LABOR LAWS ASSIGNMENT NO.

1. What are the rights of the workers guaranteed under the Cpnstitution.

Under Article XIII, Section 3 of the Constitution:

a) Full protection to labor, local and overseas, organized and unorganized;
b) Promotion of full employment;
c) Promotion of equality of employment opportunities for all;
d) Guarantee of the rights of all workers to:
1. Self-organization;
2. collective bargaining and negotiations;
3. peaceful concerted activities, including the right to strike in accordance with law;
4. security of tenure;
5. humane conditions of work;
6. a living wage;
7. participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
e) Promotion of the principle of shared responsibility between workers and employers and
the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace.
f) Regulation of 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.

Under Article II (Declaration of Principles and State Policies):

a. “Section 18. The State affirms labor as a primary social economic force. It shall protect the
rights of workers and promote their welfare.”
This provision is invoked by the Supreme Court when it affirms the interest, rights and
welfare of labor. Example: When the SC nullifies a patently illegal provision in an employment
contract or when it invalidates a Quitclaim executed by a worker because of unconscionably
low consideration.

2. What are the rights of enterprises?

The State shall regulate 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.

3-5. What is labor law, labor relations, and labor standards?

Labor relations - refers to that part of labor law which regulates the relations between
employers and workers. Example: Book V of the Labor Code which deals with labor
organizations, collective bargaining, grievance machinery, voluntary arbitration, conciliation and
mediation, unfair labor practices, strikes, picketing and lockout.
Labor standards - refers to that part of labor law which prescribes the minimum terms and
conditions of employment which the employer is required to grant to its employees. Examples:
Books One to Four of the Labor Code as well as Book VI thereof which deal with working
conditions, wages, hours of work, holiday pay and other benefits, conditions of employment of
women, minors, househelpers and homeworkers, medical and dental services, occupational
health and safety, termination of employment and retirement.

6. What is welfare and social legislation?

7. How do you interpret the provisions of the Labor Code?

“Article 4. Construction in Favor of Labor. – 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.”
3. Follow this rule in interpreting and construing:
a. DOUBTS OR AMBIGUITIES IN LABOR CONTRACTS such as employment
contract and collective bargaining agreement (CBA);
b. DOUBTS OR AMBIGUITIES IN EVIDENCE in labor cases.

* In any legal controversy between labor and capital, the former always suffers the most. Hence,
the common adage that those who have less in life should have more in law is best exemplified
and made real in the Labor Code.

8. What is the Four-Fold Test of Employer-Employee Relationship?

The 4-fold test of existence of employer-employee relationship?
1. Selection and engagement of the employee;
2. Payment of wages or salaries;
3. Exercise of the power of dismissal; or
4. Exercise of the power to control the employee’s conduct.
These tests, however, are not fool-proof as they admit of exceptions.
The 4th test above, the control test, is the controlling test which means that the employer
controls or has reserved the right to control the employee not only as to the result of the work to
be done but also as to the means and methods by which the same is to be accomplished.
The three (3) terms: (1) means, (2) methods and (3) results are the critical elements of the
control test, thus:
Situation 1: If the employer controls the means and methods of performing the job, work or
service, including the results thereof, then the arrangement is one of employer-employee
relationship.
Situation 3: If the so-called employer does not control such means and methods but is only
interested in the results thereof, then the arrangement is called “independent job contracting” or
“contractualization”, the party controlling the means and methods is called the independent
contractor and the party interested only in the results is called the principal/client/indirect
employer/statutory employer.

9. What is management prerogative?

Management prerogatives are granted to the employer to regulate every aspect of their
business, generally without restraint in accordance with their own discretion and judgment. This
privilege is inherent in the right of employers to control and manage their enterprise effectively.
Such aspects of employment include hiring, work assignments, working methods, time, place
and manner of work, tools to be used, processes to be followed, supervision of workers, working
regulations, transfer of employees, lay-off of workers and the discipline, dismissal and recall of
workers.

What are the limitations to the exercise of these prerogatives?

1. Limitations imposed by:
a) law;
b) CBA;
c) employment contract;
d) employer policy;
e) employer practice; and
f) general principles of fair play and justice.
2. It is subject to police power.
3. Its exercise should be without abuse of discretion.
4. It should be done in good faith and with due regard to the rights of labor.
For example, an employer cannot prescribe more than 8 hours as normal working hours in a
day because there is a law which limits it to 8 hours. In the same vein, the employer cannot
insist that an employee should observe 8 hours as the daily normal working hours if there is a
stipulation in the CBA, employment contract, or there is an employer policy or practice that the
normal working hours is only 7 hours per day.

10. What are the kinds of employments?

There are five (5) classifications of employment:
(a) Regular employees referring to those who have been “engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the
employer”;
(b) Project employees referring to those “whose 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”;
(c) Seasonal employees referring to those who work or perform services which are
seasonal in nature, and the employment is for the duration of the season;
(d) Casual employees referring to those who are not regular, project, or seasonal
employees;
(e) Fixed-term employees whose term is freely and voluntarily determined by the
employer and the employee. NOTE: This is not provided in the Labor Code.

What is the default employment?

The default employment is regular employment. This means that generally, in the
absence of any specific agreement to the contrary, the employer-employee relationship is
deemed to be regular in nature. Therefore, in order to make the employment some other kind of
employment, such as project, seasonal, casual, fixed-term or probationary, there must be a
written contract of employment stipulating the specific kind of employment.
 So, therefore, if there is no written employment contract, the employment should be
deemed REGULAR. However, even if there is a written employment contract, if it is not clear
that the parties have stipulated such other kinds of employment (such as project, seasonal,
casual, fixed-term or probationary), the employment relationship will still be considered
REGULAR employment which, as earlier stated, is the default employment.

A. PROBATIONARY EMPLOYMENT
Is the period of 6 months in the law on probationary employment (Article 296
[281], LC) the minimum or maximum period?
The answer is it is neither the minimum nor the maximum period of probationary
employment. The 6-month period is mentioned in the law for purposes of setting the standard
period. Proof that it is not the maximum is the case of Buiser v. Leogardo where the
probationary period of 18 months was considered reasonable. In other words, probationary
period may be for a day, a week, a month or several months, depending on the reasonable
discretion of management.
How is probationary period, say, of 6 months computed?
The 6-month probationary period should be reckoned “from the date of appointment up
to the same calendar date of the 6th month following.”
May probationary period be extended?
Yes, but only upon the mutual agreement in writing by the employer and the
probationary employee.
What is the effect of allowing a probationary employee to work beyond the probationary
period?
He is considered a regular employee.
What is the effect if there is no written contract providing for probationary employment?
If there is no written contract, the employee is considered a regular employee from day
one of his employment.And even if there is one, he is deemed regular if there is no stipulation
on probationary period.
What is the distinction between probationary employment and fixed-term employment?
The distinction lies in the intention of the parties. If the parties intend to make their
relationship regular after the lapse of the period, say of 6 months, then what is contemplated is
probationary employment; if there is no such intention of the parties, then, what they have
entered into is simply a fixed-term contract.
What are the grounds to terminate probationary employment?
Under Article 281, a probationary employee may be terminated only on three (3)
grounds, to wit:
1. For a just cause; or
2. For authorized cause; or
3. When the probationary employee fails to qualify as a regular employee in
accordance with reasonable standards made known by the employer to the employee at the
start of the employment.
Is procedural due process required in termination of probationary employment?
Yes, but only in the case of Numbers 1 and 2 above.
 Due process for Number 3 is different and unique in the sense that it requires simply the
service of a written notice of termination, not verbal, informing the probationary employee of
the termination of his probationary employment and attaching thereto the result of the
performance evaluation conducted on him. As clearly pointed out above, it is a fundamental
requirement that the reasonable standards expected of the employee during his probationary
employment was made known to him at the time of his engagement. Necessarily, at the
termination thereof, the supposed performance evaluation should be presented to him. As a
matter of due process, an employee has the right to know whether he has met the standards for
which his performance was evaluated. Should he fail, he also has the right to know the reasons
therefor.
When should termination of probationary employment be made?
Termination to be valid must be done prior to lapse of probationary period. Termination a
day or a few days after the lapse of the probationary period cannot be done without just or
authorized cause as he has already become a regular employee by that time.

B. REGULAR EMPLOYMENT
How does one become a regular employee?
Under the Labor Code, regular employment may be attained in either of three (3) ways, namely:
1. By nature of work. - The employment is deemed regular when the employee has been
engaged to perform activities which are usually necessary or desirable in the usual business or
trade of the employer.
2. By period of service. - The employment is reckoned as regular when the employee has
rendered at least one (1) year of service, whether such service is continuous or broken, with
respect to the activity in which he is employed and his employment shall continue while such
activity exists.
3. By probationary employment. - The employment is considered regular when the
employee is allowed to work after a probationary period.
Is the manner or method of paying wage material in determining regularity of
employment?
No. The manner and method of payment of wage or salary is immaterial to the issue of
whether the employee is regular or not. So, the fact that an employee is paid on a daily basis or
monthly basis is inconsequential on the regularity issue.

C. PROJECT EMPLOYMENT
What is the litmus test of project employment?
The litmus test of project employment, as distinguished from regular employment, is
whether or not the project employees were assigned to carry out a specific project or
undertaking, the duration and scope of which were specified at the time the employees were
engaged for that project.
A true project employee should be assigned to a project which begins and ends at
determined or determinable times and be informed thereof at the time of hiring.
What are the 6 indicators of project employment?
Either one or more of the following circumstances, among others, may be considered as
indicator/s that an employee is a project employee:
 1. The duration of the specific/identified undertaking for which the worker is
engaged is reasonably determinable.
2. Such duration, as well as the specific work/service to be performed, are defined
in an employment agreement and are made clear to the employee at the time of hiring.
3. The work/service performed by the employee is in connection with the
particular project or undertaking for which he is engaged.
4. The employee, while not employed and awaiting engagement, is free to offer his
services to any other employer.
5. A report of the termination of employment in the particular project/undertaking is
submitted to the DOLE Regional Office having jurisdiction over the workplace, within thirty (30)
days following the date of his separation from work.
6. An undertaking in the employment contract by the employer to pay completion
bonus to the project employee as practiced by most construction companies.
Is length of service material in determining validity of project employment?
No. Length of service is not a controlling determinant of employment tenure.
What are some principles on project employment?
1. Project employees should be informed of their status as such at inception of the
employment relationship.
2. There must be a written contract of project employment stating the duration of
the project employment as well as the particular work or service to be performed. A written
project employment contract is an indispensable requirement.
3. Intervals in employment contracts indicate project employment.
4. Continuous, as opposed to intermittent, rehiring shows that employee is regular.
5. “Project-to-project” basis of employment is valid.
On termination of project employment.
1. Project employees enjoy security of tenure only during the term of their project
employment.
2. Project employees have presumably become regular employees if they are
allowed to work beyond the completion of the project or any phase thereof to which they were
assigned or after the “day certain” which they and their employer have mutually agreed for its
completion. Having become regular employees, they can no longer be terminated on the basis
of the completion of the project or any phase thereof to which they were deployed.

D. SEASONAL EMPLOYMENT
Can a seasonal employee become a regular seasonal employee?
Yes, provided the following requisites are complied with:
1. The seasonal employee should perform work or services that are seasonal in
nature; and
2. They must have also been employed for more than one (1) season.
Can a regular seasonal worker file an illegal dismissal case in the event he is not hired
for the next season?
Yes. The reason is, being a regular seasonal employee, the employer should re-hire him
in the next season. During off-season, his employment is deemed suspended and he is
considered as being on leave of absence without pay.
 E. CASUAL EMPLOYMENT
What is the most important distinguishing feature of casual employment?
The most important distinction is that the work or job for which he was hired is merely
incidental to the principal business of the employer and such work or job is for a definite period
made known to the employee at the time of engagement.
Capule v. NLRC, Yakult Philippines, Inc., G.R. No. 90653, Nov. 12, 1990.
Private respondent company is engaged in the manufacture of cultured milk which is
sold under the brand name “Yakult.” Petitioners were hired to cut cogon grass and weeds at the
back of the factory building used by private respondents. They were not required to work on a
fixed schedule and they worked on any day of the week at their own discretion and
convenience. They were held to be casual employees because cutting cogon grass and weeds
is but incidental to the principal business of the company.
When does a casual employee become regular?
Casual employee becomes regular after one year of service by operation of law. The one (1)
year period should be reckoned from the hiring date. Repeated rehiring of a casual employee
makes him a regular employee.

F. FIXED-TERM EMPLOYMENT
What are the requisites in order for fixed-term employment to be valid?
The two (2) requisites or criteria for the validity of a fixed-term contract of employment are as
follows:
1. The fixed period of employment was knowingly and voluntarily agreed upon by
the parties, without any force, duress or improper pressure being brought to bear upon the
employee and absent any other circumstances vitiating his consent; or
2. It satisfactorily appears that the employer and employee dealt with each other on
more or less equal terms with no moral dominance whatever being exercised by the former on
the latter.
Is fixed-term employment valid if the job is directly related to the principal business of
the employer?
Yes. Fixed-term employment is the only exception to the rule that one becomes regular if
he is made to perform activities directly related to the principal business of the employer
(Regularity by virtue of nature of work)
Thus, it was ruled in Philippine Village Hotel v. NLRC,1 that the fact that private
respondents were required to render services necessary or desirable in the operation of
petitioner’s business for the duration of the one-month dry-run operation period, did not in any
way impair the validity of their contracts of employment which specifically stipulated that their
employment was only for one (1) month.
When does a fixed-term employee become regular?
1. When he is allowed to work beyond the agreed fixed term.
2. When there are successive renewals of fixed-period contracts.
What is the 555 Doctrine?
The 555 Doctrine is a scheme of the employer in hiring workers on a uniformly fixed 5-
month basis and replacing them upon the expiration of their contracts with other workers with
the same employment status circumvents their right to security of tenure