• Midterm Period:

• Week 1-2

INTRODUCTION/GENERAL PRINCIPLES/ LABOR AND CONSTITUTION/ INTERNATIONAL COVENANTS/

LABOR & THE CIVIL CODE/ LABOR CODE GENERAL PROVISIONS

(PART I)

I.                    GENERAL PRINCIPLES

Labor in General; Law Classification; Purpose of Labor Law

II.                  HISTORICAL PERSPECTIVE

History of Labor in the Philippines

1.       Adkins vs Children’s Hospital (261 U.S. 525)

2.       People vs. Julio Pomar, G.R. No, L-22008, 03 Nov. 1924

3.       West Coast Hotel Co. vs Parrish (300 U.S. 379; 1937)

4.       Philippine Association of Service Exporters vs. Drilon (30 June 1988)

III.                LABOR AND THE CONSTITUTION

A.      Constitutional Provisions – In general – Art. II, Secs. 5, 18

·       Aris (Phil.), Inc. v. NLRC, 200 SCRA 246 (91) B.

B.      Welfare State

·       Alalayan v. National Power Crporation, 24 SCRA 172 (68)

C.      Social Justice – Art. II, Sec. 10, and Art. XII, Secs. 1-2, Constitution

Definition

·       Calalang v. Williams, 70 Phil. 726 (40)

·       Central Bank Employees Association, Inc. v. Bangko Sentral ng Pilipinas, G.R. No. 148208,
December 15, 2004;

D.      Labor Sector – Art. II, Sec. 18 (Protection to Labor Clause)

Basis of Article 4, and Article 1702 of the Civil Code

Section 18, not meant to oppress employers.

·       Agabon v. NLRC, G.R. No. 158693, Nov. 17, 2004.

E.       Specific Labor Rights – Art. XIII, Sec. 3 (protection to Labor Clause)

F.       Other Provisions relating to Labor under Article II, Sections 9, 10, 11, 13, 14, 18 and 20.

G.      Constitutional Rights and Labor Laws

·       Globe Mackay Cable vs NLRC (March 3, 1992)

·       PLDT vs Balbastro (March 28, 2007)

·       Maquiling vs Philippine Tuberculosis Society (February 4, 2005)

H.      Constitutional Rights under the Bill of Rights, Article III, Secs. 1, 4, 7, 8, 10, 16, 18(2)

Labor considered as “Property” (Section 1, Article III) The only relevant aspect of Section 1, Article III,
to labor cases

·       Phil. Movie Workers Assn. v. Premiere Productions Inc., 92 Phil. 843 (53)

·       Sibal v. Notre Dame of Greater Manila, 182 SCRA 538 (90)

Due Process Requirements

·       Century Textile Mills, Inc. v. NLRC, 161 SCRA 528 (89)

Section 4, Freedom of Speech, of Expression and of the Press and Peacebly to Assemble and Petition
the Government for Redress of Grievances.

·       Phimco industries, Inc. v. Phimco Industries Labor Association (PILA) G.R. No. 170830, August 11,
2010

Section 8, Right to Organize Unions

Relate it to Article 3, 218 (A) (C) and Article 257

Section 10, Non-impairment of Obligations of Contracts

Liberty of Contract and State Interference

·       Leyte Land Transportation Co. v. Leyte Farmers and Workers Union, 80 Phil. (48)

·       Victoriano v. Elizale Rope Workers Union, 59 SCRA 54 (74)

·       Hacienda Luisita, Inc. v. PARC, G.R. No. 171101, July 5, 2011

·       Serrano v. Gallant Maritime Services, Inc. G.R. No. 167614, March 24, 2009 (Police power vs. Non-
impairment clause)

Section 16, Speedy Labor Justice

·       Cadalin v. POEA, NLRC, G.R. Nos. 104911-14 and 105029-32, December 5, 1994

Section 18 (2) Involuntary Servitude

Involuntary Servitude, defined

Note: Article 300, Labor Code, Termination by Employee

·       Bank of the Philippines Islands v. BPI Employees Union-Davao Chapter-Federation of Unions in BPI
Unibank, G.R. No. 164301, August 10, 2010

Compulsory fulfillment of military or civic duty – Article 301, exception to constitutional proscription
on involuntary servitude

I.        Article XIII of the Constitution, Section 1, Section 2, Section 3, Section 14, 

Section 1 (Human Dignity, Inequality and Discrimination)

·       International School Alliance of Educators (ISAE) v. Quisumbing, G.R. No. 128845, June 1, 2000

·       Watch: Philadelphia
 

Section 3 (Article XIII), not self-executing and not judicially enforceable

·       Agabon v. NLRC

·       Serrano v. Gallant Maritime Services, Inc. 5th par of Sec. 10. Of RA 8042, violated several
provisions of the constitution.

·       Asia Brewery, Inc. v Tunay na Pagkakaisa ng mga Manggagawa sa Asia (TPMA), G.R. Nos. 171594-
96, September 18, 2013

Section 14 – Protection to women

·       Watch North Country  (2005) ...

      Unlawful Matching of women with Foreigners (RA 6955)

J.        Constitutional provisions which are not applicable in Labor Law.

Right to due process

·       Wenphil Doctrine – Wenphil v. NLRC 170 SCRA 69, February 8, 1989

·       Serrano Doctrine – Serrano v. NLRC, G.R. No. 117040, January 27, 2000

·       Agabon Doctrine – Agabon v. NLRC, G.R. No. 158693, Nov. 17, 2004

·       Abbott Lab Doctrine /Contractual Due Process doctrine – Abbott Laboratories, Philippines, v.
Alcaraz, G.R. No. 192571, July 23, 2013

Right to equal protection of the laws

·       Yrasuegui v. Philippine Airlines, Inc. G.R. No. 168061, Oct. 17, 2008

Discrimination in employment and occupation; types of discrimination?

Protected characteristics (ILO 111)

Anti-age discrimination in employment – RA 10911

·       PT and T v NLRC, 272 SCRA 596, May 23, 1997

·       RE: Request of Muslim Employees in the Different Courts in Iligan City (RE: Office hours); A.M. No.
02-2-10-SC, Dec. 14, 2005

·       ISAE v. Quisumbing, G.R. No. 128845, June 11, 2000

·       Star Paper Corp v. Simbol, G.R. No. 164774, April 12, 2006

Right against self-incrimination; exception; right against self incrimination must be claimed; otherwise,
waived.

·       Rosete v. Lim, G.R. No. 136051, June 8, 2006

Right to counsel and to remain silent; invocation of right to counsel in an administrative proceeding is
not available

·       Manuel v. N.C. Construction Supply, G.R. No. 127553, Nov. 28, 1997, 282 SCRA 326

Effect of failure of employer to inform employee of his right to counsel

·       Punzal v. ETSI Technologies, Inc. G.R. Nos. 170384-85, March 9, 2007

·       Lopez v. Alturas Group of Companies, G.R. No. 191008, April 11, 2011, 647 SCRA 568

Right against unreasonable searches and seizures and to privacy of communication and
correspondence

·       Waterous Drug Corporation v. NLRC and Catolico, G.R. No. 113271, October 16, 1997, 280 SCRA
735

·       Pollo v. Chairperson Karina Constantino-David, G.R. No. 181881 Oct. 18, 2011

IV.                INTERNATIONAL COVENANTS AND LABOR AND WELFARE LAWS

1.       Universal Declaration of Human Rights (Art. 3, 7, 17, 22, 23, 24,25)

2.       International Covenant of Economic, Social and Cultural Rights (Part III, Arts. 6,7, 9 and 11)

·       International School Alliance of Educators (ISAE) v. Quisumbing, G.R. No. 128845, June 1, 2000

·       Standard Chartered vs. Confessor (June 16, 2004)

 
V.                  LABOR AND THE CIVIL CODE

A.      Role of Law – Art. 1700, New Civil Code of the Philippines

·       Becmen Service Exporter and Promotion, Inc. v. Spouses Simplicio and Mila Cuaresma, G.R. Nos.
182978-79 & 184298-99, April 7, 2009

·       Leyte Geothermal Power Progressive Employees Union ALU-TUCP v. Philippine National Oil
Company-Energy Development Corp, G.R. no. 170351, March 30, 2011

B.      Employer-Employee Standard of Conduct – Art. 1701, New Civil Code of the Philippines

·       PAL Employees vs. NLRC (August 22, 1996)

·       PT & T vs. NLRC, 272 SCRA 596

C.      Article 1702, New Civil Code of the Philippines in relation to Article 4 of the Labor Code

Doubt or ambiguity in labor contracts

·       Colegio de San Juan de Letran-Calamba v. Villas, G.R. No. 137795, March 26, 2003

Doubt or ambiguity in evidence

·       Century Canning Corporation v. Ramil, G.R. No. 171630, August 8, 2010, 627 SCRA 192, 202

D.      Article 19 (Saving provision), New Civil Code of the Philippines

·       Mata v. Agravante, G.R. No. 147597, August 6, 2008

·       Czarina Malvar v. Kraft Food Phils., Inc. G.R. No. 183952, Sept. 09, 2013

VI.                THE LABOR CODE OF THE PHILIPPINES

A.      Name of Decree (Art. 1); Date of Effectivity; (Art. 2)

B.      Declaration of Basic Policy (Art. 3) Memorize

C.      Construction in Favor of Labor (Art. 4) in rel. to Art 1702 CC, Memorize

D.      Rule Making Power of DOLE: (Art. 5) Validity;

E.       Applicability of the Labor Code – Art 6; 291 (276); Art. IX, B. Sec. 2 (1), Constitution

Application of the Labor Code to Filipinos and Foreigners (Expats)

·       United Tourist Promotions (UTP) and Ariel Jersey v. Harland B. Kemplin, G.R. No. 205453, February
5, 2014

·       Dreamland Hotel Resort and Westley Prentice, v. Stephen Johnson, G.R. No. 191455, March 12,
2014

Test/Effectivity/Applicability:  When is there an employment relationship, and when there is none

Watch:

Play Video

(Labor Law Lecture Part 1 by Attorney Anna Maria Abad Dean of Adamson University College of Law)

Watch:

Play Video

(Labor Law Lecture Part 2 by Attorney Anna Maria Abad Dean of Adamson University College of Law)
(Independent vs Labor Only Contracting; Management Prerogative; )

ER as an economic and legal concept and its significance

The various definitions of employer and employee

Be prepared with an employment contract

Elements or tests of employer-employee relationship

Independent and labor only contractors

Bilateral and trilateral employment relationships

ILO Recommendation No. 198: Employment Relationship Recommendation, 2006,

Reasonable Causal Connection Rule (Labor Arbiter vs. Regular Courts)

a. RTC Jurisdiction CBA - Halaguena vs PAL, October 2, 2009

b. Independent Contractor (money claims) - Sonza vs. ABS CBN

c. Managing Associate of a Health care business (money claims) - Consulta vs Court of Appeals, G.R.
No. 145443, March 18, 2004

d. action for damages but based on E-ER, Banez vs. Valdevilla, May 9, 2000

Bright Maritime Corp vs. Fantonial, G.R. o. 165935, Feb. 18, 2012.

Private School Teachers

·       UST vs. NLRC (182 SCRA vs. 371)

·       Moreno vs. San Sebastian College (March 28, 2008)

Local Water Districts

·       Tanjay Water vs. Gabaton, G.R. No, 63742 and 84300, april 17, 1989 (Local Water Districts)

GOCC’s and its employees. Check whether GOCC w/ or w/o charter.

·       Paloma vs. NLRC and PAL (June 14, 2008)

·       PNOC Energy Development Corp. v. NLRC, 201 SCRA 487 (91)

·       Hugo vs LRTA, G.R. No. 181866, March 18, 2010

·       Jurisdiction over dismissal of employee for offenses committed while employed by a GOCC but
discovered after it was privatized. Luzviminda Ang vs. PNB, G.R. No. 178762, June 16, 2010.

Additional Readings for self-enrichment :

·       Feliciano vs Commission on Audit, G.R. No. 147402, January 14, 2004

·       Casino Labor Association vs Court of Appeals: GOCC’s PAGCOR, Phil. Casino Operators Corp, and
Phil Special Services Corp. (Original Charter, hence CSC)

·       Postigo vs Philippine Tuberculosis Society, Inc, G.R. No. 155146, January 24, 2006.

·       Camporedondo vs NLRC and Phil National Red Cross, GOCC with own charter G.R. No. 129049,
August 6, 1999

·       Trade union of the Philippines and allied services, vs National Housing Corporation, G.R> No.
49677, May 4, 1989

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 • Week 3-4

Entities immune from suit:

·       Department of Foreign Affairs vs NLRC, G.R. No, 113191, September 16, 1996.

·       Jusmag Phils vs. NLRC. G.R. No. 108813, Dec 15, 1994 (Foreign Government)

·       SEAFDEC v Acosta, G.R. No.s 97468-70, Sept. 2, 1993

Exception to the rule:

·       U.S. vs. Hon. Rodrigo, G.R. No. 79470, February 26, 1990, 182 SCRA 644, 664 (Filipino cook case,
proprietary activity)

·       Ebro III vs. NLRC, G.R. No. 110187, Sept. 4, 1996, 261 SCRA 399, Estoppel does not confer
jurisdiction over an immune entity. Suability vs. liability

              INTERNATIONAL ORGANIZATION:

·       SEAFDEC-AQD vs. NLRC, G.R. No. 86773, Feb. 14, 92, Emp. Of intergovernmental or intl. org

CORPORATE OFFICERS (termination) and their monetary claims

·       WPP Communications vs. Galera, G.R. No. 169207 and Galera vs. WPP Communications, G.R. No.
169239, 25 March 2010

·       Matling Industrial and Commercial Corp vs. Coros, G.R. No 157802, October 13, 2010.

·       Locsin vs. Nissan Lease Phils, Inc. G.R. No. 185567 October 20, 2010.

·       Renato Real v. Sangu Philippines, Inc. G.R. No. 168757, January 19, 2011

·       Cosare v. Broadcom Asia, Inc., G.R. No. 201298, Feb. 5, 2014.

Elements to determine whether a dispute is an intra-corporate controversy or not

·       Prudential Bank and Trust Company vs. Reyes, G.R. No. 141093, February 20, 2001

·       Rural Bank of Coron (Palawan) Inc. vs. Cortes, G.R. No. 164888, December 6, 2006.

Transfer of jurisdiction from SEC to Regular Courts under RA 8799, (Securities Regulation Code)

Claims for benefits and damages in intra-corporate cases are cognizable by Regular courts.

Issues involving alien party (when phil. law prevails)

·       Pakistan International Airlines Corp vs Ople, G.R. No. 61954, Sept. 28, 1990
Application of the doctrine of forum non conveniens Cases:

·       Pacific Consultants International Asia, Inc. v. Schonfeld, G.R. No. 166920, February 19, 2007.

·       Manila Hotel Corp v. NLRC, G.R. No 120077, October 13, 2000

·       Philippine National Bank v. Cabansag, G.R. No, 157010, 6/21/2005

A.      Policy Declaration – Art. 3, LC

B.      Law Interpretation – Art. 4, LC Art. 1702, New Civil Code of the Philippines (Note: Discussion on
Labor Code and the Civil Code)

·       GSIS vs. Jean Raoet (December 23, 2009)

·       ARCO Metal Products vs. SAMARM-NAFLU (May 14, 2008)

·       Penaflor vs. Outdoor Clothing (January 21, 2010)

·       Olisa vs. Escario (September 27, 2010)

Balancing Conflicting Claims

·       Phil. Telephone and Telegraph Corp. v. NLRC, 183 SCRA 451 (90)

C.      Work Relationship

1.       Various definitions of employer and employee

2.       Employer and Employee  - Art. 84, 97 (a), (b) (c) and (e); 173 (before 167) (f), (g); 219 (e), (f) and
(m) 29; 296

3.       R.A. No. 1161, as amended by RA 8282 (SSS Act of 1997, Sec. 8. (c) (d) (j)

4.       RA No. 8291 GSIS Act of 1997) Sec. 2 (d)

·       Baguio vs. NLRC (October 4, 1991)

·       DBP vs. NLRC (233 SCRA 250)

·       Neri vs. NLRC and FEBTC (224 SCRA 717)

5.       Importance –
·       LVN Pictures vs. Philippine Musicians Guild (1) SCRA 132, G.R. No. L-12582, Jan. 28, 1961;
Sampaguita Pictures vs. Philippine Musicians Guild, G.R. No. L-12598, Jan. 28, 1961 (Right of control
test, employee)

6.       Labor Dispute (Article 212 (l), LC)

·       SMC Employees Union vs. Bersamira (G.R No. 87700;1990)

7.       Employment Contract; perfection and commencement: 

·       C.F. Sharp & Co. Inc. vs Pioneer Insurance, G.R. No, 179469, Feb. 15, 2012

6.   Factors to determine E-ER

·       Rosario Bros., Inc. v. Ople, 131 SCRA 72 (84)

·       Consulta v. Court of Appeals (March 18, 2005)

·       Besa v. Trajano (Dec. 29, 1986)

·       Brother Labor Unity Movement of the Phils. v. Zamora (Janunary 7, 1987)

Control Test/Test to Determine Existence of EER (Different Job/Work)

·       Ruga v. NLRC, 181 SCRA (90)

·       Francisco v. NLRC, August 21, 2006

·       Paradise Sauna Massage Corp. v. Ng, 181 SCRA 719 (90)

·       Sonza vs ABS CBN, June 10, 2004, G.R. No. 138051(on camera talent-ind cont)

·       Orozco vs CA, G.R. No, 155207 Aug 13, 2008

Additional Readings for Self-Enrichment

·       Dumpit Murillo v. CA, G.R. No. 164652, June 8, 2007

·       Farley Fulache v. ABS CBN, G.R. No. 183810, 610 SCRA 567, January 21, 2010 (off camera talents
-emp)

·       Ymbong v. ABS CBN, March 7, 2012

·       Peoples Broadcasting v. Sec. of Labor, G.R. No. 179652, March 6, 2012

·       Fuji Television Network v. Espiritu, G.R. No. 204944-45, Dec. 3, 2014

·       Begino v. ABS CBN, G.R. No. 199166, April 20, 2015

·       G.R. No. 235315, Paragele, et al. v. GMA Network, Inc., July 13, 2020

·       Tongko vs. Manulife (June 29, 2010) (Insurance Agent)

·       Insular Life vs NLRC – G.R. No. 84484, 11/15/89 (Insu. Agent)

·       Vinoya vs. NLRC (Feb. 2, 2000)

·       La Suerte vs. Director of BLR (123 SCRA 679)

·       Jo vs. NLRC – G.R. No. 121605. 01/02/2000

·       Equitable Bank vs. NLRC, G.R. No, 102467, June 13, 1997 (Lawyer)

·       Sycip, Gorres, Velayo and Co. De Raedt, G.R. No, 167648, June 16, 2009.

·       Bernante vs. PBA, G.R. No, 192084, Sept. 14, 2011 (Referee)

·       South East International Rattan Inc v. Coming, March 12, 2014 (Pakyaw in the plant)

·       David v. Macasio, July 4, 2014

·       Locsin v. PLDT, October 2, 2009

·       Tenazas et. al. v. R. Villegas Taxi Transport, April 2, 2014

·       R Transport Corp. v. Ejandra, G.R. No. 148508, May 20, 2004 (Bus Driver)

·       Paguio Transport v. NLRC and Melchor, G.R. No. 119500, August 28, 1998 (Taxi Driver)

·       Paguio v. NLRC, G.R. No. 147816, May 9, 2003 (account exec.)

·       Calamba Medical Center Inc. v. NLRC, G.R. No. 176848, Nov. 25, 2008 (Resident Physician)

·       Javier v. Flyace Corp. February 15, 2012

·       Atok Big Wedge Company, Inc. v. Gison, G.R. No. 169510, August 8, 2011 (lawyer-consultant)

·       Republic of the Philippines, rep by SSS v. Asiapro Cooperative, G.R. No. 172101, November 23,
2007

Department Order No. 155-16 Rules and Regulations Governing the employment and working
conditions of Collectors in the Debt Collection agency

Department Order No. 156-16 Rules and Regulations governing the Work and Working Conditions of
Fishers on Board Fishing Vessels;

Rules on Local Employment

Economic Reality Test

·       Sevilla v. Court of Appeals, 160 SCRA 171 (88)

·       Francisco vs NLRC, G.R. No, 170087, August 21, 2006

·       Orozco vs CA, G.R. No, 155207 Aug 13, 2008

REGULAR AND NON-REGULAR OR NON-STANDARD FORMS OF EMPLOYMENT (NSFE)

8.       Employer-Employee Relationship / Independent Contractor vs Labor Only Contractor –

Is contractualization and Endo the same?

a. Article 106 to Article 109 of the Labor Code

b. Department Order No. 174-17, Series of 2017

b. Department Order No. 18-A, Series of 2011 (Dissect)

c. Department Circular No. 01-12

d. Job Contracting valid exercise of management prerogative

·       Goya Inc. v. Goya Inc. Emp. Union-FFW, G.R. No. 170054, January 21, 2013

·       Coca-Cola Bottlers v. Dela Cruz, et. al., G.R. No. 184977, 7 December 2009

·       Temic Automotive Phils. v. Temic Automotive Phils. Inc. Emp Union-FFW, G.R. No. 186965, 23
December 2009

·       Aviado v. Procter and Gamble, G.R. No. 160506, March 9, 2010

e. Labor Advisory No. 10 Series of 2016

f. Effects of Labor-Only Contracting

g. Trilateral relationship in job contracting (Dole Dept 18, Ser. 2002)

Department Order No. 174-17

h. Contracting; permissible contracting; job contracting v. labor only contracting; Elements of Job-
Contracting; Capitalization requirement;

i. Labor Only Contracting Arrangements prohibited by law (Dept Order 18-2, Ser. of 2002; Labor
Advisory No. 10, Series of 2016); Elements of labor only contracting

·       Manila Memorial Park vs Ezard D, Lluz, GR no. 20845, February 3, 2016

j. Effect of labor only contracting (Labor Advisory No. 10, Series of 2016) and valid job contracting
agreements

·       San Miguel Corp v. MAERC Integrated Systems, 405 SCRA 579, July 10, 2003)

k. Salient Features of DOLE 18-2 as amended by  DOLE 18-A, Series of 2011 as further amended by D.O.
174-17;

Mandatory registration of independent contractors; requirements for registration; obligation of ind.

Contractors; effect of non compliance; Net Financial Contracting Capacity; What cannot be Contracted
out(Negative List);

Exemption from New Requirements of DO 18-A (Dept. Circular No. 1, Series of 2012 re: BPO’s and
construction industries) as amended by DO 174-17

DOLE Certification; presumption

·       Gallego v. Bayer Phils. G.R. No. 179807, July 31, 2009

Burden of Proof: Principal

·       Garden of Memories Memorial Park v. NLRC, G.R. No. 160278, Feb. 8, 2012

Independent Contractors

·       Semblante v. CA G.R. No. 196426, August 15, 2011 (Masiador/Sentenciador)

·       Babas v. Lorenzo Shipping Corp G.R. No. 186091, Dec. 15, 2010 (Earmarks of an LOC)

Law-Agreement

·       Tabas v. California Manufacturing Co., Inc. 169 SCRA 497 (89)

Jurisdiction
·       SMC vs. NLRC (61 SCRA 719)

·       Pepsi vs. Galang (September 24, 1991)

·       Medina vs. Castro Bartolome (116 SCRA 597 G.R No. 59825)

Labor Flexibilization and the “gig” economy – prohibition on labor flexibilization, if any?

The Editorial Board, New York Times, “Defining Employee in the Gig Economy, July 18, 2015”

Short term employment? Precarious work?

VII. OTHER GENERAL LABOR CONCEPTS

              a. No work no pay principle –

·       Aklan Electric Cooperative v. NLRC, 323 SCRA 258 (2000)

              b. Equal pay for equal work rule –

·       International School Alliance of Educators (ISAE) v. Quisumbing, 333 SCRA 13 (2000)

              c. One Union- One Company Policy Rule

·       Philtranco Service Enterprises v. BLR, 174 SCRA 388, (1989)

·       Barbizon Philippines, Inc. v. Nagkakaisang Supervisor ng Barbizon 261 SCRA 738 (1996) Exception

              d. Non-Diminution of Benefits Rule (Re other benefits, includes bonus)

·       Sevilla Tranding Company v. Semana, 428 SCRA 239 (2004)

              e. Last in, First Out Rule (LIFO) –

·       Dela Salle University v. DLSU Emp. Asso. 330 SCRA 363 (2000)

              f. Burden of Proof in Termination Disputes vs. Proof of fact of Dismissal

·       Gurango v. Best Chemicasl and Plastics Inc, G.R. No. 174593, August 25, 2010

·       Labadan v. Forest Hills Academy et al., G.R. No. 172295, 23 December 2008

Cocoplans, inc. v. Villapando, G.R. No.183129, may 30, 2016

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VII. MANAGEMENT PREROGATIVE

Definition;

·       Royal Plant Worker’s Union v. Coca-Cola Bottlers Phils. G.R. No. 198783, April 15, 2013 (take out
chair for additional rest/break)

·       Ymbong v. ABSCBN, G.R. No. 184885, March 7, 2012 (automatic resignation once file Certificate Of
Candidacy)

·       Pollo v. Chairperson Karina Constantino-David, G.R. No. 181881 Oct. 18, 2011

A.      Discipline

Components of the right to discipline

·       China Banking Corp vs Borromeo – G.R. No. 156515

·       Deles, Jr. vs. NLRC, G. R. No. 121348, March 9, 2000

·       Yrasuegui vs. PAL – Oct. 17, 2008

B.       Transfer of employees

 Two kinds of Transfer; Principles on the prerogative to transfer employees, promote and demote

·       Phil. American Life vs Gremaje – G.R. No. 156963, 2004

·       Mendoza vs. Rural Bank of Lucban, G. R. No. 155421, July 7, 2004

·       Manila Pavillion v. Delada, G.R. No. 189947, January 25, 2012,

·       Prince Transport v. Garcia, G.R. No. 167291, January 12, 2011

·       Echo 2000 Commercial Corp. v. Obrero Filipino-Echo 2000, G.R. No. 214092, January 11, 2016

C.      Abolish position/automation/reorganization/redundancy/retrenchment programs

·       Pantoja v. SCA Hygiene Products Corp., G.R. No. 163554, 23 April 2010

D.      Productivity standard

2 schemes of productivity standard; DOLE to Establish Standard Output Rates; Time and motion
studies; Allowed time, meaning; Base rate, meaning

Output rates in work paid by results; effect if determined by employer or by DOLE

·       International School Manila v. International School Alliance of Educators (ISAE) G. R. No. 167826,
February 5, 2015

·       Aliling v. Feliciano, G.R. No. 185829, April 25, 2012

·       Philippine American Embroideries vs. Embroidery and Garment Workers, 26 SCRA 634, 639

·       Buiser v. Leogardo, Jr., 131 SCRA 151, 158 (1984)

E.       BONUS; Bonus, definition

General Rule; Bonus; When demandable and enforceable; when not

Forfeiture of bonus

·       Producers Bank of the Philippines v. NLRC, G.R. No. 100701, March 28, 2001, 355 SCRA 489

·       Traders Royal Bank v. NLRC, 189 SCRA 274 [1990]

·       Republic Planters Bank v NLRC, G.R. No. 117460, January 6, 1997 (forfeiture of bonus)

·       Liberation Steamship Co. Inc. v. CIR, 23 SCRA 1105 (68)

·       American Wire and Cable Daily Rated Employees’ Union v. American Wire and Cable Co., Inc.
(April 29, 2005)

·       Eastern Telecommunications Phils. Inc. v. Eastern Telecoms Emp. Union, G.R. No. 185665, February
8, 2012

F.       Change of working hours/ Changes in Law Requirements/ Union Leave with prior Management’s
approval policy
·       Manila Jockey Club Employees Labor Union –PTGWO, v. Manila Jockey Club, Inc. G.R. No. 167760,
March 7, 2007

·       St. Luke’s Medical Center Emp. Union-AFW v. NLRC, G.R. No. 162053, 517 SCRA 677, March 7,
2007

·       Malayan Employees Association-FFW v. Malayan Insurance Comp, Inc. G.R. No. 181357, February
2, 2010

F.  Rules on Marriage between employees of competitor-employers

Rules against marriage, when valid and when not valid

Reasonable Business necessity rule as applied to the Prohibition against

marriage policy. Or Bonafide Occupational Qualification Exception Rule 

·       Duncan Association of Detailman-PTGWO v. Glaxo Welcome Philippines, Inc., G.R. No. 162994,
September 17, 2004

·       PT & T v. NLRC, G.R. No. 118978, May 23, 1997, 272 SCRA 596

·       Star Paper Corp. v. Simbol, G.R. No. 164774, April 12, 2006

·       Note: Bonafide Occupational Qualification Rule in Yrasuegui v. PAL, G.R. No. 168081, October 17,
2008)

G. Rules on pregnancy out of Wedlock and pre-marital sexual relations.

·       Cheryll Santos Leus v. St. Scholastica’s College Westgrove, G.R. No. 187226, January 28, 2015

H.  Post-employment ban; non-compete and confidentiality clauses

Right to impose post-employment prohibitions

1. Non-compete or non-involvement clauses

·       Daisy B. Tiu v. Platinum Plans Phils, Inc. G.R. No. 163512, Feb. 28, 07

·       Avon Cosmetics v. Leticia Luna, G.R. No. 153674, 20 December 2006

2. Forfeiture for competition clause;3. Compensation for Competition Clause

4. Garden-Leave Clause; 5. Confidentiality and Non-disclosure clause

6. Non-solicitation clause; 7. Non-recruitment or anti-piracy clause

8. Inventions assignment clause (Intellectual property clause)

VIII        COMPROMISE AND WAIVER-  Art. 233, Labor Code (before Art. 227)

              When valid, when not valid

·       Phil. National Construction Corp. v. NLRC (G.R. No. 95816, October 27, 1992)

·       Veloso v. DOLE, 200 SCRA 201 (91)

·       Union of Filipino Workers v. NLRC, 207 SCRA 435 (92)

·       AG & P Co. of Mla. V. NLRC (G.R. No. 127516, May 28, 1999

·       ILADAN vs. LA SUERTE INTERNATIONAL MANPOWER AGENCY, INC. GR. No. 203882, January 11,
2016

·       Dela Rosa Liner, Inc. vs. Borela, G.R. No. 207286, July 29, 2015 

PART 2

BOOK ONE LABOR CODE

RECRUITMENT AND PLACEMENT OF WORKERS

  I.            EMPLOYMENT POLICIES, RECRUITMENT AND PLACEMENT OF WORKERS AND AGENCIES

International Labor Standards

Minimum age of employment: ILO Convention no. 138 (Minimum age convention), 1973; ILO
Convention 182 (Elimination of the worst forms of child labour), 1999

Provision of employment services: ILO Convention No. 88 (Organization of Employment Service) 1948

Equality of access: ILO Convention No. 111 (Discrimination in employment and occupation) 1958

General Principles

1.       Articles 12 and 13 of the Labor Code

2.       Sections 2 to 5 of RA 8042  (Migrant Workers and Overseas Filipinos Act)

3.       Rules 1 and 2, Part I of the 2002 POEA Rules

4.       Sections 1 and 2 of the Omnibus Rules Implementing RA 8042

Statutory Reference – Arts. 12-39; Book I, Rules III, IV, V, VI, VIII, Omnibus Rules Implementing the
Labor Code;  RA 8042

A.      Employment Policies – 12; Art. II, Sec. 9, Constitution; RA 8042 or the Migrant Workers and
Overseas Filipinos Act of 1995 (95)

Deployment ban and preconditions to deployment under the police power and the general welfare
clause. RA 8042 Sec. 4 and 5.

·       PASE, Inc vs. Drilon (G.R. No. 81958June 30, 1988), right to travel subject to public safety

B.      Employment Agencies; Government Machinery

Articles 14, 16, 18, 20, 21 and 24 of the Labor Code;

Executive Order No. 797;

Sections 23 to 30 and 32 to 34 of RA No. 8042;

Presidential Decree No. 1694 ;  B.P. 79

1.       Public Sector Agencies Employment Offices  – 12 (f); 14 (a) and Overseas Employment
Development Board – POEA 1 7

Philippine Overseas Employment Administration (POEA), EO 797 (82), EO 247 (87) Jurisdiction;

·       Chavez vs Bonto-Perez – G.R. No, 109808, 3/01/95

C.      Parties

Worker – 13 (a); Private Employment Agency – 13 (c); 12 (f); 14 (a) Private Recruitment Entity – 13 (e);
12 (f); 14 (a); Principal

 
D.      Recruitment and Placement – 13 (b) (RA 10022) Definition

·       People v. Panis, 142 SCRA 664 (86)

·       People v. Gasacao (Nov. 11, 2005)

·       People vs De Leon, G.R. No, 110391, Feb. 7, 97

Allowed Entities

Allowed Private Agencies and Entities – 16, 25. 18; 12 (f)

Prohibited Business Agencies and Entities – 16, 18, 25, 26

Government Techniques of Regulation – Private Recruitment and Placement Business

License vs. authority

Licensing – Citizenship, Capitalization Duration, Transferability and Fees – 27, 28, 29, 30; 15 (a) 2;

·       Seagull Maritime vs Balongan, G.R. No.s 83635-53, 2.28/89

Bonds – 31

·       Stronghold Insurance vs. CA, G.R. No, 88050, 1/30/92

·       Eastern Assurance vs Sec of Labor, G.R. Nos. L-79436-50, 1/17/92

Ban on Direct hiring – 18

Remittance of foreign exchange earnings -22

Worker Fees – 32

Reports Submission – 33; 14 (d)

Prohibited Practices – 34

E.       Illegal Recruitment – Art. 38, RA 8042, Sec. 6, Sections 9 to 14, 19, 22, 23, 24 and 25 (Rules
Implementing RA 8042) RA 10022

Essential elements of illegal recruitment

Simple illegal recruitment

Recruitment in large Scale

Recruitment committed by a syndicate

Illegal recruitment as economic sabotage

·       Aquino v. CA, G.R. No. 91896; November 1991)

·       People v. Cabacang (G.R. No. 113917; July 1995)

·       People vs Bulu Chowdury (G.R. No, 129577-80, feb. 15, 2000) (employees liable)

·       People vs Jamilosa, G.R. No. 169076, Jan. 23, 2007; Absence of receipt evidencing payment not
fatal for prosecution of illegal recruitment

·       Executive Sec et. al vs. CA, G.R. No. 131719, May 25, 2004

·       Romero v. People, G.R. No, 171644, Nov. 23, 2011

·       People v Bacos, G.R. No. 178774, Dec. 8, 2010.

Recruitment vs. Estafa

·       People vs. Calonzo, G.R. Nos 115150-55, Sept 27, 96; Conviction for both illegal recruitment and
estafa.

F.       Liabilities

1. Local recruitment agency

2. Foreign employer

3. Solidary liability

·       ACTI Overseas Corporation v. Echin, G.R. No. 178551, 11 October 2010

Theory of imputed knowledge

·       Sunace international mgmt. services, inc. vs NLRC, G.R. No, 161757, Jan 25, 2006

Contractual Stipulations (Articles 34 and 35 of the Labor Code)

·       Vir-Jen Shipping And Marine v. NLRC (G.R. No. L-58011-12; July 1982;

·       Vir-Jen Shipping v. NLRC (G.R. No. L-58011 & L-58012; November 1983)

·       Suzara v. Hon. Benipayo (G.R. Nos. L-57999, 58143-53; August 1989)

·       Seagull Maritime Corp. v. Balatongan (G.R. No. 82252; February 1989)

·       Ocean East Agency Corp. v. NLRC (G.R. No. 119320; March 1998)

Effect if Contractual stipulation in the OFW’s Employment Contract states that it be governed by
Foreign Law/Doctrine of Processual Presumption or presumed identity approach

·       ACTI Overseas Corporation v. Echin, G.R. No. 178551, 11 October 2010

Application of the Labor Code on Filipino OFWs who was deployed abroad and retrenched thereafter

·       International Management Services/Marilyn C. Pascual v. Roel Logarta, G.R. No, 163657, April 18,
2012

A seafarer not deployed - damages

·       Stolt Nielsen Transportation Group, Inc. et. al. v. Medequillo, Jr., G.R. No. 177498, January 18,
2012

 Rule on premature termination of employment contract of migrant workers   (Sec 10 par 5, RA 8042,

unconstitutional)

·       Serrano vs Gallant Maritime Services Inc. and Maslow Navigation Co., Inc. , G.R. No. 167614, Mar.
24, 2009

·       Pert/CPM Manpower Exponent Co., Inc. v. Vinuya, G.R. No, 197528, Sept. 5, 2012

·       Sameer Overseas Placement Agency, Inc., v. Cabiles, G.R. No. 170139, August 5, 2014 (RA 10022
restored Sec. 10, par. 5, RA 8042)

G.      Sanctions – 35; 38 (c), 39 LC; RA 10022

H.      Enforcement – 35, 36, 37, Book III, Rule I Sec. 10; Book V, Rule II, Sec. 1; Book VI, Rule I and Rule
III, Secs. 14-15

 
Suspension or cancellation of license or authority (Art. 35, Labor Code)

Regulatory and visitorial powers of the DOLE secretary (Three Visitorial Powers of DOLE Sec.)

·       Salazar vs. Achacoso, Art. 38 (c) authorizing DOLE Sec. to issue warrants declared as
unconstitutional.

• Module # - TITLEBook

• Week 7-8

A.      JURISDICTION AND REMEDIES

a.       Criminal Actions: RA 8042, Sec. 9

b.      Jurisdiction over money claims under Migrant  RA 8042, Sec. 10 as amended by RA 10022;

·       Pert/CPM Manpower Exponent Co., Inc. v. Vinuya, G.R. No. 197528, Sept. 5, 2012.

·       Tolosa vs NLRC, G.R. No. 149578, April 10, 2003 (Torts/Damage Cases)

·       PNB vs. Florence O. Cabansag, G.R. No. 157010, 6/21/2005 (Jurisdiction of LA and NLRC as to a
tourist employee hired in Singapore but worked for Phil. National Bank Singapore Branch.)

·       Medline Management, Inc vs. Roslinda, G.R. No. 168715, Sept. 15, 2010 (Jurisdiction even the
case is filed by the heirs of OFW’s Case)

·       Ace Navigation Co., Inc. v. Fernandez, G.R. No. 197309, 10/10/2012 (L.A. vs V.A. over money
claims w/r there is a CBA or not)

c.       Administrative cases: Omnibus Rules Implementing RA No, 8042, Sec. 28.

LA vs. POEA (administrative and disciplinary) Sec. 1, rule 1, part 6, 2002 POEA Rules for land-based;
Sec. 1, Rule 2, Part 5, POEA rules for seafarers.

a. Administrative action against the license or holder of authority cognizable y the POEA could proceed
independently from the criminal action
b. Disciplinary action against erring OFW’s

c. Review of recruitment violations and other related cases decided by POEA. Appeal.

·       Asian International Manpower Service v DOLE, GR No. 210308, April 06, 2016

B.      COMPENSATION AND BENEFITS FOR DEATH OF SEAFARERS

Section 20, POEA SEC

Requirements for entitlement of beneficiaries to death benefits

Seafarers Protection Act RA 10706

C.      LIABILITY AND COMPENSABILITY FOR DISABILITY (SEAFARERS)

Disability Defined

Requisites for compensability of occupational diseases (Sec. 32-A of the POEA-SEC);

·       Philippine Transmarine Carriers, Inc. v. Nazam, G.R. No. 190804, October 11, 2010

·       DIZON VS NAESS, G.R. No. 201834, June 1, 2016 (Three day post-examination

Compensability of non-occupational disease

·       Leonis Navigation Company Inc. v. Villamatter, G.R. No. 179169, March 3, 2010

Non-compensability of pre-existing illness

·       Francisco v. Bahia Shipping Services, Inc., G.R. No. 190545

Partial Total Disability

·       Marlow Navigation Inc., vs Cabatay, G.R. No. 212878, Feb. 01, 2016

Compensation and benefits for injury or illness – Section 20 (B) POEA SEC (impt.)

·       Austria vs Crystal Shipping Inc. G.R. No. 206256, February 24, 2016

 
General Guidelines for Compensation and benefits for injury or illness

·       Splash Philippines, Inc. v. Ruizo, G.R. No. 193628, 18 March 2014

Burden of proof of proximate cause of injury or illness and work-related

·       Spouses Aya-ay v. Arpahil Shipping, G.R. No. 155359, Jan. 31, 2006

Dishonesty of seafarer – effect? Par. D and E, Sec. 20 POEA SEC

·       Ayungko v. Beamko Shipmanagement Corporation G.R. No. 203161, February 26, 2014

Suicide of Searafer – effect on compensability

·       Wallem Maritime Services, Inc. v. Padrejas, G.R. No. 192993, 11 August 2014

When to file action for permanent and total disability benefits

·       United Philippine Lines, Inc. v Sibug, G.R. No. 201072

Who determines compensability? Accreditation from POEA not required; Right of Seafarer to Seek
Second Opinion

·       Milllan v. Wallan Maritime Services, Inc. 685 SCRA (2012)

·       Splash Philippines, Inc. v. Ruizo

Rule when findings of company designated physician and seafarer’s physician are contradictory; Sec.
20-B, POEA SEC

General Rule and Exceptions.

·       Andrade v. Ageman Minning Agency, Inc., 684 SCRA 587

·       Career Philippines Shipmanagement v. Serna, G.R. No. 172086, December 3, 2012

·       Maersk Filipinas Crewing Inc., v. Mesina, G.R. No. 200837, June 5, 2013

Determination of disability benefits: permanent and temporary; Sec. 2(b), Rule VII, IRR Title II, Book
IV, LC or amended rules on ECC Rules

·       Pacbasin Shipmanagement, Inc. v. Santiago, G.R. No. 194677, April 18, 2012

·       Magsaysay Maritime Corporation v. Oberto S. Lobusta, G.R. No. 177578, 25 January 2012

              I.      ALIEN EMPLOYMENT or Employment of Non-Resident Aliens (Book II, Title II)

Statutory Reference – Arts. 40-42; Revised Guidelines for Issuances of Employment Permit, D.O. No.
26-02 (s. 2002) and 41-03 (s. 2003) Department Order 97-09 (S. 2009); Department Order No. 1 Series
of 1999; DO 120-12 (2012)

DOLE Department Order No. 146-15 Series of 2015 (Coverage, Exemption, Exclusion, Procedure in the
Processing of AEP, Publication, Inspection, Validity, Renewal, Denial of Application for new or renewal
of AEP, Cancellation/Revocation of AEP, Effect of Denial/Cancellation or revocation of AEP, Appeal,
Penalty for working without AEP)

A.      Technique of Regulation – Employment Permit – 40-42; Art. XII, Sec. 12, Constitution

Commonwealth Act 108 as amended by PD 715; Retail Trade Nationalization law or RA 1180; Finance
Company Act or RA 5980

B.      Conditions for Grant – 40

·       Pacific Consultants Intl. Asia, Inc. vs Schonfeld, G.R. No, 166920, Feb. 19, 2007 or 2011

Employment Permit

·       General Milling Corp. v. Torres, 196 SCRA 215 (91) Tim Cone Case

DO No. 26-02  and 41-03 (s. 2003),

DOLE DO 146-15;

Coverage;

Aliens exempted from securing working permit

Excluded Foreign Nationals

Requirements for application; processing; inspection; publication

Validity; Renewal;

Denial of AEP/ Cancellation of AEP; Effect

Appeal

C.      Instances where AEP is a requisite for issuance of Employment visa under the Philippine
Immigration Act of 1940.

1.       Sec. 9 (d) Treaty trader and investor visa

2.       Sec. 9 (g) Pre-arranged employment visa

3.       Sec. 47 (a) 2, Visas for temporary workers

D.      Effects of NRA working without an employment permit

1.       Criminal sanction and deportation (Art 42)

Ten Thousand Fine to Foreigner and to Employer also

2.       No standing to be awarded monetary claims

·       WPP Marketing Comm, Inc. v. Jocelyn M Galera, G.R No. 169207/G.R. No 169239, March 25, 2010

            II.      DEVELOPMENT OF HUMAN RESEROUCES (BOOK II, LABOR CODE)

Constitutional and Statutory Reference Policies, Objectives and Concepts – Consti, Art. II, Sec. 17; Art
XII, Secs. 12 and 14; Art XIII, Sec. 3 par. 1; Art. XIV, Secs. 1,2, 4 (1) and LCP Arts 3, 12 (a) and 57 Arts. 57-
81; Book II, Rules I-VIII, Omnibus Rules Implementing the Labor Code; PESO Law;

A.      Objectives – Definition – 43-44

TESDA ACT OF 1994 or RA 7796 (94)

Art. 43-56

Note: RA No. 7796 superseded the LCP, Arts. 43, and 45-56

B.      Program Incentive – 52
C.      Concepts and definitions: RA No. 7796, Sec. 4; LCP, Art. 44 (a)

D.      Salient Points of TESDA LAW: Policy, Goals, Powers of the Board,

E.       Tesda Activities and Programs (Sec. 18 to 32)

F.       Training and Employment of Special Workers (BOOK II, TITLE II) Art. 57-81, LC

1.       APPRENTICE – 57-72, RA 6727, Rule VI, Book II,  Secs. 18, 19, 25; RA No. 7796, Sec. 4 (k)

·       Holiday Inn Manila vs. NLRC, G.R. No. 109114, 9/14/93

·       Nitto Enterprises vs NLRC, Sept. 29, 1995, G.R. No. 114337

Dual Training Systems Act (R.A. 7686)

·       Nitto Enterprises v. NLRC (Sept. 29, 1995)

2.       LEARNER  – Art.  73-77, Rule VII, Book  II, Sec. 6, 4(3); RA NO. 7796, Sec. 4 

When employment of apprentices and learners allowed; LCP Art. 60 and 74; RA No. 7796, Sec. 4 (m)

Distinguish Learnership from Apprenticeship; Learnership Agreement; Learners in Peacework

3.       HANDICAPPED  – Art. 78-81,  RA 6640,   Sec.  5 Book II, Rule VIII of the Omnibus IRR

PERSONS WITH DISABILITY (Training and employment of Persons with Disabilities)

a.       RA 7277 or “Magna Carta for Disabled Persons”, secs. 4 (a,b.c,d and i) 5-11, 32-33 of RA 7277 as
amended by RA 9442,

b.      Recall definition of social justice (calalang vs. williams); Const. Art XIII, Sec. 3 par 1 and LCP, Art.
3, (equality of employment opportunities for all)

c.       Policies: RA no. 7277, Secs. 2, 5, 9, and 32.

d.      Coverage and definitions: RA 7277, Secs. 3, 4, and 6

e.       Rights of persons with disability, privileges and protections: RA 7277, Sec (g) to (p); Secs. 6-9;Sec.
33; RA 9442 (2007)
·       Bernardo vs. NLRC, G.R. No. 122917, July 12, 99

f.        Sheltered Employment

g.       Incentives for Employers

h.      Prohibition on discrimination against persons with disability

i.         Enforcement: R.A. No. 7277, Secs. 44-46

4.       RA 8504 or “Philippine Aids Prevention and Control Act of 1998”, Sec. 35; definition, rights and
privileges

          III.      CONDITIONS OF EMPLOYMENT(BOOK III, Art 82-161, and its IRR) General Labor Standards

What is work? Working time flexibility, labor leisure choice, working hours and working days, night
work and health assessment for night workers; overtime, rest days, SIL, Other leaves, regular days,
special days, Service charges, among others:

Basic Policies and Coverage of the Labor Code

1.       Const. Art. III, Sec. 1 (equal protection clause); Art. XIII, Secs. 1 and 3, par. 2 (humane conditions
of work))Art. 3,  6, Labor Code

2.       ILO Conventions 100 and 111

3.       ILO Convention No. 90 (Night work of young persons (Industry) Convention, 1948)

4.       ILO Convention 171 (Night Work Convention, 1990)

5.       Conditions of employment cover labor standards, general and special (LCP Book III, Arts. 82-161)
and technical and occupational safety and health standards (LCP, Book IV, Art. 161-171) and pertinent
rules and regulations relating to wages, hours of work, COLA, and other monetary and welfare
benefits including occupational, safety and health standards

·       Maternity Children’s Hospital v. Secretary of Labor, G.R. No, 179593, September 4, 2011)

1.       General Concepts

·       PEFTOK vs. NLRC (July 31, 1998)

·       San Miguel Brewery Sales vs. Ople (G.R No. L-53515)

 
A. CONDITIONS OF EMPLOYMENT – HOURS AND DAYS OF WORK, LCP Arts. 82-90, Omnibus Rules,
Book III, Rules I, I-A and II

Statutory Reference – Arts. 82-90; Book III, Rules I, IA, II, Omnibus Rules Implementing the Labor Code

·       National Sugar vs. NLRC (G.R No. 101761)

·       Apex Mining Co. vs. NLRC (G.R No. 94951)

·       San Miguel vs. Democratic Labor (G.R No. L-18353)

A.      Hours Regulation

Rationale and Enforcement

B.      Coverage and Exclusions – 82; 290 (276,) Rule I, Book III, Secs. 1-2 Rule 1-A Omnibus IRR; Consti,
Art. IX-B, Sec. 2(1)

·       National Shipyards vs. CIR (G.R No. 17068)

·       Caltex Regular Employees vs. Caltex (G.R No. 111359)

·       Cagampan vs. NLRC (G.R Nos. 85122-24)

·       Lagatic vs. NLRC (G.R No. 121004)

Rationale Exemption

1.              Managerial Employees; LCP, Art. 82 in relation to Art. 219 (m) and omnibus Rules, Book III, Rule
I, Sec. 2 (b) and (c)

·     International Pharmaceuticals, Inc. v. NLRC, 287 SCRA 213

·     National Waterworks and Sewerage Authority v. NWSA Consolidated Unions, 11 SCRA 766 (64)

2.              Field Personnel

·     Rada v. NLRC, 205 SCRA 69 (92), G.R. No 96078

·     Fareast Agriculture v. Lebatique (February 12, 2007) G.R. No, 162813

·     Union of Filipro Employees v. Vivar (January 20, 1992)

3.              Piece Worker, LCP, Art. 82 and Omnibus Rules, Book III, Rule I, Sec. 2 (e)

·     Red v. Coconut Products, Ltd. v. CIR, 17 SCRA 553 (66)

·     Labor Congress v. NLRC, 290 SCRA 509

4.              Dependent family members, LCP, Art. 82

5.              Domestic helpers/Kasambahay, LCP, Arts. 82, 139, 143 and Omnibus Rules, Book III, Rule I, Sec.
2 (d) New Kasambahay law.

6.              Persons in the personal service of another, LCP, Art. 82, and Omnibus Rules, Book III, Rule I, Sec.
2 (d)

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• Week 9 - Midterm Examination

• Final Period:

• Week 10-11

A.      Normal Hours of Work – LCP, 83 in relation to Art. 91.

Health Personnel

Less than 8 hours? 4 hours morning; 4 hours afternoon?

B.      Hours Worked – Art. 84, Rule I, Book III, Sec. 7, all hours worked are compensable including rest
periods of short duration.

Idle Time

·       National Development Co. v. CIR, 6 SCRA 763 (62)

·       Luzon Stevedoring Co. v. Luzon Marine Department Union, 101 Phil. 257 (57)

Continuous Work

·       State Marine Corporation v. Cebu Seamen’s Association, 7 SCRA 294 (63)

C.      Meal Period – Art. 85, Rule I, Book III, Sec. 7

Meal periods of at least one hour not compensable, but shorter meal periods not less than 20 minutes
may be allowed.

·       Philippine Airlines v. NLRC, 302 SCRA 582 (1999)

D.      Overtime Work and Offsetting Prohibition – 87-90; Rule I, Book III, Secs. 8-11

Ordinary overtime and emergency/compulsory overtime:

·       R.B. Michael Press vs. Galit, G.R. No, 153510, Feb. 3, 2008

POEA Memorandum Circular No. 10 S. 2010 (Standard employment contract for seafarers), Oct. 14,
2010, Sec. 11-A and B (open and guaranteed overtime)

E.       Night Work – Art. 86

RA 10151, which repealed LCP, ART. 130 & 131 (night work prohibition against women) DOLE DO No.
119-12 (s. 2012)

F.       Exceptional and special situations

DOLE Advisory No. 02-04 (S. 2004, Dec. 2, 2004, Implementation of Compressed Workweek Schemes)

DOLE Explanatory Bulletin on Part-time work, January 2, 1996

Waiting Time; Rule I, Book III, Sec. 5 (a);

·     Arica v. NLRC, 170 SCRA 776 (1989)

 

On call: Rule I, Book III, Sec. 5 (b)

Work interruptions: Rule I, Book III, Sec. 4 (d);

·     University of Pangasinan Faculty Union v. University of Pangasinan, G. R. No. L-63122, Feb. 20, 1984

Travel time:

·     Rada vs. NLRC, 205 SCRA 69 (1992)

Working hours in CBA’s:

·     Interphil Laboratories Employees Union-FFW v. Interphil Laboratories, Inc., G.R. No. 142824, Dec.
19, 2001.

Exemption from prescribed working hours based on religious grounds

·     RE: Request of Muslim Employees in the Different Courts in Iligan City (Re: Office Hours), A.M. No.
02-2-10-SC, December 14, 2005

B.           CONDITIONS OF EMPLOYMENT – WEEKLY REST PERIODS

Statutory Reference – Arts. 91-93; Book III, Rule III, Secs. 1-9 Omnibus Rules Implementing the Labor
Code

A.      Coverage – Rule III, Book III, Sec. 1; 91

B.      Scheduling of Rest Day; When Compulsory work allowed; and Compensation – 91-93; Rule III,
Book III, Sec. 7

C.           CONDITIONS OF EMPLOYMENT – HOLIDAY PAY/PREMIUM PAY

Statutory Reference – Arts.94-95, Exec .Order No. 203 (1987); RA 9177 (2002); RA No. 9256 (2004); RA
No. 9492 (2007) Book III, Rule IV of the Omnibus Implementing Rules; Articles 169 to 172 of
Presidential Decree No. 1083.

A.      What are regular and special days?

B.      Coverage – 94 (a) of LC; Book III, Rule IV, Sec. 1:

·       Mantrade/FMMC Division Employees and Workers Union vs. Bacungan, 144 SCRA 510 (1986)

POEA Memorandum Circular No. 10 S. 2010, (Standard Employment Contract for Seafarers) Oct. 14,
2010, Sec. 11-C

C.       Exclusions

D.      Right to Holiday Pay – 94 (b) in relation to Art. 93, Rule IV, Book III, Sec. 8; DOLE Memorandum
Circular No. 01, March 8, 2004 (12 days)

·       Union of Filipro Employees v. Vivar (January 20, 1992)

·       SMC vs. CA” (G.R. No. 146775; January 2002)

·       “CBTC Employees Union v. Clave” (G.R. No. L-49582; January 1986)

·       “Asian Transmission Corporation vs. CA” (G. R. No. 144664;  March 2004)

Double Holiday on monthly paid employees:

·       Wellington v. Trajano, G. R. No. 114698, July 3, 1995.

Double holiday on daily paid employees:

·       Asian Transmission Corp. v. Court of Appeals, G.R. No. 144664, March 15, 2004

Faculty Private School:

·       Jose Rizal College v. NLRC

 

D.          SERVICE CHARGES

Article 96 of the Labor Code, as amended RA 11369; Book III, Rule VI of the Omnibus Imp. Rules

·       Hoteliers, Inc., vs NUWHRAIN, G.R. No. 181712, Aug 25, 2009; Ace Navigation Co. v. CA, August 15,
2000.

E.           THIRTEEN MONTH PAY – PRES. DECREE NO. 851

A.      Coverage – Revised Guideline on the Implementation of 13th Month Pay Law, 16 November 1987,
Secs. 1, 2, 3, 5, 6, 7, 8; P.D. No. 851, Secs. 1-2

·       United CMC Textile Workers Union v. Labor Arbiter (April 30, 1987)

·       Philippine Duplicators, Inc. v. NLRC (February 15, 1995)

·       UST Faculty Union v. NLRC (October 2, 1990)

·       Sevilla Trading Company vs. Accredited Voluntary” (G.R. No. 152456; April 2004)

·       “Honda Phils., Inc. vs. Samahan“ (G.R. No. 145561; June 2005)

·       “JPL Marketing Promotions vs. NLRC” (G.R. No. 151966; July 2005)

·       Letran Calamba Faculty and Emp. Asso – G.R. No, 156225, Jan. 29, 2008. (overload pay excluded
from the comput of 13th month)

·       Boie Tekada vs dela Serna, G.R. No, L-92174, Dec. 10, 1993 – med rep, not salesman, additional
pay not commissions but profit-sharing bonuses.

·       Autobus Case

Substitute Payment

·       Framanlis Farms, Inc. v. MOLE, 171  87 (89)

14th Month Pay

·       Kamaya Point Hotel v. NLRC, 177 SCRA 160 (89)

B.      Non-Inclusion – Regular Wage – Sec. 7

 

F.           SEPARATION PAY – Article 294; DO 147-15, page 8 to 9

Separation pay in Authorized Cases, Financial Reverses, Serious Business Losses and disease

Computation; Financial Assistance

Separation pay in lieu of reinstatement; Separation pay in illegal dismissal cases

Separation pay in legal termination; exception (Company policy/CBA)

G.          RETIREMENT PAY – Art. 302; RA 7641 (93), RA 8558, Book VI, Section XIII of the Omnibus
Implementing Rules and Rule II interpreting R.A. 7641 or the New Retirement Law.

1. Eligibility

2. Exclusions From Coverage

3. Optional or Compulsory Retirement Age

4. Minimum years of Service Requirement

5. Retirement of Underground Mine Workers and Surface Mine Workers

6. Entitlement of Employees dismissed for just cause to retirement benefits

7. Retirement benefits v Separation pay

8. Retirement pay under the LC v Retirement pay under SSS, GSIS

9. Amount of Retirement Pay (22.5 days)

10. Retirement benefits of workers paid by results

11. Retirement benefits of part-time workers

12. Taxability

·       Capili v. NLRC (G.R. No. 120802; June 1997)

·       J.V. Angeles v. NLRC  (G.R. No. 126888; April 1999)

·       Rufina Patis Factory vs. Alusitain (G. R. No. 146202; July 2004)

·       MLQU v. NLRC (G.R. NO. 141673, Octber 17, 2001)

·       JV Angeles v. NLRC (G.R. No. 126888, August 14, 1999)

·       Autobus v. Bautista, G.R. No. 156367, May 16, 2005

·       Serrano v. Severino Santos Transit, G.R. No. 187698, Aug. 9, 2010

H.          WAGES, MINIMUM WAGES AND WAGE FIXING MACHINERY

A.      Policies and principles: Const. Ar. XIII, Sec. 3, pars 2 and 4; LCP 97-119, Omnibus Rules, Book III,
Rules VII-VIII

ILO Convention No. 95 and 100

Wage; different characterizations or forms of wages; minimum wage; living wage; salary;
compensation; wage distortion; pay rates: time, piece, results based and task-based; equal pay for
equal work; equal pay for work of equal value; wage setting and principles involved in wage setting;
double indemnity law; productivity incentives act of 1990;

·       Sugue v. Triumph International Phils., G.R. No. 164804, 164784, Jan. 30, 2009

·       Aklan Electric Cooperative v. NLRC, 323 SCRA 258 (2000)

Exemption from income tax: RA 9504 (2008), Sec. 2

B.      Minimum Wages  - Article 99; Constitution, Art. XIII, Sec. 3

1.       Coverage and exclusions  –  97 (b) (c) (e);  98, Rule 1, Rule III, Sec. 2 (c)

Book III, Rule VII, Sections 2 to 9 of the Omnibus Implementing Rules

2.       Minimum Wage  –  99, 97 (f), 75 (C), 80 (b)

E.O. 178

Minimum wage defined, Minimum wage setting

Minimum wage of workers paid by results, apprentices, learners, persons with disability,

 
3.       Supplements vs Facilities/ Allowances; Book III, Rule Rule VII, Secs. 4-7;

·       SLL International Cables Specialists v. NLRC,  G.R. No. 172161, March 2, 2011;

·       Mayon Hotel and Restaurant et al v. Adana, et al, G.R. No. 157634, May 16, 2005;

·       BPI Emp-Union et al v. BPI/ BPI v. BPI Emp Union-MM, et al.,  G.R. Nos. 178699/178735, Sept 21,
2011.

4.       Prohibition against elimination or diminution of benefits  –  100

·       Millares vs. NLRC (G.R. No. 122827; March 1999)

·       Songco v. NLRC (G.R. No. L-50999; March 1990)

·       PNB v. PEMA (G.R. No. L-30279; 30 July 1982)

·       Phil. Agricultural v. NLRC (G.R. No. 107994; 14 August 1995)

C.      Minimum wage Fixing Machinery

Statutory Reference – Rep. Act. 6727 – An Act to Rationalize Wage Policy Determination by
Establishing the Mechanism and Proper Standards, etc,; Arts. 99 to 101, 120-127; Book III, Rule IX,
Omnibus Rules Implementing the Labor Code

Rationale, structure and criteria for minimum wage-fixing: Secs. 2-3 LCP; Arts. 120, 121, 122, 124, 126;

·       Nasipit Lumber Co. v. NLRC, 288 SCRA 667 (1998)

·       Employers Confederation v. NWPC  (G.R. No. 96169; September 1991)

·       Apex Mining Co., Inc. v. NLRC (G.R. No. 86200; February 1992)

·       PT&T v. NLRC (G.R. No. 99858; June 1995)

·       Prubankers vs. Prudential Bank (G.R. No. 131247; January 1999)

·       Metro Transit v. NLRC (G.R. No. 116008; July 1995)

·       Bankard Employees Union-WATU vs. NLRC (G.R. No. 140689; February 2004)

1.       Agencies for Wage Fixing Machinery

a.       Advisory Agency – National Wages and Productivity Commission – 120, 121 and 126

b.      Wage Fixing Agency – Regional Tripartite Wages and Productivity Board – 122, 126, RA 6727

2.       Standards/ Criteria for Minimum Wage Fixing  –  124; EO 178

·       Metropolitan Bank And Trust Co. v. NWPC, G.R. No. 144322, Feb. 6, 2007

3.       Two tiered wage system – part fixed and part compensation. DOLE Order no 118-12; NWPC No. 1
(2012)

4.       Wage Distortion

How to resolve wage distortion

·       Prubankers Association v. Prudential Bank and Trust Co., NWPC, G.R. No. 144322, Feb. 6, 2007.

Wage distortion disputes in unorganized establishments not voluntarily settled by the parties pursuant
to Republic Act No. 6727;

LA (unorganized)         vs          V.A. (unorganized) establishments; procedures

5.       Freedom to bargain: RA 6727, Sec. 2; LCP, Art. 125

6.       Penalty for violation: RA 8188 (Double indemnity law), sec. 12

7.       Wage Order  – 123

• Module # - TITLEBook

• Week 12-13

A.      Wages and Protective Measures

1.       Wages v. Salary – 97 (f)

·       GAA v. Court of Appeals, 140 SCRA 304 (85)

2.       Wage Payment and protection  – 102-105; 1705, New Civil Code; RA 6727, Sec. 7
 

Form, time, place and recipient of payment: 102-105; Art. 1705 CC; Rule VIII, Book III, Secs 1-2;

·       LMG Chemicals Corporation v. Secretary (G.R. No. 127422; April 2001)

·       Special Steel Products, Inc. vs. Villareal (G.R. No. 143304;  July 2004)

·       Mayon Hotel & Restaurant vs. Adana (G.R. No. 157634;  May 2005

                            

Employee has the right to personally receive his wages; EXCEPTION: Home Allotment under POEA
Memorandum Circular No. 55, S. 1996, Sec. 8;

·       Skippers United Pacific, Inc. v. Doza, et. al., G.R. No. 175558, Feb. 8, 2012.

3.       Liability for Wages

1.       Articles 105 to 111 of the Labor Code

2.       Book III, Rule VIII, Sections 7 to 11 of the Omnibus Implementing Rules

CASES

·       DBP v. NLRC (G.R. No. 86227; 19 January 1994)

·       DBP v. NLRC (G.R. No. 108031; 01 March 1995)

·       Commando Security Agency v. NLRC (G.R. No. 95844; July 1992)

4.       Wage Prohibition  – Consti. Art. III, Sec. 1, (right to wage is a property right); LCP,  112-117;
22; 1708, New Civil Code; Rule VII, Book III, Sec. 13;

a.              Non deductibility: LCP 113;

·       Apodaca v. NLRC,  172 SCRA 442 (1989);

·       Genesis Transport Secvice v. UMMGT & Taroy,  G.R. No. 182114, April 5, 2010

b.              Allowable deductions:  LCP, Art. 111 (Attorney’s fees) in relation to Art. 241 (0); Art. 258 (e) last
sentence (agency fees)

Note: New PAO LAW 15% attorney’s fees allowed.

 

c.              No deposits for loss or damage; LCP, Art. 114-115;

·       Dentecj Manufacturing Corp., v. NLRC, 172 SCRA 588 (1989); Five J Taxi v. NLRC,  235 SCRA 556
(1994)

d.              Whistleblower protection/false reporting/prohibited acts:  LCP. Arts. 118-119;

·       Alert Security and Investigation Agency, Intl. Inc., et. al. v. Saidali Pasawilan, et. al.,  G.R. No.
182397, Sept 14, 2011

e.              Payment of wages in calamity-stricken areas:  DOLE Labor Advisory No. 01, August 8, 2012

f.                Non-withholding of wages (clearance basis to withhold wages)

Milan vs. NLRC, G.R. No. 202961, February 4, 2015 

B.      Liability of Employer and Other Parties; Jurisdiction

1.       Employer, Independent Contractor and Sub-Contractor and Labor Only Contracting  – 106-109;
DOLE Department Order No. 18-02, series of 2002 and  DO 18-A.

·       Meralco v. Benamira (July 14, 2005)

Liabilities

·       Broadway Motors, Inc. v. NLRC, 156 SCRA 522 (87)

2.       Extent of Liability

3.       Worker Preference – Bankruptcy  – 110; New Civil Code, 1707,  2241, 2242, 2244; RA  6715 (89)

·       Rubberworld v. NLRC, July 26, 2000

·       DBP v. Secretary of Labor, Nov. 28, 1989

·       Bolinao, et. al. v. Padolina, G.R. No. 81415, June 6, 1990

4.       Wage Recovery  –  111, 129, 217; RA 7730  (94)

5.       Visitorial and Enforcement powers; simple money claims:  LCP,  128-129; 223

1. L.A. vs. Regional Director under Art. 129, LC. Requisites. Case: M. Ramirez Industries v. Sec. of Labor,
G.R. No. 89894, Jan. 4, 1997.

2. L.A. vs. DOLE Sec. or its authorized Rep. on money claims under Article 128 (b), LC, as amended by
R.A. No. 7730 (June 2, 1994) ( Visitorial and Enforcement Powers)

a. Requisites for DOLE Sec. or Authorized Representatives to Exercise Visitation and Enforcement
Powers/ Elements for L.A. to acquire jurisdiction

b. Labor Inspection Procedure, Sections 3 and 4 of the Basic Labor Inspection Manual, Revised 2003
Edition issued by the DOLE.

c. No forum shopping if employees, during the pendency of the case under Art. 128 are dismissed and
subsequently filed an illegal dismissal case with the Labor Arbiter

·       V.L. Enterprises v. Court of Appeals, G.R. No, 167512, March 12, 2007.

·       Consolidated Broadcasting System, Inc. v. OBerio, G.R. No. 168424, June 8, 2007

·       Rizal Security and Protective Services Inc. Hon. Maraan, G.R. No. 124915, February 18, 2008

·       Ex-Bataan Veterans Security Agency, Inc v The Secretary of Labor Laguesma, G.R. No. 152396, Nov.
20, 2007

·       Peoples Broadcasting (Bombo Radyo) vs. Sec. of Labor and Emp., G.R. No. 179652, March 6, 2012

·       Meteoro v. Creative Creatures, Inc., G.R. No. 171275, July 13, 2009 (re: exception clause)

·       Norkis Trading Corporation v. Buenavista, G.R. No. 182018, October 10, 2012 (re: doctrine of res
judicata in the findings of DOLE Sec or RD in exercise of Visit and Enfo powers to the L.A. or NLRC)

·       Visitorial and enforcement power Art. 128

I.            LEAVES

1.       Service Incentive Leave 

Statutory Reference – Art. 95; Book III, Rule V, Omnibus Rules Implementing the Labor Code; RA 8187

a.       Note: Commutable nature of the benefit

b.      Coverage : inclusions and exclusions

·       Makati Haberdashery, Inc. v. NLRC, 179 SCRA 449 (1989)

·       JPL Marketing Promotions v. CA, et al., G.R. No. 151966, July 8, 2005

·       Integrated Contractor Plumbing Works, Inc. v. NLRC, G.R. No. 152427, August 9, 2005

·       Labor Congress v. NLRC, 290 SCRA 509 (1998)

2.       Vacation and Sick Leave:

Not mandatory

·       PNCC Skyway Traffic Management and Security Division Workers Org. vs PNCC Skyway Corp., G.R.
No. 171231, Feb. 17, 2010. )

3. Maternity Leave (New Maternity Leave Law);

a. Coverage; b. Conditions for entitlement: RA 8282, Sec. 14-A as amended by RA 11210 plus IRR

4. Paternity Leave; RA 8187 (1996); IRR

a. Coverage: RA No. 8187, Sec. 2; IRR, Sec. 2; b. Conditions to entitlement: RA No. 8187, Sec. 2: IRR,
Secs. 2-5 c. Treatment of benefits/ penal provisions: RA No. 8187, Secs. 5; IRR, Secs. 7 and 10.

5. Parental Leave (R.A. No. 8972)  RA 8972 – Solo Parents’ Welfare Act (2000)

a.              Who is a solo parent? Qualifications,  RA 8792, Sec. 8; [Link]: RA 8792, Sec. 3 (a)

[Link]:  RA 8792, secs. 4 and 8; IRR, Art IV, Sec. 8; [Link] Leave e.  Employment-related rights
and benefits: RA 8792, Secs. 3, 6-8; IRR, Art. V, Secs, 8, 17 and 19

6.  Leave for Victims of Violence against Women and Children (R.A. No. 9262) Sec. 43 and
Implementing Rules, Rule VI, Sec. 42

a.       Definition; b. Coverage and purpose; c. Requirement for entitlement; d. Benefit

[Link] of benefit.
 

7. Special leave benefit for women, RA 9710, Sec. 18; DOLE D.O. No. 1112 (s. 2011), as amended by
DOLE D.O. NO. 112-A (s. 20102), May 22, 2012

a.       CBA- Mandated Leaves/ Union Leaves

b.      Application of maternity, paternity and other benefits to adoptive parents: RA 8552 (Domestic
Adoption Act of 1998), Sec. 34

J.            WORKING CONDITIONS FOR SPECIAL GROUPS OF WORKERS – WOMEN WORKERS

Consti and Statutory Reference – Art. II, Sec. 14 and Art. XIII, Sec. 14; Arts. 130-138, Book III, Sec. 1, 4,
14 Rule XII, Omnibus Rules Implementing the Labor Code; RA 7877 (Anti-Sexual Harassment Act of
1995); RA 9710 (Magna Carta of Women), Secs. 2, par. 1 and 12 (equality of treatment); RA 7192
promotion and integration of women as full and equal partners of men; RA 6955 – unlawful matching
with foreigners;

·       Philippine Telegraph and Telephone Co. v. NLRC, 272 SCRA 596, (May 23, 1997)

·       Phil. Association of Service Exporters, Inc. v. Drilon (June 30, 1988)

A.      Women and the Constitution – Art. XII, Sec. 14

B.      Coverage – Rule XI, Book III, Sec. 1

C.      Prohibited Acts – 130-131; 133-135; RA 6725 (89)

1.       nightwork prohibition: RA 10151, repealing LCP, Art. 130-131 (Now Art. 154-161)

2.       discrimination prohibited  – Art. 135

3.       stipulation against marriage:  Art. 134;

·       Duncan Accociation of Detailmen-PGTWO and Tecson v. Glaxowellcome Philippines, Inc., G.R. No.
162994, Sept. 17, 2004;

·       Star Paper Corp., v. Simbol, et. al., G.R. No. 164774, April 12, 2006.

4.       Others

Women Night Workers – Art. 158

 

5.       Sexual harassment –  RA 7877 or “Sexual Harassment Act”

a.              Policy Influences:

·       Meritor Savings Bank v. Vinson, 477 U.S. 57, June 19, 1986

b.              Applications in the Philippine Context

·       Philippine Aelous Automotive United Corp v. NLRC, G.R. No. 124617, April 28, 2000

·       Bacsin vs Wahiman (553 SCRA 137, G.R. No. 146053)

·       Domingo vs. Rayala (546 SCRA 90) G.R. No. 155831, 155840, 158700, Feb. 18, 2008;

·       Digitel Telecom v. Mariquit Soriano, G.R. No. 166309, June 26, 2006

·       Sharon Alegria v. Judge Manue N. Duque, A.M. No. RTJ-06-2019

·       Susan Aquino v. Hon. Ernesto Acosta, Presiding Judge CTA, A.M. No. CTA-01-1, April 2, 2002

Sexual Harassment policy requirements and contents

D.      Facilities – LCP, Art. 130, 132

Department Order No. 143-15 Guidelines Governing Exemption of Establishments from Setting up
Workplace Lactation Station

E.       Maternity protection: SSS Act of 1997, Sec. 14-A, repealing par a and c LCP, Art. 131

F.       Special Classification Special Women Workers – LCP, Art. 136

K.           WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS – MINORS

A.      Minors and the Constitution – Art. II, Sec. 13; ILO Convention No. 138 and 182; RA 7610 as
amended by RA 9231, Sec. 2 and Omnibus Rules, Book III, Rule XII, Sec. 1; Book III, Sec. 2 and 3, Rule
XII, Omnibus IRR

B.      Coverage – Implementing Rules

 

C.      Employable Age – 137; Arts. 103-110, P.D. 603, Child and Youth Welfare Code; Art. 272, 273, 278
Revised Penal Code; Secs. 12, 14, RA 7610 (Child Abuse); Secs. 1-2; RA 7658 Secs. 1-2 (Prohibition to
work of children below 15)

D.      STANDARDS FOR EMPLOYMENT OF WORKING CHILDREN under RA 10361 or the Kasambahay law
and its IRR

E.       Discrimination - Art. 138

F.       Hours of work: RA 9231, Sec. 3

G.      Prohibition against worst forms of child labor: RA 9231, Secs. 3 and 5;

·       NBI vs. Villanueva (370 SCRA 1) Judge who facilitated minors in nightclub

H.      Guidelines in assessing and determining hazardous work in the employment of persons below 18
yrs (DOLE DO No. 149, Series of 2016)

I.        Anti-age discrimination in employment – RA 10911

L.           EMPLOYMENT OF STUDENTS (RA 7323) RA 10917, amending certain provisions of RA 9547
which amends RA 7323. Special program for employment of students

a.       60% employer; 40% govt. Salary not lower than min. wage

b.      Labor Advisory No. 8 June 8, 2016  - Protection for Senior High School Students on K to 12 Work
Immersion Program

M.      WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS – HOUSEHELPERS/KASAMBAHAY

Househelpers (Labor Code as amended by R.A. No. 7655, an Act Increasing the  Minimum Wage of
Househelpers; see also – Household Service under the Civil Code)

Statutory Reference: Arts. 139-150; Book III, Rule XIII, Omnibus Rules Implementing the Labor Code;
RA 7655 (93)
·       People vs Bayon, 622 SCRA 702, Qualfied theft

A.      Coverage – 139; B. Definition – 139; C. Minimum Wage – 141;142

Non-household Work Assignment – Art. 143

·       Apex Mining v. NLRC, 196 SCRA 251.

B.      Conditions Employment – 142-152; Arts. 1689-1699, New Civil Code

New Kasambahay Law (RA 10361) and its IRR

A.      Coverage; B. Definitions; C. Hiring of Kasambahay; D. Rights of the Kasambahay E. Rights and

obligations of the employer; E. STANDARDS FOR EMPLOYMENT OF WORKING CHILDREN; F. POST
EMPLOYMENT G. Registration System; H. SETTLEMENT/DISPOSITION OF LABOR RELATED-DISPUTES; I.
UNLAWFUL ACTS AND PENALTIES; J. Kasambahay day or  Araw ng mga Kasambahay

N.          WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS – HOMEWORKERS (For bar
purpose)

Statutory Reference: Arts. 151-153; DOLE D.O. No. 5, Feb. 4, 1992; Rule XIV, Book III.

A.      Coverage – Rule XIV, Book III, Sec. 1; B. Employer – 155; C. Conditions Employment; D. Dispute
Settlement; E. Employer Liability

(NOTE: PREVIOUS TOPICS: APPRENTICE, LEARNERS AND HANDICAPPED )

O.          WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS – NIGHTWORKERS (RA 10151); D.O
119-12

              A. Coverage – Art. 154; B. Who is a night worker? Definition; C. Health Assessment – Art. 155

              D. Mandatory Facilities – Art. 156; E. Transfer- Art. 157; F. Women Night Workers – Art. 158

              G. Compensation – Art. 159; H. Social Services – Art. 160; I. Night Work Schedules – Art. 161

              J. Penalty – RA 10151

 • Module # - TITLEBook

• Week 14-15

PART V

              I.      TERMINATION OF EMPLOYMENT

Statutory Reference – Arts. 293, 295-296, Book VI, Rule 1, Secs. 1, 5, 6

A.      Coverage – 293 (now 278)

B.      Employee Classification – 295-296 (280-281)

Watch

Play Video

(Labor Law: Labor Relations from right to self-organization to right to strike by Dean Abad Abad) Note:
Up to the Employee Classification part only.

Employer Determination

·       De Leon v. NLRC, 176 SCRA 615 (89)

1.       Regular Employees – 295, 1st  par.; 296, last sentence and 75 (d); Omnibus Rules, Book VI, Rule I,
Sec. 5 (a)

a.              Necessary or desirable; reasonable connection rule: (applied in case of conflict of jurisdiction
LA vs Regular Court)

CASES:

·       Price v. Innodata, G.R. No. 178505, Sept. 30, 2008;

·       San Miguel Corp v. NLRC and Maliksi, G.R. No. 147566, Dec. 6, 2006

·       Beta Electric Corp. v. NLRC, 182 SCRA 384 (90)

·       Viernes v. NLRC (April 4, 2003)

·       Labor Congress of the Phils v. NLRC (May 21, 1998)

b.      By period of Service - Employment for over one year, whether continuous or proken, while the
activity for which he is employed exists (LCP, Art. 295, last par)

2.       Project Employees  – 295, 1st  par.

Defined

Indicators of project employment

Work pool principle

CASES:

·       Mercado v. NLRC, 201 SCRA 332 (91)

·       Filipinas Pre-fabricated Building Systems v. Puente (March 18, 2005)

·       Integrated Contractor and Plumbing Works v. NLRC (August 9, 2005)

·       Hanjin Heavy Industries vs. Ibanez, 555 SCRA 537 (08)

·       Saberola vs Suarez, 558 SCRA 135 (08)

·       Samson vs NLRC and AG & P, Feb. 1, 96

Project Employment in BPO Industry

·       Gadia vs. Sykes Asia, Inc., G.R. No. 209499, January 28, 2015 (p)

3.       Casual Employees  – 295 2nd  par.; Rule VIII A, Book VI, Sec. 5 (b)

Defined

CASES:

·       Millares v. NLRC (G.R. NO. 110524, July 29, 2002)

·       Baguio Country Club vs NLRC, 206 SCRA 643, Feb. 28, 92

 

4.       Fixed term employee or employment for a fixed period,  LCP, Art. 295; IRR Book VI, Rule I, Sec. 5
(a)

Requisites for a valid fixed term contract of employment

CASES:

·       Brent school vs. Zamora, 181 SCRA 702 (1990)(BRENT DOCTRINE)

·       Pangilinan vs. Gen. Milling Corp. G.R. No. 149329

·       Price v. Innodata, G.R. No, 178505, Sept 30, 2008

·       D.M. Consunji, Inc and/or David M. Consunji vs. Estelito, G.R. No. 192514, April 18, 2012

Fixed term of OFW’s –  cannot acquire regular employment; series of rehiring cannot ripen into regular
employment

5.       Seasonal employees

Regular Seasonal Employee

Requisites

·       Beta Electric Corp. vs NLRC, 182 SCRA 384, Feb 15, 90

·       Hacienda Fatima v. National Federation of Sugarcane Workers – Food and General Trad, G.R. No.
149440, January 28, 2003

6.       Substitute Employees  – terminable anytime upon return of the regular employees

7.       Probationary Employees  – LCP, Art. 296; Rule VIII-A, Book VI, Sec. 6

Definition; nature of of probationary employment

CASES:

·       International Catholic Migration Commission v. NLRC, 169 SCRA 606 (Jan 30, 89)

·       Alcira vs. NLRC, G.R. No. 149859

·       Aberdeen Court vs. Agustin, Jr., 456 SCRA 32

·       Phil Daily Inquirer Vs Magtibay, Jr., 528 SCRA 355, June 24, 2007, G.R. No. 164532.

·       Armando Ailing v. Jose B. Feliciano, Manuel F. San Mateo III et. al., G.R. No. 185829, April 25, 2012

Duration/ Exceptions

Probationary period, how reckoned and computed

Agreement on shorter or longer period; nature of work required longer period; longer of period
required and established by company policy

CASES:

·       International Catholic Migration Commission v. NLRC, 169 SCRA 606 (89)

·       Buiser vs Hon Leogardo (G.R. No, L-63316, July 31, 1984) probationary period of 18 months was
valid (Salesman PLDT Yellow pages)

Extension of Contract – Effect to Employee

·       Mariwasa Manufacturing Co. v. Leogardo, 169 SCRA (89)

Termination and Salary ( grounds to terminate, security of tenure; application of agabon and jaka
doctrine on probi emp; due process)

·       International Catholic Migration Commission v. NLRC, 169 SCRA 606 (89)

Rule Private School Teachers

·       La Sallete of Santiago, Inc. v. NLRC, 195 SCRA 80 (91)

·       Pines City Educational Center vs. NLRC, 227 SCRA 655

Right of probationer to security of tenure:

·       Tiamson’s Enterprises, Inc., etl al. v. Court of Appeals and Sy, G.R. No. 192881, Nov. 16, 2011

 
B.           DISMISSAL FROM EMPLOYMENT

              For Bar

              1. Just Causes

              2. Authorized Causes

              3. Due Process

                             a. Twin-Notice Requirement

                             b. Hearing; meaning of opportunity to be heard

Statutory Reference – Art. 3 Sec. 1; 13, Sec. 3, Constitution, Art. 3; 106-109; 218-231; Arts. 293-301;
292 (B); Book VI, Rule I, Secs. 3-4; Art. 301 as ameded by RA 7461 (new retirement law, dec. 9. 1992)
Book VI, Rule II; Department Order No. 147-15 Series of 2015

Add discussion: right to security of tenure (security of tenure and labor as property rights; justification
principle vs employment at will; rules promoting and protecting the right to security of tenure
(classification and categories of employees) just and authorized causes; admin of employee discipline;
enforcement, remedies and consequences of violations of the rules on security of tenure.

Watch:

Play Video

(Termination of Employment and Protection of Employees in Cases of Company Closure (Aug 24, 2018)

A.      Policies and Principles

1.       Coverage – Art. 293, LCP; 295

Note 1: Policy and law aims to protect instances of involuntary termination of employment

Note 2: Covers bilateral employment relationships as well as trilateral employment relationships as

defined in LCP, Art. 106-109 and DOLE DO No. 18-A

2.       Due process clause: Consti Art III, Sec. 1; LCP, Art. 291 (b) – right to work is a property right
covered by due process protections, substantively through a notice specifying the grounds for
termination and procedurally through the observance of the standards in effecting the termination
(Book VI, Rule I, Sec. 2 (d))

3.       Security of tenure Clause: Const, Art. XIII, par. 2; LCP, Art. 293 and IRR Book VI, Rule I, Sec. 1-2-3 –
Guiding Principles- The worker’s right to security of tenure is guaranteed under the Philippine
Constitution and other laws and regulations. No employee shall be terminated from work except for
just or authorized cause and upon observance of due process.

Section 2- This Rules shall apply to all parties of work arrangements where employer-employee
relationship exists. It shall also apply to all parties of legitimate contracting/subcontracting with
existing employer-employee relationships.

Duration and Coverage

·       Eurolinea Phils., Inc. v. NLRC, 156 SCRA 78 (87)

Probationary Employment

·       Cielo v. NLRC, 193 SCRA 410 (91)

4.       Right of employer to dismiss is a measure of self-protection:

·       Reyes vs. Minister of Labor, G.R. No. 48705, Feb. 9, 1989

5.       Suspension of the effects of termination: LCP, Art. 291 (b) last sentence

6.       Right to contest validity of termination; burden of proof on the employer: LCP, Art. 291 (b); Art.
224 (a) 2; Employee proves fact of dismissal

7.       Procedure: LCP, Art. 4 (construction in favor of labor); Art. 221 Technical rules not binding;
amicable settlement encouraged

8.       Right to appeal Labor Arbiter’s decision: perfection of appeal and reinstatement pending appeal:
LCP, Art. 224 (b) and 229, first par. Art. 229, pars. 2 and 3;

 
9.       In the event of illegal dismissal, right to reinstatement without loss of seniority rights and other
privileges and with full backwages: LCP, Art. 293 and Omnibus Rules, Book VI, Rule I, Secs. 3-4;

10.   Judicial recourse: Decisions of the NLRC on illegal dismissal may be questioned

11.   Grounds for Termination by Employer

(Just Causes; Definition; Authorized Causes: Definition; DO 147-15

Causes Attributable to the Employee or Termination by Employer; Procedure and Employer’s

Obligation  –297; 292 (b), Rule 1, Book VI, Sec. 7

JUST CAUSES: LCP, Art. 297; Book VI, Rule I, Sec. 2(d); two notice rule;

1. Serious misconduct; Requisites; Misconduct - Definition

·       Realdo v. New Age Graphics, Inc. et. al. G.R. No. 192190, April 25, 2012

·       Kakampo and its members, et. al. vs Kingspoint Express and Logistic and/or Mary Ann Co. G.R. No.
194813, April 25, 2012

·       Imasen Philippine Manufacturing Corporation vs. Alcon, G.R. No. 194884, October 22, 2014

2. Willful disobedience/insubordination; Requisites

Cases:

·       ECHO 2000 COMMERCIAL CORPORATION Vs. OBRERO FILIPINO-ECHO 2000 Commercial Chapter
Union.  GR No. 214092, January 11, 2016.

3. Gross and habitual neglect of duty; Requisites

·       Realdo v. New Age Graphics, Inc. et. al. G.R. No. 192190, April 25, 2012

·       Armando Ailing v. Jose Feliciano, et. al., G.R. No. 185829, April 25, 2012

·       Nissan Motors Phils, Inc. vs. Victorino Angelo, G.R. No. 164181, Sept. 14, 2011

3-A. Abandonment; Requisites

·       Tacloban Sagkahan Rice, etc. v. NLRC, 183 SCRA 425 (90)

3-B Absenteeism

3.C Incompetence – Negligence

·       Pepsico, Inc. v. NLRC, 177 SCRA 303 (89)

4. Fraud; Requisites

5. Willful Breach of Trust; Requisites

·       Panday v. NLRC, 209 SCRA 122 (92)

·       Elmer Lopez v. Keppel Bank Phils. G.R. No. 176800, Sept. 5, 2011

·       Pamela Jumuas v. Hi-Flyer Food, Inc, Inc. and/or Jose Montemayor, G.R. No, 187887, Sept. 7, 2011

6. Commission of a crime or offense:

·       Reno foods, inc. and/or Khu v. Nagkakaisang Lakas ng Manggagawa, G.R. No. 264026, March 15,
2010

7. Analogous Causes (to Serious Miscondict, fraud, loss of trust, gross and habitual neglect,
commission of the crime, insubordination)

·       Cathedral School of Technology v. NLRC, October 13, 1992

·        

Analogous to serious misconduct et al:

·       John Hancock Insurance Corp. v. Davis, G.R. No. 169549, Sept 3, 2008;

·       Lagrosas v. Bristol Myers, G.R. No. 168637; G.R. No. 170684, Sept. 3, 2008

·       Bonafide occupational qualification (BFOQ)

·       Yrasegui v. Philippine Airlines, G.R. No. 168082, October 17, 2008

·       Star Paper Corp., et. al v. Simbol, et al., G.R. No. 164774, April 12, 2006

Other Causes of Termination:

1. Found positive for use of dangerous drugs – D.O. No. 53, Series of 2003 in relation to the IRR RA
9165

2. Actual, suspected or perceived HIV Status – DO No. 102, Series of 2010

3. Actual, suspected or perceived Hepatitis B. Status – Department Advisory No. 5, Series of 2010 Part
III, C1. Par. 3

4. An employee who has or had Tuberculosis or TB – D.O. No. 75, Series of 2005

5. Sexual Harassment (Libres v. NLRC, National Steel Corp. et. al., G.R. No. 123737, May 28, 1999)
Domingo vs. Rayala. (Admin Penalty for SH in DOLE/NLRC before)

6. Causes of Termination under the CBA (May the employer terminate an employee due to CBA
provisions? Exceptions?)

Application of just causes to probationary employees

·       Pasamba v. NLRC, G.R. No. 168421, June 8, 2007

·       Canadian Opportunities Unlimited, Inc. vs. Bart Dalangin, Jr. G.R. No. 172223, Feb. 6, 2012

Constructive Discharge

·       Philippine-Japan Active Carbon Corp. v. NLRC, 171 SCRA 165 (89)

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D. Constructive Dismissal; requisites

·       DIVINE WORD COLLEGE OF LAOAG, vs Mina, G.R. No. 195155,  APRIL 13, 2016

·       Misamis Oriental II Elec. Coop. v. Cagalanan, G.R. No. 715170, Sept. 5, 2012

·       Verdadero v. Barney Autolines Group of Companies Transport, Inc., G.R. No, 195428, August 29,
2012

·       Superstar Security Agency, Inc. v. NLRC, 184 SCRA 74 (90)

Three kinds of Constructive Dismissal

Courtesy Resignation

·       Batongbacal v. Associated Bank, 168 SCRA 600 (89)

Transfer

·       Yuco Chemical Industries, Inc. v. MOLE, 185 SCRA 727 (90)

E. Preventive Suspension

·       Globe Mackay Cable and Radio Corp. v. NLRC, 206 SCRA 701 (92)

F. Disease as a ground for termination- Art. 299

·       Duterte v. Kingswood Trading Co., G.R. No. 160325, Oct. 4, 2007

1.       Rules on Managerial and Rank-and-File Employees

·       Coca-Cola Bottlers Phils., Inc. v. NLRC, 172 SCRA 751 (89)

2.       Effect of Criminal Cases

Non-Conviction

·       Lacorte v. Inciong, 166 SCRA 1 (88)

Drop Complaint
·       Starlite Plastic Industrial Corp. v. NLRC, 171 SCRA 315 (89)

Offer to Reinstate

·       Ronara v. NLRC, 212 SCRA 631 (92)

II. Business-Related or Authorized Causes  – Art. 297; Book VI, Rule I, Sec. 2 (d); one notice rule

1. Installation of labor-saving devices; Requisites

·       Philippine Sheet Metal Worker’s union v. CIR, 83 Phil. 433 (Automation)

2. Redundancy; requisites

·       Wiltshire File Co., Inc. v. NLRC, 193 SCRA 665 (91) Duplication of work

·       Culili vs. Eastern Telecommunications, et. al. G.R. No, 165381, Feb. 9, 2011

·       Dole Philippines Inc. et. al., v NLRC, et. al.,

·       General Milling Corporation v. Viletal L. Viajar, G.R. No. 181738

3. Retrenchment to prevent losses: requisites; Criteria;

·       Lopez Sugar Corporation v. Federation of Free Workers, 189 SCRA 179 (90)

·       Flight attendants and stewards association of the Phils vs Phil. Airlines, G.R. No. 178083, July 23,
2008

·       International Management Services/Marilyn C. Pascual v. Roel Logarta, G.R. No, 163657, April 18,
2012

Abolition of departments or positions in a company

·       San Miguel Corporation v. NLRC, G.R. No. 99266, March 2, 1999,

Application of Last in First Out Rule in termination due to Installation, Redundancy and Retrenchment

·       Maya Farms Employees Organization v. NLRC, G.R. No. 106256, December 28, 1994
 

4. Closure of Business or cessation of operations unless the closure is for the purpose of circumventing
the provisions on termination of employment

·       Mobil Employees Assn. v. NLRC, 183 SCRA 737 (90)

·       NFL v. NLRC (G.R. NO. 127718, March 2, 2000)

·       EEMI and Go v. Samahang Manggagawa Ever Electrical, G.R. No. 194795, June 13, 2012

Sale in Good faith

·       Lucena Oil Factory Inc. v. NLRC, G.R. No. 7840, November 17, 1986

Relocation of business

·       Cheniver Deco Print Technics Corporation v. NLRC, G.R. No. 122876, February 17, 2000

Merger/Consolidation

3.       Due Process Requirements – Procedural and Substantive – 291 (b)

Procedure

a. Twin notice requirement

b. Hearing; meaning of opportunity to be heard

·       Villena v. NLRC, 193 SCRA 686 (91)

·       King of Kings vs. Mamac, 2007

·       Abbott Laboratories Case – Contractual Due Process

c. Due process in Authorized Causes

4.       RELIEFS FROM ILLEGAL DISMISSAL

Sanctions and Remedies Against Employer for Illegal Dismissal/consequences of illegal dismissal
Mandatory Conciliation-Mediation on Termination Disputes – SENA/ RA 10396; Effect of non-
compliance with settlement agreement

SENA before Compulsory Arbitration with the LA

Voluntary Arbitration if there is CBA provision or agreement bet union and employer

1.       Reinstatement (actual or payroll) – Art.  229

Defined

·       Union of Supervisors, etc. v. Sec. of Labor, 128 SCRA 442 (84)

Business Conditions as Exception

·       Union of Supervisors, etc. v. Sec. of Labor, 128 SCRA 442 (84)

Strained Relationships

·       Maranaw Hotels etc. v. Court of Appeals (G.R. No. 103215, November 6, 1992)

·       Pioneer Texturing Corp. v. NLRC (G.R. No. 118651, October 16, 1997)

Reinstatement Pending Appeal (Article 223, Labor Code)

Separation pay in lieu of reinstatement

2.       Backwages

A. Computation

B. Limited backwages

Backwages – Separation Pay

·       Torillo v. Leogardo, 197 SCRA 471 (91)

·       North Davao Mining v. NLRC” (G.R. No. 112546; 13 March 1996)

 
3-Year Rule and Exceptions

·       Bustamante v. NLRC, November 28, 1996 (2001 Bar)

3.       Damages

·       Sibal v. Notre Dame of Greater Manila, 182 SCRA 538 (90)

·       Suario v. BPI, G.R. No, L-50459, Aug. 25, 1989

4.       Separation Pay

Computation

·       Grolier International Inc. v. Executive Labor Arbiter, 177 SCRA 196 (89)

·       Pulp and Paper, Inc. v. NLRC (September 24, 1997)

Effect Receipt

·       San Miguel Corporation v. Javate, 205 SCRA 469 (92)

5.       Indemnity (Nominal damages)

·       Great Pacific Life Assurance Corp. v. NLRC, 188 SCRA 139 (90)

·       Kwikway Engineering Works v. NLRC, 195 SCRA 526 (91)

·       JAKA Food vs. Pacot, Mar 28, 05, G.R. No. 151378

·       Agabon vs. NLRC, Nov. 14, 04, G.R. No, 158693

6.       Separation pay or Financial Assistance if termination is for cause

When Allowed- Not Allowed

·       Cosmopolitan Funeral Homes, Inc. v. Maalat, 187 SCRA 108 (90)

·       PLDT v. NLRC and Abucay, G.R. No, 80609, Aug. 23, 1988

·       Yrasegui v. PAL, G.R. No. 168081, Oct. 17, 2008

·       Nissan Motors Phils, Inc. v. Victorino Angelo, G.R. No. 164181, Sept. 14, 2011
 

7.       Liabilities (Veil of corporate entity)

As a rule corporate officers may not be held solidarily liable:

·       EEMI and Go v. Samahang Manggagawa ng Ever Electrical, G.R. No. 194795, June 13, 2012

Successor in interest rule; assumption of liability; when proper:

·       Sundowner v. Drilon, G.R. No. 82341, Dec. 6, 1989;

·       BPI v. BPI emp. Union-Davao Chapter, G.R. No. 164301, Aug. 10. 2010;

·       Filipinas Port Services v. NLRC, G.R. No. 97237, Aug. 16, 1991.

Piercing the veil;

·       Restaurante Las Conchas v. Llego, G.R. No. 119085, Sept. 9, 1999;

·       AC Ransom Labor Union v. NLRC, 142 SCRA 269 (1986)

5.       Grounds for Termination by Employee

1.       Resignation – Procedure and Liabilities  – 300 (a)

·       Travel-aire tours corp. v. NLRC, G.R. No. 131523, Aug. 20, 1998

·       PHIMCO v. NLRC, G.R. No. 118041, June 11, 1997

2.       Just Causes for termination by employee  –300 (b)

              I.      PRESCRIPTION – Offenses 305; Money claims 306-307

a. Offenses under the Labor Code

b. Illegal Recruitment (Simple and Large Scale)

c. Monetary Claims
d. Money claims of seafarers (3 yrs)

·       International Management Services v. Logarta, G.R. No. 163657, 18 April 2012

e. ULP Cases

f. Illegal Dismissal Case

·       Montero vs. Times Transportation Co., Inc., G.R. No. 190828, March 16, 2015 (Prescription of
period to file illegal dismissal case; Effect on prescription of withdrawal of previous case)

g. Sexual Harassment

            II.      PENAL LIABILITIES – penalties 303; persons liable 304

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• Week 18 - Final Examination