Labor Law
Private recruitment entities; private
 SEVEN (7) BASIC RIGHTS OF
WORKERS AS GUARANTEED BY THE
CONSTITUTION (OCESHLP):
1. Right to Organize
2. Right to Conduct Collective Bargaining
or Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities including strike in accordance
with law
4. Right to Enjoy Security of Tenure
5.Right to Work Under Humane Conditions
6.Right to Receive a Living Wage
7.Right to Participate in Policy &
Decision-Making Processes affecting
their rights and benefits as may be
provided by law
 MANAGEMENT RIGHTS: (CPST)
C Right to conduct business
P Right to prescribe rules
S Right to select employees
T Right to transfer or discharge
employees
 MANAGEMENT PREROGATIVE
Except as limited by special laws,
an employer is free to regulate, according to
his own discretion and judgment, all aspects
of employment, including: HIRING, WORK
ASSIGNMENTS, WORKING METHODS,
TIME PLACE AND MANNER OF WORK,
TOOLS TO BE USED, PROCESSES TO BE
FOLLOWED, SUPERVISION OF
WORKERS, WORKING REGULATIONS,
TRANSFER OF EMPLOYEES, WORK
SUPERVISION, LAY-OFF OF WORKERS,
AND DISCIPLINE, DISMISSAL AND
RECALL OF WORKERS. (HW5T2PLSD)
So long as 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 employees under special law or
under valid agreements, it shall be upheld.
 ENTITIES AUTHORIZED TO RECRUIT
1. Public employment offices
1
2.
employment agencies
3. Shipping or manning agents or
representatives
4. The POEA
5. Construction contractors if authorized by
the DOLE and the Construction Industry
Authority
6. Members of the diplomatic corps (but
hirings must also go thru POEA)
7. Other persons or entities as may be
authorized by the DOLE secretary
 Direct hiring of Filipino workers by a
foreign employer is not allowed.
 EXCEPTIONS :
1. the members of the diplomatic corps;
2. international organizations;
3. such other employers as may be
allowed by the Department of Labor and
employment
4. name hirees – individual workers who
are able to secure contracts for
overseas employment on their own
efforts and representations without the
assistance or participation or any
agency
 ILLEGAL RECRUITMENT - Any act of
canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or not
when undertaken by a non-licensee
or non-holder of authority.
PROVIDED that any such non-
licensee or non-holder of authority who in
any manner, offers or promises for a fee
employment abroad to two or more persons
shall be deemed so engaged. It shall
likewise include the commission of
prohibited acts whether committed by a non-
licensee or non-holder of authority or a
licensee or holder of authority.
 PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
C to charge or accept amount beyond
amount allowed by law
F to furnish or publish false notice or
information in relation to
Recruitment and Placement
G to give any false notice and
information or commit any act of
misrepresentation to secure license
or authority
I Induce or attempt to induce workers
to quit employment to offer him
another except if the transfer is to
liberate a worker from oppressive
terms and conditions of employment
(NOTE: it is not necessary that
worker was actually induced or did
quit employment)
I to influence or attempt to influence
any person or entity not to employ
any worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs
harmful to public health or morality
or to the dignity of the Phil.
O Obstruct or attempt to obstruct
inspection by Secretary
F Fail to file reports
S Substitute or alter employment
contracts
B Become officer or Board member of
corporation engaged in travel
agency
W Withhold or deny travel documents
before the departure for monetary or
financial consideration other than
those authorized by the Code.
F Failure to actually deploy without
valid reason as determined by the
DOLE
F Failure to reimburse expenses
incurred by the worker in connection
with his documentation and
processing for purposes of
deployment, in cases where the
deployment does not actually take
place without the worker’s fault
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 THE QUALIFYING CIRCUMSTANCES
THAT WOULD MAKE ILLEGAL
RECRUITMENT AS A CRIME INVOLVING
ECONOMIC SABOTAGE ARE :
(a) When committed by a SYNDICATE
i.e., if it is carried out by a group of
three (3) or more persons conspiring
and confederating with one another;
or
(b) When committed in a LARGE
SCALE i.e., if it is committed
against three (3) or more persons
Types of Special Workers:
1. Apprentice
2. Learners
3. Handicapped
 Qualifications of an Apprentice
1. at least 15 years of age; provided those
who are at least 15 years of age but less
than eighteen may be eligible for
apprenticeship only in non-hazardous
occupations and the apprenticeship
agreement shall be signed in his behalf
by the parent or guardian or authorized
representative of DOLE.
2. vocational aptitude/ capacity for
appropriate test
3. ability to comprehend and follow oral
and written instructions
Only employers in highly technical
industries may hire apprentices and only in
apprenticeable occupations as
determined by the Sec. Of Labor
 Requisites for a VALID
APPRENTICESHIP
1. QUALIFICATIONS OF THE
APPRENTICE
2. APPRENTICESHIP AGREEMENT DULY
EXECUTED AND SIGNED PROVIDING
FOR COMPENSATION NOT LESS THAN
75% OF THE APPLICABLE MINIMUM
WAGE, EXCEPT ON-THE-JOB TRAINING
(OJT)
3.APPRENTICESHIP PROGRAM DULY
APPROVED BY DOLE
4. PERIOD OF APPRENTICESHIP SHALL
NOT EXCEED 6 MONTHS.
 LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which
may be learned thru practical training on the
job in a relatively short period of time which
shall not exceed 3 mos.
 HANDICAPPED WORKERS - Are those
whose earning capacity is impaired by
age or physical or mental deficiency or
injury.
 ELEMENTS OF EMPLOYER-EMPLOYEE
RELATIONSHIP:
1. selection and engagement of the
employee
2. the payment of wages
3. the power of dismissal
4. the employer’s power to control the
employee (with respect to the means
and methods by which the work is to
be accomplished)
- The last element as mentioned above is
what is known as the CONTROL TEST -
whether the employer controls or has
reserved the right to control the
employee not only as to the result of the
work to be done but also as to the
means and methods by which the same
is to be accomplished. This last element
is the most important index of the
existence of the relationship.
 WORKERS PAID BY RESULTS - Method
of computing compensation based on the
work completed and not on the time spent in
working.
 PIECE-RATE METHOD - Where pay is
dependent on unit of product finished,
preferred where the work process is
repetitive and the out put is standardized
and easily countable.
 PRINCIPLES IN DETERMINING HOURS
WORKED:
1. All hours are hours worked which the
employee is required to give to his
employer, regardless of whether or not
such hour are spent in productive labor
or involve physical or mental exertion;
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2. An employee need not leave the
premises of the workplace in order that
his rest period shall not be counted, it
being enough that he stops working,
may rest completely and may leave his
workplace, to go elsewhere whether
within or outside the premises of his
workplace;
3. If the work performed was necessary, or
it benefited the employer, or the
employee could not abandon his work at
the end of his normal working hours
because he had no replacement, all
time spent for such work shall be
considered as hours worked if the work
is with the knowledge of his employer or
immediate supervisor
4. The time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be
considered time either if the imminence
of the resumption of work requires the
employee’s presence at the place of
work or if the interval is too brief to be
utilized effectively and gainfully in the
employee’s own interest.
 OVERTIME PAY- Additional
compensation for work performed beyond
eight (8) hours within the worker’s 24-hour
workday.
1. 30% of 130% if on a special
holiday/rest day
2. 25% of regular wage if done on a
regular workday
3. 30% of 150% if on special holiday AND
rest day
4. 30% of 200% if on a regular holiday
- As a rule, cannot be waived, as it is
intended to benefit laborers and
employees. But when the waiver is
made in consideration of benefits and
privileges which may even exceed the
overtime pay, the waiver may be
permitted.
 NOTE: OT pay will not preclude payment
of night shift differential pay.
- The right to OT pay cannot be waived.
Such waiver is contrary to law and
public policy.
 EXCEPTIONS:
1. When the waiver stipulates higher
payment or rate of OT pay; or
2. Where the contract of employment
requires work for more than eight hours
of work at specified wage per day
providing for a fixed hourly rate or that
the daily wages include overtime pay.
 WHEN WORKER MAY BE REQUIRED
TO RENDER OT:
(WNUNCN)
W 1. Country is at war or any other
national/local emergency has been
declared by the Chief
Executive/Congress
N 2. Necessary to prevent loss of
life/property/ in case of
actual/impending emergency in the
locality
U 3. There is urgent work to be
performed on machines,
installations, or equipment in order
to avoid serious loss/damage to the
employer or some other causes of
similar nature
N 4. Work is necessary to prevent
loss/damage to perishable goods;
and
C 5. where the completion or
continuation of the work started
before the eighth hour is necessary
to prevent serious obstruction or
prejudice to the business or
operations of the employer.
N 6. when it is necessary to avail of
favorable weather or environmental
conditions where performance or
quality of work is dependent thereon
 WHEN EMPLOYEE MAY BE REQUIRED
TO RENDER WORK ON A REST DAY:
1. In case of actual or impending
emergencies caused by serious
accident, fire, flood typhoon, earthquake
epidemic or other disaster or calamity,
to prevent loss of life or property or in
cases of force majeure or imminent
danger to public safety
2. urgent work to be performed on the
machinery, equipment or installation to
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avoid serious loss which the employer
would otherwise suffer
3. abnormal pressure of work due to
special circumstances, where the
employer cannot ordinarily be expected
to resort to other measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous
operation for seven days a week
6. work is necessary to avail of favorable
weather or environmental conditions
where performance or quality of work
depends upon them
 SPECIAL HOLIDAYS
1. All Saint’s Day -November 1
2. Last Day of the Year-December 31
3. And all other days declared by law or
ordinances to be a special holiday or
non-working day
NOTE: worked = regular wage plus 30%
premium pay
not worked = none
 ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY, SUNDAY OR
HOLIDAY WORK:
1. Work on a scheduled rest day - 30% of
regular wage
2. No regular workdays and rest days -
30% of regular wage for work on
Sundays & Holidays
3. Work on Special Holidays -30% of
regular wage
4. Holiday Work falls on Scheduled Rest
Day - 50% of regular wage
 REGULAR HOLIDAYS:
1. New Year’s Day -January 1
2. Maundy Thursday -Movable date
3. Good Friday- Movable date
4. Araw ng Kagitingan -April 9
5. Labor Day -May 1
6. Independence Day -June 12
7. National Heroes Day`-Last Sunday of
August
8. Bonifacio Day-November 30
9. Christmas Day-December 25
10. Rizal Day-December 30
DOUBLE HOLIDAY PAY
1. 200% of the basic wage provided, he
works on that day and was present or
on leave with pay on the preceding
workday. If on leave without pay, rate
still applies if leave is authorized.
2. 400% if he worked – as per DOLE
Memo if there are 2 regular holidays in
one day eg. April 9 and Good Friday.
Provided the employee worked on the
day prior to the regular holiday or on
leave with pay or on authorized
absence.
3. If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day
before the scheduled regular holiday to
be entitled to compensation to both
otherwise, he must work on the first
holiday to be entitled to holiday pay on
the second regular holiday.
 SERVICE INCENTIVE LEAVE (SIL) - Five
(5) days leave with pay for every employee
who has rendered at least one (1) year of
service.
 BUT DOES NOT APPLY TO THOSE
WHO ARE:
1. already enjoying the said benefits; or
2. enjoying vacation leave with pay for at
least 5 days
3. those employed in establishments
regularly employing less than 10
employees
4. those employed in establishments
exempted from granting this benefit by
the Secretary of Labor.
 ART 96. SERVICE CHARGES
 TO BE DISTRIBUTED TWICE A MONTH
AND AT THE RATE OF:
1. 85% for all covered employees to be
equally distributed among them
2. 15% for management (may answer for
losses and breakages or distributed to
management)
- If collection of service charges is
abolished, the share of covered
employees shall be considered
integrated in their wages on the basis
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of the average monthly share of each
employee for the past 12 months
immediately preceding the abolition.
 THE NON-DIMINUTION RULE -the
benefits being given to employees cannot be
taken back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
 CATEGORIES OF PIECE-RATE
WORKERS:
1. those who are paid piece rates as
prescribed in Piece Rate Orders by the
DOLE
2. Those who are paid output rates which
are prescribed by the employer and are
not yet approved by the DOLE
BENEFITS PAYABLE TO PIECE-RATE
WORKERS:
1. Applicable statutory minimum daily rate;
2. Yearly service incentive leave of five
days with pay;
3. Night shift differential pay
4. Holiday pay
5. Meal and rest periods
6. OT pay (conditional)
7. Premium pay (conditional)
8. 13th month pay
9. other benefits granted by law, individual
or collective bargaining agreement or
company policy or practice.
 LABOR ONLY CONTRACTING - where
the person supplying workers to an
employer does not have substantial capital
or investment in the form of tools,
equipment, machineries, work premises,
among others, and the workers recruited
and placed by such persons are performing
activities which are directly related to the
principal business of such employer.
 INDEPENDENT CONTRACTOR - one
who exercises independent employment and
contracts to do a piece of work according to
his own methods and without being subject
to control of his employer except as to the
result thereof.
- A mere statement in a contract with a
company that laborers who are paid
 according to the amount and quality of
work are independent contractors does
not change their status as mere
employees in contemplation of labor
laws.
 REQUISITES FOR A CONTRACTING OR
SUBCONTRACTING TO BE VALID :
1. where the contractor or subcontractor
carries on a distinct and independent
business and undertakes to perform the
job on his own account and under his
own responsibility, according to its own
manner and method and free from the
control and direction of the principal in
all matters connected with the
performance of the work except as to
the results thereof;
2. the contractor or subcontractor has
substantial capital or investment; and
3. the agreement between the principal
and contractor or subcontractor assures
the contractual employees entitlement to
all labor and occupational safety and
health standards, free exercise of the
right to self-organization, security of
tenure and social and welfare benefits.
- Substantial capital need not be
coupled with investment in tools or
equipment. This is clear from the use of
the conjunction “or”.
 ALLOWABLE WAGE DEDUCTIONS:
WITH EMPLOYEES CONSENT:
1. SSS Payments
2. MEDICARE
3. Contributions to PAG-IBIG Funds
4. value of meals and others
5. payments to third persons with
employees consent
6. deduction of absences
W/OUT EMPLOYEES CONSENT:
1. Worker’s insurance acquired by the
employer
2. Union Dues, where the right to check-off
has been recognized by the employer
3. Cases where the employer is authorized
by law or regulations issued by the
Secretary of Labor
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4. debts of the employee to the employer
which have become due and demandable
 FACTORS FOR DETERMINING
REGIONAL MINIMUM WAGE RATES
(DACNNIPFEE)
1. Demand for living wages;
2. Wage Adjustment vis-a vis the
consumer price index;
3. Cost of living and changes or increases
therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in
the countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested and
capacity to pay of employers;
9. Effects on Employment Generation and
Family Income;
10. Equitable Distribution of Income &
Wealth along the imperatives of
economic and social development
 MATERNITY LEAVE UNDER THE SSS
LAW
A female member, who need not be
legally married, who has paid for at least
three (3) monthly contributions in the 12-
month period immediately preceding the
semester of her childbirth or miscarriage
shall be paid a daily maternity benefit
equivalent to 100% of her average daily
salary credit for 60 days or 78 days, in case
of caesarian delivery.
REQUISITES :
1. Employee notified her employer of her
pregnancy of the probable date of her
childbirth
2. Full payment be advanced by the
employer within 30 days from the filing
of the maternity leave application
3. That payment of daily maternity benefits
shall be a bar to the recovery of
sickness benefits
4. That the maternity benefits shall be paid
only for the first four (4) deliveries or
miscarriages
5. That the SSS shall immediately
reimburse the employer of 100% of the
amount of maternity benefits advanced
to the employee by the employer
6. That if an employee member should
give birth or suffer a miscarriage without
the required contributions having been
remitted for her by her employer to the
SSS, or without the latter having been
previously notified by the employer of
the time of the pregnancy, the employer
shall pay to the SSS damages
equivalent to the benefits which said
employee member would otherwise
have been entitled to.
 LIMIT OF THE BENEFIT: Applies only for
the first four deliveries irrespective of who is
the father of the children, and may not be
availed of in addition to sickness benefit
under the Social Security program.
 RA 8187 (PATERNITY LEAVE)
- This law grants paternity leave of seven
day with full pay to all married male
employees in the private and public
sectors.
- It is available only for the first four
deliveries of the legitimate spouse with
whom the husband is cohabiting.
 Exception and condition on the
employment of a child below 15:
1. When the child works directly under the
sole responsibility of his/her parents or legal
guardian who employs members of his/her
family only under the following conditions:
a. employment does not endanger the
child’s life, safety, health and morals
b. employment does not impair the
child’s normal development
c. the parent/legal guardian provides
the child with the primary and/or
secondary education prescribed by
DECS
2. Where the child’s employment or
participation in public entertainment or
information through cinema, theater, radio,
or television is essential, provided that:
a. employment does not involve
advertisements or commercials
promoting alcoholic beverages,
intoxicating drinks, tobacco and its
by-products or exhibiting violence;
b. There is a written contract
approved by the DOLE; and
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c. The conditions prescribed for the
employment of minors {above
stated} are met.
 RIGHTS OF HOUSEHELPERS:
1. minimum cash wage
2. non-assignment to non- household work
3. opportunity for education: if under 18
(cause of education part of
compensation)
4. board/ lodging, medical attendance
5. just and humane treatment
6. indemnity for unjust termination of
services
7. just causes for termination
8. right not to be required to work more
than 10 hours a day
9. for days vacation each month
10. to regular wages if employed in
industrial or commercial or agricultural
undertaking
11. funeral expenses must be paid by
employer if the househelper has no
relatives with sufficient means in the
place where the head of the family lives.
12. at least elementary education
13. employment certification
 GROUNDS FOR AN INJURY TO BE
COMPENSABLE
1. the employee must have been injured at
the place where the work requires him
to be
2. the employee must have been
performing his official functions
3. if the injury is sustained elsewhere, the
employee must have been executing an
order for the employer
4. the injury was not due to the employee’s
intoxication, willful intention to injure or
kill himself or another, notorious
negligence or otherwise prohibited
under this Title.
 DIRECT PREMISES RULE – as a general
rule, the accident should have occurred at
the place of work to be compensable
 EXCEPTIONS TO THE DIRECT
PREMISES RULE
1. INGRESS- EGRESS/ PROXIMITY
RULE- when the employer is about to
leave or about to enter the premises of
 the employer by way of the customary
or exclusive means of ingress or
egress.
2. GOING TO OR COMING FROM
WORK- when the injury occurred when
the employee is proceeding to or from
his work on the premises of the
employer
must be a continuing act and
has not diverted therefrom by any
other activity and he has not
departed from his usual route to or
from his workplace and if the
employee is on a special errand, it
must have been official and in
connection with his work.
3. EXTRA-PREMISES RULE – (or the
shuttle bus rule) where the company
provides the means of transportation in
going to or coming from the place of
work is liable to the injury sustained by
the employees while on board said
means of transportation.
4. SPECIAL ERRAND RULE – injury
sustained outside the company
premises is compensable if his being
out is covered by an office order or a
locator slip or a pass for official
business.
5. DUAL PURPOSE DOCTRINE – allows
compensation where a special trip
would have to be made for the employer
if the employee had not combined the
service for the employer with his own
going or coming trip.
6. SPECIAL ENGAGEMENT RULE –
covers field trips, outings, intramurals
and picnics when initiated or sanctioned
by the employer
7. POSITIONAL AND LOCAL RISKS
DOCTRINE – If an employee by reason
of his duties is exposed to a special or
peculiar danger from the elements, that
is, one greater than that to which other
persons in the community are exposed
and an unexpected injury occurs, the
injury is compensable
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8. FORCE MAJEURE OR AN ACT OF
GOD- when one in the course of his
employment is reasonably required to
be at a particular place at a particular
time and there meets an accident
although one which any other person
then and there present would have met
irrespective of his employment.
 ART 172. LIMITATIONS OF LIABILITY
- NO COMPENSATION can be obtained
if the injury, death or disability is a
result of the employee’s:
1. Intoxication;
2. Willful intention to injure or kill himself or
another;
3. Notorious negligence; or
4. Unless otherwise provided by the LC
 DEATH BENEFITS
- The System shall pay to the primary
beneficiaries upon the death of the
covered employee an amount equal to
his monthly income benefit, plus ten
percent thereof for each dependent
child, but not exceeding five, beginning
with the youngest and without
substitution. The income benefit shall be
guaranteed for five years.
 TYPES OF LABOR DISPUTES
1. Labor Standards Disputes :
a) compensation (underpayment of
minimum wage)
b) benefits ( nonpayment of holiday pay,
overtime pay)
c) working conditions ( unrectified working
hazards)
2. Labor Relations Disputes
a) organizational right dispute/unfair labor
practice (coercion, restraint or
interference in unionization efforts)
b) representation disputes
c) bargaining disputes ( refusal to bargain )
d) contract administration or personnel
policy disputes (noncompliance with
CBA provisions)
e) employment tenure disputes
f) ( non regularization of employees)
 REQUIREMENTS BEFORE A LABOR - within 30 days from adoption or
ORGANIZATION CAN BE REGISTERED ratification of the constitution
WITH THE BUREAU OF LABOR and by-laws or amendments
RELATIONS: thereto.
3. Misrepresentation, false statement or
1. Written application verified by the fraud in connection with the:
Secretary/Treasurer, attested to by the - election of officers,
President; - minutes of the election of officer
2. Names of members comprising at least and the list of voters, or failure
20% of the employees in the bargaining to submit these documents
unit where it seeks to operate; together with
3. Non-existence of CBA, otherwise, if one - the list of the newly
exist, state in the application that it is
elected/appointed officers and
filed within the freedom period. It shall
their postal addresses
be accompanied by the following
- within 30 days from election
attachments :
4. Failure to submit the annual financial
a. Registration fee in the amount of
report to the Bureau
P50.00;
- within 30 days after the closing
b. Names of the officers and their
of every fiscal year and
addresses;
misrepresentation, false entries
c. Minutes of the organizational
and fraud
meetings;
- in the preparation of the
d. List of workers who participated in
financial report itself;
the organizational meetings;
5. Acting as a labor contractor or engaging
e. Names of all the members and the
in the “cabo” system, or otherwise
number of employees in the
engaging in any activity prohibited by
bargaining unit;
law;
f. Annual Financial Report ( if the
6. Entering into collective bargaining
applicant has been in the existence
agreements which provide terms and
for at least one year);
conditions of employment below
g. Four (4) copies of the constitution
minimum standard established by law;
and by-laws;
7. Asking for or accepting attorney’s fees
h. Minutes of the resolution of the
or negotiation fees from the employers;
constitution and by-laws and the list
8. Other than for mandatory activities
of members who participated in the
under this Code, checking off special
bargaining unit concerned; and
assessment or any other fees without
i. If there is an existing collective
duly signed individual written
bargaining agreement duly
authorization of the members;
submitted to the DOLE, a sworn
9. Failure to submit a list of individual
statement that the application for
members of the Bureau once a year or
registration is filed during the last 60
whenever required by the Bureau; and
days of the agreement.
10. Failure to comply with the requirements
under Articles 237 and 238.
 GROUNDS FOR CANCELLATION OF
UNION REGISTRATION:
 CHECK-OFF is a method of deducting
from an employee’s pay at prescribed
1. Misrepresentation, False statement or
period, the amounts due to the union for
Fraud in connection with:
fees, fines or assessment.
- the adoption or ratification of the
constitution and by-laws or
- NO special assessment, attorney’s fees,
amendments thereto,
registration fees or any other
- the minutes of ratification, and
extraordinary fees may be checked off
- the list of members who took
from any amount due an employee.
part in the ratification.
- WITHOUT an individual written
2. Failure to submit the document mentioned
authorization duly signed by the
in the preceding paragraph
employee.

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 The authorization should specifically
state the:
a. amount
b. purpose and
c. beneficiary of the deduction.
EXCEPTION to the Requirement of
Individual Written Authorization:
- The law does not require individual
written authorizations from the
employees when it comes to fees for
mandatory activities under the Labor
Code.
 PERSONS WHO ARE PROHIBITED
FROM BECOMING MEMBERS OF A
LABOR ORGANIZATION UNDER THE
LABOR CODE:
1. Those who have been convicted of a
crime involving moral turpitude. (Art.
241(f));
2. Subversives or those engaged in
subversive Activities.
- In general, a union is free to select its
own members, and no person has an
absolute right to membership in a trade
union.
- The implementing rules require that the
remedies be exhausted within the union
before a complaint for any violation of
the union’s constitution and by-laws may
be filed.
 RIGHTS OF A LEGITIMATE LABOR
ORGANIZATION:
1. Undertake activities for benefit of
members
2. Sue and be sued
3. Exclusive representative of all
employees
4. Represent union members
5. Furnished by employers of audited
financial statements
6. Own properties
7. Exempted from taxes
 ART 248. ULP THAT MAY BE
COMMITTED BY AN EMPLOYER
10
1. To interfere with, restrain or coerce
employees
- in the exercise of their right to
self-organization;
2. To require as a condition for
employment that a person or an
employee
- shall not join a labor
organization or
- shall withdraw from one to
which he belongs;
3. 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;
4. To initiate, dominate, assist or otherwise
interfere
- with the formation or administration
of any labor organization,
- including the giving of financial or
other support to it or its organizers
or officers;
5. 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 .
6. To dismiss, discharge or otherwise
prejudice or discriminate against an
employee
- for having given or being about to
give testimony under this Code;
7. To violate the duty to bargain
collectively as prescribed by this Code;
8. 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 disputes; or
9. To violate a collective bargaining
agreement. NOTE: violation must be
gross and with respect to the economic
provision of the CBA
 YELLOW DOG CONTRACT: A
promise exacted from workers as a
condition employment that they are not
to belong to, or attempt to foster, a
union during their period of employment.
 THE REQUIREMENTS FOR A VALID
UNION OR CLOSE SHOP AGREEMENT
(SO THAT THE EMPLOYER CAN
TERMINATE THE EMPLOYEE FOR
VIOLATION OF SAID AGREEMENT):
1. It must be expressed in a clear and
unequivocal way so as not to leave
room for interpretation because it is a
limitation to the exercise of the right to
self-organization.
- Any doubt must be resolved against
close-shop.
2. It can only have prospective application
and cannot be applied retroactively.
3. Can only be exercised by giving the
employee his right to due process.
- The employer has the right to satisfy
itself that there are sufficient bases
for the request of the union.
- The termination of the employee is
not automatic upon the request of
the union.
1. Cannot be applied to employees who
are already employees of the rival
union nor to the employees based on
their religious beliefs.
 ART. 249. UNFAIR LABOR PRACTICES
OF LABOR ORGANIZATIONS
a. 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;
b. To cause or attempt to cause an
employer to discriminate against an
employee, including discrimination
c. To violate the duly or refuse to bargain
collectively with the employer provides
that it is the representative of the
employees;
d. 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 a fee for union negotiations;
e. To ask for a accept negotiation or
attorney’s fees from employers as part
of the settlement of any issue in
11
collective bargaining or any other
dispute; or
f. To violate a collective bargaining
agreement.
 MANDATORY PROVISIONS OF THE
CBA:
1. wages
2. hours of work
3. grievance machinery
4. voluntary arbitration
5. family planning
6. rates of pay
7. mutual observance clause
 WHEN IS THE CONDUCT OF A
CERTIFICATION ELECTION
MANDATORY ON THE PART OF THE
BLR?
1. In an unorganized company –
a. upon the filing of a verified petition
by a legitimate labor organization; or
b. upon the filing of a petition by the
employer when such employer is
requested by the employees to
bargain collectively.
2. In an organized company upon the
filing of a verified petition by a legitimate
labor organization questioning the
majority status of the incumbent
bargaining agent within the 60-day
freedom period before the expiration of
a CBA.
- The petition must be supported
by the written consent of at least
25% of all the employees in the
appropriate bargaining unit.
NOTE: In case the establishment is
organized, the employer cannot file a
petition for certification election; only a
legitimate labor organization can file such
petition.
 DEADLOCK BAR RULE, a petition for
certification election can only can only be
entertained if there is no pending bargaining
deadlock submitted to conciliation or
arbitration or had become the subject of a
valid notice of strike or lockout.
 REQUISITES BEFORE A LABOR UNION
CAN BE DECLARED A WINNER:
1. Majority of the eligible voters cast their
votes.
2. Obtained majority of the valid votes
cast.
(DOUBLE MAJORITY)
 HOW TO DETERMINE THE TWO
MAJORITY RULE :
1. In determining valid votes, eliminate
spoiled ballots but include challenged
votes
2. In determining the eligible votes cast,
include spoiled ballots
 RUN-OFF ELECTIONS
This happens when:
a. The election provides for at
least 3 choices(“no union” is
always a choice)
b. The election results in none of
the choices received the
majority votes(50%+1) of the
valid votes cast
Run-off shall be conducted:
a. Between the labor union
receiving the two highest
number of votes
b. Provided that the total number
of votes for all the contending
unions is at least 50% of the
total votes cast
 RULES WHICH WILL PREVENT THE
HOLDING OF A CERTIFICATION
ELECTION:
1. Contract-Bar Rule
2. One-Year Bar Rule
3. Deadlock Bar Rule
 THE CONTRACT-BAR RULE provides
that while a valid and registered CBA is
subsisting, the BLR is not allowed to hold an
election contesting the majority status of the
incumbent union.
EXCEPTIONS TO THE RULE:
12
1. Where it is shown that because of a
schism in the union the contract can
no longer serve to promote
industrial stability, and the holding of
the election is in the interest of the
employees right in the selection of
their bargaining representatives.
2. Basic to the contract bar rule is the
proposition that the denial of the
right to select representatives can
be justified only where stability is
deemed paramount.
3. Certain types of contracts which do
not foster industrial stability such as
contracts where the identity of the
representative is in doubt or those
that are prematurely renewed
 REQUIREMENTS IN ORDER TO INVOKE
CONTRACT-BAR RULE:
1. Agreement is in writing, signed by all
contracting parties.
2. It must contain the terms and conditions
of employment.
3. Covered employees in an appropriate
bargaining unit.
4. It is for a reasonable period or duration.
5. It must be ratified.
6. It must be registered with the Bureau.
7. The violation of the contract bar rule or
the existence of a duly registered CBA
must be specifically impleaded as a
defense.
EXCEPTIONS TO THE CONTRACT-
BAR RULE:
1. CBA is not registered.
2. CBA deregistered.
3. CBA was hastily concluded way ahead
of the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace
because of schism
6. CBA was concluded in violation of an
order enjoining the parties from entering
into a CBA until the issue of
representation is resolved.
 JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING: (Kiok Loy
Case)
1. Possession of status of majority
representation
2. Proof of majority representation
3. Clear and unequivocal demand to
bargain collectively
 SUCCESSOR-IN-INTEREST DOCTRINE
occurs when an employer is succeeded by
another employer, the successor-in-interest
who is a buyer in good faith has no liability
to employees in continuing employment and
collectively bargain because they are
contracts in personam, as well as for cases
of unfair labor practice.
EXCEPTIONS TO THE SUCCESSOR-
IN-INTEREST DOCTRINE:
1. If the transfer is done in bad faith;
2. If it was done to circumvent the
obligation of the seller;
3. If the successor expressly assumes the
obligations of the seller
ART 254. NO INJUNCTION RULE
No temporary or permanent
injunction pr 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
Articles 218 and 264 of this Code.
 Art. 218 – restrain or perform acts
which may caused grave or
irreparable damage
 Art. 264 – prohibited activities during
strikes / lockouts
GROUNDS FOR THE DECLARATION OF
STRIKE
1. deadlock in collective bargaining; and/or
2. unfair labor practices
NUMBER OF DAYS IN THE COOLING
OFF PERIOD:
1. If the ground for the intended strike or
lockout is DEADLOCK IN COLLECTIVE
BARGAINING, the cooling-off period is
30 days from the filing of the notice of
strike.
2. If the ground for the intended strikes is
UNFAIR LABOR PRACTICE, the
13
cooling-off period is 15 days from the
filing of the notice of strike.
 EXCEPTION TO THE COOLING-OFF
PERIOD:
- In case of dismissal from employment of
union officers duly elected in
accordance with the union constitution
and by-laws, which may constitute union
busting where the existence of the union
is threatened, he 15-day cooling-off
period shall NOT apply AND the union
may take action immediately but they
must still observe the mandatory 7 day
period before they can stage a valid
strike.
 TESTS FOR THE LEGALITY OF A
STRIKE:
1. Whether or not is has a lawful
PURPOSE.
2. Whether or not is complies with the
PROCEDURAL REQUIREMENTS OF
THE LAW, to wit –
- notice of strike
- 30/15-day cooling-off period
- strike vote
- 7-day strike ban
3. Whether or not it is executed through
LAWFUL MEANS.
TOTALITY DOCTRINE:
“… the culpability of an employer’s
remarks were to be evaluated not only
on the basis of their implicit
implications, but were to be appraised
against the background of and in
conjunction with collateral
circumstances.
- Under this “doctrine” expressions of
opinion by an employer which, though
innocent in themselves, frequently were
held to be culpable because
- of the circumstances under which
they were uttered,
- -the history of the particular
employer’s labor relations of anti-
union bias or
- -because of their connection with an
established collateral plan of
coercion or interference.”
(Rothenberg)
 In Case the strike is declared legal, are
the strikers entitled to strike duration
pay?
IT DEPENDS.
1. If it is an Economic Strike
NO, the strikers are NOT entitled to
strike duration pay since the employer
should get the equivalent day’s work for
what the pays his employees.
2. If it is a ULP Strike
Would depend on the authority
deciding (discretionary).
GENERAL RULE: Strikers are not
entitled to their wages during the period
of a strike, even if the strike is legal.
EXCEPTIONS:
1. Where the strikers voluntarily and
unconditionally offered to return to
work, but the employer refused to
accept the offer.
- -They are entitled to backwages
from the date the offer was made
- -e.g. of Unconditioned offer: “we will
return tomorrow” and NOT “willing to
return provided…”
2. Where there is return-to-work and the
employees are discriminated against.
- They are entitled to backwages from
the date of discrimination.
ART 264. PROHIBITED ACTIVITIES
1. NO labor organization or employer
shall declare a strike or lockout
- without first having bargained
collectively in accordance with
Title VII of this Book or
- without first having filed the
notice required in the preceding
Article or without the necessary
strike or lockout vote first having
been obtained and reported to
the Department.
- NO strike or lockout shall be declared:
a. AFTER assumption of
jurisdiction by the President or
the Secretary or
b. AFTER certification or
submission of the dispute to
14
compulsory or voluntary
arbitration or
-DURING the pendency of cases
involving the same grounds for the strike
or lockout.
b) NO person all obstruct, impede or
interfere with OII by force, violence,
coercion, threats or intimidation FVCTI
- any peaceful picketing by
employees
- during any labor controversy or
in the exercise of the right of
self- organization or collective
bargaining or shall aid or abet
such obstruction or interference.
c) NO employer shall use or employ any
STRIKE-BREAKER
- nor shall any person be employed
as a strike-breaker.
d) NO public official or employee,
including officers and personnel of the
New Armed Forces of the Philippines of
the Integrated National Police, or armed
persons,
- shall bring in, introduce or
escort in any manner,
- any individual who seeks to
replace strikes in entering or
leaving the premises of a strike
area, or work in place of the
strikers.
- 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 officers
from taking any measure necessary to:
- maintain peace and order,
- protect life and property, and/or
- enforce the law and legal order.
e) 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.
RULES ON REINSTATEMENT OF
WORKERS:
GENERAL RULE - Striking
employees are entitled to reinstatement,
regardless of whether or not the strike
was the consequences of the
employer’s ULP
REASON: because while out of strike,
the strikers are not considered to have
abandoned their employment, but rather
have only ceased from their labor.
 ART. 282. TERMINATION BY
EMPOYER
 JUST CAUSES:
1. Serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representative in connection with his
work;
2. Gross and habitual neglect by the
employee of his duties;
3. Fraud or willful breach by the employee
of the trust reposed in him by his
employer or duly organized
representative;
4. Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of
his family or his duly authorized
representative; and
5. Other causes analogous to the
following:
 ART. 283- 284
 AUTHORIZED CAUSES OF
TERMINATION BY THE EMPLOYER:
1. The installation of labor-saving devices
(automation)
2. Redundancy (superfluity in the
performance of a particular work)
3. Redundancy to prevent losses (there is
excess of employees and employer
wants to prevent financial losses)
4. The closing or cessation of operation of
the establishment or undertaking
UNLESS the closing is for the purpose
15
of circumventing the provisions of the
Labor Code.
5. Illness
a. If illness is incurable within 6
months and is
b. deleterious to his health or
his co-employees.
c. certification from public heath
officer that illness is incurable
within 6 months.
 STANDARDS UNDER WHICH AN
EMPLOYER MAY RETRENCH:
1. Losses expected should be imminent
and substantial.
2.It must be reasonably necessary and
likely to effectively prevent the expected
losses
3. Alleged losses if already incurred, and the
expected imminent losses sought to be
forestalled, must be proved by sufficient and
convincing evidence.
 SEPARATION PAY
In case of termination due to
a) THE INSTALLATION OF LABOR-
SAVING DEVICES OF
b) REDUNDANCY,
- the worker affected thereby shall be
entitled to a separation pay equivalent to
at least one (1) month pay or to at least
one (1) month pay for every year of
service, whichever is higher.
c) RETRENCHMENT TO PREVENT
LOSSES and CLOSURES OR
CESSATION OF OPERATIONS (NOT
due to serious business losses or
financial reverses)
- The separation pay shall be equivalent
to one (1) month pay or at least ½
month pay for every year of service,
whichever is higher.
d) In the case of ILLNESS
- separation pay equivalent to at least one
month salary or to ½ month salary for
every year of service, whichever is
greater, a fraction of at least 6 months
shall be considered one (1) whole year.
NOTE: If CLOSURE is due to severe
financial losses, it is still debatable
 whether or not separation pay should be
given.
- If you are able to prove that such portion
of capital (10%) investment has been
impaired, the employer should be
exempt for the payment of separation
pay.

 REQUIREMENTS OF DUE
PROCESS BEFORE AN EMPLOYEE
CAN BE REMOVED:

1. written notice to apprise the employee of

the particular acts or omission for which
his dismissal is sought and is hereby
considered as the proper charge;
2. ample opportunity to be employee to be
heard and if the employee so decides,
with the assistance of counsel; and
3. written notice informing the employee of
the employer’s decision to dismiss him.

Wenphil Doctrine : Termination upheld

because of the existence of the just cause.
But because of the improper procedure,
damages must be paid. No reinstatement. N
backwages.

Serrano Doctrine : No reinstatement

because of the authorized cause. No
damages. But there was backwages. More
beneficial to workers because backwages
are higher than damages.

JAKA Doctrine : Distinction between just

cause and authorized cause… Just cause =
employee was at fault. Authorized = no fault.

- Damages can be given as long as

there’s illegal dismissal. If there is illegal
dismissal, the remedy is reinstatement +
full backwages. In some instances,
include damages. When reinstatement
is not possible (as when relationship is
strained between employer and
employee) = separation pay.

16
GRIEVANCE MACHINERY
Cases falling under the jurisdiction of Labor
Arbiters:
1. Termination Disputes
2. Legality of Strikes / Lockouts
3. ULP
4. Monetary Claims exceeding P5,000
per employee
5. Damages
6. Complaints filed by OFWs against
employer or agent
A termination dispute can also be settled by
a voluntary arbitrator. How? Agreement by
the parties.
ULP and Notice of Strike may be solved
through the NCMB. BUT!!!! NCMB does not
decide cases! Hence, there is no appeal to
speak of!
OT on Holiday
- Hourly Rate = [Daily Wage x 2] / 8
- OT Premium = Hourly Rate x 30%
OT on Special holidays or Rest Days
- Hourly Rate = [Daily Wage + 30%] /
8
- OT Premium = Hourly Rate x 30%
OT on Special Holidays PLUS Rest Days
- Hourly Rate = [Daily Wage + 50%] /
8
- OT Premium = Hourly Rate x 30%
OT for Monthly Paid
- Daily Wage = Monthly Salary / # of
Days Actually Worked

If the monetary claim concerns CBA, it

becomes a grievance. Hence, you’d go to
the machinery rather than the courts. If you
can’t solve it through your machinery, go to
Voluntary Arbitrator. If based on statute, go
to Labor Arbiter.

If the dispute is between chartered local or

independent unions = Regional Director
If inter-union involving federations = BLR

All cases before reaching CA should pass

thru MR with the lower court. EXCEPT, Sec.
of Labor under DO 40 concerning
certification elections.

COMPUTATIONS

Lunch break is non-compensable. If lunch

break becomes less than one hour =
compensable. But it should not be less than
20 minutes, or else it would violate the law.

Night Shift
- 10% of regular wage for each hour
worker from 10pm – 6am
- Hourly Rate = Daily Wage / 8
- Night Shift Diff = [Hourly Rate x
10%] x # of Hours worked

Overtime Pay =
[Hourly Rate + OT Premium] x #
of Hours worked
OT Premium = Hourly Rate x 25%

17
Labor Arbiter NLRC CA SC

Appeal = 10 days MR should

MR is not accepted be RULE 65
submitted
in 10 days

Voluntary CA SC
Arbiter (Rule 43) (Rule 45)

Jurisdiction of Regional Director

If Art. 129 NLRC CA SC

(amounts less (appeal
than 5K) Appeal in 10 days

If Art. 128 Office of the Sec. of Labor CA SC

(visitorial
power)

Inter / Intra – BLR CA Use Rule 65

Union Disputes Because decision of BLR
is not appealable

BLR (involving Sec. of CA / SC

Federations) Labor (Rule 65)

Office of the Secretary of Labor

Assumption of Jurisdiction SEC. CA SC

Certification Order SEC NLRC CA SC

18