NOTES IN LABOR LAWS AND SOCIAL LEGISLATION

Atty. Dodie O. Turla

Labor Laws - a branch of law which deals with the two factors in production:
1. Employer - one for whom the employee work, pursuant to contract, in consideration
of wage or salary. He could either be a natural or juridical person.
2. Employee - one who works for the employer, pursuant to contract, in consideration of
wage/salary. Only natural persons could be employees.

Coverage of Labor Laws:

1. Labor Statutes - laws promulgated by the national legislature
2. Judicial Decisions interpreting/applying labor statutes. The decisions of the court form part of
labor laws.
3. Rules and regulations promulgated by appropriate administrative agency.
4. Contracts ( made thru Collective Bargaining Agreement/Collective Negotioation Agreement) -
employment contract in accordance to labor laws.
Contract of Employee - Employer and the Specific Employee
CBA/CNA - Employer and the Group of Employees as represented by a labor union or
organization
5. Company policy/practice

A. Labor Statutes
 Labor Standards Law - provides the minimum terms and conditions of employment
which the employer must provide as matter of obligation, and the employees must
receive as a matter of right.
 Labor Relations Law - stabilizes the relations between the employer and empolyee
through CBA or CNA, or other modes of dispute settlement.
 Welfare Legislation - a law that provides benefits to the workers or their families, when
the workers are unable to work due to DODS (Death, Old age, Disability, or Sickness).
Q: Is welfare legislation similar to social legislation?
A: No. Welfare legislation is concerned with employer-employee relationship. On
the other hand, social legislation simply provides for the benefits of the people,
not necessarily employment. Thus, social legislation is broader than welfare
legislation.

B. Factors that determine employer-employee relations

 Power to Hire - if there is an existing activity in hiring a person, there is Em-Ee relations.
 Payment of Wage - if there is payment given in consideration of work
  Power to Dismiss
 Power of Control
Note: The first three are mere prima facie proof (presumptions only). The power of
control is a precise indication of employer-employee relations. This is because it is not
only concerned with the results but as well as to the means and methods on how to
achieve the intended results.
*Economic Dependency Test - also one of the factors (prima facie and disputable), in
determining Em-Ee relations. However, this is merely a supplemental indicator.
*Mere exclusivity is not a presumption if there is Em-Ee relations
*Non-exclusivity is not a presumption that there is no Em-Ee relatons

Q: Can the parties agree that there is no employer-employee relations between them,
where in fact there is such?
A: No. Employer-Employee relations is a question of law. It cannot be subject to mere
agreement of both parties.
*Independent Professional Contract (IPC) is sometimes used as a way to
circumvent labor laws. In this case, a mere meeting of the minds is needed.

Q: Are insurance agents employees of insruance company?

A: No. It is an issue decided by the court that insurance companies are merely expectant
of the results of the services rendered by the agents. There is no power of control. Thus, there is
no employee-employer relations between them.

Q: Is there an employer-employee relations between the school and its student-

assistsants?
A: No. But this is true only if the students are given real opportunity necessary to finish
their chosen courses under such arrangement.

Q: Is there an employer-employee relations between the taxi drivers and their operators?
A: Yes. 1. Drivers do not invest a single centavo; 2. Operator manages the business; 3.
The operator, as holder of the Ceretificate of Public Convenience, is entitled to exercise
supervision over the drivers, notwithstanding the material possession of the vehicle by the
drivers.

Q: Is there an employer-employee relations between the taxi drivers and their operators?
A: Yes. 1. Drivers do not invest a single centavo; 2. There are inspectors; 3. The CPC limits
the activities
 Q: Are labor contracts enforceable against the transferee of business?
A: General Rule: Labor contracts are not enforceable against the transferee of a
business. Exceptions:
i. When expressly assumed by the transferee
ii. When the principle of piercing of corporate veil is applicable

Q: What are other proof of Em-Ee relations?

A: Payslip, company ID, SSS contribution, Daily time record

Q: Why is it important to establish Em-Ee relations?

A: It confers right to the employee (property right). As a result, when there are disputes,
this relations must be proven, otherwise, the dispute/case may be dismissed.

C. Rights in Employer-Employee Relations:

1. For Employee: Rights of the Workers
Sources:
Constitution (Sec. 3, Art. XIII. 1987 Constitution)
1. Right to Self-organization - the right of the workers to form,
organize, and join a labor organization. It also includes the right to
assist in the formation of the organization. Lastly, it includes the
right not to join the organization.
2. Right to Collective Bargaining/Negotiation- the right to deal on the
terms and conditions of the employment. This must be done
collectively (as a group), never individually.
Bargaining - discussion on any matter, not contrary to law (private
sector)
Negotiation - discussion is limited in scope, within the civil service
law (Government)
3. Right to a Peaceful Concerted Activity - right to express grievances
without violence. Furtherance of the freedom of expression.
Examples are:
a. Strike - temporary stoppage from work due to a pending
labor dispute or if there is a deadlock in the collective
bargaining/negotiation. This is subject to some conditions.
b. Picket - marching to and fro within the company premises
in order for their grievances to be made known by the
employer.
 c. Slowdown - a reduction in the output due to a pending
labor dispute.
d. Boycott - the refusal of the employee to patronize the
product of the employer due to a pending labor dispute.
4. Right to Security of Tenure - this depends on the kind of
employment. These are:
a. Fixed-term/contractual - employed on a specific duration.
Sometimes called as project-based employment. Dismissal
must be upon just cause.
b. Probationary - one who is made to undergo a trial period.
During which, the employer must test if the employee is fit
during the trial period, which must not exceed with the
one that was provided for in the contract. If there is no
expressed stipulation for the duration, the probationary
period shall not exceed 6 months.
c. Permanent - After the completion of probationary period,
if the employee is still allowed to work, the status will be
elevated to permanent.
d. Regular - One whose work is necessary or desirable in the
usual business of the employer.
Example: In a hospital, the physician's work is
necessary and desirable. Thus, he is a regular
employee.

e. Casual - if the nature of work is not desirable. But after 1

year, it must be elevated to regular.
f. Seasonal - employed in a certain season only. Coincides
fixed-term employment.
g. Apprenticeship - the apprentice may be dismissed at anu
cause within 1 month only.
5. Right to Humane Conditions of Work - means that employees
must be treated as decent human beings. This is the reason for
"normal working hours" (any hour that does not exceed 8 hours).
It also includes a decent workplace, with ample sanitary condition,
ventilation, reasonable coffee break, among others.
6. Right to a Living Wage - must comply with the minimum wage
law, as classified by the RTWPB.
 7. Right to Participate in Policy-making Processes affecting their
rights - If the right of the employees is at stake, they must be
consulted.
2. For Employer: Management Prerogatives
1. To discipline employees
2. To transfer employees
3. To promote employees
4. To close business
5. To require productivity standards
6. To give bonus - an amount given to the employee for their good service and loyalty that
resulted to an increased income of the employer.
Limitations
 Law
 Contracts
 General principle of law

Non-diminution of Benefits
Once a benefit has been provided and it becomes a practice in the company, it must not
be removed. Exceptions:
 If the payment of benefits is through an erroneous application of law
 When the benefit is made dependent to the profitability of the business
and the enmployees are fully aware thereof

Job Contracting
Requisites:
 Contractor carries an independent business
Independent Business - undertakes the contract work on his own account, under his ownn
responsibility, according to his own manner and method, and free from control of the principal

 Contractor has substantial capital

Substantial Capital - in the form of tools, equipment and other items necessary to complete the
required work

Labor Only Contracting

Requisites
 Does not carry an independent business
 Does not have substantial capital
The workers recruited and placed are performing activities depending on the
business of the principal
Effect: The Labor only Contractor is considered an agent of the principal for purposes of
ensuring the payment of wages of the workers.
Hence, the indirect employer rule which makes it jointly and severally liable with the
principal

Labor Only Contractor Job Contractor

Provides services Provides manpower
merely provides the personnel to work for the undertakes to perform a specific job
employer

Mutual Protection of Labor and Capital

The employer has the right to chose who will be hired and who will be declined.
The right of the worker to sell his labor to persons that he may choose is in essence the same as
the right of an employer to purchase labor from any person as he choses.
They have an equality of right guaranteed by the constitution.
If the employer compels an employee to work against his will, it is involuntary servitude.
On the other hand, if the empoloyee compels the employer to give him work, that is opression.

THE LABOR CODE OF THE PHILIPPINES

Otherwise known as PD 442, enacted on May 1, 1974 and made effective on November 1 of the
same year. Ammendments are as follows:
 RA 10151
 RA 1036

It is a remedial legislation enacted in the pursuance of police power of the state. Thus, it can be
made to apply to contracts of employment already existing at the time of its enactment, it
being a limitation to the non-impairment of contracts. It applies to all workers unless provided
otherwise.
Objectives of the Labor Code:
1. Industrial Peace
2. Industrial Development
3. Promotion of interest of labor

Policy of State on Pre-employmenty

1. Promote and maintain a state of full employment
2. Protect working citizen
3. Free choice of available employment
4. Regular movement of workers
5. Regular employment of aliens
6. Strengthen the network of public employment
7. Ensure careful selection for overseas employment

Tripartism
This means that the employees and employer shall be both represented in the decision
of policy-making bodies of the government, especially on labor concerns.

Q: Should the courts or administrative bodies fix the terms and conditions of employment?
A:
Rule: No. This is to encourage a democratic method of regulating relations between the
two parties through free collective bargaining, with minimal government intervention.
Exception: When otherwise provided by the labor code, the RTWPB (for minimum wage).
Recruitment and Placement of Workers
It refers to any act of:
a. Canvassing
b. Enlisting
c. Contracting
d. Transporting
e. Utilizing
f. Hiring

It includes:
a. Referrals
b. Contact Services
c. Promising
d. Advertising
 ...locally or abroad whether for profit or not.

Any person or entity which promises for a fee, employment to 2 or more persons shall
be deemed engaged in the recruitment and placement.
This is the presumption created by law, hence, the burden is now shifted to the person
performing the act.

Who can validly perform recruitment and placement?

Only those who were issued with a license or an authority may engage in the
recruitment or placement activity.,

License
A document issued by the DOLE authorizing a person or entity to engage in recruitment
and placement activity as a public employment agency. Thus, it can charge placement fee from
a worker for services in securing employment.

Authority
A document issued by the DOLE authorizing a person or entity to engage in recruitment
and placement activity as a pubic employment agency. Thus, it can charge service fee from a
worker for services in securing employment. This is charged from the employer for actual work
rendered.

Validity of License and Authority

2 years unless cancelled, revoked, or suspended. License and authority is non-
transferrable and can only be used in the place indicated therein.

Contract Worker
A person working overseas under a valid employment contract (ammended by RA
10022). It is now termed as Overseas Filipino Worker, who is any person who is engaged in a
remunerated activity in a state where he/she is not a citizen, even in a vessel. It can be used
interchangeably with "migrant worker".

Name Hire
A worker who was able to secure employment to secure employment overseas on his
own without any assistance from a government agency.
Seaman
A person employed in a vessel engaged for maritime navigation.

Manning Agency
A person duly licensed by DOLE to recruit seafarers working in international waters

Qualifications for Overseas Employment

1. Citizenship
a. Filipino Citizen
b. Juridical persons with 75% authorized and voting stock owned by Filipinos
2. Capitalization
a. Single proprietorship - PhP 1,000,000.00
b. Corporation - PhP 1,000,000.00 paid up capital
3. Not disqualified by law
a. Travel agencies
b. Sales agents of airline company
c. Officers and members of an entity engaged in travel agency
d. Entity whose officers/members are also of a travel agency
e. With derogatory records
f. Employed with DOLE or government agencies involved in overseas employment
program, and their relatives up to 4th civil degree
4. Bond
a. To be filed with POEA (by cash or surety). Purpose: Any judgement against the
recruiter should initially be enforced against the bond filed with the POEA. It
shall be replenished when utilized, and failure to replenish shall cause the
suspension or cancellation of the license/authority. It shall be refunded when
the liencese or authority is surrendered, but only upon posting of a surety bond
of similar amount which is valid for 3 years.

Prohibited Practices in the Recruitment and Placement of Workers (Article 34, Labor Code)

Elements of Illegal Recruitment

1. The offender is a non-licensee or not a holder of an authority
2. Performs recruitment activities or prohibited activities
however...
RA 8042 (Migrant Workers Act) as amended by RA 10022
The following can also commit Illegal Recruitment:
 i. Non-licensee or non-holder of authority
ii. Licensee or holder of authority who:
1. Committed prohibited acts
2. Failed to deploy recruits
3. Failed to reimburse the expenses incurred by the worker who is
not deployed without his fault
PD 442 RA 8042 aa by RA 10022
Applies to all recruitments, whether local or Applies to overseas employment only
abroad
can only be committed by a non-licensee or can be committed by a licensee or holder
non-holder

Illegal Recruitment involving Economic Sabotage (Reclusion Perpetua)

1. If committed by a syndicate (3 or more persons)
2. If committed on a large scale (3 or more persons, either individually or as a group)

Direct Hiring for Overseas Employment

This practice is banned due to the following reasons:
o for the protection of the employee
o for the protection of the employer
o for compliance of the mandatory requirement on remittance

Mandatory Remittance for Overseas Employment

1. Seamen - 80% of basic salary
2. Construction - 80% of basic salary
3. Professionals whose contracts provide for free board and lodging - 70% of basic salary
4. Others - 50% of basic salary

Employment of Aliens
General Rule: Allowed
Exceptions:
1. In the following reserved areas of industry, employment of aliens are restricted:
a. Public Utility - e.g.: expressways, electricity, dam, airport
b. Mass Media - 60% must be owned by Filipinos
c. Advertising - 70 % must be owned by Filipinos
d. Financing - 60% must be owned by Filipinos
Exceptions to the Exceptions:
 1. When specifically authorized by the DOJ to employ technical personnel
2. When aliens are elected as officers of company in proportion to teir allowable
participation in the capital
3. When aliens perform technical and specialized work

Hiring in Zone-registered Enterprise

Rule: Foreign nationals may be hired in supervisory, technical, and advisory positions for a
period not exceeding 5 years.
Exception: If the majority of the capital stock is owned by foreign nationals, the following
positions may be retained beyond 5 years:
a. President
b. Treasurer
c. General Manager

Conditions before a non-resident alien can work in the Philippines:

 Determination of non-availability of Filipinos who are competent, able, and willing to
perform the desired qualities.
 Non-resident alien and his employer bind themselves to train at least 2 FIlipino
understudies (apprenticeship program).
 Issuance of an alien employment permit (by DOLE for a minimum period of 1 year unless
sooner revoked or cancelled).
 Cannot engage in any gainful employment other than for which he was issued a permit.

Is it needed for a resident alien to secure an alien employment permit?

No. Only non-resident aliens are required.
1. Resident aliens need not secure employment permit.
2. For enterprises registered in the preferred areas, alien employment permit may be
issued only upon recommendation by the proper agency concerned.

Human Resources Development

It is a process by which the actual and potential labor force is mnade systematically to
acquire greater knowledge, skills, and capabilities for the nation's sustained economic and
social growth.

Importance of HRD
HRD produces sklled and capable workers, resulting to better opportunities for
employment. When there is abundance of skilled workers, the industry can operate efficiently
and continously. Hence, economic and social growth is assured.
Manpower
The portion of the population which has the actual and potential capabilities to
contribute to the production of goods and services.

Is HRD exclusively intended for training workers?

No. HRD is not exclusive for training workers to serve employers, but it also intends to
train individuals to become entrepreneurs.

How is manpower development achieved?

It is achieved primarily through training programs conducted by the National Manpower
and Youth Council (now TESDA) or by private employers, associations or civic groups.
All manpower trainings must be coordinated with TESDA.

Training Schemes frequently undertaken by private employers

1. Apprenticeship Program
2. Learnership Program

Technical Education and Skills Development Authority (TESDA)

Created under RA 7796 to replace NMYC and other agnecies related to skills
development.

Dual-system Training
For trainings of technical and vocational education, they shall be carried out alternately
in:
a. School - theory
b. Production Plant - practice

Apprenticeship
A practical training on the job supplemented by related theoretical instructions,
involving trades and occupations certified by DOLE.
It is a training within employment with compulsory related theoretical instrutions
involving a contract between an apprentice and the employer.

What is an apprenticeable trade and occupation?

If it is a trade or occupation which requires for profeciency more than 3 months of
practical training on the job supplemented by related theoretical instructions on "highly
technical industries". These are industries that are engaged in the application of advanced
technologies.

Case:
Yakult Hotel would like to have an apprenticeship program for dishwashers. Will this be
allowed?
No. The work of of a dishwasher is not apprenticeable, because the skill can be learned in
just a short period of time. Hotel industry, further, is not a highly technical industry.

Conditions before an apprenticeship agreement is valid.

a. Prior approval by DOLE of the proposed apprenticeship program. If there is no such
prior approval, the worker is considered an employee.

Case:
Dagul was hired by Batotoy Computer Technologies, Inc. as an apprenticeship machinist
and electronic molder as evidenced by an apprenticeship agreement. The agreement was
enforced on the same day it was signed. The agreement was submitted later to DOLE. Did an
employee-apprentice relationship arise between the parties.

Apprenticeship Program is not Mandatory/Compulsory

Rule: Apprenticeship is Voluntary

Exception: Mandatory in the following instances...

a. When there is a national security or economic development concerns, the President
may require apprenticeship on areas where the shortage of trained manpower is critical.
b. When services of foreign technicians are utilized by companies, they are required to set
up an apprenticeship program.

Incentives to employers who undertake apprenticeship program:

a. Lower wage rate (75% of the existing minimum wage).
b. Additional tax deduction, subject to the following conditions:
 The program is DOLE-recognized
 Deduction shall not exceed 10% of direct labor wage
 Apprentices are pain of the prevailing minimum wage

Compensation of Apprentice
Rule: at least 75% of legal minimum wage
Exception: No compensation if...
a. Required by the school training program curriculum
b. Required for graduation
c. Required for board exam

Qualified for an Apprentice

1. At least 15 years old
2. Physically fit for the occupation he desires to be trained
3. Possesses vocational aptitude and capacity for the occupation as established by the
tests
4. Can comprehend and follow oral and written instructions

Apprenticeship Period
More than 3 months but shall not exceed 6 months.
There is a 1 month probationary period, during which the apprentice may be terminated
with or without just cause.

Is the employer required to hire the apprentice after the apprenticeship period?
No. Unless there is a stipulation to the contrary.

No. The dismissal of Daday is not lawful.

It is a well settled legal principle that no person shall deprived of life, liberty, and property,
without due process of law. This remains true in Philippine labor laws.

The 1 month probationary period, allowing dismissal with or without just cause, is not
applicable in this case, for Daday is no longer in apprenticeship, having been employed,
thereafter. She and SOGO hotel is now within employer-employee relationship. Thus,
Daday's right to due process is protected.
(security of tenure)
(OJT is already the probationary period)
This case, is a clear deprivation of due process for Daday. Thus, the dismissal is not lawful.

Valid causes for terminating apprentice by the Employer

1. Habitual absenteeism
2. Willful disobedience to rules or insubordination
 3. Disability of illness which incapacitates from working
4. theft or malicious destruction of company property
5. poor performance despite warnings
6. engaging in violence within the employer's premises

Valid causes for termininating apprenticeship by the apprentice

1. Substandard or deleterious working conditions
2. Repeated violations with the apprenticeship agreement
3. Cruel or inhuman treatment by the employer
4. Personal problems
5. Bad health

Hours of Work for the Apprentice

1. 8 hours - there can be overtime
2. The ratio of theoretical instruction to OJT is 100:2,000 hours/ 1 hour theory: 20 hours
practical

Learnership
A program approved by TESDA whereby persons are undergoing training in non-
apprenteceable trade. Learners may be hired if:
Learnership Apprenticeship
Pre-approved by TESDA
at least 75% of the minimum wage
Learnership Apprenticeship
the period does not exceed 3 months always beyond 3 months
there is a commitment to employ the learner there is no commitment to employ

Quitclaims
A release given to one man by another with respect to any action that he has against
him. Quitclaims are invlaid and void as a general rule. However, quitclaims are valid by way of
exception, if approved by the labor arbiter after determining the voluntariness in entering
thereof. After all, the labor code ancourages afforts toward amicable settlement of labor
disputes.
 Rule: QC are contrary to public policy. (Reason: Since the employer-employee
relationship is imbued with public interest, te applicable laws and regulations cannot be set
aside by the contracting parties through mere agreement.
Exception: Valid if voluntarily entered, represents a reasonable settlement, and not in
contraversion of law, morals, good customs, or public policy.
E2E: Quitclaims of future benefits are invalid.

Principle of Compassionate Justice in Labor

A response of the state to the reality that there is imbalance with labor and capital.
Supply of labor is greater than the demand for it. Thus, the courts are mandated to be vigilant
in protecting the rights of the workers.
Hence, in case of doubt, all labor legislations and contracts shall be construed in favor of
labor.
It does not mean, however, misplaced sympathy for the workers.

Is the principle of unjust enrichment applicable in labor law?

Solutio Indebiti or unjust enrichment
Negotioriam Gestio
No. It is not applicable.
In labor law, what is given by the employer to the employee is generally, cannot be
taken back, or else, it is considered as a violation of rule against non-diminution of benefits.

Special Wokers

Employment of Women
Are women workers allowed to work at night?
Yes. However, there is night work prohibition, in the following undertakings:
 Industral undertakings - 10 PM to 6 AM
 Commercial undertakings - 12 MN to 6 AM
 Agricultural undertakings - nighttime (6 PM-6 AM), unless she is given a
rest period of not less than 9 consecutive hours
Nevertheless, this prohibition is not applicable in the following:
 Work is necessary to prevent loss of life due to force majeure or calamity
 Urgent work to be performed on machineries to avoid serious loss to
employer
 Work is necessary to prevent serious loss to perishable goods
 She holds a responsible position (managerial, technical, health and
welfare)
  The nature of work required the manual skill and dexterity of women
 Night work is an established practice in the company
 When she is an immediate member of the family of the employer
o Facilities required to be provided for the safety and health of women employees
 Seats proper for women (and allow use of them if work is not affected)
 Separate toilet room and lavatories
 Dressing room
 Nursery
 Family planning services
o Stipulation against marriage/pregnancy
 Rule: Unlawful, whether as a condition for employment or for continued
employment
 Exeption: If it is necessary for a satisfactory job performance
 Reasons for the rule:
 It will drive women employees to enter into employees without
the benefit of marriage
 It is not conducive to the establishment of a family which is the
foundation of society
 Married women should be given the opportunity to pursue a
career and contribute their talents to national development
o Compensable hours Worked
i. All the time during which the employee is requied to be on duty
ii. All the time during which the employee is suffered or permitted to work
iii. Rest period of short duration (15-20 minutes)
iv. All the time of inactivity by reason of interruptions in work beyond
control of the employees

Normal Hours of Work

Rule: Not exceeding 8 hours a day for 6 days in a week.
Exception: 8 hours a day for 5 days in a week
Health personnel in city/municipality with a population of at least 1,000,000 or in a
medical facility with a bed capacity of at least 100.

Extension of Working Hours

DOLE MCN 1 authorizes employer to extend the working hours in case of power
interruptions to compensate for loss of productive hours.
But the employer has to pay the overtime pay.
Compensable Waiting Time
1. When it is an integral part of the work
2. When requied to wait
3. When on-call
However, the employee must be in the employer's premises or so close thereto
that he cannot use the time effectively and gainfully for his own purpose.

Overtime
It is the work rendered by the employee beyond the normal working hours of work fixed
by law or by employer's voluntary practice or policy.

Overtime Pay - It is the additional compensation for work done beyond the normal working
hours.

Premium Pay - It is the additional compensation for the work rendered on the days normally
the employee should not be working (holiday, rest day)

Reasons for Overtime Pay

1. Health reasons
2. To remedy unemployment

Can the employees be compelled to render overtime work?

Rule: No, because the employees have the right against involuntary servitude.
Exception: Allowed in case of emergency work
a. The country is at war, or there is a national or local emergency declared by
congress or president.
b. Necessary to prevent loss of life or property or danger to public safety due to
actual or impending calamity
c. Urgent work to be performed on machineries to avoid serious loss to the
employer
d. Necessary to prevent loss or damage to perihable goods
e. Completion of work started before the 8th hour

Employees not entitled to overtime pay

1. Government employees
2. Managerial employees
a. The primary duty consists in the management of establishment
 b. Customarily and regularly directs the work of two or more employees, exercising
discretion and independent judgement.
c. Hires or fires employees, exercising discretion and independent judgement.
The determination as to whether one is manager is not based on the title
given, but on the nature of his function.
3. Field personnel
4. Members of the family of the employer
5. Domestic helpers
6. In personal service of another
7. Paid by results

Offsetting of Overtime and Undertime

Is this allowed?
Rule: No. This is not allowed because the employee would be at a disadvantageous
position since he stands to earn on extra 25% or 30% on his overtime. But an employee cannot
have an undertime and overtime at the same time.

Basis of Computing overtime pay

Regular wage, which means the cash wage only, without deductions on account of
facilities provided by the employer.

FINAL TERM

Meal Period
-a part of the rules on "Humane Conditions of Work"
-it is the duty of the employer to give his employee not less than 60 minutes time off for their
regular meal (this depends on the preference of the employer/employee, upon agreement)

Q: Is meal period compensable or not?

A: No (Art. 85, LC).

Q: Can the meal period be shortened?

A: Yes, provided that:
- the work is non-manual or does not involve strenous physical exertion
- the establishment regularly operates in not less than 16 hours a day (2
shifting)
 - actual or pending emergencies or urgent work to be performed on
machineries, equipment, or installations to avoid serious loss to the
employer.
- when the work is necessary to prevent serious loss to perishable goods

Q: Is the shortened period compensable?

A: Yes.
R: Due to the employer's non-compliance with its duty to give his employees not
less than 60 minutes time off for their regular meal.

Q: If allowed, what is the duration of the shortened meal period?

A: Not less than 20 meals.

Coffee Break
The duration of coffee break is 5-20 minutes.

Q: Is it compensable
A: Yes. For being of short duration and the same could not be effectively and gainfully
utilized for his own purpose.
In fact, that short period of coffee break could even benefit the employer in terms of
productivity.

Rest Periods
The duration of rest period is also 5-20 minutes.

Q: Is it compensable
A: Yes. For being of short duration and the same could not be effectively and gainfully
utilized for his own purpose.

Night Shift Differential

It is applicable for the work performed between 10 in the evening until 6 in the morning
of the following day.
Rate base is not less than 10% of regular wage for each hour of work performed.
However, there are employees who are not entitled of NSD. They are the following:
a. Government employees
b. Managerial employees
c. Field personnel
d. Domestic helpers
 e. Persons in the personal service of another
f. Employees of retails and service establishments regularly employing not more
than 5 workers
i. Retail establishment are ones open to general consuming public for the
sale of goods that are commonly bought by end-users for personal or
household use.
ii. Service establishment are ones engaged in the sale of services to to
individuals for their own or household use.
Note: The practice of profession is niether retail or service

Weekly Rest Day

It is the duty of the employer to provide a rest period for an uninterrupted period of 24
hours after 6 consecutive working days.

Q: Is weekly rest day still required if the employer is not operating for profit?
A: Yes. Whether it is for profit or not, it is the duty of the employer to provide a weekly
rest day.

Q: Who determines the rest day of employees?

A: Generally, the employer shall make the schedule, subject to CBA and other rules.
However, the religious preference of the employee shall be respected. Nevertheless, if the
claim of the employer is well-founded, the choice of the employees at least twice a month and
the other rest days within the same month shall be scheduled by the employer.

Q: Can the employees be compelled to work on rest days?

A: Generally, no. However following are the exceptions:
i. During actual emergencies caused by calamities to prevent loss of
property
ii. Urgent work to be performed on machineries to avoid serious loss to the
employer
iii. Abnormal pressure of work due to special circumstances, and the
employer cannot resort to other measures
iv. To prevent serious loss to perishable goods
v. When the nature of work requires remployees to work continouosly for 7
days/week
vi. In order to avail of favorable weather or environmental conditions

Note: Special Holiday - no work, no pay

 Regular Holiday - no work, with pay

Q: What is the rate applied on rest days?

A: None. However, if required to work:
i. on rest day or special holiday - plus 30% premium pay
ii. rest day and special holiday - plus 50% premium pay
iii. rest day and regular holiday - plus 30% of 200% premium pay

Two Successive Regular Holidays

The employee may not be paid for both regular holidays if he absents himself from work
on that day immediately preceding the first holiday, unless he works on the first holiday.
Nevertheless, if such day immediately preceding the 2 successive regular holidays is a
rest day of the employee of if he he on leave with pay, the employee is entitled to holiday pays
for the 2 successive regular holidays if he worked on the day immediately preceding said rest
day or leave with pay.

Employees not entitled to a holiday pay

1. Government employees (Civil Service Rules)
2. Managerial employees
3. Field personnel
4. Domestic helpers (Kasambahay Law)
5. Persons in personal service of another
6. Retail and service establishments regularly employing less than 10 workers

Periodic Shutdown
All regular holidays are compensable. On the other hand, all special holidays are not
compensable.

Regular holidays vis-a-vis the school and faculty members who are paid by hour
Regular hoolidays are known to them as "no class days", hence, the faculty do not
expect to recieve payment for said unworked days when they signed their contract.

314 Factor Days - for monthly paid/6 days duty

This already accounts for all the 365 days of a year and leaves no days unaccounted for
all days of the year are paid, except the 61 Sundays (which are also the rest days).

263 Factor Days

 This already accounts for all the 365 days of a year and leaves no days unaccounted for
all days of the year are paid, if the work is five times a week.

Service Incentive Leave

A yearly leave benefit of 5 days with pay. To be entitled, the employee must have
rendered at least 1 year of service. 1 year of service means within 12 months, whether
continouos or broken, reckoned from the date the employee started working, including
authorized absences and paid regular holidays, except when the period is less than 12 onths as
per company practice and policy.

Not entitled to SIL:

 Government employees (Civil Service Rules)
 Managerial employees
 Field personnel
 Domestic helpers (Kasambahay Law)
 Persons in personal service of another
 Retail and service establishments regularly employing less than 10 workers
 Already enjoying an equivalent benefit
 Those enjoying vacation leave with pay for at least 5 days

Vacation Leave and Sick Leave

 These cannot be compelled from the employer, except in the government, because
these are mere results of the CBA or established employer practice or policy.
 Unless otherwise provided in the contract or company policy, must be claimed by the
employees within the year, or else they are considered waived.
 Not convertible to cash, because allowing conversion may tempt the employees to get
their money value and forego their much needed rest.

Is the employee who is paid by results entitled to holiday pay and SIL?
It depends. As to regular holiday and SIL, he is entitled to it because the Labor Code
does not mention a worker who is paid by results in the enumeration of those not entitled to a
holiday pay. As to special holiday however, he is not entitled unless he actually works.
How much?
If entitled, the amount shall be not less than the average daily earnings for the last
actual 7 working days, but not less than the statutory minimum wage rate.

Wages
 The remuneration or earnings, however, designated , capable of being expressed in
terms of money, whether fixed on time, task, piece or commission basis, which is payable by an
employer to an employee under a contract of employment, whether oral or written, for work
services done, or to be done, and includes fair and reasonable value of board, lodging, or other
facilities customarily furnished by the employer to the employee, determined by the DOLE.
Excluded from the coverage of "fair and reasonable value": Any profit to the employer
or to any person affiliated to the employer.

Basic Salary - the rate of pay for the standard work period (not more than 8 hours/day),
excluding additional payments (like bonus, OTs)

Fixing the rate of pay - May be stipulated by the employer and the employee, provided that it
does not go below the minimum statutory requirement.

Purpose or reasons for fixing the minimum wage

1. To protect laborers from sweat shop operators
2. To protect an enlightened employer from unfair competition

"A fair day's wage for a fair day's work"

Unless specifically provided by law, contract, practice, and policy, the employer is not
bound to pay wages to a worker who has not done any service.

Can a wage order be enjoined?

No. Art. 126 of the Labor Code provides that no preliminary injunction or permanent
injunction may be issued by the order of RTWPB.

Can a wage order prevent workers from bargaining for a higher wage?
No. There is still the freedom to bargain pursuant to Art. 125 of the Labor Code.

Powers and Functions of the RTWPB

1. To fix minimum wage in the region
2. To grant applicable exemptions from the applicable minimum wage
3. To issue wage orders
Note: All of the powers and functions of RTWPB are subject to NWPC guidelines.

Standards or Criteria for Fixing the Minimum Wage

 Demands for living wages
 Wage adjustment vis-a-vis consumer price index
  Cost of living and changes therein
 Needs of the workers and their families
 Need to induce industries to invest in the countryside

Facilities
Items by the employer to the employees. These are items of expense necessary for the
laborer and his family's existence and subsistence. If it is more beneficial to the employer rather
than the employee, this is not a facility, but a suppliment. Examples are:
1. Food 5. Educational expenses
2. Shelter 6. Medical expenses
3. Bills 7. Dental expenses
4. Transportation
- they may be a part of the wage and may be deducted from it. This is because if these
are not furnished by the employer, the employee would spend for them just the same.
However, the following must concur in order for it to be deductible:
 Customarily furnished by the employer
 Voluntarily accepted in writing by the employee
 The value thereof is fair and reasonable - to be determined by DOLE

Supplements
These are the special benefits given to a worker by the employer over and above his
ordinary earnings. These items are more beneficial to the employer than the employee because
if not given, the employee has an option to use them or otherwise.
They are not a part of the wage and not even deductible. However, once given it can no
longer be eliminated or diminished. This is for the reason that these are not the usual items the
worker would readily spend for. Examples are:
1. Emergency medical and dental services as required by law
2. Uniform allowance where the nature of business requires the wearing of the uniform
3. Transportation where it is incident to employment
4. Shares of capital stock in an employer's company
5. Paid leaves
6. Tools necessary for the business of the employer

Bonus
An amount granted to an employee for his industry and loyalty which contributed to the
success of the employer's business and made possible the realization of profits.
 This is not demandable from the employer as a matter of right. This is because the law
wants to avoid penalizing the employer for his past generousity. Nevertheless, the exception
applies when it has been a long practice or has beem given without any condition imposed.

Monthly Paid Employee Daily Paid Employee

One who is paid every day of the month
although he does not work regularly on his
rest days and holidays.
Formula:
Monthly Salary= Factor Days x Daily Rate / 12
months
One who is paid on the day he actually works,
except on unworked regular holidays.
Formula:
Daily Rate x Days of Actual Work

factor days (314 or 263)

Piecework Task Work

The emphasis is on the unit of work produced The emphasis is on the task itself and not in
terms of the units produced
Amount is paid per unit accomplished Amound is paid for doing a task

Service Charge
The proper distribution is 85% for all employees regardless of positions or title. The
remaining 15% answers the losses and breakages. What remains may be distributed to
managerial employees at the discretion of the employer.
If the employer will abolish the service charge, the share of the covered employees shall
be considered integrated in their wages by getting the net average share for the last 12 months.

Service Charge Tip

Collected by the management Not collected by the management
Involuntary on the customer Voluntary on the customer
To be divided among the rank and file Intended for the employee to whom it was
employees given

Time of Payment of Wage (Art. 103)

Rule: At least once every 2 weeks, at intervals not exceeding 16 days.
Exceptions:
a. Force majeure - if payment cannot be on time, the employer shall pay
immediately after such event, but in no case shall be with less frequency than
once a month.
 b. Task work - if the task cannot be completed in 2 weeks, in the absence of CBA or
arbitration award, paymens shall be at intervals not exceeding 16 days in
proportion to the work completed, and the final settlement is upon completion
of the work.
c. Place of payment of wage
i. Rule: At or near the place of undertaking
ii. Exception (in other places if):
1. Peace and order situations or calamities
2. Employer provides free transportation back and forth
3. Analogous circumstances, but the time spent in collecting wages
shall be compensable hours
4. Through bank, subject to the following:
a. Written permission from the majority of employees
b. There are at least 25 employees in the establishment
c. Bank is located within 1 km radius from the workplace

Q: Can payment of wages be done in clubs, drinking, and gambling places?

A: No. Except when the employee is working on the same place.

d. Form of Payment of Wage

Rule: Only in legal tender, even if any other means as requested by the employee.
Exceptions: Bank checks, postal checks, money orders, subject to the ff:
i. Such is customary manner of payment prior to the labor code
ii. Stipulated in the CBA
iii. There is a facility for encashment within a radius of 1 km, the employer
does not receive any pecuniary benefit

e. Whom to pay the wage

Rule: Direct to the employee
Exceptions:
i. Force majeure, rendering payment impossible as determined by DOLE
secretary, payment to other person under written authority given by the
employee
ii. Death of worker, payment shall be made to the heirs, through the DOLE
Secretary or his representative

Interference in the disposal of wage - it is prohibited on the part of the employer to interfere
the employee on how to utilize his wage.
Deductions from Wages
Rule: Not allowed
Exceptions:
1. Mandatory deductions under the law
2. Withholding tax (deducted from the salary of the employee)
3. Reimbursement of insurance premium (provided that the employees agreed in
writing to secure the insurance)
4. Union dues
5. Payment to 3rd person
6. loss/damage to tools
7. As disciplinary measure
8. Agency fee
9. Debt due to the employer. Under the following conditions:
a. Employee is clearly shown to be responsible;
b. Employee is given a reasonable opportunity to explain;
c. Amount to be deducted is fair and reasonable and not exceeding the actual
loss; and
d. The amount deducted does not exceed 20% of the employee's wage in a
week.

Note: Employees are required to keep documents that are related to the
wages of the employer:
o Payroll
o Time Record
o (these must be kep within 3 years from the last entry - the
prescriptive period for quitclaims, etc)

Wage Distortion
A situation where an increase in the prescribed wage rates results in the elimination or
sever contraction of intentional quantitative in wage or salary rate between and among
employee groups in an establishment as to effectively obliberate the distinctions based on
skills, length of service or bases of differentiation.
Formula to remedy:
minimum wage = n% x prescribed increase =distortion
adjustment of actual salary
 How to correct? - Negotiation between the employer and the union

Is it legally required that in rectifying distortion, the gap which had previously existed be
restored in precisely the same amount?
No. Restablishing a substantial gap is enough.

Manner of settling wage distortion disputes

With CBA Without CBA
It shall be resolved through the grievances It shall be resolved through the NCMB
procedure. (National Conciliation and Mediation Board).
If remains unresolved, then through voluntary If it remains unresolved, then referral to the
arbitration. NLRC.
-Appeallable to NLRC Appellable to the CA
-Appeallable to the CA on pure questions of
law

Right to Self Organization

- one of the constitutional rights of the workers

When can the right to self organization be invoked?

This can be excercised the moment employer-employee relationship sets in. The right to self-
organization is the rule, while the exclusion is the exception.

Coverage:
1. To form, join, or assist in the formation of a labor organization of their choosing for purposes
of collective bargaining through representatives of their own choosing (includes the right not to
join).
2. To engage in a lawful concerted activities for purposes of collective bargaining or for their
mutual aid or protection.

Who are entitled to this right?

1. For purposes of CBA:
 Employees in industrial, commercial, or agricutural undertaking
 Employees in religious, charitable, or educational institutions (for profit or not)
 Employees in government corporations organized under the corporation code
 Employees in the civil service in general (to be registered with the CSC and the DOLE)
  Aliens with working permits (they must have first an Alien Working Permit and it is
subject to reciprocity rule: if Filipinos in his home country is also allowed to excercise
this)
2. For mutual aid or protection, other than CBA
 Ambulant, intermittent, and itinerant workers
 Self-employed
 No definite employers

Who are ineligible to unionize?

1. Managerial Employees
2. Supervisory Employees, if they are together with the rank and file employees
3. AFP, PNP, Firemen, and Jailguards
4. Confidential Employees
5. Members of a cooperative
Manager Supervisor
One vested with powers of prerogatives to lay One who in the interest of the employer
down and execute management policies, effectively recommends such managerial
and/or hires, transfers, suspends, or discipline actions, if the excercise of such authority is
employees not merely routinely or clerical but requires
the use of independent judgement.

Are aliens eligible to unionize?

No. They are prohibited from all trade union activities. Exceptions are:
 Working in the Philippines
 With valid DOLE permits
 Subject to reciprocity rule

Labor Organization Workers' Association

A union or association of emploees An association of workers for mutual

within exists in whole or in part, for the aid and protection of its members for
purpose of collective bargaining any legitimate purpose other than
collective bargaining

When is a labor organization becomes legitimate?

It becomes legitimate once registered. Through registration, it acquires personality as well as
the rights and privileges granted by law to legitimate labor organization.
Purpose of Labor Union: To have a collective strength for the protection of the workers against
unjust exactions of the employer and for securing better terms and conditions of employment,
which could not be possible to an individual acting alone.

National Union Local Union

Referred to as a federation
A labor organization with at least 10
local unions or chapters or affiliates,
each of which has its own identity
Referred to as a chapter
An association of workers for mutual
aid and protection of its members or
for any other purpose other than a
collective bargaining

Independent Union: A labor organization operating at the enterprise level whose personality is
derived through an independent action for registration.

Affiliate: An independent union affiliated with a national union or federation.

Industry Union: A group of legitimate labor organizations operating within an identified industry
and organized for collective bargainin within an industry.

Q: Is the registration requirement for labor organizations a limitation onn the right to
assemble?
A: No. Registration is merely for the acquisition of legal personality. Individual employees have
the right to a peaceful concerted activity/to assemble.

Commencement of legal personality of labor organization

 Upon issuance of the certificate of registration
 Upon issuance of the certificate of creation charter/local per RA 9841 (An aAct
Strengthening the Workers' Constitutional Right to Self Organization)
Where to file the application for registration of labor organization?
 In the regional office where the applicant principally operates.
Where to file the notice to change of name of labor organization?
 With the Bureau of Labor Relations or the regional office where the labor organizations'
certificate was issued?
When to register a labor organization?
 Anytime. Even during the life of a CBA.
Requirements for the Registration of a Labor Organization
1. Names and addresses of the officers, principal address of the labor organization, and
minutes of the organizational meeting
2. Names of members comprising at least 20% of the employees in the bargaining unit
3. 2 copies of annual financial report, if existing for more than 1 year, except if not
collecting any amount
4. 4 copies of constitution and by-laws, including the minutes of their adoption and the
participants therein within 30 days
Additional Requirements:
1. Proof of affiliation of t least 10 locals/chapters
2. Names and addresses where the locals/chapters operate

Grounds for the denial of the application for registration of a labor organization:
1. Non-compliance of the requirements of registration
2. Non-compliance with the requirements on the provisions of the CBL
3. Engaging in "cabo system" or other illegal activities

Strict enforcement of the requirements for registration: Once a labor organization attains
legitimacy, it begins to possess the rights and privileges granted by law.

Grounds for cancellation of union organization

1. Misrepresentation, false statement, fraud in the CBL
2. Failure to submit the requirements within 30 days from ratification of the CBL
3. Misrepresentation, false statement, fraud in the election of officers
4. Misrepresentation, false statement, fraud in the annual report
5. Acting as labor contractor/cabo system
6. Entering into CBA below the minimum requirement
7. Asking/accepting attorney's/negotiation fees from the employer
8. Checking off special assessments without authority
9. Failure to submit the list of members to the BLR once a year
10. Failure to comply additional requirements of national union/federation
11. Violations of rights and conditions of membership
12. Engaging in illegal strike
13. Failure to submit BLR a copy of the CBA within 30 days from signing
Note: No collateral attack is allowed!
Rights of legitimate labor organizations
1. to act as representative of its members for purposes of CBA
2. to be certified as the exclusive representative of all the employees in a bargaining unit
for purposes of CBA
3. to be furnished, within 30 days, an audited financial statements, after its certification as
the sole and exclusive CBA representative. If denied, this constitute ULP. (must be done
upon writing)
4. to own property for the use and benefit of the labor organization and its members
5. to sue and be sued
6. to undertakle activities not contrary to law
7. exemption from tax on income and property, used for lawful purposes
8. to file a notice of strike due to ULP (unfair labor practices)
9. to collect reasonable fees

Disaffiliation of a labor union from a mother union

Rule: A labor union may disaffiliate from the mother union only during the freedom
period of the CBA (60 days before the expiration of the CBA).
To disaffiliate 30% vote of the members is required.

Exception: Notwithstanding the freedom period, disaffiliation may be done if there is a

shift of allegiance on the part of the majority of the members of the union. However,
the CBA continues to bind the members of the new or disaffiliated and independent
union up to the expiry of the CBA.

Q: What if there is no CBA, but the constitution of the mother union requires 3 months
prior notice of intention to withdraw or disaffiliate?
A: The constitutional right to self-organization prevails.

Principle of Shared Responsibility and Mutual Respect

The preservation of industrial peace is the mutual responsibility of the employer and the
labor organization.
In an unorganized estabilishment, labor management committees may be formed
voluntarily by the employees for the purpose of industrial peace.

Rights of members of labor organization (Art. 250)

1. Against arbitrary and excessive fees
2. Full and detailed reports of financial transactions from union officers
3. To elect officers by secret ballot at 5 years intervals
 4. To determine by secret ballot any question of major policy affecting the entire
membership, unless practically the board of directors may decide in behalf of
membership
5. To be informed (CBL, CBA, rights and obligatioins under the labor laws)
6. To report violations of rights and conditions of membership

Membership in a labor organization

Rule: Cannot be compelled upon the employee (right to self-organization)
Exception: By virtue of "closed shop" or "union shop" clause in the CBA
Closed Shop: where the employer binds to hire only members of the contracting union
as a pre-condition and continuing condition for employment.
Union Shop: Employer can hire non-union members but must become members after
some period in order to retain employment.
Yellow Dog Contract: A condition for employment imposed by the employer to the
affect that an applicant shall not join a labor union or shall withdraw from one which he
belongs. This is an ULP for violating the right to self organization.

Admission of membership in a labor organization

Rule: No person has absolute right to membership in a trade union because a union has
a right to select its members. Nevertheless, while a union is generally free to select its own
members, it cannot impose arbitrary and discriminatory conditions for admission to
membership.
Exception: When there is a closed shop agreement, the union may be compelled to
admit a person in case of its unreasonable refusal to do so. This is so because in such case,
union membership is impressed with public interest.
Be it as it may, while an employee is given the right to join a labor organization, such
right should be ascertained in a manner that should not spell destruction to the organization.
Loyalty is a necessary to obtain the full extent of a union's cohesion and integrity. Thus, a union
may require its members not to affiliate with any other labor organization and consider the
violation thereof as a reasonable cause for separation.
Inherent in every labor organization is the right to self-preservation. Hence, when the
members thereof sow seeds of dissent and conflict within the union, when they seek
disintegration o the very union which they belong.

BAR: Are the employees of the cooperative eligible to unionize?

Answer: If the employees are also members, they cannot. But if they are merely employees,
they can.
What is the justification of a closed shop agreement?
 It is an accepted rule that the will of majority shall prevail over the minority. Otherwise,
no employer would ever enter into any compromise with the union knowing that the minority
will always dishonor it.

Ground for expulsion of member from the union

1. For causes specified in the constitution and by-laws, provided that due process of law is
observed
2. Participation in any irregularity in the approval a resolution authorizing payment of
compensation to union officers

Is disloyalty to the union leadership a ground for separation from the union?
No. It cannot be placed the same footing as disloyalty to the union which is a ground for
separation. However if such disloyalty is tantamount to disloyalty to the organization, it may be.

Can a member get out from a union?

Yes, because it is within his right to self-organization. However, it may result in the loss of his
employment (given the CBA).

Disqualification/appointment as union officer

1. Convicted of crime involving moral turpitude
2. Not an employee in the bargaining unit

Union Fees
Rule: This cannot be deducted from the employee's wage without their consent (written)
Exceptions:
1. When there is check-off
2. Reasonable assessments in connection with mandatory activities such as klabor
education and research

What is check off?

Where an employer collects union dues from the employee's wage and remit the same
to the union. This must be initiated by the bargaining representative. The obligation to pay
union dues is co-terminus with his membership. This goes the same in the case of the
employee's affiliation with the mother union. However, if the union continues to represent
without affiliation with the mother union, check-off is still allowed.
Payment of Attorney's Fees
Rule: This cannot be imposed on any individual members of the contracting union even if such
arose from CBA. It must be charged against the union fund.
Exception: If incurred due to recovery of wages, the amount is limited to 10% of the
collected/recovered wage.

Rules on Collection and Disbursement of Funds of Labor Organizations

1. authorized by the CBL
2. with receipts
3. only for authorized purposes adopted by majority members
4. income must be recorded showing its source
5. compensdsation of officers must be paid in accordance with the CBL
6. treasurer must render an accounting
a. at least 1 year within 30 days after the close of the FY
b. as required by written resolution
c. upon vacating his position
An action involving funds of the organizations shall prescribe in 3 years from submission
of the annual financial report to DOLE, or from the date said annual report should have been
submitted as required by law, whichever is earlier.

Certification Election
It is the process of determining, through secret ballot, the sole and exclusive bargaining
representative of the employees. It is considered as the fairest and most effective way of
determining which labor organization can truly represent the labor force. It is considered as the
sole concern of the employees.

Who can file a petition for CE?

1. A legitimate labor organization
2. The employer when requested to bargain collectively

The employer cannot question the CE because it is the sole concern of the employees.
Excptions are:
1. there is a questionable Em-Ee relations
2. the petitioning union has questionable personality
Opposition may be filed with the Mediator-Arbiter of DOLE within its jurisdiction. If two or
more petitions against the CE of the same bargaining unit are filed in one regional office, it shall
be automatically consolidated. Moreover, if they are filed ib different regional offices, the RO
which first acquires jurisdiction shall exclude the others. However, the proximity to the place of
work of the employees prevail. Finally, it must be executed in writing and under oath.

What is an organized establishment?

 It is a company or workplace where there is a certified bargaining representative for
employees. If none, it is an unorganized establishment.

Requirements for filing a CE:

1. In organized establishment, the petition must contain the signature of at least 25% of all
the employees before the Mediator-Arbiter can automatically order a CE
2. In unorganized establishment, it shall automatically be conducted by the Mediator-
Arbiter upon filing of a legitimate labor organization

Note: the Med-Arbiter may excercise his discretion to call for a CE if the 25% requirement is not
achieved. Otherwise, it becomes mandatory.
Note: Final order is required to cancel a registration.