Labor Law Review Final Exam Reviewer

LABOR LAW REVIEW FINAL EXAM REVIEWER
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COLLECTIVE BARGAINING AGREEMENT (CBA) D. Substitutionary Doctrine
E. Renewal
“Collective Bargaining Agreement” or “CBA” refers to the contract i. Retroactivity
between a legitimate labor union and employer concerning wages, ii. Holdover Principle
hours of work, and all other terms and conditions of employment in a iii. Arbitral Award
bargaining unit. (Sec. 1(j), Rule I, Book Five, Omnibus Rules
Implementing the Labor Code) I. JURISDICTIONAL REQUIREMENTS: the preconditions for
setting in motion the mechanics of collective bargaining.
Q: “A CBA is not an ordinary contract as it is imbued with
public interest.” What is the implication of this statement? Q: If the employer received a letter from the employee union
demanding to start negotiation to collectively bargain, and the
A: Since the CBA is impressed with public interest, the State will employer sought your advice, being the legal counsel, if it
more likely interfere if there are irregularities in the contract. should negotiate with the union, what should be your advice?
What should the employer check before it proceeds to negotiate
Samahang Manggagawa sa Top Form Manufacturing v. NLRC with the employee union?
(1998): The CBA is the law between the contracting parties — the
collective bargaining representative and the employer-company. A: The employer must first check the jurisdictional requirements.
Compliance with a CBA is mandated by the expressed policy to Under the jurisprudence (Kiok Loy v. NLRC and Associate Labor
give protection to labor. In the same vein, CBA provisions should Unions v. Ferrer-Calleja), the following are the jurisdictional
be "construed liberally rather than narrowly and technically, and the requirements which should be present before a collective bargaining
courts must place a practical and realistic construction upon it, negotiation could commence:
giving due consideration to the context in which it is negotiated and (1) The union must be able to prove its existence and status as
purpose which it is intended to serve." This is founded on the dictum the exclusive bargaining representative;
that a CBA is not an ordinary contract but one impressed with (2) The union must be able to show proof that it is indeed the
public interest. exclusive bargaining representative;
(3) The union must have presented prior demand to negotiate.
Important concepts under this topic:
I. Jurisdictional Requirements Q: Without the jurisdictional requirements, employer cannot
II. Duty to Collectively Bargain negotiate. What if it is present and yet the employer refuses to
III. Procedure in Collective Bargaining negotiate?
A. Negotiation, Execution, Ratification
B. Registration A: There is ULP (negotiation in bad faith).
IV. Life of the CBA
A. Economic Provisions Q: Can the employer initiate or send an invitation to negotiate
B. Political/ Representation Aspect collective bargaining with the exclusive bargaining
C. Freedom Period representative?
1 | JD-MBA, FEU-DLSU Consortium

Labor Law Review under Atty. Filemon Ray L. Javier
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A: Under Art. 261 [250] of the Labor Code, which provides for the - Negotiate an agreement with respect to wages, hours of
procedure in collective bargaining, a party, which may either be the work and other terms and conditions of employment
exclusive bargaining representative or the employer, may serve a including proposals for adjusting any grievances or questions
written notice upon the other party with a statement of proposal. The arising under such agreement.
employer may therefore initiate or send an invitation to negotiate - Execute a contract incorporating such agreements if
collective bargaining. However, in the case of Kiok Loy v. NLRC requested by either party.
(1986), while it is a mutual obligation of the parties to bargain, the
employer, however, is not under any legal duty to initiate contract This duty does not compel any party to agree to a proposal or to
negotiation. make any concession. Otherwise, the compelling party would be
liable for ULP.
Q: Should the union be consulted whenever the employer
decides to contract out work? Duty to Bargain Collectively Absent a CBA, Art. 262[251] : In the
absence of an agreement or other voluntary arrangement providing
A: G.R. NO since the employer has the prerogative to contract out for a more expeditious manner of collective bargaining, it shall be the
work for business reasons (EXCEPT) when CBA stipulates that the duty of employer and the representatives of the employees to
union has to be consulted if the employer is to contract out work. bargain collectively in accordance with the provisions of this Code.
Lakas ng Manggagawang Makabayan v. Marcelo Enterprises

(1982): An employer is under duty to bargain collectively only when Duty to Bargain Collectively when there is a CBA (Art. 264 [253])
the bargaining agent is representative of the majority of the If there is an existing CBA, it is the duty of both parties to:
employees. A natural consequence of these principles is that the - Neither terminate nor modify the terms of the agreement
employer has the right to demand of the asserted bargaining during its lifetime.
agent proof of its representation of its employees. Having the o The parties may only do so by written notice at least
right to demonstration of this fact, it is not an 'unfair labor practice'
60 days prior to the expiration of the CBA.
for an employer to refuse to negotiate until the asserted
o This does not always coincide with the freedom
bargaining agent has presented reasonable proof of majority
representation. It is necessary however, that such demand be period.
made in good faith and not merely as a pretext or device for delay - Maintain the status quo and abide by the terms and
or evasion. The employer's right is however subject to conditions of the current CBA they agreed upon until:
reasonable proof. o The expiration date of the CBA; and/or
o A new agreement has been reached by the parties.
II. DUTY TO COLLECTIVELY BARGAIN o NB: These periods include the 60 day period
discussed above.
Art. 263 [252]: The duty to bargain collectively means the
performance of a mutual obligation to meet and convene promptly Colegio de San Juan de Letran v. Association of Employees and
and expeditiously in good faith in order to: Faculty of Letran (2000): Where the employer did not even bother
to submit an answer to the bargaining proposals of the union, there is

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a clear evasion of the duty to bargain collectively under Art. 251
(Now, Art. 262 of Labor Code). Lack of sincere desire or interest on
the part of the employer in bargaining with the union constitute ULP.
(Utter lack of interest in bargaining with the union is obvious in its
failure to make a timely reply to the proposals presented by the latter.
More than a month after the proposals were submitted by the union,
employer still had not made any counter-proposals.)
Rivera v. Espiritu (2002): The right to free collective bargaining,

after all, includes the right to suspend it.

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III. PROCEDURE IN COLLECTIVE BARGAINING
Art 261 [250] & Sec. 20 RA 6715: PROCEDURE IN COLLECTIVE BARGAINING (When parties have differences)
w/in 10 Calendar w/in 10 Calendar

days fr. Receipt of Request for
Written Notice days fr. Date of
NCMB
of Demand with
Notice
Reply Request for Request EBR-ER NCMB Voluntary
Conference Conference Conciliation Arbitration
Statement of Intervention
Proposals Only If there is
differences in Proposals
and counter
Art 261 [250] and Rule XVII, Book Five, Omnibus Rules Implementing the Labor Code:
PROCEDURE IN COLLECTIVE BARGAINING (When parties’ differences are settled or when parties have no differences)
w/in 10 Calendar w/in 10 Calendar w/in 30 days from Agreement

days fr. Receipt of
Written Notice days fr. Date of
Ratification
of Demand
Notice
Request for Request Agreement Application for
Reply EBR-ER Posting of by at least
with Statement Conference and Registration of
Conference signed CBA
Signing of majority of CBA with DOLE
of in 2
Proposals CBA employees RO or BLR
conspicuous
places in the in the
w/in 1 day fr.
establishment bargaining Receipt of
unit Application
Must be at least 5
If approved,
days before
ratification issue Cert. of
Registration
w/in 10 days fr. w/in 10 days fr.
Receipt of Denial Receipt of Notice If requirements are
Appeal to of Application Denial of incomplete issue notice
BLR /SOLE Application to complete reqs.

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Procedure for CBA Negotiation (A250, Labor Code) Q. Is there a penalty when the employer does not reply to the
1. When a party desires to negotiate an agreement, it shall written demand of the EBR to collectively bargain, within 10
serve a written notice upon the other party with a statement days? What is the consequence on the CBA if the employer fails
of its proposals. The other party shall make a reply thereto to comply?
not later than ten (10) calendar days from receipt of such
notice; A: Yes. Depending on the circumstances, Refusal of the employer to
2. Should differences arise on the basis of such notice and reply to the written demand of the EBR to collectively bargain within
reply, either party may request for a conference which shall 10 days from receipt of the said notice of demand, is tantamount to a
begin not later than ten (10) calendar days from the date of violation of a duty to bargain collectively which under Article 259
request. [248] of the Labor Code is classified as an unfair labor practice of
3. If the dispute is not settled, the NCMB shall intervene upon employer which may hold the officers or agents of the corporate
request of either or both parties or at its own initiative and employers criminally liable.
immediately call the parties to conciliation meetings. The
NCMB shall have the power to issue subpoenas requiring In the case of Kiok Loy v. NLRC (1986), when the employer refused
the attendance of the parties to such meetings. It shall be the to submit any counter-proposal to the CBA proposed by the certified
duty of the parties to participate fully and promptly in the bargaining agent, indicative of its disregard of, and failure to bargain
conciliation meetings the NCMB may call; in good faith, the Court ruled that the proposed CBA terms and
4. During the conciliation proceedings, the parties are conditions by the union is the governing collective bargaining
prohibited from doing any act which may disrupt or agreement between the employer and employees.
impede the early settlement of the disputes; and
5. The NCMB shall exert all efforts to settle disputes amicably Q: Is the 10 day period allotted for the employer to reply
and encourage the parties to submit their case to a mandatory or merely procedural?
voluntary arbitrator.
A: The reply itself is mandatory. If the employer does not reply, he
Q. What should the written notice of demand of the exclusive may be held liable for ULP. However, the manner in which the
bargaining representative contain to commence collective employer replies is just procedural. What matters is that there is an
bargaining with the employer? effort to negotiate even though form is not formal. Again, the reply is
mandatory but form itself is procedural.
A: Considering the jurisdictional requirements provided under the
jurisprudence, it is ideal that the EBR must identify itself in the notice N.B. Employer just has to prove that he is willing to negotiate.
of demand as EBR and show proof as the same. More importantly, Employer must respond within 10 days and said response need not
under Art. 261 [250] of the Labor, the notice of demand must indicate be the counter proposal already. What is important is the
not only the demand to negotiate bargaining collectively, but also the acknowledgement of the receipt of the union’s demand to bargain.
statements of proposals concerning the terms and conditions of the Reply can be in any form (I.E. “yes”, “no”, “with comments”, “for
CBA. further discussion” etc.).

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As the SC has held in the case of Kiok Loy vs. NLRC, the company's National Union of Restaurant Workers v. Court of Industrial
refusal to make counter-proposal to the union's proposed CBA is an Relations (1964): The condition requiring the employer to reply
indication of its bad faith. Where the employer did not even bother to within 10 days from receipt of a written notice making demands, is
submit an answer to the bargaining proposals of the union, there is a merely procedural, and as such its non-compliance cannot be
clear evasion of the duty to bargain collectively. In the case at bar, deemed to be an act of unfair labor practice.
petitioner's actuation show a lack of sincere desire to negotiate
rendering it guilty of unfair labor practice (Collegio de San Juan de Q: Where should the EBR-ER conference to bargain collectively,
Letran v. Association of Employees and Faculty of Letran, 340 SCRA be held?
587).
A: The law does not provide for a mandatory venue for the
Q. If the EBR issue a notice of demand to collectively bargain conference between the EBR and the ER. It does not need to be in
with the employer, should the counter-proposal from the the premises of the NCMB or the premises of the establishment.
employer be presented within 10 days when the reply of the
employer is required to be made? Samahang Manggagawa sa Top Form Manufacturing v. NLRC
(1998): A minutes of the negotiation is different from the CBA finally
A: No. The test of reasonableness dictates that 10 days from receipt entered by the parties. The former’s embodiments cannot be
of notice of demand and proposal is too short for the employer’s deemed to be included in the CBA, itself, if it is not there, to begin
management to judiciously prepare its counter-proposal. What the with.
law simply require is for the employer to reply acknowledging receipt
of the notice of demand within 10 days and present its counter- Mindanao Terminal and Brokerage Service, Inc. v. Confesor
proposals within a reasonable period of time. (1997): The signing of the CBA is not determinative of the question
whether the agreement was entered into within six months from the
Q: If parties agree on a different procedure in negotiation (I.E. date of expiry of the term of such other provisions as fixed in such
reply in 60 days), will the CBA be valid? collective bargaining agreement within the contemplation of Art. 265
[253-A].Even without any written evidence of the CBA made by the
A: YES. The law prescribes minimum requirements. The procedure parties, a valid agreement existed from the moment the minds of the
in the Labor Code is just directory. As long as both employer and parties met on all matters they set out to discuss. As Art. 1315 of the
employee are in agreement, then it will be binding. If there is no Civil Code states: Contracts are perfected by mere consent, and
agreement, then follow what the law states. from that moment, the parties are bound not only to the fulfillment of
what has been expressly stipulated but also to all the consequences
Q: How will you know if there is really a deadlock? which, according to their nature, may be in keeping with good faith,
usage and law.
A: Although it may be difficult to determine, it may be said that there
is a deadlock when the matter is (1) subject to me conciliation or (2) MERALCO vs.Quisumbing (1999): a collective bargaining dispute
when the union filed a notice of strike. Even if a year has passed requires due consideration and proper balancing of the interests of
without either (1) or (2) no deadlock. the parties to the dispute and of those who might be affected by the

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dispute. The best way in approaching the dispute is to consider the Regional Offices shall furnish the Bureau with a copy of the
available objective facts, including, where applicable, factors such as Collective Bargaining Agreement within five (5) days from its
the bargaining history of the company, the trends and amounts of submission.
arbitrated and agreed wage awards and the company's previous
CBAs, and industry trends in general. Q. What are the requirements for registration of the CBA?
Samahang Manggagawa sa Top Form Manufacturing v. NLRC A: Under Rule XVII, Book Five of the Omnibus Rules
(1998): With the execution of the CBA, bad faith bargaining can no Implementing the Labor Code, the following are the requirements
longer be imputed upon any of the parties thereto. All provisions in for the registration of the CBA:
the CBA are supposed to have been jointly and voluntarily (1) Copy of the CBA
incorporated therein by the parties. (2) Statement that the CBA was posted in at least 2
conspicuous places in the establishment or establishments
Ratification of the CBA (Sec. 2, Rule XVII, Omnibus Rules concerned for at least 5 days before its ratification
Implementing the Labor Code) (3) Statement that the collective bargaining agreement was
ratified by the majority of the employees in the bargaining
“Ratification” refers to the majority of the members of a bargaining unit of the employer or employees concerned.
unit which the union represents giving their consent to the terms and (4) Payment of the prescribed registration fee.
conditions of the CBA.
Ratification is mandatory and failure to have a CBA Q. What is the consequence of non-registration of the CBA?
ratified will prevent it from being registered.
It is important to note that this refers to all members of A: Registration of the CBA is in the interest of the incumbent union in
the bargaining unit and not merely the members of the order to claim the protection of the Contract Bar Rule. An
EBR union. unregistered CBA is deemed to be binding only upon the parties but
There is no set time period over which the ratification not rival unions.
must be accomplished. Must at least be done within a
reasonable period of time. “Conspicuous place” usually refers to a bulletin board.
Re: Precedence of CBA signing vs. CBA ratification
Registration (A231, Labor Code) Law and IRR is silent. Depends entirely on
Within thirty (30) days from the execution of a Collective Bargaining the situation at hand.
Agreement, the parties shall submit copies of the same directly to the What is important is that the union duly
BLR or the Regional Offices of the DOLE for registration, submits the signed CBA and the ratification
accompanied with verified proofs of its posting in two conspicuous anyway.
places in the place of work and ratification by the majority of all the o 30 days is reckoned from the meeting of minds
workers in the bargaining unit. The BLR or Regional Offices shall act between the EBR union and the employer and not
upon the application for registration of such Collective Bargaining from the actual signing of the CBA.
Agreement within five (5) calendar days from receipt thereof. The

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Failure to register the CBA within 30 days
leaves the incumbent union vulnerable to
attacks from its rivals.
Liberty Flour Mills Employees v. Liberty Flour Mills, Inc. (1989):

The certification of the collective bargaining agreement by the
Bureau of Labor Relations is not required to put a stamp of validity to
such contract. Once it is duly entered into and signed by the parties,
a collective bargaining agreement becomes effective as between the
parties regardless of whether or not the same has been certified by
the BLR.

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FREEDOM PERIOD: 60 Days prior to expiration of CBA, ECONOMIC ASPECT: 3 YEARS
IV. LIFE OF THE CBA when either party can serve a written notice to terminate or Must be re-negotiated no later than
modify CBA (Art. 264 [253] the 3rd year of the lifespan of the
REPRESENTATION/ POLITICAL SUBSTITUTIONARY DOCTRINE: a situation where the EBR CBA.
ASPECT: 5 YEARS was replaced by another during the subsistence of a CBA Covers to all other provisions of the
Contract Bar Rule applies for the entirety (which most likely happens during the freedom period) CBA under than representation
of this duration until the beginning of the - The bargaining unit is still bound by the terms of the aspect. (Art. 265 [253-A])
60 day freedom period (Art. 265 [253-A], earlier CBA and may not revoke the same simply by Atty. Javier: In practice, the 4th and
Labor Code, & Sec.7, Rule XVII, Book expedient of changing their EBR. 5th years of the original CBA as
Five, Omnibus Rules Implementing entered into with regard to its
- They may, however, negotiate for the shortening of
Labor Code) economic aspect are left tentative in
the existing CBA if they so wish. (see Benguet
Consolidated, Inc. v. BCI Employees Workers light of this provision of law.
Union (1967)
ART 265 [253-A]: LIFE OF THE CBA Rules on Retroactive and Holdover
Political/Representation Aspect Application on CBA Renewal
Aspect (possible applications)
Start Year 3 Year 5 th

6 Mon.
Economic Aspect
Freedom Period Retroactivity Rules on
Substitutionary Doctrine Arbitral Awards
(possible application)
RETROACTIVITY RULE: 6 MONTHS RECKONING PERIOD ARBITRAL AWARDS

If a new CBA is entered into within 6 months from the expiration date of In cases of negotiation deadlocks between the union and the employer resulting in
its predecessor, its provisions shall retroact to the day following such arbitration and consequent arbitral awards,
expiration.
Current Rule: Labor Secretary has discretion as to terms, conditions, and retroactive
If a new CBA is entered into beyond the expiration date of the CBA, the
application of the award/ CBA.
parties (EBR and Employer) may agree on the duration of
retroactivity.(Art. 265[253-A])
Standing Issue: (No jurisprudence yet) If SOLE fails to specify the period of retroactivity
HOLDOVER PRINCIPLE: when both parties agreed on the prospective
of the arbitral award.
application of CBA renewal, the provisions of the old CBA will be applied to0 the San Miguel Corp. Employees Union v. Confesor (1996): The
Atty. Javier: apply the prospectivity principle under Civil Procedure as regards
gap when the CBA renewal will not be applied retroactively. (Art. 264 [253] See. "representation aspect" refers to the identity and majority status of
judgment awards
Also MERALCO v. Quisumbing (2000)

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the union that negotiated the CBA as the exclusive bargaining signing bonus is justified by and is the consideration paid for the
representative of the appropriate bargaining unit concerned. "All goodwill that existed in the negotiations that culminated in the
other provisions" simply refers to the rest of the CBA, economic as signing of a CBA. Without the goodwill, the payment of a signing
well as non-economic provisions, except representation. bonus cannot be justified
MERALCO v. Quisumbing (1999): where an arbitral award granted

Q: In arbitral awards, the Secretary has the power to determine beyond six months after the expiration of the existing CBA, and there
when order and CBA will be effective. What test may the courts is no agreement between the parties as to the date of effectivity
use in case a party questions such power? thereof, the arbitral award shall retroact to the first day after the six-
month period following the expiration of the last day of the CBA
A: The only test the court will use is the “Test of Reasonability”.
When the Secretary picks a date, the period not chosen will be MERALCO v. QUISUMBING (2000): During the interregnum
subject to the “Holdover Principle”. There should be no vacuum. between the expiration of the economic provisions of the CBA and
the date of effectivity of the arbitral award, it is understood that the
Q: What if the Secretary does not rule on the period of hold-over principle shall govern: "It shall be the duty of both parties to
effectivity? keep the status quo and to continue in full force and effect the terms
and conditions of the existing agreement during the 60-day freedom
A: Follow ordinary rules, prospective application. It’s only an period and/or until a new agreement is reached by the parties."
exception when Secretary decides on retroactive application. Despite the lapse of the formal effectivity of the CBA the law still
considers the same as continuing in force and effect until a new CBA
San Miguel Corp. Employees Union v. Confesor (1996): As a shall have been validly executed.
matter of policy the parties are encouraged to enter into a
renegotiated CBA with a term which would coincide with the five (5) NEW PACIFIC TIMBER v. NLRC (2000): Articles 264 [253] and 265
year term of the bargaining representative. In the event however, that [253-A] mandate the parties to keep the status quo and to continue
the parties, by mutual agreement, enter into a renegotiated contract in full force and effect the terms and conditions of the existing
with a term of three (3) years or one which does not coincide with the agreement during the 60-day period prior to the expiration of the old
said 5-year term, and said agreement is ratified by majority of the CBA and/or until a new agreement is reached by the parties.
members in the bargaining unit, the subject contract is valid and legal Consequently, the automatic renewal clause provided for by the law,
and therefore, binds the contracting parties. The same will however which is deemed incorporated in all CBA's, provides the reason why
not adversely affect the right of another union to challenge the the new CBA can only be given a prospective effect.
majority status of the incumbent bargaining agent within sixty (60)
days before the lapse of the original five (5) year term of the CBA.
MERALCO v. Quisumbing (1999): the signing bonus is a grant UNFAIR LABOR PRACTICE (ULP)
motivated by the goodwill generated when a CBA is successfully
negotiated and signed between the employer and the union. a Q: What is ULP?

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Violations of a Collective Bargaining Agreement, except those which
A: Acts opposed to the right to self-organize or engage in lawful are gross in character, shall no longer be treated as unfair labor
concerted activities for collective bargaining or worker’s mutual aid practice and shall be resolved as grievances under the Collective
and protection. Bargaining Agreement (Santuyo et. al v. Remerco Garments, March
22, 2010).
Q: What are the elements of ULP?
A: ULP has three (3) elements, namely (EVE): Q: Is it necessary that we consider the “violation of the right to
1. That there is an Employer-employee relationship self-organize” as an element of ULP?
between the offender and the offended;
2. That the act done is Expressly defined in the Code A: YES. The violation of the right to self-organize is an element.
as an act of unfair labor practice; Upon reading the introductory phrase in Art. 257 which states, “unfair
3. That there is a Violation of the right to self-organize. labor practices violate the constitutional right of workers and
employees to self-organization x x x” it would appear that the
N.B. There are really three (3) elements, sometimes some violation of the right to self-organize is an inherent element. But we
authorities will say that there are only two (2) elements. The should still consider it separately because there is no ULP if there is
element of employer-employee relationship is usually excluded no violation of the right to self-organize.
since it is already a “given”, but it is really an element of ULP.
There can be no ULP without an employer-employee Q: Art. 259 (F) states that it shall be unlawful for an employer to
relationship. “dismiss, discharge, or otherwise prejudice or discriminate
against an employee for having given or being about to give
Q: Is every unfair act ULP? testimony under this Code”. If the law refers to the Code, should
this still be restricted to the right to self-organize?
A: NO. Not every unfair act is ULP because ULP has to be related to
self-organization and to the observance of the CBA. (I.E. An A: NO. If it refers to the Code, the testimony need not be restricted or
employer promoted an employee who does not deserve to be necessarily related to the right to self-organize. Art. 259 (F) need not
promoted because he does not do quality work. This is unfair but the be related to the right to self-organize.
employer does not commit ULP because promoting the undeserving
employee has nothing to do with the worker’s right to self-organize). Q: If Art. 259 (F) need not be related to self-organization, how do
we reconcile this with the ULP element of the presence of a
violation of the right to self-organize?
Unfair labor practice refers to acts that violate the workers right to
organize. The prohibited acts are related to the workers right to self- A: The phrase “under this code” in Art. 259 (F) is not a typographical
organization and to the observance of a CBA. Without that element, error. It is still related to the right to self-organize. The violation of
the acts, no matter how unfair, are not unfair labor practices (Philcom right to self organize is indeed an element of ULP. Some authorities
Employees Union v. Philippine Global Communications, 495 SCRA
reconcile it in this manner: The moment the employer retaliates when
214).
the employee gives or agrees to give testimony against the employer
on any matter falling under the Code, it creates a “chilling effect”

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among the employees. Hence, there is a violation of the right to self- Q: How many cases will you file if there is ULP?
organize.
A: Initially, one (1). File administrative case first with the Labor
Every time an employee testifies against an employer, it is one step Arbiter to deal with the civil aspect. If there is a ULP finding in the
further to the right to self-organize. In other words, if the law allows administrative case, file the criminal case.
the employer to retaliate against a testifying employee, the latter will
be scared to organize with his co-employees. The employer, in this Q: Can you file criminal case directly?
sense, will have the “power” to union bust.
A: NO. File the civil case first. Else, said criminal case will be
So even if Art. 259 (F) says “under this Code”, thus covering any dismissed. There must be a finding of ULP first before you can file
matter in the Labor Code, it is still related to the right to self-organize. the criminal case.
(I.E. Even if the issue is about overtime pay, retaliation still
constitutes ULP so that the employee in question will not be afraid to Art. 258 states, “concept of unfair labor practice and procedure for
talk to his co-employees and persuade them to also file a case prosecution thereof - x x x no criminal prosecution under this Title
against the employer about overtime pay; Even if there is no right to may be instituted without a final judgment finding that an unfair labor
self-organize at that time when testimony was given). The law seeks practice was committed, having been first obtained in the preceding
to prevent the “chilling effect” among employees to organize. paragraph (As amended by Batas Pambansa Bilang 70, May 1, 1980
and later further amended by Section 19, Republic Act No. 6715,
Q: T/F ULP is a civil law violation. March 21, 1989).”
A: F. ULP is considered as a public offense which carries both (1) Q: If one files the criminal case directly, what is the ground for
civil and (2) criminal liabilities. its dismissal?
If the employer grossly violates its CBA with the duly recognized A: Failure to comply with condition precedent.
union, the former may be held administratively and criminally liable
for unfair labor practice (Employees Union of Bayer v. Bayer Phils., Q: What is the “condition precedent” (1) mere filing of the civil
December 6, 2010). case or (2) filing of the civil case and a finding of ULP?
Unfair labor practice cases are not, in view of the public interest A: Latter. The condition precedent is the filing of the civil case and a
involved, subject to compromises (CLLG E.G. Gochangco Workers finding of ULP. Mere filing of the civil case not sufficient.
Union v. NLRC, No.L-67158, etc., 161 SCRA 655).
Art. 258 states, “concept of unfair labor practice and procedure for
prosecution thereof - x x x no criminal prosecution under this Title
may be instituted without a final judgment finding that an unfair labor
practice was committed x x x (As amended by Batas Pambansa
Bilang 70, May 1, 1980 and later further amended by Section 19,
Republic Act No. 6715, March 21, 1989).”

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Q: If there is no finding of ULP in the civil aspect, can you file
accept as sufficient to support a conclusion is required. The general
the criminal case?
rule is that one who makes an allegation has the burden of proving it.
While there are exceptions to this general rule, in the case of ULP,
A: NO. Again, what matters is not mere filing of the civil case but
the alleging party has the burden of proving such ULP. Substantial
winning (I.E. Labor Arbiter held that there is ULP). evidence is required to prove ULP (UST etc v. UST etc, 584 SCRA
684).
Q: Now that there is a finding of ULP, can one present it in the
criminal case to convince the judge there is indeed ULP?
Q: What about the rule that administrative rulings are given
A: NO. The presentation of the civil case ruling is just to show that weight?
the party complied with the condition precedent.
A: The general rule is that the finding of an administrative body is
Art. 258 states, “concept of unfair labor practice and procedure for given respect. That is why the Labor Code is required to specifically
prosecution thereof - x x x the final judgment in the administrative state that the finding of ULP in civil cases will not bind criminal court.
proceedings shall not be binding in the criminal case nor be In ULP it is different, once the criminal case commences it is a trial
considered as evidence of guilt but merely as proof of compliance of de novo. It is thus necessary to present evidence and hear
the requirements therein set forth (As amended by Batas Pambansa prosecution and defense again. Judge will not rely on the finding of
Bilang 70, May 1, 1980 and later further amended by Section 19, ULP in the administrative case.
Republic Act No. 6715, March 21, 1989).”
Q: What is the prescriptive period for ULP cases?
Q: What is the necessary quantum of proof?
A: One (1) year to file the case.
A: (1) Administrative case – Substantial evidence and (2) Criminal
case – Proof beyond reasonable doubt. Art. 305 states, “x x x all unfair labor practice arising from Book V
shall be filed with the appropriate agency within one (1) year from
accrual of such unfair labor practice; otherwise, they shall be forever
For a charge of unfair labor practice (ULP) to prosper, it must be barred.”
shown that the employer was motivated by ill-will, bad faith or fraud,
or was oppressive to labor. The employer must have acted in a Q: What if the civil case was filed in 2015 and the decision
manner contrary to morals, good customs, or public policy causing finding ULP, which is a condition precedent, was released in
social humiliation, wounded feelings or grave anxiety (Manila Mining 2017. Two (2) years elapsed. Can the defense of prescription
employees Corp. v. Manila Mining, September 29, 2010). stand to bar the criminal case?
Petitioner makes several allegations that UST committed ULP. The A: NO. During the proceedings for the civil case, the prescriptive
onus probandi falls on the shoulders of petitioner to establish or
period for the criminal case shall be suspended.
substantiate such claims by the requisite quantum of evidence. In
labor cases as in other administrative proceedings, substantial
Art. 258 states, “concept of unfair labor practice and procedure for
evidence or such relevant evidence as a reasonable mind might
prosecution thereof - x x x during the pendency of such

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administrative proceeding, the running of the period of prescription of Q: Is it required that the officer actually participated in the ULP
the criminal offense herein penalized shall be considered interrupted or is the mere fact that he is an officer make him liable?
(As amended by Batas Pambansa Bilang 70, May 1, 1980 and later
further amended by Section 19, Republic Act No. 6715, March 21, A: Former. What is important is that the officer has knowledge of the
1989).” ULP.
Q: What are the two (2) types of ULP? Q: Can you consider inaction as assent re ULP?
A: (1) ULP committed by employers and (2) ULP committed by labor A: YES. It is deemed ratified. Thus, officer or agent who did not
organizations object to the ULP can be held liable.
Q: In ULP cases, who shall be liable? N.B. Remember the rule in the Corporation Code wherein the
officer must express his objection in writing (or register the same
A: Art. 259 states, “x x x the provisions of the preceding paragraph in the minutes of the meeting) for him to be exempted.
notwithstanding, only the officers and agents of corporations,
associations, partnerships who have actually participated in, Q: What is the “Totality of Conduct Doctrine”?
authorized or ratified unfair labor practices shall be held criminally
liable. (As amended by B.P. Blg. 130, August 21, 1981).” A: The culpability of employer’s remarks will be evaluated on basis of
its implication and background of circumstances.
Art. 304 states, “who are liable when committed by other than natural
person. - If the offense is committed by a corporation, trust, firm, N.B. Normally this is applied when the employer gives a remark.
partnership, association or any other entity, the penalty shall be At this point one should decide if it is ULP or not when the
imposed upon the guilty officer or officers of such corporation, trust, employer said the remark. Sometimes one says different things
firm, partnership, association or entity.” from what he does so take the remark in question with other
circumstances (I.E. “I’m against unions” but it’s not coupled with
Art. 260 states, “x x x the provisions of the preceding paragraph any other questionable act then no ULP).
notwithstanding, only the officers, members of governing boards,
representatives or agents or members of labor associations or Q: Art. 259 (A) which states that it shall be unlawful for an
organizations who have actually participated in, authorized, or ratified employer “to interfere with, restrain or coerce employees in the
unfair labor practices shall be held criminally liable. (As amended by exercise of their right to self-organization” is a straightforward
B.P. Blg. 130, August 21, 1981).” catch-all provision. How about attempts to union bust? Is it
already ULP?
Q: If there was ULP but the president of the corporation was on
vacation when such was committed, will he be held liable ? A: NO. Not automatically. It Is important for you to test the act. An
attempt may or may not be ULP.
A: NO. The law states that only officers or agents who “actually
participated in, authorized, or ratified unfair labor practices shall be
held criminally liable”.

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It is ULP for an employer operating under a CBA to negotiate or to The Court has always respected a company's exercise of its
attempt to negotiate with his employees individually in connection prerogative to devise means to improve its operations. Thus, we
with changes in the agreement. The basis of the prohibition have held that management is free to regulate, according to its own
regarding individual bargaining with the strikers (I.E. via individual discretion and judgment, all aspects of employment, including hiring,
letters) is that although the union is on strike, the employer is still work assignments, supervision and transfer of employees, working
under obligation to bargain with the union as the employees' methods, time, place and manner of work. This is so because the law
bargaining representative (Insular Life Assurance Co. Ltd., on unfair labor practices is not intended to deprive employers of their
Employees v. Insular Assurance Co. Ltd., 37 SCRA 244). fundamental right to prescribe and enforce such rules as they
honestly believe to be necessary to the proper, productive and
Mere retrenchment of the exclusive bargaining unit’s officers does profitable operation of their business (Bankard, Inc. v. NLRC, G.R.
not automatically prove restraint or coercion in their right to organize No. 171664, March 6, 2013).
(Flight Attendants etc., v. PAL, 559 SCRA 252).
Q: A negotiation was scheduled, employer paid for the rooms
Q: What is the “Yellow Dog Condition”? and food of employees in Makati Shangri-La. Is this act ULP?
A: A promise exacted from workers or prospective employees, as a A: In answering this question, there is no hard and fast rule. Case to
condition of employment, that they will not join a labor organization or case basis. On one hand you can argue that these are union
shall withdraw from one to which he belongs. expenses hence falling within Art. 259 (D). On the other hand, you
can argue that it is not ULP (I.E. In case it is company practice).
Art. 259 (B) states that it shall be unlawful for an employer “to require
as a condition of employment that a person or an employee shall not N.B. Know the list under Art. 259 and 260 so you have something
join a labor organization or shall withdraw from one to which he to start with in answering the question.
belongs”
Q: What is the rule with regard discrimination?
Q: Is there an exception to Art. 259 (B)?
A: Art. 259 (E) states that it shall be unlawful for an employer “to
A: Members of the INC religious sect, although they may form unions discriminate in regard to wages, hours of work and other terms and
of their own. conditions of employment in order to encourage or discourage
membership in any labor organization”.
Q: T/F Contracting out of work is prohibited.
N.B. Discrimination is not unlawful per se. This article is a
A: F. The law just stated that an employer should not contract out question of intention. Just because the benefits to non-union
work in bad faith and when it will interfere with employees’ right to members are different does not automatically mean there is ULP.
self-organize. Check first if discrimination is meant to encourage or discourage
membership. What is prohibited is the discrimination to convince
employees not to join a union.

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An employer could be held guilty of discrimination, even if the
preferred union was not company-dominated. To constitute an unfair A: (2) B who was hired 20 years ago but was never part of any union
labor practice, the dismissal need not entirely and exclusively be (B can be compelled because of the union security clause) and (4) D
motivated by the union’s activities or affiliations. It is enough that the who is a new employee are covered by the rule re membership in
discrimination was a contributing factor. If the basic inspiration for the ABC union.
act of the employer is derived from the affiliation or activities of the
union, the former’s assignment of another reason, no matter how A is excluded (right to religion is said to be higher than the right to
seemingly valid, is unavailing (Me-Shurn Corp v. Me-Shurn Workers contract). C is also excluded (already a member of an existing union
Union, 448 SCRA 41). at time CBA and union security clause took in effect; remember that
the law protects only those who are already members of a union).
Q: What is the exception to the rule on discrimination in Art. 259 N.B. During the freedom period, members of bargaining union can
(E)? jump ship and file for PCE.
A: Union security clause. It is a term which comprehends any form of

agreement which imposes upon employees the obligation to acquire
or retain membership as a condition of employment. It is a valid form
of discrimination which promotes unionism.
N.B. The consequences of violating the union security clause

must be clearly stipulated in the CBA (I.E. Re termination).
Q: If there is a union security clause can you compel all

employees to join the union?
A: NO. There are employees who are exempt from joining the union
(I.E. Those disqualified, religious objectors, employees already in the
service and already members of a union other than the majority at
the time the closed shop agreement took effect, employees exempt
by express terms of the CBA).
Q: “All employees of this company, whether new or existing, are

required to be members of ABC union (incumbent).” In the
company there are three (3) employees: (1) A who is a member
of the INC, (2) B who was hired 20 years ago but was never part
of any union, (3) C who was hired 10 years ago but is a member
of the rival union, and (4) D who is a new employee. Who are
covered by the rule re membership in ABC union?

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STRIKES AND LOCKOUTS representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment
Q: What is a strike? regardless of whether the disputants stand in the proximate relation
of employer and employee. (Article 219 (i), Labor Code)
A: Strike means any temporary stoppage of work by the concerted
action of the employees as a result of an industrial or labor dispute. Q: Who may declare a strike?
(Art. 219 (o),Labor Code)
A: General Rule: Only the certified or duly recognized bargaining
Q: Can employees of another company join the strike of the representative may declare a strike.
employees of a different company against the latter’s employer?
In other words, are sympathetic strikes valid and legal? Exception: In the absence of a certified or duly recognized
bargaining representative, any legitimate labor organization may
A: No. There should be employer-employee relationship between the declare a strike, but only on the ground of Unfair Labor Practice.
striking employees and the employer. Employees with no labor
dispute with their employer but who refuses to work on a work day to Q: What are the six factors affecting legality of a strike?
join a Welga ng Bayan commit an illegal work stoppage. (Biflex (PPPMIA)
Union vs. Filflex Industrial, 511 SCRA 247)
A: 1. Purpose
Q: What is a lockout? 2. Prohibitions
3. Procedure
A: Lockout means the temporary refusal of an employer to furnish 4. Means and Methods
work as a result of an industrial or labor dispute. (Article 219 (p), 5. Injunction
Labor Code) 6. Agreement of the Parties
Q: Can there be a valid strike without labor dispute? Requisites of a Valid Strike or Lockout:
A: No. There should be irreconcilable differences between the 1.) Purpose – To be valid the strike/lockout must be based on a
employee and employer, and the issue should relate to a serious valid purpose.
matter regarding employment, i.e ULP/Deadlock. The existence of a
labor dispute is an essential condition before a strike or a lockout Q: What are the valid or lawful purposes of a
may be validly held. strike/lockout?
Q: What is a labor dispute? A: The labor dispute must be based only on 2 purposes:
An industrial or labor dispute includes any controversy or matter a.) Economic – By reason of a Collective Bargaining
concerning terms or conditions of employment or the association or Deadlock (CBD)
Or

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b.) ULP – By reason of an Unfair Labor Practice either by the subdivision or instrumentality thereof, are governed by law
employer (strike) or employee (lockout) and it is declared to be the policy of the Government that the
employees therein shall not strike for the purpose of securing
General Rule: No ULP = Illegal Strike or Lockout – The changes in their terms and conditions of employment. Such
strike or lockout will only be valid when the ULP where the employees, however, may belong to any labor organization
strike/lockout is based is found to have been actually which does not impose the obligation to strike or to join
committed. strikes. (Civil Service Law, Sec. 28 (c))
Exception: Good Faith Strike/Lockout - When the union or Note: This shall apply only to employees employed in
employer believed that an Unfair Labor Practice has been governmental functions and not to those employed in
committed and the circumstances warranted such belief in proprietary functions of the Government including, but not
good faith, although the ULP is subsequently found as not limited to, governmental corporations. (Civil Service Law,
committed, the strike or lockout will still be valid. Sec. 28 (c))
Even if the allegations of unfair labor practice are 3.) Procedure – To be valid, the strike or lockout must comply
subsequently found out to be untrue, the presumption of with the procedural requirements set forth by law.
legality of the strike prevails. (Malayang Samahan vs.
Ramos, February 28, 2000) i. Notice of Strike or Lockout
Note: The “Good Faith Strike/Lockout” must still comply with A strike or lockout NOTICE shall be filed with the National
the notice requirements and other mandatory requirements Conciliation and Mediation Board (NCMB).
of holding a lawful strike. A claim of good faith is not a valid
excuse to dispense with the procedural steps for a lawful Q: What are the contents of a notice of strike or lockout?
strike. With the enactment of R.A. No. 6715, compliance with
the procedural requirements for the validity of a strike/lockout A: The notice shall state, among others, the names and
is now mandatory. (Grand Boulevard Hotel vs. Genuine addresses of the employer and the union involved, the
Labor Organization, July 18, 2003) nature of the industry to which the employer belongs, the
number of union members and of the workers in the
2.) Prohibition – For a strike to be valid, there should be no law bargaining unit, the date of the intended strike, the purpose
which prohibits such employees to hold a strike. of the strike, and such other relevant data as may facilitate
the settlement of the dispute, such as a brief statement or
Q: What are the only class of employees which are enumeration of all pending labor disputes involving the same
prohibited by law to stage a strike? parties.
A: Government Employees. The terms and conditions of

employment in the Government, including any political

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Q: What is the most important content of the notice of Conciliation and Mediation Board (NCMB) at least 30 days
strike? before the intended date of the strike.
A: The most important content of the notice is the Purpose ULP Strike/Lockout: If the issues raised are unfair labor
or the basis of the strike or lockout: practices, the NOTICE shall be filed with the NCMB at least
15 days before the intended date of the strike or lockout, or
In cases of bargaining deadlocks, the notice shall, as at least.
far as practicable, further state the unresolved
issues in the bargaining negotiations and be Exception:
accompanied by the written proposals of the union, Union Busting- In cases of dismissal from employment of
the counter-proposals of the employer and the proof union officers duly elected in accordance with the union
of a request for conference to settle the differences. constitution and by-laws, which may constitute UNION
BUSTING where the existence of the union is threatened,
In cases of unfair labor practice, the notice shall, as the 15-day cooling-off period shall not apply and the union
far as practicable, state the acts complained of and may take action immediately after the strike vote is
the efforts taken to resolve the dispute amicably. conducted and the result thereof submitted to the
Department of Labor and Employment.
Reason: To determine the proper cooling-off period. The
union is required to observe cooling off period, as a matter of Q: What will happen during the Cooling Off Period?
procedure, and thecooling off period will depend upon the
declared purpose of strike. A: The cooling off period is for possible resolution of
dispute/s through mediation and conciliation.
ii. Cooling Off Period
Q: What is the Conversion Doctrine?
Q: What are the different cooling off periods?
A: This is when the notice of strike is amended, as to the
A: For bargaining deadlock - 30 days; For ULP - 15 days. ground of strike, i.e. from bargaining deadlock to Union
Busting/ ULP.
Q: When should the notice of strike or lockout be filed?
Note: This will affect the cooling off period.
A: It depends upon the purpose of the strike or lockout,
which may either be economic or ULP. iii. Notice of Strike Vote
Economic Strike/Lockout: If the issue involves bargaining A: A notice of strike vote must be sent to the NCMB 24
deadlock, the NOTICE shall be filed with the National hours prior to the meeting or referendum.

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iv. Strike Vote vi. Strike
Q: What is a Strike Vote? Q: Are there limitations to the right to strike?
A: A decision to declare a strike must be approved by a A: Yes. No strike or lockout shall be declared after
majority of the total union membership in the bargaining unit certification or submission of the dispute to compulsory or
concerned, obtained by secret ballot in a meeting called for voluntary arbitration, nor may a strike or lockout be declared
that purpose. (Art 263(f), Labor Code) during the pendency of cases involving the same grounds for
the strike or lockout. Hence, no strike or lockout shall be
v. Notice of Strike Vote Result declared after assumption of jurisdiction by the President or
the Secretary, or while the case is pending in arbitration,
A: The results of the strike (or lockout) vote should be whether compulsory or voluntary.
reported to the NCMB at least 7 days before the intended
strike or lockout, subject to the cooling off period. Q: When is the earliest time that the strike can begin?
Q: When does the seven (7) day strike ban start? A: There are 2 schools of thought on this matter:
A: The seven-day strike ban starts from the day after the i. Azucena View: Seven days after the the cooling-off period
results of the strike vote is submitted to the DOLE.
This is supported by the an NCMB Primer indicating that the
A deficiency of one-day from the mandatory seven-day strike 7-day reporting period and the cooling-off period must run
ban is a fatal defect which renders the strike illegal. Strict separately and must be counted separately. In other words,
adherence to the mandate of the law is required as the seven days are in addition to the 15 or 30 days cooling
substantial compliance with a mandatory provision will not off period. (Annotation from Azucena)
suffice. (CCBPI Postmix Workers Union vs. NLRC,
November 27, 1998) ii. Other View: The day after the end of the cooling-off period
In computing a period for the seven-day strike ban, the first The law is silent on whether or not the 7-day strike ban can
day shall be excluded and the last day included. (PNOC happen within the 15 or 30-day cooling off period. Granted
Dockyard and Engineering Corporation vs. NLRC, 291 that the two are separate requirements, a strike may begin
SCRA 231, 1998) immediately after the cooling-off period so long as the
mandatory 7-day reporting period has already been complied
with.
(Note: Atty. Javier suggests that as early as now, each of us must take our
position on the matter so as to equip us in answering a bar exam question
related to this.)

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4.) Means and Methods – To be valid, a strike has to be pursued 2.) Union Member – May be terminated only if he/she
within the bounds of law. A strike though valid may be declared knowingly participates in illegal activities.
invalid where the means employed are illegal. (Association of
Independent Unions vs. NLRC, 305 SCRA 219, 1999) 5.) Injunction
Q: What are the prohibited activities during a strike or Q: Is the remedy of Injunction available in cases of
lockout? strikes/lockouts?
A: Art. 279 (e) of the labor states that: A: General Rule: Injunction is not allowed.
“No person engaged in picketing shall commit any act of
violence, coercion or intimidation or obstruct the free ingress Exception: When the industry in issue involves national
to or egress from the employer’s premises for lawful interest, the Secretary of Labor may assume jurisdiction or
purposes, or obstruct public thoroughfares.” certify the matter to the NLRC. Once jurisdiction is assumed
or certified, it is automatic that there is a return to work/
If the picket, although peaceful and moving, effectively status quo order.
blocked the entry and exit points, then the picket constitutes
illegal obstruction, thus making the strike illegal. Q: If the employees did not follow the return-to-work
order of the Secretary of Labor and Employment, is it an
Q: What are the consequences of committing prohibited illegal act or an illegal strike?
acts during a strike or lockout?
A: Jurisprudence states that failure to follow a return-to-work
A: The commission of prohibited acts will make such strike order renders a strike as an illegal strike. Thus, even if
or lockout illegal. officers return to work, but they failed to convince their
member to return to work, the officers may still be validly
Note: In deciding whether a prohibited act is committed, dismissed.
check the entirety of the circumstances and determine if it is
an isolated case or not. If it is an isolated case, only the Note: This may still be a case-to-case basis.
person/s who committed the illegal act should be held liable.
The very nature of a return-to-work order issued in a certified
Q: What are the liabilities of the workers who case lends itself to no other construction. The certification
participated in the commission of prohibited acts? attests to the urgencyof the matter, affecting as it does an
industry indispensable to the national interest. The order is
A: 1.) Union Officer – Termination of Employment status if: issued in the exercise of the court’s compulsory power of
a.) He knowingly participates in an illegal strike; or arbitration, and therefore must be obeyed until set aside.
b.) He knowingly participates in the commission of (Manila Hotel vs. Manila Hotel, 517 SCRA 349 (2007))
illegal activities.

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6.) Agreement of the Parties
Q: Is a “no-strike clause” in a CBA valid?
A: The “No Strike – No Lockout” clause in the CBA applies

only to economic strikes. Hence, if the strike or lockout is
founded on an unfair labor practice, such strike or lockout
cannot be considered as a violation of the said clause.
A no strike, no lockout provision can only be invoked when

the strike is economic in nature. Such a provision cannot be
used to assail the legality of a strike which is grounded on
unfair labor practice. (Malayang Samahan vs. Ramos,
February 28, 2000)
Q: What is improved offer balloting?
A: On or before the 40th day of the lockout or strike, there

will be an improved offer balloting held by the board, in its
own initiative or upon request of the affected parties. It is
required that a total union membership of the EBR should
vote in favor of the improved offer, so that they can return to
work and the employer will readmit them. (Article 265, Labor
Code)
Eg. Union wants 1000. Employer’s offer is only 500. The

parties ended up in a bargaining deadlock. Hence, a strike.
In this case, NCMB will approach the employer and will ask
the employer if they would want to increase the offer. If
employer agrees to increase the offer, say make it 800,
NCMB will go to the EBR and will tell the EBR that there is
an improved offer of 800. There will then be voting through
secret ballot. If majority of the members of the EBR vote to
accept the improved offer, the strike will cease. Otherwise,
the deadlock remains and the strike continues.

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LABOR STANDARDS If the GOCC is created under the Corporation Code, then they
are governed by the Labor Code.
Meaning of Labor Standards
minimum requirements prescribed by law 3. Field personnel – those who regularly perform their duties away
violations of standards of employment are criminal in nature from the principal place of business of the employer, and whose
actual hours of work cannot be determined with reasonable
certainty (Autobus Transport System, Inc. v. Bautista, May 16,
Q: What is the coverage of Title I? 2005).
A: Book 3: Conditions of Employment 4. Members of the family of the employer who are dependent on
him for support.
Title 1 – Working Conditions and Rest Periods
5. Domestic helpers and persons rendering personal service –
Chapter 1- Hours of Work (Arts. 82-90) domestic servants and persons in the personal service of
Chapter 2 – Weekly Rest Periods (Arts. 91-93) another if they perform such services in the employer’s home
Chapter 3 – Holiday, Service Incentive Leaves and Service Charges which are usually necessary or desirable for the maintenance or
(Arts. 94-96) the enjoyment thereof, or minister to the personal comfort,
convenience or safety of the employer, as well as the member of
Q: Who are excluded from this title? the employer’s household.
A: General Rule: (Art. 82) The provisions of this Title shall apply to 6. Workers who are paid by results as determined by the Secretary
employees in all establishments and undertakings whether for profit of Labor in appropriate regulations.
or not, but not to: a. They are paid by results and not on the basis of the time
spent in working, such as those being paid straight
1. Managerial employees, including managerial staff wages by the hour, day, week, or month.
a. Managers – those that can lay down company policies; b. No OT pay because they are paid by results.
direct at least two people
b. Managerial staff – ex. supervisors, or those that can I. Hours of Work
effectively recommend policies; the clerical work that
they perform must not exceed 20% of their work time Q: How many hours of work should the employee work?
2. Government employees – governed by the Civil Service rules A: General Rule: 8 hours is the maximum, and not the minimum
and regulations, particularly this Title on employment conditions.
They cannot claim benefits under the LC. Exception: (Art. 89) An employee may be required by the employer
to perform overtime work in any of the following cases:
Exception: Government employees in GOCC with their own
charters
a. When the country is at war or when any other national or
local emergency has been declared by the National
Assembly or the Chief Executive;
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b. When it is necessary to prevent loss of life or property or Q: What is Compressed Work Week?
in case of imminent danger to public safety due to an
actual or impending emergency in the locality caused by A:
serious accidents, fire, flood, typhoon, earthquake, Under the Labor Code, the employer is allowed to compel
epidemic, or other disaster or calamity; employee to work for 6 days a week. After 6 consecutive
c. When there is urgent work to be performed on workdays, the employer is required to give his employees a rest
machines, installations, or equipment, in order to avoid day.
serious loss or damage to the employer or some other o Rest day is 24 hours after the 6 days of consecutive
cause of similar nature; work.
d. When the work is necessary to prevent loss or damage o It is required by law.
to perishable goods; and o The rest day is important because if you work on a rest
e. Where the completion or continuation of the work started day there is a premium.
before the eighth hour is necessary to prevent serious o There are instances when employer says that workweek
obstruction or prejudice to the business or operations of is 5 days. In this case, the rest day would depend on the
the employer. stipulation on the contract.
Any employee required to render overtime work under this Notwithstanding the rule, the employer and the employee can
Article shall be paid the additional compensation required in agree to compress the workweek. The employer is required to
this Chapter. get consent of majority of employees to compress workweek for
all. (ex. 51 of 100 employees)
It is a violation of employee’s duty if he does not go to work under
these circumstances, there will be a willful violation of the law. But, Under this scheme, the number of workdays is reduced but the
termination is a last recourse. number of work hours in a day is increased to more than 8
hours, but no overtime pay may be claimed. Thus, under the
In addition to the instances mentioned in Article 89, the Rules CWW the normal workweek is reduced to less than six days but
Implementing the Labor Code authorizes compulsory overtime when the total number of normal work hours per week shall remain at
it is necessary “to avail of favorable weather or environmental 48 hours.
conditions where performance or quality of work is dependent o ex. 8 hours / 5 days = 1.6 hr/day
thereon.” Employer can add 1.6 hours a day to Monday
until Friday.
If an employee renders work of more than 8 hours, he is entitled to o It can be any arrangement as long as one workday does
25% on normal day, and 30% on rest day and holiday. not exceed 12 hours, and total for the week is 48 hours.
CWW conditions are (Azucena, 2013; DOLE Advisory No. 2, series

Flexible Work Week – employer and employee can agree to the of 2004):
hours of work if they want to prevent losses o The scheme is expressly and voluntarily supported by
majority of the employees affected.
Compressed Work Week – DOLE Advisory No. 02-04 o In firms using substances, operating in conditions that
are hazardous to health, a certification is needed from
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an accredited safety organization or the firm’s safety ex. A driver, waiting for you, is engaged to wait and should
committee that work beyond eight hours is within the be compensated.
limits or levels of exposure set by DOLE’s occupational
safety and health standards. Meal Time
o The DOLE regional office is duly notified.
Rule: Meal period per workday is 60 minutes, and is NOT
In Department Advisor DA 2-2009, it added an additional element COMPENSABLE period.
before an employer could make use of CWW which is that the
employer has been suffering economic difficulty or that there is a Anything less than 60 minutes but more than 20 minutes is
national emergency. But, nothing could be seen in the DA requiring COMPENSABLE period.
such element before an employer could make use of a CWW
scheme. Less than 20 minutes mealtime is COMPENSABLE and already in
violation of the Labor Code.
Work schedule depends on the contract, if employer already
stipulated that Monday to Friday is the work schedule, then it can no Kodak Matter (Drilon: Letter to Kodak Philippines, November 27,
longer require work for six days. If you compress this five-day 1989)
schedule, this will become four days. Employees agreed to have a 30-minute lunch break in
order to go home early.
Specific Rules If the employee volunteers to work during meal period,
then you waive payment
Preliminary Activities
Time spent on preliminary activities is compensable when: Meal Period Compensable/Not compensable
The employer requires you to be there; and Full 60 minutes Non-compensable
It is for the benefit of the employer
59 minutes- 20 minutes Compensable
Waiting Time Below 20 minutes Compensable and in violation of
the LC
If you are waiting to be engaged by the employer, then the time
spent waiting is not compensable. If you are engaged to wait by the
employer, then the time spent is compensable.

_____________________________________________
Travel Time ex. if your salary is Php1000/day if you come to work on
Saturday then your salary on that day is Php1,300.
Rule: Travel time is NOT COMPENSABLE
If you do an overtime work on a regular day, then you get 25% of
Conditions for travel time to be compensable: your hourly rate. But, if you do an overtime work on your rest day,
o It is for the benefit of the company; and then you get 30% premium per hour computed from that day’s wage.
o It cuts across normal working hours. ex. Php1,300/8 = 162.5 X .30 = 48.75
Attendance in Lectures, Meetings, Trainings or Programs On holidays, the computation depends on when you rendered your
rest day.
Rule: Attendance in lectures, meeting, trainings or programs is
COMPENSABLE Night Shift Differential
It is NOT COMPENSABLE when: General Rule: Employer shall pay 10% premium on work done from
o Done outside working hours; 10PM to 6AM.
o Voluntary; and
o No productive work done Exceptions: Those listed in Article 82
Grievance Meetings Additional Exception: Retail and service establishments regularly

employing not more than 5 employees
Attendance o grievance meetings is COMPENSABLE
Rest Day II. Service Incentive Leave (SIL)
General Rule: It is the prerogative of the employer to determine when The law requires the employer to give 5 rest days to the employees
the rest day is. provided that such employees have rendered at least one year of
service.
Exception: When employee has religious grounds to request for rest
day. Note: Sick Leaves and Vacation Leaves are not required by law.
Exception to Exception: If the employer’s business will suffer People NOT ENTITLED to SIL:
because of it, they have to compromise on half-half basis. Those listed in Article 82
ex. Employee can’t attend on Wednesdays. So, the Those already enjoying the benefit
compromise will be that on some Wednesdays, employee Those enjoying vacation leaves of at least 5 days
can go to work, but not compelled to work on some rest Those employed in establishments regularly employing less
days. than 10 employees
If you work on your rest day, there is a 30% premium paid which is
counted from first hour.
_____________________________________________
Prescriptive period for money claims is 3 years counted from time of charge, then he has to integrate it into the employees’ wages. This
separation from work. The claim is based on your last pay, which is amount is based on the average amount being received for the last
carried over each year. three months.
ex. If you aren’t paid salary in 2000, you can only claim it until
2003. After which, the action prescribes. IV. Overtime (OT)
In claiming SIL, the prescriptive period will begin to run only from the Employers are required to give their employees 25% premium for
time you resigned and separated from employment. overtime work. (Art. 89, Labor Code)
SIL accrues from the moment of termination or resignation. You
have 4 years from termination or resignation to claim. General Rule: Overtime work is voluntary
Illegal dismissal prescribes in 4 years. Exception: Article 89 of the Labor Code (Emergency overtime work)
The Service Incentive Leave is convertible to cash. But, if the Any employee may be required by the employer to perform overtime
employer already gives a minimum of five days as a benefit, the work in any of the following cases:
employee is no longer entitled to the benefits of the Service Incentive
Leave. 1. When the country is at war or when any other national or
local emergency has been declared by the National
III. Service Charges Assembly or the Chief Executive;
2. When it is necessary to prevent loss of life or property or in
Coverage case of imminent danger to public safety due to an actual or
impending emergency in the locality caused by serious
Companies collecting service charges accidents, fire, flood, typhoon, earthquake, epidemic, or
Employees, regardless of their positions, designations or other disaster or calamity;
employment status and irrespective of the method by which 3. When there is urgent work to be performed on machines,
their wages are paid installations, or equipment, in order to avoid serious loss or
o Exception: Managerial employees damage to the employer or some other cause of similar
Service charge is divided among employees of which, 85% will go to nature;
employees, and 15% will go to management. 4. When the work is necessary to prevent loss or damage to
perishable goods; and
2010 Bar Question: Restaurant A has a service charge of 10%. As a 5. Where the completion or continuation of the work started
matter of practice, 85% of it goes to the employees and 15% to the before the eighth hour is necessary to prevent serious
employers. Later on, Restaurant B came up without service charge obstruction or prejudice to the business or operations of the
and effectively attracted A’s customers. A removed the service employer.
charge, and after which their employees filed a case. Can A remove
the service charge? Anti-offset Rule: Over-time work on any particular day shall not be
offset by overtime on any other day.
Answer: Yes, but A has to integrate that average amount into the If the offsetting is on the same day, then it is allowed.
salary of the employees. If the employer withdraws the service
_____________________________________________
Q: If the regular working hours is from 8AM to 5PM and you List of Holidays
worked from 9AM to 6PM, can you collect OT pay?
A: No. The employee is not entitled to overtime pay because what is Regular Holidays
counted is the 8 working hours that was rendered for the day. New Year’s Day January 1
Maundy Thursday Movable Date
V. Holiday
Good Friday Movable Date
Situation Rate Eidul Fitr Movable Date
Did not work on regular holiday 100% Araw ng Kagitingan (Bataan and April 9
Worked on regular holiday 200% Corregidor Day)
Worked on special holiday 230% Labor Day May 1
Independence Day June 12
Example: If Labor day is on Tuesday, and you are absent without
National Heroes Day Last Sunday of August
leave on the next preceding day before the holiday (Monday), then
you are not entitled holiday pay on Tuesday. Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
Q: What if there are two holidays falling on the same day? How Nationwide Special Holidays
much will be the premium rate of an employee who does not
work? All Saints Day November 1
Last Day of the Year December 31
A: The premium rate is 200%.
Note: Read D.O. 147-15: Amending the Implementing Rules and
Q: How about the employee who worked? Regulations of Book VI of the Labor Code of the Philippines, as
Amended.
A: Based on the IRR, it is 300% premium rate.
Q: What if the employee works on a holiday which also happens

to be his rest day, what is the premium rate?
A: The premium rate is 260%.

_____________________________________________
VI. Labor Standards under Special Laws further, That private plans which are existing and in force at the
A. Solo Parent Leave time of compulsory coverage shall be integrated with the plan of
the SSS in such a way where the employer's contribution to his
Q: What if one of the spouses is in abroad and the other is in private plan is more than that required of him in this Act, he shall
the Philippines but the couple is still in good terms, will the Solo pay to the SSS only the contribution required of him and he shall
Parent Leave incentive apply? continue his contribution to such private plan less his contribution
to the SSS so that the employer's total contribution to his benefit
A: As of the moment, there is no ruling on this case yet but according plan and to the SSS shall be the same as his contribution to his
to the technical working committee the spouses are not entitled to private benefit plan before the compulsory coverage:Provided,
the Solo Parent Leave. The law contemplates a case wherein a further, That any changes, adjustments, modifications,
parent has no ‘partner’ in rearing his/her child. However, the parent eliminations or improvements in the benefits to be available
to be entitled of the incentive should have the custody of the child. under the remaining private plan, which may be necessary to
adopt by reason of the reduced contributions thereto as a result
B. Maternity Leave of the integration, shall be subject to agreements between the
employers and employees concerned: Provided, further, That the
The agency who shoulders the pay is the SSS and not the Employer. private benefit plan which the employer shall continue for his
The 60 days (78 in case of caesarian birth) leave with pay does not employees shall remain under the employer's management and
necessarily mean 2 months worth of salary. The SSS places a cap control unless there is an existing agreement to the contrary:
worth P30,000. It is the discretion of the employer to add on the Provided, finally, That nothing in this Act shall be construed as a
incentive. limitation on the right of employers and employees to agree on
and adopt benefits which are over and above those Provided
C. SSS and Pag-Ibig Benefits under this Act.
Q: Who are entitled to these benefits and what are the benefits (b) Spouses who devote full time to managing the household and
given? family affairs, unless they are also engaged in other vocation or
employment which is subject to mandatory coverage, may be
A: covered by the SSS on a voluntary basis.
1. SSS (R.A. 8282) (c) Filipinos recruited by foreign-based employers for

a. Persons entitled employment abroad may be covered by the SSS on a voluntary
basis.
SEC. 9. Coverage. - (a) Coverage in the SSS shall be
compulsory upon all employees not over sixty (60) years of age SEC. 9-A. Compulsory Coverage of the Self-Employed. -
and their employers: Provided, That in the case of domestic Coverage in the SSS shall also be compulsory upon such self-
helpers, their monthly income shall not be less than One employed persons as may be determined by the Commission
thousand pesos (P1,000.00) a month: Provided, further, That under such rules and regulations as it may prescribe, including
any benefit already earned by the employees under private but not limited to the following:
benefit plans existing at the time of the approval of this Act shall
not be discontinued, reduced or otherwise impaired: Provided, 1. All self-employed professionals;
_____________________________________________
2. Partners and single proprietors of businesses; 3. A Filipino seafarer upon the signing of the standard
3. Actors and actresses, directors, scriptwriters and contract of employment between the seafarer and
news correspondents who do not fall within the the manning agency which, together with the foreign
definition of the term "employee" in Section 8 (d) of shipowner, act as employers.
this Act; 4. A self-employed person, regardless of trade,
4. Professional athletes, coaches, trainers and jockeys; business or occupation, with an income of at least
and P1,000 a month and not over 60 years old. This
5. Individual farmers and fishermen. includes, but not limited to; self-employed
professionals; business partners, single proprietors
Unless otherwise specified herein, all provisions of this Act and board directors; actors, actresses, directors,
applicable to covered employees shall also be applicable to scriptwriters and news reporters who are not under
the covered self-employed persons. an employer-employee relationship; professional
athletes, coaches, trainers and jockeys; farmers and
b. List of Benefits fisherfolks; and workers in the informal sector such
i. Sickness benefit as cigarette vendors, watch-your-car boys, among
ii. Maternity Benefit others. Provided, that a self-employed person
iii. Retirement Benefit subject to compulsory coverage by the SSS shall be
iv. Disability Benefit treated by the Fund as both employee and employer
v. Death benefit at the same time, and shall therefore be required to
pay both the employee and the corresponding
2. Pag-Ibig Benefits (IRR of R.A. 9679) employer contributions.
5. Provided finally, that actual membership in the SSS
Section 1. Mandatory Coverage and Membership of shall not be a condition precedent for mandatory
Employees. Coverage under and membership in the Fund shall coverage in the Fund, it being sufficient that the
be mandatory for the following: person ought to be covered compulsorily by the
SSS.
a. All employees who are compulsorily covered by the SSS;
Provided, that for purposes of mandatory coverage in the b. All employees who are subject to mandatory
Fund of persons who are compulsorily covered by the SSS, coverage by the GSIS, regardless of their
the term employee shall be understood the manner by which employment status.
the SSS defines it, and shall include, but not limited to:
1. A Private employee, whether permanent, temporary c. Uniformed members of the Armed Forces of the
or provisional, who is not over 60 years old. Philippines, the Bureau of Fire Protection, the
2. A household-helper earning at least P1,000 a month. Bureau of Jail Management and Penology, and the
A household-helper is any person who renders Philippine National Police.
domestic services exclusively to a household such
as driver, gardener, cook, governess, and other d. Filipinos employed by foreign-based employers.
similar occupations. Coverage under the Fund shall be mandatory for
Filipinos employed by foreign-based employers
_____________________________________________
whether deployed here or abroad, or a combination a. Spouses who devote full time to managing the household
thereof, but whose respective employers are and family affairs, unless they also engage in another
exclusively based outside of the Philippines. The vocation or employment which is subject to mandatory
employers shall not be subject to mandatory coverage.
coverage. Provided, that if the employer maintains
an office or agent in the Philippines that effectively b. Filipino employees of foreign government or international
acts as an employer of the Filipino, then such office organization, or their wholly-owned instrumentality based in
or agent shall be deemed an employer subject of the Philippines, in the absence of an administrative
mandatory coverage under R.A. 9679. agreement with the Fund.
Section 2. Mandatory Coverage of Employers. Coverage c. Employees of an employer who is granted a waiver or
under the Fund shall be mandatory for the following: suspension of coverage by the Fund under R.A. 9679.
a. Employers of employees compulsorily covered by the d. Leaders and members of religious groups;
SSS. These shall include private employers previously e. A member separated from employment, local or abroad,
granted waiver or suspension of coverage for whatever or ceased to be self-employed, but would like to continue
reason under Presidential Decree 1752, as amended. paying his or her personal contribution. Such member may
Provided, that manning agencies together with the foreign be a pensioner, investor, or any other individual with passive
ship owners shall be considered jointly and severally as the income or allowances.
employers of Filipino Seafarers. Provided finally, that a self-
employed person subject to compulsory coverage by the f. Public officials or employees who are not covered by the
SSS shall be treated by the Fund as both employee and GSIS, such as Barangay Officials, including Barangay
employer at the same time. Chairmen, Barangay Council Members, Chairmen of
Sangguniang Kabataan, and Barangay Secretaries and
b. Employers of employees subject of mandatory coverage Treasurers.
by the GSIS.
g. Such other earning groups as may be determined by the
c. The Armed Forces of the Philippines, the Bureau of Fire Board by rules and regulations.
Protection, the Bureau of Jail Management and Penology,
and the Philippine National Police. Provided, that any foreign government, international
organization or their wholly-owned instrumentality employing
Section 3. Voluntary Coverage. Persons who are at least workers in the Philippines or employing Filipinos outside of
eighteen (18) years old but not more than sixty five (65) years the Philippines, may enter into an agreement with the Fund
old and are not subject to mandatory coverage may be covered for the inclusion of their employees as members of the Fund;
by the Fund on a voluntary basis, subject to such terms and Provided, further, that the terms of such agreement shall
conditions stated in these Rules or as the Board may impose, conform with the provisions of R.A. 9679 and these Rules on
and shall include, but not limited to, the following: coverage and amount of payment of contributions and
benefits; Provided, finally, that the provisions of the said Act
shall be supplementary to any such agreement.
_____________________________________________
Section 4. Effective Date of Mandatory and Voluntary VII. Wages
Membership and Coverage.Mandatory coverage of the
employer shall take effect on the first day of his business Q: Is the food given to the employee considered as a facility or
operation, and that of the employee on the date of his or her supplement?
employment: Provided, that for:
A: It depends. If it is for the benefit of the employee, then it is a
a. Employees and employers who are not subject of mandatory facility and should be added to his salary. If it is for the benefit of the
coverage prior to R.A. 9679 and these Rules, including the employer, it is a supplement and should not be added to the salary.
uniformed members of the Armed Forces of the Philippines, the
Bureau of Fire Protection, the Bureau of Jail Management and In a hotel and restaurant setting, the hotel receptionist is allowed to
Penology, and the Philippine National Police, and their bring her packed lunch so that the employee can still accommodate
respective employers, as well as Filipinos employed by foreign the guests. The Supreme Court ruled that the food given to the
based employers, mandatory coverage shall take effect on employee is considered as a supplement and cannot be added in the
January 1, 2010, unless a different date is set by the Board by counting of the salary because the intent is to the benefit of the
resolution; employer.
b. Employers whose coverage had been previously suspended Manner of Payment

or waived for whatever reason under PD 1752, their coverage as
well as that of their employees shall take effect after the Wages must be paid in legal tender (not necessarily Philippine
expiration of their respective suspension or waiver of coverage; tender). Payment in the form of checks and goods are not allowed.
c. Voluntary members, coverage shall commence on the actual No deductions of wages

date of registration.
Labor Advisory: LA No. 11 – 2014
Provided, finally, that actual membership in the Fund shall
commence only upon remittance of the initial contribution and An employer cannot deduct wages for payment of:
not at point of registration.
1. Insurance premium.
D. Limited Portability Law 2. Payment to a third person
3. Deductions or requiring cash deposits from employees to
The relevant case under this law is the Gamogamo v. PNOC (G.R. answer for reimbursement of loss or damage on tools,
No. 141707, May 27, 2002). In this case, the Supreme Court ruled materials, or equipment supplied by the employer is allowed
that under RA 7699, totalization of service credits is only resorted to in private security agencies as a recognized and reasonable
when the retiree does not qualify for benefits in either or both of the industry practice given the nature of the service/business.
Systems (SSS and GSIS). However, for deductions of such nature to be valid ,the
following conditions must be observed:
a. The employee concerned is clearly shown to be

responsible for the loss or damage;
_____________________________________________
b. The employee is given reasonable opportunity to The concept of this principle is the unilateral withdrawal by the
show cause why deductions should not be made; employer of the benefit. If the employee agrees to the diminution, it
c. The amount of such deduction is fair and reasonable cannot fall under this principle. Once it is given, it cannot be
and shall not exceed the actual loss or damage; and withdrawn.
d. The deduction from the wages of the employee does
not exceed 20% of the employee s wages in a week. It must be mentioned, however, that the rule against the non-
diminution of benefits is not an absolute one. There are also
Deduction on the salary of the employee to answer for the damages Supreme Court decisions that have carved out exceptions to this
principle, to wit:
IRR provides that employers can make deductions subject to
conditions: first, that there is proof that the employee is liable for the a. The elimination of an existing benefit in exchange for an
damage caused and second, that the employee was given the equal or better one is not in violation of Article 100 (Asis v. v
opportunity to defend himself; third, the amount deducted must be Minister of Labor, 171 SCRA 237).
the actual amount and is reasonable.
b. The rule does not apply where the grant of the benefit is
The monthly deduction to be made should not be more than 20% of conditional (Lexal Laboratories, Inc. vs. Court of Industrial
the weekly salary. For example, the employee’s salary is 20,000Php Relations, et al., 25 SCRA 668; Asis vs. Minister of Labor, et
and he broke an antique vase worth 500,000Php; the employer can al., supra). Note that there are certain benefits that are
only deduct 20% from the employee’s weekly salary which is worth granted only under certain specified circumstances.
1,000Php (20,000 divided by 4 weeks is 5,000). Examples of these would beper diems, relocation
allowances, dislocation pay, gasoline allowances, and similar
Non-diminution of benefits supplements.
Q: What are the elements of the principle of non-diminution of c. There is also no violation of the rule against non-
benefits? diminution of benefits where the benefits had been granted
by the employer because of an erroneous application of the
A: law, and were subsequently withdrawn to correct the mistake
1
1. It must be a company practice in a long period of time. (Davao (Globe Mackay Cable, ibid).
Integrated Ports Stevedoring Services vs. Abarquez, et. al., 220
SCRA 197) Kasambahay Law (R.A. 10361 or Domestic Workers Act)
a. Long period of time is at least 3 years
b. To not be considered as a company practice, it must be Q: What is the wages stated by the law?
established that the benefit is only conditional.
2. It must be consistently and deliberately done. (Globe Mackay A:
Cable v. NLRC, 163 SCRA 71); and SEC 24. Minimum Wage. – The minimum wage of domestic
3. It must not be a product of erroneous interpretation or workers shall not be less than the following:
construction of a doubtful or difficult question of law (Globe
Mackay Cable v. NLRC, 163 SCRA 71) 1
De Guzman. “On the Dimunition of Employee Benefits” The Philippine Star. March 2,
2004. (http://www.philstar.com/business/241022/diminution-employee-benefits)
_____________________________________________
a. Two thousand five hundred pesos (P2,500.00) a
month for those employed in the National Capital
Region (NCR);
b. (b) Two thousand pesos (P2,000.00) a month for
those employed in chartered cities and first class
municipalities; and
c. (c) One thousand five hundred pesos (P1,500.00) a
month for those employed in other municipalities.
SSS Benefits vis-a-vis Household helper
The general rule is the employer is responsible to completely

shoulder the payment of the SSS of the household helper. The only
instance as to when both the employer and household helper will
share the payment is when the latter receives a salary of more than
5,000Php.
Sec. 30. Social and Other Benefits. – A domestic worker who

has rendered at least one (1) month of service shall be
covered by the Social Security System (SSS), the Philippine
Health Insurance Corporation (PhilHealth), and the Home
Development Mutual Fund or Pag-IBIG, and shall be entitled
to all the benefits in accordance with the pertinent provisions
provided by law.
Premium payments or contributions shall be shouldered by

the employer. However, if the domestic worker is receiving a
wage of Five thousand pesos (P5,000.00) and above per
month, the domestic worker shall pay the proportionate
share in the premium payments or contributions, as provided
by law.
The domestic worker shall be entitled to all other benefits

under existing laws.

_____________________________________________
TERMINATION OF EMPLOYMENT The case of Agabon v. NLRC (G.R. 158693, 17 November 2004)
explained this, thus:
Constitutional Provisions/Aspect
“Due process under the Labor Code, like Constitutional due process,
Section 3 Article XIII, Labor has two aspects: substantive, i.e., the valid and authorized causes of
employment termination under the Labor Code; and procedural, i.e.,
Section 3. The State shall afford full protection to labor, local and the manner of dismissal. Procedural due process requirements for
overseas, organized and unorganized, and promote full employment dismissal are found in the Implementing Rules of P.D. 442, as
and equality of employment opportunities for all. amended, otherwise known as the Labor Code of the Philippines in
Book VI, Rule I, Sec. 2, as amended by Department Order Nos. 9
It shall guarantee the rights of all workers to self-organization, and 10. (Department Order No. 9 took effect on 21 June 1997.
collective bargaining and negotiations, and peaceful concerted Department Order No. 10 took effect on 22 June 1997). Breaches of
activities, including the right to strike in accordance with law. They these due process requirements violate the Labor Code. Therefore,
shall be entitled to security of tenure, humane conditions of work, statutory due process should be differentiated from failure to comply
and a living wage. They shall also participate in policy and decision- with constitutional due process.
making processes affecting their rights and benefits as may be
provided by law. “Constitutional due process protects the individual from the
government and assures him of his rights in criminal, civil or
The State shall promote the principle of shared responsibility administrative proceedings; while statutory due process found in the
between workers and employers and the preferential use of voluntary Labor Code and Implementing Rules protects employees from being
modes in settling disputes, including conciliation, and shall enforce unjustly terminated without just cause after notice and hearing.”
their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and Dismissal of Employees
employers, recognizing the right of labor to its just share in the fruits
of production and the right of enterprises to reasonable returns to Department Order No. 147-15, an order amending the implementing
investments, and to expansion and growth. rules and regulations of VI of the Labor Code, as amended, provides
the following, thus:
Article III, Bill of Rights
“Section 1. Guiding Principles. The workers’ right to security of
Generally, the Constitutional rights guaranteed under Article III are tenure is guaranteed under the Philippine Constitution and other
for the protection of persons against abuses perpetrated by the laws and regulations. No employee shall be terminated from work
government. It does afford the same protection against abuses except for just or authorized causes and upon observance of due
perpetrated by private entities, natural or juridical persons. process.”
Therefore, the Labor Code, together with its Implementing Rules, From the foregoing, it is apparent that, in order to validly terminate or
were enacted to afford such protection from abuses perpetrated by dismiss an employee, there are two aspects that must be complied
those other than the government. with: (1) the existence of just or authorized causes (substantive due
process); and (2) observance of due process in effectuating the
dismissal (procedural due process)
_____________________________________________
A just or authorized cause is defined under the same Department 2. Willful Disobedience or Insubordination
Order, thus:
(a) There must be disobedience or insubordination;
“Section 4. Definition of Terms. The following terms as used in this (b) The disobedience or insubordination must be willful or
Rules, shall mean: intentional and characterized by a wrongful or perverse
attitude;
“(a)“Authorized Causes” refer to those instances enumerated under (c) The order violated must be reasonable, lawful, and
Articles 298 [Closure of Establishment and Reduction of Personnel] made known to the employee; and
and 299 [Disease as a Ground for Termination] of the Labor Code, (d) The order must pertain to the duties which he has been
as amended. These causes are brought about by the necessity and engaged to discharge.
exigencies of business, changing economic conditions and illness of
the employee. 3. Gross or Habitual Neglect of Duties
“(b)“Just Causes” refer to those instances enumerated under Article (a) There must be neglect of duty; and
297 [Termination by Employer] of the Labor Code, as amended. (b) The negligence must be both gross and habitual in
These are causes directly attributable to the fault or negligence of the character.
employee.
4. Fraud or Willful Breach of Trust
“x x x.”
(a) There must be an act, omission, or concealment;
Just Causes for Termination of Employment (b) The act, omission, or concealment involves a breach of
legal duty, trust, or confidence justly reposed;
Section 5.2 of the Department Order provides for the Just Causes for (c) It must committed against the employer or his/her
a valid termination of employment, including its respective requisites representative; and
in order be deemed a valid ground, thus: (d) It must be in connection with the employee's’ work.
1. Serious Misconduct 5. Loss of Confidence
(a) There must be misconduct; (a) There must be an act, omission, or concealment;
(b) The misconduct must be of such grave and aggravated (b) The act, omission, or concealment justifies the loss of
character; trust and confidence of the employer to the employee;
(c) It must relate to the performance of the employee’s (c) The employee concerned must be holding a position of
duties; and trust and confidence;
(d) There must be a showing that the employee becomes (d) The loss of trust and confidence should not be
unfit to continue working for the employer. simulated;
(e) It should not be used as a subterfuge for causes which
are improper, illegal, or unjustified; and
(f) It must be genuine and not a mere afterthought to justify
an earlier action taken in bad faith.
_____________________________________________
6. Commission of a Crime or Offense 2. Redundancy
(a) There must be an act or omission punishable/prohibited (a) There must be superfluous positions or services of
by law; and employees;
(b) The act or omission was committed by the employee (b) The positions or services are in excess of what is
against the person of the employer, any immediate reasonable demanded by the actual requirements of the
member of his/her family, or his/her duly authorized enterprise to operate in an economical and efficient
representative. manner;
(c) There must be good faith in abolishing redundant
7. Analogous Causes positions;
(d) There must be fair and reasonable criteria in selecting
(a) There must be an act or omission similar to those the employees to be terminated; and
specified just causes; and (e) There must be an adequate proof of redundancy such
(b) The act or omission must be voluntary and/or willful on as, but not limited to, the new staffing pattern, feasibility
the part of the employees. studies/proposal, on the viability of the newly created
positions, job description and the approval by the
In addition to the last cause, no act or omission shall be considered management of the restructuring.
as analogous cause unless expressly specified in the company rules
and regulations or policies. 3. Retrenchment or Downsizing
Authorized Causes for Termination of Employment (a) The retrenchment must be reasonable necessary and
likely to prevent business losses;
1. Installation of Labor-Saving Devices (b) The losses, if already incurred, are not merely de
minimis, but substantial, serious, actual and real, or if
(a) There must be introduction of machinery, equipment or only expected, are reasonably imminent;
other devices; (c) The expected or actual losses must be proved by
(b) The introduction must be done in good faith; sufficient and convincing evidence;
(c) The purpose for such introduction must be valid, such as (d) The retrenchment must be in good faith for the
to save on costs, enhance efficiency, and other advancement of its interest and not to defeat or
justifiable economic reasons; circumvent the employee's right to security of tenure;
(d) There is no other option available to the employer than and
the introduction of machinery, equipment or device and (e) There must be fair and reasonable criteria in
the consequent termination of employment of those ascertaining who would be dismissed and who would be
affected thereby; and retained among the employees, such as status,
(e) There must be fair and reasonable criteria in selecting efficiency, seniority, physical fitness, age, and financial
employees to be terminated. hardship for certain workers.
Note that, for the three aforementioned causes, the rule of “Last-In,
First-Out” must be complied, unless the employee concerned
_____________________________________________
volunteered to be separated or terminated from employment. The First, the employee concerned must be served an initial written
said rule simply provides that when there are two employees notice or “first written notice”. Such notice must contain the following,
occupying the same position in the company are affected by a thus:
retrenchment program, the last one employed will necessarily be the
first to be separated from employment (Maya Farms v. NLRC, G.R. (a) The specific cause or ground for termination and company
106256, 28 December 1994). policies, if any;
(b) Detailed narration of the facts and circumstances that will
4. Closure or Cessation of Operation serve as the basis for the charge against the employee.
Such narration must be written with specificity. A general
(a) There must be a decision to close or cease operation of description of the charge will not suffice; and
the enterprise by management; (c) A directive that the employee is given opportunity to submit a
(b) The decision was made in good faith; and written explanation within a reasonable period.
(c) There is no other option available to the employer except
to close or cease operations. For a period to be reasonable, it must be sufficient enough to give
the employee an opportunity to study the accusation, consult, or be
5. Disease represented by a lawyer or union officer, gather data and evidence,
and decide on the defenses against the complaint. Normally, a five-
(a) The employee must be suffering from any disease; day period to be counted from receipt of the notice is deemed
(b) The continued employment of the employee is prohibited sufficient.
by law or prejudicial to his/her health as well as to the
health of his/her co-employees; and Second, after the initial or first notice is delivered, the employee must
(c) There must be certification by a competent public health be afforded the opportunity to be heard and to defend himself/herself
authority that the disease is incurable within a period of with the assistance of a representative, if so desired. Such
six (6) months even with proper medical treatment. opportunity to be heard refers to the right of an employee to answer
the charges against him/her and to submit relevant evidence in
Other Causes for Termination of Employment support of such his/her answer, whether in a hearing, conference, or
some other fair, just, and reasonable way.
1. Use of Dangerous Drugs
2. Abandonment Formal hearings or conferences are not mandatory, except when (1)
3. Provisions of a Collective Bargaining Agreement requested by the employee concerned in writing; (2) if substantial
evidentiary disputes exist; (3) if a company rule or practice requires
Due Process of Termination of Employment it, or (4) when similar circumstances justify the same.
1. If based on a Just Cause Third, if the just cause for termination is later on found to be justified,
the employer must serve the employee a second written notice or a
To effect a valid termination based on the existence of a Just Cause, notice of termination, which notice must contain the following, thus:
the following procedural due process must be observed, thus: (1) all the circumstances involving the charges against the employee
have been considered and that (2) the grounds have been
established to justify the severance of their employment.
_____________________________________________
Receipt of notice must be either personal or, in the alternative, Separation Pay
delivered to the employee’s last known address.
Cause Amount of Additional Notes
2. If based on an Authorized Cause
Separation Pay
To effect a valid termination based on the existence of an Authorized
Installation of Labor- At least one (1) A fraction of six (6)
Cause, the following procedural due process must be observed,
Saving Devices month pay for every months is considered
thus:
year of service. one (1) year.
First, a written notice must be served to the employee concerned. Retrenchment At least one-half (½) A fraction of six (6)
The specific contents of the notice depend on the authorized cause
month pay or one (1) months is considered
forming the basis of the dismissal.
month pay for every one (1) year.
year of service,
Second, a written notice must be served to the Regional Office of the
whichever is higher.
Department of Labor and Employment having jurisdiction over the
establishment or business. Such notice must comply with a specific Closure or Cessation At least one-half (½) If the closure is due
form provided by the Department, including a specification of the of Business month pay or one (1) to serious business
ground(s) for termination. The notice may be sent at any time, as Operations month pay for every losses or financial
long as it is at least thirty (30) days before the effectivity of the year of service, reverses, there shall
termination. whichever is higher. be no separation pay.
Common Principles applicable to Substantive and Procedural A fraction of six (6)
Due Process and Causes for Termination months is considered
one (1) year.
An employee suffering from HIV or Hepatitis B, or even simply
perceived or suspected to be, cannot be validly terminated by reason Disease At least one-half (½) A fraction of six (6)
thereof. month pay or one (1) months is considered
month pay for every one (1) year.
An employee suffering from Tuberculosis shall be entitled to his/her year of service,
continued employment if it can be certified by a company-accredited whichever is higher.
health provider that he/she is medically fit to work. Such employee
must be restored to work as soon as his/her condition becomes
controllable. Note that for termination based on just causes, company policy or
the provisions of a Collective Bargaining Agreement, if any, shall
govern. Absent such, there shall be no separation pay.

_____________________________________________
UPDATES ON JURISPRUDENCE IN LABOR LAW III. Conditions of Employment
A. Job Contracting
I. Application of Labor Code 1. Labor Advisory No. 13-2015
Q: Can the Labor Code be applied over OFW’s contracts? To determine the applicable wage rates of workers in certain
establishments based on the number of workers (e.g. in NCR, retail
A: Yes. The Labor Code, its implementing rules and regulations, and service establishments employing 15 workers of less or
other laws affecting labor applies to overseas employment contracts manufacturing establishments employing less than 10 workers) the
following the rule of Lex Loci Contractus. (Sameer Overseas total number of workers should include not only the workers of the
Placement Agency Inc. v. Cabiles, G.R. No. 170139, August 5, 2014) principal or user enterprise, but also the workers of the contractors
and subcontractors deployed therein, regardless of their position,
Q: May OFW employment contract in general be terminated designation or status of employment and irrespective of the method
even without just cause? by which their wages are paid.
A: Yes. Overseas Contract Filipino Workers may be terminated even In the determination of the proper classification of the industry (e.g.
without cause as long as it is stipulated and employment is with non-agriculture or agriculture) for purposes of the applicable
principal foreign employer. minimum wage rates, the nature of work performed by the
contractor’s workers in the premises of the principal shall be
Termination or cancellation clauses such as that subject of the case controlling.
at bar are legitimate if exercised in good faith. The facts of said case
likewise involved a termination or cancellation clause that clearly 2. Presumption on labor-only contracting
provided for two ways of terminating the contract, i.e. with or without
cause. The utilization of one mode will not preclude the use of the Q: Does the law presumes Labor-Only Contracting?
other. The finding that the termination of the contract was for cause
is immaterial. When petitioner terminated the contract without cause, A: Yes. Labor law presumes labor-only contracting because the
it was required only to give a 30-day prior written notice, which it did. burden is on the contractor to prove that it has substantial capital
(Petrophil Corporation v. CA, G.R. No. 122796, December 10, 2001) and/or existence of investment in the form of tools, equipment,
machineries, work premises, and other materials which are
II. Legal Interest rate for OFWs necessary in the conduct of the business.
Q: What is the legal interest rate that should be given to an OFW B. License of Contractor
that is unlawfully terminated? What law should be followed?
Section 10 of R.A.8042 or BSP Circular No. 799 June 21, 2013? Q: Does the license issued by DOLE to contractor presume
legitimacy?
A: 12% is the rate to be applied for OFW as stated in R.A. 8042
because the circular is not applicable to cases where that law A: No. The registration with DOLE will not give the presumption of
already stated the legal interest. The BSP Circular cannot repeal a legitimacy. It will just prevent the presumption of labor-only
law; only a law can only repeal a law. contracting from arising. As labor-only contracting is presumed,
having a license will just erase such presumption.
_____________________________________________
Q: Are BPO personnel project-based employees?
C. Cash Bonds for loss or damage
A: Yes. BPO personnel are project-based employees. Therefore,
General Rule: Bonds for loss or damage is not allowed. when the US-Based client terminated its service contract, their
Exception: If there’s a policy, and the following are present: employment was legally terminated. Their positions were project-
based and as such is co-terminus with the project considering
1. Allowed by DOLE - The making of deductions from the that: (a) they were hired to carry out a specific undertaking, i.e., the
salaries is authorized by law, or regulations issued by the Alltel Project; and (b) the duration and scope of such project were
Secretary of Labor. made known to them at the time of their engagement, i.e., "co-
● i.e. Security guard agencies terminus with the project.” This caveat sufficiently apprised
2. Industry practice - The posting of cash bonds should be petitioners that their security of tenure with Sykes Asia would only
proven as a recognized practice in business, or seek for the last as long as the Alltel Project was subsisting. (Gadia et al v. Sykes
determination by the Secretary of Labor through the Asia Inc., G.R. No. 20499, January 28, 2015)
issuance of appropriate rules and regulations that the policy
the former seeks to implement is necessary or desirable in B. Probationary Employee
the conduct of business. (Bluer than Blue Joint Ventures v.
Esteban, G.R. No. 192582, April 7, 2014) General Rule: Probationary employee must be informed by the
employer of the reasonable standards for regularization at the time of
Note: this is different from training bond, wherein the person cannot the engagement.
resign for certain period. Training bond is valid if: 1) it is
proportionate with the training period, or 2) if the bond is the actual Exceptions:
expense. Only actual cost may be deducted. 1. When the job is SELF-DESCRIPTIVE in nature. (Abbott
Laboratories v. Alcaraz, G.R. No. 192571, July 23, 2013)
Q: Is training bond allowed in the BPO companies? This means that the employer cannot positively explain to
make it simple.
A: Yes, if it is only for the purpose of insuring the properties of the
company. If the bond's purpose is securing the employee’s stay, i.e. Q: What are those jobs?
if the employee resigns or leaves his employment the bond shall be 1. Maids
forfeited, then this is not allowed. 2. Cooks
3. Drivers
Q: If the employee was ignorant about the company policy, may 4. Messengers
he be punished for violating the same? 5. Lawyers
6. Artists
A: No. He must be aware of such policies. The rule of dura lex sed 7. Journalists
lex applies for laws and not for company/labor policy.
2. When the reasonable standard is BASIC KNOWLEDGE. In
IV. Kinds of Employment Carvajal v. Luzon Development Bank, it was held:
A. Project Employee

_____________________________________________
“x x x In Aberdeen Court, Inc. v. Agustin, Jr.,23 the V. Motion for Reconsideration with NLRC
rule on reasonable standards made known to the
employee prior to engagement should not be used to Q: Is the petitioner required to file a Motion for Reconsideration
exculpate a probationary employee who acts in a with the NLRC before it can file a special civil action for
manner contrary to basic knowledge and common Certiorari under Rule 65 with SC?
sense, in regard to which there is no need to spell
out a policy or standard to be met.” (Mylene Carvajal A: Yes. It is required to file a Motion for Reconsideration. Otherwise,
v. Luzon Development Bank and/or Oscar Ramirez, the Certiorari is not right. Under NLRC Rules of Procedure, the
G.R. No. 186169, August 1, 2012) petitioner must wait with the decision before it can elevate the case
to CA.
Q: Is failure to meet sales quota (which amounts to gross
inefficiency) a ground for termination for failing to meet While a government office may prohibit altogether the filing of a
reasonable standards? motion for reconsideration with respect to its decisions or orders, the
fact remains that certiorari inherently requires the filing of a motion
A: Gross inefficiency is analogous to gross neglect of duty which is a for reconsideration, which is the tangible representation of the
just cause for dismissal. However, it should be shown that such opportunity given to the office to correct itself. Regardless of the
quota is a valid productivity standard. proscription against the filing of a motion for reconsideration, the
same may be filed on the assumption that rectification of the decision
In Aliling v. Feliciano, the employer forgot to state the percentage for or order must be obtained, and before a petition for certiorari may be
the sales quota which is not basic knowledge. Hence, the instituted. (Philtranco v. Philtranco Union, G.R. No. 180962, February
employee’s dismissal on failure to meet the sales quota was held 26, 2014)
invalid. Thus:
“In fine, an employee’s failure to meet sales or work quotas falls VI. Management Prerogative
under the concept of gross inefficiency, which in turn is analogous to
gross neglect of duty that is a just cause for dismissal under Article Q: Is it legal for employers, without stipulation or prohibition
282 of the Code. However, in order for the quota imposed to be with the CBA, to outsource jobs held by union members?
considered a valid productivity standard and thereby validate a
dismissal, management’s prerogative of fixing the quota must be A: Yes. It is legal for employers to outsource jobs held by union
exercised in good faith for the advancement of its interest. x x x” members as long as it is not limited by the CBA and the works or
(Armando Aliling v. Jose Feliciano, Manuel San Mateo, and Wide services are not directly related or not integral to the main business
Wide World Express, G.R. No. 185829, April 25, 2012) or operation of the principal. (BPI Employees Union - Davao City v.
BPI, G.R. No. 174912, July 24, 2013)

_____________________________________________
VII. Picketing/Strike VIII. Jurisdiction of DOLE Secretary
Q: May a peaceful and moving picket be declared illegal Q: May the assumption of jurisdiction power be exercised even
obstruction which makes the strike illegal? without actual negotiation deadlock?
A: Yes. If the peaceful and moving picket constitute illegal A: Yes, it can be exercised. It does not need existence of a
obstruction, that in effect it blocks the entrance and exit points of the deadlock. It is enough that controversy or “dispute” exists between
company premises, then it violates the law and therefore the strike the employer and the employee that is likely to cause strike in an
itself is illegal. industry indispensable to the national interest. (Tabangao Shell
Refinery Employees Association v. Pilipinas Shell, G.R. 170007,
Even if the picket was moving, it is still illegal obstruction when the April 7, 2014)
movement was in circles, very close to the gates, with the strikers in
a hand-to-shoulder formation without a break in their ranks, thus IX. Backwages
preventing non-striking workers and vehicles from coming in and
getting out. (Phimco Industries Inc. v. Phimco Industries Labor Q: May backwages be awarded to employees who are illegally
Association (PILA), G.R. 170830, August 11, 2010) dismissed because they joined a strike? Is the answer the same
if the strike is legal?
Note: When picketing is peaceful and moving but movement is in
circles, it is illegal obstruction. A: Yes. In both instances, the employees are not entitled to
backwages. Since there is no clear proof that union members
Q: Does the participation of a union officer need to be actually participated in the commission of illegal acts during the
individually identified to justify his or her dismissal? strike, they are not deemed to have lost their employment status as a
consequence of a declaration of illegality of the strike. (Abaria et al v.
A: Yes. Each of these union officers must be individually identified NLRC, G.R. 154113, December 7, 2011)
and the extent of his participation must be certain. (Fadriquelan et al
v. Monterey Foods Corporation, G.R. 178409 and 178434, June 8, X. Dismissal from Employment
2011)
Q: Is the redundancy valid if new hires replace the dismissed
Note: In addition to the requirement of knowingly consented and redundant employees?
participated in an illegal strike, a union officer must be Individually
identified and extent of participation established A: No. In STI Technology v. Mapua, it was held that if you hire new
employees to replace the redundant employees, there is an
assumption that there is still a need for them and the redundancy
exercise is invalid. (SPI Technologies v. Victoria Mapua, G.R. No.
191154, April 7, 2014)
Note: The only exception is when the employer can clearly show that
the circumstances have changed since the time the redundant

_____________________________________________
employees have been terminated. Otherwise, the hiring of new B. Illegal dismissal
employees to replace redundant employees is invalid.
Q: In constructive dismissal, who has the burden of proof?
Q: Is change of corporate will an authorized cause for
employment termination? A: In actual dismissal of employees, it is the employer who has the
burden of proving the validity of the dismissal. In constructive
A: No, if you change the corporate name the owners of the dismissal case, it is the EMPLOYEE who has the burden of proving
corporation are still the same. the invalidity of the dismissal. Because he was forced to resign, he
should prove that his resignation is not voluntary.
Q: Can religious employers terminate unmarried pregnant
employees (which employers classified as a disgraceful or Q: May a foreigner file an illegal dismissal complaint before the
immoral conduct)? NLRC?
A: No. The office assistant cannot be terminated for disgraceful or A: Yes, the foreigner may file an illegal dismissal case before the
immoral conduct, because there is no legal impediment for her to NLRC. However if the complainant is not an employee but a
marry. It is not even immoral in this case. (Leus v. ST. Scholastica’s corporate officer, it is the regular courts and not the NLRC who has
College, G.R. No. 187226, January 28, 2015) jurisdiction over the subject matter of the case.
Q: If the foreigner employee does not have an employment

A. Termination due to disease permit, can he recover money claims?
Q: Does the twin notice rule apply when the employee is A: Foreigners working in the Philippines must first secure a permit
terminated due to disease? from DOLE. A foreigner working here in the Philippines without first
securing an alien employment permit violates the law, and therefore
A: Yes, it is required. The Labor Code and the IRR are silent on this the courts must deny his prayer for relief. (WPP Marketing
matter. However, there is no reason why the twin-notice rule should Communications, Inc. v. Galera, G.R. No. 169207, March 25, 2010)
not apply in termination due to disease under Art. 284 of the Labor
Code. (Deoferio v. Intel Technologies Philippines, G.R. No. 202996,
June 18, 2014)
Note: Even if termination due to disease is an authorized cause for

termination, the SC is impliedly saying it should be applied as a just
cause for termination because of this ruling.


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LABOR LAW REVIEW FINAL EXAM REVIEWER

1 | JD-MBA, FEU-DLSU Consortium

Lakas ng Manggagawang Makabayan v. Marcelo Enterprises

2 | JD-MBA, FEU-DLSU Consortium

Rivera v. Espiritu (2002): The right to free collective bargaining,

3 | JD-MBA, FEU-DLSU Consortium

w/in 10 Calendar w/in 10 Calendar

w/in 10 Calendar w/in 10 Calendar w/in 30 days from Agreement

4 | JD-MBA, FEU-DLSU Consortium

5 | JD-MBA, FEU-DLSU Consortium

6 | JD-MBA, FEU-DLSU Consortium

7 | JD-MBA, FEU-DLSU Consortium

Liberty Flour Mills Employees v. Liberty Flour Mills, Inc. (1989):

8 | JD-MBA, FEU-DLSU Consortium

Start Year 3 Year 5 th

RETROACTIVITY RULE: 6 MONTHS RECKONING PERIOD ARBITRAL AWARDS

9 | JD-MBA, FEU-DLSU Consortium

MERALCO v. Quisumbing (1999): where an arbitral award granted

10 | JD-MBA, FEU-DLSU Consortium

11 | JD-MBA, FEU-DLSU Consortium

12 | JD-MBA, FEU-DLSU Consortium

13 | JD-MBA, FEU-DLSU Consortium

14 | JD-MBA, FEU-DLSU Consortium

15 | JD-MBA, FEU-DLSU Consortium

A: Union security clause. It is a term which comprehends any form of

N.B. The consequences of violating the union security clause

Q: If there is a union security clause can you compel all

Q: “All employees of this company, whether new or existing, are

16 | JD-MBA, FEU-DLSU Consortium

17 | JD-MBA, FEU-DLSU Consortium

A: Government Employees. The terms and conditions of

18 | JD-MBA, FEU-DLSU Consortium

19 | JD-MBA, FEU-DLSU Consortium

Q: What is a Strike Vote? Q: Are there limitations to the right to strike?

20 | JD-MBA, FEU-DLSU Consortium

21 | JD-MBA, FEU-DLSU Consortium

22 | JD-MBA, FEU-DLSU Consortium

23 | JD-MBA, FEU-DLSU Consortium

Q: Is a “no-strike clause” in a CBA valid?

A: The “No Strike – No Lockout” clause in the CBA applies

A no strike, no lockout provision can only be invoked when

Q: What is improved offer balloting?

A: On or before the 40th day of the lockout or strike, there

Eg. Union wants 1000. Employer’s offer is only 500. The

24 | JD-MBA, FEU-DLSU Consortium

CWW conditions are (Azucena, 2013; DOLE Advisory No. 2, series

27 | JD-MBA, FEU-DLSU Consortium

Grievance Meetings Additional Exception: Retail and service establishments regularly

Rest Day II. Service Incentive Leave (SIL)

Q: What if the employee works on a holiday which also happens

A: The premium rate is 260%.

30 | JD-MBA, FEU-DLSU Consortium

1. SSS (R.A. 8282) (c) Filipinos recruited by foreign-based employers for

b. Employers whose coverage had been previously suspended Manner of Payment

c. Voluntary members, coverage shall commence on the actual No deductions of wages

a. The employee concerned is clearly shown to be

SSS Benefits vis-a-vis Household helper

The general rule is the employer is responsible to completely

Sec. 30. Social and Other Benefits. – A domestic worker who

Premium payments or contributions shall be shouldered by

The domestic worker shall be entitled to all other benefits

36 | JD-MBA, FEU-DLSU Consortium

1. Serious Misconduct 5. Loss of Confidence