to whom membership in such
organization has been denied or to terminate an employee on any
ground other than the usual terms and conditions under which
membership or continuation of membership is made available to
other members;
 University of Santo Tomas
Faculty of Civil Law
(c) To violate the duty, or refuse to bargain collectively
with the employer, provided it is the representative of the
employees;
(d) To cause or attempt to cause an employer to pay or
deliver or agree to pay or deliver any money or other things of
value, in the nature of an exaction, for services which are not
performed or not to be performed, including the demand for fee
for union negotiations;
(e) To ask for or accept negotiation or attorney’s fees
from employers as part of the settlement of any issue in collective
bargaining or any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph
notwithstanding, only the officers, members of governing boards,
representatives or agents or members of labor associations or
organizations who have actually participated in, authorized or
ratified unfair labor practices shall be held criminally liable.
I. Restraint or coercion of employees
It is an ULP for a union to restrain or coerce
employees in the exercise of their right to self-organization.
II. Featherbedding activities/ Make-work
activities
This is an extortion of money or other things of value
for services performed or unperformed by the labor union.
III. Discrimination against employees
IV. Violation of duty to bargain collectively
It is an ULP for a union to violate the duty, or refuse
to bargain collectively with the employer, provided it is the
representative of the employees.
V. Sweetheart contract
This is an agreement negotiated between the
employer and the union granting concession to the
management or the union, whose purpose is to promote the
welfare of the union officers and not the rank-and-file
employees represented by them.
VI. Top-down contract
This is an agreement concluded between the
management and the union officers without regard to the
welfare of the employees they represent.
VII. Gross violation of the CBA
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VIII. Blue-sky bargaining
It is defined as making exaggerated or unreasonable
proposals or economic demands.
Title VII
COLLECTIVE BARGAINING AND ADMINISTRATION OF
AGREEMENTS
Art. 261. Procedure in collective bargaining. – The following
procedures shall be observed in collective bargaining:
(a) When a party desires to negotiate an agreement, it
shall serve a written notice upon the other party with a statement
of its proposals. The other party shall make a reply thereto not
later than ten (10) calendar days from receipt of such notice;
(b) Should differences arise on the basis of such notice
and reply, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of
request.
(c) If the dispute is not settled, the Board shall intervene
upon request of either or both parties or at its own initiative and
immediately call the parties to conciliation meetings. The Board
shall have the power to issue subpoenas requiring the attendance
of the parties to such meetings. It shall be the duty of the parties
to participate fully and promptly in the conciliation meetings the
Board may call;
(d) During the conciliation proceedings in the Board,
the parties are prohibited from doing any act which may disrupt
or impede the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their case to a
voluntary arbitrator.
Collective bargaining
It is the performance of a mutual obligation to meet
and confer promptly and expeditiously and in good faith for
the purpose of negotiating an agreement with respect to terms
and conditions of employment.
It is a continuous process.
Collective bargaining agreement (Law of the plant)
It refers to a contract executed upon request of either
the employer or the exclusive bargaining representative
incorporating the agreement reached after negotiations with
respect to terms and conditions of employment, including
mandatory provisions for grievance and arbitration
machineries.
It is a contract in personam, thus, binding only
between the parties and not enforceable against a transferee or
 University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester (4A) | 45

a buyer in good faith of an enterprise UNLESS expressly Posting of the CBA; mandatory
assumed.
1. Single-enterprise bargaining – the newly-concluded
Characteristics of collective bargaining CBA is required to be posted in 2 conspicuous places
in the work premises for a period of at least 5 days
1. Continuing legal relationship prior to its ratification by the majority of the
2. Process of adjustment or mutual accommodation members of the bargaining unit.
3. Contract of reasonable benefits 2. Multi-employer bargaining – 2 signed copies of the
4. Contract of relative equality CBA should be posted for at least 5 days in 2
5. Agency of participatory democracy conspicuous areas in each workplace of the employer
unites concerned.
Standards followed in collective bargaining
NOTE: Non-compliance with the mandatory requirement of
1. Mutual – The union and the employer are posting the CBA will render it ineffective.
required to bargain without any intent of
deception. Ratification by the majority of the members of the
2. The parties are required to meet and confer bargaining unit
promptly and expeditiously and in good faith.
3. Good faith – obligation of either of the parties to The law requires the CBA to be ratified by the
participate actively in the deliberation so as to majority of the members of the bargaining unit which is
indicate a present intention to find a basis for represented by the collective bargaining agent in the
agreement, and a sincere effort must be made to bargaining negotiations.
reach a common ground.
4. They must execute a contract incorporating the Registration of the CBA
agreement reached by the parties.
5. They duty to bargain does not compel any party The CBA is required to be registered with BLR of the
to agree to a proposal or to make any concession. DOLE and non-compliance therewith will NOT bar
certification election.
Usual contents of a CBA
Procedures/steps in collective bargaining
1. Preamble
2. Union recognition 1. Preliminary process – serving a written notice to the
3. Management prerogatives other party of its bargaining proposals.
4. Union prerogatives
5. Hours of work and scale of wages – The other party is required to reply
6. Promotions (counter-bargaining proposals) not later than 10
7. Leaves of absence days upon receipt of such notice; otherwise, it is
8. Union security clauses indicative of its utter lack of interest/bad faith in
9. Grievance machinery and voluntary arbitration bargaining, thus, a clear evasion of the duty to
procedures (conclusive arbitration clause) bargain collectively, constituting an ULP.
10. Check-off
11. Family planning 2. Negotiation – conducted not later than 10 calendar
12. Labor education days from the date of request for conference.
13. No-strike, no-lockout clause – an agreement that the
union shall not stage a strike and the employer shall – Request for conference should differences
not declare a lockout on the ground of bargaining arise on the basis of such notice and reply.
deadlock during the lifetime of the CBA. – Dispute not settle, NCMB intervenes; and
14. Family planning, health and safety, cooperative, – NCMB exerts all efforts to settle dispute.
recreation and sports, labor education and research
15. Escalator clause – an agreement which provides that 3. Execution – signing and execution of the CBA by the
wages shall gradually increase in the event of sudden parties.
increase of consumer price or cost-of-living index. 4. Publication – posting a copy of the newly-concluded
16. Drug-free provision CBA in at least 2 conspicuous places in the company.
17. Waiver and completeness of agreement 5. Ratification – by at least a majority of the members
18. Effectivity clause of the bargaining unit.
a. Representation aspect – 5 years 6. Registration – 5 copies of the CBA should be
b. Renegotiation aspect – 3 years submitted with other documentary requirements and
 University of Santo Tomas
Faculty of Civil Law
payment of registration fee to the BLR or RO of the
DOLE.
7. Administration – joint administration of the CBA by
the employer and the bargaining agent during lifetime
of such CBA.
8. Interpretation and enforcement
Written notice required in demand to bargain
A demand to bargain should be in writing. When a
party desires to negotiate an agreement, it should be expressed
though a written notice upon the other party with a statement
of its proposals.
Penalty imposed upon an employer delaying the
bargaining process
For failure to submit any counter proposal to the
CBA proposed by its employees’ certified bargaining agent,
the employer had thereby lost its right to bargain the terms and
conditions of the CBA. Thus, the CBA proposed by its
employees’ union – lock, stock and barrel is imposed upon
erring employee.
Art. 262. Duty to bargain collectively in the absence of collective
bargaining agreements. – In the absence of an agreement or
other voluntary arrangement providing for a more expeditious
manner of collective bargaining, it shall be the duty of employer
and the representatives of the employees to bargain collectively in
accordance with the provisions of this Code.
Art. 263. Meaning of duty to bargain collectively. – The duty to
bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in
good faith for the purpose of negotiating an agreement with
respect to wages, hours of work and all other terms and
conditions of employment including proposals for adjusting any
grievances or questions arising under such agreement and
executing a contract incorporating such agreements if requested
by either party but such duty does not compel any party to agree
to a proposal or to make any concession.
Employer-employee relationship, a must in duty to
bargain
There must be an employer-employee relationship for
the duty to bargain collectively to arise. Where neither party is
an “employer” nor an “employee” of the other, no such duty
exists.
Jurisdictional preconditions for collective bargaining
1. Possession of the status of majority representation of
the employees’ representative in accordance with any
of the means of selection or designation provided for
by the Labor Code;
2. Proof of majority representation; and
3. A demand to bargain
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A.Y. 2017 – 2018, 1st Semester (4A) | 46
NOTE: The preconditions require that the legitimate labor
organization is the certified bargaining agent in the bargaining
unit.
Scope of collective bargaining
1. Terms and conditions of employment
XPN: Minimum wages as they are compulsory and
non-negotiable.
2. Wholesome working conditions
3. Retirement plan
Art. 264. Duty to bargain collectively when there exists a
collective bargaining agreement. – When there is a collective
bargaining agreement, the duty to bargain collectively shall also
mean that neither party shall terminate nor modify such
agreement during its lifetime. However, either party can serve a
written notice to terminate or modify the agreement at least sixty
(60) days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and
effect the terms and conditions of the existing agreement during
the 60-day period and/or until a new agreement is reached by the
parties.
Contract-bar Rule; 60-day freedom period
GR: The existence of CBA duly certified by the BLR serves
as a bar to the filing of a petition for certification election or a
motion for intervention.
XPN: Within the freedom period or 6o days prior to the expiry
date of the CBA.
CBA in force and effect despite the lapse of formal
effectivity (principle of CBA continuity); Contract-bar
rule applies
During the lapse of the formal effectivity of the
existing CBA, the law still considers the same as continuing in
force and effect during the 60-day freedom period or until a
new CBA shall have been validly executed, and therefore, the
contract-bar rule still applies.
Art. 265. Terms of a collective bargaining agreement. – Any
Collective Bargaining Agreement that the parties may enter into
shall, insofar as the representation aspect is concerned, be for a
term of five (5) years. No petition questioning the majority status
of the incumbent bargaining agent shall be entertained and no
certification election shall be conducted by the Department of
Labor and Employment outside of the sixty-day period
immediately before the date of expiry of such five-year term of
the Collective Bargaining Agreement. All other provisions of the
Collective Bargaining Agreement shall be renegotiated not later
than three (3) years after its execution. Any agreement on such
other provisions of the Collective Bargaining Agreement entered
into within six (6) months from the date of expiry of the term of
such other provisions as fixed in such Collective Bargaining
 University of Santo Tomas
Faculty of Civil Law
Agreement, shall retroact to the day immediately following such
date. If any such agreement is entered into beyond six months,
the parties shall agree on the duration of retroactivity thereof. In
case of a deadlock in the renegotiation of the Collective
Bargaining Agreement, the parties may exercise their rights
under this Code.
Term of a CBA; Rule as to effectivity date
1. Representation Aspect – 5 years
It refers to the identity and majority status of the
union that negotiated the CBA as the exclusive bargaining
agent of the appropriate bargaining unit.
The representation status of the incumbent bargaining
agent is reckoned form the effectivity of the CBA which
means that no petition of certification election may be
entertained during the lifetime of the CBA except within the
60-day freedom period immediately preceding the expiration
date of the 5-year term.
2. Renegotiation Aspect – 3 years
It allows the parties to renegotiate all other
provisions of the CBA, except representation aspect. Such
renegotiation should only pertain to the terms and conditions
of the parties’ relationship for the last remaining 2 years of the
5-year period of the CBA.
“All other provisions” – refers to all CBA provisions
whether they are economic or non-economic in nature, except
representation status.
NOTE: The parties could freely stipulate one economic and
non-economic terms and conditions of employment beyond
the 3-year period; say, 5 years which is co-terminus with the
5-year representation status of the exclusive bargaining agent.
Retroactivity of the CBA
1. The effectivity of the CBA shall retroact to the day
immediately after the date of expiration of the old
CBA in case the new CBA is concluded and entered
into within 6 months form the said expiration date.
2. If the new CBA is entered in to beyond the 6 months
from the expiration date of the old CBA, the parties
are given the right to negotiate the duration of the
retroactivity.
NOTE: The retroactivity of the CBA has no application to
arbitral awards.
Labor Law Review
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A.Y. 2017 – 2018, 1st Semester (4A) | 47
One-year extension of CBA valid
Such extension is valid if approved by the union in a
referendum supervised by the DOLE and accepted by the
employer, and it did not violate any law. 85
Principle of Hold-over/CBA Continuity/Automatic
Renewal Clause/Evergreen Clause
It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day
freedom period and/or until a new agreement is reached by the
parties.
Substitutionary doctrine
Where the collective bargaining agent is changed
during the lifetime of agreement, the new agent takes the place
of the old and administers the agreement which subsists and
continues to bind the employees up to its expiration date
inspite of the change in representation.
CBA benefits extend to non-union members
However, they are required to pay fees to the
equivalent to the amount of dues paid by union members in
order to help defray the bargaining and grievance machinery
costs.
Deadlock in CBA renegotiation
Deadlock/Impasse/Standstill – presupposes reasonable effort
at good faith bargaining but despite noble intentions does not
conclude an agreement between the parties.
The parties then may exercise the following:
1. Call upon the NCM to intervene for the purpose of
conduction preventive mediation;
2. Refer the matter for voluntary arbitration or
compulsory arbitration; and
3. Declare a strike or lockout upon compliance of the
legal requirements (remedy of last resort).
10-year suspension of CBA negotiations legally tenable
The right to free collective bargaining includes the
right to suspend it. Thus, the same does not contravene the
protection to labor policy of the Constitution. 86
Art. 266. Injunction prohibited. – No temporary or permanent
injunction or restraining order in any case involving or growing
out of labor disputes shall be issued by any court or other entity,
85
Cruz vs. Ferrer-Calleja, G.R. No. 97332 (199).
86
Rivera vs. Espiritu, 374 SCRA 351.
 University of Santo Tomas
Faculty of Civil Law
except as otherwise provided in Articles 218 and 26487 of this
Code.
Injunction prohibited; Exception
GR: No temporary or permanent injunction or restraining
order in any case involving or growing out of labor disputes
shall be issued by any court or other entity.
XPN:
1. In case of an actual or threatened unlawful strike; and
2. When the labor union or the employer engages in any
of the prohibited activities under Art. 279.
Entities or person authorized to issue injunctions or
restraining orders
1. LA
2. NLRC
3. BLR
4. President
5. Secretary of DOLE
Requirements for injunction
1. Previous hearing;
2. Substantial and irreparable injury will; be caused to
the property of the complainant unless injunction is
issued;
3. The injury thus averted is greater than that caused by
the injunction to the defendant;
4. That the complainant has no adequate remedy at law;
5. The public officers charged with the duty to protect
the complainant’s property are unable or unwilling to
furnish adequate protection.
Rights that may be enjoined
1. Right to picket
2. Right to strike
a. By SOLE’s assumption or certification of a
labor dispute in an industry indispensable to
national interest;
b. When trade unionism and strikes are utilized
to violate existing laws.
Art. 267. Exclusive bargaining representation and workers’
participation in policy and decision-making. – The labor
organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be
the exclusive representative of the employees in such unit for the
purpose of collective bargaining. However, an individual
employee or group of employees shall have the right at any time
to present grievances to their employer.
Any provision of law to the contrary notwithstanding,
workers shall have the right, subject to such rules and
regulations as the Secretary of Labor and Employment may
87
Renumbered as Arts. 225 and 279, respectively.
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Dean Salvador A. Poquiz
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promulgate, to participate in policy and decision-making
processes of the establishment where they are employed insofar
as said processes will directly affect their rights, benefits and
welfare. For this purpose, workers and employers may form
labor-management councils: Provided, That the representatives
of the workers in such labor-management councils shall be
elected by at least the majority of all employees in said
establishment.
Exclusive bargaining agent (doctrine of union monopoly)
Once a union is chosen as the collective bargaining
agent in the company premises through machineries of:
1. Voluntary recognition;
2. Consent election;
3. Certification election;
4. Run-off election
It alone can collectively bargain with the
management to the exclusion of other competing unions.
Appropriate bargaining unit
It is a group of employees of a given employer for
collective bargaining purposes, have substantially mutually
bargaining interests in terms and conditions of employment
that can assure them of the exercise of their collective
bargaining rights.
It should cover only one company.
4-way test in determining an appropriate collective
bargaining unit
1. The express will or desire of the employees test
(Globe Election Doctrine)
2. Community or mutuality of interests test
3. Prior collective bargaining history test
4. Similarity of employment status test
One-company one-union policy; Exception
GR: There should be one union in a company.
XPN: Where the employer unit has to give away to the other
units like the craft unit, plant unit, or a subdivision thereof.
Bona fide corporate spin-off resulting in separate
bargaining units
The transformation of the companies is a
management prerogative and business judgment must
governed by the policy of good faith.
Right of a individual employee to present grievances
An individual employee or group of employees shall
have the right at any time to present grievance to their
 University of Santo Tomas
Faculty of Civil Law
employer despite the existence of collective bargaining
agency.
Principle of Share Responsibility (Co-determination or
Co-sharing)
Employees shall have the right to participate in
policy and decision-making processes if the establishment
insofar as said processes directly affect their rights, benefits
and welfare.
Labor-Management Councils
To effect the right of workers to participate in po9licy
and decision-making processes, workers, and employers may
form LMC. The representatives of the workers shall be elected
by at least the majority of all employees in said establishment.
Art. 268. Representation issue in organized establishments. – In
organized establishments, when a verified petition questioning
the majority status of the incumbent bargaining agent is filed
before the Department of Labor and Employment within the
sixty-day period before the expiration of the collective bargaining
agreement, the Med-Arbiter shall automatically order an election
by secret ballot when the verified petition is supported by the
written consent of at least twenty-five percent (25%) of all the
employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit. To have a valid
election, at least a majority of all eligible voters in the unit must
have cast their votes. The labor union receiving the majority of
the valid votes cast shall be certified as the exclusive bargaining
agent of all the workers in the unit. When an election which
provides for three or more choices results in no choice receiving a
majority of the valid votes cast, a run-off election shall be
conducted between the labor unions receiving the two highest
number of votes: Provided, that the total number of votes for all
contending unions is at least fifty percent (50%) of the number of
votes cast.
At the expiration of the freedom period, the employer
shall continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is
filed.
Any legitimate union can file a verified petition for
certification election
1. Independent union;
2. National union or federation which has already issued
a charter certificate to its local chapter participating
in the certification election; or
3. Local chapter which has been issued a charter
certificate by the national union or federation.
Certification Election; Double majority rule
Certification election – is the process of determining through
secret ballot, the sole and exclusive bargaining agent of the
employees in an appropriate bargaining unit, for purposes of
collective bargaining.
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– It is the sole concern of the workers, thus, the role
of the employer is merely that of a bystander (Bystander
Rule).
Bystander Rule – the employer is a bystander who has no legal
standing in a certification election; while iy may rightfully be
notified or informed of petitions of such nature, it cannot
oppose the petition or appeal the Med-Arbiter’s orders related
thereto.
Double majority rule – for there to be a valid certification
election, the majority of the bargaining unit must have voted
and the winning union must have garnered majority of the
valid votes cast (50% +1 of the total number of eligible
voters).
Motion for intervention; incumbent bargaining agent, a
forced intervenor
Labor unions with substantial interest in the
certification elections have a right to intervene in the
certification proceedings.
Motion for Intervention can be filed at any time
before the holding of a certification election.
In the holding if the certification election, the
incumbent bargaining agent is automatically one of the
choices as forced intervenor.
Filing of a petition for certification election
It may be filed with the Med-Arbiter through the RO
which has jurisdiction over the principal office of the
employer or where the bargaining unit is principally situated.
Where 2 or more petitions involving the same
bargaining unit are filed, the same shall be automatically
consolidated. The RO which first acquires jurisdiction over the
case shall exclude the others.
Time for filing certification election
GR: It may be filed at any time, in the absence of duly
registered CBA.
XPN: No certification election may be filed within 1 year
from the date of a valid certification, consent, or run-off
election or from the date of voluntary recognition.
Jurisdictional 25% subscription requirement
The petition for certification election should be
supported by the written consent of at least 25% of all the
employees in the appropriate bargaining unit. The 25%
requirement need not be established with absolute certainty as
a prima facie showing of compliance will suffice.
 University of Santo Tomas
Faculty of Civil Law
Once it has been verified that the petition is
supported by the written consent of 25% of the employees, it
shall be mandatory upon the Med-Arbiter to order or conduct
certification election.
Requirements for a valid certification election; Double
majority rule
1. First majority rule – at least a majority of all eligible
voters in the bargaining unit must have cast their
votes;
2. Second majority rule – the union receiving the
majority of the valid votes shall be certified as the
exclusive bargaining agent;
3. When an election provides of 3 or more choices
results in no choice receiving a majority of the valid
votes cats, a run-off election shall be conducted
between the labor unions receiving the 2 highest
number of votes, provided, that the total number of
votes for all contending unions is at least 50% of the
number of votes cast;
4. In determining the eligible voters who cast their
ballots under the first majority rule, the spoiled
ballots are included. However, under the second
majority rule, in determining the valid votes case the
spoiled ballots are excluded but the challenged votes
are included.
Grounds for dismissal of petition for certification election
1. Petition not registered – when the petitioner is not
listed in DOLE’s registry of legitimate labor unions
or that its legal personality has been revoked or
cancelled with finality.
2. Petition filed outside of the freedom period – the
petition was filed before or after the freedom period
of a duly registered CBA; provided that the 60-day
period based on the original CBA shall not be
affected by any amendment, extension, or renewal of
the CBA.
3. Petition violate 1-year bar rule – the petition was
filed within 1 year from entry of voluntary
recognition or a valid certification, consent or run-off
election and no appeal on the results of the
certification, consent or run-off election is pending.
4. Petition violated the negotiation-bar/deadlock-bar
rule – a duly certified union has commenced and
sustained negotiations with the employer within 1-
year period or there exists a bargaining deadlock
which had been submitted to conciliation or
arbitration or had become the subject of a valid notice
of strike or lockout to which an incumbent or
certified bargaining agent is a party.
5. Petition filed without 25% consent requirement
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Prohibited grounds for the denial or suspension of the
petition for certification election
Any question pertaining to the validity of petitioning
union’s certificate of registration or agreements shall be heard
and resolved by the RD in an independent petition for
cancellation of its registration and not by the Med-Arbiter in
the petition for certification election, unless the petitioning
union is not found in the DOLE’s roster of legitimate labor
organizations or an existing CBA is unregistered with DOLE.
Appeal for the order of Med-Arbiter granting/denying
petition for certification election
1. Order granting the conduct of a certification election
in an unorganized establishment – shall not be
subject to appeal.
2. Order granting the conduct of a certification election
in an organized establishment – may be appealed to
the Office of the SOLE within 10 days from receipt
thereof.
3. Decision dismissing/denying the petition, whether in
an organized or unorganized establishment – may be
appealed to the Office of the SOLE within 10 days
from receipt thereof.
Venue of appeal
The memorandum appeal shall be filed in the RO
where the petition originated, copy furnished the contending
unions and the employer.
Within 24 hours from receipt thereof, the RD shall
cause the transmittal together with the entire records of the
case to the Office of the SOLE.
Where no appeal is filed within the 10-day period,
the Med-Arbiter shall enter the finality of order/decision in the
records of the case and cause the transmittal of the records of
the petition to the RD.
Decision of the SOLE over appealed decision
The SOLE shall have 15 days from receipt of the
entire records of the petition within which o decide the appeal.
The filing of the memorandum of appeal from the
order/decision of the Med-Arbiter stays the holding of any
certification election.
The decision of the SOLE shall become final and
executory after 10 days from receipt thereof by the parties. No
motion for reconsideration of the decision shall be entertained.
 University of Santo Tomas
Faculty of Civil Law
Legal effects of consent election; 1-year bar rule applies
1. Where a petition for certification election had been
filed, and upon the intercession of the Med-Arbiter,
the parties agree to hold a consent election, the
results thereof shall constitute a bar to the holding of
a certification election for 1 year from the holding of
such consent election.
Where an appeal has been filed from the
results of the consent election, the running of the 1-
year period shall be suspended until the decision on
appeal has become final and executory.
2. Where not petition for certification election was filed
but the parties themselves agreed to hold a consent
election with the intercession of the RO, the results
thereof shall constitute a bar to another petition for
certification election.
Certification election barred despite compliance with the
jurisdictional 25% requirement (Grounds for denial of
petition for certification election)
1. Contract-bar rule – certification election may not be
conducted during the existence of a CBA except
within the 60-day freedom period immediately
preceding the 5th year of such CBA
2. 1-year bar rule/Certification-year bar rule –
certification election may not be held within 1 year
from the date of issuance of a final certification result
(there was an actual conduct of elections).
3. Deadlock-bar rule – certification election may not be
conducted during the existence of a bargaining
deadlock to which an incumbent or certified
bargaining agent is a party and which had been
submitted to conciliation or arbitration or had become
the subject of a valid notice of strike or lockout that
has been filed with the NCMB.
4. Charge-of-company-unionism rule – the pendency of
a formal charge of company unionism is a prejudicial
question that, until decided, bars proceedings for a
certification election because the votes of the
members of the company-dominated union would not
be free.
5. Outside-of-the-freedom period rule – a petition for
certification election or motion for intervention filed
before or after the freedom period shall be dismissed
outright.
6. Negotiation-bar rule – no representation issue may
be entertained, if before the filing of a petition for
certification election, the certified bargaining union
has commenced negotiations with the employer
within 1 year from the date of certification election,
consent election, run-off election or form the date of
voluntary recognition.
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7. Appeal-bar rule – the filing of the appeal form the
order/decision of the Med-Arbiter granting the
petition for certification elections stays the holding of
the certification election.
8. Not listed in the registry rule – when the petitioner is
not listed in DOLE’s registry of legitimate labor
unions or that its legal personality has been revoked
or cancelled with finality.
NOTE:
1. Compliance with 25% consent requirement –
mandatory upon the BLR to order the holding of the
certification election.
2. Petition supported by less than 25% consent
requirement – discretionary upon the BLR to order
the holding of the certification election.
3. 25% consent requirement not met at the time of filing
the petition but the same was thereafter met – valid.
4. Petition totally unsupported by the 25% consent
requirement – the petition should be dismissed.
Effect of retractions before or after the filing of petition
for certification
1. Prior to the filing of the petition – the certification
election may not be ordered for the withdrawal is
presumed voluntary unless there is convincing proof
to the contrary.
2. After the filing of the petition – certification election
may still be ordered for the withdrawal of consent is
presumed to be involuntary.
Best forum rule – the best forum for determining
whether there were indeed retractions from some of
the laborers is in the certification election itself
wherein the workers can freely express their choice
in a secret ballot.
Pre-election conference (inclusion-exclusion proceedings)
Pre-election conference – machinery of determining the
eligibility list of votes prior to the filing of the petition for
certification election for the purpose of seeing to it that the
free choice of the employees is safeguarded against payroll
padding. The list of eligible voters is based on the lists
submitted by all parties.
Inclusion/exclusion of qualified voters
1. Eligible to vote
a. All employees who are members of the
appropriate bargaining unit sought to be
represented by the petitioner at the time of
the issuance of the order granting the
conduct of certification election;
 University of Santo Tomas
Faculty of Civil Law
b. Employees who did not work during the
eligibility period due to illness, vacation, or
temporary lay-off
c. Employees who have been improperly laid-
off
d. Employees who have a present,
unabandoned right to expectation of
reemployment (including strikers, whether
the strike is economic or the result of the
employer’s ULP);
e. Employees who have been dismissed from
work but have contested the legality of the
dismissal in a forum of appropriate
jurisdiction at the time of the issuance of the
order for the conduct of certification
election, unless the dismissal was declared
valid in a final judgment.
NOTE: In case of disagreement over the voters’ list
or over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be
segregated and sealed in individual envelopes.
2. Not eligible to vote
a. Employees who have quit or been
discharged for cause and have not been
rehired or reinstated prior to the date of the
order of certification election
Procedure in pre-election conference
Within 24 hours from receipt of the notice of the
entry of final judgment granting the conduct of a certification
election, the RD shall cause the raffle of the case to an
Election Officer who shall have control of the pre-election
conference and election proceedings.
Within 24 hours from receipt of the assignment for
the conduct of a certification election, the Election Officer
shall cause the issuance of notice of pre-election conference
upon the contending unions and the employer, which shall be
scheduled within 10 days from receipt of assignment.
The pre-election conference shall set the mechanics
for the election and shall determine, among others, the
following:
1. Date, time and place of election, which shall not
be later than 45 days from the date of the first
pre-election conference, and shall be on a regular
working day and within the employer’s
premises, unless circumstances require
otherwise;
2. List of eligible and challenged voters;
3. Number and location of polling places or booths
and the number of ballots to be prepared with
appropriate translations, if necessary;
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4. Name of watchers or representatives and their
alternates for each of the parties during election;
5. Mechanics and guidelines of the election.
Failure of any party to appear during the pre-election
conference despite notice shall be considered as a waiver to be
present and to question or object to any of the agreements
reached in said pre-election conference.
Nothing herein, however, shall deprive the non-
appearing party or the employer of its right to be furnished
notices of subsequent pre-election conferences and to attend
the same.
Challenging of votes; Procedure
An authorized representative of any of the contending
unions and employer may challenge a vote before it is
deposited in the ballot box only on any of the following
grounds:
1. That there is no employer-employee relationship
between the voter and the company;
2. That the voter is not a member of the appropriate
bargaining unit which the petitioner seeks to
represent.
When a vote is properly challenged, the Election
Officer shall place the ballot in an envelope which shall be
sealed in the presence of the voter and the representatives of
the contending unions and employer.
The envelopes shall be opened and the question of
eligibility shall be passed upon only if the number of
segregated voters will materially alter the results of the
election.
Perfection of election protest
Any part-in-interest may file a protest with the Med-
Arbiter within 5 days after the close of the election
proceedings, based on the conduct or mechanics of the
election. Such protests shall be recorded in the minutes of the
election proceedings. Protests not so raised shall be deemed
waived.
Conduct of election and canvassing of votes
The votes shall be counted and tabulated by the
Election Officer in the presence of the contending unions.
Upon completion of the canvass, the Election officer
shall give each representative a copy of the minutes of the
election proceedings and results of the election.
The ballots and the tally sheets shall be sealed in an
envelope and signed by the Election officer and the
 University of Santo Tomas
Faculty of Civil Law
representatives of the contending unions and transmitted to the
Med-Arbiter, together with the minutes and results of the
election within 24 hours from the completion of the canvass.
Certification of Collective Bargaining Agent
The union which obtained a majority of the valid
votes cast shall be certified as the sole and exclusive
bargaining agent of all the employees in the appropriate
bargaining unit within 5 days from the day of the election,
provided no protest is recorded in the minutes of the election.
Failure of certification election; One-year bar rule does
not apply
Where the number of votes cast in a certification
election or consent election is less than the majority of the
number of eligible voters and there are no material challenged
votes, the Election officer shall declare a failure of election in
the minutes of the election proceedings.
A failure of election shall not bar the filing of a
motion for the immediate holding of another certification or
consent election within 6 months from the date of declaration
of failure of election.
Proclamation and certification of election result
Within 24 hours from final canvass of votes, there
being a valid election, the Election Officer shall transmit the
records of the case to the Med-Arbiter who shall, within the
same period from receipt of the minutes and results of
election, issue an order proclaiming the results of the election
and certifying the union which obtained a majority of the valid
votes vast as the sole and exclusive bargaining agent in the
subject bargaining unit, under any of the following conditions:
1. No protest was filed or, even if one was filed, the
same was not perfected within the 5-day period for
perfection for the protest;
2. No challenge or eligibility issue was raised or even if
one was raised, the resolution of the same will not
materially change the results of the election.
Run-off Election (Second Election)
When an election which provides for 3 or more
choices results in no choice receiving a majority of the valid
votes cast, and no objections or challenges have been
presented which, if sustained, can materially change the
results, the election officer shall motu proprio conduct a run-
off election within 10 calendar days from the close of the
election proceedings between the labor unions receiving the 2
highest number of votes; provided, that the total number of
votes for all contending unions is at least 50% of the number
of votes cast.
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“No-union” – shall not be a choice in a run-off election
because it is only conducted between the labor unions
receiving the 2 highest numbers of votes.
Effect of a no-union winning the election
The right of workers to be represented by a non-
union should be respected for it is an integral part of their
freedom of association, albeit in its negative aspect.
No certification election can be conducted within 1
year from the date of issuance of a final certification election
result. Thus, there will be no collective bargaining agent
within the company for a period of time.
Modes of determining representation status
1. Voluntary recognition
2. Certification election
3. Consent election
4. Run-off election
Voluntary Recognition
In unorganized establishments with only one
legitimate labor organization, the employer may voluntarily
recognize the representation status of such a union.
Within 30 days from such recognition, the employer
and union shall submit a notice of voluntary recognition with
the RO which issued the recognized labor union’s certificate
of registration/creation of a chartered local.
Action on notice on Voluntary Recognition
1. Where the notice is sufficient in form, number and
substance – the RO, through the Labor Relations
Division shall, within 10 days from receipt of the
notice, record the fact of voluntary recognition in its
roster of legitimate labor unions and notify the labor
union concerned.
2. Where the notice is not sufficient in form, number
and substance – the RO shall, within the same period,
notify the labor union of its findings and advise it to
comply with the necessary requirements.
3. Where neither the employer nor the union failed to
complete the requirements within 30 days from
receipt of the advisory – the RO shall return the
notice together with accompanying documents
without prejudice to its re-submission.
Legal effect of recording the fact of voluntary recognition;
One-year bar rule applies
From the time of recording, the recognized labor
union shall enjoy the rights, privileges, and obligations of an
 University of Santo Tomas Labor Law Review
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existing bargaining agent of all the employees in the All certification cases shall be decided within twenty
bargaining unit. (20) working days.

Entry of voluntary recognition shall bar the filing of a The Bureau shall conduct a certification election within
twenty (20) days in accordance with the rules and regulations
petition for certification election by any labor organization for
prescribed by the Secretary of Labor.
a period of 1 year from the date of entry of voluntary
recognition. Petition for certification election filed by an employer
Consent Election GR: A certification election is the sole concern of the workers
and the employer is regarded as nothing more than a bystander
It is the election voluntarily agreed upon by the with no right to interfere at all in the election.
parties, with our without the intervention of the DOLE, to XPN: Where the employer has to file a petition for
determine the issue of majority representation of all the certification election because it is requested to bargain
workers in the appropriate collective bargaining unit. collectively.
Art. 269. Petitions in unorganized establishments. – In any Period for filing petition for certification election
establishment where there is no certified bargaining agent, a
certification election shall automatically be conducted by the
Med-Arbiter upon the filing of a petition by a legitimate labor GR: An employer who is requested to bargain collectively
organization, including a national union or federation which has may file a petition for certification election at any time.
already issued a charter certificate to its local/chapter
participating in the certification election or a local/chapter which XPN: Upon clear showing that one of these instances exists:
has been issued a charter certificate by the national union or
federation. In cases where the petition was filed by national union 1. The petition is filed within 1 year from the date of
or federation, it shall not be required to disclose the names of the issuance of a final certification election result; or
local chapter’s officers and members 2. When a bargaining deadlock had been submitted to
conciliation or arbitration or had become the subject
Automatic certification election rule; 25% support
of a valid notice of strike or lockout.
requirement not necessary in unorganized establishment
Employer’s request for certification election proper vis-à-
In a petition filed by any legitimate labor
vis voluntary recognition
organization in an unorganized establishment, the Med-Arbiter
is required to automatically order the conduct of certification
It is the union that files a petition for a certification
election upon filing of a certification election by a legitimate
election if there is no certified bargaining agent for the
labor organization even without the 25% support of the
workers in the establishment.
employees in the bargaining unit which is not required in an
unorganized establishment.
The union’s request for voluntary recognition as the
bargaining representative of the employees was in effect a
Mandatory certification election
request to bargain collectively, or the first step in that
direction.
A certification election shall be conducted in any of
Voluntary recognition by the employer of the
the following instances:
representation status of a union in unorganized establishments
is now allowed provided that within 30 days from recognition,
1. In organized establishments, a petition for
the employer representative and union president shall submit
certification election can be filed, questioning the
to the RO of the DOLE a joint statement attesting to the fact of
majority status of the incumbent bargaining agent;
voluntary recognition.
2. In unorganized establishments, a petition for
certification election can be filed and it shall
Employer may oppose a petition for certification election
automatically be conducted by the Med-Arbiter;
3. When requested to bargain collectively, an employer
The non-submission of books of accounts certified by
may file a petition for certification election.
and attested by the appropriate officer is a valid ground which
Art. 270. When an employer may file petition. – When requested the employer can invoke to oppose a petition for certification
to bargain collectively, an employer may petition the Bureau for election filed by the local or chapter concerned.
an election. If there is no existing certified collective bargaining
agreement in the unit, the Bureau shall, after hearing, order a
certification election.
 University of Santo Tomas
Faculty of Civil Law
An appeal of a Med-Arbiter’s Order to hold certification
in unorganized establishment is not applicable
An appeal of Med-Arbiter’s Order to hold a
certification election will not stay the holding thereof where
the employer company is an unorganized establishment, and
where no union has yet been duly recognized or certified as
bargaining representative.
Art. 271. Employer as Bystander. – In all cases, whether the
petition for certification election is filed by an employer or a
legitimate labor organization, the employer shall not be
considered a party thereto with a concomitant right to oppose a
petition for certification election. The employer’s participation is
such proceedings shall be limited to: (1) being notified or
informed of petitions of such nature; and (2) submitting the list of
employees during the pre-election conference should the Med-
Arbiter act favorably on the petition.
Employer as bystander
Whether the petition for certification election is filed
by an employer or a legitimate labor organization, the
employer shall not be considered a party thereto with a
concomitant right to oppose a petition for certification
election.
The participation of the employer is limited to the
following:
1. To be notified or informed of the filing of the petition
for certification election; and
2. To submit the list of employees of employees during
the pre-election conference, in case the Med-Arbiter
acts favorably on the petition by giving due course to
it.
As an innocent bystander, the employer may pray for
the dismissal of a petition for certification election on the basis
of lack of mutuality of interests of the members of the union
as well as lack of employer-employee relationship.
Art. 272. Appeal from certification election orders. – Any party
to an election may appeal the order or results of the election as
determined by the Med-Arbiter directly to the Secretary of
Labor and Employment on the ground that the rules and
regulations or parts thereof established by the Secretary of Labor
and Employment for the conduct of the election have been
violated. Such appeal shall be decided within fifteen (15) calendar
days.
Appeal to the SOLE
The decision of the Med-Arbiter in a certification
election case or on the results thereof may be appealed directly
to the SOLE within 10 days from receipt by the parties of a
copy thereof.
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Appeal in unorganized establishment
The order granting the conduct of a certification
election in an unorganized establishment is not subject to
appeal. Any issue arising from its conduct or from its results is
proper subject of a protest. Appeal may only be made in case
of denial of the petition within 10 days from receipt of the
decision of the denial.
Appeal in organized establishment
The order granting the conduct of a certification
election in an organized establishment and the decision
dismissing or denying the petition may be appealed to the
Office of the SOLE within 10 days from receipt thereof.
Who may appeal
Any aggrieved party (not the employer) may appeal
the order of the Med-Arbiter to the SOLE on the ground that
the rules and regulations or parts thereof established by the
SOLE for the conduct of the certification election have been
violated.
Grounds for appeal
1. Violations of rules on challenging votes, such as:
a. That there is no employer-employee
relationship between the voter and the
company;
b. That the voter is not a member of the
appropriate bargaining unit which the
petitioner seeks to represent.
2. Serious errors in finding of fact or law in the
resolution of the protest
Where to file appeal
The Memorandum of Appeal shall be filed in the RO
where the petition originated.
Finality of the order or decision
Where no appeal is filed within the 10-day period,
the Med-Arbiter is required to enter the finality of the order or
decision in the records of the case and cause the transmittal of
the records thereof to the RD.
Period to file a reply to the appeal
A reply to the appeal may be filed by any party to the
petition within 10 days from receipt of the memorandum of
appeal and shall be filed directly with the Office of the SOLE.
 University of Santo Tomas
Faculty of Civil Law
Decision of the SOLE, final and executory
The SOLE has 15 days from receipt of the entire
records of the petition within which to decide the appeal. The
filing of the Memorandum of Appeal from the order or
decision of the Med-Arbiter has the effect of stating the
holding of any certification election.
Remedy of aggrieved party over decision of the SOLE
His remedy is to file a motion for reconsideration as a
precondition for any further or subsequent remedy, and then
file a special civil action for certiorari under Rule 65.
Title VII-A
GRIEVANCE MACHINERY AND VOLUNTARY
ARBITRATION
Art. 273. Grievance Machinery and Voluntary Arbitration. – The
parties to a Collective Bargaining Agreement shall include
therein provisions that will ensure the mutual observance of its
terms and conditions. They shall establish a machinery for the
adjustment and resolution of grievances arising from the
interpretation or implementation of their Collective Bargaining
Agreement and those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievance machinery
which are not settled within seven (7) calendar days from the
date of its submission shall automatically be referred to
voluntary arbitration prescribed in the Collective Bargaining
Agreement.
For this purpose, parties to a Collective Bargaining
Agreement shall name and designate in advance a Voluntary
Arbitrator or panel of Voluntary Arbitrators, or include in the
agreement a procedure for the selection of such Voluntary
Arbitrator or panel of Voluntary Arbitrators, preferably from
the listing of qualified Voluntary Arbitrators duly accredited by
the Board. In case the parties fail to select a Voluntary Arbitrator
or panel of Voluntary Arbitrators, the Board shall designate the
Voluntary Arbitrator or panel of Voluntary Arbitrators, as may
be necessary, pursuant to the selection procedure agreed upon in
the Collective Bargaining Agreement, which shall act with the
same force and effect as if the Arbitrator or panel of Arbitrators
has been selected by the parties as described above.
Establishment of a grievance machinery
A grievance committee shall be created within 10
days from signing of the CBA.
The committee shall be composed of at least 2
representatives from each members if the bargaining unit and
the employer, unless otherwise agreed upon by the parties.
The representatives from among the members of the
bargaining unit shall be designated by the union.
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Concept of grievance machinery
Grievance – any dissatisfaction, complaint or
misunderstanding of an employee, arising from the
interpretation or implementation of the CBA and those arising
from interpretation or enforcement of personnel policies.
Grievance machinery clause in the CBA – for the purpose of
settling labor –management disputes arising from its
interpretation or implementation or interpretation or
enforcement of company personnel policies.
NOTE: Where there is no collective agreement, grievance
shall be subject to negotiation, conciliation or arbitration.
Grievance procedure
Grievance procedure – system of grievance settlement at the
plant level as provided in the CBA. It usually consists of
successive steps starting at the level of complainant, and his
immediate supervisor and ending, when necessary, at the level
of the top union and company official.
Requirements of a good grievance machinery
1. Definite subjects for settlement
2. Proper person or body to whom the grievance must
be brought
3. Provisions for a mode of appeal
4. Finality of settlement or adjustment
5. Provisions for statute of limitations
Grievance machinery procedure
1. Complainant-worker settles dispute with his
immediate supervisor – under this stage, the worker
shall discuss and settle his problem with his foreman
with or without the authorized union representative
being present, as the worker may elect.
2. Written appeal – a grievance which is not settled
within 2 days as a result if the discussion must be
appealed within 3 days in writing and signed by the
worker concerned. A grievance not appealed shall be
considered withdrawn or decided to the satisfaction
of the complainant.
– the written appeal shall be filed with the
Assistant Superintendent. The latter shall discuss
the grievance with the worker and the union shop
steward. Decision must be rendered not later
than 3 days after decision.
3. Appeal from decision of Assistant Superintendent –
grievance shall be taken up with the Superintendent
and/or manager by the Union Grievance Board; the
duration is 1 week.
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4. Reference to voluntary arbitration – appeal can be
made or the grievance should be elevated to a
voluntary arbitrator or panel of arbitrators, if the
machinery arbitration has been made at the appellate
stage.
5. Appeal from voluntary arbitration awards or
decisions – such award or decision is final,
inappealable and executory after 10 calendar days
from receipt of the copy of the award or decision by
the parties.
NOTE: The decision or award of the voluntary
arbitrator is appealable to the CA. 88
Procedure in handling grievance
In the absence of a specific provision in the CBA or
existing company practice prescribing for the procedures in
handling grievance, the following shall apply:
1. An employee shall present this grievance or
complaint orally or in writing to the shop steward.
Upon receipt thereof, the shop steward shall verify
the facts and determine whether or not the grievance
is valid.
2. If the grievance is valid, the shop steward shall
immediately bring the complaint to the employee’s
immediate supervisor. The shop steward, the
employee and his immediate supervisor shall exert
efforts to settle the grievance at their level.
3. If no settlement is reached, the grievance shall be
referred to the grievance committee which shall have
10 days to decide the case.
2. Where the CBA does not so designate, the NCMB
shall call the parties and appoint a VA or panel of
VA, who shall thereafter commence arbitration
proceedings.
3. In case the parties fail to select a VA or panel of VA,
the regional branch of the Board shall designate the
VA or panel of VA, as may be necessary, which shall
have the same force and effect as if the parties have
selected the arbitrator.
Conciliation or mediation
Conciliation or mediation – special from of industrial
diplomacy whereby a third person or outsider tries to narrow
the issues of dispute between the union and the management
and propose solutions acceptable to both sides.
2 types of mediation applied in labor relation disputes:
1. Preventive mediation – the mediator may enter the
case even before the bargaining starts, working with
the parties to identify causes of friction or to attempt
to improve attitudes, practices or other factors which
might contribute to industrial peace.
– Early intervention in collective bargaining.
2. Grievance mediation – mediation services give
attention to grievance settlement and by aiding in the
settlement of such grievances, prevent problems
presented by such grievances from bursting into a
economic warfare.
Voluntary arbitration and compulsory arbitration

Where the issue involves or arises from the interpretation Voluntary arbitration Compulsory arbitration
or implementation of a provision in a CBA, or from any order, Where the parties themselves Where the parties to a dispute
memorandum, circular, or assignment issued by the agree to submit their issue/s are compelled by the
appropriate authority in the establishment, and such issue to a third person or board and government to forego their
cannot be resolved at the level of the shop steward or the accept the arbitration award right to strike and are
supervisor, the same may be referred immediately to the as final and binding. compelled to accept the
grievance machinery. resolution of their dispute
Process by which a dispute through arbitration of a third
Submission to the Voluntary Arbitrator (VA) that cannot be settled party.
voluntarily through the
Where grievance remains unresolved, either party grievance procedure is
may serve notice upon the other of its decision to submit the referred to an impartial
issue to VA. The notice shall state the issue/s to be arbitrated, person for resolution.
copy thereof furnished the board or the VA or panel of VA Government coercive
named or designated in the CBA. intervention
Purpose: A scheme to avert
If the party upon whom the notice is served fails or work stoppages in vital
refuses to respond favorably within 7 days from receipt industries upon which the
thereof: public is vitally dependent.
1. The VA or panel of VA designated in the CBA shall
commence voluntary arbitration proceedings. Designation of voluntary arbitrators

88
1. By the parties – parties to a CBA shall name and
Luzon Development Bank. Asso. Of Luzon Dev. Bank Employees, G.R.
No. 120319 (1995).
designate in advance, a VA or panel of VA, or
 University of Santo Tomas
Faculty of Civil Law
include in the CBA, a procedure for the selection of
such VA or panel of VA, preferably from the listing
of qualified VA duly accredited by the NCMB.
2. By NCMB – in case the parties fail to select a VA or
panel of VA, the NCMB shall designate the same,
pursuant to the selection procedure agreed upon in
the CBA.
Compliance with grievance machinery/voluntary
proceedings necessary prior to strike
For failure to comply with the grievance machinery
and voluntary proceedings in the CBA, the notice of strike
should have been dismissed, for being an illegal strike.
CBA provisions subject of grievance machinery
1. Economic provisions – those that have direct and
measurable monetary cost consequence.
2. Non-economic provisions – those whose monetary
cost cannot be directly computed.
Rights dispute – any violation of the said provisions of the
CBA or any law, rules and regulations as well as customary
practices, may constitute as grievance.
Initiation of grievance by an aggrieved employee
1. Grievances are brought by the aggrieved employees
with the union representative called the shop steward
or grievance officer to foreman either orally or in
writing.
2. If no settlement is reached at the first level, the
aggrieved employee or the grievance officer may
bring the grievance through the successive steps in
the grievances procedure provided in the CBA.
Grievance in non-unionized establishment
Any dispute or controversy respecting the terms and
conditions of employment which an employee or group of
employees may present to the employer can be considered a
grievance, even without a bargaining union or CBA.
The original and exclusive jurisdiction of VA to
include the questions arising from the interpretation and
enforcement of company personnel policies has the effect of
widening the meaning and interpretation of a grievance to
include a situation where there is no collective bargaining
agent and no CBA.
Stipulation exempting certain issues from the grievance
machinery, not allowed
The parties to a CBA may not stipulate that certain
issues or matters arising thereunder be exempt from the
coverage of the grievance procedure because the law confers
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original and exclusive jurisdiction to VA and the parties
cannot diminish their jurisdiction by stipulation.
However, issues or matters between the employer
and the employees not involving the interpretation or
implementation of the CBA or company personnel policies
may be processed and settled through the grievance machinery
procedure or voluntary arbitration by agreement of the parties
(ie. ULP and collective bargaining deadlocks).
Unsettled grievances referred to voluntary arbitration
All grievances submitted to the grievance machinery
which are not settled within 7 calendar days from the date of
their submission for resolution should automatically be
referred to voluntary arbitration provided in the CBA.
Non-attendance in grievance hearings; 2 schools of thought
1. First school – requires attendance in grievance
hearings as part of the parties’ duty to bargain
collectively. Any party guilty of non-attendance may
be charged for an ULP. The other party may file a
request for preventive mediation or a notice of strike
with the NCMB, or file an ULP case with the RAB of
the NLRC but NOT simultaneously.
2. Second school – failure to attend grievance hearings
implies that the non-attending party is convinced that
the grievance machinery will not be an effective tool
in adjusting or resolving the grievance; thus, he is
deemed to have dispensed with the preliminary step
to voluntary arbitration. The parties may then be
deemed to have submitted the grievance directly to
voluntary arbitration.
Grievance elevated directly to voluntary arbitration
without passing though the grievance machinery
A grievance may be brought directly to voluntary
arbitration without passing through grievance machinery:
1. When the latter has been proven to be ineffective in
the past; or
2. When the parties inadvertently failed to include a
grievance machinery in their CBA.
Types of labor disputes submitted to voluntary arbitration
1. Rights disputes – contemplate the existence of a
CBA; they include unresolved grievances arising
from
a. CBA interpretation or implementation,
which are not gross in character; and
b. Personnel policy enforcement and
interpretation
2. Interest disputes – disputes over formation of a CBA
or efforts to secure the same; they cover all other
disputes including ULP and bargaining deadlocks.
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NLRC’s Jurisdiction as part of compulsory arbitration 3. Unresolved grievances arising from the interpretation
and implementation of the productivity incentive
1. NLRC’s appellate jurisdiction – cannot be programs – if remain unresolved in the Labor
considered as part of the compulsory arbitration Management Committee within 20 calendar days
process, because when a LA renders his decision, from the time of submission.
compulsory arbitration is deemed terminated. The act
of the NLRC is merely confined to the review of the NOTE: The NLRC, its regional branches and RD of the
LA decision to determine any possible error in his DOLE shall not entertain disputes, grievances or matters under
findings of fact or law. the exclusive and original jurisdiction of the VA or panel of
2. NLRC’s original jurisdiction – NLRC has the VA and shall immediately dispose and refer the same to the
authority to conduct compulsory arbitration in certain appropriate grievance machinery or voluntary arbitration.
specified cases; however, the parties may still choose
to submit their dispute to voluntary arbitration before NOTE: VA’s original and exclusive power to hear and
or at any stage of the compulsory arbitration process decided “unresolved grievances” is appellate in nature.
before the NLRC.
Initiation of arbitration
NOTE: Barangay conciliation does not apply to labor cases,
as it would only duplicate conciliation proceedings. 1. Submission agreement or stipulation;
2. A demand or notice to arbitrate invoking the
Art. 274. Jurisdiction of Voluntary Arbitrators and Panel of conclusive arbitration clause in the CBA; or
Voluntary Arbitrators. – The Voluntary Arbitrator or panel of 3. An appointment or designation of a VA from the
Voluntary Arbitrators shall have original and exclusive NCMB
jurisdiction to hear and decide all unresolved grievances arising
from the interpretation or implementation of the Collective Submission agreement vs. Notice to arbitrate
Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel policies referred to in the
immediately preceding article. Accordingly, violations of a
Submission agreement Notice to arbitrate
Collective Bargaining Agreement, except those which are gross in A written agreement by the A formal demand made by
character, shall no longer be treated as unfair labor practice and parties submitting their case one party to the other for the
shall be resolved as grievances under the Collective Bargaining for arbitration, containing a arbitration of a particular
Agreement. For purposes of this article, gross violations of statement of the issues, the dispute in the event of refusal
Collective Bargaining Agreement shall mean flagrant and/or name of their chosen VA and by one party in a CBA to
malicious refusal to comply with the economic provisions of such a stipulation and an submit the same to
agreement. undertaking to abide by and arbitration.
comply with the resolution
The Commission, its Regional Offices and the Regional that may be rendered therein.
Directors of the Department of Labor and Employment shall not More appropriate in interest More applicable to rights
entertain disputes, grievances or matters under the exclusive and
disputes. disputes.
original jurisdiction of the Voluntary Arbitrator or panel of
Voluntary Arbitrators and shall immediately dispose and refer
the same to the Grievance Machinery or Voluntary Arbitration
provided in the Collective Bargaining Agreement. NOTE: The VA has wide discretion to decided relevant
collateral issues in the submission agreement.
Original and exclusive jurisdiction of VA
SOLE’s administrative intervention
1. All grievances, which remain unresolved after
exhaustion of the grievance procedure, arising from: Either or both the employer and the certified
a. Implementation and interpretation of the collective bargaining agent may voluntarily bring to the Office
CBA (EXCEPT violations of economic of SOLE, through a Request for Intervention, any potential or
provisions which are gross in character, as ongoing dispute that may lead to strike or lockout or to
they are ULP in nature, thus, under the massive labor unrest and is not the subject of any complaint or
jurisdiction of the LA); notice of strike or lockout at the time the Request is made.
b. Interpretation and enforcement of company
personnel policies Pre-requisites for SOLE’s administrative intervention
2. Wage distortion issues arising from the application of
any wage orders in organized establishments – shall 1. They voluntarily submit their potential or ongoing
be decided within 10 calendar days from the time it dispute to intervention by the Office of the SOLE;
was referred to the VA.
 University of Santo Tomas
Faculty of Civil Law
2. There is no pending notice of strike or lockout or any
related complaint in relation to their potential or
ongoing dispute;
3. They shall refrain from any strike or lockout, or any
form of work stoppage, or from filing any related
complaint while the SOLE’s intervention is in effect;
and
4. They shall abide by the agreement reached, whose
terms may be enforced through the appropriate writs
issued by the SOLE.
DOLE Regional Directors and Assistant Regional
Directors as Ex-Officio Voluntary Arbitrators (EVAs);
Jurisdiction
1. All grievances, which remain unresolved after
exhaustion of the grievance procedure, arising from:
a. Implementation and interpretation of the
CBA (EXCEPT violations of economic
provisions which are gross in character, as
they are ULP in nature, thus, under the
jurisdiction of the LA);
b. Interpretation and enforcement of company
personnel policies
2. Voluntary arbitration cases, as referred by the SOLE,
resulting from the SOLE’s intervention
3. Where a grievance remains unresolved despite
bipartite efforts, either or both parties may
voluntarily bring the grievance to an EVA who has
jurisdiction over the region where the parties operate
work, through a written request.
Art. 275. Jurisdiction over other labor disputes. – The Voluntary
Arbitrator or panel of Voluntary Arbitrators, upon agreement of
the parties, shall also hear and decide all other labor disputes
including unfair labor practices and bargaining deadlocks.
GR: Jurisdiction cannot be subject to agreement of the parties.
XPN: By agreement of the parties, the VA or panel of VA can
hear and decide all other disputes including ULP and
bargaining deadlocks.
Art. 276. Procedures. – The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have the power to hold hearings,
receive evidences and take whatever action is necessary to resolve
the issue or issues subject of the dispute, including efforts to
effect a voluntary settlement between parties.
All parties to the dispute shall be entitled to attend the
arbitration proceedings. The attendance of any third party or the
exclusion of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or panel of Voluntary
Arbitrators. Hearing may be adjourned for cause or upon
agreement by the parties.
Unless the parties agree otherwise, it shall be
mandatory for the Voluntary Arbitrator or panel of Voluntary
Arbitrators to render an award or decision within twenty (20)
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calendar days from the date of submission of the dispute to
voluntary arbitration.
The award or decision of the Voluntary Arbitrator or
panel of Voluntary Arbitrators shall contain the facts and the law
on which it is based. It shall be final and executory after ten (10)
calendar days from receipt of the copy of the award or decision
by the parties.
Upon motion of any interested party, the Voluntary
Arbitrator or panel of Voluntary Arbitrators or the Labor
Arbiter in the region where the movant resides, in case of the
absence or incapacity of the Voluntary Arbitrator or panel of
Voluntary Arbitrators, for any reason, may issue a writ of
execution requiring either the sheriff of the Commission or
regular courts or any public official whom the parties may
designate in the submission agreement to execute the final
decision, order or award.
Powers of VA
1. Adjudicatory Power – power to hold hearings,
receive evidence and take whatever action is
necessary to resolve the issues subject of the dispute.
2. Compulsory Power – power to compel the attendance
of witnesses in a hearing called for the purpose;
issuance of subpoena ad testificandum or duces
tecum.
3. Power to conciliate and mediate – VA should exert
his best efforts to conciliate or mediate in order to aid
the parties in reaching a voluntary settlement of the
dispute.
4. Power to encourage the parties to enter into a
stipulation of facts – in case the parties failed to reach
a voluntary settlement of the dispute, to facilitate the
speedy disposition of the case.
5. Power to issue writ of execution – to enforce its final
decision.
Nature of proceedings before a VA
They are non-litigious or non-adversarial in nature.
Effect of non-appearance of parties; position paper
proceedings
For failure of either of the parties to attend during the
2 consecutive conferences despite due notice, the VA shall
terminate the conference and issue an order requiring the
parties to submit their respective position papers within 10
calendar days from receipt of the said order; otherwise, the
case should be deemed submitted for decision based on the
available records on file.
The position papers should cover only the issues and
causes of action raised in the Submission Agreement, Notice
to Arbitrate or appointment of VA, as the case may be, and the
stipulation of facts as simplified and clarified during the initial
conference.
 University of Santo Tomas
Faculty of Civil Law
Arbitration Proceedings
1. Arbitration hearing and observance of due process;
2. VA shall render an arbitration decision within 20
calendar days from the date of submission of the case
for resolution, unless the parties mutually agree
otherwise
XPN: National interest cases should be resolved
within 30 calendar days from the date of submission
for resolution.
3. Decision or award of the VA, which may take form
of a dismissal of claim or grant of a specific remedy,
has the same legal effect as a judgment of the court
(conclusive and all matters in the award are res
judicata);
NOTE: The final award or decision, not subject to
reconsideration of the VA, cannot be modified or
amended motu proprio or by motion once it has been
made (EXCEPT modification of typographical errors
or harmless errors that are patently obvious on their
face).
4. Appealable to CA under Rule 43 (Petition for
Review) within 15 days;
GR: Petition for Certiorari under Rule 65 is not a
proper remedy.
XPN: It may be given due course despite the
availability of the appeal:
a. When public welfare and public policy
dictate;
b. When broader interest of justice so require;
c. When the writs issued are null and void;
d. When the questioned order amounts to an
oppressive exercise of judicial authority.
5. Enforcement of decision – for non-compliance with
the decision by either or both parties, a motion to
enforce/execute the award may be filed with the:
a. VA who may issue a writ of execution; or
b. In the absence of the VA or, in the case of
his incapacity, it shall be filed with the LA
in the region having jurisdiction over the
workplace.
Art. 277. Cost of Voluntary Arbitration and Voluntary
Arbitrator’s fee. – The parties to a Collective Bargaining
Agreement shall provide therein a proportionate sharing scheme
on the cost of voluntary arbitration including the Voluntary
Arbitrator’s fee. The fixing of fee of Voluntary Arbitrators,
whether shouldered wholly by the parties or subsidized by the
Special Voluntary Arbitration Fund, shall take into account the
following factors:
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(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the Voluntary Arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
TITLE VIII
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMNT
IN TRADE UNION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOUTS
Art. 278. Strikes, picketing and lockouts. – (a) It is the policy of
the State to encourage free trade unionism and free collective
bargaining.
(b) Workers shall have the right to engage in concerted
activities for purposes of collective bargaining or for their mutual
benefit and protection. The right of legitimate labor
organizations to strike and picket and of employers to lockout,
consistent with the national interest, shall continue to be
recognized and respected. However, no labor union may strike
and no employer may declare a lockout on grounds involving
inter-union and intra-union disputes.
(c) In case of bargaining deadlocks, the duly certified or
recognized bargaining agent may file a notice of strike or the
employer may file a notice of lockout with the Ministry at least 30
day before the intended date thereof. In cases of unfair labor
practice, the period of notice shall be 15 days and in the absence
of a duly certified or recognized bargaining agent, the notice of
strike may be filed by any legitimate labor organization in behalf
of its members. However, in case of dismissal from employment
of union officers duly elected in accordance with the union
constitution and by-laws, which may constitute union busting,
where the existence of the union is threatened, the 15-day
cooling-off period shall not apply and the union may take action
immediately.
(d) The notice must be in accordance with such
implementing rules and regulations as the Minister of Labor and
Employment may promulgate.
(e) During the cooling-off period, it shall be the duty of
the Ministry to exert all efforts at mediation and conciliation to
effect a voluntary settlement. Should the dispute remain
unsettled until the lapse of the requisite number of days from the
mandatory filing of the notice, the labor union may strike or the
employer may declare a lockout.
(f) A decision to declare a strike must be approved by a
majority of the total union membership in the bargaining unit
concerned, obtained by secret ballot in meetings or referenda
called for that purpose. A decision to declare a lockout must be
approved by a majority of the board of directors of the
corporation or association or of the partners in a partnership,
obtained by secret ballot in a meeting called for that purpose.
 University of Santo Tomas
Faculty of Civil Law
The decision shall be valid for the duration of the dispute based
on substantially the same grounds considered when the strike or
lockout vote was taken. The Ministry may, at its own initiative or
upon the request of any affected party, supervise the conduct of
the secret balloting. In every case, the union or the employer shall
furnish the Ministry the results of the voting at least seven days
before the intended strike or lockout, subject to the cooling-off
period herein provided.
(g) When, in his opinion, there exists a labor dispute
causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor and
Employment may assume jurisdiction over the dispute and
decide it or certify the same to the Commission for compulsory
arbitration. Such assumption or certification shall have the effect
of automatically enjoining the intended or impending strike or
lockout as specified in the assumption or certification order. If
one has already taken place at the time of assumption or
certification, all striking or locked out employees shall
immediately return-to-work and the employer shall immediately
resume operations and readmit all workers under the same terms
and conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the Commission may
seek the assistance of law enforcement agencies to ensure
compliance with this provision as well as with such orders as he
may issue to enforce the same.
In line with the national concern for and the highest
respect accorded to the right of patients to life and health, strikes
and lockouts in hospitals, clinics and similar medical institutions
shall, to every extent possible, be avoided, and all serious efforts,
not only by labor and management but government as well, be
exhausted to substantially minimize, if not prevent, their adverse
effects on such life and health, through the exercise, however
legitimate, by labor of its right to strike and by management to
lockout. In labor disputes adversely affecting the continued
operation of such hospitals, clinics or medical institutions, it shall
be the duty of the striking union or locking-out employer to
provide and maintain an effective skeletal workforce of medical
and other health personnel, whose movement and services shall
be unhampered and unrestricted, as are necessary to insure the
proper and adequate protection of the life and health of its
patients, most especially emergency cases, for the duration of the
strike or lockout. In such cases, therefore, the Secretary of Labor
and Employment may immediately assume, within twenty four
(24) hours from knowledge of the occurrence of such a strike or
lockout, jurisdiction over the same or certify it to the
Commission for compulsory arbitration. For this purpose, the
contending parties are strictly enjoined to comply with such
orders, prohibitions and/or injunctions as are issued by the
Secretary of Labor and Employment or the Commission, under
pain of immediate disciplinary action, including dismissal or loss
of employment status or payment by the locking-out employer of
backwages, damages and other affirmative relief, even criminal
prosecution against either or both of them.
The foregoing notwithstanding, the President of the
Philippines shall not be precluded from determining the
industries that, in his opinion, are indispensable to the national
interest, and from intervening at any time and assuming
jurisdiction over any such labor dispute in order to settle or
terminate the same.
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(h) Before or at any stage of the compulsory arbitration
process, the parties may opt to submit their dispute to voluntary
arbitration.
(i) The Secretary of Labor and Employment, the
Commission or the voluntary arbitrator shall decide or resolve
the dispute, as the case may be. The decision of the President, the
Secretary of Labor and Employment, the Commission or the
voluntary arbitrator shall be final and executory ten (10)
calendar days after receipt thereof by the parties.
Concerted Activity
It is a joint undertaking of workers designed to secure
better terms and conditions of employment through the
machinery of collective bargaining and negotiations for their
mutual benefit and protection.
Strike
It is any temporary stoppage of work by the
concerted action of employees as a result of any industrial or
labor dispute which include group demonstrations or any
other group or concerted action, if directed against the
employer, attempts to damage, destroy or sabotage plane
equipment and facilities, and similar activities.
It is one of the militant, effective, and legitimate
weapons in the arsenal of the employees.
Purpose of strike
The purpose of strike is to put economic pressure
upon the employer so that he will accede to the demands of
the union.
Kinds of strikes
1. According to basis of initiation
a. Authorized – strikes called upon a union’s
consent.
b. Unauthorized (wildcat) – strikes called
without the majority approval of the union
members in the bargaining unit; they take
the form of rebellion by the rank-and-file
members against the union leadership or part
of the membership against the total
membership.
2. According to basis of scope
a. General (extended sympathetic strike) –
most extensive type covering a wide range
of industries or a large part of the country, in
order to wrest power and change the
economic system; (ie. Welga ng Bayan).
b. Particular – only limited in scope as it
covers only a particular plant or a single
occupation or trade; usually carried by a
single-union group.
University of Santo Tomas
Faculty of Civil Law
c. Quickie – characterized by an impromptu,
brief work stoppage in the plant but
stoppage is for a period of few minutes of
hours.
d. Slowdown (strike on installment plan) –
activity by which workers, without a
complete stoppage of work, retard
production or their performance of duties
and functions to compel management to
grant their demands; it is an ILLEGAL
STRIKE.
e. Sitdown – the workers remain in the plant
but refuse to work and their machines and
tools remain idle; the stoppage period is
much longer than quickie strike.
f. Ordinary – common type of strike that
involves a withdrawal on the part of the
workers from their place of employment; it
is carried out to attain the objectives
intimately related to the strikers themselves.
g. Sympathetic – carried on by workers in
sympathy to another group of workers who
are on strike; the workers have no direct
grievances against their employer; it is an
ILLEGAL STRIKE.
h. Political – resembles that of general strike;
to exert pressure upon government.
i. Legal – if the purpose/s are legal and the
means used in the course of the strike are
legal.
NOTE: Strike may be legal at the start,
however, in the course of the strike, strikers
may do acts of violence which may make
the strike illegal.
j. Illegal – takes place when there is a law
prohibiting it.
k. ULP – strike is staged as a result of the
employer’s or union’s ULP; arises out of
violation of the right of workers to self-
organization.
l. Economic – strike staged to force wage or
other concessions from the employer which
he is not required by law to grant; one
arising from deadlock or standstill in
collective bargaining process.
NOTE: A no-strike clause prohibition in a
CBA is applicable only to economic strikes,
not ULP strikes.
m. Temporary (concise) stoppage of work –
temporary stoppage of work by the union
during the working period; it is an
ILLEGAL STRIKE.
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n. Union recognition strike – designed to
compel the employer to recognize one’s
union as the employees’ bargaining agent to
work out a CBA despite the union’s
doubtful majority status to merit voluntary
recognition and lack of formal certification
as the exclusive representative in the
bargaining unit.
o. Lightning strike – sudden stoppage of work
by the concerted action of the workers
without compliance with the requirements
for declaring a lawful strike; it is an
ILLEGAL STRIKE.
Lockout
It is one of the economic shields of the employer
against the employees. It takes place when the employer
temporarily refuses to furnish work as a result of an industrial
or labor dispute.
Lockout vs. Shutdown
Lockout Shutdown
The plant continues to The employer willfully
operate, as the employee- ceases operations following a
union members locked-out complete lock-out.
are replaced by non-union
substitutes.
A mere suspension of
operations resorted to by the
employer to defeat the
demands of his employees or
gain some advantage over
them in relation to a pending
labor dispute.
Who may declare a strike or lockout
1. Strike – any certified or duly recognized bargaining
representative
NOTE: In the absence of a certified or duly
recognized bargaining representative, any legitimate
labor organization in the establishment may declare a
strike but only on the ground of ULP.
2. Lockout – employer
Contents of notice of strike; Action on the notice
The notice shall state:
1. Names and addresses of the employer and the union
involved;
2. The nature of the industry to which the employer
belongs;
 University of Santo Tomas
Faculty of Civil Law
3. The number of union members and of the workers in
the bargaining unit; and
4. Such other relevant data as may facilitate the
settlement of the dispute.
In case of bargaining deadlocks:
1. The notice shall further state the unresolved issues in
the bargaining negotiations; and
2. Accompanied by the
a. Written proposals of the union;
b. Counter-proposals of the union;
c. Counter-proposals of the employer; and
d. Proof for conference to settle the
differences.
In case of unfair labor practices, the notice shall state the:
1. Acts complained of; and
2. Efforts taken to resolve the dispute amicably.
In case a notice does not conform with the
requirements, the regional branch of the NCMB shall inform
the concerned party of such fact.
Upon receipt of the notice, the regional branch of the
NCMB shall exert all efforts at mediation and conciliation to
enable the parties to settle the dispute amicably. The regional
branch of the NCMB may, upon agreement of the parties, treat
a notice as a preventive mediation case. It shall also encourage
the parties to submit the dispute to voluntary arbitration.
Procedural requirements for a lawful strike or lockout
1. It must be based ONLY the following grounds:
a. Bargaining deadlocks; and
b. Unfair labor practices
2. Must be approved by a majority of the total
membership of the union obtained by secret ballot in
meeting called for the purpose;
3. Strike or lockout NOTICE shall be filed with the
NCMB at least (mandatory cooling-off periods):
a. 15 days from the intended date thereof – for
ULP;
b. 30 days from intended thereof – for
bargaining deadlock
Copy furnished the adverse party; failure to serve
notice is a violation of due process.
PURPOSE (Mandatory cooling-off period):
a. To afford the parties the opportunity to
amicably resolve the dispute with the
assistance of the NCMB.
NOTE: In the event the result of the strike/lockout
vote ballot is filed within the cooling-off period, the
7-day requirement shall be counted from the day
following the expiration of the cooling-off period.
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NOTE: In case of union busting, the time
requirement for the filing of the Notice of Strike shall
be dispensed with but the strike vote requirement,
being mandatory in character, shall in every case be
complied with. The 7 days should be added to the 15-
day or 30-day cooling-off periods.
4. Compliance with the 24-hour prior notice rule on
strike voting – the union is mandated to notify the
NCMB of the meeting for the conduct of strike vote,
at least 24 hours prior to such meeting;
PURPOSES (24-hour prior notice rule):
a. To inform the NCMB of the intent of the
union to conduct a strike vote;
b. Give the NCMB ample time to decide
whether or not there is a need to supervise
the conduct of the strike vote to prevent any
acts of violence and/or irregularities
attendant thereto; and
c. Should the NCMB decide motu proprio or
upon the request of an interested party
including the employer, to supervise the
strike vote, to give ample time to prepare for
the deployment of the requisite personnel.
PURPOSES (Strike Vote):
b. To ensure that the decision to strike rests
with majority of the union members in
general and not with a mere minority; and
c. To discourage wildcat strikes, union bossism
and even corruption.
5. A strike or lockout VOTE shall be reported to the
NCMB-DOLE Regional Branch at least 7 days
before the intended strike or lockout subject to the
cooling-off period (mandatory 7-day strike ban).
PURPOSE (Strike Vote Report and Mandatory 7-
day strike ban):
a. To give the DOLE an opportunity to verify
whether the projected strike really carries
the approval of the majority union members.
NOTE: In strikes and lockouts in hospital, it is the duty
of the striking union or locking-out employer to provided
an effective skeletal workforce of medical and health
personnel to insure adequate protection of the life and
health of the patients, particularly emergency cases during
the duration of the strike.
NOTE: Should the dispute remain unsettled after the
lapse of the requisite number of days from the filing of
the notice of strike/lockout and of the results of the
election required, the labor union may strike or the
employer may lock out its workers. The regional branch
of the NCMB shall continue mediating and conciliating.
 University of Santo Tomas
Faculty of Civil Law
Effect of a labor dispute subject of a notice being treated
as Preventive Mediation case
Once the dispute has been converted into a
preventive mediation case, the notice of strike is deemed
dropped from the dockets as if no notice of strike has been
filed. Since there is no more notice of strike, any strike
subsequently stage by the union or locking out by the
employer is deemed not to have complied with the
requirements of a valid strike.
No strike could be legally declared during the
pendency of preventive mediation proceedings. 89
Effect of non-compliance with the requirements for a valid
strike or lockout
Non-compliance with the requirements of a valid
strike is sufficient ground to declare the strike/lockout illegal.
1. Illegal strike – the employer may be authorized to
terminate the employment of:
a. Union officials who knowingly participated
in the illegal strike; and/or
b. Any worker or union officer who
participated in the commission of other
illegal acts during the strike.
2. Illegal lockout – any worker whose employment has
been terminated as a consequence thereof may be
entitled to reinstatement including payment of full
backwages and other benefits.
Jurisdiction over legality of strike/lockout
GR: The LA has the power to determine the question
involving the legality or illegality of a strike/lockout upon the
filing of a proper complaint and after due hearing.
XPN:
1. Where the issue is raised in the dispute over which
the SOLE assumed jurisdiction – the same may be
resolved by the SOLE;
2. Where the issue is raised in disputes certified by the
SOLE to the NLRC for compulsory arbitration, the
same may be resolved NLRC; or
3. If the issue is submitted by the parties to voluntary
arbitration – the same may be resolved by the VA or
panel of VAs.
Legality of strike (Doctrine of Means and Purposes)
A strike may be declared illegal:
1. When it contravenes a specific statutory provision pr
judicial decree;
89
SMC vs. NLRC, G.R. No. 119293 (2003).
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2. When it is declared for a trivial, unjust or
unreasonable purpose or motive;
3. It is carried out through unlawful means;
4. It violates a binding agreement.
Doctrine of means and purposes – used in determining the
legality or illegality of a strike; strike is legal when lawful
means concur with lawful purpose.
NOTE: In a legal strike, the striking employees are not liable
for damages despite the injury or damage incurred by the
employer (damnum absque injuria).
Doctrinal rulings on legality of strikes
1. Strike declared in good faith – there is no such thing
as good faith strike because claim of good faith is not
a valid defense to dispense with the procedural steps
for a lawful strike.
2. Strike was the consequence of ULP – legal strike.
3. Strike declared to seek better terms and conditions of
employment – legal strike.
4. Strike staged against ULP and discriminatory acts –
legal strike.
5. Strike declared for failure of employer to abide by the
terms of the CBA – legal strike.
6. Strike declared due to ULP – not a violation of the
“no-strike” clause of the CBA because the same
applies only to economic strikes, and not ULP
strikes; thus, a legal strike.
Doctrinal rulings on illegality of strikes
1. Strikes staged on non-strikeable ground
2. Strike’s purpose is trivial, unjust and unreasonable
3. Strike staged for non-compliance of the legal
requirements
4. Strike staged in violation of the no-strike clause in
the CBA (only in economic strikes)
5. Strike becomes illegal if violence is pervasive and
widespread
6. Strike staged despite issuance of an assumption or
certification order
7. Strike staged without availing of the grievance
machinery procedure and voluntary arbitration clause
in the CBA
8. Strike staged to circumvent the CBA
9. Strike staged by a minority union
10. Strike staged in violation of preventive mediation
order (PMO)
11. Strike staged for violation of Art. 279(e).
Doctrinal rulings on legal lockout
1. Economic reverses or financial losses are justifiable
grounds for closure of establishment/lay-off;
 University of Santo Tomas
Faculty of Civil Law
2. Legitimate sale of business which is management
prerogative is not a lockout;
3. A permanent closure of business is not lockout but it
must be bona fide;
4. Stoppage of business operations due to lack of raw
materials is not lockout;
5. Closure of business due to strike is not lockout.
Doctrinal rulings on illegal lockout
1. Lockout declared for non-compliance of the legal
requirements;
2. Lockout declared before the lapse of the cooling-off
and waiting periods;
3. Lockout declared in violation of the no-lockout
clause in the CBA;
4. Lockout declared on grounds involving inter-union or
intra-union disputes;
5. Lockout declared in mala fide.
ASSUMPTION OF JURISDICTION (PRE-EMPTIVE
POWER OR AUTOMATIC INJUNCTIVE POWER OF
ARBITRATION)
It is an extraordinary authority strictly limited to
national interest cases and granted to the President or to the
SOLE, which can justifiably rest on his own consideration of
the exigency of the situation in relation to the
national interest.
It is plenary, full, public, and at the same time
discretionary as to:
1. Whether to assume jurisdiction over a given labor
dispute or certify the same to the NLRC; and
2. Determination of the industry indispensable to the
national interest.
PURPOSE: For the resumption of the employer’s
operations so essential to the national interest.
NOTE: It is not necessary for the SOLE to issue return-
to-work order in Assumption Order, because the mere
issuance of the same automatically carries with it a return-
to-work order although not expressly stated therein.
NOTE: The power of assumption does not constitute
undue delegation of legislative powers. However, if the
SOLE abuses his discretion, he can be corrected by
certiorari.
Effect of Assumption of Jurisdiction
1. Any strike/lockout, actual or intended, is
automatically enjoined;
2. If a strike/lockout has already taken place, all striking
workers shall immediately return to work or the
employer shall immediately resume operations,
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respectively, and the workers must be readmitted
under the same terms and conditions prevailing
before the strike/lockout (actual reinstatement).
Effect of non-compliance with return-to-work order
Return-to-work order – a statutory part and parcel of the
SOLE’s assumption or certification order. Noncompliance
therewith shall subject the party concerned to immediate
disciplinary action, including dismissal, payment by the
employer of backwages, damages, and other affirmative relief,
even criminal prosecution against either or both of them.
SOLE’s authority to resolve a labor dispute; Exception to
LA’s jurisdiction
The SOLE’s authority to resolve a labor dispute
within 30 days from the time of assumption of jurisdiction
must include and extend to all questions and controversies
arising therefrom, including cases over which the LA has
exclusive jurisdiction such as resolving questions on the
legality of strikes/lockouts.
Such decision shall be final and executory 10
calendar days after receipt thereof by the parties.
Strikes and lockouts in hospitals and medical institutions
The SOLE may immediately assume within 24 hours
from knowledge of the occurrence of such a strike or lockout,
jurisdiction over the same or certify it to the NLRC for
compulsory arbitration.
Appeal in assumed cases
The SOLE’s decision on assumed cases may be
appealed to the Office of the President.
Peaceful picketing
Picketing –device used by the union to bolster their strike; it
refers to outside patrolling or marching to and fro of the
strikes at the company’s premises usually accompanied by the
display of placards and other signs making known the facts
involved in a labor dispute; purpose is to have an effective
strike.
1. Chain or mass picketing; or
2. Circular picketing – carried on around the plant.
Legal aspect of picketing
In order to be lawful, picketing must be carried on
peacefully and in conformity with lawful objectives.
Although picketing is generally peaceful at the
beginning, it may be declared illegal if the picketers start to
 University of Santo Tomas
Faculty of Civil Law
utter forceful, coercive statements in an attempt to prevent
members of other unions from crossing the picket line.
NOTE: Right to picket has been equated with freedom of
speech.90
NOTE: Right to strike includes the right to picket, as a form
of concerted activity for mutual aid and protection guaranteed
by the Code.
NOTE:
1. It is not necessary that a picketing be conducted
during a strike.
2. There can be picketing without strike.
3. There can be no strike without picketing.
Stranger picketing
This is the kind of picketing by a union having no
members employed in the place picketed. There exists no
employer-employee relationship between the picketers and the
employer of the place (company) being picketed.
Doctrine of Innocent Bystander (An innocent bystander
with locus standi to enjoin a strike)
An innocent bystander who seeks to enjoin a labor
strike must satisfy the court that, aside from the grounds under
Rule 58 of Rules of Civil Procedure, the party applying for the
writ is entirely different from, and without any connection
whatsoever to, either party to the dispute and its interests are
totally foreign to the contest thereof.
NOTE: The doctrine of piercing the corporate veil does not
apply.
Boycott
It is a combination, the purpose of which it to coerce
the employer by the restriction and withholding of patronage
so as to diminish his volume of business.
Kinds of Boycott
1. Primary – where the refusal to patronize is confined
to the employees who have a direct interest in the
dispute with the employer; LAWFUL.
2. Secondary – where the refusal to patronize is done by
persons who have no economic interest in the
dispute, enlisted to assist the employees in coercing
the employer to meet the demands of the workers;
UNLAWFUL.
90
Thornhill vs. Alabama, 310 U.S. 88
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Government employees cannot join a strike
Such is considered an insurrection against public
authority. A strike against the Government by its employees is
a civil service offense which may be punishable
administratively.
Art. 279. Prohibited activities. – (a) No labor organization or
employer shall declare a strike or lockout without first having
bargained collectively in accordance with Title VII of this Book
or without first having filed the notice required in the preceding
Article or without the necessary strike or lockout vote first
having been obtained and reported to the Ministry.
No strike or lockout shall be declared after assumption
of jurisdiction by the President or the Minister or after
certification or submission of the dispute to compulsory or
voluntary arbitration or during the pendency of cases involving
the same grounds for the strike or lockout.
Any worker whose employment has been terminated as
a consequence of any unlawful lockout shall be entitled to
reinstatement with full backwages. Any union officer who
knowingly participates in an illegal strike and any worker or
union officer who knowingly participates in the commission of
illegal acts during a strike may be declared to have lost his
employment status: Provided, That mere participation of a
worker in a lawful strike shall not constitute sufficient ground for
termination of his employment, even if a replacement had been
hired by the employer during such lawful strike.
(b) No person shall obstruct, impede, or interfere with,
by force, violence, coercion, threats or intimidation, any peaceful
picketing by employees during any labor controversy or in the
exercise of the right to self-organization or collective bargaining,
or shall aid or abet such obstruction or interference.
(c) No employer shall use or employ any strike-breaker,
nor shall any person be employed as a strike-breaker.
(d) No public official or employee, including officers
and personnel of the New Armed Forces of the Philippines or the
Integrated National Police, or armed person, shall bring in,
introduce or escort in any manner, any individual who seeks to
replace strikers in entering or leaving the premises of a strike
area, or work in place of the strikers. The police force shall keep
out of the picket lines unless actual violence or other criminal
acts occur therein: Provided, That nothing herein shall be
interpreted to prevent any public officer from taking any
measure necessary to maintain peace and order, protect life and
property, and/or enforce the law and legal orders.
(e) No person engaged in picketing shall commit any act
of violence, coercion or intimidation or obstruct the free ingress
to or egress from the employer’s premises for lawful purposes, or
obstruct public thoroughfares.
 University of Santo Tomas
Faculty of Civil Law
Prohibited acts and practices
1. Declaring a strike/lockout on grounds involving
inter-union or intra-union disputes or on issues
brought to voluntary or compulsory arbitration;
2. Declaring a strike/lockout without first having
bargained collectively or without first having filed
the required notice or without strike/lockout vote first
having been obtained and reported to the Regional
Branch of the NCMB;
3. Implementing a strike/lockout in defiance of an order
to return to work and accept the workers after
assumption of jurisdiction by the President or the
SOLE or after certification or submission of the
dispute to compulsory or voluntary arbitration or
during the pendency of a case involving the
authorized grounds for the strike/lockout;
4. Obstructing, impeding, or interfering with, by force,
violence, coercion, threats or intimidation, any
peaceful picketing by employees during any labor
controversy or in the exercise of their right to self-
organization or collective bargaining, or aiding or
abetting such obstruction or interference;
5. Employing any strike-breaker or being employed as
strike-breaker;
6. No public official or employee, including officers
and personnel of the AFP or the PNP, or any armed
person, shall:
a. Bring in, introduce or escort in any manner,
any individual who seeks to replace strikers
in entering or leaving the premises of a
strike area; or
b. Work in place of the strikers.
7. Nothing herein shall be interpreted to prevent any
public officer from taking any measure necessary to
maintain peace and order, and/or protect life and
property;
8. Stationary picket and the use of means like placing of
objects to constitute permanent blockade or to
effectively close pints of entry or exit in company
premises;
9. Any act of violence, coercion, or intimidation by any
picketer;
10. The obstruction of the free ingress to or egress from
the employer’s premises for lawful purposes;
11. Obstruction of public thoroughfares while engaged in
picketing.
Right to strike can be waived
GR: Right to strike cannot be waived.
XPN: It shall be deemed waived in the following instances:
1. No-strike, no-lockout clause in the CBA;
2. Assumption of jurisdiction over labor dispute by
SOLE or the President; or
3. Issuance of a Preventive Mediation Order
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Rights of employees in economic and ULP strike
1. Reinstatement, provided the employer has not yet
hired permanent replacements; and
2. They may not be discriminated against for having
engaged in such strike.
Reinstatement of strikers may be denied
1. Where the employee concerned was found to have
committed serious misconduct prejudicial to the
employer;
2. Where the business has passed to a transferee in good
faith;
3. Where the employer has suffered serious economic
reverses and the need for the services of the strikers
has already ceased to exist;
4. Where the strikers have found substantially
equivalent and regular employment;
5. Where the strikers were not actually working at the
time of the strike;
6. Where reinstatement of illegally dismissed strikers
has become impossible;
7. Where they are officers of the union that staged an
illegal strike;
8. Where employee-striker knowingly participates in the
commission of illegal acts during the strike.
Liability of Strikers
In illegal strike, only the leaders or employees of
violence or those who initiated or organized the strike, not the
rank-and-file employees would receive the punishment of
dismissal.
Strikers not entitled to backwages; Exceptions
GR: In economic strike, strikers are not entitled to backwages,
since the employer should not get the equivalent day’s work
for what he pays his employees.
XPN: Backwages may be given in the following instances:
1. Discriminatorily dismissed employees must receive
backwages from the date of the act of discrimination
(from the day of their discharge);
2. The strikers did not strike but were practically
illegally locked out;
3. The strikers voluntarily and unconditionally offiered
to return to work, but the employer refused to accept
the offer.
Prohibition against strike-breakers
Strike-breaker – any person who obstructs, impedes, or
interferes with by force, violence, coercion, threats or
intimidation, any peaceful picketing by employees during any
 University of Santo Tomas
Faculty of Civil Law
labor controversy or in the exercise of their right to self-
organization or collective bargaining.
Art. 280. Improved offer balloting. – In an effort to settle a strike,
the Department of Labor and Employment shall conduct a
referendum by secret ballot on the improved offer of the
employer on or before the 30th day of the strike. When at least a
majority of the union members vote to accept the improved offer
the striking workers shall immediately return to work and the
employer shall thereupon readmit them upon the signing of the
agreement.
In case of a lockout, the Department of Labor and
Employment shall also conduct a referendum by secret balloting
on the reduced offer of the union on or before the 30th day of the
lockout. When at least a majority of the board of directors or
trustees or the partners holding the controlling interest in the
case of a partnership vote to accept the reduced offer, the
workers shall immediately return to work and the employer shall
thereupon readmit them upon the signing of the agreement.
Improved offer balloting
In case of a strike, the regional branch of the NCMB
shall, at its own initiative or upon the request of any affected
party, conduct a referendum by secret balloting on the
improved offer of the employer on or before the 30 th day of
strike.
When at least a majority of the union members vote
to accept the improved offer, the striking workers shall
immediately return to work and the employer shall thereupon
re-admit them upon signing of the agreement.
Reduce offer balloting
In case of a lockout, the regional branch of the
NCMB shall also conduct a referendum by secret balloting on
the reduced offer of the union on or before the 30 th day of
lockout.
When at least a majority of the board of directors or
trustees or the partners holding the controlling interest in the
case of partnership vote to accept the reduced offer, the
workers shall immediately return to work and the employer
shall thereupon re-admit them upon signing of the agreement.
Art. 281. Requirement for arrest and detention. – Except on
grounds of national security and public peace or in case of
commission of a crime, no union members or union organizers
may be arrested or detained for union activities without previous
consultations with the Secretary of Labor.
Arrests, searches and seizures
GR: A police officer cannot arrest or detain any union
member or organizer without previous consultation with the
SOLE. Consultation can be dispensed with if the arrest is
effected on the following grounds:
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1. National security;
2. Public peace; or
3. Commission of a crime.
XPN: An arrest can be lawfully made in the following cases:
1. Any person who obstructs the free and lawful ingress
to and egress from the employer’s premises or who
obstructs public thoroughfares may be arrested and
accordingly charged in court.
2. Any person who shall have in his possession deadly
weapons.
CHAPTER II
ASSISTANCE TO LABOR ORGANIZATIONS
Art. 282. Assistance by the Department of Labor. – The
Department of Labor, at the initiative of the Secretary of Labor,
shall extend special assistance to the organization, for purposes of
collective bargaining, of the most underprivileged workers who,
for reasons of occupation, organizational structure or insufficient
incomes, are not normally covered by major labor organizations
or federations.
Art. 283. Assistance by the Institute of Labor and Manpower
Studies. – The Institute of Labor and Manpower Studies shall
render technical and other forms of assistance to labor
organizations and employer organizations in the field of labor
education, especially pertaining to collective bargaining,
arbitration, labor standards and the Labor Code of the
Philippines in general.
CHAPTER III
FOREIGN ACTIVITES
Art. 284. Prohibition against aliens; exceptions. – All aliens,
natural or juridical, as well as foreign organizations are strictly
prohibited from engaging directly or indirectly in all forms of
trade union activities without prejudice to normal contacts
between Philippine labor unions and recognized international
labor centers: Provided, however, That aliens working in the
country with valid permits issued by the Department of Labor
and Employment, may exercise the right to self-organization and
join or assist labor organizations of their own choosing for
purposes of collective bargaining: Provided, further, That said
aliens are nationals of a country which grants the same or similar
rights to Filipino workers.
Prohibition against aliens
All aliens, natural or juridical, are strictly prohibited
from engaging in all forms of trade union activities, whether
directly or indirectly.
Philippine labor unions may, however, maintain
normal contacts with recognized international labor centers.
XPN: Aliens working in the PH may exercise self-
organization and join or assist labor organizations for
collective bargaining purposes under the following conditions:
 University of Santo Tomas
Faculty of Civil Law
1. The aliens are working in the country with valid
permits issued by the DOLE; and
2. The aliens are nationals of a country which grants the
same or similar rights to Filipino workers (Principle
of Reciprocity).
Art. 285. Regulation of foreign assistance. – (a) No foreign
individual, organization or entity may give any donations, grants
or other forms of assistance, in cash or in kind, directly or
indirectly, to any labor organization, group of workers or any
auxiliary thereof, such as cooperatives, credit unions and
institutions engaged in research, education or communication, in
relation to trade union activities, without prior permission by the
Secretary of Labor.
"Trade union activities" shall mean:
(1) organization, formation and administration of labor
organization;
(2) negotiation and administration of collective
bargaining agreements;
(3) all forms of concerted union action;
(4) organizing, managing, or assisting union
conventions, meetings, rallies, referenda, teach-ins,
seminars, conferences and institutes;
(5) any form of participation or involvement in
representation proceedings, representation elections,
consent elections, union elections; and
(6) other activities or actions analogous to the foregoing.
(b) This prohibition shall equally apply to foreign
donations, grants or other forms of assistance, in cash or in kind,
given directly or indirectly to any employer or employer’s
organization to support any activity or activities affecting trade
unions.
(c) The Secretary of Labor shall promulgate rules and
regulations to regulate and control the giving and receiving of
such donations, grants, or other forms of assistance, including the
mandatory reporting of the amounts of the donations or grants,
the specific recipients thereof, the projects or activities proposed
to be supported, and their duration.
Art. 286. Applicability to farm tenants and rural workers. – The
provisions of this Title pertaining to foreign organizations and
activities shall be deemed applicable likewise to all organizations
of farm tenants, rural workers, and the like: Provided, That in
appropriate cases, the Secretary of Agrarian Reform shall
exercise the powers and responsibilities vested by this Title in the
Secretary of Labor.
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CHAPTER IV
PENALTIES FOR VIOLATION
Art. 287. Penalties. – (a) Any person violating any of the
provisions of Article 264 of this Code shall be punished by a fine
of not less than one thousand pesos (P1,000.00) nor more than ten
thousand pesos (P10,000.00) and/or imprisonment for not less
than three months nor more than three (3) years, or both such
fine and imprisonment, at the discretion of the court. Prosecution
under this provision shall preclude prosecution for the same act
under the Revised Penal Code, and vice versa.
(b) Upon the recommendation of the Minister of Labor
and Employment and the Minister of National Defense,
foreigners who violate the provisions of this Title shall be subject
to immediate and summary deportation by the Commission on
Immigration and Deportation and shall be permanently barred
from re-entering the country without the special permission of
the President of the Philippines.
TITLE IX
SPECIAL PROVISIONS
Art. 288. Study of Labor-Management Relations. – The Secretary
of Labor shall have the power and it shall be his duty to inquire
into:
(a) the existing relations between employers and
employees in the Philippines;
(b) the growth of associations of employees and the
effect of such associations upon employer-employee relations;
(c) the extent and results of the methods of collective
bargaining in the determination of terms and conditions of
employment;
(d) the methods which have been tried by employers
and associations of employees for maintaining mutually
satisfactory relations;
(e) desirable industrial practices which have been
developed through collective bargaining and other voluntary
arrangements;
(f) the possible ways of increasing the usefulness and
efficiency of collective bargaining for settling differences;
(g) the possibilities for the adoption of practical and
effective methods of labor-management cooperation;
(h) any other aspects of employer-employee relations
concerning the promotion of harmony and understanding
between the parties; and
(i) the relevance of labor laws and labor relations to
national development.
 University of Santo Tomas
Faculty of Civil Law
The Secretary of Labor shall also inquire into the
causes of industrial unrest and take all the necessary steps within
his power as may be prescribed by law to alleviate the same, and
shall from time to time recommend the enactment of such
remedial legislation as in his judgment may be desirable for the
maintenance and promotion of industrial peace.
Art. 289. Visitorial power. – The Secretary of Labor and
Employment or his duly authorized representative is hereby
empowered to inquire into the financial activities of legitimate
labor organizations upon the filing of a complaint under oath and
duly supported by the written consent of at least twenty percent
(20%) of the total membership of the labor organization
concerned and to examine their books of accounts and other
records to determine compliance or non-compliance with the law
and to prosecute any violations of the law and the union
constitution and by-laws: Provided, That such inquiry or
examination shall not be conducted during the sixty (60)-day
freedom period nor within the thirty (30) days immediately
preceding the date of election of union officials.
Visitorial Power
The visitorial power of the SOLE can be exercised
through the Regional or Bureau Director in the following
cases:
1. Inquire into the financial activities of legitimate labor
organizations;
2. Examine their books of accounts and other records to
determine compliance or non-compliance with the
law;
3. Prosecute any violations of the law and the union’s
constitution and by-laws.
Limitations of the power
The SOLE cannot exercise his visitorial power in the
following cases:
1. During the 60-day freedom period; and
2. During the 30-day period immediately preceding the
date of election of union officials.
Procedural requirements
The requirements for a valid exercise of visitorial
power are the following:
1. There should be a complaint under oath; and
2. Said complaint should be supported by the written
consent of at least 20% of the total union
membership.
Art. 290. Tripartism,, Tripartite Conferences, and Tripartite
Industrial Peace Councils. – (a) Tripartism in labor relations is
hereby declared a State policy. Towards this end, workers and
employers shall, as far as practicable, be represented in decision
and policy-making bodies of the government.
(b) The Secretary of Labor and Employment or his duly
authorized representatives may, from time to time, call a
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national, regional, or industrial tripartite conference of
representatives of government, workers and employers for the
consideration and adoption of voluntary codes of principles
designed to promote industrial peace based on social justice or to
align labor movement relations with established priorities in
economic and social development. In calling such conference, the
Secretary of Labor and Employment may consult with accredited
representatives of workers and employers.
(c) A National Tripartite Industrial Peace Council
(NTIPC) shall be established headed by the Secretary of Labor
and Employment, with twenty (2) representatives each from the
labor and employers’ sectors to be designated by the President at
regular intervals. For this purpose, sectoral nomination,
selection, and recall process shall be established by the DOLE in
consultation with the sectors observing the ‘most representative’
organization criteria of ILO Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs) at the
regional or industry level shall also be established with
representatives from government, workers and employers to
serve as a continuing forum for tripartite advisement and
consultation in aid of streamlining the role of government,
empowering workers’ and employers’ organizations, enhancing
their respective rights, attaining industrial peace, and improving
productivity.
The TIPCs shall have the following functions:
(1) Monitor the full implementation and compliance of
concerned sectors with the provisions of all tripartite
instruments, including international conventions and
declarations, codes of conduct, and social accords;
(2) Participate in national, regional or industry-specific
tripartite conferences which the President or the Secretary of
Labor and Employment may call from time to time;
(3) Review existing labor, economic and social policies
and evaluate local and international developments affecting
them;
(4) Formulate, for submission to the President or to
Congress, tripartite views, recommendations and proposals on
labor, economic, and social concerns, including the presentation
of tripartite positions on relevant bills pending in Congress;
(5) Advise the Secretary of Labor and Employment in
the formulation or implementation of policies and legislation
affecting labor and employment;
(6) Serve as a communication channel and a mechanism
for undertaking joint programs among government, workers,
employers and their organizations toward enhancing labor-
management relations; and
(7) Adopt its own program of activities and rules,
consistent with development objectives.
 University of Santo Tomas
Faculty of Civil Law
The operations of all TIPCs shall be funded from the
regular budget of the DOLE.
Principle of Tripartism
The tripartite approach is designed to converge the 3
sectors:
1. Government;
2. Employers; and
3. Employees
For a dialogue and conference for the purpose of drafting
major policies and simplifying resolution of major labor
issues.
Art 291. Government employees. – The terms and conditions of
employment of all government employees, including employees of
government-owned and controlled corporations, shall be
governed by the Civil Service Law, rules and regulations. Their
salaries shall be standardized by the National Assembly as
provided for in the New Constitution. However, there shall be no
reduction of existing wages, benefits and other terms and
conditions of employment being enjoyed by them at the time of
the adoption of this Code.
Art. 292. Miscellaneous provisions. – (a) All unions are
authorized to collect reasonable membership fees, union dues,
assessments and fines and other contributions for labor
education and research, mutual death and hospitalization
benefits, welfare fund, strike fund and credit and cooperative
undertakings.
(b) Subject to the constitutional right of workers to
security of tenure and their right to be protected against
dismissal except for a just and authorized cause and without
prejudice to the requirement of notice under Article 28391 of this
Code, the employer shall furnish the worker whose employment
is sought to be terminated a written notice containing a statement
of the causes for termination and shall afford the latter ample
opportunity to be heard and to defend himself with the assistance
of his representative if he so desires in accordance with company
rules and regulations promulgated pursuant to guidelines set by
the Department of Labor and Employment. Any decision taken
by the employer shall be without prejudice to the right of the
worker to contest the validity or legality of his dismissal by filing
a complaint with the regional branch of the National Labor
Relations Commission. The burden of proving that the
termination was for a valid or authorized cause shall rest on the
employer. The Secretary of the Department of Labor and
Employment may suspend the effects of the termination pending
resolution of the dispute in the event of a prima facie finding by
the appropriate official of the Department of Labor and
Employment before whom such dispute is pending that the
termination may cause a serious labor dispute or is in
implementation of a mass lay-off.
(c) Any employee, whether employed for a definite
period or not, shall, beginning on his first day of service, be
considered as an employee for purposes of membership in any
labor union.
91
Renumbered as Art. 298.
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(d) No docket fee shall be assessed in labor standards
disputes. In all other disputes, docket fees may be assessed
against the filing party, provided that in bargaining deadlock,
such fees shall be shared equally by the negotiating parties.
(e) The Minister of Labor and Employment and the
Minister of the Budget shall cause to be created or reclassified in
accordance with law such positions as may be necessary to carry
out the objectives of this Code and cause the upgrading of the
salaries of the personnel involved in the Labor Relations System
of the Ministry. Funds needed for this purpose shall be provided
out of the Special Activities Fund appropriated by Batas
Pambansa Blg. 80 and from annual appropriations thereafter.
(f) A special Voluntary Arbitration Fund is hereby
established in the Board to subsidize the cost of voluntary
arbitration in cases involving the interpretation and
implementation of the Collective Bargaining Agreement,
including the Arbitrator’s fees, and for such other related
purposes to promote and develop voluntary arbitration. The
Board shall administer the Special Voluntary Arbitration Fund
in accordance with the guidelines it may adopt upon the
recommendation of the Council, which guidelines shall be subject
to the approval of the Secretary of Labor and Employment.
Continuing funds needed for this purpose in the initial yearly
amount of fifteen million pesos (P15,000,000.00) shall be provided
in the 1989 annual general appropriations acts.
The amount of subsidy in appropriate cases shall be
determined by the Board in accordance with established
guidelines issued by it upon the recommendation of the Council.
The Fund shall also be utilized for the operation of the
Council, the training and education of Voluntary Arbitrators,
and the Voluntary Arbitration Program.
(g) The Ministry shall help promote and gradually
develop, with the agreement of labor organizations and
employers, labor-management cooperation programs at
appropriate levels of the enterprise based on the shared
responsibility and mutual respect in order to ensure industrial
peace and improvement in productivity, working conditions and
the quality of working life.
(h) In establishments where no legitimate labor
organization exists, labor-management committees may be
formed voluntarily by workers and employers for the purpose of
promoting industrial peace. The Department of Labor and
Employment shall endeavor to enlighten and educate the workers
and employers on their rights and responsibilities through labor
education with emphasis on the policy thrusts of this Code.
(i) To ensure speedy labor justice, the periods provided
in this Code within which decisions or resolutions of labor
relations cases or matters should be rendered shall be
mandatory. For this purpose, a case or matter shall be deemed
submitted for decision or resolution upon the filing of the last
pleading or memorandum required by the rules of the
Commission or by the Commission itself, or the Labor Arbiter,
or the Director of the Bureau of Labor Relations or Med-Arbiter,
or the Regional Director.
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Upon expiration of the corresponding period, a
certification stating why a decision or resolution has not been
rendered within the said period shall be issued forthwith by the
Chairman of the Commission, the Executive Labor Arbiter, or
the Director of the Bureau of Labor Relations or Med-Arbiter, or
the Regional Director, as the case may be, and a copy thereof
served upon the parties.
Despite the expiration of the applicable mandatory
period, the aforesaid officials shall, without prejudice to any
liability which may have been incurred as a consequence thereof,
see to it that the case or matter shall be decided or resolved
without any further delay.
Extent and limits of the protection
The employee’s right to security of tenure does not
give him such a vested right in his position as would deprive
the company of its prerogative to change his assignment or
transfer hum when he will be most useful, and where his
transfer is not unreasonable, nor inconvenient, nor prejudicial
to him, and it does not involve demotion in rank or diminution
of his salaries, benefits, and other privileges, the employee
may not complain that it amounts to a constructive dismissal.
Reliefs and normal consequences of illegal dismissal

BOOK VI 1. Reinstatement without loss of seniority rights and

POST-EMPLOYMENT other privileges; and
2. Full backwages, inclusive of allowances, and to his
TITLE I
other benefits or their monetary equivalent computed
TERMINATION OF EMPLOYMENT
from the time his compensation was withheld from
Art. 293. Coverage. – The provisions of this Title shall apply to him up to the time of his actual reinstatement;
all establishments or undertakings, whether for profit or not. 3. Damages;
4. Attorney’s fees
Coverage on the law of termination
Reinstatement
The law on termination applies to all establishments
or undertakings, whether for profit or not. Reinstatement – restoration to a state from which has been
removed or separated; a vindication against illegal dismissal.
Four-fold test (Indicia of relationship) of Employer-
employee relationship Reinstatement Re-employment
Connotes an obligation. Discretionary on the part of
1. Selection and engagement of the employee; the employer to place the
2. Payment of wages; employee affected in the
3. Power of dismissal; and position previously held.
4. Power to control the employees’ conduct.
In case reinstatement is adjudged by the LA, the
Art. 294. Security of tenure. – In cases of regular employment, award of backwages and other benefits continue, beyond the
the employer shall not terminate the services of an employee date of the LA’s decision ordering reinstatement and extends
except for a just cause or when authorized by this Title. An
employee who is unjustly dismissed from work shall be entitled to
up to the time said order of reinstatement is actually
reinstatement without loss of seniority rights and other privileges implemented.
and to his full backwages, inclusive of allowances, and to his
other benefits or their monetary equivalent computed from the Reinstatement Backwages
time his compensation was withheld from him up to the time of Restoration to a state from Restores the income that was
his actual reinstatement. which one has been removed lost by reason of unlawful
or separated. dismissal.
Right to security of tenure
2 types of Reinstatement
Tenure – permanent or regular status granted a worker usually
after a probationary or trial period. 1. Actual reinstatement – employee is restored to his
former position.
Security of tenure – right of a worker to be secured or to 2. Reinstatement in the payroll – employee is restored
continue in employment until the same is terminated by virtue in the payroll without performing such services.
of a valid, just case or on grounds authorized by law.
REASONS for reinstatement in the payroll:
Coverage of the security of tenure clause a. Employer believes that the dismissal is valid;
and
It extends to all types of employees. b. The presence of the employee in the company
premises might demoralized other co-workers
in the process.
 University of Santo Tomas
Faculty of Civil Law
Reinstatement not proper in the following cases
1. Non-employees;
2. If the position previously occupied by the employee
no longer exists at the time of reinstatement –
a. He should be given a substantially
equivalent position; or
b. If no substantially equivalent position is
available, reinstatement should not be
ordered (a legal impossibility).
REMEDY: Separation pay equivalent to 1
month salary for every year of service.
3. If the position previously occupied by the dismissed
employee has already been filled up
REMEDY: Reinstate him to a substantially
equivalent position.
4. An employee, at the time of dismissal, was
occupying a temporary or lower position cannot be
ordered reinstated to a permanent or higher position.
Separation pat granted in lieu of reinstatement
Separation pay can be granted in lieu of reinstatement
under the following exceptions to the general rule of
reinstatement:
1. Reinstatement can no longer be effected in view of
the long passage of time or because of realities of the
situation;
2. That it would be inimical to the employer’s interest;
3. That reinstatement may no longer be feasible;
4. It will not serve the best interests of the parties
involved;
5. The company would be prejudiced by the workers’
continued employment;
6. It will not serve the prudent purpose as when
supervening facts have transpired which make
execution unjust or inequitable;
7. There is a resultant strained relations between the
employer and the employee.
Circumstances that bar reinstatement
1. Dismissal for cause
2. Abandonment of right or laches
3. Resignation of employee
4. Physical incapacity of employee – the employer may
require employees to undergo a physical or medical
examination, but it should not be imposed as a pre-
condition for reinstatement; if they are found to be ill
or suffering from some disability, they would be
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entitled to all the benefits given to other employees
similarly situated.
5. Employee accepts retirement pay – as retirement pay
has the characteristic of a separation pay.
6. When employment relation becomes so strained
(doctrine of strained relationship)
a. When the employer can no longer trust the
employee (ie. Hambooger Doctrine);
b. There were respective imputations of bad
faith to each other; or
c. There was severe antagonism
7. Closure or cessation of business operation
8. Transfer of business to an innocent transferee
9. Act of State – employer not liable to pay separation
pay.
10. Abolition of position – employee should be given a
substantially equivalent position; otherwise, payment
of separation pay plus backwages as a form of
compromise to reinstatement.
11. Prescription – 4 years.
12. Conviction for a crime
13. Not conducive to industrial harmony
14. Over-aged employee
15. Fiduciary relationship
a. Kasambahay Law
16. Legal proscription
a. Migrant Workers Act – an illegally
dismissed OFW is entitled to the full
reimbursement of his placement fee with
interest at 12% per annum, plus his salaries
for the unexpired portion of the employment
contract.
b. Kasambahay Law – dismissed kasambahay
shall not be entitled to separation pay.
17. Supervening event
“Without loss of seniority rights”
Seniority – length of service of employees in a specified unit
for the purposes of determining the order in which workers
will be laid-off, promoted, transferred, or rehired.
NOTE: An employee has no inherent right to seniority.
Reinstatement without loss of seniority rights and other
privileges – denotes that benefits due a dismissed employee
including seniority rights and other privileges will not be
affected by his absence due to suspension of employment
brought about by the unlawful dismissal.
Backwages
It is form of relief that restores the income of the
employee that was lost by reason of the unlawful dismissal.
 University of Santo Tomas
Faculty of Civil Law
Full Backwages
It simply means as one that is not diminished or
reduced by the earnings derived by the employee elsewhere
during the period of his illegal dismissal.
Computation of backwages (salary base of backwages)
The award of backwages is computed on the basis of
a 30-day month.
Period covered by full backwages
Full backwages shall be awarded to cover the period
from the date of illegal dismissal to the employee’s date of
actual reinstatement.
If reinstatement is no longer feasible, then it is
computed from the time of illegal dismissal up to the finality
of the decision.
NOTE: Before March 21, 1989, the award of backwages in
favor of the dismissed employee is limited to 3 years without
deduction or qualification under the Mercury Drug Rule (Cut-
off period is March 21, 1989).
Circumstances that bar award of full backwages
1. Dismissal for cause
2. Death, physical or mental incapacity
3. Business reverse
4. Act of State
5. Detention in prison
Circumstances that do not bar award of full backwages
1. Dismissal without cause
2. Principle of strained relationship
3. Reasonable delay
4. Unfavorable business condition
Separation Pay
It is the amount that an employee receives at the time
of his severance from the service and is designed to provide
the employee with the wherewithal during the period that he is
looking for another employment.
It is payable to an employee whose services are
validly terminated for authorized causes.
It may be allowed as a measure of social justice in
exceptional circumstances and as an equitable concession.
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Damages
It may mean the injury or loss cause by another by
violation of his legal rights or is the sum of money which the
law awards or imposes as pecuniary compensation,
recompense, or satisfaction for an injury done or a wrong
sustained as consequence either of a breach of a contractual
obligation or a notorious act.
Requirements in the award of damages
1. Factual and legal bases for the award shall be
discussed by the LA in the text of the decision, not in
the dispositive portion; otherwise, the award of
damages shall be deleted;
2. There can be no moral damages without exemplary
damages.
3. There can be no moral and exemplary damages
without attorney’s fees.
Liability for moral and exemplary damages
Moral and exemplary damages are recoverable
ONLY when the dismissal of an employee was attended by
bad faith or fraud, or constituted an act oppressive to labor, or
was done in a manner contrary to morals, good customs, or
public policy.
Art. 295. Regular and casual employment. – The provisions of
written agreement to the contrary notwithstanding and
regardless of the oral agreement of the parties, an employment
shall be deemed to be regular where the employee has been
engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer, except
where the employment has been fixed for a specific project or
undertaking the completion or termination of which has been
determined at the time of the engagement of the employee or
where the work or service to be performed is seasonal in nature
and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not
covered by the preceding paragraph: Provided, That any
employee who has rendered at least one year of service, whether
such service is continuous or broken, shall be considered a
regular employee with respect to the activity in which he is
employed and his employment shall continue while such activity
exists.
Art. 296. Probationary employment. – Probationary employment
shall not exceed six (6) months from the date the employee
started working, unless it is covered by an apprenticeship
agreement stipulating a longer period. The services of an
employee who has been engaged on a probationary basis may be
terminated for a just cause or when he fails to qualify as a
regular employee in accordance with reasonable standards made
known by the employer to the employee at the time of his
engagement. An employee who is allowed to work after a
probationary period shall be considered a regular employee.
 University of Santo Tomas
Faculty of Civil Law
Classification of employment status
It is not the yardstick for determining the existence of
an employment relationship because it merely distinguishes
between kinds of employees.
Types of employees
4.
1. Regular – where the employee:
a. Has been engaged to perform activities
which are usually necessary or desirable in
the usual business or trade of the employer
(nature of work); or
b. Has rendered at least 1 year of service,
whether such service is continuous or
broken with respect to the activity in which
he is employed (years of service).
NOTE: Repeated renewal of contracts, or hired
without an employment contract are indications of
regular employment.
5.
2. Fixed-term or contractual – where an employee is
engaged to work on a specific project or undertaking
(that is usually necessary or desirable in the usual
business or trade of the employer), the completion of
which has been determined at the time of the
engagement of the employee. (ie. Seafarers)
DETERMINANT: The day certain agreed upon by
the parties for the commencement and termination of
their employment relationship.
Criteria for a valid fixed-term employment:
a. The fixed period of employment was
knowingly and voluntarily agreed upon by
the parties, without any force, or improper
pressure being brought to bear upin the
employee and absent any other
circumstances vitiating his consent; or
b. It satisfactorily appears that the employer
and the employee dealt with each other on
a more or less equal terms with no moral
dominance whatever being exercised by the
former upon the latter.
3. Seasonal – where an employee is engaged to work
during a particular season on an activity that is
usually necessary or desirable in the usual business or
trade of the employer.
NOTE: Their employment legally ends upon the
completion of the season.
NOTE: During off-season, the relationship of
employer and employee is not severed; the
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seasonably employee is merely considered on LOA
with pay.
NOTE: He may acquire a regular status if he is
repeatedly engaged from season to season performing
the same tasks.
Casual – where an employee is engaged to work on
an activity that is not usually necessary or desirable
in the usual business or trade of the employer.
NOTE: Employment is casual when it is irregular,
unpredictable, sporadic and brief in nature, and
outside the usual business of the employer.
NOTE: Casual employees, who have rendered at
least 1 year of service, are considered as regular
employees. This is to put an end on casual
employment in regular jobs and pursuant to right of
security of tenure.
Project – where the employees are employed in
connection with a particular construction project or
phase thereof with predetermined date of completion.
The term of employment is co-terminus with the
completion of the project.
NOTE: An employment ceases to be co-terminus
with specific project when the employee is
continuously rehired due to the demands of
employer’s business and re-engaged for many
projects without interruption; he is then considered a
regular employee.
NOTE: They are not entitled to separation pay if
they are terminated as a result of the completion of
the project or any phase thereof in which they are
employed. What is required of the company is report
to the nearest Public Employment Office for
statistical purposes. Once the project is completed,
the employer is not required to maintain them in the
payroll.
Termination of a project employee:
a. If a construction project or any phase
thereof has a duration of more than 1 year
and project employee is allowed to be
employed for at least 1 year, such
employee may not be terminated until the
completion of the project or any phase
thereof without previous written clearance
firm the SOLE; otherwise, he shall be
entitled to reinstatement with backwages.
b. Where the employment of project
employees is extended long after the
supposed project had been finished, the
employees are removed from the scope of
 University of Santo Tomas
Faculty of Civil Law
project employees and they shall be
considered as regular employees.
Termination of project employment or a phase
thereof – completion of a phase of the project is the
completion of the project for an employee employed
in such phase; thus, they are not entitled to separation
pay and exempt from clearance requirement.
Project employees in the work pool – if they are free
to leave anytime and offer their services to other
employers, then they are project employees.
Project or work pool employee continuously rehired
by the same employer for the same tasks and
necessary to the usual trade or business of the
employer – considered as regular employee.
6. Non-project – where the employees are employed by
a construction company without reference to any
particular project.
Non-project employees in the work pool (employees
for an indefinite period) – members of a work pool
from which a construction company draws its project
employees, if considered as employees of the
construction company while in the work pool.
Members of the work pool – not entitled to
uninterrupted work; they merely maintain their
employment status notwithstanding completion of the
project or phase of the work were they are assigned.
Types of non-project employees
a. Probationary
b. Regular
c. Casual
7. Probationary – one who, for a given period is under
observation and evaluation to determine whether or
not he is fit or qualified for regular employment.
Characteristics of probationary employment
a. Employment for a trial period;
b. Temporary employment status prior to
regular employment;
c. It arises through a contract with the
following elements
i. The employee must learn and work
at a particular type of work;
ii. Such work calls for certain
qualifications, skills, experience, or
training;
iii. The probation is fixed;
iv. The employer reserves the power to
terminate the employment during
or at the end of the trial period; and
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v. If the employee has learned the job
and performed it to the satisfaction
of the employer, he becomes a
regular employee.
Continuation of the 6-month probationary period
GR: The probationary period of employment is
limited to 6 months.
XPN:
a. When the parties to an employment contract
agree otherwise;
b. When the same is established by company
policy;
c. When the same is required by the nature of
work performed by the employee; or
d. As provided by law.
Probationary periods
a. Apprentice – not less than 3 months nor
more than 6 months
b. Learner – not more than 3 months
NOTE: Upon the expiration of the training
period, the apprentice or learner becomes a
regular employee and does not undergo
anymore a probationary period in the company
that conducted the training program, but, in
another company, he can be placed under
probationary employment period.
NOTE:
i. Pre-termination of apprenticeship
agreement – not a regular employee
ii. Pre-termination of learnership
agreement – regular employee, provided
he has already been trained for 3
months.
c. Academic personnel – 3 consecutive years
of satisfactory service
Double or successive probation – PROHIBITED, as
it will circumvent regularization of employees.
Grounds for termination of probationary employees
a. For a just cause; or
b. When he fails to qualify as a regular
employee in accordance with reasonable
standards made known by the employer to
the employee at the time of his
engagement.
 University of Santo Tomas Labor Law Review
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Art. 297. Termination by employer. –An employer may terminate 4. Decision to dismiss – it should be in writing and
an employment for any of the following causes: should clearly state the reasons therefor.

(a) Serious misconduct or willful disobedience by the 2-fold requirements for lawful dismissal
employee of the lawful orders of his employer or representative
in connection with his work; 1. Substantive – legality or illegality of the act of
dismissal;
(b) Gross and habitual neglect by the employee of his 2. Procedural – legality or illegality of the manner of
duties; dismissal.

(c) Fraud or willful breach by the employee of the trust Types of dismissal
reposed in him by his employer or duly authorized
representative; 1. Valid
a. Dismissal for a just cause with due process
(d) Commission of a crime or offense by the employee b. Dismissal for authorized cause with due
against the person of his employer or any immediate member of process
his family or his duly authorized representatives; and
c. Dismissal for health reasons with due
process
(e) Other causes analogous to the foregoing. 2. Illegal
a. Dismissal without just or authorized cause
Doctrine of Incompatibility with due process
b. Dismissal without just or authorized cause
Where the employee has done something that is without due process
contrary or incompatible with the faithful performance of his 3. Employer liable for nominal damages only
duties, his employer has a just cause for terminating his a. Dismissal for just or authorized cause
employment. without due process
4. Reinstatement is warranted
Procedural requirements of dismissal for just causes a. Dismissal for a false or non-existent cause

1. Notice (2-notice rule) – the employer is required to Circumstances affecting validity of dismissal
furnish an employee who is to be dismissed with 2
written notices before such termination: 1. Gravity of the offense
a. Pre-notice – the notice to apprise the 2. Employment position
employee of the particular acts or omissions 3. Length of service
for which dismissal is sought and is 4. Totality of infractions
considered as the proper charge; 5. Nature of the business
b. Post-notice – the notice informing the 6. First-offense rule
employee of the employer’s decision to 7. Principle of equity
dismiss him which notice must come only 8. Principle of compassion and understanding
after the employee is given a reasonable 9. Principle of commensurate penalty or proportionality
period from receipt of the first notice within rule – the penalty imposed should be commensurate
which to answer the charge, and ample to the gravity of his offense.
opportunity to be heard and defend himself.
JUST CAUSES FOR DISMISSAL
2. Answer and Hearing – the worker may answer the
allegations against him in the notice of dismissal I. Serious misconduct
within a reasonable period from receipt of the notice
of dismissal with the ample opportunity to be heard. Misconduct to warrant dismissal must be:
1. Improper, wrongful and serious, or must be of
3. Preventive Suspension – the employer may place the such a grave and aggravated character and not
employee under preventive suspension, during the merely trivial or unimportant; and
pendency of the investigation, if his continued 2. In connection with the employee’s work.
employment poses a serious and imminent threat to
life and property of the employer or of his co-
employees.
 University of Santo Tomas Labor Law Review
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II. Willful disobedience to lawful orders of the V. Commission of a crime against the person of the
employer or representative in connection with his employer, his representative, or any immediate
work member of his family

Requirements for will disobedience or insubordination: Commission of a crime by the employee – refers to an offense
1. The employee’s assailed conduct must have been against the person of his employer, his duly authorized
willful or intentional; and representative, or any immediate member of his family, and
2. The orders, regulations or instructions of the thus, the conviction of a crime involving moral turpitude is not
employer or representative must be: analogous thereto.
a. Reasonable and lawful;
b. Sufficiently known to the employee; VI. Analogous cases
c. In connection with the duties which the
employee has engaged to discharge. Examples:
1. Violation of company rules and regulations;
III. Gross and habitual neglect of duty 2. Theft of company property
3. Immorality, drunkenness or fighting inside company
Gross neglect – an absence of that diligence that an ordinarily premises;
prudent man would use in his own affairs. 4. Gross inefficiency.

Habitual neglect – repeated failure to perform one’s duties for
a period of time, depending upon the circumstances.
IV. Fraud or willful breach of trust
Fraud – any act, omission, or concealment which involves a
breach of legal duty, trust, or confidence justly reposed and is
injurious to another.
Requisites:
1. Fraud must be committed against the employer or
representative; and
2. In connection with the employee’s work.
Position of trust and confidence – one where a person is
entrusted with confidence on delicate matters, or with the
custody, handling, or care and protection of the employer’s
property and/or funds.
Art. 298. Closure of establishment and reduction of personnel. –
The employer may also terminate the employment of any
employee due to the installation of labor-saving devices,
redundancy, retrenchment to prevent losses or the closing or
cessation of operation of the establishment or undertaking unless
the closing is for the purpose of circumventing the provisions of
this Title, by serving a written notice on the workers and the
Ministry of Labor and Employment at least one (1) month before
the intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the worker
affected thereby shall be entitled to a separation pay equivalent
to at least his one (1) month pay or to at least one (1) month pay
for every year of service, whichever is higher. In case of
retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due
to serious business losses or financial reverses, the separation pay
shall be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher. A
fraction of at least six (6) months shall be considered one (1)
whole year.

Requisites for breach of trust: Just cause dismissal Authorized cause dismissal
1. Employee holds a position of trust and confidence; Initiated by the employee Initiated by the employer
2. There is breach of trust resulting to loss of GR: No separation pay GR: There must be
confidence; XPN: There must be separation pay.
3. Act complained of must be work-related to show that separation pay for causes XPN: Closure of business
the employee is unfit to continue for the employer. other than serious due to serious economic
misconduct. reverses or losses.
Guidelines for the doctrine of loss of confidence The penalty imposed to the The penalty imposed to the
1. Loss of confidence should not be simulated; employer for non-observance employer for non-observance
2. It should not be used as a subterfuge for causes which with due process is tempered. with due process is stiffer.
are improper, illegal or unjustified; Amount of damages: P30,000 Amount of damages: P50,000
3. Loss of confidence may not be arbitrarily asserted in
the face of overwhelming evidence to the contrary; AUTHORZED CAUSES FOR DISMISSAL
4. It must be genuine, not a mere afterthought to justify
the earlier action taken in bad faith; and I. Introduction of labor-saving devices (Automation)
5. It must be substantial and not arbitrary, whimsical,
capricious or concocted. Automation – management prerogative of replacing manpower
with machine power in order to effect more economy and
greater efficiency in the method of production.
 University of Santo Tomas
Faculty of Civil Law
Requirements:
1. Written notice to the employee and to the DOLE at
least 1 month before the intended date of termination;
2. Separation pay of at least 1 month pay for every year
of service;
3. Good faith in the discharge of employees; and
4. Reasonable criteria to be used in implementing
automation.
II. Redundancy
Redundancy – where the services of an employee are in excess
of what is reasonably demanded by the actual requirement of
the enterprise.
Redundant position – it is superfluous, as a result of:
1. Over-hiring;
2. Decreased volume of business;
3. Dropping of a particular product line or service
activity.
Requirements:
1. Written notice to the employee and to the DOLE at
least 1 month before the intended date of termination;
2. Separation pay equivalent to at least 1 month pay or
at least 1 month for every year of service, whichever
is higher;
3. Good faith in abolishing the redundant positions; and
4. Fair and reasonable criteria to be used in determining
what positions are to be declared redundant and
accordingly abolished.
III. Retrenchment (Downsizing)
Retrenchment – reduction of personnel usually due to poor
financial returns as to cut down on costs of operations in terms
of salaries and wages to prevent bankruptcy of the company.
Requirements:
1. Written notice to the employee and to the DOLE at
least 1 month before the intended date of termination;
2. Separation pay of ½ month pay for every year of
service;
3. Good faith in effecting retrenchment;
4. Proof of the alleged financial losses suffered by the
company be produced;
5. To show that the employer first instituted cost
reduction measures in other areas of production
before undertaking retrenchment as a last resort; and
6. Fair and reasonable criteria be used in carrying out
the retrenchment program, such as:
a. Less-preferred status;
b. Efficiency rating;
c. Seniority
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General standards of retrenchment
1. Losses expected are substantial not merely de
minimis;
2. The apprehended substantial losses are reasonable
imminent can be perceived objectively and in good
faith by the employer;
3. Due to far-reaching nature of retrenchment, it is
reasonably necessary to prevent expected losses; and
4. Expected or actual losses must be proved by
sufficient evidence.
IV. Closure or cessation of business
1. Partial closure
Requirements:
1. Written notice to the employee and to the DOLE
at least 1 month before the intended date of
termination;
2. Separation pay equivalent to at least ½ month
pay for every year of service.
3. Cessation of business is bona fide in character
2. Total closure due to serious economic reverses or
losses
Requirements:
1. Written notice to the employee and to the DOLE
at least 1 month before the intended date of
termination;
2. Cessation of business is due to serious economic
reverses or losses.
Art. 299. Disease as ground for termination. – An employer may
terminate the services of an employee who has been found to be
suffering from any disease and whose continued employment is
prohibited by law or is prejudicial to his health as well as to the
health of his co-employees: Provided, That he is paid separation
pay equivalent to at least one (1) month salary or to one-half (1/2)
month salary for every year of service, whichever is greater, a
fraction of at least six (6) months being considered as one (1)
whole year.
Termination due to disease
Where an employee suffers from a disease and his
continued employment is prohibited by law or prejudicial to
his health or the health of his co-employees, the employer
shall terminate his services, provided that:
1. There is certification by a competent public authority;
2. The disease cannot be cured within a period of 6
months even with proper medical treatment.
But if it can be cured within 6 months, the employer may
just ask the employee to take LOA. Upon restoration of his
normal health, the employer shall immediately reinstate such
employee to his former position.
 University of Santo Tomas
Faculty of Civil Law
Art. 300. Termination by employee. – (a) An employee may
terminate without just cause the employee-employer relationship
by serving a written notice on the employer at least one (1) month
in advance. The employer upon whom no such notice was served
may hold the employee liable for damages.
(b) An employee may put an end to the relationship
without serving any notice on the employer for any of the
following just causes:
1. Serious insult by the employer or his representative
on the honor and person of the employee;
2. Inhuman and unbearable treatment accorded the
employee by the employer or his representative;
3. Commission of a crime or offense by the employer or
his representative against the person of the employee or any of
the immediate members of his family; and
4. Other causes analogous to any of the foregoing.
Termination of employment relationship by employee
An employee may terminate without just cause,
employment relationship by serving notice upon the employer
at least 1 month in advance; otherwise, it will make him liable
for damages.
The notice requirement may be dispensed with if the
employment is terminated for a just cause.
JUST CAUSES FOR TERMINATING EMPLOYMENT
RELATIONSHIP BY EMPLOYEE
I. Serious insult by the employer or his
representatives on the honor and person of the
employee
Serious insult – implies malice, or denotes ill-will or an intent
to injure or to offend, to wound the feeling of another.
II. Inhuman and unbearable treatment accorded the
employee by the employer or his representatives
Any conduct which will affect the mind and body or
where continuance of it involves the life or health of the
employee will be considered a just cause for terminating
employment by the employee.
III. Commission of a crime or offense by the employer
or his representatives against the person of the
employee or any immediate member of his family
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IV. Other causes analogous to the foregoing
Examples:
1. Undue delay in the payment of employee’s
salaries or wages;
2. Violation of employment terms and conditions;
3. Insanitary or unhygienic working conditions.
Abandonment
Abandonment – deliberate and unjustified refusal of an
employee to resume his employment; just cause for
termination of employment.
Requirements:
1. The failure to report for work or absence without
valid or justifiable reason; and
2. A clear intention to sever employer-employee
relationship.
2 notices required in abandonment
1. Pre-notice (Notice of formal charge) – directing the
employee why he should not be declared as having
abandoned his job;
2. Post-notice (Notice of dismissal) – to inform of the
employer’s decision to dismiss him on the ground of
abandonment.
NOTE: Hearing is not required in abandonment for the
reason that he deliberately intended not to report for work,
without any notice or approved LOA.
Resignation
Resignation – voluntary act of an employee who finds himself
in a situation where he believes that personal reasons cannot
be sacrificed in favor of the exigency of the service, then he
has no other choice but to dissociate himself from his
employment.
Requirements:
1. Resignation must be in writing to be effective
XPN: Can be made verbally as long as there is
absolute intention to relinquish a position.
2. Must be accepted and approved by the employer.
NOTE: Withdrawal of resignation – requires the
consent of the employer, once it is accepted and
approved.
NOTE: A resigned employee who desires to take back his
former job has to reapply as has the status of a stranger who
cannot unilaterally demand an appointment.
 University of Santo Tomas
Faculty of Civil Law
NOTE: An employee has an obligation to reimburse training
costs due to premature resignation.
Constructive Dismissal (Dismissal in Disguise)
Constructive Dismissal – where an employee quits or resigns
because continued employment has become impossible,
unreasonable or unlikely.
Filing of certificate of candidacy by an employee of a
GOCC
It constitutes as a lawful cause for terminating
employment relationship.
Art. 301. When employment not deemed terminated. – The bona-
fide suspension of the operation of a business or undertaking for
a period not exceeding six (6) months, or the fulfillment by the
employee of a military or civic duty shall not terminate
employment. In all such cases, the employer shall reinstate the
employee to his former position without loss of seniority rights if
he indicates his desire to resume his work not later than one (1)
month from the resumption of operations of his employer or
from his relief from the military or civic duty.
Temporary suspension of operation
1. The bona fide suspension of operation of a business
for a period not exceeding 6 months does not
terminate employment relationship.
2. Where the suspension extends beyond the 6-monthe
period, employment relationship is deemed
terminated.
3. If the suspension is used as a subterfuge to defeat the
rights of the employees, employment relationship is
not terminated although it lasted beyond 6 months.
Military civic or duty
It does not terminate employment relationship even
such duty exceeds 6 months.
TITLE II
RETIREMENT FROM THE SERVICE
Art. 302. Retirement. – Any employee may be retired upon
reaching the retirement age established in the collective
bargaining agreement or other applicable employment contract.
In case of retirement, the employee shall be entitled to
receive such retirement benefits as he may have earned under
existing laws and any collective bargaining agreement and other
agreements: Provided, however, That an employee’s retirement
benefits under any collective bargaining and other agreements
shall not be less than those provided therein.
In the absence of a retirement plan or agreement
providing for retirement benefits of employees in the
establishment, an employee upon reaching the age of sixty (60)
years or more, but not beyond sixty-five (65) years which is
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A.Y. 2017 – 2018, 1st Semester (4A) | 82
hereby declared the compulsory retirement age, who has served
at least five (5) years in the said establishment, may retire and
shall be entitled to retirement pay equivalent to at least one-half
(1/2) month salary for every year of service, a fraction of at least
six (6) months being considered as one whole year.
Unless the parties provide for broader inclusions, the
term ‘one-half (1/2) month salary’ shall mean fifteen (15) days
plus one-twelfth (1/12) of the 13th month pay and the cash
equivalent of not more than five (5) days of service incentive
leaves.
An underground mining employee upon reaching the
age of fifty (50) years or more, but not beyond sixty (60) years
which is hereby declared the compulsory retirement age for
underground mine workers, who has served at least five (5) years
as underground mine worker, may retire and shall be entitled to
all the retirement benefits provided for in this Article.
Retail, service and agricultural establishments or
operations employing not more than ten (10) employees or
workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful
and subject to the penal provisions under Article 28892 of this
Code.
Nothing in this Article shall deprive any employee of
benefits to which he may be entitled under existing laws or
company policies or practices.
Retirement
It is the result of a bilateral act of the parties, a
voluntary agreement between the employer and the employees
whereby the latter, after reaching a certain age, agrees and/or
consents to severe his employment with the former.
Retirement age
1. Optional – 60 years, if he has served for at least 5
years in the establishment (in the absence of a
retirement plan or other applicable agreement for
retirement benefits)
2. Compulsory – 65 years, if he has served for at least 5
years in the establishment (in the absence of a
retirement plan or other applicable agreement for
retirement benefits)
NOTE: An underground mining employee
1. Optional – 50 years
2. Compulsory – 60 years
Extension of service
Upon retirement of an employee, whether optional or
compulsory, his services may be continued or extended on
92
Renumbered as Art. 303.
 University of Santo Tomas
Faculty of Civil Law
case to case basis upon agreement of the employer and the
employee.
Retirement pay
In the absence of a retirement plan or other applicable
agreement for retirement benefits, a retired employee shall be
entitled to retirement pay equivalent to at least:
1. ½ month salary for every year of service – 15
days;
2. 1/12 of the 13th month pay;
3. The cash equivalent of not more than 5 days of
service incentive leaves; and
4. Other benefits as agreed upon by the employer
and employee.
TOTAL: 22.5 days
Exemptions
1. Employees of national government;
2. Employees of retail, service, and agricultural
establishment or operations regularly employing not
more than 10 employees
Types of retirement plans
1. Compulsory and contributory
2. By agreement between the employer and employee
3. Voluntarily given by employer
Early retirement plan pursuant to CBA – valid and binding.
NOTE: The company’s retirement plan which prohibits the
award of retirement benefits to an employee dismissed for a
just cause is a proscription the binds the parties to it, thus,
valid.93
Gratuity pay
It is paid to the beneficiary for the past service or
favor rendered purely out of the generosity of the giver or
grantor. It is separate and distinct from retirement benefits.
BOOK VII
TRANSITORY AND FINAL PROVISIONS
TITLE I
PENAL PROVISIONS AND LIABILITIES
Art. 303. Penalties. –Except as otherwise provided in this Code,
or unless the acts complained of hinge on a question of
interpretation or implementation of ambiguous provisions of an
existing collective bargaining agreement, any violation of the
provisions of this Code declared to be unlawful or penal in nature
shall be punished with a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Ten Thousand Pesos (P10,000.00) or
imprisonment of not less than three months nor more than three
93
SMC vs. Lao, 384 CSRA 504.
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years, or both such fine and imprisonment at the discretion of the
court.
In addition to such penalty, any alien found guilty shall
be summarily deported upon completion of service of sentence.
Any provision of law to the contrary notwithstanding,
any criminal offense punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or City Courts and the
Courts of First Instance.
Art. 304. Who are liable when committed by other than natural
person. – If the offense is committed by a corporation, trust, firm,
partnership, association or any other entity, the penalty shall be
imposed upon the guilty officer or officers of such corporation,
trust, firm, partnership, association or entity.
TITLE II
PRESCRIPTION OF OFFENSES AND CLAIMS
Art. 305. Offenses. – Offenses penalized under this Code and the
rules and regulations issued pursuant thereto shall prescribe in
three (3) years.
All unfair labor practice arising from Book V shall be
filed with the appropriate agency within one (1) year from
accrual of such unfair labor practice; otherwise, they shall be
forever barred.
Art. 306. Money claims – All money claims arising from
employer-employee relations accruing during the effectivity of
this Code shall be filed within three (3) years from the time the
cause of action accrued; otherwise they shall be forever barred.
All money claims accruing prior to the effectivity of this
Code shall be filed with the appropriate entities established
under this Code within one (1) year from the date of effectivity,
and shall be processed or determined in accordance with the
implementing rules and regulations of the Code; otherwise, they
shall be forever barred.
Workmen’s compensation claims accruing prior to the
effectivity of this Code and during the period from November 1,
1974 up to December 31, 1974, shall be filed with the appropriate
regional offices of the Department of Labor not later than March
31, 1975; otherwise, they shall forever be barred. The claims shall
be processed and adjudicated in accordance with the law and
rules at the time their causes of action accrued.
Prescriptive Periods
Purely money claims 3 years
Incremental proceeds out of 3 years
tuition fee hikes
ECC 3 years
Union funds/fees 3 years
Criminal cases
GR 3 years
XPN:
1. ULP 1 year
2. Simple illegal 5 years
recruitment
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Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester (4A) | 84

3. Syndicated illegal 20 years them by Act No. 3428, as amended, otherwise known as the
recruitment Workmen’s Compensation Act until March 31, 1976. Likewise,
4. Large-scale illegal 20 years the term of office of incumbent members of the Workmen’s
Compensation Commission, including its Chairman and any
recruitment
commissioner deemed retired as of December 31, 1975, as well as
Illegal dismissal 4 years the present employees and officials of the Bureau of Workmen’s
Reinstatement 4 years Compensation, Workmen’s Compensation Commission and the
Workmen’s Compensation Units shall continue up to that date.
NOTE: Unreasonably delays Laches Thereafter, said offices shall be considered abolished and all
employee’s claim for officials and personnel thereof shall be transferred to and
reinstatement mandatorily absorbed by the Department of Labor, subject to
Social Security Claims 10 years Presidential Decree No. 6, Letters of Instructions Nos. 14 and 14-
A and the Civil Service Law and rules.
Non-payment of premiums 20 years
(period to collect the same by Such amount as may be necessary to cover the
operational expenses of the Bureau of Workmen’s Compensation
the government)
and the Workmen’s Compensation Units, including the salaries
GSIS claims 4 years of incumbent personnel for the period up to March 31, 1976 shall
XPN: be appropriated from the unprogrammed funds of the
1. Retirement claim Imprescriptible Department of Labor.
2. Life insurance claim Imprescriptible
Art. 312. Continuation of insurance policies and indemnity
bonds. – All workmen’s compensation insurance policies and
Art. 307. Institution of money claims. – Money claims specified in indemnity bonds for self-insured employers existing upon the
the immediately preceding Article shall be filed before the effectivity of this Code shall remain in force and effect until the
appropriate entity independently of the criminal action that may expiration dates of such policies or the lapse of the period of such
be instituted in the proper courts. bonds, as the case may be, but in no case beyond December 31,
1974. Claims may be filed against the insurance carriers and/or
Pending the final determination of the merits of money self-insured employers for causes of action which accrued during
claims filed with the appropriate entity, no civil action arising the existence of said policies or authority to self-insure.
from the same cause of action shall be filed with any court. This
provision shall not apply to employees compensation case which Art. 313. Abolition of the Court of Industrial Relations and the
shall be processed and determined strictly in accordance with the National Labor Relations Commission. – The Court of Industrial
pertinent provisions of this Code. Relations and the National Labor Relations Commission
established under Presidential Decree No. 21 are hereby
TITLE III abolished. All unexpended funds, properties, equipment and
TRANSITORY AND FINAL PROVISIONS records of the Court of Industrial Relations, and such of its
personnel as may be necessary, are hereby transferred to the
Art. 308. Application of law enacted prior to this Code. – All Commission and to its regional branches. All unexpended funds,
actions or claims accruing prior to the effectivity of this Code properties and equipment of the National Labor Relations
shall be determined in accordance with the laws in force at the Commission established under Presidential Decree No. 21 are
time of their accrual. transferred to the Bureau of Labor Relations. Personnel not
absorbed by or transferred to the Commission shall enjoy
Art. 309. Secretary of Labor to initiate integration of maternity benefits granted under existing laws.
leave benefits. – Within six (6) months after this Code takes
effect, the Secretary of Labor shall initiate such measures as may
Art. 314. Disposition of pending cases. – All cases pending before
be necessary for the integration of maternity leave benefits into
the Court of Industrial Relations and the National Labor
the Social Security System, in the case of private employment,
Relations Commission established under Presidential Decree No.
and the Government Service Insurance System, in the case of
21 on the date of effectivity of this Code shall be transferred to
public employment.
and processed by the corresponding labor relations divisions or
the National Labor Relations Commission created under this
Art. 310. Funding of the Overseas Employment Development
Code having cognizance of the same in accordance with the
Board and the National Seamen’s Board referred to in Articles
procedure laid down herein and its implementing rules and
17 and 20, respectively, of this Code shall initially be funded out
regulations. Cases on labor relations on appeal with the Secretary
of the unprogrammed fund of the Department of Labor and the
of Labor or the Office of the President of the Philippines as of the
National Manpower and Youth Council.
date of effectivity of this Code shall remain under their respective
jurisdictions and shall be decided in accordance with the rules
Art. 311. Termination of the Workmen’s Compensation and regulations in force at the time of appeal.
Program. – The Bureau of Workmen’s Compensation,
Workmen’s Compensation Commission, and Workmen’s
All workmen’s compensation cases pending before the
Compensation Units in the regional offices of the Department of
Workmen’s Compensation Units in the regional offices of the
Labor shall continue to exercise the functions and the respective
Department of Labor and those pending before the Workmen’s
jurisdictions over workmen’s compensation cases vested upon
 University of Santo Tomas Labor Law Review
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Compensation Commission as of March 31, 1975, shall be

processed and adjudicated in accordance with the law, rules and
procedure existing prior to the effectivity of the Employees
Compensation and State Insurance Fund.

Art. 315. Personnel whose services are terminated. – Personnel of

agencies or any of their subordinate units whose services are
terminated as a result of the implementation of this Code shall
enjoy the rights and protection provided in Sections 5 and 6 of
Republic Act numbered fifty-four hundred and thirty five and
such other pertinent laws, rules and regulations. In any case, no
lay-off shall be effected until funds to cover the gratuity and/or
retirement benefits of those laid off are duly certified as
available.

Art. 316. Separability provisions. – If any provision or part of

this Code, or the application thereof to any person or
circumstance, is held invalid, the remainder of this code, or the
application of such provision or part to other persons or
circumstances, shall not be affected thereby.

Art. 317. Repealing clause. – All labor laws not adopted as part of
this Code either directly or by reference are hereby repealed. All
provisions of existing laws, orders, decrees, rules and regulations
inconsistent herewith are likewise repealed.