perform activities which are usually necessary or
Labor Standards Labor Relation
Sets out the minimum
terms, conditions, and
benefits of employment
that employers must relationship between
provide or comply with
and to which workers
are entitled as a matter
of legal right
Employer
includes any person
includes any person in
acting in the interest of
an employer, directly
or indirectly
ART. 4. Construction
in Favor of Labor. All
doubts in the
implementation and
interpretation of the
provisions of this Code,
CLASSIFICATION
OF EMPLOYMENT
ART. 295. Regular and
Casual Employment.
The provisions of
written agreement to the
contrary
notwithstanding and
regardless of the oral
agreement of the
parties, an employment
shall be deemed to be
regular where the
employee has been
engaged to perform
activities which are
usually necessary or
desirable in the usual
business or trade of the
employer, except where
the employment has
been fixed for a specific
project or undertaking
the completion or
termination of which has
been determined at the
time of the engagement
of the employee or
where the work or
Regular Employment
- an employment shall be deemed to be regular
where the employee has been engaged to
desirable in the usual business or trade of the
employer. (Art. 295)
Governs the Necessary and desirable - indispensable
to the business
the employer and
employee Can the employer and employee agree as to the
type of employment? No. Under Art 295, it
states that, ‘The provisions of written agreement
to the contrary notwithstanding and regardless
Employee of the oral agreement of the parties, an
employment shall be deemed to be regular
where the employee has been engaged to
the employ of an perform activities which are usually necessary or
employer desirable in the usual business or trade of the
employer
What determines whether employment is regular
or not? If the employee is performing activities
which necessary or desirable in the usual
business or trade of the employment.
What is the nature of employment contract? it is
not an ordinary contract, it is imbued with public
interest. State is empowered, it can interfere or
determine whether the contract is valid or not, its
the law that determines. If you violate this
contract, the State can come in.
How many types of regular employment? There
is only 1 type of regular employment, which is
by nature of work in which employee is
engaged to perform. Its not the number of years.
Because the other are deemed exception.
Are piece-rate employees regular employees?
Yes, only the supervised employee.
When an employer exercises control and
supervises over piece-rate employees, they are
regular employees because they perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer
Types of piece-rate employees:
 Supervised
 Not supervised - absence of control,
therefore no EER
How will you pay your piece-rate employee?
Based on time and motion study determine by
the labor secretary. (it should be discussed in
Lab1)
Case:
Exceptions to regular employee: casual, project,
seasonal, fixed-term.
Page 1 of 24
 Project Employment
The employee is performing an activity which is
usually necessary or desirable in the usual
business or trade of the employer BUT for a
DEFINITE PERIOD.
Types:
 project is usually necessary or desirable
in the usual business or trade of the
employer
 not usually necessary or desirable n the
usual business or trade of the employer
Example of 1st type: construction
business/industry
Example of 2nd type: building of garden of a steel
manufacturing company
Things to emphasis in hiring PE (1st type)
 Details of the project/undertaking
 Duration of the project
 Scope of work
 Appraise the employee as to the nature
of the contract
 After the termination of the project,
employer has to notify DOLE under DO.
19 - within 30days from the completion
of project
 Contract must be reduced into writing - if
not reduced in writing, they may be
considered as regular employee
because they are performing activities
which necessary or desirable in the
usual business or trade of the
employment and in relation to the dole
requirement
Instance when PE becomes RE (applies to 1st
type of PE)
 When there is no written contract
 Even if reduced into writing, and
employer continuously rehire form one
project to another
A construction company has 2 kinds of
employees, in the office and in the field, are
office employees considered project
employees? No, they are regular employee
because employee is performing activities which
necessary or desirable in the usual business or
trade of the employment.
Field employees? If not reduced in writing, they
becomes casual employee, because the nature
of work is not necessary or desirable in the
usual business or trade of the employment.
Project becomes activity.
Do we need a notice of termination to the
employee once the project is finished? No
Case: UST
Is there a need for separation pay? No, it is only
given when there is illegal dismissal and re-
instatement is not possible.
Casual employment is an exception to regular
employment. It does not perform activities which
are usually necessary or desirable in the usual
business or trade of the employer
Seasonal Employment
Season - specific period of a year where there is
an associated human activity or phenomenon
What will happen to employees after the
season? Temporarily laid off
Is there an obligation to give separation pay? No
Do we have to reduced the contract in writing?
Yes, in order to protect the employer
Do we have to appraised employees when the
season start? No, employees know it
Can you terminate them, if they abandon their
work? Yes, for just cause of gross and habitual
neglect of duty.
Does a seasonal employee enjoys security of
tenure? Yes, can be terminated for just or
authorized causes
If your client is in manufacturing company
dependent on seasonal product and one
product is not in season, can you terminate
employees because there is no raw material
coming? No, because they are considered as
regular employees.
Are seasonal employees exempted from
minimum wage? No, minimum wage law
What will happen in-between season if the
seasonal employee found a regular
employment? Implied resignation.
Casual Employment
- the work of the employee is merely incidental
to the business of the employer.
Importance of 1 year - fixed by law to prevent
future abuse by employer
Is period of CE the same w/ PE, can fixed the
period for CE? No, cannot fixed the period of
activity, however, you can estimate.
Do we have to reduced employment contract
into writing? No requirement, however, there
would be a danger on the part of the employer
because employee is performing a necessary or
desirable activity (just like in PE)
Page 2 of 24
Do we need to sent a notice of termination if the
activity ceases to exist? You have to appraise
the employee from the beginning, which is put
into writing(contract) that this are the indicators
that the activity will be finished, in fact, you have
to do the turnover. And with that there is no
need to send notice of termination because
employee here are already appraised through
the contract. (however, if not put into writing, you
need to sent notice because employee was not
appraised with the parameters of the activity.
They might forget)
Who will determine that the activity ceases to
exist? Employer sets the parameter.
Can we rehire a casual employee for the same
activity? Yes, they become regular employee,
because activity becomes necessary or
desirable to the business of the employer.
Case: UST
Casual Project
Period of activity is not period of the project is
predetermined predetermined
If made into writing, no
need for NoT but if not, No need for notice of
it would be practical to termination
send NoT
Between PE and CE, who has a chance to
become RE? PE, because of the nature of their
work which is necessary and desirable to the
business of the employer.
When PE becomes RE
 There is no written contract
 If there is repeated and continuous
hiring
Can CE becomes RE? No, because the nature
of the activity to which they are engage is not
necessary or desirable to the usual trade or
business of the employer
If there is contract provided that the employee is
a casual employee but the nature of the work is
necessary or desirable to the usual trade or
business of the employer? Employee is still
regular because of the 1st par of Art 295 and the
nature of the contract of employment is imbued
with public interest, it is the State that
determines.
Would you consider an employee performing
a necessary or desirable in the usual trade or
business of the employer? Generally, yes,
however with it comes to project, seasonal,
casual or fixed-term because of the duration of
the work they perform.
Fixed-term Employment
It is not found under the law but only on
jurisprudence.
Requisites:
1) There is fixed-term employment that was
knowingly and voluntarily agreed upon
without force, duress, improper pressure. (it
is possible)
2) It satisfactorily appears that the employer
and the employee dealt with each other on
more or less equal terms with no moral
dominance exercised by the former or latter.
(employer is more powerful, employee
cannot demand and impose the terms and
conditions. That is why fixed term
employment is allowed provided that it is
voluntarily entered into and no moral
dominance with each other, more or less in
equal footing)
Is it a judicial legislation constitutional, within the
powers of SC? (it violates the separation of
powers, but do not say that in your bar exam
because you will fail)
Case: Brent School
Does it violate the security of tenure, if they
enter into a fixed term employment? (Yes,
because they are performing a necessary of
desirable in the usual trade or business of the
employer.)
Can they enter into a contract wherein the
employee perform a necessary or desirable, but
not regular employee because they agree
voluntarily? No, freedom of contract will not
prevail over social legislation, Art 295 provide
that regardless of your written or oral
agreement, it is the nature of the job that
determines whether you are regular or not.
Probationary Employment
Page 3 of 24
 ART. 296. Probationary
Employment. Limitations to terminate:
Probationary  It must be exercised in accordance with the
employment shall not specific requirements of the contract
exceed six (6) months  The dissatisfaction on the part of the
from the date the employer must be real and in good faith, not
employee started feigned so as to circumvent the contract or
working, unless it is the law
covered by an  There must be no unlawful discrimination in
apprenticeship the dismissal
agreement stipulating a  Just/authorized causes with due process
longer period. The
services of an employee Due Process of Termination
who has been engaged  Appraise the employee as to how to pass
on a probationary basis the standard
may be terminated for a  Must be given notice as a result of
just cause or when he evaluation
fails to qualify as a
regular employee in Instances when probationary employee
accordance with becomes regular employee
reasonable standards 1. Passed the evaluation
made known by the 2. Lapsed of 6mos
employer to the 3. There is no written contract
employee at the time of 4. Was not appraised by the employee
his engagement. An
employee who is Security of Tenure
allowed to work after a
probationary period
shall be considered a ART. 3. Declaration of
regular employee. Basic Policy. The State
shall afford protection to
labor, promote full
- where the employee, upon his/her employment, ensure
engagement, is made to undergo a trial period equal work
during which the employer determines his/her opportunities regardless
fitness to qualify for regular employment, based of sex, race or creed,
on reasonable standards made known to and regulate the
him/her at the time of engagement. relations between
workers and employers.
Computation: first day shall be excluded and last The State shall assure
shall be included the rights of workers to
self-organization,
Duration collective bargaining,
security of tenure, and
GR: shall not exceed 6mos form the date of the just and humane
commencement of employment conditions of work.

EXPN:
 When it is covered by an apprenticeship 1987 Constitution
agreement stipulating a longer period
 When the parties to the employment
contract agree otherwise, such as when
established by company policy or required
by the nature of the work performed by the
employee.
 When it involves an act of liberality on the
part of his employer affording him a 2 nd
chance to make good after having initially
failed to prove his worth as an employee
 When it involves the 3year probationary
period of teachers.
Page 4 of 24
 ARTICLE XIII
SOCIAL JUSTICE AND - guarantees that no worker shall be dismissed
HUMAN RIGHTS except for just or authorized causes provided by
law and after due process
LABOR
Section 3. The State - perpetual employment is not valid because of
shall afford full involuntary servitude, although it will have a
protection to labor, local security of tenure
and overseas,
organized and
unorganized,
and promote full
employment and
equality of employment Constructive Dismissal
opportunities for all.

It shall guarantee the - there is cessation of work because continued

rights of all workers to employment is rendered impossible,
self-organization, unreasonable
collective bargaining
and negotiations, and Legal consequence - reinstatement, separation
peaceful concerted pay is only if reinstatement is not possible
activities, including the
right to strike in Kinds:
accordance with law. If an act of clear
They shall be entitled to discrimination,
security of tenure, insensibility of disdain
When the employee is
humane conditions of by an employee
placed under floating
work, and a living wage. becomes so
status for more than
They shall also unbearable on the part
6mos based on Art 301
participate in policy and of the employee that it
of LC
decision-making would foreclose any
processes affecting choice except to forego
their rights and benefits continued employment
as may be provided by
law. Floating status - management prerogative,
however subject to limitations - 3mos, 6mos
The State shall promote
the principle of shared Preventive Suspension
responsibility between
workers and employers
and the preferential use - continued employment poses a serious and
of voluntary modes in imminent threat to the life or property of the
settling disputes, employer or his co-worker
including conciliation,
and shall enforce their -Should only be 30 day suspension, if extended,
mutual compliance employer is now required to reinstate the
therewith to foster employee. If the employer refuse to reinstate,
industrial peace. the employer will be liable for illegal suspension

The State shall regulate Liability if a company will suspend an employee

the relations between
workers and employers,
recognizing the right of
labor to its just share in
the fruits of production
and the right of
enterprises to
reasonable returns to
investments, and to
expansion and growth.
who is not a threat
2 instances of illegal suspension
 When the employee is placed on suspension
but the employee is not a threat to the
company
 When preventive suspension is beyond the
30day period
Instances when backwages is awarded
Page 5 of 24
 When there is no sufficient basis of charge
 When the suspension is more than 30 day
and the employee has not yet been
reinstated
 When it is an invalid exercise of
management prerogative
2 kinds of suspension
 Preventive suspension
 Suspension as a form of penalty (may go
beyond 30 day period depending on the
company policy)
- Principle of discretionary justice
(investigating committee may recommend a
lesser imposable penalty)
During the period of preventive suspension, are
you oblige to give wages to the employee? No.
Principle of Fair Day’s
Wage for a Fair Day’s Work
Since there is no work performed, the employee
will not be given backwages for the suspension.
What if the employee is not guilty of the offense
charge? Employee will be entitled to backwages
for the 30day period. During that period, the
employee is willing and able to work, and
because of the suspension, the employee is not
able to work and did not receive the wages. It is
not his fault that he was not able to work but of
the employer.
Is preventive suspension an act of disciplinary
measure? What is the nature of the 30day
preventive suspension? Not a disciplinary
measure, because the purpose is to restrain him
from destroying/damaging the property or the
company.
Termination of Employment
- an employee can be terminated form
employment provided that certain standards are
met.
A. SUBSTANTIVE
- there must be legal basis in terminating an
employee from his/her work
- basis for termination of employment must exist
and made known to the employees, absence of
which, the policy cannot be enforced or used in
termination of employment
B. PROCEDURAL
- absence of due process, the Court may
declare the dismissal valid but nominal damage
will be awarded as a form of penalty.
Criteria of due process:
1) 1st written notice to be served on the
employees should contain the specific causes or
grounds for termination against them and a
directive that the employees are given the
opportunity to submit their written explanation
with reasonable period.
a) A period of at least 5 calendar days from
receipt
b) Notice should contain a detailed
narration of facts and circumstances
c) Notice should specifically mention which
company rules, if any, are violated
and/or which among the grounds under
Art 288 is being charged
2) The employer should schedule and conduct a
hearing/conference wherein the employees will
be given the opportunity to:
a) Explain and clarify their defense to the
charge against them
b) Present evidence in support of their
defenses
c) Rebut the evidence presented against
them by the management
3) After determining that termination is justified,
the employees shall serve the employee a
written notice of termination indicating that:
a) All circumstances involving the charge
against the employees have been
considered
b) Ground have been established to justify
the severance of their employment
Absence of Procedural Due Process
- court may declare the dismissal valid but
nominal damages will be awarded as a form of
penalty
Burden of Proof
GR: one who pleads payment has the burden of
proving it
EXPN:
 When the dismissal is denied by the
employer
 Upon the party alleging it to prove or
substantiate such claims by the requisite
quantum of evidence
 If the employee claims and alleges that the
company policy has ripened into a benefit
GR: Hearing is not mandatory
EXPN:
 Written request by employee
 It is a company rule or policy
 Substantial evidentiary dispute exist
Page 6 of 24
 When similar circumstances justifying it ART. 297. Termination by Employer. An
employer may terminate an employment for
Principle of Discretionary Justice any of the following causes:

- termination as the last resort (a) Serious misconduct or willful disobedience

- policy and penalty must be reasonable and the
penalty of termination is commensurate to the
offense
- temper management prerogative to discipline
and terminate an employee
- appreciation of mitigating and aggravating
circumstances
- just and authorized causes use “MAY” thus
given discretion
Discerning Compassion Doctrine
- gives an erring employee an amount of P5000
in a form of financial assistance based on social
justice or equity
-base on just cause
Requisites:
 Was not for serious misconduct
 Did not reflect on the moral character of the
employee
by the employee of the lawful
orders of his employer or representative in
connection with his work;
(b) Gross and habitual neglect by the
employee of his duties;
(c) Fraud or willful breach by the employee of
the trust reposed in him by his
employer or duly authorized representative;
(d) Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of his
family or his duly authorized
representatives; and
(e) Other causes analogous to the foregoing.
Serious Misconduct
*Not mandated to terminate, because
termination is the measure of last resort or the
principle of discretionary justice.

JUST CAUSES VS AUTHORIZED CAUSES Elements:

Authorized  It must be serious
Just Cause  It must relate to the performance of the
Cause
employee’s duties
Proximate  It must show that the employee has become
cause of By employee By employer unfit to continue working for the employer
termination
Notice to Notices are Serious Misconduct Ordinary Misconduct
Explain (5days) sent Just cause for Not a just cause for
 Opportunity simultaneously termination termination
Notices Wrongful intent No wrongful intent
to be heard to employee
 Notice of and DOLE in May be suspension, in
termination 30days accordance with the
Penalty is termination
Not required Personally principle of
Service of discretionary justice
that it should be given to
Notices
personal employee
Nominal Scenerio:
P30,000 P50,000 If your employee killed a bystander on his way
Damages
Entitled, except home, can you terminate the the employee
Separation based on serious misconduct? Will the act of the
Not entitled in cases of
Pay employee make him unfit to work? No. Because
bankruptcy
it must relate to the performance of the
employee’s duties
JUST CAUSES
If a security guard, while cleaning his gun, it fell
and fired killing his co-employee, can you
terminate him? Yes

If an employee committed homicide, can you

terminate? Yes. You have to look at the gravity
of the offense committed.

Can you terminate a teacher in a college of law

who has a relationship with his/her student?
Page 7 of 24
 Case: Chua-Qua vs Clave (GR No.
49549, August 30, 1990)
“Private respondent utterly failed to show that
petitioner took advantage of her position to court
her student. If the two eventually fell in love,
despite the disparity in their ages and academic
levels, this only lends substance to the truism
that the heart has reasons of its own which
reason does not know. ”
Totality Infraction Rule
"the totality of infractions or number of violations
committed during the period of employment shall
be considered in determining the penalty to be
imposed on the erring employee. The offenses
committed by him should not be taken singly
and separately but in their totality. Fitness for
continued employment cannot be
compartmentalized into tight little cubicles of
aspects of character, conduct and ability
separate and independent of each other."
Willful Disobedience
Elements:
 The conduct of the employee must be wilfull
or intentional
 The order the employee violated must have
been reasonable, lawful, made known to the
employee and must pertain to the duties that
the had been engaged to discharged
Who has the burden of proof? The employer
Scenario:
You are required to do overtime 5-8, however,
you also have schedule for check-up 5-8, can
you refuse overtime? Yes. Because of the
urgency of health
Gross and Habitual Neglect of Duties
Gross Negligence Habitual Neglect
repeated failure to
Absence of care in the perform one’s duty for a
performance of one’s period of time
duties depending on the
circumstances
Can you be terminated if there is only gross
negligence and not habitual? A single act of
gross negligence resulting to damage to the
employer in huge amount can be equated to
gross and habitual neglect of duties.
Case: LBC case, GR No. 168215 (naa sa
book)
Who has the burden of proof? The employer.
The employer must prove that the failure of the
employee to return to work was without a valid
and justifiable reason and there must be an
intent for the employee to severe the EER. May
prove it through substantial evidence by sending
the 1) Notice to Return to Work and 2) Notice
to Explain and 3) Notice to Report such
termination to the nearest regional office of
DOLE.
Case: R Transport vs Ejandra (naa sa book)
Standard of evidence:
- substantial evidence
Fraud or Wilful Breach
of Trust/ Loss of
Confidence
- any act, omission or concealment which
involves a breach of legal duty, trust or
confidence justly reposed, and is injurious to
another.
*For this ground to apply, the employee must be
occupying a position of trust and confidence.
Scenario:
If the husband of your boss is committing having
an affair, you did not disclose to you boss, can
you be terminated base on this ground (breach
of trust)? no, it is not within the scope of work
If your employee, chief computer analyst, found
out that there is a breach of data privacy, he did
not disclose it you which resulted to loss of
money, can you terminate him? Yes, it is part of
his duty
You own a company, you manager is having an
affair with you wife, can you terminate him
based on loss of confidence?
Managerial Fiduciary rank-and-file
employee employee
Court requires proof of
involvement in the
mere existence of a
alleged events in
basis for believing
question, mere
that the employee
uncorroborated
has breach the trust
assertion and
of his/her employer
accusation by the
would suffice.
employer will not be
sufficient.
Is there a difference between wilful breach of
trust and ordinary breach of trust?
Case: Coca-Cola Export vs Gacayan
(naa sa book)
“Ordinary trust is not sufficient. Loss of
confidence must be based on wilful breach of
the trust reposed in the employee by the
employer. Such breach is wilful if it is done
Page 8 of 24
 ART. 298. Closure of
Establishment and
intentionally, knowingly and purposely without Reduction of
justifiable excuse as distinguished from an act Personnel. The
dine carelessly, thoughtlessly, heedlessly or employer may also
inadvertently.” terminate the
employment of any
employee due to the
Commission of a installation of labor-
Crime or Offense saving devices,
Against the Employer redundancy,
or Any Immediate retrenchment to prevent
Member of His Family losses or the closing or
or Authorized cessation of operation
Representative of the establishment or
- crime as defined under the RPC or offense as undertaking unless the
defined under a special penal law and it is closing is for the
against the person of the employer or his/her purpose of
immediate family family members or his circumventing the
authorized representative. provisions of this Title,
by serving a written
Who could be the authorized representative? notice on the workers
The manager or any person expressly and the Ministry of
authorized by the employer to be his Labor and Employment
representative, there must be proof of authority at least one (1) month
and this authority must be made known to the before the intended
employees. date thereof. In case of
termination due to the
If you committed estafa, can you be terminated installation of labor-
based on this ground? Is it a crime against saving devices or
person? It is a crime against property. redundancy, the
worker affected thereby
shall be entitled to a
Other Analogous Cases separation pay
- there must be an act or omission similar to equivalent to at least his
those specified in just causes one (1) month pay or
- an act or omission must be voluntary and/or to at least one (1)
wilful on the part of the employer month pay for every
- gross inefficiency year of service,
whichever is higher. In
case of retrenchment
Bonafide Occupational Qualification to prevent losses and
in cases of closures
“Employment in particular jobs may not be
or cessation of
limited to persons of a particular sex, religion, or
operations of
national origin unless the employer can show
establishment or
that sex, religion, or national origin is an actual
undertaking not due to
qualification for performing the job. The
serious business losses
qualification is called a bona fide occupational
or financial reverses,
qualification (BFOQ).”
the separation pay shall
be equivalent to one (1)
AUTHORIZED CAUSES month pay or at least
one-half (1/2) month
pay for every year of
service, whichever is
higher. A fraction of at
least six (6) months
shall be considered one
(1) whole year.

Page 9 of 24
What kind of notice? It must be personally so
that the employee may have time to find another
job
When are we going to pay the separation pay?
30days from separation pursuant to Labor
Advisory No. 6 series of 2020
Installation of labor-saving device
- it is a valid exercise of management
prerogative
Requirement:
 Must be done in good faith
 Concrete and substantiated
 Twin-notice must be complied
 Must pay separation pay - 1 mos pay/1mos
pay for every year service
Redundancy
- services of an employee are in excess of what
is reasonably demanded by the actual
requirements of the enterprise.
Requirement: common
 Serve written notice to the affected
employees and DOLE at least 1mos before
the intended retrenchment
 Must pay the employees a separation pay
equivalent to at least 1 mos pay/1mos pay
for every year service
 Employer must abolish the redundant
positions in good faith
 Employer must set fair and reasonable
criteria in ascertaining which positions are
redundant and may be abolished.
Proffered to substantiate redundancy
 The new staffing pattern,
 Feasibility studies/proposal on the validity of
the newly created positions
 Job description
 Approval by the management of the
restructuring
Fair and reasonable criteria - employer takes
into consideration as to who among the
employees can be terminated base on:
 Less preferred status - whom are regular or
temporary
 Efficiency
 Seniority
Reorganization - acknowledged by
jurisprudence, employer may adopt a new policy
conducive to a more economical and effective
management and the law does require that the
employer should be suffering financial losses
before he can terminate employee on the
ground of redundancy.
When you reorganize would you need
termination base on redundancy? Yes.
Reorganization may result to redundancy
Job evaluation - it can be used as a basis to
reorganize your company then use redundancy
as a basis of termination
Would you consider employees as a liability of
the company? NO. They are assets of the
company. Company will not exists without its
employees.
Retrenchment to Prevent Losses
- resorted by management during periods of
business recession, industrial depression or
seasonal fluctuations or lulls over shortage of
materials.
-company retrench in order to save the company
Kinds of Retrenchment
 When the company is already suffering
losses and retrenchment is adopted to
prevent further losses (common kind)
 When retrenchment is adopted to prevent
future losses
Common requirements:
 Proof that the retrenchment is necessary
losses or impending losses
 Service of written notices to the employees
and DOLE 1mos prior to the intended date
of retrenchment
 Payment of separation pay equivalent to
1mos pay or at least 1/2 month pay for every
year of service, whichever is higher
Standard for losses which may justify
 Losses incurred are substantial and not de
minimis
 Losses are actual or reasonably imminent
 The retrenchment is reasonably necessary
and is likely to be effective in preventing the
expected losses
 The alleged losses, if already incurred or the
expected imminent losses sought to be
forestalled, are proven by sufficient and
convincing evidence
Common ground
Redundancy Retrenchment
 They must be done in good faith
 Fair and reasonable criteria
 Service of written notice
 Payment of separation pay
Principle of Exhaustion of All Other Means
-
Page 10 of 24
How would you prove that losses is not de
minimis? Present Independently Audited
Financial Statement for 4 or 5 years
When not needed:
 Loss due financial crisis
 When retrenchment is adopted to prevent
future losses
Burden of proof: Employer
How will you prove good faith in future losses?
*feasibility studies, studies conducted for future
financial situation
Can you predict your future losses? You can
estimate.
Scenario:
You have buyer of raw materials coming from
Myanmar, to which it has coup d etat, can you
terminate because of the situation and the buyer
closed down business? Yes. You can prove the
closure of business in Myanmar by asking
documents from your buyer in Myanmar stating
that they are closing, then it must be
authenticated by Phil Consulate of Myanmar
Closure or Cessation
of Operation not due
to Serious Business
Losses
Requirement: common
 Service notice of written notice to employee
and to DOLE
 It must be done in good faith - bona fide in
character
 Payment of separation pay
Closure due to serious losses or bankruptcy
- no need separation pay
Proof: financial statements for the last 4-5 years
and a petition to dissolve your company on the
ground of bankruptcy
Closure because of the company’s expropriation
of assets
- no separation pay because closure is not
voluntarily
Disease as a Ground for Termination
ART. 299. Disease as Ground for
Termination. An employer may terminate the
services of an employee who has been found
to be suffering from any disease and whose
continued employment is prohibited by law or
is prejudicial to his health as well as to the
health of his co-employees: Provided, That he
is paid separation pay equivalent to at least
one (1) month salary or to one-half (1/2)
month salary for every year of service,
whichever is greater, a fraction of at least six
(6) months being considered as one (1) whole
year.
Requirement:
(Deoferio vs Intel Technology)
 An employer has been found to be suffering
from any disease.
 His continued employment is prohibited by
law or prejudicial to his health, as well as to
the health of his co-employees.
 A competent public health authority certifies
that the disease is of such nature or at such
a stage that it cannot be cured within a
period of six months even with proper
medical treatment. 
Burden of proof: employer
If infected with HIV? No. The employer cannot
terminate an employee solely base on actual,
perceived and suspected HIV status pursuant to
Sec 49 Art 7 of RA11166.
Actual - there is a medical record
Perceived - experiencing symptoms
Suspected - mere expeculation
Assuming your weak, can you be terminated?
No.
Can you terminate an employee who is
paralyzed due to hypertension? Yes
Retirement
Page 11 of 24
 ART. 302. Retirement. Any employee may be
retired upon reaching the retirement age
established in the collective bargaining
agreement or other applicable employment
contract.
In case of retirement, the employee shall be
entitled to receive such retirement benefits as
he may have earned under existing laws and
any collective bargaining agreement and
other agreements: Provided, however,
retirement benefits under any collective
bargaining and other agreements shall not be
less than those provided therein.
In the absence of a retirement plan or
agreement providing for retirement benefits of
employees in the establishment, an employee
upon reaching the age of sixty (60) years or
more, but not beyond sixty-five (65) years
which is hereby declared the compulsory
retirement age, who has served at least five
(5) years in the said establishment, may retire
and shall be entitled to retirement pay
equivalent to at least one-half (1/2) month
salary for every year of service, a fraction of at
least six (6) months being considered as one
whole year.
Unless the parties provide for broader
inclusions, the term one-half (1/2) month
salary shall mean fifteen (15) days plus one-
twelfth (1/12) of the 13th month pay and the
cash equivalent of not more than five (5) days
of service incentive leaves.
An underground mining employee upon
reaching the age of fifty (50) years or more,
but not beyond sixty (60) years which is
hereby declared the compulsory retirement
age for underground mine workers, who has
served at least five (5) years as underground
mine worker, may retire and shall be entitled
to all the retirement benefits provided for in
this Article.
- bilateral act of the parties, a voluntary
agreement between the employer and
employee, whereby the latter, after reaching a
certain age, agrees to severe his/her
employment with the latter.
Retirement age:
 As provided under the CBA or under the
company policy or employment contract
 Compulsory - 65 yrs age
 Voluntary - 60 yrs old, provided he rendered
5 yrs of service in the company
 Underground miners - 50 yrs old or more but
not beyond 60yrs old
 Race horse jockeys - 55 yrs old, provided he
shall pay additional premiums to the Social
Security System (SSS) as may be
prescribed
- compulsory and voluntary retirement age only
applies if there is no existing CBA
Can you extend the retirement age of an
employee under compulsory retirement age?
No.
Obligation of the employer: Give the retirement
benefits under the Retirement Pay Law
 15 days salary based on the latest salary
rate of the employee.
 Cash equivalent for not more than 5 days for
the service incentive leave
 1/12 of the 13th month pay entitled by the
employee
 Other benefits may be by the employer
EXPNS: who are exempted from coverage
 Government employees covered by the CSC
 Retail, service and agricultural
establishments or operations employing not
more than ten (10) employees or workers
- retirement law is retroactive
If a employee is already tired for 4yrs, the law
was enacted, is he entitled? No.
Can you substitute PAGIBIG Retirement
Benefit? Yes. Only the employer’s contributions
and its in-crements shall be considered for full or
partial compliance with the benefit under the
Retirement Law. If it is less than what the
employee is entitled, the employer is liable to
pay the difference.
Can the taxi drivers avail? Yes, the basis for the
benefits should be the average daily income.
Can you rehire an employee who has reach 65
yrs old? Is he entitled to benefits? Yes. Yes, as
long he is under compulsory membership. Under
SSS, you are not entitled because you will be
receiving pension. (IRR of RA 9679)
Burden of proof that the employee is entitled to
retirement benefit? For voluntary, the employee,
for compulsory, the employer because the
employee might not want to retire. If base on
company policy, the employee.
Resignation
Page 12 of 24
 ART. 300. Termination An employee who resigned 1 year after, filed an
by Employee. (a) An illegal dismissal case, will the case prosper?
employee may A blank resignation letter?
terminate without just
cause the employee- Separation pay may be awarded even if it is
employer relationship voluntary resignation:
by serving a written  If it is stipulated in the employment contract,
notice on the employer company policy, CBA
at least one (1) month in  When it is for reasons provided for under 2 nd
advance. The employer par of Art 300 of LC because it is tantamount
upon whom no such to constructive dismissal applying the
notice was served may Doctrine of Strained Relations
hold the employee liable
for damages. Consequences of Illegal Dismissal

(b) An employee may

put an end to the 1. Reinstatement
relationship without
serving any notice on Reinstatement with no Backwages
the employer for any of GR: illegally dismissed employee in entitled to
the following just reinstatement and payment of full backwages
causes: EXPN:
 Dismissal of the employee would be too
1. Serious insult by the harsh of a penalty
employer or his  Employer was on good faith in
terminating the employee
- severance of EER at the instance of employee
- Suffice it to say, an employee who voluntarily 2. Backwages
resigns from employment is not entitled to - from the time of illegal dismissal until finality of
separation pay, except when it is stipulated in decision
the employment contract or the CBA.
3. Separation Pay
Kinds of Resignation
1st ground - without Grounds for awarding
2nd ground - with cause
cause
30day notice - to give No need 30days notice  when reinstatement can no longer be
employer time to find a - due to acts of the effected in view of the passage of a long
replacement employer period of time or because of the realities of
Resignation tendered Entitled to separation the situation;
by employee pay  reinstatement is inimical to the employer's
interest;
1st type  reinstatement is no longer feasible;
30 day Notice Rule  reinstatement does not serve the best
interests of the parties involved;
 the employer is prejudiced by the workers'
had the employee observed the 30 day notice continued employment;
the employer would not have suffered for loss of  facts that make execution unjust or
income because employer will have enough time inequitable have supervened; or
to find a replacement  strained relations between the employer and
employee.
2nd type  in case of closure of establishment under
Burden of proof: employer, that it was voluntary. Article 298 of the Labor Code;
At least 2 witnesses.  in case of termination due to disease or
sickness under Article 299 of the Labor
Can the employee questioned the voluntary Code;
resignation letter? Yes  as a measure of social justice in those
instances where the employee is validly
Can the employee withdraw the resignation dismissed for causes other than serious
letter? Yes. misconduct or those reflecting on his moral
When is it effective? Once the employer accept character;
and approved
Page 13 of 24
 where the dismissed employee's position is  Where there is clear proof that the waiver
no longer available;  was wangled form an unsuspecting or
 when the dismissed employee opted not to gullible person
be reinstated, or the payment of separation  Where the terms of settlement are
benefits would be for the best interest of the unconscionable on their face
parties involved.
Prescriptive Period
4. Damages
 Actual
1 year - unfair labor practice
Double Indemnity Rule 4 years - illegal dismissal
3 years - other offenses and money claims
Req:
 Wage order become final and executory Right to Self-Organization
 Non-compliance by employer
 Notified in the notice of compliance
- employees have the right to form, join or assist
 Nominal labor organizations for the purpose of collective
 Exemplary bargaining or for their mutual aid and protection.
 Moral
Req: Employee Coverage
 Injury sustained by the claimant
 Culpable act or omission factually Art 253
established
 Wrongful act or omission by the defendant A. Workers with Absolute Right to Self-
as the proximate cause of the injury Organization
 Art 2219 of CC − Rank-and-File Employees in the private
sector
 Attorney’s Fee − Rank-and-File Employees in the public
sector
5. Attorneys Fee
B. Workers with Qualified Rights
ART. 111. Attorney's − Supervisory Employees
Fees. (a) In cases of − Security Guards
unlawful withholding of − Alien Workers
wages, the culpable − Cooperative Members
party may be assessed
attorney’s fee C. Workers Without Right to Self-Organization
equivalent to 10% of the − Managerial Employees
amount of wages − Confidential Employees
recovered. − Employees of International
Organizations
(b) It shall be unlawful − Non-Employees
for any person to − High-Level Government Employees in
demand or accept, in the Civil Service
any judicial or − Members of the AFP, PNP, BJMP, Navy
administrative and Airforce
proceedings for the
recovery of wages, Labor Organization
attorney’s fees which
exceed ten percent of
the amount of wages - any union or association of employees which
recovered. exists in whole or in part for the purpose of
collective bargaining or of dealing with
employers concerning terms and conditions of
Quitclaims employment

GR: Valid Check-off - process or device whereby the

EXPN: employer, on agreement with the union
recognized as the proper bargaining
representative, or on prior authorization from the
Page 14 of 24
employees, deducts union dues or agency fees ART. 240.
from the latter’s wages and remits them directly Requirements of
to the union. Registration. A
federation, national
Union Registration and Procedures union or industry or
trade union center or an
- independent union independent union shall
- charter local acquire legal personality
and shall be entitled to
Effect of Registration the rights and privileges
- vested with legal personality granted by law to
legitimate labor
organizations upon
issuance of the
certificate of registration
based on the following
requirements:

(a) Fifty pesos (P50.00)

registration fee;

(b) The names of its

officers, their
addresses, the principal
address of the labor
organization, the
minutes of the
organizational meetings
and the list of the
workers who
participated in such
meetings;

(c) In case the applicant

is an independent
union, the names of all
its members comprising
at least twenty percent
(20%) of all the
employees in the
bargaining unit where it
seeks to operate;

(d) If the applicant union

has been in existence
for one or more years,
copies of its annual
financial reports; and

(e) Four copies of the

constitution and by-laws
of the applicant union,
minutes of its adoption
or ratification, and the
list of the members who
participated in it.

Page 15 of 24
ART. 246. Effect of a
Petition for Cancellation
of Registration. A Registration.
petition for cancellation
of union registration
shall not suspend the
proceedings for
certification election nor
shall it prevent the filing
of a petition for
certification election.
In case of cancellation,
nothing herein shall
restrict the right of the
union to seek just and
equitable remedies in
the appropriate courts.
ART. 247. Grounds for
Cancellation of Union
Registration. The
following may constitute
grounds for cancellation
of union registration:
(a) Misrepresentation,
false statement or fraud
in connection with the
adoption or ratification
of the constitution and
by-laws or amendments
thereto, the minutes of
ratification, and the list
of members who took
part in the ratification;
(b) Misrepresentation,
false statements or
fraud in connection with
the election of officers,
minutes of the election
of officers, and the list
of voters;
(c) Voluntary dissolution
by the members.
ART. 248. Voluntary
Cancellation of
The
registration of a
legitimate labor
organization may be
cancelled by the
organization itself:
Provided, That at least
two-thirds of its general
membership votes, in a
meeting duly called for
that purpose to dissolve
the organization:
Provided, further , That
an application to cancel
registration is thereafter
submitted by the board
of the organization,
attested to by the
president thereof.
Rights and Conditions of Membership
A. Protection of their money given to the union in
form of union dues
Increase of Union Dues
Documentary Requisites
 An authorization by a written resolution of
the majority of all the members at the
general membership meeting duly called for
the purpose
 Secretary’s record of minutes of the meeting
which shall include the list of all member
present, vote cast, the purpose of the
special assessment or fees and the recipient
of such assessment or fees
 Individual written authorizations for check-off
duly signed by the employees concerned
B. Right to elect their officers
C. Extent of participation of the union members
affecting themselves in the organization.
Members shall determine by secret ballot,
after deliberation, any question of major
policy affecting the entire membership of
the organization, unless the nature of the
organization or force majeure renders
such ballot impractical, in which case, the
board of directors of the organizations
may makes the decision in behalf of the
general membership.
Page 16 of 24
D. The union members are also entitled to
protection against unfair labor practice
committed by the union itself
E. It is illegal to discriminate in regard to wages,
hours of work and other terms and conditions of
employment in order to encourage or discourage
membership in any labor organization
F. It shall be the duty of any labor organization
and its officers to inform its members on the
provisions of its constitution and by-laws,
collective bargaining agreement, the prevailing
labor relations system and all their rights and
obligations under existing labor laws.
Rights of Legitimate Labor Organizations
- duly registered with the DOLE and includes
any branch or local thereof.
 Representation
 Bargaining Agent
 Financial Statements
 Property Rights
 Personality to sue and be sued
 Tax Exemptions
 Other Activities
Foreign Assistance
Art 284
Art 285
Affiliations of Unions
- to gain more strength
Bargaining Unit
- a group of employees of a given employer,
compromised of all or less than all of the entire
body of employees, which the collective interest
of all the employees, consistent with equity to
the employer, indicates to be the best suited to
serve the reciprocal right and duties of the
parties under the collective bargaining
provisions of law
- One bargaining agent per one bargaining unit
Factors in determining the appropriate
collective bargaining unit
− The will of the employees (Globe Doctrine)
− Affinity and unity of the employees’
interest(Substantial Mutual Interests Rule)
− Prior collective bargaining history
− Similarity of employment status
Certification Election
- process of determining the sole and exclusive
bargaining agent of the employees in an appropriate
bargaining unit for purposes of collective bargaining
CBA - negotiated contract between a legitimate
labor organization and the employer concerning
wages, hours of work and all other terms and
conditions of employment in a bargaining unit.
Methods establishing Majority Status
 Voluntary Recognition
− A joint statement under oath of voluntary
recognition attesting to the fact of voluntary
recognition
− Certificate of posting of the joint statement
of voluntary recognition for 15 consecutive
days in at least 2 conspicuous place in the
establishment
− Approximate number or employees in the
bargaining unit, accompanied by the names
of those who support the voluntary
recognition
− a statement that the labor union is the only
legitimate labor organization operating
within the bargaining unit
 Certification Election
- aimed at determining the sole and exclusive
bargaining agent of all the employees in an
appropriate bargaining unit for the purpose of
collective bargaining
Consent Election - to determine the issue of the
majority representation of all the workers in the
appropriate collective bargaining unit
Run-Off Election - election between the labor unions
receiving 2 highest number of votes in a certification
or consent election with 3 or more choices, where
such a certified or consent election results in none of
the 3 or more choices receiving majority if the valid
vote cast.
Union as the Petitioner
Page 17 of 24
ART. 268. ART. 269. Petitions in
Representation Issue in Unorganized
Organized Establishments. In any
Establishments. In establishment where there
organized establishments, is no certified bargaining
when a verified petition agent, a certification
questioning the majority election shall
status of the incumbent automatically be
bargaining agent is filed conducted by the Med-
by any legitimate labor Arbiter upon the filing of a
organization including a petition by any legitimate
national union or labor organization,
federation which has including a national union
already issued a charter or federation which has
certificate to its local already issued a charter
chapter participating in the certificate to its
certification election or a local/chapter participating
local chapter which has in the certification election
been issued a charter or a local/chapter which
certificate by the national has been issued a charter
union or federation before certificate by the national
the Department of Labor union or federation. In
and Employment within cases where the petition
the sixty (60)-day period was filed by a national
before the expiration of union or federation, it shall
the collective bargaining not be required to disclose
agreement, the Med- the names of the local
Arbiter shall automatically chapter’s officers and
order an election by secret members.
ballot when the verified
petition is supported by
the written consent of at Employer as the Petitioner
least twenty-five percent
(25%) of all the
employees in the
bargaining unit to
ascertain the will of the Collective Bargaining Agreement
employees in the
appropriate bargaining
unit. To have a valid Interpretation:
election, at least a  Literal meaning of their stipulations shall
control
 When general and specific provisions are
inconsistent - the special provision shall be
paramount to and to govern the general
provision.

 Construed liberally

Duration of Agreement
 Representation Issue - 5 yrs
 Economic Issue - not later than 3 yrs after its
execution
 Reopening Period - no petition shall be
entertained and no certification election shall
be conducted by the DOLE outside the 60
day period immediately before the expiry of
5yr term of CBA

Union Security

Unfair Labor Practice

Page 18 of 24
It shall be unfair labor practice for an employer:
(1) To interfere with, restrain or coerce
employees in the exercise of their rights
guaranteed in section three;
(2) To require as a condition of employment that
a person or an employee shall not join a labor
organization or shall withdraw from one to which
he belongs;
(3) To initiate, dominate, assist in or interfere
with the formation or administration of any labor
organization or to contribute financial or other
support to it;
(4) To discriminate in regard to hire or tenure of
employment of any term or condition of
employment to encourage or discourage
membership in any labor organization: Provided,
That nothing in this Act or in any other Act or
statute of the Republic of the Philippines shall
preclude an employer from making an
agreement with a labor organization to require
as a condition of employment membership
therein, if such labor organization is the
representative of the employees as provided in
section twelve;
(5) To dismiss, discharge, or otherwise prejudice
or discriminate against an employee for having
filed charges or for having given or being about
to give testimony under this Act;
(6) To refuse to bargain collectively with the
representatives of his employees subject to the
provisions of section thirteen and fourteen.
It shall be unfair labor practice for
organization or its agents:
(1) To restrain or coerce employees in the
exercise of their rights under section three,
provided that this paragraph shall not impair the
right of a labor organization to prescribe its own
rules with respect to the acquisition or retention
of membership therein;
(2) To cause or attempt to cause an employer to
discriminate against an employee in violation of
subsection (a) (4) or to discriminate against an
employee with respect to whom membership in
such organization has been denied or
terminated on some ground other than the usual
terms and conditions under which membership
or continuation of membership is made available
to other members.
(3) To refuse to bargain collectively with the
employer, provided it is the representative of the
employees subject to the provisions of sections
thirteen and fourteen.
(4) To cause or attempt to cause an employer to
pay or deliver or agree to pay or deliver any
money or other thing of value, in the nature of an
exaction, for services which are not performed
or not to be performed.
Right to Engage in Concerted Activities
Concerted activities:
 Strike
- temporary stoppage of waok by the concerted
actions of employees as a result of an industrial
labor dispute.
Grounds for strike
 Deadlock in collective bargaining
 Unfair labor practice
 Flagrant and/or malicious refusal to
comply with the economic provisions of
the collective bargaining agreement
Requisites for a Valid Strike
1. It must be based on valid grounds
2. A notice of strike filed with DOLE
(NCMB) 30 days before the intended
date thereof in case of bargaining
deadlock or 15 in case of unfair labor
practice
3. Strike vote approved by a majority of the
total union membership in the bargaining
unit concerned obtained by secret ballot
in a meeting called for that purpose
4. Submit within 24hrs notice to NCMB of
the intended strike or lockout vote
Page 19 of 24
 5. Notice given to the DOLE of the results ART. 266. Injunction
of the voting at least 7days before the Prohibited. No
intended strike temporary or permanent
6. Observance of 7day strike ban injunction or restraining
order in any case
involving or growing out
 Picket of labor disputes shall
- right of workers to peacefully march to and fro be issued by any court
before an establishment involved in a labor or other entity, except
dispute generally accompanied by the carrying as otherwise provided in
and display of signs, placard and banners Articles 218 and 264 of
intended to inform the public about the dispute. this Code.

- for 3hrs
GR:no court, labor court or ordinary court, can
Prohibited Acts issue injunction against any parties involve in a
 Commit any violence, coercion or labor dispute because issuing an injunction will
intimidation not solve the dispute and will it affect the
 Obstruct the free ingress to or egress from economy at large.
the employer’s premises for lawful purpose
 Obstruct public thoroughfares EXPNS:
 Strikers shouted slanderous and scurrilous words 1) Injunction issued by the NLRC
against the owners of the vessels
 Strikers used unnecessary and obscene language or
epithets to prevent other laborers to go to work and Kinds:
circulated libelous statements against the employer  In the exercise of it exclusive and original
which show actual malice jurisdiction under Art 225
 Where the protesters used abusive and threatening  Injunction issued after the Secretary of
language towards the patrons of a place of business Labor issues an order placing the labor
or against co-employees
dispute under the compulsory arbitration
under Art 278
 Lockout
- temporary refusal of an employer to furnish
Distinction
work as a result of an industrial or labor dispute
Under Art 225(e), the NLRC in itself may issue
such injunctive relief while under the 2 nd
Fair’s day’s wage for fair day’s work
instance, the NLRC cannot act on its own, the
Secretary of Labor will certify and delegate to
GR: not awarded in an economic strike
NLRC to place dispute under compulsory
EXPN:
arbitration, once the NLRC received the order
 When the employees were illegally locked to
from the Secretary of Labor, NLRC will issue an
thus compel them to stage a strike
injunction against the parties
 When the employer is guilty of the ULP
 When the employer committed
Scenarios
discrimination in the rehiring of strikers
If the employees are burning company
refusing to readmit those against whom
properties, can you got to NLRC and file
there were pending criminal cases while
injunction to prevent them from destroying
admitting non-strikers who were also
properties? Yes, under Art 225(e), you may use
criminally charged in court
the original jurisdiction of the NLRC
 When workers who staged a voluntary ULP
strike offered to return to work
If there is a pending strike? The strike will stop
unconditionally but the employer refused to
and the employees are obligated to return to
reinstate them
work and the employees should received them
going back to status quo ante.
Labor Injunction
2) Assumption of jurisdiction by the Secretary of
Labor (DO No. 40-H-13 s 2013)

- may assume jurisdiction which may result to

strike or lockout in an industry indispensable to
the national interest

Industries indispensable to national interest

Page 20 of 24
 Hospital sector
 Electric power industry
 Water supply services(excluding small water
supply)
 Air traffic control
 Other industries as maybe recommended by
the national tripartite industrial peace council
Motu proprio - on its own
- may assume jurisdictions within 24hrs during
the strike and lockout and may enjoin motu
propio
- either of the parties can request, the Secretary
of Labor may assume jurisdiction. If strike, the
employer may file, if lockout, the union or motu
proprio
- reason is that it is a valid exercised of police
power, the State may come in in order to put
stop to the dispute in order to not hamper and
aggravate the economy
If you're not among the indispensable industries,
you can still convince the Secretary of Labor that
you are an indispensable industry by proving
that you have a lot of employees and by
showing that you are paying a large amount of
tax.
When the secretary of labor assumes jurisdiction
there will be stoppage of strike or lockout:
employer shall resume
the workers will
operations and readmit all
resume to work
workers under the same
and maintain the
terms and conditions
status quo ante.
prevailing before the strike
If employees will not return to work, they will be
guilty of illegal strike, the officers of the union will
be automatically terminated and the union
members may be terminated base on just cause
of wilful disobedience
3) Assumption of jurisdiction of the Office of the
President
- it exercises administrative jurisdiction over its
departments, because the Secretary of Labor is
his alter ego, subject to the powers and authority
of the Office of the President
4) Preventive Mediation by the National
Conciliation and Mediation Board
- Once the dispute has been converted into a
preventive mediation case, the notice of strike is
deemed dropped from the dockets as if no
notice of strike has been filed. Since there is
no more notice of strike to speak about, any
strike subsequently staged by the Union is
deemed not to have complied with the
requirements of a valid strike. The same rule
applies in the case of lockout by an employer
(PAL vs. SECRETARY OF LABOR AND
EMPLOYMENT)
5) Application of the “Innocent Third Party” Rule
- when there is a strike and it affects the
business of a third party company, such
company may file an injunction to RTC because
there is no EER and is incapable of pecuniary
estimation.
Compulsory Arbitration
- Office of Of the Secretary of Labor
- Office of the President
- National Labor Relation Court
 If the secretary of labor issues
certification to NLRC
Preventive Mediation
- it will be under the National Conciliation
Mediation Board, they have the power to settle
all disputes relating to labor once they assume
PROCEDURE
LABOR ARBITER
Under Art 224 (1-6); 2011 NLRC Rules of
Procedure (7-10)
Except as otherwise provided under the Code,
the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide:
1. Unfair labor practices cases;
2. Termination disputes;
3. Cases that workers may file involving
wages, rates of pay, hours of work and
other terms and conditions of
employment, if accompanied with a claim
for reinstatement;
4. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
5. Cases arising from any violation of Art.
264 of this Code, including questions
involving the legality of strikes and
lockouts;
6. Except claims for Employees
Compensation, Social Security, Medicare
and maternity benefits, all other claims,
arising from employer-employee
relations, including those of persons in
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 domestic or household service, involving
an amount exceeding P5,000 regardless
of whether accompanied with a claim for
reinstatement.
7. Money claims arising out of employer-
employee relationship or by virtue of any
law or contract, involving claims for
actual, moral, exemplary and other forms
of damages, as well as employment
8. Wage distortion disputes in unorganized
establishments not voluntarily settled by
the parties.
9. Enforcement of compromise agreements
when there is non-compliance by any of
the parties pursuant to Art 227 of the
Labor Code
10. Other cases as may be provided by law.
EXPN:
1) RA 8799 - Securities Regulation Act of 200
- intra-corporate dispute are under the regular
courts
2) Dismissal of workers employed with GOCC’s
with original charter
Created by law
- jurisdiction is under Civil Service Commission
Created under Corporation Code
- jurisdiction is under the Labor Arbiter
3) Cases within the jurisdiction of the Voluntary
Arbitrator
Jurisdiction of Voluntary Arbitrator:
 Original and exclusive jurisdiction
 Permissive - regardless of what kind of
dispute provided that both parties agreed
4) Claims for compensable illness
- SSS will have exclusive original jurisdiction
subject to appeal to the Employees’
Compensation Commission
5) Jurisdiction of Cooperative Development
Authority
Scenario: illegally dismissed cashier of the
cooperative, where will you file the case?
- CDA, if it involve intra-cooperative dispute
(involve officers of the coop, no EER)
- labor arbiter, if it involves employees of coop
because of EER
6) Application of Diplomatic Immunity
- Extraterritoriality Doctrine, foreign states or
representatives are outside the jurisdiction of the
host country
- immune from suit, no law will apply, because
they are deemed to be extension to the
sovereign state
7) Quasi-delict or Tort committed by the
employee
- filed within the regular courts
Principle of Immutability of Judgement
A final judgement may no longer be altered,
amended or modified even if the alteration,
amendment or modification is meant to correct
what is perceived to be an erroneous conclusion
of fact or law and regardless of what court, be it
the highest Court of the land, renders it.
GR: If there is the decision of the LA it shall be
executed unless there is appeal
EXPN: order of reinstatement
JURISDICTION
LABOR ARBITER
RULE VI of the 2011 NLRC RULES OF
PROCEDURE
SECTION 2. GROUNDS. – The appeal may
be entertained only on any of the following
grounds:
(a) If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Regional Director;
(b) If the decision, award or order was
secured through fraud or coercion, including
graft and corruption;
(c) If made purely on questions of law; and/or,
(d) If serious errors in the findings of facts are
raised which, if not corrected, would cause
grave or irreparable damage or injury to the
appellant.
When: 10 calendar days from the receipt.
Excluding the 1st day and include the last day,
and if the last falls on a weekend or a holiday
then the deadline will be on the following
working day.
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 SECTION 3. WHERE
FILED. – The appeal
shall be filed with the
Regional Arbitration
Branch or Regional
Office where the case
was heard and decided.
Format: Verified Memorandum of Appeal which
shall state the grounds relied upon and the
arguments in support thereof, the relief prayed
for, and with a statement of the date the
appellant received the appealed decision, award
or order
- the client will verify and the verification will be
notarized by the lawyer
SECTION 6. BOND. – In case the decision of
the Labor Arbiter or the Regional Director
involves a monetary award, an appeal by the
employer may be perfected only upon the
posting of a bond, which shall either be in the
form of cash deposit or surety bond in an
amount equivalent to the monetary award,
exclusive of damages and attorney’s fees. In
case of surety bond, the same shall be issued
by a reputable bonding company duly
accredited by the Commission.
xxx
No motion to reduce bond shall be
entertained except on meritorious grounds,
and only upon the posting of a bond in a
reasonable amount in relation to the
monetary award. The mere filing of a motion
to reduce bond without complying with the
requisites in the preceding paragraphs shall
not stop the running of the period to perfect
an appeal.
Is there an instance when you don’t have to post
bond? In case where company is put under
insolvency proceeding.
NLRC
 Appellate jurisdiction
 Decision of LA
 Decision of Regional Director in simple
money claims (5 days from receipt)
 Original jurisdiction
 Injunction in ordinary labor dispute
 Certified cases for compulsory
arbitration
 Extraordinary Remedies (sec1 rule 12) -
refers to an appeal from the decision of
the LA where the ordinary mode of
appeal is not available
REGIONAL DIRECTOR
 Visitorial and Enforcement Power
 Simple Money Claims
 Violation of Apprenticeship Agreement
 Petition to cancel Union Certificate of
registration
 Cancellation of Certificate of Registration of
Legitimate Job Contractor (Section 23 of
D.O. 174)
 Cancellation of Alien Employment Permit
(Section 13, D.O. No. 221)
SECRETARY OF LABOR
 Original Jurisdiction (assumption of
jurisdiction) - may assume jurisdiction which
may result to strike or lockout in an industry
indispensable to the national interest
 Appellate Jurisdiction (10days)
 Appeal from the decision of the Regional
director, except simple money claims
 Violation of Apprenticeship Agreement
(5days)
BUREAU OF LABOR RELATION
 Inter-union and intra-union disputes
 Petition for certification election
- appeal the decision of blr to secretary of
labor within 10 days
 Registration of CBA under Art 237
VOLUNTARY ARBITRATOR
 Original Jurisdiction
 Unresolved grievances arising from the
implementation or interpretation of CBA
 Unresolved grievances arising from the
interpretation or enforcement of
company personal policies
 Overseas Filipino Worker with the
implementation of CBA under the
Migrant Workers Act
- file a MR within 10 calendar days from receipt,
if denied appeal its decision to CA under Rule
43 of RC within 15 calendar
NATIONAL CONCILIATION MEDIATION BOARD
- jurisdiction over strike but you cannot appeal it
because it is not a quasi-judicial body, it will just
refer the dispute to VA and from there you will
appeal.
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- if your going to appeal to CA used the Rule of
Court, 15days for MR then if you go to SC under
Rule 42, 15days

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