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 can 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.