Madelyn Taytayon

Labor Law Review Notes

1st meeting
History of Labor Law
The Labor Code of the Philippines stands as the law governing employment practices and labor
relations in the Philippines. It was enacted on Labor day of 1974 by President Ferdinand Marcos,
in the exercise of his then extant legislative powers. It prescribes the rules for hiring and
termination of private employees; the conditions of work including maximum work hours and
overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and
the guidelines in the organization and membership in labor unions as well as in collective
bargaining.
The Labor Code contains several provisions which are beneficial to labor. It prohibits
termination from employment of Private employees except for just or authorized causes as
prescribed in Article 282 to 284 of the Code. The right to trade union is expressly recognized, as
is the right of a union to insist on a closed shop.
Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation
of law, especially the Labor Code, will be resolved in favor of labor and against management.

Oct 14, 2021

1. What is PD 442?

Also known as the “Labor Code of the Philippines”. A decree instituting a Labor
Code, revising and consolidating Labor and Social laws to afford protection to labor,
promote employment and Human Resources development and insure industrial peace
based on social justice.

2. Reasons for Promulgation of PD 442

PD 442 reflects the policy of the State to:

 afford protection to labor

 promote full employment
 ensure equal work opportunities regardless of sex, race or creed, and
 regulate the relations between workers and employers.

PD 442 also aims to assure that the rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane conditions of work are respected and
protected.
3. Interpretation of PD 442

A prominent feature of PD 442 is its provision on construction in favor of labor.

Under its Article 4, "all doubts in the implementation and interpretation of the provisions
of this Code, including its implementing rules and regulations, shall be resolved in favor
of labor." This does not mean, of course, that doubts shall always be resolved in favor of
labor, even to the prejudice of capital. Article 4 of PD 442 has never been interpreted to
repeal Article 10 of the Civil Code (RA 386), which provides, "In case of doubt in the
interpretation or application of laws, it is presumed that the lawmaking body intended
right and justice to prevail."

4. Concept of doubt in favor of Labor. Reasons for said doubt. Is this doubt absolute? Legal
basis of doubt in favor of Labor.

All doubts in the implementation and interpretation of the provisions of the Labor
Code including its implementing rules and regulations, shall be resolved in favor of labor.

This doubt is not absolute. Protection to labor and resolution of doubts in favor of
labor cannot be pursued to deliberately commit a miscarriage of justice. The right to
obtain justice is enjoyed by all members of society, rich or poor, worker or manager,
alien or citizen.

The law also recognizes that management has rights, which are also entitled to
respect and enforcement in the interest of fair play. (St. Lukes Medical Center Employees
Association vs NLRC, GR 162053)

5. What is labor law?

Consists of statutes, regulations and jurisprudence governing the relations

between capital and labor, by providing for certain employment standards and a legal
framework for negotiating, adjusting and administering those standards and other
incidents of employment.

6. What are the guide post of Labor law?

It prescribes the rules for hiring and termination of private employees; the
conditions of work including maximum work hours and overtime; employee benefits
such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the
organization and membership in labor unions as well as in collective bargaining.
The Labor Code contains several provisions which are beneficial to labor. It
prohibits termination from employment of Private employees except for just or
 authorized causes as prescribed in Article 282 to 284 of the Code. The right to trade
union is expressly recognized, as is the right of a union to insist on a closed shop.

7. Main classification of Labor Law

1. Labor Standard – refers to the terms and conditions of employment that employers
must comply with and to which employees are entitles as a matter of legal right. It
deals with the minimum requirements prescribed by existing laws, rules relating to
wages, hours of work, cost of living allowance and other monetary and welfare
benefits.
2. Labor Relations – defines the status, rights and duties and the institutional
mechanisms that govern the individual and collective interactions of employers,
employees, or their representatives.

8. Basis of Labor law

-Constitution, Contract/Collective bargaining, Company policies and regulations,

legislation (labor code, civil code and other special laws), Implementing rules and
regulations (IRR), and other company practices

9. Who are covered of Labor Code/law?

Labor Code/Laws covered all workers, whether agricultural or non-agricultural, including

employees in a government corporation incorporated under the Corporation Code.

10. Who is an employee in the context of Labor Standard? In Recruitment & Placement? In
Labor Relation?

Ee in Labor Standard – any member of the labor force whether employed or unemployed
under Art 13 of the Labor Code.

Ee in Recruitment and Placement – Employee refers to the labor force recruited or hired
by those engaged in recruitment and placement (private recruitment).

Ee in Labor Relations - “Employee” includes any person in the employ of an employer.

The term shall not be limited to the employees of a particular employer, unless the Code
so explicitly states. It shall include any individual whose work has ceased as a result of or
in connection with any current labor dispute or because of any unfair labor practice if he
has not obtained any other substantially equivalent and regular employment.

3rd meeting

11. Employer in the context of Labor Standard and Labor Relations

 Er in Labor Relations includes any person acting in the interest of an employer, directly
or indirectly.

Er in Labor Standard - It prescribes the rules for hiring and termination of private

employees; the conditions of work including maximum work hours and overtime;

12. Tests in determining Employer-employee relationship.

In determining the existence of employer-employee relationship, the elements that are

generally considered comprises the so-called "four fold test" namely: (a) the selection and
engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and
(d) the employer’s power to control the employee with respect to the means and methods
by which the work is to be accomplished. It is the so-called "control test" that is the most
important element.

13. Characteristics of Employer-Employee Relationship

-it is imbued with public interest
-consensual and contractual
-existence is a question of fact
-existence of ee-er relationship is a question of law
-made to depend upon the agreement of the parties

14. Kind of Evidence to establish the existence of employer-employee relationship

Although no particular form of evidence is required to prove the existence of an

employer-employee relationship, and any competent and relevant evidence to prove the
relationship may be admitted, a finding that the relationship exists must nonetheless rest
on substantial evidence, or such amount of relevant evidence which a reasonable mind
might accept as adequate to justify a conclusion.

15. Who has the burden to prove the existence of er-ee relationship?

The burden to Prove Existence of Employer-Employee Relationship Lies with the

Claimant. According to the SC, it must be emphasized that the rule of thumb remains:
the onus probandi falls on the employee to establish or substantiate his claim by the
requisite quantum of evidence given that it is axiomatic that whoever claims entitlement
to the benefits provided by law should establish his or her right thereto. Where the
employee fails to hurdle the required burden of proof, the Court would not have ground
to agree with his claim.

16. What is the quantum of proof required to prove such relationship?

 Substantial Evidence is required.

Additional Notes is written.

17. Basic Rights of Workers

18. Management Rights/ Prerogatives

19. Limitations to this Right

20. How does the State harmonize the relationship between the Labor & Management?