KNOTES #BestBarEver; Personal Notes, Use at your own Discretion.

1
Labor Law Just Causes: employee has committed a wrongful act
or omission;
A. Basic principles
Authorized cause: exist a ground which the law itself
B. Existence of Employer-Employee Relationship; allows or authorizes to be invoked to justify the
tests termination of an employee even if he has not
1. 4-Fold Test of Existence of EE-ER Relationship: committed any wrongful act or omission, such as
i. Selection and engagement of the employee installation of labor-saving devices, redundancy,
ii. Payment of wages or salaries retrenchment, closure or cessation of business
iii. Exercise of the power of dismissal; or operations or disease.
iv. Exercise of the power to control the
employee’s conduct. Requisites for Validity
i. Just Causes under the Labor Code:
2. Control or Means and Method Control Test: a. Art. 297 (282)
employer controls or has reserved the right to - Serious misconduct or willful disobedience
control the employee not only as to the result of the by the employee of the lawful orders of his
work to be done but also as to the means and employer or representative in connection with
methods by which the same is to be accomplished. his work;
- 3 terms: means, methods and results are the - Gross and habitual neglect by the employer
critical elements of the control test. of his duties;
- Fraud or willful breach by the employee of
3. Two - Tiered Test (Francisco Doctrine): the trust reposed in him by his employer or
a. The putative employer’s power to control duty authorized representatives
the employee with respect to the means and - Commission of a crime or offense by the
methods by which the work is to be employee against the person of his employer
accomplished (control test); and or any immediate member of his family or his
b. The underlying economic realities of the duly authorized representatives; and
activity and relationship. - Other causes analogous to the foregoing.

Control test: manner and means to be used in b. Art. 279(a) (264(a)): Prohibited activities
reaching such end which provides for the termination of the following
Economic Reality Test: proper standard of economic - Union officers who knowingly participate in
dependence is whether the worker is dependent on illegal strike and therefore deemed to have lost their
the alleged employer for his continued employment in employment status;
that line of business. - Any employee, union officer or ordinary
member who knowingly participates in the
- This test applies where there are several parties commission of illegal acts during a strike (irrespective
alleged to be employers of one individual. or whether the strike is legal or illegal), is also
deemed to have lost his employment status.
- It is not necessary to have a written contract of
employment in order to establish an employer - c. Art. 278(g) (263(g)): National Interest
employee relationship. It may be an oral or written Cases: where strikers who violate orders,
contract. A written contract is not necessary for prohibitions, and/or injunctions as are issued by
the creation and validity of the relationship. DOLE Sec or the NLRC, may be imposed immediate
Exception: Kasambahay, it is required that disciplinary action, including dismissal or loss of
contract of employment is in writing. employment status.

4. Reasonable causal connection rule: The primary d. Art. 259(e) (248(e)): Union Security Clause
standard to determine a regular employment is the where the violation of the union security agreement
reasonable connection between the particular in the CBA may result in termination of employment.
activity performed by the employee in relation to the Under this clause, the bargaining union can demand
usual business or trade of the employer. The test is from the employer the dismissal of an employee who
whether the former is usually necessary or desirable commits a breach of union security arrangement,
in the usual business or trade of the employer. such as failure to join the union or to maintain his
membership in good standing therein. The same union
C. Termination of employment can also demand the dismissal of a member who
1. Termination by Employer commits an act of disloyalty against it, such as when
Two - Fold Due Process Requirement: the member organizes a rival union.
a. Substantive: dismissal must be for any of
the: just causes provided under the Labor Code or Totality of Infractions Doctrine: The totality of
the Company rules and regulations promulgated by infractions or the number of violations committed
the employer; or authorized causes under the Labor during the period of employment shall be considered
Code. in determining the penalty to be imposed upon an
b. Procedural: employee must be accorded erring employee.
both statutory due process and contractual due
process. 2. Authorized Causes: Redundancy, Retrenchment to
prevent losses, introduction of labor-saving devices,

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 KNOTES #BestBarEver; Personal Notes, Use at your own Discretion. 2
cessation or closure of operation of the Labor Only Contracting Elements: (Any of the
Establishment or undertaking, or disease. following elements are present)
1. The contractor or subcontractor does not have
Twin - Notice Requirement: substantial capital or investment to actually
a. First written notice: indicating the ground/s for perform the job, work or service under its own
termination and giving the said employee account and responsibility; and the employees
reasonable opportunity within which to explain recruited, supplied or placed by such contractor
his side. or subcontractor are performing activities which
are directly related to the main business of the
b. Second written notice: served upon the employee, principal; or
indicating that upon due consideration of all 2. The contractor does not exercise the right of
circumstances, grounds have been established to control over the performance of the work of the
justify his termination. contractual employees.

2. Termination by Employee Job Contracting Labor Only Contracting

With Notice: Termination without Just Cause Has su cient substantial No substantial capital nor
a. At least 1 month prior notice capital or investment in M, T, investment in the form of M,
b. Acceptance by the employer is necessary E, directly or indirectly T, or E.
intended to be related to the
c. Employee may be held liable for damages for
job contracted
failure to give notice
Carris an independent No independent business
Without Notice: Termination with Just Cause business di erent from the
employer’s
i. Grounds:
a. Serious insult on the honor and person of Undertakes to perform the Performs activities directly
employee by the employer or his representative job under its own account related to the main business
b. Inhumane and unbearable treatment and responsibility, Free from of the principal
the principal’s control
accorded to the employee
c. Commission of a crime against person of No E-ER except when the Principal treated as direct
the employee or any of the immediate member of his contractor or subcontractor employer of the person
family pays the employees wages recruited in all instances
(contractor is deemed the
d. Other causes analogous to the foregoing
principal)

Ii. Notice not necessary when resignation is with just Limited liability Principal’s liability extends
cause. to all rights, duties and
liabilities under the Labor
Standard law including the
D.Requirements for valid labor-only contracting right to self-organization
Element of Legitimate Subcontracting: Permissible Prohibited
1. The contractor is engaged in a distinct and
independent business and undertakes to perform
the job or work on its own responsibility, TRILATERAL RELATIONSHIP
according to its own manner and method. Three parties are involved
- Must be duly registered with the DOLE, if a. Contractor/Subcontractor: any person or entity,
not presumed to be labor only contractor. including a cooperative, engaged in a legitimate
contracting or subcontracting arrangement
2. The contractor has substantial capital to carry out b. Contractor’s employee: one employed by a
the job farmed out by the principal on his own contractor or sub contractor to perform or
account, manner and method, investment in the form complete a job, work or service pursuant to an
of tools, equipment, machinery and supervision arrangement between the latter and a principal.
c. Principal: any employer who puts out or farms out
3. In performing the work framed out, the contractor a job, service or work to a contractor or
is free from the control and/or direction of the subcontractor.
principal in all matters connected with the
performance of the work except as to the result E. Rights of employees and of labor organizations;
thereto; and membership in unions
1. Hours of Work
4. The service agreement ensures compliance with all - Compensable hours work: all the time during which
the rights and benefits for all the employees of the
an employee is required to be on duty or to be at
contractor under labor laws.
the employer’s premises or to be at a prescribed
workplace; and all the time during which an
- Absence of any of the foregoing requisites makes
employee is suffered or permitted to work.
the arrangement a labor-only contracting - 8 hrs: Total normal working hours
agreement. - Overtime: excess of 8 hrs
Scenario Rate

OT on Regular day Regular wage + 25%

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KNOTES #BestBarEver; Personal Notes, Use at your own Discretion. 3
Scenario Rate Regular Holiday Special Days

OT on a Holiday/Special Rest day or special holiday New Year’s Day Ninoy Aquino Day
Day/ Employees Rest day wage rate (130%) + 30%
Maundy Thursday All Saint’s Day
OT on a Holiday which falls Rest day & Holiday wage
on a Rest Day rate (150%) + 30% Good Friday Last Day of the Year

Araw ng Kagitingan Special Public Holidays

2. Meal Periods: not compensable, not less than 60
minutes. Labor Day Special Public Holidays
XPNS:
a. Where the lunch period or meal time is Independence Day Special National Holiday
predominantly spent for the employer’s benefit; National Heroes Day Feast of the Immaculate
b. Meal periods of 1 hour are deemed compensable Conception of Mary
when the employee is on continuous shift;
c. Shortened meal period of less than 1 hour must be Bonifacio Day
compensable. Eid’l al Fit’r

3. Rest Period Eid al Adha

GR: Employer may not require the employees to work
Christmas Day
on a rest day;
XPN: Rizal Day
a. In case of urgent work to be performed on
machineries, equipment or installations to avoid
Double Holiday
serious loss which the employer would suffer
a. If unworked: 200% of basic wage, provided he
b. In case of actual or impending emergencies
was present or on leave with pay on the
caused by serious accident, fire, flood, typhoon,
preceding work day
earthquake, epidemic or other disaster or
b. If worked: only an employee who works on the
calamity, to prevent loss of life or property, or in
day immediately preceding or after a regular
case of force majeure or imminent danger to
holiday is entitled to holiday pay.
public safety
c. In the event of abnormal pressure of work due to
special circumstances, where the employer Regular Holiday
cannot ordinarily be expected to resort to other
Falling on a regular work day
measures
d. To prevent serious loss of Perishable goods Unworked 100% except in retail and service
e. Where the nature of work is such that the establishments employing less than 10
employees have to work continuously for 7 days workers
in a week or more, as in the case of the crew Worked First 8 hours 200%
members of a vessel to complete a voyage and in
other similar cases Excess of 8 hrs + 30 % of hourly
f. Under other Analogous or similar circumstances rate on said day
g. When the nature or work requires continuous Falling on a rest day
operations and the stoppage of work may result
in irreparable injury or loss to the employer. Unworked 100%

Worked First 8 hrs + 30% of 200%

4. Night Shift Differential: every ee shall be paid a
night shift differential of not less than 10% of his Excess of 8 hrs + 30 % of hourly
regular wage for each hour of work performed rate on said day
between 10pm - 6am.
Special Days
5. Premium pay: additional compensation required by
law for work performed within 8hrs on non-working Unworked No Pay, unless there is a favorable
days, such as rest days, and regular and special company policy, practice or CBA
holidays. granting payment of wages on special
days even if unworked
6. Facilities: articles or services for the benefit of the Worked
First 8 hours + 30% of 200%
employee or his family but shall not include tools of
the trade or articles or may be deducted from the Excess of 8 hrs + 30 % of hourly
employee’s wages rate on said day

Excess of 8 hrs + 30 % of hourly

7. Supplements: benefit or privilege given to the rate on said day
employee which constitutes an extra remuneration
Worked and First 8 hours + 50 % of daily
over and above his basic or ordinary earning or Falling on a Rest rate
wage is supplement. Day

Excess of 8 hrs + 30 % of hourly

rate on said day
8. Holiday Pay: payment of the regular daily wage
for any unworked regular holiday.
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KNOTES #BestBarEver; Personal Notes, Use at your own Discretion. 4
Special Working Holidays: only the basic rate Limitations to the exercise of management
prerogatives:
9. Service Incentive leaves: every employee who has a. Law
rendered at least 1 year of service shall be entitled to b. CBA
a yearly service incentive leave of 5 days with pay. c. Employment contract
d. Employment policy
10. Vacation Leave/Sick Leave: not required by law e. Employer practice; and
and depends on voluntary employer policy or CBA. f. General principles of fair play and justice.
g. Subject to police power
11. 13th Month Pay: all employers are required to pay h. Exercise should be without abuse of discretion
all their rank-and-file employees, a 13th month pay i. It should be done in good faith and with due
not later than Dec. 24 of every year, provided that regard to the rights of labor.
they have worked for at least 1 month during a
calendar year. G. Illegal recruitment of overseas Filipino workers
- 1/12th of the basic salary of an employee within a
Under the Labor Code:
calendar year. - Any recruitment activity including Prohibited Acts
under Art. 34 committed by non-licensees or non-
RIGHT OF LABOR ORGANIZATIONS
holder of authority
SUMMARY OF RIGHTS AND CONDITIONS OF
MEMBERSHIP Elements:
Political Rights Member’s right to vote and a. That the offender has no valid license or authority
be voted for, subject to required by law to enable one to lawfully engage
lawful provisions on in recruitment and placement of workers; and
quali cations and b. That the offender undertakes either any activity
disquali cations within the meaning of recruitment under Art.
Deliberative and decision Member's right to 13(b), or any of the prohibited practices
making rights participate in deliberations enumerated under Art. 34.
on major policy questions
and decide them by secret The essential elements of illegal recruitment depends
ballot
on the following classifications:
Rights over money 1. Against unauthorized 1. Simple illegal recruitment: local workers and
matters collection of migrant workers
contributions or 2. When committed by a Syndicate
unauthorised
3. When committed in a large scale
disbursements.

2. To require adequate
records of income and Simple illegal recruitment for Migrant Workers:
expenses;
1. Person charged undertakes any recruitment
3. To access to nancial activity defined in Art. 13b of the Labor Code;
records
and
4. To vote on o cers’
2. Said person does not have a license or authority
compensation

5. To vote on proposed to do so.

special assessments

6. To be deducted a Second type of illegal recruitment

special assessment only 1. Person charged commits any of the enumerated
with the member’s acts under Sec. 6 of RA 8042, as amended by RA
individual written
No. 10022
authorization
2. It is immaterial whether he is a holder or not of
Right to Information The member’s right to be any license or authority.
informed about:

a. The organizations
Illegal Recruitment: any act of canvassing, enlisting,
constitution and by-
laws; and
contracting, transporting, utilizing, hiring, or
b. The CBA, and about procuring workers and includes referring, contract
labor laws. services, promising or advertising for employment
abroad, whether for profit or not, when undertaken
by non-licensee or non-holder of authority
F. Management prerogative contemplated under Art. 13(f) of the Labor Code;
- Granted to the employer to regulate every aspect
of their business, generally without restraint in Provided, that any such non-licensee or non-holder
accordance with their own discretion and who, in any manner, offers or promises for a fee
judgment. Aspects of employment includes hiring, employment abroad or two or more persons shall be
work assignments, working methods, time, place, deemed so engaged. It shall likewise include the
and manner of work, tools to be used, processes following acts, whether committed by any persons,
to be followed, supervision of workers, working whether a non-licensee, non-holder, licensee or
regulations, transfer of employees, lay-off of holder of authority (RA No. 8042, Sec. 6)
workers, and the discipline, dismissal and recall of
workers.

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 KNOTES #BestBarEver; Personal Notes, Use at your own Discretion. 5
Illegal Recruitment by a Syndicate: agency or who has formed, joined or supported, or has contacted or is
supported by any union or workers' organization;
1. The accused engages in acts of recruitment and
"(f) To engage in the recruitment or placement of workers in jobs harmful
placement of workers defined under Art. 13(b) of to public health or morality or to the dignity of the Republic of the
the Labor Code or in any prohibited activities Philippines;
under Art. 34 of the Labor Code; "(h) To fail to submit reports on the status of employment, placement
vacancies, remittance of foreign exchange earnings, separation from
2. Hr has no valid license or authority required by jobs, departures and such other matters or information as may be
law to enable one to lawfully engage in required by the Secretary of Labor and Employment;
recruitment and placement of workers; and "(i) To substitute or alter to the prejudice of the worker, employment
3. The illegal recruitment is committed by a group of contracts approved and verified by the Department of Labor and
Employment from the time of actual signing thereof by the parties up to
3 or more persons conspiring or confederating and including the period of the expiration of the same without the
with one another. approval of the Department of Labor and Employment;
"(j) For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation engaged
Illegal recruitment in large scale
in travel agency or to be engaged directly or indirectly in the
1. The accused engages in acts of recruitment and management of travel agency;
placement of workers defined under Art. 13b of "(k) To withhold or deny travel documents from applicant workers before
the Labor Code or in any prohibited activities departure for monetary or financial considerations, or for any other
reasons, other than those authorized under the Labor Code and its
under Art. 34 of the Labor Code; implementing rules and regulations;
2. The accused has not complied with the guidelines "(l) Failure to actually deploy a contracted worker without valid reason
issued by the Secretary of Labor and as determined by the Department of Labor and Employment;
Employment, particularly with respect to securing "(m) Failure to reimburse expenses incurred by the worker in connection
with his documentation and processing for purposes of deployment, in
license or an authority to recruit and deploy cases where the deployment does not actually take place without the
workers, either locally or overseas; and worker's fault. Illegal recruitment when committed by a syndicate or in
3. The accused commits the unlawful acts against large scale shall be considered an offense involving economic sabotage;
and
three or more persons individually or as a group.
"(n) To allow a non-Filipino citizen to head or manage a licensed
recruitment/manning agency.
Illegal recruitment as Economic Sabotage: "Illegal recruitment is deemed committed by a syndicate if carried out by
- committed by a syndicate or in a large scale. a group of three (3) or more persons conspiring or confederating with
one another. It is deemed committed in large scale if committed against
three (3) or more persons individually or as a group.
Ban on Direct Hiring: refers to the process of directly "In addition to the acts enumerated above, it shall also be unlawful for
hiring workers by employers for overseas any person or entity to commit the following prohibited acts:
employment as authorized by the DOLE Secretary "(1) Grant a loan to an overseas Filipino worker with interest exceeding
eight percent (8%) per annum, which will be used for payment of legal
and processed by the POEA, including: and allowable placement fees and make the migrant worker issue, either
a. Those hired by international organizations; personally or through a guarantor or accommodation party, postdated
b. Those hired by members of the diplomatic checks in relation to the said loan;
"(2) Impose a compulsory and exclusive arrangement whereby an
corps;
overseas Filipino worker is required to avail of a loan only from
c. Name hires or workers who are able to specifically designated institutions, entities or persons;
secure overseas employment opportunity with an "(3) Refuse to condone or renegotiate a loan incurred by an overseas
employer without the assistance or participation of Filipino worker after the latter's employment contract has been
prematurely terminated through no fault of his or her own;
any agency. "(4) Impose a compulsory and exclusive arrangement whereby an
overseas Filipino worker is required to undergo health examinations only
Illegal Recruitment Activities under Sec. 6 of RA No from specifically designated medical clinics, institutions, entities or
8042 as amended by RA 10022 persons, except in the case of a seafarer whose medical examination
cost is shouldered by the principal/shipowner;
SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall
"(5) Impose a compulsory and exclusive arrangement whereby an
mean any act of canvassing, enlisting, contracting, transporting, utilizing,
overseas Filipino worker is required to undergo training, seminar,
hiring, or procuring workers and includes referring, contract services,
instruction or schooling of any kind only from specifically designated
promising or advertising for employment abroad, whether for profit or
institutions, entities or persons, except fpr recommendatory trainings
not, when undertaken by non-licensee or non-holder of authority
mandated by principals/shipowners where the latter shoulder the cost of
contemplated under Article 13(f) of Presidential Decree No. 442, as
such trainings;
amended, otherwise known as the Labor Code of the Philippines:
"(6) For a suspended recruitment/manning agency to engage in any kind
Provided, That any such non-licensee or non-holder who, in any manner,
of recruitment activity including the processing of pending workers'
offers or promises for a fee employment abroad to two or more persons
applications; and
shall be deemed so engaged. It shall likewise include the following acts,
"(7) For a recruitment/manning agency or a foreign principal/employer
whether committed by any person, whether a non-licensee, non-holder,
to pass on the overseas Filipino worker or deduct from his or her salary
licensee or holder of authority:
the payment of the cost of insurance fees, premium or other insurance
"(a) To charge or accept directly or indirectly any amount greater than
related charges, as provided under the compulsory worker's insurance
that specified in the schedule of allowable fees prescribed by the
coverage.
Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him as a
loan or advance; H. Remedies (labor standard violations)
"(b) To furnish or publish any false notice or information or document in
relation to recruitment or employment;
- There must be an ER-EE relationship between
"(c) To give any false notice, testimony, information or document or parties-litigants, or a reasonable connection.
commit any act of misrepresentation for the purpose of securing a - The cause of action must arise from the employer -
license or authority under the Labor Code, or for the purpose of employee relationship, if none, the Labor Arbiters
documenting hired workers with the POEA, which include the act of
reprocessing workers through a job order that pertains to nonexistent
and other labor tribunals have no jurisdiction.
work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA; Reasonable Casual Connection Rule: the rule in case
"(d) To include or attempt to induce a worker already employed to quit
of conflict of jurisdiction between labor court and
his employment in order to offer him another unless the transfer is
designed to liberate a worker from oppressive terms and conditions of regular court.
employment;
"(e) To influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment through his

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KNOTES #BestBarEver; Personal Notes, Use at your own Discretion. 6
- In cases filed by OFWs, labor arbiters may
exercise jurisdiction even absent the employment
relationship. Labor Arbiters have jurisdiction even
if the case is filed by the heirs of the OFW.
- Labor disputes are not subject to Barangay
conciliation.

Cases under the Labor Arbiters:

1. Unfair labor practices cases
2. Termination disputes
3. Money claims exceeding P5,000.00
4. Claims for actual moral, exemplary and other
forms of damages arising from employer -
employee relations; and
5. Cases involving the legality of Strikes and
lockouts
6. Disputes involving legislated wage increases and
wage distortion in unorganized establishments
not voluntarily settled by the parties
7. Contested cases under the Exception clause in
Art. 128(b)
8. Enforcement of Compromise Agreements when
there is non-compliance by any of the parties
9. Issuance of writ of execution to enforce decisions
of Voluntary Arbitrators or panel of Voluntary
Arbitrators in case of their absence or incapacity
10. Money claims of OFWs arising out of er-ee
relationship or by virtue of any law or contract,
including claims death and disability benefits
11. Other cases provided by law.

NLRC Jurisdiction
Exclusive Original Jurisdiction:
a. Petition for injunction in ordinary labor disputes
b. Petition for injunction in strikes or lockouts
c. Certified cases
d. Petition to annul or modify the order or resolution
of the Labor Arbiter

Exclusive Appellate Jurisdiction

a. All cases decided by the Labor Arbiters
b. Cases decided y the DOLE Regional Directors
c. Contempt cases decided by the LA

Bureau of Labor Relations

Jurisdiction:
a. Inter - union disputes
b. Intra - union disputes
c. Other labor relations disputes

(c) Rigor, 2021