LABOR REVIEW (FINALS REVIEWER)

1. Labor Legislations; Purpose (2006)

What is the purpose of labor legislation?

The purpose of labor legislation is to regulate the relations between employers and employees respecting the terms and conditions
of employment, either by providing for certain standards or for a legal framework within which better terms and conditions of work
could be negotiated through collective bargaining. It is intended to correct the injustices inherent in employer-employee
relationship.

2. Labor Standard vs. Labor Relation (2003)

LABOR RELATIONS law focuses its provisions on the collective aspects of employer-employee relationship. Its legal provisions deal
with employees organizing unions and how through these unions, employees are able to have collective bargaining with their
employer. On the other hand, LABOR STANDARDS law focuses on the terms and conditions of employment of employees as
individual employees or those legal provisions dealing with wages, hours of work and other terms and conditions of employment.

How do the provisions of the law on labor relations interrelate, if at all, with the provisions pertaining to labor standards?

There may be instances when the provisions of labor relations law may interrelate with provisions of labor standards law. Thus, a
CBA which is dealt with in labor relations law may have provisions that improves upon the minimum terms and conditions of
employment prescribed in labor standards law, like a CBA providing for a higher minimum wage, or for the computation of a higher
overtime pay or the payment of holiday pay not only for regular holidays but also for certain special holidays.

3. What is wage distortion? How do we resolve wage distortion?

A WAGE DISTORTION arises when an increase in prescribed wage rates results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate
the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation (Article
124, Labor Code of the Philippine)

How do we resolve wage distortion?

According to Art. 124 of the Labor Code, in case there is a collective bargaining agreement, a dispute arising from wage distortions
shall be resolved through the grievance machinery provided in the CBA, and if remains unresolved, through voluntary arbitration. In
case there is no collective bargaining agreement, the employers and workers shall endeavor to correct such distortions. Any dispute
arising therefrom shall be settled through the National Conciliation and Mediation Board and if it remains unresolved after ten (10)
calendar days of conciliations, then the dispute is referred to the appropriate branch of the National Labor Relations Commission

4. How does Labor Organization acquire legal personality?

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.

Who may join, assist and form labor organization?

All persons employed in: CIA-CREM

Commercial
Industrial
Agricultural
Charitable
Religious
Educational
Medical
The following are also included: AIRWIS (For mutual aid and protection)
Ambulant
Intermittent
Rural
Workers with no definite employers
Itinerant
Self-employed
Specific Coverage: STAGSIN
Supervisors
Terminated employees who are contesting their termination
Aliens with valid work permit
Government employees
Security Guards
I.N.K members
New Employees
5. Computation of holiday pay. (Case basis)

Wages; Computation; Holiday Pay (2002)

On orders of his superior, Efren, a high-speed sewing machine technician, worked on May 1, Labor Day. If he worked eight (6) hours
on that day, how much should he receive if his daily rate is P400.00?

Answer: Efren should receive P800.00. Art 92 of the Labor Code provides that the employer may require an employee to work on any
regular holiday but such employee shall be paid a compensation equivalent to twice his regular rate.

Wages; Computation; Holiday Pay; Overtime Pay (2002)

This year, National Heroes Day (August 25) falls on a Sunday. Sunday is the rest day of Bonifacio whose daily rate is P500.00.
A. If Bonifacio is required by his employer to work on that day for eight (8) hours, how much should he be paid for his work?
Explain.
B. If he works for ten (10) hours on that day, how much should he receive for his work? Explain.

A. For working on his scheduled rest day, according to Art 93(a), Bonifacio should be paid P500.00 (his daily rate) plus P150.00
(30% of his daily rate) = P650.00. This amount of P650.00 should be multiplied by 2 = P1 ,300.00. This is the amount that Bonifacio as
employee working on his scheduled rest day which is also a regular holiday, should receive. Art. 94(c) of the Labor Code provides that
an employee shall be paid a compensation equivalent to twice his regular rate for work on any regular holiday. The "regular rate" of
Bonifacio on May 1, 2002 is with an additional thirty percent because the day is also his scheduled rest day.

B. P1,300.00 which is the amount that Bonifacio is to receive for working on May 1, 2002 should be divided by 8 to determine his
hourly rate of P162.50. This hourly rate should be multiplied by 2 (the number of hours he worked overtime). Thus, the amount that
Bonifacio is entitled to receive for his overtime work on May 1, 2002 is P325.00.

Wages; Holiday Pay (2005)

During the open forum following your lecture before members of various unions affiliated with a labor federation, you were asked
the following questions (State your answers and your reasons therefor): (a) Araw ng Kagitingan and Good Friday are among the 10
paid regular holidays under Article 94 of the Labor Code. How much will an employee receive when both holidays fall on the same
day?

Answer: If unworked, the covered employees are entitled to at least 200% of their basic wage, because to do otherwise would
reduce the number of holidays under EO No. 203. If worked, the covered employees are entitled to compensation equivalent to at
least 300% of their basic wage because they are entitled to the payment not only of the two regular holidays, but also of their regular
wage, plus the premium thereof. (DOLE Explanatory Bulletin on Workers' Entitlement to Holiday Pay on 9 April 1993, Araw ng
Kagitingan and Good Friday)

6. Provisions pertaining to Kasambahay (RA 19361) (May isang batang inampon then kinuhang kasambahay)
SECTION 2. Coverage. – This Implementing Rules and Regulations (IRR) shall apply to all parties to an employment contract for the
services of the following Kasambahay, whether on a live-in or live-out arrangement, such as but not limited to:
(a) General househelp;
(b) Yaya;
(c) Cook;
(d) Gardener;
(e) Laundry person;
(f) Any person who regularly performs domestic work in one household on an occupational basis.

The following are not covered:

(a) Service providers;
b) Family drivers;
(c) Children under foster family arrangement; and
(d) Any other person who performs work occasionally or sporadically and not on an occupational basis.

7. Women workers; Discrimination against pregnant woman

The Labor Code expressly provides, that "It shall be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting
married a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage." (Art. 136)

It shall be unlawful for employer to discharge any woman employed by him who may be pregnant for the purpose of preventing
such woman from enjoying the benefits of section 7 of this Act or to discharge such woman while on leave on account of her
pregnancy of confinement (RA 679)
8. Visitorial power of the Secretary of Labor (Art. 128)

The visitorial grants to said DOLE officials, including labor and employment officers, access to employer's records and

premises at any time of the day or night whenever work is being undertaken therein, and the right to copy there from such records,

to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which

may aid in the enforcement of the Labor Code and of any labor law, wage order or rules and regulations issued pursuant thereto

(Art. 128 (a).

The enforcement power to issue compliance orders to give effect to the labor standards provisions of the Labor Code and

other labor legislation based on the findings of labor and employment officers or industrial safety engineers made in the course of

inspection, and to issue writs of execution to the appropriate authority for the enforcement of their orders, except in cases where

the employer contests the findings of the labor and employment officers and raises issues supported by documentary proofs which

were not considered in the course of inspection." (Art. 128 (b).

9. Jurisdiction of Labor Arbiter

1. unfair labor practices;
2. termination disputes;
3. cases accompanied with a claim for reinstatement, and 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 employer-employee relations:
5. cases arising from any violation of Article 264 of the Labor Code, including questions involving the legality of strikes and lockout;
and
6. except claims of Employees Compensation, Social Security. Medicare and maternity benefits, all other claims arising from
employer-employee relations including those 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

10. Computation of Retirement Benefits (Retirement Law) RA 7641

Qualification of employees subject to retirement pay

Employees who are covered by RA No. 7641 can have an optional or compulsory retirement.

Optional Retirement. — In the absence of a retirement plan or other applicable agreement providing for retirement benefits of
employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least
five (5) years in said establishment.

Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding sub-section, an
employee shall be retired upon reaching the age of sixty-five (65) years.

Upon retirement of an employee, whether optional or compulsory, his services may be continued or extended on a case to case basis
upon agreement of the employer and employee.

Service Requirement. — The minimum length of service in an establishment or with an employer of at least five (5) years required for
entitlement to retirement pay shall include authorized absences and vacations, regular holidays and mandatory fulfillment of a
military or civic duty.

Computation of retirement pay

A covered employee who retires pursuant to RA 7641 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.

The law is explicit that “one-half 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 service incentive leaves” unless the parties provide for broader inclusions. Evidently,
the law expanded the concept of “one-half month salary” from the usual one-month salary divided by two.

In reckoning the length of service, the period of employment with the same employer before the effectivity date of the law on
January 7, 1993 should be included.

11. Overtime pay and night differential

Wages; Computation Holiday Pay; Overtime Pay (2002)

This year, National Heroes Day (August 25) falls on a Sunday. Sunday is the rest day of Bonifacio whose daily rate is P500.00.
A. If Bonifacio is required by his employer to work on that day for eight (8) hours, how much should he be paid for his work?
Explain.
B. If he works for ten (10) hours on that day, how much should he receive for his work? Explain.
 A. For working on his scheduled rest day, according to Art 93(a), Bonifacio should be paid P500.00 (his daily rate) plus P150.00
(30% of his daily rate) = P650.00. This amount of P650.00 should be multiplied by 2 = P1 ,300.00. This is the amount that Bonifacio as
employee working on his scheduled rest day which is also a regular holiday, should receive. Art. 94(c) of the Labor Code provides that
an employee shall be paid a compensation equivalent to twice his regular rate for work on any regular holiday. The "regular rate" of
Bonifacio on May 1, 2002 is with an additional thirty percent because the day is also his scheduled rest day.

B. P1,300.00 which is the amount that Bonifacio is to receive for working on May 1, 2002 should be divided by 8 to determine his
hourly rate of P162.50. This hourly rate should be multiplied by 2 (the number of hours he worked overtime). Thus, the amount that
Bonifacio is entitled to receive for his overtime work on May 1, 2002 is P325.00

Working Hours; Night Shift Differential (2002)

As a tireman in a gasoline station, open twenty four (24) hours a day with only five (5) employees, Goma worked from 10:00 P.M.
until 7:00 A.M. of the following day. He claims he is entitled to night shift differential. Is he correct? Explain briefly.

Answer: Yes. Under Art 86 of the Labor Code, night shift differential shall be paid to every employee for work performed between
10:00 o'clock in the evening to six o'clock in the morning.
Therefore, Goma is entitled to nightshift differential for work performed from 10:00 pm until 6:00 am of the day following, but not
from 6:00 am to 7:00 am of the same day.

12. Project Employee - PROJECT EMPLOYEE is one whose employment is 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.

13. Computation – Certification Election

YUNG LECTURE NYA PO ITO. MEDYO MAHABA KAYA DI KO NA NILAGAY

14. Valid causes of Dismissal

Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:

a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection
with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
d. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his
duly authorized representatives; and
e. Other analogous cases

15. Strike v Picketing

Strike means any temporary stoppage of work by the concerted action of the employees as a result of an industrial or labor dispute.
PEACEFUL PICKETING — the right of workers during strikes consisting of the marching to and from before the premises of an
establishment involved in a labor dispute, generally accompanied by the carrying and display of signs, placards or banners with
statements relating to the dispute.

16. Authorized Cause of Dismissal

According to Art 283 of the Labor Code, the lawful or authorized causes for the termination of an employee are:
1. Installation of labor saving devices
2. Redundancy
3. Retrenchment to prevent losses or;
4. Closing or cessation of operation of the establishment or undertaking, unless the closing is for the purpose of circumventing the
provisions of the Labor Code.

17. Salary meaning – (Pwede bang goods ibayad?)

Salary - paid to white collar workers and denote a higher grade of employment. Not exempt from execution, garnishment or
attachment.

Q: What are the allowable forms of Payment of wages?

A: General Rule: No employer shall pay the wages of an employee by any other means other than legal tender, even when expressly
requested by the employee. (Congson v. NLRC, G.R. No. 114250, April 5, 1995)

Exception: Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of
effectivity of this Code, or is necessary because of special circumstances as specified in appropriate regulations to be issued by the
Secretary, or as stipulated in a CBA. (Labor Code, Art. 102)
 18. Duncan vs Glaxo (Conflict of interest) Kayo na po maghanap ng full text.

Ruling: Glaxo has a right to guard its trade secrets, manufacturing formulas, marketing strategies, and other confidential programs and
information from competitors. The prohibition against pesonal or marital relationships with employees of competitor companies upon
Glaxo's employees is reasonable under the circumstances because relationships of that nature might compromise the interests of the
company. That Glaxo possesses the right to protect its economic interest cannot be denied.

It is the settled principle that the commands of the equal protection clause are addressed only to the state or those acting under color
of its authority. Corollarily, it has been held in a long array of US Supreme Court decisions that the equal protection clause erects to shield
against merely privately conduct, however, discriminatory or wrongful.

The company actually enforced the policy after repeated requests to the employee to comply with the policy. Indeed the application
of the policy was made in an impartial and even-handed manner, with due regard for the lot of the employee.

19. Agency Vs. Principal (Di ko Makita yung exact e. Kayo nalang po maghanap. Connected ata to sa Job Contracting at Labor
Contracting)

Effect of labor-only-contracting?
1. The subcontractor will be treated as the agent of the principal, and representations by the subcontractor to the employees will
bind the principal.
2. The principal will become the employer as if it directly employed the workers, and will be responsible for all their entitlements and
benefits under the labor laws.
3. The principal and the subcontractor will be solidarily treated as the employer.
4. The employees will become employees of the principal, subject to the classifications of employees under Article 280 of
the Labor Code.

Job contracting vs Labor only contracting

When a person, not being an employer, contracts with an independent contractor for the performance of any work, task,
job or project, there is "JOB CONTRACTING." When the independent contractor does the work that is contracted out, he is not under
the control of the person who contracted out the work to be done.

In "LABOR-ONLY CONTRACTING", a person supplies workers to an employer. Said person does not have substantial capital or
investments in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by
such person are performing activities related to the principal business of the employer to whom the workers are supplied.

20. Study the ff:

Yellow-dog contract - is an agreement between an employer and an employee in which the employee agrees, as a condition of
employment, not to be a member of a labor union.

Blue sky bargaining - is defined as ―unrealistic and unreasonable demands in negotiations by either or both labor and management,
where neither concedes anything and demands the impossible.

Sweet-heart doctrine - is a contract made through collusion between management and labor representatives which contains terms
beneficial to management and unfavorable to union workers.

Run-away shops - it is unlawful for an employer to relocate to a non-union facility solely to avoid its employees' decision to unionize.

Boulwarism Concept - the take-it-or-leave-it bargaining position assumed by management during a labor dispute.

Ito ay gabay lamang. Meron tayong FREEWILL gamitin natin ito!

ENAYTENKYU!