MODULE NO.

2
LABOR STANDARDS AND SOCIAL LEGISLATION
Academic year 2020-2021

MODULE SUMMARY
The broad purpose of this second module is to help you understand the different
elements / factors affecting work relationship and the classification of employees.
In this module, the definition of employer and employee will be extensively
explained and the different tests used to determine the existence of an employer-
employee relationship. The classification of employee will also be discussed and
how it differs from each other.

MODULE AIMS

 To provide student with knowledge and understanding of the definition of

employer and employee.
 To provide students with knowledge and understanding of the determination
of the existence of employer-employee relationship.
 To provide students with knowledge and understanding of the different test
used to establish employer-employee relationship.
 To provide students with knowledge and understanding of the classification
of employees.

LEARNING OUTCOMES
By the end of the module, students should be able to:
  Demonstrate knowledge and understanding of the most important
requirement in order for the Labor Code provisions to apply.
 Explain the different test of employment relationship and the different
cases / scenario where employment relationship exists
 Differentiate “Job-Contracting” from “Labor-Only Contracting”

PERFORMANCE STANDARD
1. The student must be able to answer the guide questions that will be provided.
2. The student must have read all the assigned cases and be able to discuss the
relevant issue of the case and how the Court resolved the issue.

COURSE CONTENT

3. WORK RELATIONSHIP

3.01 Definitions: Employer, and Employee (See any Law Dictionary)

 Employee – Uy v. Villanueva, 526 SCRA 73 (2007)

 Employer-Employee Relationship
Factual Test – Television and Production Exponents, Inc., v.
ServaÑa, 542 SCRA 578, 01/28/08
Established – Wack-Wack Golf and Country Club v. NLRC 456
SCRA 280 (2005)
Factors – Gabriel v. Bilon, 515 SCRA 29, 02/07/07
Control Test – Lopez v. MWSS, 462 SCRA 425 (2005)
Economic Test – Francisco v. NLRC, 500 SCRA 690 (2006)
Agreement – Sonza v. ABS-CBN Broadcasting Corp., 431
SCRA 381 (2004)
Absence of Relationship – Lopez v. Bodega City, 532 SCRA
56 (2007)
 3.02 Independent Contractor and Labor Contractor Only (See Arts.,
106-107; 109 of the Labor Code; DOLE Dept. Order No. 18-A, series
of 2011; and DOLE Dept. Order No. 14, series of 2001)

 Independent Contractor
- PAL, Inc., v. Ligan, 547 SCRA 181 (2008) “Trilateral
Relationship and Requirements”
- MERALCO, etc. v. NLRC, 548 SCRA 315 (2008) “Liability”
 Labor Contractor Only
- Mandaue, etc. v. Andales, 548 SCRA 17 (2008) “Requisites
and Prohibition / Effects of Finding”

4. EMPLOYEE CLASSIFICATION (See Arts 280-281, now Arts 295-296 of

the Labor Code)
- Glory Philippines, Inc., v. Vergara, 532 SCRA 253 (2007) “Recognition
and Types”
- San Miguel Corporation v. NLRC, 297 SCRA 277 (1998) “Employer
Determination”

4.01 Regular Employees (See Art. 295, 1st Par)

- Philips Semiconductors etc. v. Fadriquela, 427 SCRA 408 (2004)
“Types of Regular employees”
 Nature of Work
- Universal Robina v. Caballeda, 560 SCRA 115 (2008)
 Hiring Extended Period
- Hanjin etc. v. Ibanez, 555 SCRA 337 (2008)
 Contract to Contract
- Universal Robina v. Catapang, 473 SCRA 189 (2005)
 Length of Time
- Abesco Construction and Development Corp. v. Ramirez 489
SCRA 9 (2006)
 Seafarers
 - Dela Cruz v. Maersk, etc., 551 SCRA 285 (2008)
4.02 Project Employees (See Art. 295, 1sr Par.)
 Definition
- PNOC Energy Development Corp. v. NLRC, 521 SCRA 227
(2007)
 Project Employees Identification
-Chua v. Court of Appeals, 440 SCRA 121 (2004)
 Rationale
- De Ocampo v. NLRC, 186 SCRA 360 (1990)
 Employer Obligation
A.M. Oreta and Co., Inc. v. NLRC, 176 SCRA 218 (1989)

 Specific Obligation
- Labayog v. M.Y. San Biscuits, Inc., 494 SCRA 486 (2006)
 Continuous Rehiring
- C.E. Construction Corp., v. Cioco, 437 SCRA 648 (2004)
 Workpool Employees
- Maraguinot v. NLRC, 284 SCRA 539 (1998)
 Length of Service
- Palomares v. NLRC, 277 SCRA 439 (2007)

4.03 Casual Employees (See Art. 296 of the Labor Code)

 Nature of Work
- A.M. Oreta & Co. Inc., v. NLRC, 176 SCRA 218 (1989)
 One Year Service
- Integrated Contractor and Plumbing Works, Inc., v. Court of
Appeals, 464 SCRA 544 (2005)

4.04 Fixed Period – Contract

 Validity Tests
- Caparoso v. Court of Appeals, 516 SCRA 30 (2007)
 Seasonal Employees
- Poseidon Fishing v. NLRC, 482 SCRA 717 (2006)
 4.05 Probationary Employees (See Art. 296 in relation to Art. 62 (2nd
Sentence); and Book VI, Rule I, Sec. 6, Rules to Implement the Labor
Code)
 Definition
- Phil. Federation of Credit Cooperative, Inc. v. NLRC, 300
SCRA 72 (1998)
 Purpose
- Espina v. Court of Appeals, 519 SCRA 327 (2007)
 Employer Right to Set Period / Obligation
- Mitsubishi Motors Corp., v. Chrysler Philippines Labor
Union, 433 SCRA 206 (2004)
 Duration / Exception
- Bernardo v. NLRC, 310 SCRA 186 (1999)
 Criteria of Regularization
- Alcira v. NLRC, 431 SCRA 508 (2004)
 Extension of Contract
- Mariwasa Manufacturing Inc., v. Leogardo, 169 SCRA 465
(1989)
 Absorbed Employees
-Cebu Stevedoring Co. Inc., v. Regional Director, 168 SCRA
315 (1988)
 Double Probation
- A Prime Security Service, Inc., v. NLRC, 322 SCRA 283
(2000)
 Termination and Salary
- Orient Express Placement Philippines v. NLRC, 273 SCRA
256 (1997)
 Rule on Private School Teachers
- Chiang Kai Shek College v. Court of Appeals, 437 SCRA 171
(2004)

TEACHING AND LEARNING ACTIVITIES

A lecture on the topics covered by the course content will be provided by the
professor and the students are encouraged to participate by asking questions and
providing insights to the topics beings discussed. A consultation hour every class
will be conducted for the students to validate their learning through personal
research on the topics under this module.

ASSESSMENT / TASK
1. A type written answers to the guide questions provided in this module must be
submitted at the end of the class period.
2. A type written case digest must be submitted at the end of the Class Session.
(All given cases in the Course Content of this Module).
3. The assigned student to recite / report on the case must be able to explain the
relevant issues of the case and the Court Ruling.

REFERENCES / RESOURCES

 PRESIDENTIAL DECREE NO. 442 OF 1974, AS AMENDED AND

RENUMBERED
 ANY LABOR LAW BOOKS WITH ANNOTATIONS