U.P.
LAW BOC
4. Money Claims arising from Employer-
Employee Relationship ............................ 121
5. When Not Deemed Dismissed; Employee on
Floating Status ........................................ 123
C. TERMINATION BY EMPLOYEE ........... 124
1. With notice to the employer .............. 124
2. Without notice to the employer ......... 124
3. Distinguish voluntary resignation and
constructive dismissal ............................. 124
D. RETIREMENT ....................................... 125
1. Eligibility and Coverage .................... 125
2. Amount of Retirement Pay ................ 126
3. Retirement Benefits for Workers Paid by
Results .................................................... 127
4. Retirement Benefit of Part-Time Workers
.......................................................... 127
5. Non-Taxable ..................................... 127
LABOR LAW 2 ...................................................... 129
V. LABOR RELATIONS ................................ 130
A. RIGHT TO SELF-ORGANIZATION ...... 130
1. Who May or May Not Exercise the Right
.......................................................... 130
2. Commingling or Mixture of Membership .
.......................................................... 134
3. Rights and Conditions of Membership ....
.......................................................... 134
B. BARGAINING UNIT .............................. 137
C. BARGAINING REPRESENTATIVE ...... 140
D. RIGHTS OF LABOR ORGANIZATIONS
158
1. Check off, Assessment, Agency Fees
158
2. Collective Bargaining ........................ 160
E. UNFAIR LABOR PRACTICES .............. 169
1. Nature, Aspects ................................ 169
2. By Employers .................................... 170
3. By Labor Organizations .................... 176
F. PEACEFUL CONCERTED ACTIVITIES178
1. By Labor Organization ...................... 178
2. By Employer ..................................... 188
3. Assumption of Jurisdiction by Secretary
of Labor and Employment ............................. 189
VI. MANAGEMENT PREROGATIVE ............. 191
A. DISCIPLINE .......................................... 192
B. TRANSFER OF EMPLOYEES ............. 193
C. PRODUCTIVITY STANDARDS ............ 194
D. BONUS ................................................. 194
E. CHANGE OF WORKING HOURS ........ 194
LABOR LAW
F. BONA FIDE OCCUPATIONAL
QUALIFICATIONS ............................................. 195
G. POST-EMPLOYMENT RESTRICTIONS ....
.............................................................. 195
H. MARRIAGE BETWEEN EMPLOYEES OF
COMPETITOR-EMPLOYERS ................. 195
VII. SOCIAL LEGISLATION ............................ 196
A. SOCIAL SECURITY SYSTEM LAW ..... 196
1. Coverage and Exclusions ................. 196
2. Dependents and Beneficiaries .......... 197
3. Benefits ............................................. 197
B. GOVERNMENT SERVICE INSURANCE
SYSTEM LAW ................................................... 200
1. Coverage and Exclusions ................. 200
2. Dependents and Beneficiaries .......... 201
3. Benefits ............................................. 201
C. LIMITED PORTABILITY LAW ............... 206
D. DISABILITY AND DEATH BENEFITS .. 208
1. Labor Code ....................................... 208
2. Employees Compensation and State
Insurance Fund ........................................ 213
3. Philippine Overseas Employment
Administration-Standard Employment
Contract ................................................... 215
E. SOLO PARENTS .................................. 218
F. KASAMBAHAY ..................................... 219
G. AGRARIAN RELATIONS ...................... 219
1. Concept of Agrarian Reform ............. 219
2. Existence and Concept of Agricultural
Tenancy ................................................... 219
3. Rights of Agricultural Tenants ........... 220
4. Concept of Farmworkers ................... 221
H. UNIVERSAL HEALTH CARE ................ 222
1. Policy ................................................ 222
2. Coverage .......................................... 222
3. National Health Insurance Program .. 223
VIII. JURISDICTION AND REMEDIES ........ 224
A. LABOR ARBITER ................................. 224
1. Jurisdiction of the Labor Arbiter as
distinguished from the Regional Director . 224
2. Requirements to perfect appeal to National
Labor Relations Commission ................... 225
3. Reinstatement and/or execution pending
appeal ...................................................... 226
B. NATIONAL LABOR RELATIONS COMMISSION
226
1. Jurisdiction/Powers ........................... 226
2. Remedies .......................................... 227
 U.P. LAW BOC LABOR LAW

C. COURT OF APPEALS .......................... 229

D. SUPREME COURT .............................. 230
E. BUREAU OF LABOR RELATIONS ...... 230
1. Jurisdiction ........................................ 230
2. Appeals ............................................. 232
3. Administrative Functions of the BLR . 232
F. NATIONAL CONCILIATION AND MEDIATION
BOARD .......................................................... 232
1. Jurisdiction ........................................ 232
2. Conciliation as distinguished from mediation
233
3. Preventive mediation ........................ 234
G. DEPARTMENT OF LABOR AND
EMPLOYMENT REGIONAL DIRECTORS ... 234
1. Jurisdiction ........................................ 234
2. Recovery and adjudicatory power .... 235
H. DEPARTMENT OF LABOR AND
EMPLOYMENT SECRETARY ...................... 236
1. Jurisdiction ........................................ 236
2. Visitorial and enforcement powers .... 243
3. Power to suspend effects of termination .
.......................................................... 244
4. Remedies .......................................... 244
I. VOLUNTARY ARBITRATOR .................... 244
1. Jurisdiction ........................................ 245
2. Remedies .......................................... 247
J. PRESCRIPTION OF ACTIONS ................ 248
1. Money claims .................................... 248
2. Illegal dismissal ................................. 248
3. Unfair labor practice .......................... 248
4. Offenses under the Labor Code ....... 249
5. Illegal recruitment ............................. 249
LAWS AND RULES OF PROCEDURE ................ 249
U.P. LAW BOC LABOR 2 LABOR LAW

LABOR LAW 2
LABOR LAW

Page 129 of 262

U.P. LAW BOC LABOR 2 LABOR LAW

American Employees Association, G.R.

V. LABOR RELATIONS No. L-25094 (1969)]
6. Recognition of the tenets of the sect should
not infringe on the basic right of self-
A. RIGHT TO SELF- organization granted by the [C]onstitution
ORGANIZATION to workers, regardless of religious
affiliation. [Kapatiran sa Meat and Canning
Division v. Calleja, G.R. No. 82914 (1988)]
Right to Self-Organization: A Fundamental
Right 1. Who May or May Not Exercise the
Self-organization is a fundamental right
guaranteed by the Philippine Constitution and
Right
the Labor Code. Employees have the right to
a. All employees
form, join or assist labor organizations for the
b. Government employees of corporations
purpose of collective bargaining or for their
created under the Corporation Code
mutual aid and protection. [UST Faculty Union
c. Supervisory Employees
v. Bitonio, G.R. No. 131235 (1999)]
d. Aliens with valid working permits
e. Security personnel
Infringement of the right to self-
organization
(a) All Employees
It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere
All persons employed in commercial, industrial
with employees and workers in their exercise
and agricultural enterprises and in religious,
of the right to self-organization [Art. 257]
charitable, medical or educational institutions,
whether operating for profit or not, shall have
Scope of right to self-organization
the right to self-organization and to form, join or
1. Right to form, join or assist labor
assist labor organizations of their own
organizations of their own choosing for the
choosing for purposes of collective bargaining.
purpose of collective bargaining through
(Presumes an employer-employee
representatives of their own choosing [Art.
relationship)
257];
2. Right to engage in lawful concerted
Ambulant, intermittent and itinerant workers,
activities for the same purpose (collective
self-employed people, rural workers and those
bargaining) or for their mutual aid and
without any definite employers may form labor
protection [Art. 257]
organizations for their mutual aid and
3. The right of any person to join an
protection. [Art. 253]
organization also includes the right to leave
that organization and join another one.
Any employee, whether employed for a definite
[Heritage Hotel Manila v. PIGLAS-
period or not, shall, beginning on his first day of
Heritage, G.R. No. 177024 (2009)]
service, be considered an employee for
4. The right to form or join a labor organization
purposes of membership in any labor union.
necessarily includes the right to refuse or
[Art. 292(c)]
refrain from exercising said right. [Reyes v.
Trajano, G.R. No. 84433 (1992)]
Employee […] shall include any individual
5. The freedom to form organizations would
whose work has ceased as a result of or in
be rendered nugatory if they could not
connection with any current labor dispute or
choose their own leaders to speak on their
because of any unfair labor practice if he has
behalf and to bargain for them. [Pan-
not obtained any other substantially equivalent
American World Airways, Inc v. Pan-
and regular employment. [Art. 219(f)]

Page 130 of 262

U.P. LAW BOC LABOR 2
Employees of non-profit organizations are now
permitted to form, organize or join labor unions
of their choice for purposes of collective
bargaining [FEU-Dr. Nicanor Reyes Medical
Foundation Inc. v. Trajano, G.R. No. 76273
(1987)]
(b) Government employees of corporations
created under the Corporation Code
The right to self-organization shall not be
denied to government employees. [Sec. 2(5),
Art. IX-B, Constitution]
Employees of government corporations
established under the Corporation Code shall
have the right to organize and to bargain
collectively with their respective employers
All other employees in the civil service shall
have the right to form associations for
purposes not contrary to law. [Art. 254]
All government employees can form, join or
assist employees’ organizations of their own
choosing for the furtherance and protection of
their interests. They can also form, in
conjunction with appropriate government
authorities, labor-management committees,
work councils and other forms of workers’
participation schemes to achieve the same
objectives. [E.O. 180, Sec. 2 (1987)]
(c) Supervisory Employees
Supervisory employees are those who, in the
interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely
routinary or clerical in nature but requires the
use of independent judgment. [Art. 219(m)]
What is essential is the nature of the
employee’s function and not the nomenclature
or title given to the job which determines
whether the employee has rank-and-file or
managerial status or whether he is a
supervisory employee. [Tagaytay Highlands
International Golf Club, Inc. v. Tagaytay
Highlands Employees Union-PTGWO, G.R.
142000 (2003)]
Page 131 of 262
LABOR LAW
(d) Aliens with valid working permits
General Rule: All aliens, natural or juridical,
[…] are strictly prohibited from engaging
directly or indirectly in all forms of trade union
activities. [Art. 284]
Exception: Aliens may exercise the right to
self-organization and join or assist labor unions
for purposes of collective bargaining, provided
the following requisites are fulfilled:
1. With valid working permits issued by the
DOLE; and
2. They are nationals of a country which
grants the same or similar rights to Filipino
workers [Art. 284]
a. As certified by DFA; OR
b. Has ratified either ILO Conventions No.
87 and 98 [Sec. 2, Rule II, Book V, IRR]
(e) Security personnel
The security guards and other personnel
employed by the security service contractor
shall have the right:
1. To form, join, or assist in the formation of a
labor organization of their own choosing for
purposes of collective bargaining and
2. To engage in concerted activities which are
not contrary to law including the right to
strike. [D.O. No. 14 Series of 2001
(Guidelines Governing the Employment
and Working Conditions of Security Guards
and Similar Personnel in the Private
Security Industry)]
On Dec. 24, 1986, President C. Aquino issued
EO No. 111 which eliminated the provision
which made security guards ineligible to join
any labor organization. In 1989, Congress
passed RA 6715 which also did not impose
limitations on the ability of security guards to
join labor organizations. Thus, security guards
“may now freely join a labor organization of the
rank-and-file or that of the supervisory union,
depending on their rank.” [Manila Electric Co.
v. SOLE, G.R. No. 91902 (1991)]
U.P. LAW BOC LABOR 2
Ineligibility of Managerial Employees;
Rights of Supervisory Employees
Managerial employees are not eligible to join,
assist or form any labor organization. [Art. 255]
Supervisory employees shall not be eligible for
membership in the collective bargaining unit of
the rank-and-file employees but may join,
assist or form separate collective bargaining
units and/or legitimate labor organizations of
their own. The rank and file union and the
supervisors' union operating within the same
establishment may join the same federation or
national union.
Rationale: Supervisory employees, while in
the performance of supervisory functions,
become the alter ego of the management in the
making and the implementing of key decisions
at the sub-managerial level. Certainly, it would
be difficult to find unity or mutuality of interests
in a bargaining unit consisting of a mixture of
rank-and-file and supervisory employees.
[Toyota Motor Phil. Corp. v. Toyota Motor Phil.
Corp. Labor Union, G.R. No. 121084 (1997)]
Supervisor and Rank and File Union
Affiliation
The rank and file union and the supervisors’
union operating within the same establishment
may join the same federation or national union.
[Art. 255]
Note also: Prior to the enactment of RA 9481,
which inserted a new provision [Art. 245-A,
now Art. 256], the Court held in De La Salle
University v. Laguesma that a local
supervisors’ union is not allowed to affiliate with
a national federation of unions of rank and file
employees only where two conditions concur:
1. The rank-and-file employees are directly
under the authority of supervisory
employees
2. The national federation is actively involved
in union activities in the company. [De La
Salle University Medical Center and
College of Medicine v. Laguesma, G.R. No.
102084 (1998)]
Page 132 of 262
LABOR LAW
a. Doctrine of Necessary
Implication
While Art. 245 [now 255] of the Labor Code
singles out managerial employees as ineligible
to join, assist or form any labor organization,
under the doctrine of necessary implication,
confidential employees are similarly
disqualified. This doctrine states that what is
implied in a statute is as much a part thereof as
that which is expressed. [Metrolab Industries
Inc. v. Roldan-Confessor, G.R. No. 108855
(1996)]
Nature of Access Test
Confidential employees, by the nature of their
functions, assist and act in a confidential
capacity to, or have access to confidential
matters of, persons who exercise managerial
functions in the field of labor relations.
Requisites
1. The confidential relationship must exist
between the employees and his
supervisor, and
2. The supervisor must handle the prescribed
responsibilities relating to labor relations.
[San Miguel Supervisors and Exempt
Union v. Laguesma, G.R. No. 110399
(1997)]
Function Test: Nomenclature is not
controlling
The mere fact that an employee is designated
“manager” does not ipso facto make him one.
Designation should be reconciled with the
actual job description of the employee. [Paper
Industries Corp. of the Philippines. v.
Laguesma, G. R. No.101738 (2000)]
Confidential information: Must relate to
labor relations and not from a business
standpoint
An employee must assist or act in a confidential
capacity and obtain confidential information
relating to labor relations policies. Exposure to
internal business operations of the company is
not per se a ground for the exclusion in the
bargaining unit. [Coca-Cola Bottlers v. IPTEU,
G.R. No. 193798 (2015)]
U.P. LAW BOC LABOR 2
Rationale of Exclusion of Confidential
Employees
If confidential employees could unionize in
order to bargain for advantages for
themselves, then they could be governed by
their own motives rather than the interest of the
employers.
Moreover, unionization of confidential
employees for the purpose of collective
bargaining would mean the extension of the
law to persons or individuals who are supposed
to act in the interest of the employers. It is not
far-fetched that in the course of collective
bargaining, they might jeopardize that interest
which they are duty bound to protect. [Metrolab
Industries Inc. v. Roldan-Confessor, G.R. No.
108855 (1996)]
Other People Who Cannot Form, Join or
Assist Labor Organizations
(a) New Employees
[Persons who] are not employees of [a
company] are not entitled to the constitutional
right to join or form a labor organization for
purposes of collective bargaining. […] The
question of whether employer-employee
relationship exists is a primordial consideration
before extending labor benefits under the
workmen's compensation, social security,
Medicare, termination pay and labor relations
law. [Singer Sewing Machine Co. v. Drilon,
G.R. No. 91307, 1991]
But employees of the contractor can still form a
labor union; the labor union can be established
to bargain with the contractor but not with the
principal employer. [Prof. Battad]
(b) Employee-member of a Cooperative
General Rule: An employee of a cooperative
who is a member and co-owner thereof cannot
invoke the right to collective bargaining for
certainly an owner cannot bargain with himself
or his co-owners. [Batangas-I Electric
Cooperative Labor Union v. Romeo A. Young,
G.R. No. 62386 (1988)]
Page 133 of 262
LABOR LAW
Irrespective of the degree of their participation
in the actual management of the cooperative,
all members thereof cannot form, assist or join
a labor organization for the purpose of
collective bargaining. [Benguet Electric
Cooperative v. Ferrer-Calleja, G.R. No. 79025
(1989)]
Exception: Employees who withdrew their
membership from the cooperative are entitled
to form or join a labor union for the negotiations
of a Collective Bargaining Agreement. [Central
Negros Electric Cooperative, Inc. v. DOLE,
G.R. No. 94045 (1991)]
(c) Employees of International
Organizations
International organizations are endowed with
some degree of international legal personality.
They are granted jurisdictional immunity, as
provided in their organization’s constitutions, to
safeguard them from the disruption of their
functions.
Immunity […] is granted to avoid interference
by the host country in their internal workings.
The determination [by the executive branch]
has been held to be a political question
conclusive upon the Courts in order not to
embarrass a political department of
Government. [Hence], a certification election
cannot be conducted in an international
organization to which the Philippine
Government has granted immunity from local
jurisdiction. [International Catholic Migration
Commission v. Calleja, G.R. No. 85750 (1990)]
(d) Members of the AFP, Policemen, Police
Officers, Firemen, and Jail Guards
Members of the AFP, Policemen, Police
Officers, Firemen and Jail Guards are
expressly excluded by EO 180, Sec. 4 from the
coverage of the EO 180 which provides
guidelines for the exercise of the right to
organize of government employees.
SUMMARY - Who Cannot Form, Join or
Assist Labor Organizations
a. Managerial employees
U.P. LAW BOC LABOR 2
b. Confidential employees
c. Non-employees
d. Member-employee of a cooperative
e. Employees of international organizations
f. High-level government employees
g. Members of the AFP, police officers,
policemen, firemen and jail guards
2. Commingling or Mixture of
Membership
Effect of Inclusion of Employees Outside
the Bargaining Unit or Commingling
General Rule: It shall not be a ground for the
cancellation of the registration of the union.
Said employees are automatically deemed
removed from the list of membership of said
union. [Art. 256]
Exception: Unless such mingling was brought
about by misrepresentation, false statement or
fraud under Art. 247 (Grounds for cancellation
of Union Registration) of the Labor Code.
[SMCC-Super v. Charter Chemical and
Coating Corporation, G.R. No. 169717 (2011)]
3. Rights and Conditions of
Membership
a. Nature of Relationship
i. Member-Labor Union
The nature of the relationship between the
union and its members is fiduciary in nature,
which arises from the dependence of the
employee on the union, and from the
comprehensive power vested in the union with
respect to the individual. The union may be
considered but the agent of its members for the
purpose of securing for them fair and just
wages and good working conditions. [Heirs of
Cruz v. CIR, G.R. No. L-23331-32 (1969)]
Admission and Discipline of Members
No arbitrary or excessive initiation fees or fines.
No arbitrary or excessive initiation fees shall be
required of the members of a legitimate labor
organization nor shall arbitrary, excessive or
Page 134 of 262
LABOR LAW
oppressive fine and forfeiture be imposed. [Art.
250(e)]
Prohibition on subversive activities or
membership
No labor organization shall knowingly admit as
members or continue in membership any
individual who:
1. Belongs to a subversive organization; or
2. Who is engaged directly or indirectly in any
subversive activity;
Unions cannot arbitrarily exclude qualified
applicants
Unions are not entitled to arbitrarily exclude
qualified applicants for membership, and a
closed­shop provision would not justify the
employer in discharging, or a union in insisting
upon the discharge of, an employee whom the
union thus refuses to admit to membership,
without any reasonable ground therefor.
Needless to say, if said unions may be
compelled to admit new members, who have
the requisite qualifications, with more reason
may the law and the courts exercise the
coercive power when the employee involved is
a long-standing union member, who, owing to
provocations of union officers, was impelled to
tender his resignation which he forthwith
withdrew or revoked. [Salunga v. CIR, G.R.
No. L-22456 (1967)]
Members who seek destruction of union
lose right to remain as members
Inherent in every labor union, or any
organization for that matter, is the right of self-
preservation. When members of a labor union,
therefore, sow the seeds of dissension and
strife within the union; when they seek the
disintegration and destruction of the very union
to which they belong, they thereby forfeit their
rights to remain as members of the union which
they seek to destroy. [Villar v. Inciong, G.R. No.
L-50283-84 (1983)]
ii. Labor Union-Federation
Local unions do not owe their creation and
existence to the national federation to which
they are affiliated but, instead, to the will of their
members, […] The local unions remain the
U.P. LAW BOC LABOR 2
basic units of association, free to serve their
own interests subject to the restraints imposed
by the constitution and by-laws of the national
federation, and free also to renounce the
affiliation upon the terms laid down in the
agreement which brought such affiliation into
existence. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
Union Chartering
Affiliate
An independent union affiliated with a
federated, national union or a chartered local
which was subsequently granted independent
registration but did not disaffiliate from its
federation, reported to the Regional Office and
the Bureau in accordance with Rule III, Secs. 6
and 7 [Sec. 1(b), Rule I, Book V, IRR]
Independent Union
A labor organization operating at the enterprise
level that acquired legal personality through
independent registration under Art. 234 of the
Labor Code and Rule III, Sec. 2-A [Sec. 1(x),
Rule I, Book V]
National Union or Federation
A group of legitimate labor unions in a private
establishment organized for collective
bargaining or for dealing with employers
concerning terms and conditions of
employment for their member union or for
participating in the formulation of social and
employment policies, standards and programs,
registered with the BLR in accordance with
Rule III Sec. 2-B [Sec. 1(ll), Rule I, Book V,
IRR]
Chartered Local (Local Chapter)
A labor organization in the private sector
operating at the enterprise level that acquired
legal personality through registration with
Regional Office [Sec. 1(j), Rule I, Book V, IRR]
A duly registered federation or national union
may directly create a local chapter by issuing a
charter certificate indicating the establishment
of the local chapter. The chapter shall acquire
legal personality only for purposes of filing a
petition for certification election from the date it
was issued a charter certificate.
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LABOR LAW
The chapter shall be entitled to all other rights
and privileges of a legitimate labor organization
only upon the submission of the following
documents in addition to its charter certificate:
1. The names of the chapter's officers, their
addresses, and the principal office of the
chapter; and
2. The chapter's constitution and by-laws:
Provided, That where the chapter's
constitution and by-laws are the same as
that of the federation or the national union,
this fact shall be indicated accordingly.
The additional supporting requirements shall
be:
1. Certified under oath by:
a. Secretary; or
b. Treasurer
2. Attested by: Its president [Art. 241]
Lesser requirements for Chartered locals
The intent of the law in imposing less
requirements in the case of a branch or local of
a registered federation or national union is to
encourage the affiliation of a local union with a
federation or national union in order to increase
the local unions’ bargaining powers respecting
terms and conditions of labor. [SMCEU-
PTGWO v. SMPEU-PDMP, G.R. No. 171153
(2007)]
Trade Union Centers cannot create locals
or chapters
Art. 241 mentions only “a duly registered
federation or national union.”
The solemn power and duty of the Court to
interpret and apply the law does not include the
power to correct by reading into the law what is
not written therein. [SMCEU-PTGWO v.
SMPEU-PDMP, G.R. No. 171153 (2007)]
National Union or Federation v. Trade
Unions
National Union or
Trade Unions
Federation
With at least ten Composed of a
(10) locals or group of registered
chapters (or national unions or
independent unions federations
U.P. LAW BOC LABOR 2
[Sec. 2-B(5), Rule
III, Book V, IRR],
each of which must
be a duly
recognized
collective bargaining
agent [Art. 244]
Can directly create Cannot directly
local chapter [Art. create local chapter
241] [SMCEU-PTGWO v.
SMPEU-PDMP,
G.R. No. 171153
(2007)]
Purpose of Affiliation
To foster the free and voluntary organization of
a strong and united labor movement [Art. 218-
A(c)]
The sole essence of affiliation is to increase, by
collective action, the common bargaining
power of local unions for the effective
enhancement and protection of their interests.
Admittedly, there are times when without
succor and support local unions may find it
hard, unaided by other support groups, to
secure justice for themselves. [Philippine
Skylanders, Inc. v. NLRC, G.R. No. 127374
(2002)]
Nature of Relationship: Agency
The mother union, acting for and on behalf of
its affiliate, had the status of an agent while the
local union remained the basic unit of the
association, free to serve the common interest
of all its members subject only to the restraints
imposed by the constitution and by-laws of the
association. [...] The same is true even if the
local is not a legitimate labor organization.
[Filipino Pipe and Foundry Corp v. NLRC, G.R.
No. 115180 (1998)]
Effect of Affiliation
Inclusion of [the federation’s initials] in the
registration is merely to stress that they are its
affiliates at the time of registration. It does not
mean that said local unions cannot stand on
their own. [Adamson v. CIR, G.R. No. L-35120
(1984)]
Page 136 of 262
LABOR LAW
Mere affiliation does not divest the local union
of its own personality, neither does it give the
mother federation the license to act
independently of the local union. It only gives
rise to a contract of agency, where the former
acts in representation of the latter. Hence, local
unions are considered principals while the
federation is deemed to be merely their agent.
[Insular Hotel Employees Union NFL v.
Waterfront Insular Hotel, G.R. No. 174040-41
(2010)]
(a) Disaffiliation
In the absence of specific provisions in the
federation’s constitution prohibiting
disaffiliation or the declaration of autonomy of
a local union, a local may dissociate with its
parent union. [Malayang Manggagawa sa M.
Greenfield v. Ramos, G.R. No. 113907 (2000)]
Local unions have the right to separate from
their mother federation on the ground that as
separate and voluntary associations, local
unions do not owe their creation and existence
to the national federation to which they are
affiliated but, instead, to the will of their
members. [Philippine Skylanders, Inc. v.
NLRC, G.R. No. 127374 (2002)]
A local union is free to serve the interests of all
its members, including the freedom to
disaffiliate or declare its autonomy from the
federation to which it belongs when
circumstances warrant, in accordance with the
constitutional guarantee of freedom of
association. [Malayang Samahan ng mga
Manggagawa sa M. Greenfield, Inc. v. Ramos,
G.R. No. 113907 (2000)]
Period of Disaffiliation
Generally, a labor union may disaffiliate from
the mother union to form a local or independent
union only during the 60-day freedom period
immediately preceding the expiration of the
CBA. However, even before the onset of the
freedom period, disaffiliation may be carried
out when there is a shift of allegiance on the
part of the majority of the members of the
union. [Alliance of Nationalist and Genuine
U.P. LAW BOC LABOR 2
Labor Organization v. Samahan ng mga
Manggagawang Nagkakaisa sa Manila Bay
Spinning Mills, G.R. No. 118562 (1996)]
[A] local union which has affiliated itself with a
federation is free to sever such affiliation
anytime and such disaffiliation cannot be
considered disloyalty. [Malayang Manggagawa
sa M. Greenfield v. Ramos, G.R. No. 113907
(2000)]
Effect of Disaffiliation
On legal personality
A registered independent union retains its legal
personality while a chartered local loses its
legal personality unless it registers itself.
No effect on CBA
A disaffiliation does not disturb the
enforceability and administration of a collective
agreement; it does not occasion a change of
administrators of the contract nor even an
amendment of the provisions thereof.
[Volkschel Labor Union v. BLR, No. L-45824
(1985)]
Obligation to pay union dues is
coterminous with membership
“The employees’ check-off authorization, even
if declared irrevocable, is good only as long as
they remain members of the union concerned”.
A contract between an employer and the
parent organization as bargaining agent for the
employees is terminated by the disaffiliation of
the local of which the employees are members.
[Volkschel Labor Union v. BLR, No. L-45824
(1985)]
Power to represent principal severed
By [the local union’s disaffiliation from the
federation], the vinculum that previously bound
the two entities was completely severed. [The
federation] was divested of any and all power
to act in representation of the union. Thus, any
act performed by [the federation] affecting the
interests and affairs of the [local union] is
rendered without force and effect. [ANGLO v.
Samana, G.R. No. 118562 (1996)]
(b) Substitutionary Doctrine
Page 137 of 262
LABOR LAW
The “substitutionary” doctrine provides that the
employees cannot revoke the validly executed
collective bargaining contract with their
employer by the simple expedient of changing
their bargaining agent.
It is in the light of this that the phrase “said new
agent would have to respect said contract”
must be understood. It only means that the
employees, thru their new bargaining agent,
cannot renege on their collective bargaining
contract, except of course to negotiate with
management for the shortening thereof.
[Benguet Consolidated v. BCI Employees and
Workers Union-PAFLU, G.R. No. L-24711
(1968)]
Conditions to apply the doctrine
1. Change of bargaining agent (through
affiliation, disaffiliation, or other means);
and
2. Existing CBA with the previous bargaining
agent [Benguet Consolidated v. BCI
Employees and Workers Union-PAFLU,
G.R. No. L-24711 (1998)]
Effects
1. New bargaining agent cannot revoke and
must respect the existing CBA; and
2. It may negotiate with management to
shorten the existing CBA’s lifetime.
B. BARGAINING UNIT
Definition
“Bargaining Unit” refers to a group of
employees sharing mutual interests within a
given employer unit, comprised of all or less
than all of the entire body of employees in the
employer unit or any specific occupational or
geographical grouping within such employer
unit. [Sec. 1(e), Rule I, Book V, IRR]
It is a group of employees of a given employer,
comprised of all or less than all of the entire
body of employees, which the collective
interests of all the employees indicate to be
best suited to serve reciprocal rights and duties
of the parties consistent with equity to the
U.P. LAW BOC LABOR 2
employer. [Belyca Corp. v. Calleja, G.R. No.
77395 (1988) citing Rothenberg]
Functions of an Appropriate Bargaining
Unit
1. An ELECTORAL DISTRICT. – It marks the
boundaries of those who may participate in
a certification election.
2. An ECONOMIC UNIT. – They are a group
of employees with community of interests.
3. A SOVEREIGN BODY. – It selects the sole
and exclusive bargaining agent.
Role of a bargaining unit
The labor organization designated or selected
by the majority of the employees in an
appropriate collective bargaining unit shall be
the exclusive representative of the employees
in such unit for the purpose of collective
bargaining. [Art. 267]
Right of individual or group of employees to
present grievances
An individual employee or group of employees
shall have the right at any time to present
grievances to their employer. [Art. 267]
CBA Coverage
It is a well-settled doctrine that the benefits of a
collective bargaining agreement extend to the
laborers and employees in the collective
bargaining unit, including those who do not
belong to the chosen bargaining labor
organization. [Mactan Workers Union v.
Aboitiz, G.R. No. L-30241 (1972)]
Note: An employee employed, whether for a
definite period is not, is an EE for purposes of
joining a union [Art. 292(c)]. But, whether or not
a union member, an EE part of the CBU is
entitled to CBA benefits unless excluded under
the CBA.
Effect of Prior Agreement
A prior CBA excluding a group of employees
from the bargaining unit of rank-and-file
employees does not bar the parties from
renewing the existing CBA and proposing and
discussing modifications or amendments
thereto during the freedom period. [De La Salle
Page 138 of 262
LABOR LAW
University v. DLSU Employees Association EA,
G.R. No. 109002, (2000)]
Rationale
A prior agreement as to the exclusion of
monthly-paid rank-and-file employees from the
bargaining union of the daily-paid rank-and-file
can never bind subsequent federations and
unions. as employees were not privy to that
agreement. And even if [they were privy, it can
never bind subsequent federations and unions
because it is a curtailment of the right to self­-
organization guaranteed by the labor laws
[General Rubber & Footwear Corp. v. BLR,
G.R. No. 74262 (1987)]
Corporate Entities
General Rule: Two companies having
separate juridical personalities shall NOT be
treated as a single bargaining unit. [Diatagon
Labor Federation Local v. Ople, G.R. No. L-
44493-94 (1980)]
Exception: Pervasive Unitary Aspect of
Management Doctrine
The cross-linking of the agencies’ command,
control, and communication systems indicate
their unitary corporate personality. Accordingly,
the veil of corporate fiction [...] should be lifted
for the purpose of allowing the employees of
the three agencies to form a single labor union.
A settled formulation of the doctrine of piercing
the corporate veil is that when two business
enterprises are owned, conducted, and
controlled by the same parties, both law and
equity will, when necessary to protect the rights
of third parties, disregard the legal fiction that
these two entities are distinct and treat them as
identical or as one and the same. [Ang Lee v.
Samahang Manggagawa ng Super
Lamination, G.R. No. 193816 (2016)]
Determining whether or not to establish
separate bargaining units
The fact that the businesses are related, that
some of the employees are the same persons
working in the other company and the physical
plants, offices and facilities are in the same
compound are NOT sufficient to justify piercing
the corporate veil. [Indophil Textile Mills
U.P. LAW BOC LABOR 2
Workers Union v. Calica, G.R. No. 96490
(1992)]
Spun-off corporations
The transformation of the companies is a
management prerogative and business
judgment which the courts cannot look into
unless it is contrary to law, public policy or
morals. [...] Considering the spin-offs, the
companies would consequently have their
respective and distinctive concerns in terms of
the nature of work, wages, hours of work and
other conditions of employment. [...] The nature
of their products and scales of business may
require different skills, volumes of work, and
working conditions which must necessarily be
commensurate by different compensation
packages. [San Miguel Union v. Confesor,
G.R. No. 111262 (1996)]
TEST TO DETERMINE THE CONSTITUENCY
OF AN APPROPRIATE BARGAINING UNIT –
4 Factors:
1. Will of the Employees (Globe Doctrine)
2. Affinity and unity of employees’ interest
(Substantial Mutual Interests Rule)
3. Prior collective bargaining history
4. Employment status [Democratic Labor
Association v. Cebu Stevedoring Co. Inc,
G.R. No. L-10321 (1958); University of the
Philippines v. Ferrer-Calleja, G.R. No.
96189 (1992)]
Note: Where the employment status was not at
issue but the nature of work of the employees
concerned; the Court stressed the importance
of the 2nd factor. [Belyca Corp. v. Calleja, G.R.
No. 77395 (1988)]
Other factors:
1. Geography and Location
2. Policy of avoiding fragmentation of the
bargaining unit
Globe Doctrine
A practice designated as the “Globe doctrine,”
sanctions the holding of a series of elections,
not for the purpose of allowing the group
receiving an overall majority of votes to
represent all employees, but for the specific
purpose of permitting the employees in each of
Page 139 of 262
LABOR LAW
the several categories to select the group
which each chooses as a bargaining unit.
[Kapisanan ng mga Manggagawa sa Manila
Road Co. v. Yard Crew Union, G.R. Nos. L-
16292-94 (1960)]
Rationale: Highly skilled or specialized
technical workers may choose to form their
own bargaining unit because they may be in
better position to bargain with the employer
considering the market value of their skills.
Community or Mutuality of Interests
The basic test in determining the appropriate
bargaining unit is that a unit, to be appropriate,
must affect a grouping of employees who have
substantial, mutual interests in wages, hours,
working conditions, and other subjects of
collective bargaining. [UP v. Ferrer-Calleja,
G.R. No. 96189, (1992)]
Rationale: There are greater chances of
success for the collective bargaining process.
The bargaining unit is designed to maintain the
mutuality of interest among the employees in
such unit.
When the interest between groups has
changed over time, there is reason to dissolve,
change or expand a certain bargaining unit.
Prior Collective Bargaining History
The existence of a prior collective bargaining
history is neither decisive nor conclusive in the
determination of what constitutes an
appropriate bargaining unit. [Sta. Lucia East
Commercial Corporation v. SOLE, G.R. No.
162355 (2009)]
Employment Status
Among the factors to be considered [is the]
employment status of the employees to be
affected [regular, casual, seasonal,
probationary, etc.], that is the positions and
categories of work to which they belong [....]
[Belyca Corp. v. Calleja, G.R. No. 77395
(1988)]
Geography and Location
Geography and location only play a significant
role if:
U.P. LAW BOC LABOR 2
a. The separation between the camps [...] and
the different kinds of work in each [...] all
militate in favor of the system of separate
bargaining units;
b. [When] the problems and interests of the
workers are peculiar in each camp or
department;
c. The system of having one collective
bargaining unit in each camp [...] [has
operated satisfactorily in the past.]
[Benguet Consolidated Inc. and Balatok
Mining Co. v. Bobok Lumberjack
Association, G.R. No. L-11029 (1958)]
Policy of Avoiding Fragmentation of the
Bargaining Unit
It bears noting that the goal of the DOLE is
[geared] towards “a single employer wide unit
which is more to the broader and greater
benefit of the employees working force.”
The philosophy is to avoid fragmentation of the
bargaining unit so as to strengthen the
employees’ bargaining power with the
management. To veer away from such goal
would be contrary, inimical and repugnant to
the objectives of a strong and dynamic
unionism. [Phil. Diamond Hotel and Resort Inc
v. Manila Diamond Hotel and Employees
Union, G.R. No. 158075 (2006)]
Confidential employees lumped with
management
Since the confidential employees are very few
in number and are, by practice and tradition,
identified with the supervisors in their role as
representatives of management, such identity
of interest has allowed their inclusion in the
bargaining unit of supervisors-managers for
purposes of collective bargaining in turn as
employees in relation to the company as their
employer. [Filoil Refinery Corp. v. Filoil
Supervisory and Confidential Employees
Union, G.R. No. L-26736 (1972)]
Page 140 of 262
LABOR LAW
C. BARGAINING
REPRESENTATIVE
The labor organization designated or selected
by the majority of the employees in an
appropriate collective bargaining unit shall be
the exclusive representative of the employees
in such unit for the purpose of collective
bargaining. [Art. 267]
Labor Management Council
Any provision of law to the contrary
notwithstanding, workers shall have the right:
a. To participate in policy and decision-
making processes of the establishment
where they are employed insofar as said
processes will directly affect their rights,
benefits and welfare.
b. To form labor-management councils, for
this purpose [Art. 267]
Selection of Representatives
In organized establishments,
• the workers’ representatives to the council
shall be nominated by the exclusive
bargaining representative.
In establishments where no legitimate labor
organization exists,
• the workers representative shall be elected
directly by the employees at large. [Sec. 2,
Rule XXI, Book V, IRR]
Qualification of Voters
Eligible Voter
Eligible voter refers to a voter belonging to the
appropriate bargaining unit that is the subject
of the petition for certification election [Sec.
1(q), Rule VIII, Book V, IRR]
All employees who are members of the
appropriate bargaining unit three (3) months
prior to the filing of the petition shall be eligible
to vote. [Sec. 6, Rule IX, Book V, IRR]
Note: Rule VIII, Sec. 14 (f) and Rule IX, Sec. 6
refer to employees as those employed 3
months prior to the issuance of the order/the
filing of the petition for certification election
U.P. LAW BOC LABOR 2
while Rule IX, Sec. 2 reckon the period of
employment from the “time of filing the
petition”. This difference has not been resolved
in any case before the Supreme Court.
All rank and file employees in the appropriate
bargaining unit, whether probationary or
permanent are entitled to vote. The Code
makes no distinction as to their employment
status. [...] All they need to be eligible to
support the petition is to belong to a bargaining
unit. [Airtime Specialists, Inc. v. Ferrer-Calleja,
G.R. No. 80612-16 (1990)]
Rationale for Non-Distinction Policy
Collective bargaining covers all aspects of the
employment relation and the resultant CBA
binds all employees in the bargaining unit. All
rank and file employees, probationary or
permanent, have a substantial interest in the
selection of the bargaining representative.
[Airtime Specialists, Inc. v Ferrer-Calleja,
supra.]
Dismissed employees [Sec. 6, Rule IX, Book
V, IRR]
General Rule: [Dismissed] employees [who]
contested legality of the dismissal in a forum of
appropriate jurisdiction at the time of the
issuance of the order for conduct of a
certification election
Exception: Dismissal was declared valid in a
final judgment at the time of the conduct of the
certification election.
Disagreement over voters’ list over
eligibility of voters
All contested voters shall be allowed to vote
[but] their votes shall be segregated and sealed
in individual envelopes. [Sec. 6, Rule IX, Book
V, IRR]
Voting List and Voters
The basis of determining voters may be agreed
upon by the parties (i.e. the use of payroll).
[Acoje Workers Union v. NAMAWU, G.R. No.
L-18848 (1963)]
Page 141 of 262
LABOR LAW
Non-participation in previous election has
no effect
[Failure to take part in previous elections is no
bar to the right to participate in future elections.]
No law, administrative rule or precedent
prescribes forfeiture of the right to vote by
reason of neglect to exercise the right in past
certification elections. [Reyes v. Trajano, G.R.
No. 84433 (1992)]
1. Determination of Representation
Status
Methods of Establishing Majority Status
a. Sole and Exclusive Bargaining Agent
(SEBA) Certification
b. Consent Election
c. Certification Election
d. Run-Off Election
e. Re-Run election
Note: D.O. No. 40-I-15 replaced Voluntary
Recognition with SEBA certification, as of
September 7, 2015.
a. SEBA Certification
PROCEDURE [RULE VII, BOOK V, IRR]
1. File Request for SEBA Certification [Sec.
1]
Who: Any legitimate labor organization
File where: Regional Office which issued
its certificate of registration or certificate of
creation of chartered local
2. Indicate in the request [Sec. 2]:
a. Name and address of the requesting
legitimate labor organization;
b. Name and address of the company
where it operates;
c. Bargaining unit sought to be
represented;
d. Approximate number of employees in
the bargaining unit; and
e. Statement of the existence/non-
existence of other labor
organization/CBA.
U.P. LAW BOC
Certificate of Duly Certified by
Registration President of
requesting union
Creation of chartered President of the
local local federation of
the local
Both certificates should be attached to the
request
3. Regional Director shall act on the request
[Sec. 3]
When: Within one (1) day from submission
of request
Action:
a. Determine whether request is
compliant with Sec. 2 and whether the
bargaining unit sought to be
represented is organized or not; and
b. Request a copy of the payroll
If the Regional Director finds it deficient,
he/she shall advise the requesting union or
local to comply within ten (10) days from
notice. Failure to comply within the
prescribed period shall be deemed
withdrawal of the request.
If Unorganized Establishment [Sec. 4]
a. Finding of only 1 legitimate labor
organization – Regional Director shall call
a conference within five (5) working days
for the SUBMISSION of:
1. Names of employees in the covered
bargaining unit who signify support for
certification; [and these] employees
comprise at least majority of the
number of employees in the covered
bargaining unit; and
2. Certification under oath by the
president of the requesting union or
local that all documents submitted are
true and correct based on personal
knowledge
b. Failure to Complete Requirements for
SEBA Certification - the request for SEBA
Page 142 of 262
LABOR 2 LABOR LAW
certification shall be referred to the election
officer for the conduct of election pursuant
to Rule IX of this rules.
Note: If there is more than one Legitimate
Labor Organization, Art. 269 applies
If Organized Establishment [Sec. 6]
If the Regional Director finds the establishment
organized he/she shall refer it to the mediator-
arbitrator for determination and propriety of
conducting a certification election.
4. Regional Director shall act on the
submission [Sec. 4.1]
Incomplete The request shall be
requirements referred to Election Officer
for the conduct of election
pursuant to Rule IX.
Complete Regional Director shall
requirements issue a certification as
SEBA
5. Regional Director shall post the SEBA
Certification [Sec. 4.1]
Period: Fifteen (15) consecutive days
Where: At least two (2) conspicuous
places in the establishment or covered
bargaining unit.
EFFECT OF SEBA CERTIFICATION [Sec.
4.2]
Upon the issuance of the [SEBA Certification],
the certified union or local shall enjoy all the
rights and privileges of an exclusive bargaining
agent of all the employees in the covered
bargaining unit.
The certification shall bar the filing of a [PCE]
by any labor organization for a period of one (1)
year from the date of its issuance.
Upon expiration of this one-year period, any
legitimate labor organization may file a [PCE]
in the same bargaining unit represented by the
certified labor organization, unless a [CBA]
U.P. LAW BOC LABOR 2
between the employer and the certified labor
organization was executed and registered with
the Regional Office in accordance with Rule
XVII.
b. Consent Election
Consent Election means the election
voluntarily agreed upon by the parties with or
without the intervention by DOLE [Sec. 1(i),
Rule I, Book V, IRR]
Procedure [Sec. 11, Rule VIII, Book V, IRR]
1. The parties may agree to hold a consent
election
a. Where no petition for certification
election was filed; or
b. Where a petition for certification
election had been filed, and upon the
intercession of Med-Arbiter [Sec. 25,
Rule VIII, Book V, IRR]
2. Mediator-Arbiter shall call for the consent
election, reflecting the parties’ agreement
and the call in the minutes of the
conference. Regional Director or
authorized representative shall determine
the Election Officer by raffle in the
presence of representatives of the
contending unions if they so desire
3. First pre-election conference is scheduled
within ten (10) days from the date of the
agreement. Subsequent conferences may
be called to expedite and facilitate the
holding of the consent election.
c. Certification Election
Certification Election is the process of
determining, through secret ballot, the sole and
exclusive representative of the employees in
an appropriate bargaining unit for purposes of
collective bargaining or negotiation. [Sec. 1(i),
Rule I, Book V, IRR]
PURPOSE
The purpose of a certification election is
precisely the ascertainment of the wishes of
the majority of the employees in the
appropriate bargaining unit: to be or not to be
represented by a labor organization, and in the
affirmative case, by which particular labor
Page 143 of 262
LABOR LAW
organization. [Reyes v. Trajano, G.R. No.
84433 (1992)]
BARS TO A CERTIFICATE ELECTION
Petition for certification may be filed:
General Rule: Anytime
Exceptions:
1. One-year bar rule
2. Negotiation bar rule
3. Deadlock bar rule
4. Contract bar rule
See Grounds for denying a Petition for
Certification Election
(1) One-Year Bar Rule
No certification election may be held within 1
year from the time a valid certification, consent
or run-off election has been conducted within
the bargaining unit.
[If the order of the Med-Arbiter certifying the
results of the election has been appealed], the
running of the one-year period shall be
suspended until the decision on the appeal
becomes final and executory. [Sec. 3(a), Rule
VIII, Book V]
Note: This bar also applies to a SEBA
Certification under Rule VII. “The certification
shall bar the filing of a petition for certification
election by any labor organization for a period
of one (1) year from the date of its issuance.”
[Sec. 4.2, Rule VII, Book V, IRR]
(2) Negotiation Bar Rule
No certification of election may be filed when:
1. Within 1 year after the valid certification
election
2. The DULY CERTIFIED union has
COMMENCED AND SUSTAINED
negotiations in good faith with the employer
3. In accordance with Art. 261 of the Labor
Code Sec. 3(b), Rule VIII, Book V
U.P. LAW BOC
(3) Deadlock Bar Rule
No certification of election may be filed when:
1. The incumbent or certified bargaining
agent is a party;
2. A bargaining deadlock had been:
a. Submitted to conciliation or arbitration
or;
b. Had become the subject of a valid
notice of strike or lockout [Sec. 3(c),
Rule VIII, Book V, IRR]
A “deadlock” is defined as the “counteraction of
things producing entire stoppage;
• a state of inaction or of neutralization
caused by the opposition of persons or of
factions (as in government or voting body):
standstill.” [...]
• The word is synonymous with the word
impasse which [...] “presupposes
reasonable effort at good faith bargaining
which, despite noble intentions, does not
conclude in agreement between the
parties” [Divine World University v. SOLE,
G.R. No. 91915 (1992)]
(4) Contract Bar Rule
BLR shall not entertain any petition for
certification election or any other action which
may disturb the administration of DULY
REGISTERED existing collective bargaining
agreements affecting the parties, except under
Arts. 264, 265, and 268 [(60-day freedom
period)]. [Art. 238]
No petition for certification election may be filed
when a [CBA] between the employer and a
SEBA has been registered in accordance with
Art. 237.
Where such [CBA] is registered, the petition
may be filed only within sixty (60) days prior to
its expiry. [Sec. 3(d), Rule VIII, Book V, IRR].
The Contract-Bar Rule shall apply in any of the
following: (1) when there exists an unexpired
registered CBA; or (2) when there is no
challenge on the representation status of the
incumbent union during the freedom period.
[D.O. No. 40-1-15]
Page 144 of 262
LABOR 2 LABOR LAW
The five-year representation status acquired by
an incumbent bargaining agent either through
single enterprise collective bargaining or multi-
employer bargaining shall not be affected by a
subsequent [CBA] executed between the same
bargaining agent and the employer during the
same five-year period. [Sec. 7, Rule XVII, Book
V, IRR]
Despite an agreement for a CBA with a life of
more than five years, either as an original
provision or by amendment, the bargaining
union’s exclusive bargaining status is effective
only for five years and can be challenged within
sixty (60) days prior to the expiration of the
CBA’s first five years. [FVC Labor Union-
PTGWO v. SANAMA-FVC-SIGLO, G.R. No.
176249 (2009)]
The rule is that despite the lapse of the formal
effectivity of the CBA the law still considers the
same as continuing in force and effect until a
new CBA shall have been validly executed.
Hence, the contract bar rule still applies.
[Colegio de San Juan de Letran v. Association
of Employees, G.R. No. 141471 (2000)]
Petition for cancellation of union
registration DOES NOT suspend or prevent
filing of certification election
A petition for cancellation of union registration
shall not:
1. suspend the proceedings for certification
election; nor
2. prevent the filing of a petition for
certification election. [Art. 246]
A certification election can be conducted
despite pendency of a petition to cancel the
union registration certificate. For the fact is that
at the time the [union], whose registration
certificate is sought to be cancelled, filed its
petition for certification, it still had the legal
personality to perform such act absent an order
directing its cancellation. [Association of Court
of Appeals Employees v. Calleja, G.R. No.
94716, (1991)]
U.P. LAW BOC LABOR 2 LABOR LAW

Allegation of company union a prejudicial management. [Port Workers Union v.

question to a petition for certification Laguesma, G.R. Nos. 94929-30, (1992)]
election
A complaint for unfair labor practice may be
Certification Union Election
considered a prejudicial question in a
Election
proceeding for certification election when it is
charged therein that one or more labor unions To determine the To elect union
participating in the election are being aided, or Exclusive Bargaining officers
are controlled, by the company or employer Agent
[company union] [United CMC Textile Worker’s
Union v. BLR, G.R. No. 51337(1984)]. All members of the Only union members
appropriate may vote
Rationale: The certification election may lead bargaining unit
to the selection of an employer-dominated or
company union as the employees’ bargaining
WHO MAY VOTE [Sec. 6, Rule IX, Book V,
representative, and when the court finds that
IRR]
said union is employer-dominated in the unfair
All employees who are members of the
labor practice case, the union selected would
appropriate bargaining unit three (3) months
be decertified and the whole election
prior to the filing of the petition/request shall be
proceedings would be rendered useless and
eligible to vote.
nugatory. [B.F. Goodrich Phils. Marikina v. B.F.
Goodrich Confidential and Salaried Employees
An employee who has been dismissed from
Union, G.R. No. L-34069-70 (1973)]
work but has contested the legality of the
dismissal in a forum of appropriate jurisdiction
NATURE OF PROCEEDING
at the time of the issuance of the order for the
Certification election is the most effective and
conduct of a certification election shall be
the most democratic way of determining which
considered a qualified voter, unless his/her
labor organization can truly represent the
dismissal was declared valid in a final judgment
working force in the appropriate bargaining unit
at the time of the conduct of the certification
of a company [Samangang Manggagawa sa
election.
PERMEX v SOLE, G.R. No. 107792 (1998)].
In case of disagreement over the voters’ list or
[It] is not a ‘litigation’ [...] but a mere
over the eligibility of voters, all contested voters
investigation of a non-adversary, fact-finding
shall be allowed to vote. But their votes shall be
character. [...]
segregated and sealed in individual envelopes.
The determination of the proceeding does not
WHO MAY FILE [Sec. 1, Rule VIII, Book V,
entail the entry of remedial orders or redress of
IRR]
rights, but culminates solely in an official
1. Legitimate labor organization [Art. 219
designation of bargaining units and an
(h)]
affirmation of the employees’ expressed choice
2. Local/chapter that has been issued a
of bargaining agent. [Angat River Irrigation
charter certificate
System v. Angat River Worker’s Union
The chapter shall acquire legal personality
(PLUM), G.R. Nos. L-10943 and L-10944
only for purposes of filing a petition for
(1957)]
certification election from the date it was
issued a charter certificate. [Art. 241]
Technical rules and objections should not
3. National union or federation that has
hamper the correct ascertainment of the labor
issued a charter certificate to its
union that has the support or confidence of the
local/chapter [in behalf of the latter]
majority of the workers and is thus entitled to
represent them in their dealings with

Page 145 of 262

U.P. LAW BOC LABOR 2
4. A group of legitimate labor unions in a
private establishment organized for
collective bargaining or for dealing with
employers concerning terms and
conditions of employment for their member
unions or for participating in the formulation
of social and employment policies,
standards and programs, registered with
the BLR in accordance with Rule III Sec. 2-
B. [Sec. 1 (ll), Rule I, Book V, IRR]
5. Employer (when requested to bargain
collectively and no existing CBA)
Requisites:
a. Employer is requested to bargain
collectively; AND
b. No existing registered CBA in the unit
[Art. 270]
BYSTANDER RULE
In all cases, whether the petition for
certification election is filed by an employer or
a legitimate labor organization, the employer
shall not be considered a party thereto with a
concomitant right to oppose a petition for
certification election. [Art. 271]
The employer’s participation shall be
limited to:
a. Being notified or informed of petitions of
such nature
b. Submitting the list of employees during the
pre-election conference, should the Med-
Arbiter act favorably on the petition [Art.
271]
The principle of the employer as by-stander
shall be strictly observed throughout the
conduct of certification election.
The employer shall not harass, intimidate,
threat[en], or coerce employees before, during
and after elections. [Sec. 1, Rule IX, Book V,
IRR]
However, manifestation of facts that would aid
the [Med-Arbiter] in expeditiously resolving the
petition such as existence of a contract-bar,
one year bar or deadlock bar may be
considered. [Sec. 1, Rule VIII, Book V, IRR]
Page 146 of 262
LABOR LAW
The employer is not a party to a certification
election, which is the sole or exclusive concern
of the workers. [...]
The only instance when the employer may be
involved in that process is when it is obliged to
file a petition for certification election on its
workers’ request to bargain collectively
pursuant to Art. 258 [now Art. 270]. [Hercules
Industries, Inc. v. Sec. of Labor, G.R. No.
96255 (1992)]
[The employer] did not possess the legal
personality to file a motion to dismiss the
petition for certification election even if based
on the ground that its supervisory employees
are in reality managerial employees.
It is well-settled that an employer has no
standing to question a certification election
since this is the sole concern of the workers.
The only exception to this rule is Art. 258 [now
Art. 270]. [PT&T v. Laguesma, G.R. No.
101730 (1993)]
[A] company’s interference in the certification
election below by actively opposing the same
[...] unduly creates a suspicion that it intends to
establish a company union. [Oriental Tin Can
Labor Union v. Secretary of Labor, G.R. No.
116751 (1998)]
VENUE FOR FILING PETITION
File with the Regional Office which issued the
petitioning union’s certificate of registration or
certificate of creation of chartered local.
At [petitioner’s option], [it may file] the petition
and its supporting documents [...] online. [Sec.
2, Rule VIII, Book V, IRR]
Where two or more petitions involving the
same bargaining unit [Sec. 2, Rule VIII, Book
V, IRR]:
Filed in Automatically consolidated with
one [Med-Arbiter] who first acquired
Regional jurisdiction.
Office
U.P. LAW BOC LABOR 2
Filed in The Regional Office in which
different the petition was first filed shall
Regional exclude all others; [...] the latter
Offices shall indorse the petition to the
former for consolidation.
Procedure: CERTIFICATION ELECTION IN
AN UNORGANIZED ESTABLISHMENT
Unorganized Establishment
[It is an] establishment where there is no
certified bargaining agent. [Art. 269]
Procedure [Art. 269]
1. File a petition for certification election.
2. Upon filing of the petition, the Med-Arbiter
shall automatically conduct a certification
election.
Filing of petition is by a legitimate labor
organization
It cannot be filed by an unregistered labor
organization. Art. 251 enumerates the rights
granted to a legitimate labor organization and
one of those rights is the right to be chosen as
the exclusive bargaining representative. This is
one way the law encourages union registration.
Note: Art. 269 should be related to SEBA
Certification. If there are multiple LLOs in an
unorganized establishment, Art. 269 applies. If
there is only one LLO in an unorganized
establishment, Rule VII on SEBA Certification
applies. Under this rule, when there is failure to
complete requirements, the Regional Director
will refer it to the Election Officer.
Procedure: CERTIFICATION ELECTION IN
AN ORGANIZED ESTABLISHMENT
Organized Establishment
Refers to an enterprise where there exists a
recognized or certified sole and exclusive
bargaining agent. [Sec. 1(ll), Rule I, Book V,
IRR]
Procedure [Art. 268]
1. File a verified petition questioning the
majority.
Page 147 of 262
LABOR LAW
2. It must be filed within the 60-day period
before expiration of CBA (freedom period).
3. Supported by written consent of at least
25% of ALL employees in the bargaining
unit (substantial support).
4. Med-Arbiter shall automatically order an
election.
WHEN PETITION MUST BE FILED
Freedom Period
Within the sixty (60)-day period before the
expiration of the collective bargaining
agreement. [Art. 271]
Note: The expiration referred to is the
expiration of the 5-year period for the
representation aspect. (see Art. 265) [Prof.
Battad]
Rationale of Prohibition of Filing Outside
the Freedom Period
To ensure industrial peace between the
employer and its employees during the
existence of the CBA. [Republic Planters Bank
Union v. Laguesma, G.R. No. 119675 (1996)]
SIGNING OF AUTHORIZATION IS MERELY
PREPARATORY
What is prohibited is the filing of the petition for
certification election outside the 60-day
freedom period. [...] The signing of the
authorization to file was merely preparatory to
the filing of the Petition for Certification
Election, or an exercise of [the] right to self-
organization. [PICOP Resources Inc. v.
Ricardo Dequita, G.R. No. 172666 (2011)]
25% SUBSTANTIAL SUPPORT RULE
In organized establishments, the incumbent
sole bargaining agent should not be easily
replaced for that would disturb industrial peace.
To justify the disturbance, it must appear that
at least a substantial number (25%
requirement) seeks to have a new exclusive
bargaining unit.
DISCRETIONARY RULE
The [Med-Arbiter], in the exercise of sound
discretion, may order a certification election
notwithstanding the failure to meet the [25%]
requirement [in petitions for certification
U.P. LAW BOC LABOR 2 LABOR LAW

election in an organized establishment]. [Scout Unorganized establishment: any time prior to

Albano Memorial College v. Noriel, G.R. No. L- the decision of the Med-Arbiter [Sec. 9, Rule
48347 (1978)] VIII, Book V, IRR]

INAPPLICABLE TO MOTIONS FOR EFFECT OF WITHDRAWAL OF

INTERVENTION
[The] requisite written consent of at least 20%
(now 25%) of the workers in the bargaining unit
applies to certification election only, and not to
motions for intervention. Nowhere in the legal
provisions [and in the Omnibus Rules] does it
appear that a motion for intervention in a
certification election must be accompanied by
a similar written consent. [PAFLU v. Calleja,
G.R. No. 79347 (1989)]
SIGNATURES
The employees’ withdrawal from a labor
union made
1. Before the filing of the petition for
certification election is presumed voluntary
2. After the filing of such petition is considered
to be involuntary and does not affect the
[petition]. [S.S. Ventures International v.
S.S. Ventures Labor Union, G.R. No.
161690 (2008)]

INTERVENORS
1. Incumbent bargaining agent as forced
intervenor: The incumbent bargaining
agent shall automatically be one of the
choices in the certification election as
forced intervenor. [Sec. 8, Rule VIII, Book
V, IRR]
2. Legitimate labor union other than the
incumbent bargaining agent operating
within the bargaining unit: When a
petition for certification election was filed in
an organized establishment, any legitimate
labor union other than the incumbent
bargaining agent operating within the
bargaining unit may file a motion for
intervention with the Med-Arbiter during the
freedom period of the collective bargaining
agreement.

In an unorganized establishment, the motion

shall be filed at any time prior to the decision of
the Med-Arbiter. The motion shall be resolved
in the same decision issued in the petition for
certification election.

In both cases, the form and contents of the

motion shall be the same as that of a petition
for certification election. [Sec. 9, Rule VIII,
Book V, IRR]

WHEN TO FILE MOTION FOR

INTERVENTION
Organized establishment: during the freedom
period of the collective bargaining agreement

Page 148 of 262

U.P. LAW BOC LABOR 2 LABOR LAW

Organized v. Unorganized Establishments

Art. 268: Organized Art. 269: Unorganized

Sole and exclusive Existing None

bargaining agent

Petition filed Must be VERIFIED No need to be verified

Freedom period No petition for certification election Not applicable (i.e. no

EXCEPT within 60 days before freedom period; petition can
the expiration of the collective be filed anytime)
bargaining agreement (See Arts.
264 and 265)

Rationale: To keep industrial

peace in organized establishments

Substantial support rule Must be duly supported by 25% of NO substantial support rule
ALL THE MEMBERS OF THE
APPROPRIATE BARGAINING Rationale: Intention of law is
UNIT to bring in the union, to
implement policy behind Art.
Rationale: Law wants to know the 218A.
intention of the employees – if they
really want a certification election,
since they already have a
bargaining agent

Certification Election v. Consent Election

Certification Election Consent Election

Purpose "Certification Election" or "Consent Election" refers to the process of

determining through secret ballot the sole and exclusive representative of
the employees in an appropriate bargaining unit for purposes of collective
bargaining or negotiation. A certification election is ordered by the
Department, while a consent election is voluntarily agreed upon by the
parties, with or without the intervention by the Department [Book V, Rule
1, Sec. 1(h)]

General Procedure Rule IX Rule VII, Sec. 11, pars. 1, 2

SECTION 2. Raffle of the Case. — The contending unions may agree

Within twenty-four (24) hours from
receipt of the notice of entry of final
judgment granting the conduct of a
certification election, the Regional
Director shall cause the raffle of the
case to an Election Officer who
to the holding of an election, in
which case it shall be called a
consent election. The mediator-
arbiter shall forthwith call for the
consent election, reflecting the
parties' agreement and the call in

Page 149 of 262

U.P. LAW BOC LABOR 2 LABOR LAW

shall have control of the pre-
election conference and election
proceedings. (1a)
the minutes of the conference. The
mediator-arbiter shall immediately
forward the records of the petition
to the regional director or his/her
authorized representative for the
determination of the election officer
who shall be chosen by raffle in the
presence of representatives of the
contending unions if they so desire.

With the exception of aforementioned provisions that specifically apply

only for Certification Election or Consent Election respectively, Rule IX,
on the Conduct of Certification, Secs. 3 – 21, applies to both certification
and consent elections

Conduct Ordered by the DOLE Voluntarily agreed upon by the

parties, with or without the
intervention of DOLE

d. Run-Off Election run-off will be between the labor unions

Run-Off Election refers to an election
between the labor unions receiving the two (2)
highest number of votes in a certification or
consent election when the following requisites
have been complied with:
1. Valid election;
2. The certification or consent election
provides for three (3) or more choices
(Note: “No Union” is considered one choice
– Prof. Battad);
3. None of the contending UNIONS received
a majority of the VALID VOTES cast;
4. No objections or challenges which if
sustained, can materially alter the results;
and
5. The total number of votes for all contending
UNIONS is at least fifty (50%) of the
number of VOTES cast [Art. 268; Sec.
1(uu), Rule I, Book V, IRR; Sec. 1, Rule X,
Book V, IRR]
receiving “the two highest number of votes.”
Pursuant to Art. 268, when an election which
provides for three or more choices results in no
choice receiving a majority of the valid votes
cast, a run-off election shall be conducted
between the labor unions receiving the two
highest number of votes. Thus, the run-off will
be among Union “A”, “B”, and “C.” [Azucena]
Procedure for Run-Off Election
Election Officer shall motu proprio conduct a
run-off election within ten (10) days from the
close of the election proceedings between the
labor unions receiving the two highest number
of votes.
“No Union” shall not be a choice in the run-off
election [Sec. 1, Rule X, Book V, IRR].
Same voters’ list used in the certification
election shall be used in the run-off election.

Illustration The labor union receiving the GREATER

The CBU has 100 members and 80 of which
voted. Union “A”= 30; Union “B”= 15; Union
“C”=15 and No Union= 20. There were no
invalid votes. Since none got the majority of the
80 valid votes (40) and the contending unions
obtained 60 votes (which is at least 50% of the
VOTES cast), a run-off election is proper. The
number of VALID VOTES cast shall be certified
as the winner [Sec. 2, Rule X, Book V, IRR].
Note: Please note the difference between valid
votes cast versus votes cast – valid votes
excludes spoiled votes.

Page 150 of 262

U.P. LAW BOC LABOR 2
e. Re-Run Election
Re-run Election refers to an election
conducted to break a tie between contending
unions, including between "no union" and one
of the unions. It shall likewise refer to an
election conducted after a failure of election
has been declared by the election officer
and/or affirmed by the mediator-arbiter. [Sec.
1(tt), Rule 1, Book V, as amended by DO 40-I-
15]
Situations Contemplated
1. A tie between two (2) choices.
2. Failure of Elections [see Definition]
Duty of Election Officer
1. Notify parties of a re-run election
2. Cause posting of notice within five (5) days
from said election.
When will re-run be conducted
Within ten (10) days after the posting of the
notice of the union declared as winner and
certified choice receiving the HIGHEST
VOTES CAST.
PROCEDURE AFTER FILING PETITION FOR
CERTIFICATION ELECTION
1. Raffling of case to Med-Arbiter
2. Preliminary Conference and hearing
3. Conduct of hearings
4. Determine if petition should be dismissed
on grounds stated in Sec. 15
5. Order/Decision on the petition
6. Appealing the order/decision on the
petition
7. Raffling of the case to an Election Officer
8. Pre-Election Conference
9. Conduct of election
10. Challenging of votes and on the spot
questions
11. Protesting
12. Canvassing of votes
13. Nullification of Election Results
14. Proclamation and Certification of the result
of the election
15. Appeal from Certification Election Order
(1) Raffling of Case to Med-Arbiter
Page 151 of 262
LABOR LAW
The Regional Director or his/her duly
authorized representative shall immediately
assign it by raffle to a [Med-Arbiter]. The raffle
shall be done in the presence of the petitioner
if the latter so desires. [Sec. 5, Rule VIII, Book
V, IRR]
(2) Preliminary Conference
Med-Arbiter shall conduct a preliminary
conference and hearing within ten (10) days
from receipt of the petition to determine the
following:
1. The bargaining unit to be represented;
2. Contending labor unions
3. Possibility of a consent election
4. Existence of any of the bars to certification
election under Sec. 3[, Rule VIII]; and
5. Such other matters as may be relevant for
the final disposition of the case [Sec. 10,
Rule VIII, Book V, IRR]
Note: If contending unions agree to holding of
an election, [...] it shall be called a consent
election. [Sec. 11, Rule VIII, Book V, IRR]
(3) Med-Arbiter to Conduct Hearings
If contending unions fail to agree to a consent
election during the preliminary conference
• the Med-Arbiter may conduct as many
hearings as he/she may deem necessary
○ but in no case shall the conduct thereof
exceed fifteen (15) days from date of
scheduled preliminary conference/
hearing, after which the petition shall
be considered submitted for decision.
[...]
Within the same 15-day period [...], the
contending labor unions may file such
pleadings as they may deem necessary for the
immediate resolution of the petition.
Extensions of time shall not be entertained.
[Sec. 12, Rule VIII, Book V, IRR]
U.P. LAW BOC LABOR 2
(4) Determine if Petition should be
dismissed based on Grounds Stated in
Sec. 15
The grounds to dismiss the petition are:
1. Petitioning union or national union/
federation is:
a. Not listed in DOLE’s registry of
legitimate labor unions; or
b. Registration certificate has been
cancelled with finality
2. Failure of a local/chapter or national
union/federation to submit a duly issued
charter certificate upon filing of the petition
for certification election
3. Contract Bar rule
4. One-Year Bar rule
5. Negotiation and Deadlock Bar Rule
6. In an organized establishment, the failure
to submit the 25% signature requirement to
support the filing of the petition.
7. Non-appearance of the petitioner for two
(2) consecutive scheduled conferences
before the [Med-Arbiter] despite due
notice; and
8. Absence of employer-employee
relationship between all the members of
the petitioning unit and the establishment
where the proposed bargaining unit is
sought to be represented.
Note: See Bars to Certification Election under
“c. Certification Election”
Commingling is not a ground
The inclusion as union members of employees
outside the bargaining unit [is] not a ground for
cancellation of the registration of the union.
Said employees are automatically deemed
removed from the list of membership. [Sec. 16,
Rule VIII, Book V, IRR]
Posting of notice of Petition for Certificate
Election
The Regional Director or his/her authorized
DOLE personnel, and/or the petitioner shall be
responsible for the posting of the notice of
petition for certification election. [Sec. 7, Rule
VIII, Book V, IRR]
Page 152 of 262
LABOR LAW
(5) Order or Decision on the Petition
[Med-Arbiter] shall issue a ruling granting or
denying the petition
When:
General rule: Within ten (10) days from last
hearing
Exception: In organized establishments, grant
of the petition can only be made after the lapse
of the freedom period [Sec. 14, Rule VIII, Book
V, IRR]
How:
1. Personally to the parties
2. Copy furnished to the employer [Sec. 18,
Rule VIII, Book V, IRR]
The ruling for the conduct of a certification
election shall state the following:
1. Name of the employer or establishment;
2. Description of the bargaining unit;
3. Statement that none of the grounds for
dismissal [...] in Sec. 14 exists;
4. Names of the contending labor unions [...]
in the following order:
a. Petitioner unions in the order of the
date of filing of their respective
petitions
b. The forced intervenor
c. “No union”
5. [If] the local/chapter is one the contending
unions, a directive to an unregistered
local/chapter or a federation/national union
representing all unregistered local/chapter
to personally submit to the Election Officer
its certificate of creation at least five (5)
working days before the actual conduct of
the certification election. [This is to afford
an individual employee-voter an informed
choice.]
6. Non-submission of this requirement as
certified by Election Officer shall disqualify
the local/ chapter from participating in the
certification election
7. Directive to the employer and the
contending unions to submit within ten (10)
days from receipt of order:
a. The certified list of employees in the
bargaining unit, or where necessary,
U.P. LAW BOC LABOR 2 LABOR LAW

b. Payrolls covering the members of the Decision of the Secretary

bargaining unit for the last three (3) Period to decide: Fifteen (15) days from receipt
months prior to the issuance of the of entire records of the petition to decide the
order appeal.

(6) Appealing the Order Granting or Secretary’s decision shall be final and
Denying the Conduct of Certification executory within ten (10) days from receipt by
Election [Sec. 19-20, RULE VIII, BOOK V, parties. [Sec. 23, Rule VIII, Book V, IRR]
IRR]
Note: No motion for reconsideration of decision
Form of appeal shall be entertained. [Sec. 23, Rule VIII, Book
1. Verified under oath V, IRR]
2. Consists of a memorandum of appeal
specifically stating the grounds relied upon Implementation of decision
by appellant with the supporting arguments General Rule: Shall not be stayed
and evidence Exception: Restrained by appropriate court
[Sec. 24, Rule VIII, Book V, IRR]
Dismissed
Organized or denied (7) Raffling of the Case to an Election
Appeal to Officer
Granted Office of
Secretary Regional Director shall cause the raffle of the
Dismissed
or denied case to an Election Officer who shall have
Unorganized control of:
Granted Unappealable 1. Pre-election conference; and
2. Election proceedings
When: Within ten (10) days from receipt of the
When: Within twenty-four (24) hours from
order [of the Med-Arbiter].
receipt of notice of entry of final judgment
granting the conduct of a certification election
Where: Regional Office where the petition
[Sec. 2, Rule IX, Book V, IRR]
originated
(8) Pre-Election Conference
Effect of Filing Memorandum of Appeal
Stays the holding of any certification election.
Notice of Pre-Election Conference [Sec. 3,
[Sec. 23, Rule VIII, Book V, IRR]
Rule IX, Book V, IRR]
The Election Officer shall cause the issuance
Reply to Appeal
of notice of pre-election conference upon the
Reply by any party to the petition shall be filed
contending unions
within ten (10) days from receipt of the
memorandum of appeal […] and filed directly
When: Within twenty-four (24) hours from the
with the office of the Secretary. [Sec. 22, Rule
[Election Officer’s] receipt of assignment for the
VIII, Book V, IRR]
conduct of a certification election
When no appeal is filed
Schedule of pre-election conference
The decision shall be final and executory if no
When: Within ten (10) days from receipt of the
appeal is filed within the ten (10) day period.
assignment
[Sec. 21, Rule VIII, Book V, IRR]
Completed within thirty (30) days from the date
of the first hearing [Sec. 5, Rule IX, Book V,
IRR]

Page 153 of 262

U.P. LAW BOC LABOR 2
Employer to Submit: [Sec. 3, Rule IX, Book
V, IRR]
1. Certified list of employees in the bargaining
unit; or where necessary,
2. Payrolls covering the members of the
bargaining unit at the time of the filing of
petition
Failure of party to appear during pre-
election conference despite notice [Sec. 4,
Rule IX, Book V, IRR]
This shall be considered a waiver of right to:
1. To be present; and
2. To question or object to any of the
agreements reached in the pre-election
conference
Shall NOT deprive the non-appearing party of
the right to:
1. Be furnished notices; and
2. To attend subsequent pre-election
conferences
Minutes of pre-election conference [Sec. 5,
Rule IX, Book V, IRR]
Election Officer shall keep the minutes of
matters raised and agreed upon.
Parties shall acknowledge the completeness
and correctness of entries in the minutes by
affixing their signatures.
When parties refuse to sign the minutes, the
Election Officer shall note such fact in the
minutes, including the reason for refusal to sign
the same.
In all cases, parties shall be furnished a copy
of the minutes.
Posting of Notices [Sec. 7, Rule IX, Book V,
IRR]
Who: Election Officer and/or authorized DOLE
personnel shall cause the posting
What: Notice of election
Where: 2 most conspicuous places in the
company premises
When: At least ten (10) days before the actual
[election date]
Contents of Notice [Sec. 7, Rule IX, Book V,
IRR]
Page 154 of 262
LABOR LAW
1. Date and time of the election;
2. Names of all contending unions;
3. Description of the bargaining unit;
4. List of eligible and challenged voters.
Posting of the list of employees comprising the
bargaining unit shall be done by the DOLE
personnel.
What cannot be waived by contending
unions or employer:
1. Posting of the notice of election
2. Information required to be included therein
3. Duration of the posting
The parties agreed to conduct the election on
[...] a regular business day but a strike was held
on that day. The alleged strike and/or picketing
of some employees at the company’s premises
which coincided with the actual conduct of
certification election might, perhaps have
affected the actual performance of works by
some employees but did not necessarily make
said date an irregular business day of the
company. [Asian Design and Manufacturing
Corp. v. Ferrer-Calleja, G.R. No. L-77415
(1989)]
(9) Conduct of Election
Inspection to ensure secrecy and sanctity
of ballot [Sec. 8, Rule IX, Book V, IRR]
By whom:
1. Election Officer, together with
2. Contending unions’ authorized
representative; and
3. Employer
When: Before start of actual voting
Shall inspect:
1. Polling place;
2. Ballot boxes; and
3. Polling booths
Prohibition on certain devices
General Rule: No device that could record or
identify the voter or otherwise undermine the
secrecy and sanctity of the ballot shall be
allowed within the premises
U.P. LAW BOC LABOR 2
Exception: Devices brought in by the Election
Officer
Consequence: Any other device found within
the premises shall be confiscated by the
Election Officer and returned to its owner after
conduct of the certification election.
Spoiled Ballots
A ballot that is torn, defaced, or contains
marking which can lead another to clearly
identify the voter who casts such vote [Sec.
1(ww), Rule I, Book V, IRR]
If the voter inadvertently spoils a ballot, he shall
return it to the Election Officer who shall
destroy it and give him/her another ballot. [Sec.
10, Rule IX, Book V, IRR]
Member unintentionally omitted in the master
list of voters may either be:
1. May be allowed to vote if both parties
agree; [OR]
2. Allowed to vote but the ballot is segregated
(10) Challenging of Votes and on the Spot
Questions [Sec. 11-12, Rule IX, Book V,
IRR]
Ballot of the voter who has been properly
challenged during the pre-election conferences
shall be:
1. Placed in an envelope sealed by Election
Officer in the presence of:
a. the voter; and
b. representatives of the contending
unions.
2. Election Officer shall indicate on the
envelope the:
a. Voter’s name;
b. Union challenging the voter; and
c. Ground for the challenge
3. Sealed envelope shall be signed by:
a. Election Officer; and
b. Representatives of the contending
unions
Election Officer shall:
1. Note all challenges in the minutes of the
election proceedings; and
Page 155 of 262
LABOR LAW
2. Have custody of all envelopes containing
the challenged votes
Opening of envelopes and question of
eligibility
Shall be passed upon by the Med-Arbiter only
if the number of segregated votes will
materially alter the results of the election.
On-the-spot Questions
What the Election Officer shall rule on: Any
question relating to and raised during the
conduct of election
What the Election Officer SHALL NOT rule
on: Question of eligibility which shall be
decided by the Mediator-Arbiter
Failure of representative/s of the
contending unions to appear [Sec. 15, Rule
IX, Book V, IRR]
Considered a waiver of the right to be present
and to question the conduct thereof
(11) Protest [Sec. 13, Rule IX, Book V, IRR]
Who may file: Any party-in-interest
Ground: On the conduct or mechanics of the
election
When Protest is Perfected:
1. [Record the protest] in the minutes of the
election proceedings; AND
2. Formalize [the] protest with the Med-
Arbiter, with specific grounds, arguments
and evidence within five (5) days after the
close of the election proceedings
Protests deemed dropped
Protests [which are]:
1. Not recorded in the minutes; AND
2. Formalized within the prescribed period
General reservation to file protest
prohibited
Protesting party shall specify the grounds for
protest.
U.P. LAW BOC LABOR 2
Failure to formalize within 5-days cannot be
taken against the union
[The petitioner union misrepresented that they
were independent which caused the members
to disaffiliate and form a new union and their
protest was not filed within the 5-day period.
The] failure to follow strictly the procedural
technicalities regarding the period for filing their
protest should not be taken against them.
Mere technicalities should not be allowed to
prevail over the welfare of the workers. What
is essential is that they be accorded an
opportunity to determine freely and intelligently
which labor organization shall act on their
behalf. [DHL-URFA-FFW v. BMP, G.R. No.
152094 (2004)]
Note: "Election Proceedings" refer to the period
during a certification election, consent or run-
off election and election of union officers,
starting from the opening to the closing of the
polls, including the counting, tabulation and
consolidation of votes, but excluding the period
for the final determination of the challenged
votes and the canvass thereof. [Book V, Rule
1, Sec. 1 (q)]
Included:
1. Starting from the opening to the closing of
the polls
2. Counting, tabulation and consolidation of
votes
Excluded:
1. Period for the final determination of the
challenged votes
2. Canvass of the challenged votes [Sec.
1(q), Rule I, Book V, IRR]
(12) Canvassing of Votes [Sec. 15, Rule IX,
Book V, IRR]
Election precincts shall open and close on the
date and time agreed upon during the pre-
election conference.
The opening and canvass of votes shall
proceed immediately after the precincts have
closed.
Page 156 of 262
LABOR LAW
Procedure [Sec. 14, Rule IX, Book V, IRR]
1. Election Officer shall count and tabulate
the votes in the presence of the
representatives of the contending unions.
2. Upon completion of canvass, the Election
Officer shall give each representative a
copy of the minutes of the election
proceedings and results of the election.
3. Ballots and tally sheets shall be sealed in
an envelope and signed by the Election
Officer and the representatives of the
contending unions and transmitted to the
Med-Arbiter together with the minutes and
results of the election within twenty-four
(24) hours from the completion of the
canvass.
Election conducted in more than one region
Consolidation of results shall be made within
fifteen (15) days from the conduct thereof.
Double Majority Rule
It is well-settled that under the so-called
"double majority rule,” for there to be a valid
certification election, majority of the bargaining
unit must have voted AND the winning union
must have garnered majority of the valid votes
cast. [NUWHRAIN-Manila Pavilion Hotel
Chapter v. Secretary of Labor and
Employment, G.R. No. 181531 (2009)]
Requisites:
1. There must be a valid certification or
consent election
Valid Election: At least majority of the
number of eligible voters have cast their
votes (VOTES CAST) [Sec. 17, Rule IX,
Book V, IRR]
2. The winning union must garner majority of
the VALID VOTES CAST [Sec. 16, Rule IX,
Book V, IRR]
Winning union certified as SEBA if there is
no protest [Sec. 16, Rule IX, Book V, IRR]
The [winning union] shall be certified as the
[SEBA] in the appropriate bargaining unit within
five (5) days from date of election, provided no
protest is recorded in the minutes of the
election.
U.P. LAW BOC LABOR 2
When winning choice is local chapter
without certificate of creation of chartered
local
It must submit its DOLE issued certificate of
creation within five (5) days from the
conclusion of election
Note: Please note that valid votes differ from
mere votes as the former excludes spoiled
ballots.
Abstention: refers to a blank or unfilled ballot
validly cast by an eligible voter. It is not
considered as a negative vote. However, it
shall be considered a valid vote for purposes of
determining a valid election. [Sec. 1(a), Rule I,
Book V, IRR]
Spoiled Ballot: Refers to a ballot that is torn,
defaced, or contains markings which can lead
another to clearly identify the voter who casts
such vote. [Sec. 1(ww), Rule I, Book V, IRR]
(13) Failure of Election [Sec. 17, Rule IX,
Book V, IRR]
The Election Officer shall declare a failure of
election in the minutes of the election
proceedings when:
1. Number of VOTES CAST is less than the
majority of the number of eligible voters;
AND
2. There are no material challenged votes
Effect of Failure of Election [Sec. 19, Rule IX,
Book V, IRR]
Shall not bar the filing of a motion for the
immediate holding of a certification or consent
election within six (6) months from date of
declaration of failure of election.
Note: Under Sec. 1(tt), Rule I, Book V, a RE-
RUN ELECTION “shall likewise refer to an
election conducted after a failure of election
has been declared by the Election Officer
and/or affirmed by the [Med-Arbiter].” Thus,
under the Rules, this is the other definition of a
Re-Run Election.
Page 157 of 262
LABOR LAW
Motion for another election after failure of
election [Sec. 20, Rule IX, Book V, IRR]
Within twenty-four (24) hours from receipt of
the motion, the Election Officer shall:
1. Immediately schedule another election
within fifteen (15) days from receipt of
motion
2. Cause posting of the notice of election
a. At least ten (10) days prior to the
scheduled date of election
b. In two (2) most conspicuous places in
the establishment
Same guidelines and list of voters shall be
used.
Nullification of Election Results
It is precisely because respect must be
accorded to the will of labor thus ascertained
that a general allegation of duress is not
sufficient to invalidate a certification election; it
must be shown by competent and credible
proof. [United Employees Union of Gelmart
Industries Philippines (UEUGIP) v. Noriel, No.
L-40810 (1975)]
(14) Proclamation and Certification of the
result of the election
Certification of the Collective Bargaining
Agent [Sec. 21, Rule IX, Book V, IRR]
Within 24 hours from final canvass of votes,
there being a VALID election, the Election
Officer shall transmit the records of the case to
the Med-Arbiter.
Within the same period from receipt of the
minutes and results of election, [the Med-
Arbiter] shall issue an order proclaiming the
results of the election and certifying the union
as the [SEBA] under any of the following
conditions:
1. No protests were filed, or even if one was
filed, [it] was not perfected within the five-
day period
2. No challenge or eligibility issue was raised,
or even if one was raised, [its] resolution
will not materially change the results of the
elections.
U.P. LAW BOC LABOR 2
Winning union shall have the rights, privileges,
and obligations of a duly certified collective
bargaining agent from the time the certification
is issued.
Majority of valid votes cast results in “No
Union” obtaining majority
Med-Arbiter shall declare such fact in the order
(15) Appeal from Certification Election
Orders [Art. 272]
Who appeals: Any party to an election
What is appealed: Order or results of the
election
Appeal to: Directly to SOLE
Ground: Rules and regulations established by
the SOLE for the conduct of the election have
been violated.
D. RIGHTS OF LABOR
ORGANIZATIONS
1. Check off, Assessment, Agency
Fees
CHECK-OFF
A check-off is a process or device whereby the
employer, on agreement with the Union,
recognized as the proper bargaining
representative, or on prior authorization from
the employees, deducts union dues or agency
fees from the latter’s wages and remits them
directly to the Union. [Marino v. Gamilla, G.R.
No. 149763 (2009)]
The system of check-off is primarily for the
benefit of the Union and, only indirectly, for the
benefit of the individual employees. [Marino v.
v Gamilla, G.R. No. 149763 (2009)]
Note: For a check-off to be valid, it must comply
with the requirements of a valid special
assessment.
Jurisdiction over Check-off Disputes
Page 158 of 262
LABOR LAW
The Bureau of Labor Relations has jurisdiction
to hear, decide and to mete out punishment
any violation under Art. 250 upon report of at
least 30% of the union membership OR
members specially concerned to the
Bureau.
Note: Secretary of Labor or his duly authorized
representative may inquire into financial
activities of legitimate labor orgs
a. UPON filing of complaint under oath and
supported by written consent of at least
20% of total membership,
b. Provided, such inquiry shall not be
conducted during (60)-day freedom period
nor within the thirty (30) days immediately
preceding the date of election of union
officials. [Art. 289]
ASSESSMENT
Special assessments are payments for a
special purpose, especially if required only for
a limited time. [Azucena]
No special assessment or other extraordinary
fees may be levied upon the members of a
labor organization
• unless authorized by a written resolution of
a majority of all the members at a general
membership meeting duly called for the
purpose. [Art. 250 (n)]
Other than for mandatory activities under the
Code, the following may not be checked off
from any amount due to an employee without
an individual written authorization duly signed
by the employee:
a. special assessments
b. attorney’s fees
c. negotiation fees
d. or any other extraordinary fees
The authorization should specifically state the
amount, purpose and beneficiary of the
deduction. [Art. 250 (o)]
Requisites for a Valid Special Assessment
1. Authorization by a written resolution of the
majority of ALL the members at the general
membership meeting called for the
purpose;
U.P. LAW BOC LABOR 2
2. Secretary’s record of the minutes of the
meeting; AND
3. Individual written authorization for check off
duly signed by the employees concerned
which indicates the:
a. Amount
b. Purpose
c. Beneficiary of deduction [Gabriel v.
SOLE, G.R. No. 115949 (2000)]
Strict compliance for special assessment
There must be strict and full compliance with
the requisites. Substantial compliance is not
enough. [Palacol v. Ferrer-Calleja, G.R. No.
85333 (1990)]
AGENCY FEES
Art. 259 (e) [2nd sentence to last sentence]
Nothing in this Code or in any other law shall
stop the parties from requiring membership in
a recognized collective bargaining agent as a
condition for employment
EXCEPTION: Those employees who are
already members of another union at the time
of the signing of the collective bargaining
agreement
Employees of an appropriate bargaining unit
who are not members of the recognized
collective bargaining agent may be assessed
a reasonable fee
• Amount of reasonable fee: equivalent to
the dues and other fees paid by members
of the recognized collective bargaining
agent
• Condition for assessment: If such non-
union members accept the benefits under
the collective bargaining agreement:
o Provided, That the individual
authorization required under Article
242, paragraph (o) shall not apply to
the non-members of the recognized
collective bargaining agent;
An amount, equivalent to union dues, which a
non-union member pays to the union because
he benefits from the CBA negotiated by the
union. [Azucena]
Rationale for Allowing Agency Fees
Page 159 of 262
LABOR LAW
The legal basis of the union’s right to agency
fees is neither contractual nor statutory but
quasi-contractual, deriving from the
established principle that non-union employees
may not unjustly enrich themselves by
benefiting from employment conditions
negotiated by the bargaining union. [Holy
Cross of Davao College, Inc v. Hon. Joaquin,
G.R. No. 110007 (1996)]
When Agency Fee Assessed
If such non-union member accepts the benefits
under the collective bargaining agreement.
[Art. 259(e)]
Measure of Fee
A reasonable fee equivalent to the dues and
other fees paid by members of the recognized
collective bargaining agent. [Art. 259(e)]
Requirements:
1. Non-member of SEBA
2. Member of Collective Bargaining Unit
3. Reasonable fee equivalent to the dues and
other fees paid by members
4. Acceptance of CBA benefits
UNION DUES
Union dues are payments to meet the union’s
general and current obligations. The payment
must be regular, periodic, and uniform.
[Azucena]
Every payment of fees, dues or other
contributions by a member shall be evidenced
by a receipt:
a. signed by the officer or agent making the
collection and
b. entered into the record of the organization
to be kept and maintained for the purpose.
[Art. 250 (h)]
ATTORNEY’S FEES
Payment of Attorney’s fees cannot be imposed
in individual member.
No attorney’s fees, negotiation fees, or similar
charges of any kind arising from any collective
bargaining agreement or conclusion of the
collective agreement shall be imposed on any
individual member. [Art. 228(b)]
U.P. LAW BOC LABOR 2 LABOR LAW

MANDATORY ACTIVITIES
Proper charging of attorney’s fees: Definition: A judicial process of settling
a. Charges against union funds; AND dispute laid down by the law. [Vengco v.
b. In an amount agreed upon by the parties Trajano, G.R. No. 74453 (1989)]

Any contract, agreement, or arrangement of Placement of re-negotiations for a CBA under

any sort to the contrary shall be void. [Art. compulsory arbitration does not make it a
228(b)] “mandatory activity”. [Galvadores v. Trajano,
G.R. No. 70067 (1986)]
Different types of Attorney’s Fees
Ordinary Extraordinary It dispenses with the requirement of the
Indemnity for individual written authorization duly signed by
Reasonable the employee [Art. 250(o)]
damages ordered by
compensation paid
the court to be paid
to a lawyer for legal
services rendered
by the losing party to 2. Collective Bargaining
the winning party
Agreed upon by the Awarded by the Definition, Nature, and Purpose
parties NLRC Collective bargaining is:
Payable to the • Defined as negotiations towards a
Payable to the client
lawyer collective agreement
Not limited • One of the democratic frameworks under
Limited by Art. 111
(freedom to the [Labor] Code
to 10%
contract) • Designed to stabilize the relations between
[Kaisahan at Kapatiran ng mga Manggagawa labor and management and to create a
at Kawani sa MWC-East Zone Union v. Manila climate of sound and stable industrial
Water, G.R. No. 174179 (2011)] peace.
• A mutual responsibility of the employer and
There are two concepts of attorney's fees: In the Union and is characterized as a legal
the ordinary sense, attorney's fees represent obligation. [Kiok Loy v. NLRC, G.R. No. L-
the reasonable compensation paid to a 54334 (1986)]
lawyer by his client for the legal services
rendered to the latter. a. Duty to Bargain Collectively

In its extraordinary concept, attorney's fees i. In General

may be awarded by the court as indemnity for
damages to be paid by the losing party to the Definition
prevailing party, such that, in any of the cases The duty to bargain collectively
provided by law where such award can be Meaning: the performance of a mutual
made, e.g., those authorized in Art. 2208 of the obligation to meet and convene promptly and
Civil Code, the amount is payable not to the expeditiously in good faith
lawyer but to the client, unless they have
agreed that the award shall pertain to the Purpose: negotiating an agreement with
lawyer as additional compensation or as part respect to:
thereof. [Masmud v. NLRC, G.R. No. 183385 1. wages
(2009)] 2. hours of work,
3. and all other terms and conditions of
In Masmud, the contingency agreement employment including:
between lawyer and client consisting of 39% of a. proposals for adjusting any grievances,
the monetary award was deemed not or
unconscionable by the SC. b. questions arising under such
agreement, and

Page 160 of 262

U.P. LAW BOC LABOR 2
c. executing a contract incorporating such
agreements,
d. if requested by either party, but such
duty does not compel any party to
agree to a proposal or to make any
concession. [Art. 263]
Jurisdictional Preconditions on Duty To
Bargain
1. Possession of the status of majority
representation of the employees’
representative in accordance with any of
the means of selection or designation
provided for by the Code;
2. Proof of majority representation; AND
3. Demand to bargain under Art. 261(a) [Kiok
Loy v. NLRC, G.R. No. L-54334 (1986)]
Only the labor organization designated or
selected by the majority of the employees in an
appropriate collective bargaining unit is the
exclusive representative of the employees in
such unit for the purpose of collective
bargaining. [Phil. Diamond Hotel and Resort
Inc v. Manila Diamond Hotel and Employees
Union, G.R. No. 158075 (2006); Art. 267]
Meaning of Bargaining in Good Faith
There is no per se test of good faith in
bargaining.
Good faith or bad faith is an inference to be
drawn from the facts. [Union of Filipino
Employees v. Nestle Philippines, Inc., G.R.
Nos. 158930-31 (2008)]
[T]he failure to reach an agreement after
negotiations continued for a reasonable period
does not establish a lack of good faith.
The laws invite and contemplate a collective
bargaining contract, but they do not compel
one. [Tabangao Shell Refinery Employees
Association v. Pilipinas Shell Petroleum
Corporation, G.R. No. 170007 (2014)]
Duty to Bargain does NOT include:
1. Any legal duty [on the employer] to initiate
contract negotiation [Kiok Loy v. NLRC,
G.R. No. L-54334 (1986)]
Page 161 of 262
LABOR LAW
2. The obligation to reach an agreement:
While the law makes it an obligation for the
employer and the employees to bargain
collectively with each other, such
compulsion does not include the
commitment to precipitately accept or
agree to the proposals of the other. All it
contemplates is that both parties should
approach the negotiation with an open
mind and make reasonable effort to reach
a common ground of agreement. [Union of
Filipro Employees v. Nestle, G.R. Nos.
158930-31 (2008)]
Evading the Mandatory Subjects of
Bargaining
The refusal to negotiate a mandatory subject of
bargaining is an unfair labor practice, although
either party has every desire to reach
agreement and earnestly and in all good faith
bargains to that end. However, the duty to
bargain does not obligate the parties to make
concessions or yield a position fairly held.
[Azucena]
The duty to bargain is limited to mandatory
bargaining subjects; as to other matters, he is
free to bargain or not to bargain.
Over mandatory subjects, a party may insist
on bargaining, even to the point of deadlock,
and his insistence will not be construed as
bargaining in bad faith.
Over a non-mandatory subject, on the other
hand, a party may not insist on bargaining to
the point of impasse, otherwise his insistence
can be construed as bargaining in bad faith.
Blue-Sky Bargaining
Blue-Sky Bargaining is defined as "unrealistic
and unreasonable demands in negotiations by
either or both labor and management, where
neither concedes anything and demands the
impossible." It actually is not collective
bargaining at all. [Roberts Dictionary of
Industrial Relations as cited in Standard Bank
Chartered Employees Union v. Confesor, G.R.
No. 114974 (2004)]
U.P. LAW BOC LABOR 2
Surface Bargaining
Surface bargaining is defined as "going
through the motions of negotiating," without
any real intent to reach an agreement. [Roberts
Dictionary of Industrial Relations as cited in
Standard Bank Chartered Employees Union v.
Confesor, supra.]
It violates the Act's requirement that parties
negotiate in "good faith." It is prohibited
because the bargaining status of a union can
be destroyed by going through the motions of
negotiating almost as easily as by bluntly
withholding recognition […] As long as there
are unions weak enough to be talked to death,
there will be employers who are tempted to
engage in the forms of collective bargaining
without the substance. [K-MART Corporation v.
NLRB, 1980 626 F.2d 704]
Individual Bargaining
It is an unfair labor practice for an employer
operating under a CBA to negotiate with his
employees individually.
That constitutes interference because the
company is still under obligation to bargain with
the union as the bargaining representative.
Individual bargaining contemplates a situation
where the employer bargains with the union
through the employees instead of the
employees through the union. [The Insular Life
Assurance Co. Ltd., Employees Assn. v.
Insular Life Assurance Co. Ltd, G.R. No. L-
25291 (1971)]
Boulwarism
A take-it-or-leave-it approach in negotiation
constitutes bad faith. "Although the law cannot
open a man's mind, it can at least compel him
to conduct himself as if he were trying to
persuade and were willing to be persuaded. To
offer the union a contract saying 'Take it or
leave it,' is not bargaining collectively within the
meaning of the act.” [Herald Delivery Carriers
Union v. Herald Publication Inc., G.R. No. L-
29966 (1974), citing NLRB v. Pilling and Son
Co. US, 119 F2D 32 (1941)]
Page 162 of 262
LABOR LAW
ii. When there is an Absence of
CBA
Duty to bargain collectively in the absence
of collective bargaining agreements
Condition: In the absence of an agreement or
other voluntary arrangement providing for a
more expeditious manner of collective
bargaining
Who has the duty: Employer and the
representatives of the employees
What is their duty: To bargain collectively in
accordance with the provisions of this Code
[Art. 262]
iii. When there is a CBA
General Rule: The duty to bargain collectively
shall also mean that neither party shall
terminate nor modify such agreement during its
lifetime. [Art. 264]
Substitutionary Doctrine
Note: See also discussion under V.b.2
General Rule: Even during the effectivity of a
collective bargaining agreement executed
between employer and employees [through]
their agent, the employees can change said
agent but the contract continues to bind them
up to its expiration date. They may bargain,
however, for the shortening of said expiration
date. [Elisco-Elirol Labor Union v. Noriel, G.R.
No. L-41955 (1977)].
Exception: At least sixty (60) days prior to the
expiration of the collective bargaining
agreement, either party can serve a written
notice to terminate or modify the agreement
[Art. 264].
Note: During this 60-day period, a verified
petition questioning the majority status of the
incumbent bargaining agent may also be filed
[Art. 268].
U.P. LAW BOC LABOR 2
Effect on existing CBA
It shall be the duty of both parties to keep the
status quo and to continue in full force and
effect the terms and conditions of the existing
agreement during the 60-day period and/or
until a new agreement is reached by the
parties. [Art. 264]
iv. Bargaining Procedure [Art.
262]
General Rule: Private Procedure - The
bargaining procedure shall be governed by [the
parties’] agreement or other voluntary
arrangement providing for a more expeditious
manner of collective bargaining [Art. 262]
Rationale: It is the policy of the state to
promote and emphasize the primacy of free
collective bargaining and negotiations [Art.
218-A(a)]
Exception
Labor Code Procedure – In absence of a
private agreement, the collective bargaining
procedure under Art. 261 shall be followed.
1. Written notice and statement of
proposals. When a party desires to
negotiate an agreement, it shall serve a
written notice upon the other party with a
statement of its proposals.
2. Reply. The other party shall make a reply
thereto not later than ten (10) calendar
days from receipt of such notice.
3. Conference. Should differences arise on
the basis of such notice and reply, either
party may request for a conference which
shall begin not later than ten (10) calendar
days from the date of request.
4. Board intervention and conciliation. If
the dispute is not settled, the [NCMB] shall
intervene upon request of either or both
parties or at its own initiative and
immediately call the parties to conciliation
meetings. The [NCMB] shall have the
power to issue subpoenas requiring the
attendance of the parties to such meetings.
It shall be the duty of the parties to
participate fully and promptly in the
conciliation meetings the Board may call.
Page 163 of 262
LABOR LAW
5. Voluntary arbitration. The [NCMB] shall
exert all efforts to settle disputes amicably
and encourage the parties to submit their
case to a voluntary arbitrator.
6. Prohibition against disruptive acts.
During the conciliation proceedings in the
Board, the parties are prohibited from
doing any act which may disrupt or impede
the early settlement of the disputes. [Book
V, IRR Rule XII, Sec. 1]
7. Deadlock. Any certified or duly recognized
bargaining representative may file a notice
or declare a strike or request for preventive
mediation in cases of bargaining deadlocks
and unfair labor practices. The employer
may file a notice or declare lockout or
request for preventive mediation in the
same cases. In the absence of certified or
duly recognized bargaining representative,
any legitimate labor organization in the
establishment may file a notice, request
preventive mediation or declare a strike but
only on grounds of unfair labor practice
[NCMB Manual of Procedure, Rule IV, Sec.
3]
Period to Reply; Bad Faith
[The period to reply] is merely procedural, and
non-compliance cannot be automatically
deemed to be an act of unfair labor practice.
[National Union of Restaurant Workers v. CIR,
G.R. No. L-20044 (1964)]
Failure to Reply as Indicia of Bad Faith
[The employer’s] refusal to make a counter-
proposal [...] is an indication of its bad faith.
Where the employer did not even bother to
submit an answer to the bargaining proposals
of the union, there is a clear evasion of the duty
to bargain collectively, [...] making it liable for
unfair labor practice. [General Milling Corp. v.
CA, G.R. No. 146728 (2004)]
v. Bargainable Issues
Mandatory Bargainable Issues
1. Wages
2. Hours of work
3. All other terms and conditions of
employment including proposals for
U.P. LAW BOC
adjusting any grievances or questions
arising under such agreement [Art. 263]
Examples:
1. Vacations and holidays
2. Bonuses
3. Seniority, Transfer, and Layoffs
4. Employee workloads
5. Work rules and regulations
6. Union security arrangements
7. Pension and insurance benefits for active
employees
Permissive Issues
Unilateral benefits extended by the employer
[cf. Union of Filipino Employees v. Nestle, G.R.
Nos. 158930-31 (2008)]
As in all other contracts, the parties in a CBA
may establish such stipulations, clauses, terms
and conditions as they may deem convenient
provided they are not contrary to law, morals,
good customs, public order or public policy.
[Manila Fashions v. NLRC, G.R. No. 117878
(1996)]
Test for Mandatory Bargainable Issues
The nexus between the Nature of Employment
and the Nature of the Demand: For “other
terms and conditions of employment” to
become a mandatory bargainable issue, they
must have a connection between the proposal
and the nature of the work.
In order for a matter to be subject to mandatory
collective bargaining, it must materially or
significantly affect the terms and conditions of
employment. Whether the agreement concerns
a mandatory subject of bargaining depends not
on its form, but on its practical effect. [Azucena]
Importance of Determining the Character of
the Bargaining Issue
The question as to what are mandatory and
what are merely permissive subjects of
collective bargaining is of significance on the
right of a party to insist on his position to the
point of stalemate.
A party may refuse to enter into a collective
bargaining contract unless it includes a
Page 164 of 262
LABOR 2 LABOR LAW
desired provision as to a matter which is a
mandatory subject of collective bargaining.
[But] a refusal to contract is in substance a
refusal to bargain about matters which are
mandatory subjects of collective bargaining
unless the agreement covers a matter which is
not a mandatory subject.
It is no answer to the charge of refusal to
bargain in good faith that the insistence on the
disputed clause was not the sole cause of the
failure to agree or that agreement was not
reached with respect to other disputed clauses.
Such refusal will not be deemed as an unfair
labor practice.
However, if a party refuses to contract based
on an issue which is not a mandatory
bargainable issue, the party will be guilty of
ULP. [Samahang Manggagawa sa Top Form v.
NLRC, G.R. No. 113856 (1998)]
Minutes of Negotiation
Where a proposal raised by a contracting party
does not find print in the CBA, it is not a part
thereof and the proponent has no claim
whatsoever to its implementation. [...]
The Minutes [only] reflects the proceedings
and discussions undertaken in the process of
bargaining for worker benefits in the same way
that the minutes of court proceedings show
what transpired therein.
At the negotiations, it is but natural for both
management and labor to adopt positions or
make demands and offer proposals and
counter-proposals.
However, nothing is considered final until the
parties have reached an agreement.
[Samahang Manggagawa sa Top Form v.
NLRC, G.R. No. 113856 (1998)]
Suspension of Bargaining Negotiations
In order to allow the employer to validly
suspend the bargaining process there must be
a valid petition for certification election raising
a legitimate representation issue.
U.P. LAW BOC LABOR 2
Hence, the mere filing of a petition for
certification election does not ipso facto justify
the suspension of negotiation by the employer.
[Colegio de San Juan de Letran v. Association
of Employees, G.R. No. 141471 (2000)]
vi. Bargaining Deadlock
Deadlock is defined as the “counteraction of
things producing entire stoppage: a state of
inaction or of neutralization caused by the
opposition of persons or of factions: a
standstill.
There is a deadlock when there is a “complete
blocking or stoppage resulting from the action
of equal and opposed forces.”
The word is synonymous with the word
impasse which, “presupposes reasonable
effort at good faith bargaining which, despite
noble intentions, does not conclude in
agreement between the parties.” [Divine World
Tacloban v. Secretary of Labor, G.R. No.
91915 (1992)]
Collective Bargaining Deadlock is defined as
the situation between the labor and the
management of the company where there is
failure in the collective bargaining negotiations
resulting in a stalemate. [San Miguel Corp. v
NLRC, G.R. No. 99266 (1999)].
Privileged Communication in Conciliation
Proceedings
Information and statements made at
conciliation proceedings shall be treated as
privileged communication and shall not be
used as evidence in the Commission.
Conciliators and similar officials shall not testify
in any court or body regarding any matters
taken up at conciliation proceedings conducted
by them. [Art. 233]
Rationale:
1. A person is entitled to ‘buy his or her peace’
without danger of being prejudiced in case
his or her efforts fail
2. Offers for compromise are irrelevant
because they are not intended as
admissions by the parties making them
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LABOR LAW
[Pentagon Steel v. CA, G.R. No. 174141
(2009)]
b. Collective Bargaining
Agreement
Collective Bargaining Agreement or “CBA”
refers to the negotiated contract between a
legitimate labor organization and the employer
concerning wages, hours of work and all other
terms and conditions of employment in a
bargaining unit. [Sec. 1(k), Rule I, Book V, IRR]
Nature of the CBA
The CBA is the law between the parties and
they are obliged to comply with its provisions.
[Zuellig Pharma Corporation v. Alice Sibal,
G.R. No. 173587 (2013)]
Although it is a rule that a contract freely
entered between the parties should be
respected, since a contract is the law between
the parties, said rule is not absolute. [... Citing
Art. 1700,] the relations between capital and
labor are not merely contractual. They are so
impressed with public interest that labor
contracts must yield to the common good.
[Halagueña v. Philippine Airlines, G.R. No.
172013 (2009)]
Beneficiaries of the CBA
The labor organization
a. Designated, or
b. Selected by the majority of the employees
in an appropriate collective bargaining unit,
shall be the exclusive representative of the
employees in such unit for the purpose of
collective bargaining. [Art. 267]
When a collective bargaining contract is
entered into by the union representing the
employees and the employer, even the non-
member employees are entitled to the benefits
of the contract.
To accord its benefits only to members of the
union without any valid reason would constitute
undue discrimination against non-members.
[New Pacific Timber and Supply v. NLRC, G.R.
No. 124224 (2000)]
U.P. LAW BOC LABOR 2
Contract Interpretation
Art. 1702, Civil Code. In case of doubt, all
labor legislation and all labor contracts shall
be construed in favor of the safety and
decent living for the laborer.
A CBA, as a labor contract within the
contemplation of Art. 1700 of the Civil Code of
the Philippines which governs the relations
between labor and capital, [it] is not merely
contractual in nature but impressed with public
interest, thus, it must yield to the common
good.
As such, it must be construed liberally rather
than narrowly and technically.
The courts must place a practical and realistic
construction upon it, giving due consideration
to the context in which it is negotiated, and
purpose which it is intended to serve. [Davao
Integrated Port Stevedoring Services v.
Abarquez, G.R. No. 102132 (1993)]
General Rule: [W]here the CBA is clear and
unambiguous, it becomes the law between the
parties and compliance therewith is mandated
by the express policy of the law. [Zuellig
Pharma Corporation v. Alice Sibal, G.R.
No.173587 (2013)]
Exception: If the words appear to be contrary
to the evident intention of the parties, the latter
shall prevail over the former. [Kimberly Clark
Phils. v. Lorredo, G.R. No. 103090 (1993)]
i. Mandatory provisions in a
Collective Bargaining
Agreement
Note: See also v. Bargainable Issues under “a.
Duty to bargain collectively”
Art. 273. Grievance Machinery and
Voluntary Arbitration
The parties to a Collective Bargaining
Agreement shall include therein provisions that
will ensure the mutual observance of its terms
and conditions.
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They shall establish a machinery for the
adjustment and resolution of grievances
1. Arising from the interpretation or
implementation of their Collective
Bargaining Agreement, and
2. Those arising from the interpretation or
enforcement of company personnel
policies.
All grievances submitted to the grievance
machinery which are not settled within seven
(7) calendar days from the date of its
submission shall automatically be referred to
voluntary arbitration prescribed in the
Collective Bargaining Agreement.
For this purpose, parties to a Collective
Bargaining Agreement shall:
1. name and designate in advance a
Voluntary Arbitrator or panel of Voluntary
Arbitrators, or
2. include in the agreement a procedure for
the selection of such Voluntary Arbitrator or
panel of Voluntary Arbitrators, preferably
from the listing of qualified Voluntary
Arbitrators duly accredited by the Board.
In case the parties fail to select a Voluntary
Arbitrator or panel of Voluntary Arbitrators, the
Board shall designate the Voluntary Arbitrator
or panel of Voluntary Arbitrators
• When: as may be necessary
• How: pursuant to the selection procedure
agreed upon in the Collective Bargaining
Agreement
• Effect: designated Voluntary Arbitrator or
panel of Voluntary Arbitrators shall act with
the same force and effect as if the
Arbitrator or panel of Arbitrators have been
selected by the parties as described above.
ii. Administration and
Enforcement of CBA
Substandard CBA
A CBA that falls below the minimum standards
required by law is prohibited. Nonetheless, RA
9481 removed substandard CBAs as a ground
for the cancellation of registration of union
registration.
U.P. LAW BOC LABOR 2
Note: A substandard CBA cannot bar a petition
for certification election under the contract-bar
rule. [Prof. Battad]
Ratification
Within thirty (30) days from the execution of a
collective bargaining agreement
The parties shall submit copies of the same
directly to the Bureau or the Regional Offices
of the Department of Labor and Employment
for registration, accompanied with:
1. Verified proofs of its posting in two
conspicuous places in the place of work,
and
2. Ratification by the majority of all the
workers in the bargaining unit. [Art. 237;
Book V, IRR Rule XVII, Sec. 2 (c)]
[T]he posting of copies of the collective
bargaining agreement is the responsibility of
the employer.
The fact that there were "no impartial members
of the unit" is immaterial.
The purpose of the requirement is precisely to
inform the employees in the bargaining unit of
the contents of said agreement so that they
could intelligently decide whether to accept the
same or not. [Associated Labor Unions v.
Ferrer-Calleja, G.R. No. L-77282 (1989)]
Effect of Non-ratification
General Rule: The collective bargaining
agreement should be ratified by the majority of
all the members of the bargaining unit. Non-
compliance with this requirement renders the
CBA ineffective. [Associated Trade Unions v.
Trajano, G.R. No. 75321 (1988)]
Exception: Even if there was no ratification,
the CBA will not be invalid or void considering
that the employees have enjoyed benefits from
it.
[The employees] cannot receive benefits under
provisions favorable to them and later insist
that the CBA is void simply because other
provisions turn out not to the liking of certain
employees. [Planters Products Inc. v. National
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LABOR LAW
Labor Relations Commission, G.R. No. 78524
(1989)]
Note: Ratification of the CBA by the employees
in the bargaining unit is not needed when the
CBA is a product of an arbitral award as a result
of voluntary arbitration under Art. 275 or from
the secretary’s assumption of jurisdiction or
certification under Art. 278 (g).
Registration
Within thirty (30) days from the execution of a
Collective Bargaining Agreement, the parties
shall submit copies of the same directly to the
Bureau or the Regional Offices of the
Department of Labor and Employment for
registration […]. [Art. 237]
iii. Requirements for Registration
The application for CBA registration shall be
accompanied by the original and two (2)
duplicate copies of the following documents
which must be certified under oath by the
representative(s) of the employer(s) and labor
union(s) concerned:
1. The collective bargaining agreement
2. A statement that the collective bargaining
agreement was posted in at least two (2)
conspicuous places in the establishment or
establishments concerned for at least five
(5) days before its ratification
3. A statement that the collective bargaining
agreement was ratified by the majority of
the employees in the bargaining unit of the
employer or employees concerned. [Sec.
2, Rule XVII, Book V, IRR]
Specific information submitted in
confidence
General rule: Shall not be disclosed
Exceptions:
1. authorized by Secretary of Labor
2. when it is at issue in any judicial litigation
3. public interest or national security requires
[Art. 237]
U.P. LAW BOC LABOR 2
Effect of Unregistered CBA
An unregistered CBA is binding upon the
parties but cannot serve as a bar to a petition
for certification election under the contract-bar
rule.
Sec. 3, Rule VIII, Book V states: A petition for
certification election may be filed anytime,
except: [...] (d) when a collective bargaining
agreement between the employer and a duly
recognized or certified bargaining agent has
been registered in accordance with Art. 231
[now 237] of the Labor Code.
iv. CBA Effectivity
If it is the first ever CBA, the effectivity date is
whatever date the parties agree on.
If it is a renegotiated CBA, the retroactivity of
the date of effectivity depends upon the
duration of conclusion [Art. 265]:
1. If it is concluded within 6 months from the
expiry date, the new CBA will retroact to the
date following the expiry date [Illustration:
expiry date: December 13; renegotiations
concluded on November 30; effectivity
date: December 14].
2. If it is concluded beyond 6 months from
the expiry date, the matter of retroaction
and effectivity is left with the parties.
Hold Over Principle
It shall be the duty of both parties to keep the
status quo and to continue in full force and
effect the terms and conditions of the existing
agreement:
a. during the 60-day period and/or
b. until a new agreement is reached by the
parties. [Art. 264, last sentence]
The last sentence of Art. 264, which provides
for automatic renewal [upon expiry], pertains
only to the economic provisions of the CBA
and does not include representational aspect
of the CBA.
A [CBA which continues to take effect beyond
its expiration date] cannot constitute a bar to a
filing of petition for certification election.
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LABOR LAW
When there is a representational issue, the
status quo provision insofar as the need to
await the creation of a new agreement will not
apply.
Otherwise, it will create an absurd situation
where the union members will be forced to
maintain membership by virtue of the union
security clause existing under the CBA and,
thereafter, support another union when filing a
petition for certification election.
If we apply it, there will always be an issue of
disloyalty whenever the employees exercise
their right to self-organization. The holding of a
certification election is a statutory policy that
should not be circumvented, or compromised.
[PICOP Resources, Inc. v. Taneca et al., G.R.
No. 160828 (2010)]
Arbitrated CBA
In the absence of an agreement between the
parties, an arbitrated CBA takes on the nature
of any judicial or quasi-judicial award. [Manila
Electric Company v. Quisumbing, G.R. No.
127598 (1999)]
[I]n the absence of the specific provision of law
prohibiting retroactivity of the effectivity of the
arbitral awards issued by the Secretary of
Labor pursuant to Art. 263(g) of the Labor
Code, [the Secretary] is deemed vested with
plenary powers to determine the effectivity
thereof. [LMG Chemicals v. Secretary of Labor,
G.R. No. 127422 (2001)]
v. CBA Duration
Art. 265. Terms of a Collective Bargaining
Agreement – Any Collective Bargaining
Agreement 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 of the Collective
Bargaining Agreement shall be renegotiated
not later than three (3) years after its
execution. [...]
CBA Duration for economic provisions
3 years
U.P. LAW BOC
CBA Duration for non-economic provisions
5 years for representational or political issues;
cannot be renegotiated to extend beyond 5
years. [FVC Labor Union-PTGWO v.
SANAMA-FVC-SIGLO, G.R. No. 176249
(2009)]
CBA Duration: Freedom Period
No petition questioning the majority status of
the incumbent bargaining agent shall be
entertained and no certification election shall
be conducted by the DOLE outside of the
sixty-day period immediately before the
date of the expiry of such five-year term of
the Collective Bargaining Agreement. [Art.
265]
CBA and 3rd Party Applicability
Labor contracts such as employment contracts
and CBAs are not enforceable against a
transferee of an enterprise, labor contracts
being in personam, is binding only between the
parties.
As a general rule, there is no law requiring a
bona fide purchaser of the assets of an on-
going concern to absorb in its employ the
employees of the latter.
However, although the purchaser of the assets
or enterprise is not legally bound to absorb in
its employ the employees of the seller of such
assets or enterprise, the parties are liable to the
employees if the transaction between the
parties is colored or clothed with bad faith.
[Sundowner Development Corporation v.
Drilon, G.R. No. 82341 (1989)]
Where the change of ownership is in bad faith
or is used to defeat the rights of labor, the
successor-employer is deemed to have
absorbed the employees and is held liable for
the transgressions of his or her predecessor
[Philippine Airlines, Inc. v. NLRC, G.R. No.
125792 (1998)]
General Rule: An innocent transferee of a
business establishment has no liability to the
employees of the transferor to continue
employing them. Nor is the transferee liable for
Page 169 of 262
LABOR 2 LABOR LAW
past unfair labor practices of the previous
owner.
Exception: When the liability therefore is
assumed by the new employer under the
contract of sale, or when liability arises
because of the new owner's participation in
thwarting or defeating the rights of the
employees.
The most that the transferee may do, for
reasons of public policy and social justice, is to
give preference to the qualified separated
employees in the filling of vacancies in the
facilities of the purchaser. [Manlimos v. NLRC,
G.R. No. 113337 (1995)]
The general rule applies only to the sale and
purchase of asset. If the method of acquisition
is by way of purchase of controlling shares, the
employer remains the same and the new
owners must honor the existing contracts.
E. UNFAIR LABOR
PRACTICES
1. Nature, Aspects
Unfair labor practice refers to acts that violate
the workers’ right to organize. The prohibited
acts are related to the workers’ right to self-
organization and to the observance of a
CBA. Without that element, the acts, no matter
how unfair, are not unfair labor practices. The
only exception is Art. 259(f) [i.e. to dismiss,
discharge or otherwise prejudice or
discriminate against an employee for having
given or being about to give testimony under
this Code]. [Philcom Employees Union v. Phil.
Global, G.R. No. 144315 (2006)]
Nature of ULP
a. inimical to the legitimate interests of both
labor and management, including their
right to bargain collectively and otherwise
deal with each other in an atmosphere of
freedom and mutual respect
b. disrupt industrial peace
U.P. LAW BOC LABOR 2
c. hinder the promotion of healthy and stable
labor-management relations
d. violations of the civil rights of both labor and
management but are also criminal offenses
[Art. 258]
Four forms of Unfair Labor Practice in
Collective Bargaining
1. Failure or refusal to meet and convene
2. Evading the mandatory subjects of
bargaining
3. Bargaining in bad faith
4. Gross violation of the CBA
Purpose of the Policy Against ULPs
Protection of right to self-organization and/or
collective bargaining:
a. The employee is not only protected from
the employer but also from labor
organizations.
b. The employer is also protected from ULP
committed by a labor organization.
The public is also protected because it has an
interest in continuing industrial peace.
Employer-Employee Relationship Required
General Rule: An unfair labor practice may be
committed only within the context of an
employer-employee relationship [American
President Lines v. Clave, G.R. No. L-51641
(1982)]
Exception: “Yellow Dog” condition or
contract: to require as a condition of
employment that a person or an employee
shall not join a labor organization or shall
withdraw from one to which he belongs. [Art.
259 (b)]
Parties Not Estopped from Raising ULP by
Eventual Signing of the CBA
The eventual signing of the CBA does not
operate to estop the parties from raising unfair
labor practice charges against each other.
[Standard Chartered Bank Union v. Confesor,
G.R. No. 114974 (2004)]
Statutory Construction
The Labor Code leaves to the court the work of
applying the law's general prohibitory
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LABOR LAW
language, in light of infinite combinations of
events, which may be charged as constituting
an unfair labor practice. [HSBC Employee
Union v. NLRC, G.R. No. 125038 (1997)]
Note: Bargaining in bad faith constitutes Unfair
Labor Practice, which may be committed by
either Employer or Labor Organization.
2. By Employers
a. Interference/Restraint/Coercion
b. Yellow Dog Contracts
c. Contracting Out Services which
Discourage Unionism
d. Company Union
e. Discrimination to Encourage/ Discourage
Unionism
f. Discrimination for having given or about to
give testimony
g. Violation of Duty to Bargain Collectively
h. Payment of Negotiation or Attorney’s Fees
i. Violation of a Collective Bargaining
Agreement
a. Interference/Restraint/Coercion
Art. 259(a). Unfair Labor Practices of
Employers. – To interfere with, restrain or
coerce employees in the exercise of their
right to self-organization
The fact that the resignations of the union
members occurred during the pendency of the
case before the labor arbiter shows GMC’s
desperate attempts to cast doubt on the
legitimate status of the union. The ill-timed
letters of resignation from the union members
indicate that GMC had interfered with the right
of its employees to self-organization. [General
Milling Corporation v. Court of Appeals, G.R.
146728 (2004)]
Interrogation
General rule: employer may interrogate its
employees regarding their union affiliation for
legitimate purposes and with the assurance
that no reprisals would be taken against the
unionists.
U.P. LAW BOC LABOR 2
Exception: when interrogation interferes with
or restrains employees' right to self-
organization. [Phil. Steam Navigation Co. v.
Phil. Marine Officer’s Guild, G.R. Nos. L-20667
and 20669 (1965)]
Note: The interrogation of the ER should not be
persistent and/or hostile
Speech
The acts of a company which subjects a union
to vilification and its participation in soliciting
membership for a competing union are also
acts constituting a ULP. [Phil. Steam
Navigation Co. v. Phil. Marine Officer’s Guild,
G.R. Nos. L-20667 and 20669 (1965)]
An employer may not send letters containing
promises or benefits, nor of threats of obtaining
replacements to individual workers while the
employees are on strike due to a bargaining
deadlock. This is tantamount to interference
and is not protected by the Constitution as free
speech. [Insular Life Assurance Co.
Employees Assn. v. Insular Life Assurance
Co. Ltd, G.R. No. L-25291 (1971)]
Espionage
Espionage and/or surveillance by the employer
of union activities are instances of interference,
restraint or coercion of employees in
connection with their right to organize, form
and join unions as to constitute unfair labor
practice. […] The information obtained by
means of espionage is invaluable to the
employer and can be used in a variety of cases
to break a union. [Insular Life Assurance Co.
Employees Assn. v. Insular Life Assurance
Co. Ltd, G.R. No. L-25291 (1971)]
Concerted Activities
The mass demonstration and stoppage of work
of the Union is not ULP. They didn’t
demonstrate against the employer, but against
the Pasig police for alleged human rights
abuses. This is merely an exercise of their
freedom of expression, assembly, and right to
redress of grievances enshrined in the
Constitution. [Philippine Blooming Mills
Employment Organization v. Philippine
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LABOR LAW
Blooming Mills Co., Inc., G.R. No. L-31195
(1973)]
b. Yellow Dog Contracts
Art. 259(b). Unfair Labor Practices of
Employers. – To require as a condition of
employment that a person or an employee
shall not join a labor organization or shall
withdraw from one to which he belongs;
Yellow dog contracts require, as a condition of
employment, that a person or an employee
shall not join a labor organization or shall
withdraw from one to which he belongs.
Requisites of a Yellow Dog Contract:
1. A representation by the employee that he
is not a member of a labor organization
2. A promise by the employee that he will not
join a union
3. A promise by the employee that upon
joining a labor organization, he will quit his
employment [Azucena]
c. Contracting Out Services which
Discourage Unionism
Art. 259(c). Unfair Labor Practices of
Employers. – To contract out services or
functions being performed by union
members when such will interfere with,
restrain or coerce employees in the exercise
of their right to self-organization;
General Rule: contracting out is not a ULP, but
is covered by the employer’s management
prerogative.
Exception [Art. 259 (c)]:
1. contracted-out services or functions are
performed by union members AND
2. contracting out will interfere with, restrain,
or coerce employees in the exercise of their
right to self-organization.
d. Company Union
Art. 259(d). Unfair Labor Practices of
Employers. – To initiate, dominate, assist or
otherwise interfere with the formation or
U.P. LAW BOC LABOR 2
administration of any labor organization,
including the giving of financial or other
support to it or its organizers or supporters;
Company union means any labor
organization whose formation, function or
administration has been assisted by any act
defined as unfair labor practice by this Code.
[Art. 219(i)]
The employer commits ULP if it initiates,
dominates, or otherwise interferes with the
formation or administration of any labor
organization.
Example: giving out financial aid to any union's
supporters or organizers.
e. Discrimination to Encourage/
Discourage Unionism [Art. 259
(e)]
General Rule: it is ULP to discriminate in
regard to wages, hours of work, and other
terms and conditions of employment in order to
encourage or discourage membership in any
labor organization.
Exception: Union security clauses
Union security is a generic term which is
applied to and comprehends “closed shop,”
“union shop,” “maintenance of membership” or
any other form of agreement which imposes
upon employees the obligation to acquire or
retain union membership as a condition
affecting employment. [NUWHRAIN v. NLRC,
G.R. No. 179402 (2008)]
[Union security clause] is an indirect restriction
on the right of an employee to self-
organization. It is a solemn pronouncement of
a policy that while an employee is given the
right to join a labor organization, such right
should only be asserted in a manner that will
not spell the destruction of the same
organization. [Tanduay Distillery Labor Union
v. NLRC, G.R. No. 75037 (1987)]
[Employees], although entitled to disaffiliation
from their union to form a new organization of
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their own, must, however, suffer the
consequences of their separation from the
union under the security clause of the CBA.
[Villar v. Inciong, G.R. No. L-50283-84 (1983)].
Statutory Basis and Rationale
Art. 259(e). Unfair Labor Practices of
Employers. – Nothing in this Code or in any
other law shall stop the parties from requiring
membership in a recognized collective
bargaining agent as a condition for
employment, except those employees who
are already members of another union at the
time of the signing of the collective
bargaining agreement.
The law has allowed stipulations for 'union
shop' and 'closed shop' as means of
encouraging workers to join and support the
union of their choice in the protection of their
rights and interests vis-a-vis the employer. [Del
Monte Philippines v. Salvidar, G.R. No. 158620
(2006)]
Purpose
To safeguard and ensure the existence of the
union and thus, promote unionism in general
as a state policy.
It is the policy of the State to promote unionism
to enable the workers to negotiate with the
management on the same level and with more
persuasiveness than if they were to individually
and independently bargain for the
improvement of their respective conditions. […]
For this reason, the law has sanctioned
stipulations for the union shop and closed shop
as a means of encouraging the workers to join
and support the labor union of their own choice
vis-à-vis the employer. [Liberty Flour Mills
Employees v. Liberty Flour Mills, G.R. No.
58768-70 (1989)]
Coverage
General Rule: All employees in the bargaining
unit covered by the union security clause are
subject to its terms
U.P. LAW BOC LABOR 2
Exception:
1. Employees who are already members of
another union at the time of the signing of
the collective bargaining agreement may
not be compelled by any union security
clause to join any union. [Art. 254 (e)]
2. Employees already in service at the time
the closed shop union security clause took
effect.
A closed shop provision in a CBA is not to
be given a retroactive effect as to preclude
its being applied to employees already in
service. [Guijarno v. CIR, G.R. No. L-
28791-93 (1973)]
3. Any employee who, at the time the union
security clause took effect, is a bona fide
member of religious organization which
prohibits its members from joining labor
unions on religious grounds [Reyes v.
Trajano, 209 SCRA 484 (1992)].
4. Confidential employees who are excluded
from the rank-and-file bargaining unit.
5. Employees excluded from the union
security provisions by express terms of the
agreement [BPI v. BPI Employees Union-
Davao Chapter, G.R. No. 164301 (2010)].
TYPES OF UNION SECURITY CLAUSE
1. Closed shop
Condition for employment
An agreement where only union members may
be employed and, for the duration of the
agreement, remains a member in good
standing of a union.
A closed shop may be defined as an enterprise
in which, by agreement between the employer
and his employees or their representatives, no
person may be employed in any or certain
agreed departments of the enterprise unless
he or she is, becomes, and, for the duration of
the agreement, remains a member in good
standing of a union entirely comprised of or of
which the employees in interest are a part.
[General Milling Corporation (GMC) v. Casio,
G.R. No. 149552 (2010)]
The closed shop provision can also be a potent
weapon wielded by the union against the
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workers whom the union is supposed to protect
in the first place. Hence, any doubt as to the
existence of a closed shop provision in the CBA
will be resolved in favor of the nonexistence of
the closed shop provision. [Azucena]
2. Maintenance of membership shop
Condition for continued employment
An agreement where present and future
employees are not compelled to join the SEBA,
but once so joined, they must maintain their
membership as a condition for continued
employment until they are promoted or
transferred out of the bargaining unit or the
agreement is terminated.
There is maintenance of membership shop
when employees, who are union members as
of the effective date of the agreement, or who
thereafter become members, must maintain
union membership as a condition for [their]
continued employment until they are promoted
or transferred out of the bargaining unit or the
agreement is terminated. [General Milling
Corporation (GMC) v. Casio, G.R. No. 149552
(2010)]
3. Union shop
Condition for continued employment
There is union shop when all new regular
employees are required to join the union within
a certain period as a condition for their
continued employment. [General Milling
Corporation (GMC) v. Casio, G.R. No. 149552
(2010)]
Non-members may be hired, but to retain
employment, they must become union
members after a certain period. The
requirement applies to present and future
employees. [Azucena]
4. Modified union shop
Condition for continued employment of
future employees
Employees who are not union members at the
time of signing the contract need not join the
U.P. LAW BOC LABOR 2
union, but all workers hired thereafter must
join. [Azucena]
5. Agency shop
Employees belonging to an appropriate
collective bargaining unit who are not members
of the recognized collective bargaining agent
may be assessed a reasonable fee equivalent
to the dues and other fees paid by members of
the recognized collective bargaining agent, if
such non-union members accept the benefits
under the collective agreement.
Provided, That the individual authorization
required under Art. [250], paragraph (o) of [the
Labor] Code shall not apply to non-members of
the recognized collective bargaining agent [Art.
259(e)].
ENFORCEMENT OF UNION SECURITY
CLAUSE
Termination due to Union Security
Provision
Termination of employment by virtue of a union
security clause strengthens the union and
prevents disunity in the bargaining unit within
the duration of the CBA. The authorized
bargaining representative gains more numbers
and strengthens its position as against other
unions which may want to claim majority
representation. [Alabang Country Club v.
NLRC, G.R. No. 170287 (2008)]
Requisites for the enforcement of Union
Security Clauses
In terminating the employment of an employee
by enforcing the union security clause, the
employer needs only to determine and prove
that:
1. The union security clause is applicable;
2. The union is requesting for the
enforcement of the union security provision
in the CBA;
3. There is sufficient evidence to support the
union’s decision to expel the employee
from the union. [Alabang Country Club v.
NLRC, G.R. No. 170287 (2008)]
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LABOR LAW
Company must conduct separate
investigation or hearing
The enforcement of union security clauses is
authorized by law provided such enforcement
is not characterized by arbitrariness, and
always with due process. Even if there are
valid grounds to expel the union officers, due
process requires that these union officers be
accorded a separate hearing by respondent
company. [Malayang Samahan ng
Manggagawa sa M. Greenfield v. Ramos, G.R.
No. 113907 (2000)]
Requirement of Due Process
The requirements laid down by the law in
determining whether or not an employee was
validly terminated must still be followed even if
it is based on a [union security clause] of a
CBA, i.e. the substantive as well as the
procedural due process requirements. [Del
Monte v. Saldivar, G.R. No. 158620 (2006)]
Obligations and Liabilities
Where the employer dismissed his employees
in the belief in good faith that such dismissal
was required by the [union security provision]
of the collective bargaining agreement with the
union, he may not be ordered to pay back
compensations to such employees although
their dismissal is found to be illegal.
[Confederated Sons of Labor v. Anakan
Lumber Co., G.R. No. L-12503 (1960)]
As dictated by fairness, […] the union shall be
liable to pay their backwages. This is because
management would not have taken the action
it did, had it not been for the insistence of the
labor union seeking to give effect to its
interpretation of a closed shop provision.
[Guijarno v. CIR, G.R. No. L-28791-93 (1973)]
f. Discrimination for having given
or about to give testimony
Art. 259(f). Unfair Labor Practices of
Employers. — To dismiss, discharge or
otherwise prejudice or discriminate against
an employee for having given or being about
to give testimony;
U.P. LAW BOC LABOR 2
Note: This is broader than the prohibition under
Art. 118 because Art. 259 (f) covers testimony
under the whole Code, while Art. 118 only
covers testimony under Book I: Pre-
Employment, Title II: Wages.
Note further: Includes not giving testimony
[Azucena].
g. Violation of Duty to Bargain
Collectively
Art. 259(g). Unfair Labor Practices of
Employers — To violate the duty to bargain
collectively as prescribed by this Code;
Collective bargaining does not end with the
execution of an agreement. Being a continuous
process, the duty to bargain necessarily
imposes on the parties the obligation to live up
to the terms of such a collective bargaining
agreement if entered into, it is undeniable that
non-compliance therewith constitutes an unfair
labor practice. [Shell Oil Workers Union v. Shell
Co., G.R. No. L-28607 (1971)]
Note: See ULP in Collective Bargaining above.
ACTS DEEMED AS REFUSAL TO BARGAIN
1. Refusal to bargain when there is an
unresolved petition for union
cancellation
“That there is a pending cancellation
proceedings against the union is not a bar to
set in motion the mechanics of collective
bargaining. […] Unless [the union’s] certificate
of registration and status as the certified
bargaining agent is revoked, [the employer], by
express provision of the law, is duty bound to
collectively bargain with the Union.” [Capitol
Medical Center v. Trajano, G.R. No. 155690
(2005)]
2. Employer’s suspension of operations in
order to forestall a demand for
collective bargaining
By admitting that the closure [of the business]
was due to irreconcilable differences between
Page 175 of 262
LABOR LAW
the Union and the school management, […]
SJCI in effect admitted that it wanted to end the
bargaining deadlock and eliminate the problem
dealing with the demands of the union. [St.
John Colleges Inc. v. St. John Academy
Faculty and Employees Union, G.R. No.
167892 (2006)]
3. Implied refusal
The school is guilty of unfair labor practice
when it failed to make a timely reply to the
proposals of the union more than one month
after the same were submitted by the union. In
explaining its failure to reply, the school merely
offered a feeble excuse that its Board of
Trustees had not yet convened to discuss the
matter. Clearly, its actuation showed a lack of
sincere desire to negotiate. [Colegio de San
Juan de Letran v. Association of Employees
and Faculty of Letran, G.R. No. 141471 (2000)]
ACTS NOT DEEMED REFUSAL TO
BARGAIN
1. Adoption of an adamant bargaining
position in good faith, particularly where the
company is operating at a loss
2. Refusal to bargain over demands for
commission of unfair labor practices
3. Refusal to bargain during period of illegal
strike
4. Not initiating the bargaining
5. Refusal to bargain where the union
demands for recognition and bargaining
within the year following a certification
election, and the clear choice is no union
and no ad interim significant change has
taken place in the unit
6. Refusal to bargain because the other party
is making unlawful bargaining demands
h. Payment of Negotiation or
Attorney’s Fees
Art. 259(h). Unfair Labor Practices of
Employers — To 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 dispute;
U.P. LAW BOC LABOR 2
Sweetheart contracts are favorable both to the
union and the employer at the expense of the
employees. The settlement of bargaining
issues must be made by fair bargaining in good
faith, and not through the payment of
negotiation or attorney's fees which will
ultimately lead to sweetheart contracts.
i. Violation of a Collective
Bargaining Agreement [Art. 259
(i)]
Art. 259(i) Unfair Labor Practices of
Employers — To violate a collective
bargaining agreement.
Flagrant and/or Malicious Refusal to
Comply with Economic Provisions
Required
Art. 274. Jurisdiction of Voluntary
Arbitrators. – Accordingly, violations of a
Collective Bargaining Agreement, except
those which are gross in character, shall no
longer be treated as unfair labor practice and
shall be resolved as grievances under the
Collective Bargaining Agreement.
For purposes of this Art., gross violations of
Collective Bargaining Agreement shall mean
flagrant and/or malicious refusal to comply
with the economic provisions of such
agreement.
Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to
comply with its economic provisions, shall not
be considered unfair labor practice and shall
not be strikeable. [Book V, Rule XXII, Sec. 5]
Note: The list in Art. 259 is not exhaustive.
Other acts which are analogous to those
enumerated can be ULPs.
The alleged violation of the CBA, even
assuming it was malicious and flagrant, is not
a violation of an economic provision, thus
not an Unfair Labor Practice. [BPI Employees
Union-Davao FUBU v. BPI, G.R. No. 174912
(2013)]
Page 176 of 262
LABOR LAW
An employer cannot be considered to have
committed a gross and economic violation of
the CBA when it, in good faith, withheld union
dues and death benefits from the union upon
written request of the union members in light of
the conflict between the members and the
union officers and instead deposited such
amount to the DOLE. [Arellano University
Employees and Workers Union v. Court of
Appeals, G.R. 139940 (2006)]
Motive, Conduct, Proof
To constitute ULP, the dismissals by the ER
need not be entirely motivated by union
activities or affiliations. It is enough that
discrimination was a factor. [Me-Shurn Corp. v.
Me-Shurn Workers Union-FSM, G.R. No.
156292 (2005)]
Note: The basic inspiration of the dismissals
should concern the right to self-organization.
Totality of Evidence
Where the attendant circumstances, the history
of the employer's past conduct and like
considerations, coupled with an intimate
connection between the employer's action and
the union affiliations or activities of the
particular employee or employees, taken as a
whole, raise a suspicion as to the motivation for
the employer's action, the failure of the
employer to ascribe a valid reason therefor
may justify an inference that his unexplained
conduct in respect of the particular employee
or employees was inspired by the latter's union
membership or activities. [Royal Undergarment
Corporation of the Philippines v. CIR, G.R. No.
L-39040 (1990)]
3. By Labor Organizations
a. Restraint or Coercion
b. Discrimination: Encourage/Discourage
Unionism
c. Violation of Duty, or Refuse to Bargain
d. Illegal Exaction (Featherbedding)
e. Asking or Accepting Negotiation and other
Attorney's Fees
f. Violation of a Collective Bargaining
Agreement
U.P. LAW BOC LABOR 2
a. Restraint or Coercion
Art. 260(a). Unfair Labor Practices of
Labor Organizations — To restrain or
coerce employees in the exercise of their
right to self-organization. However, a labor
organization shall have the right to prescribe
its own rules with respect to the acquisition
or retention of membership;
“Interfere” is not included in Art. 260 simply
because any act of a labor organization
amounts to interference to the right of self-
organization.
b. Discrimination: Encourage/
Discourage Unionism
Art. 260(b). Unfair Labor Practices of
Labor Organizations — To cause or
attempt to cause an employer to discriminate
against an employee, including
discrimination against an employee with
respect to whom membership in such
organization has been denied; or terminate
an employee on any ground other than the
usual terms and conditions under which
membership or continuation of membership
is made available to other members;
General rule: It is a ULP for a labor
organization to cause an employer to
discriminate against an employee.
Exception: Provisions of a valid union security
clause and other company policies applicable
to all employees.
c. Violation of Duty, or Refuse to
Bargain
Art. 260(c) Unfair Labor Practices of
Labor Organizations — To violate the duty,
or refuse to bargain collectively with the
employer, provided it is the representative of
the employees;
Note: See ULP in Collective Bargaining above.
Note further: See discussion under 2(g).
Page 177 of 262
LABOR LAW
d. Illegal Exaction
(Featherbedding)
Art. 260(d). Unfair Labor Practices of
Labor Organizations — To cause or
attempt to cause an employer to pay or
deliver or agree 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, including
the demand for fee for union negotiations;
The practice of the labor organization to cause
or attempt to cause an employer to pay or
deliver or agree to pay or deliver money or
other things of value, in the nature of an
exaction, for services which are not performed
or are not to be performed, including the
demand for a fee for union negotiations.
e. Asking or Accepting
Negotiation and other
Attorney's Fees
Art. 260(e). Unfair Labor Practices of
Labor Organizations — To ask for or
accept negotiation or attorney's fees from
employers as part of the settlement of any
issue in collective bargaining or any other
dispute
See counterpart in ULP by Employers
(sweetheart contracts).
f. Violation of a Collective
Bargaining Agreement
Art. 260(f). Unfair Labor Practices of
Labor Organizations — To violate a
collective bargaining agreement.
Gross Violations of the CBA
Art. 274. Jurisdiction of Voluntary
Arbitrators. – Accordingly, violations of a
Collective Bargaining Agreement, except
those which are gross in character, shall no
longer be treated as unfair labor practice and
shall be resolved as grievances under the
Collective Bargaining Agreement.
U.P. LAW BOC LABOR 2
For purposes of this Art., gross violations of
Collective Bargaining Agreement shall mean
flagrant and/or malicious refusal to comply
with the economic provisions of such
agreement.
See counterpart in ULP by Employers.
F. PEACEFUL CONCERTED
ACTIVITIES
Definition
A concerted activity is one undertaken by two
or more employees to improve their terms and
conditions of work.
Nature of the Right to Strike and Lockout
The right to strike is a constitutional and legal
right of the workers, as the employers have the
inherent and statutory right to lockout within the
context of labor relations and collective
bargaining.
It is a means of last resort and presupposes
that the duty to bargain in good faith has been
fulfilled and other voluntary modes of dispute
settlement have been tried and exhausted.
[Guidelines Governing Labor Relations (1987)]
Non-abridgment of right to self-
organization
It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere
with employees and workers in their exercise
of the right to self-organization. Such right shall
include the right to (…) engage in lawful
concerted activities for the same purpose or for
their mutual aid and protection, subject to the
provisions of Art. [279] of this Code. [Art. 257]
Limitation: Concerted activities must be in
accordance with law
The strike is a powerful weapon of the working
class. Thus, it must be declared only after the
most thoughtful consultation among them,
conducted in the only way allowed; that is,
peacefully, and in every case conformably to
reasonable regulation. Any violation of the
legal requirements and strictures will render
the strike illegal, to the detriment of the very
Page 178 of 262
LABOR LAW
workers it is supposed to protect. [Batangas
Laguna Tayabas Bus Co. v. NLRC, G.R. No.
101858 (1992)]
FORMS OF CONCERTED ACTIVITIES
Concerted Activities by Labor
Organization:
a. Strike (includes slow downs, mass leaves,
sitdowns, attempts to damage destroy or
sabotage plant equipment and similar
activities)
b. Picketing
c. Boycott
Response to Concerted Activities available
to Employers:
a. Lockout
1. By Labor Organization
a. Strike
Definition
Any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute. [Art. 219(o)]
Labor Dispute
Includes any controversy or matter concerning
terms and conditions of employment or the
association or representation of persons in
negotiating, fixing, maintaining, changing or
arranging the terms and conditions of
employment, regardless of whether or not the
disputants stand in the proximate relation of
employers and employees. [Solidbank Corp. v.
EU Gamier, G.R. No. 159460 and G.R. No.
159461 (2010)]
Strikes not limited to work stoppages
The term “strike” shall comprise not only
concerted work stoppages, but also
slowdowns, mass leaves, sit-downs, attempts
to damage, destroy or sabotage plant
equipment and facilities, and similar activities.
[Samahang Manggagawa v. Sulpicio Lines,
G.R. No. 140992 (2004)]
As coercive measure by employees
A strike is a coercive measure resorted to by
laborers to enforce their demands. The idea
U.P. LAW BOC LABOR 2
behind a strike is that a company engaged in a
profitable business cannot afford to have its
production or activities interrupted, much less,
paralyzed. [Phil. Can Co. v. CIR, G.R. No. L-
3021 (1950)]
Who may declare a strike
1. The certified or duly recognized bargaining
representative
2. Any legitimate labor organization in the
absence of a certified or duly recognized
bargaining representative, but only on
grounds of ULP [Sec. 6, Rule XXII, Book V,
IRR]
No severance of employer-employee
relationship during lawful strike
Although during a strike the worker renders no
work or service and receives no compensation,
yet his relationship as an employee with his
employer is not severed or dissolved. [Elizalde
Rope Factory, Inc. v. SSS, G.R. No. L-15163
(1962)]
Payment of wages during lawful strikes
General rule: Striking employees are not
entitled to the payment of wages for un-worked
days during the period of the strike pursuant to
the “no work-no pay” principle.
Exception: If there is no work performed by the
employee there can be no wage or pay unless
the laborer was able, willing and ready to work
but was illegally locked out, suspended or
dismissed or otherwise illegally prevented from
working. For this exception to apply, it is
required that the strike be legal. [Visayas
Community Medical Center v. Yballe, G.R. No.
196156 (2014)]
Reinstatement after a lawful strike
When strikers abandon the strike and apply for
reinstatement despite the existence of valid
grounds, but the employer either:
a. refuses to reinstate them or
b. imposes upon their reinstatement new
conditions,
then the employer commits an act of ULP.
The strikers who refuse to accept the new
conditions and are consequently refused
Page 179 of 262
LABOR LAW
reinstatement are entitled to the losses of pay
they may have suffered by reason of the
employer’s discriminatory acts from the time
they were refused reinstatement. [Philippine
Marine Officers’ Guild v. Compania Maritima,
G.R. Nos. L-20662 and L-20663 (1968)]
No Strike No Lockout Clause
A "no strike, no lock-out" provision in the [CBA]
is a valid stipulation, although the clause may
be invoked by an employer only when the strike
is economic in nature or one which is
conducted to force wage or other concessions
from the employer that are not mandated to be
granted by the law itself.
It would be inapplicable to prevent a strike
which is grounded on unfair labor practice.
[Panay Electric Co. v. NLRC, G.R. No. 102672
(1995); Malayang Samahan ng mga
Manggagawa sa Greenfield v. Ramos, G.R.
No. 113907 (2000)]
Other Forms of Strike
AS TO GROUNDS
1. Economic strike – one staged by workers
to force wage or other economic
concessions from the employer which he is
not required by law to grant; not a
strikeable ground [Consolidated Labor
Association of the Phil. v. Marsman and
Company, G.R. No. L-17038 (1964)]
2. ULP strike – called against a company's
unfair labor practice to force the employer
to desist from committing such practices.
AS TO HOW COMMITTED
1. Slowdown strike – one by which workers,
without a complete stoppage of work,
retard production or their performance of
duties and functions to compel
management to grant their demands.
A slowdown is inherently illicit and
unjustifiable because while the employees
continue to work, they, at the same time,
select what part of their duties they
perform. In essence, they work on their
own terms. It is a strike on installment
U.P. LAW BOC LABOR 2
basis. [Ilaw at Buklod ng Manggagawa v.
NLRC, G.R. No. 91980 (1991)]
2. Wild-cat strike – one declared and staged
without filing the required notice of strike
and without the majority approval of the
recognized bargaining agent [NUWHRAIN
– The Peninsula Manila Chapter v. NLRC,
G.R. No. 125561 (1998)]
3. Sit-down strike – one wherein workers
take over possession of the property of
such business to cease production and to
refuse access to owners. [Sukhothai
Cuisine & Restaurant v. CA, G.R. No.
150437 (2006)]
4. Sympathetic strike – one in which the
striking workers have no demands of their
own, but strike to make common cause
with other strikers in other establishments
(ex. Welga ng Bayan). This is illegal
because there is no labor dispute between
workers who are joining the workers [Biflex
Phils. Inc. Labor Union v. Filflex Industrial
and Manufacturing Corporation, G.R. No.
155679 (2006)]
5. Mass leave – one in which workers
collectively abandon or boycott regular
work causing temporary stoppage of work
[Solidbank Corp. v. E.U. Gamier, G.R. No.
159460-61 (2010)]
Conversion from economic to ULP strike
It is possible for a strike to change its character
from an economic to a ULP strike.
In the instant case, initially, the strike staged by
the Union was meant to compel the Company
to grant it certain economic benefits set forth in
its proposal for collective bargaining. However,
the strike changed its character from the time
the Company refused to reinstate
complainants because of their union activities
after it had offered to admit all the strikers and
in fact did readmit the others. It was then
converted into an unfair labor practice strike.
[Consolidated Labor Association of the Phil. v.
Marsman and Company, G.R. No. L-17038
(1964)]
Page 180 of 262
LABOR LAW
Strike cannot be converted to a lockout by
a return to work offer
A strike cannot be converted into a pure and
simple lockout by the mere expedient filing
before the trial court a notice of offer to return
to work during the pendency of the labor
dispute between the union and the employer.
[Rizal Cement Workers Union v. CIR, G.R. No.
L-18442 (1962)]
Requisites for a Valid Strike
A valid strike must have a lawful ground and
must conform with the procedural requirements
set by law.
Substantial Requirements/Grounds
A strike or lockout may be declared in cases of:
1. Bargaining deadlocks
2. ULP [Art. 278(c)]
Note: A strike, justified by the employees’ belief
in good faith that ULP was done by the
employer at the time the strikers went on strike,
is presumed valid even if the fact of ULP was
later found to be untrue [Master Iron Labor v.
NLRC, 219 SCRA 47 (1993)].
Procedural Requirements for Strike [Art.
278]
1. Effort to bargain (for bargaining deadlock
strikes)
2. Filing and service of notice of strike
3. Observance of cooling-off period
a. 15 days for ULP
No cooling-off period when the ULP
can be considered union busting
(dismissal of duly elected union officers
from employment)
b. 30 days for bargaining deadlock
4. Notice of strike vote meeting to NCMB
within 24 hours before the strike vote [Sec.
10, Rule XXII, Book V, IRR]
5. Strike vote
6. Strike vote report sent to NCMB
7. Observance of the waiting period (7-day
strike ban)
U.P. LAW BOC LABOR 2
(1) EFFORT TO BARGAIN
No labor organization […] shall declare a strike
[…] without first having bargained collectively
in accordance with Title VII of this Book […]
[Art. 279(a)]
In case of bargaining deadlocks, the notice
shall, as far as practicable:
a. Further state the unresolved issues in the
bargaining negotiations; and
b. Be accompanied by the written proposals
of the union, the counter-proposals of the
employer and the proof of a request for
conference to settle differences.
In cases of unfair labor practices, the notice
shall, as far as practicable, state the acts
complained of, and efforts taken to resolve the
dispute amicably. [Sec. 4, Rule XXII, Book V,
IRR]
The Implementing Rules use the words as far
as practicable. In this case, attaching the
counter-proposal of the company to the notice
of strike of the union was not practicable. It was
absurd to expect the union to produce the
company’s counter-proposal which it did not
have. [Club Filipino, Inc. v. Bautista, G.R. No.
168406 (2009)]
(2) FILING AND SERVICE OF NOTICE OF
STRIKE
Ground: Bargaining Deadlocks [Art. 278(c)]
Filed by: The duly certified or recognized
bargaining agent may file a notice of strike
Filed with: With the Ministry [now DOLE]
When: At least 30 days before the intended
date of the strike
Ground: Unfair Labor Practice [Art. 278(c)]
Filed by: The duly certified or recognized
bargaining agent, or in the absence of such
agent, any legitimate labor organization in
behalf of its members may file a notice of strike
Filed with: With the Ministry [now DOLE]
When: The period of notice shall be 15 days
Note: In case of dismissal from employment of
union officers duly elected in accordance with
Page 181 of 262
LABOR LAW
the union constitution and by-laws, which may
constitute union-busting, where the existence
of the union is threatened, the 15-day cooling-
off period shall not apply and the union may
take action immediately.
Notice to the Employer
In case of unfair labor practice and/or union
busting, the notice must be served to the
employer. Failure to do so will constitute
noncompliance with the procedural
requirements and will result to an illegal strike.
[Filipino Pipe and Foundry Corp v. NLRC, G.R.
No. 115180 (1999)]
Rationale: Due process. [IRR]
Contents of Notice of Strike
1. Names and addresses of the employer and
the union involved
2. Nature of the industry to which the
employer belongs
3. Number of union members and of workers
in the bargaining unit
4. Such other relevant data as may facilitate
the settlement of the dispute.
Additional Requirements
In case of Bargaining Deadlocks:
1. Statement of unresolved issues in the
bargaining negotiations
2. Written proposals of the union
3. Counter-proposals of the employer
4. Proof of a request for conference to settle
the differences. [Sec. 4, Rule XXII, Book V,
IRR]
In cases of ULP:
1. Statement of acts complained of
2. Efforts taken to resolve the dispute
amicably. [Sec. 4, Rule XXII, Book V, IRR]
Action on Notice:
1. Upon receipt of a valid notice of strike or
lockout, the NCMB, through its Conciliator-
Mediators, shall call the parties to a
conference the soonest possible time in
order to actively assist them to explore all
possibilities for amicable settlement.
2. The Conciliator-Mediator may
suggest/offer proposals as an alternative
U.P. LAW BOC
avenue for the resolution of their
disagreement/conflict which may not
necessarily bind the parties.
3. If conciliation/mediation fails, the parties
shall be encouraged to submit their dispute
for voluntary arbitration.
(3) OBSERVANCE OF COOLING-OFF
PERIODS
Cooling off periods
1. Bargaining deadlock – 30 days
2. ULP but not union busting – 15 days
3. ULP and union busting – no cooling-off
period
Purpose of Cooling Off Period
During the cooling-off period, it shall be the
duty of the Ministry [now DOLE] to exert all
efforts at mediation and conciliation to effect a
voluntary settlement.
Should the dispute remain unsettled until the
lapse of the requisite number of days from the
mandatory filing of the notice, the labor union
may strike or the employer may declare a
lockout. [Art. 278 (e)]
The purpose of the cooling-off period is to
provide an opportunity for mediation and
conciliation. [National Federation of Sugar
Workers v. Ovejera, G.R. No. L-59743 (1982)]
(4) NOTICE OF STRIKE-VOTE MEETING
Art. 278 (f). Strikes, Picketing and
Lockouts. – [T]he Department may, at its
own initiative or upon the request of any
affected party, supervise the conduct of the
secret balloting. […]
Sec. 10, Rule XXII, Book V. Strike or
Lockout Vote. – In every case, the union or
the employer shall furnish the regional
branch of the Board the notice of meetings
referred to in the preceding paragraph at
least twenty-four (24) hours before such
meetings […]
The purpose of the notice is to allow the NCMB
to decide whether or not they will send a
representative to supervise the strike vote.
Page 182 of 262
LABOR 2 LABOR LAW
(5) STRIKE VOTE
Art. 278 (f). Strikes, Picketing and
Lockouts. – A decision to declare a lockout
must be approved by a majority of the board
of directors of the corporation or association
or of the partners in a partnership, obtained
by secret ballot in a meeting called for that
purpose […]
Requirements for a declaration of a strike in
a strike vote
1. approval by a majority of the total union
membership in the bargaining unit
concerned
2. approval is obtained by secret ballot in a
meeting/referendum called for the purpose
Duration of the Validity of the Strike-Vote
Art. 278 (f). Strikes, Picketing and
Lockouts. – [T]he decision shall be valid for
the duration of the dispute based on
substantially the same grounds considered
when the strike or lockout vote was taken.
[…]
(6) STRIKE VOTE REPORT
Art. 278 (f). Strikes, Picketing and
Lockouts. – [I]n every case, the union or the
employer shall furnish the Department the
results of the voting at least 7 days before
the intended strike or lockout, subject to
the cooling-off period herein provided.
(7) OBSERVANCE OF THE 7-DAY WAITING
PERIOD
7 Day Observance of the Strike Ban
The waiting period, on the other hand, is
intended to provide opportunity for the
members of the union or the management to
take the appropriate remedy in case the strike
or lockout vote report is false or inaccurate.
[National Federation of Sugar Workers v.
Ovejera, G.R. No. L-59743 (1982)]
The waiting period is intended to give the
DOLE an opportunity to verify whether the
projected strike really carries the imprimatur of
U.P. LAW BOC LABOR 2
the majority of the union members. [Lapanday
Workers Union v. NLRC, G.R. Nos. 95494-97
(1995)]
Compliance with Both Cooling-off and
Waiting Periods
The observance of both periods must be
complied with, although a labor union may take
a strike vote and report the same within the
statutory cooling-off period. The cooling-off and
7-day strike ban provisions of law constitute a
valid exercise of police power of the State.
[National Federation of Sugar Workers v.
Ovejera, G.R. No. L-59743 (1982)]
Mutually exclusive periods (used in the
NCMB Manual)
The cooling off period and the 7-day period are
mutually exclusive. Thus, in the case of Capitol
Medical Center v. NLRC [G.R. No. 147080
(2005)], the Court held that when the strike vote
is conducted within the cooling-off period, the
7-day requirement shall be counted from the
day following the expiration of the cooling off
period.
Improved Offer Balloting
In case of a strike, the regional branch of the
Board shall, at its own initiative or upon the
request of any affected party, conduct a
referendum by secret balloting on the improved
offer of the employer on or before the 30th day
of strike.
When at least a majority of the union members
vote to accept the improved offer:
a. The striking workers shall immediately
return to work and;
b. The employer shall thereupon re-admit
them upon the signing of the agreement
[Sec. 12, Rule XXII, Book V]
i. Valid Strikes as
distinguished from Illegal
Strikes
VALID v. ILLEGAL STRIKE
a. Legal strike – one called for a valid
purpose and conducted through means
allowed by law.
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LABOR LAW
b. Illegal strike – one staged for a purpose
not recognized by law, or if for a valid
purpose, conducted through means not
sanctioned by law.
EFFECT OF ILLEGALITY / LIABILITY OF
PARTICIPATING MEMBERS/OFFICERS OF
THE UNION
a. Ordinary Striking Worker – cannot be
terminated for mere participation in an
illegal strike; proof must be adduced
showing that he or she committed illegal
acts during the strike.
b. Participating Union Officer – may be
terminated, not only when he actually
commits an illegal act during a strike, but
also if he knowingly participates in an
illegal strike [Phimco Industries, Inc. v.
PILA, G.R. No. 170830 (2010)]
Prohibited Grounds for Strike
1. Labor standards cases such as wage
orders
2. Issues involving wage distortion caused by
legislated wage orders
3. Inter or intra union disputes
4. Execution and enforcement of final orders
or awards of cases pending at the DOLE
Regional Offices, BLR, NLRC, VA, CA and
SC and related offices
5. Violations of the CBA which are not gross
in character (not ULP) [BPI Employees
Union-Davao FUBU v. BPI, G.R. No.
174912 (2013)]
Gross in character shall mean flagrant
and/or malicious refusal to comply with the
economic provisions of such agreement.
[Art. 274]
PROHIBITED ACTIVITIES IN STRIKE
1. By anyone. No person shall obstruct,
impede, or interfere with, by force,
violence, coercion, threats, or intimidation,
any peaceful picketing by employees [Art.
279(b)];
a. Blocking the free ingress to/ egress
from work premises for lawful purposes
b. Obstruction of public thoroughfares
c. Threatening, coercing and intimidating
non-striking employees, officers,
suppliers and customers
U.P. LAW BOC LABOR 2
d. Resistance and defiance of
assumption of jurisdiction by the Labor
Secretary or an injunction
e. Acts of violence [Association of
Independent Unions in the Philippines
(AIUP), et. al. v. NLRC, G.R. No.
120505 (1999)]
The violence must be pervasive and
widespread, consistently and deliberately
resorted to as a matter of policy [Shell Oil
Workers v. Shell Company of the Phil., 39
SCRA 276 (1971)] (if violence was resorted
to by both sides, such violence cannot be a
ground for declaring the strike as illegal)
[Malayang Samahan ng Manggagawa sa
M. Greenfield v. Ramos, 357 SCRA 77
(2000)]
2. By employer. No employer shall use or
employ any strike-breaker, nor shall any
person be employed as a strike-breaker.
[Art. 279(c)]
3. By public official or police force. No
public official or employee, including
officers and personnel of the New Armed
Forces of the Philippines or the Integrated
National Police, or armed person, shall
bring in, introduce or escort in any manner,
any individual who seeks to replace strikers
in entering or leaving the premises of a
strike area, or work in place of the strikers.
[Art. 279(d)]
CATEGORIES OF ILLEGAL STRIKE
1. Prohibited by Law (e.g. Strike By
Government Employees)
Government employees
While the Constitution guarantees the right of
government employees to organize, they are
not allowed to strike.
2. Improper Grounds (e.g. Intra or Inter
Union Dispute, Wage Distortion)
A legal strike must be based on a bargaining
deadlock and/or a ULP act only.
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LABOR LAW
Intra-union and inter-union disputes are not
proper grounds to strike.
Note: Good faith strike
Good faith may be used as a defense if the
strike is held on the basis of an act of ULP by
the employer even if it turned out that there was
no act of ULP. However, the mandatory
procedural requirements cannot be dispensed
with (notice of strike, cooling-off period, strike
vote, strike vote report). [Grand Boulevard
Hotel v. GLOWHRAIN, G.R. No. 153664
(2003)]
Good faith strike requires rational basis
A mere claim of good faith would not justify the
holding of a strike under the aforesaid
exception as, in addition thereto, the
circumstances must have warranted such
belief. It is, therefore, not enough that the union
believed that the employer committed acts of
ULP when the circumstances clearly negate
even a prima facie showing to sustain such
belief. [Interwood Employees Assoc. v. Int’l
Hardwood, G.R. No. L-7409 (1956)]
3. Noncompliance with Procedural
Requirements
See: Procedural requirements of a valid strike
previously discussed
A strike which does not strictly comply with the
procedural requirements set by law and the
rules is an unlawful/illegal strike. [Sta. Rosa
Coca-Cola Plant Employees Union v. Coca-
Cola Bottlers Philippines, Inc., G.R. Nos.
164302-03 (2007)]
Note: Good faith strike must still comply
with procedural requirements.
Even if the union acted in good faith in the
belief that the company was committing an
unfair labor practice, if no notice of strike and a
strike vote were conducted, the said strike is
illegal. [Grand Boulevard Hotel v.
GLOWHRAIN, G.R. No. 153664 (2003)]
General Rule: A strike based on a non-
strikeable ground is an illegal strike; a strike
U.P. LAW BOC LABOR 2
grounded on ULP is illegal if no such acts
actually exist.
Exception: Even if no ULP acts are committed
by the employer, if the employees believe in
good faith that ULP acts exist so as to
constitute a valid ground to strike, then the
strike held pursuant to such belief may be legal.
[NUWHRAIN v. NLRC, G.R. No. 125561
(1998)]
4. Unlawful Means and Methods
Purpose and means test
There must be concurrence between the
validity of the purpose of the strike and the
means of conducting it.
To be valid, a strike must be pursued within
legal bounds. The right to strike as a means
for the attainment of social justice is never
meant to oppress or destroy the employer.
The law provides limits for its exercise. Among
such limits are the prohibited activities under
Art. [279], particularly paragraph (e), which
states that no person engaged in picketing
shall:
1. commit any act of violence, coercion, or
intimidation or
2. obstruct the free ingress to or egress from
the employer's premises for lawful
purposes or
3. obstruct public thoroughfares.
A legal strike may turn into an illegal strike
Even if the strike is valid because its objective
or purpose is lawful, the strike may still be
declared invalid where the means employed
are illegal. [Phil. Diamond Hotel and Resort,
Inc. v. Manila Diamond Hotel Employees
Union, G.R. No. 158075 (2006)]
Examples of unlawful means and methods
1. Acts of violence and terrorism
2. Destruction of property
Guidelines and balancing of Interest
1. A strike, otherwise valid, if violent in
character, may be placed beyond the pale.
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LABOR LAW
2. Care is to be taken especially where an
unfair labor practice is involved, to avoid
stamping it with illegality just because it is
tainted by such acts. To avoid rendering
illusory the recognition of the right to strike,
responsibility in such a case should be
individual and not collective.
3. A different conclusion would be called for if
the existence of force while the strike lasts
is pervasive and widespread, consistently
and deliberately resorted to as a matter of
policy. It could be reasonably concluded
then that even if justified as to ends, it
becomes illegal because of the means
employed.
4. This is not by any means to condone the
utilization of force by labor to attain its
objectives. It is only to show awareness
that in labor conflicts, the tension that fills
the air as well as the feeling of frustration
and bitterness could break out in sporadic
acts of violence.
It would be unjustified, considering all the facts
disclosed, to stamp the strike with illegality. It is
enough that individual liability be incurred by
those guilty of such acts of violence that call for
loss of employee status. [Shell Oil Workers
Union v. Shell Co. of the Phils, G.R. No. L-
28607 (1971)]
It bears stressing that the requirements of
strike notice and strike-vote report are
mandatory, meaning, non-compliance
therewith makes the strike illegal. The evident
intention of the law in requiring these is to
reasonably regulate the right to strike.
[Stamford Mark Corp. v. Julian, G.R. No.
145496 (2004)]
5. Violation of Injunction Order
An automatic injunction under Art. 278(g) or a
valid injunction order under the exceptions to
Art. 279 must be complied with. Otherwise, the
strike becomes illegal.
U.P. LAW BOC LABOR 2
6. Those Contrary to an Existing
Agreement
(e.g. No strike/lockout provisions in the CBA)
[Citing Ludwig Teller in Toyota Motors v.
NLRC, G.R. Nos. 158786 & 158787 (2007)]
No Strike/Lockout Provisions in the CBA
A “no strike, no lock-out” is a valid provision in
the CBA. However, it only applies to economic
provisions. It cannot prevent a strike which is
grounded on unfair labor practice. [Malayang
Samahan ng mga Manggagawa sa Greenfield
v. Ramos, G.R. No. 113907 (2000)]
7. The Strikers do not belong to a
Legitimate Labor Organization [Magdala
Multipurpose & Livelihood Coop. v.
Kilusang Manggagawa Ng LGS, G.R. Nos.
191138-39 (2011)]
Liabilities of Parties
Any union officer who knowingly participates in
an illegal strike and any worker or union officer
who knowingly participates in the commission
of illegal acts during a strike may be declared
to have lost his employment status. [Art.
279(a)]
Note: Mere participation in an illegal strike by a
union officer is sufficient ground to terminate
his employment. In case of a lawful strike, the
union officer must commit illegal acts during a
strike for him to be terminated. [Art. 279(a)]
Procedural due process is still required for
dismissing union officers/ordinary workers.
Where an opportunity to be heard either
through oral arguments or through pleadings is
accorded, there is no denial of procedural due
process. [Equitable PCI Banking Corp. v.
RCBC Capital Corp, 574 SCRA 858 (2004)]
Liability of Ordinary Workers
General rule: Participation by a worker in a
lawful strike is not ground for termination of his
employment. [Art. 279(a)]
Exception: When the worker participated in
illegal acts during the strike; needs clear,
substantial and convincing proof available
Page 186 of 262
LABOR LAW
under the circumstances to justify the penalty
of dismissal [Toyota Motors Philippines
Workers Association v. NLRC, 537 SCRA 171
(2007)].
Note: The mere fact that the criminal
complaints against terminated Union members
were subsequently dismissed does not
extinguish their liability under the Labor Code
[C. Alcantara & Sons, Inc. v. CA, G.R. No.
155109 (2011)].
Liability of Employer
Any worker whose employment has been
terminated as a consequence of any unlawful
lockout shall be entitled to reinstatement with
full backwages. [Art. 279(a)]
WAIVER OF ILLEGALITY OF STRIKE/
CONDONATION DOCTRINE
When defense of illegality of strike is
deemed waived
An employer can be deemed to have waived
the defense that a strike is illegal. In one case,
the Court held that: “Admitting for the sake of
argument that the strike was illegal for being
premature, this defense was waived by the
[Company], when it voluntarily agreed to
reinstate the radio operators.” [Bisaya Land
Transportation Co., Inc. v. CIR, G.R. No. L-
10114 (1957)]
When defense of illegality of strike is not
deemed waived
The ruling cited in the Bisaya case that the
employer waives his defense of illegality of the
strike upon reinstatement of strikers is
applicable only to strikers who signified their
intention to return to work and were accepted
back. […]
Condonation shall apply only to strikers who
signified their intention to return, and did return
to work, since these strikers took the initiative
in normalizing relations with their employer and
thus helped promote industrial peace.
However, as regards the strikers who
decided to pursue with the case, […] the
employer could not be deemed to have
condoned their strike, because they had not
U.P. LAW BOC LABOR 2
shown any willingness to normalize relations
with it. [Philippine Inter-Fashion, Inc. v. NLRC,
G.R. No. L-59847 (1982)]
However, the mere act of entering into a
compromise agreement cannot be deemed to
be a waiver of the illegality of the strike, unless
such a waiver is clearly shown in the
agreement. [Filcon Manufacturing Corp v.
Lakas Manggagawa sa Filcon – Lakas
Manggagawa Labor Center, G.R. No. 150166
(2004)]
b. Picket
The right of legitimate labor organizations to
strike and picket and of employers to lockout,
consistent with the national interest, shall
continue to be recognized and respected. [Art.
278(b)]
Picketing involves merely the marching to and
fro at the premises of the employer, usually
accompanied by the display of placards and
other signs making known the facts involved in
a labor dispute.
As applied to a labor dispute, to picket means
the stationing of one or more persons to
observe and attempt to observe. The purpose
of pickets is said to be a means of peaceable
persuasion. [Sta. Rosa Coca-Cola Plant
Employees Union v. Coca-Cola Bottlers
Philippines, Inc., G.R. Nos. 164302-03 (2007)]
Peaceful Picketing is the right of workers
during strikes consisting of marching to and fro
before an establishment involved in a labor
dispute generally accompanied by the carrying
and display of signs, placards and banners
intended to inform the public about the dispute.
[Guidelines Governing Labor Relations,
October 19, 1987; NCMB Manual, Sec. 1]
Purpose
The purpose of the picket line is to persuade
employers peacefully by publicizing the labor
dispute to inform the public of what is
happening and thus cause other workers not to
work in the establishment and for customers
not to do business there [Phimco Industries,
Page 187 of 262
LABOR LAW
Inc. v. Phimco Industries Labor Association
(PILA), et al., 628 SCRA 119 (2010)].
PROHIBITED ACTIVITIES IN PICKETING
1. By any person. No person shall obstruct,
impede, or interfere with, by force,
violence, coercion, threats or intimidation,
any peaceful picketing by employees
during any labor controversy or in the
exercise of the right to self-organization or
collective bargaining, or shall aid or abet
such obstruction or interference. [Art.
279(b)]
2. By police force. The police force shall
keep out of the picket lines unless actual
violence or other criminal acts occur
therein: Provided, That nothing herein shall
be interpreted to prevent any public officer
from taking any measure necessary to
maintain peace and order, protect life and
property, and/or enforce the law and legal
orders. [Art. 279(d)]
3. By person engaged in picketing. No
person engaged in picketing shall commit
any act of violence, coercion or intimidation
or obstruct the free ingress to or egress
from the employer’s premises for lawful
purposes, or obstruct public thoroughfares.
[Art. 279(e)]
Picketing as Part of Freedom of
Speech/Expression
General rule: picketing enjoys constitutional
protection as part of freedom of speech and/or
expression.
Exceptions/limitations:
a. When picketing is coercive rather than
persuasive [Security Bank Employees
Union v. Security Bank, G.R. No. L-28536
(1968)]
b. When picketing is achieved through illegal
means [Mortera v. CIR, G.R. No. L-1340
(1947)]
c. Courts may confine the communication/
demonstration to the parties to the labor
dispute [PCIB v. Philnabank Employees
Association, G.R. No. L-29630 (1981)]
d. Innocent bystander rule. Courts may
insulate establishments or persons with no
industrial connection or having interest
U.P. LAW BOC LABOR 2
totally foreign to the context of the dispute
[PCIB v. Philnabank Employees
Association, G.R. No. L-29630 (1981)]
Picketing and Libel
Libel laws are not applied strictly considering
that there is emotional tension in the picket
lines and expected discourteous and impolite
exchanges between the employees and the
employer. [PCIB v. Philnabank Employees
Association, G.R. No. L-29630 (1981)]
Peaceful picketing is legal even in the
absence of employer-employee
relationship
Picketing, peacefully carried out, is not illegal
even in the absence of employer-employee
relationship, for peaceful picketing is a part of
the freedom of speech guaranteed by the
Constitution. [De Leon v. National Labor Union,
G.R. No. L-7586 (1957)]
2. By Employer
a. Lockout
Lockout is the temporary refusal of an
employer to furnish work as a result of an
industrial or labor dispute. [Art. 219 (p)]
Illegal strike and illegal lockout/In Pari
Delicto Doctrine
When the employer engaged in illegal lockout
and the employee engaged in illegal strike,
both parties are in pari delicto, and such
situation warrants the restoration of the status
quo ante and bringing the parties back to the
respective positions before the illegal strike
and illegal lockout. [Philippines Inter-Fashion
Inc. v. NLRC, G.R. No. L-59847 (1982)]
Similar to a strike, the proper grounds for a
lockout are
1. Bargaining deadlock
2. ULP by labor organizations
Art. 278 (b). Strikes, Picketing and
Lockouts. – [N]o employer may declare a
lockout on grounds involving inter-union and
intra-union disputes.
Page 188 of 262
LABOR LAW
Procedural Requirements
1. Effort to bargain (in case of bargaining
deadlock)
2. Filing and service of notice of lockout to the
NCMB
3. Observance of cooling-off period
4. 15 days for ULP
5. 30 days for bargaining deadlock
6. Notice of lockout vote meeting within 24
hours before the intended vote [Sec. 10,
Rule XXII, Book V, IRR]
7. Lockout vote
8. Report of lockout vote
9. Observance of the waiting period (7-day
strike ban)
(1) Effort to Bargain
No employer shall declare a […] lockout
without first having bargained collectively in
accordance with Title VII of this Book. [Art.
279(a)]
(2) Filing and Service of Notice of Lockout
Filed by: The duly certified or recognized
bargaining agent may file notice of lockout
Filed with: With the Department
When: At least 30 days before the intended
date of the lockout [Art. 278(c)]
Note: The notice must be served to the
employees through the SEBA or the legitimate
labor organization (if no SEBA).
Contents of notice
1. Names and addresses of the employer and
the union involved
2. Nature of the industry to which the
employer belongs
3. Number of union members and of workers
in the bargaining unit
4. Such other relevant data as may facilitate
the settlement of the dispute.
Additional Requirements [Sec. 8, Rule XXII,
Book V, IRR]
In cases of bargaining deadlocks
1. Statement of unresolved issues in the
bargaining negotiations
2. Written proposals of the union
U.P. LAW BOC LABOR 2
3. Counter-proposals of the employer
4. Proof of a request for conference to settle
the differences.
In cases of ULP
1. Statement of acts complained of
2. Efforts taken to resolve the dispute
amicably.
Action on notice
1. Upon receipt of a valid notice of strike or
lockout, the NCMB, through its Conciliator-
Mediators, shall call the parties to a
conference the soonest possible time in
order to actively assist them to explore all
possibilities for amicable settlement.
2. The Conciliator-Mediator may suggest/
offer proposals as an alternative avenue for
the resolution of their disagreement/conflict
which may not necessarily bind the parties.
3. If conciliation/mediation fails, the parties
shall be encouraged to submit their dispute
for voluntary arbitration. [Sec. 9, Rule XXII,
Book V, IRR]
(3) Observance of Cooling-off Periods
Lockout cooling-off periods:
1. Based on bargaining deadlock – 30 days
2. Based on ULP – 15 days [Art. 278(c)]
(4) Notice of Lockout Vote Meeting
Sec. 10, Rule XXII, Book V. Strick or
Lockout Vote – In every case, the union or
the employer shall furnish the regional
branch of the Board the notice of meetings
referred to in the preceding paragraph at
least twenty-four (24) hours before such
meetings [...]
(5) Lockout Vote
Art. 278 (f). Strikes, Picketing and
Lockouts. – A decision to declare a lockout
must be approved by a majority of the board
of directors of the corporation or association
or of the partners in a partnership, obtained
by secret ballot in a meeting called for that
purpose. The decision shall be valid for the
duration of the dispute based on
Page 189 of 262
LABOR LAW
substantially the same grounds considered
when the strike or lockout vote was taken.
(6) Report of Lockout Vote
Art. 278 (f). Strikes, Picketing and
Lockouts. – In every case, the union or the
employer shall furnish the Ministry the
results of the voting at least seven days
before the intended strike or lockout, subject
to the cooling-off period herein provided.
(7) Observance of Waiting Period (7 Days)
See notes under Strike.
Effect of Illegal Lockout
Par. 3, Art. 279 (a). Prohibited Activities. –
Any worker whose employment has been
terminated as a consequence of any
unlawful lockout shall be entitled to
reinstatement with full backwages.
3. Assumption of Jurisdiction by
Secretary of Labor and
Employment
When May the SOLE Assume Jurisdiction
When in his opinion, there exist a labor dispute
causing or likely to cause a strike or lockout in
an industry indispensable to the national
interest, the SOLE may assume jurisdiction
over the dispute and decide it or certify the
same to the Commission for compulsory
arbitration. [Art. 278(g)]
Requisites for Assumption of Jurisdiction
1. Both parties have requested the SOLE to
assume 
jurisdiction; or 

2. After a conference called by the Office of
the 
SOLE on the propriety of its issuance,
motu proprio or upon a request or petition
by either parties to the labor dispute [Book
V, IRR Rule XXII, sec. 15, IRR as amended
by D.O. No. 40-H-13 s 2013] 

Immediately Executory
The assumption and certification orders are
executory in character and must be strictly
U.P. LAW BOC LABOR 2 LABOR LAW

complied with by the parties. [Allied Banking v.

NLRC, G.R. No. 116128 (1996)] In such cases, therefore, the Secretary of
Labor and Employment may immediately
Effect of defiance of assumption or assume, within twenty-four (24) hours from
certification orders knowledge of the occurrence of such a strike or
No strike or lockout shall be declared after lockout, jurisdiction over the same or certify it
assumption of jurisdiction by the President or to the Commission for compulsory arbitration.
the Minister or after certification or submission [Art. 278, par. 2]
of the dispute to compulsory or voluntary
arbitration or during the pendency of cases Rationale: The highest respect is accorded to
involving the same grounds for the strike or the right of patients to life and health.
lockout. [Art. 279(a), par. 2]
b. Effects of Assumption of
A strike undertaken despite the issuance by the Jurisdiction
Secretary of Labor of an assumption or
certification order becomes a prohibited activity Automatic Injunction of Intended of
and thus, illegal, pursuant to Art. 279(a) of the Impending Strike or Lockout
Labor Code. [Allied Banking v. NLRC, G.R. No. The assumption of jurisdiction by the SOLE
116128 (1996)] automatically enjoins intended or impending
strike or lockout. [Art. 278 (g)]
a. Industry Indispensable to the
National Interest Return-to-work and readmission if strike or
lockout has already taken place
1. Hospital sector
 If strike or lockout has already taken place at
2. Electric power industry
 the time of assumption or certification,
3. Water supply service, to exclude small 1. All striking or locked out employees shall
water supply services, such as bottling and immediately return-to-work; and
refilling stations
 2. The employer shall immediately resume
4. Air traffic control
 operations and readmit all workers under
5. Other industries as may be recommended the same terms and conditions prevailing
by the National Tripartite Industrial Peace before the strike or lockout. [Art. 278 (g)]
Council (TIPC) [Sec. 16, Rule XXII, Book
V, IRR as amended by D.O. No. 40-H-13] The SOLE may also determine the retroactivity
of arbitral awards pursuant to power to assume
Who determines industries indispensable jurisdiction as part of his/her plenary powers to
to the national interest [Art. 278(g)]
 determine the effectivity thereof in absence of
1. Secretary of Labor and Employment
 specific provision of law [LMG Chemicals Corp.
2. President v. Sec. of Labor and Employment, 356 SCRA
577 (2001)]
Strikes and lockouts in hospitals, clinics
and similar medical institutions
 Nature of return-to-work order
It shall be the duty of the striking union or The return-to-work order not so much confers
locking-out employer to provide and maintain a right as it imposes a duty; and while as a right
an effective skeletal workforce of medical and it may be waived, it must be discharged as a
other health personnel, whose movement and duty even against the worker's and/or
services shall be unhampered and employers’ will.
unrestricted, as are necessary to insure the
proper and adequate protection of the life and The worker must return to his job together with
health of its patients, most especially his co-workers so the operations of the
emergency cases, for the duration of the strike company can be resumed and it can continue
or lockout. serving the public and promoting its interest.

Page 190 of 262

U.P. LAW BOC LABOR 2
That is the real reason such return can be
compelled. So imperative is the order in fact
that it is not even considered violative of the
right against involuntary servitude. [Kaisahan
ng Mga Manggagawa sa Kahoy v. Gotamco
Sawmills, G.R. No. L-1573 (1948)]
Note: It must be strictly complied with even
during the pendency of any petition questioning
its validity. [Manila Hotel Employees
Association and its Members v. Manila Hotel
Corp., 517 SCRA 349 (2007)]
The purpose of SOLE’s extraordinary power is
aimed at arriving at a peaceful and speedy
solution to labor disputes without jeopardizing
national interest [Union of Filipro Employees-
Drug v. Nestle, 499 SCRA 521 (2006)]
VI. MANAGEMENT
PREROGATIVE
Basis
The State recognizes the indispensable role of
the private sector, encourages private
enterprise, and provides incentives to needed
investments. [Sec. 20, Art. II, 1987
Constitution]
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. [Sec. 3, pars. 4, Art.
XIII, 1987 Constitution]
The law in protecting the rights of the
employees authorizes neither oppression nor
self-destruction of the employer. It should be
made clear that when the law tilts the scale of
justice in favor of labor, it is but a recognition of
the inherent economic inequality between labor
and management. Never should the scale be
so tilted if the result is an injustice to the
employer. [Panuncillo v. CAP, G.R. No.
161305 (2007)]
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LABOR LAW
Definition
“Management Prerogative” is the right of an
employer to regulate all aspects of
employment.
Courts often decline to interfere in legitimate
business decisions of employers. In fact, labor
laws discourage interference in employers’
judgment concerning the conduct of their
business.
Scope
Management prerogative gives employers the
freedom to regulate, according to their
discretion and best judgment, all aspects of
employment, including:
a. Work assignment
b. Working methods,
c. Processes to be followed,
d. Working regulations,
e. Transfer of employees,
f. Work supervision, lay-off of workers and
the discipline, dismissal and recall of
workers.
Limits to Management Prerogative
1. Good faith - So long as a company’s
management prerogatives are exercised in
good faith for the advancement of the
employer’s interest and not for the purpose
of defeating or circumventing the rights of
the employees under special laws or under
valid agreements, this Court will uphold
them. [Ernesto G. Ymbong v. ABS-CBN
Broadcasting Corp.]
It is incumbent upon the company to show
that decisions made under management
prerogative are in good faith and not
intended to circumvent employees’ rights.
[San Miguel Brewery Sales Force Union
(PTGWO) v. Ople, G.R. No. L-53515
(1989)]
The exercise of management prerogative
is valid, provided it is not performed in a
malicious, harsh, oppressive, vindictive or
wanton manner or out of malice or spite.
[Magdadaro v. PNB, G.R. No. 166198
(2009)]
U.P. LAW BOC LABOR 2
2. Without grave abuse of discretion - The
managerial prerogative to transfer
personnel must be exercised without grave
abuse of discretion, bearing in mind the
basic elements of justice and fair play.
Having the right should not be confused
with the manner in which the right is
exercised. [Tinio v. CA, G.R. No. 171764
(2007)]
3. Law – The privilege of management
prerogative is not absolute, but subject to
limitations imposed by law.
Management prerogative is limited by Sec.
236(g), which gives the Secretary the
power to assume jurisdiction and resolve
labor disputes involving industries
indispensable to national interest. The
company’s management prerogatives are
not being unjustly curtailed but duly
tempered by the limitations set by law,
taking into account its special character
and the particular circumstances in the
case at bench. [Metrolab Industries, Inc. v.
Roldan-Confesor, G.R. No. 108855 (2013);
University of Immaculate Concepcion Inc.
v. Sec. of Labor, G.R. No. 151379 (2005)]
Although management prerogative refers
to the right to regulate all aspects of
employment, it cannot be understood to
include the right to temporarily withhold
salary/wages without the consent of the
employee. To sanction such an
interpretation would be contrary to Art. 116
of the Labor Code. [SHS Perforated
Materials, Inc. v. Diaz, G.R. No. 185814
(2010)]
4. Collective Bargaining – The CBA
provisions agreed upon by the Company
and the Union delimit the free exercise of
management prerogative. The parties in a
CBA may establish such stipulations,
clauses, terms and conditions as they may
deem convenient provided these are not
contrary to law, morals, good customs,
public order or public policy. [Goya Inc. v.
Goya, Inc., Employees Union-FFW, G.R.
No. 170054 (2013)]
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5. Equity and/or Substantial Justice – The
Court should still ensure that the employer
exercises the prerogative to discipline
humanely and considerately, and that the
sanction imposed is commensurate to the
offense involved and to the degree of the
infraction. [Dongon v. Rapid Movers and
Forwarders Co., Inc., G.R. No. 163431
(2013)]
A. DISCIPLINE
Management has the prerogative to discipline
its employees and to impose appropriate
penalties on erring workers pursuant to
company rules and regulations. [Jose P.
Artificio v. NLRC, G.R. No. 172988 (2010)]
Among the employer’s management
prerogatives is the right to prescribe
reasonable rules and regulations necessary or
proper for the conduct of its business or
concern, to provide certain disciplinary
measures to implement said rules and to
assure that the same would be complied with.
[St. Luke’s Medical Center, Inc. v. Sanchez,
G.R. 212054 (2015)]
The employer’s right to conduct the affairs of
his business, according to its own discretion
and judgment, includes the prerogative to instill
discipline in its employees and to impose
penalties, including dismissal, upon erring
employees. [Consolidated Food Corporation v.
NRLC, G.R. No. 118647 (1999))]
Right to dismiss or otherwise impose
disciplinary sanctions upon an employee for
just and valid cause, pertains in the first place
to the employer, as well as the authority to
determine the existence of said cause in
accordance with the norms of due process.
[Makati Haberdashery, Inc. v. NLRC, G.R. Nos.
83380-81 (1989)]
U.P. LAW BOC LABOR 2
Corollary Duty of Employees
The employee has the corollary duty to obey all
reasonable rules, orders, and instructions of
the employer; and willful or intentional
disobedience thereto, as a general rule,
justifies termination of the contract of service
and the dismissal of the employee. [St. Luke’s
Medical Center, Inc. v. Sanchez, G.R. 212054
(2015)]
Criteria
The policies, rules and regulations on work-
related activities of the employees must
always be fair and reasonable and the
corresponding penalties, when prescribed,
commensurate to the offense involved and
to the degree of the infraction. [Consolidated
Food Corporation v. NRLC, G.R. No. 118647
(1999); St. Michael’s Institute v. Santos, G.R.
No. 145280 (2001)]
Although the right of employers to shape their
own work force is recognized, this
management prerogative must not curtail the
basic right of employees to security of
tenure. [Alert Security & Investigation Agency,
Inc. v. Saidali Pasawilan, et. al., G.R. No.
182397 (2011)]
Disciplinary action against an erring employee
is a management prerogative which, generally,
is not subject to judicial interference. However,
this policy can be justified only if the disciplinary
action is dictated by legitimate business
reasons and is not oppressive. [Areno v.
Skycable, G.R. No 180302 (2010)]
B. TRANSFER OF
EMPLOYEES
An employee’s right to security of tenure does
not give him such a vested right in his position,
as would deprive the company of its
prerogative to change his assignment or
transfer him where he will be most useful.
The employer has the right to transfer or assign
employees from one area of operation to
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LABOR LAW
another, or one office to another or in pursuit of
its legitimate business interest.
Management has the prerogative on whether
or not to renew the contract of a fixed-term
employee. [Fonterra Brands Phils., Inc. v.
Largado, G.R. No. 205300 (2015)]
Criteria
Provided there is no demotion in rank or
diminution of salary, benefits and other
privileges and not motivated by discrimination
or made in bad faith, or effected as a form of
punishment or demotion without sufficient
cause. [Westin Phil. Plaza Hotel v. NLRC, G.R.
No. 121621 (1999)]
When the transfer is not unreasonable, or
inconvenient, or prejudicial to the employee,
and it does not involve a demotion in rank or
diminution of salaries, benefits, and other
privileges, the employee may not complain that
it amounts to a constructive dismissal. [Bisig ng
Manggagawa sa TRYCO v. NLRC, G.R. No.
151309 (2008)]
It is management prerogative for employers to
transfer employees on just and valid grounds
such as genuine business necessity. [William
Barroga v. Data Center College of the
Philippines, G.R. No. 174158 (2011)]
Re-assignments
Re-assignments made by management
pending investigation of irregularities allegedly
committed by an employee fall within the ambit
of management prerogative. The purpose of
reassignments is no different from that of
preventive suspension which management
could validly impose as a disciplinary measure
for the protection of the company's property,
pending investigation of any alleged
malfeasance or misfeasance committed by the
employee. [Ruiz v. Wendel Osaka Realty
Corp., G.R. No. 189082 (2012)]
Employer Bears the Burden of Proof
In cases of a transfer of an employee, the rule
is settled that the employer is charged with the
burden of proving that its conduct and action
are for valid and legitimate grounds such as
U.P. LAW BOC LABOR 2
genuine business necessity and that the
transfer is not unreasonable, inconvenient or
prejudicial to the employee. If the employer
cannot overcome this burden of proof, the
employee’s transfer shall be tantamount to
unlawful constructive dismissal. [Jonathan
Morales v. Harbor Centre Port Terminal Inc.,
G.R. No. 174208 (2012)]
C. PRODUCTIVITY
STANDARDS
The employer has the right to demote and
transfer an employee who has failed to observe
proper diligence in his work and incurred
habitual tardiness and absences and indolence
in his assigned work. [Petrophil Corporation v.
NLRC, G.R. No. L-64048 (1986)]
In the consolidated cases of Leonardo v. NLRC
[G.R. No. 125303 (2000)] and Fuerte v. Aquino
[G.R. No. 126937 (2000)], the employer
claimed that the employee was demoted
pursuant to a company policy intended to foster
competition among its employees. Under this
scheme, its employees are required to comply
with a monthly sales quota. Should a
supervisor such as the employee fail to meet
his quota for several consecutive months, he
will be demoted, whereupon his supervisor’s
allowance will be withdrawn and be given to the
individual who takes his place. When the
employee concerned succeeds in meeting the
quota again, he is re-appointed supervisor and
his allowance is restored.
The Supreme Court held that this arrangement
is an allowable exercise of company rights
since an employer is entitled to impose
productivity standards for its workers. In fact,
non-compliance may be visited with a penalty
even more severe than demotion.
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LABOR LAW
D. BONUS
A bonus is "a gratuity or act of liberality of the
giver which the recipient has no right to
demand as a matter of right" [Philippine
National Construction Corp. v. National Labor
Relations Commission, 345 Phil. 324, 331
(1997)]. It is something given in addition to
what is ordinarily received by or strictly due the
recipient.
The granting of a bonus is basically a
management prerogative which cannot be
forced upon the employer "who may not be
obliged to assume the onerous burden of
granting bonuses or other benefits aside from
the employee's basic salaries or wages" xxx.
[Kamaya Point Hotel v. National Labor
Relations Commission, Federation of Free
Workers and Nemia Quiambao, G.R. No.
75289, (1989); Traders Royal Bank v. NLRC,
G.R. No. 120592 (1990)]
The matter of giving a bonus over and above
the worker’s lawful salaries and allowances is
entirely dependent on the financial capability of
the employer to give it. [Kimberly-Clark
Philippines, Inc. v. Dimayuga, G.R. No. 177705
(2009)]
E. CHANGE OF WORKING
HOURS
Management retains the prerogative,
whenever exigencies of the service so require,
to change the working hours of its employees.
So long as such prerogative is exercised in
good faith for the advancement of the
employer’s interest and not for the purpose of
defeating or circumventing the rights of the
employees under special laws or under valid
agreements, this Court will uphold such
exercise. [Sime Darby Pilipinas Inc. v. NLRC,
G.R. No. 119205 (1998)]
U.P. LAW BOC LABOR 2
F. BONA FIDE OCCUPATIONAL
QUALIFICATIONS
General Rule: Employment in particular jobs
may not be limited to persons of a particular
sex, religion, or national origin unless the
employer can show that sex, religion, or
national origin is an actual qualification for
performing the job.
Exception: The exception is called a bona fide
occupational qualification (BFOQ).
In the United States, there are a few federal
and many state job discrimination laws that
contain an exception allowing an employer to
engage in an otherwise unlawful form of
prohibited discrimination when the action is
based on a BFOQ necessary to the normal
operation of a business or enterprise. BFOQ is
valid "provided it reflects an inherent quality
reasonably necessary for satisfactory job
performance." [Yrasuegui v. PAL, G.R. No.
168081 (2008)]
BFOQ in Philippine Jurisdiction
The concept of a bona fide occupational
qualification is not foreign in our jurisdiction.
We employ the standard of reasonableness of
the company policy which is parallel to the
bona fide occupational qualification
requirement.
In Duncan Association of Detailman-PTGWO
and Pedro Tecson v. Glaxo Wellcome
Philippines, Inc., we passed on the validity of
the policy of a pharmaceutical company
prohibiting its employees from marrying
employees of any competitor company. We
held that Glaxo has a right to guard its trade
secrets, manufacturing formulas, marketing
strategies and other confidential programs and
information from competitors. We considered
the prohibition against personal or marital
relationships with employees of competitor
companies upon Glaxo’s employees
reasonable under the circumstances because
relationships of that nature might compromise
the interests of Glaxo. In laying down the
assailed company policy, we recognized that
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LABOR LAW
Glaxo only aims to protect its interests against
the possibility that a competitor company will
gain access to its secrets and procedures.
[Star Paper Corp. v. Simbol, G.R. No. 164774
(2006)]
A requirement that a woman employee must
remain unmarried could be justified as a "bona
fide occupational qualification," or BFOQ,
where the particular requirements of the job
would justify the same, but not on the ground
of a general principle, such as the desirability
of spreading work in the workplace. A
requirement of that nature would be valid
provided it reflects an inherent quality
reasonably necessary for satisfactory job
performance. [Phil. Telegraph and Telephone
Company v. NLRC, G.R. No. 118978 (1997)]
G. POST-EMPLOYMENT
RESTRICTIONS
In cases where an employee assails a contract
containing a provision prohibiting him or her
from accepting competitive employment as
against public policy, the employer has to
adduce evidence to prove that the restriction is
reasonable and not greater than necessary to
protect the employer’s legitimate business
interests. The restraint may not be unduly
harsh or oppressive in curtailing the
employee’s legitimate efforts to earn a
livelihood, and must be reasonable in light of
sound public policy. [Rivera v. Solidbank, G.R.
No. 163269 (2006)]
H. MARRIAGE BETWEEN EMPLOYEES
OF COMPETITOR-EMPLOYERS
See F. Bonafide Occupational Qualifications,
above
U.P. LAW BOC LABOR 2
VII. SOCIAL LEGISLATION
A. SOCIAL SECURITY
SYSTEM LAW
[Republic Act 8282, as amended by RA 11199]
1. Coverage and Exclusions
a. Compulsory
(1) Employees not over 60 years old and
their employers, including domestic
helpers [Sec. 9(1), RA 11199]
Provided, That any benefit already earned by
the employees under private benefit plans
existing at the time of the approval of this Act
shall not be discontinued, reduced or otherwise
impaired.
Private plans which are existing and in force at
the time of compulsory coverage shall be
integrated with the plan of the SSS, in such a
way where the employer’s contribution to his
private plan is more than required of him in
this Act:
a. He shall pay to the SSS only the
contribution required of him; and
b. He shall continue his contribution to such
private plan less his contribution to the SSS
c. So that the employer’s total contribution to
his benefit plan and to the SSS shall be the
same as his contribution to his private
benefit plan before the compulsory
coverage. [Sec. 9(1), RA 11199]
Domestic workers or “kasambahays” as
defined under RA10361 or the Batas
Kasambahay, who are receiving a monthly
income lower than minimum salary credit
prescribed under this Act, shall pay
contributions based on their actual monthly
salary. [Sec. 4(a)(9), RA 11199]
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(2) Self-employed persons as may be
determined by the Commission,
including but not limited to:
a. All self-employed professionals
b. Partners and single proprietors of
businesses
c. Actors and actresses, directors,
scriptwriters and news correspondents
who do not fall within the definition of
the term “employee” under Sec. 8 (d) of
this Act;
Employee [Sec 8(d), RA 11199] - Any
person who performs services for an
employer in which either or both mental
or physical efforts are used and who
receives compensation for such
services, where there is an employer-
employee relationship: Provided, That
a self-employed person shall be an
employer and employee at the same
time.
d. Professional atheism coaches, trainers
and jockeys
e. Individual farmers and fishermen [Sec.
9-A, RA11199]
(3) All sea-based and land-based Overseas
Filipino Workers (OFWs) not over 60
years of age [Sec. 9-B, RA 11199]
b. Voluntary
1. Spouses who devote full time to managing
household and family affairs, unless they
are also engaged in another vocation or
employment (in which case, coverage will
be mandatory). [Sec. 9(b), RA 11199]
2. Employees previously under compulsory
coverage) already separated from
employment or those self-employed (under
compulsory coverage) with no realized
income for a given month, who chose to
continue with contributions to maintain the
right to full benefit. [Sec. 11, RA 11199]
3. Self-employed members realizing no
income in any given month, who choose to
continue paying contributions under the
same rules and regulations applicable to a
U.P. LAW BOC LABOR 2
separated employee member. [Sec. 11-A,
RA 11199]
Note: Foreign governments and international
organizations or their wholly owned
instrumentality employing workers in the
Philippines or employing Filipinos outside of
the Philippines, may enter into an agreement
with the Philippine Government for the
inclusion of such employees in the SSS, except
those already covered by their civil service
retirement system. [Sec. 8(j)(3), RA 11199]
c. Exclusions
1. Services where there is no employer-
employee relationship in accordance with
existing labor laws, rules, regulations and
jurisprudence;
2. Service performed in the employ of the
Philippine Government or instrumentality
or agency thereof;
3. Service performed in the employ of a
foreign government or international
organization, or their wholly-owned
instrumentalities; and
Note: Foreign governments and international
organizations may enter into an agreement
with the PH government to include their
employees in the Philippines in the SSS.
4. Services performed by temporary and
other employees which may be excluded
by regulation of the Social Security
Commission. Employees of bona fide
independent contractors shall not be
deemed employees of the employer
engaging the services of said contractors.
[Sec. 8(j), RA 11199]
2. Dependents and Beneficiaries
Primary
1. Dependent spouse - until remarriage
2. Dependent children [legitimate,
legitimated, legally adopted and
illegitimate] - Illegitimate children are
entitled only to 50% of the share of
legitimate children. Where there are no
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LABOR LAW
legitimate children, the illegitimate children
get 100%.
Secondary
1. Receives only when the primary
beneficiaries are absent
2. Dependent parents
Others
1. Receives only when primary and
secondary beneficiaries are absent
2. Any other person designated by member
as his/her secondary beneficiary. [Sec. 8
(k), RA 11199]
3. Benefits
a. Monthly Pension [Sec. 12, RA
11199]
The monthly pension shall be the highest of the
following amounts:
1. P300 + [20% x (average monthly credit)] +
[2% x (average monthly credit) x (# of cash
credit years of service in excess of 10
years)]
2. 40% x [average monthly credit]
3. P1000, provided that the monthly pension
shall in no case be paid for an aggregate
amount of less than 60 months [Sec. 12 (a)]
4. Notwithstanding the above mentioned,
minimum pension is:
a. P1,200 - members with at least 10
years credit service
b. P 2,400 - members with at least 20
years
b. Dependents' Pension [Sec. 12-
A, RA 11199]
1. Paid on account of members’
a. Death
b. Permanent total disability, or
c. Retirement
2. Paid to each child conceived on or prior to
contingency, but not exceeding 5,
beginning with the youngest and preferring
the legitimate
3. Amount is either P250 or 10% of the
monthly pension as computed above,
whichever is higher.
U.P. LAW BOC LABOR 2
c. Retirement benefits [Sec. 12-B,
RA 11199]
Requisites for Eligibility
1. 120 monthly contributions
2. Age
a. Has reached the age of 60 years and is
already separated from employment or
has ceased to be self-employed; or
b. Has reached the age of 65 years
Period of entitlement - From retirement until
death
The monthly pension shall be suspended upon
the reemployment or resumption of self-
employment of a retired member who is less
than 65 years old.
In Case of Death of Member
1. His/her primary beneficiaries as of the date
of his/her retirement shall be entitled to
receive the monthly pension;
2. If he/she has no primary beneficiaries AND
he/she dies within 60 months from the start
of his/her monthly pension, his/her
secondary beneficiaries shall be entitled to
a lump sum benefit equivalent to the total
monthly pensions corresponding to the
balance of the 5 year guaranteed period,
excluding the dependents’ pension.
Lump Sum Alternative
The member may opt to receive the first 8
monthly pensions in lump sum but such is
discounted at a preferential rate of interest to
be determined by the SSS.
Lump Sum Eligibility (Equal to total
contributions)
A covered member who is 60 years old at
retirement and who does not qualify for
pension benefits (see requisites for eligibility)
shall be entitled to a lump sum benefit equal to
the total contributions paid by him and on his
behalf: Provided, That he is separated from
employment and is not continuing payment of
contributions to the SSS on his own.
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Monthly pension
The monthly pension of a member who retires
after reaching age 60 shall be the highest of
either:
1. The monthly pension computed at the
earliest time he could have retired had he
been separated from employment or
ceased to be self-employed plus all
adjustments thereto; or
2. The monthly pension computed at the time
when he actually retires.
d. Permanent disability benefits
[Sec. 13-A, RA 11199]
Eligibility
1. 36 monthly contributions prior to the
semester of disability
Note: This is the same as death benefit, but
permanent disability pension is paid
directly to the member.
2. In case the permanently disabled member
dies, he/she is given the same treatment as
a retiree dying.
3. For permanent partial disability, the
pension is not lifetime. It shall be paid in
lump sum if the period is less than 12
months.
Ex. loss of thumb entitles member to 10
months of pension; loss of arm entitles
member to 50 months.
4. For multiple partial disabilities, they shall
be additive when related or deteriorating -
the percentage shall be equal to the
number of months the partial disability is
entitled to, divided by 75 months.
Ex. loss of sight in 1 eye - 25/75; loss of
arm = 50/75
If both occur due to same cause then 25/75
+ 50/75 = 100% (as if it were a permanent
total disability)
U.P. LAW BOC LABOR 2
Lump Sum Alternative
A member is entitled to a lump sum benefit
equivalent to the monthly pension x number of
monthly contributions paid to the SSS or 12
times the monthly pension, whichever is
higher. To be entitled, he must not have paid at
least 36 monthly contributions.
Subject to compulsory coverage again
A member who:
1. Received a lump sum benefit, and
2. Is reemployed or resumed self-
employment not earlier than 1 year from
date of disability ,
shall be subject to compulsory coverage and
considered a new member.
Death of Member
1. His/her primary beneficiaries as of the date
of his/her retirement shall be entitled to
receive the monthly pension;
2. If he/she has no primary beneficiaries AND
he/she dies within 60 months from the start
of his/her monthly pension, his/her
secondary beneficiaries shall be entitled to
a lump sum benefit equivalent to the total
monthly pensions corresponding to the
balance of the 6 year guaranteed period,
excluding the dependents’ pension.
e. Death Benefits [Sec. 13, RA
11199]
Eligibility
36 monthly contributions prior to the semester
of death
Benefit
1. Monthly pension to primary beneficiaries,
or
2. If no primary beneficiaries, lump sum
equivalent to 36 times the monthly pension
to secondary beneficiaries
If ineligible/has not paid 36 monthly
contributions
A lump sum benefit which shall be that which is
higher between the ff. will be given to the
beneficiaries:
a. (monthly pension) x 12, or
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LABOR LAW
b. (monthly pension) x (# of monthly
contributions)
f. Funeral benefits [Sec. 13-B, RA
11199]
P12,000 in cash or in kind, upon the death of
member.
g. Loan
Social Security Commission Reso. No. 669,
SSS Circular No. 21-P and 52 pertain to
treatment of salary loans, which sometimes
provide for more flexible payment terms or
condonation for delinquent payers.
h. Sickness benefits [Sec. 14, RA
11199]
Eligibility
1. Inability to work due to sickness or injury,
2. Confined for more than 3 days either in a
hospital or elsewhere with SSS approval
3. At least 3 months of contribution paid in the
12 month period immediately before the
semester of sickness or injury
4. All company sick leaves with pay for the
current year have been used up;
5. Maximum of 120 days per 1 calendar year
(i.e. max permissible for the same sickness
and confinement is 240 days for 2
consecutive years)
6. Employer has been notified, or, if a
separated, voluntary or self-employed
member, the SSS has been directly notified
within 5 days from confinement.
Notice to employers or SSS is not needed
when confinement is in a hospital.
Notice to employer is not required when
employee became sick or injured while working
or within the premises of the employer.
Benefit
Daily cash allowance paid for the number of
days a member is unable to work due to
sickness of injury equivalent to 90% x (average
daily salary credit)
U.P. LAW BOC LABOR 2
Reimbursement of SSS to Employer
Upon satisfactory proof of payment and legality
of sickness benefits, reimbursement shall be
made by the SSS if the following conditions are
met:
1. Employer notified SSS of the confinement
within 5 calendar days after receipt of the
notification from the employee-member -
100% reimbursement
2. If the notification to SSS is made beyond 5
calendar days after receipt of notification
from the employee-member -
reimbursement only for each day of
confinement starting from the 10th
calendar day immediately preceding the
date of notification to SSS
SSS shall reimburse the employer or pay the
unemployed member only for confinement
within the 1 year period immediately preceding
the date the claim for benefit/reimbursement is
received by SSS.
Exception: Confinement in a hospital - the
claim for benefit or reimbursement must be
filed within 1 year from the last day of
confinement
i. Maternity Leave benefits [Sec.
14-A, RA 11199]
Eligibility
1. Female member
2. Paid at least 3 monthly contributions in the
12-month period immediately preceding
the semester of her childbirth or
miscarriage
3. Member notified her employer of her
pregnancy and probable date of childbirth,
which notice shall be transmitted to the
SSS
Full payment shall be advanced by the
employer within 30 days from filing the
maternity leave application.
Coverage
Covers only the first four deliveries or
miscarriages.
Employer’s reimbursement
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LABOR LAW
Full payment shall be advanced by the
employer within 30 days from filing the
maternity leave application.
SSS shall reimburse the employer of 100% of
the amount of maternity benefits advanced
upon receipt of satisfactory proof of payment
and legality thereof.
Note: All benefits herein mentioned are tax-
exempt.
j. Unemployment Insurance or
Involuntary Separation Benefits
[Sec. 14-B, RA 11199]
Eligibility
1. Not over 60 years of age
2. At least 36 months contributions, 12
months of which should be in the 18th
month period immediately preceding the
involuntary unemployment or separation
Benefit
Monthly cash payments equivalent to 50% of
the average monthly salary credit for a
maximum of 2 months
Frequency of claiming benefit
An employee who is involuntarily unemployed
can only claim unemployment benefits once
every 3 years.
In case of concurrence of 2 or more
compensable contingencies, only the highest
benefit shall be paid, subject to the rules and
regulations that the Commission may
prescribe.
B. GOVERNMENT SERVICE
INSURANCE SYSTEM LAW
[Republic Act 8291]
1. Coverage and Exclusions
Coverage
All public sector employees below the
compulsory retirement age of 65, irrespective
of employment status. [Sec. 3]
U.P. LAW BOC LABOR 2 LABOR LAW

Exclusions a. Monthly Pension [Sec. 9]

1. AFP and PNP
2. Members of the Judiciary and The amount shall be [37.5% x (revalued
Constitutional Commissions who are average monthly compensation)] + [2.5 x
covered only by life insurance as they have (revalued average monthly compensation) x
separate retirement schemes (years in service in excess of 15 years)]
3. Contractual employees with no employer-
employee relationship [Sec. 3] Provided, the monthly pension shall not exceed
90% of the average monthly compensation.
2. Dependents and Beneficiaries
It shall not be less than P24,000 for those with
Primary 20 years of service and not less than P1,300
1. Dependent spouse - until remarriage for everyone else.
2. Dependent children (legitimate,
legitimated, legally adopted and b. Retirement Benefits [Sec. 13]
illegitimate)
Eligibility
Note: Unlike the SSS law, the GSIS law does 1. At least 15 years of service
not distinguish between the share of legitimate 2. At least 60 years of age
and illegitimate children. 3. Not receiving pension benefit from
permanent total disability
Secondary
In the absence of primary beneficiaries, Compulsory Retirement [Sec. 13-A]
1. Dependent parents Retirement is compulsory for employees:
2. Legitimate descendants (excluding 1. 60 years of age
dependent children) 2. Who have rendered at least 15 years of
service
3. Benefits
If employee has less than 15 years of service,
Computation of service [Sec. 10] he may be allowed to continue in accordance
From date of original appointment/election with civil service laws.
including periods of service at different times
under 1 or more employers, those performed Benefit [Sec. 13]
overseas under the authority of the Republic of The member may choose between
the Philippines, and those that may be 1. 60 x (basic monthly pension) lump sum
prescribed by the GSIS in coordination with the payment at the time of retirement + basic
Civil Service Commission. monthly pension payable monthly for life
after expiry of the 5-year guaranteed period
In case of reinstatement in the service of an which is already covered by the lump sum,
employer and subsequent retirement or or
separation which is compensable under this 2. Cash payment equal to 18 x (basic monthly
Act, all service credited for retirement, pension) + monthly pension for life
resignation or separation for which immediately but with no 5-year guarantee
corresponding benefits have been awarded
under this Act or other laws shall be excluded
in the computation.

GSIS may prescribe rules for the inclusion of

part time and other services with
compensation.

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U.P. LAW BOC LABOR 2 LABOR LAW

c. Permanent Disability Benefits

Ineligible members
If member has rendered at least 3 years of
Total and Partial and
service, he shall receive cash payment equal
Permanent Permanent
to 100% of average monthly compensation for
[Sec. 16] [Sec. 17]
each year of service (essentially total amount
1. Complete loss of 1. Complete and of contributions made) or P12,000 whichever is
sight of both permanent loss higher [Sec. 16].
eyes of the use of
2. Loss of 2 limbs a. Any finger Partial Disability
at or above the b. Any toe Paid according to GSIS prescribed schedule.
ankle or wrist c. One arm Member must satisfy conditions regarding the
3. Permanent d. One hand disability not being due to his own fault and
complete e. One foot regarding employment status and services
paralysis of 2 f. One leg rendered.
limbs g. One/both
4. Brain injury ears d. Death benefits [Sec. 21]
resulting in h. Hearing of
incurable one/both When member dies, the primary beneficiaries
imbecility or ears are entitled to only ONE of the following:
insanity i. Sight of one 1. Survivorship pension
5. Other cases as eye a. He was in service when he died, or
determined by 2. Other cases as b. Even if separated from service, he has
GSIS determined by at least 3 years of service and has paid
GSIS 36 monthly contributions within the 5
years preceding death, or
c. Even if separated from the service, he
Eligibility for Permanent Total Disability has paid 180 monthly contributions
1. Disability not due to employee’s own grave prior to death.
misconduct, notorious negligence, habitual 2. Survivorship pension + cash payment of
intoxication, or willful intention to kill himself 100% of average monthly compensation
for another [Sec. 15] for every year of service [pension + total
2. Employee is: contributions made]
a. In service at time of disability a. He was in service when he died, and
b. Even if separated, has paid at least 36 b. With 3 years of service
monthly contributions within the 5-year 3. Cash payment equivalent to 100% average
period immediately prior to disability or monthly compensation for each year of
has paid a total of at least 180 monthly service he paid contributions or P12,000
contributions prior to disability whichever is higher
c. Not enjoying old-age retirement benefit a. With 3 years of service
[Sec. 16]. b. He has failed to qualify in the prior 2
schemes.
Benefit for Permanent Total Disability
1. Monthly income benefit for life equal to e. Funeral Benefits [Sec. 23]
basic monthly pension, from date of
disability Eligibility
2. If member is in service at time of disability 1. Active member
and has paid at least 180 monthly 2. Member separated from service but still
contributions, he receives an additional entitled to the benefit
cash payment of 18 x basic monthly 3. Pensioner
pension

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U.P. LAW BOC LABOR 2 LABOR LAW

4. Retiree who at time of retirement was of i. Unemployment Benefits [Sec.

pensionable age but opted to retire under 12]
RA 1616
Eligibility
f. Loan 1. Employee separated from service due to
abolition of his office or position and
The following are the loans provided: 2. Employee has been paying integrated
1. Consolidated Loan contributions for at least 1 year prior to
2. Policy loan separation
3. Emergency loan
4. Pension loan Benefit
Monthly cash payments of 50% x average
g. Temporary Disability Benefits monthly compensation for a duration which is
[Sec. 18] proportional to years rendered, ranging from 2
to 6 months.
Eligibility
1. Employee must be: j. Survivorship Benefits
a. In service at time of disability, or
b. If separated, he has rendered at least Benefit
3 years of service and paid at least 6 1. Basic survivorship pension - 50% x basic
monthly contributions in the 12 month monthly pension (see Death Benefits) and
period immediately prior to disability 2. Dependent children’s pension not
2. All sick leave credits including those in the exceeding 50% of the basic monthly
CBA for the current year have been used pension
3. Maximum of 120 days per 1 calendar year
k. Life Insurance Benefits
Ex. maximum for the same sickness and
confinement is 240 days for 2 consecutive Members of the Judiciary and Constitutional
years Commissions are only entitled to life insurance.

Benefit
75% x current daily compensation for every
day or fraction thereof of disability OR P70.00,
whichever is higher.

h. Separation Benefits [Sec. 11]

Eligibility and benefit received

1. 60 years of age, or separation from service
with at least 3 years but not over 15 years
served – cash payment of 100% of ave.
monthly compensation for each year of
service (total amount of all contributions
paid) or P12,000 whichever is higher
2. Below 60 years of age, but at least 15 years
of service rendered – cash payment of 18
x (monthly pension) at time of
resignation/separation + old age pension
benefit (equal to basic monthly pension)

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U.P. LAW BOC LABOR 2 LABOR LAW

SSS GSIS

RA 1161 as amended by RA 8282 or the PD 1146 as amended by RA 8291

Enabling
Social Security Act of 1997, and RA11199
law
or the Social Security Act of 2018

Employer – any person, natural or Employer – National government, its

juridical, domestic or foreign, who carries political subdivisions, branches, agencies
on in the Philippines any trade business, or instrumentalities, including
industry, undertaking, and uses the government- owned or controlled
services of another person who is under his corporations and financial institutions
orders as regards the employment, except with original charters [GOCCs];
those considered as employer under the constitutional commissions; and judiciary
GSIS. A self- employed person shall be
both employer and employee at the same
time.

Employee – any person who performs Employee – any person receiving

services for an employer in which either or
both mental and physical efforts are used
and who receives compensation for such
services, where there is an employer—
employee relationship; also, a self-
employed person who is both employee
and employer at the same time.
compensation while in service of an
employer whether by election or
appointment, irrespective of status of
appointment; barangay officials; and
sanggunian officials

Self-employed - any person whose No counterpart

Definition
income is not derived from employment,
of terms
including but not limited to
a. Self-employed professionals
b. Partners and single proprietors of
businesses
c. Actors, directors, scriptwriters, news
correspondents not considered as
employees under the above definition
d. Individual farmers and fishers

Dependents Same, except child here is below 18

a. Legal spouses entitled by law to years old.
receive support
b. Child - unmarried, not gainfully
employed, and below 21 or
c. Child over 21 if he or she became
permanently incapacitated and
incapable of self-support, physically or
mentally; child may be legitimate,
legitimated, legally adopted or
illegitimate
d. Parent who is receiving legal support

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U.P. LAW BOC LABOR 2 LABOR LAW

Beneficiaries Same except no distinction in the share

Primary of legitimate and illegitimate children
1. Dependent spouse - until remarriage
2. Dependent children [legitimate,
legitimated, legally adopted and
illegitimate] - Illegitimate children are
entitled only to 50% of the share of
legitimate children. Where there are no
legitimate children, the illegitimate
children get 100%
Secondary
1. Receives only when the primary
beneficiaries are absent
2. Dependent parents
Others
1. Receives only when primary and
secondary beneficiaries are absent
2. Any other person designated by
member as his/her secondary
beneficiary.

Compensation – all actual remuneration Compensation – basic pay received

for employment, including mandated cost- excluding per diems, bonuses, overtime,
of-living allowance, as well as the cash honoraria, allowances and other
value of any remuneration paid in any emoluments not integrated into the basic
medium other than cash except that portion pay under existing laws.
already above the max salary credit as
provided in this Act.

Compulsory Public sector employees below the

1. Employers as defined above compulsory retirement age of 65.
2. Employees not over 60 years including
household helpers Exceptions:
3. Self-employed 1. AFP & PNP
2. Members of Judiciary and
Voluntary Constitutional Commissions who are
1. Spouses who devote full time to covered only by life insurance
managing household and family affairs 3. Contractual employees with no EER
2. Employers already separated form with the agency they serve
employment or those self-employed
with no realized income for a given
month, who chose to continue with
contributions to maintain right to full
benefit
Note: Foreign governments, international
organizations or their wholly owned
instrumentality employing workers in the
Philippines may enter into an agreement
with the Philippine government to include
their employees in the SSS except those

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U.P. LAW BOC LABOR 2 LABOR LAW

already covered by their civil service

retirement system.

1. Monthly pension 1. Monthly pension

2. Dependents’ pension 2. Dependents’ pension
3. Retirement benefits 3. Retirement benefits
4. Permanent disability benefits 4. Permanent disability benefits
5. Death benefits 5. Death benefits
6. Funeral benefits 6. Funeral benefits
Summary 7. Loan 7. Loan
of 8. Sickness benefits 8. Separation benefits
Benefits 9. Maternity leave benefits 9. Unemployment benefits
10. Unemployment benefit 10. Survivorship benefits
11. Life insurance benefits

Note: Members of the Judiciary and

Constitutional Commissions are entitled
to life insurance only.

1. Employer’s contribution, and Continued membership for the

Effects of employee’s obligation to pay unemployed member, and entitlement to
separa- contribution both cease at the end of whatever benefits he has qualified to in
tion from the month of separation the event of any compensable
employ- 2. Employee shall be credited with all contingency.
ment contributions paid on his behalf and
entitled to all benefits set forth by law.

Dispute Social Security Commission à CA (Rule GSIS à CA (Rule 43) à SC (Rule 45);
settle- 43, questions of law & fact) à SC (Rule 45, appeal does not stay execution
ment questions of law only)

Prescrip- 20 years 4 years

tive
period

conditions by providing benefits for their long

C. LIMITED PORTABILITY
LAW
[RA 7699: “An Act Instituting Limited Portability
Scheme in the Social Security Insurance
Systems by Totalizing the Workersʹ Creditable
Services or Contributions in each of the
Systems”]
Policy declaration
To promote the welfare of our workers by
recognizing their efforts in productive
endeavors and to further improve their
years of contribution to the national economy.
Towards this end, the State shall institute a
scheme for totalization and portability of social
security benefits, with the view of establishing
within a reasonable period a unitary social
security system [Section 1, RA 7699].
Coverage
All worker‐members of the Government
Service Insurance System (GSIS) and/or
Social Security System (SSS) who transfer
from one sector to another, and who wish to
retain their membership in both Systems.

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U.P. LAW BOC LABOR 2
Portability
Refers to the transfer of funds for the account
and benefit of a worker who transfers from one
system to the other [Section 2(b), RA 7699].
Provisions of any general or special law or
rules and regulations to the contrary
notwithstanding, a covered worker shall have
his credible services or contributions in both
Systems credited to his service or contribution
record in each of the Systems and shall be
totalized for purposes of old-age, disability,
survivorship and other benefits in case the
covered member does not qualify for such
benefits in either or both Systems without
totalization.
Provided: That overlapping periods of
membership shall be credited only once for
purposes of totalization [Section 4, RA 7699].
Totalization
Refers to the process of adding up the period
of creditable services or contributions under
each of the Systems, for purposes of eligibility
and computation of benefits [Section 2(e), RA
7699].
Totalization of service credits is only resorted
to when the retiree does not qualify for benefits
in either or both of the System. In this case,
since the petitioner may be entitled to some
benefits from the GSIS, he cannot avail of the
benefits under RA 7699 [Gamogamo v. PNOC
Shipping and Transport Corp, G.R. No. 141707
(2002)].
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. [Section 4, RA 7699].
All creditable services or periods of
contributions made continuously or in the
aggregate of a worker under either of the
Sectors shall be added up and considered for
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LABOR LAW
purposes of eligibility and computation of
benefits [Rule V, Sec. 1, RA 7699 Rules and
Regulations].
Totalization shall apply in the following
instances:
a. If a worker is not qualified for any benefits
from both Systems;
b. If a worker in the public sector is not
qualified for any benefits in the GSIS; or
c. If a worker in the private sector is not
qualified for any benefits from the SSS.
For the purpose of computation of benefits,
totalization shall apply in all cases so that the
contributions made by the worker‐member in
both Systems shall provide maximum benefits
which otherwise will not be available. In no
case shall the contribution be lost or forfeited
[Rule V, Sec. 3, RA 7699 Rules and
Regulations].
If after totalization the worker‐member still
does not qualify for any benefit listed in Rule III,
Section 1 (j), the member will then get whatever
benefits correspond to his/her contributions in
either or both Systems [Rule V, Sec. 4, RA
7699 Rules and Regulations].
If a worker qualifies for benefits in both
Systems, totalization shall not apply [Rule V,
Sec. 5, RA 7699 Rules and Regulations].
The process of totalization of creditable
services or periods of contributions and
computation of benefits provided for under the
Act shall be the joint responsibility of the GSIS
and the SSS [Rule V, Sec. 6, RA 7699 Rules
and Regulations].
Overlapping periods of creditable services or
contributions in both Systems shall be credited
only once for purposes of totalization [Rule V,
Sec. 7, RA 7699 Rules and Regulations].
U.P. LAW BOC LABOR 2
D. DISABILITY AND DEATH
BENEFITS
1. Labor Code
Under the Labor Code, employees'
compensation (EC) benefits are granted to
employees or their dependents for work-
connected disability or death, or those
resulting from accident arising out of and in
the course of employment. [Art. 166, LC in
rel. to Sec. 1, Rule III, IRR]
Types of disability
1. Temporary Total Disability [Art. 197]
2. Permanent Total Disability [Art. 198]
3. Permanent Partial Disability [Art. 199]
a. Disability Benefits
Disability does not refer to the injury nor to the
pain and suffering it has occasioned, but to the
loss and impairment of earning capacity.
There is disability when there is a loss or
diminution of earning power because of actual
absence from work due to injury or illness
arising out of and in the course of employment.
The basis of compensation is reduction of
earning power. [Azucena, p. 525]
TEMPORARY TOTAL DISABILITY
A total disability is temporary if as a result of
the injury or sickness, the employee is unable
to perform any 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].
The object of the law in allowing compensation
during temporary disability is to compensate
the laborer or employee for what he might have
earned during the period of the treatment of his
injury. [Cañete v. Insular Lumber Co., 61 Phil.
592 (1935)]
Amount of benefit
An employee suffering from temporary total
disability shall be paid by the System an
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LABOR LAW
equivalent of ninety percent (90%) of the
average salary credit, provided:
1. The daily income benefit is not less than
Ten (10) pesos nor more than Ninety (90)
pesos, nor paid for a continuous period
longer than 120 days. [Art. 197]
2. The monthly income benefit shall be
suspended if the employee fails to submit
a monthly medical report certified by its
attending physician [Art.194]
Period of Entitlement
The employee is entitled to the benefit from the
day of the start of the disability. It shall not be
paid longer than 120 consecutive days except
where such injury or sickness still requires
medical attendance beyond 120 days but not
to exceed 240 days from onset of disability.
When after the period of temporary total
disability had ceased, an employee was found
to be suffering from a permanent partial
disability, he was entitled to an award based
upon partial disability permanent in character.
[Cañete v. Insular Lumber Co., 61 Phil. 592
(1935)]
PERMANENT TOTAL DISABILITY
A disability is total and permanent if as a result
of the injury or sickness the employee is unable
to perform any gainful occupation for a
continuous period exceeding 120 days. [Art.
198 in rel. to Sec. 2(b), Rule VII]
The test of whether or not an employee suffers
from ‘permanent total disability’ is a showing of
the capacity of the employee to continue
performing his work notwithstanding the
disability he incurred. It does not mean an
absolute helplessness but rather an incapacity
to perform gainful work which is expected to be
permanent. [Vicente vs. ECC, G.R. No. 85024,
(1991)]
The Labor Code enumerates six instances
considered to be a permanent total disability:
1. Temporary total disability lasting
continuously for more than one hundred
twenty days, except as otherwise provided
for in the Rules;
2. Complete loss of sight of both eyes;
U.P. LAW BOC LABOR 2
3. Loss of two limbs at or above the ankle or
wrist;
4. Permanent complete paralysis of two
limbs;
5. Brain injury resulting in incurable imbecility
or insanity; and
6. Such cases as determined by the Medical
Director of the System and approved by the
Commission. [Art. 197(c)]
Rules for the determination of disability
(120-day or 240-day)
Initially, there was confusion as to the
application of the 120-day period found in
Article 192 (c) (1) of the Labor Code vis-à-vis
the application of the 240-day period found in
Section 2, Rule X of the Amended Rules on
Employees' Compensation Implementing Title
II, Book IV of the Labor Code.
Permanent disability:
Article 192(c)(1): Temporary total disability
lasting continuously for more than one hundred
twenty days, except as otherwise provided in
the Rules.
Section 2, Rule X: …where such injury or
sickness still requires medical attendance
beyond 120 days but not to exceed 240 days
from onset of disability.
To reconcile these provisions, the Supreme
Court laid down the following rules in the case
of Dagasdas v. Grand Placement and General
Services Corporation. [G.R. No. 205727,
(2017)]
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 him;
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 (e.g.
seafarer required further medical treatment
or seafarer was uncooperative), then the
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LABOR LAW
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.
It must be emphasized that the company-
designated physician must:
1. ISSUE a final medical assessment of the
seafarer's medical condition; AND
2. GIVE his assessment to the seafarer
concerned.
That is to say that the seafarer must be fully
and properly informed of his medical
condition.
The results of his/her medical examinations,
the treatments extended to him/her, the
diagnosis and prognosis, his/her disability
grading must be fully explained to him/her by
no less than the company-designated
physician.
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.
To require the seafarer to seek the decision of
a neutral third-party physician without primarily
being informed of the assessment of the
company-designated physician is a clear
violation of the tenets of due process.
Amount of Benefit
The employee suffering from a permanent total
disability shall be entitled to an amount
equivalent to the monthly income benefit, plus
ten percent thereof for each dependent child,
but not exceeding five, beginning with the
youngest and without substitution: Provided,
That the monthly income benefit shall be the
U.P. LAW BOC LABOR 2 LABOR LAW

new amount of the monthly benefit for all

One big toe 6
covered pensioners. [Art. 198]

Period of Entitlement One toe 3

An employee with permanent total disability
shall be entitled to receive benefits monthly for One arm 50
five (5) years.
One hand 39
However, Art. 198(b) provides that the benefits
may be suspended if the employee is gainfully One foot 31
employed, or recovers from his permanent total
disability, or fails to present himself for One leg 46
examination at least once a year.
One ear 10
PERMANENT PARTIAL DISABILITY
A disability is partial and permanent if as a
result of the injury or sickness the employee Both ears 20
suffers a permanent partial loss of the use of
any part of his body. [Art. 199 in rel. to Sec. Hearing of one ear 10
2(c), Rule VII, Amended Rules on Employees’
Compensation]. Hearing of both ears 50

The object of the law in granting compensation

Sight of one eye 25
for a permanent partial disability is to
compensate the injured laborer or employee
for the actual and permanent loss of a member Notes:
of the body, or the use thereof. [Cañete v. 1. A loss of a wrist shall be considered as a
Insular Lumber Co., 61 Phil. 592 (1935)] loss of the hand, and a loss of an elbow
shall be considered as a loss of the arm.
Amount of benefits 2. A loss of an ankle shall be considered as
For an employee who has suffered a loss of a foot, and a loss of a knee shall be
permanent partial disability, the amount of considered as a loss of the leg.
benefits, as well as the period of entitlement to 3. A loss of more than one joint shall be
receive such benefits is based upon the degree considered as a loss of one-half of the
of disability, as well as the lost body part. The whole finger or toe: Provided, That such a
body parts and the corresponding period of loss shall be either the functional loss of the
equivalent disability are specified in Art 199. use or physical loss of the member. [Art.
199(c)]
Table of benefits [Art. 199(b)]
Body part/s Number of months In case of permanent partial disability less
than the total loss of the member specified
One thumb 10 in Art. 199(b), the same monthly income
benefit shall be paid for a portion of the period
One index finger 8 established for the total loss of the member, in
accordance with the proportion that the partial
One middle finger 6 loss bears to the total loss. If the result is a
decimal fraction, the same shall be rounded off
One ring finger 5 to the next higher integer [Art. 199(d)].

In cases of simultaneous loss of more than

One little finger 3
one member or a part thereof as specified

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U.P. LAW BOC LABOR 2
in Art. 199(b) the same monthly income
benefit shall be paid for a period equivalent to
the sum of the periods established for the loss
of the member or the part thereof. If the result
is a decimal fraction, the same shall be
rounded off to the next higher integer [Art.
199(e)].
In cases of injuries or illnesses resulting in
a permanent partial disability not listed in
the Art. 199(b), the benefit shall be an income
benefit equivalent to the percentage of the
permanent loss of the capacity to work [Art.
199(f)].
Distinguished from permanent total
disability
While “permanent total disability” invariably
results in an employee’s loss of work or inability
to perform his usual work, “permanent partial
disability,” on the other hand, occurs when an
employee loses the use of any particular
anatomical part of his body which disables him
to continue with his former work. [Vicente v.
ECC, G.R. No. 85024, (1991)]
Conversion from permanent partial
disability to permanent total disability
A person’s disability may not manifest fully at
one precise moment in time but rather over a
period of time. It is possible that an injury which
at first was considered partial disability may
become totally and permanently disabled from
the same cause. There is nothing in the law
that prohibits the conversion of permanent
partial disability benefit to permanent total
disability benefit, if it is shown that the
employee’s ailment qualifies as such. [GSIS v.
Court of Appeals and R. Balais, G.R. No.
117572 (1998)].
When salary is higher after the injury
In a case where the employee filed a claim for
permanent partial disability but the ECC denied
the claim because in fact his salary was higher
than before, the Court ruled that the fact of
higher earning capacity fact would not in itself
necessarily affect the laborer’s claim for
compensation for a permanent partial
disability. The amount of his salary may be
affected by various extraneous matters or
Page 211 of 262
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factors. [Central Azucarera Don Pedro v. C. de
Leon, in his capacity as Workmen’s
Compensation Commissioner and L. Alla, G.R.
No. L-10036 (1957)].
b. Death Benefits
Monthly Income Benefit
Under such regulations as the Commission
may approve, the System shall pay to the
primary beneficiaries:
1. Upon the death of the covered
employee under this Title:
a. An amount equivalent to his monthly
income benefit;
b. Plus 10% thereof for each dependent
child, but not exceeding five, beginning
with the youngest and without
substitution, except as provided for in
par. (j) of Article 167 hereof: Provided,
That –
i. The monthly income benefit shall
be guaranteed for five years;
ii. If he has no primary beneficiary,
the System shall pay to his
secondary beneficiaries the
monthly income benefit but not to
exceed sixty months; and
iii. The minimum death benefit shall
not be less than fifteen thousand
pesos. (As amended by Section 4,
Presidential Decree No. 1921).
2. Upon the death of a covered employee
who is under permanent total disability
under this Title: 80% of the monthly
income benefit and his dependents to the
dependents’ pension: Provided, That –
a. The marriage must have been validly
subsisting at the time of disability;
b. If he has no primary beneficiary, the
System shall pay to his secondary
beneficiaries the monthly pension
excluding the dependents’ pension, of
the remaining balance of the five-year
guaranteed period; and
c. The minimum death benefit shall not be
less than fifteen thousand pesos. (As
amended by Section 4, Presidential
Decree No. 1921).
U.P. LAW BOC LABOR 2
Note: The monthly income benefit provided
herein shall be the new amount of the monthly
income benefit for the surviving beneficiaries
upon the approval of this decree. [Art. 200 (a)-
(c)]
Condition to entitlement
The beneficiaries of a deceased employee
shall be entitled to an income benefit if all of the
following conditions are satisfied:
1. The employee has been duly reported to
the System;
2. He died as a result of an injury or sickness;
and
3. The System has been duly notified of his
death, as well as the injury or sickness
which caused his death. His employer shall
be liable for the benefit if such death
occurred before the employee is duly
reported for coverage to the System. [Sec.
1(a), Rule XIII, IRR]
Notes:
1. If the employee has been receiving
monthly income benefit for permanent total
disability at the time of his death, the
surviving spouse must show that the
marriage has been validly subsisting at the
time of his disability.
2. In addition, the cause of death must be a
complication or natural consequence of the
compensated Permanent Total Disability.
[Sec. 1(b), Rule XIII, IRR]
Beneficiaries
The beneficiaries are:
1. Primary beneficiaries:
a. Dependent spouse until he/she
remarries;
b. Dependent children (legitimate,
legitimated, natural-born, or legally
adopted).
2. Secondary beneficiaries:
1. Illegitimate children and legitimate
descendants;
2. Parents, grandparents, grandchildren.
[Azucena, p. 541]
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Dependents
"Dependent" means:
1. The legitimate, legitimated or legally
adopted or acknowledged natural child
who is:
a. Unmarried,
b. Not gainfully employed, and
c. Not over twenty-one (21) years of age
or over twenty-one (21) years of age
provided he is incapacitated and
incapable of self-support due to a
physical or mental defect which is
congenital or acquired during minority;
2. The legitimate spouse living with the
employee and the parents of said
employee wholly dependent upon him for
regular support. [Art. 173(i)]
The test of dependency is not merely whether
the contributions were necessary to bare
subsistence. Dependency may exist if such
contributions were relied on by claimant for
his/her means of living as determined by
his/her position in life. [Malate Taxicab v. Del
Villar, G.R. No. L-7489 (1956)]
Period of entitlement
For primary beneficiaries
The income benefit shall be paid beginning at
the month of death and shall continue to be
paid for as long as the beneficiaries are entitled
thereto. [Sec. 2, Rule XII, IRR]
For secondary beneficiaries
The income benefit shall be sixty (60) times the
monthly income benefit of a primary beneficiary
which in no case be less than P 15,000.00,
which shall likewise be paid in monthly
pension. [Sec. 2(a), Rule XII, IRR]
Manner of payment
Death benefits are paid in the form of cash
monthly pension:
1. For life to the primary beneficiaries,
guaranteed for five years;
2. For not more than 60 months to the
secondary beneficiaries in case there are
no primary beneficiaries;
3. In no case shall the total benefit be less
than P15,000. [Art. 200]
U.P. LAW BOC LABOR 2
Amount of benefits
For primary beneficiaries
Monthly income benefit shall be equivalent to
the monthly income benefit for permanent total
disability, which shall be guaranteed for five
years, increased by ten percent for each
dependent child but not exceeding 5, beginning
with the youngest and without substitution.
[Sec. 3, Rule XII, IRR]
Notes:
1. The aggregate monthly benefit payable in
the case of the GSIS shall in no case
exceed the monthly wage or salary actually
received by the employee at the time of his
death;
2. The minimum income benefit shall not be
less than Fifteen Thousand Pesos
(P15,000.00). [Sec. 3, Rule XII, IRR]
For secondary beneficiaries
Income benefit is payable in monthly pension
which shall not exceed the period of 60 months
and the aggregate income benefit shall not be
less than P15, 000.00. [Sec. 3, Rule XII, IRR]
Death benefits after retirement are allowed
Generally, the term “covered employees”
refers to an employee who, at the time of his
death, is still covered by the GSIS. However,
the implementing rules and regulations of the
Employees’ Compensation Commission allows
death benefits to those retired employees
whose retirement was brought about by
permanent disability.
The Court is aware that death benefits must be
granted to the primary beneficiaries of the
decedent to help the family of a permanent and
totally disabled person who was so disabled
because of causes that are work-oriented. The
rule applies all the more when the disabled
person later dies because of the same cause
or related cause. [Manuzon v. ECC, G.R. No.
88573, (1990)]
Death of a person receiving permanent total
disability benefits
Under Art. 200(b), death benefit shall be paid
to the beneficiaries if an employee, while
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LABOR LAW
receiving permanent total disability benefit,
dies.
Prescription of claims
All money claims arising from employer-
employee relations shall be filed within three
(3) years from the time the cause of action
accrued; otherwise they shall forever be
barred. [Art. 306]
2. Employees Compensation and
State Insurance Fund
Policy
To promote and develop a tax-exempt
employees’ compensation program whereby
employees and their dependents, in the
event of work-connected disability or death,
may promptly secure adequate income
benefit and medical related benefits [Art.
172 [166]]
"Dependent" means:
1. The legitimate, legitimated or legally
adopted or acknowledged natural child
who is:
a. Unmarried,
b. Not gainfully employed, and
c. Not over twenty-one (21) years of age
or over twenty-one (21) years of age
provided he is incapacitated and
incapable of self-support due to a
physical or mental defect which is
congenital or acquired during minority;
2. The legitimate spouse living with the
employee and the parents of said
employee wholly dependent upon him for
regular support. [Art. 173(i)]
The beneficiaries are:
1. Primary beneficiaries:
a. Dependent spouse until he/she
remarries;
b. Dependent children (legitimate,
legitimated, natural-born, or legally
adopted).
2. Secondary beneficiaries:
a. Illegitimate children and legitimate
descendants;
b. Parents, grandparents, grandchildren.
[Art. 173(j)]
U.P. LAW BOC LABOR 2
Compulsory coverage
Coverage in the State Insurance Fund shall be
compulsory upon all employers and their
employees not over sixty (60) years of age:
Provided, That an employee who is over (60)
years of age and paying contributions to qualify
for the retirement or life insurance benefit
administered by the System shall be subject to
compulsory coverage [Art. 174[168]] (“System”
- SSS or GSIS, as the case may be).
Foreign employment - Filipino employees
employed abroad shall be adequately covered,
subject to regulations as the Commission may
prescribe [Art. 175[169]] (“Commission” -
Employees Compensation Commission)
Limitation of liability
The State Insurance fund shall be liable for
compensation to the employee or his
dependents, except when the disability or
death was occasioned by the employees’
intoxication, willful intention to injure or kill
himself or another, notorious negligence, or
otherwise provided in this title. [Art. 178 [172]]
Extent of liability
Unless otherwise provided, the liability of the
State Insurance Fund under this Title shall be
exclusive and in place of all other liabilities of
the employer to the employee, his dependents
or anyone otherwise entitled to receive
damages on behalf of the employee or his
dependents. The payment of compensation
under this Title shall not bar the recovery of
benefits as provided for in Section 699 of the
Revised Administrative Code, Republic Act
Numbered Eleven hundred sixty-one, as
amended, Republic Act Numbered Forty-eight
hundred sixty-four as amended, and other laws
whose benefits are administered by the
System or by other agencies of the government
[Art. 179 [173]].
Employer’s contributions
a. Under such regulations as the System may
prescribe, beginning as of the last day of
the month when an employee’s
compulsory coverage takes effect and
every month thereafter during his
employment, his employer shall prepare to
Page 214 of 262
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remit to the System a contribution
equivalent to one percent of his monthly
salary credit.
b. The rate of contribution shall be reviewed
periodically and subject to the limitations
herein provided, may be revised as the
experience in risk, cost of administration
and actual or anticipated as well as
unexpected losses, may require.
c. Contributions under this Title shall be paid
in their entirety by the employer, and any
contract or device for the deductions of any
portion thereof from the wages or salaries
of the employees shall be null and void.
d. When a covered employee dies, becomes
disabled or is separated from employment,
his employer’s obligation to pay the
monthly contribution arising from that
employment shall cease at the end of the
month of contingency and during such
months that he is not receiving wages or
salary [Art. 189[183]].
Medical benefits
Immediately after an employee contracts
sickness or sustains an injury, he shall be
provided by the System during the subsequent
period of his disability with such medical
services and appliances as the nature of his
sickness or injury and progress of his recovery
may require, subject to the expense limitation
prescribed by the Commission [Art. 191[185]]
Rehabilitation services
The System shall establish:
a. A continuing program, for the
rehabilitation of injured and handicapped
employees who shall be entitled to
rehabilitation services, which shall consist
of medical, surgical or hospital treatment,
including appliances to help them become
physically independent.
b. Centers equipped and staffed to provide a
balanced program of remedial treatment,
vocational assessment and preparation
designed to meet the individual needs of
each handicapped employee to restore him
to suitable employment, including
assistance to help each rehabilitee to
develop his mental, vocational or social
potential. [Art. 196 [190]]
U.P. LAW BOC LABOR 2 LABOR LAW

3. Philippine Overseas Employment LIABILITIES OF EMPLOYER IN CASE OF

Administration-Standard WORK-RELATED INJURY OR ILLNESS
Employment Contract
1. Medical expenses
As part of a seafarer's deployment for overseas
If the injury or illness requires medical and/or
work, he/she and the vessel owner or its
dental treatment in a foreign port, the employer
representative local manning agency are
shall be liable for the full cost of such medical,
required to execute the POEA-SEC.
Containing the standard terms and conditions serious dental, surgical and hospital treatment
as well as board and lodging until the seafarer
of seafarers' employment, the POEA-SEC is
is declared fit to work or to be repatriated.
deemed included in their contracts of
employment in foreign ocean-going vessels.
However, if after repatriation, the seafarer still
[Sharpe Sea Personnel Inc. v. Mabunay, G.R.
No. 206113 (2017)] requires medical attention arising from said
injury or illness, he/she shall be so provided at
cost to the employer until such time he/she is
a. Compensation and benefits for
declared fit or the degree of his/her disability
injury or illness
has been established by the company-
designated physician. [Sec. 20, A.2, POEA-
There are two requisites for a seafarer’s injury
or disability to be considered compensable: (1) SEC]
“the injury or illness must be work-related;” and
2. Sickness allowance
(2) “the work-related injury or illness must have
existed during the term of the seafarer's
employment contract.” [Magsaysay Maritime The seafarer shall also receive sickness
allowance from his/her employer in an amount
Services v. Laurel, 707 Phil. 210 (2013)]
equivalent to his/her basic wage computed
from the time he/she signed off until he is
Work-related injury or illness
declared fit to work, or the degree of disability
For an illness to be compensable, "it is not
has been assessed by the company-
necessary that the nature of the employment
be the sole and only reason for the illness designated physician.
suffered by the seafarer."
The period within the seafarer shall be entitled
to sickness allowance shall not exceed 120
It is enough that there is "a reasonable linkage
days. Payment of the sickness allowance shall
between the disease suffered by the employee
and his work to lead a rational mind to conclude be made on a regular basis, but not less than
once a month. [Sec. 20. A.3, POEA-SEC]
that his work may have contributed to the
establishment or, at the very least, aggravation
3. Cost of medicines, mode of
of any pre-existing condition he might have
transportation and accommodation
had.” [Madridejos v. NYK-FIL Ship
Management, Inc., 810 Phil. 704 (2017)]
The seafarer shall be entitled to reimbursement
of the cost of medicines prescribed by the
See Sec. 32 of POEA-SEC for the schedule of
disability or impediment for injuries suffered company-designated physician.
and diseases including occupational diseases
of illness contracted in the course of work. In case treatment of the seafarer is on an out-
patient basis as determined by the company-
designated physician, the company shall
Those illnesses not listed in Sec. 32 are
disputably presumed as work-related. [Sec. 20, approve the appropriate mode of transportation
and accommodation.
A.4, POEA-SEC]

Page 215 of 262

U.P. LAW BOC LABOR 2
The reasonable cost of actual traveling
expenses and/or accommodation shall be paid
subject to liquidation and submission of official
receipts and/or proof of expenses. [Sec. 20,
A.3, POEA-SEC]
Mandatory post-employment medical
examination; strict compliance
General rule: The seafarer shall submit
himself/herself to a post-medical examination
by a company-designated physician within
three working days upon his return.
Exceptions:
a. When the seafarer is physically
incapacitated to do so. In which case, a
written notice to the agency within the
same period is deemed as compliance.
[Sec. 20, A.3, POEA-SEC]
b. When the non-compliance with the
mandatory post-employment medical
examination was “not due to the seafarer’s
fault but to the inadvertence or deliberate
refusal of the [employer].” [Interorient
Maritime Enterprises, Inc. v. Remo, 636
Phil. 240 (2010)]
Rationale
The rationale for the rule [on the mandatory
post-employment medical examination] is that
reporting the illness or injury within three days
from repatriation fairly makes it easier for a
physician to determine the cause of the illness
or injury. To ignore the rule might set a
precedent with negative repercussions, like
opening floodgates to a limitless number of
seafarers claiming disability benefits. [Wallem
Maritime Services, Inc. v. Tanawan, 693 Phil.
416 (2012)]
Third Doctor Opinion Rule
If a doctor appointed by the seafarer disagrees
with the assessment [of the company-
designated physician], a third doctor may be
agreed jointly between the employer and the
seafarer.
The third doctor’s decision shall be final and
binding on both parties. [Sec. 20, A.4, POEA-
SEC]
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Rationale: It is understandable that a company-
designated physician is more positive than that
of a physician of the seafarer's choice. It is on
this account that a seafarer is given the option
by the POEA Standard Employment Contract
to seek a second opinion from his preferred
physician [Abante v. KJGS Fleet Management
Manila, G.R. No. 182430 (2009)]
Mandatory reporting requirement
In the course of the treatment, the seafarer
shall also report regularly to the company-
designated physician specifically on the dates
as prescribed by the company-designated
physician and agreed to by the seafarer.
Failure of the seafarer to comply with the
mandatory reporting requirement shall result in
his forfeiture of the right to claim the above
benefits. [Sec. 20, A.3, POEA-SEC]
GUIDELINES FOR THE CLAIM OF
PERMANENT TOTAL DISABILITY
BENEFITS
The employer must also compensate the
seafarer for his/her permanent total disability
as finally determined by the company-
designated physician.
The following guidelines shall govern
seafarers' claims for permanent and total
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 him.
2. If the company-designated physician fails
to give his/her 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/her 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
U.P. LAW BOC LABOR 2
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. v. Rapiz, G.R. No.
218871 (2017)]
b. Compensation and benefits for
death
In case of work-related death of the seafarer,
during the term of his contract, the employer
shall pay his/her beneficiaries the Philippine
currency equivalent to the amount of Fifty
Thousand US dollars (US$50,000) and an
additional amount of Seven Thousand US
dollars (US$7,000) to each child under the age
of twenty-one (21) but not exceeding four (4)
children, at the exchange rate prevailing during
the time of payment. [Sec. 20, B.1, POEA-
SEC]
Requisites
For death to be compensable, the claimant
bears the burden to establish that:
1. The seafarer died during the duration of
his/her contract, and
2. His/her illness was work-related. [Sec. 20,
B.1, POEA-SEC]
Exception: When the seafarer’s death
occurred after the termination of his/her
contract after medical repatriation repatriation
on account of a work-related injury or illness
Rationale: The 2000 POEA-SEC must be
liberally construed, as impelled by the plight of
the bereaved heirs who stand to be deprived of
a just and reasonable compensation for the
seafarer’s death, notwithstanding its evident
work-connection. [Racelis v. United Philippine
Lines, 746 Phil. 758 (2014)]
When compensation payable is double
Where death is caused by warlike activity while
sailing within a declared war zone or war risk
area, the compensation payable shall be
doubled. [Sec. 20, B.2, POEA-SEC]
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Other liabilities of the employer when the
seafarer dies as a result of work-related injury
or illness during the term of employment are as
follows:
a. The employer shall pay the deceased’s
beneficiary all outstanding obligations due
the seafarer under this Contract.
b. The employer shall transport the remains
and personal effects of the seafarer to the
Philippines at employer’s expense, except
if the death occurred in a port where local
government laws or regulations do not
permit the transport of such remains. In
case death occurs at sea, the disposition of
the remains shall be handled or dealt with
in accordance with the master’s best
judgment. In all cases, the
employer/master shall communicate with
the manning agency to advise for
disposition of seafarer’s remains.
c. The employer shall pay the beneficiaries of
the seafarer the Philippine currency
equivalent to the amount of One Thousand
US dollars (US$1,000) for burial expenses
at the exchange rate prevailing during the
time of payment. [Sec. 20, B.4, POEA-
SEC]
When compensation is not payable (applies
to both disability and death benefits)
No compensation and benefits shall be
payable in respect of any injury, incapacity,
disability or death of the seafarer resulting from
his willful or criminal act or intentional breach of
his duties, provided however, that the employer
can prove that such injury, incapacity, disability
or death is directly attributable to the seafarer.
[Sec. 20, D, POEA-SEC]
Prescription of claims
All claims arising from this contract shall be
made within three (3) years from the date the
cause of action arises, otherwise the same
shall be barred. [Sec. 30, POEA-SEC]
U.P. LAW BOC LABOR 2
E. SOLO PARENTS
[RA 8972: Solo Parents’ Welfare Act]
See also III. C. 2. a. and III. E. 7. for work
entitlements of solo parents
Non work-related support for solo parents
1. Comprehensive Package of Social
Development and Welfare Services [Sec.
5]
2. Educational Benefits [Sec. 9]
3. Housing Benefits [Sec. 10]
4. Medical Assistance [Sec. 11]
Criteria for Support
1. Solo parent,
2. Income in the place of domicile falls below
the poverty threshold as set by the NEDA,
and
3. Assessed by the DSWD.
Note: If the solo parent’s income is above the
poverty threshold, he shall still enjoy the
benefits of Flexible Work Schedule, Protection
against Work Discrimination, and Parental
Leave [Sec. 4].
Comprehensive Package of Social
Development and Welfare Services
The package will initially include:
a. Livelihood development services, which
include training on livelihood skills, basic
business management, value orientation
and the provision of seed capital or job
placement;
b. Counseling services, which include
individual, peer group or family counseling.
These will focus on the resolution of
personal relationship and role conflicts;
c. Parent effectiveness services which
include the provision and expansion of
knowledge and skills of the solo parent on
early childhood development, behavior
management, health care and proper
nutrition, rights and duties of parents and
children;
Page 218 of 262
LABOR LAW
d. Critical incidence stress debriefing, which
includes preventive stress management
strategy designed to assist solo parents in
coping with crisis situations and cases of
abuse;
e. Special projects for individuals in need of
protection which include temporary shelter,
counseling, legal assistance, medical care,
self-concept or ego-building, crisis
management and spiritual enrichment.
[Sec. 15, IRR]
Educational benefits
The DepEd, CHED, and TESDA shall provide
the following benefits and privileges:
1. Scholarship programs for qualified solo
parents and their children in institutions of
basic, tertiary, and technical/skills
education;
2. Non-formal education programs
appropriate for solo parents and their
children. [Sec. 22, IRR]
Housing benefits
Solo parents who meet the eligibility criteria for
housing assistance under R.A. No. 7279
(Urban Development and Housing Act of 1992)
and other related rules and regulations of
participating housing agencies shall be
provided with liberal terms of payment on
government low-cost housing projects, in
accordance with housing law provisions,
prioritizing applicants below the poverty line as
declared by the NSCB. [Sec. 23, IRR]
The National Housing Authority shall make
available housing units to solo parents in its
housing projects, subject to existing disposition
policies, or may refer them to other housing
projects, as appropriate, provided:
a. The identified solo parent must be eligible
for assistance under the provisions of this
Act;
b. Solo parents applying for housing benefits
must meet the qualification criteria for
housing assistance under Republic Act
7279, or the Urban Development and
Housing Act (UDHA) and other NHA
eligibility criteria under existing policies,
rules and regulations; and
U.P. LAW BOC LABOR 2
c. Eligible solo parents shall file their
application for housing unit directly with the
concerned NHA Project Offices. [Sec. 24,
IRR]
Medical Assistance
The DOH shall develop a comprehensive
health care program for solo parents and their
children. [Sec. 25, IRR]
Health/medical services shall be made
available at all times, in all levels of health care
delivery system as mentioned in the previous
section. [Sec. 26, IRR]
F. KASAMBAHAY
[RA 10361: Batas Kasambahay or Domestic
Workers Act]
See III. E. 5. Kasambahays
G. AGRARIAN RELATIONS
1. Concept of Agrarian Reform
Declaration of Policy
The agrarian reform program is founded on the
right of farmers and regular farmworkers, who
are landless, to own directly or collectively the
lands they till or, in the case of other farm
workers, to receive a just share of the fruits
thereof.
To this end, the State shall encourage and
undertake the just distribution of all agricultural
lands, subject to the payment of just
compensation. [Sec. 2, RA 6657,
Comprehensive Agrarian Reform Law]
Definition
Agrarian Reform – The redistribution of lands,
regardless of crops or fruits produced to
farmers and regular farmworkers who are
landless, irrespective of tenurial arrangement,
including:
Page 219 of 262
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1. The totality of factors and support services
designed to lift the economic status of the
beneficiaries; and
2. All other arrangements alternative to the
physical redistribution of lands, such as:
a. Production or profit-sharing,
b. Labor administration, and
c. The distribution of shares of stocks,
which will allow beneficiaries to receive
a just share of the fruits of the lands
they work. [Sec. 3(a), RA 6657]
2. Existence and Concept of
Agricultural Tenancy
Agricultural tenancy – The physical
possession by a person of land devoted to
agriculture belonging to, or legally possessed
by another:
1. For the purpose of production through the
labor of the former and of the members of
his immediate farm household
2. In consideration of which the former agrees
to:
a. Share the harvest with the latter; OR
b. Pay a price certain, either in produce or
in money, or both. [Sec. 3, RA 1199,
Agricultural Tenancy Act]
Tenancy relationship defined [Sec. 6,
RA1199]
Tenancy relationship is a juridical tie which
arises between a landholder and a tenant,
wherein:
a. They agree, expressly or impliedly, to
undertake jointly the cultivation of land
belonging to the former, either under the
share tenancy or leasehold tenancy
system;
b. The tenant acquires the right to continue
working on and cultivating the land, until
and unless he is dispossessed of his
holdings for any of the just causes, or the
relationship is terminated in accordance
with [the Agricultural Tenancy Act].
Requisites for the existence of agricultural
tenancy relationship
1. The parties are landowner and the tenant
or agricultural lessee;
U.P. LAW BOC LABOR 2
2. The subject of the relationship is
agricultural land;
3. There is mutual consent to the tenancy
between the parties;
4. The purpose of the relationship is
agricultural production;
5. There is personal cultivation by the tenant
or agricultural lessee; and
6. There is a sharing of harvests between the
parties. [Fuentes v. Caguimbal, G.R. No.
150305 (2007)]
Establishment of tenancy relationship [Sec.
7, RA 1199]
Tenancy relationships may be established
either verbally or in writing, expressly or
impliedly. Once such relationship is
established, the tenant shall be entitled to
security of tenure.
Types of agricultural tenancy [Sec. 4, RA
1199, as amended by RA 2263]
1. Share tenancy exists when
a. Two persons agree on a joint
undertaking for agricultural production;
b. Wherein one party furnishes land and
the other his labor;
c. With either or both contributing any one
or several of the items of production;
d. The tenant cultivating the land
personally with the aid of labor
available to members of his immediate
farm household;
e. And the produce thereof to be divided
between the landholder and the tenant
in proportion to their respective
contributions.
2. Leasehold tenancy exists when
a. A person, who either personally or with
the aid of labor available from the
members of his immediate farm
household;
b. Undertakes to cultivate a piece of
agricultural land susceptible of
cultivation by a single person, together
with members of his immediate farm
household;
c. Belonging to or legally possessed by,
another, in consideration of a fixed
amount in money or in produce or in
both.
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3. Rights of Agricultural Tenants
Rights common to both share and
leasehold tenants [Sec. 22, RA 1199, as
amended by RA 2263]
The tenant shall:
1. Be free to work elsewhere whenever the
nature of his farm obligation;
2. Have the right to provide any of the
contributions for production, aside from his
labor, whenever he can do so adequately
and on time subject to the provisions of
Sec. 14 of this Act
Sec. 14, RA 1199, as amended by RA 2263
– The tenant shall have the right to change
the tenancy contract from one of share
tenancy to leasehold tenancy and vice versa
and from one crop sharing arrangement to
another of the share tenancy. If the share
tenancy contract is in writing and is duly
registered, the right to change from one crop
sharing arrangement to another or from one
tenancy system or another may be exercised
at least one month before the beginning of
the next agricultural year after the expiration
of the period of the contract, the right may be
exercised at least one month before the
agricultural year when the change shall be
effected.
3. Have the right to demand for a home lot
suitable for dwelling with an area:
a. not more than 3% of the area of his
landholding; provided
b. it does not exceed 1000 sq. m.; and
that
c. it shall be located at a convenient and
suitable place within the land of the
landholder to be designated by the
latter where the tenant shall construct
his dwelling and may raise vegetables,
poultry, pigs and other animals and
engage in minor industries, the
products of which shall accrue to the
tenant exclusively.
d. The tenant’s dwelling shall not be
removed from the lot already assigned
to him by the landholder, except:
i. If the landholder designates
another site for the tenant’s home
U.P. LAW BOC LABOR 2
lot and the tenant agrees to the
transfer [Sec. 26, RA1199, as
amended by RA2263]
ii. There is a severance of the
tenancy relationship
iii. The tenant is ejected for cause
In any case, the tenant shall only be removed
after the expiration of 45 days following such
severance of relationship or dismissal for
cause.
Specific rights of rice share tenants [Sec.
36, RA 1199]
The rice share tenant shall have the right to:
1. Determine when to scatter the seeds, to
transplant the seedlings, and to reap the
harvest, provided they shall be in
accordance with proven farm practices and
after due notice to the landholder.
2. Choose the thresher which shall thresh the
harvest whenever it is the best available in
the locality and the best suited to the
landholder’s and tenant’s needs and
provided that the rate charged by the
owner of other threshers under similar
circumstances.
If there are multiple tenants, the choice of
the majority of the tenants shall prevail.
If the landholder is the owner of a thresher
and is ready and willing to grant equal or
lower rates under the same conditions, the
use of the landholder’s thresher shall be
given preference.
3. Apply appropriate pest, insect, disease and
rodent control measures whenever in his
judgment such action is necessary.
4. Apply fertilizer of the kind or kinds shown
by proven farm practices to be adapted to
the requirements of the land, provided the
landholder has not exercised his right to
require the use of such fertilizer.
Specific rights of leasehold tenants [Sec.
43, RA 1199]
The tenant-lessee shall have the right to:
1. Enter the premises of the land, and to the
adequate and peaceful enjoyment thereof;
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2. Work the land according to his best
judgment, provided this manner and
method of cultivation and harvest are in
accordance with proven farm practices.
Upon termination of the relationship, have ½ of
the value of the improvements made by him,
provided they are reasonable and adequate to
the purposes of the lease.
4. Concept of Farmworkers
A farmworker is a natural person who renders
services for value as an employee or laborer in
an agricultural enterprise or farm regardless of
whether his compensation is paid on a daily,
weekly, monthly or “pakyaw” basis.
The term includes an individual whose work
has ceased as a consequence of, or in
connection with, a pending agrarian dispute
and who has not obtained a substantially
equivalent and regular farm employment. [Sec.
3(g), RA 6657, Comprehensive Agrarian
Reform Law]
Types of farmworkers
1. Regular Farmworker - a natural person
who is employed on a permanent basis by
an agricultural enterprise or farm. [Sec.
3(h), RA 6657]
2. Seasonal Farmworker - a natural person
who is employed on a recurrent, periodic or
intermittent basis by an agricultural
enterprise or farm, whether as a permanent
or a non-permanent laborer, such as
“dumaan,” “sacada,” and the like. [Sec. 3(i),
RA 6657]
3. Other Farmworker - a farmworker who
does not fall under Sec. 3(g) (farmworker),
Sec. 3(h) (regular farmworker), and Sec.
3(i) (seasonal farmworker). [Sec. 3(j), RA
6657]
Entitlements of different farmworkers under
the Constitution
Sec. 4, Art. XIII, 1987 Constitution – The
State shall, by law, undertake an agrarian
reform program founded on the right of
farmers and regular farm workers, who are
U.P. LAW BOC LABOR 2
landless, to own directly or collectively the
lands they till on, or in the case of other farm
workers, to receive a just share of the fruits
thereof.
The 1987 Constitution distinguishes between
regular farmworkers and other farmworkers.
1. Farmers and regular farmworkers have the
right to own directly or collectively the lands
they till on.
2. Other farmworkers have the right to receive
a just share of the fruits thereof.
Seasonal farm workers have no
constitutional right to own land
Seasonal farm workers, not having a
constitutional right to own land, do not have a
legal or actual and substantial interest in the
land subject of agrarian reform. They may not
be allowed to intervene in the case concerning
the land. [Fortich v. Corona, G.R. No. 131457
(1998)]
H. UNIVERSAL HEALTH CARE
[RA 11223]
1. Policy
It is the policy of the State to promote and
protect the right to health of all Filipinos and
instill health consciousness among them.
Towards this end, the State shall adopt:
a. An integrated and comprehensive
approach to ensure that all Filipinos are
health literate, provided with healthy living
conditions, and protected from hazards
and risks that could affect their health;
b. A health care model that provides all
Filipinos access to a comprehensive set of
quality and cost-effective, promotive,
preventive, curative, rehabilitative and
palliative health services without causing
financial hardship, and prioritizes the
needs of the population who cannot afford
such services;
c. A framework that fosters a whole-of-
system, whole-of-government, and whole-
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of-society approach in the development,
implementation, monitoring, and
evaluation of health policies, programs and
plans; and
d. A people-oriented approach for the delivery
of health services that is centered on
people's needs and well-being, and
cognizant of the differences in culture,
values, and beliefs. [Sec. 2]
The Universal Health Care Act seeks to:
a. Progressively realize universal health care
in the country through a systemic approach
and clear delineation of roles of key
agencies and stakeholders towards better
performance in the health system; and
b. Ensure that all Filipinos are guaranteed
equitable access to quality and affordable
health care goods and services, and
protected against financial risk. [Sec. 3]
2. Coverage
Population coverage [Sec. 5]
Every Filipino citizen shall be automatically
included into the National Health Insurance
Program.
Service coverage [Sec. 6]
Every Filipino shall be granted immediate
eligibility and access to preventive, promotive,
curative, rehabilitative, and palliative care for
medical, dental, mental and emergency health
services, delivered either as population-based
or individual-based health services.
Provided, That the goods and services to be
included shall be determined through a fair and
transparent Health Technology Assessment
(HTA) Process. [Sec. 6(a)]
HTA - The systematic evaluation of properties,
effects, or impact of health-related
technologies, devices, medicines, vaccines,
procedures and all other health-related
systems developed to solve a health problem
and improve quality of lives and health
outcomes. [Sec. 4(n)]
Every Filipino shall register with a public or
private primary care provider of choice. The
U.P. LAW BOC LABOR 2
DOH shall promulgate the guidelines on the
licensing of primary care providers and the
registration of every Filipino to a primary care
provider. [Sec. 6(d)]
Financial coverage [Sec. 7]
Population-based health services shall be
financed by the National Government through
the DOH and provided free of charge at point
of service for all Filipinos. [Sec. 7(a)]
Population-based health service - of the status of appointment, whose
interventions such as health promotion,
disease surveillance, and vector control, which
have population groups as recipients. [Sec.
4(p)]
Individual-based health services shall be
financed primarily through prepayment
mechanisms such as social health insurance,
private health insurance, and HMO plans to
ensure predictability of health expenditures.
[Sec. 7(b)]
Individual-based health services - services
which can be accessed within a health facility
or remotely that can be definitively traced back
to 1 recipient, has limited effect at a population
level and does not alter the underlying cause of
illness such as ambulatory and inpatient care,
medicines, laboratory tests and procedures,
among others [Sec. 4(p)]
3. National Health Insurance
Program
Membership into the NHIP falls under 2
categories [Sec. 8]
1. Direct contributors - Those who have the
capacity to pay premiums, are gainfully
employed and are bound by an employer-
employee relationship, or are self-earning,
professional practitioners, migrant workers,
including their qualified dependents, and
lifetime members [Sec. 4(f)]
2. Indirect contributors - All others not
included as direct contributors, as well as
their qualified dependents, whose premium
shall be subsidized by the national
government including those who are
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subsidized as a result of special laws [Sec.
4(o)]
Direct contributors
1. Employees with formal employment
characterized by the existence of an
employer-employee relationship, which
include workers in the government and
private sector, whether regular, casual, or
contractual, are occupying either an
elective or appointive position, regardless
premium contribution payments are equally
shared by the employee and the employer;
2. Kasambahays, as defined in the
Kasambahay Law;
3. All other workers who are not covered by
formal contracts or agreements or who
have no employee-employer relationship
and whose premium contributions are self-
paid, and with capacity to pay premiums,
such as the following:
a. Self-earning individuals; and
b. Professional practitioners;
4. Overseas Filipino Workers
5. Filipinos living abroad;
6. Filipinos with dual citizenship;
7. Lifetime members as defined in RA 10606
(National Health Insurance Act); and
8. All Filipinos aged 21 years and above who
have the capacity to pay premiums. [Sec.
8, IRR]
Indirect contributors
1. Indigents identified by the DSWD;
2. Beneficiaries of Pantawid Pamilyang
Pilipino Program/Modified Conditional
Cash Transfer (4Ps/MCCT);
3. Senior citizens who are not currently
covered by the Program;
4. Persons with disability, as defined in RA
10754 (An Act Expanding the Benefits and
Privileges of Persons with Disability);
5. All Filipinos aged 21 years old and above
without the capacity to pay premiums;
6. Sangguniang Kabataan officials, as
defined in RA 10742 (Sangguniang
Kabataan Reform Act); and
7. Those previously identified at point-of-
service (POS) or during registration,
members previously sponsored by LGUs
U.P. LAW BOC LABOR 2
and those who are not yet in the PhilHealth
database and are financially incapable to
pay premiums. [Sec. 8, IRR]
Dependents
1. Legal spouse/s who is/are not an active
member;
2. Unmarried and unemployed legitimate,
illegitimate children, and legally adopted or
stepchildren below twenty-one (21) years
of age;
3. Foster children as defined in RA 10165
(Foster Care Act of 2012); and
4. Parents who are sixty (60) years old and
above, not otherwise an enrolled member.
[Sec. 8, IRR]
Benefits [Sec. 9]
Every member shall be granted immediate
eligibility for health benefit package under the
NHIP under the following rules:
1. The PhilHealth ID Card shall not be
required in the availing of any health
service.
2. No co-payment shall be charged for
services rendered in basic or ward
accommodation.
3. Co-payments and co-insurance for
amenities in public hospitals shall be
regulated by the DOH and PhilHealth
Co-payment - a flat fee or predetermined
rate paid at point of service [Sec. 4(e)]
Co-insurance - a percentage of a medical
charge that is paid by the insured, with the
rest paid by the health insurance plan [Sec.
4(d)]
4. The current PhilHealth package for
members shall not be reduced.
PhilHealth shall provide additional NHIP
benefits for direct contributors, where
applicable: Provided,
1. Failure to pay premiums shall not prevent
the enjoyment of NHIP benefits.
2. Employers and self-employed direct
contributors shall be required to pay all
missed contributions with an interest,
compounded monthly, of at least 3% for
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employers and not exceeding 1.5% for self-
earning, professional practitioners, and
migrant workers.
VIII. JURISDICTION AND
REMEDIES
A. LABOR ARBITER
1. Jurisdiction of the Labor Arbiter
as distinguished from the
Regional Director
JURISDICTION OF THE LABOR ARBITER
Except as otherwise provided under the Code,
the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide:
a. Unfair labor practices cases;
b. Termination disputes;
c. Cases that workers may file involving
wages, rates of pay, hours of work and
other terms and conditions of employment,
if accompanied with a claim for
reinstatement;
d. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
e. Cases arising from any violation of Art.
[279] of this Code, including questions
involving the legality of strikes and
lockouts;
f. Except claims for Employees
Compensation, Social Security, Medicare
[Philhealth] and maternity benefits, all other
claims, arising from employer-employee
relations, including those of persons in
domestic or household service, involving
an amount exceeding P5,000 regardless of
whether accompanied with a claim for
reinstatement. [Art. 224]
g. Money claims arising out of employer-
employee relationship or by virtue of any
law or contract, involving claims for actual,
moral, exemplary and other forms of
damages, as well as employment
termination of OFWs;
U.P. LAW BOC LABOR 2
h. Wage distortion disputes in unorganized
establishments not voluntarily settled by
the parties. [Art. 124]
i. Enforcement of compromise agreements
when there is non-compliance by any of the
parties. [Art. 233]
j. Other cases as may be provided by law.
Requisites of LA’s jurisdiction over Money
Claims
1. Money claims arose from ER-EE relations;
Note: If not, regular courts have jurisdiction
2. Money claims arose from law or contracts
other than a CBA.
Note: If not, Voluntary Arbitrator has
jurisdiction
LABOR ARBITER v. REGIONAL DIRECTOR
[Art. 129]
A money claim arising from employer-
employee relations, except SSS,
ECC/Medicare [Philhealth] claims, is within the
jurisdiction of a Labor Arbiter if:
a. The claim, regardless of amount, is
accompanied with a claim of reinstatement;
or
b. The claim exceeds P5,000, whether or not
there is a claim for reinstatement.
The Regional Director has jurisdiction if:
a. Money claim arose out of employer-
employee relationships;
b. Money claim is NOT accompanied by a
claim for reinstatement; AND
c. Money claim does not exceed P5,000,
whether or not claim arose from ER-EE
relationships.
PROCEDURE BEFORE LABOR ARBITER
Where to File [Sec. 1, Rule IV, 2011 NLRC
Rules of Procedure]
All cases which Labor Arbiters have authority
to hear and decide may be filed in the Regional
Arbitration Branch (RAB) having jurisdiction
over the workplace of the complainant or
petitioner.
a. Workplace – place or locality where the
employee is regularly assigned at the time
the cause of action arose. It shall include
the place where the employee is supposed
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to report back after a temporary detail,
assignment, or travel.
b. In the case of field employees, ambulant or
itinerant workers, their workplace is (a)
where they are regularly assigned or (b)
where they are supposed to regularly
receive their salaries and wages or work
instructions from, and report the results of
their assignment to their employers.
NATURE OF THE PROCEEDING
Proceedings before the LA are non-litigious.
The Labor Arbiter is not bound by the technical
rules of procedure.
The Labor Arbiter shall use all reasonable
means to ascertain the facts in each speedily
and objectively. [Art. 227]
2. Requirements to perfect appeal to
National Labor Relations
Commission
Period of Appeal
Labor Arbiter to NLRC: Decisions, awards, or
orders of the [LA] shall be final and executory
unless appealed to the [NLRC] by any or both
parties within 10 calendar days from receipt
[thereof]. [Art. 229]
Note: If the last day of the reglementary period
falls on a Sunday or a holiday, the last day shall
be the next working day.
Grounds of Appeal [Art. 229]
a. If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter
or Regional Director;
b. If the decision, resolution or order was
secured through fraud or coercion,
including graft and corruption;
c. If made purely on questions of law; and/or
d. If serious errors in the findings of fact are
raised which, if not corrected, would cause
grave or irreparable injury to the appellant.
When Appeal is Perfected
Judgment involving a monetary award
An appeal by the employer may be perfected
only upon the posting of a cash or surety bond
U.P. LAW BOC LABOR 2
issued by a reputable bonding company duly
accredited by the Commission in the amount
equivalent to the monetary award in the
judgment appealed from. [Art. 229]
It is clear from the NLRC Rules of Procedure
that appeals must be verified and certified
against forum-shopping by the parties-in-
interest themselves. [Antonio B. Salenga, et al.
v. CA, G.R. No. 174941 (2012)]
Note: Decisions of the Labor Arbiter are
appealable to the NLRC. Decisions by the
NLRC are appealable to the CA via Rule 65.
[St. Martin’s Funeral Homes v. NLRC, 295
SCRA 494 (1998)]
Memorandum of Appeal
In all cases, the appellant shall furnish a copy
of the memorandum of appeal to the other
party who shall file an answer not later than ten
(10) calendar days from receipt thereof. [Art.
229]
3. Reinstatement and/or execution
pending appeal
Reinstatement Pending Appeal and Effect
of NLRC reversal of Labor Arbiter’s order of
reinstatement
In any event, the decision of the Labor Arbiter
reinstating a dismissed or separated
employee, insofar as the reinstatement aspect
is concerned, shall immediately be
executory, even pending appeal.
The employee shall either be:
a. Admitted back to work under the same
terms and conditions prevailing prior to his
dismissal or separation; or
b. Merely reinstated in the payroll, at the
option of the employer.
The posting of a bond by the employer shall not
stay the execution for reinstatement provided
herein. [Art. 229]
Reversal of the order of reinstatement of
the Labor Arbiter
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During the period of appeal until reversal by the
higher court, it is obligatory on the part of the
employer to:
1. Reinstate, and
2. Pay the wages of the dismissed employee.
If the employee has been reinstated during the
appeal period and such reinstatement order is
reversed with finality, the employee is NOT
required to reimburse whatever salary he
received. He is entitled to such especially if he
actually rendered services during the period.
[Garcia v. Philippine Airlines, Inc., G.R. No.
164856 (2009)]
B. NATIONAL LABOR
RELATIONS COMMISSION
1. Jurisdiction/Powers
NLRC en banc
a. To promulgate rules and regulations
governing the hearing and disposition of
cases 

b. To formulate policies affecting its
administration and operations 

c. To allow cases within the jurisdiction of any
division to be heard and decided by
another division 

d. To recommend appointment of a Labor
Arbiter 

NLRC in divisions (8 divisions with 3
commissioners each)
a. Exclusive appellate jurisdiction from
decisions of LA 
(within respective territorial
jurisdiction) 

b. Jurisdiction over petitions for injunction or
temporary restraining order under Art.
225(e)
c. Certified cases: “national interest” labor
disputes 
certified (or referred) to the
Commission by the SOLE 
for compulsory
arbitration 
under Art. 278 (g)
Exclusive Appellate Jurisdiction: over all
cases decided by Labor Arbiters [Art. 224(b)]
and the DOLE Regional Directors under Art.
129.
U.P. LAW BOC LABOR 2
2. Remedies
Appeal: Appeal from decisions of the NLRC
after denial of Motion for Reconsideration
appealed via Rule 65 to CA then Rule 45 to the
SC. [St. Martin’s Funeral Homes v. NLRC, 295
SCRA 494 (1998)]
Requisites for Perfection of Appeal to the
Court of Appeals [Rule VI, 2011 NLRC Rules
of Procedure]
1. The appeal shall be:
a. Filed within the reglementary period;
b. Verified by the appellant himself in
accordance with Sec. 4, Rule 7 of the
Rules of Court;
c. In the form of a memorandum of appeal
which shall state the grounds relied
upon and the arguments in support
thereof, the relief prayed for, and with a
statement of the date the appellant
received the appealed decision,
resolution or order;
d. In three (3) legibly typewritten or
printed copies; and
e. Accompanied by (a) proof of payment
of the required appeal fee; (b) posting
of a cash or surety bond as provided in
Sec. 6 of the NLRC Rules; and (c) proof
of service upon the other parties.
2. A mere notice of appeal without complying
with the other requisites aforestated shall
not stop the running of the period for
perfecting an appeal.
3. The appellee may file with the Regional
Arbitration Branch or Regional Office
where the appeal was filed, his answer or
reply to appellant’s memorandum of
appeal, not later than 10 calendar days
from receipt thereof.
a. Failure on the part of the appellee who
was properly furnished with a copy of
the appeal to file his answer or reply
within the said period may be
construed as a waiver on his part to file
the same.
4. Subject to the provisions of Art. [225] of the
Labor Code, once the appeal is perfected
in accordance with these Rules, the
Commission shall limit itself to reviewing
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and deciding only the specific issues that
were elevated on appeal.
EXTRAORDINARY REMEDY
Verified Petition: A party aggrieved by any
order or resolution of the Labor Arbiter,
including a writ of execution and others issued
during execution proceedings, may file a
verified petition to annul or modify the same.
The petition may be accompanied by an
application for the issuance of a temporary
restraining order and/or writ of preliminary or
permanent injunction:
a. To enjoin the Labor Arbiter, or any person
acting under his/her authority
b. To desist from enforcing said resolution,
order or writ. [Rule XII, Sec. 1, 2011 NLRC
Rules of Procedure, as amended by En
Banc Resolution No. 07-14]
CERTIFIED CASES
Definition
Certified labor disputes are cases certified to
the Commission for compulsory arbitration
under Art. 278(g) of the Labor Code. [Sec. 2,
The 2011 NLRC Rules and Procedures]
Power of the Secretary of Labor to Certify
Cases
When, in his opinion, there exists a labor
dispute causing or likely to cause a strike or
lockout in an industry indispensable to the
national interest, the Secretary of Labor and
Employment may:
1. Assume jurisdiction over the dispute; and
2. Decide it or certify the same to the
Commission for compulsory arbitration.
Such assumption or certification shall have the
effect of automatically enjoining the intended or
impending strike or lockout as specified in the
assumption or certification order. [Art. 278(g)]
Function of the NLRC
When sitting in a compulsory arbitration
certified to by the Secretary of Labor, the NLRC
is tasked:
a. To implement the order of the Secretary as
an administrative body, not as a judicial
court
U.P. LAW BOC LABOR 2
b. To formulate the terms and conditions of
the CBA, staying within the scope of the
order
c. To act within the earliest time possible and
with the end in view that its action would not
only serve the interests of the parties
alone, but would also have favorable
implications to the community and to the
economy as a whole. [Art. 278(g); Union of
Filipino Employees v. NLRC, G.R. No.
91025 (1990)]
Effects of Certification
1. Upon certification, the intended or
impending strike or lockout is automatically
enjoined, notwithstanding:
a. The filing of any motion for
reconsideration of the certification
order;
b. The non-resolution of any such motion,
which may have been duly submitted to
the Office of the Secretary of Labor and
Employment.
2. If a work stoppage has already taken place
at the time of the certification:
a. All striking or locked out employees
shall immediately return to work; and
b. The employer shall immediately
resume operations and readmit all
workers under the same terms and
conditions prevailing before the strike
or lockout.
3. All cases between the same parties, shall
be considered subsumed or absorbed by
the certified case, and shall be decided by
the appropriate Division of the
Commission, EXCEPT where the
certification order specifies otherwise the
issues submitted for arbitration which are:
a. Already filed or may be filed, and
b. Relevant to or are proper incidents of
the certified case.
4. The parties to a certified case, under pain
of contempt, shall inform their counsels
and the Division concerned of all cases
pending with the Regional Arbitration
Branches and the Voluntary Arbitrators
relative or incident to the certified case
before it.
5. When a certified labor dispute involves a
business entity with several workplaces
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located in different regions, the Division
having territorial jurisdiction over the
principal office of the company shall
acquire jurisdiction to decide such labor
dispute; unless the certification order
provides otherwise. [Sec. 3, Rule VIII, 2011
NLRC Rules and Procedures]
Effects of Defiance
Non-compliance with the certification order of
the SOLE shall:
1. Be considered as an illegal act committed
in the course of the strike or lockout; and
2. Authorize the Commission to enforce the
same under pain of immediate disciplinary
action, including:
a. Dismissal or loss of employment
status; or
b. Payment by the locking-out employer
of backwages, damages; and/or
c. Other affirmative relief, even criminal
prosecution against the liable parties.
The Commission may also seek the assistance
of law enforcement agencies to ensure
compliance and enforcement of its orders and
resolutions. [Sec. 4, Rule VIII, 2011 NLRC
Rules and Procedures]
Strict Compliance of Assumption and
Certification Orders
The Secretary's assumption and certification
orders being executory in character are to be
strictly complied with by the parties even during
the pendency of a petition questioning their
validity.
The extraordinary authority given by law to the
Secretary of Labor is "aimed at arriving at a
peaceful and speedy solution to labor disputes,
without jeopardizing national interests." [Union
of Filipino Employees v. NLRC, G.R. No.
91025 (1990)]
Procedure in certified cases
a. When there is no need to conduct a
clarificatory hearing, the Commission
shall resolve all certified cases within 30
calendar days from receipt by the assigned
Commissioner of the complete records,
which shall include the position papers of
U.P. LAW BOC LABOR 2
the parties and the order of the SOLE
denying the motion for reconsideration of
the certification order, if any.
b. Where a clarificatory hearing is needed,
the Commission shall, within 5 calendar
days from receipt of the records, issue a
notice to be served on the parties through
the fastest means available, requiring them
to appear and submit additional evidence,
if any. All certified cases shall be resolved
by the Commission within 60 calendar days
from receipt of the complete records by the
assigned Commissioner.
No motion for extension or postponement shall
be entertained. [Sec. 5, Rule VIII, 2011 NLRC
Rules and Procedures]
Execution of Judgment
Upon issuance of the entry of judgment, the
Commission motu proprio or upon motion by
the proper party, may cause the execution of
the judgment in the certified case. [Sec. 6,
Rule VIII, 2011 NLRC Rules and Procedures]
C. COURT OF APPEALS
Appeal via Rule 65, Rules of Court
Petition for certiorari
A person may file a verified petition in the
proper court, alleging the facts with certainty
and praying that judgment be rendered
annulling or modifying the proceedings of
any tribunal, board or officer exercising judicial
or quasi-judicial functions, and granting such
incidental reliefs as law and justice may
require:
1. When such tribunal, board or officer has
acted:
a. Without or in excess its or his
jurisdiction, or
b. With grave abuse of discretion
amounting to lack or excess of
jurisdiction; AND
2. When there is no appeal, or any plain,
speedy, and adequate remedy in the
ordinary course of law.
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LABOR LAW
The petition shall be accompanied by:
1. A certified true copy of the judgment, order
or resolution subject thereof;
2. Copies of all pleadings and documents
relevant and pertinent thereto; and
3. A sworn certification of non-forum
shopping as provided in the third
paragraph of Sec. 3, Rule 46.
Petition for prohibition
A person may file a verified petition in the
proper court, alleging the facts with certainty
and praying that judgment be rendered
commanding the any tribunal, corporation,
board, officer or person, whether exercising
judicial, quasi-judicial or ministerial functions to
desist from further proceedings in the action
or matter specified therein, or otherwise
granting such incidental reliefs as law and
justice may require:
1. When the proceedings of such tribunal,
corporation, board, officer or person are:
a. Without or in excess of its or his
jurisdiction; or
b. With grave abuse of discretion
amounting to lack or excess of
jurisdiction, AND
2. When there is no appeal or any other plain,
speedy, and adequate remedy in the
ordinary course of law.
The petition shall be accompanied by:
1. A certified true copy of the judgment, order
or resolution subject thereof;
2. Copies of all pleadings and documents
relevant and pertinent thereto; and
3. A sworn certification of non-forum
shopping as provided in the third
paragraph of Sec. 3, Rule 46.
Petition for mandamus
A person may file a verified petition in the
proper court, alleging the facts with certainty
and praying that judgment be rendered
commanding any tribunal, corporation, board,
officer or person, immediately or at some other
time to be specified by the court, to do the act
required to be done to protect the rights of the
petitioner, and to pay the damages sustained
by the petitioner by reason of the wrongful acts
of the respondent:
U.P. LAW BOC LABOR 2
1. When any tribunal, corporation, board,
officer or person:
a. Unlawfully neglects the performance of
an act which the law specifically
enjoins as a duty resulting from an
office, trust, or station; or
b. Unlawfully excludes another from the
use and enjoyment of a right or office
to which such other is entitled; AND
2. When there is no other plain, speedy and
adequate remedy in the ordinary course of
law.
D. SUPREME COURT
All references in the amended Sec. 9 of B.P.
No. 129 to supposed appeals from the NLRC
to the Supreme Court are interpreted and
hereby declared to mean and refer to petitions
for certiorari under Rule 65.
Consequently, all such petitions should hence
forth be initially filed in the Court of Appeals, in
strict observance of the doctrine on the
hierarchy of courts, as the appropriate forum
for the relief desired. [St. Martin Funeral Home
v. NLRC, G.R. No. 130866 (1998)]
Rule 45, Rules of Court
Filing of petition with Supreme Court
A party desiring to appeal by certiorari from a
judgment or final order or resolution of the
Court of Appeals, the Sandiganbayan, the
Regional Trial Court or other courts whenever
authorized by law, may file with the Supreme
Court a verified petition for review on certiorari.
The petition shall raise only questions of law
which must be distinctly set forth. [Sec. 1]
Since the Court of Appeals had jurisdiction
over the petition under Rule 65, any alleged
errors committed by it in the exercise of its
jurisdiction would be errors of judgment which
are reviewable by timely appeal, and not by a
special civil action of certiorari.
If the aggrieved party fails to do so within the
reglementary period, and the decision
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LABOR LAW
accordingly becomes final and executory, he
cannot avail himself of the writ of certiorari, his
predicament being the effect of his deliberate
inaction. [Tirazona v Phil EDS Techno-Service
Inc, G.R. No. 169712 (2009)]
Note: Review of decisions of the NLRC shall be
done through (in order):
1. Motion for reconsideration
2. Rule 65 to the CA
3. Rule 45 to the SC
E. BUREAU OF LABOR
RELATIONS
1. Jurisdiction
The Bureau of Labor Relations and the Labor
Relations Divisions in the regional offices of the
Department of Labor and Employment shall
have original and exclusive authority:
a. To act –
1. At their own initiative, or
2. Upon request of either or both parties,
b. On all inter-union and intra-union conflicts,
and
c. All disputes, grievances or problems
arising from or affecting labor-management
relations in all workplaces –
1. Whether agricultural or non-agricultural
2. Except those arising from the
implementation or interpretation of
collective bargaining agreements
which shall be the subject of grievance
procedure and/or voluntary arbitration.
[Art. 232]
The Bureau shall have fifteen (15) calendar
days to act on labor cases before it, subject to
extension by agreement of the parties.
Original Jurisdiction
a. Inter-union and intra-union disputes and
other related labor relations disputes.
b. All disputes, grievances or problems
arising from or affecting labor-management
relations in all workplaces whether
agricultural or non-agricultural, except
those arising from the implementation or
U.P. LAW BOC LABOR 2
interpretation of collective bargaining
agreements which shall be the subject of
grievance procedure and/or voluntary
arbitration. [Art. 232]
Note: If the complaint involves an independent
union, chartered local or worker’s association,
file with the DOLE Regional Office but if the
complaint involves a federation or an
industry/national union, file with the BLR.
Inter-Union Dispute: one which occurred
between or among legitimate labor unions
involving representation questions for
purposes of collective bargaining or to any
other conflict or dispute between legitimate
labor unions [IRR Book V, IRR Rule 1, Sec. 1
(x)]
Intra-Union Dispute: conflict within and inside
a union between and among union members
including grievances from any violation of
rights and conditions of membership or
provisions from the union’s constitution and by-
laws and chartering of unions [D.O. No. 40-03,
Rule I, Sec. 1 (bb)]
Inter/Intra – Union Disputes shall include:
[DO No. 040-I-15, Book V, Rule XI]
1. Cancellation of registration of a labor
organization filed by its members or by
another labor organization [Sec. 1a]
2. Conduct of election of union and workers'
association officers/nullification of election
of union and workers' association officers
[Sec. 1(b)]
3. Audit/accounts examination of union or
workers' association funds [Sec. 1(c)]
4. Deregistration of collective bargaining
agreements [Sec. 1(d)]
5. Validity/invalidity
a. Of union affiliation or disaffiliation [Sec.
1(e)]
b. Of acceptance/non-acceptance for
union membership [Sec. 1(f)]
c. Of impeachment/expulsion of union
and workers' association officers and
members [Sec. 1(g)]
d. Of the SEBA certification [Sec. 1(h)]
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LABOR LAW
e. Or disagreements over any provision in
a union or workers' association
constitution and by-laws [Sec. 1(j)]
6. Opposition to application for union and
CBA registration [Sec. 1(i)]
7. Disagreements over chartering or
registration of labor organizations and
collective bargaining agreements [Sec.
1(k)]
8. Violations of –
a. The rights and conditions of union or
workers' association membership [Sec.
1(l)]
b. The rights of legitimate labor
organizations, except interpretation of
collective bargaining agreements [Sec.
1(m)]; and
9. Such other disputes or conflicts involving
the rights to self-organization, union
membership and collective bargaining
a. Between and among legitimate labor
organizations; or
b. Between and among members of a
union or workers' association [Sec.
1(n)]
Appellate Jurisdiction
The BLR Director exercises exclusive
appellate jurisdiction over:
1. All decisions of the Med-Arbiter in:
a. Inter/Intra-union disputes (Note:
Complaints involving Federations,
National Unions, etc. pursuant to Rule
XI Sec. 4, formerly Sec. 5, as amended
by D.O. 40-F-03).
b. Other related labor relations disputes.
2. All decisions from the DOLE Regional
Director in the cases falling under their
original jurisdiction as enumerated. [Sec.
14, Rule XI, Book V, IRR]
Decisions of the BLR through its appellate
jurisdiction are final and executory 10 days
after receipts by the parties. [Sec. 20, Rule XI,
Book V, IRR].
U.P. LAW BOC LABOR 2
2. Appeals
Decisions of the BLR through its original
jurisdiction are appealable to the Secretary of
Labor and Employment. [Sec. 15, Rule XI,
Book V, IRR].
Decisions of the BLR in its appellate jurisdiction
are final and executory, unless appealed to the
CA via Rule 65 and later to the SC via Rule 45.
[Abbot Laboratories Philippines, Inc. v. Abbot
Laboratories Employees Union, 323 SCRA 392
(2000)]
3. Administrative Functions of the
BLR
a. Regulation of registration of the labor
unions;
b. Keeping a registry of legitimate labor
unions;
c. Maintenance of a file of CBAs;
d. Maintenance of a file of all settlements or
final decisions in the SC, CA, NLRC and
other agencies on labor disputes.
F. NATIONAL CONCILIATION
AND MEDIATION BOARD
All issues arising from labor and employment
shall be subject to mandatory conciliation-
mediation.
Exception: As provided in Title VII-A, Book V
of this Code, as amended, or as may be
excepted by the Secretary of Labor and
Employment.
The Labor Arbiter or the appropriate DOLE
agency or office that has jurisdiction over the
dispute shall entertain only endorsed or
referred cases by the duly authorized officer.
Any or both parties involved in the dispute may
pre-terminate the conciliation-mediation
proceedings and request referral or
endorsement to the appropriate DOLE agency
or office which has jurisdiction over the dispute,
Page 232 of 262
LABOR LAW
or if both parties so agree, refer the unresolved
issues to voluntary arbitration. [Art. 228]
Nature of proceedings
Conciliation and mediation is non-litigious/non-
adversarial, less expensive, and expeditious.
Under this informal set-up, the parties find it
more expedient to fully ventilate their
respective positions without running around
with legal technicalities and, in the course
thereof, afford them wider latitude of possible
approaches to the problem.
SENA
The Single-Entry Approach (SENA) is a
prescribed 30-day Mandatory Conciliation-
Mediation Services to be made operational
through the Single Entry Approach Desk
(SEAD) for all labor and employment cases
except:
1. cases on notices of strikes or lock-outs, or
on preventive mediation cases (NCMB)
2. interpretation and implementation of CBA
(Grievance Machinery) [D.O. No. 107-10]
1. Jurisdiction
The NCMB is an agency attached to the DOLE
principally in charge of the settlement of labor
disputes through conciliation, mediation and of
the promotion of voluntary approaches to labor
dispute prevention and settlement. [NCMB
Manual of Procedures for Conciliation and
Preventive Mediation Cases, Rule III, sec. 1]
The following procedures shall be observed in
collective bargaining:
1. When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other party with a statement of its
proposals [Art. 261(a)].
a. The other party shall make a reply
thereto not later than ten (10) calendar
days from receipt of such notice [Art.
261(a)];
b. Should differences arise on the basis of
such notice and reply, either party may
request for a conference which shall
begin not later than ten (10) calendar
U.P. LAW BOC LABOR 2
days from the date of request [Art.
261(b)].
2. If the dispute is not settled, the Board shall
intervene upon request of either or both
parties or at its own initiative and
immediately call the parties to conciliation
meetings [Art. 261(c)].
a. The Board shall have the power to
issue subpoenas requiring the
attendance of the parties to such
meetings.
i. It shall be the duty of the parties to
participate fully and promptly in the
conciliation meetings the Board
may call [Art. 261(c)];
b. During the conciliation proceedings in
the Board, the parties are prohibited
from doing any act which may disrupt
or impede the early settlement of the
disputes [Art. 261(d)]; and
c. The Board shall exert all efforts to
settle disputes amicably and
encourage the parties to submit their
case to a voluntary arbitrator [Art.
261(e)].
In Collective Bargaining:
1. If the dispute is not settled, the NCMB will
intervene upon request of either party or at
its own initiative to call for conciliation with
the power to issue subpoenas requiring
attendance:
a. During conciliation proceedings,
parties are prohibited from doing any
act which may disrupt or impede the
early settlement of the dispute;
b. NCMB will exert all efforts to settle
disputes amicable and encourage
submission to a voluntary Arbitrator.
[Art. 261(c)(d)]
2. Procedure for Correction of Wage
Distortion:
a. In organized establishments with CBA
i. Submit issue to grievance
machinery
ii. If unresolved, refer to voluntary
arbitration who will decide within 10
Page 233 of 262
LABOR LAW
days unless otherwise agreed
upon by parties in writing
b. If unorganized establishments without
CBA:
i. Submit issue before the NCMB for
conciliation after endeavors to
correct have failed
ii. If not fruitful within 10 days, refer to
the NLRC for arbitration to be
decided within 20 days from
submission [Rule VII, Rules of
Procedure of Minimum Wage
Fixing]
2. Conciliation as distinguished from
mediation
Conciliation Mediation
Both refer to a process where a third
person called a Conciliator/Mediator
intervenes in a dispute to reconcile
differences or persuade them to adjust or
settle their dispute
C-M facilitates C-M assists parties
disputants to keep to voluntarily reach
things calm, delivers mutually
messages back and acceptable
forth between the settlement.
parties.
[Conciliation-Mediation, DOLE – NCMB
Website, available at:
http://ncrwp.ncmb.ph/?page_id=99]
Conciliator-Mediator [C-M] — Official of the
NCMB whose principal function is to settle and
dispose potential and actual labor disputes
through conciliation and preventive mediation
including the promotion and encouragement of
voluntary approaches to labor disputes
prevention and settlement. [Sec. 1, Rule III,
NCMB Manual of Procedure for Conciliation
and Preventive Mediation Cases]
Pre-Termination of Conciliation-Mediation:
Any or both parties in the dispute may pre-
terminate the proceedings and request referral
or endorsement to the appropriate DOLE
agency or office with jurisdiction or to the
voluntary arbiter if both parties agreed.
U.P. LAW BOC LABOR 2 LABOR LAW

Privileged Communication not Available as

Evidence: Any statement made in conciliation G. DEPARTMENT OF LABOR AND
proceedings shall be treated as privileged EMPLOYMENT REGIONAL DIRECTORS
communication, and shall not be used as
evidence in the NLRC. Conciliators may not
testify in any court or body regarding any 1. Jurisdiction
matter during the conciliation proceedings.
[D.O. No. 40-03, Rule XXII, Sec. 2] The DOLE Regional Directors shall have
original and exclusive jurisdiction over:
a. Labor standards enforcement cases under
3. Preventive mediation
Art. 128;
Note: as the duly authorized representative
Note: Refer also to Sec. 3 (Action on Non-
of the SOLE
Strikeable Issues) & Sec. 4 (Notice Converted
b. Small money claims from labor standards
to Preventive Mediation) of Rule V of the
violations not exceeding P5,000 and not
NCMB Manual of Procedure for Conciliation
accompanied with a claim for
and Preventive Mediation Cases involving non-
reinstatement under Art. 129;
strikeable issues.
c. Operational safety and health conditions
(can order stoppage or suspension of
Definition [Sec. 1(20), Rule III, NCMB Manual
operations) [Art. 128; Bk. IV, Rule II, Sec.
of Procedure for Conciliation and Preventive
8];
Mediation Cases]
d. Registration of unions and cancellations
thereof, cases filed against unions and
Preventive Mediation Cases - refer to the
other labor relations related cases [Sec. 4,
potential labor disputes which are the subject
Rule XI (renumbered, D.O. 40-F-03];
of a formal or informal request for conciliation
Note: only if against an independent labor
and mediation assistance –
union, chartered local or workers’
a. Sought by either or both parties, or
association;
b. Upon the initiative of the NCMB to avoid the
e. Complaints against private recruitment and
occurrence of actual labor disputes.
placement agencies (PRPAs) for local
employment [Secs. 45/46, D.O. 141-14];
Purpose of Preventive Mediation — to
and
remedy, contain or prevent potential labor
f. Cases submitted to voluntary arbitration in
disputes’ degeneration into a full-blown
their capacity as Ex Officio Voluntary
dispute through amicable settlement. It can be
Arbiters under D.O 83-07 (2007).
initiated by:
a. Filing a notice or request of preventive
Note: The DOLE Regional Director, as the duly
mediation; or
authorized representative of the SOLE, also
b. Conversion of the notice of strike/lockout
has visitorial and enforcement power under:
into at preventive mediation case.
1. Art. 37, Art. 128 (have access to
employer’s records and premises with right
Note: If the subject of the strike is non-
to copy or investigate to determine
strikeable, the NCMB can motu proprio convert
violations of law); and
the notice into preventive mediation or refer the
2. Art. 289 (where it can inquire into the
issues to voluntary arbitration
financial activities of any legitimate labor
organization and examine their books and
records to determine compliance with the
law if requested by at least 20% of total
membership).

Page 234 of 262

U.P. LAW BOC LABOR 2
Appeal: Appeal of decisions from visitorial and
enforcement power to the SOLE within 10
calendar days from receipt thereof [Rule IV,
sec. 1, Rules on Disposition of Labor Standard
Cases in the Regional Offices]
2. Recovery and adjudicatory power
Art. 129. Recovery of Wages, Simple Money
Claims and Other Benefits.
Who: The Regional Director of the Department
of Labor and Employment or any of the duly
authorized hearing officers of the Department
[par. 1]
What: They are empowered to hear and
decide any matter involving the recovery of
wages and other monetary claims and benefits
• including legal interest, owing to an
employee or person employed in domestic
or household service or househelper under
this Code, arising from employer-employee
relations
How: Through summary proceeding and after
due notice
When: Upon complaint of any interested party
Conditions:
a. Provided that such complaint does not
include a claim for reinstatement;
b. Provided, further, That the aggregate
money claims of each employee or
househelper do not exceed five thousand
pesos (P5,000).
Period to decide: The Regional Director or
hearing officer shall decide or resolve the
complaint within thirty (30) calendar days from
the date of the filing of the same [Art. 129, par.
2].
Effects of decision to the recovered sum on
behalf of any employee or househelper
General rule: Shall be held in a special deposit
account by, and shall be paid, on order of the
Secretary of Labor and Employment or the
Regional Director directly to the employee or
househelper concerned [Art. 129, par. 3].
Page 235 of 262
LABOR LAW
Exception: Shall be held as a special fund of
the Department of Labor and Employment to
be used exclusively for the amelioration and
benefit of workers –
• When any such sum not paid to the
employee or househelper because he
cannot be located after diligent and
reasonable effort to locate him within a
period of three (3) years [Art. 129, par. 4]
Appeal of decision or resolution [Art. 129,
par. 5]:
Any decision or resolution of the Regional
Director or hearing officer pursuant to this
provision may be appealed on the same
grounds provided in Article 223 of this Code.
Period: Within five (5) calendar days from
receipt of a copy of said decision or resolution
To whom: To the National Labor Relations
Commission which shall resolve the appeal
within ten (10) calendar days from the
submission of the last pleading required or
allowed under its rules.
The Secretary of Labor and Employment or his
duly authorized representative may supervise
the payment of unpaid wages and other
monetary claims and benefits, including legal
interest, found owing to any employee or
househelper under this Code [Art. 129, par. 6].
Small money claims
Note: See also discussion in VI.F. on Money
Claims arising from Employer-Employee
Relationship
Period of Appeal to NLRC: Decisions of the
Regional director on recovery of wages, simple
money claims and other benefits, shall be final
and executory unless appealed within 5 days
from receipt thereof. [Art. 129]
Definition: Recovery/adjudicatory power is the
power of the Regional Director or any duly
authorized hearing officer of DOLE to
adjudicate on recovery of wages of
employees/househelpers employed in a
domestic household for claims not exceeding
U.P. LAW BOC
P5,000 and without seeking reinstatement.
[Art. 129].
If any of the requisites are missing, the Labor
Arbiter shall have jurisdiction over claims
arising from ER-EE relations except claims for
employees’ compensation, SSS, PhilHealth
and maternity benefits. [Art. 224]
Money claims should be filed within 3 years
from the time the cause of action accrued. [Art.
306]
H. DEPARTMENT OF LABOR AND
EMPLOYMENT SECRETARY
POWERS
1. Visitorial (access to employer’s records
and premises and to copy therefrom) and
enforcement powers (to question any
employee and investigate any fact which
may be necessary to determine violations)
2. Power to suspend effects of termination
3. Assumption of jurisdiction
4. Appellate jurisdiction
5. Voluntary arbitration powers
1. Jurisdiction
a. Assumption of jurisdiction
When May the SOLE Assume Jurisdiction
Art. 278 (g). Strikes, Picketing and
Lockouts. – The SOLE may:
a. Assume jurisdiction over the dispute and
decide it; or
b. Certify the same to the Commission for
compulsory arbitration,
when in his opinion there exists a labor dispute
causing, or likely to cause, a strike or lockout in
an industry indispensable to the national
interest.
Requisites for Assumption of Jurisdiction
1. Both parties have requested the SOLE to
assume jurisdiction; or
2. After a conference called by the Office of
the SOLE on the propriety of its issuance,
motu proprio or upon a request or petition
Page 236 of 262
LABOR 2 LABOR LAW
by either party to the labor dispute. [Book
V, IRR Rule XXII, sec. 15, IRR as amended
by D.O. No. 40-H-13 s 2013]
Industries Indispensable to the National
Interest
a. Hospital sector
b. Electric power industry
c. Water supply service, to exclude small
water supply services such as bottling and
refilling stations
d. Air traffic control
e. Other industries as may be recommended
by the National Tripartite Industrial Peace
Council (TIPC) [Sec. 16, Rule XXII, Book
V, IRR as amended by D.O. No. 40-H-13]
Who determines industries indispensable
to the national interest [Art. 278(g)]
a. Secretary of Labor and Employment
b. President
Power of the Secretary of Labor to Assume
Jurisdiction (alternative)
a. Decide the labor dispute himself/herself.
b. Certify the labor dispute to the NLRC for
compulsory arbitration.
Scope: The authority of the Secretary to
assume jurisdiction over a labor dispute
includes and extends to all questions and
controversies arising from such labor dispute.
The power is plenary and discretionary in
nature to enable him to effectively and
efficiently dispose of the dispute. [Philcom
Employees Union v. Philippine Global
Communications, 495 SCRA 214 (2006)]
Powers of the President (Not precluded by
the powers of the Secretary of Labor)
a. Determine the industries indispensable to
the national interest
b. Assume jurisdiction over any such labor
dispute to settle or terminate such dispute
Effects of Assumption of Jurisdiction:
Automatically enjoins intended or impending
strike or lockout. If one has already taken place
at the time of assumption or certification, all
striking or locked out employees shall
immediately return-to-work and the employer
U.P. LAW BOC LABOR 2
shall immediately resume operations and
readmit all workers under the same terms and
conditions prevailing before the strike or
lockout. [Art. 278 (g)]
The SOLE may also determine the retroactivity
of arbitral awards pursuant to power to assume
jurisdiction as part of his/her plenary powers to
determine the effectivity thereof in absence of
specific provision of law. [LMG Chemicals
Corp. v. Sec. of Labor and Employment, 356
SCRA 577 (2001)]
i. Automatic Injunction of
Intended Of Impending Strike
or Lockout
Art. 278 (g). Strikes, Picketing and
Lockouts. – [S]uch assumption or
certification shall have the effect of
automatically enjoining the intended or
impending strike or lockout as specified in
the assumption or certification order. […]
ii. Return-to-work and
readmission if strike or
lockout has already taken
place
Art. 278 (g). Strikes, Picketing and
Lockouts. – [I]f one has already taken place
at the time of assumption or certification, all
striking or locked out employees shall
immediately return-to-work and the
employer shall immediately resume
operations and readmit all workers under the
same terms and conditions prevailing before
the strike or lockout. […]
Nature of return-to-work order
[T]he return-to-work order not so much confers
a right as it imposes a duty; and while, as a
right, it may be waived, it must be discharged
as a duty even against the worker's and/or
employers’ will.
Returning to work in this situation is not a
matter of option or voluntariness but of
obligation.
Page 237 of 262
LABOR LAW
The worker must return to his job together with
his co-workers so the operations of the
company can be resumed and it can continue
serving the public and promoting its interest.
That is the real reason such return can be
compelled. So imperative is the order in fact
that it is not even considered violative of the
right against involuntary servitude. [Kaisahan
ng Mga Manggagawa sa Kahoy v. Gotamco
Sawmills, G.R. No. L-1573 (1948)]
Note: It must be strictly complied with even
during the pendency of any petition questioning
its validity. [Manila Hotel Employees
Association and its Members v. Manila Hotel
Corp., 517 SCRA 349 (2007)]; the purpose of
SOLE’s extraordinary power is aimed at
arriving at a peaceful and speedy solution to
labor disputes without jeopardizing national
interest. [Union of Filipro Employees-Drug v.
Nestle, 499 SCRA 521 (2006)]
The SOLE also has plenary powers to
determine the retroactivity of its arbitral
awards. [LMG Chemicals Corp. v. Sec. of
Labor and Employment, 356 SCRA 577
(2001)]
Immediately Executory
The assumption and certification orders are
executory in character and must be strictly
complied with by the parties. [Allied Banking v.
NLRC, G.R. No. 116128 (1996)]
Strikes and lockouts in hospitals, clinics
and similar medical institutions
It shall be the duty of the striking union or
locking-out employer to provide and maintain
an effective skeletal workforce of medical and
other health personnel, whose movement and
services shall be unhampered and
unrestricted, as are necessary to insure the
proper and adequate protection of the life and
health of its patients, most especially
emergency cases, for the duration of the strike
or lockout.
In such cases, therefore, the Secretary of
Labor and Employment may immediately
assume, within twenty-four (24) hours from
U.P. LAW BOC LABOR 2
knowledge of the occurrence of such a strike or
lockout, jurisdiction over the same or certify it
to the Commission for compulsory arbitration.
[Art. 278, par. 2]
Rationale: The highest respect is accorded to
the right of patients to life and health.
Effect of defiance of assumption or
certification orders
Par. 2, Art. 279 (a). Prohibited Activities. –
No strike or lockout shall be declared:
a. after assumption of jurisdiction by the
President or the Minister;
b. after certification or submission of the
dispute to compulsory or voluntary
arbitration; or
c. during the pendency of cases involving the
same grounds for the strike or lockout.
Strike/lockout becomes illegal
A strike undertaken despite the issuance by the
Secretary of Labor of an assumption or
certification order becomes a prohibited activity
and thus, illegal, pursuant to Art. 279(a) of the
Labor Code. [Allied Banking v. NLRC, G.R. No.
116128 (1996)]
See notes on Liabilities of employer, union
officers, and ordinary workers under illegal
strike.
SUMMARY OF LIABILITIES OF
PARTICIPANTS IN AN ILLEGAL STRIKE/
LOCKOUT [Art. 279]
1. Employer in an illegal lockout – workers
terminated due to illegal lockout shall be
entitled to reinstatement plus full
backwages.
2. Union officers who knowingly
participated in illegal strike – deemed to
have lost their employment
3. Union officers who knowingly
participated in illegal acts during a
LAWFUL strike – deemed to have lost
their employment.
4. Ordinary workers – deemed to have lost
their employment only if they knowingly
participated in illegal acts.
Page 238 of 262
LABOR LAW
Stricter penalties for non-compliance with
orders, prohibitions, and/or injunctions
issued by the Secretary of Labor in strikes
involving hospitals, clinics, and similar
medical institutions
1. Immediate disciplinary action against both
union and employer
2. Dismissal/loss of employment for members
of the striking union
3. Payment by employer of backwages,
damages, and other affirmative relief
4. Criminal prosecution against either or both
the union and employer
INJUNCTIONS
Art. 266. Injunction Prohibited. – No
temporary or permanent injunction or
restraining order in any case involving or
growing out of labor disputes shall be issued
by any court or other entity, except as
otherwise provided in Arts. [225] and [279]
of this Code.
General Rule: Injunctions are prohibited.
Exceptions: Those provided under Art. 225
(referring to the Powers of the NLRC) in
connection with Art. 279 (on Prohibited
Activities) under the Labor Code.
Findings of fact by the NLRC for an
Injunction to issue
Art. 225(e) Powers of the Commission
a. To enjoin or restrain any actual or
threatened commission of any or all
prohibited or unlawful acts; or
b. To require the performance of a particular
act in any labor dispute which, if not
restrained or performed forthwith, may
cause grave or irreparable damage to any
party or render ineffectual any decision in
favor of such party
Provided, That no temporary or permanent
injunction in any case involving or growing out
of a labor dispute as defined in this Code shall
be issued except:
1. After hearing the testimony of witnesses
U.P. LAW BOC LABOR 2
2. With opportunity for cross-examination, in
support of the allegations of a complaint
made under oath, and testimony in
opposition thereto, if offered, and
3. Only after a finding of fact by the
Commission, to the effect:
a. That prohibited or unlawful acts have
been threatened and will be committed
unless restrained, or have been
committed and will be continued unless
restrained
i. But no injunction or temporary
restraining order shall be issued on
account of any threat, prohibited or
unlawful act
ii. Except against the person or
persons, association or
organization making the threat or
committing the prohibited or
unlawful act or actually authorizing
or ratifying the same after actual
knowledge thereof;
b. That substantial and irreparable injury
to complainant's property will follow;
c. That as to each item of relief to be
granted, greater injury will be inflicted
upon complainant by the denial of relief
than will be inflicted upon defendants
by the granting of relief;
d. That complainant has no adequate
remedy at law; and
e. That the public officers charged with
the duty to protect complainant's
property are unable or unwilling to
furnish adequate protection.
Prohibited Activities [Art. 279]
1. No labor organization or employer shall
declare a strike or lockout:
a. Without first having bargained
collectively in accordance with Title VII
of this Book or without first having filed
the notice required in the preceding
Art.; or
b. Without the necessary strike or lockout
vote first having been obtained and
reported to the Ministry [DOLE].
No strike or lockout shall be declared:
a. After assumption of jurisdiction by the
President or the Minister; or
Page 239 of 262
LABOR LAW
b. After certification or submission of the
dispute to compulsory or voluntary
arbitration or during the pendency of
cases involving the same grounds for
the strike or lockout.
Any worker whose employment has been
terminated as a consequence of any
unlawful lockout shall be entitled to
reinstatement with full backwages.
Any union officer who knowingly
participates in an illegal strike, and any
worker or union officer who knowingly
participates in the commission of illegal
acts during a strike may be declared to
have lost his employment status:
Provided, That mere participation of a
worker in a lawful strike shall not constitute
sufficient ground for termination of his
employment, even if a replacement had
been hired by the employer during such
lawful strike.
2. No person shall:
a. Obstruct, impede, or interfere with, by
force, violence, coercion, threats or
intimidation, any peaceful picketing by
employees during any labor
controversy or in the exercise of the
right to self-organization or collective
bargaining; or
b. Aid or abet such obstruction or
interference.
3. No employer shall use or employ any
strike-breaker, nor shall any person be
employed as a strike-breaker.
4. No public official or employee, including
officers and personnel of the New Armed
Forces of the Philippines or the Integrated
National Police, or armed person, shall:
a. Bring in, introduce or escort in any
manner, any individual who seeks to
replace strikers in entering or leaving
the premises of a strike area, or work in
place of the strikers.
U.P. LAW BOC LABOR 2
5. The police force shall keep out of the picket
lines unless actual violence or other
criminal acts occur therein:
a. Provided, That nothing herein shall
be interpreted to prevent any public
officer from taking any measure
necessary to maintain peace and
order, protect life and property,
and/or enforce the law and legal
order.
6. No person engaged in picketing shall
commit any act of violence, coercion or
intimidation or obstruct the free ingress to
or egress from the employer’s premises for
lawful purposes, or obstruct public
thoroughfares.
INNOCENT BYSTANDER RULE
Test to Determine if a Party is an “Innocent
Bystander”
An "innocent bystander," who seeks to enjoin a
labor strike, must satisfy the court that aside
from the grounds specified in Rule 58 of the
Rules of Court, it is entirely different from,
without any connection whatsoever to,
either party to the dispute and, its interests
are totally foreign to the context thereof.
[MSF Tire and Rubber Inc. v. CA, G.R. No.
128632 (1999)]
Injunction Available to Innocent Bystanders
An innocent by-stander is entitled to injunction
if it is affected by the activities of a picketing
union.
Rationale
The right [to picket] may be regulated at the
instance of […] `innocent bystanders' if it
appears that the inevitable result of its exercise
is:
a. To create an impression that a labor
dispute with which they have no connection
or interest exists between them and the
picketing union; or
b. Constitute an invasion of their rights.
[Liwayway Publishing v. Permanent
Concrete Worker's Union, G.R. No. L-
25003 (1981)]
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LABOR LAW
TRO
Art. 225, last 2 pars. – A temporary restraining
order may be issued.
Why issued: If a complainant shall also allege
that a substantial and irreparable injury to
complainant's property will be unavoidable
unless a temporary restraining order shall be
issued without notice/
When issued: Upon testimony under oath,
sufficient, if sustained, to justify the
Commission in issuing a temporary injunction
upon hearing after notice.
Conditions before issuing the TRO:
The complainant shall first file an undertaking
with adequate security in an amount to be fixed
by the Commission –
a. Sufficient to recompense those enjoined
for any loss, expense or damage caused
by the improvident or erroneous issuance
of such order or injunction;
b. Including all reasonable costs, together
with a reasonable attorney's fee, and
expense of defense against the order or
against the granting of any injunctive relief
sought in the same proceeding and
subsequently denied by the Commission.
Effectivity of TRO:
Period: It shall be effective for no longer than
twenty (20) days and shall become void at the
expiration of said twenty (20) days.
Effect: It shall be understood to constitute an
agreement entered into by the complainant and
the surety –
a. Upon which an order may be rendered in
the same suit or proceeding against said
complainant and surety upon a hearing to
assess damages, of which hearing,
complainant and surety shall have
reasonable notice, the said complainant
and surety submitting themselves to the
jurisdiction of the Commission for that
purpose.
b. But nothing herein contained shall deprive
any party having a claim or cause of action
under or upon such undertaking from
U.P. LAW BOC LABOR 2 LABOR LAW

electing to pursue his ordinary remedy by authorized representative as Voluntary

suit at law or in equity: Arbitrator…
1. Provided, further, That the reception of
evidence for the application of a writ of
DOLE Circular No. 1 Series of 2006. –
injunction may be delegated by the
…this administrative procedure for the
Commission to any of its Labor Arbiters
voluntary settlement of labor disputes is
who shall conduct such hearings in
hereby established:
such places as he may determine to be
accessible to the parties and their
1. Either or both the employer and the
witnesses and shall submit thereafter
certified collective bargaining agent (or
his recommendation to the
representative of the employees where
Commission.
there is no certified bargaining agent)
may voluntarily bring to the Office of the
b. Appellate Jurisdiction SOLE through a REQUEST FOR
INTERVENTION, any potential or
1. Orders issued by the duly authorized
ongoing dispute defined below.
representative of the SOLE under Art. 128
may be appealed to the latter.
A potential or ongoing dispute refers to:
2. Denial of application for union registration
a. live and active dispute;
or cancellation of union registration
b. that may lead to a strike or lockout or
originally rendered by the BLR may be
to massive labor unrest;
appealed to the SOLE (if originally
c. is not the subject of any complaint or
rendered by the Regional Office, appeal
notice of strike or lockout at the time
should be made to the BLR)
a REQUEST FOR INTERVENTION
3. POEA — The Office of the SOLE shall
is made.
have exclusive jurisdiction to act on
appeals from the Orders of the
This recourse is separate from the
Administration. [Sec. 185, Rule VII,
established dispute resolution modes of
Revised POEA Rules and Regulations
mediation, conciliation and arbitration
Governing The Recruitment And
under the Labor Code, and is an
Employment Of Landbased Overseas
alternative to other voluntary modes of
Filipino Workers Of 2016]
dispute resolution such as the voluntary
4. Decisions of the Med-Arbiter in certification
submission of a dispute to the Regional
election cases are appealable to the SOLE.
Director for mediation, to the NCMB for
[Art. 272] (decisions of med-arbiters in
preventive mediation, or to the
intra-union disputes are appealable to the
intervention of a regional or local
BLR [Sec. 15, Rule XI, Book V, IRR])
tripartite peace council for the same
purpose.
c. Voluntary Arbitration Powers
2. All REQUESTS shall be in writing and
Art. 278 (h). Strikes, Picketing and
filed with the Office of the Secretary. A
Lockouts. – The parties may opt to submit
REQUEST shall state:
their dispute to voluntary arbitration.
a. the name and address of the
employer;
When: Before or at any stage of the
b. the name of the certified bargaining
compulsory arbitration process.
agent, or the employee
representative duly designated in
Sec. 15, Rule XXII, Book V. Assumption by writing by a majority of the
the Secretary of Labor and Employment. –
employees where there is no
… parties to the case may agree at any time to collective bargaining agent;
submit the dispute to the SOLE or his/her duly

Page 241 of 262

U.P. LAW BOC LABOR 2
c. the number of employees affected by
the potential or ongoing dispute; and
d. a brief description of the potential
or ongoing dispute.
3. Upon receipt of the REQUEST, the
Office of the Secretary shall forthwith
notify the parties and invite them for
conference. The conference for
REQUESTS coming from the National
Capital Region, Regions III, IV-A or IV- B
shall be held at the Office of the
Secretary of Labor and Employment
unless the Secretary otherwise directs.
The conference for REQUESTS coming
from the other regions shall be
conducted by the Regional Director for
the Secretary.
4. The Office of the Secretary or the
Regional director, in the proper case,
shall proceed to intervene after the
parties shall have manifested that;
a. they voluntarily submit their potential
or ongoing dispute to intervention by
the Office of the Secretary of Labor
and Employment;
b. there is no pending notice of strike or
lockout or any related complaint in
relation with their potential or
ongoing dispute;
c. they shall refrain from any strike or
lockout or any form of work stoppage
or from filing any related complaint
while the SOLE’s intervention is in
effect; and
d. they shall abide by the agreement
reached, whose terms may be
enforced through the appropriate
writs issued by the SOLE
All agreements settling the dispute shall
be in writing and signed by the parties as
well as the official who mediated the
dispute.
5. The parties and officials or employees of
the DOLE who took part in the
proceedings shall not testify in any court
or body regarding the disclosures,
Page 242 of 262
LABOR LAW
submissions or positions made by the
parties in these proceedings.
a. If the intervention fails, either or both
parties may avail themselves of the
remedies provided under the Labor
Code. Alternatively, the parties may
submit their dispute to the Office of
the Secretary for voluntary
arbitration. Such voluntary arbitration
shall be limited to the issues defined
in the parties’ submission to
voluntary arbitration agreement and
shall be decided on the basis of the
parties’ position papers and
submitted evidence. The Office of
the Secretary shall resolve the
dispute within sixty (60) days from
the parties’ submission of the dispute
for resolution.
b. This circular shall take effect fifteen
(15) days after publication in a
newspaper of general publication.
Done in the City of Manila,
Philippines, 11 August 2006.
Administrative Intervention for Dispute
Avoidance: Separate from established modes
of mediation, conciliation and arbitration and is
an alternative to other voluntary modes of
dispute resolution [DOLE Circular No. 1, series
of 2006]
Pre-Requisite for the Intervention by the
SOLE: The parties must have manifested that:
a. They voluntarily submit their potential or
ongoing dispute to intervention by the
Office of the SOLE;
b. No pending notice of strike or lockout or
any related complaint in relation to their
potential or ongoing dispute;
c. They shall refrain from any strike or lockout
or any form of work stoppage or filing any
related complaint while the SOLE’s
intervention is in effect;
d. They shall abide by the agreement reached
whose terms may be enforced through the
appropriate writs issued by the SOLE;
U.P. LAW BOC LABOR 2
Note: DOLE Regional Directors and Assistant
Regional Directors may act as ex-officio
voluntary arbitrators [D.O No. 83-07, 2007]
2. Visitorial and enforcement powers
Art. 128. Visitorial and Enforcement Power -
The Secretary of Labor and Employment or his
duly authorized representatives, including
labor regulation officers, shall:
1. Have access to employer’s records and
premises at any time of the day or night
whenever work is being undertaken therein
a. And the right:
i. To copy therefrom,
ii. To question any employee and
iii. To investigate any fact, condition or
matter which may be necessary to
determine violations or which may
aid in the enforcement of this Code
and of any labor law, wage order or
rules and regulations issued
pursuant thereto.
2. Have the power to issue compliance orders
a. Purpose: to give effect to the labor
standards provisions of this Code and
other labor legislation based on the
findings of labor employment and
enforcement officers or industrial
safety engineers made in the course of
inspection.
b. Notwithstanding the provisions of Arts.
129 and [224] of this Code to the
contrary, and in cases where the
relationship of employer-employee still
exists
3. Issue writs of execution to the appropriate
authority for the enforcement of their orders
a. Exception: cases where the employer
contests the findings of the labor
employment and enforcement officer
and raises issues supported by
documentary proofs which were not
considered in the course of inspection.
Art. 37. Visitorial Power. – The Secretary of
Labor or his duly authorized representatives
may, at any time –
1. Inspect the premises, books of accounts
and records of any person or entity covered
by this Title
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LABOR LAW
2. Require it to submit reports regularly on
prescribed forms, and
3. Act on violation of any provisions of this
Title.
Art. 289. Visitorial Power. –The Secretary of
Labor and Employment or his duly authorized
representative is hereby empowered:
1. To inquire into the financial activities of
legitimate labor organizations
a. Upon the filing of a complaint under
oath and duly supported by the written
consent of at least twenty percent
(20%) of the total membership of the
labor organization concerned
2. To examine their books of accounts and
other records to determine compliance or
non-compliance with the law
3. To prosecute any violations of the law and
the union constitution and by-laws
Provided, That such inquiry or examination
shall not be conducted during the sixty (60)-day
freedom period nor within the thirty (30) days
immediately preceding the date of election of
union officials.
The visitorial and enforcement powers of the
DOLE Regional Director to order and enforce
compliance with labor standard laws can be
exercised even where the individual claim
exceeds P5,000.00. [Cirineo Bowling Plaza,
Inc. v. Sensing, G.R. No. 146572 (2005)].
If a complaint is brought before the DOLE to
give effect to the labor standards provisions of
the Labor Code or other labor legislation, and
there is a finding by the DOLE that there is an
existing employer-employee relationship, the
DOLE exercises jurisdiction to the exclusion of
the NLRC.
The findings of the DOLE, however, may still
be questioned through a petition for certiorari
under Rule 65 of the Rules of Court.
The DOLE's labor inspection program can now
proceed without being sidetracked by
unscrupulous employers who could render
nugatory the "expanded visitorial and
enforcement power of the DOLE granted by RA
U.P. LAW BOC LABOR 2
7730 . . . by the simple expedient of disputing
the employer-employee relationship [and] force
the referral of the matter to the NLRC.”
[People's Broadcasting Service v. Secretary of
the Department of Labor and Employment,
G.R. No. 179652 (2012 Resolution)]
The factual findings of the SOLE or the
Regional Directors made in the exercise of
their visitorial and enforcement powers are
binding on Labor Arbiters and the NLRC under
the doctrine of res judicata [Norkis Trading v.
Buenavista, G.R. No. 182018, (2012)]
3. Power to suspend effects of
termination
Art. 292 (b). Visitorial and Enforcement
Power - The SOLE may suspend the effects of
a termination pending resolution of the dispute
in the event of a prima facie finding by the
appropriate official of the DOLE that:
a. The termination may cause a serious labor
dispute (may or may not be a strike or a
lockout)
b. The termination is in implementation of a
mass lay-off.
4. Remedies
The aggrieved party from a decision of the
SOLE may file one motion for reconsideration
within ten (10) days from receipt thereof.
If the motion for reconsideration is denied, the
party may appeal via Rule 65 to the CA 60 days
from receipt of the denial. Upon denial, the
party may proceed via Rule 45 to the SC. [Rule
65, ROC; St. Martin Funeral Home v. NLRC,
G.R. No. 130866 (1998)]
Clearly, before a petition for certiorari under
Rule 65 of the Rules of Court may be availed
of, the filing of a motion for reconsideration is a
condition sine qua non to afford an opportunity
for the correction of the error or mistake
complained of. [PIDLTRANCO Service
Enterprises Inc v. PWU – AGLO, G.R. No.
180962 (2014)]
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LABOR LAW
I. VOLUNTARY ARBITRATOR
Automatic Referral If Grievance Machinery
Fails
All grievances submitted to the grievance
machinery which are not settled within 7
calendar days from the date of its submission
shall automatically be referred to voluntary
arbitration prescribed in the CBA. [Art. 273]
Constitutional Basis
Sec. 3, Art. XIII, 1987 Constitution - The State
shall promote:
1. The principle of shared responsibility
between workers and employers and
2. The preferential use of voluntary modes in
settling disputes, including conciliation,
3. And shall enforce their mutual compliance
therewith to foster industrial peace.
Who is a voluntary arbitrator
A “voluntary arbitrator” is:
1. Any person accredited by the [National
Conciliation and Mediation Board] as such;
or
2. Any person named or designated in the
Collective Bargaining Agreement by the
parties to act as their Voluntary Arbitrator;
or
3. One chosen, with or without the assistance
of the National Conciliation and Mediation
Board, pursuant to a selection procedure
agreed upon in the Collective Bargaining
Agreement; or
4. Any official that may be authorized by the
Secretary of Labor and Employment to act
as Voluntary Arbitrator upon the written
request and agreement of the parties to a
labor dispute. [Art. 219 (n)]
Provision for Voluntary Arbitration in the
CBA
1. Parties to a CBA shall:
a. Name and designate in advance a
Voluntary Arbitrator or panel of
Voluntary Arbitrators, OR
b. Include in the agreement a procedure
for the selection of such Voluntary
Arbitrator or panel of Voluntary
U.P. LAW BOC LABOR 2
Arbitrators, preferably from the listing
of qualified Voluntary Arbitrators duly
accredited by the Board.
2. In case the parties fail to select a Voluntary
Arbitrator or panel of Voluntary Arbitrators,
the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators,
as may be necessary, pursuant to the
selection procedure agreed upon in the
[CBA], which shall act with the same force
and effect as if the has been selected by
the parties as described above. [Art. 273]
Voluntary Arbitration as a Condition
Precedent
The stipulation to refer all future disputes to an
arbitrator or to submit an ongoing dispute to
one is valid. Being part of a contract between
the parties, it is binding and enforceable in
court in case one of them neglects, fails or
refuses to arbitrate.
In the event that they declare their intention to
refer their differences to arbitration first before
taking court action, this constitutes a condition
precedent, such that where a suit has been
instituted prematurely, the court shall suspend
the same and the parties shall be directed
forthwith to proceed to arbitration. [...] A court
action may likewise be proper where the
arbitrator has not been selected by the parties.
[Chung Fu Industries v. CA, G.R. No. 96283
(1992)]
1. Jurisdiction
EXCLUSIVE AND ORIGINAL JURISDICTION
OVER UNRESOLVED GRIEVANCES
a. Interpretation or implementation of the
CBA [Art. 274]
b. Interpretation or enforcement of company
personnel policies [Art. 274]
c. Violations of a CBA which are not gross in
character (gross being flagrant and/or
malicious refusal to comply with the
economic provisions of [the CBA]) [Art.
274]
Note: Gross violations of the CBA shall mean
flagrant and/or malicious refusal to comply with
the economic provisions of such agreement.
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LABOR LAW
Termination Cases: Plenary Jurisdiction of
Voluntary Arbitrator vis-à-vis Labor Arbiter
Termination cases arising in or resulting from
the interpretation and implementation of CBAs
and interpretation and enforcement of
company personnel policies which were initially
processed at the various steps of the plant-
level Grievance Procedures under the parties'
CBAs fall within the original and exclusive
jurisdiction of the VA.
If such is filed before the LA, these cases shall
be dismissed by the LA for lack of jurisdiction
and referred to the concerned NCMB Regional
Branch for appropriate action towards an
expeditious selection by the parties of a VA or
Panel of Arbitrators based on the procedures
agreed upon in the CBA. [Policy Instruction #56
(April 6, 1993)]
Even if the specific issue brought before the
arbitrators merely mentioned the question of
“whether an employee was discharged for just
cause,” they could reasonably assume that
their powers extended beyond the
determination thereof to include the power to
reinstate the employee or to grant back wages.
In the same vein, if the specific issue brought
before the arbitrators referred to the date of
regularization of the employee, law and
jurisprudence gave them enough leeway as
well as adequate prerogative to determine the
entitlement of the employees to higher benefits
in accordance with the finding of regularization.
[Manila Pavilion Hotel, etc. v. Henry Delada,
G.R. No. 189947 (2011)]
Other Labor Disputes
Art. 275. Jurisdiction Over Other Labor
Disputes. – The VA or panel of VAs, upon
agreement of the parties, shall also hear and
decide all other labor disputes including ULP
and bargaining deadlocks.
Art. 274. Jurisdiction of Voluntary
Arbitrators or Panel of Voluntary
Arbitrators. – The Commission, its Regional
U.P. LAW BOC LABOR 2
Offices and the Regional Directors of the
DOLE:
1. Shall not entertain disputes, grievances
or matters under the exclusive and
original jurisdiction of the Voluntary
Arbitrator or panel of Voluntary
Arbitrators and
2. Shall immediately dispose and refer the
same to the grievance machinery or
Voluntary Arbitration provided in the
Collective Bargaining Agreement.
Art. 224 (c). Jurisdiction of the Labor
Arbiters and the Commission. – Cases
arising from the interpretation or
implementation of CBAs and those arising
from the interpretation or enforcement of
company personnel policies shall be
disposed of by the LA by referring the same
to the grievance machinery and VA as may
be provided for in said agreements.
Option – Voluntary Arbitration
Art. 278 (h). Strikes, Picketing and
Lockouts. – Before or at any stage of the
compulsory arbitration process, the parties
may opt to submit their dispute to voluntary
arbitration.
Summary of Arbitrable Issues
a. Interpretation or implementation of the
CBA [Art. 274]
b. Interpretation or enforcement of company
personnel policies [Art. 274]
c. Violations of a CBA which are not gross in
character (gross being flagrant and/or
malicious refusal to comply with the
economic provisions of [the CBA]) [Art.
274]
d. All other labor disputes including ULP and
bargaining deadlock, if the parties agree
[Art. 275]
e. Wage distortions arising from application of
any wage orders in organized
establishments [Art. 124]
f. Unresolved grievances arising from the
interpretation and implementation of the
productivity incentives program under RA
6971 [Book V, IRR Rule XIX. Sec. 4]
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LABOR LAW
In general, the arbitrator [“VA”] is expected to
decide those questions expressly stated and
limited in the submission agreement.
However, since arbitration is the final resort for
the adjudication of disputes, the arbitrator can
assume that he has the power to make a final
settlement.
[The VA has] plenary jurisdiction and authority
to interpret the [CBA] and to determine the
scope of his [or her] own authority. [...] Subject
to judicial review, this leeway of authority [and]
adequate prerogative is aimed at
accomplishing the rationale of the law on
voluntary arbitration – speedy labor justice.
[Goya, Inc. v. Goya, Inc. Employees Union-
FFW, G.R. No. 170054 (2013)]
PROCEDURE
Art. 276. Procedures. — The Voluntary
Arbitrator or panel of Voluntary Arbitrators shall
have the power to:
a. Hold hearings,
b. Receive evidences, and
c. Take whatever action is necessary to
resolve the issue or issues subject of the
dispute,
d. Including efforts to effect a voluntary
settlement between parties.
All parties to the dispute shall be entitled to
attend the arbitration proceedings. The
attendance of any third party or the exclusion
of any witness from the proceedings shall be
determined by the Voluntary Arbitrator or panel
of Voluntary Arbitrators. Hearing may be
adjourned for cause or upon agreement by the
parties.
Unless the parties agree otherwise, it shall be
mandatory for the Voluntary Arbitrator or panel
of Voluntary Arbitrators to render an award or
decision within twenty (20) calendar days from
the date of submission of the dispute to
voluntary arbitration.
The award or decision of the Voluntary
Arbitrator or panel of Voluntary Arbitrators shall
contain the facts and the law on which it is
based. It shall be final and executory after ten
U.P. LAW BOC LABOR 2
(10) calendar days from receipt of the copy of
the award or decision by the parties.
Upon motion of any interested party, the
Voluntary Arbitrator or panel of Voluntary
Arbitrators or the Labor Arbiter in the region
where the movant resides, in case of the
absence or incapacity of the Voluntary
Arbitrator or panel of Voluntary Arbitrators, for
any reason, may issue a writ of execution
requiring either of the following to execute the
final decision, order or award:
a. The sheriff of the Commission or regular
courts; or
b. Any public official whom the parties may
designate in the submission agreement.
[Rule XI, Book V, IRR]
Hearing
All parties to the dispute shall be entitled to
attend the arbitration proceedings. The
attendance of any third party or the exclusion
of any witness from the proceedings shall be
determined by the VA or panel of VAs. Hearing
may be adjourned for cause or upon
agreement by the parties.
Days to render an award/decision
Unless the parties agree otherwise, it shall be
mandatory for the VA or panel of VAs to render
an award or decision within 20 calendar days
from the date of submission of the dispute to
voluntary arbitration.
Form of award/decision
The award or decision of the VA or panel of
VAs must state in clear, concise and definite
terms the facts, the law and/contract upon
which it is based.
Finality
It shall be final and executory after 10 calendar
days from the receipt of the copy of the award
or decision by the parties.
Execution of award/decision
Upon motion of any interested party, the
Voluntary Arbitrator or panel of Voluntary
Arbitrators or the Labor Arbiter in the region
where the movant resides, in case of the
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absence or incapacity of the Voluntary
Arbitrator or panel of Voluntary Arbitrators, for
any reason, may issue a writ of execution
requiring either the sheriff of the Commission
or regular courts or any public official whom the
parties may designate in the submission
agreement to execute the final decision, order
or award.
Costs
The parties to a Collective Bargaining
Agreement shall provide therein a
proportionate sharing scheme on the cost of
the voluntary arbitration including the Voluntary
Arbitrator’s fee. [Art. 277]
Voluntary Arbitrator's Fee
The fixing of the fee of the Voluntary Arbitrators
or panel of Voluntary Arbitrators, whether
shouldered wholly by the parties or subsidized
by the special voluntary arbitration fund, shall
take into account the following factors:
a. Nature of the case;
b. Time consumed in hearing the case;
c. Professional standing of the voluntary
arbitrator;
d. Capacity to pay of the parties;
e. Fees provided for in the Rules of Court [Art.
277]
2. Remedies
Motion for Reconsideration
The absence of a categorical language in Art.
[276] does not preclude the filing of a motion
for reconsideration of the VA’s decision within
the 10-day period. [Teng v Pahagac, G.R.
169704 (2010)]
Appeal
The decision of a Voluntary Arbitrator or panel
of Voluntary Arbitrators is appealable by
ordinary appeal under Rule 43 of the Rules of
Civil Procedure directly to the Court of Appeals.
[AMA Computer College-Santiago City, Inc. v.
Nacino, G.R. No. 162739 (2008)]
But See: Guagua National Colleges v. CA,
G.R. 188412, Aug. 28, 2018, the 10-day period
under Article 276 of the Labor Code refers to
the filing of a motion for reconsideration vis-à-
U.P. LAW BOC LABOR 2
vis the Voluntary Arbitrator's decision or award,
while the 15 days is the period to file petition for
review under Rule 43 of the Rules of Court.
J. PRESCRIPTION OF
ACTIONS
1. Money claims
Art. 306. Money claims. – All money claims
arising from employer-employee relations
accruing during the effectivity of this Code shall
be filed within three (3) years from the time
the cause of action accrued; otherwise they
shall be forever barred.
All money claims accruing prior to the
effectivity of this Code
a. Shall be filed with the appropriate entities
established under this Code within one (1)
year from the date of effectivity, and
b. Shall be processed or determined in
accordance with the implementing rules
and regulations of the Code;
c. Otherwise, they shall be forever barred.
Workmen's compensation claims accruing
prior to the effectivity of this Code and during
the period from November 1, 1974 up to
December 31, 1974,
a. Shall be filed with the appropriate regional
offices of the Department of Labor not later
than March 31, 1975;
b. Otherwise, they shall forever be barred.
c. The claims shall be processed and
adjudicated in accordance with the law and
rules at the time their causes of action
accrued.
The Labor Code has no specific provision on
when a monetary claim accrues. Thus, again
the general law on prescription applies. Art.
1150 of the Civil Code provides that, “The time
for prescription for all kinds of actions, when
there is no special provision which ordains
otherwise, shall be counted from the day they
may be brought.”
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The day the action may be brought is the day a
claim started as a legal possibility. [Anabe v.
Asian Construction, G.R. No. 183233 (2009)]
2. Illegal dismissal
Art. 1146, Civil Code. – The following
actions must be instituted within four years:
a. Upon an injury to the rights of the
plaintiff;
b. Upon a quasi-delict;
However, when the action arises from or out
of any act, activity, or conduct of any public
officer involving the exercise of powers or
authority arising from Martial Law including
the arrest, detention and/or trial of the
plaintiff, the same must be brought within
one year. [As amended by PD No. 1755,
Dec. 24, 1980.]
4 years from dismissal
In illegal dismissal cases, the employee
concerned is given a period of four years from
the time of his dismissal within which to institute
a complaint. This is based on Art. 1146 of the
Civil Code which states that actions based
upon an injury to the rights of the plaintiff must
be brought within four years. [Victory Liner, Inc.
v. Race, G.R. No. 164820 (2007)]
3. Unfair labor practice
All unfair labor practice arising from Book V
a. Shall be filed with the appropriate agency
within one (1) year from accrual of such
unfair labor practice;
b. Otherwise, they shall be forever barred.
Art. 258. Concept of unfair labor practice
and procedure for prosecution thereof – No
criminal prosecution under this Title may be
instituted without a final judgment finding that
an unfair labor practice was committed, having
been first obtained in the preceding paragraph.
During the pendency of such administrative
proceeding, the running of the period of
prescription of the criminal offense herein
penalized shall be considered interrupted:
U.P. LAW BOC
a. The final judgment in the administrative
proceedings shall not be binding in the
criminal case nor be considered as
evidence of guilt
b. But merely as proof of compliance of the
requirements therein set forth.
4. Offenses under the Labor Code
Art. 305, LC. – Offenses penalized under
this Code and the rules and regulations
issued pursuant thereto shall prescribe in
three (3) years.
Art. 305, Civil Code. – Offenses penalized
under this Code and the rules and
regulations issued pursuant thereto shall
prescribe in three (3) years.
3 years, except ULP (see: above)
5. Illegal recruitment
Illegal recruitment cases under this Act shall
prescribe in five (5) years.
Provided, however, that illegal recruitment
cases involving economic sabotage as defined
herein shall prescribe in twenty (20) years.
[Migrant Workers and Overseas Filipinos Act of
1995, Sec. 12]
LAWS AND RULES OF
PROCEDURE
The Civil Code of the Philippines
Article 1700. The relations between capital
and labor are not merely contractual. They
are so impressed with public interest that
labor contracts must yield to the common
good. Such contracts are subject to the
special laws on labor unions, collective
bargaining, strikes and lockouts, closed
shop, wages, working conditions, hours of
labor and similar subjects.
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LABOR 2 LABOR LAW
Article 1701. Neither capital nor labor shall
act oppressively against the other, or impair
the interest or convenience of the public.
Article 1702. In case of doubt, all labor
legislation and all labor contracts shall be
construed in favor of the safety and
decent living for the laborer.
Article 1703. No contract which practically
amounts to involuntary servitude, under any
guise whatsoever, shall be valid.
Migrant Workers and Overseas Filipinos
Act of 1995
See II. Recruitment and Placement, and III. E.
9. Migrant workers
Anti-Trafficking in Persons Act of 2003
SECTION 4. Acts of Trafficking in
Persons. — It shall be unlawful for any
person, natural or juridical, to commit any of
the following acts:
(a) To recruit, obtain, hire, provide, offer,
transport, transfer, maintain, harbor, or
receive a person by any means,
including those done under the pretext of
domestic or overseas employment or
training or apprenticeship, for the
purpose of prostitution, pornography, or
sexual exploitation;
(b) To introduce or match for money, profit,
or material, economic or other
consideration, any person or, as
provided for under Republic Act No.
6955, any Filipino women to a foreign
national, for marriage for the purpose of
acquiring, buying, offering, selling or
trading him/her to engage in prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(c) To offer or contract marriage, real or
simulated, for the purpose of acquiring,
buying, offering, selling, or trading them
to engage in prostitution, pornography,
sexual exploitation, forced labor or
slavery, involuntary servitude or debt
bondage;
U.P. LAW BOC LABOR 2
(d) To undertake or organize tours and
travel plans consisting of tourism
packages or activities for the purpose of
utilizing and offering persons for
prostitution, pornography or sexual
exploitation;
(e) To maintain or hire a person to engage
in prostitution or pornography;
(f) To adopt persons by any form of
consideration for exploitative purposes
or to facilitate the same for purposes of
prostitution, pornography, sexual
exploitation, forced slavery, involuntary
servitude or debt bondage;
(g) To adopt or facilitate the adoption of
persons for the purpose of prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(h) To recruit, hire, transport, obtain,
transfer, harbor, maintain, provide, offer,
receive, or abduct a person, by means of
threat or use of force, fraud, deceit,
violence, coercion, or intimidation for the
purpose of removal or sale of organs of
said person;
(i) To recruit, transport, obtain, transfer,
harbor, maintain, offer, hire, provide,
receive or adopt a child to engage in
armed activities in the Philippines or
abroad;
(j) To recruit, transport, transfer, harbor,
obtain, maintain, offer, hire, provide or
receive a person by means defined in
Section 3 of this Act for purposes of
forced labor, slavery, debt bondage and
involuntary servitude, including a
scheme, plan, or pattern intended to
cause the person either:
(1) To believe that if the person did not
perform such labor or services, he or
she or another person would suffer
serious harm or physical restraint; or
(2) To abuse or threaten the use of law
or the legal processes; and
(k) To recruit, transport, harbor, obtain,
transfer, maintain, hire, offer, provide,
adopt or receive a child for purposes of
exploitation or trading them, including
but not limited to, the act of buying
and/or selling a child for any
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consideration or for barter for purposes
of exploitation. Trafficking for purposes
of exploitation of children shall include:
(1) All forms of slavery or practices
similar to slavery, involuntary
servitude, debt bondage and forced
labor, including recruitment of
children for use in armed conflict;
(2) The use, procuring or offering of a
child for prostitution, for the
production of pornography, or for
pornographic performances;
(3) The use, procuring or offering of a
child for the production and
trafficking of drugs; and
(4) The use, procuring or offering of a
child for illegal activities or work
which, by its nature or the
circumstances in which it is carried
out, is likely to harm their health,
safety or morals; and
(5) To organize or direct other persons
to commit the offenses defined as
acts of trafficking under this Act.
SECTION 4-A. Attempted Trafficking in
Persons. — Where there are acts to initiate
the commission of a trafficking offense but
the offender failed to or did not execute all
the elements of the crime, by accident or by
reason of some cause other than voluntary
desistance, such overt acts shall be deemed
as an attempt to commit an act of trafficking
in persons. As such, an attempt to commit
any of the offenses enumerated in Section 4
of this Act shall constitute attempted
trafficking in persons.
In cases where the victim is a child, any of
the following acts shall also be deemed as
attempted trafficking in persons:
(a) Facilitating the travel of a child who
travels alone to a foreign country or
territory without valid reason therefor
and without the required clearance or
permit from the Department of Social
Welfare and Development, or a written
permit or justification from the child's
parent or legal guardian;
U.P. LAW BOC LABOR 2
(b) Executing, for a consideration, an
affidavit of consent or a written consent
for adoption;
(c) Recruiting a woman to bear a child for
the purpose of selling the child;
(d) Simulating a birth for the purpose of
selling the child; and
(e) Soliciting a child and acquiring the
custody thereof through any means from
among hospitals, clinics, nurseries,
daycare centers, refugee or evacuation
centers, and low-income families, for the
purpose of selling the child.
SECTION 4-B. Accomplice Liability. —
Whoever knowingly aids, abets, cooperates
in the execution of the offense by previous
or simultaneous acts defined in this Act shall
be punished in accordance with the
provisions of Section 10(c) of this Act.
SECTION 4-C. Accessories. — Whoever
has the knowledge of the commission of the
crime, and without having participated
therein, either as principal or as
accomplices, take part in its commission in
any of the following manners:
(a) By profiting themselves or assisting the
offender to profit by the effects of the
crime;
(b) By concealing or destroying the body of
the crime or effects or instruments
thereof, in order to prevent its discovery;
(c) By harboring, concealing, or assisting in
the escape of the principal of the crime,
provided the accessory acts with abuse
of his or her public functions or is known
to be habitually guilty of some other
crime.
Acts defined in this provision shall be
punished in accordance with the provision of
Section 10(d) as stated thereto.
SECTION 5. Acts that Promote
Trafficking in Persons. — The following
acts which promote or facilitate trafficking in
persons shall be unlawful:
(a) To knowingly lease or sublease, use or
allow to be used any house, building or
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establishment for the purpose of
promoting trafficking in persons;
(b) To produce, print and issue or distribute
unissued, tampered or fake counseling
certificates, registration stickers,
overseas employment certificates or
other certificates of any government
agency which issues these certificates,
decals and such other markers as proof
of compliance with government
regulatory and pre-departure
requirements for the purpose of
promoting trafficking in persons;
(c) To advertise, publish, print, broadcast or
distribute, or cause the advertisement,
publication, printing broadcasting or
distribution by any means, including the
use of information technology and the
internet, of any brochure, flyer, or any
propaganda material that promotes
trafficking in persons;
(d) To assist in the conduct of
misrepresentation or fraud for purposes
of facilitating the acquisition of
clearances and necessary exit
documents from government agencies
that are mandated to provide pre-
departure registration and services for
departing persons for the purpose of
promoting trafficking in persons;
(e) To facilitate, assist or help in the exit and
entry of persons from/to the country at
international and local airports, territorial
boundaries and seaports who are in
possession of unissued, tampered or
fraudulent travel documents for the
purpose of promoting trafficking in
persons;
(f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
documents or belongings of trafficked
persons in furtherance of trafficking or to
prevent them from leaving the country or
seeking redress from the government or
appropriate agencies; and
(g) To knowingly benefit from, financial or
otherwise, or make use of, the labor or
services of a person held to a condition
of involuntary servitude, forced labor, or
slavery.
U.P. LAW BOC LABOR 2
(h) To tamper with, destroy, or cause the
destruction of evidence, or to influence
or attempt to influence witnesses, in an
investigation or prosecution of a case
under this Act;
(i) To destroy, conceal, remove, confiscate
or possess, or attempt to destroy,
conceal, remove, confiscate or possess,
any actual or purported passport or other
travel, immigration or working permit or
document, or any other actual or
purported government identification, of
any person in order to prevent or restrict,
or attempt to prevent or restrict, without
lawful authority, the person's liberty to
move or travel in order to maintain the
labor or services of that person; or
(j) To utilize his or her office to impede the
investigation, prosecution or execution
of lawful orders in a case under this Act.
SECTION 6. Qualified Trafficking in
Persons. — The following are considered
as qualified trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected through
Republic Act No. 8043, otherwise known
as the "Inter-Country Adoption Act of
1995" and said adoption is for the
purpose of prostitution, pornography,
sexual exploitation, forced labor,
slavery, involuntary servitude or debt
bondage;
(c) When the crime is committed by a
syndicate, or in large scale. Trafficking is
deemed committed by a syndicate if
carried out by 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;
(d) When the offender is a spouse, an
ascendant, parent, sibling, guardian or a
person who exercises authority over the
trafficked person or when the offense is
committed by a public officer or
employee;
(e) When the trafficked person is recruited
to engage in prostitution with any
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member of the military or law
enforcement agencies;
(f) When the offender is a member of the
military or law enforcement agencies;
(g) When by reason or on occasion of the
act of trafficking in persons, the offended
party dies, becomes insane, suffers
mutilation or is afflicted with Human
Immunodeficiency Virus (HIV) or the
Acquired Immune Deficiency Syndrome
(AIDS);
(h) When the offender commits one or more
violations of Section 4 over a period of
sixty (60) or more days, whether those
days are continuous or not; and
(i) When the offender directs or through
another manages the trafficking victim in
carrying out the exploitative purpose of
trafficking.
SECTION 10. Penalties and Sanctions. —
The following penalties and sanctions are
hereby established for the offenses
enumerated in this Act:
(a) Any person found guilty of committing
any of the acts enumerated in Section 4
shall suffer the penalty of imprisonment
of twenty (20) years and a fine of not less
than One million pesos (P1,000,000.00)
but not more than Two million pesos
(P2,000,000.00);
(b) Any person found guilty of committing
any of the acts enumerated in Section 4-
A of this Act shall suffer the penalty of
imprisonment of fifteen (15) years and a
fine of not less than Five hundred
thousand pesos (P500,000.00) but not
more than One million pesos
(P1,000,000.00);
(c) Any person found guilty of Section 4-B of
this Act shall suffer the penalty of
imprisonment of fifteen (15) years and a
fine of not less than Five hundred
thousand pesos (P500,000.00) but not
more than One million pesos
(P1,000,000.00);
In every case, conviction shall cause
and carry the automatic revocation of the
license or registration of the recruitment
agency involved in trafficking. The
license of a recruitment agency which
U.P. LAW BOC LABOR 2
trafficked a child shall be automatically
revoked.
(d) Any person found guilty of committing
any of the acts enumerated in Section 5
shall suffer the penalty of imprisonment
of fifteen (15) years and a fine of not less
than Five hundred thousand pesos
(P500,000.00) but not more than One
million pesos (P1,000,000.00);
(e) Any person found guilty of qualified
trafficking under Section 6 shall suffer
the penalty of life imprisonment and a
fine of not less than Two million pesos
(P2,000,000.00) but not more than Five
million pesos (P5,000,000.00);
(f) Any person who violates Section 7
hereof shall suffer the penalty of
imprisonment of six (6) years and a fine
of not less than Five hundred thousand
pesos (P500,000.00) but not more than
One million pesos (P1,000,000.00);
(g) If the offender is a corporation,
partnership, association, club,
establishment or any juridical person,
the penalty shall be imposed upon the
owner, president, partner, manager,
and/or any responsible officer who
participated in the commission of the
crime or who shall have knowingly
permitted or failed to prevent its
commission;
(h) The registration with the Securities and
Exchange Commission (SEC) and
license to operate of the erring agency,
corporation, association, religious
group, tour or travel agent, club or
establishment, or any place of
entertainment shall be cancelled and
revoked permanently. The owner,
president, partner or manager thereof
shall not be allowed to operate similar
establishments in a different name;
(i) If the offender is a foreigner, he or she
shall be immediately deported after
serving his or her sentence and be
barred permanently from entering the
country;
(j) Any employee or official of government
agencies who shall issue or approve the
issuance of travel exit clearances,
passports, registration certificates,
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counseling certificates, marriage
license, and other similar documents to
persons, whether juridical or natural,
recruitment agencies, establishments or
other individuals or groups, who fail to
observe the prescribed procedures and
the requirement as provided for by laws,
rules and regulations, shall be held
administratively liable, without prejudice
to criminal liability under this Act. The
concerned government official or
employee shall, upon conviction, be
dismissed from the service and be
barred permanently to hold public office.
His or her retirement and other benefits
shall likewise be forfeited; and
(k) Conviction, by final judgment of the
adopter for any offense under this Act
shall result in the immediate rescission
of the decree of adoption.
SECTION 12. Prescriptive Period. —
Trafficking cases under this Act shall
prescribe in ten (10) years: Provided,
however, That trafficking cases committed
by a syndicate or in a large scale as defined
under Section 6, or against a child, shall
prescribe in twenty (20) years.
The prescriptive period shall commence to
run from the day on which the trafficked
person is delivered or released from the
conditions of bondage, or in the case of a
child victim, from the day the child reaches
the age of majority, and shall be interrupted
by the filing of the complaint or information
and shall commence to run again when the
proceedings terminate without the accused
being convicted or acquitted or are
unjustifiably stopped for any reason not
imputable to the accused.
Handbook for OFWs Act of 2018
SECTION 2. Creating a Handbook for
Overseas Filipino Workers. — The
handbook for overseas Filipino workers,
known in this Act as "Handbook," shall be
created and issued to every land-based and
sea-based worker free of charge. It shall
serve as a ready reference for migrant
U.P. LAW BOC LABOR 2
workers when they need to assert their rights
and responsibilities. It shall also deal with
key issues that they need to know in order to
maintain decent employment conditions
overseas.
PAR. b.1, SEC. 23 (Migrant Workers and
Overseas Filipinos Act of 1995, amended
by Handbook for OFWs Act of 2018). The
[POEA] is hereby mandated to develop,
publish, disseminate and update periodically
a Handbook on the rights and
responsibilities of migrant workers as
provided by Philippine laws and the existing
labor and social laws of the countries of
destination that will protect and guarantee
the rights of migrant workers. The Handbook
shall be written in simple words that can be
easily understood with translation in local
language as may be necessary.
It shall also be responsible for the
implementation, in partnership with other law
enforcement agencies, of an intensified
program against illegal recruitment activities.
For this purpose, the POEA shall provide
comprehensive gender-sensitive Pre-
employment Orientation Seminars (PEOS)
that will discuss topics not only on the
prevention of illegal recruitment but also on
the content of the Handbook on the rights
and responsibilities of migrant workers.
Amending Certain Articles of the Labor
Code
[amendments already incorporated into the
aforecited provisions of the Labor Code]
13th Month Pay Law
See III. B. 1. c. Bonus, 13th month pay
Telecommuting Act
SECTION 3. Telecommuting Defined. —
As used in this Act, the term
"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.
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SECTION 4. Telecommuting Program. —
An employer in the private sector may offer
a telecommuting program to its employees
on a voluntary basis, and upon such terms
and conditions as they may mutually agree
upon: Provided, That such terms and
conditions shall not be less than the
minimum labor standards set by law, and
shall include compensable work hours,
minimum number of work hours, overtime,
rest days, and entitlement to leave benefits.
The employer shall provide the
telecommuting employee with relevant
written information in order to adequately
apprise the individual of the terms and
conditions of the telecommuting program,
and the responsibilities of the employee.
SECTION 5. Fair Treatment. — The
employer shall ensure that the
telecommuting employees are given the
same treatment as that of comparable
employees working at the employer's
premises. All telecommuting employees
shall:
(a) Receive a rate of pay, including overtime
and night shift differential, and other
similar monetary benefits not lower than
those provided in applicable laws, and
collective bargaining agreements.
(b) Have the right to rest periods, regular
holidays, and special nonworking days.
(c) Have the same or equivalent workload
and performance standards as those of
comparable workers at the employer's
premises.
(d) Have the same access to training and
career development opportunities as
those of comparable workers at the
employer's premises, and be subject to
the same appraisal policies covering
these workers.
(e) Receive appropriate training on the
technical equipment at their disposal,
and the characteristics and conditions of
telecommuting.
(f) Have the same collective rights as the
workers at the employer's premises, and
U.P. LAW BOC
shall not be barred from communicating
with workers' representatives.
The employers shall also ensure that
measures are taken to prevent the
telecommuting employee from being
isolated from the rest of the working
community in the company by giving the
telecommuting employee the opportunity to
meet with colleagues on a regular basis, and
allowing access to company information.
SECTION 6. Data Protection. — The
employer shall be responsible for taking the
appropriate measures to ensure the
protection of data used and processed by
the telecommuting employee for
professional purposes. The employer shall
inform the telecommuting employee of all
relevant laws, and company rules
concerning data protection. The
telecommuting employee shall ensure that
confidential and proprietary information are
protected at all times.
For this purpose, the provisions of the Data
Privacy Act of 2012 shall have suppletory
effect.
SECTION 7. Administration. — The parties
to a telecommuting work arrangement shall
be primarily responsible for its
administration. In case of differences in
interpretation, the following guideline shall
be observed:
(a) The differences shall be treated as
grievances under the applicable
grievance mechanism of the company.
(b) If there is no grievance mechanism or if
the mechanism is inadequate, the
grievance shall be referred to the
regional office of the Department of
Labor and Employment (DOLE) which
has jurisdiction over the workplace for
conciliation.
(c) To facilitate the resolution of grievances,
employers shall keep and maintain, as
part of their records, the documents
proving that the telecommuting work
arrangement was voluntarily adopted.
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LABOR 2 LABOR LAW
105 Day Expanded Maternity Leave Law
See III. C. 2. b. Expanded Maternity Leave
Paternity Leave Act of 1996
See III. C. 2. c. Paternity Leave
Solo Parents’ Welfare Act
See III. C. 2. a., Parental Leave for Solo
Parents, III. E. 7. Solo Parents, and VII. E. Solo
Parents
Magna Carta of Women
See III. E. 3. a. Discrimination
Amending Art. 135 of the Labor Code Re:
Prohibition on Discrimination Against
Women
See III. E. 3. c. Prohibited Acts
Anti-Violence Against Women and Their
Children Act of 2004
See III. C. 2. e. Battered women leave
Safe Spaces Act
See III. D. Sexual Harassment in the Work
Environment
Special Protection of Children Against
Abuse, Exploitation, and Discrimination Act
See III. E. 4. Minors
Batas Kasambahay
See III. E. 5. Kasambahays
Anti-Sexual Harassment Act of 1995
See III. D. Sexual Harassment in the Work
Environment
Portability Law
See VII. C. Limited Portability Law
New Labor Relations Law
[amended certain Articles in the Labor Code;
already incorporated into the provisions
previously cited]
Wage Rationalization Act
See III. B. Wages
U.P. LAW BOC LABOR 2
Productivity Incentives Act of 1990
SECTION 5. Labor-Management
Committee. — a) A business enterprise or
its employees, through their authorized
representatives, may initiate the formation of
a labor-management committee that shall be
composed of an equal number of
representatives from the management and
from the rank-and-file employees: Provided,
That both management and labor shall have
equal voting rights: Provided, further, That at
the request of any party to the negotiation,
the National Wages and Productivity
Commission of the Department of Labor and
Employment shall provide the necessary
studies, technical information and
assistance, and expert advice to enable the
parties to conclude productivity agreements.
(b) In business enterprises with duly
recognized or certified labor organizations,
the representatives of labor shall be those
designated by the collective bargaining
agent(s) of the bargaining unit(s).
(c) In business enterprises without duly
recognized or certified labor organizations,
the representatives of labor shall be elected
by at least a majority of all rank-and-file
employees who have rendered at least six
(6) months of continuous service.
SECTION 6. Productivity Incentives
Program. — a) The productivity incentives
program shall contain provisions for the
manner of sharing and the factors in
determining productivity bonuses: Provided,
That the productivity bonuses granted to
labor under this program shall not be less
than half of the percentage increase in the
productivity of the business enterprise.
b) Productivity agreements reached by the
parties as provided in this Act supplement
existing collective bargaining agreements.
c) If, during the existence of the productivity
incentives program or agreement, the
employees will join or form a union, such
program or agreement may, in addition to
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the terms and conditions agreed upon by
labor and management, be integrated in the
collective bargaining agreement that may be
entered into between them.
SECTION 7. Benefits and Tax Incentives.
— (a) Subject to the provisions of Section 6
hereof, a business enterprise which adopts
a productivity incentives program, duly and
mutually agreed upon by parties to the labor-
management committee, shall be granted a
special deduction from gross income
equivalent to fifty percent (50%) of the total
productivity bonuses given to employees
under the program over and above the total
allowable ordinary and necessary business
deductions for said bonuses under the
National Internal Revenue Code, as
amended.
(b) Grants for manpower training and special
studies given to rank-and-file employees
pursuant to a program prepared by the labor-
management committee for the
development of skills identified as necessary
by the appropriate government agencies
shall also entitle the business enterprise to a
special deduction from gross income
equivalent to fifty per cent (50%) of the total
grants over and above the allowable
ordinary and necessary business deductions
for said grants under the National Internal
Revenue Code, as amended.
(c) Any strike or lockout arising from any
violation of the productivity incentives
program shall suspend the effectivity thereof
pending settlement of such strike or lockout:
Provided, That the business enterprise shall
not be deemed to have forfeited any tax
incentives accrued prior to the date of
occurrence of such strike or lockout, and the
workers shall not be required to reimburse
the productivity bonuses already granted to
them under the productivity incentives
program. Likewise, bonuses which have
already accrued before the strike or lockout
shall be paid the workers within six (6)
months from their accrual.
U.P. LAW BOC LABOR 2
(d) Bonuses provided for under the
productivity incentives program shall be
given to the employees not later than every
six (6) months from the start of such program
over and above existing bonuses granted by
the business enterprise and by law:
Provided, That the said bonuses shall not be
deemed as salary increases due the
employees and workers.
(e) The special deductions from gross
income provided for herein shall be allowed
starting the next taxable year after the
effectivity of this Act.
SECTION 9. Disputes and Grievances. —
Whenever disputes, grievances, or other
matters arise from the interpretation or
implementation of the productivity incentives
program, the labor-management committee
shall meet to resolve the dispute, and may
seek the assistance of the National
Conciliation and Mediation Board of the
Department of Labor and Employment for
such purpose. Any dispute which remains
unresolved within twenty (20) days from the
time of its submission to the labor-
management committee shall be submitted
for voluntary arbitration in line with the
pertinent of the Labor Code, as amended.
The productivity incentives program shall
include the name(s) of the voluntary
arbitrator or panel of voluntary arbitrators
previously chosen and agreed upon by the
labor-management committee.
SSS Law
See VII. A. Social Security System Law
GSIS Law
See VII. B. Government Service Insurance
Service Law
Social Security Act of 2018
See VII. A. Social Security System Law
Overseas Workers Welfare Administration
Act
SECTION 4. Nature of the OWWA. — The
OWWA is a national government agency
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LABOR LAW
vested with the special function of
developing and implementing welfare
programs and services that respond to the
needs of its member-OFWs and their
families. It is endowed with powers to
administer a trust fund to be called the
OWWA Fund. Being a chartered institution,
the OWWA shall not fall under any of the
following categories: government
instrumentalities with corporate powers
(GICPs), government corporate entities
(GCEs), government financial institutions
(GFIs) and/or government- owned or -
controlled corporations (GOCCs).
The OWWA shall be an attached agency of
the Department of Labor and Employment
(DOLE). Its officials and employees are
covered by the Salary Standardization Law.
SECTION 6. Functions. — The OWWA
shall exercise the following functions:
(a) To protect the interest and promote the
welfare of member-OFWs in all phases
of overseas employment in recognition
of their valuable contribution to the
overall national development effort;
(b) To protect the interest and promote the
welfare of member-OFWs in all phases
of overseas employment in recognition
of their valuable contribution to the
overall national development effort;
(c) To facilitate the implementation of the
provisions of the Labor Code of the
Philippines (Presidential Decree No.
442, as amended) and the Migrant
Workers and Overseas Filipinos Act of
1995 (Republic Act No. 8042, as
amended), concerning the responsibility
of the government to promote the well-
being of OFWs. Pursuant thereto, and in
furtherance thereof, it shall provide legal
assistance to member-OFWs;
(d) To provide social and welfare programs
and services to member-OFWs,
including social assistance, education
and training, cultural services, financial
management, reintegration, and
entrepreneurial development services;
(e) To provide prompt and appropriate
response to global emergencies or crisis
U.P. LAW BOC LABOR 2
situations affecting OFWs and their
families;
(f) To ensure the efficiency of collections
and the viability and sustainability of the
OWWA Fund through sound, judicious,
and transparent investment and
management policies;
(g) To undertake studies and researches for
the enhancement of the social,
economic, and cultural well-being of
member-OFWs and their families;
(h) To develop, support and finance specific
projects for the welfare of member-
OFWs and their families; and
(i) To ensure the implementation of all laws
and ratified international conventions
within its jurisdiction.
SECTION 8. Registration of Membership.
— Membership in the OWWA may be
obtained in two (2) ways:
(a) By compulsory registration upon
processing of employment contracts of
OFWs at the POEA; and
(b) By voluntary registration of OFWs at job
sites, or through electronic registration.
SECTION 9. Amount of Contribution and
Effectivity of Membership. — Membership
in the OWWA, either through the compulsory
or voluntary coverage, shall be effective
upon payment of membership contribution in
the amount of twenty-five US dollars
(US$25.00) or its equivalent in the prevailing
foreign exchange rates. Such membership
shall be considered active until the expiration
of the OFWs existing employment contract
or after two (2) years from contract
effectivity, whichever comes first.
In case of voluntary registration,
membership shall be considered active until
the expiration of the OFWs existing
employment contract or after two (2) years
from the date of voluntary registration,
whichever comes first.
The OWWA shall be allowed to collect a
subsequent membership contribution from
the member-OFW only after every two (2)
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LABOR LAW
years from the last membership contribution
made.
SECTION 10. Power of the Board to
Adjust the Membership Contribution. —
Based on actuarial studies and taking into
consideration the welfare and interest of the
member-OFWs, the OWWA Board may
adjust or modify the amount of membership
contribution.
SECTION 11. Proof of Membership. —
Upon payment of the required contribution,
an OWWA member shall be issued an
official receipt, an OWWA E-Card,
identification card, or other proof of
membership. No additional or extra charges
shall be levied on the member-OFW.
The OWWA shall maintain a comprehensive
database of member-OFWs, which shall be
updated regularly.
SECTION 13. Authorized Collecting
Officers. — (a) Membership contributions
shall be collected by duly authorized OWWA
collecting officers, deputized collecting
officers, or accredited collecting agents. The
collection of membership contributions shall
be made at the POEA contract processing
hub, OWWA regional and overseas offices,
and other accredited collection centers.
(b) In case of voluntary members who
register at the job site, membership
contributions shall be made directly to the
OWWA Overseas Offices located in the
respective foreign service posts of the
Philippines.
SECTION 14. Reportorial Requirements.
— The collecting officer, deputized collecting
officer, or the accredited collecting agent
shall prepare and submit the required
monthly reports to the OWWA Central Office
in the Philippines.
SECTION 17. Prohibition against
Discrimination on Membership. — No
OFW shall be denied membership to the
U.P. LAW BOC LABOR 2
OWWA by reason of age, gender, religious
belief, or political affiliation. The OWWA shall
take affirmative steps to enhance the access
of OFWs to its programs and services.
SECTION 18. Payment of Contribution or
OWWA Fee by Employer. — Contributions
to the OWWA Fund must be paid by the
employers or principals, or in their default, by
the recruitment/manning agency in the case
of new hires. The POEA shall ensure that
this stipulation is made an integral part of the
overseas employment contract.
SECTION 19. Penalty for Violation by
Recruitment/Manning Agency. — Services. — The OWWA shall sustain
Violation by a recruitment/manning agency
of the preceding section shall constitute an
offense punishable by revocation of its
license and all its officers and directors shall
be perpetually disqualified from engaging in
the business of recruitment/placement of
overseas workers. Such penalty is without
prejudice to any other liability which the
officers and directors may have incurred
under existing laws, rules and regulations.
SECTION 35. Benefits and Services to
OFWs. —
(a) Reintegration of OFWs. — The
reintegration of OFWs, taking into
consideration the needs of women
migrant workers, shall be one of the core
programs of the OWWA. In this regard,
and for purposes of policy and program
coordination, the National Reintegration
Center for OFWs created under
Republic Act No. 10022 shall be an
attached office of the OWWA. It shall be
headed by an Executive Director who
shall be under the supervision of the
OWWA Administrator.
To be able to sustain the viability of this
program, not less than ten percent (10%)
of OWWA's collection of contribution for
the immediately preceding year shall be
allocated annually for the reintegration
program.
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LABOR LAW
(b) Repatriation Assistance. — Consistent
with the provisions of Republic Act No.
8042, as amended, the OWWA shall
assist the Department of Foreign Affairs
in providing OFWs with services
necessary to facilitate repatriation, as
may be required.
(c) Loan and Other Credit Assistance. —
The OWWA shall provide low-interest
loans to member-OFWs. It shall have the
authority to hire experts in finance or
banking to assist in implementing the
said loan programs.
(d) Workers Assistance and On-site
and maintain assistance to member-
OFWs in all its overseas and regional
offices. Services shall be gender-
responsive and shall include information
regarding the names, occupation/job
categories and addresses of the
member-OFWs; legal assistance
providing guidance and information on
protection of migrant rights, including the
prevention of gender-based violence;
developing materials for the
predeparture orientation seminars;
conducting psycho-social counseling
services; conciliation services;
appropriate services and intervention for
victims of gender-based violence, and
outreach missions, among others. The
OWWA shall likewise make competent
representations with employers, agents,
and host government authorities to
assist member-OFWs in obtaining relief
from grievances and work-related
issues, including claims for unpaid
wages, and illegal recruitment cases
among others.
(e) Social Benefits. — A member-OFW shall
be covered with the following social
benefits:
(1) Death and Disability Benefits:
(i) Death Benefits. — A member
shall be covered with life insurance
for the duration of his or her
employment contract. The coverage
shall include one hundred thousand
U.P. LAW BOC LABOR 2
pesos (P100,000.00) for natural
death and two hundred thousand
pesos (P200,000.00) for accidental
death;
(ii) Disability and Dismemberment
Benefits. — Disability and
dismemberment benefits shall be
included in a member's life
insurance policy, as provided for in
the impediment schedule contained
in the OWWA Manual of Systems
and Procedures. The coverage is
within the range of two thousand
pesos (P2,000.00) to fifty thousand
pesos (P50,000.00);
(iii) Total Disability Benefit. — In
case of total permanent disability, a
member shall be entitled to one
hundred thousand pesos
(P100,000.00); and
(iv) Burial Benefit. — A burial benefit
of twenty thousand pesos
(P20,000.00) shall be provided in
case of the member's death.
Based on actuarial studies, the
Board may increase the amount of
the abovementioned benefits.
(2) Health Care Benefits. — Within two
(2) years from the effectivity of this
Act, the OWWA shall develop and
implement health care programs for
the bene t of member-OFWs and
their families, taking into
consideration the health care needs
of women as provided for in
Republic Act No. 9710, or the
Magna Carta of Women, and other
relevant laws.
(3) Education and Training Benefits. —
A member, or the member's
designated beneficiary, may avail
any of the following scholarship
programs, subject to a selection
process and accreditation of
participating institutions:
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LABOR LAW
(i) Death Benefits. — A member
shall be covered with life insurance
for the duration of his or her
employment contract. The coverage
shall include one hundred thousand
pesos (P100,000.00) for natural
death and two hundred thousand
pesos (P200,000.00) for accidental
death;
(ii) Skills-for-Employment
Scholarship Program. — For
technical or vocational training
scholarship;
(iii) Education for Development
Scholarship Program. — For
baccalaureate programs; and
(iv) Seafarers' Upgrading Program.
— To ensure the competitive
advantage of Filipino seafarers in
meeting competency standards, as
required by the International
Maritime Organization (IMO),
International Labor Organization
(ILO) conventions, treaties and
agreements, sea-based members
shall be entitled to one upgrading
program for every three (3)
membership contributions.
The annual scholarship lists of all
these programs shall be submitted to
the Board.
Universal Health Care Act
See VII. H. Universal Health Care
Rules 45 and 65
RULE 45
Appeal by Certiorari to the Supreme Court
Section 1. Filing of petition with Supreme
Court. — A party desiring to appeal by
certiorari from a judgment or final order or
resolution of the Court of Appeals, the
Sandiganbayan, the Regional Trial Court or
other courts whenever authorized by law,
may file with the Supreme Court a verified
U.P. LAW BOC LABOR 2
petition for review on certiorari. The petition
shall raise only questions of law which must
be distinctly set forth.
Section 2. Time for filing; extension. —
The petition shall be filed within fifteen (15)
days from notice of the judgment or final
order or resolution appealed from, or of the
denial of the petitioner's motion for new trial
or reconsideration filed in due time after
notice of the judgment. On motion duly filed
and served, with full payment of the docket
and other lawful fees and the deposit for
costs before the expiration of the
reglementary period, the Supreme Court
may for justifiable reasons grant an
extension of thirty (30) days only within
which to file the petition.
Section 6. Review discretionary. — A
review is not a matter of right, but of sound
judicial discretion, and will be granted only
when there are special and important
reasons thereof. The following, while neither
controlling nor fully measuring the court's
discretion, indicate the character of the
reasons which will be considered:
a. When the court a quo has decided a
question of substance, not theretofore
determined by the Supreme Court, or
has decided it in a way probably not in
accord with law or with the applicable
decisions of the Supreme Court; or
b. When the court a quo has so far
departed from the accepted and usual
course of judicial proceedings, or so far
sanctioned such departure by a lower
court, as to call for an exercise of the
power of supervision.
RULE 65
Certiorari, Prohibition and Mandamus
Section 1. Petition for certiorari. — When
any tribunal, board or officer exercising
judicial or quasi-judicial functions has acted
without or in excess its or his jurisdiction, or
with grave abuse of discretion amounting to
lack or excess of jurisdiction, and there is no
appeal, or any plain, speedy, and adequate
remedy in the ordinary course of law, a
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LABOR LAW
person aggrieved thereby may file a verified
petition in the proper court, alleging the facts
with certainty and praying that judgment be
rendered annulling or modifying the
proceedings of such tribunal, board or
officer, and granting such incidental reliefs
as law and justice may require.
The petition shall be accompanied by a
certified true copy of the judgment, order or
resolution subject thereof, copies of all
pleadings and documents relevant and
pertinent thereto, and a sworn certification of
non-forum shopping as provided in the third
paragraph of section 3, Rule 46.
Section 2. Petition for prohibition. —
When the proceedings of any tribunal,
corporation, board, officer or person,
whether exercising judicial, quasi-judicial or
ministerial functions, are without or in excess
of its or his jurisdiction, or with grave abuse
of discretion amounting to lack or excess of
jurisdiction, and there is no appeal or any
other plain, speedy, and adequate remedy in
the ordinary course of law, a person
aggrieved thereby may file a verified petition
in the proper court, alleging the facts with
certainty and praying that judgment be
rendered commanding the respondent to
desist from further proceedings in the action
or matter specified therein, or otherwise
granting such incidental reliefs as law and
justice may require.
The petition shall likewise be accompanied
by a certified true copy of the judgment,
order or resolution subject thereof, copies of
all pleadings and documents relevant and
pertinent thereto, and a sworn certification of
non-forum shopping as provided in the third
paragraph of section 3, Rule 46.
Section 3. Petition for mandamus. —
When any tribunal, corporation, board,
officer or person unlawfully neglects the
performance of an act which the law
specifically enjoins as a duty resulting from
an office, trust, or station, or unlawfully
excludes another from the use and
enjoyment of a right or office to which such
U.P. LAW BOC LABOR 2 LABOR LAW

other is entitled, and there is no other plain,

speedy and adequate remedy in the ordinary
course of law, the person aggrieved thereby
may file a verified petition in the proper court,
alleging the facts with certainty and praying
that judgment be rendered commanding the
respondent, immediately or at some other
time to be specified by the court, to do the
act required to be done to protect the rights
of the petitioner, and to pay the damages
sustained by the petitioner by reason of the
wrongful acts of the respondent.

The petition shall also contain a sworn

certification of non-forum shopping as
provided in the third paragraph of section 3,
Rule 46.

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