1

I. GENERAL PRINCIPLES

1. What is the State's basic policy on labor?

The State shall: (APERA)

a. Afford protection to labor;
b. Promote full employment;
c. Ensure equal work opportunities regardless of sex, race or creed;
d. Regulate the relation between workers and employers; and
e. Assure the rights of workers to:
i. Self-organization;
ii. Collective bargaining;
iii. Security of tenure; and
iv. Just and humane conditions of work (Art. 3, Labor Code, as amended).

2. Who bears the burden of proof in (a) existence of employer-employee relationship; (b)
fact of dismissal; (c) validity of dismissal; and (d) validity of transfer of employee?

Summary on Burden of Proof

Existence of Employer-Employee Relationship Employee

Fact of dismissal (Symex Security Services, Inc. vs. Rivera, Jr., G.R. No. 202613, Employee
November 8, 2017, J. Caguioa)

Validity of dismissal (Bautista vs. Eli Lilly Philippines, Inc., G.R. No. 235865, Employer
February 3, 2021, J. Caguioa)

Validity of transfer of employee (Ebus vs. The Results Company Inc., G.R. Employer
No. 244388, March 3, 2021, J. Caguioa)

Quantum of evidence - In all cases, as in other administrative and quasi-judicial proceedings,

the quantum of proof necessary is substantial evidence, or such amount of relevant evidence
which a reasonable mind might accept as adequate to justify a conclusion (Valencia vs. Classic Vinyl
Products Corp., G.R. No. 206390, January 30, 2017).

3. What are the rights or policies enshrined in Article XIII, Section 3 of the 1987 Constitution
that are not covered by Article 3 of the Labor Code on declaration of basic policy?

a. All workers shall have the right to peaceful concerted activities including the right to strike in
accordance with law;
b. all workers are entitled to living wage;
c. all workers shall have the right to participate in policy and decision-making processes affecting
their rights and benefits as may be provided by law; and
d. the state shall promote the principle of shared responsibility between workers and employers.

II. RECRUITMENT AND PLACEMENT

4. What are the kinds of illegal recruitment?

a. Simple illegal recruitment

- the offender has no valid license or authority required by law to enable one to lawfully
engage in recruitment and placement of workers;
b. illegal recruitment of economic sabotage
i. Syndicated – if carried out by a group of three (3) or more persons conspiring or
confederating with one another; and
ii. Large scale or qualified – committed against three (3) or more persons, individually or as
a group (Sec. 5 of R.A. 10022, amending Sec. 6 of R.A. 8042, otherwise known as Migrant Workers Act).

5. What is the theory of imputed knowledge?

The theory of imputed knowledge ascribes the knowledge of the agent, to the principal, employer not the
other way around. The knowledge of the principal-foreign employer cannot, therefore, be imputed to its
agent. (Sunace International Management Inc. vs. NLRC, G.R. No. 161757, January 25, 2006)

1
 III. LABOR STANDARDS

6. Distinguish an employee from an independent contractor.

Independent Contractor Employee

Definition An independent contractor undertakes to Employee includes any person in the

perform work on its own account, under its
own responsibility and according to its own
manner and method, free from the control
and direction of the principal. (PAL vs. NLRC,
G.R. No. 125792, November 9, 1998)
employ of an employer but is not limited
to the employees of a particular
employer unless the Labor Code so
explicitly states. It shall also 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, provided, that he
has not obtained any other substantially
equivalent and regular employment.
(Art. 219[6], Labor Code, as amended).

Governing Their contracts are governed by the law on Their contracts are governed by labor
Law contracts and other applicable law. (Fuji law and social legislation. (Art. 6, Labor
Television Network Inc. vs. Espiritu, supra). Code, As amended)

7. What are the accepted tests to determine the existence of an employer-employee

relationship?

The accepted tests to determine the existence of an employer-employee relationship are the four- fold
test and the two-tiered test.

Under the four-fold test, the employer-employee relationship is determined if the following are present:
1. the selection and engagement of the employees
2. the payment of wages;
3. the power of dismissal; and
4. the power to control the employee's conduct, or the so-called "control test."

Here, the "control test" is the most important and crucial among the four tests (Maricalum Mining Corporation
vs. Florentino, GR Nos. 221813 & 222723, July 23, 2018).

8. What are the allowable alternative work schemes or flexible work arrangements?

a. Reduction of Workhours and/or Workdays refers to one where the normal workhours or workdays
per week are reduced.
b. Rotation of Workers refers to one where the employees are rotated or alternately provided work
within the week.
c. Forced Leave refers to one where the employees are required to go on leave for several days or
weeks utilizing their leave credits, if there are any.

9. What is Telecommuting?

Telecommuting refers to a work arrangement that allows an employee in the private sector to work
from an alternative workplace with the use of telecommunication and/or computer technologies. (DOLE
DO No. 202 s. 2019 or the IRR of R.A. No. 11165, and R.A. No. 11165 or the Telecommuting Act)

10. What are the distinctions between Facilities and Supplements?

Facilities Supplement

As to their nature

Items of expense Extra remuneration or benefits

As to their Inclusion to Wage

Forms part of the wage Independent of Wage

As to their deductibility

2
 Deductible from the wage Not wage deductible

To whose benefit

For the benefit of the worker and his family Granted for the convenience of the employer

IV. SOCIAL WELFARE LEGISLATION

11. Who are subject to voluntary SSS coverage?

a. A spouse of a member who devotes full time to managing the household and family affairs, but
does not engage in other vocation or employment which is subject to compulsory or mandatory
coverage; (Sec. 9 (b), Id)
b. An OFW upon the termination of his/her employment overseas; (Sec. 9-B, (f), Id)
c. A covered employee who was separated from employment who continues to pay his/her
contributions; and (Sec. 11, Id)
d. A self-employed member who realizes no income in any given month who continues to pay his/her
contributions (Sec. 11-A, Id).

Note: A voluntary member (VM) shall pay his/her contribution in accordance with the guidelines on
payment deadline applicable to self-employed members. (Sec. 4, Rule 13, IRR of R.A. 11199)

12. Who are the beneficiaries under the SSS law?

Primary Beneficiaries: Secondary Beneficiaries

a. The dependent spouse who has not a. The dependent parents of the
remarried, cohabited or entered in a “live- deceased member; and
in” relationship before or after the death of b. In the absence of dependent
the member, and; parents, any other person/s
b. The dependent legitimate, legitimated or designated and reported by the
legally adopted and illegitimate children. member to the SSS (Sec 8, (k) R.A.
11199).
Note: Legitimate children shall be preferred.
The dependent illegitimate children shall be
entitled to fifty percent (50%) of the share of
the legitimate, legitimated or legally adopted
children. In the absence of the dependent
legitimate, legitimated or legally adopted
children of the member, his/her dependent
illegitimate children shall be entitled to one
hundred percent (100%) of the benefits. (Sec 8,
(k))

13. What are the benefits under the SSS Act?

1. Social Security Benefits [SMD³ ReFun]

a. Sickness (Sec. 14)
b. Maternity (Sec. 14-A)
c. Dependent‘s Pension (Sec. 12-A)
d. Retirement (Sec. 12-B)
e. Death (Sec. 13)
f. Disability (Sec. 13-A)
g. Funeral Benefit (Sec. 13-B); and
2. Employees’ compensation benefits.

14. Who are the beneficiaries under the GSIS Law?

Primary Secondary

The legal dependent spouse until he/she The dependent parents and, subject to the
remarries and the dependent children; restrictions on dependent children, the legitimate
descendants (Section 2 [g][h] R.A. No. 8291).

3
15. Who are excluded from the compulsory coverage of the GSIS Law?

a. Uniformed personnel of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP),
Bureau of Fire Protection (BFP) and Bureau of Jail Management and Penology (BJMP);
b. Barangay and Sanggunian Officials who are not receiving fixed monthly compensation;
c. Contractual Employees who are not receiving fixed monthly compensation; and
d. Employees who do not have monthly regular hours of work and are not receiving fixed monthly
compensation (Sec. 3, Rule II, IRR of R.A. No. 8291).

16. Who are dependents under the GSIS Law?

a. The legitimate spouse dependent for support upon the member or pensioner;
b. The legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried,
not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated
and incapable of self-support due to a mental or physical defect acquired prior to age of majority;
and
c. The parents dependent upon the member for support; [(Sec. 1 [f], R.A. No. 8291.]

17. What is the Limited Portability Law (RA No. 7699)?

Portability refers to the transfer of funds for the account and benefit of a worker who transfers from
one system to the other (Sec. 2[b], R.A. No. 7699). This law provides that all contributions paid by such
member personally, and those that were paid by his employers to both Systems shall be considered
in the processing of benefits which he can claim from either or both Systems: Provided, however, That
the amount of benefits to be paid by one System shall be in proportion to the number of contributions
actually remitted to that System (Sec. 4, R.A. No. 7699).

18. What are the types of disabilities compensated under the Labor Code?

Temporary if as a result of the injury or sickness, the employee is unable to perform any
Total Disability gainful occupation for a continuous period not exceeding 120 days (Art. 197 in
rel. to Sec. 2(a), Rule VII, Amended Rules on Employees’ Compensation).

Permanent if as a result of the injury or sickness the employee is unable to perform any
Total Disability gainful occupation for a continuous period exceeding 120 days (Art. 198 in rel. to
Sec. 2(b), Rule VII, Amended Rules on Employees’ Compensation).

Permanent if as a result of the injury or sickness the employee suffers a permanent partial
Partial loss of the use of any part of his body (Art. 199 in rel. to Sec. 2(c), Rule VII, Amended
Disability Rules on Employees’ Compensation).

19. Is a verbal notice of the seafarer's disability rating enough to entitle him benefits?

No. The seafarer must be furnished a copy of the final medical assessment issued by the company-
designated physician in order to afford the seafarer the opportunity to evaluate the same and decide
whether he agrees with it or not. The company-designated physician is mandated to issue a medical
certificate, which should be personally received by the seafarer, or, if not practicable, sent to him/her
by any other means sanctioned by present rules (Abella vs. Abosta Ship Management Corporation, G.R. No. 249358.
April 28, 2021, J. Caguioa).

20. Summarize the rules when a seafarer claims total and permanent disability benefits

1. The company-designated physician must issue a final medical assessment on the seafarer’s
disability grading within a period of 120 days from the time the seafarer reported to home;
2. If the company-designated physician fails to give his assessment within the period of 120 days,
without any justifiable reason, then the seafarer’s disability becomes permanent and total;
3. If the company-designated physician fails to give his assessment within the period of 120 days
with a sufficient justification, then the period of diagnosis and treatment shall be extended to 240
days. The employer has the burden to prove that the company- designated physician has sufficient
justification to extend the period; and
4. if the company-designated physician still fails to give his assessment within the extended period of
240 days, then the seafarer’s disability becomes permanent and total, regardless of any justification
(Jebsens Maritime, Inc. vs. M.Mirasol, G.R. No. 213874, June 19, 2019, J. Caguioa)

4
 V. LABOR RELATIONS

21. What is right to self-organization?

It is the Constitutional right of workers and employees to form, join or assist unions, organizations or
associations for purposes of collective bargaining and/or for mutual aid and protection, including the
right to engage in peaceful concerted activities and participate in policy-decision making processes
affecting their rights and benefits (Sec. 3, Art. XIII, 1987 Constitution)

22. Who are prohibited to join, form, or assist labor organizations or workers’ associations?

Private sector Public Sector

1. Top and middle level managerial 1. High-level employees whose functions are normally
employees; and considered as policy-making or managerial or whose
2. Confidential employees. duties are of a highly confidential Nature;
2. Members of the uniformed/armed services of the
Philippines (Chan, Bar Reviewer on Labor Law 2019, p. 383)

23. What are the grounds for cancellation of registration of labor organizations?

Any of the following may constitute as ground/s for cancellation of registration of labor organizations:
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, 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; or
c. voluntary dissolution by the members (Art. 247, Labor Code as amended).

NOTE: For misrepresentation to be a ground for the cancellation of the certificate of registration, it
must be done maliciously and deliberately. Further, the mistakes appearing in the application or
attachments must be grave or refer to significant matters. The details as to how the alleged fraud was
committed must also be indubitably shown. (Samahan ng Manggagawa sa Hanjin Shipyard vs. Bureau of Labor
Relations, G.R. No. 211145, October 14, 2015)

24. When may Sole and Exclusive Bargaining Agent (SEBA) certification be conducted?

SEBA Certification is proper only when there is no other legitimate labor organization within the
bargaining unit sought to be represented by the union (Sec. 4.1, Book 5, Rule VII, D.O. 40-I-15). If there is
more than one legitimate labor organization within the bargaining unit, the proper course of action is
certification election (Secs. 5 and 6, Book 5, Rule VII, D.O. 40-I-15).

25. Differentiate among the different modes of selecting the bargaining representative.

Certification election Consent election Run-off election

It is the process of determining It refers to the process of It refers to an election between

through secret ballot the sole
and exclusive bargaining agent
of the employees in an
appropriate bargaining unit for
purposes of collective bargaining
or negotiations with the
employer. A certification election
is conducted only upon the order
of Med-Arbiter of the Bureau of
Labor Relations (Sec. 1(h), Rule I,
D.O. No. 40-03, as amended).
determining through secret
ballot the sole and exclusive
bargaining agent (SEBA) of the
employees in an appropriate
bargaining unit for purposes of
collective bargaining and
negotiation. It is the election
voluntarily agreed upon by the
parties, with or without the
intervention of the Department
of Labor and Employment, to
determine the issue of majority
representation of all the workers
in the appropriate collective
bargaining unit (Sec. 1(h), Rule I,
D.O. No. 40-03, as amended).
the labor unions receiving the
two (2) highest number of votes
in a certification or consent
election with three (3) or more
choices, where such a certified
or consent results in none of the
three (3) or more choices
receiving the majority of the
valid votes cast; provided that
the total number of votes for all
contending unions is at least fifty
percent (50%) of the number of
votes cast. (Sec. 1(uu), Rule I, D.O.
No. 40-03, as amended)

5
26. What are the relevant periods in filing Certification Election?

The periods for filing are:

1. When there is a CBA, the labor organization can file a petition for certification election within the
60-day freedom period (Contract-Bar Rule);
2. When there is no CBA, the labor organization must first be certified as the authorized bargaining
representative by way of CE or SEBA (Azucena, Everyone’s Labor Code (2021, 10th edition), p. 335)

27. What is the lifetime of the CBA?

Any CBA that the parties may enter into shall, insofar as the representation aspect is concerned, be for
a term of five (5) years. All other provisions shall be renegotiated not later than three years after its
execution (Art. 265, Labor Code, as amended).

28. What are the elements of Unfair Labor Practice (ULP)?

a. There must be an employer-employee relationship between the offender and offended party; and
b. The act complained of must be expressly mentioned and defined in the Labor Code as ULP;
c. The act complained of as ULP must have a proximate and casual connection with any of the
following 3 rights:
a. Exercise of the right to self-organization;
b. Exercise of the right to collective bargaining; or
c. Compliance with the CBA (Chan, Last-Minute Notes for the 2022 Bar Exam in Labor Law, p. 58)

Exception: The only ULP that may or may not be related to the exercise of the right to self-
organization and collective bargaining is the act described under Art. 259 (248(f)) i.e. to dismiss,
discharge, or otherwise prejudice or discriminate against an employee for having given or being about
to give testimony under the Labor Code. (Ibid.)

29. What are the kinds of ULP as committed by the employer and committed by labor
organizations?

ULP by employer (Art. 259) ULP by labor organizations (Art. 260)

It shall be unlawful for an employer to commit It shall be unfair labor practice for a labor
any of the following ULP:
a. Interfere, restrain or coerce employees in representatives to:
their right to self-organization;
b. Require a person not to join a union;
c. Discourage Unionism;
d. Contract out services or functions being
performed by union members;
e. Initiate, dominate, assist or otherwise
interfere with formation or administration
of any union;
f. Discriminate in terms and conditions of
employment to encourage or discourage
membership in any labor organization;
g. Dismiss, discharge or discriminate an
employee for having given or being about
to give testimony under this code;
h. Violate the duty to bargain collectively;
i. Pay negotiation or attorney‘s fees to the
union or its officers or agents as part of
the settlement of any issue in collective
bargaining or any other disputes; or
j. Flagrant or gross refusal to comply with
the economic terms of CBA.
organization, its officers, agents or
a. Restrain or coerce employees in the
exercise of their right to self-organization;
b. Cause or attempt to cause an employer
to discriminate an employee;
c. Violate the duty or refuse to bargain
collectively with the employer;
d. An employer to pay or deliver any money
or other things of value, in the nature of
an exaction, for services which are not
performed or not to be performed;
e. Ask for negotiation or attorney‘s fees
from employers as part of the settlement
of any issue in collective bargaining or
any other dispute; or
f. Violation of the CBA

6
30. Distinguish the peaceful concerted activities (strike, picketing, and lockout) from each
other.

STRIKE PICKETING LOCKOUT

Definition

It is the temporary stoppage of It is the act of workers in It is the temporary refusal of an

work by the concerted action of
employees as a result of an
industrial or labor dispute. (Art.
219(o), Labor Code as amended)
peacefully marching to and fro employer to furnish work as a
before an establishment result of an industrial or labor
involved in a labor dispute dispute. (Art. 219(p), Labor Code as
generally accompanied by the amended)
carrying and display of signs,
placards and banners intended
to inform the public about the
dispute. (Chan, Last-Minute Notes for
the 2022 Bar Exam in Labor Law, p. 64)

Who may declare

Employees/Workers Employer

Requisites for validity

The grounds are: There is valid lawful picketing A lockout must be based on any
a. ULP of the employer under when: or both of the following two (2)
Art. 259 of the Labor Code a. The picket should be exclusive grounds:
as amended (Political peacefully carried out; a. ULP of the labor
Strike); and/or b. There should be no act of organization under Art. 260
b. Collective bargaining violence, coercion or of the Labor Code as
deadlock (Economic intimidation attendant amended (political);
Strike); thereto; b. Collective bargaining
c. The ingress to or egress deadlock (economic). (Sec.
A strike not based on any of from the company 5, Rule XXII, D.O. No. 40-03, as
amended)
these two grounds is illegal premises should not be
(Chan, Bar Reviewer on Labor Law, obstructed; and
2019, p. 563).
d. Public thoroughfares
should not be impeded.
(Chan, Last-Minute Notes for the
2022 Bar Exam in Labor Law, p.
64)

NOTE: The requisites for a valid

strike are not applicable to
picketing (Ibid.)

Illegal activities

All the foregoing requisites in the No person engaged in picketing All the foregoing requisites in the
mandatory procedural shall: mandatory procedural
requirement for a valid strike, 1. Commit any act of violence, requirement for a valid lockout,
although procedural in nature, coercion or intimidation or although procedural in nature,
are mandatory and failure of a 2. Obstruct the free ingress to are mandatory and failure of an
union to comply therewith would or egress from the employer to comply therewith
render a strike illegal. (Chan, Bar employer’s premises for would render lockout illegal.
Reviewer on Labor Law, 2019, p. 562) lawful purposes, or (Chan, Bar Reviewer on Labor Law,
2019, p. 562)
3. Obstruct public
A strike that is neither based on thoroughfares. (Art. 279(e),
two valid grounds is considered Labor Code as amended)
illegal. Therefore, the following
are not valid grounds:
1. Violations of CBAs;
2. Inter-union and intra-union
disputes;
3. Issues brought to voluntary
or compulsory arbitration;

7
 STRIKE PICKETING LOCKOUT

4. Legislated wage orders;

and
5. Labor standard cases (Id., p.
563)

Effect of injunction

Valid strikes enjoy the protection Injunction cannot be issued Valid lockouts enjoy the
of the law and cannot be against the conduct of picketing protection of the law and cannot
enjoined. of workers because it is be enjoined.
considered as part of the
Injunction will issue when illegal Freedom of Speech. Injunction will issue when illegal
acts are committed or acts are committed or
threatened to be committed in But the NLRC may enjoin the threatened to be committed in
the course thereof. (San Miguel picketing under the following the course thereof. (San Miguel
Corporation vs. NLRC, G.R. No. 119293, circumstances: Corporation vs. NLRC, G.R. No. 119293,
June 10, 2003) June 10, 2003)
1. Where picketing is carried
out through the use of
illegal means;
2. Where picketing involves
the use of violence and
other illegal acts;
3. Where picketing affects the
rights of third parties and
injunction becomes
necessary to protect such
rights. (Chan, Bar Reviewer on
Labor Law, 2019, p. 618-619)

8
31. Differentiate the procedural requirements of strike and lockout.

STRIKE LOCKOUT

1. It must be based on any or both of the
following two (2) exclusive grounds:
a. ULP of the employer under Art. 259 of
the Labor Code as amended;
b. Collective bargaining deadlock
2. Notice of strike must be filed with the
NCMB-DOLE;
3. Notice of strike vote which must be served
to the NCMB-DOLE at least twenty-four
(24) hours prior to the taking of the strike
vote by secret balloting, informing said
office of the decision to conduct a strike
vote, and the date, place, and time
thereof;
4. A strike vote must be taken where a
majority of the members of the union
obtained by secret ballot in a meeting
called for the purpose, must approve it;
5. A strike vote report should be submitted
to the NCMB-DOLE at least seven (7) days
before the intended date of the strike;
6. Except in cases of union-busting, the
cooling-off period should be fully
observed.
a. ULP of the employer – 15 days; or
b. Collective bargaining deadlock – 30
days;
7. The 7-day waiting period/strike ban
reckoned after the submission of the
strike vote report to the NCMB-DOLE
should also be fully observed in all cases.
1. It must be based on any or both of the
following two (2) exclusive grounds:
a. ULP of the labor organization under Art.
260 of the Labor Code as amended;
b. Collective bargaining deadlock
2. A notice of lockout must be filed with the
NCMB-DOLE at least 15 days before the
intended date of the strike or lockout;
3. A notice must be served to the NCMB-DOLE at
least 24 hours prior to the taking of the lockout
vote by secret balloting, informing said office
of the decision to conduct a lockout vote, and
the date, place, and time thereof;
4. A lockout must be approved by a majority vote
of the members of the Board of Directors of the
corporation or association, and such vote must
be obtained by a secret ballot in a meeting
called for that purpose;
5. A lockout vote report should be submitted to
the NCMB-DOLE at least seven days before the
intended date of the lockout;
6. The cooling-off period should be fully
observed.
a. ULP of the labor organization – 15 days; or
b. Collective bargaining deadlock – 30 days;
7. The 7-day waiting period/lockout ban reckoned
after the submission of the lockout vote report
to the NCMB-DOLE should also be observed in
all cases (Chan, Bar Reviewer on Labor Law, 2019, pp.
597-598)

32. May a notice of strike on the ground of ULP, filed on the same day of the strike, be
considered substantial compliance with the procedural requirements of strike?

No. In a strike grounded on unfair labor practice, the following are the requirements: (1) the strike
may be declared by the duly certified bargaining agent or legitimate labor organization; (2) the conduct
of the strike vote in accordance with the notice and reportorial requirements to the NCMB and subject
to the seven-day waiting period; (3) notice of strike filed with the NCMB and copy furnished to the
employer, subject to the 15-day cooling-off period. This cannot be considered as compliance with the
requirement, as the cooling-off period is mandatory (Bigg’s Inc. vs. Boncacas, G.R. No. 200487, March 6, 2019, J.
Caguioa).

9
 VI. TERMINATION OF EMPLOYMENT

33. What is the nature of liability in Legitimate subcontracting versus Labor-Only

Contracting?

LEGITIMATE SUB- LABOR-ONLY CONTRACTING

CONTRACTING

Solidary Liability on the part of the The Principal becomes solidary liable
principal and the contractor for with the contractor not only for unpaid
purposes of enforcing the provisions wages, but also for all the rightful
of the LC and other Social claims of the employees under the LC
NATURE OF Legislations to the extent of the and ancillary laws. (SMC vs. MAERC
LIABILITY work performed in the employment Integrated Services Inc., G.R. No. 144672, July
10, 2003)
contract in the event of:
a. Violation of any provision
of the LC;
b. Failure to pay wages. (D.O.
No. 174-17, Sec. 9)

34. What are the Just Causes and Authorized Causes for the termination of employment?

Just Causes Authorized Causes

1. Serious misconduct; 1. Installation of labor-saving device or

2. Insubordination or Willful disobedience by automation;
the employee of the lawful order of his 2. Redundancy;
employer or representative in connection 3. Retrenchment prevent losses
with his work; (Downsizing);
3. Gross and habitual neglect by the 4. closure or cessation of operation of the
employee of his duties; establishment or undertaking (Art. 298,
4. Abandonment of Work; · Labor Code, as amended); and
5. fraud or willful breach by the employee of 5. Disease (Art. 299, Labor Code, as amended).
the trust reposed in him by his employer
or his duly authorized representative;
6. employer or any immediate member of
his family or his duly authorized
representative;
7. Other causes Analogous to the foregoing
(Art. 297, Labor Code, as amended).

35. Art. 301 of the Labor code provides that the bona fide suspension of operation of a business
or undertaking should not exceed 6 months. When does this rule apply?

1. Traditionally, to security guards who are temporarily sidelined from duty while waiting to be
transferred or assigned to a new post or client (Nippon Housing Phil., Inc., vs. Leynes, G.R. No, 177816, August
3, 2011); and
2. To other industries when, as a consequence of the bona fide suspension of the operation of a
business or undertaking, an employer is constrained to put employees on a "floating status for a
period not exceeding 6 months (JPL Marketing Promotions vs. CA, G.R. No. 151966, July 8, 2005).

36. Explain the Twin-notice rule

a. The first 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 within a reasonable period, construed as five (5) days from receipt
of notice.
b. After serving the first notice, the employers should schedule and conduct a hearing or conference
wherein the employees will be given the opportunity to: (1) explain and clarify their defenses to
the charge against them; (2) present evidence in support of their defenses; and (3) rebut the
evidence presented against them by the management.
c. After determining that termination of employment is justified, the employers shall serve the
employees a written notice of termination indicating that: (1) all circumstances involving the charge

10
 against the employees have been considered; and (2) grounds have been established to justify the
severance of their employment. (King of Kings vs. Mamac, G.R. No. 166208, June 29, 2007).

37. Distinguish between voluntary resignation and constructive dismissal.

VOLUNTARY RESIGNATION CONSTRUCTIVE DISMISSAL

DEFINITION
Is the voluntary act of an employee who is in a
situation where one believes that personal
reasons cannot be sacrificed in favor of the
exigency of service, and one has no choice but
to dissociate oneself from employment (Pascua vs.
Bank Wise, Inc., G.R. No. 191460, January 31, 2018)
Cessation of work because continued
employment is rendered impossible,
unreasonable or unlikely, as an offer involving
a demotion in rank or a diminution in pay ’and
other benefits. It may exist if an act of clear
discrimination, insensibility, or disdain by an
employer becomes so unbearable on the part
of the employee that it could foreclose any
choice by him except to forego his continued
employment (Que vs. Asia Brewery Inc. G.R. No.
202388, April 10, 2019, J. Caguioa).

VOLUNTARINESS

The act is voluntary The act is merely disguised as a voluntary act

of resignation

38. Explain the reliefs awarded to an illegally dismissed employee.

Reinstatement Backwages Damages Attorney’s Fees

a. Restores the refer to the indemnity The employer is liable In its extraordinary
employee who given to an employee for moral damages concept, attorney’s fees
was unjustly who has been under the provisions of are deemed indemnity
dismissed; unjustly dismissed Art. 2220 of the Civil for damages ordered by
b. To the position to from work, and Code providing for the court to be paid by
which he/she was presupposes illegal damages for “breaches the losing party to the
removed; termination. (Davao of contract” where the winning party. In its
c. That is to his/her Free Workers Front vs. CIR, employer acted ordinary concept, an
G.R. No. L- 29356, October
status quo ante fraudulently or in bad attorney’s fee is the
31, 1974)
dismissal. (Santos faith. However, reasonable
vs. NLRC, G.R. No. Exemplary damages compensation paid to a
76721, September 21,
1987)
may be awarded only if lawyer by his client for
the dismissal was the legal services the
Note: Where the shown to have been former renders;
parties already have affected in the wanton compensation is paid
strained relations, oppressive and for the cost and/or
separation pay in lieu malevolent manner. results of legal services
(NBS, Inc. vs. CA Special per agreement or as
of reinstatement may Eighth Division, et al., G.R.
be awarded. (Citytrust No. 146741, February 27,
may be assessed.
(Tangga-an vs.
Finance Corp. vs. NLRC, et 2002)
PhilTransmarine, G.R. No.
al., G.R. 75740, January
180636, March 13, 2013)
15, 1988; Commercial
Motors Corp. v, NLRC,
supra). Note: shall Attorney’s
fees in any judicial or
administrative
proceedings for the
recovery of wages shall
not exceed 10% of the
amount awarded (Art.
111, Labor Code, as
amended).

11
 VII. MANAGEMENT PREROGATIVE

39. When is bonus demandable and enforceable?

1. If it emanates from a contract or CBA (Liberation Steamship Co. vs. CIR, G.R. No. L-25389, June 27, 1968)
2. When it is given on account of company policy or practice (Manila Electric Company vs. Secretary of Labor,
G.R. No. 127598, January 27, 1999)
3. When it is made part of the wages; if given without any condition, whether or not profits are
realized (Metro Transit Organizations, Inc. vs. NLRC, G.R. No. 116008, July 11, 1995)
4. When the grant is mandated by law (Ungos III, Labor Law 3: The Fundamentals of Labor Law Review, 2021, p.
175-176)

40. What are Bona Fide occupational qualifications (BFOQ)?

BFOQ refers to the standards which employers are allowed to consider in making decisions about hiring
or retention of employees (Ungos III, Labor Law 3: The Fundamentals of Labor Law Review, 2021, p. 490). Employment
may be limited to a particular class if the employer can show that sex, religion or national origin is an
actual qualification for performing the job (Ysaruegui vs. Philippine Airlines, Inc. G.R. No. 168081, October 17, 2008).

41. Contrast a valid and an invalid instance of BFOQ?

Valid Invalid

A company policy prohibiting its employees
from marrying employees of a rival company
is reasonable as a company has a right to
protect its interests against possible
competitor infiltration. It has the right to
guard its trade secrets from marital or
personal relationships which might
compromise said interests (Duncan Association of
Detailman-PTGWTO vs. Glaxo Wellcome Philippines, Inc.,
G.R. No. 162994, September 17, 2004).
The validity of an employment policy specifically
prohibiting spouses from working for the same
company should be tested along the “reasonable
business necessity rule.” The failure to prove a
legitimate business concern in imposing the
questioned policy cannot prejudice the
employee’s right to be free from arbitrary
discrimination based upon stereotypes of married
persons working together in one company (Star
Paper Corporation vs. Simbol, G.R. No. 164774, April 12, 2006)

42. Are the imposition of disciplinary sanctions within the purview of management
prerogative?

Yes, an employer has a free reign and enjoys wide latitude of discretion to regulate all aspects of
employment, including the prerogative to instill discipline in its employees and to impose penalties,
including dismissal, upon erring employees (The Heritage Hotel, Manila vs. Lilian Sio, G.R. No. 217896, June 26 2019,
J. Caguioa).

43. What are the requisites of a valid quitclaim?

1. a fixed amount as full and final compromise settlement;

2. the benefits of the employees if possible with the corresponding amounts, which the employees
are giving up in consideration of the fixed compromise amount;
3. a statement that the employer has clearly explained to the employees in English, Filipino, or in the
dialect known to the employees and that by signing the waiver or quitclaim, they are forfeiting or
relinquishing their right to receive the benefits which are due them under the law, and
4. a statement that the employees signed and executed the document voluntarily and had fully
understood the contents of the document and that their consent was freely given without any
threat, violence, intimidation, or undue influence exerted on their person. (Carolina’s Lace Shoppe vs.
Maquilan, G.R. No. 219419, April 10, 2019)

12
 VIII. JURISDICTION AND RELIEFS

44. What are the labor disputes covered by the Single-Entry Approach (SENA)? What are not
covered?

Covered Not Covered

a. Termination or suspension of employment a. Cases on Notices of Strikes or Lockouts, or

issues; on Preventive Mediation cases (NCMB);
b. Claims for any sum of money, regardless of b. Interpretation and Implementation of CBA
amount; (Grievance Machinery)
c. Intra-union and Inter-union issues, after
exhaustion of administrative remedies;
d. ULPs;
e. Closures, retrenchments, redundancies,
temporary lay-offs;
f. OFW cases;
g. Any other claims or issues arising from
Employer-Employee Relationship, except
for Occupational Safety and Health
Standards, involving imminent danger
situation, danger occurrences or disabling
injury, and/or Absence of Personal
Protective Equipment

45. May an employer recover the backwages given to an illegally dismissed employee pursuant
to the LA’s decision pending appeal should the NLRC eventually reverse the ruling?

No. A reinstated employee need not refund the backwages and other benefits paid pursuant to an
order of reinstatement by the Labor Arbiter. The rationale is to help the employee make both ends
meet during the pendency of the appeal, and to prevent a situation where the dismissed employee will
not spend the reinstatement wages for fear of refunding the same if the decision of the Labor Arbiter
is subsequently reversed (Garcia vs. Philippine Airlines, Inc., G.R. No. 164856, January 20, 2009).

46. Is the requirement of posting an appeal bond to perfect an appeal before the NLRC
absolute?

No. The rule on a requirement of an appeal bond cannot operate in a vacuum. When the law does not
clearly provide a rule or norm for the tribunal to follow in deciding a question submitted but leaves to
the tribunal the discretion to determine the case in one way or another, the judge must decide the
question in conformity with justice, reason and equity, in view of the circumstances of the case. Here,
there seems to be an absence of rule or norm to follow on whether to require an appeal bond when
the appealing employer is subject of involuntary liquidation proceedings. But the NLRC, mandated to
act with justice, reason and equity, should have allowed the appeal and ruled on the merits considering
the circumstances of the case (Karj Global Marketing Network, Inc., vs. Miguel P. Mara, G.R. No. 190654, July 28, 2020,
J. Caguioa)

47. What is the period to appeal the decisions or awards of the Voluntary Arbitrators?

The 10-day period stated in Article 276 should be understood as the period within which the party
adversely affected by the ruling of the Voluntary Arbitrators or Panel of Arbitrators may file a motion
for reconsideration. Only after the resolution of the motion for reconsideration may the aggrieved party
appeal to the CA by filing the petition for review under Rule 43 of the Rules of Court within 15 days
from notice pursuant to Section 4 of Rule 43. (Guagua National Colleges vs. Guagua National Colleges Faculty Labor
Union, 796 SCRA 609, G.R. No. 204693, July 13, 2016)

48. What are the instances when the NCMB has the authority to convert a notice of
strike/lockout into a preventive mediation case?

a. when the issues raised in the notice of strike/lockout are not strikeable in character;
b. when the party which filed the notice of strike/lockout voluntarily asks for the conversion;
c. when both parties to a labor dispute mutually agree to have it subjected to preventive mediation
proceeding (Chan, Bar Reviewer on Labor Law, 4th Revised Edition, 2019, p. 940)

13
49. What is the difference between a conciliation and a preventive mediation case?

Conciliation Case Preventive Mediation Case

Refers to actual existing labor disputes Refers to the potential labor disputes which are
subject to a notice of strike or lockout and the subject of a formal or informal request for
cases of actual strike or lockout (NCMB Manual conciliation and mediation assistance sought by
of Procedures, Rule III, Section 1 (3)) either or both parties or upon the initiative of the
NCMB to avoid the occurrence of actual labor
disputes (NCMB Manual of Procedures, Rule III, Section 1
(20)).

50. What is the period to appeal the decisions of the POEA?

The aggrieved party may appeal to the DOLE Secretary within 15 calendar days from receipt of a copy
of the decision (Section. 185, Rule VII, Revised POEA Rules and Regulations Governing the Recruitment and Employment
of Land based Overseas Filipino Workers of 2016)

51. What are the prescriptive periods for labor actions?

Subject Matter Prescriptive Period

Purely money claims arising Within three (3) years from the time the cause of action
from employer-employee accrued (Art. 306 [291], Labor Code)
relationship

Illegal dismissal cases Four (4) years (Art. 1146, NCC)

Unfair labor practice cases One (1) year from accrual of such unfair labor
practice (Art. 305 [290], Labor Code)

Offenses penalized under the Three (3) years from the commission (Art. 305 [290], Labor
Labor Code and its IRR Code)

Reinstatement Four (4) years

Illegal recruitment Five (5) years

Twenty (20) years for economic sabotage

Criminal cases under the Labor Three (3) years

Code
Except:
1. Unfair labor practice – 1 year
2. Simple illegal recruitment – 5 years
3. Syndicated illegal recruitment – 20 years
4. Large scale illegal recruitment – 20 years
5. Criminal aspect in Social Security Law – 4 years

HAIL TO THE CHIEFS!

14