LABOR LAW REVIEW

Course framework for Labor Law Review

Dean Porfirio DG. Panganiban, Jr.
Labor Law Department, AUSL

Suggested References:

DUKA, Cecilio D., LABOR LAWS AND SOCIAL LEGISLATION, A Barrister’s

Companion
CHAN, Joselito G., Labor Code Annotated Vol. I Labor Standards and
Welfare AND Vol. II Labor Relations and Termination of Employment
BACUNGAN, Froilan, LABOR AND SOCIAL LEGISLATION, An Updated
Systematic Presentation
AZUCENA, Cesar Alverio, Jr, THE LABOR CODE WITH COMMENTS AND
CASES VOL. I AND VOL. II-A Labor Relations and Employment Termination
ABAD and ABAD. Compendium on Labor Law

I. Fundamental Principles and Policies

A. Constitutional provisions related to Labor

1. Article II. Secs. 2, 9, 10, 11, 13, 14, 18, and 20

2. Article. III, Secs. 1, 4, 7, 8, 10, 16, and 18(2).
3. Article. IX B, Sec. 2B
4. Article. XII, Sec. 12
5. Article XIII, Secs. 1, 2, 3, 13, and 14.
a. Cardinal Rights of Labor

B. Civil Code provisions related to Labor

1. Article 17
2. Article 19
3. Article 1700-1712
4. Article 1713-1731

C. Significant Labor Law Provisions

1. Article 3
2. Article 4
3. Article 172 (166)
4. Article 218 (211)
5. Article 219 (212)
6. Article 267 (255)
7. Article 292 (277)

D. Social Justice

1. Concept
2. Governing principle: Law or Contract
3. Calalang vs.Williams
II. Recruitment and Placement
• REPUBLIC ACT N0. 10022 in relation to and amending RA 8042
• 2002 POEA Rules on Overseas Employment of OFW’s
• 2003 POEA Rules on Overseas Employment of Seafarer’s
• Omnibus IRR of RA 8042 as amended by RA 10022
• Rules and Regulations on the Employment of Seafarer’s ONBOARD
Philippine Registered Ships Engaged in International Voyage –
DEPARTMENT ORDER No. 130- Series of 2013.
• 2016 REVISED POEA RULES AND REGULATIONS GOVERNING
THE RECRUITMENT AND EMPLOYMENT OF SEAFARER’S.
• 2016 REVISED POEA RULES AND REGULATIONS GOVERNING
RECRUITMENT AND EMPLOYMENT OF LANDBASED OVERSEAS
FILIPINO WORKERS.
• REPUBLIC ACT No. 10801. OVERSEAS WORKERS WELFARE ACT
• OWWA RESOLUTION No. 015 SERIES of 2016. IRR 0f RA No. 10801

A. Recruitment of local and migrant workers

1. Illegal recruitment (Sec. 5, R.A. No. 10022)

a) License vs. authority

b) Essential elements of illegal recruitment
c) Mala in se vs. Malum Prohibitum
d) Simple illegal recruitment
e) Illegal recruitment in large scale
f) Illegal recruitment as economic sabotage
g) Illegal recruitment vs. estafa
h) Liabilities
(i) Local recruitment agency
(ii) Foreign employer

(a) Theory of imputed knowledge

(iii) Solidary liability

h) Pre-termination of contract of migrant worker

i ) One Country Approach Principle

2. Direct hiring

B. Regulation and enforcement

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

2. Regulatory and visitorial powers of the DOLE secretary
3. Remittance of foreign exchange earnings
4. Prohibited activities

C. EXECUTIVE ORDER NO. 797 REORGANIZING THE MINISTRY OF LABOR

AND EMPLOYMENT, CREATING THE PHILIPPINE OVERSEAS
EMPLOYMENT ADMINISTRATION, AND FOR OTHER PURPOSES ACT of
1982

D. Recruitment under Art. 38 and RA No. 10022

E. Penalties

F. Money Claims Under Ra No. 10022

G. Doctrine of Imputed Knowledge

III. Labor Standards
A. Hours of work

1. Coverage/Exclusions (Art. 82, Labor Code)

2. Normal hours of work
a) Compressed work week
3. Meal break
4. Waiting time
5. Overtime work, overtime pay
6. Night work (R.A. No. 10151), Night shift differential
7. Part-time work
8. Contract for piece work (see Civil Code)

B. Wages

1. Wage vs. Salary

2. Minimum wage defined, Minimum wage setting
3. Minimum wage of workers paid by results
a) Workers paid by results
b) Apprentices
c) Learners
d) Persons with disability
4. Commissions
a) Commission based employees
1. Concept
2. Purely Commission based employee
3. Partially Paid in Commission
4. Benefits
5. Supplements vs. Facilities,
a. Kinds
b. Illustration
c. Inclusive of wages vs. add on benefit
6. Recognized Deductions from wages
7. Non-diminution of benefits
8. Wage Distortion/Rectification
9. Divisor to determine daily rate
10. Minimum Wage

C. Rest Periods

1. Weekly rest day

2. Emergency rest day work
3. Exceptions

D. Holiday pay/Premium pay

1. Coverage, exclusions
2. Teachers, piece workers, takay, seasonal workers, seafarers
3. Security Guards

E. Leaves

1. Service Incentive Leave

2. Maternity Leave
3. Paternity Leave
4. Parental Leave (R.A. No. 8972)
5. Battered Woman Leave. Leave for Victims of Violence against Women
and Children (R.A. No. 9262)
6. Special leave benefit for women.
 7. Gynecological Leave. R.A. No. 9710 - The Magna Carta of Women.

F. Service Charge

Republic Act No. 11360, otherwise known as “AN ACT PROVIODING THAT
SERVICE CHARGES COLLECTED BY HOTELS RESTAURANTS AND OTHE
SIMILAR ESTABLISHMENTS BE DISTRIBUTED IN FULL TO ALL COVERED
EMPLOYEES AMNEDING FOR THE PURPOSE PRESIDENTIAL DECREE NO.
442 OTHERW8ISE KNOWN AS THE “LABOR CODE OF THE PHILIPPINES”
Republic Act No. 11360

DOLE DO No. 206-19 Implementing Rules and Regulations of Republic Act

No. 11360

G. Presidential Decree No. 851 - Thirteenth Month Pay Law and IRR, Exceptions.

Republic Act No. 10653, otherwise known as “AN ACT ADJUSTING

THE 13th MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED
FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF
INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION
32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE
OF 1997, AS AMENDED”. in relation with Bureau of Internal Revenue
(BIR) issued Revenue Regulations (RR) 3-2015

H. 13th Month pay, New Tax Obligation Rate under TRAIN Law for 2018 Onwards
(PHP90,000.00)

H. Separation Pay

I. Retirement Pay

1. Eligibility
2. Amount
3. Retirement benefits of workers paid by results
4. Retirement benefits of part-time workers
5. Taxability

J. Women Workers

1. Provisions against discrimination

2. Stipulation against marriage
3. Prohibited acts
4. Anti-Sexual Harassment Act (R.A. No. 7877)

K. Employment of Minors (Labor Code and R.A. No. 7678, R.A. No. 9231)

L. Househelpers (Labor Code as amended by R.A. No. 7655, An Act Increasing the
Minimum Wage of Househelpers; see also – Household Service under the Civil
Code). Republic Act No. 10361 is an Act Instituting Policies for the Protection and
Welfare of Domestic Workers, otherwise known as 'Domestic Workers Act' or
'Batas Kasambahay.'

M. Employment of Homeworkers

N. Apprentices and Learners

O. Persons with disability (R.A. No. 7277, as amended by R.A. No. 9442)
a. Definition
b. Rights of persons with disability
c. Prohibition on discrimination against persons with disability
d. Incentives for employers
IV. Termination of Employment
A. Employer-employee relationship

1. Four-fold test
a. Important Test
b. Other test used to determine relationship

2. Kinds of employment
a. Probationary
b. Regular
c. Project employment
d. Contractual
e. Seasonal
f. Casual
g. Fixed-term

3. Independent Contracting

a. Articles 106 to 109 of the Labor Code

b. Job Contracting vs. Labor Only Contracting
c. Department Order No. 18-A
d. Department Circular No. 01-12
e. Department Order No. 174, Series Of 2017: Rules Implementing
Articles 106 To 109 of The Labor Code, As Amended
f. Effects and Legal Ramifications 9of of Labor-Only Contracting
g. Trilateral relationship in job contracting

B. Dismissal/Severance from employment

1. Just Causes
2. Authorized Causes
3. Due Process
a. Procedural Requirement
b. Substantial/Substantive Requirement
c. Administrative Due Process
d. Twin-notice Requirement/Rule
e. Hearing; meaning of opportunity to be heard
f. When notices may be dispensed
g. Primary Rights in an Administrative Proceeding
h. Absent Without Leave – Procedure undertaken
i. Abandonment – Procedure undertaken.

C. Reliefs for Illegal Dismissal

1. Reinstatement
a. Pending appeal (Art. 223, Labor Code)
b. Separation pay in lieu of reinstatement
2. Backwages
a. Computation
b. Limited backwages

D. Preventive Suspension

a. DEFINITION - It is a disciplinary action, but not for purposes

of penalizing the employee, it is resorted to by an employer by
which an employee is prevented to go to work with an end
resolution that the erring employee may be reformed,
 rehabilitated and to improve his work ethics, within the
workplace.
b. Suspension as Administrative Penalty;
c. Preventive Suspension Pending Investigation;
d. Preventive Suspension Tantamount to Constructive Dismissal
i. Remedies of the Employee
ii. Legal Ramification and Consequences
iii. Employee placed under Preventive Suspension
entitled to any monetary remedy.

E. Constructive Dismissal

a. DEFINITION : Constructive dismissal has often been defined

as a "dismissal in disguise" or "an act amounting to dismissal
but made to appear as if it were not." It exists where there is
cessation of work because continued employment is rendered
impossible, unreasonable or unlikely, as an offer involving a
demotion in rank and a diminution in pay. In some cases,
while no demotion in rank or diminution in pay may be
attendant, constructive dismissal may still exist when
continued employment has become so unbearable because of
acts of clear discrimination, insensibility or disdain by the
employer, that the employee has no choice but to
resign. Under these two definitions, what is essentially
kicking is the voluntariness in the employee's separation from
employment.
b. ERNESTO GALANG AND MA. OLGA JASMIN CHAN, vs. BOIE
TAKEDA CHEMICALS, INC. AND/OR KAZUHIKO NOMURA,,
G.R. No. 183934, July 20, 2016.
c. DIWA ASIA PUBLISHING, INC. AND SATURNINO BELEN,
PETITIONERS, V. MARY GRACE U. DE LEON RESPONDENT.
G.R. No. 203587, August 13, 2018.
d. JONALD O. TORREDA, PETITIONER, VS. INVESTMENT AND
CAPITAL CORPORATION OF THE PHILIPPINES,
RESPONDENT. G.R. No. 229881, September 05, 2018.

F. Dismissal from employment

1. Just Causes
2. Authorized Causes
3. Other Causes
4. Due Process
a. Procedural
b. Substantial
c. Administrative Due Process
d. Twin-notice Requirement/Rule
e. Hearing; meaning of opportunity to be heard
f. When notices may be dispensed
g. Primary Rights in an Administrative Proceeding
h. Absent Without Leave – Procedure undertaken
i. Abandonment – Procedure undertaken.

G. Labor Advisory No.1, Series of 2020, of the Department of Labor and

Employment (DOLE)
H. Labor Advisory No.9, Series of 2020, of the Department of Labor and
Employment (DOLE)
I. Labor Advisory No.17, Series of 2020, of the Department of Labor and
Employment (DOLE)
J. DTI nad DOLE Interim Guidelines on Workplace Prevention nad Control of
COVID-19.
K. Work From Home or alternative work schemes or arrangements. Necessary
Requirments.

V. Management Prerogative
A. Definition
B. Constitutional Basis of Management Prerogative
C. Discipline
D. Contractual Prerogative vs. Management Prerogative
E. Transfer of employees
F. Required Company Seminars
G. Seminars for Employee Advancement
H. Productivity standard
I. Grant of bonus
J. Change of working hours
K. Compressed Work Week
L. Bona fide occupational qualifications
M. Designation of work Day
N. Calendar day vs. Work day
O. Rules on Marriage between employees of competitor-employers
P. Post-employment ban/restrictions

VI. Social Welfare Legislation (P.D. 626)

A. SSS LAW (R.A. NO. 8282)
1. Coverage
2. Exclusions from coverage
3. Benefits
4. Beneficiaries'
B. GSIS LAW (R.A. NO. 8291)
1. Coverage
2. Exclusions from coverage
3. Benefits
4. Beneficiaries
C. Limited Portability Law (R.A. No. 7699)
D. Employee’s compensation – coverage and when compensable
E. R.A. No. 6727 – WAGE RATIONALIZATION ACT
F. R.A. No. 7305 – THE MAGNA CARTA OF PUBLIC HEALTH WORKERS
G. R.A. No. 7641 – RETIREMENT PAY LAW
H. R.A. No. 7658 – PROHIBITING THE EMPLOYMENT OF CHILDREN BELOW
FIFTEEN (15) YEARS OF AGE IN PUBLIC AND PRIVATE UNDERTAKINGS
I. R.A. No. 8042 – MIGRANT WORKERS ACT AS AMENDED BY R.A. No, 10022
AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS
THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS
AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND
PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR
FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER
PURPOSES
J. R.A. No. 8187 –PATERNITY LEAVE ACT OF 1996
K. R.A. No. 8188 – LAW INCREASING THE PENALTY FOR VIOLATION OF
THE WAGE LAW
L. EXECUTIVE ORDER NO. 51, Series of 2018 IMPLEMENTING ARTICLE 106
OF THE LABOR CODE OF THE PHILIPPINES, AS AMENDED, TO PROTECT
THE RIGHT TO SECURITY OF TENURE OF ALL WORKERS BASED ON
SOCIAL JUSTICE IN THE 1987 PHILIPPINE CONSTITUTION.
 M. DEPARTMENT ORDER NO. 174, SERIES OF 2017: RULES
IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR CODE, AS
AMENDED
N. REPUBLIC ACT No. 10801, AN ACT GOVERNING THE OPERATIONS AND
ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE
ADMINISTRATION of 2016.
O. OWWA Resolution No. 15, Series of 2016, IMPLEMENTING RULKES AND
REGULATION OF RA 10801, OTHERWISE KNOWN AS THE OVERSEAS
WORKERS WELFARE ADMINISTRATION ACT of 2016
P. AN ACT STRENGTHENING COMPLIANCE WITH OCCUPATIONAL SAFETY
AND HEALTH STANDARDS AND PROVIDING PENALTIES FOR
VIOLATIONS THEREOF, REPUBLIC ACT No. 11058 (AUG. 17, 2018) and its
appropriate Implementing Rules and Regulations – DEPT. ORDER No. 198-
18 including LABOR ADVISORY 10 - Series Of 2019.
Q. AN ACT INCREASING THE MATERNITY LEAVE PERIOD TO ONE HUNDRED
FIVE (105) DAYS FOR FEMALE WORKERS WITH AN OPTION TO EXTEND
FOR AN ADDITIONAL THIRTY (30) DAYS WITHOUT PAY, AND GRANTING
AN ADDITIONAL FIFTEEN (15) DAYS FOR SOLO MOTHERS, AND OTHER
PURPOSES. OTHERWISE KNOWN AS “EXPANDED MATERNITY LEAVE
ACT” REPUBLIC ACT No. 11210 and its appropriate Implementing Rules and
Regulations.(FEB. 22, 2019)
R. AN ACT INSTITUIONALIZING TELECOMMUTING AS AN
ALTERNATIVE WORK ARRANGEMENT FOR EMPLOYEES IN THE
PRIVATE SECTOR, OTHERWISE KNOWN AS “TELECOMMUTING
ACT” REPUBLIC ACT No. 11165. (JAN. 10, 2019)
Department Order 202-19 Implementing Rules and Regulations
of Republic Act No. 11165 otherwise known as the”
Telecommuting Act”

S. AN ACT WAIVING GOVERNMENT FEES AND CHARGES IN THE ISSUANCE

OF DOCUMENTS REQUIRED IN THE APPLICATION FOR EMPLOYMENT OF
FIRST TIME JOBSEEKERS, OTHERWISE KNOWN AS “FIRST TIME
JOBSEEKERS ASSISTANCE ACT”, REPUBLIC ACT No. 11261. (APRIL 10,
2019)
T. AN ACT INSTITUTING UNIVERSAL HEALTH CARE FOR ALL
FILIPINOS, PRESCRIBING REFORMS IN THE HEALTH CARE
SYSTEM, AND APPROPRIATING FUNDS THEREFORE REPUBLIC
ACT NO. 11223
U. DOLE LABOR ADVISORY No. 17 Series of 2020 – GUIDELINES ON
EMPLOYMENT PRESERVATION UPON THE RESUMPTION OF BUSINESS
OPERATION

VII. Labor Relations Law

A. Right to self-organization

1. Who may unionize for purposes of collective bargaining?

Who cannot form, join or assist labor organizations?
2. Who may or may not exercise the right
a. Doctrine of necessary implication
3. Commingling or mixture of membership
4. Rights and conditions of membership
a. Nature of relationship
1. Member-Labor union
2. Labor union federation
(a) Disaffiliation
(b) Substitutionary doctrine
5. Bargaining unit
 a) Test to determine the constituency of an appropriate
bargaining unit
b) Voluntary recognition
(i) Requirements
c) Certification election
(i) In an unorganized establishment
(ii) In an organized establishment
d) Run-off election
(i) Requirements
e) Re-run election
f) Consent election
g) Affiliation and disaffiliation of the local union from the
mother union
Rights and conditions of membership
a. Nature of relationship
(i). Member-Labor union
(ii). Labor union federation
(a) Disaffiliation
(b) Substitutionary doctrine
h) Union dues and special assessments
(i) Requirements for validity
i) Agency fees
(i) Requisites for assessment

B. Right to collective bargaining

1. Duty to bargain collectively
a) When there is absence of a CBA
b) When there is a CBA
2. Collective Bargaining Agreement (CBA)
a) Mandatory provisions of CBA
(i) Grievance procedure
(ii) Voluntary arbitration
(iii) No strike-no lockout clause
(iv) Labor management council
b) Duration
(i) For economic provisions
(ii) For non-economic provisions
(iii) Freedom period
3. Union Security
a) Union security clauses; closed shop, union shop,
maintenance of membership shop, etc.
b) Check-off; union dues, agency fees
4. Unfair Labor Practice in collective bargaining
a) Bargaining in bad faith
b) Refusal to bargain
c) Individual bargaining
d) Blue sky bargaining
e) Surface bargaining
5. Unfair Labor Practice (ULP)
a) Nature of ULP
b) ULP of employers
c) ULP of labor organizations
C. Right to peaceful concerted activities
1. Forms of concerted activities
2. Who may declare a strike or lockout?
3. Requisites for a valid strike
4. Requisites for a valid lockout
5. Requisites for lawful picketing
 6. Assumption of jurisdiction by the DOLE Secretary or Certification
of the labor dispute to the NLRC for compulsory arbitration
7. Nature of assumption order or certification order
8. Effect of defiance of assumption or certification orders
9. Illegal strike
a) Liability of union officers
b) Liability of ordinary workers
c) Liability of employer
d) Waiver of illegality of strike
10. Injunctions
a) Requisites for labor injunctions
b) “Innocent bystander rule”
D. Assumption of jurisdiction by Secretary of Labor and Employment
1. Industry indispensable to the national interest
2. Effects of assumption of jurisdiction

VIII. Procedure and Jurisdiction

A. Labor Arbiter
1. Jurisdiction
a) Contrasted with and as
2. Requirements to perfect appeal to NLRC
3. Reinstatement and/or execution pending appeal

B. National Labor Relations Commission (NLRC)

1. Jurisdiction
2. Effect of NLRC reversal of Labor Arbiter’s order of reinstatement
3. Remedies
4. Certified cases
C. Bureau of Labor Relations – Med-Arbiters
1. Jurisdiction (original and appellate)
D. National Conciliation and Mediation Board
1. Nature of proceedings
2. Conciliation vs. Mediation
3. Preventive Mediation
E. DOLE Regional Directors
1. Jurisdiction
F. DOLE Secretary
1. Visitorial and enforcement powers
2. Power to suspend/effects of termination
3. Assumption of jurisdiction
4. Appellate jurisdiction
5. Voluntary arbitration powers
6. Remedies
G. Grievance Machinery and Voluntary Arbitration
1. Subject matter of grievance
2. Voluntary Arbitrator
a) Jurisdiction
b) Procedure
c) Remedies
H. Court of Appeals
1. Rule 65, Rules of Court
I. Supreme Court
1. Rule 45, Rules of Court
J. Prescription of actions

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LABOR LAW REVIEW