LABOR LAW I

COURSE SYLLABUS
(Gefer R. Mancol)

PART I
FUNDAMENTAL PRINCIPLES AND CONCEPTS

1. LABOR LAW IN GENERAL

1.1. DEFINITION AND CLASSIFICATION

▪ Maternity Children’s Hospital v. Secretary of Labor, G.R. No. 78909, June 30, 1989, 174
SCRA 632 (1989)
▪ Peñaranda v. Baganga Plywood Corporation, G.R. No. 159577, May 3, 2006, 489 SCRA
94 (2006)
▪ Batong Buhay Goldmines, Inc. v. Dela Serna, G.R. No. 86963, August 6, 1999, 312
SCRA 22 (1999)

2. LEGAL BASIS

1.1. POLICE POWER

▪ People v. Vera Reyes, G.R. No. L-45748, April 5, 1939
▪ Philippine Association of Service Exporters, Inc. v. Drilon, G.R. No. 81958, June 30, 1988
▪ St. Luke’s Medical Center Employee’s Association-AFW (SLMCEA-AFW) v. NLRC, G.R.
No. 162053, March 7, 2007
▪ Serrano v. Gallant Maritime Services, Inc., G.R. No. 167614, March 24, 2009
▪ Magana v. CA, G.R. No. 174833, December 15, 2010

1.2. CONSTITUTION – Art. II, Secs. 2, 5, 9, 10, 11, 13, 14, 18 & 20; Art. III, Secs. 1, 4, 7, 8, 10, 16 &
18(2); Art. IX B, Sec. 2; Art. XII, Sec. 12; Art. XIII, Secs. 1, 2, 3, 13 & 14.

1.2.1. Social Justice Policy/Definition and Significance (Constitution, Art. XIII, Sec. 3; Labor Code,
Art. 4)
▪ Calalang v. Williams, G.R. No. 47800, Dec. 2, 1940
▪ Del Rosario v. De los Santos, G.R. Nos. L-20589-90, March 21, 1968
▪ De Vera v. NLRC, G.R. No. 93212, Nov. 22, 1990

1.2.2. Protection to labor

▪ Philippine Blooming Mills Employment Organization v. Philippine Blooming Mills Co., Inc.,
G.R. No. L-31195, June 5, 1973
▪ Philippine Association of Service Exporters, Inc. v. Drilon, G.R. No. 81958, June 30, 1988
▪ Lopez v. MWSS, G.R. No. 154472, June 30, 2005

1.2.3. Level of protection to labor

▪ Fuji Television Network, Inc. v. Espiritu, G.R. No. 204944-45, Dec. 3, 2014
▪ Paredes v. Feed the Children Philippines, Inc., G.R. No. 184397, Sept. 9, 2015

1.2.4. Employment as property right

▪ Callanta v. Carnation Philippines, Inc., G.R. No. 70615, Oct. 28, 1986
▪ Alhambra Industries, Inc. v. NLRC, G.R. No. 106771, Nov. 18, 1994
▪ JMM Promotion and Management, Inc. v. CA, G.R. No. 120095, Aug. 5, 1996
▪ Gonzales v. NLRC, G.R. No. 125735, Aug. 26, 1999
▪ Asuncion v. NLRC, G.R. No. 129329, July 31, 2001
▪ F.F. Marine Corporation v. NLRC, G.R. No. 152039, April 8, 2005
▪ Sagales v. Rustan’s Commercial Corporation, G.R. No. 166554, Nov. 27, 2008
▪ Perez v. Philippine Telegraph and Telephone Company, G.R. No. 152048, April 7, 2009
▪ Polsotin, Jr. v. De Guia Enterprises, Inc., G.R. No. 172624, Dec. 5, 2011
▪ Montinola v. Philippine Airlines, G.R. No. 198656, Sept. 8, 2014
▪ Maula v. Ximex Delivery Express, Inc., G.R. No. 207838, Jan. 25, 2017

1.2.5. Due process requirements

▪ Ang Tibay v. CIR, G.R. No. L-46496, February 27, 1940, 59 Phil. 635 (1940)
▪ Air Manila, Inc. v. Balatbat, G.R. No. L-29064, April 29, 1971, 38 SCRA 489 (1971)
▪ Century Textile Mills, Inc. v. NLRC, G.R. No. 77859, May 25, 1988, 161 SCRA 528
(1988)
▪ Singson v. NLRC, G.R. No. 122389, June 19, 1997
▪ Agabon v. NLRC, G.R. No. 158693, Nov. 17, 2004
▪ Jaka Food Processing Corporation v. Pacot, G.R. No. 151378, March 28, 2005
▪ King of Kings Transport, Inc. v. Mamac, G.R. No. 166208, June 29, 2007

1
 ▪ Perez v. Philippine Telegraph and Telephone Company, G.R. No. 152048, April 7, 2009

1.2.6. Sympathy to labor

▪ Cebu Royal Plant v. Deputy Minister of Labor, G.R. No. L-58639, August 12, 1987, 153
SCRA 38 (1987)
▪ Ditan v. POEA, G.R. No. 79560, Dec. 3, 1990
▪ Philippine Airlines, Inc. v. Santos, Jr., G.R. No. 77875, Feb. 4, 1993
▪ Prieto v. NLRC, G.R. No. 93699, Sept. 10, 1993

1.2.7. No discrimination policy (Labor Code, Arts. 3, 133 [135], 138 [140] and 259 [248]; RA
10911 [Anti-Age Discrimination in Employment Act], RA 7277 [Magna Carta for Disabled
Persons], RA 9710 [Magna Carta on Women] and RA 11166 [Philippine HIV and AIDS Policy
Act])
▪ National Federation of Labor Unions (NAFLU) v. NLRC, G.R. No. 90739, October 3, 1991
▪ Philippine Telegraph and Telephone Company v. NLRC, G.R. No. 118978, May 23, 1997
▪ International School Alliance of Educators (ISAE) v. Quisumbing, G.R. No. 128845, June
1, 2000
▪ Capin-Cadiz v. Brent Hospital and Colleges, Inc., G.R. No. 187417, Feb. 24, 2016

1.2.8. Construction in favor of labor (Labor Code, Art. 4; Civil Code, Art. 1702)
▪ International Travel Service v. Minister of Labor, G.R. No. 49526, Aug. 13, 1990
▪ Villanueva v. NLRC, G.R. No. 127448, Sept. 10, 1998
▪ Centro Project Manpower Services Corporation v. Naluis, G.R. No. 160123, June 17,
2015
▪ Leoncio v. MST Marine Services (Phils.), Inc., G.R. No. 230357, Dec. 6, 2017
▪ Innodata Knowledge Services, Inc. v. Inting, G.R. No. 211892, Dec. 6, 2017

1.2.9. Justice is for the deserving/Social justice cannot countenance wrongdoing

▪ Sosito v. Aguinaldo Development Corporation, G.R. No. L-48926, Dec. 14, 1987
▪ Philippine Long Distance Telephone Company v. NLRC, G.R. No. 80609, Aug. 23, 1988
▪ Jamer v. NLRC, G.R. No. 112630, Sept. 5, 1997
▪ Agabon v. NLRC, G.R. No. 158693, Nov. 17, 2004
▪ Philippine Long Distance and Telephone Company, Inc. v. Balbastro, G.R. No. 157202,
Mar. 28, 2007
▪ Guerrero v. Philippine Transmarine Carriers, Inc., G.R. No. 222523, Oct. 3, 2018

1.2.10. Protected rights of employer/Management Prerogatives

▪ Pampanga Bus Company, Inc. v. Pambusco Employees' Union, Inc., G.R. No. 46739,
Sept. 23, 1939
▪ Asian Alcohol Corporation v. NLRC, G.R. No. 131108, March 25, 1999
▪ Mendoza v. Rural Bank of Lucban, G.R. No. 155421, July 7, 2004
▪ Smart Communications, Inc. v. Astorga, G.R. No. 148132, Jan. 28, 2008

1.3 CIVIL CODE – Arts. 1700, 1701, 1702 & 1703

1.3.1. Labor contracts imbued with public interest (Art. 1700)

▪ Marcopper Mining Corporation v. NLRC, G.R. No. 103525, March 29, 1996
▪ PNCC Skyway Traffic Management and Security Division Workers Organization
(PSTMSDWO) v. PNCC Skyway Corporation, G.R. No. 171231, Feb. 17, 2010
▪ Innodata Knowledge Services, Inc. v. Inting, G.R. No. 211892, Dec. 6, 2017
▪ Gopio v. Bautista, G.R. No. 205953, June 6, 2018

1.3.2. Prohibition on acts of oppression by either capital or labor (Art. 1701)

▪ Quisaba v. Sta. Ines-Melale Veneer & Plywood, Inc., G.R. No. L-38088, Aug. 30, 1974
▪ Asia World Recruitment Inc. v. NLRC, G.R. No. 113363, Aug. 24, 1999
▪ Philippine Commercial International Bank (Now BDO Unibank, Inc.) v. Gomez, G.R. No.
199601, Nov. 23, 2015

1.3.3. Construction in favor of safety and decent living of laborer (Art. 1702, in relation to Labor
Code, Art. 4)
▪ International Travel Service v. Minister of Labor, G.R. No. 49526, Aug. 13, 1990
▪ Villanueva v. NLRC, G.R. No. 127448, Sept. 10, 1998
▪ Centro Project Manpower Services Corporation v. Naluis, G.R. No. 160123, June 17,
2015
▪ Leoncio v. MST Marine Services (Phils.), Inc., G.R. No. 230357, Dec. 6, 2017
▪ Innodata Knowledge Services, Inc. v. Inting, G.R. No. 211892, Dec. 6, 2017

2
 1.3.4. Involuntary servitude (Art. 1703, in relation to Art. 23[14], Bill of Rights, Sec. 18[2], RPC,
Arts. 272-274, 286, and RA 9208 [Anti-Trafficking in Persons Act of 2003], as amended)
▪ Pampanga Bus Company, Inc. v. Pambusco Employees' Union, Inc., G.R. No. 46739,
Sept. 23, 1939
▪ People v. Nangcas, G.R. No. 218806, June 13, 2018

1.4. INTERNATIONAL CONVENTIONS – Constitution, Art. 2, Sec. 2; Universal Declaration of Human

Rights, Arts. 3, 7, 17, 22, 23, 24, & 25; International Covenant on Economic, Social and Cultural
Rights, Part III, Arts. 6, 7, 8, 9, & 10; International Covenant on Civil and Political Rights, Part II,
Arts. 3 & 8; ILO Declaration on Fundamental Principles and Rights at Work - 86th Session,
Geneva, June 1998; and Various ILO Conventions
▪ International School Alliance of Educators (ISAE) v. Quisumbing, G.R. No. 128845, June
1, 2000

2. SOURCES OF LABOR LAW

2.1. LABOR CODE OF THE PHILIPPINES (P.D NO. 442), AS AMENDED, AND ITS IMPLEMENTING
RULES AND REGULATIONS (IRR)

2.1.1. Name of Decree (Labor Code, Art. 1)

2.1.2. Date of Effectivity (Labor Code, Art. 2)

2.1.3. Declaration of Basic Policy (Labor Code, Art. 3; Constitution, Art. XIII, Sec. 3)
▪ Calalang v. Williams, G.R. No. 47800, Dec. 2, 1940
▪ Del Rosario v. De los Santos, G.R. Nos. L-20589-90, March 21, 1968
▪ De Vera v. NLRC, G.R. No. 93212, Nov. 22, 1990

2.1.4. Construction in Favor of Labor (Labor Code, Art. 4, Civil Code, Art. 1702)
▪ International Travel Service v. Minister of Labor, G.R. No. 49526, Aug. 13, 1990
▪ Villanueva v. NLRC, G.R. No. 127448, Sept. 10, 1998
▪ Centro Project Manpower Services Corporation v. Naluis, G.R. No. 160123, June 17,
2015
▪ Leoncio v. MST Marine Services (Phils.), Inc., G.R. No. 230357, Dec. 6, 2017
▪ Innodata Knowledge Services, Inc. v. Inting, G.R. No. 211892, Dec. 6, 2017

2.1.5. Rules and Regulations (Labor Code, Art. 5)

▪ Insular Bank of Asia and America Employees' Union (IBAAEU) v. Inciong, G.R. No. L-
52415, Oct. 23, 1984
▪ CBTC Employees Union v. Clave, G.R. No. L-49582, Jan. 7, 1986

2.1.6. Applicability (Labor Code, Art. 6; Constitution, Art. IX-B, Sec. 2[1])
▪ National Service Corporation (NASECO) v. NLRC, G.R. No. 69870, Nov. 29, 1988
▪ Lumanta v. NLRC, G.R. No. 82819, Feb. 8, 1989
▪ International Catholic Immigration Commission v. Calleja, G.R. No. 85750, Sept. 28,
1990, 190 SCRA 130 (1990)
▪ Millares v. NLRC, G.R. No. 110524, July 29, 2002, 385 SCRA 306 (2002)
▪ Light Rail Transit Authority v. Venus, Jr., G.R. No. 163782, March 24, 2006

2.1.7. Enforcement and Sanctions (Labor Code, Arts. 128, 129, 224 [217] & 303 [288]–307 [292];
Constitution, Art. III, Secs. 11 & 16)

2.2. CONTRACT – Civil Code, Arts. 1305-1306

▪ Kasapian Ng Malayang Manggagawa Sa Coca-Cola (KASAMMA-CCO)-CFW Local 245
v. CA, G.R. No. 159828, April 19, 2006
▪ Centro Project Manpower Services Corporation v. Naluis, G.R. No. 160123, June 17,
2015
▪ Sagun v. ANZ Global Services and Operations (Manila), Inc., G.R. No. 220399, Aug. 22,
2016
▪ Gopio v. Bautista, G.R. No. 205953, June 6, 2018

2.3. COLLECTIVE BARGAINING AGREEMENT

▪ DOLE Philippines, Inc. v. Pawis ng Makabayang Obrero (PAMAO-NFL), G.R. No.
146650, Jan. 13, 2003, 395 SCRA 112 (2003)
▪ Bank of the Philippine Islands v. BPI Employees Union-Davao Chapter-Federation of
Unions in BPI Unibank, G.R. No. 164301, Aug. 10, 2010
▪ Supreme Steel Corporation v. Nagkakaisang Manggagawa Ng Supreme Independent
Union (NMS-IND-APL), G.R. No. 185556, March 28, 2011

3
 ▪ Goya, Inc. v. Goya, Inc. Employees Union-FFW, G.R. No. 170054, Jan. 21, 2013
▪ Hongkong Bank Independent Labor Union (HBILU) v. Hongkong and Shanghai Banking
Corporation Limited, G.R. No. 218390, Feb. 28, 2018

2.4. COMPANY PRACTICE

▪ Pag-Asa Steel Works, Inc. v. CA, G.R. No. 166647, March 31, 2006, 486 SCRA 475
(2006)
▪ Metropolitan Bank and Trust Company v. NLRC, G.R. No. 152928, June 18, 2009
▪ Central Azucarera de Tarlac v. Central Azucarera de Tarlac Labor Union-NLU, G.R. No.
188949, July 26, 2010
▪ Societe Internationale De Telecommunications Aeronautiques v. Huliganga, G.R. No.
215504, Aug. 20, 2018

2.5. COMPANY POLICY

▪ GTE Directories Corporation v. Sanchez, G.R. No. 76219, May 27, 1991
▪ China Banking Corporation v. Borromeo, G.R. No. 156515, October 19, 2004, 440 SCRA
621 (2004)
▪ Kimberly-Clark Philippines, Inc. v. Dimayuga, G.R. No. 177705, Sept. 18, 2009

3. EMPLOYMENT RELATIONSHIP

3.1. DEFINITION OF EMPLOYER & EMPLOYEE (Labor Code, Arts. 97[a][b][c], 173 [167] [f][g][h] &
219 [212] [e][f])

3.2. TESTS

3.1.1. Four-fold test

▪ Viaña v. Al-Lagadan, G.R. No. L-8967, May 31, 1956
▪ Paguio v. NLRC, G.R. No. 147816, May 9, 2003
▪ Sonza v. ABS-CBN Broadcasting Corporation, G.R. No. 138051, June 10, 2004
▪ Chavez v. NLRC, G.R. No. 146530, Jan. 17, 2005
▪ Television and Production Exponents, Inc. v. Servaña, G.R. No. 167648, Jan. 28, 2008
▪ Royal Homes Marketing Corporation v. Alcantara, G.R. No. 195190, July 28, 2014
▪ Alba v. Espinosa, G.R. No. 227734, Aug. 9, 2017
▪ Marsman & Company, Inc. v. Sta. Rita, G.R. No. 194765, April 23, 2018

3.1.2. Two-tiered test

• Francisco v. NLRC, G.R. No. 170087, Aug. 31, 2006
• Valeroso v. Skycable Corporation, G.R. No. 202015, July 13, 2016

3.1.3. Control Test

▪ Almirez v. Infinite Loop Technology Corporation, G.R. No. 162401, Jan. 31, 2006
▪ Orozco v. CA, G.R. No. 155207, Aug. 13, 2008
▪ Gapayao v. Fulo, G.R. No. 193493, June 13, 2013
▪ Felicilda v. Uy, G.R. No. 221241, Sept. 14, 2016

3.1.4. Economic Reality Test

▪ Sevilla v. CA, G.R. Nos. L-41182-3, April 15, 1988, 160 SCRA 171 (1988)
▪ Francisco v. NLRC, G.R. No. 170087, Aug. 31, 2006
▪ Reyes v. Glaucoma Research Foundation, Inc., G.R. No. 189255, June 17, 2015

3.2. CONTRACTING AND SUB-CONTRACTING ARRANGEMENTS (Labor Code, Arts. 106-109;

DOLE DO 174, Series of 2017 [Formerly DO 18-A [2011] & DO 18-02 [2002])

3.2.1. Management function

▪ Manila Electric Company v. Quisumbing, G.R. No. 127598, Feb. 22, 2000
▪ Bankard, Inc. v. NLRC, G.R. No. 171664, March 6, 2013

3.2.2. Contractor, contracting or subcontracting; its requirements, duties and responsibilities (DO
174, Secs. 3[c][d], 4, 8, 14-22, 27-29 & 32)
▪ Baguio v. NLRC, G.R. Nos. 79004-08, October 4, 1991
▪ Neri v. NLRC, G.R. Nos. 97008-09, July 23, 1993
▪ Coca-Cola Bottlers Phils., Inc. v. NLRC, G.R. No.120466, May 17, 1999, 307 SCRA 131
(1999)
▪ Mago v. Sun Power Manufacturing Limited, G.R. No. 210961, Jan. 24, 2018
▪ San Miguel Foods, Inc. v. Rivera, G.R. No. 220103, Jan. 31, 2018

4
 3.2.3. Absence of control indicative of independent contractorship; control test merely calls for the
existence of the right to control, and not necessarily the exercise thereof
▪ AFP Mutual Benefit Association, Inc. v. NLRC, G.R. No. 102199, Jan. 28, 1997
▪ Gapayao v. Fulo, G.R. No. 193493, June 13, 2013
▪ Felicilda v. Uy, G.R. No. 221241, Sept. 14, 2016

3.2.4. Rights of contractor’s/subcontractor’s employees and required contracts (DO 174, Secs. 10
& 11); Effect of violations thereof – principal as direct employer pursuant to Art. 109 of the Labor
Code (DO 174, Sec. 12)
▪ Meralco Industrial Engineering Services Corporation v. NLRC, G.R. No. 145402, March
14, 2008
▪ GSIS v. NLRC, G.R. No. 180045, Nov. 17, 2010
▪ Vigilla v. Philippine College of Criminology Inc., G.R. No. 200094, June 10, 2013
▪ De Castro v. CA, G.R. No. 204261, Oct. 5, 2016

3.2.5. Indirect employer’s solidary liability in Art. 106[par. 2] of the Labor Code only refers to non-
payment of wages by contractor/subcontractor (Labor Code, Arts. 106[par. 2], 107 & 109; But see
DO 174, Sec. 9 on expanded solidary liability of indirect employer)
▪ Philippine Airlines, Inc. v. NLRC, G.R. No. 120506, Oct. 28, 1996, 263 SCRA 638
▪ Rosewood Processing, Inc. v. NLRC, G.R. Nos. 116476-84 , May 21, 1998
▪ Meralco Industrial Engineering Services Corporation v. NLRC, G.R. No. 145402, March
14, 2008
▪ GSIS v. NLRC, G.R. No. 180045, Nov. 17, 2010

3.2.6. Effect of termination of employment (DO 174, Sec. 13; Labor Code, Arts. 297-299) in
relation to fixed-period employments and nature of separation pay
▪ Convoy Marketing Corporation v. Albia, G.R. No. 194969, Oct. 7, 2015
▪ GSIS v. NLRC, G.R. No. 180045, Nov. 17, 2010

3.2.7. Grounds for cancellation of registration; Effects of cancellation of registration; Due process
requirements (DO 174, Secs. 23-26)

3.2.8. Labor-only contracting; Other illicit forms of employment arrangements; Principal as direct
employer (Labor Code, Art. 106[last sentence of last par.]; DO 174, Secs. 3[h], 5, 6 & 7)
▪ Baguio v. NLRC, G.R. Nos. 79004-08, October 4, 1991
▪ Neri v. NLRC, G.R. Nos. 97008-09, July 23, 1993
▪ Petron Corporation v. Caberte, G.R. No. 182255, June 15, 2015
▪ Allied Banking Corporation v. Calumpang, G.R. No. 219435, Jan. 17, 2018
▪ Mago v. Sun Power Manufacturing Limited, G.R. No. 210961, Jan. 24, 2018
▪ San Miguel Foods, Inc. v. Rivera, G.R. No. 220103, Jan. 31, 2018
▪ Consolidated Building Maintenance, Inc. v. Asprec, Jr., G.R. No. 217301, June 6, 2018
▪ Maricalum Mining Corporation v. Florentino, G.R. No. 221813, July 23, 2018
▪ Lingnam Restaurant v. Skills & Talent Employment Pool, Inc., G.R. No. 214667, Dec. 3,
2018

3.2.9. Solidary liability (Labor Code, Art. 109, in conjunction with Arts. 107 & 109; DO 174, Secs.
3[k], 9 & 13) in relation to legitimate job contracting and labor-only contracting
▪ Meralco Industrial Engineering Services Corporation v. NLRC, G.R. No. 145402, March
14, 2008
▪ GSIS v. NLRC, G.R. No. 180045, Nov. 17, 2010
▪ Vigilla v. Philippine College of Criminology Inc., G.R. No. 200094, June 10, 2013
▪ De Castro v. CA, G.R. No. 204261, Oct. 5, 2016

3.2.10. Right of reimbursement (Civil Code, Art. 1217)

▪ Eagle Security Agency, Inc. v. NLRC, G.R. No. 81314, May 18, 1989
▪ Mariveles Shipyard Corporation v. CA, G.R. No. 144134, Nov. 11, 2003

3.2.11. Compliance mechanisms (DO 174, Secs. 4, 14, 21, 22, 28, 30, 31, 32 & 34)

3.2.12. Industries not covered (DO 174, Sec. 33)

3.3. EMPLOYMENT CONTRACT – PERFECTION, COMMENCEMENT AND LIABILITY FOR

BREACH (Civil Code, Art. 1315; RA 8042, as amended, Sec. 10)
▪ Bright Maritime Corporation v. Fantonial, G.R. No. 165935, Feb. 8, 2012
▪ C.F. Sharp & Co. Inc. v. Pioneer Insurance & Surety Corporation, G.R. No. 179469, Feb.
15, 2012
▪ Stolt-Nielsen Transportation Group, Inc. v. Medequillo, Jr., G.R. No. 177478, Jan. 18,
2012

5
▪ Santiago v. CF Sharp Crew Management, Inc., G.R. No. 162419, July 10, 2007