Labor Code 2 Reviewer

Title I
Book VI Termination of Employment
Post Employment
Title I Part 2
Termination of Employment Kinds of Employment
Part 1 Art 295 Regular and Casual Employment
Introduction: Employee’s Security of
Tenure Regular EE- Necessary or Desirable work
and no independent business/professional
Art 293 Coverage service, unless:

TEMPORARY IN EXISTENCE but still

• All establishments
Necessary and Desirable like,
• For profit or not

Project EE- Fixed for a specific project,

Art 294 Security of Tenure undertaking completion/termination has
been determined at the engagement of the
No Termination, Unless: “project employees”

1. Just Cause

2. Authorized Cause
Seasonal EE- Employment is for the
duration of the season

If Terminated without JC and AC, Then

Entitled to: Casual EE- if not covered by previous
• Reinstatement without loss of SRy rights
definitions

• Other privileges

• Full back wages

Regular Employee VS Project/Seasonal

• Inclusive allowances

• Other benefits/their monetary equivalent

• Not in the nature of work but in the
duration of existence

Note: Security of Tenure-Fundamental; it

extends to regular(permanent) and non Note:
regular(temporary)
• 1yr (continuous/broken)= Regular EE

• Length of service not equal to ER-EE

Managerial EEs- may be dismissed merely relationship

on the grounds of loss of confidence.

• Always go back to 4 Fold Test

Rank and File EEs- dismissal requires Kinds of Regular EEs:

higher proof of involvement in the events in 1. By Nature of Work

question
2. By Years of Service

Employment at Will- not recognized in the Regular Casual- Becomes regular after 1 yr
Philippines
of service; “Regular” only for that work
activity for which he was hired; even if he is
Due Process in Termination: not issued a “regular” appointment

1. Existence of Lawful Cause

2. Observance of Proper Procedure

Contracting out (Serrano Ruling)

• Efficiency and economical operations are
recognized as Valid, Lawful reasons for
contracting out jobs

Labor Reviewer BUKSU LAW Wu

• BUT, always the legal bars must not be
transgressed so as to protect thee workers
Seasonal EEs (Mercado Ruling)
• Mainly: 1) Not a Labor only contractor, • Petitioners performed different phases of
2) Not prohibited under Section 6 of DO, 3) agricultural work in a given year

ULP
• However during that period, they were free
to work for another farm owners

Contracting Out (SanMig EEs Union-

PTGWO vs Bersamira)
Casual Employment
• Contracting out of work is a proprietary
right of the ER
• Engaged to perform a job

• Inherent management prerogative

• Merely Incidental to the business of ER

• Management should not be hampered in • For a Definite period

the operations of its business

• Made Known to the EE at the time of
engagement

Two Types of Project EEs: Fixed Employment, When Valid:

1. Within a regular/usual business of ER but Substitution during another EE’s
distinct and separate from the other
• Study leave

undertakings of the company. Example: • Special leave

Construction workers • Maternity leave

2. Not within regular/usual business of ER

but distinct and separate from the other
undertakings of the company.
Fixed Employment; VALID (Brent Ruling)
• “Where a fixed period of employment was
agreed upon knowingly and voluntarily by
Principal Test (Violeta Case)
the parties, without any force, duress or
• EE was hired for a specific project

improper pressure bing brought to bear

• But absent duration of the project led the
Court to conclude that the EE was regular
upon the EE and absent of any other
circumstances vitiating his consent…with
no moral dominance whatever being
Indicators (Sec 2.2 of D.O. No 19) exercised by the EE or ER”
• Duration specified
• Criteria:
• Employment Agreement • The period was knowingly and
• Connected with the project he is engaged
voluntarily agreed by parties w/o FDI

• Free to engage to another ER

• EE and ER dealt with equal terms

• Termination is reported to DOLE

Fixed Employment; INVALID (Cielo Ruling)

Work Pool (Raycor VS NLRC Ruling) • Employment Agreement stated “ earlier
terminated at the option of either party”
• Either Project EE or Regular EE

• No cause had to be established because

such renewal was subject to the discretion
Types Non-Project EEs of the parties

1. Probationary

2. Regular

3. Casual
ENDO Contractualization; Considered
Regular Employees (Purefoods Ruling)
Seasonal Employment • “Where from the circumstances it is
• Considered as Regular EEs
apparent that the periods have been
• Called to work from time to time/season imposed to preclude acquisition of tenurial
after season
security by the EE, they should be struck
• Employment relationship never severed but down or disregarded as contrary to public
only suspended

policy and morals”

Labor Reviewer BUKSU LAW Wu

OFWs Seafarers are Contractuals
• Coyoca VS NLRC: Seafarers are not Title I
regular EEs and not entitled to separation Termination of Employment
pay; Employment is governed by POEA
Standard Employment Contract for Filipino Part 3
Seamen
Management Rights and the Just Causes
• Milares and Lagda VS NLRC: Their of Termination
employment is governed by the contracts
they sign every time they are rehired and Article 297 Termination by Employer
their employment is terminated when the
contract expired; Contractually fixed for a
certain period
Termination Causes
A. Serious Misconduct/Willful Disobedience

• Domestic Seafarers NOT Contractuals

B. Gross and Habitual Neglect of Duties

Article 296 Probationary Employment C. Fraud/Willful breach of Trust to ER/rep

D. Commission of Crime/offense against

ER/ER’s family or rep

Probationary Employment
• Shall not exceed 6 months unless it is
covered by an apprenticeship
Management’s Rights
1. Rights to Manage People

• May be terminated for a Just Cause:

2. The Right to Discipline

• Failure to qualify with the standards

3. The Right to Demote

• Standards made known to the EE

4. The Right to Dismiss

• If allowed to work after probationary

period, considered as Regular EE

• Entitled to Security of Tenure

Just Causes of Dismissal
1. Serious Misconduct
Limitations to Termination of Probation: Transgression of some stablished and
1. Must be Exercised in accordance with definite rule of action; a forbidden
the specific requirements of the contracts
act; a dereliction of duty; willful in
character; and implies wrongful intent
2. Time prescribed=termination within such
and not mere error in judgement

time; Form required=form must be used

Requisites:
3. ERs dissatisfaction must be in Good faith

• Must be serious

4. No unlawful Discrimination in dismissal

• In connection with the performance of the
EE’s duties

Period of Probationary Employment • EE unfit to continue working for the ER

General Rule: Shall not exceed 6 months

Exception: (Bruiser Ruling) Examples:

• When the parties to an employment • Pressure and Influence

contract agrees
• Obscene,insulting/offensive words against
• Established by company policy
a superior

• Required by Nature of Work

• Immorality

• Sleeping in post

Last day of Probation

1. CALS Poultry and Alcira Cases- Ends
on the same date it started 6 months Teacher in Love with Student; not immoral
before
(Chua-Qua Case)
2. Mitsubishi Motors- Ends 180 days from • The heart has reasons of its own which
the starting date
reason does not know

• Emotion is not equated with immorality

Note: Illegally dismissed Probationary EE is • However, Reinstatement not possible; EE-

entitled to Reinstatement
ER relationship strained

Labor Reviewer BUKSU LAW Wu

2. Willful Disobedience Title I
Termination of Employment
Requisites:
• Reasonable and lawful
Part 4
• Sufficiently known to the EE
Authorized Causes of Termination
• In Connection with the duties of EE

Article 298 Closure of Establishment and

3. Neglect of Duties Reduction of Personnel
• Gross Neglect means an absence of that
diligence that an ordinarily prudent man Authorized Causes
would use in his own affairs
1. Installation of Labor-Saving Devices

• Enough that EEs action prejudices ER’s 2. Redundancy

interest
3. Retrenchment to prevent losses

4. Closing or Cessation of Operation

4. Dishonesty,Loss of Confidence
• Must be related to to the performance of Separation Pay:
the duties of the EE

• Installation- 1 month pay or 1 mo/yr of

service

To Whom Applicable?
• Retrenchment- 1 month pay or 1/2 mo/yr
• Cases involving EEs occupying positions of service

of trust and confidence (Managerial EEs)

• EEs routinely charged with the care and

custody of the ER’s money/property Installation of Labor Saving Devices
(Cashiers/Auditors/Property Custodians)
• Installation of machinery for economy and
efficiency

Guidelines:
1. Loss of Confidence not simulated
Redundancy
2. Not to subterfuge for improper/illegal/ • Excess of what is reasonably demanded
unjustified
by the actual requirement

3. Not Arbitrary
• EEr needs to show proof of termination
4. Must be Genuine
done in Good Faith (GMC vs Viajar Case)
5. EE involved holds a position of trust and
confidence
Requisites:
1. Written notice served to EE and DOLE 1
6. Commission of a Crime or Offense month prior to retrenchment

• Against the ER
2. Payment of Separation pay

• Against EEr’s immediate family

3. Good Faith

4. Fair and Reasonable Criteria

Conviction or Prosecution Not Required

• ER has reasons to mistrust EE/Misconduct Retrenchment
and Willful Breach of Trust are Committed
• Economic ground to reduce the number of
EEs to cut down costs

Analogous Causes
• Voluntary/Willful Act or omission of the EE
Standard (Lopez Sugar Case) : S I R S
• Example: Theft of EE to EE may not be 1. Losses expected should be Substantial
serious misconduct but maybe considered and not merely de minimis

as Analogous cause
2. The loss should be Imminent

3. The retrenchment is Reasonably

necessary and likely to effectively prevent
the expected losses

4. Must be proven by Sufficient and

convincing evidence

Labor Reviewer BUKSU LAW Wu

 Title I
Requisites for Valid Ret: P W G F Termination of Employment
• To Prevent or minimize losses and such
losses are proven
Part 5
• Written notice is given to the EEs and the Procedure to Terminate
DOLE at least 1 month before date

• Separation pay is paid

Dismissal Case and Procedure
• ER exercises right in Good faith
(Sebuguero Doctrine)
• ER uses Fair and reasonable criteria in who • Absence of valid cause makes dismissal
will be dismissed
illegal and invalid

• Absence of valid procedure makes

Who to Retrench? L E S dismissal “merely defective”

A. Less preferred status (temp EEs)

B. Efficiency Rating
Two aspects of Due Process Principle:
C. Seniority (not inherent, only based on 1. Substantive
contract, statute or an administrative • An EE may be dismissed based only on
regulation)
just or authorized causes

Closing/Cessation of Operation 2. Procedural

• Closing of Business
• Requires further that he may be
• Losses must be shown
dismissed only after he has been given
• Closure does not mean losing
an opportunity to be heard.

• EEs should be paid the severance pay

• Serious financial losses is a valid reason to Just Causes (2 notice rule)

close the business without paying separate A. Written notice served on EE with grounds
pay
for termination; giving EE time to explain
(5 calendar days to explain)

Article 299 Disease B. Hearing or conference; w/wo counsel

• Suffering EE or Prejudicial to other EEs
(trial type hearing not required)

C. Written notice of termination served on

Elements: S P C S EE with grounds and justification of
1. An EE has been found to be Suffering termination decision

from a disease (contagious/not)

Serving of termination shall be to EE’s last
2. His continued emplmt is Prohibited by known address; Failure to comply taints
law or prejudicial to his health/co-ee
with illegality; Absence of which,
3. Public health authority Certifies that it judgement reached is void and inexistent
cannot be cured within a perio dof 6
months
Authorized Causes (2 notice rule)
4. Separation pay equivalent to 1 month or • Written notice to the EE

1/2 mo/year of service, whichever is • Written notice to the Regional Office of

greater. 6 mo of service=1 year
DOLE at least 30 days before date of
termination; specifying grounds

Resigned EE; no Separation pay

• An EE resigned from his position because No hearing required:
he was suffering from a disease is denied • EE admits guilt

to claim for separation pay/retirement pay.

• Authorized causes (Art 298)

• Termination initiated by EE (Art 300)

• Termination resulting from bona fide

suspension of operation (Art 301)

• Project Employment completion

Labor Reviewer BUKSU LAW Wu

Burden of Proof=Employer
• Proof beyond reasonable doubt need not
be shown
Financial Assistance SP
• An Exception to Article 297 (Just Causes)

Substantial Evidence • If act committed by EE not serious, the

• SE means “such relevant evidence as a Court may require the ER to pay as a
reasonable mind might accept as adequate measure of social justice (Analogous
to support a conclusion” Causes)

• No FA to dismissed illegal strikers

Preventive Suspension (D.O. No.9,6-21-97) (Telefunken, Chua, Toyota cases)

• The ER may place the worker concerned

under preventive suspension if his Requisites for FA SP
continued employment poses a serious A. Serious misconduct

and imminent threat to the life or property B. Other Offense reflecting on his moral
of the ER of his co-workers
character

• Cannot be more than 30 days; otherwise,

constructive dismissal
In Lieu of Reinstatement/ Separation Pay
Instead of Reinstatement (SPIR)
Constructive Dismissal • Third kind of relief after finding of illegal
• If an act of clear discrimination, dismissal

insensibility, or disdain by an ER becomes • When reinstatement not feasible

so unbearable on the part of the EE

Employment Benefit SP
Invalid Preventive Suspension • Does not arise from legal or illegal
• Tardiness of EE does not pose a serious dismissal

and imminent threat to the life or property • Comes from Non adversarial mode of
of the ER or co-EEs
leaving one’s employment, such as
resignation

Title I • Demandability depends on the terms of its

Termination of Employment grant through CBA or established practice

• AKA resignation pay or gratuity

• Requires a minimum length of service to

Part 6 the ER; usually at least 5 years

Consequences of Termination
General Rule: No Separation pay if EE
Separation Pay voluntarily resigns

Exception: When stipulated in the

4 Kinds of Separation Pay; S F L E Employment contract or CBA, or sanctioned
1. ER’s Statutory obligation due to by established ER practice or policy
Authorized Causes (Art 298, 299)

2. Financial Assistance,an act of social Backwages

justice, at court’s discretion
• Earnings that would have accrued to the
3. In Lieu of reinstatement in illegal dismissed EE during the period of
dismissal; when reinstatement not dismissal and reinstatement

feasible

4. Employment benefit
Backwages vs Reinstatement
• Backwages and Reinstatement are 2 reliefs
Statutory SP to an illegally dismissed EE

• Computation: Basic Salary + Regular • But separate from each other

Allowances
• Backwages recovers lost income

• Commission not included

• Reinstatement recovers lost job

• Travel equivalents not included

Labor Reviewer BUKSU LAW Wu

Backwages vs Unpaid Salary Instances Reinstatement not feasible
• Unpaid salary refers to those earned prior 1. Due to Adverse Circumstances; EE
to dismissal
reaching the retirement age

• Backwages refer to those earning lost after 2. Injury or disability of the EE

and because of illegal dismissal

3. Dissolution of the company

4. Merger of the companies

Failure to Claim Backwages 5. Sale of the company

• Mere procedural laps which cannot defeat 6. Closure of the company

a right granted under substantive law

7. insolvency of the company

8. Abolition of the position

Computation of Backwages: 9. Difficulty in enforcing the EE’s

• Basic Salary + Regular Allowances
reinstatement because the ER is in a
• If not awarded by LA, may be modified on foreign country

appeal
10. Strained relations

Four Phase Debate; Dismissal Valid but Qualifications of a Strained Relations

Invalid Procedure (Globe-Mackay ruling)
1. ER must pay nominal damages
• EE occupies a position of trust and
2. ER must pay full backwages
confidence of his ER

3. ER must pay higher nominal damages

• if reinstated, an atmosphere of antipathy
4. ER must pay Higher Nominal, depending and antagonism may be generated as to
on the cause of dismissal
adversely affect the efficiency and
productive of the EE concerned

Sebuguerro, 1995
• A Dismissal with valid cause but invalid Separation Pay for Seasonal Worker
procedure is “merely defective” or;
(Philippine Tobacco ruling)

Serrano Ruling, 2000 Total No of Days

• “Ineffectual”
Actually Worked

_________________ x daily rate x 15 days

HSBC Decision, 2016

• Calls “Illegal” any dismissal lacking in valid Total No of Working

cause or valid procedure

Days in One Year

• SP based on two factors: Monthly Salary

Reinstatement and the Number of years of Service

• EE is entitled when Illegaly dismissed

• Restores/assumes position prior to the Damages

dismissal; entitled to same salary
• Based on Civil Code, not labor Code

• Such an award cannot be justified solely

Reinstatement without Backwages upon the premise that the ER fired the EE
• not every case of illegal dismissal entails without JC or due process

an award of backwages

• ER’s good faith, EE’s fault, Harshness of Moral Damages

dismissal; weighs in to deny backwages to • To compensate one for diverse injuries
an EE
such as mental anguish, besmirched
• Justification of not awarding backwages reputation, wounded feelings and social
rests on the court’s sense of justice humiliation

considering facts of the case

• Essential: that they have sprung from a
wrongful act/omission of the defendant
which was the proximate cause thereof

• ER liable under Article 2220 of the Civil

Code, for ‘breaches of contract”

Labor Reviewer BUKSU LAW Wu

Exemplary Damages Key Element of Personal Liability:
• Harassed by the ER
• Presence of Fraud, Malice, or Bad Faith

• may be awarded only if the dismissal was

shown to have been effected in a wanton, Quitclaim
oppressive or malevolent manner
• Public policy protects labor

Attorney’s Fees General Rule: Once an employee resigns

• Must be based on fact for the awarding of and executes a quitclaim in favor of ER, he is
Atty’s Fee
estopped from filing any further money claim
against the ER arising from his employment

Persons Liable for Wrongful Dismissal;
(Sunio Doctrine)
• “A corporation is invested by law with a
personality separate and distinct from
those of the persons composing it as well
as from that of any other legal entity to
which it may be related. Mere ownership by
Exception: When the voluntariness of the
execution of the quitclaim or release is put in
issues, when it is proved that there is an
unwritten agreement entitling the EE to other
remuneration or benefits, then such a money
claim of the EE may be still given due
course.

a single stock-holder or by another

corporation of all or nearly all the capital NOTE: Even if voluntarily executed,
stock of a corporation is not itself sufficient agreements are invalid if they are contrary to
ground for disregarding the separate public policy.

corporate personality. Petitioner Sunio,

therefore, should not have been made
personally answerable for the payment of
private respondents’ back salaries”
Why the protection to labor re QC?
• The subordinate position of the EE renders
him especially vulnerable to blandishments
and importunings, and even intimidations
by the management.

General Rule: Officers of a corporation are

not personally liable for their official acts Quitclaims; (Camelcraft Doctrine)
unless acted in excess of their authority

• The company inveigled them to waive their

claims to compensation due them on the
Exception: Where the incorporators and
directors belong to a single family, the promise of future benefits would be paid
corporation and its members can be • It refused to recognize the respondent
considered as one in order to avoid its being union
used as an instrument to commit injustice.
• It threatened the EEs

Note: The veil of corporate fiction should be

Quitclaim; When Valid:
pierced when it is deliberately and
maliciously designed to evade financial • Entered voluntarily

obligations to employees
• Represents a reasonable settlement

Requisites:
Three Instances in Piercing the corporate
1. EE executes QC voluntarily

veil:
2. No Fraud or Deceit on any of the parties

1. Corp used to evade existing obligation

3. Consideration of QC is credible and
2. Fraud Cases/used to protect fraud, or reasonable

defend a crime
4. QC is not contrary to law, public order,
3. Alter ego cases, where a corporation is public policy, morals or good custom or
merely a face since it is an alter ego or prejudicial to a third person with a right
business conduit of a person/another recognized by law

corporation

Labor Reviewer BUKSU LAW Wu

 Title I “Floating Status”
Termination of Employment • Should last only for a legally prescribed
period of time

Part 7 • If status lasts more than 6 months, he may

Termination by EE and Suspension of be considered to have been illegally
Operation dismissed from the service.

• Thus, entitled to the corresponding

benefits for his separation

Article 300 Termination by Employee

A. An EE may terminate ER-EE

relationship without Just Cause
• Serve a Written notice on the ER at least
1 month in advance

• If no notice, EE is liable for damages

B. An EE may end without serving notice

to EE for the following JC; I I C A
• Serious Insult by the ER or his rep on the
honor and person of the EE

• Inhuman and unbearable treatment

• Commission of a Crime or offense by ER/

rep to EE/ any of his family

• Other Analogous causes

Resignation
• Voluntary act of an EE

• Finds himself ina 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

Withdrawal of Resignation
• Withdrawable if still with EE

• Needs consent if accepted/approved by

ER

Article 301 When Employment not

Deemed Terminated

• Bona Fide suspension of Operation of

business not exceeding 6 months

• Fulfillment of EE of a Military/Civic Duty

ER shall reinstate the EE to his former

position without loss of SRy rights if he
indicates his desire to resume his work
not later than one month from the
resumption of operations of his ER or
relief from duty

Labor Reviewer BUKSU LAW Wu

 Book V • When union rep is identified, ER and Union
Post Employment negotiate for a Collective Bargaining
Title I Agreement (CBA); bilateral agreement

Policy and Definition • If deadlock; strike or lockout:

• Resolved through neutral arbitration

Article 218 Declaration of Policy • If unresolved, it can cause work stoppage

Dispute Handling
It is the policy of the State:
• Grievance resolution process is encourage,
(STRATEGIC POLICIES, not goals) with or without union.

A. To promote and emphasize the CBA

• if in-house machinery fails, the parties
B. To promote Free Trade Unionism
themselves are free to select any third
C. To Foster Free and Voluntary party, called VOLUNTARY ARBITRATOR

Organization

D. To promote the Enlightenment of workers

Work Stoppage
E. To provide an adequate administrative
machinery for labor dispute settlements
• Strike is by EEs

F. To ensure a stable but dynamic and use • Lockout is by ERs

industrial peace
• Work stoppage is not favored in law

G. To ensure participation of workers in • Although a legal right

decision and policy making processes

• Cause: only of a bargaining deadlock or a
ULP

To encourage a truly democratic method • Manner: no form of violence is allowed

of regulation the relations between the • A union cannot strike over intra or inter-
union disputes

ERs and EEs by means of agreements

freely entered into through CBA Public Interest
• The Real Parties in Interest: ER and EE

Labor Relations General Rule: No injunctive power of the

• Interactions between ER and EEs/ state may be invoked

representatives and the mechanism by Exception: lockout, strike picket, “concerted

which the standards and other terms and activities”, that violates that rights of others
conditions of employment are negotiated, or is accompanies by violence or other illegal
adjusted and enforced
acts-when legal boundaries are transgressed

Participation Worker’s Organization

• Right to Organize
• A combination of workmen organized for
• Right to Bargain with the Employer
the ultimate purpose of securing through
united action the most favorable conditions
Organization and Action for its members.

• May or may not register their organization

with the government
Why Workers Organize
• “The labor organization, as • Human drive toward self advancement

manifestation of industrial democracy 1. Job Security

must be democratically governed” 2. Rule of Law; no arbitrary exercise of

• Labor Orgs should be free from ER’s power by the boss

interference
3. Sense of Participation

• If interfered by ER, latter commits Unfair

Labor Practice (ULP)

Collective Contract
• Unionized members should speak as one
voice; hence a representative

• If there is a union rivalry; election

Labor Reviewer BUKSU LAW Wu

 Article 219 Definitions A. Temporary refusal of an ER to furnish
A. Commission work as a result of an industrial or
A. National Labor Relations Commission
labor dispute

B. Bureau Q. Internal Union dispute

A. Bureau of Labor Relations
A. Includes ll disputes or grievances
C. Board arising from any violation of or
A. National Conciliation and Mediation disagreement over an provision of the
Board (NCMB)
condition and by laws of a union

D. Council R. Strike-breaker
A. Tripartite Voluntary Arbitration A. Any person who obstructs, impedes/
Advisory Council
interferes by force, violence,
E. Employer coercion, threats or intimidation any
A. Any person acting in the interest of an peaceful picketing by EE

ER, directly/indirectly; not including S. Strike area

LO
A. The establishment, warehouses,
F. Employee depots, plants or offices, including
A. Any person in the employ of an ER
the sites or premises used

G. Labor Organization
A. Any union or association EEs which ER-EE Essential
exists in whole/part for the purpose • if there is no ER-EE relationship; there is no
of Collective Bargaining
basis for organizing for purposes of CB

H. Legitimate Labor Organization • Always the 4 fold test:

A. Any LO duly registered with the DOLE

1. Selection and Engagement of EE

2. Payment of Wages

I. Company union
3. Power to Dismiss

A. Any LO whose formation, function or

4. Power to Control EE’s conduct

administration has been assisted by

any act defined by ULP

J. Bargaining representative
A. LLO or any officer/agent of such
organization w/n employed by the ER
Labor Disputes
• Bona Fide controversy concerning wage,
hours, or conditions of work or

representation

K. Unfair Labor Practice

• Must involve or concern the terms and
A. Any ULP defined by this Code
conditions of employment

L. Labor Dispute • Questions of Existence of ER-EE

A. Any controversy or matter concerning relaiationship can be considered as labor
terms or conditions of employment
dispute; jurisdiction of NLRC

M. Managerial EE
A. One who is vested with powers or Remedies in Labor Disputes
prerogatives to lay down and execute 1. Grievance Procedure- steps in CBA

management policies and/or to hire,

2. Enforcement/Compliance Order-
transfer, suspend, lay off, recall,
Secretary to enforce visitorial/admin
discharge, assign or discipline EEs

authority

N. Voluntary Arbitration
3. Certification of Bargaining Rep-
A. Any person accredited by the Board,
Determination by DOLE; handled by
or any person named or designated
Med-Arbiters of DOLE
in the CBA by the parties to act as
their VA
4. Assumption of Jurisdiction- Authority
given to the Secretary/President to
O. Strike
decide a dispute
A. Any temporary stoppage of work by
the concerted action of EEs as a 5. Cert to NLRC- Secretary empowering
result of an industrial or labor dispute
NLRC
P. Lockout 6. Injunction-extraordinary remedy

Labor Reviewer BUKSU LAW Wu

7. Judicial Action- complaint filed with Article 221 Headquarters, Branches and
regular court in cases falling under its Provincial Extension Units
jurisdiction. Examples: Illegal
Recruitment • Division 7 and 8-Visayas and Mindanao

8. Appeal- An order, decision or award is

elevated to a higher authority on NLRC
specified grounds • Delegation to the DOLE Secretary to:
9. Review by the Court- Petition for further improve rate of disposition of
Certiorari, prohibition; grounds: abuse of cases, and enhance existing measures for
discretion, or lack of excess of the prevention of graf and corruption in the
jurisdiction
NLRC (EO No 204)

Alternative Dispute Resolutions (ADR) En Banc instances:

1. Purposes of Promulgating rules and
A. Conciliation Regulations Governing the Hearing and
A. third party, other than disputants, Disposition of cases before any of its
perhaps condign each other’s fault or divisions and regional branches

finding a give and take compromise

2. A case may be heard and decided by
B. Mediation another division whose docket can
A. There is also conciliation but a accommodate the additional workload

mediator, more than a conciliator in 3. The Appointment of a Labor Arbiter

searching for aand formation a

solution
Article 222 Appointment and
C. Arbitration Qualifications
A. More determinative than conciliation
or mediation but less formalistic or Chairman and other Commissioners
technical than litigation
• Members of the Bar and engaged in the
B. Compulsory-by NLRC,
practice of law for at least 15 years or at
C. Voluntary-DisputingParties
least 5 years Labor experience

Compromise Agreement Labor Arbiters

• In any stage of any of these settlement • Members of the Bar must be engaged in
processes, the labor dispute may be the practice of law for at least 10 years
resolved by the parties through a with at least 5 years experience in Labor

compromise agreement

Both can hold office until age of 65 or 70

Title II
Policy and Definition Article 223 Salaries, Benefits, and
Emoluments
Chapter I
Creation and Composition Chairman and Members of the
Commission
Article 220 National Labor Relations • Same rank, receive an annual salary and
Commission be entitled to the same allwoances,
retirement and benefits as those of the
NLRC Presiding Justice and Associate Justice of
• Shall be attached to the DOLE for program the CA

and policy coordination only

• Composed of a Chairman and 23 members

Labor Arbiters
• Sits En Banc or in 8 divisions
• Same with Judges of the RTC

• 8 Divisions have three members each

• Division 1-6 (NCR and Luzon)

Labor Reviewer BUKSU LAW Wu

 Chapter II • OFW Cases

Powers and Duties

Part I
Jurisdiction Intra Corporate Controversy
• one which arises between a stockholder
Article 224 Jurisdiction of Labor Arbiters and the corporation

and the Commission

Corporate Officer
• Derives its character either from the
To hear and decide within 30 days Corporation Code or the Corporation’s by
calendar days after submission laws

Cases • Dismissal issue deemed an intra-corporate

1. ULP
dispute and falls within jurisdiction of Trial
2. Termination disputes
Court if complainant is a Corporate
3. Claim for Reinstatement

Officer
4. Clais for actual, moral, exemplary, and
other forms of damages arising from ER- • His position is a creation of the corporate
charter or by laws

EE relationship

5. Cases involving the legality of strikes and • His position is elective

lockouts
• His election is by the act of the directors or
stockholders

6. All other claims arising from ER-EE

relationship, including domestic or
household services involving an amount Kasambahay’s Claim
exceeding 5K
• Regardless of amount

• falls within the jurisdiction of the DOLE,

NOT the NLRC

• Commission shall have exclusive appellate

jurisdiction over all cases decided by LA

• Cases arising from CBA

Chapter II
Powers and Duties
Additional Cases Part II
• Money Claims by OFW
Powers
• Wage distortion disputes

• Enforcement of Compromise agreements

Article 225 Powers of the Commission
• Other cases as may be provided by law
A. To Promulgate rules and regulations
governing the hearing and disposition of
Compulsory Arbitration by LA cases

• The process of settlement of labor B. To Administer oaths, summon the parties

disputes by a government agency which to a controversy, issue subpoenas

has the authority to investigate and to C. To Conduct investigation for the

make an award which is binding on all the determination of a question, matter or
parties
controversy within its jurisdiction

D. To hold in Contempt directly or indirectly

LA’s Jurisdiction and impose appropriate penalties

• Can hear and Decide employment related

E. To Enjoin or Restrain any actual or
• Unless ER enjoys immunity
threatened commission of any or all
prohibited or unlawful acts

Venue A. Prohibited or unlawful acts have been

• Regional Arbitration Branch over the threatened and willb committed
workplace of the complainant or petitioner
unless restrained

• Two or More: Who first acquired

B. Substantial and irreparable injury to
• No Objection: Waived
complainant’s property will follow

• Venue may be transferred to a different RB C. Each item of relieve to be granted;

if agreed by parties
greater injury will be inflicted

Labor Reviewer BUKSU LAW Wu

 D. The complaint has no adequate Adjudicatory Power: Appellate
remedy at law
• Exclusive appellate jurisdiction over all
E. The public officers charged with the cases decided by LA and the DOLE
duty to protect complainant’s regional director

property are unable or unwilling to

furnish adequate protection
NLRC NO JURISDICTION OVER:
• Voluntary Arbitrator

Article 226 Ocular Inspection • Secretary of Labor

• Bureau of Labor Relations

Chairman, Commissioner, LA/rep Decisions from these offices are appealable

• During work hours, conduct an ocular to the CA

inspection on any establishment, building,

ship or vessel, place or premises, including Cash Bond
any work , material , implement, machinery, • Petitioner to file an undertaking to answer
appliance, or any object therein…
fror the damages and post a cash bond int
he amount determined by the Commission

Powers of the Commission:

Life of TRO
Rule Making Power • 20 days and becomes void ipso facto at
• Governing the hearing and disposition of the end of that period

cases before it and its regional branches

• Takes effect upon issuance and not upon
• Pertaining to its Internal functions
receipt of the parties

• Those that may be Necessary to carry out • Sat, Sun, and holidays are included

the purposes of this Code

Power to Issue Compulsory Processes Chapter II

• Administer Oaths
Powers and Duties
• Summon Parties
Part III
• Issue Subpoenas
Procedure

Power to Investigate an Hear Disputes Article 227 Technical Rules not Binding
within its jurisdiction and Prior Resort to Amicable Settlement
• Conduct investigations for the
determination of a question, matter or 1. Proceedings before LA or the
controversy within its jursidiction; and
Commission; Technical Rules not
• Proceed to hear and determine the Applicable
disputes in the manner laid down under • NLRC/ admin and quasi judicial bodies
paragraph c of Art 225
are not bound by the technical rules of
procedure in the adjudication of cases

Contempt Power • Simplification of procedure

• A disobedience to the Court by setting up • To Insure speedy administration of justice

an opposition to its authority, justice and

dignity
Cardinal Primary Rights:
A. Right to a Hearing

Power to Conduct Ocular Inspection B. Tribunal must consider the evidence

• Conduct an ocular inspection
presented

• Asks any EE, laborer, or any person

C. Decision must be supported by
something (evidence)

Adjudicatory Power: Original D. Supporting evidence must be substantial

• original jurisdiction over petitions for E. Decision must be rendered on the

injunctions or TRO
evidence presented

Labor Reviewer BUKSU LAW Wu

F. The body or CIR or any of its judges • Dismissed wo prejudice, file a motion to
must act on his own independent revive/reopen within 10 calendar days
consideration of the law and facts
from receipt of order, Or else

G. Decide in such a manner that parties can • Refile the case

know the various issues involved and the

reason for the decision
4. Submission of Position Papers and
Reply
Prohibited Pleadings and Motions • Lack of Verification of the position paper-
• Motion to Dismiss
paper-affidavit is a formal rather than a
• Motion for a Bill of Particulars
substantial, defect

• Motion for New Trial

• Can be easily corrected by requiring an
• Petition for relief from judgment
oath

• Motion to declare respondent in default

• Motion for reconsideration of any decision 5. Due Process

or order of the LA
• Procedural due process means that a party
• Appeal from any interlocutory order
to a care must be given sufficient
• Appeal from issuance of certificate of opportunity to be heard

finality of the decision by the LA

• A formal type hearing is not at all times and
• Appeal from orders issued by the LA in the in all instances essential to due process

course of execution proceedings

• Such other pleadings, motions and 6. Due Process Includes Impartiality of

petitions of similar nature
the Appeal Body
• It is self evident that the officer who
Non Appearance of Parties reviews a case on appeal should not be the
• 1st-Proceed with 2nd Conference
same person whose decision is the subject
• 2nd- Considered Waived:
of review

• LA terminate mandatory conciliation

• Direct complainant /petitioner to fil a 7. Suspension of Proceedings

verified position paper/evidence
• All actions for claims against such
• Render a decision on the basis of corporation pending before any court,
evidence
tribunal, board or body shall be suspended
accordingly

2. Binding Effect of Compromise

Agreement 8. Resolution of Doubt in Law or
Evidence
General: judgement on a compromise • It is a well settled doctrine that if doubts
agreement puts an end to a litigation and is exist between the evidence presented by
immediately executory
the Er and the EE…It is a time honored rule
that in controversies between laborer and
Exception: Rules of Court requires a special his mater, doubts reasonably arising from
authority before an an attorney can the evidence, or in the interpretation of
compromise the litigation of his clients
agreements and writing should be resolved
in the former’s favor.

Final and Executory Judgement Cannot

be Modified/Negotiated 9. Decision of LA
• Compromise Agreements are encouraged, • Shall render his/her decision within 30
this general rule does not apply to decision calendar days without extenstion

that have become final and executory

• After submission of the case

• OFW Cases: Decided within 90 calendar

3. Motion to Dismiss days after the filing of the complaint

• Dismissed Case is not necessarily dead

Labor Reviewer BUKSU LAW Wu

 Article 228 Appearances and Fees Where to File Appeal?
• RAB or Region

A. Non lawyers may appear before the

Commission or any LA Requisites for Perfection of Appeal
A. Represent themselves
1. Filed within reglementary period

B. Represent their organization/ 2. Verified by Appellant

members thereof
3. Form of Memorandum of Ppeal

B. No Attorney’s Fees, Negotiation Fees 4. With Three typewritten/printed copies

or similar charges of any kind arising 5. Accompanied with proof of payment,

from any CBN or conclusion of CA shall cash/surety bond

be imposed on any individual member of

the contracting union; Atty’s fees may be Motion to Reduce Bond
charged against union funds in an
(McBurnie Guidelines)
amount agreed upon by the parties

• Meritorious Ground
Chapter III • Reasonable Amount
APPEAL • Accompanied by the posting of
provisional cash or surety bond
equivalent of 10 percent of monetary
Article 229 Appeal award

• Compliance shall suspend the running of

• Within 10 Days of Decision, Awards or the 10 days reglementary period

Orders(DOA) of the LA from receipt of • NLRC retains authority and duty to

parties
resolve the motion to reduce bond and
determine final amount

Grounds: P F Q G • IF NLRC denies the motion to reduce

1. Prima Facie evidence of abuse of bond; refresh of 10 day period

discretion

2. DOA was secured through Fraud,

coercion, including graft and corruption
NOTE:
3. made purely on Question of Law
• PERIOD TO POST THE BOND; within 10
4. if Serious error in finding of facts are days

raised which would cause Grave or • NO BOND, NO APPEAL PERFECTED

Irreparable damage or injury to the

appellant
Filing vs Perfection of Appeal
(Computer Innovations Case)
Appeal by ER • “The filing a motion to reduce bond shall
• May be perfected only upon the posting of not stop the run-in got the period to
a cash bond/surety bond
perfect appeal”
• Issued by a reputable bonding company

• Bond Amount equivalent to the Monetary

Award in the judgment appealed from
Property Bond
• YES, acceptable

Reinstatement
• Immediately executory
Conditional Bond
• Failure to fulfill those conditions is
NOTE: Commission shall decide all cases tantamount to a failure to post the bond
within 20 calendar days of receipt of the required by law

answer of the appellee; Shall be final and

executory after 10 days from receipt by Effect of Perfection of Appeal on
parties
Execution
• Shall stay the execution of the decision of
10 days= Calendar and not working days
the LA; except reinstatement

Labor Reviewer BUKSU LAW Wu

Finality of NlRC Decision; Entry of Article 230 Execution of Decisions,
Judgment Orders, or Awards
• Finality of Decisions, Resolutions or Order
of the Commission shall become final and • Secretary of DOLE/ Regional Director, The
executory after 10 calendar days from Commission or LA, med-arbiter or
receipt by counsel or rep of the parties
Voluntary arbiter or on motion of any
• Entry of Judgment
interested party

• Upon Expiration of the 10 calendar days • Issue a write of execution on a judgment

period
within five years from the date it becomes
final and executory

NLRC to CA (St Martin Case) • Secretary of DOLE, Chairman of the

• The way to review NLRC Decision is Commission may designate special sheriffs

through Special Civil Action of Certiorari

under Rule 65
Execution
• Jurisdiction belongs to SC and CA
A. Secretary

• Petition should be initially presented to the B. DOLE Regional Director

lower of the two courts; CA

C. NLRC

• 60 days to file a Petition for Certiorari

D. Labor Arbiter

E. Med-Arbiter

Exhaustion of Administrative Remedies F. Voluntary Arbitrator

• A petition for certiorari should be preceded G. Panel of Arbitrator

by exhaustion of administrative remedies

General Rule: RTC cannot issue injunction

No Second MR against NLRC or LA

• NLRC Rules dos not allow a second

motion for reconsideration
Exception: When a third party asserts a
claim over the property levied upon, the
Certificate of Non Forum Shopping claimant may vindicate his claim by
• An act or attempt to present the same independent action the proper civil court
dispute to different adjudicators in the which may stop the execution of the
hope of securing a favorable ruling
judgment on property not belonging to the
• FORUM SHOPPING NOT ALLOWED judgment debtor

• Certificate must be made by Petitioner

Third Party Claim- filed within 5 days

Remand to NLRC
• Ambiguity that lends to plausible petition Article 231 Contempt Powers of the
for certiorari
Secretary of Labor
• Quitclaim Clarifications

• Secretary may hold person in direct or

Judicial Review by Supreme Court on indirect contempt and impose the
issues: appropriate penalties
• Jurisdiction

• Grave abuse of Discretion

CA to SC; Only Questions of Law

• Petition on Certiorari under Rule 45

• Must be filed within 15 days from notice of

the judgment or final order or resolution
appeals from

• If petition failed to file under Rule 45 within

15 days; Special civil action of certiorari
under Rule 65 cannot be used

Labor Reviewer BUKSU LAW Wu