2022 San Beda Red Book Labor Law

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2022 San Beda Red Book - Labor Law
College of Law (Arellano University)
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LABOR LAW AND SOCIAL

LEGISLATION
MARYJOY R. CANDELARIO
Subject Chair
JANYN MARIELLAMONTEALEGRE
Assistant Subject Chair
ANA MARIA BEATRICEG. DIMAILIG

Subject Electronic Data Processing
SUBJECTHEADS
MICAH MARIE F. NAADAT Labor Standards

JENICAANNE S. TAVARES Labor Relations
MAY D. GARCIA Socia[ Legislation
SUBJECT MEMBERS
KYLELIVEN DAVE ANDRINO MUJAHEEDABDUL JAMIL S. MAMBUAY

ROMARFAJARDO ARAN KHRISTIANA. MENDOZA
JUDESSA GARING MICHELLEANN B. ORENDAIN
FLORENCEMALAPITAN JOSE ARTUROA. TOPACIO III
ADVISERS
ATTY. JOYRICH M. GOLANGCO

ATTY. PETER JOEY USITA

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TABLE OF CONTENTS
lAW
POLITICALAND INTERNATIONAL
I. BASIC CONCEPTS UNDER THE 1987 CONSTITUTION .................... 02
A. Declaration of principles and State policies..................................... 02
B. National territory ........ .... ....... .... ........ .... ......... ........ ..... .......... ....... .. 03
C. Separation of Powers ............................ ....... .......... .............. ........ .. 04
D. Checks and balances .. ..... ....... ....... .. ..... ....... .......... .... .... ......... ....... 05
E. State immunity ................................................................................ 05
F. Delegation of powers ...................................................................... 08
G. Fundamental powers of the State .................................................. 08
II. GENERAL PRINCIPLES OF TAXATION............................................... 11

A. Definition, characteristics and purpose of taxation ......................... 11
B. Power of taxation as distinguished from police power and eminent
domain............................................................................................. 13
C. Scope and limitations of taxation .... ...... ....... ..... .... ...................... .... 15
D. Requisites of a valid tax ................................................................. 26
E. Tax as distinguished from other forms of exactions ....................... 27
F. Kinds of taxes .. .......... ........... ..... ....... ...... ........ ........ .... .... ..... ....... .... 30
G. Doctrines in taxation ....................................................................... 31
Ill. LEGISLATIVE DEPARTMENT.............................................................. 41

A. Legislative Power ........................................................................... 41
B. Houses of Congress, compositions and qualifications ....... ............ 42
C. Legislative privileges. inhibitions. and qualifications ...... ..... ...... ..... 45
D. Quorum and voting majorities ........................................................ 46
E. Discipline of members .. ....... ..... ....... ....... ...... .... ....... ................... .... 46
F. Process of law-making ................................................................... 47
G. Legislative inquiries and oversight functions .................................. 48
H. Power of impeachment................................................................... 52
I. Powers relative to appropriation measures .. ........... .... ................ ... 53
J. Rules of succession ....................................................................... 53
K. Initiative and referendum ..... .... ....... ..... ..... ..... ....... ......... ..... ............ 56
IV. EXECUTIVE DEPARTMENT................................................................. 57

A. Qualifications, election. and term of the President and Vice
President ..... ....... ........ ........... .... ........ ....... ............. ..... .......... ........ .. 57
B. Privileges. inhibitions, and disqualifications .. .......... .... ...... ..... ........ 58
C. Powers of the President ........ ........ .... ........ ...... .................... ....... .... 60
D. Power of control and supervision ................................................... 64
E. Emergency powers .... ..... ....... .... ....... .............. ........ ........ ................ 65
F. Military powers ............................................................................... 66
G. Executive clemency ...... ......................... ....... .............. .................... 68
H. Diplomatic powers .......................................................................... 70
I. Powers relative to appropriation measures .................................... 71
J. Rules of succession ....................................................................... 71
V. JUDICIAL DEPARTMENT ..................................................................... 72

A. Judicial Power .. .......... .... ....... ....... ............. ....... ........ ............. ....... .. 72
B. Judicial Review ........... ........... .............. ...... ....... ............ .................. 73
C. Judicial independence and fiscal autonomy ............ ..... ......... .... ..... 75
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D. Appointments to the judiciary ......................................................... 76

E. The Supreme Court (composition, powers, and functions) ............ 78
VI. CONSTITUTIONAL COMMISSIONS ..................................................... 79
A. Common provisions ........................................................................ 79
B. Powers, functions, and jurisdiction ................................................. 80
C. Composition and qualifications of members ................................... 82
D. Prohibited offices and interests ...................................................... 82
E. Judicial review of final orders, resolutions, and decisions of
Constitutional Commissions ........................................................... 83
VII. BILL OF RIGHTS ........ ........................................................................... 84
A. Due process .................... .......................... ........... ........... ............... 84
B. Equal protection .............................................................................. 88
C. Arrests, searches and seizures ...................................................... 90
D. Privacy of communications and correspondence ........................... 95
E. Freedom of speech and expression ............................................... 96
F. Freedom of religion ............................................................. 102
G. Liberty of abode and right to travel ................................................. 105
H. Right to information ........................................................................ 106
I. Eminent Domain ................................................... ...... ....... ......... .... 107
J. Right to Association ........................................................................ 109
K. Non-impairment of contracts ...................... ............. ...... ...... ........... 110
L. Free access to courts and adequate legal assistance ................... 110
M. Rights under custodial investigation ............................................... 111
N. Rights of the accused ................... ... .............. ........ .......... .......... ..... 113
0. Right to speedy trial and speedy disposition of cases .................... 119
P. Right against self-incrimination ...................................................... 120
Q. Right against double jeopardy ........................................................ 121
R. Right against involuntary servitude ................................................ 123
S. Right against excessive fines, and cruel and inhumane
punishments ................................................................................... 123
T. Non-imprisonment for Debts .......................................................... 124
U. Ex post facto laws and bills of attainder ......................................... 124
V. Writs of habeas corpus, ka/ikasan, habeas data, and amparo ....... 125
VIII. CITIZENSHIP ......................................................................................... 128
A. Who are Filipino Citizens ................................................................ 128
B. Modes of acquiring citizenship ....................................................... 129
C. Loss and re-acquisition of Philippine citizenship ............................ 130
D. Dual citizenship and dual allegiance .............................................. 131
IX. LAW ON PUBLIC OFFICERS ............................................................... 132
A. General principles .......................................................................... 132
B. Kinds of appointment...................................................................... 133
C. Disabilities and inhibitions of public officers ................................... 137
D. Powers and duties of public officers ............................................... 140
E. De facto vs de jure officers ............................................................. 141
F. The Civil Service ............................................................................ 142
G. Accountability of public officers ...................................................... 148
X. ADMINISTRATIVE LAW........................................................................ 161
A. General principles .......................................................................... 161
B. Powers of administrative agencies ........................ .......... ........ .... ... 164
C. Doctrine of Primary Jurisdiction and exhaustion of administrative
remedies......................................................................................... 171
XI. ELECTION LAW.................................................................................... 173
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A. Suffrage .......................................................................................... 173

B. Candidacy ...................................................................................... 182
C. Campaign ....................................................................................... 190
D. Remedies and Jurisdiction ............................................................. 194
XII. LOCAL GOVERNMENTS .... .... . ..... .... .... .... .... . 200
A. Principles of local autonomy ......... ...... .. ...... .......... ......... .... .... ........ . 200
B. Autonomous regions and their relation to the national government 202
C. Local government units ... .............................................................. 204
D. Local taxation ................................................................................. 217
XIII. NATIONAL ECONOMY AND PATRIMONY.......................................... 225

A. Regalian Doctrine .. .. .... .. .... .. .... .... .... .... .. .. .... .... .......................... ..... 225
B. Exploration, development, and utilization of natural resources ...... 226
C. Franchises, authorities, and certificates for public utilities ........... .. 226
D. Acquisition, ownership, and transfer of public and private lands .... 227
E. Practice of professions .. ..... .. .... ....... .. ........ ........... ..... ........... ....... ... 228
F. Organization and regulation of private and public corporations ..... 229
G. Monopolies, restraint of trade, and unfair competition ................... 229
XIV. SOCIAL JUSTICE AND HUMAN RIGHTS ............................................ 229

A. Concept of social justice .... .. .... ....... .... .. .... .... ........ .... .... ..... .... ......... 229
B. Economic, social, and cultural rights .............................................. 230
C. Commission on Human Rights ....................................................... 230
XV. AMENDMENTS OR REVISIONS OF THE CONSTITUTION ................ 231

A. Procedure to amend or revise the Constitution .............................. 231
XVI. EDUCATION, SCIENCE, TECHNOLOGY, ARTS, CULTURE, AND
SPORTS.................................................................................................. 233
A. Academic Freedom ........... ..... .. ...... .......... .... .. ......... .... .... ..... ...... .... 233
B. Constitutional tax exemptions for certain educational institutions .. 234
XVII. PUBLIC INTERNATIONAL LAW .......................................................... 234

A. Concepts ........................................................................................ 234
B. Relationship between international and national law ... ..... .......... .... 235
C. Sources of obligations in international law...................................... 236
D. Su~ec~ ......................................................................................... 238
E. Requisites of Statehood .. .. .... ............... ....... ...... ......................... .... 241
F. Jurisdiction of states........................................................................ 242
G. General principles of treaty law....................................................... 248
H. Doctrine of state responsibility........................................................ 252
I. Refugees ..... ..................... ............ ................... ..... ..... .... ...... ....... ..... 254
J. Extradition ....................................................................................... 256
K. Basic Principles of International Human Rights Law....................... 259
L. Basic Principles of International Humanitarian Law........................ 262
M. Law of the Sea ................................................................................ 268
N. International Environmental Law .................................................... 277
LABORLAW AND SOCIAL LEGISLATION

I. GENERAL PRINCIPLES .. .... .... ...... .......... ...... ..... ........ ..... .... ..... ......... .... 280
A. Basic policy on labor .. .... ...... ........ ...... .. ...... ......... ..... .... ..... .... ......... 280
B. Construction in favor of labor ......................................................... 281
C. Burden of proof and quantum of evidence in labor cases .............. 281
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D. Legal basis under the 1987 Constitution, Civil Code, and Labor
Code ............................................................................................... 281
II. RECRUITMENT AND PLACEMENT ... .......... ..... ................. ...... ............ 284
A. Recruitment and placement (Labor Code and R.A. No. 8042, as
amended by R.A. No. 11199) ......................................................... 284
B. Employment of non-resident aliens................................................. 295
Ill. LABOR STANDARDS ........................................................................... 299
A. Conditions of employment .............................................................. 301
B. Wages ............................................................................................ 315
C. Leaves ............................................................................................ 322
D. Special groups of employees ......................................................... 329
E. Sexual harassment in the work environment ..... ...... ...... .............. .. 345
IV. SOCIAL WELFARE AND LEGISLATION ............................................. 349
A. Social Security System Law (R.A. No. 8282, as amended by R.A.
No. 11199) ....... ........ ...... ...... .... ..... ...... ...... ............ ..... ............ ...... ... 349
B. Government Service Insurance System Law (R.A. No. 8291) ....... 357
C. Limited Portability Law (R.A. No. 7699) ... .......... ............ ................ 362
D. Disability and death benefits ...... ....... ........... .......... ..... ....... ........ .... 363
V. LABOR RELATIONS............................................................................. 367
A. Right to self-organization ....... .......... ..... ...... ....... ...... ...... ......... ...... .. 367
B. Legitimate labor organizations ..... ...... ...... .......... ................ ......... ... 372
C. Bargaining representative .. ........... ..... ...... .............. ..... ....... ............ 378
D. Collective bargaining ...................................................................... 385
E. Unfair labor practices ........ .......... ...... ..... .. ...... ...... ....... .............. ..... 390
F. Peaceful concerted activities .. ........... ...... .... ............. ............. .. ....... 394
VI. TERMINATION OF EMPLOYMENT...................................................... 402
A. Security of tenure ...... ...... ...... ........ ...... ...... ............ ..... ...... ......... ..... 402
B. Termination by employer ................................................................ 411
C. Termination by employee ............................................................... 423
D. Preventive suspension ................................................................... 426
E. Floating status ......... ...... ..... .......... ..... ..... ............ ....... .... .......... ..... .. 426
F. Retirement .............................................................................. ........ 426
VII. MANAGEMENT PREROGATIVE .......................................................... 428
A. Discipline ..... .... .......... ...... ...... ......... ...... .............. ...... ..... .......... ....... 428
B. Transfer of employees .................................................................... 429
C. Productivity standards ........ .......... ...... ...... ........... ...... ....... ....... ....... 429
D. Bonus ............................................................................................. 430
E. Change of working hours .. ........... ..... ..... ...... ............. ...... ......... ...... 430
F. Bona fide occupational qualifications ............................................. 430
G. Post-employment restrictions ......................................................... 431
H. Clearance procedures .................................................................... 432
I. Limitations on management prerogative; police power of the State 433
VIII. JURISDICTION AND REMEDIES ......................................................... 433
A. Mandatory conciliation-mediation, SENA ....................................... 433
B. Labor Arbiter .......... ..... ...... ........ ....... ..... ........ ........ ...... ..... .......... ..... 435
C. National Labor Relations Commission ........................................... 442
D. Judicial review of labor rulings ........ ..... ........ ........ ........... ......... ..... .. 443
E. Bureau of Labor Relations............................................................... 444
F. National Conciliation and Mediation Board .................................... 445
G. POEA ............................................................................................. 446
H. DOLE Regional Directors ............................................................... 448
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I. DOLE Secretary ............................................................................. 451

J. Grievance machinery ..................................................................... 451
K. Voluntary arbitrator ........ ...... ......... ..... ... ..... ..... .................. ..... ......... 453
L. Prescription of actions ············································;······················· 454
CRIMINAL LAW
I. PRINCIPLES OF CRIMINAL LAW .. ....... ...... ....... ........ .... ..... ..... ........ ... 459
A. General Principles ....... ....... ..... ........ ......... .............. ............ .... ........ 459
B. Felonies ....... ...... .......... ...... ...... ........ ...... ........ .......... .... .............. ..... 465
II. CRIMES UNDER THE REVISED PENAL CODE .................................. 542
A. Crimes against national security and laws of nations ..................... 542
B. Crimes against the fundamental law of the State............................ 556
C. Crimes against public order ........... ........ ....... .......... ............ ....... ..... 567
D. Crimes against public interest ........................................................ 591
E. Crimes against public morals ..... ........... ....... ........... ............... ........ 609
F. Crimes committed by public officers ............................................... 611
G. Crimes against persons .................................................................. 631
H. Crimes against personal liberty and security .................................. 649
I. Crimes against property ....... ..... .......... ..... .. ..... .................. ............. 663
J. Crimes against chastity .................................................................. 687
K. Crimes against the civil status of persons .. ........... ..... ............ ........ 696
L. Crimes against honor ..... ....... .... ........... ............ .... ................ .......... 699
M. Quasi-offenses ............................................................................... 706
Ill. SPECIAL PENAL LAWS ...... ...... .... ........ ................. ........ ...................... 709
A. Anti-Child Pornography Act of 2009 (R.A. No. 9775) ..................... 709
B. Anti-Fencing Law of 1979 (P.D. No. 1612) ..................................... 710
C Anti-Graft and Corrupt Practices Act (R.A. No. 3019, as amended) 712
D. Anti-Hazing Act of 2018 (R.A. No. 8049, as amended) .................. 717
E. Anti-Money Laundering Act of 2001 (R.A. No. 9160, as amended) 719
F. Anti-Photo and Video Voyeurism Act of 2009 (R.A. No. 9995) ...... 721
G. Anti-Plunder Act (R.A. No. 7080, as amended) ....... .... ...... ............. 722
H. Anti-Torture Act of 2009 (R.A. No. 9745) ....................................... 724
I. Anti-Trafficking in Persons Act 2003 (R.A. No. 9208, as amended) 726
J. Anti-Violence Against Women and their Children Act of 2004 (R.A.
No. 9262) ...... ...... ............. ..... ..... .............. .... ..... ..... ............. ....... ..... 728
K. Anti-Wire Tapping Act (R.A. No. 4200) .......................................... 732
L. Bouncing Checks Law (B.P. Big. 22) ............................................. 735
M. Comprehensive Dangerous Drugs Act of 2022 (R.A. No. 9165, as
amended) ....... ..... ......... ...... ..... ........ ....... ..... .......... ..... .... ................ 737
N. Cybercrime Prevention Act of 2012 (R.A. No. 10175) .................... 741
0. New Anti-Carnapping Act of 2016 (R.A. No. 10883) ...................... 743
P. Special Protection of Children Against Abuse, Exploitation, and
Discrimination Act (R.A. No. 7610, as amended)........................... 744
Q. Swindling by Syndicate (P.D. No. 1689) ........................................ 748
IV. PRACTICAL EXERCISES...................................................................... 748
A. Drafting of Complaint, Information, Affidavits of Desistance, etc. .. 748
COMMERCIALLAW
I. INSURANCE LAW ................................................................................. 761
A. Basic concepts ............................................................................... 761
B. Perfection of the insurance contract................................................ 769
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c_ Rights and obligations of parties ----------------------------------------------------

772
D_ Rescission of insurance contracts --------------------------------------------------
777
II. TRANSPORTATION LAW--------------------------------------------------------------------- 780
A. Common carriers ____________________ -.----_
______________
_____
__________
______________
______ 780
8_ Obligations and liabilities ---------····-·---···---···--·····--···---···--···--··--···---·· 783
c_ Defenses available to a common carrier .. ·-···· .... ·---··.·--···-····... ·---···- 790
D- Extent of liability .. ·---·.·--·.. ·--·.. ·-·.·---·.·---···---··------··----·----..----····----.. __ 792
Ill. CORPORATION LAW ·--···--····--···----····--····--··--------·--····--···----------·--·····-- 796
A. General principles ___ .... __
... ___
...... ____... __
..... __
... _.___
... ___
..___.... _______ ... __
.. 796
8. De facto corporations versus corporations by estoppel ... ·---·--------- 802
c_ Corporate Powers -·_______ ---··.. ·--·---------··.·-···. ______
----·..--··-----------·-··---· 803
D. Board of directors and trustees -----------·-----------------·--·-----------·--···---- 811
E_ Stockholders and members-···-·-·-····--···----·--·······--··--···--------···-···-··· 819
F_ Capital structure ···--····--····---···-··---····--····--·····-··---···-····--···----·-··----·· 827
G- Dissolution and liquidation ·----·.... ·--··.. ·---·.. ·--····-··....... ·--··.......... --··.. 833
H- Other corporations ···--···--·····---··--···---···--····--·--·--···--····--···--······-····-- 837
I. Mergers and consolidations ____ .____
... __.... ___
... _______
.___..___.... _...... ____..__ 848
IV_ INTELECTUAL PROPERTY CODE .. ·--··. ·- ....... ·-··-· .. ·--·....... ·-·. ·-.. ·--·.. ... 850
A. Patents···---···--······--····--····--····--·---···---···---····-··-·····---···---····-···-···--··· 850
8. Trademarks ··--·······--····-·-··--·······---····--····--··········--····---···---·······-····- 854
c_ Copyrights __ .... _____
.... _.... __
.... __
........ __
... ___
... ___
...... ___
... __
... ___
..___
... _.._-_.. 864
V. ANTI-MONEY LAUNDERING ACT (R.A. No. 9160, as amended) -···-- 874
A. Covered institutions and their obligations ·-·-········----··---··-·······---···-- 874
8_ Covered and suspicious transactions .. ·-··.. ·-··..... ·--·.. ·--···---·... ·---··-·· 876
c_ Safe harbor provision .. ·---··.·-··...... ·-··.. ·---·...... ·--··.·---··--··..... ·-·-·-·.. ·-- 877
D- When is money laundering committed (including predicate crimes) 877
E. Authority to inquire into bank deposits .. ·--· ..... ·-···... ·-···----·---·-····---· 880
F. Freezing and forfeiture _ .. ·········--····--·················---···-········---·-········ 880
VI_ ELECTRONIC COMMERCE ACT ....... ·--·.. . ... ·----·.. ·-·· .......... ·--·· ·-- 883
A. Legal recognition of electronic data messages, documents, and
signatures .__.... _...... ___
... ___
.... _....... ___
... _..... ___
...____
.... _.... __
... __
... _..___
... _. 884
B- Presumption relating to electronic signatures -·... ·--··.·-.·-·.. ·--·--·.·--·. 885
c_ Admissibility and evidential weight of electronic data message of
electronic document ... ·--··........... ·---·.. ·--·.. ·-··..... ·---·.·-····--·.·---···.. ·-··. 886
D. Obligation of confidentiality ..------··.·----·.·--·.. ·-··-··--·.. ·--·...... ·-··..... ·-·.. 886
VII_ FINANCIAL REHABILITATION, INSOLVENCY, LIQUIDATION AND
SUSPENSION OF PAYMENTS, AND FLSP RULES···--········-········- 886
A. Basic concepts ..... __ .... __
.... __
.... __
.__ .... ___
... __
... _.._.._... __
.... __
... __
....... _... __ 886
8. Modes of rehabilitation ···-·····---·--····--·········----·-····--····-···---···-----···--· 888
C. Liquidation .... ·-··..... ·-- ...... ··-··..... ·-- . ........ ·-----·.·--·.·-···. ·-···---·-··.·-·· 899
o_ Suspension of payments; suspension of payment order ---·...... ·---·. 904
APPENDICES
Syllabus for the 2022 Bar Examinations for Political and International Law -··· 906
Syllabus for the 2022 Bar Examinations for Labor Law and Social Legislation 912
Syllabus for the 2022 Bar Examinations for Criminal Law .·--····--··.·--···--·--··.. ·-· 916
Syllabus for the 2022 Bar Examinations for Commercial Law--····---···-······----··· 918
Bibliography ····--·· ······-····--··· .. ............ . .. ······-·· 922

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BEDAN RED BOOK

Volume 1 · Series of 2022
LABOR LAW AND

SOCIAL LEGISLATION
I. General Princi1les
A. BASICPOLICYON LABOR
Q: What is the basic policy under the Labor Code?

ANS: The State shall afford protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed, and regulate the relations between
workers and employers. The State shall assure the rights of workers to self-organization,
collective bargaining, security of tenure, and just and humane conditions of work (LABOR
CODE, Art. 3)
Q: What is the state policy towards security of tenure?

ANS: The workers shalt be entitled to security of tenure, humane conditions of work,
and a living wage (CONST. Art. XIII, Sec. 3).
Q: What is social justice?

ANS: Social justice is "neither communism, nor despotism, nor atomism, nor anarchy"
but the humanization of laws and the equalization of social and economic forces by the
State so that justice in its rational and objectively secular conception may at least be
approximated. Social justice means the promotion of the welfare of all the people, the
adoption by the Government of measures calculated to insure economic stability of all the
competent elements of society, through the maintenance of a proper economic and social
equilibrium in the interrelations of the members of the community, constitutionally, through
the adoption of measures legally justifiable, or extra-constitutionally, through the exercise
of powers underlying the existence of all governments on the time-honored principle of
"salus populi est suprema lex"(Calalang v. Williams, G.R. No. 47800, December 2, 1940).
Q: How is social justice applied to labor?

ANS: Social justice should be used only to correct an injustice. It must be founded on
the recognition of the necessity of interdependence among diverse units of a society and
of the protection that should be equally and evenly extended to all groups as a combined
force in our social and economic life (Agabon v. NLRC, G.R. No. 158693, November 17,
2004).
Q: What is the state policy towards equal work?

ANS: The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for
all (CONST. Art. XIII, Sec. 3).
The State shall promote a just and dynamic social order that will ensure the prosperity
and independence of the nation and free the people from poverty through policies that
provide adequate social services, promote full employment, a rising standard of living,
and an improved quality of life for all (CONST. Art. Ill, Sec. 9).

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BEDAN RED BOOK

Q: What is the state policy towards right to self-organization and collective

bargaining?
ANS: The state shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right to strike
in accordance with law (CONST. Art. XIII, Sec. 3).
B. CONSTRUCT/ONINFAVOROFLABOR
Q: How are the provisions of the Labor Code construed?

ANS: All doubts in the implementation and interpretation of the provisions of the Labor
Code, including its implementing rules and regulations, shall be resolved in favor of labor
(LABOR CODE, Art. 4).
Q: What are the limitations to the liberal construction of the Labor Code?
ANS: The Labor Code is construed in favor of labor if there is a doubt as to the meaning
of the legal and contractual provision. However, if the provision is clear and unambiguous,
it must be applied in accordance with its express terms (MERALCO v. NLRC, G.R. No.
78763, July 12, 1989). The law also recognizes that management has rights, which are
also entitled to respect and enforcement in the interest of fair play (St. Luke's Medical
Center Employee's Association-AFW v. NLRC, G.R. No. 162053, March 7, 2007).
Note: The rule enunciated in Art. 4 of the Labor Code likewise applies in the appreciation
between t~e evidence presented by the
of evidence in labor proceedings. If doubts E!J/fa.t
employer and the employee, the scale of 'justice must be tilted in favor of the latter
(Dreamland Hotel Resort v. Johnson, G.R. No. 191455, Marci) 12, 2014).
C. BURDENOFPROOFANDQUANTUMOF EVIDENCEIN LABOR CASES
Q: What is the quantum of evidence required in labor cases?

ANS: In administrative or quasi-judicial proCf;ledings like those conducted in the NLRC,
the standard of proof is substantial evidencewhich is understood to be more than just a
scintilla or such amount of relevant evidence which a reasonable mind might accept as
adequate to justify a conclusion (Morales v. Harbour Centre Port Terminal Inc., G.R. No.
174208, January 25, 2012).
D. LEGALBASIS UNDER THE 1987 CONSTITUTION, CIVIL CODE, AND LABOR

CODE
1987 Constitution
Q: What provisions under the 1987 Constitution are related to Labor Law?
ANS: The following constitutional provisions are related to Labor Law:
1. Article II: Declaration of Principles and State Policies
a. The State shall promote a just and dynamic social order that will ensure
the prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services, promote
full employment, a rising standard of living, and an improved quality of
life for all (CONST. Art. II, Sec. 9);
b. The State shall promote social justice in all phases of national
development (CONST. Art. II, Sec. 10);
c. The State recognizes the role of women in nation-building and ensure
the fundamental equality before the law of women and men (CONST.
Art. II, Sec. 14);

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d. The State affirms labor as a primary social economic force. It shall

protect the rights of workers and promote their welfare (CONST. Arl. II,
Sec. 18); and
e. The State recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed
investments (CONST. Art. II, Sec. 20).
2. Article Ill: Bill of Rights
a. No person shall be deprived of life, liberty, or property without due
process of law, nor shall any person be denied the equal protection of
the laws (CONST. Art. Ill, Sec. 1);
b. No law shall be passed abridging the freedom of speech, of expression,
or of the press, or the right of the people peaceably to assemble and
petition the government for redress of grievances (CONST. Art. Ill, Sec.
4);
c. The right of the people, including those employed in the public and
private sectors, to form unions, associations, or societies for purposes
not contrary to law shall not be abridged (CONST. Art. Ill, Sec. 8);
d. No law impairing the obligation of contracts shall be passed (CONST.
Art. Ill, Sec. 1OJ;
e. All persons shall have the right.to a speedy disposition of their cases
before all judicial, quasi-judicial, or administrative bodies (CONST. Art.
Ill, Sec. 16); and ·
f. No inyolunjary servitude in any form shEifl exist except as a punishment
for a crime whereof the party shall have been duly convicted (CONST.
Art. Ill, Sec. 18(2)).
3. Article XII: National Economy and Patrimony
a. The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods, and adopt measures that help
make them competitive (CONST. Art. XII, Sec. 12).
4. Article Xllf: Social Justice and Human Rights
a. The promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and self-reliance
(CONST. Arl. XIII, Sec. 2);
b. The State shall afford. full. protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality
of employment opportunities for aH;
c. It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations and peaceful concerted activities, including
the right to strike in accordance with law. They shall be entitled to security
of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law;
d. The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in
settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace;
e. The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production
and the right of enterprises to reasonable returns on investments, and to
expansion and growth (CONST. Art. XIII, Sec. 3);
Note: This is known as the Protection-to-Labor Clause.

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f. The state shall establish a special agency for disabled persons for their
rehabilitation, self-development and self-reliance and their integration
into the mainstream of society (CONST. Art. XIII, Sec.13); and
g. The State shall protect working women by providing safe and healthful
working conditions, taking into account their maternal functions, and
such facilities and opportunities that will enhance their welfare and
enable them to realize their full potential in the service of the nation
(CONST. Art. XIII, Sec. 14).
5. Article XI: General Provisions
a. The State shall, from time to time, review to increase the pensions and
other benefits due to retirees of both the government and the private
sectors (CONST. Art. XVI, Sec. 8).
Civil Code
Q: What provisions under the Civil Code are to Labor Law?
ANS: The following Civil Code provisions are related to Labor Law:
1. Every person must, in the exercise of his rights and in the performance of his
duties, act with justice, give eve(Yone his due, and observe honesty and good
faith (CIVIL CODE, Art. H)); ,
2. Every person who contrary to 1$\V,willfully or negligently causes damage to
another, shall compensate the IErtferfor the same (CIVIL CODE, Art. 20);
3. Any person who willfully ca to~@other in a manner contrary
.·. .. riJ1j1,1ry
to morals, good customs, or publl ficy:Sfmllc~Jnpensate the latter for the
damage (CIVIL CODE, Art. 21);_
4. The relations between capital and labor are notinerely contractual. They are
so impressed with public intef~st that labor, cqntracts must yield to the
common good. Therefore, such't:ontracts are:subjec\to the special laws on
labor unions, collective bargaining, strikes and lockouts, closed shop, wages,
working conditiOns, hours of lat)Qr and SITTtlla~:~9~•lCIVIL CODE, Art.
1700); .-.. · n · i. . .
5. Neither capital nor labor shall a~j'oppressively against the other or impair the
interest or convenience of the p\jblic (CIVIL CODE, Art. 1701);
,<'
Note: This is also known as the"P .,1>ff',lon-Oppression.
6. In case of doubt, all labor legislations and all labor contracts shall be
construed in favor of the safely and decent living for the laborer (CIVIL CODE,
Art. 1702);
7. No contract which practically amounts to involuntary servitude, under any
guise whatsoever, shall be valid (CIVIL CODE, Art. 1703);
8. The laborer's wages shall not be subject to execution or attachment, except
for debts incurred for food, shelter, clothing and medical attendance (CIVIL
CODE, Art. 1708);
9. The employer shall neither seize nor retain any tool or other articles belonging
to the laborer (CIVIL CODE, Art. 1709); and
10. Dismissal of laborers shall be subject to the supervision of the Government,
under special laws (CIVIL CODE, Art. 1710).
Labor Code
Q: What is the basic policy on labor?
ANS: The State shall afford protection to labor, promote full employment, equal work
opportunities regardless of sex, race or creed and regulate the relations between workers
and employers. The State shall assure the rights of workers to self-organization, collective

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bargaining, security of tenure and just and humane conditions of work (LABOR CODE,
Art. 3).
Q: Who are covered by the Labor Code?

ANS: All rights and benefits granted to workers under the Labor Code shall, except as
may otherwise be provided herein, apply alike to all workers, whether agricultural or non-
agricultural, including employees in a government corporation incorporated under the
Corporation Code (LABOR CODE, Art. 6).
Q: Who are not covered by the Labor Code? (CELFIG)

ANS: The following persons and entities are not covered by the Labor Code:
1. forporate officers involved in intra-corporate disputes under P.O. No. 902-A
fall under the jurisdiction of Regular Courts in accordance with the Securities
Regulation Code (SRC) (Nacpil v. /BC, G.R. No. 144767, March 21,2002);
2. ~mployees of government-owned or controlled corporation (GOCC) created
by special or original charter. Such employees are governed by the Civil
Service (Juco v. NLRC, G.R. No. 98107, August 18, 1997);
Note: The phrase "with original charter" refers to corporations chartered by
special law as distinguished from corporations organized under the
Corporation Code (NASECO v. NLRC, G.R. No. L-69870, November 29,
1988).
3. .!,,.ocalwater districts (Tanjay Water District v. Gabaton, G.R. Nos. L-63742
and 84300, April 17, 1989);
Note: An exception is when NLRC jurisdiction is voluntarily invoked to secure
affirmative relief, the party is estopped from denying that very same
jurisdiction (Zamboanga City Water District v. Buat, G.R. No. 104389, May
27. 1994).
4. Eoreign governments (JUSMAG-PHL v. NLRC, G.R. No. 108813, December
15, 1994);
5. !nternational Agencies (Lasco v. UNRFNRE, G.R. Nos. 109095-109107,
February 23, 1995) and employees of intergovernmental or international
organizations (SEAFDEC-AQD v. NLRC, G.R. No. 86773, February 14,
1992); and
6. government agencies which are covered by the civil service rules and
regulations (CONST. Article IX-B, Sec. 2).
II. Recruitment aml elacememt of Workers

A. RECRUITMENT AND PLACEMENT (LABOR CODE ANDR. A. NO. 8042}
Illegal Recruitment and Other Prohibited Activities

Q: What constitutes recruitment and placement?
ANS: Recruitment and Placement is any act of canvassing, enlisting, transporting,
contracting, hiring, utilizing or procuring workers, and includes contract services, referrals,
advertising, or promising for employment, locally or abroad. whether for profit or not:
Provided, That any person or entity which, in any manner, offers or promises for a fee
employment to two or more persons shall be deemed engaged in recruitment and
placement (LABOR CODE, Art. 13(b)).
Note: The number of persons dealt with is not an essential ingredient of the act of
recruitment and placement of workers. The proviso merely creates a presumption that the

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individual or entity is engaged in recruitment and placement whenever he or it is dealing

with two or more persons to whom, in consideration of a fee, an offer or promise of
employment is made in course of the "canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring of workers (People v. Panis. GR. Nos. 58674-77, July 11.
1986).
Q: Is the concept of illegal recruitment applicable to both local and overseas

employment?
ANS: The concept of "illegal recruitment" under Article 38 of the Labor Code applies to
recruitment and placement for both local and overseas employment. But as far as
recruitment for local employment is concerned, the sole basis thereof is Article 38 and
nothing more, unlike recruitment for overseas employment where new laws (such as R.A.
No. 8042, as amended by R.A. No. 10222) have been enacted to govern and regulate it,
if not supersede it (CHAN, Bar Reviewer on Labor Law (2019), p. 38 [hereinafter CHAN
REVIEWER]).
Q: Who may commit illegal recruitment?

ANS: Illegal recruitment may be committed by any of the following:
1. By a Non-Licensee or Non-holder of authority; or
2. ANY PERSON, regardless of whether a non-licensee, non-holder, licensee
or holder of authority (0.0. No. 141-14 - Revised Rules and Regulations
Governing Recruitment and Placement for Local Employment, Sec. 42; R.A.
No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos
Act, Sec. 6, as amended).
Q: What acts constitute illegal recruitment when committed by a non-licensee or

non-holder of authority?
ANS: Any act of (CETCHUP) £anvassing, gnlisting, Iransporting fontracting, .!:!iring,
Y,tilizing, or frocuring workers and includes (CRAP) fontract services, Referring,
Advertising or frornising for local employment or employment abroad, whether for profit
or not. The non-licensee or non-holder of authority is pre5umed to be engaged in such
recruitment if he, in any manner, offers or promises for a fee employment to two or more
persons (0.0. No. 141-14, Sec. 42; R.A. No, 8042, Sec. 6).
Note: In other words, had they possessed a license or authority, their commission of any
of the foregoing acts could have been valid and not constitutive of illegal recruitment
(CHAN REVIEWER, supra at 42).
Q: What acts constitute illegal recruitment when committed by ANY PERSON,

regardless of whether a non-licensee, non-holder, licensee or holder of authority?
(IF2 -PIHO-AFA-TUNA)
ANS: The following acts shall be unlawful when committed by any person whether or not
a holder of a license or authority:
a. To charge or accept directly or indirectly any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor and Employment, or to make a worker pay or acknowledge any amount
greater than that actually received by him as a loan or advance (!llegal
Exaction);
b. To furnish or publish any false notice or information or document in relation
to recruitment or employment (Ealse Information);
c. To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority
under the Labor Code, or for the purpose of documenting hired workers with
the POEA, which include the act of reprocessing workers through a job order
that pertains to non-existent work, work different from the actual overseas

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work, or work with a different employer whether registered or not with the
POEA (Ealse Statements);
d. To induce or attempt to induce a worker already employed to quit his
employment in order to offer him another unless the transfer is designed to
liberate a worker from oppressive terms and conditions of employment
(firating);
e. To influence or attempt to influence any person or entity not to employ any
worker who has not applied for employment through his agency or who has
formed, joined or supported, or has contacted or is supported by any union or
workers' organization (!nfluencing not to Employ);
f. To engage in the recruitment or placement of workers in jobs harmful to public
health or morality or to the dignity of the Republic of the Philippines (.!:!.armful
Jobs);
g. To obstruct or attempt to obstruct inspection by the Secretary of Labor and
Employment or by his duly authorized representative (Qbstruct Inspection);
h. To substitute or alter to the prejudice of the worker, employment contracts
approved and verified by the Department of Labor and Employment from the
time of actual signing thereof by the parties up to and including the period of
the expiration of the same without the approval of the Department of Labor
and Employment (Alteration of Contracts);
i. To fail to submit reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures
and such other matters or information as may be required by the Secretary of
Labor and Employment (Eailure to Comply with Rules and Regulations);
j. For an officer or agent of a recruitment or placement agency to become an
officer or member of the Board of any corporation engaged in travel agency
or to be engaged directly or indirectly in the management of a travel agency
(Travel Agency Officers Recruiting);
k. To withhold or deny travel documents from applicant workers before
departure for monetary or financial considerations, or for any other reasons,
other than those authorized under the labor Code and its implementing Rules
and Regulations (Withholding Iravel Documents);
I. Failure to actually deploy a contracted worker without valid reason as
determined by the Department of labor and Employment (!J.njustified Non-
deployment);
m. 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 (.!'fon-
reimbursement upon Failure to Deploy); and
n. To allow a non-Filipino citizen to head or manage a licensed
recruitmenUmanning agency (Delegation to an Alien) (0.0. No. 141-14, Sec.
42; R.A. No. 8042, Sec. 6, as amended).
Note: Acts "i ton" are not enumerated in D.O. No. 141-14, hence, these acts apply
exclusively to overseas employment (0.0. No. 141-14, Sec. 42).
Q: What are the types of illegal recruitment?

ANS: The following are the types of illegal recruitment:
1. Simple illegal recruitment
a. Illegal recruitment committed by any person who is neither a licensee nor
a holder of authority against 1 or 2 persons only (People v. Sagun, G.R.
No. 119076, March 25, 2002).
b. Illegal recruitment by a licensee or holder of authority when ii commits
any of the wrongful acts enumerated in Sec. 6, R.A. No. 8042 (Hon.
Patricia Sta. Tomas v. Sa/ac, G.R. No. 152642, November 13, 2012).

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2. Illegal recruitment involving economic sabotage

a. Syndicated - when illegal recruitment is committed by a syndicate or 3
or more persons, conspiring or confederating with one another; and
b. Large scale - when illegal recruitment is carried out by 1 person or with
another person against a group of any 3 or more persons individually or
as a group (R.A. No. 8042, as amended, Sec. 6).
Note: Any person, whether a non-licensee, non-holder, license, or holder of an authority
may be liable for illegal recruitment. However, in case the offender is a holder of a license
or an authority, he must have committed any of the prohibited acts mentioned under Sec.
6 of R.A. No. 8042, as amended.
Q: What are the elements of simple illegal recruitment?

ANS: Illegal recruitment is committed when two essential elements concur:
1. That the offender has no valid license or authority required by law to enable
him to lawfully engage in the recruitment and placement of workers; and
2. That the offender undertakes any activity within the meaning of "recruitment
and placement" defined under Art. 13(b), or any prohibited practices
enumerated under Art. 34 of the Labor Code (People v. Gallardo, G.R. Nos.
140067-71, August 29, 2002).
Note: Simple illegal recruitment is also committed by a licensee or holder of authority
(People v. Sadiosa, G.R. No. 107084, Mey 15, 1998). It may be charged with illegal
recruitment only when it commits any of the wrongful acts enumerated in Sec. 6, R.A.
No. 8042 (Hon. Sto. Tomas, et al. v. Sa/ac, G.R. No. 152642, November 13, 2012).
Q: What are the elements of large-scale iHegal recruitment?

ANS: The essential requisites of illegal recruitment in large scale are as follows:
1. The offender has no valid license or authority required by law to enable one
to lawfully engage in recruitment and placement of workers;
2. That the offender undertakes any of the activities within the meaning of
"recruitment and placement" under Art. 13(b) of the Labor Code, or any of the
prohibited practices enumerated under Art. 34 of the same Code (now Sec.
6, R.A. No. 8042); and
3. The offender commits said acts against 3 or more persons, individually or as
a group (People v. Lo, G.R. No .. 175229,Janua;ry 29, 2009).
Q: What are the elements of illegal recruitment by a syndicate?

ANS: To be convicted of the crime of illegal recruitment committed by a syndicate, the
following elements must occur:
1. The accused have no valid license or authority required by law to enable them
to lawfully engage in the recruitment and placement of workers;
2. The accused engaged in this activity of recruitment and placement by actually
recruiting, deploying and transporting; and
3. Illegal recruitment was committed by 3 persons conspiring and confederating
with one another (People v. Saraban, G.R. No. 194255, June 13, 2012).
Q: May a person who has committed illegal recruitment be charged and convicted
of estafa?
ANS: Yes. A person who has committed illegal recruitment may be charged and
convicted separately of illegal recruitment under the Labor Code and estafa under Art.
315 of the Revised Penal Code (RPC). The crime of illegal recruitment is ma/um
prohibitum where the criminal intent of the accused is not necessary for conviction, while
estafa is ma/um in se where the criminal intent of the accused is necessary for conviction.
In other words, a person convicted under the Labor Code may be convicted of offenses
punishable by other laws (People v. Sadiosa, G.R. No. 107084, May 15, 1998).

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Q: What are the Other Prohibited Acts in conducting recruitment for overseas
employment? (BHR-PAST)
ANS: The following 7 practices are considered as Other Prohibited Acts in conducting
recruitment for overseas employment:
1. Granting a loan to an Overseas Filipino Worker with interest exceeding §.%
per annum, which will be used for payment of legal and allowable placement
fees and make the migrant worker issue, either personally or through a
guarantor or accommodation party, postdated checks in relation to the said
loan;
2. Imposing a compulsory and exclusive arrangement whereby an Overseas
Filipino Worker is required to undergo !::!.ealth examinations only from
specifically designated medical clinics, institutions, entities or persons, except
in the case of a seafarer whose medical examination cost is shouldered by
the principal/ship owner;
3. Refusing to condone or renegotiate a loan incurred by an Overseas Filipino
Worker after the latter's employment contract has been prematurely
terminated through no fault of his or her own;
4. For a recruitment/manning agency or a foreign principal/employer to fass on
the Overseas Filipino Worker qr deduct from his or her salary the payment of
the cost of insurance fees, premium or other insurance related charges, as
provided under the compulsory worker's insurance coverage;
5. Imposing a compulsory and exclusive Arrangement whereby an Overseas
Filipino Worker is required to avail of a loan only from specifically designated
institutions, entities or persons;
6. For a §uspended recruitment agency to engage in any kind ofrecruitment
activity including the processing of pending workers' applications; and
7. Imposing a compulsory and exclusive arrange.-nent whereby an Overseas
Filipino Worker is required to undergo !raining, seminar, instruction or
schooling of any kind only from specifically designated institutions, entities or
persons, except for recommendatory trainings mandated by principals/
shipowners where .the latter shoulder the cost of such trainings (R.A. No.
8042, as amended, Sec. 6).
Liability of local Recruitment Agency and Foreign Employer

Q: Who may be held criminally liable for illegal recruitment?
ANS: The persons criminally liable are the principals, accomplices and accessories. In
case of juridical persons, the officers having ownership, control, management or direction
of their business, who are responsible for the commission of the offense and the
responsible employees/agents thereof shall be liable (/RR of R.A. No. 8042, as amended,
Rule IV, Sec. 4).
Q: What is the nature of liability of the local recruitment agency and the foreign
employer for the claims of the Overseas Filipino Worker?
ANS: The nature of liability of the foreign principal/employer and the licensed local
recruitment agency is joint and several (solidarily) for any and all claims arising out of
the implementation of the employment contract involving Overseas Filipino Workers
(2016 POEA Rules & Regulations Governing Overseas Employment, Part I, Rule II (20)).
Note: The provision holding the foreign principal/employer and the licensed local
recruitment agency solidarily liable shall be incorporated in the contract for overseas
employment and shall be a condition precedent for its approval. The performance bond
to be filed by the recruitment/placement agency, as provided by law, shall be answerable
for all money claims or damages that may be awarded to the workers (R.A. No. 8042, as
amended, Sec. 10).

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Q: Is the rule on solidary liability of the corporate officers of recruitment agency

absolute?
ANS: Yes. The joint and several liability of the principal/employer, recruitmenU
placement agency, and the corporate officers of the latter, for the money claims and
damages of an Overseas Filipino Worker is absolute and without qualification. It is
intended to give utmost protection to the Overseas Filipino Worker, who may not have the
resources to pursue her money claims and damages against the foreign principal/
employer in another country (Princess Talent Center Production, Inc., v. Magsaca, G.R.
No. 191310, April 11, 2018).
Q: When does the solidary liability of the foreign employer and the local
recruitment agency end?
ANS: If either or both of the parties decide to end the agreement, the responsibilities of
such parties towards the contracted employees under the agreement do not at all end,
but the same extends up to and until the expiration of the employment contracts of the
employees recruited and employed (Skippers United Pacific v. Maguad as cited in A TC/
Overseas Corporation v. Echin, G.R. No. 178551, October 11, 2010).
Q: What are the instances when a local recruitment agency may be exempted
from solidary liability?
ANS: In the following instances, a local recruitment agency may be exempted from
solidary liability:
1. When the worker persuades the lpcal representative of the principal or
recruiter to send him abroad to Wdrk despite the refusal of said local
representative or recruiter to accede to the request due to the unstable
condition in the area of work desired by signing a waiver rendering the local
representative or recruiter free from any liability (Feagle Construction
Corporation v. Dorado, G.R. No. '86042, April 30, 1991); and
2. When the workers were recruited ostensibly under the name of the supposed
recruitment agency without the latter's consent and k,nowledge (/las v. NLRC,
G.R Nos. 90394-97, February 7,: 1991).
Q: What is the effect on the solidary liability of the original recruitment agency in
case of transfer of accreditation by the employer from the original recruitment
agency to another agency? , ...·
ANS: Even if there was transfer of accreditation by the employer from one recruitment
agency to another, the liability of the original agency to employees remained intact
because respondent employees are not privy to such contract (Powerhouse Staff Builders
International Inc., v. Romelia Rey et al., G.R. No. 190203, November 7, 2016).
Q: What is the Theory of Imputed Knowledge?

ANS: The Theory of Imputed Knowledge ascribes the knowledge of the agent to the
principal, not the other way around. The knowledge of the principal-foreign employer
cannot, therefore, be imputed to its agent (Sunace International Management Services
v. NLRC, G.R. No. 161757, January 25, 2006).
Note: In the case of Sunace, Sunace, the agency, was not aware of or was ignorant of
the employment extension between the principal and the employee; hence, the agency
was free from any liability.
Entities Prohibited from Recruiting

Q: Who are disqualified from engaging in the recruitment and placement of workers
for overseas employment? (TOP-I-DO)
ANS: The following persons and entities are disqualified to participate or engage in the
recruitment and placement of workers for overseas employment:

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1. !ravel agencies and sales agencies of airline companies;

2. Qfficers or members of the Board of any corporation or partners in a
partnership engaged in the business of a travel agency;
3. Corporations and fartnerships, where any of its officers, members of the
board or partners is also an officer, member of the board or partner of a
corporation or partnership engaged in the business of a travel agency;
4. Individuals, partners, officers or directors of an Insurance company who
make, propose or provide an insurance contract under the compulsory
insurance coverage for agency-hired Overseas Filipino Workers;
5. Sole proprietors, partners or officers and members of the board with
Qerogatory records, such as, but not limited to the following:
a. Those convicted, or against whom probable cause or prima facie finding
of guilt is determined by a competent authority, for illegal recruitment, or
for other related crimes or offenses committed in the course of, related
to, or resulting from, illegal recruitment, or for crimes involving moral
turpitude;
b. Those agencies whose licenses have been revoked for violation of R.A.
No. 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as
amended, P.O. No. 442 (Labor Code of the Philippines), as amended,
and R.A. No. 9208 (Trafficking in Persons Act of 2003), as amended,
and their implementing rules and regulations; and
c. Those agencies whose licenses have been cancelled, or those who,
pursuant to the Order of the Administrator, were included in the list of
persons with derogatory record for violation of recruitment laws and
regulations; and
6. Any Qfficial or employee of the DOLE, POEA, OWWA, OFA, OOJ, DOH, Bl,
IC, NLRC, TESDA, CFO, NBI, PNP, Civil Aviation Authority of the Philippines
(CAAP), international airport authorities, and other government agencies
directly involved in the implementation of R.A. No. 8042, as amended, and/or
any of his/her relatives within the 4th civil degree of consanguinity or affinity
(2016 POEA Rules & Regulations Governing Overseas Employment, Part II,
Rule I, Sec. 3).
Q: Who are disqualified from engaging in the business of recruitment and

placement for local employment? (ITAM-RC-CALE-CP•SPC-T)
ANS: The following are not qualified to engage in the recruitment and placement of
workers for local employment as a Private Employment Agency (PEA):
1. Those who have pending cases with probable cause or convicted of !llegal
recruitment, Irafficking in persons, Anti-child labor law violation, or crimes
involving ,Moral turpitude;
2. Those agencies, proprietors, partnerships, corporations whose licenses have
been previously Revoked or !;_ancelled by the DOLE under these Rules;
3. Cooperatives whether registered or not under the !;_ooperative Act of the
Philippines;
4. !,,aw !;,nforcers and any official or employee of the DOLE;
5. !;_urrent f.EA licensed sole proprietors are prohibited from securing another
license to engage in local recruitment and placement;
6. .§.oleproprietors, f artnerships or !;_orporations licensed to engage in private
recruitment and placement for local employment are prohibited from engaging
in job contracting or subcontracting activities; and
7. Iechnical-vocational institutions and other training institutions (0.0. No. 216-
20 - Rules and Regulations Governing Recruitment and Placement of
Industry workers by Private Employment Agencies for Local Employment, Art.
II, Sec. 2).

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Cancellation of license or Authority

Q: What are the differences between a license and an authority?
ANS: The following are the differences between a license and an authority:
License Authority
As to A license means a document An authority means a document

Definition issued by the Department of issued by the Department of Labor
Labor authorizing a person or authorizing a person or association
entity to operate a private to engage in recruitment and
employment agency (LABOR placement activities as a private
CODE, Art. 13(d)). recruitment entity (LABOR CODE,
Art. 13(()).
Asto License is issued for private Authority is given for private

Whom it is employment agency. recruitment agency.
Issued
(CHAN REVIEWER, supra at 39-40).
Q: Who may suspend and/or cancel a license or authority?

ANS: The power to suspend or cancel any license or authority to recruit employees for
overseas employment is concurrently vested with the POEA and the Secretary of Labor
(Trans Action Overseas Corporation v. DOLESecretary, G.R. No. 109583, September 5,
1997).
1. The Minister of Labor shall have the power to suspend or cancel any license
or authority to recruit employees for overseas employment for violation of
rules and regulations issued by the Ministry of Labor, the Overseas
Employment Development Board, or for violation of the provisions of this and
other applicable laws, General Orders and Letters of Instructions (LABOR
CODE, Art. 35).
2. The POEA shall suspend or revoke the license of a recruitment agency for
failure to maintain the required qualifications or conditions for the issuance
of a license as provided in this Rule (2016 POEA Rules & Regulations
Governing Overseas Employment, Patt II, Rule II, Sec. 18).
Q: What are grounds for automatic revocation of license? (EMPU)

ANS: The following are the grounds for automatic revocation of license:
1. £Xpiration of the principal's/employer's business license or cessation of
business or recruitment activity, after a period of 1 year from expiration or
cessation;
2. Upon written ,Mutual agreement by the principal/employer and the licensed
recruitment agency to terminate the agreement;
3. When the principal/employer is meted the fenalty of disqualification from
participation in the overseas employment program; and
4. Failure to comply with the .Y,ndertaking submitted as requirement for
accreditation (2016 POEA Rules and Regulations Governing Overseas
Employment Sec. 104).
Q: What are the grounds for suspension or cancellation of license? (UD-CM)

ANS: The following are the grounds for suspension or cancellation of license:
1. .!J.njustifiedrefusal to assist/repatriate distressed Overseas Filipino Worker/s;
2. Q.eliberate violation/non-compliance of the principal/employer with its
contractual obligations to its hired Overseas Filipino Worker/s;
3. _g_ontinuedprocessing and deployment of the Overseas Filipino Workers for
the principal/employer will lead to the further exploitation of any or all of its

lOMoARcPSD|11893536
BEDAN RED BOOK

applicants and Overseas Filipino Workers or pose imminent danger to the

lives and safety of its Overseas Filipino Worker/s; or
4. When found to have hired and employed an Overseas Filipino Worker who is
either a Minor or below the prescribed minimum age requirement (2016
POEA Rules & Regulations Governing Overseas Employment, Sec. 101).
Q: What are the administrative offenses that may cause cancellation or suspension
of license of a licensed recruitment agency for local employment?
ANS: The following <)re the administrative offenses that may cause cancellation or
suspension of license of a licensed recruitment agency for local employment:
_J Serious Offenses
(REET-C 3 OSln 2 )
Less Serious Offenses
(MR. DUCO-FV)
Asto • • First offense - suspension of license

Penalty for 2 months to 6 months;
Second offense - suspension of
license for 6 months to 1 year; and
Third offense - cancellation of
license
As to Recruitment and placement of 1. Engaging in acts of

Offenses workers in violation of anti-child Misrepresentation in connection
labor laws; with recruitment and placement
!;ngaging in acts of of workers;
misrepresentation for the 2. Engaging in Recruitment
purpose of securing a license or activities in places other than
renewal thereof; that specified in the license
!;ngaging in the recruitment or without previous authorization
placement of workers in jobs from the Department;
harmful to public health or 3. Appointing or Qesignating
morality or to the dignity of the agents, representatives or
Republic of the Philippines; employees without prior
Iransferring, conveying or approval of the Department;
assigning the license/authority to 4. Failure to comply with the
any person or entity other than Y,ndertaking to provide Pre-
the one in whose favor it was Employment Orientation (PEO)
issued; to workers;
£harging or accepting directly or 5. £oercing workers to accept
indirectly any amount from the prejudicial arrangements in
worker; exchange for certain benefits
£ontinuous operation despite that rightfully belong to the
suspended license or authority; workers;
£onviction for violation of any of 6. Disregard of Qrders, notices and
the provisions of RA No. 9208, other legal processes issued by
known as the Anti-Trafficking in the Department;
Persons Act of 2003, or RA No. 7. failure to submit within the
7610, as amended by RA No. prescribed period the required
9231 and the IRR; reports related to local
Qbstructing or attempting to recruitment and placement; and
obstruct inspection by the 8. Yiolation of other pertinent
Secretary, the Regional Director provisions of the Code and other
or their duly authorized relevant laws, rules and
representatives; regulations, guidelines and
§ubstituting or altering to the issuances on recruitment and
prejudice of the worker, placement of workers for local

lOMoARcPSD|11893536
Serious Offenses Less Serious Offenses

(REET-C 3 OSln 2 ) (MR. DUCO-FV)
employment contracts to be employment and the protection

approved by the Regional Office of their welfare, including the
from the time of actual signing filing or renewal of license or
thereof by the parties up to and authority beyond the prescribed
including the period of the period.
expiration of the same without
the approval of the Regional
Office;
10. !.!!ducing or attempting to induce
an already employed worker to
transfer from or leave his
employment for another unless
the transfer is designed to
liberate a worker from
oppressive terms and conditions
of employment; and
11. !.!!fluencing or attempting to
influence any person or entity
not to employ any worker who
has not applied for employment
through his agency. ·
(0.0. No. 141-14, Sec. 51).
Termination of contract of Migrant Worker without Just or Valid Cause

Q: What are the aspects of procedural due process which must be observed in
the termination ofemployment?
ANS: Procedural due process requires that an employee mu$t be given:
1. Written notice of the charges against him. The employer is bound to furnish
him 2 notices:
a. The written charge; and
b. The written notice of dismissal in case that is the penalty imposed.
2. Formal investigation where he can defend himself personally or through a
representative before he can be dismissed and disembarked from the vessel
(Dela Cruz v. Maersk Filipinas Crewing, Inc., G.R. No. 172038, April 14,
2008).
Q: What are the remedies of an employee whose service was terminated without
just, valid or authorized cause as defined by their law or contract? (Pl12-SE)
ANS: The following are the remedies of a migrant worker:
1. Full reimbursement of his flacement fee with !nterest of 12% per annum;
2. §.alaries for the unexpired portion of his employment contract (!RR of R.A.
No. 8042, Rule VII, Sec. 6); and
Note: These awards are covered by 6% interest under BSP Circular No. 799
because the law does not provide for a specific interest rate. If there was no
stipulation in the contract providing for a different interest rate, other money
claims under Sec. 10 of R.A. No. 8042 shall be subject to the 6% interest per
annum (Sameer Overseas Placement v. Cabilles, G.R. No. 170139, August
5, 2014).
The clause "or three months for every year of the unexpired term, whichever
is less" is unconstitutional because it violates not just petitioner's right to equal

lOMoARcPSD|11893536
BEDAN
Volume
RED BOOK
1 · Series of 2022
protection, but also her right to substantive due process (Sameer Overseas
Placement v. Cabilfes, G.R. No. 170139, August 5, 2014; Serrano v. Gallant
Maritime Services, G.R. No. 167614, March 24, 2009).
3. .!;_xemplary,moral, and other forms of damages if the acts or omission of the
employer is tainted with bad faith, malice, or fraud (R.A. No. 8042, as
amended, Sec. 10).
Q: What are the remedies of an employee whose salary has been reduced without
any authorization as defined by their law or contract?
ANS: In case of any unauthorized deduction, the worker shall be entitled to the refund
of the deductions made, with interest of 12% per annum, from the date the deduction was
made (/RR of R.A. No. 8042, as amended, Rule VII, Sec. 6).
Q: Who has the primary responsibility for repatriation of worker?

ANS: Repatriation of the worker and the transport of his personal belongings shall be
the primary responsibility of the agency, which recruited or deployed the worker overseas.
The repatriation of remains and transport of the personal belongings of a deceased worker
and all costs attendant thereto shall be borne by the principal and/or the local agency (/RR
of R.A. No. 8042 as amended, Rule XIII, Sec. 1).
Q: What are the exceptions to the rule that the agency has the primary
responsibility for repatriation of workers?
ANS: In cases of war, epidemic, disaster or calamities, natural or man-made, and other
similar events, and where the principal or recruitment agency cannot be identified, the
Overseas Workers Welfare Administration (OWWA), in coordination with appropriate
international agencies, shall take charge of the repatriation (R.A. No. 8042, Sec. 15).
Q: Who bears the cost for the repatriation of a worker whose termination is due
solely to his fault?
ANS: If the termination of employment is due solely to ,the fault of the worker, the
principal or agency is still under obligation to advance the costs of repatriation. This is
without prejudice for recovery from the worker should it be found later that the termination
was due solely to the fault of such worker (Omnibus Rules & Regulations Implementing
R.A. No. 8042, as amended by R.A. No. 10022, Rule XIII, Sec. 2).
Ban on Direct Hiring, Exceptions

Q: What is the general rule on direct hiring?
ANS: No employer may hire a Filipino worker for overseas employment except through
the Boards and entities authorized by the Secretary of Labor (LABOR CODE, Art. 18).
Q: Who are excluded from the ban on direct hiring? (Ml-HON)

ANS: The following are excluded from the ban on direct hiring:
1. Members of the diplomatic corps;
2. !nternational organizations;
3. .!::!eadsof state and government officials with the rank of at least deputy
minister;
4. Qther employers as may be allowed by the Secretary of Labor and
Employment, such as:
a. Those provided in (a), (b) and (c) who bear a lesser rank, if endorsed
by the Philippine Overseas Labor Office (POLO), or Head of Mission in
the absence of the POLO;
b. Professionals and skilled workers with duly executed/authenticated
contracts containing terms and conditions over and above the standards
set by the POEA. The number of professional and skilled Overseas

lOMoARcPSD|11893536
Filipino Workers (Overseas Filipino Workers) hired for the first time by
the employer shall not exceed 5. For the purpose of determining the
number, workers hired as a group shall be counted as 1; or
c. Workers hired by a relative/family member who is a permanent resident
of the host country employment (2016 POEA Rules & Regulations
Governing Overseas Employment, Rule II, Sec. 124); and
5. !fame Hires - individual workers who are able to secure contracts for
overseas employment on their own efforts and representations without the
assistance or participation of any agency. The hiring nonetheless shall pass
through the POEA for processing purposes (/RR of the LABOR CODE, Book
1, Rule I, Sec. 1(gg)).
IMfll.OYMENTOFIJION-RE$IDENT
&-··••·• At/EN$
Q: Who is a non-resident alien?

ANS: Non-resident alien means any alien already in the Philippines or seeking
admission to the Philippines to obtain employment in any public or private enterprise (/RR
of the LABOR CODE, Rule I, Sec. 1(j)).
Q: What are the rules on the issuance of ployment permit of non-resident aliens?
ANS: Any alien seeking admission to t!le pines for employment purposes and any
domestic or foreign employer who desir engage an alien for employment in the
Philippines shall obtain an employment m~r:r P.1;~,nment of Labor.
~,~·~mrr 1·x·
The employment permit maybe issued to a rim-resident alien•tir to the applicant employer
after a determination of the non-avallablljy of a persoo inJhe Philippines who is
competent, able and willing at the time of ap@~cationto perf()rrti th,i:iservices for which the
alien is desired. For an enterprise registe~d in preferred areas of investments, said
employment permit may be. issued upon ,SommendaJlon 9f th~, government agency
charged with the supervision of said registe enterp~itJJiti~QR!;_ODE, Art. 40).
'f. ,.::.
·,ft r:{.3.::,-?::.'.?·'" y, ~'?
.;'";
Q: What is the policy on the issuance of n employment permit?

ANS: That the employment of foreign nati Is in the Philippines shall be subject to the
determination of the non-availability of a Fili ho is competent, able, and willing
to perform the services for which the forei l$idesired (0.0. No. 221-21 -
Revised Rules and Regulations for Issuance of Employment Permits to Foreign National).
Note: All foreign nationals who intended to engage in gainful employment in the
Philippines shall apply for Alien Employment Permit (AEP) (0.0. No. 221-21, Sec. 2).
Q: What is gainful employment?

ANS: The state or condition that creates an employer-employee relationship between
Philippine-based employer and the foreign national where the former has the power to
hire or dismiss the foreign national from employment, pays the salaries or wages thereof
and has the authority to control the performance or conduct of the task and duties (0.0.
No. 221-21, Sec. 2).
Q: What is the period of validity of AEP?

ANS: AEP shall be valid for the position and the company for which it was issued for a
period of 1 year unless granted a longer period vis-a-vis the employment duration, as
stated in the employment contract or other modes of engagement, but in no case shall
exceed 3 years (D.O. No. 221-21, Sec. 8).

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BEDAN RED BOOK

Q: What are the rules on validity of AEP and the effect of transfer and change of
position?
ANS: The following are rules on validity:
1. At any given time during its validity, only 1 AEP shall be issued to a foreign
national;
2. Failure to claim the AEP card within 10 working days from the date of
notification of its liability shall be ground for revocation;
3. The AEP shall remain valid until it expires, for the same position, despite the
transfer of the company to another location;
4. The existing AEP shall remain valid in case the foreign national has been
transferred or subsequently assigned to related companies in another region.
The employer shall notify the concerned DOLE Regional Office (DOLE-RO)
of any transfer or reassignment of foreign national within 10 working days;
and
5. In case of any change in the foreign national's position or employer, he/she
shall be required to file a new application for AEP and surrender the
previously issued AEP card for nullification (0. 0. No. 221-21, Sec. 8).
Q: Who are exempted from securing an AEP? (IT-LORD-PP)

ANS: The following categories of foreign nationals are exempted from securing an AEP:
1. Accredited officers and personnel of !nternational organizations of which the
Philippine government has entered into an agreement with, and their
dependent spouse desiring to work inthe:Poillpplnes;
2. Foreign nationals who come to the Philippines to Ieach, present and/or
conduct research studies in universities and colleges as visiting, exchange
or adjunct professors under formal agreements between the universities or
colleges in the Philippines and foreign universities or colleges; or between the
Philippine government and foreign government, subject to the rules of
reciprocity;
3. All foreign nationals granted exemption by !,aw;. ,
4. Foreign·· national who are Qfficers, staff, and emptoyees working in the
Embassyby reason of extra-territoriality principle;
5. Refugees and Stateless Persons recognized by DOJ pursuant to Art. 17 of
the UN Convention and Protocol Relating to status of Refugees and Stateless
Persons; · ·
6. Qependent spouse of any member of the Diplomatic corps, provided there is
an existing reciprocity agreement and/or exchange of notes between the
Philippine Government and their respective countries of origin;
7. fermanent resident foreign nationals and probationary or temporary resident
visa holders under Section 13 (a-f) of the Philippine Immigration Act of 1940
and Section 3 of the Alien Social Integration Act of 1995 (R.A. No. 7917); and
8. Foreign nationals who are officers and staff of feacekeeping or International
Organizations, either deployed in the Philippines or invited by Non-
Governmental Organizations as accredited, provided they will not engage in
any gainful employment in the Philippines (0.0. No. 221-21, Sec. 18).
Q: What should the foreign national secure for the exemption?

ANS: All foreign nationals exempted from securing an AEP may request Certificate of
Exemption from DOLE-RO concerned. The DOLE-RO shall issue said certificate within 3
working days after receipt of complete documentary requirement and payment of fee:,
(0.0. No. 221-21, Sec. 19).

lOMoARcPSD|11893536
Q: Who are excluded from securing an AEP? (GPICO)

ANS: The following categories of foreign nationals providing/supplying services in the
country but their employers are located abroad or those without EER with the Philippine-
based entity are excluded from securing an AEP:
1. Members of the Qoverning board with voting rights only and do not intervene
in the management of the corporation or in the day-to-day operation of the
enterprise;
2. fresident and Treasurer who are part-owner of the company;
3. !ntra corporate transferee who is a manager, executive or specialist in
accordance with Trade Agreements and an employee of the foreign service
supplier for at least 1 year prior to deployment to a branch, subsidiary, affiliate
or representative office in the Philippines.
4. _g_ontractualservice supplier who is a manager, executive or specialist and an
employee of a foreign service supplier which has no commercial presence in
the Philippines:
a. who enters the Philippines temporarily to supply a service pursuant to a
contract between his/her employer and a service consumer in the
Philippines;
b. must possess the appropriate educational and professional
qualifications; and
c. must be employed by the tor,ign service supplier for at least 1 year prior
to the supply of service ln tijePhilippines; and
5. Authorized representative of the for@igl) Principal/Employer assigned in the
Qffice of Licensed Manning Agency (OLM~)iHJccordance with the POEA
laws, rulesand regulations (0.0. No. 221-21, Sec.20).
Q: What must foreign nationals secure for exclusion in fieu of AEP?

ANS: All foreign nationals excluded from securing an AEP shall secure Certificate of
Exclusion from DOLE-RO concerned. The OOLE-RO shall issue said certificate within 3
working days after receipt of complete docQmentary requirement and payment of fees
(0.0. No. 221-21, Sec. 21). · · ·· · ·· · · ·
Q: What are the prohibitions against transfer of employment?

ANS: The prohibitions against transfer of employment after the issuance of an
employment permit are the following: .. _ . ._•.••.
1. Aliens shall not transfer to another ]ob or change his employer without prior
approval of the Secretary of Labor; and
2. Non-resident aliens shall not take up employment in violation of the
provisions of the Code (LABOR CODE, Art. 41).
Q: When to apply for the renewal of AEP?

ANS: An application for renewal may be filed as early as 60 days before its expiration.
Application may be filed earlier in case the foreign national needs to leave the country or
any other similar circumstances that will hinder the filling of renewal within the said period
(0.0. No. 221-21, Sec.9).
Q: What are the grounds for the denial of application for AEP or renewal thereof?
(DOGMA-WV)
ANS: An application for AEP or the renewal thereof may be denied by the Regional
Director based on any of the following grounds:
1. Submission of falsified Qocuments;
2. Conviction of a criminal Qffense or a fugitive from justice in the country or
abroad;
3. Qrave misconduct in dealing with or ill treatment of workers;

lOMoARcPSD|11893536
BEDAN REDBOOK
4. ,Misrepresentation of facts in the application including fraudulent

misrepresentation i.e., false statement that has a negative effect in the
evaluation of the application made knowingly, or without belief in its truth, or
recklessly whether it is true or false;
5. Availability of a Filipino who is competent, able and willing to do the job
intended for or being performed by the foreign national based on data in the
PESO Employment Information System, PRC Registry of Professional and
Technical Education and Skills Development Authority (TESDA) Registry of
Certified Workers;
6. Worked without a valid AEP for more than a year; or
7. Application for renewal with expired visa or with temporary visitor's Y.isa
(0.0. No. 186-17, Sec. 12, par. 1).
The Regional Director shall issue an Order denying the application for new or renewal of
AEP which shall have the effect of forfeiture of the fees paid by the applicant (0.0. No.
186-17, Sec. 12, par. 2).
Note: Additional grounds under 0.0. 221-21 or the Revised Rules and Regulations for
the Issuance of Employment Permits to Foreign Nationals:
1. Submission of tampered or fraudulent documents;
2. Submission of a v[:,a not in a¢cordance withapplicable rules and regulations;
3. Meritorious objection filed tly,a Fijipirn;>c~iien who is competent, able and
willing to do the job intended for or "l)e111gperf'ohl)ed by the foreign national;
and . . . .. · · ...·· : ..
4. Verified information against the employmentof.theforeign national (0.0. No.
221-21, Sec. 11). · ·
Q: What are the grbtrnds for revocation of AEP? (CONG-l!M'lbl

ANS: The Regional Director may, motu proprio or u_ponpetitioh;cancel or revoke an
1
AEP after due process, based on f:lllYofthe following grounds:
1. Foreign national has been ~onvicted o,rfound gpilty 9fo criminal offense or a
fugitive from justice based on a verified inform,i,tlion; ·
2. Meritorious Qbje9tion filed by a Filipino Citiz:en who is competent, able and
willing to&, the job intended for or being perform~,d by the foreign national;
3. Violation of .!',ton-compliance of other. pertiqe.nt provisions of this rules and
regulations, thi:l Labor Code, as amended a!)d
other relevant guidelines for
issuance of AEP; · · '
4. Verified information on S:zravemiscondu~t in dealing with or ill treatment of
workers filed with the DOLE-RO against the foreign national;
5. Verified information against the 5mployment of the foreign national;
6. Any act of ,Misrepresentation for purposes of securing an AEP, including but
not limited to fraudulent application of facts, falsification or tampering of
documents, and similar circumstance; and
7. Failure to claim the AEP card within 10 working days from the date of
notification of availability (0.0. No. 221-21, Sec. 13).
Note: A petition/complaint, stating the grounds relied upon under the Rules, shall be filed
before the DOLE-RO which issued the AEP (0.0. No. 221-21, Sec. 13, par. 2).
Q: What are the grounds for cancellation of AEP?

ANS: The AEP may be cancelled in any of the following circumstances:
1. The DOLE-RO, upon request of the employer, may issue an Order for
Cancellation of an AEP of a foreign national for termination a of the latter's
employment contract or validity period of AEP; or
2. A foreign national may also request for the cancellation of his/her existing
AEP provided a clearance or certification is issued by his/her original
employer (0.0. No. 221-21, Sec. 12).

lOMoARcPSD|11893536
Q: What is the remedy for the decision of the DOLE-RO?

ANS: Appeal to DOLE Secretary. The foreign national or employer may file an appeal to
the DOLE-RO after a Motion for Reconsideration with the order issued by the DOLE-RO
has been denied. An appeal may be filed within the DOLE-RO within 10 days from receipt
of a copy of the order of the DOLE-RO. An appeal filed beyond the reglementary period
shall not be accepted by the DOLE-RO (0.0. No. 221-21, Sec.15).
Q: What is the effect of the denial or revocation of AEP?

ANS: The following are the effects of denial or revocation:
1. If AEP is revoked because the foreign national is convicted or found guilty of
a criminal offense or fugitive from justice based on verified information or due
to verified information of grave misconduct in dealing with and ill treatment of
workers, the foreign national is disqualified to re-apply for a period of 1O years.
2. If AEP is cancelled in any of the grounds or revoked based on grounds not
specified above, the foreign national is disqualified to re-apply for a period of
5 years (0.0. No. 221-21, Sec.16).
Ill. Lal>or Standards

Employer-Employee Relationship
Q: Who is an employee?
ANS: An employee includes:
1. Any person in the employ of an employer;
2. Any individual whose work has ceased as a result of or in connection with any
current labor dispute or because of any unfair labor practice if he has not
obtained any other substantially equivalent ar;id regular employment (LABOR
CODE, Art. 219(f)); and
3. One who has been dismissed from work,'bu[ttie: !EJgaJity of the dismissal is
being contested in a forum of appropriate jurisoiction-'(D. 0. No. 40-03, Rule I,
Sec. (r)).
Q: Who is an employer?
ANS: An employer includes:
1. One who employs the services of others, one for whom employees work and
who pays their wages or salaries; or
2. Any person acting in the interest of an employer (0.0. No. 40-03, Rule I, Sec.
1(s)).
Test to Determine Existence

Q: What are the tests to determine the existence of employer-employee
relationship?
ANS: In determining the existence of employer-employee relationship, the following
tests may be applied:
1. Four-fold test (Philippine Global Communications, Inc., v. De Vera, G.R. No.
157214, June 7, 2005); and
2. Two-tiered test (Francisco v. NLRC, G.R No. 170087, August 31, 2006).
Q: What is the four-fold test? (SPa-DiC)

ANS: The four-fold test is a test to determine the existence of employer-employee
relationship by considering the following factors:
1. .§.election and engagement of the employee;
2. Payment of wages;

lOMoARcPSD|11893536
3. Power of Dismissal; and

4. Power to ~ontrol the employee's conduct (Philippine Global Communications,
Inc., v. De Vera, G.R. No. 157214, June 7, 2005).
Q: What is the control test?

ANS: The control test, or "means-and-method control test", determines 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. The greater the supervision and control the hirer exercises, the more
likely the worker is deemed an employee (Sonza v. ABS-CBN Broadcasting Corp., G.R.
No. 138051, June 10, 2004).
Q: How can the elements of the four-fold test and the control test be established to
prove employer-employee relationship?
ANS: There is no hard and fast rule designed to establish the aforesaid elements. Any
competent and relevant evidence to prove the relationship may be admitted. Identification
cards, cash vouchers, social security registration, appointment letters or employment
contracts, payrolls, organization charts, and personnel lists, serve as evidence of
employee status (Tenazas v. R. Villegas Taxi Transport, G.R. No. 192998, April 2, 2014).
Note: To operate against an employer, proof of existence of such power is enough; the
power of control need not have been actually exercised (Vinoya v. NLRC, G.R. No.
126586, February 2, 2000).
Q: When does the two-tiered test apply in determining the existence of employer-
employee relationship?
ANS: In certain cases, the control test is not sufficient to give a complete picture of the
relationship between the parties, owing to the complexity of such a relationship where
several positions have been held by the worker and where there is no written agreement
or terms of reference to base the relationship on. The better approach would therefore be
to adopt a two-tiered test involving:
1. The putative employer's power to control the employee with respect to the
means and methods by which the work is to be accomplished; and
2. The underlying economic realities of the activity or relationship. The proper
standard of economic dependence which is an aspect to be considered under
economic realities is whether the worker is dependent on the alleged
employer for his continued employment in that line of business (Francisco v.
NLRC, G.R. No. 170087, August 31, 2006).
Q: What is the relationship between jeepney and taxi drivers and their operators
under the boundary system?
ANS: The relationship between jeepney owners/operators on one hand and jeepney and
taxi drivers on the other under the boundary system is that of employer-employee and not
of lessor-lessee. In the case of jeepney owners/operators and jeepney drivers, the former
exercise supervision and control over the latter. The owner as holder of the certificate of
public convenience must see to it that the driver follows the route prescribed by the
franchising authority and the rules promulgated as regards its operation. The fact that the
drivers do not receive fixed wages but get only that in excess of the so-called "boundary"
they pay to the owner/operator is not sufficient to withdraw the relationship between them
from that of employer and employee (Jardin v. NLRC, G.R. No. 119268, February 23,
2000).
The existence of a vendor-vendee relationship between the operator and the driver under
a boundary-hu/og system which is essentially a contract to sell does not negate the
existence of an employer-employee relationship (Villamaria v. Court of Appeals, G.R. No.
165881, April 19, 2006).

lOMoARcPSD|11893536
BEDAN RED BOOK

Volume I • Series of 2022
Employee vs. Independent Contractor

Q: What is the difference between employees and independent contracts?
ANS: Independent contractors often present themselves to possess unique skills,
expertise or talent to distinguish them from ordinary employees. The control test is the
most important test our courts apply in distinguishing an employee from an independent
contractor. This test is based on the extent of control the hirer exercises over a worker.
The greater the supervision and control the hirer exercises, the more likely the worker is
deemed an employee. The converse holds true as well - the less control the hirer
exercises, the more likely the worker is considered an independent contractor (Sonza v.
ABS-CBN Broadcasting Corporation, G.R. No. 138051, June 10, 2004).
The presumption is that when the work done is an integral part of the regular business of
the employer and when the worker, relative to the employer, does not furnish an
independent business or professional service, such work is a regular employment of such
employee and not an independent contractor (Begino v. ABS-CBN Corporation, G.R. No.
199166, April 20, 2015).
A. CONDmONSOFEMPLOYMENT
Covered Employees/Workers
Q: Who are the employees not covered ,QY Title I, Bqok Ill of the Labor Code
(Working Conditions and Rest Periods)? r'·•·· ·••• . .. ,
ANS: The following persons are not covered by Title I, BPok Ill of the Labor Code
(Working Conditions and Rest Periods) ifthjy qualify for ex,mp!ion under the conditions
set forth in IRR of the LaborCode, Book 111, Rule I, Sec. 2:
1. Government employees whether employed by the National Government or
any of its political subdivision,:Jncluding those 'employed in government-
owned and/or controlled corporations; .. •. •
2. Managerial employees if they n;ieet all ofttie
a. Their primary duty consists.pf the manage
which they are employed ofbf a department or subdivision thereof;
b. They customarily and regul$rlY dir~ctthe work of 2 or more employees
therein; and
c. They have the authority to hire or fire employees of lower rank; or their
suggestions and recommendations as to hiring and firing and as to the
promotion or any other change of status of other employees, are given
particular weight;
3. Officers or members of a managerial staff if they perform the following
duties and responsibilities:
a. The primary duty consists of the performance of work directly related to
management policies of their employer;
b. Customarily and regularly exercise discretion and independent
judgment;
c. (i) Regularly and directly assist a proprietor or a managerial employee
whose primary duty consists of the management of the establishment
in which he is employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or technicalities requiring
special training, experience or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
d. Who do not devote more than 20% of their hours worked in a workweek
to activities which are not directly and closely related to the performance
of the work described in paragraphs (a), (b) and (c) above;

lOMoARcPSD|11893536
4. Domestic servants and persons in the personal service of another if they

perform such services in the employer's home which are usually necessary
or desirable for the maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as well as the
members of his employer's household;
Note: The members of the family of the employer pertain to those who are
dependent on him for support (LABOR CODE, Art. 82).
5. Workers who are paid by results, including those who are paid on piece-
work, "takay", "pakiao" or task basis, and other non-time work if their output
rates are in accordance with the standards prescribed under Sec. 8, Rule VII,
Book Three of these regulations, or where such rates have been fixed by the
Secretary of Labor and Employment in accordance with the aforesaid
Section; and
6. Non-agricultural field personnel if they regularly perform their duties away
from the principal or branch office or place of business of the employer and
whose actual hours of work in the field cannot be determined with reasonable
certainty (/RR of the LABOR CODE, Book Ill, Rule/, Sec. 2).
Q: What are the differences between a managerial employee under labor

standards and under labor relations? ·
ANS: The following are the differences between a inan'agerial employee under labor
standards and labor relations:
Managerial Employees Managerial Employees

(Labor Standards) (Labor Relations)
Art. 82 Art. 219 (m)
As to ·• only purpose of Used only for the purpose of Book
Application BookIll(i.e., working conditions, V -- (i.e., forming and joining
r¥t periods, etc.) unions,· certification elections,
collective bargaining) (National
Sugar Ref;neries Corp v. NLRC,
GR. No'. 101761, March 24,
. 1993)
Asto One whoseprlmary duty consists Onewho is vested with powers or
Duties of the management of 'the prerogatives to lay down and
establishment in which they are execute management policies
employed or of a department or and/or to hire, transfer, suspend,
subdivision thereof and to other lay-off, recall, discharge, assign
members of the managerial or discipline employees (LABOR
staff (LABOR CODE, Art. 82) CODE, Art. 212(m))
Asto Supervisors are deemed Supervisors are not members of
Inclusion of members of the managerial staff the managerial staff (National
Supervisors (National Sugar Refineries Corp Sugar Refineries Corp v. NLRC,
v. NLRC, G.R. No. 101761, G.R. No. 101761, March 24,
March 24, 1993) 1993)
(LABOR CODE, Art. 82 and 219(m)).
Q: What are the types of managerial employees?

ANS: The 3 types of managerial employees are the following:
1. First-Line Managers - the lowest level in an organization at which individuals
are responsible for the work of others is called first-line or first-level
management. First-line managers direct operating employees only; they do
not supervise other managers. Examples of first-line managers are the

lOMoARcPSD|11893536
"foreman" or production supervisor in a manufacturing plant, the technical

supervisor in a research department, and the clerical supervisor in a large
office. First-level managers are often called supervisors;
2. Middle Managers - the term middle management can refer to more than one
level in an organization. Middle managers direct the activities of other
managers and sometimes also those of operating employees. Middle
managers' principal responsibilities are to direct the activities that implement
their organizations' policies and to balance the demands of their superiors
with the capacities of their subordinates. A plant manager in an electronics
firm is an example of a middle manager; and
3. Top Managers - composed of a comparatively small group of executives;
top management is responsible for the overall management of the
organization. It establishes operating policies and guides the organization's
interactions with its environment. Typical titles of top managers are "chief
executive officer," "president," and "senior vice-president". Actual titles vary
from one organization to another and are not always a reliable guide to
membership in the highest management classification (United Pepsi-Cola v.
Laguesma, G.R. No. 122226, March 25, 1998).
Hours of Work
Q: What are compensable hours?
ANS: Compensable hours worked shall in(lh;i~13,;..•..
1. All time during which an employee /istequired;to be on duty or to be at a
prescribed workplace; .:c.
2. All time during which an employee is suffered or permitted to work (/RR of the
LABOR CODE, Book Ill, Rufe I, .~ec. 3); and .
3. Rest periods of short duration dµring working hours Which shall not be more
than 20 minutes shall be counted;as hours worked (!RR of the LABOR CODE,
Book If/, Rule I, Sec. 7). ··· ·
Q: What is the normal hours of work?

ANS: The normal hours of work of any employee shall not exceed 8 hours a day (LABOR
CODE, Art. 83).
Q: What are the exceptions to the general rule on normal hours of work (i.e., not
exceeding eight hours a day)?
ANS: By way of exceptions, the said provision does not apply to:
1. Health personnel in cities and municipalities with a population of at least
1,000,000 or in hospitals and clinics with a bed capacity of at least 100 shall
hold regular office hours for 8 hours a day, for 5 days a week, exclusive of
time for meals, except where the exigencies of the service require that such
personnel work for 6 days or 48 hours, in which case, they shall be entitled to
an additional compensation of at least 30% of their regular wage for work on
the 6th day (LABOR CODE, Art. 83); and
2. Compressed Workweek (DOLE Advisory No. 2-04).
Q: Who are included in the term "health personnel"?

ANS: "Health personnel" include resident physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants, and all other hospital or clinic personnel (LABOR
CODE, Art. 83).
Q: What are the principles in determining hours worked?

ANS: The following general principles shall govern in determining whether the time spent
by an employee is considered hours worked:

lOMoARcPSD|11893536
1. All hours are hours worked which the employee is required to give his
employer, regardless of whether or not such hours are spent in productive
labor or involve physical or mental exertion;
2. An employee need not leave the premises of the work place in order that his
rest period shall not be counted, it being enough that he stops working, may
rest completely and may leave his work place, to go elsewhere, whether
within or outside the premises of his work place;
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 was with the knowledge of his
employer or immediate supervisor; and
4. The time during which an employee is inactive by reason of interruptions in
his work beyond his control shall be considered working 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 (/RR of the LABOR CODE, Book ///,Rule I,
Sec. 4).
Q: What is the allowed time for meal breaks?

ANS: Subject to such regulations as the Secre_taryof labor may prescribe, it shall be
the duty of every employer to give his employees not Jess than 60 minutes time-off for
their regular meals (LABOR CODE, Article 85.).
Q: What are the rules on meal and rest periods?

ANS: The following are the rules on meal and rest periods·,
1. Meal periods should not be less than 60 minutes. It is non-compensable
except when during the so-called meal period, the laborers are required to
standby for emergency work, or said meal hour is not one of complete rest,
such p~riod is considered overtime (hours worked) (Pan American World
Airways System v. Pan American Employees Association, G.R. No. L-16275,
February 24, 1961);
2. Meal period may be less than 60 minutes, but should not be less than 20
minutes and the shortened meal time must be with full pay, under the
following instances:
a. Where the work is non-manual work fn nature or does not involve
strenuous physical exertion;
b. Where the establishment regularly operates not less than 16 hours a
day;
c. In cases of actual or impending emergencies or there is urgent work to
be performed on machineries, equipment or installations to avoid serious
loss which the employer would otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods
(/RR of the LABOR CODE, Book Ill, Rule /, Sec. 7); and
3. If less than 20 minutes, it becomes only a rest period and is considered as
work time, e.g., coffee breaks running from 5-20 minutes are considered as
compensable working time (/RR of the LABOR CODE, Book Ill, Rule I, Sec.
7).
Q: What are the rules on power interruptions or brownouts with respect to

compensable hours?
ANS: DOLE Policy Instruction No. 36 provides for the following rules:
1. Brownouts of short duration not exceeding 20 minutes are compensable
hours worked; and

lOMoARcPSD|11893536
2. Brownouts running for more than 20 minutes may not be treated as hours
worked provided any of the following conditions are present:
a. The employees can leave their workplace or go elsewhere whether
within or without the work premises; or
b. The employees can use the time effectively for their own interest
(DOLE Policy Instruction No. 36).
Q: When is waiting time considered part of working time of an employee?

ANS: The following instances of waiting time are considered part of working time of an
employee:
1. When waiting is an integral part of his work or the employee is required or
engaged by the employer to wait; or
2. When an employee who is required to remain on call in the employer's
premises or so close thereto that he cannot use the time effectively and
gainfully for his own purpose shall be considered as working while on call. An
employee who is not required to leave work at his home or with company
officials where he may be reached is not working while on call (/RR of the
LABOR CODE, Book Ill, Rule I, Sec. 5).
Q: What is the rule on payment of night shift differential?

ANS: Every employee shall be paid a nigllt_li)hift differential of not less than 10% of his
regular wage for each hour of work performed between ten o'clock in the evening (10:00
p.m.) and six o'clock in the morning (6:00 a,rp,), wtiether or __
flQt such period is part of the
worker's regular shift (LABOR CODE, Art 8{;). .:'. , ..
Q: What is the rule on payment of overtime work? . .

ANS: Work may be performed beyond 8 hours a day provf;:lec;l that the employee is
paid for the overtime work, an additional e<,ir,npensationequivalent to his regular wage
plus at least 25% thereof. Work performed beyond 8 hours on a holiday or rest day shall
be paid an additional compensation .equivale,ot to the rc1.t
pf t~~, fi~it,?,hours on a holiday
or rest day plus at least 30% thereof (LABOR CODE, Arl,:BE1,C;
, ,,
: 1 i' •· •••v;:• .. • .;• ...•;,.:•,'
Q: What are the rules on accounting for e~ployee's undertime or absences?

ANS: Undertime work on any particular daytll)tl~hqot be offset by overtime work on any
other day. Permission given to the employft to/gq,09.,l~~ye on some other day of the
week shall not exempt the employer from paying fhe adaifional compensation required
in this Chapter - Hours of Work (LABOR CODE, Art. 88). The rule is to deduct undertime
or absences against the employee's accrued leave but pay him the overtime to which he
is rightfully entitled (Detective and Protective Bureau, Inc., v. United Employees
Welfare Ass'n., G.R. No. L-4337, December 29, 1951).
Q: What is the basis for the computation of overtime pay?

ANS: For purposes of computing overtime and other additional remuneration as
required by Chapter I, Title I, Book Three of the Labor Code, the "regular wage" of an
employee shall include the cash wage only, without deduction on account of facilities
provided by the employer (LABOR CODE, Art. 90).
Q: What are the exceptions to the general rule that overtime pay is compensable?
(CBB)
ANS: The exceptions to the general rule that overtime pay is compensable are the
following:
1. _g_ompressedWorkweek (DOLE Advisory No. 02-04, Part Ill, par.2);
2. Written contracts with §.uilt-in overtime and with the imprimatur of the
employee (Engineering Equipment, Inc., v. Minister of Labor, G.R. No. L-
64967, September 23, 1985); and

lOMoARcPSD|11893536
3. When the waiver is made in consideration of §enefits and privileges which

may be more than what will accrue to them in overtime pay (MERALCO
Workers Union v. Manila Electric Company, G.R. No. L-11876, May 29,
1959).
Q: When can an overtime work may be compelled by an employer? (War-LUNS)

ANS: Any employee may be required by the employer to perform overtime work in any
of the following cases:
1. When the country is at War or when any other national or local emergency
has been declared by the National Assembly or the Chief Executive;
2. When it is necessary to prevent boss of life or property or in case of imminent
danger to public safety due to an actual or impending emergency in the
locality caused by serious accidents, fire, flood, typhoon, earthquake,
epidemic, or other disaster or calamity;
3. When there is .!J.rgentwork to be performed on machines, installations, or
equipment, in order to avoid serious loss or damage to the employer or some
other cause of similar nature;
4. When the work is !fecessary to prevent loss or damage to perishable goods;
and
5. Where the completionm continuat(on of the work started before the 8th hour
is necessary to prevent .§.erious obstruction or prejudice to the business or
operations of the employ.er. ·
Note: Any employee required to render overttmewo~k under thi,s Article shall be paid the
additional compensation· required in this Chapter (LABOR CODE, Art. 89).
Q: What is Compressed Workweek (CWW)? .

ANS: The CWW s,cheme is an alternative arrangement whereby the normal workweek
is reduced to less than 6 days but the total number of normal hours per week remains at
48 hours. The normal workday is increa_sed to more than 8 hoj_1rsbut not to exceed
12 hours, without corresponding overtime premium. The tahcept can be adjusted
accordingly depending on the normal workweek of the company (DOLE Advisory No. 04-
2010, Part Ill. par. 1). '
Q: What are the conditlops of a vafjd CWW scl)eme? · ..

ANS: The conditions of a valid C;WWscheme are t~e following:
1. The scheme is expressly and voluntarily supported by majority of the
employees affected;
2. In firms using substances, or operating in conditions that are hazardous to
health, a certification is needed from an accredited safety organization or
the firm's safety committee that work beyond 8 hours is within the limits or
levels of exposure set by DOLE's occupational safety and health standards;
and
3. The DOLE-RO is duly notified (DOLE Advisory No. 02-04, Part IV, par. 1).
Q: What are the effects of CWW?

ANS: A CWW scheme, which complies with the foregoing conditions, shall have the
following effects:
1. Work beyond 8 hours will not be compensable by overtime premium provided
the total number of hours worked per day shall not exceed 12 hours;
Exception: Where there is a more favorable practice existing in the firm;
2. Employees under a CWW scheme are entitled to meal periods of not less
than 60 minutes, consistent with Art. 85 of the Labor Code; and
3. Adoption of the CWW scheme shall in no case result in diminution of existing
benefits (DOLE Advisory No. 02-04, Part IV, par. 2).

lOMoARcPSD|11893536
Q: What is flexible work arrangement?

ANS: Flexible work arrangements refer to alternative arrangements or schedules other
than the traditional or standard work hours, workdays or workweek. The following are the
flexible work arrangements which may be considered:
1 . Compressed workweek;
2. Reduction of workdays - where the normal workdays per week are reduced
but should not last more than 6 months;
3. Rotation of Workers - where the employees are rotated or alternatively
provided work within the workweek;
4. Forced Leave - refers to one where the employees are required to go on
leave for several days or weeks utilizing their leaves credit if there are any;
5. Broken time schedule - where the work-hours within the day or week
remain;
6. Flexi-holidays schedule - where the employees agree to avail the holidays
at some other days provided there is non-diminution of existing benefits as a
result of such arrangements (D.A No. 2-2009); and
7. Gliding or Flexi-Time schedule - where the employees are required to
complete the core workhours in the establishment but are free to determine
their arrival and departure (D.A !}lo. 4-2010).
Q: What is the purpose of flexible work aengement?

ANS: One of the coping mechanism remedial measures times of economic
difficulties and national emergencies. At'!QtJli90,."of fle)l.iple work arrangements is
considered as a better alternative than the :OH~tetgni~on of the services of the
employees or the total clos1,.1re
of the establishment. Anchored on voluntary basis and
conditions mutually acceptable to both the employer and err,ployees, it is recognized as
beneficial in terms of reduction of business costs and, helps in saving jobs while
maintaining competitiveness and productivity:in industries,(O.A No. 2-2009).
Q: What is needed prior implementation ofthe flexible work arr.angements?

ANS: The employer shall notify the Dep$~ent ltm.'1!-lfJ~/t'\~ai Office which has
jurisdiction over the workplace, of the adopti9h of any of ffieVttl'!,Hblework arrangements
(O.A No. 2-2009).
Q: What is Telecommuting?
ANS: Telecommuting refers to a work from ari alterria.tfve workplace with the use of
telecommunications and/or computer technologies. An employer in private sector may
offer a telecommuting program to its employees on a voluntary bases, and upon such
terms and conditions as they may mutually agree upon: Provided, That such terms and
conditions shall not be less than the minimum labor standards set by law, and shall include
compensable work hours, minimum number of work hours, overtime, rest days, and
entitlement to leave benefits (R.A. No. 11165, otherwise known as "Telecommuting Act",
Sec. 4).
Q: What are the provisions of Telecommuting Agreement?

ANS: To effectively implement the telecommuting program, the employer and
employees shall adhere to and be guided by the mutually agreed policy or telecommuting
agreement which stipulates for the following conditions, including but not limited to:
1. Eligibility;
2. Applicable code of conduct and performance evaluation assessment;
3. Appropriate alternative workplace/s;
4. Use and cost of equipment;
5. Workdays and/or hours;
6. Conditions of employment, compensation, and benefits particularly those
unique to telecommuting employees;

lOMoARcPSD|11893536
7. Non-diminution of benefits;
8. Occupational safety and health;
9. Observance if data privacy policy;
10. Dispute settlement; and
11. Termination or change of work arrangement (/RR of R.A. No.11165, Sec. 3).
Q: How does a Telecommuting Agreement terminated or changed?

ANS: Termination or change may be done in accordance with the telecommuting policy
or agreement, without prejudice to the employment relationship and working conditions of
employee, at no cost to the latter (/RR of R.A. No. 11165, Sec. 3).
Q: What are the rights of employees in a telecommuting agreement?

ANS: The following are the rights of an employee in a telecommuting agreement:
1. Fair treatment - The employer must ensure that telecommuting employees
are given the same treatment as that of comparable employees working at
the employer's premises. All telecommuting employees shall be covered by
the same set of applicable rules and existing CBA, if any;
a. Receive a rate pay, including overtime and night shift differential, and
other similar monetary benefits not lower than those provided in
applicable laws, and/or CBA;
b. Have the right to rest days, regular holidays, and special nonworking
days;
c. Have the .equivalent workload and performance as those of who work in
the premises; provided, there is an ·agreement to the performance
standards that is appropriate to the location of those who do not work
within the premises of the employer; ·
d. Without additional costs, must have the same access to training and
career development opportunities as those who work within the premises
of the employer; ·
e. Without additional costs, must receive the appropriate training on
technical equipment at their disposal, and the characteristics and
coni:litions of telecommuting; and
f. They shall nave the same collective rights as the workers in the
employer's premises, including access to safety and health services
when necessary, as required by Republic Act No. 11058 and Department
Order No.198, Series of 2018, and· shall not be barred from
communicating with worker's representatives;
2. Non-Isolation - Employers shall also have the duty to ensure that its
employees are not isolated through giving them the opportunity to meet their
colleagues on a regular basis and shall be given access to the regular
workplace and company information (/RR of R.A. No. 11165, Sec. 4); and
3. Data protection - The employer and the employee must agree on the
protection of personal information and shall utilize available technologies that
promote security and privacy. The employee shall be informed of all the
relevant laws and company rules concerning data protection. Employees
shall commit to the company's data privacy policy and ensure that confidential
and proprietary information are always protected and utilized only in
accordance with the requirements of the employer (/RR of R.A. No. 11165,
Sec. 5).
Rest Periods
Q: What is the rule on employee's right to weekly rest day?
ANS: A weekly rest day is a rest period provided for employees which shall not be less
than 24 consecutive hours after every 6 consecutive normal workdays of the employee
(LABOR CODE, Art. 91(a)).

lOMoARcPSD|11893536
BEDAN RED BOOK •.

Note: All establishments and enterprises may operate or open for business on Sundays
and holidays provided that the employees are given the weekly rest day and the benefits
provided under the law (/RR of the LABOR CODE, Book Ill, Rule Ill, Sec. 2).
Q: Who determines and schedules weekly rest day?

ANS: The employer shall determine and schedule the weekly rest day of his employees
subject to Collective Bargaining Agreement (CBA) and to such rules and regulations as
the Secretary of Labor may provide (LABOR CODE, Ari. 91 (b)).
Q: When may the employee decide on the schedule of the weekly rest day?
ANS: The employer shall respect the preference of employees as to their weekly rest
day when such preference is based on religious grounds (LABOR CODE, Ari. 91).
Note: Where, however, the choice of the employee as to his rest day based on religious
grounds will inevitably result in serious prejudice or obstruction to the operations of the
undertaking and the employer cannot normally be expected to resort to other remedial
measures, the employer may so schedule the weekly rest day of his choice for at least
2 days in a month (!RR of the LABOR CODE, Book Ill, Rule Ill, Sec. 4).
Q: How shall the employee make known ;his preferred rest day based on religious
grounds to his/her employer? ....
ANS: The employee shall make known hj-$,preference to the employer in writing at
least 7 days before the desired effectivity of:the initial rest day so preferred (/RR of the
LABOR CODE, Book Ill, Rule Ill, Sec. 4). .
Q: Enumerate the instances when an eniployer may compel his/her employees to

work on a rest day. (WE-CAMP) ·
ANS: While generally the employee cannot be compelled to;render work during his/her
scheduled rest day, an employer may require any of his employees to work on his
scheduled rest day for the duration of th_efollowing emergencies and exceptional
instances: '<"~ ,
1. When the work is necessary to;s@Vailof favbraQJjt'Jfeather or environmental

conditions where performance d_(quality of work is dependent thereon;
2. In case of actual or impending Sl17ergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic;of other disaster or calamity to prevent
loss of life or property, or in case'ii'Of:'foroe
majeure or imminent danger to
public safety;
3. Where the nature of the work is such that the employees have to work
continuously for 7 days in a week or more, as in the case of the ~rew
members of a vessel to complete a voyage and in other similar cases;
4. In the event of Abnormal pressure of work due to special circumstances,
where the employer cannot ordinarily be expected to resort to other measures;
5. In cases of urgent work to be performed on .Machineries, equipment, or
installations to avoid serious loss which the employer would otherwise suffer;
and
6. To prevent serious loss of ferishable goods (/RR of the LABOR CODE, Book
Ill, Rule Ill, Sec. 6, par. 1).
Note: No employee shall be required against his will to work on his scheduled rest day
except under circumstances provided in this Section: Provided, however, that where an
employee volunteers to work on his rest day under other circumstances, he shall express
such desire in writing, subject to the provisions of Sec. 7 hereof regarding additional
compensation (/RR of the LABOR CODE, Book Ill, Rule Ill, Sec. 6, par. 2).
Q: What is the rate of additional compensation for work on a rest day, Sunday or
holiday work?
ANS: Where an employee is made or permitted to work on a rest day, Sunday or a

lOMoARcPSD|11893536
holiday, the following additional compensation shall be applied:
Day Rate of Additional Compensation

I
Work on scheduled rest day 30% of regular wage
Work on Sunday when it is his 30% of regular wage

established rest day
No regular workdays and no specific rest 30% of regular wage for work performed on
days Sundays and holidays
Work on special holiday 30% of regular wage
Work on special holiday falling on 50% of regular wage

scheduled rest day
Work on regular holiday falling on 160% of regular wage (LABOR CODE, Art.
scheduled rest day 93).
Note: Where the CBA or other applicable employment contract stipulates the payment of
a higher premium pay than that prescribed under this Article, the employer shall pay such
higher rate (LABOR CODE, Art. 93).
Holidays
Q: What are regular holidays and nationwide special holidays?

ANS: The following are the regular holidays and nationwide special holidays:
Regular Holidays:
a. New Year's Day - January 1;
b. Araw ng Kagitingan (Bataan and Corregidor Day) - Monday nearest April
g-
c. MaundyThursday - Movable date;
d. Good Friday- Movable date;
e. Labor Day - Monday nearest May 1;
f. Independence Day- Monday nearest June 12;
g. National Heroes Day~ Last Monday of August;
h. Bonifacio Day- Monday nearest November 30;
i. Christmas Day - December 25;
j. Rizal Day - Monday nearest December 30;
k. Eidul Fitr - Movable date; and
I. Eidul Adha - Movable date.
Nationwide Special Holidays:
a. All Saint's Day - November 1;

b. Last Day of the Year- December 31 (E.O. No. 292, as amended by R.A. No.
9492, R.A. No. 9849);
c. Ninoy Aquino Day - August 21 (R.A. No. 9492, July 25, 2007);
d. Feast of the Immaculate Conception of Mary- December 8 (R.A. No. 10966,
Sec. 1); and
e. Other days declared by law.
Q: Who are not covered by the rule on holiday pay?

ANS: The rule on holiday pay shall apply to all employees except:
1. Those of the government and any of the political subdivision, including
GOCCs;
2. Those of retail and service establishments regularly employing less than 10

lOMoARcPSD|11893536
workers;
3. Domestic helpers and persons in the personal service of another;
4. Managerial employees as defined in Book Three of the Code; and
5. Field personnel and other employees whose time and performance are
unsupervised by the employer including those who are engaged on task or
contract basis, purely commission basis, or those who are paid a fixed amount
for performing work irrespective of the time consumed in the performance
thereof (/RR of the LABOR CODE, Book Ill, Rule IV, Sec. 1).
Q: What is holiday pay?

ANS: Holiday pay refers to the payment of the regular daily wage for any unworked
regular holiday (/RR of the LABOR CODE, Book Ill, Rule IV, Sec. 3).
Q: What is the Rule on Compensability?

ANS: Employee is entitled to at least 100% of his/her minimum wage rate even if he/she
did not report for work, provided he/she is present or is on leave of absence with pay on
the work day immediately preceding the holiday (2020 Handbook on Workers' Statutory
Monetary Benefits, p. 13).
Note: Legal holiday falling on a Sunday do~· not create an additional workday nor create
a legal obligation for the employer to pay <:l~{ra,aside from the usual holiday pay to its
monthly-paid employees (Wellington Jnvest~t and Manufacturing Corp v. Trajano, G.R.
No. 114698, July 3, 1995). · ··· ··
Work performed on that day merits at leastiwli:i? ~jaily wage of the employee
(2020 Handbook on Workers' Statutory Mo®tary
'~
Bene §,p".p).
Q: What is the rule on holiday pay of tead~ing personnet"pafd per lecture hour?
ANS: For faculty members paid by the hour:'by virtue of U,eir teaching contracts:
1. They are NOT entitled to paymE)N of holiday pay because they are paid only
for work actually done. Since r~gtJlar holicl9y~ 9 rt1 knC>\i([lto both school and
faculty members as "no class:tiays"; c tfie::,h!Jtterdo not expect
payment for said unworked da~, and this \\rtyin their minds when
they entered into the teaching cdntracts (Jose Rizal College v. NLRC, G.R.
No. 65482, December 1, 1987)
2. They are, how$Yer; entitled to . .. .... ,,g"!rly rate on days declared as
special holidays or when classes are ·orf or shortened on account of
typhoons, floods, rallies, and the like because the faculty member, although
forced to take a rest,does not earn what he should earn on that day (Jose
Rizal College v. NLRC, G.R. No. 65482, December 1, 1987).
Q: What is the rule on double holiday pay?

ANS: The employee is entitled to 200% of the basic wage even if said holiday is
unworked. To give employee only 100% would reduce the number of holidays (DOLE
Explanatory Bulletin, 1993; Asian Transmission Corp. v. CA, G.R. No. 144664, March 15,
2004).
The employee is entitled to 300% of the basic wage if he worked on 2 regular holidays
falling on the same day (Manual on Labor Standards, 2004).
The employee is entitled 390% of his basic wage if he reported for work on a double
holiday which is also his rest day, where he is now entitled to an additional 30% based on
the rate of 300% for that day (2020 Handbook on Workers' Monetary Statutory Benefits,
p. 22).

lOMoARcPSD|11893536
Q: What is the single holiday rule?

ANS: The employee is entitled to 100% of the basic wage provided that the employee
worked, was on leave with pay or was on authorized absence on the day prior to the
regular holiday.
Note: Employees who are on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the required holiday pay if they do not work
on such regular holiday (2020 Handbook on Workers' Statutory Monetary Benefits, p. 14).
Where the day immediately preceding the holiday is a non-workday in the establishment
or the scheduled rest day of the employee, he/she shall not be deemed to be on leave of
absence on that day, in which case he/she shall be entitled to the holiday pay if he/she
worked on the day immediately preceding the non-work day or rest day (2020 Handbook
on Workers' Statutory Monetary Benefits, p. 14).
Q: What is the effect of business closure on holiday pay?

ANS: If regular holiday occurs during:
1. Temporary or periodic shutdown and temporary cessation of work of an
establishment - the regular holidays falling within the period shall be
compensated; or
2. Cessation of operation of an enterprise due to business reverses as
authorized by the Secretary of Labor - the regular holiday may not be paid by
the employer (!RR of the LABOR CODE, Book Ill, Rule IV, Sec. 7).
Q: What is the rule if there are successive regular holidays?

ANS: To be entitled to holiday pay in case of 2 successive holidays, the employee must
be present on the day immediately preceding the first holiday or be on leave with pay
(2020 Handbook on Worker's Statutory Monetary Benefits, p. 15).
Note: Otherwise, he must work on the 1st holiday to be entitled to holiday pay on the
second regular holiday (/RR of the LABOR CODE, Book Ill, Rule IV, Sec. 10).
Service Charges
Q: What establishments are required by Labor Code to distribute service charges
to their employees?
ANS: This shall apply only to establishments collecting service charges such as hotels,
restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos
and gambling houses, and similar enterprises. including those entities operating primarily
as private subsidiaries of the Government (TRR of the LABOR CODE, Book Ill, Rule VI,
Sec. 1).
Q: Who are covered by the requirement of distributing service charges to

employees?
ANS: This Rule shall apply to all establishments collecting service charges such as
hotels, restaurants, and other similar establishments including those entities operating
primarily as private subsidiaries of the Government (/RR of Republic Act No. 11360
Entitled An Act Providing That Service Charges Collected by Hotels, Restaurants and
Other Similar Establishments be Distributed in Full to All Covered Employees Amending
for the Purpose Presidential Decree No. 442, DOLE Department Order No. 206, S. 2019,
[hereinafter /RR of R.A. No. 11360}, Sec. 1).
Covered employees refer to all employees, except managerial employees as defined

herein, under the direct employ of the covered establishment, regardless of their positions,
designations or employment status, and irrespective of the method by which their wages
are paid (!RR of RA No. 11360, Sec. 2 (a)).

lOMoARcPSD|11893536
Covered establishments refer to those that collect service charge for work or service they
offer (/RR of R.A. No. 11360, Sec. 2 (b)).
Q: How are service charges distributed?

ANS: Under R.A. No. 11360 which took effect on September 3, 2019 and superseded
Art. 96 of the Labor Code, all service charges actually collected by covered establishment
shall be distributed completely and equally, based on actual hours or days of work or
service rendered, among the covered employees, including those already receiving the
benefit of sharing in the service charges (/RR of R.A. No. 11360, Sec. 3).
T3'hMonth Pay
Q: What is 13th Month Pay?
ANS: 13th month pay is a form of monetary benefit equivalent to the monthly basic
compensation received by an employee, computed pro-rata according to the number of
months within a year that the employee has rendered service to the employer (DOLE
Bureau of Working Conditions Q & A on 13th month pay).
The 13th month pay mandated by P.D. No. 851 represents an additional income based
on wage but not part of the wage. It is equivalent to one-twelfth (1/12) of the total basic
salary earned by an employee within a calendar year (Central Azucarera De Tarlac v.
Central Azucarera De Tarlac Labor Union-NLU; G.R. No. 188949, July 26, 2010).
Q: Who are entitled to 13th month pay?

ANS: All rank-and-file employees are now entitled to a 13th month pay regardless of the
amount of basic salary that they receive in a month if their employers are not otherwise
exempted from the application of P.D. No. 851. Such employees are entitled to the
benefit regardless of their designation or employment status, and irrespective of the
method by which their wages are paid, provided that they have worked for at least 1 month
during a calendar year (Revised Guidelines on the Implementation of the 13th Month Pay
Law, No.1). ·
Q: Who are the employers exempted from the application of P.D. No. 851
(Requiring All Employers to Pay their Emplpyees a 13th-Month Pay)? (CAG)
ANS: The following employers are still not covered by P.O. No. 851:
1. Employers of those who are paid on purely ~ommission, boundary, or task
basis, and those who are paid a fixed amount for performing specific work,
irrespective of the time consumed in the performance thereof, except where
the workers are paid on piece-rate basis in which case the employer shall
grant the required 13th month pay to such workers;
Note: As used herein, workers paid on piece-rate basis shall refer to those
who are paid a standard amount for every piece or unit of work produced that
is more or less regularly replicated, without regard to the time spent in
producing the same (Revised Guidelines on the Implementation of the 13th
Month Pay Law, No. 2).
2. Employers Already paying their employees a 13th month pay or more in a
calendar year or its equivalent at the time of this issuance; and
Note: The term "its equivalent" as used on paragraph (b) hereof shall include
Christmas bonus, mid-year bonus, cash bonuses and other payments
amounting to not less than 1/12 of the basic salary but shall not include cash
and stock dividends, cost of living allowances and all other allowances
regularly enjoyed by the employee, as well as non-monetary benefits. Where
an employer pays less than required 1/12 of the employees' basic salary, the
employer shall pay the difference.

lOMoARcPSD|11893536
3. The ~overnment and any of its political subdivisions, including GOCCs,

except those corporations operating essentially as private subsidiaries of the
Government (Revised Guidelines on the Implementation of the 13th Month
Pay Law, No. 2).
Note: Under R.A. No.10361, otherwise known as "Domestic Workers Act"
or "Batas Kasambahay", domestic workers are now entitled to 13th month pay.
Q: What is the minimum amount of 13th month pay?

ANS: The minimum 13th month pay required by law shall not be less than 1/12 of the
total basic salary earned by an employee within a calendar year (Revised Guidelines on
the Implementation of the 13th Month Pay Law, No. 4, par. (a)).
Q: What is meant by "basic salary" for the purpose of computing the 13th month
pay?
ANS: The "basic salary" of an employee for the purpose of computing the 13th month
pay shall include all remunerations or earning paid by this employer for services rendered
but does not include allowances and monetary benefits which are not considered or
integrated as part of the regular or basic salary, such as the cash equivalent of unused
vacation and sick leave credits, overtime;premiurl), night differential and holiday pay, and
cost-of-living allowances. However, these salary-reUrted benefits should be included as
part of the basic salary in the cori'tput9_tjon9f :th~ 1,3tfprponth pay if by individual or
collective agreement, company practice or policy, the same. are treated as part of the
basic salary of the employees (Re.vised Guideline:, OQ the Implementation of the 13th
Month Pay Law, No. 4, par.(a)). . ..
Q: When should 13th mc;mthpay be paid?

ANS: The required 13th mont~ pay shall be paid n¢t later, ttn,fr1pecember 24 of each
year. An employer, however. may give to his employees 1/~ Df,tM required 13th month
pay before the opening of the reg\.llar school year and the otl)er half on or before the 24th
of December of every year. · ·
Note: The frequency of paytnent of this rnonetarybenefit may be the subject of agreement
between the employer and the recognized/COilective bargaining''agent of the employees
(Revised Guidelines on the lmplementationofthe 131f/ Month,Pay Law, No. 4, par. (b)).
Q: What are the rules ori the pay~~nt.of 13tJ1moflth pay for certain types of
employees? . ·
ANS: The rules on the payment of 13th month pay for certain types of employees are as
follows:
1. Employees Paid by Results - Employees paid on piece work basis are
by law entitled to the 13th month pay;
2. Employees who are paid a fixed or guaranteed wage plus commission
are also entitled to the mandated 13th month pay, based on their total
earnings during the calendar year, i.e., on both their fixed or guaranteed wage
and commission (Revised Guidelines on the Implementation of the 13th
Month Pay Law, No. 5, par. (a));
3. Those with Multiple Employers • Government employees working part
timein a private enterprise, including private educational institutions, as well
as employees working in 2 or more private firms, whether on full or part time
basis, are entitled to the required 13th month pay from all their private
employers regardless of their total earnings from each or all their employers
(Revised Guidelines of P.O. No. 851, No. 5, par. (b)); and

lOMoARcPSD|11893536
4. Private School Teachers - Private school teachers are entitled to the

required 13th month pay, regardless of the number of months they teach or
are paid within a year, if they have rendered service for at least 1 month within
a year (Revised Guidelines on the Implementation of the 13th Month Pay Law,
No. 5, par. (c)).
Q: What is the formula for the computation of 13th month pay?

ANS: The formula for the computation of 13th month pay shall be:
Total Basic Salary Earned During the Year

months Proportionate 13th Month Pay
12
(2019 Handbook on Worker's Monetary Statutory Benefits, p.39).
Q: How much is the 13th month pay of a resigned or separated employee?

ANS: An employee who has resigned or whose services were terminated at any time
before the time for payment of the 13th month pay is entitled to this monetary benefit in
proportion to the length of time he worked during the year, reckoned from the time he
started working during the calendar year up, to the time of his resignation or termination
from the service (Revised Guidelines on the Implementation of the 13th Month Pay Law,
No. 6, par. 1). ,
The 13th month pay will be computed as f(?llo~s:
Monthly Salary x Number of Months Worked

Proportionate 13th Month Pay
12 months
Q: What is a commission? .
ANS: Commission is a direct remuneration received by an agent, salesman, executor,
broker, or trustee calculated as a percentage on the amount qf his tcansactions or on the
profit to the principal (Black's Law Dictionary,' 5th Ed., clf.ing Weiner v. Swales, 217 Md.
123, 141 A 2d 749, 750).
Q: When is commission considered part of 13th month pay?

ANS: In order to be considered part of 13tj'lrnoritfrpay,ttle commission should be part
of the "basic salary" of the employee (Reyes v. NLRC, GR. No. 160233, August 8, 2007).
Q: What commissions are not deemed part of the basic salary?

ANS: Commissions paid in the nature of "productivity bonuses" are excluded from the
term "basic salary" in computing the 13th month pay. Such bonuses closely resemble
profit-sharing payments and have no clear, direct, or necessary relation to the amount of
work ·actually done by each individual employee (Philippine Duplicators, Inc., v. NLRC,
G.R. No. 110068, February 15, 1995).
B. WAGES
Q: What is wage?
ANS: Wage paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained
on a time, task, piece, or commission basis, or other method of calculating the same,
which is payable by an employer to an employee under a written or unwritten contract of
employment for work done or to be done, or for services rendered or to be rendered and
includes the fair and reasonable value, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by the employer
to the employee (LABOR CODE, Art. 97(f)).

lOMoARcPSD|11893536
Note: "Fair and reasonable value" shall not include any profit to the employer, or to any
person affiliated with the employer (LABOR CODE, Art. 97(f)).
Q: What are the differences between wage and salary?

ANS: The differences between wage and salary are:
Paid to white collar workers

denote compensation for manual and denote a higher or
labor, skilled or unskilled. superior level of employment.
Under Art. 1708 of the Civil It is not exempt from

Code, it is not subject to execution, garnishment or
execution, garnishment or attachment.
attachment except for debts
related to food, clothing, shelter
and medicines.
(Gaa v. Court of Appeals, G.R. No. L-44169, December 3, 1985).
Q: Who are excluded from the coverage of the fitte on Wages? (FaHo 2 -Co2 Ba)
ANS: The Title on Wages applies to all employees except:
1. Farm tenancy or leasehold;
2. Household or domestic helpers; ·
3. Homeworkers engaged in needle-work;
4. Workers employed in any establishment duly registered with the National
Cottage Industry Development Authority (NACIC>A)(LABOR CODE, Art. 98);
5. Workers in duly registered Cooperatives when so recommended by the
Bureau of Cooperative Development upon approval.by the SOLE (!RR of the
LABOR CODE, Book Ill, Rule VII, Sec. 3); and
6. Workers ofa fgrangay Micro Business Enterprise (R./1.No. 9178, Sec. 8).
Payment of Wages
Q: What are the forms of payment of wages?
ANS: As a general rule, wages shalt be paid in legal tender and the use of tokens,
promissory notes, vouchers, coupons, or any other form alleged to represent legal tender
is absolutely prohibited even when expressly requested by the employee (!RR of the
LABOR CODE, Book Ill, Rule VIII, Sec. 1).
Q: When should the payment of wage be made?

ANS: Wages shall be paid at least once every 2 weeks or twice a month at intervals not
exceeding 16 days. If on account of force majeure or circumstances beyond the
employer's control, payment of wages on or within the time herein provided cannot be
made, the employer shall pay the wages immediately after such force majeure or
circumstances have ceased.
The payment of wages of employees engaged to perform a task which cannot be

completed in 2 weeks shall be subject to the following conditions in the absence of a CBA
or arbitration award:
1. That payments are made at intervals not exceeding 16 days, in proportion to
the amount of work completed; and
2. That final settlement is made upon completion of the work (LABOR CODE,
Art. 103).

lOMoARcPSD|11893536
Q: What are the rules with respect to the place of payment of wages? (BETA)
ANS: As a general rule, the place of payment shall be at or near the place of
undertaking. Payment in a place other than the workplace shall be permissible only
under the following circumstances:
1. No employer shall pay his employees in any ~ar, night or day club, drinking
establishment, massage clinic, dance hall, or other similar places or in places
where games are played with stakes of money or things representing money
except in the case of persons employed in said places;
2. When payment cannot be effected at or near the place of work due to
deterioration of peace and order, or by reason of actual or impending
gmergencies caused by calamity rendering payment thereat impossible;
3. When the employer provides free Iransportation to the employees back and
forth; and
4. Analogous circumstances, but the time spent by the employees in collecting
shall be compensable hours worked (/RR of the LABOR CODE, Book Ill, Rule
VIII, Sec. 4).
Q: To whom should wages be paid?

ANS: Wages shall be paid directly to the workers to whom they are due (LABOR
CODE, Art. 105). The following are the exceptions:
1. Payment through another per~u;,n
a. In cases of force majeure rendering such payments impossible provided
said person is under a written authority given by the worker for the
purpose (LABOR CODE, Art. 105(e);; and. '
b. When authorized under existing law, including payments for insurance
premiums of the employee and union dues where the right to check-off
has been recognized by the employer in accordance with a CBA or
authorized in writing by the individual employees concerned (/RR of the
LABOR CODE, Rule VIII, Sftc. 5(b)).
2. Payment through the heirs of the worker . . .
In case the worker has died, emiployer tnl;ly pay·wages of the deceased
worker to the heirs of the latter without the necessity of intestate proceedings
(LABOR COD£, Art. 105(b)).
Procedure:
i. Claimants shall execute an affidavit attesting their relationship to the
deceased and the fact that they are his heirs, to the exclusion of all others
(Affidavit of Next of Kin);
ii. In case of a minor heir, affidavit shall be executed on his behalf by his
natural guardian or next of kin;
iii. Affidavit shall be presented to the employer who shall make payment
through the Secretary of Labor or his representative; and
iv. The representative shall act as referee in dividing the amount paid
among the heirs (LABOR CODE, Art. 105(b)).
3. Payment through a family member of the worker's family
Where the employer is authorized in writing by the employee to pay his wages
to a member of his family (/RR of the LABOR CODE, Book Ill, Rule VIII, Sec.
5(a)).
Prohibitions Regarding Wages

Q: What are the prohibitions regarding wages under the Labor Code? (IF-DR-DWID-
RefuseS)
ANS: The following are the prohibitions regarding wages under the Labor Code:
1. No employer shall limit or otherwise !nterfere with the freedom of any
employee to dispose of his wages (LABOR CODE, Art. 112, Non-Interference

lOMoARcPSD|11893536
BEDAN RED BOOK

in Disposal of Wages);
2. No employer shall ,Eorce, compel, or oblige employees to purchase
merchandise, commodities or other property from the employer or from any
other person, or otherwise make use of any store or services of such
employer or any other person (LABOR CODE, Art. 112, Non-Interference in
Disposal of Wages);
3. No employer shall make any Qeductions from the employee's wages except
when authorized to do so (LABOR CODE, Art. 113, Wage Deduction);
4. No employer shall ,Bequire the worker to make deposits from which the
deductions shall be made for reimbursement of loss of or damage to tools,
materials, or equipment supplied by the employer except when the employer
is engaged in such business requiring such deposits as determined by the
Secretary of Labor (LABOR CODE, Art. 114, Deposits for Loss or Damage);
5. No employer shall make any Qeduction from the employee's deposits for the
actual amount of the loss or damage unless the employee has been heard
thereon and his responsibility has been clearly shown (LABOR CODE, Art.
115, Limitations);
6. No employer shall k"Jlithholdany amount from the wages unless authorized
to do so (LABOR CODE, Art ...116, Withholding of Wages and Kickbacks
Prohibited);
7. No employer shaH !nduce the employee to give up any part of his wages by
force, stealth,jntimidation, threat or dismissal or by any other means without
his (worker) consent (LABOR. CODE, Art. 116, Withholding of Wages and
Kickbacks Prohibited);
8. No employer shall make Qeductions as consideration of a promise of
employment or retention of employment (LABOR CODE, Art. 117, Deduction
to Ensure Employment);
9. No employer shall Refuse to pay or reduce the wages and benefits or
otherwise discharge .the employee who has filed· any complaint under this
Title (Wages), or has testified or is about to testify in such proceedings
(LABOR coo~. Art. 118, Retaliatory Measures); and··
10. No employer sball make• any ~tatement, report, or record knowing such
statement,. report,. or record to be false in any material respect (LABOR
CODE, Art. 119, False Reporting).
Q: What are allowable wag&deductions?

ANS: Deductions from the wages of. the employees may be made by the employer in
any of the following cases:
1. When the deductions are authorized by law, including deductions for the
insurance premiums advanced by the employer in behalf of the employee as
well as union dues where the right to check-off has been recognized by the
employer or authorized in writing by the individual employee himself; and
2. When the deductions are with the written authorization of the employees for
payment to the employer agrees to do so; provided, that the latter does not
receive any pecuniary benefit, directly or indirectly, from the transaction (/RR
of the LABOR CODE, Book Ill, Rule VIII, Sec. 13, as amended by 0. 0. No.
195-18).
Q: What are the requisites of deduction for loss or damage? (SORE)

ANS: Where the employer is engaged in a trade, occupation, or business where the
practice of making deductions or requiring deposits is recognized, the former may make
wage deductions or require the employees to make deposits from which deductions
shall be made, subject to the following conditions:
1. That the employee concerned is clearly ~hown to be responsible for the loss
or damage;

lOMoARcPSD|11893536
2. That the employee is given reasonable Qpportunity to show cause why

deduction should not be made;
3. That the amount of such deduction is fair and Reasonable and shall not
exceed the actual loss or damage; and
4. That the deduction from the wages of the employee does not .§.xceed 20% of
the employee's wages in a week (/RR of the LABOR CODE, Book Ill, Rule
VIII, Sec. 14).
Facilities vs. Supplements

Q: What are facilities?
ANS: Facilities are items of expense necessary for the laborer's and his family's
existence and subsistence, so that by express provision of law, they form part of the wage
and when furnished by the employer are deductible therefrom, since if they are not so
furnished, the laborer would spend and pay for them just the same (Atok-Big Wedge
Assn. v. Atok-Big Wedge Co, G.R. No. L-7349, July 19, 1955).
Q: What are the differences between facilities and supplements?

ANS: The differences between facilities and supplements are:
Items of expense necessary constitute extra

for the laborer's and · his remuneration or special privileges,
family's existence and orbenefitsgiven to or received by the
subsistence laborers over and above their
ordinary earnings and wages
Part of the wage and thus Independent of the wage and thus
deductible therefrom not wage deductible
(SLL International Cables Specialist v. NLRC, G.R. No, -172-161,<March 2, 2011; CHAN
REVIEWER, supra at 162-163). . . .
Q: What are the requisites to deduct the amountof facilities from wages? (CAF)
ANS: When facilities are provided to an emp!oyel));the eniployer may deduct theamount
of such facilities from wages if the following requisites are present:
1. Proof must be shown that such facilities are _Qustomarily furnished by the
trade;
2. The provision of deductible facilities must be voluntarily Accepted in writing
by the employee; and
3. The facilities must be charged at .E air and reasonable value (Mabeza v.
NLRC, G.R. No. 118506, April 18, 1997).
Minimum Wage
Q: What is statutory minimum wage?
ANS: Statutory minimum wage is the lowest wage rate fixed by law that an employer can
pay his workers (/RR of RA 6727, otherwise known as the "Wage Rationalization Act",
par. (o)).
Q: What is the minimum wage rate of workers paid by results?

ANS: All workers paid by results, including those who are paid on piecework, takay,
pakyaw, or task basis, shall receive not less than the applicable statutory minimum
wage rates prescribed under the Act for the normal working hours which shall not
exceed 8 hours work a day, or a proportion thereof for work of less than the normal
working hours (/RR of the LABOR CODE, Book Ill, Rule VII, Chapter I, Sec. 9).

lOMoARcPSD|11893536
Wage Distortion
Q: Who issues a Wage Order?
ANS: A wage order is issued by the Regional Tripartite Wages and Productivity Board
(RTWPB), whenever conditions in the region so warrant, after investigating and study in
all pertinent facts; and based on the standards and criteria prescribed by the Labor
Code (LABOR CODE, Art. 123).
Q: When does a Wage Order take effect?

ANS: Any Wage Order issued by the RTWPB shall take effect 15 days after its complete
publication in at least 1 newspaper of general circulation in the region (/RR of the LABOR
CODE, Book Ill, Rule VII, Chapter Ill, Sec. 4).
Q: What is the remedy of a party aggrieved by the wage order issued by RTWPB?
ANS: Any party aggrieved by the wage order issued by the RTWPB may appeal such
order to the Commission within 10 calendar days from the publicationof such order. It
shall be mandatory for the Commission to decide such appeal within 60 calendar days
from the filing thereof (LABOR CODE, Art. 123, as amended by R.A. No. 6727). Grounds
for Appeal on Wage Order are:
1. Non-conformity with prescribed guidelines and/or procedure;
2. Questions of law; and
3. Grave abuse of discretion (National Wages Productivity Commission
Guidelines No. 01-07, Rule V, Sec. 2).
Note: The filing of the appeal does not stay the order unless the person appealing such
order shall file with the Commission, an undertaking with a._suretyor sureties satisfactory
to the Commission for the payment to the employees affected by the order of the
corresponding increase, in the event such order is affirmed (LABOR CODE, Art. 123, as
amended by R.A. No. 6727).
Q: What is wage distortion?

ANS: A wage distortion sl1all mean a situation where an increase in prescribed wage
rates results in the elimination or severe contraction of intentional quantitative differences
in wage or salary rates between and among employee groups in an establishment as to
effectively obliterate the .distinctions embodied in such "".age structure based on skills,
length of service, or other logical_bases of differentiation /LABOR CODE, Art. 124, par.
n. - - .
Q: What are the elements of wage distortion?
ANS: The elements of wage distortion are the following:
1. An existing hierarchy of positions with corresponding salary rates;
2. A significant change in the salary rate of a lower pay class without a
concomitant increase in the salary rate of a higher one;
3. The elimination of the distinction between the 2 levels; and
4. The existence of the distortion in the same region of the country (Prubankers
Association v. Prudential Bank and Trust Company, G.R. No. 131247,
January 25, 1999).
Note: In wage distortion, the basic assumption is· that there exists a grouping or
classification of employees that establishes distinctions among them on some relevant
or legitimate bases e.g., degrees of responsibility, the skills and knowledge required, the
complexity of the job, or other logical basis of differentiation. For purposes of determining
the existence of wage distortion, employees cannot create their own independent
classification, which is a matter of management judgment and discretion (Bankard
Employees Union-Workers Alliance Trade Unions v. NLRC, G.R. No. 140689, February
17, 2004).

lOMoARcPSD|11893536
Q: What are the rules on correction of wage distortion?

ANS: The rules on correction of wage distortion are as follows:
1. In an Organized Establishment (Establishment with Sole and Exclusive
Bargaining Agent): The employer and the union shall negotiate to correct
the distortions using the grievance procedure under their CBA. If it remains
unresolved, it shall be decided through voluntary arbitration 1O calendar days
from the time the dispute was referred for voluntary arbitration, unless
otherwise agreed by the parties in writing (/RR of the LABOR CODE, Book
Ill, Rule VII, Chapter Ill, Sec. 7, par. 1); and ·
2. In an Unorganized Establishment (Establishment without Sole and
ExclusiveBargaining Agent): The employer and workers shall endeavor to
correct the wage distortion. Any dispute arising therefrom shall be settled
through a National Conciliation and Mediation Board (NCMB) and if it remains
unresolved after 10 calendar days of conciliation, it shall be referred to the
appropriate branch of the NLRC (/RR of the LABOR CODE, Book Ill, Rule
VII, Chapter Ill, Sec. 7, par. 2).
Note: The mere factual existence of wage distortion does not, however, ipso facto
result to an obligation to rectify it. The lawsays, "by virtue of a law or wage order". In
requiring efforts to make corrections, the law did not intend to cover all kinds of wage
adjustments e.g., that arising from a board resolution adopting a new salary scale
(Bankard Employees Union-Workers Al/iane(i Trade Unions v. NLRC, G.R. No. 140689,
February 17, 2004). Further, the pendencyof a dispute arising from a wage distortion
shall not in any way delay the applicability:1,>fany ,increa$e in prescribed wage rates
pursuant to the provisions of law or Wage Order (LABOROODE, Art. 124, par. 6).
Q: What is the formula for resolving wage distortion?

ANS: The formula for resolving wage distortion shall be:
Existing Minimum Wage '. : •

Actual Salary = % x Prescribe<fWage lri.creas~:~.[?iJ,f9rtionAdjustment
Note: Any formula may be agreed upon and used by the parties seeking to cure the wage
distortion. The Court however approved oft~ following formula as a good formula to be
used in the case of Metropolitan Bank & Trl1$f~many Employees Union-ALU-TUCP v.
NLRC, G.R. No. 102636, September 10, 1998:.
Non-Diminution of Benefit,
Q: What is diminution of benefits? (PC-NU)
ANS: Diminution of benefits is the unilateral withdrawal by the employer of benefits
already enjoyed by the employees. There is diminution of benefits when it is shown that:
1. The grant or benefit is founded on a policy or has ripened into a fractice
over a long period;
2. The practice is !;_onsistent and deliberate;
3. The practice is Not due to error in the construction or application of a
doubtful or difficult question of law; and
4. The diminution or discontinuance is done .!J.nilaterallyby the employer (TSPIC
Corp. v. TSPIC Employees Union, G.R. No. 163419, February 13, 2008).
Q: What is Non-Diminution Rule under the Labor Code?

ANS: Nothing in this Book (Conditions of Employment) shall be construed to eliminate
or in any way diminish supplements, or other employee benefits being enjoyed at the time
of promulgation of the Labor Code (LABOR CODE, Art. 100).

lOMoARcPSD|11893536
Q: What are the exceptions to the Non-Diminution Rule? (NEW-CRIB)

ANS: As exceptions to the Non-Diminution Rule, the employer may validly deduct from
wages in the following instances:
1. tfegotiated benefits;
2. Correction of .!;_rror;
3. Wage order compliance;
4. £ontingent benefits of conditional bonus;
5. Reclassification of position;
6. Productivity Incentives; and
7. §.enefits on reimbursement basis (AZUCENA Vol. I, The Labor Code with
Comments and Cases (2016), p. 330 [hereinafter 1 AZUCENA]).
Q: When can the Non-Diminution Rule be applied? (EWP)

ANS: The Non-Diminution Rule under Art.100 of the Labor Code applies only if the
benefit is based on any of the following:
1. An gxpress policy;
2. A Written contract; or
3. A company .e_ractice (Wesleyan University-Philippines v. Wesleyan
University-Philippines faculty and Staff Assoc., G.R. No. 181806, March 12,
2014).
C. LEAVES
Service Incentive Leaf(e

Q: Who are not covered by the Service Incentive Leave (SIL) benefit?
ANS: SIL benefit applies to all employees except
1. Government employees, whether employed by the National Government or
any of its political subdivisions, including those employed in GOCCs with
original chart_ersor created under special laws;
2. Persons in the personal service of another;
3. Managerial employees, if they meet all of the following conditions:
a. Their primary duty is to manage the establishment in which they are
employed or of a department or subdivision thereof;
b. They customarily and regularly direct the work of 2 or more employees
therein; and
c. They have the authority to hire or fire other employees of lower rank; or
their suggestions and recommendations as to hiring, firing, and
promotion, or any other change of status of other employees are given
particular weight;
4. Officers or members of a managerial staff, if they perform the following duties
and responsibilities:
a. Primarily perform work directly related to management policies of their
employer;
b. Customarily and regularly exercise discretion and independent
judgment;
c. Regularly and directly assist a proprietor or managerial employee in the
management of the establishment or subdivision thereof in which he or
she is employed; or
d. Execute, under general supervision, work along specialized or technical
lines requiring special training, experience, or knowledge; or
e. Execute, under general supervision, special assignments and tasks;and
f. Do not devote more than 20% of their hours worked in a workweek to
activities which are not directly and closely related to the performance of
the work described in paragraphs a, b, and c above;

lOMoARcPSD|11893536
5. Field personnel and those whose time and performance is unsupervised by

the employer;
6. Those already enjoying this benefit;
7. Those enjoying vacation leave with pay of at least 5 days;
8. Those employed in establishments regularly employing less 1O employees
(2019 Handbook on Workers' Statutory Monetary Benefits, p.26);
9. Those engaged on task or contract basis;
10. Those paid purely commission basis;
11. Those paid in a fixed amount for performing work irrespective of the time
consumed in the performance thereof, e.g., piece-rate workers;
12. Members of the family of the employer who are dependent on him for support;
13. Those who have not rendered 1 year service; and
14. Employees of establishments exempted by the Secretary of Labor after
considering the viability or financial condition of such establishments
(UNGOS, Labor Law I (2021), [hereinafter UNGOS, Labor Law I].
Q: Why are part-time workers entitled to SIL?

ANS: The provision of the Art. 95 of the Labor Code and its implementing rules speak of
the number of months in a year for entitlement to said benefit. Thus, part-time employees
are also entitled to the full-service incentive leave benefit and not on a pro rata basis
(Advisory Opinion of the Bureau of WorkingConditions, Department of Labor and
Employment, on Conditions of EmploymenfjjfPart-time Workers).
Q: What is meant by "at least one yearof.serv~''?,, .,,,,

ANS: The term "at least one-year servictf shall mea~ ::/ervice for not less than 12
months, whether continuous or broken reckoned from the, date the employee started
working, including authorized absences and paid regular holid,iys"unless the working days
in the establishment as a matter of practice 9r policy, or that provided in the employment
contract is less than 12 months, in which case said period shall be considered as 1 year
(/RR of the LABOR CODE, Book Ill, Rule V}$ec. 3). . .
Q: What happens if SIL is not availed of?

ANS: SIL shall be commutable to its money equivalent if not used or exhausted at the
end of the year (/RR of the LABOR CODE, ~JIJ,.Rule V, Sec. 5).
Note: Under the Kasambahay Law, a domesticworkerwho has rendered at least 1 year
of service shall be entitled to an annual service incentive leave of 5 days with pay,
Provided, That any unused portion of said annual leave shall NOT be cumulative or
carried over to the succeeding years. Unused leaves shall NOT be convertible to cash
(R.A. No. 10361, Sec. 29).
Expanded Maternity leave

Q: What is the grant of expanded maternity leave benefits?
ANS: All covered female workers in government and the private sector, including those
in the informal economy, regardless of civil status or the legitimacy of her child, shall be
granted 105 days maternity leave with full pay and an option to extend for an additional
30 days without pay: Provided, That in case the worker qualifies as a solo parent under
R.A. No. 8972, or the "Solo Parents' Welfare Act", the worker shall be granted an
additional 15 days maternity leave with full pay (R.A.No. 11210, otherwise known as
"105-DAY Expanded Maternity Leave Law" (EMLL), Sec. 3, par. 1).
Note: In cases of miscarriage or emergency termination of pregnancy, 60 days maternity
leave with full pay shall be granted (R.A. No. 11210, Sec. 3, par. 3).

lOMoARcPSD|11893536
Q: What are the benefits granted under the EMLL?

ANS: The following benefits are granted under the 105-Day EMLL to the corresponding
sectors:
1. Paid leave benefit granted to a qualified female worker in the public and
private sectors, for the duration of:
a. 105 days for live childbirth, regardless of the mode of delivery, and an
additional 15 days paid leave if the female worker qualifies as a solo
parent under R.A. No. 8972, or the "Solo Parents' Welfare Act of 2000";
or
b. 60 days paid leave for miscarriage and emergency termination of
pregnancy;
Note: Employed female workers in the private sector shall receive full pay
which consists of (i) SSS maternity benefit computed based on their average
daily salary credit, and (ii) salary differential to be paid by the employer, if any.
However, female workers employed by the following exempt
establishments and enterprises shall not be entitled to the salary
differential upon submission of proofs and other necessary documents:
i. Those operating distressed establishments;
ii. Those retail/service establishments and other enterprises
employing not more than 10 workers;
iii. Those considered as micro-business enterprises and engaged in
the production, processing, or manufacturing of products or
commodities including agro-processing, trading, and services,
whose total assets are not more than 1'"3,000,000.00 in accordance
with the BMBE's Act of 2002; and
iv. Those who are already providing similar or more than the benefits
herein provided under an existing CBA, company practice or policy
(/RR ofR.A. No. 11210, Rule VI, Sec. 5).
2. An option to extend for an additional 30 days without pay in case of child
livebirth;
Note: Due notice to the employer must be in writing and must be given at
least 45 days before the end of the female worker's maternity leave. However,
no prior notice shall be necessary in the event of a medical emergency but
subsequent notice shalt be given to the employer. The above period of
extended maternity leave without pay shall not be considered gap in the
service (/RR of R.A. No. 11210, Rufe IV, Sec. 3). Further, in cases of live
childbirth, the female worker in the public sector has the option to extend her
maternity leave for an additional 30 days without pay or use her earned sick
leave credits for extended leave with pay. In case the sick leave credits are
exhausted, the vacation leave credits may be used (/RR of R.A. No. 11210,
Rule V, Sec. 4);
3. Paid maternity leave, allowances, and benefits granted to female national
athletes; and
4. Health care services for pre-natal, delivery, postpartum and pregnancy-
related conditions granted to female workers, particularly those who are
neither voluntary nor regular members of the SSS, as governed by the
existing rules and regulations of the Philippine Health Insurance Corporation
(PhilHealth) (IRRofR.A. No. 11210, Rule Ill, Sec. 2).
Q: What is the manner of enjoyment of the benefit?

ANS: Either:
1. For pregnancy/childbirth - 105 days with full pay regardless of whether
caesarian or normal delivery. May be extended for 30 days without pay, at
the option of the employee (R.A. No. 11210, Secs. 3 and 5); or

lOMoARcPSD|11893536
Note: For solo parents, there is an additional 15 days with full pay (R.A. No.
11210, Sec. 3).
2. For miscarriage or emergency termination of pregnancy - 60 days with full
pay (R.A. No. 11210, Sec. 8).
Q: How is maternity leave availed?

ANS: Maternity leave may be availed of either:
1. Prenatal - Before the actual period of delivery; and/or
2. Postnatal -After the actual period of delivery, and the leave shall not be less
than 60 days (R.A. No. 11210, Sec. 9).
Q: Can a self-employed woman who suffered miscarriage claim maternity benefits

under the Social Security Act of 1997?
ANS: Yes. Voluntary or self-employed members of the SSS are entitled to maternity
leave benefits. The Social Security Act uses the words "female member" without making
any distinction between employees and those self-employed (R.A. No. 11199, Sec. 14-A).
Note: Maternity benefits shall cover all married and unmarried women, including female
workers in the informal economy (R.A. No. 11210, Sec. 10).
Q: Is a pregnant woman allowed to claimi,naternity benefits and sickness benefits

simultaneously? ''
ANS: No. Payment of daily maternity beneutl!I. $hall be a bar to the recovery of sickness
benefits provided under RA No. 1161, as art:1ended,Qth1;1r;w•known as "Social Security
Law", for the same period for which daily maternity benefits have been received (R.A. No.
11210, Sec. 5(a)(3)). However, under the Ci.i'cular 36-V issued by the SSS dated May 24,
1997, if they have qualifying contributions schedule, they s~II be entitled to maternity
benefits. ·
Q: What happens if the female worker's eil;iployment is termin~ted?

ANS: If the childbirth, miscarriage, or emergency terriilna:.t~of pr,gnancy occurs within
15 calendar days from termination of the employment, the right to maternity leave has
already accrued and should thus be granted/Sec. 8, RA 11210).
Note: If the employee was terminated withoutjustcause, the employer must still pay the
benefit for childbirth (either 105 or 60 days) as,wellas
the applicable daily cash maternity
benefits which the employee would have received had she not been illegally terminated.
Q: What is the frequency of grant of maternity leave under EMLL?

ANS: Maternity leave shall be granted to qualified female workers in every instance of
pregnancy, miscarriage or emergency termination of pregnancy, regardless of frequency
(/RR of R.A. No. 11210, Rule IV, Sec. 4). In cases of consecutive pregnancies and
multiple childbirths resulting in overlapping maternity benefit claims, the female worker
shall be paid only one maternity benefit, regardless of the number of offspring, per
childbirth/delivery (/RR of R.A. No. 11210, Rule V, Sec. 6 and Rule VI, Sec. 7).
Q: What is the rule on the allocation of maternity leave credits?

ANS: At the option of the female worker, maternity leave credits may be allocated up to
7 days to the child's father or in case of death, absence, or incapacity of the former, to an
alternate caregiver who may be a relative within the 4th degree of consanguinity or the
current partner of the female worker sharing the same household. Written notice shall be
provided to the employers of the female worker and alternate caregiver. This benefit is
over and above the benefits under the "Paternity Leave Act of 1996". If the female worker
dies or is permanently incapacitated, the balance of the leave benefits shall accrue to
the father of the child or to a qualified caregiver (R.A. No. 11210, Sec. 6).

lOMoARcPSD|11893536
The option is not applicable in case of miscarriage or emergency termination of pregnancy

(/RR of R.A. No. 11210, Rule VIII, Sec. 1, par. 3).
Paternitvleave
Q: What is a paternity leave?
ANS: Paternity leave refers to the leave credits granted to a married male employee to
allow him to earn compensation for 7 working days without reporting for work, provided
that his spouse has delivered a child or had a miscarriage or an abortion for the purpose
of lending support to his wife during her period of recovery and/or the nursing of the newly
born child (/RR of R.A. No. 8187, Sec. 3(a)).
Q: Who are covered by R.A. No. 8187, otherwise known as "Paternity Leave Act of
1996"?
ANS: Every married male employee in the private and public sectors shall be entitled
to a paternity leave of 7 days with full pay for the first 4 deliveries of the legitimate spouse
with whom he is cohabiting (R.A. No. 8187, otherwise known as "PATERNITY LEAVE
ACT OF 1996", Sec. 2, par. 1). For purposes of this Act, delivery shall include childbirth
or any miscarriage (R.A. No. 8187, Sec. 2, par. 1).
Q: What are the conditions for entitlement of paternity leave benefits? (ECN-BMA)
ANS: A married male employee shall be entitled to paternity benefits provided that:
1. He is gmployed at the time of delivery of his child;
2. He is ~ohabiting with his spouse at the time she gives birth or suffers a
miscarriage;
3. He has !fotified his employer of the pregnancy of his wife and her expected
date of delivery subject to the provisions in the Rule.s for application of leave;
and
4. His wife has given f!irth. suffers a _Miscarriage. or an ,Abortion (/RR of R.A.
No. 8187, Sec. 3).
Q: What are the procedures that must be followed to be entitled to the grant of
paternity leave?
ANS: The procedures that must be followed to be entitled to the grant of paternity
leave are as follows: _. _. . . ..
1. Notification: A married male enwloye~ shall be entitled to paternity leave by
filing the requisite leave application form· within reasonable period prior to
the expected delivery;
2. Availment: The paternity benefits may be enjoyed by the qualified male
employee on the days immediately before, during and after the childbirth or
miscarriage of his legitimate spouse. but it shall not exceed 7 days for each
delivery; and
3. Validation Requirement: Any employee availing the paternity benefits may
be required to furnish the necessary documents, e.g., marriage certificate,
birth certificate of the newly born child, medical certificate. etc. (!RR of R.A.
No. 8187, Secs. 3, 4, and 5).
Q: What happens to the unavailed paternity leave?

ANS: Paternity leave benefit which is not availed of shall not be convertible to cash
(!RR of R.A. No. 8187. Sec. 7).
Q: What are the rules on crediting of an existing or similar leave?

ANS: Where a male employee is already enjoying the paternity leave benefits, the
following rules shall apply:
1. If the existing paternity leave benefit is greater than the benefit herein
provided, the greater benefit shall prevail; and

lOMoARcPSD|11893536
2. If the existing paternity leave is less than that provided herein, such existing
benefit shall be adjusted to the extent of the difference;
3. However, where a contract, company policy or CBA provides for an
emergencyor contingency leave without specific provisions on paternity
leave, the paternity leave as herein provided shall apply in full (/RR of R.A.
No. 8187, Sec. 9).
Parental leave for Solo Parents

Q: What is a parental leave?
ANS: Parental leave shall mean leave benefits granted to a solo parent to enable him/her
to perform parental duties and responsibilities where physical presence is required (R.A.
No. 8972, otherwise known as "SOLO PARENTS' WELFARE ACT OF 2000", Sec. 3(d)).
Q: What is the period for parental leave?

ANS: In addition to leave privileges under existing laws, parental leave of not more
than 7 working days every year shall be granted to any solo parent employee who has
rendered service of at least 1 year (R.A. No. 8972, Sec. 8).
Q: What are the conditions for entitlement of parental leave?

ANS: A solo parent shall be entitled to parental leave provided that:
1. He/she has rendered at least 1 ~r of service, whether continuous or broken,
at the time of the effectivity ofth&'Act;
2. He/she has notified his/her employer· Of. ~efe,vailment thereof within a
reasonable time period; and . ·
3. He/she has presented a Solo Parent Identification Card to his/her employer
4. (!RR of R.A. No, 8972, Art V, S&c. 19).
Q: What is the rule on the unavailed pare:ntal leave?

ANS: In the event that the parental leave ls not availed ?f, sat~
leave shall not be
convertible to cash unless specifically agr~ upon . . .,... :$ly,Jiowever, if said leave
were denied an employee as a result of non-¢<>mpliance '··tt1e
ptovisions of these Rules
by an employer, the aforementioned leave may be used as a basis for the computation of
damages (/RR of R.A. No. 8972, Arl. V, Seo,.2.()).,
Q: What is the rule on crediting of an existing' leave? otslh\iltfr

ANS: If there is an existing or similar benefit under a company policy, or a CBA or
collective negotiation agreementthe same shall be credited as such. If the same is greater
than the 7 days provided for in the Act, the greater benefit shall prevail (/RR of R.A. No.
8972, Arl. V, Sec. 21).
leave Benefits for Women Workers under R.A. No. 9710 and R.A. No. 9262
Q: What is special leave benefits for women i.e., "gynecological leave"?
ANS: Gynecological leave refers to a female employee's leave entitlement of 2 months
with full pay from her employer based on her gross monthly compensation (i.e., monthly
basic salary plus mandatory allowances) following surgery caused by gynecological
disorders, provided that she has rendered continuous aggregate employment service of
at least 6 months for the last 12 months (/RR of R.A. No. 9710, otherwise known as the
"Magna Carla of Women," Rule II, Sec. 7, par. T).
Q: What are gynecological disorders?

ANS: Gynecological disorders are disorders that would require surgical procedures such
as, but not limited to, dilatation and curettage and those involving female reproductive
organs such as the vagina, cervix, uterus, fallopian tubes, ovaries, breast, adnexa and
pelvic floor, as certified by a competent physician. Gynecological surgeries shall also

lOMoARcPSD|11893536
BEDAN RED BOOK

include hysterectomy, ovariectomy, and mastectomy (/RR of R. A. No. 9710, Rule II, Sec.
7, par. M).
Q: What are the conditions for entitlement of gynecological leave benefits?

ANS: Any female employee, regardless of age and civil status, shall be entitled to a
special leave provided she has complied with the following conditions:
1. She has rendered at least 6 months continuous aggregate employment
service for the last 12 months prior to surgery;
2. She has filed an application for special leave with her employer within a
reasonable period of time from the expected date of surgery, or within such
period as may be provided by company rules and regulations or by CBA; and
3. She has undergone surgery due to gynecological disorders as certified by a
competent physician.
Note: Prior application of leave shall not be necessary in cases requiring emergency
surgical procedure, provided that the employer shall be notified verbally or in written
form within a reasonable period of time and provided further that after the surgery or
appropriate recuperating period, the female employee shall immediately file her
application using the prescribed form (D. 0. No. 112-11, Secs. 2 and 3).
Q: What happens if the special leave benefit for women is not availed of?
ANS: The benefit shall be non-cumulative and non:convertible to cash unless
otherwise provided by a CSA (0.0. No. 112-11, Sec. 6).
Q: What if the woman employee had undergone gynecological surgery during her
maternity leave?
ANS: She is entitled only to the difference between the special leave benefit and the
maternity leave benefit (D. 0. No. 112A-12, Sec. 9).
Q: What is Violence against Women and their Children (VAWC)?

ANS: VAWC refers to any act or a series of acts committed by any person against a
woman who is his wife, former wife, or against a woman with whom the person has or had
a sexual or dating relationship, or with whom he has a common child, or against her child
whether legitimate or illegitimate, within or without the family abode, which results in or is
likely to result in physical, sexual, psychological harm or suffering, or economic abuse
including threats of such acts, battery, assault, coercion, harassment or arbitrary
deprivation of liberty. It includes, but is not l_imitedto, the following acts:
1. Physical violence refers to acts that include bodily or physical harm;
2. Sexual violence refers to an act which is sexual in nature, committed against
woman or her child. It includes, but is not limited to:
a. rape, sexual harassment, acts of lasciviousness, treating a woman or her
child as a sex object, making demeaning and sexually suggestive
remarks, physically attacking the sexual parts of the victim's body,
forcing her/him to watch obscene publications and indecent shows or
forcing the woman or her child to do indecent acts and/or make alms
thereof, forcing the wife and mistress/lover to live in the conjugal home
or sleep together in the same room with the abuser;
b. acts causing or attempting to cause the victim to engage in any sexual
activity by force, threat of force, physical or other harm or threat of
physical or other harm or coercion; and
c. prostituting the woman or her child;
3. Psychological violence refers to acts or omissions causing or likely to cause
mental or emotional suffering to the victim such as but not limited to
intimidation, harassment, stalking, damage to property, public ridicule or
humiliation, repeated verbal abuse, and marital infidelity. It includes causing
or allowing the victim to witness the physical, sexual or psychological abuse

lOMoARcPSD|11893536
of a member of the family to which the victim belongs, or to witness

pornography in any form or to witness abusive injury to pets or to unlawful or
unwanted deprivation of the right to custody and/or visitation of common
children;
4. Economic abuse refers to acts that make or attempt to make a woman
financially dependent which includes, but is not limited to the following:
a. withdrawal of financial support or preventing the victim from engaging
in any legitimate profession, occupation, business or activity, except in
cases wherein the other spouse/partner objects on valid, serious and
moral grounds as defined in Art. 73 of the Family Code;
b. deprivation or threat of deprivation of financial resources and the right
to the use and enjoyment of the conjugal, community or property owned
in common;
c. destroying household property; and
d. controlling the victim's own money or properties or solely controlling the
conjugal money or properties (/RR of the RA No. 9262, otherwise known
as the "Anti-Violence Against Women and their Children Act of 2004"
Rule II, Sec. 5(c)).
Q: When does the "right to battered wom~n leave" accrue?

ANS: At any time during the application of any protection order, investigation,
prosecution and/or trial of the criminal case, a victim of VAWC who is employed shall be
entitled to a paid leave of up to 10 days in addition to other paid leaves under the Labor
Code and Civil Service Rules and Regulations and other .existing laws and company
policies, extendible when the necessity arises as specified in the protection order (/RR of
RA No. 9262, Rule VI, Sec. 42).
Q: What is the requirement to be entitled of the benefit?

ANS: The Punong Barangay/Kagawad or prosecutor or the Clerk of Court, as the case
may be, shall issue a certification at no cost to the woman that such an action is
pending, and this is all that is required for the employer to \X>l""npfy
with the 10-day paid
leave (/RR of RA No. 9262, Rule VI, Sec. 42). For government employees, in addition to
the aforementioned certification, the employee concerned must file an application for
leave citing as basis RA No. 9262 (/RR of R.A No, 9262, Rule VI, Sec. 42).
Q: What happens if the VAWC leave is not availed of?

ANS: VAWC Leaves not availed of are non-cumulative and not convertible to cash
(/RR of R.A No. 9262, Rule VI, Sec. 42).
D. SPEC/Al GROUPSOFEMPLOYEES
Women
Q: What are acts of discrimination under Art. 133 of the Labor Code?
ANS: The following are acts of discrimination:
1. Payment of a lesser compensation, including wage, salary or other form of
remuneration and fringe benefits, to a female employee as against a male
employee, for work of equal value; and
2. Favoring a male employee over a female employee with respect to promotion,
training opportunities, study and scholarship grants solely on account of their
sexes (LABOR CODE, Art. 133).
Q: What does "sex" refer to here?

ANS: This refers to gender, not sexual orientation (UNGOS, Agrarian Law and Social
Legislation (2021), p. 251, [hereinafter UNGOS, Agrarian Law]).

lOMoARcPSD|11893536
Q: What is Discrimination against Women under the Magna Carta of Women?

(GAMC)
ANS: "Discrimination against Women" refers to:
1. Any §.ender-based distinction, exclusion, or restriction which has the effect or
purpose of impairing or nullifying the recognition, enjoyment, or exercise by
women, irrespective of their marital status, on a basis of equality of men and
women, of human rights and fundamental freedoms in the political, economic,
social, cultural, civil, or any other field;
2. Any Act or omission, including by law, policy, administrative measure, or
practice, that directly or indirectly excludes or restricts women in the
recognition and promotion of their rights and their access to and enjoyment
of opportunities, benefits, or privileges;
3. A _Measureor practice of general if it fails to provide for mechanisms to offset
or address sex or gender-based disadvantages or limitations of women, as a
result of which women are denied or restricted in the recognition and
protection of their rights and in their access to and enjoyment of opportunities,
benefits, or privileges; or women, more than men, are shown to have suffered
the greater adverse effects of those measures or practices; or
4. Discrimination _g_ompoundedby or intersecting with other grounds, status, or
condition, such as ethnicity, age, poverty, or religion shall be considered
discrimination against women und_erthis Act (f?.A. No. 9710, Chapter II, Sec.
4(b)).
Q: What is the rule on sti.pqJation against marriage? ..

ANS: It shall be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get·married, or to stipulate
expressly or tacitly upon getting married, a woman employee shall be deemed resigned
or separated, or to actually dismiss, discharge, discriminate, or otherwise prejudice a
woman employee merely by reas.on of marriage (LABOR CODE, Art. 134).
Q: What is the exceptlonto the prohibition on stipulation against marriage?

ANS: Dismissal based on this stipulation in Ute employment contract is a valid exercise
of management prerogative. The prohibition against personal or marital relationships with
employees of competitor companies upon its employees was· held reasonable because
relationships of that nature migt}t compromise the interests of the company. In laying
down the assailed company policy, the employer only a.ims to protect its interests against
the possibility that a competitor company will gain access to its secrets and procedures
(Duncan Association v. Glaxo Wei/come: G.R. No. 162994, September 17, 2004).
Q: What are prohibited acts against women workers? (DDP-RCC)

ANS: It shall be unlawful for an employer:
1. To Qeny any woman employee the benefits provided for in Book Ill, Chapter
I of the Labor Code (LABOR CODE, Art. 135(1));
2. To Qischarge any woman employed by him for the purpose of preventing such
woman from enjoying the maternity leave, facilities, and other benefits
provided under the Code (/RR of the LABOR CODE, Book Ill, RULE XII, Sec.
13(a));
3. To discharge a woman employee on account of her fregnancy, or while on
leave or in confinement due to her pregnancy (LABOR CODE, Art. 135(2));
4. To discharge or Refuse the admission of a woman upon returning to her work
for fear that she may again be pregnant (LABOR CODE, Art. 135(3));
5. To discharge any woman or child or any other employee for having filed a
_g_omplaintor having testified or being about to testify under the Code (/RR of
the LABOR CODE, Book Ill, RULE XII, Sec. 13(d)); and
6. To require as a _g_onditionfor or continuation of employment that a woman

lOMoARcPSD|11893536
employee shall not get married or to stipulate expressly or tacitly that upon
getting married woman employee shall be deemed resigned or separated, or
to actually dismiss, discharge, discriminate, or otherwise prejudice a woman
employee merely by reason of her marriage (/RR of the LABOR CODE, Book
Ill, RULE XII, Sec. 13(e)).
Minors {R.A. No. 7610, as amended byR.A. No. 9231)

Q: Who is a child?
ANS: A child refers to any person under 18 years of age (/RR of R.A. No. 9231, Chapter
1, Sec. 3(a)).
Q: What is child labor?

ANS: Child labor refers to any work or economic activity performed by a child that
subjects him/her to any form of exploitation or is harmful lo his/her health and safety or
physical, mental or psychosocial development (/RR of R.A. No. 9231, Chapter 1, Sec.
3(b)).
Q: Who is a working child?

ANS: Working child refers to any child engaged as follows:
1. When the child is below 18 year~of age, in work or economic activity that is
not child labor; and
2. When the child is below 15 yeat$ofage:
a. In work where he/she rs directly under the responsibility of his/her
parents or legal guardian al'ld where only ·members of the child's family
are employed; or
b. In public entertainment or information (/RR of R.A. No. 9231, Chapter 1,
Sec. 3(c)). ·
Q: What are the rules on employment of i;l;,ildren below 1_5y~~ts of age?

ANS: Children below 15 years of age shall~ot be emplt,yt,ide,<~pt:
1. When a child works directly undef the sole responslblfl{y of his/her parents or
legal guardian, subject to the fotowing conditions:
a. Only members of his familY:areemployed thereat;
b. The employment must notMdatlQerihe child's life, safety, health, and
morals, or impair his normal development;
c. Child must be provided with primary or secondary education;
d. A work permit must be obtained from the DOLE.
2. When the employment of the child is essential in public entertainment or
information such as cinema, theater, radio, television, or other forms of media,
subject to the following conditions:
a. An employment contract, duly approved by the DOLE, must be executed
by the parents or legal guardian of the child;
b. Employer must ensure the protection, health, safety, morals, and normal
development of the child;
c. Employer must institute measures to prevent the child's exploitation or
discrimination;
d. Employer must formulate and implement a continuing program for
training and skills acquisition of the child, subject to the approval and
supervision of competent authorities; and
e. A work permit must be obtained from the DOLE (R.A. No. 7610,
otherwise known as "Special Protection of Children against Child Abuse,
Exploitation and Discrimination Act", as amended by R.A. No. 9231, Art.
VIII, Sec. 12).

lOMoARcPSD|11893536
Q: What are the exceptions to the rule on the issuance of work permit prior to the
employment of children below 15 years of age?
ANS: In public entertainment or information, the requirements for the issuance of work
permit shall not be applicable to a child below 15 years of age who:
1. Is a spot extra or cast outright on the day of filming or taping of a project;
2. Will join auditions or VTR screenings;
3. Is part of the audience of a live TV show unless the child's participation is
expected;
4. Is picked or chosen as a contestant from the audience of a live TV show;
5. Is a contestant of a singing, dance, or talent contest for a TV show but has
not yet been selected as a semi-finalist;
6. Is a recipient of gift-giving activities in TV;
7. Is a participant in school-related performance such as play, skit or recital;
8. Is a participant in sports activities, trainings or workshops aimed at developing
the child's talent or skills; and
9. Will be featured in a documentary material (D.C. No. 2-18, Guidelines on the
Issuance of Work Permit for Children below 15 Years of Age Engaged in
Public Entertainment or Information, No. 1, par. 2).
Note: In case the child in the documentary material is engaged in child labor, the producer
shall refer the child to the nearest DOLE Regional/Provincial/Field Office for the necessary
services needed by the child and his/her family. The identity of the child laborer shall not
be disclosed (D.C. No. 2-18, No.1, par. 3).
Q: What are the hours .of work of a working child?

ANS: The following are the hours of work of a working chijd:
1. For a child below 15 years of age, the hours of work ~hall not be more than
20 hours a week, provided that the work shall not be]more than 4 hours at
any given day; · •
2. For a child 15 years of age, but below 18; the hours of work shall not be more
than 8 hours a day, and in no case beyond 40 hours a week; and
3. No child below 15 years of age shall be allowec;lto work between eight o'clock
in the evening (8:00 p.m.) and six o'clock in the morning (6:00 a.m.) of the
following day and no child 15 years of age but below 18 shall be allowed to
work between ten o'clock in the evening' (10:00. p.m.) and six o'clock in the
morning (6:00 a.m.) ofthe followlng day (IRR Of R.A. No. 9231, Chapter 5,
Sec. 15, par. 1).
Note: Sleeping time as well as travel time of a child engaged in public entertainment or
information from his/her residence to his/her workplace shall not be included as hours
worked without prejudice to the application of existing rules on employees compensation
(IRRofR.A. No. 9231, Chapter 5, Sec. 15, par. 2).
Q: Who administers the working child's income?

ANS: The wages, salaries, earnings and other income of the working child shall belong
to him/her in ownership and shall be set aside primarily for his/her support, education or
skills acquisition and secondarily to the collective needs of the family: Provided, That not
more than 20% of the child's income may be used for the collective needs of the family.
The income of the working child and/or the property acquired through the work of the child
shall be administered by both parents. In the absence or incapacity of either of the
parents, the other parent shall administer the same. In case both parents are absent or
incapacitated, the order of preference on parental authority as provided for under the
Family Code shall apply (R.A. No. 7610, as amended by R.A. No. 9231, Art. VIII, Sec. 12-
8).

lOMoARcPSD|11893536
Q: What is the rule on the child's access to education?

ANS: Every child shall have access to formal or non-formal education.
1. In all cases where the child is allowed to work, the employer shall provide the
child with access to at least elementary and/or secondary education. No
employer shall make a child work during his/her school hours, and hinder
his/her access to education during school days.
2. The continuing program for education and training for the working child shall
be that developed by the Department of Education for formal, non-formal and
alternative learning systems of education, or by the TESDA, whichever is
applicable lo the circumstances of the child (/RR of R.A. No. 9231, Sec. 19).
Q: What are the grounds for suspension and cancellation of work permit? (F-CITE)
ANS: The Regional Director shall suspend or cancel the work permit issued to a working
child under the following instances:
1. If there is fraud or misrepresentation in the application for work permit or any
of its supporting documents;
2. If the terms and conditions set forth in the child's employment ~ontract and/or
employer's undertaking have been violated;
3. If the employer fails to !nstitute measures to ensure the protection, health,
safety, morals, and normal development of the child as required in Sec. 7 (b )ii;
4. If the employer fails to formulate and implement a program for the education,
!raining and skills acquisition ofthe child; or
5. If a child has been deprived a~ss to fprmal, non-formal or ALS 5ducation
(/RR of R.A. No. 9231, Sec. 22). .
Q: What are the jobs where children (those below 18) cannot be employed?
ANS: The following are the jobs where children (those below 18) cannot be employed:
1. As seafarer onboard a ship, Whether domestic shipping or international
voyage;
2. As model in any advertisement which directly o,r !ndirectly promotes the
following: · ·
a. Alcoholic beverages or intoxicating drinks
b. Tobacco and its by-products
c. Gambling
d. Violence
e. Pornography;
3. Jobs which involve the use of power-driven or explosive power-actuated
tools;
4. Manufacture or handling of explosives;
5. Illegal or illicit activities;
6. Jobs which degrade or demean the intrinsic worth or dignity of a child, such
as prostitution or pornography;
7. Jobs which expose the child to either:
a. Physical, emotional, or sexual abuse
b. Highly psychologically stressful condition
c. Biological agents such as bacteria, fungi, or viruses
d. Physical danger, such as dangerous feats of balancing
e. Elements, such as ioning, radiation, fire, etc.;
8. Jobs performed underground, underwater, or at dangerous heights; and
9. Jobs performed under particularly difficult conditions (RA 7610, Sec. 12).
Q: Can an employer validly discriminate against a child-employee?

ANS: No. Children-employees are entitled to the same benefits and terms and
conditions of employment as any other kind of employee similarly situated. An employer
cannot discriminate simply because an employee is a child (Art. 138, Labor Code).

lOMoARcPSD|11893536
Q: What are the worst forms of child labor?

ANS: The phrase "worst forms of child labor" shall refer to any of the following:
1. All forms of slavery, as defined under the "Anti-trafficking in Persons Act of
2003", or practices similar to slavery such as sale and trafficking of children,
debt bondage and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict;
2. The use, procuring, offering or exposing of a child for prostitution, for the
production of pornography or for pornographic performances;
3. The use, procuring or offering of a child for illegal or illicit activities, including
the production and trafficking of dangerous drugs and volatile substances
prohibited under existing laws; or
4. Work which, by its nature or the circumstances in which it is carried out, is
hazardous or likely to be harmful to the health, safety or morals of children,
such that it:
a. Debases, degrades or demeans the intrinsic worth and dignity of a child
as a human being; or
b. Exposes the child to physical, emotional or sexual abuse, or is found to
be highly stressful psychologically or may prejudice morals; or
c. Is performed underground, underwater or at dangerous heights; or
d. Involves the use -Ofdangerous machinery, equipment and tools such as
power-driven Or explosive poyver-actuated tools; or
e. Exposes the child to physical danger such as, but not limited to the
dangerous feats of balancing, physical strength or contortion, or which
requires the manual transport of heavy loads: or
f. Is performed in an unhealthy environment exposing the child to
hazardous working conditions, elements, substances, co-agents or
processes involving ionizing, radiation, fire, flammable substances,
noxious components and the like, or to extreme temperatures, noise
levels, or vibrations; or
g. Is performed under particularly difficult conditions; or
h. Expo~es the child to biological agents such as bacteria, fungi, viruses,
protozoans, nematodes and other parasites; or
i. Involves the manufacture or handling of explosives and other
pyrotechnic products (R.A. No. 9231, Sec 3),
Q: Can a minor work during school ho1.1rs?

ANS: No. No employer shall make a child work during his/her school hours and hinders
his/her access to education during school days (0.0. No. 65-04, Sec 19 (a)).
Kasambahay{R.A. No.10361)
Q: Who is a domestic worker or kasambahay?
ANS: Domestic worker or "Kasambahay" refers to any person engaged in domestic work
within an employment relationship such as, but not limited to, the following: general
househelp, nursemaid or 'yaya", cook, gardener, or laundry person, but shall exclude any
person who performs domestic work only occasionally or sporadically and not on an
occupational basis. The term shall not include children who are under foster family
arrangement, and are provided access to education and given an allowance incidental to
education, i.e., "baon", transportation, school projects and school activities (R.A. No.
10361, otherwise known as "DOMESTIC WORKERS ACT" or "BATAS KASAMBAHAY",
Art. I, Sec. 4(d)).
Note: Rule XIII, Sec. 1 (b}, Book 3 of the Labor Code provides that househelpers shall
refer to persons, whether male or female, who renders services in and about the
employer's home and which services are usually necessary or desirable for maintenance
and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment

lOMoARcPSD|11893536
of the employer's family. The definition cannot be interpreted to include househelper or

laundry woman working in staff houses who attends to the needs of the company's guests
and other persons availing of the facilities. The criterion is the personal comfort and
enjoyment of the family of the employer. The mere fact that the house helper is working
within the premises of the business of the employer and in relation to or in connection with
its business, warrants the conclusion that said house helper is and should be considered
as a regular employee of the employer (Apex Mining Co., Inc., v. NLRC, G.R. No. 94951,
April 22, 1991).
Q: Who are not contemplated within the concept of a domestic worker?

ANS: The following are not contemplated within the concept of a domestic worker:
1. Service providers - Undertake to perform a service on their own for a
household, free from the control of the employer except as to the results
thereof (/RR of R.A. No. 10361, Sec. 2(a));
2. Family drivers (/RR of R.A. No. 10361, Sec. 2(b));
3. Children under foster family arrangement - They live with a family or
household of relatives and are provided access to education and given an
allowance; and
4. Any person who performs domestic work occasionally or sporadically and not
on an occupational basis (!RR of R.A. No. 10361, Sec. 2(c)).
Q: What is the minimum age for the employment of domestic workers?

ANS: 15 years old. It is a crime to employ anyone younger than that age (R.A. No. 10361,
. .
Q: How are domestic workers hired?

ANS: Domestic workers are hired either:
1. Directly; or
2. Through a private employment agency licensed by the Regional Office of the
DOLE.
Q: What are the obligations of private employment agencies?

ANS: The following are the obligations of private employment agencies:
1. Not charge any recruitment or placemE¥)tfees;
2. Ensure that the employment CPllitarlt stipulqtes the benefits under the
Domestic Workers Act; · · ·· · · ·
3. Qualify an applicant, as required by the employer;
4. Secure the best terms and conditions of employment for the domestic worker;
5. Provide the domestic worker and the employer a pre-employment orientation
briefing about their rights and responsibilities under the Domestic Workers
Act;
6. Keep copies of employment contracts and agreements pertaining to recruited
domestic workers;
7. Present said employment documents during inspections or whenever
required by the DOLE or local government officials;
8. Assist domestic workers with complaints or grievances against their
employers;
9. Cooperate with government agencies in rescue operations involving abused
or exploited domestic workers; and
10. Assume solidary liability with the employer for payment of wages and other
benefits, including the following:
a. SSS
b. Pag-lBIG
c. PhilHealth membership contributions (UNGOS, Agrarian Law, supra at
245).

lOMoARcPSD|11893536
Q: What are the benefits and rights available to househelpers under the Batas
Kasambahay? (S2BC-GO-Wal TE2 R2-F130)
ANS: The rights and privileges of a kasambahay are the following:
1. §.ocial and Other Benefits. - A domestic worker who has rendered at least
1 month of service shall be covered by the SSS, the PhilHealth, and the Home
Development Mutual Fund or Pag-lBIG, and shall be entitled to all the benefits
in accordance with the pertinent provisions provided by law (R.A. No. 10361,
Sec. 30);
Note: Premium payments or contributions shall be shouldered by the
employer. However, if the domestic worker is receiving a wage of PS,000 and
above per month, the domestic worker shall pay the proportionate share in
the premium payments or contributions, as provided by law (R.A. No. 10361,
Sec. 30).
2. §.tandard of Treatment. - The employer or any member of the household shall
not subject a domestic worker or kasambahay to any kind of abuse nor inflict
any form of physical violence or harassment or any act tending to degrade
the dignity of a domestic worker (R.A. No. 10361, Sec. 5);
3. §oard, Lodging, and Medical_Attendance. - The employer shall provide for
the basic necessities of the domestic worker to include:
a. At least 3 adequate meals per day;
b. Humane sleeping arrangements that ensure safety; and
c. Appropriate rest and assistance to the domestic worker in case of
illnesses and· injuries sustained during service without loss of benefits
(R.A. No. 10361, Sec. 6);
4. Right to !;_ertificate of employment (/RR, R.A. 10361, Rule IV, Sec. 1(/));
5. .Q.uaranteeof Privacy. - Respect for the privacy of the domestic worker shall
be guaranteed at all times and shall extend to all forms of communication and
person$1 effects (R.A. No. 10361, Sec. 7);
6. Access to Qutside Communication. - The employer shall grant the domestic
worker access to outside communication during free time: Provided, that in
case of emergency, access to communication shall be granted even during
work time. Should the domestic worker make use of the employer's telephone
or other communication facilities, the costs shall be borne by the domestic
worker, unless such charges are waived by the employer (R.A. No. 10361,
Sec. 8);
7. Minimum Wage (R.A. No. 10361, Sec.24);
Note: Additional compensation no less than the existing minimum wage if the
kasambahay temporarily works for another household and the following
requisites are present:
a. Employer and domestic workers execute an agreement specifying the
tasks that the worker should perform;
b. Duration of the service with the other household does not exceed 30
days per assignment;
c. Employer is responsible for any liability incurred by the domestic worker
on account of such arrangement;
d. Employer does not charge any amount from the other household for the
temporary assignment; and
e. Other household is solidarily liable with the employer for any
nonpayment of wages during the temporary assignment (R.A. No.
10361, Sec. 23).
8. Service Incentive !:eave. - A domestic worker who has rendered at least
1 year of service shall be entitled to an annual service incentive leave of
5 days with pay: Provided, that any unused portion of said annual leave shall

lOMoARcPSD|11893536
not be cumulative or carried over to the succeeding years. Unused leaves

shall not be convertible to cash (R.A. No. 10361, Sec. 29);
9. Right to Ierminate the employment (/RR, R.A. 10361, Rule IV, Sec. 1(m));
10. Right to be provided a copy of the gmployment contract (/RR, R.A. 10361,
Rule IV, Sec. 1(k));
11. Access to gducation and Training - The employer shall afford the domestic
worker the opportunity to finish basic education and may allow access to
alternative learning systems and, as far as practicable, higher education or
technical and vocational training. The employer shall adjust the work
schedule of the domestic worker to allow such access to education or training
without hampering the services required by the employer (R.A. No. 10361,
Sec. 9);
Note: The employer is not required to provide financial assistance for the
education and training of the kasambahay. Access to education may include
financial assistance at the option of the employer (/RR of R.A. Sec. 16, par.
2).
12. ,Best Period. - The domestic worker shall be entitled to an aggregate daily
rest period of 8 hours per day (R.A. No. 10361, Sec. 20);
Note: The domestic worker shall, also be entitled to at least 24 consecutive
hours of rest in a week. The emplQyer and the domestic worker shall agree in
writing on the schedule of the weekly rest day of the domestic worker:
Provided, that the employer shall re&l)ef:J Jhe 1preference of the domestic
worker as to the weekly rest dat'wheri so'chiprefe-tence is based on religious
grounds. Nothing in this provision shall deprive thl'l domestic worker and the
employer from agreeing to the following:
a. Offsetting a day of absencewith a particular rest day;
b. Waiving a particular rest dqj,in return for an equivalent daily rate of pay;
c. Accumulating rest days notexceeding 5 days; or ·
d. Other similar arrangementsJR.A. Na.~10361;~.-.21).
13. Right to exercise their own ,Belig!Jus beliefs a~d~ltur~I 'practices (/RR, R.A.
10361, Rule IV, Sec. 1(n));
14. Right to .Eorm, join, or assist labot~ganization (!RR, R.A. 10361, Rule IV,
Sec. 1(j)); r' •,\,> ...••.•.
15. 13th Month Pay. - The kasambahay who has·rendered at least 1 month of
service is entitled to a thirteenth-month pay which shall not be less than 1/12
of his/her total basic salary earned in a calendar year; and
16. The domestic worker shall be entitled to all Qther benefits under existing laws
(R.A. No. 10361, Sec. 30).
Q: How is the employment of a kasambahay terminated?

ANS: It depends whether or not there is just cause:
1. With just cause - At any time, as long as any of the following circumstances
are present: (MIFOV)
a. Misconduct or willful disobedience to lawful order in connection with the
work;
b. Gross or habitual neglect or !nefficiency;
c. fraud or willful breach of trust;
d. Commission of a crime or Qffense by the kasambahay against the
person of the employer or any immediate member of the employer's
family; and
e. Y,iolation by the kasambahay of the terms and conditions of the
employment contract (R.A. No. 10361, Sec. 34).
2. Without just cause - It depends whether or not there is a stipulated period
in the employment contract:

lOMoARcPSD|11893536
BEDAN REDBOOK
a. There is stipulated period - At the end of the stipulated period

b. There is no stipulated period - By giving 5 days advance notice before
the intended termination. If this is not followed, the employer is liable for
salary plus an indemnity equivalent to 15 days' pay (R.A. No. 10361,
Sec. 34).
Q: Who bears the cost for the premium payments of the Kasambahay to SSS,
PhilHealth, or PAG-IBIG?
ANS: Premium payments or contributions shall be shouldered by the employer.
However, if the domestic worker is receiving a wage of P5,000.00 and above per month,
the domestic worker shall pay the proportionate share in the premium payments or
contributions, as provided by law (R.A. No. 10361, Sec. 30).
Q: What is the rule on the payment of wages of a Kasambahay?

ANS: Payment of wages shall be made on time directly to the domestic worker to whom
they are due in cash at least once a month. The employer, unless allowed by the domestic
worker through a written consent, shall make no deductions from the wages other than
that which is mandated by law. No employer shall pay the wages of a domestic worker by
means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other
than the cash wage as provided for under this Act. The domestic worker is entitled to a
13th month pay as provided for by law (R.A. No. 10361, Art. IV, Sec. 25).
Q: What are the allowabte deductions under the Domestic Workers Act?
ANS: The employer, unless_aHowed by the domesticworker through a written consent,
shall make no deductions from the wages other than that which is mandated by law, such
as for SSS, Philhealth, or PAG-IBIG contributions (R.A. No; 10361, Art. IV, Sec. 25).
Deductions for loss or damage shall only be made under the foUoWingconditions:
1. The Kasambahay is clearly shown to be responsible" for the loss or damage;
2. The Kasambahay Is given reasonable opportunity to show cause why
deduction should not be made;
3. The tota~ amount of such deductions is fair and reasonable and shall not
exceed the actual loss or damage; and
4. The deduction from {he wages of the Kasambahay does not exceed 20% of
his/her wages in a month (JRR of R.A. No. 10361, Rule V, Sec. 6, par. 1).
Note: The DOLE shall extend free assistance in the determination of fair and reasonable
wage deductions under this Section (/RR of R.A. No. 10361, Rule V, Sec. 6, par. 2).
In case there are loans/debts, an agreement may be made to deduct from the wages of
the Kasambahay an amount which shall not exceed 20% of his/her wages in a month
(/RR of R.A. No. 10361, Rule IV, Sec. 10, par. 1). An employer may agree to extend loan
assistance to the Kasambahay at an amount not exceeding the equivalent of his/her 6
months' salary. This Section shall not apply to working children (/RR of R.A. No. 10361,
Rule IV, Sec. 10, par. 2 and 3).

lOMoARcPSD|11893536
Homeworkers
Q: Distinguish homeworker from househelper.
ANS: They are distinguished as follows:
Homeworker House helper

Definition One who performs, in or about A person, whether male or female,
his home, any processing of who renders services in and about
goods or materials, in whole or the employer's home and which
in part, which have been services are usually necessary or
furnished, directly or indirectly, desirable for maintenance and
by an employer and thereafter enjoyment thereof, and ministers
to be returned to the latter (/RR exclusively to the personal comfort
of the LABOR CODE, Book Ill, and enjoyment of the employer's
RULE XIV, Sec. 2(b), as family (Apex Mining Co., Inc., v.
amended by 0.0. No. 05-92). NLRC, G.R. No. 94951, April 22,
1991).
Work Household work Industrial work
Performed
Employer Business enterprise
Governing Domestic Workers Act

Law
Q: What is considered as home for purposes of employment of homeworkers?

ANS: Home means any room, house, apartment or other premises used regularly, in
whole or in part, as dwemng place, except thQSe situated within the premises or compound
of an employer, contractor or subcontractor;;and the work performed therein is under the
active or personal supervision by or for the latter (0.0. fl/q. 05--92, Rul(t XIV, Sec. 2) .
.. .. .. .. ~,, ....,...., ... ·~· ··,.. ,.. ··,
··{.· ·,;_.
Q: What is industrial homework?

ANS: Industrial homework is a system of production under which work for an employer
or contractor is carried out by a homework hjli/t,er home. Materials may or may not
be furnished by the employer or contractor ;,Nc,;p5-92, Sec. 2(a)).
Q: What are the rights and benefits accorded to homeworkers?

ANS: The following are the rights and benefits given to homeworkers:
1. Right to Self-Organization - Homeworkers shall have the right to form, join
or assist organizations of their own choosing, in accordance with law (0.0.
No. 05-92, Sec. 3);
2. Registration of Homeworkers' Organization - Any applicant homeworker
organization or association shall acquire legal personality, and shall be
entitled to the rights and privileges granted by law to legitimate labor
organizations upon issuance of the certificate of registration (0. 0. No. 05-92,
Sec. 4); and
3. Payment for Homework - Immediately upon receipt of the finished goods or
articles, the employer shall pay for the work performed less corresponding
homeworkers' share of SSS, MEDICARE, and ECC premium contributions
which shall be remitted by the employer to the SSS with the employers' share
(D. 0. No. 05-92, Sec. 6).
Q: Who is the employer of a homeworker or homeworkers?

ANS: The employer of a homeworker or homeworkers is the person who:
1. Delivers or causes the delivery of materials to be processed in or about a

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of 2022
Volume 1 • Series
home and thereafter to be returned or disposed of in accordance with his

directions.
2. Sells the goods or materials to be processed in or about a home and then
rebuys them after processing either himself or through some other person
Note: Agents of foreign principals are considered employers (Art. 153, Labor Code).
Q: What is the rule on deductions from homeworker's earnings? (ROF-20)

ANS: No employer, contractor, or subcontractor shall make any deduction from the
homeworker's earnings for the value of materials which have been lost, destroyed, soiled
or otherwise damaged unless the following conditions are met:
1. The homeworker concerned is clearly shown to be Responsible for the loss
or damage;
2. The homeworker is given reasonable Qpportunity to show cause why
deductions should not be made;
3. The amount of such deduction is Eair and reasonable and shall not exceed
the actual loss or damage; and
4. The deduction is made at such rate that the amount deducted does not
exceed 20% of the homeworker's earnings in a week (0.0. No. 05-92, Sec.
8).
Q: What are the prohibitions for homework?

ANS: No homework shall be performed on the following:
1. Explosives, fireworks and articles of like character;
2. Drugs and poisons; and
3. Other articles, the processing of which requires exposure to toxic substances
(D.O. No. 05-92, Sec. 13).
Night Workers
Q: Who is a night worker?

ANS: A "night worker" refers to any employed person whose work covers the period from
ten o'clock in the evening (10:00 p.m.) to six o'clock the followlng morning (6:00 a.m.)
provided that the worker performs no less than 7 consecutive hours of work (/RR of the
LABOR CODE, Rule XV, Sec. 2, as amended by 0.0. No. 119-12).
Q: Who are not considered as night workers?

ANS: All persons employed or permitted or suffered to work at night in the following
industries are not considered as night workers:
1. Agriculture;
2. Livestock raising;
3. Fishing;
4. Maritime transport; and
5. Inland navigation (LABOR CODE, Art. 154).
2
Q: What are the rights and privileges of a night worker? (FAC TS)
ANS: The rights and privileges of a night worker are the following:
1. Mandatory Eacilities - Employers are obliged to provide night workers with
the following mandatory facilities:
a. Suitable first aid and emergency facilities;
b. Lactation station pursuant to the Expanded Breastfeeding Promotion
Act;
c. Separate toilet facilities for men and women;
d. Facility for eating plus potable drinking water; and
e. Facilities for transportation and properly ventilated sleeping quarters,
separate for males and females, except when:

lOMoARcPSD|11893536
i. Equivalent or superior benefit is accorded by CBA or company

practice
ii. Night work does not fall within 12MN and 5AM
iii. Public transportation is available for 24 hours (LABOR CODE, Art.
156, as amended by R.A. No. 10151);
2. Health Assessment - Workers shall have the right to undergo a health
assessment without charge and to receive advice on how to reduce or avoid
health problems associated with their work:
a. Before taking up an assignment as a night worker;
b. At regular intervals during such an assignment; and
c. If they experience health problems during such, an assignment which
are not caused by factors other than the performance of night work. With
the exception of a finding of unfitness for night work, the findings of such
assessments shall not be transmitted to others without the workers'
consent and shall not be used to their detriment (LABOR CODE, Art.
155, as amended by R.A. No. 10151);
3. ~ompensation - The compensation for night workers in the form of working
time, pay or similar benefits shall recognize the exceptional nature of night
work (LABOR CODE, Art. 159, /iS amended by R.A. No. 10151);
4. ~onsultation for Night Work $chedules -The employer shall consult the
workers' representatives/labor organizations concerned on the details of such
schedules and the forms of orgatl1zation of night work that are best adapted
to the establishment and its pers9{1!1~:l,as well a&-on the occupational health
measures and social services 'which a0:t_ r~quired. In establishments
employing night workers, consultation shall' take place regularly (LABOR
CODE, Art. 161, as amended by R.A. No. 10151};
5. Iransfer - if a night worker is f0t;tnd unfit for such work due to health reasons
health reasons, the following prqcess regarding transter should be followed:
First, check whether or not the l.Qititness is curable within 6 months, if:
a. Yes - Either: _.
i. Worker should be alloW:edto take),ri.-a~;;and'.upon restoration of
his health he should beteinstated; or · ·.; ·
ii. Day work - depends: whether it is practicable to transfer the
employee to day work, if; '.-·
• Yes - Transfer the~rii,loy,e:to day work if practicable
• No - Terminate the employment with separation pay
b. No (unfitness cannot be cured within 6 months) - Depends whether or
not it is practicable to transfer the employee to day work, if:
• Yes - Transfer the employee to day work
• No - Terminate the employment with separation pay (LABOR
CODE, Art. 157, as amended by R.A. No. 10151);
Note: A night worker certified as temporarily unfit for night work shall be
given the same protection against dismissal or notice of dismissal as
other workers who are prevented from working for reasons of health
(LABOR CODE, Art. 157, as amended by R.A. No. 10151).
6. §_ocial Services - Appropriate social services shall be provided for night
workers and, where necessary, for workers performing night work (LABOR
CODE, Art. 160, as amended by R.A. No. 10151).
Q: What are the alternative measures to night work for pregnant and nursing
employees?
ANS: Measures shall be taken to ensure that an alternative to night work is available to
women workers who would otherwise be called upon to perform such work:
1. Before and after childbirth, for a period of at least 16 weeks, which shall be

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Volume l · Series of 2022
divided between the time before and after childbirth; or

2. For additional periods, in respect of which a medical certificate is produced
stating that said additional periods are necessary for the health of the mother
or child:
a. During pregnancy; or
b. During a specified time beyond the period, after childbirth is fixed
pursuant to subparagraph (a) above, the length of which shall be
determined by the DOLE after consulting the labor organizations and
employers.
During the periods referred to Art. 158:
a. A woman worker shall not be dismissed or given notice of dismissal,
except for just or authorized causes provided for in the Labor Code that
are not connected with pregnancy, childbirth and childcare
responsibilities; and
b. A woman worker shall not lose the benefits regarding her status,
seniority, and access to promotion which may attach to her regular night
work position.
3. Pregnant women and nursing mothers may be allowed to work at night only
if a competent physician, other tha·nthe company physician, shall certify their
fitness to render night work, and specify, in the case of pregnant employees,
the period of the pregnancy that they cart safely work (LABOR CODE, Art.
158, as amended byR.A. No. 10151).
Persons with Disabilitie$

Q: Who are Persons With Disabilities (PWDs)?
ANS: PWDs are those suffering from restriction or different abilities, as a result of a
mental, physical or sensory impairment, to perform an activity in the manner or within the
range considered normal for a human being (R.A. No. 7277, 0thl:!rwise known as "MAGNA
CARTA FOR DISABLED PERSONS", as amended by R.A. No. 9442 and R.A. No. 10070,
Title I, Chapter/, Sec. 4(a)J.
Q: What are the prohibitions on verbal or non-verbal publi~ridicule and vilification?

ANS: The prohibitions on verbaf or. non-verbal public ridicule and vilification are as
follows:
1. No individual, group or community shail execute any acts of ridicule against
PWDs in any time and place whlch could intimidate or result in loss of self-
esteem of the latter (R.A. No. 7277, as amended, Sec. 40); and
2. Any individual, group, or community is hereby prohibited from vilifying any
person with disability which could result into loss of self-esteem of the latter
(R.A. No. 7277, as amended, Sec. 42).
Q: What is impairment?
ANS: Impairment is any loss, diminution or aberration of psychological, physiological, or
anatomical structure or function (R.A. No. 7277, as amended, Sec. 4(b)).
Q: What is disability?
ANS: Disability shall mean:
1. A physical or mental impairment that substantially limits one or more
psychological, physiological or anatomical function of an individual or
activities of such individual;
2. A record of such an impairment; or
3. Being regarded as having such an impairment (R.A. No. 7277, as amended,
Sec. 4(c)).

lOMoARcPSD|11893536
Q: What is handicap?
ANS: Handicap refers to a disadvantage for a given individual, resulting from an
impairment or a disability, that limits or prevents the function or activity, that is considered
normal given the age and sex of the individual (R.A. No. 7277, as amended, Sec. 4(d)).
Q: Who is a qualified individual with disability?

ANS: A qualified individual with disability is an individual with a disability who, with or
without reasonable accommodations, can perform the essential functions of the
employment position that such individual holds or desires (R.A. No. 7277, as amended,
Sec. 4(/)).
Q: Why are qualified disabled employees not considered as "special" workers

under Art. 80 of the Labor Code?
ANS: The Magna Carta for Disabled Persons mandates that a qualified disabled
employee should be given the same terms and conditions of employment as a qualified
able-bodied person. The fact that the employees were qualified disabled persons
necessarily removes the employment contracts from the ambit of Art. 80 on special
workers. Since the Magna Carta accords them the rights of qualified able-bodied persons,
they are thus covered by Art. 280 of the Lab.or Code on regular employment (Bernardo v.
NLRC, G.R. No. 122917, July 12, 1999).
Q: What should be the contents of limployment Agreement of handicapped

workers? (NARD-W) . . ......
ANS: The Employment Agreement must irt¢1tld~'. .,.
1. The Names and ,Addresses of the handicapped workers to be employed;
2. The ,Bate to be paid which shal{·be not less than 75% of the applicable legal
minimum wage;
3. The Quration of employment period; and
4. The )tiork to be performed by tht•handicapped workers.
5. The employment agreement s~II be subjectto in~pection by the Secretary
of Labor and Employment or h{S;duly authotiZW representatives (LABOR
CODE, Art. 80).
Q: What are the proofs for entitlement to:p.r;;1tilct1:tes? (PIT)

ANS: The following are required to be sul:lijitij<J::' ·· •
1. f ass port; ·· · · ···
2. Identification Card issued by the mayor or barangay captain where the
disabled person resides; or
3. Iransportation discount fare ID issued by National Council for the Welfare of
Disabled Persons (NCWDP) (R.A. No. 7277, as amended, Sec. 32, par. 2).
Q: What are the rights and privileges of disabled persons with respect to
employment? (ESA-Vo 2 N)
ANS: The following are the rights and privileges of disabled persons with respect to
employment:
1. ~qual Opportunity for Employment - No disabled person shall be denied
access to opportunities for suitable employment. A qualified disabled
employee shall be subject to the same terms and conditions of employment
and the same compensation, privileges, benefits, fringe benefits, incentives
or allowances as a qualified able-bodied person (R.A. No. 7277, as amended,
Title fl, Chapter I, Sec. 5, par. 1);
Note: 5% of all casual emergency and contractual positions in the
Departments of Social Welfare and Development; Health; Education, Culture
and Sports; and other government agencies, offices or corporations engaged

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in social development shall be reserved for disabled persons (R.A. No. 7277,
as amended, Title II, Chapter I, Sec. 5, par. 2).
2. §.heltered Employment - If suitable employment for disabled persons cannot
be found through open employment as provided in the immediately preceding
Section, the State shall endeavor to provide it by means of sheltered
employment (R.A. No. 7277, as amended, Title II, Chapter I Sec. 6);
Note: Sheltered Employment refers to the provision of productive work for
disabled persons through workshops providing special facilities, income-
producing projects or homework schemes with a view to giving them the
opportunity to earn a living thus enabling them to acquire a working capacity
required in open industry (R.A. No. 7277, as amended, Title I, Chapter I, Sec.
4(i)).
3. Apprenticeship - Disabled persons shall be eligible as apprentices or
learners: Provided, That their handicap is not much as to effectively impede
the performance of job operations in the particular occupation for which they
are hired: Provided, further, That after the lapse of the period of
apprenticeship, if found satisfactory in the job performance, they shall be
eligible for employment (R.A. No. 7277, as amended, Title II, Chapter I, Sec.
7);
4. Vocational Rehabilitation (R.A. No. 7277, as amended, Title II, Chapter I,
Sec. 9, par. 1). The Department of Social Welfare and Development (DSWD)
shall design and implement training programs that will provide disabled
persons with vocational skills to enable them to engage in livelihood activities
or obtain gainful employment The DOLE shall likewise design and conduct
training programs geared towards providing disabled persons with skills for
livelihood (R.A. No. 7277, as amended, Title II, Chapter I, Sec. 9, par. 3);
5. Vocational Guidance and Counseling (R.A. No. 7277, as amended, Title II,
Chapter J, Sec. 10); and
6. .t:J,on-Discriminationon Employment (R.A. No. 7277, as amended, Title Ill,
Chapter/, Sec. 32, par. 1).
Q: What are the acts of discrimination against PWDs'? (LQReS-Less-Non-FDEx)

ANS: The following constitute acts of discriminatio11against PWDs:
1. ,bimiting, segregating or classifying a disabled job applicant that adversely
affects his work opportunities;
2. Using Qualification standards, employment tests or other selection criteria
that screen out or tend to screen out a disabled person unless such
standards, tests or other selection criteria are shown to be job-related for the
position on question and are consistent with business necessity;
3. Re-assigning or transferring a disabled employee to a job or position he
cannot perform by reason of his disability;
4. Utilizing §.tandards, criteria, or methods of administration that:
a. Have the effect of discrimination on the basis of disability; or
b. Perpetuate the discrimination of others who are subject to common
administrative control;
5. Providing Less compensation, such as salary, wage or other forms of
remuneration and fringe benefits, to a qualified disabled employee, by reason
of his disability, than the amount to which a non-disabled person performing
the same work is entitled;
6. Favoring a Non-disabled employee over a qualified disabled employee with
respect to promotion, training opportunities, study and scholarship grants,
solely on account of the latter's disability;
7. failing to select or administer in the most effective manner employment tests
which accurately reflect the skills, aptitude or other factor of the disabled
applicant or employee that such test purports to measure, rather than the

lOMoARcPSD|11893536
impaired sensory, manual or speaking skills of such applicant or employee, if

any;
8. Qismissing or terminating the services of a disabled employee by reason of
his disability unless the employer can prove that he impairs the satisfactory
performance of the work involved to the prejudice of the business entity;
Provided, however, That the employer first sought provide reasonable
accommodations for disabled persons; and
9. Excluding disabled persons from membership in labor unions or similar
organization (R.A. No. 7277, as amended, Sec. 32).
Reasonable Accommodation includes:

1. Improvement of existing facilities used by employees in order to render these
readily accessible to and usable by disabled persons; and
2. Modification of work schedules, reassignment to a vacant position, acquisition
or modification of equipment or devices, appropriate adjustments or
modifications of examinations, training materials or company policies, rules
and regulations, the provision of auxiliary aids and services, and other similar
accommodations for disabled persons (R.A. No. 7277, as amended, Title I,
Chapter I, Sec. 4(h)).
Q: What are the incentives for employers hiring PWDs? (E25-M50)

ANS: The incentives for employers hiring PWDs are as follows:
1. Private entities that 5.mploy disal)led pEirsons wl-lp meet the required skills or
qualifications, either as regular employee, ~pprentice or learner, shall be
entitled to an additional deduction, from their gross.income, equivalent to 25%
of the total amount paid as salaries and wages to disabled persons: Provided,
however, That such entities present proof as certified by the DOLE that
disabled persons areunder their employ: Provided, further, That the disabled
employee is accredited with the DOLE and the Department of Health (DOH)
as to his disability, skills and quaiifications; and _. ...
2. Private entities that improve or Jt1odify their pt)ysical ,facilities in order to
provide reasonable accommodation for disabled persons shall also be
entitled to an additional deduction from their net taxable income, equivalent
to 50% of the direct costs of the improvements or modifications (R.A. No.
7277, as amended, Title II, Chapter/, Se¢,8).
E. SEXUALHARASSMENTIN THEWORKENVIRONMENT
Anti-Sexual Harassment Act {R.A. No. 7877)
Q: What is "work, education or training-related sexual harassment"?
ANS: Work, education or training-related sexual harassment is committed by an
employee, manager, supervisor, agent of the employer, teacher, instructor, professor,
coach, trainor, or any other person who, having authority, influence or moral ascendancy
over another in a work or training or education environment, demands, requests or
otherwise requires any sexual favor from the other, regardless of whether the demand,
request or requirement for submission is accepted by the object of said Act(R.A. No. 7877,
otherwise known as "ANTI-SEXUAL HARASSMENT ACT OF 1995", Sec. 3).
Q: How is sexual harassment committed in a work-related or employment

environment under R.A. No. 7877?
ANS: In a work-related or employment environment, sexual harassment is committed
when the following is committed against an employee or applicant for employment:
1. The sexual favor is made as a condition for either:
a. Hiring, re-employment, or continued employment; or
b. Granting favorable compensation, terms, conditions, promotions, or

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privileges.
2. Refusal to grant the sexual favor results in either:
a. Discrimination;
b. Deprivation of employment opportunities;
c. Diminished employment opportunities; or
d. Other adverse effects.
3. When sexual advances either:
a. Impair employee rights or privileges; or
b. Result in an intimidating, hostile, or offensive environment.
Note: Any person who directs or induces another to commit any act of sexual harassment
as herein defined, or who cooperates in the commission thereof by another without which
it would not have been committed, shall also be held liable under this Act (R.A. No. 7877,
Sec. 3).
Q: What is the gravamen of the offense in sexual harassment?

ANS: The gravamen of the offense in sexual harassment is not the violation of the
employee's sexuality but the abuse of power by the employer (Philippine Aeolus Auto-
Motive United Corporation v. NLRC, G.R. No. 124617, April 28, 2000).
Q: What is contemplated by the word ''demand" unc;lerSec. 3, R.A. No. 7877?

ANS: It is not necessary that demand of §e~_ual favor be in a categorical oral or written
statement. It may be discerned with equal certitude frorn the acts of the offender.
Furthermore, it is not 1;,ssentiaJthat the demand, request or requirement be made as a
condition for continued employment or for promotion, It is enough that the respondent's
acts result in creating an lntimidating, hostile or offensive envirorvnent for the employee
(Domingo v. Raya/a, G.R. No. 155831, February 18, 2008) ..
Q: What are the duties of the employer or the head of the work•related, educational
or training environment or institution under the R'.A. No. 7877?(PCD)
ANS: The employer or head of office shall: ·
1. fromulgate appropriate rules and regulations" prescfibing the procedure for
the investigation of sexual .harassment ¢ases and the administrative
sanctions tl')erefor. Administrative sanctioris· shall 1)01be a bar to prosecution
for sexual harassme.nt. The rules and regulations shall include guidelines on
proper decorum;
2. _g_reatea committee on decqrum and investigation of cases on sexual
harassment. In the case-of a work~related environment, the committee shall
be composed of at least 1 representative each from the management, the
union, if any, the employees from the supervisory rank, and from the rank-
and-file employees. In the case of the educational or training institution.the
committee shall be composed of at least 1 representative from the
administration, the trainers, instructors, professors or coaches and students
or trainees, as the case may be; and
3. .Qisseminate or post a copy of this Act for the information of all concerned
(R.A. No. 7877, Sec. 4).
Q: What are the liabilities of the employer or the head of the work-related,
educational or training environment or institution under the Anti-Sexual
Harassment Act?
ANS: The employer or head of office, educational or training institution shall be
solidarily liable for damages arising from the acts of sexual harassment committed in the
employment, education or training environment if the employer or head of office,
educational or training institution is informed of such acts by the offended party and no
immediate action is taken thereon (R.A. No. 7877, Sec. 5).

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Q: Who may be victims of sexual harassment in an education or training

environment? (SAGE)
ANS: Sexual harassment may be committed:
1. Against one who is under the care, custody or §.upervision of the offender;
2. Against one whose education, training, Apprenticeship or tutorship is
entrusted to the offender;
3. When the sexual favor is made a condition to the giving of a passing Qrade
or the granting of honors and scholarships, or the payment of a stipend,
allowance or other benefits, privileges or considerations; or
4. When the sexual advances result in an intimidating, hostile or offensive
gnvironment for the student, trainee or apprentice (R.A. No. 7877, Sec. 3).
Q: What is the prescriptive period for filing the complaint?

ANS: The prescriptive period for filing the complaint is 3 years (R.A. No. 7877, Sec. 7).
Safe Spaces Act {H.A. No. 11313)
Q: What are safe spaces? (POWE)

ANS: Safe spaces refer to the following spaces where persons are supposed to be
protected from gender-based sexual harassment:
1. fublic spaces - Streets, public: parks, schools, malls, bars, restaurants,
transportation terminals, govemment offices, PUVs, hotels, and other
privately-owned places open to thepµb)ic.
2. Qnline platforms - Those which· use· •infor~tion and communications
technology.
3. Workplaces or employment environments - AU sites where work is being
undertaken by an employee within or outside the premises of the usual place
of business of the employer; and
4. gducational or training institutions - All schools, whether public or private
(UNGOS, Agrarian Law, supra at428).
Q: How is gender-based sexual harassment committed in ·the workplace and in

educational or training environments under the "Safe Spaces Act"?
ANS: The crime of gender-based sexual ,t)ar~ment in the workplace includes the
following:
1. An act or series of acts involving ariy unwelcome sexual advances, requests
or demand for sexual favors or any act of sexual nature, whether done
verbally, physically or through the use of technology such as text messaging
or electronic mail or through any other forms of information and
communication systems, that has or could have a detrimental effect on the
conditions of an individual's employment or education, job performance or
opportunities;
2. A conduct of sexual nature and other conduct-based on sex affecting the
dignity of a person, which is unwelcome, unreasonable, and offensive to the
recipient, whether done verbally, physically or through the use of technology
such as text messaging or electronic mail or through any other forms of
information and communication systems; and
3. A conduct that is unwelcome and pervasive and creates an intimidating,
hostile or humiliating environment for the recipient: Provided, That the crime
of gender-based sexual harassment may also be committed between peers
and those committed to a superior officer by a subordinate, or to a teacher by
a student. or to a trainer by a trainee (R.A. No. 11313, otherwise known as
"SAFE SPACES ACT", Sec. 16).
Note: Workplace include all sites, locations, spaces, where work is being undertaken by
an employee within or outside the premises of the usual place of business of the employer

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BEDAN RED BOOK

(/RR of R.A. No. 11313, Rule VI, Sec. 18). Further, information and communication
system refers to a system for generating, sending, receiving, storing or otherwise
processing electronic data messages or electronic documents and includes the computer
system or other similar devices by or in which data are recorded or stored and any
procedure related to the recording or storage of electronic data messages or electronic
documents (R.A. No. 11313, Sec. 16(d)).
Q: What are the duties of employers under the Safe Spaces Act? (0-MID)
ANS: The employer or person of authority, influence or moral ascendancy shall:
1. Qisseminate or post in a conspicuous place a copy of the law to all persons
in the workplace;
2. Provide Measures to prevent gender-based sexual harassment in the
workplace, such as the conduct of anti-sexual harassment seminars, which
shall be provided to all employees, regardless of rank and status;
Note: Trainings on gender sensitivity, orientations on gender-based violence,
and other relevant topics may also be conducted, in addition to the conduct
of anti-sexual harassment seminars. Such trainings and orientations, when
conducted, should form part of their staff development and basic knowledge
of employees.
3. Create an !ndependent internal mechanism or a Committee on Decorum
and Investigation (CODI) to investigate and address complaints of gender-
based sexual harassment which shall:
a. Adequately represent the management, the employees from the
supervisory rank, the rank-and-file employees, and the union, if any;
b. Designate a woman as its head and not less than half of its members
should be women;
c. Be composed of members who should be lmpartlal and not connected
or related to the alleged perpetrator;
d. Investigate and decide on the complaints within JO days or less upon
receipt thereof;
e. Observe due process;
f. Protect the comptaint from retatlation; and
g. Guarantee confidentrality to the greatest extent possible;
4. Qevelop and disseminate, in c.onsuftafion with.all persons in the workplace,
including employees or their representatives ·and union, if any, a code of
conduct or workplace policy which shall,
a. Expressly reiterate the prohibition on gender-based sexual harassment;
b. Describe the procedures of the internal mechanism created under Sec.
17(c) of the law; and
c. Set administrative penalties (R.A. No. 11313, Sec.17; and /RR of R.A.
No. 11313, Rule VI, Sec. 19).
Q: What are the liabilities of employers under the Safe Spaces Act?
ANS: In addition to liabilities for gender-based sexual harassment, employers may also
be held responsible for:
1. Non-implementation of their duties under Sec. 17 of this Act, as provided in
the penal provisions; or
2. Not taking action on reported acts of gender-based sexual harassment (R.A.
No. 11313, Sec. 19).

lOMoARcPSD|11893536
IV. Social Welfare Legislation

A. $0C/Al 8ECIJRITY SYSTEM LAW {R.A. NO. 8282 AS AMENDED BY R.A. NO.
IIIS!J}
Note: The 2022 Labor Law Syllabus still prescribed R.A. No. 8282 as the reference for
the discussion of the SSS Law. However, on February 07, 2019, President Duterte
approved R.A. No. 11199, otherwise known as the "Social Security Act of 2018" which
expressly repealed R.A. No. 8282.
This topic therefore will be discussed in accordance with R.A. No. 11199.
Coverage and Exclusion

Q: Who are compulsorily covered by the Social Security System?
ANS: The following are compulsorily covered by the SSS Law:
1. Employees and their employers - all employees including kasambahays or
domestic workers not over 60 years of age and their employers (R.A. No.
11199, otherwise known as "Social Security Act of 2018", Sec. 9);
2. Self-employed - includes, but i,pt limited to the following:
a. Self-employed professionals;
b. Partners and single proprietors of businesses;
c. Actors and actresses, directo1p,$G~i;ttvvriterlil;andnews correspondents,
who do not fall within the d_efinitionof the tetm "employee" in Sec. 8(d)
of R.A. No. 11199;
d. Professional athletes, coaches, trainers, andJockey; and
e. individual farmers and fishermen (R.A. No. 11199, Secs. 9-A);
3. Overseas FIiipino Workers (OFWs) - all sea-based and land-based OFW
as defined under R.A. No. 8042, otherwise known as the Migrant Workers
and Overseas Filipinos Act of 1995 as amended, proyided that they are not
over 60 years of age (R.A No. 11199, Sec. 9-B);and•
4. A farmer, fisherman, or a worker in the informal sector (IS) - an IS
member being defined as one whose income is irregular or seasonal and who
may be registered as a self-employed member under the SSS AlkanSSSya
Program (SSS Membership Primer, Augusf2019, p 1-2).
Q: Who are voluntarily covered by the SSS Law?

ANS: The following may be covered by the SSS on a voluntary basis:
1. Non-working Spouses who devote full-time to managing the household and
family affairs unless they are also engaged in other vocation or employment
which is subject to mandatory coverage (R.A. No. 11199, Sec. 9(b));
2. OFW upon the termination of their employment overseas (R.A. No. 11199,
Sec. 9-B(f));
3. Filipino permanent migrants, including Filipino immigrants, permanent
residents, and naturalized citizens of their host countries (R.A. No. 11199,
Sec. 9-B (g));
4. An employee under compulsory coverage who has been separated from
employment who continues to pay contribution (R.A. No. 11199, Sec. 11);
and
5. A self-employed member who realizes no income in any given month who
continues to pay contribution (R.A. No. 11199, Sec. 11-A).
Q: When does the coverage of members take effect?

ANS: Effectivity of coverage varies based on whether a member is compulsorily or
voluntarily covered, as follows:

lOMoARcPSD|11893536
1. Effectivity of Compulsory Coverage:

a. For the employer - on the 1st day of his/her operation (/RR of R.A. No.
11199, Rule 15, Sec. 1);
b. For the employee - on the pt day of his/her employment (/RR of R.A.
No. 11199, Rule 15, Sec. 2);
c. For the self-employed - upon his/her registration with the SSS (/RR of
R.A. No. 11199, Rule 15, Sec. 3); and
Note: Registration shall mean payment of the 1st contribution (/RR of
R.A. No. 11199, Rule 15, Sec. 3).
d. For the OFWs - the effective date of coverage of the OFWs shall be as
follows:
i. Compulsory coverage of a sea-based OFW shall take effect on the
first day of his/her employment;
ii. Compulsory coverage of a land-based OFW covered under Bilateral
Labor Agreements (BLAs) shall take effect based on the provisions
of the Agreement and its implementing arrangement;
iii. Compulsory coverage of a land-based OFW not covered under
BLAs shall take eff~cton the applicable month and year of the first
contribution payment; and
iv. Voluntary coverage of land-t;,ased _overseas Filipinos shall take
effect OIJ the applicable ,mqnth and year of the first contribution
payment (fRR of [?.A. No. 11199, Rule 15, Sec. 4).
2. Effectivity of \(olunfary Coverage:
a. For a non-working spouse - on the applicable month and year of the
first contribution payment (SSS Guidebook 2017; p. 7); and
b. For a separated member - on the month the person resumed payment
of contribution (R.A. No. 11199, Sec. 11).
Q: Enumerate the employment services which are exempted from compulsory

coverage under the SSS Law,
ANS: The following are the services which are exempted from the compulsory coverage
under the SSS Law:
1. Services where there_is no employee-employer relationship in accordance
with existing labor raws, rules, regulations, andjurisprudence;
2. Services performed in the employ of the Philippine Government or
instrumentality or agency thereof;
3. Services performed in the erhploy of the foreign government or international
organization or their wholly-owned instrumentality unless there is an
agreement with the Philippine Government for the inclusion of such
employees in the SSS; and
4. Such other services performed by temporary and other employees which may
be excluded by regulation of the Commission (R.A. No. 11199, Sec. B(j)).
Dependents and Beneficiaries

Q: Who are the dependents under the SSS Law?
ANS: The following are the dependents under the SSS Law:
1. Legal spouse entitled to receive support from the member;
2. Legitimate, legitimated, or legally adopted and illegitimate child who is
unmarried, not gainfully employed, and has not reached 21 years of age, or
if 21 years of age, he is congenitally or while still a minor has been
permanently incapacitated and incapable of self-support, physically or
mentally; and
3. Parent who is receiving regular support from the member (R.A. No. 11199,
Sec. B(e)).

lOMoARcPSD|11893536
Q: Who are the primary beneficiaries under the 555 Law?

ANS: The following are the primary beneficiary under the SSS Law:
1. Dependent spouse until he/she remarries (R.A. No. 11199, Sec. 8 (k));
2. Dependent spouse who has not cohabited or entered in a "live-in" relationship
before or after the death of the member (/RR of R.A. No. 11199, Rule 12,
Sec.12(i)); and
3. Dependent legitimate, legitimated, or legally adopted and illegitimate children
(R.A. No. 11199, Sec. 8(k)).
Note: Where there are legitimate or illegitimate children, the former shall be preferred.
The dependent illegitimate children shall be entitled to 50% of the share of the legitimate,
legitimated, or legally adopted children. In the absence of the dependent legitimate,
legitimated, or legally adopted children of the member, his/her dependent illegitimate
children shall be entitled to 100% of the benefits (/RR of R.A. No. 11199, Rule 12, Sec.
12(ii)).
Q: Who are the secondary beneficiaries under the 555 Law?

ANS: The following are the secondary beneficiaries under the SSS Law:
1. Dependent parents in the absence of any primary beneficiary; and
2. Any other person designated by the member, in the absence of all the
foregoing (R.A. No. 11199, Sec,.8(k)).
Note: The person designated by the member shall be one who has a right to claim for
support from the deceased member under thtt family Code, including dependent children
who have reached the age of majority (IRRplFtA. No, 1,11~9,Rule 11, Sec.13).
Benefits
Q: What constitutes the additional benefit allowance under the 555 Law?
ANS: Under Memorandum from the Exectffive Secretary dated 22 February 2017, an
additional monthly benefit allowance amounting to P1,000.00 shall be given to all
retirement, death, and disability pensioners receiving monthly pensions on or after
January 2017 (R.A. No. 11199, Sec. 12(c)).
Q: What constitutes the dependent's pension under the 555 Law?

ANS: Where a monthfy pension is payable on account of death, permanent total
disability, or retirement, dependent's pension equlvalent to 10% of the monthly pension
or P250.00, whichever is higher, shalt be paid fot each 'dependent child conceived or
legally adopted on or before the date of contingency but shall not exceed 5 provided that
where there are legitimate and illegitimate children, the former shall be preferred (R.A No.
11199, Sec. 12-A).
Q: What are the types of retirement benefits?

ANS: The types of retirement benefits are the following:
1. Monthly pension - a monthly specified cash amount that a qualified member
or a qualified beneficiary will receive on account of permanent total disability,
retirement, or death (/RR of R.A. No. 11199, Rule 18, Sec. 1); and
2. Lump sum amount - a one-time payment granted to a covered member who
has reached the required retirement age and who does not qualify for a full
pension benefit under the Socia/ Security Act of 2018, provided, that he/she
is separated from employment and is not continuing payment of contributions
to the SSS on his/her own. The amount of benefit is equivalent to the total
contributions paid by the member and/or on his/her behalf (/RR of R.A. No.
11199, Rule 21, Sec. 5).
Note: A retired member is entitled to a 13th month pension equivalent to the amount of
the monthly pension due and additional benefit allowance, payable every month of
December of the applicable year (/RR of R.A. No. 11199, Rule 21, Sec. 4).

lOMoARcPSD|11893536
Q: Enumerate the requisites for entitlement to monthly pension.

ANS: The following are the requisites to be entitled to a monthly pension:
1. A member must have at least 120 monthly contributions prior to the semester
of retirement;
2. Has reached 60 years old and is already separated from employment or has
ceased to be self-employed, except:
a. In the case of an underground mineworker (R.A. No. 8558), at least 55
years old effective 13 March 1998; and
b. In the case of an underground or a surface mineworker (R.A. No. 10757),
at least 50 years old effective 27 April 2016; or
3. Is at least 65 years old, except:
a. In the case of an underground mineworker effective 13 March 1998 (R.A.
No. 8558) or a surface mineworker effective 27 April 2016 (RA. No.
10757), at least 60 years old; and
b. In the case of a racehorse jockey (R.A. No. 10789), at least 55 years old
effective 24 May 2016 (!RR of R.A. No. 11199, Rule 21, Sec. 2).
Note: The applicant for retirement benefit has the option to receive his first eighteen
monthly pensions in a lump sum discounted at a preferential rate of interest to be
determined by the SSS. Further, the monthly pension shall be suspended upon the
reemployment or resumption of self-employment of a retired member who is less than 65
years old (R.A. No. 11199, Sec. 12-B(b)(c}).
Q: Who are entitled to the mpnthly pension upon the death of the retired member?
ANS: Upon the death of a retired member, his/her primary beneficiaries, as of the date
of his/her retirement, shall be entitled to receive 100% of the monthly pension, subject to
the following conditions;_
1. If the retired member has no primary beneficiaries and dies within 60 months
from the start of his/tier monthly pension, his/her beneficiaries shall be entitled
to a lump sum benefit equivalent to _th_e total monthly pension corresponding
to the balance of the five-year guaranteed period, excluding the dependent's
pension arid additional benefit allowance; and
2. If there are no prjmary and secondary beneficiaries, the lump sum payment
in the amount specified in the preceding paragraph shall form part of his/her
estate and shall be paid to hls/her legal heirs in accordance with the law of
succession (!RR of R.A. No. 11199, Rule 21, Sec. 8).
Q: What is the amount of monthly pension of a member who retires after the
optional age of retirement?
ANS: The monthly pension of a member who retires after the age of 60, or 50 years old
in the case oi an underground or a surface mineworker, or 55 years old in the case of a
racehorse jockey, and who has contributed the required 120 monthly contributions shall
be the higher of the following:
1. The monthly pension computed at the earliest time the member could have
retired had he/she been separated from employment or ceased to be self-
employed, plus all adjustments thereto; or
2. The monthly pension computed at the time when the member actually retires
(IRRofR.A. No. 11199, Rufe 21, Sec. 9).
Q: Who are entitled to death benefits under the SSS Law?

ANS: Upon the death of the member who has paid at least 36 monthly contributions prior
to the semester of death, his primary beneficiaries shall be entitled to the monthly pension
provided that if he has no primary beneficiaries, his secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to 36 times the monthly pension (R.A. No. 11199,
Sec. 13).
Note: If he has not paid the required 36 monthly contributions, his primary or secondary

lOMoARcPSD|11893536
beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension
times the number of monthly contributions paid to the SSS or 12 times the monthly
pension, whichever is higher (R.A. No. 11199, Sec. 13).
Q: Enumerate the permanent total disabilities.

ANS: The following disabilities shall be deemed permanent total:
1. Complete loss of sight of both eyes;
2. Loss of 2 limbs at or above the ankle or wrists;
3. Permanent complete paralysis of 2 limbs;
4. Brain injury resulting to incurable imbecility or insanity; and
5. Such cases as determined and approved by the SSS and/or the Commission
(/RR of R.A No. 11199, Rule 23, Sec. 2).
Q: What are the benefits a permanent total disabled member is entitled to?
ANS: The permanent total disability benefits are the following:
1. Monthly pension benefit - if the member has paid at least 36 monthly
contributions prior to the semester of disability (/RR of R.A. No. 11199, Rule
23, Sec. 5);
2. Lump sum benefit - if he has nQt paid the required 36 monthly contributions,
he shall be entitled to a lump sum benefit equivalent to the monthly pension
times the number of monthly COl'!tributions paid to the SSS or 12 times the
monthly pension, whichever is higher (/RR of R.A. No. 11199, Rule 23, Sec.
~; .
3. Supplemental disability altowaricekin a!llditiori to monthly pension, this is

paid to the total disability pensioners to provide additional financial assistance
to meet the extra needs arising from such disability (/RR of R.A. No. 11199,
Rule 23, Sec. 7);
4. 13th month pension - a permanent disability pensioner is entitled to a 13th
month pension equivalent to the amount of the monthly pension due and
additional benefit allowance, whlt::h is payc1ble v~ry month of December of
the applicable year (/RR of R.A Iyo. 11199; __ . :¾3,'~ec: 8); and
5. Deemed paid contributions - for the purpoSEfof adjudicating retirement,
death, and permanent total disability pension benefits, contributions shall be
deemed paid for the months ~I.Iring: which the member received partial
disability pension; provided, thatsllc~~blltions shall be based on the last
contribution prior to di:;.ability (/RRof R:A No: 11199, Rule 23, Sec. 9).
Note: A member who (1) has received a lump sum benefit; and (2) is reemployed or has
resumed self-employment not earlier than 1 year from the date of his disability shall again
be subject to compulsory coverage and shall be considered a new member (/RR of R.A.
No. 11199, Rule 23, Sec. 11).
Also, a permanent total disability pensioner who was granted the benefit for more than 60
months and has recovered from such disability shall not be entitled to another 60-month
guaranteed pension payment for retirement benefit. The 60-month guaranteed pension
payment is granted only once.
Q: What are the benefits a permanent partial disabled member is entitled to?
ANS: The permanent partial disability benefits are the following:
1. Monthly pension benefit - if the member has paid at least 36 monthly
contributions prior to the semester of disability (!RR of R.A. No. 11199, Rule
23, Sec. 5);
2. Lump sum benefit - for members who have not paid the required 36 monthly
contributions prior to the semester of disability. The benefit shall be the
percentage of the lump sum benefit described in the Social Security Act of
2018, with due regard to the degree of disability as the Commission may
determine (/RR of R.A. No. 11199, Rule 23, Sec. 6); and

lOMoARcPSD|11893536
3. Supplemental disability allowance - in addition to monthly pension, this is

paid to the partial disability pensioners to provide additional financial
assistance to meet the extra needs arising from such disability (/RR of R.A.
No. 11199, Rule 23, Sec. 7).
Q: What are the rules upon the death of a permanent total disability pensioner?
ANS: Upon the death of the permanent total disability pensioner, the following rules shall
apply with respect to entitlement to benefits:
1. The primary beneficiaries as of the date of disability shall be entitled to 100%
of the monthly pension;
2. If the permanent total disability pensioner has no primary beneficiaries and
dies within 60 months from the start of the monthly pension, the secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to the total
monthly pensions corresponding to the balance of the five-year guaranteed
period, excluding the dependents' pension, additional benefit allowance and
supplemental disability allowance; and
3. If there are no primary and secondary beneficiaries, the lump sum benefit
specified in the immediately preceding paragraph shall form part of his/her
estate and shall be paid to his/her legal heirs in accordance with the law of
succession (/RR of R.A No. 11199, Rule 23, Sec. 12).
Q: What is the effect of the retirement or death of a permanent partial disability

pensioner?
ANS: The disability pension.shall cease upon retirement or death of a member who is
on partial disability pension (/RR of R.A. No. 11199, Rule 23, Sec. 13).
Q: What constitutes the funeral benefit under the SSS Law?

ANS: The funeral benefit is intended to help defray the cost of funeral expenses upon
the death of a member, including permanently totally disabled or retired member and is
equivalent to the following amounts paid either in cash or in kind, depending on the date
of contingency and may be adjusted as determined by the Commission:
1. Twelve thousand pesos (P12,000.00), effective May 24, 1997;
2. Fifteen thousand pesos (P15,000.00), effective September 1, 1998;
3. Twenty thousand pesos {P20,000.00), effective September 1, 2000;
4. A variable amount ranging froma minimum 00'20,000.00 to a maximum of
P40,000.00, depending on the member's number of contributions and
Average Monthly Salary Credit (AMSC), effective August 1, 2015 (/RR of R.A.
No. 11199, Rule 24, Secs. 1 and 2).
Q: What is sickness benefit under SSS Law?

ANS: It is a daily cash allowance paid by the employer to the member who is unable to
work due to sickness or injury for each day of compensable confinement or a fraction
thereof, or by the SSS, if such person is unemployed or is self-employed, OFW, a
voluntary member who have been previously covered either as employed/self-
employed/OFW and non-working spouse (/RR of R.A. No. 11199, Rule 25, Sec. 1).
Note: The daily sickness allowance shall be equivalent to 90% of the member's average
dailysalarycredit(/RRofR.A. No. 11199, Rule 25, Sec. 5).
Q: What are the eligibility requirements to qualify for the grant of sickness benefit
under SSS Law?
ANS: To qualify for the grant of the sickness benefits, the member must meet the
following requirements:
1. He has paid at least 3 monthly contributions within the twelve-month period
immediately before the semester of sickness or injury;

lOMoARcPSD|11893536
2. Was confined for at least 4 days either in the hospital or elsewhere as defined
by the SSS;
3. Has notified the employer, if employed, or SSS, if unemployed or self-
employed/voluntary member of the sickness or injury; and
4. Has used up all current company sick leave with pay for the current year, if
employed, except sea-based OFWs (/RR of R.A No. 11199, Rule 25, Sec. 2).
Note: No contributions paid retroactively by self-employed/voluntary member/OFWs shall
be used in determining his/her eligibility to sickness benefit wherein the date of payment
is within or after the semester of contingency (/RR of R.A. No. 11199, Rule 25, Sec. 2).
Q: How many days in a year can a member avail of the sickness benefit?
ANS: A member can be granted a sickness benefit for a maximum of 120 days in 1
calendar year.
Note: Any unused portion of the allowable 120-day sickness benefit cannot be carried
forward nor added to the total number of allowed compensable days for the following year.
The sickness benefit shall be paid for not more than 240 days on account of the same
illness (/RR of R.A. No. 11199, Rule 25, Sec. 6).
If the sickness or injury still persists after 240 days, his claim will be considered a disability
claim (SSS Guidebook, 2017, p. 42),
Q: May sickness and disability benefits ~:tcavai~l;ldsimulqtneously?

ANS: Yes, sickness and disability benefits:may be aVailecf;ofsimultaneously, provided
that:
1. Sickness/injury and disability ar, not related; and
2. The member meets all the qualifying conditions for the grant of sickness and
disability benefrts (tRR of R.A. N;o.
11199, Rule 25, Sec. 6(xii)).
Q: What is maternity leave benefit under $~S Law?

ANS: Maternity leave benefit is a daily ca!:1tiallowah~'.gr~~!4(ti ~emale members in
every instance of pregnancy resulting in childbirth, miscarriag1( ofemergency termination
of pregnancy regardless of frequency, her q!vil status, employment status, or legitimacy
of the child (SSS Circular No. 2019-009 eff~r,;(ive:Mfirch 11, 2019, Sec. 3) .
.;<{; '.;••• •: ;h
Note: The daily maternity leave allowance:sAalf\i,e}e~Ui\falent to 100% of the Average

Daily Salary Credit (ADSC) and shall be paid for a compensable period of 105 days for
live childbirth, regardless if via normal delivery or caesarian section, and an additional 15
days paid leave if the female worker qualifies as a solo parent under the applicable
provisions of R.A. No. 8972 (Solo Parents' Welfare Act of 2000); or 60 days paid leave
for miscarriage and emergency termination of pregnancy (SSS Circular No. 2019-009
effective March 11, 2019, Sec. 3).
Q: What are the eligibility requirements to qualify for the grant of maternity leave
benefit under SSS Law?
ANS: To qualify for the grant of the maternity benefit, the female member must meet the
following requirements:
1. Has paid at least 3 monthly contributions in the twelve-month period
immediately preceding the semester of childbirth or miscarriage or
emergency termination of pregnancy;
2. Has notified her employer of the pregnancy and expected date of childbirth,
which notice shall be transmitted to the SSS in accordance with the rules and
regulations issued by the Commission (SSS Circular No. 2019-009 effective
March 11, 2019, Sec. 7); and
3. If the female member is self-employed including those in the informal
economy, voluntary member, or an OFW, notice shall be given directly to SSS

lOMoARcPSD|11893536
• BEDAN RED BOOK

(SSS Circular No. 2019-009 effective March 11, 2019, Sec. 8).
Note: Notwithstanding the above rules, failure of the pregnant employed female member
to notify the employer shall not bar her from receiving the maternity benefits. Subject to
the guidelines to be prescribed by the SSS (SSS Circular No. 2019-009 effective March
11, 2019, Sec. 8).
Q: What are the limitations on the grant of maternity benefits?

ANS: The limitations on the grant of maternity benefits are:
1. The payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits under the Social Security Act of 2018 for the same period
for which daily maternity benefits have been received;
2. In case of overlapping of 2 maternity benefit claims, the member shall be
granted maternity benefits for the two contingencies in a consecutive manner
but the amount of the benefit corresponding to the period where there is an
overlap shall be deducted from the current maternity benefit claim; and
3. Only one maternity benefit shall be paid regardless of the number of offspring
per childbirth/delivery (SSS Circular No. 2019-009 effective March 11, 2019,
Sec. 11).
Note: In the advent of the Expanded Maternity Leave Law, maternity leave shall be
granted to qualified female workers in every instance of pregnancy, miscarriage, or
emergency termination of pregnancy, regardless of frequency (/RR of R.A. No. 11210,
Rule IV, Sec. 4).
Q: What is unemployment insurance or involuntary separation benefit?

ANS: The unemployment insurance or involuntary separation benefit is a monthly cash
payment equivalent to 50% of the Average Monthly Salary Credit (AMSC) for a maximum
of 2 months, subject to the rules and regulations that the Commission may prescribe (/RR
of R.A. No. 11199, Rule 27, Sec. 1).
Note: In case of concurrence of 2 or more contingencies within the same compensable
period, only the highest benefit shall be paid (/RR of R.A. No. 11199, Rule 27, Sec. 4).
Q: What are the eligibility requirements to qualify for the grant of unemployment
insurance or involuntary separation benefit under SSS Law?
ANS: The grant of unemployment insurance or involuntary separation benefit may be
availed by members subject to the following conditions:
1. Not over 60 years old at the time .of involuntary separation, except:
a. In the case of underground mineworker or surface mineworker (R.A. No.
10757) not over 50 years old; or
b. In the case of racehorse jockey (R.A. No. 10789), not over 55 years old;
2. Has paid at least 36 monthly contributions, 12 months of which should be in
the 18 month period immediately preceding the unemployment or involuntary
separation; and
3. Involuntarily separated from employment provided that such separation did
not arise from fault or negligence of the employee and which may be
attributed to any of, but not limited to, the following:
a. Installation of labor-saving devices;
b. Redundancy;
c. Retrenchment to prevent loss;
d. Closure or cessation of operation; or
e. Disease/illness (/RR of R.A. No. 11199, Rule 27, Sec. 2).
Note: A covered employee who is involuntarily unemployed can only claim unemployment
benefits once every 3 years starting from the date of involuntary separation or
unemployment (!RR of R.A. No. 11199, Rule 27, Sec. 3).

lOMoARcPSD|11893536
/I. ®VERNMENT$ERVICEINStJRANCE SYSTEMtA W (II.A. NO. 8291}
Coverage and Exclusion

Q: Who are covered by the GSIS Law?
ANS: The following are covered by the GSIS Law:
1. All government personnel, whether elective or appointive, irrespective of
status of appointment, provided they are receiving fixed monthly
compensation and have not reached the mandatory retirement age of 65
years (/RR of R.A. No. 8291, otherwise known as "The Government Service
Insurance System Act of 1997", Rule II, Sec. 2.1);
2. An employee who is already beyond the mandatory retirement age of 65 shall
be compulsorily covered and be required to pay both the life and retirement
premiums under the following situations:
a. An elective official who at the time of election to public office is below 65
years of age and will be 65 years or more at the end of his term of office,
including the period/s of his re-election to public office thereafter without
interruption.
b. Appointive officials who, before reaching the mandatory age of 65, are
appointed to governmen't position by the President of the Republic of the
Philippines and shall rema1h in government service at age beyond 65
(/RR of R.A. No. 8291, Rult/t'IJ, Sec. 2.2); and
3. Contractual employees in · ~i!Yi;ils anq other employees with an
employee-government agency 1ionshlp;t,rovided they are receiving fixed
monthly compensation and rendering required '14Q1berof working hours for
the month (/RR of R.A. No. 829!, Rule II, Sec. 2:3).
Q: Who are excluded from the GSIS Law1

ANS: The following are excluded from GSl~l'Law:
1. Uniformed personnel of the Armed Force~ 9f .the Philippines (AFP);
2. Uniformed personnel of the Philippine National Rol!i;e(PNP);
3. Uniformed personnel of the Bur,1:1uof Fire Protection (BFP);
4. Uniformed personnel of the Bµreau of Jail Management and Penology
(BJMP); ...
5. Barangay and Sanggunian Of(tclals .Wijo.are not receiving fixed monthly
compensation;
6. Contractual employees who are not receiving fixed monthly compensation;
and
7. Employees who do not have monthly regular hours of work and are not
receiving fixed monthly compensation (/RR of R.A. No. 8291, Rule II, Sec. 3).
Dependents and Beneficiaries

Q: Who are the dependents under GSIS Law?
ANS: The following are the dependents under the GSIS Law:
1. Legitimate spouse dependent for support upon the member or pensioner;
2. Legitimate, legitimated, legally adopted child including illegitimate child who
is unmarried, not gainfully employed, not over the age of majority or is over
the age of majority but incapacitated and incapable of self-support
employment due to mental or physical defect acquired prior to age of majority;
and
3. Parents who are dependent upon the member for support (R.A. No. 8291,
Sec. 2(f)).

lOMoARcPSD|11893536
BEDAN RED BOOK

• Volume l • Series of 2022
Q: Who are the primary beneficiaries under GSIS Law?

ANS: The following are the primary beneficiaries under GSIS Law:
1. Legal dependent spouse until he/she remarries; and
2. Dependent children (R.A. No. 8291, Sec. 1(g)).
Q: Who are the secondary beneficiaries under the GSIS Law?

ANS: The following are the secondary beneficiaries under GSIS Law:
1. Dependent parents; and
2. Legitimate descendants subject to the restrictions on dependent children
(R.A. No. 8291, Sec. 1(h)).
Q: When does the membership to the GSIS take effect?

ANS: The effective date of membership shall be the date of the member's assumption
to duty on his original appointment or election to public office (/RR of R.A. No. 8291, Sec.
5).
Benefits
Q: What is the basic monthly pension under the GSIS Law?
ANS: The basic monthly pension is equal to thirty-seven and one-half percent (37.5%)
of the revalued average monthly compensation; pll!S two and one-half percent (2.5%) of
said revalued average monthly compensation for each year of service in excess of 15
years, provided that the basic monthly pension shall not exceed 90% of the average
monthly compensation (R.A. No. 8291, Sec. 9(a)).
Q: Can the basic monthly pension be adjusted under the GSIS Law?
ANS: Yes, the basic monthly pension may be adjusted upon the recommendation of the
President and the General Manager of the GSIS, and approved by the President of the
Philippines in accordance with the rules and regulations prescribed :by the GSIS (R.A. No.
8291, Sec. 9(b)).
Q: What are the minimum amounts requirecJ for the b~sic monthly pension?
ANS: The basic monthly pension shaH not be less than 1"1,300.00, and it shall not be
less than 1"2,400.00 for those who have rendered at least 20 years of service (R.A. No.
8291, Sec. 9(b)).
Q: What constitute separation ben.efits under the GSIS Law?

ANS: The separation benefits shall consist of the following:
1. Cash payment equivalent to 100% of his average monthly compensation for
each year of service he paid contributions, but not less than 1"12,000.00
payable upon reaching 60 years of age or upon separation, whichever comes
later: Provided, that the member resigns or separates from the service after
he has rendered at least 3 years of service but less than 15 years; or
2. A cash payment equivalent to 18 times his basic monthly pension payable at
the time of resignation or separation, plus an old-age pension benefit equal
to the basic monthly pension payable monthly for life upon reaching the age
of 60: Provided, that the member resigns or separates from the service after
he has rendered at least 15 years of service and is below 60 years of age at
the time of resignation or separation (R.A. No.8291, Sec.11).
Q: What constitutes unemployment or involuntary separation benefits under the

GSIS Law?
ANS: Unemployment benefits in the form of monthly cash payments equivalent to 50%
of the average monthly compensation shall be paid to a permanent employee who is
involuntarily separated from the service due to the abolition of his office or position usually
resulting from reorganization: Provided, that he has been paying integrated contributions

lOMoARcPSD|11893536
for at least 1 year prior to separation (R.A. No.8291, Sec. 12).
Q: What are the conditions for entitlement to unemployment benefit? (PIP)

ANS: A member shall be entitled to the unemployment benefits if the following conditions
are met:
1. He/she was a fermanent employee at the time of separation (/RR of R.A. No.
8291, Rule IV, Sec. 22.1.1);
2. His/her separation was !nvoluntary due to the abolition of his/her office or
position resulting from reorganization (/RR of R.A. No. 8291, Rule IV,
Sec.22.1.2); and
3. He/she has been faying the required premium contributions for at least 1
year but less than 15 years prior to separation (/RR of R.A. No. 8291, Rule
IV, Sec. 22.1.3).
Q: What are the retirement benefit options under the GSIS Law?
ANS: A retiring member has the following options:
1. Five (5) year lump sum equivalent to 60 months of the Basic Monthly Pension
(BMP), subject to qualification requirements, less all outstanding obligations
of the member in accordance With the Claims and Loans Interdependence
Policy (CLIP), plus an old-age pension benefit equal to the BMP payable for
life, starting on the first day of thf!rmonth following the expiration of the 5 year
guaranteed period (/RR of RA No.8291, Rule IV, Sec. 20.2.1); or
2. Cash payment benefit equivElleqt to 18 tim~ of the BMP, subject to
qualification requirements, less altohtstangingQt$1igationsof the member in
accordance with the CLIP, plus a monthly pension for life payable on the first
month following the date of retirement (/RR of R.A. No. 8291, Rule JV, Sec.
20.2.2). .
Note: Unless the service is extended by appropriate a~thdrities, retirement shall be
compulsory for an employee of 65 years of age with at least 15 years of service provided
that if he has less than 15 years of service, be may be . .w> continue in the service
in accordance with existing civil service ruleS:and regufati ;/!?No. 8292, Sec.13(b)).
Q: What are the conditions for entitlemerii to retirement benefits under GSIS Law?
ANS: The conditions for entitlement to retire~nt .benefits under GSIS Law are the
following: ·
1. He has rendered at least 15 years of service;
2. He is at least 60 years of age at the time of retirement; and
3. He is not receiving a monthly pension benefit from permanent total disability
(R.A No. 8291, Sec.13-A).
Q: What are disability benefits under GSIS Law?

ANS: Disability benefits are the benefits that are granted to a member due to the loss or
reduction in earning capacity caused by a loss or impairment of the normal functions of
his/her physical and/or mental faculties as a result of an injury or disease (/RR of R.A. No.
8291, RULE IV, Sec. 23.1).
Note: The loss in earning capacity disability benefits shall be determined and granted not
only on the basis of the member's actual loss of income from his/her usual occupation but
also on his/her incapacity to continue engaging in any other gainful occupation because
of the impairment (/RR of R.A. No. 8291, RULE IV, Sec. 23.1).
Q: What are the kinds of disability under GSIS Law?

ANS: A disability may either be permanent total, permanent partial, or temporary total,
as determined by the GSIS based on established medical standards (/RR of R.A. No.
8291, RULE JV, Sec. 23.1).

lOMoARcPSD|11893536
The following are the kinds of disability:

1. Permanent Total Disability (PTO) - due to injury or disease causing
complete, irreversible, and permanent incapacity that will permanently disable
a member to work or to engage in any gainful occupation resulting to loss of
income (/RR of R.A. No. 8291, Rule IV, Sec. 23.2.1).
A member who becomes permanently and totally disabled shall be entitled to

the monthly income benefit for life equivalent to the BMP effective from the
date of disability when:
a. He/she is in the service at the time of the disability; or
b. If separated from service:
i. He/she has paid at least 36 monthly contributions within the five-
year period immediately preceding his-her disability; or
ii. He/she has paid a total of at least 180 monthly contributions, prior
to his/her disability; and
c. He/she is not receiving the old-age retirement pension benefit (R.A. No.
8291, Sec. 16).
2. Permanent Partial Disability (PPD) - accrues or arises upon irreversible

complete and permanent loss or impairment of certain physical faculties,
despite which the·member is able to pursue a gainful occupation resulting to
the disability to work for a limited period of time .(/RR of R.A. No. 8291, Rule
IV, Sec. 23.3.2).
A member whose disability is partial shall be entitled to a cash payment

equivalent to the basic monthly pension to be paid in accordance with the
schedule of disabilities or Table of Loss Percentages to be prescribed by the
GSIS if he satisfies the conditions (R.A. No. 8291, Sec. 17).
3. Temporary Total Disability (TTD) - accrues or arises when the impaired

physicaLalid/or mental faculties can be rehabilitated ;3nd/or restored to their
normal functions, but such disability shall result in temporary incapacity to
work or to engage in any gainful occupation (/RR of R.A. No. 8291, RULE IV,
Sec. 23.24.3).
A member who suffers temporary total disability shall be entitled to 75% of

his current daily compensation for each day or fraction thereof of temporary
total disability benefit (R.A. No. 8291, Sec. 18).
Q: What are the conditions for entitlement to disability benefits under the GSIS
Law?
ANS: To be entitled to the disability benefits under the GSIS Law, the member must
meet the following conditions:
1. He/she is in the service at the time of the disability; or
2. If separated from service:
a. He/she has paid at least 36 monthly contributions within the five-year
period immediately preceding his-her disability; or
b. He/she has paid a total of at least 180 monthly contributions, prior to
his/her disability; and
c. He/she is gainfully employed prior to the commencement of disability
resulting in loss of income as evidenced by any incontrovertible proof;
d. He/she is not a registered member of any social insurance institution;
and
e. He/she is not receiving any other pension either from GSIS or another
local or foreign institution or organization (/RR of R.A. No. 8291, Rule IV,

lOMoARcPSD|11893536
Sec. 23.4.1.1, Sec. 23.4.2, Sec. 23.4.3.1).
Q: What constitutes survivorship benefits under GSIS Law?

ANS: The survivorship benefits payable to the beneficiaries entitled under the conditions
stated in Sec. 103 shall consist of either or both of the following:
1. Survivorship pension, as follows:
a. The basic survivorship pension which is 50% of the basic monthly
pension; and
b. Dependent children's pension not exceeding 50% of the basic monthly
pension (R.A. No. 8291, Sec. 20);
2. Cash payment equivalent to 100% of the member's average monthly
compensation for each year of service he paid contributions, but not less than
P12,000.00 (R.A. No. 8291, Sec. 21).
Q: Does the GSIS Law require death to be work-related to be compensable with

survivorship pension?
ANS: No. The law only requires the following:
1. That the deceased was in the service at the time of his death; or
2. If separated from the service, has at least 3 years of service at the time of his
death and has paid 36 monthly contributions within the five-year period
immediately preceding his death; or has paid a total of at least 180 monthly
contributions prior to his death (R,A. No. 8291, Sec. 21 par. 1).
Q: What are the conditions for entitlement•tofuneralbene:fits under GSIS Law?

ANS: Funeral benefit shall be paid upon ttue death of: ·
1. An active member;
2. A member who has been separated from the servicewith more than 15 years
of creditable service, but entitled to future separation or retirement benefits;
3. Old age or disability pensioner;
4. A retiree who at the time of his retirement is at least 60 years of age and with
at least 20 years of service but who opts to retlnn.1nder~-A. No. 1616 on or
after June 24, 1997; or ··
5. A member who retired under R;A. No. 1616 prior to June 24, 1997 with at
least 20 years of service, regardless of. age (/RR of R.A. No.8291, Rule IV,
Sec. 23). ·
Q: Under the GSIS Law, to whom shall the funeral benefits payable?
ANS: Funeral benefit is intended to help defray the expenses incident to the burial and
funeral of the deceased member, pensioner or retiree under R.A. No. 660, RA No. 1616,
P.O. No. 1146 and R.A No. 8291. It is payable to any qualified individual, in accordance
with the following order of priority:
1. Legitimate spouse;
2. Legitimate child who spent for the funeral services;
3. Any other person who can show incontrovertible proof that he shouldered the
funeral expenses of the deceased (/RR of R.A. No. 8291, Rule IV, Sec. 25.1).
Q: Who are not entitled to funeral benefits?

ANS: The following are not entitled to funeral benefits:
1. All survivorship pensioners; and
2. Those who have optional life insurance coverage only (/RR of R.A. No. 8291,
RULE X, Sec. 10.8).
Q: What are the types of life insurance benefits?

ANS: Life insurance benefits can either be compulsory or optional (R.A. No. 8291, Secs.
24 and 26).

lOMoARcPSD|11893536
Q: Who are compulsorily covered by the life insurance?

ANS: Life insurance shall be compulsory for all employees, including the members of
the Judiciary and the Constitutional Commissioners, but excluding the uniformed
members of the AFP, PNP, BFP, and BJMP (/RR of R.A. No. 8291, Rule XI, Sec. 11.1).
Q: To whom are life insurance benefits payable?

ANS: The benefits are payable under the life endowment policy in any of the following
instances:
1. Maturity Benefit - Upon maturity of the life insurance, the face amount less
any indebtedness against the policy, shall be paid to the member;
2. Death Benefit - When a member dies prior to the maturity of his/her
insurance and during its continuance, the GSIS shall pay to the designated
beneficiaries or to his/her legal heirs, as the case may be, the face amount
less any indebtedness thereon;
3. Accidental Death Benefit (ADB) - When the death of the member is
accidental, the GSIS shall pay the designated beneficiaries or the legal heirs,
as the case may be, an additional amount equivalent to the face amount of
his/her compulsory insurance;
4. Waiver of Premiums - When. Jl member is separated due to total and
permanent disability, the contributjons that may become due and payable
during the period of disability'~hall be deemeQ waived and considered paid;
5. Cash Surrender Value (CSV)- After his insurance shall have been in force
for 1 year, a member separated from the seJvice prior to the maturity of the
insurance may be paid the cash value less any indebtedness thereon unless
the terms of his separation provide otherwise;.
6. Insurance Lo11ns- Upon application, a member who has been insured for at
least 1 year may be granted an insurance loan ,in an amount not exceeding
50% of the cash value of his insurance at :the time of application; or
7. Dividends - An annual dividend may be grantecj to all members of the GSIS
whose life insurance is in force for at least ,1year, based on records submitted
by the employer. A Dividend Allocation Formula shall be determined and
circularized by the GSIS for this purpose (/RR of R.A.,No. 8291, Rule XI, Sec.
11.5).
Q: May an employee, by himself; apply fo.roptional life.insurance?

ANS: Yes. A member may, at any .time, apply fot optional life insurance and pre-need
coverage for himself and/or his dependents (R.A. No; 8291, Sec. 26).
Q: What is the prescriptive period for claims under the GSIS Law?
ANS: Claims for benefits under the GSIS Law except for life and retirement shall
prescribe after 4 years from the date of contingency (R.A. No. 8291, Sec. 28).
C. LIMITEDPORTABILITYLAW {R.A. NO. 761111)
Q: What is "portability" under Limited Portability Law?

ANS: Portability refers to the transfer of funds for the account and benefit of a worker
who transfers from one system to the other (R.A. No. 7699, Sec. 2(b)).
Q: Who are covered by the Limited Portability Law?

ANS: The rules and regulations shall apply to all worker-members of the Government
Service Insurance System (GSIS) and/or Social Security System (SSS) who transfer from
one sector to another, and who wish to retain their membership in both Systems (/RR of
R.A. No. 7699, Rule 1, Sec. 1).

lOMoARcPSD|11893536
Q: What is "totalization" under Limited Portability Law?

ANS: Totalization refers to the process of adding up the periods of creditable services
or contributions under each of the Systems, for the purpose of eligibility and computation
of benefits (R.A. No. 7699, Sec. 2(e)).
Q: When does totalization apply under Limited Portability Law?

ANS: Totalization shall apply in the following instances:
1. If a worker is not qualified for any benefits from both Systems;
2. If a worker in the public sector is not qualified for any benefits in the GSIS; or
3. If a worker in the private sector is not qualified for any benefits from the SSS
(/RR of R.A. No. 7699, Rule V, Sec. 3, par. 1).
Note: If a worker qualifies for benefits in both Systems, totalization shall not apply.
Further, overlapping periods of creditable services or contributions in both Systems shall
be credited only once for purposes of totalization. For the purpose of computation of
benefits, totalization shall apply in all cases so that the contributions made by the worker-
member in both Systems shall provide maximum benefits which otherwise will not be
available. In no case shall the contribution be lost or forfeited (/RR of R.A. No. 7699, Rule
V, Sec. 3, par. 2, Secs. 5 and 7).
Q: What are the benefits covered under Limited Portability Law? (ODS-SMO)
ANS: The benefits covered under Limited Portability Law are the following:
1. Qld age benefit;
2. Qisability benefit;
3. §urvivorship benefit;
4. §ickness benefit;
5. _Medicare benefit, provided that the member shall claim said benefit from the
system where he was last a member; and
6. Such Qther benefits common to both System that may be availed of through
totalization (/RR of R.A. No. 7699,Rule Ill, Sec. 1(j)).
Note: If after totalization the worker-memb~r. still does not ·qualifyJor any benefit listed
above, the member will then get whatever benefits correspond to his/her contributions in
either or both Systems (IRR of R.A. No. 7699, Rule V, Sec. 4).
D. DISABILITY
AND DEATHBENEFITS
labor Code
Q: What are the disability benefits under the Labor Code?
ANS: The following are the disability benefits under the Labor Code:
1. Temporary Total Disability (Art.197);
2. Permanent Total Disability (Art.198); and
3. Permanent Partial Disability (Art. 199).
Q: What constitutes Temporary Total Disability Benefits under the Labor Code?
ANS: Any employee who sustains an injury or contracts sickness resulting in temporary
total disability shall, for each day of such disability or fraction thereof, be paid by the
System an income benefit equivalent to 90% of his average daily salary credit subject to
the following conditions: the daily income benefit shall not be less than P10.00 or more
than P90.00, nor paid for a continuous period longer than 120 days (LABOR CODE,
Art. 197).
Q: What constitutes Permanent Total Disability Benefits under the Labor Code?
ANS: Any employee who contracts sickness or sustains an injury resulting in his
permanent total disability shall, for each month until his death be paid by the System

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Volume 1 - Series of 2022
during such disability, an amount equivalent to the monthly income benefit, plus 10% for
each dependent child but not exceeding five, beginning with the youngest and without
substitution (LABOR CODE, Art. 198).
Q: What disabilities shall be deemed total and permanent under the Labor Code?
ANS: The following disabilities shall be deemed total and permanent under the Labor
Code:
1. Temporary total disability lasting continuously for more than 120 days, except
as otherwise provided for in the Rules;
2. Complete loss of sight of both eyes;
3. Loss of 2 limbs at or above the ankle or wrist;
4. Permanent complete paralysis of 2 limbs;
5. Brain injury resulting in incurable imbecility or insanity; and
6. Such cases as determined by the Medical Director of the System and
approved by the Commission (LABOR CODE, Art.198 par. C).
Q: What constitutes Permanent Partial Disability Benefits under the Labor Code?
ANS: Any employee who contracts or suffers an injury resulting in permanent partial
disability shall, for each month be paid by the System during such a disability an income
benefit equivalent to the income benefit of permane_nt total disability (LABOR CODE,
Art.199).
Q: Distinguish "Permanent Partial Qisability" from "Permanent Total Disability".

ANS: While 'permanent total disability' invariably results in arr ~mployee's loss of work
or inability to perform his usual work, 'permanent partiat disabmty,' on the other hand,
occurs when an employee loses the use of any particular anatomical part of his body
which disables him to continue with his former work (Vicente v ...Employees Compensation
Commission, G.R. No. 85024, January 23, 1991). ·
Note: The test of whether or not an employee suffers from \permanent total disability' is
a showing of the capacity of the employee to conJinuE:j performing his work
notwithstanding the disability he incurred (Ibid.).
Q: What constitutes Death Benefits under the Labor Code?

ANS: The System shall pay the primary beneficiaries upon the death of the covered
employee an amount equivalent to his monthly' income, ,plus 10% for each dependent
child, but not exceeding 5, beginning with the youngest and without substitution provided
that if he has no primary beneficiary, the System shall pay to his secondary beneficiaries
the monthly income benefit but not to exceed 60 months. The minimum death benefit shall
not be less than P15,000.00 (LABOR CODE, Art. 200 (a)).
Q: What is dependency?
ANS: The term "dependency" does not mean absolute dependency for the necessities
of life, but rather, that the plaintiff looked up to and relied on the contribution of decedent
in whole or in part, as a means of supporting and maintaining herself in accordance with
her station in life. A person may be dependent although able to maintain herself without
any assistance from the decedent (CHAN REVIEWER, supra at 467-468).
Q: What is the test of dependency?

ANS: The test of dependency is not merely whether the contributions were necessary to
bare subsistence. Dependency may exist if such contributions were relied on by claimant
for his/her means of living as determined by his/her position in life (Ma/ate Taxicab v. Del
Villar, G.R. No. L-7489, February 29, 1956).
Q: What is the prescriptive period for claims under the Labor Code?
ANS: No claim for compensation shall be given due course unless said claim is filed with

lOMoARcPSD|11893536
the System within 3 years from the time the cause of action accrued (LABOR CODE, Art.
207).
POEA - Standard Employment Contract for Seafarers

Q: Who are covered by the rules provided under the POEA-SEC?
ANS: The rules provided under POEA-SEC cover all Filipino seafarers on board ocean-
going ships (POEA Memorandum Circular No. 10, Series of 2010).
Note: The employment contract between the employer and the seafarer shall commence
upon the actual departure of the seafarer from the PH airport or seaport in the point of
hire and with the POEA approved contract. It shall be effective until the seafarer's date of
arrival at the point of hire upon termination of his employment (POEA Memorandum
Circular No. 10, Series of 2010, Sec. 2, par. A).
Q: When shall the employer be held liable for the employee's disability allowance
under the POEA-SEC?
ANS: The employer shall be liable when the seafarer suffers work-related injury or illness
during the term of his contract (POEA Memorandum Circular No. 10, Series of 2010, Sec.
20, par. A).
Q: What is 'work-related illness' under POEA-SEC?
ANS: Work-related illness is any sickness as a result of an occupational disease
listed under Sec. 32-A of POEA Memorandum Circular no. 10, Series of 2010.
Q: What are the requisites for a work-related illness or death to be ,

compensable? (REPN)
ANS: ·For an occupational disease ~andtfie resulting oisabil1ty or death to be
compensable, all of the following conditions must be satisfied:
1. The seafarer's work must involve the !!isks described under Sec.32-A of
POEA Memorandum Circular no~10, Series Qf2010; '.
2. The disease was contracted as a result of the seafarer's _!;xposure to the
described risks;
3. The disease was contracted within a .e_eriodof exposure and under such other
factors necessary to contract it; and
4. There was no notorious tf_egligence'.Qfl the part of the seafarer (POEA
Memorandum Circular No. 10, Section 32-A).
Q: When is compensation for disability or death not compensable?

ANS: No compensation and benefits shall be payable in respect of any injury, incapacity,
disability, or death of the seafarer resulting from his willful or criminal act or intentional
breach of his duties, provided, however, that the employer can prove that such injury,
incapacity, disability or death is directly attributable to the seafarer (POEA Memorandum
Circular No. 10, Series of 2010, Sec. 20, par. 0).
Q: What are the liabilities of the employer when the seafarer suffers work-related
injury or illness during the term of his contract?
ANS: The following are the liabilities of the employer when the seafarer suffers work-
related injury or illness during the term of his contract:
1. The employer shall continue to pay the seafarer his wages during the time he
is on board of the ship;
2. The employer shall be liable for the full cost of such medical, serious dental,
surgical and hospital treatment as well as board and lodging until the seafarer
is declared fit to work or to be repatriated;
3. The seafarer shall also receive sickness allowance from his employer in the
amount equivalent to his basic wage;

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4. In case the seafarer is disembarked from the ship for medical reasons, the
employer shall bear the full repatriation in the event the seafarer is declared
fit for repatriation or fit to work but the employer is unable to find employment
for the seafarer on board his former ship or another ship of the employer; and
5. In case of permanent total or partial disability of the seafarer caused by either
injury or illness, the seafarer shall be compensated in accordance with the
schedule of benefits enumerated in Sec. 32-A (POEA Memorandum Circular
No. 10, Series of 2010, Sec. 20, par. A (1-5)).
Q: What constitutes death benefits and compensation under POEA-SEC?

ANS: In case of work-related death of the seafarer, during the term of his contract, the
employer shall pay his beneficiaries the Philippine currency equivalent to the amount of
US$50,000 and an additional amount of US$7,000 to each child under the age of 21 but
not exceeding 4 children, at the exchange rate prevailing during the time of payment.
Where the death is caused by warlike activity while sailing within a declared war zone or
war risk are, the compensation shall be doubled (POEA Memorandum Circular No. 10,
Series of 2010, Sec. 20, par. B (1-2)).
Note: The benefits mentioned shall be separate and distinct from and will be in addition
to whatever benefit which the aeafarer is entitled under Philippine law (POEA
Memorandum Circular No. 10, Series of 2010, Sec. 20, par. 8(3)).
Q: What happens if the seafarer knowingly·c.onceals" a pre-existing illness or

condition?
ANS: A seafarer who ~nowiilgly conceals a pre-existing illness or condition in the Pre-
Employment Medical Examination shall be liable for misrepresentation and shall be
disqualified from any compensation or benefit. This is likewise a just cause for termination
of employment and imposition of proper administrative sanctions (POEA Memorandum
Circular No. 10, Series of 2010, Sec. 20, par.£).
Q: What are the rules regarding the duty of a company-designated physician in

issuing a final medical ailsessment?
ANS: The rules regarding the duty of a company-designated physician in issuing a final
medical assessment, are as follows:
1. The company-designated physician must issue a final medical assessment
on the seafarer's disability grading within a period of 120 days from the time
the seafarer reported to him;
2. If the company-designated physician fails to give his assessment within the
period of 120 days, without any justifiable reason, then the seafarer's disability
becomes permanent and total;
3. If the company-designated physician fails to give his assessment within the
period of 120 days with a sufficient justification (e.g., seafarer required further
medical treatment or seafarer was uncooperative), then the period of
diagnosis and treatment shall be extended to 240 days. The employer has
the burden to prove that the company-designated physician has sufficient
justification to extend the period; and
4. If the company-designated physician still fails to give his assessment within
the extended period of 240 days, then the seafarer's disability becomes
permanent and total, regardless of any justification (Magsaysay Mo/ Marine,
Inc., v. Atraje, G.R. No. 229192, July 23, 2018).
Q: What is the "Third Doctor Opinion Rule"?

ANS: If a doctor appointed by the seafarer disagrees with the assessment, a third doctor
may be agreed jointly between the Employer and the seafarer. The third doctor's decision
shall be final and binding on both parties (POEA Memorandum Circular No. 10, Series of
2010, Sec. 20, par. A (4)).

lOMoARcPSD|11893536
Q: Can the seafarer claim both the benefits under the POEA-SEC and those
provided under the Philippine laws, e.g., SSS, ECC, Pag-lBIG Fund?
ANS: Yes, the seafarer can claim benefits on both. The benefits under the POEA-SEC
are separate and distinct from and will be in addition to whatever benefits which the
seafarer is entitled to under the Philippine laws (POEA Memorandum Circular No. 10,
Series of 2010, Sec. 20, par. A (7)).
Q: What is the prescriptive period for claims under POEA-SEC?

ANS: All claims from this contract shall be made within 3 years from the date the cause
of action arises (POEA Memorandum Circular No. 10, Series of 2010, Sec. 30).
~- Lalor Relations
A. RIGHT TOSELF-ORGANIZATION
Q: What is the employees' right to self-organization?

ANS: It is the right of the employees to form, join, or assist in the formation of a labor
organization of their own choosing for purposes of collective bargaining through
representatives of their own choosing and to engage in lawful concerted activities for
purposes of collective bargaining or for their mutual aid and protection (LABOR CODE,
Art. 253). The State guarantees the rights of allworkers to self-organization, collective
bargaining and negotiations, and peaceful concfurted activities, including the right to strike
in accordance with law (CONST. Art. XIII, Sec. 3, Par. 2).
Who MavJoin, Form, orAssist labor Organizations or Workers' Associations

Q: What is a labor organization?
ANS: It is any union or association of employees whicl:1exists in wl:lole or in part for the
purpose of collective bargaining with employers concerning terms
and conditions of
employment (LABOR CODE, Art. 219 (g)).
Q: What is a worker's association?

ANS: It is an association organized for the rnutualaidand protection of its members or
for any legitimate purpose other than collective bargaining (/RR of the LABOR CODE,
Book V, Rule 1, Sec 1(ccc), as amended by 0.0. No. 40-03).
Q: Who are eligible to join, form, or assist a labor organization for purposes of
collective bargaining?
ANS: Those eligible to join, form, or assist a labor organization for purposes of collective
bargaining are the following:
1. Private sector:
a. All persons employed in commercial, industrial, and agricultural
enterprises (LABOR CODE, Art. 253);
b. Employees of GOCCs without original charters established under the
Corporation Code (LABOR CODE, Art. 254);
c. Employees of religious, charitable, medical or educational institutions,
whether operating for profit or not (LABOR CODE, Art. 253);
d. Supervisory employees (LABOR CODE, Art. 255);
e. Alien employees (/LO Convention No. 98, Art. 2);
f. Homeworkers (0.0. No. 5, Sec. 3, February 4, 1992);
g. Employees of cooperatives (Central Negros Electric Corporation v.
Secretary of Labor, G.R. No. 94045, September 13, 1991); and
h. Employees of legitimate contractors (0.0. No. 174-17, Sec.10(e)); and

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2. Public Sector - All rank-and-file employees of all branches, subdivisions,

instrumentalities, and agencies of government, including GOCCs with original
charters, can form, join, or assist labor organizations called employees'
organizations of their own choosing (E. 0. No. 180, Secs. 1 and 2).
Q: Who are eligible to join a labor organization for mutual aid and protection? (AIR-
SITE)
ANS: The following may join a labor organization for mutual aid and protection:
1. Ambulant workers;
2. !ntermittent workers;
3. Rural workers;
4. §.elf-employed people;
5. itinerant workers;
6. Ihose without definite employers (LABOR CODE, Art. 253); and
7. gmployees of a common employer (Manggagawa sa Hanjin Shipyard v.
Bureau of Labor Relations, G.R. No. 211145, October 14, 2015).
Restrictions as to Managerial Employees, Supervisory Employees,

Confidential Employees, Employee-Members of Cooperatives, Alien
Employees, and Government f_mplqyees
Q: Who are not eligible to join, form, or assisfa labor organization? (MIACHANGES)
ANS: The following are those not eligible to join, form, or assist a labor organization of
purposes of collective bargaining:
1. Managerial employees (LABOR CODE, Art. 255);
2. Employees of International Organizations with Immunities (International
Catholic Immigration Commission v. Calleja, G.ll No. 85750, September 28,
1990);
3. Members of the Armed Forces of the Philippines, including police officers,
policemen, firemen and jail guards (E.O. No. 180 (1987), Sec. 4);
4. .Q.onfidential employees (Metro/ab Industries v. Roldan-Confesor, G.R No.
108855, February 28, 1996);
5. !!igh-level or managerial government employees (E.O. No. 180, Sec. 3);
6. Aliens without valid working permits or aliens with valid working permits but
are nationals of a country which do not allow Filipinos to exercise the right of
self-organization and lo join or assist labor organizations (LABOR CODE, Art.
284);
7. §overnment employees, including GOCC with original charter (Ariza/av. CA,
G.R. Nos. 43633-34, September 14, 1990);
8. 5mployees of cooperatives who are at the same time its members (Benguet
Electric Cooperative Inc., v. Ferrer-Calleja, G.R. No. 79025, December 29,
1989); and
9. §.ubversives or those directly or indirectly engaged in subversive activities
(LABOR CODE, Art. 250(e)).
Q: Who are managerial employees?

ANS: Managerial employees are those who are vested with powers or prerogatives to
lay down and execute management policies and/or hire, transfer, suspend, lay-off, recall,
discharge, assign, or discipline employees (LABOR CODE, Art. 219(m)).
Q: What are the different ranks of managerial employees? (TMF)

ANS: Managerial employees are ranked as:
1. Iop Managers,
2. Middle Managers; and
3. first Line Managers.

lOMoARcPSD|11893536
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Volume I · Seriesof 2022
Top and Middle Managers have the authority to devise, implement and control strategic
and operational policies while the task of First-Line Managers is simply to ensure that
such policies are carried out by the rank-and-file employees of an organization (Paper
Industries Corp v. Laguesma, G.R. No. 101738, April 12, 2000).
Q: Who are supervisory employees?

ANS: Supervisory employees are those, who in the interest of the employer, effectively
recommend such managerial actions if the exercise of such authority is not merely
routinary or clerical in nature but requires the use of independent judgment (LABOR
CODE, Art. 219(m)).
Q: What are the limitations as to the rights of supervisory employees?

ANS: Supervisory employees shall not be eligible for membership in the collective
bargaining unit of the rank-and-file employees but may join, assist, or form separate
collective bargaining units and/or legitimate labor organizations of their own. The rank-
and-file union and the supervisors' union operating within the same establishment may
join the same federation or national union (LABOR CODE, Art. 255).
Q: Who are confidential employees?

ANS: Confidential employees are those who (1) assist or act in a confidential capacity,
(2) to persons who formulate, determine, anQ!:lffectuate management policies in the field
of labor relations. The two criteria are cum1.llll\tive,and both must be met if an employee
is to be considered a confidential employee~- that is, the ponfidential relationship must
exist between the employee and his supervisor, and the supervisor must handle the
prescribed responsibilities relating to labor relations (San Migvel Corporation Supervisors
and Exempt Union v. Laguesma, G.R. No. t40399, August 1"5,1997).
Q: What is the legal basis for prohibiting confidential employees from exercising
the right to self-organization?
ANS: The disqualification of confidential employees. proceeds _merely from the
application of the Doctrine of Necessary Implication. be00!.1$$WhatArticle 255 of the
Labor Code singles out as ineligible to join, assist or form any labor organization are
managerial employees. By necessary implication, confidential employees are similarly
disqualified. What is implied in a statute is as,.IJ'U,IChpart
thereof as that which is expressed
(Chua v. Civil Service Commission, G.R. No<l389,r9_,febr,upry 7, 1992).
If these managerial employees would belong to or be affiliated with a Union, the latter
might not be assured of their loyalty to the Union in view of evident conflict of interest. The
same rationale was applied to confidential employees who by the very nature of their
functions, assist and act in a confidential capacity to, or have access to confidential
matters of, persons who exercise managerial functions in the field of labor relations (San
Miguel Corporation Supervisors and Exempt Union v. Laguesma, G.R. No. 110399,
August 15, 1997).
Q: Are confidential employees allowed to join unions?

ANS: Yes. As a general rule, jurisprudence has extended the prohibition in joining unions
to confidential employees or those who by reason of their positions or nature of work are
required to assist or act in a fiduciary manner to managerial employees and hence, are
likewise privy to sensitive and highly confidential records (Metro/ab Industries v. Confesor,
G.R. No. 108855, February 28, 1996).
However, the Supreme Court explained that confidential rank-and-file employees may join
the union of supervisors especially in a situation where the confidential employees are
very few in numbers and are, by practice and tradition, identified with the supervisors in
their role as representatives of management vis-a-vis the rank-and-file employees. Such

lOMoARcPSD|11893536
identity of interest has allowed their inclusion in the bargaining unit of supervisors for the
purpose of collective bargaining (Fi/oil Refinery Corporation v. Fi/oil Supervisory &
Confidential Employees Association, G.R. No. L-26736, August 18, 1972).
Q: Are employees of cooperatives allowed to form labor organizations?

ANS: It depends.
1. Employees who are members of cooperative have NO right to form labor
organizations - An employee of such a cooperative who is a member and co-
owner thereof cannot invoke the right to collective bargaining for certainly an
owner cannot bargain with himself or his co-owners (Cooperative Rural Bank
of Davao City v. Calleja, G.R. No. 77951, September 26, 1988);
2. Employees who are not members of cooperative may exercise rights to
form labor organizations - Insofar as it involves cooperatives with
employees who are not members or co-owners thereof, certainly such
employees are entitled to exercise the rights of all workers to organization,
collective bargaining, negotiations and others as are enshrined in the
Constitution and existing laws of the country (Ibid); and
3. Employees who are members-consumers of a cooperative are also NOT
qualified to form, join or assist labor organizations for purposes of
collective bargaining - The reason for withholding from employees of a
cooperative who are members-_co-owners the right to collective bargaining is
clear: an owner cannot bargain with himself (San Jose City Electric Service
Cooperative, Inc., v. Ministry of Labor and Employment, G.R. No. 77231, May
31, 1989).
Q: What are the requisites for an alien employee to be-abfe to join or form a labor
organization?
ANS: The requisites for an alien employee to join or form labor organizations are:
3. He should have a valid working permit issued by the DOLE; and
4. He is a national of a country which grants the same or similar rights to Filipino
workers or which has ratified either lLO Convention No. 87 or 98, as certified
by the Philippine DFA (CHAN REVIEWER, supra at 380).
Q: What is the principle of reciprocity in relation to the eligibility of foreigners to

form labor organizations?
ANS: Under the principle of reciprocity, aliens working in the country with valid permits
issued by DOLE, may exercise the right to self-organization and join or assist labor
organizations of their own choosing for purposes of collective bargaining, provided, that
said aliens are nationals of a country which grants the same or similar rights to Filipino
workers (LABOR CODE, Art. 284).
Q: What are the rights of employees in the public service?

ANS: All government employees can form, join, or assist employees' organizations of
their own choosing for the furtherance and protection of their interests. They can also form
labor-management committees, work councils, and other forms of workers' participation
schemes to achieve the same objectives (E.O. No. 180, Sec.1).
Q: Who are not eligible to join, form or assist a labor organization in the public
sector?
ANS: The following are not eligible to join, form or assist a labor organization in the public
sector:
1. High-level employees whose functions are normally considered as policy-
making or managerial or managerial or whose duties are of a highly
confidential nature shall not be eligible to join the organization of rank-and-
file government employees (E.O. No. 180, Sec. 3); and

lOMoARcPSD|11893536
2. Members of the AFP, including police officers, firemen, and jail guards (E.O.
No. 180, Sec. 4).
Q: What are the limitations on the rights of government employees to organize?

ANS: Government employees covered by E.O. No. 180 may organize, even unionize,
and negotiate employment conditions not fixed by law but they cannot strike (2
AZUCENA, supra at 264).
Determination of Appropriate Bargaining Unit {ABU} and £Hect of Inclusion of

Employees outside of the ABU
Q: What is a bargaining unit?

ANS: A bargaining unit refers to a group of employees sharing mutual interests within a
given employer unit, comprised of all or less than all of the entire body of employees in
the employer unit or any specific occupational or geographical grouping within such
employer unit (/RR of the LABOR CODE, Book V, Rule/, Sec. 1(e), as amended by 0.0.
No. 40-03).
Q: What are the tests in determining the'.appropriate composition of a bargaining

unit? (CHEG)
ANS: The tests which may be used in determining the appropriate composition of a
bargaining unit are the following: · ·_
1. ~ommunity or Mutuality of lnterff1:fi>octrine:~V,e employees sought to be
represented must have comrru.rrilty i:Wrri!.!ttltlify of interest in terms of
employment and working conditions as evinced t>y the type of work they
perform. It is characterized by Slmilarity of employment status, same duties
and responsibilities, and subs~ntially similar cpmpensation and working
conditions (San Miguel Corporation Employees Union-PTGWO v. Confesor,
G.R. No. 111262, September 19;;1996); _
2. Collective Bargaining .!::!.istoryDoctriq~ _--'. Pt;!is.
J;>remium to the prior
collective bargaining history and affinity ofthtiJ;E!tllPl!':!Yees;
neither decisive
nor conclusive in the determination of what. cohstftutes an appropriate
bargaining unit (San Miguel Cqrporation v. Laguesma, G.R. No. 100485,
September 21, 1994);
3. gmployment Status Doctrine,-,lan.~cceptable mode of determination of
appropriate bargaining unit based on employment status of the employees,
such as temporary, seasonal, and probationary (Sta. Lucia East Commercial
Corporation v. Secretary of Labor and Employment, G.R. No. 162355, August
14, 2009); and
4. §lobe Doctrine - based on express will or desire of the employees. The
desires of all the employees are relevant to the determination of the
appropriate bargaining unit. The relevance of the wishes of the employees
concerning their inclusion or exclusion from a proposed bargaining unit is
inherent in the basic right to self-organization (International School Alliance
of Educators v. Quisumbing, G.R. No. 128845, June 1, 2000).
Q: What is commingling or mixture of membership?

ANS: Commingling or mixture of membership is the inclusion as union members of
employees outside the bargaining unit (LABOR CODE, Art. 256). It also refers to any
mingling between supervisory and rank-and-file employees in its membership in a
legitimate labor organization (Samahang Manggagawa sa Charter Chemical Solidarity
of Unions in the Philippines for Empowerment and Reforms (SMCC-SUPER), G.R. No.
169717, March 16, 2011).

lOMoARcPSD|11893536
Q: What is the effect of commingling or mixture of membership?

ANS: The inclusion as union members of employees outside the bargaining unit shall
not be a ground for the cancellation of the registration of the union. Said employees are
automatically deemed removed from the list of membership of said union (LABOR CODE,
Art. 256).
After a labor organization has been registered, it may exercise all the rights and privileges
of a legitimate labor organization. Any mingling between supervisory and rank-and-file
employees in its membership cannot affect its legitimacy for that is not among the grounds
for cancellation of its registration, unless such mingling was brought about by
misrepresentation, false statement or fraud under Art. 239 of the Labor Code (Tagaytay
Highland's International Golf Club, Inc., v. Tagaytay Highlands Employees Union-
PGTWO, G.R. No. 142000, January 22, 2003).
Non-interference with Workers' Rights to Self-organization

Q: What is the principle of non-interference with workers' rights to self-
organization?
ANS: The right of the people, including those employed in the public and private sectors,
to form unions, associations, or societies for purposes not contrary to law shall not be
abridged (CONST. Art. Ill, Sec. 8).
Note: The employer's refusal to bargain, to its acts of economic inducements resulting in
the promotion of those who withdrew from the union, the use of armed guards to prevent
the organizers to come in, and the dismissal of union officials and members, one cannot
but conclude that the employer did not want a union in its hacienda - a clear interference
in the right of the workers to self0 organization (Hacienda Fatima if. National Federation of
Sugarcane Workers - Food and General Trade, G.R. No. 149440; January 28, 2003).
B. LEGITIMATELABORORGANIZATIONS
Registration with the DOJ.E

Q: What are the requirements for the issuance of the Certificate of Registration of
Labor Organizations? (FNI-E4)
ANS: The requirements for the issuance of the Certificate of Registration of Labor
Organizations are the following:
1. fifty pesos (P50.00) registration Fee;
2. !fames of its officers, their addresses, the principal address of the labor
organization, the minutes of the organizational meetings and the list of the
workers who participated in such meetings;
3. In case the applicant is an !ndependent union, the names of all its members
compromising at least 20% of all the employees in the bargaining unit where
it seeks to operate;
4. If the applicant union has been in .!;_xistencefor 1 or more years, copies of its
annual financial reports; and
5. Four (1.)copies of the constitution and by-laws of the applicant union, minutes
of its adoption or ratification, and a list of members who participated in it
Q: Where will the application for registration be filed?

ANS: An application for registration shall be filed with:
1. Regional office where the applicant principally operates - for registration
of independent labor unions, chartered locals, or workers' association.

lOMoARcPSD|11893536
2. Bureau of Labor Relations (BLR) or the Regional offices - applications for

registration of federations, national unions, or workers' association operating
in more than one region (2 AZUCENA, supra at 187).
Q: What is the effect of non-registration of a labor organization?

ANS: Non-registration does not mean it is "illegitimate." It is simply unregistered and has
no legal personality. It exists legally but does not possess the rights of a Legitimate Labor
Organization (LLO) (2 AZUCENA, supra at 179).
Cancellation of Registration
Q: What is the effect of a Petition for Cancellation of Union Registration?
ANS: A petition for cancellation of union registration shall not suspend the proceedings
on certification of election nor shall it prevent the filing of a petition for certification election
(LABOR CODE, Art 246).
Q: What are the grounds for the Cancellation of Union Registration? (CoDE)
ANS: The grounds for the Cancellation of Union Registration are the following:
1. Misrepresentation, false statern«nt or fraud in connection with the adoption or
ratification of the Constitutid wand by-laws or amendments thereto, the
minutes of ratification anq tl,e f members who took part in the ratification;
2. Voluntary Q_issolutionby rs; and
3. Misrepresentation, false s raud in nnection with the .5.lection
of officers, minutes of the ete ,.
the list of voters (LABOR
CODE, Art. 247):
Q: Can the registration~6f a. legitimate~jabor organi~d~~ be cancelled by the

organization itself? •··. .• · I€ i ;; \
ANS_: The registratiorrof a legittmate laboft,,ay be ca~cellep byiJhe organization itself
provided that: ... ""ii · · .,
1. At least 2/3 bf Its ger,erat fr!em • .... ip vote~;; : duly called for that
purpose, to dissq(Ve the organi n; and •.:.:::'·
2. An application tb caticel regist n is thereafter submitted by the board of
the organization, attested to b r,esident thereof (LABOR CODE, Art.
24aJ. ;fE:!:
Q: What are the rules on Cl'iincetfation of Registration?
ANS: The following are the ruleson cancellation of registration:
Regional Director who has Any party-in-interest, if

jurisdiction over the place ground is:
where respondent principally 1. Failure to comply with
operates (30 days to decide) any of the requirements;
or
2. Violation of any
provision.
Bureau Director (30 days to At least 30% of the members

decide) of the union or any member

lOMoARcPSD|11893536
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For Where to File Who May File

or members specially
National or
Industry Nations concerned if grounds are
actions involving violations of
Trade Union Art. 249 (LABOR CODE Art.
Centers 249).
(/RR of the LABOR CODE, Book V, Rule XI, as amended by 0.0. No. 40-03).
Affiliationloisaffiliation from National Union or Federation

Q: Who is an affiliate?
ANS: An affiliate is:
1. An independent union affiliated with a federation or national union; or
2. A chartered local which was subsequently granted an independent
registration but did not disaffiliate from its mother federation or national
union (0.0. No. 40-03, Rule I, Sec. 1(a)).
Q: What are the requirements of affiliation? (RAR-M 2AN)

ANS: The requirements of affiliation are: .. · ...
1. Report of affiliation of indepef!d~.ntlyregistered labor union; and
2. Attachments: · ·· · .
_Besolutidnofthelaborunion'sbOqrdo{directOt;s approving the affiliation;
b. .M,inute,s'of(~egeneral membership meeting'.approving the affiliation;
c. The total number of .M,emberscomprising'th~ labbr union and the names
of mem_berswho approved the affiliation; \ .
d. The ce,rtificate of Affiliation issued by th~ fedetation in favor of the
independently registered labor uniol'),;and ': ..... ,
e. Written ttotice to the employer cort"cerned)ifthe ~ffiliating union is the
incump'et1tbargaining agent (JRRoftt1eLAEJORc9OE,Book v, Rule Ill,
Seo,, 7, a~ amended byo.o. No,40°03),.,' /
Q: What is the relationship 'between a~ affiUc1te,or i;h.arter(;)CI

local and the national
union? ·.. · .... • · .. ,,J' • .•
ANS: The national union, or•"motherurrion 1';a¢hng for'qPd in behalf of its affiliate, has
the status of an agent while the affiliate or local chapter remains the principal - the basic
unit of the association free to serve1he common interest of all its members, subject only
to the constraints imposed by the constitution and bylaws of the association (Progressive
Development Corporation v. Secretary of Labor and Employment, G.R. No. 96425,
February 4, 1992).
Q: What is the union's right to disaffiliate?

ANS: It is the right of the affiliate union to disaffiliate from its mother federation or national
union which is a constitutionally-guaranteed right that may be invoked by the former at
any time. It is axiomatic that an affiliate union is a separate and voluntary association free
to serve the interest of all its members, consistent with the freedom of association
guaranteed in the Constitution (Vokschel Labor Union v. BLR, G.R. No. L-45824, June
19, 1985).
Q: When should a labor union disaffiliate from its mother union?

ANS: A labor union, as a general rule, may disaffiliate from the mother union to form an
independent union only during the 60-day freedom period immediately preceding the
expiration of the CBA, except when it is effected by a majority of the members in the
bargaining unit (ANGLO-KMU v. Samahan ng mga Manggagawang Nagkakaisa sa
Manila Bay Spinning Mills, G.R. No. 118562, July 5, 1996).

lOMoARcPSD|11893536
Q: What is the effect of disaffiliation?

ANS: The following are the effects of disaffiliation:
1. As to Union Dues - The federation will no longer receive the dues from the
employer because without the said affiliation, the employer has no link to the
mother union; and
2. As to existing CBA - The CBA continues to bind the members of the new or
disaffiliated and independent union up to the CBA's expiration date (2
AZUCENA, at 208- 209).
Q: What is Equity of the Incumbent Rule?

ANS: Article 249 of the Labor Code provides that all existing federations and national
unions which meet the qualifications of a legitimate labor organization and none of the
grounds for cancellation shall continue to maintain their existing affiliates regardless of
the nature of the industry and the location of the affiliates.
Q: What is Substitutionary Doctrine?

ANS: The Substitutionary Doctrine only provides that the employees cannot revoke the
validly executed collective bargaining contract with their employer by the simple expedient
of changing their bargaining agent. And ili::i'..in the light of this that the phrase "said new
agent would have to respect said con!l'l!I "*ust be understood. It only means that the
employees, thru their new bargaining age nnot renege on their collective bargaining
contract, except of course to negotiat• management for the shortening thereof
(Benguet Consolidated v. BC/ Employet!f~ Unio'lft4;,24711, April 30, 1968).
>,,'._~,):+:ii;;z:
Rights of legitimate la9Jllf0rganizqtifps
Q: What are the rights of labor organlzat,ns? (USER-F:f>I!) \
ANS: The rights of labororgamzations arelfie following:/ •• ;
1. To Undertake actititfes for the ·.· efit of the o'rganizatlQn and its members;
2. To §ue•and be sued; . • t.
3. To be the5.i<cfusive representa
4. To Represent unionmembers;
5. To be furnished by employers
6. To Qwn properties; and
7. ,Exemption from taxes (LABQR
Rights and Conditions otM,elflbership in legitimate labor Organizations

Q: What are the rights of members in a labor organization? (DIMP)
ANS: The rights of members in a labor organization, as summarized, are as follows:
1. Qeliberative and decision-making right - the right to participate in the
deliberations on major policy questions and decide by secret ballot (LABOR
CODE, Art. 250(d));
2. Right to !nformation - the right to be informed about:
a. The organization's constitution and by-laws; and
b. The collective bargaining agreement and labor laws (LABOR CODE, Art.
250(p));
3. Rights over ,Money matters - the rights of the members:
a. Against imposition of arbitrary or excessive initiation fees (LABOR
CODE, Art. 250(a));
b. Against unauthorized collection of contributions or unauthorized
disbursements (LABOR CODE. Art. 250(g));
c. To require adequate records of income and expenses, which shall form
part of the financial records of the organization (LABOR CODE, Art.
250(j));
d. To access financial records (LABOR CODE, Art. 250(m));

lOMoARcPSD|11893536
SEDAN RED BOOK

e. To vote on officer's compensation (LABOR CODE, Art. 250(k));

f. To vote on special assessment (LABOR CODE, Art. 250(n)); and
g. To be deducted a special assessment only with the member's written
authorization (LABOR CODE, Art. 150(0)); and
4. f.olitical right~ the right to vote and be voted for, subject to lawful provisions
on qualifications and disqualifications (LABOR CODE, Art. 250).
Q: When is an employee entitled to the right to join labor organizations?

ANS: Any employee, whether employed for a definite period or not, beginning on the first
day of his/her service, shall be eligible for membership in any labor organization (LABOR
CODE, Art. 292(c)).
Q: What is the nature of the relationship between the union and its members?
ANS: The relationship between the union and its members is that of principal and
agent, the former being the agent while the latter, the principal. Their relationship is
fiduciary in character, and arises out of two factors: one is the degree of dependence of
the individual employee on the union organization; and the other, a corollary of the first,
is the comprehensive power vested in the union with respect to the individual. The union
may be considered but the agent of its m.~rpbers for the purpose of securing for them fair
and just wages and good working conditions. As• agent, the union is subject to the
obligation of giving the members ~s its princ\pals all information relevant to union and
labor matters entrusted to· it (Heirs otTeodofo M. CriJz v. Court of Industrial Relations,
G.R. No. L-23331-32, December 27, 1969). ..
Check-OH, Assessments, Union Dues, and Agimcy,Fees

Q: What is a check-off?
ANS: A check-off is a method of deducting by the employer from the employee's pay at
prescribed periods Jhe amounts ·due to the union for fees, fines; or assessments (A. L.
Ammen Transportation v. Bicol Transportation Employees fritµfµa(Association, G.R. No.
L-4941, July 25, 1952)'. It essures continuous funding for the labor organization (Gabriel
v. Secretary of Labor, G.R. No. 115949, March 16, 2000).
Q: What is the requirement with regard to check-off?

ANS: Special assessment, att9meys fe!'%registration le.esor any other extraordinary
fees may be checked off from ahy amount due on employee provided that an individual
written authorization is duly signed qythe employee specifically stating the:
1. Beneficiary of the deduction;·
2. Amount; and
3. Purpose (LABOR CODE, Art. 250(0)).
Note: The individual written authorization duly signed by the employee is an additional
requirement for levy of special assessments or extraordinary fees in order that special
assessment may be validly checked-off (Marino, Jr. v. Gamilla, G.R. No. 149763, July 7,
2009).
Q: What are the exceptions to the rule of individual written authorization as a

requirement for check-off?
ANS: The following are the exceptions to the rule of individual written authorization as
a requirement for check-off:
1. For mandatory activities provided under the Labor Code;
2. When non-members of the union avail of the benefits of the CBA (LABOR
CODE, Art. 259); and
3. Check-off for union service fees authorized by law (Radio Communications of
the Philippines, Inc., v. Secretary of Labor, G.R. No. 77959, January 9, 1989).

lOMoARcPSD|11893536
Q: What are the requirements for levy of special assessments or extraordinary

fees? (RAGS)
ANS: The following are the requirements for levy of special assessments or
extraordinary fees:
1. There must be a written Resolution
2. The resolution must have been Approved by a majority of all the members;
3. The approval must be at a general membership meeting duly called for that
purpose; and
4. The .§ecretary of the organization shall record the minutes of the meeting,
which shall be attested to by the President. The minutes include:
a. The list of all members present;
b. The vote case; and
c. The purpose of the assessment or fees (LABOR CODE, Art. 250(n)).
Q: What are union dues?

ANS: Union dues are the regular monthly contributions paid by the members to the union
in exchange for the benefits given to them by the CBA and to finance the activities of the
union in representing them (2 AZUCENA, supra at 237).
Q: What are agency fees?

ANS: Agency fees are those reasonable f~ assessed to employees of an appropriate
bargaining unit who are not members of tl!~frecognized collective bargaining agent, if
such non-union members accept the benefdsUfl,Qerthe col)e~tive bargaining agreement
(LABOR CODE, Art. 259(e)). ' " '• · ,i ·
Q: What are the requisites for the imposition of agency lee$? (PNB)
ANS: The requisites for the imposition of agency fees arefhe following:
1. The employee is fart of the bargaining unit;
2. He is .!'iota member of union; and
3. He partook of the §enefits of thE:i tBA (LABOR
., ...
CQDE;,,Art. 259(e)) .
........ ...... ., ,, :·, ,._··:·'.~·i" ·,· '· ..
Q: When does the right of the Sole and 'Exclusive b~tffhlng Agent (SEBA) to
demand agency fees accrue? ·
ANS: The right of the SEBA to demand fr~~ '111Ployer the check-off of agency fees
accrues from the moment the non-SEBA melllffiera~p!s,and receives the benefits from
the CBA. This is the operative fact that would trigger such liability on the part of such non-
SEBA member (0.0. No. 40-03, Rufe XXV, Sec. 4).
Q: Is an individual written authorization necessary for the collection of agency fees

from a non-union employee?
ANS: No, it is not necessary. The employee's acceptance of benefits resulting from a
collective bargaining agreement justifies the deduction of agency fees from his pay and
the union's entitlement thereto. In this aspect, the legal basis of the union's right to agency
fees is quasi-contractual, deriving from the established principle that non-union
employees may not unjustly enrich themselves by benefiting from employment conditions
negotiated by the bargaining union (Holy Cross of Davao College, Inc., v. Holy Cross of
Davao College Union KAMAPI, G.R. No. 110007, October 18, 1996).
Q: Can the company continue to make deductions after separation or disaffiliation

of the employee from the union?
ANS: No. The employees' check-off authorization, even if declared irrevocable, is good
only as long as they remain members of the union concerned because as such members,
they were obliged to pay the corresponding dues and assessments to their union.
However, the moment that they separated from and left the union and joined another labor
organization, then they were no longer obliged to pay the said dues and assessments;

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• Volume 1 · Series of 2022
naturally, there would be no longer any reason or occasion for the company to continue
making deductions (Standard Chartered Bank Employees Union (NUBE) v. Confesor,
G.R. No. 114974, June 16, 2004).
Union Security Clause

Q: What is a Union Security clause?
ANS: It is a stipulation in the CBA requiring membership in the contracting union as a
condition for employment or retention of employment in the company (2 AZUCENA, supra
at 345).
Q: What are the different kinds of union security arrangements? (CUP-A-BEM 2)

ANS: The different kinds of union security arrangements are the following:
1. _g_losed-Shop Agreement - an agreement whereby an employer binds
himself to hire only members of the contracting union, who must continue to
remain members in good standing to keep their jobs (2 AZUCENA, supra at
347);
2. !,!nion Shop Agreement - Non-members may be hired but to retain
employment, they must become union members after a certain period. The
requirement applies to present aridfuture employees (2 AZUCENA, supra at
346); ·-.. . ..
3. freferential Shop Agreement - .cJn agreern,ent whereby the employer
merely agrees to give preference to the members of the bargaining union in
hiring, promotion or filing vacancies and retention in case of lay-off. The
employer has th~ right to hire from the open market if union members are not
availabl!;} (ALCANTARA, Reviewer in Labor and Social Legislation, (2012), p.
472 {hereinafter ALCANTARA]);
4. Agency Shop Agreement or Maintenance , of Heasury Shop - an
agreer11entwhereby employees must either join tJ,e unjon or pay to the union
as exclusive bargaining agent a sum equal to that paid by the members (2
AZUCENA; supra at 346);
5. .!;!_argaintngfor ..Members Only - provides tttat the, union is recognized as
the bargaining agent only for its own members (2 AZUCENA, supra at 346);
6. £XClusive ~argaining Shop - provides.that the_..union is recognized as the
exclusive bar~inlng agentfqr aJ[ employees in the bargaining unit, whether
union members orndt (2 AZUCEiNA,,supra at"346);
7. Maintenance of Membership Shop Agreement - No employee is
compelled to join the union, but all present or future members must, as a
condition of employment remain in good standing in the union (2 AZUCENA,
supra at 346);
8. Modified Union Shop - provides that the employees who are not union
members at the time of signing the contract need not join the union, but all
the workers hired thereafter must join (2 AZUCENA, supra at 346);
C. BARGAININGREPRESENTATIVE
Q: Who may collectively bargain with the employer?
ANS: The labor organization designated or selected by the majority of the employees
in an appropriate bargaining unit shall be the exclusive representative of the employees
in such unit for the purpose of collective bargaining (LABOR CODE, Art. 267).
Q: What is an exclusive ~argaining representative?

ANS: Exclusive bargaining representative means any legitimate labor union duly
recognized or certified as the sole and exclusive bargaining representative or agent of
all the employees in a bargaining unit. The bargaining agent is the union as an entity,

lOMoARcPSD|11893536
not the union officers (D. 0. No. 40-03, Rule /, Sec. 1(t)).
Q: What is the exception to the exclusiveness of the representative role of the

sole and exclusive bargaining representative?
ANS: An individual employee or group of employees shall have the right at any time to
present grievance directly to their employers, regardless of whether they are members
or non-members of the SEBA, to present their grievances to their employer, even without
the intervention of the exclusive bargaining representative (LABOR CODE, Arl. 267).
Modes to Acquire Status as Sole and Exclusive Bargaining Agent {SEBA)

Q: What are the methods to determine the bargaining representative? (SCC)
ANS: The methods to determine the bargaining representative are the following:
1. Request for §EBA Certification (0.0. No. 40-03, Rule VII);
2. ~ertification election (0.0. No. 40-03, Rule I, Sec. 1(h)); and
3. ~onsent election (0.0. No. 9, as amended by 0.0. No. 40-03, Rule/).
Note: Run-off election (0.0. No. 40-03, Rule I, Sec. 1(ss)) and Re-run election (0.0.
No. 40-/-15, Rule I, Sec. 1(tt)) may occur during Certification or Consent election.
Q: What is SEBA Certification?

ANS: It is a process whereby the DOLE reC99nizes a labor organization as the exclusive
bargaining representative of the employ~s in the appropriate bargaining unit (2
AZUCENA supra at 475). '
Q: Where is the request for SEBA Certification filed?

ANS: Request for SEBA Certification is filed in the DOLE Regional Office which issued
its certificate of registration or certificate ofqreation of chartered local, as the case may
be (0.0. No. 40-1-15, Rule VII, Sec. 1). .'
Q: When shall the request be referred by the DOLE Regional Director for
certification election?
ANS: The DOLE Regional Director shall refer the request to the Election Officer for the
conduct of certification election when:
1. In an unorganized establish~tl\t With only 1 legitimate organization -
when the requesting union or lddal:fflifsto complete the requirements for
SEBA certification during the validation conference called by the Regional
Director (0.0. Na. 40-1-15, Rule VII, Sec. 4); and
2. In an unorganized establishment with more than 1 legitimate
organization - when the DOLE Regional Director finds that the unorganized
establishment has more than 1 legitimate labor organization (0.0. No.40-1-
15, Rule VII, Sec. 5).
Q: What is the effect of issuance of certification as SEBA by the Regional Director?

ANS: Upon the issuance of the certification as SEBA, the certified union or local shall
enjoy all the rights and privileges of an exclusive bargaining agent of all the employees
in the covered bargaining unit. The certification shall also bar the filing of a petition for
certification election by any labor organization for a period of 1 year from date of its
issuance (0.0. No. 40-/-15, Rule I, Sec. 4.2).
Q: What is a certification election?

ANS: Certification election refers to the process of determining through secret ballot
the sole and exclusive representative of the employees in an appropriate bargaining unit
for purposes of collective bargaining or negotiation (0.0. No, 40-03, Rule I, Sec. 1(h)).
It is the most democratic method of determining the employee's choice of the bargaining
representative whenever there is doubt whether a particular union represents the majority

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of the rank-and-file employees (Philippine Airlines Employee's Association v. Calleja,

G.R. No. 76673, June 22, 1988).
Q: When is certification election mandatory on the part of the Bureau of Labor

Relations?
ANS: The certification election is mandatory on the part of the BLR in the following
instances:
1. Upon the filing of a verified petition by a legitimate labor organization including
a national union or federation which has already issued a charter certificate
to its local chapter participating in the certification election or localchapter
which has been issued a charter certificate by the national union or federation
(LABOR CODE, Art. 269); or
2. Upon the filing of a petition by the employer when such employer is requested
by the employees to bargain collectively where there is no existing certified
collective bargaining agent (LABOR CODE, Art. 270).
Q: What are the requisites to be met for the conduct of a certification election in
organized establishments or one where there is already a union that has been
duly recognized or certified as bargaining representative? (60-VC)
ANS: The following are the requisites to be mefforthe conduct of a certification election
in organized establishments: .. . .. . . .._
1. That the Petition for Certificallon Election (PC:E) questioning the majority
status of the incumbent bargaining agent 'ls filed before the DOLE within the
60-day freedom period; · ·
2. That such PCE isVerified; and
3. That the PCE/s s-;;pported by the wriUen'._~onsentofat least 25% of all the
employees ih the bargaining unit (Trade Unions qfthe'Philippines and Allied
Services Wofld Federation of Trade Unions v. L~fl~es(na, G.R. No. 102350,
June 30, 1994). ·
Note: Where there is· no,GBA, the petition may be filed anytime except within 12 months
of a previous electio1;1,if any (2 AZUCENA, The -Labor Code with Comments and Cases
(2016), p. 479 {hereinafter 2 AZUCENA]),
Q: What are the requirements (or the conduct of a·'certification election in

unorganized establishments o~ one Where no_union bas yet been duly recognized
or certified as bargaining representativ•!?
ANS: In any establishment where there -is n6 certified bargaining agent, hence,
unorganized, the certification election shall automatically be conducted by the Med-
Arbiter upon the filing of a petition by any legitimate labor organization (LABOR CODE,
Art. 269).
Q: What are the grounds for the dismissal of a petition for certification election?
(DANCES-U-12)
ANS: The Med-Arbiter may dismiss the petition for certification election on any of the
following grounds:
1. Negotiation or Qeadlock - Where a duly certified union has commenced and
sustained negotiations with employer in accordance with Art. 260 of the Labor
Code within 1-year period referred to in Section 14 of the IRR or where there
exists a bargaining deadlock which has been submitted to conciliation or
arbitration or has become the subject of a valid notice of strike or lockout
where an incumbent or certified bargaining agent is a party;
2. Absence of Employment Relationship - Absence of ER-EE relationship
between all members of the petitioning union and the establishment where
the proposed bargaining unit is sought to be represented;

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3. Non-appearance - Non-appearance of the petitioner for 2 consecutive

scheduled conferences before the Med-Arbiter despite notice;
4. No ~harter - Failure of a local/chapter or national union/federation to submit
a duly issued charter certificate upon the filing of the petition for certification
election;
5. ~,xisting CBA - The petition was filed before or after the freedom period of a
duly registered collective bargaining agreement;
6. Lack of .§upport - In case of an organized establishment, failure to submit the
25% support requirement for the filing of the petition for certification election;
7. !,!nregistered Union - The petitioner is not listed in the Department's registry
of legitimate labor unions or that its legal personality has been revoked or
cancelled with finality; or
8. 12-Month Bar Rule - The petition was filed within 1 year from entry of
voluntary recognition or a valid certification, consent or run-off election and
no appeal on the results of the certification, consent, or run-off election is
pending (0.0. No. 40-03, Rule VIII, Sec. 14).
Q: Who are qualified to vote in a certification election?

ANS: All employees who are members of the appropriate bargaining unit 3 months prior
to the filing of the petition/request are eligible to vote. Also considered qualified voter is
an employee who has been dismissed from 1work but has contested the legality of the
dismissal in a forum of appropriate jutisdictiofiat the time of the issuance of the order for
the conduct of a certification election, unlesshlg/jl~rJ!ismissalwas declared valid in a final
judgment at the time of the conduct of the certification eleqtion (0. 0. 40-03, Rule IX, Sec.
6, renumbered by 0.0 40-1-15, Sec. 10).
Q: Who shall be considered as the SEBA after the coridttct of the certification
election?
ANS: The union which obtained a majority ofthe valid vqtes cast shall be certified as the
SEBA of all employees within 5 days from \he day o(eleqtJon, provjded no protest is
recorded in the minutes of the election (IRRtof theLABOR GPDE;c'asamended by D. 0.
No. 40-1-15, Book V, Rule IX, Sec. 6). ·...
Note: When the winning choice is a local chapter without a certificate of creation of
chartered local, such chartered local shall submitRsQOLE-issued certificate of creation
within 5 days from conclusion of election (f~R ottABORC0DE, as amended by 0.0.
No. 40-1-15, Book V, Rule IX, Sec. 6.).
Q: What is consent election?

ANS: An election voluntarily agreed upon by the parties with or without the intervention
of the DOLE, to determine the issue of majority representation of all the workers in the
appropriate collective bargaining unit (0.0. No. 9, Rule I as amended by 0.0. No. 40- 03;
Algire v. De Mesa, G.R. No. 97622, October 19, 1994).
Q: Differentiate consent election from certification election.

ANS: The differences between consent and certification election are as follows:
Certification Election Consent Election

To determine the SEBA of all the employees in an appropriate
bargaining unit for the purpose of collective bargaining.

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BEDAN RlD BOOK

Certification Election Consent Election
Asto A certification election is A consent election is voluntarily agreed

Intervention ordered by the DOLE upon by the parties, with or without the
of DOLE (D. 0. 40-03, Book V, intervention by the Department of Labor
Rule/, Sec. 1(i)). and Employment (0.0. 40-03, Book V,
Rule I, Sec. 1(i)).
If the consent election is done with the

intervention of the DOLE such as where
a petition for certification election had
been filed, and upon the intercession of
the Med-Arbiter, the parties agree to
hold a consent election or where no
petition for certification election was filed
but the parties themselves agreed to
hold a consent election with the
intercession of the Regional Office the
results thereof shall constitute a bar to
· .the,bglding of a certification election for
'1year fro.rnthe holding of such consent
.e)ediori (D.Q. 40-03, Book V, Rule VIII,
Sec. 2,5). ·
Q: What are the different.rules which prevent the holdlf!g·of a certification election?
ANS: The rules which prevent the holding of a certificatiori,el~tion are:
1. Contraot ban:ule (a. 0. No. 40~03, Rule XVII, SecJ);
2. Deadlock bar rule (National Congress of Unions in the Sugar Industry of the
PHL-T(JOP v'. Trajario, G.R. No. L-6748q, April 1992); ta:
3. Negotiation bar rule (~:O. No. 40°F-03; -;RuleVllf; Sec. 14(e));
4. Certificatioh year rute (P.O. No. 40-F~03; Rule I/Ill, Sec. 14(d)); and
5. Statutory bar Rule (Sec. 14 (d); Rule VIII, Book V ofthe Rules Implementing
the Labor Code).
Q: Define contract bar rute. . , _ _

ANS: The contract bar rule· Ptbvides thaJ while a
valid and registered CBA of a fixed
duration is subsisting, the BLR is not1:1llowedto hold an election contesting the majority
status of the incumbent union during the 5~year term of the CBA except during the 60-day
period immediately prior to the expiration of the CBA (D. 0. No. 40-03, Rule XVII, Sec. 7).
Q: Define deadlock bar rule.

ANS: The deadlock bar rule provides that a petition for certification election 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. The principal
purpose is to ensure stability in the relationship of the workers and the management
(National Congress of Unions in the Sugar Industry of the PHL-TUCP v. Trajano, G.R.
No. L-67485, April 10, 1992).
Q: When does deadlock arise?

ANS: A deadlock arises when there is an impasse, which presupposes reasonable effort
at good faith bargaining which, despite noble intentions, did not conclude in an agreement
between the parties (Tabangao Shell Refineries Association v. Pilipinas Shell, G.R. No.
170007, April 7, 2014).
Q: Define negotiation bar rule.

ANS: Negotiation bar rule provides that a petition for certification election cannot be

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BEDAN RED BOOK

entertained if, before the filing of the petition for certification election, the duly recognized
or certified union has commenced and sustained negotiations with the employer within 1
year from the date of a valid certification, consent, run-off, or re-run elections, or from the
date of issuance of SEBA Certification by the DOLE (0.0. No. 40-F-03, Rule VIII, Sec.
14(e)).
Q: Define certification year rule.

ANS: Certification year rule provides that no petition for certification election may be filed
within 1 year from the date of a valid certification, consent, or run-off election or from the
date of entry of a voluntary recognition of the union by the employer (0.0. No. 40-F-03,
Rule VIII, Sec. 14(d)).
Note: Voluntary recognition has already been replaced by Request for SEBA Certification
(0.0. No. 40-1-15, Sec.3).
Q: Define statutory bar rule.

ANS: The Statutory Bar rule bars the filing of a PCE within a period of 1 year from the
date of a valid conduct of a certification, consent, run-off or re-run election where no
appeal on the results thereof was made (C/-j,4.NREVIEWER, supra at 427).
·~t
Note: The 1-year period for "statutory bar'\pegins to run on the actual date of the prior
election, not from the date the SEBA was~Jlljed, which is the reckoning date for another
rule - the "certification year bar." If prior el~n results in a vote for "No Union," the 1-
year period runs from the date of that electit>!H'rm~ REVl1jl(!IER, supra at 428) .
'i 'j 'iii~>,,::.
.., :v: ·'")}
Q: When is there a failure of election? .. .

ANS: There is failure of election where 11?enumber of vqt~s cast in a certification or
consent election is less than the majority di the number of eligible votes and there are
no material challengeq votes, declared bY;the Election. Office( in the minutes of the
election proceedings order (0.0. No. 40-03,c~ule IX, Sec;;'16)2
i-( f ... .:
Note: Failure of election shall not bar the fil!Jtl of a ediate of another
certification or consent election within 6 montns from t laration of failure of
election (0. 0. No. 40-03, Rule IX, Sec. 17). Yr
Q: What is the effect of failure of electiort?}i::'; .
ANS: It shall not bar the filing of a mtitf6n:fdrf:tf'lk immediate holding of another
certification or consent election within 6 months from the date of declaration of failure of
election (/RR of the LABOR CODE, Book V, Rufe IX, Sec. 18, as amended by 0.0. No.
40-03).
Q: What is Double Majority Rule?

ANS: The double majority rule provides that for there to be a valid election, the following
must concur:
1. Majority of the bargaining unit must have voted; and
2. The winning union must have garnered majority of the valid votes cast
(National Union of Workers in Hotels, Restaurants, and Allied Industries -
Manila Pavilion Hotel Chapter v. Secretary of Labor, G.R. No. 181531, July
31, 2009).
Q: Who shall proclaim the results of the election?

ANS: The Med-Arbiter shall, within 24 hours from receipt of minutes and results of
election from the Election Officer, issue an order proclaiming the results of the election
and certifying the union which obtained a majority of the valid votes cast as the SEBA in
the subject bargaining unit, under any of the following conditions:
1. No protest was filed or, even if one is filed, the same was not perfected within
the five-day period for perfection of the protest; or

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BEDAN RED BOOK

2. No challenge or eligibility issue was raised or, even if one was raised, the
resolution of the same will not materially change the results of the elections
(0.0. No. 40-03, Rule IX, Sec. 19).
Q: What is the effect of "No Union" winning the election?

ANS: Where the majority of the valid votes cast results in "No Union" obtaining the
majority, the Med-Arbiter shall declare such fact in the order proclaiming the results of the
election (0.0. No. 40-03, Rule IX, Sec. 20).
If the elections disclose that the majority of the workers do not wish to be represented by
any union, no union may be certified, and the minority workers who wish to have a union
represent them in collective bargaining may not impose their will upon the majority upon
the plea that they are being denied their right to self-organization and collective
bargaining. The minority employees can do nothing except to wait for another suitable
occasion to petition for certification election (Reyes v. Trajano, G.R. No. 84433, June 2,
1992).
Q: Differentiate re-run from run-off election.

ANS: The differences between re-run and. run-off election are as follows:
Re-run Election Run-off Election
Asto It is conducted to bre'ak a tie It takes place between 2 unions
when between contending unions: which . received the 2 highest
Conducted iricludll)g between "no union" number of votes in a certification
and one of the unions, or election with 3 or more choices,
after a failure of election has where not one of the 2 unions
,been declared by the obtained the majority of the valid
officer and/or votes Ci.'ll>t
. (f._ABOR CODE, Art.
affirmed by the mediator- ·268).
,arb~er (D.0. No: 40-1-15,
f!?.uieJ, Sec. 1(tt)).
Asto There must be a tie between The total votes of the contending
Voting contending unions (D.O. No. unions subject of the run-off
Requirement 40+ 15, Rule I, Sec. 1(tt)). election must be at least 50% of
the total votes cast (D.O. No. 40-
03, Rule X, Sec. 1).
As to The contending iJhidhS tnay "No union" shall not be a choice
Participation of include "no union" (0. 0. No. in the run-off election (D. 0. No.
"No-Union" 40-1-15, Rule I, Sec. 1(tt)). 40- 03, Rule X, Sec. 1).
Choice
Q: When should a run-off election be held?

ANS: The Election Officer should motu proprio conduct a run-off election, upon
presence of all requirements and no objections or challenges thereto, within 10 days from
the close of the election proceeding between the labor unions receiving the 2 highest
number of votes (0.0. No. 40-03, Rule X, Sec.1).
Q: What are the requirements for a proper conduct of a run-off election? (EN-
VoUCH)
ANS: The requirements for a proper conduct of a run-off election are the following:
1. Valid £lection took place because majority of the collective bargaining unit
members voted (first majority);
2. _!iot one of the choices obtained the majority (50%+1) (second majority)
of the valid votes cast;

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BEDAN RED BOOK

3. The total Votes for the unions are at least 50% of the votes cast;
4. There is no J,lnresolved challenged votes or election protest which if sustained
can materially alter the results;
5. The said election presented at least 3 _g_hoices(e.g., union one, union two,
and no union); and
6. The 2 unions which garnered the .!::!.ighestnumber of votes shall participate in
the election (0.0. No. 40-03, Rule X, Sec. 1).
Note: "No union" shall not be a choice in the run-off election (0. 0. No. 40- 03, Rule X,
Sec. 1).
Q: When should a re-run election be held?

ANS: Re-run election shall be held within 10 days from posting of the notice by the
Election Officer who caused the same after scheduling the date of the re-run elections
after motion for immediate holding of another certification election, filed within 6 months
from date of declaration of election proceedings (0.0. No. 40-03, Rule IX.Secs. 17 and
18).
Q: In all methods of determining the bargaining representative, what is the role of

the employer in the proceedings? ·
ANS: The employer shall not be considf:I~ party thereto with a concomitant right to
oppose a petition for certification el~~' The employer's participation in such
proceedings shall be limited to: . ,,'+i
1. Being notified or informed ofpe~~,fr;yp ~~e; and
2. Submitting the list of employeej$ during p~on conference should the
Med-Arbiter act favorably on thejpetition (LABOF?'¢(?DE, Art. 271).
Note: Following the same rule, if the empl~r believes th~ th~'_unionhas inappropriate
membership because it includes rank-and-fl)e with man&gerial/~pervisory employees,
the employer's recourse is notto oppose th~t,CE but to J!le a'sep~rate petition to cancel
D. COJJ.ECtlVE;SARGAINlf,/9
'~(,
the union's registration (2 AZUCENA, supra~ 503). ·
Q: What is the duty to bargain collectively?

ANS: When there is no CBA, the duty to bargain collectively means the performance of
a mutual obligation between employer and the employees' majority union to meet and
convene for the purpose of:
1. Negotiating an agreement with respect to wages, hours of work and all other
terms and conditions of employment including proposals for adjusting any
grievances or questions arising under such agreement; and
2. Executing a contract incorporating such agreements if requested by either
party (LABOR CODE, Art. 263).
When there is a CBA, ii is the obligation of the parties not to terminate or modify the CBA
during its lifetime. However, either party can serve a written notice to terminate or modify
the agreement at least 60 days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and effect the terms and
conditions of the existing agreement during the 60-day period and/or until a new
agreement is reached by the parties (LABOR CODE, Art. 264).
Q: What are the jurisdictional preconditions in collective bargaining? (SPED)

ANS: The mechanics of collective bargaining is set in motion only when the following
jurisdictional preconditions are present, namely:

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BEDAN RED BOOK

1. Possession of the §.tatus of majority representation of the employees'

representative in accordance with any of the means of selection or
designation provided for by the Labor Code;
2. froof of majority representation;
3. 5.mployee-employer relationship - Under the law, the duty to bargain
collectively arises only between the "employer" and its "employees". Where
neither party is an "employer" nor an "employee" of the other, no such duty
would exist (Allied Free Workers' Union v. Compania Maritima, G.R. Nos. L-
22951 and L-22952, January 31, 1967); and
4. Qemand to bargain under Art. 261(a) of the Labor Code (Kiok Loy v. NLRC,
G.R. No. L-54334, January 22, 1986).
Note: While it is a mutual obligation of the parties to bargain, the employer, however, is
not under any legal duty to initiate contract negotiation (Allied Free Workers' Union v.
Compania Maritima, G.R. Nos. L-22951 and L-22952, January 31, 1967).
Q: What is the Lock, Stock and Barrel Rule?

ANS: Under this rule, the CBA proposed by the union may be imposed lock, stock and
barrel on employer who refused to negotiate a CBA. The employer which violates the duty
to bargain collectively, loses its staJµtoty'f'ignt to qegotiate or renegotiate the terms and
conditions of the draft CBA prqposed by the uniGm Hence, the proposals of the union may
be adopted as the CBA (Kioli:~oy v:·NtR'Q;:~;f?>No. J1-54iJ~4,January 22, 1986).
Q: What are the kind$•6fcgl~ectj~e-bartfalhtrtg? . • .··..

ANS: The kinds of cpl1'ictiv1lbafgaining are the follo\vin'g; . ,
1. Single E1nterpr,i§ebargaining involving a
Ctil,!\ i;ie~otiation between one
certified &eA and one employef - any ctrtified , SEBA may demand
negoti~Jolls _with the employer regarding th' 'fer~s and conditions of
emplo'ffn!=lqt~f employees in the bargairyng unit it·r6J)resents (0.0. No. 40-
03, Ruf~ XVl,jSec.3t,,alJQ _ _. . . .. ,
2. Multi-ertiplfY8{ ba{gaihing invdlving a CBAnegbtration between and among
several ;eertifi~ SE~As..and• em91Qy~rs - Jegitimate labor unions and
employers may llgree in wiltingto-come together for,,!lle purpose of collective
bargaining; provided:
a. Only legitim,¥f~por uriionse. ~ich::"'i:lr,i,' incumbent SEBAs may
participate~cr·negotiale tn•rrfi.Jl~i:ei'nploy.etbargaining;
b. Only employers. ~th cC,IJrtt~rpa~)egitimate labor unions which are
incumbent SEBAs may .parti(Uf}ateand negotiate; and
c. Only those legitimate labor unions that pertain to employer units which
consent to multi-employer bargaining (0.0. No. 40-03, Rule XVI, Sec.
5).
Note: Multiple-employer bargaining is only voluntary.
Q: How should the duty to bargain collectively be performed in the absence of

CBA?
ANS: The duty to bargain collectively, when there has yet been no CBA in the collective
bargaining unit where the SEBA seeks to operate, should be complied with in the following
order:
1. In accordance with the voluntary agreement providing for more expeditious
manner of collective bargaining; and
2. In its absence, in accordance with the provisions of the Labor Code, referring
to Art. 261 thereof (LABOR CODE, Art. 262).
Q: What are the 4 forms of ULP in Bargaining? (BE-GF)

ANS: The 4 forms of ULP in Bargaining are;

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1. §ad faith in bargaining (boulwarism), including failure or refusal to execute

the CBA, if requested; and
2. gvading the mandatory subjects of bargaining;
3. ~ross violation of the CBA; and
4. failure or refusal to meet and convene (2 AZUCENA, supra at 386-387).
Note: Violations of the collective bargaining agreement, except those which are
gross in
character, shall no longer be treated as an unfair labor practice but as a grievance
under
the CBA (LABOR CODE, Art. 274).
Collective Bargaining Agreement {CSA) and Mandatory Provisions

Q: What is a Collective Bargaining Agreement (CBA)?
ANS: Collective Bargaining Agreement (CBA) refers to the negotiated contract
between
a legitimate labor organization and the employer concerning wages, hours of work,
and
all other terms and conditions of employment in a bargaining unit, including mandatory
provisions for grievances and arbitration machineries (Omnibus Rules Implement
ing the
Labor Code, Book V, Rule I, Sec. 1(jj)).
Q: What are the mandatory subjects ofCfA?

ANS: The mandatory subjects of the C · re those that the parties are compulsorily
required to bargain if either party has,· proposal thereon. A mandatory subject of
CBA is that which must materially·· o~ .$ antly affect the terms or conditions of
employment, including what it has qlread · has announced it intends
to grant (2 AZUCENA, supra a! ,397). · ····
Q: What are the mandatQJy Provisions· · he CBA? It

lt
ANS: The following are th¢11'lfl{ldatory pro ions of the CB~:
r -
1. Wages;
2. Hours ofwork;
3. Vacatlo11sand Holigays;.
4. Bonus~; ·
5. Pensions and r~Jlrer'!lent pll!lns;
6. Seniority; •··•·· ·•
7. Transfer;
8. Lay-offs;
9. Employee Workloads;
10. Work rules and reeµlaiions;
11. Rent of company houses (2 AZUCENA, supra at 398-399);
12. Grievance machinery;
13. Voluntary arbitration;
14. No strike-no lockout clause;
15. Labor management council (CHAN REVIEWER, supra at 471); and
16. Provision against Drug Use in Workplace (R.A. No. 9165, Sec. 49).
Note: Employer's duty to bargain is limited to mandatory bargaining subjects; as
to other
matters, he is free to bargain or not to bargain (2 AZUCENA, supra at 397).
Signing, Posting, Registration

Q: What is the procedure for the registration of CBA?
ANS: The steps to follow for the registration of CBA are the following:
1. Submission of copies of the CBA to the BLR or the regional offices of DOLE
within 30 days from execution, accompanied by the following:
a. Verified proof of posting in 2 conspicuous places in the place of work;
and

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1 • Series of 2022
Volume
b. Verified proof of ratification by the majority of all the workers in the

bargaining unit;
2. Action upon the application for registration within 5 calendar days from receipt
thereof;
3. The regional office shall furnish the BLR with a copy of the CBA within 5 days
from its submission;
4. The BLR or regional office shall assess the employer for every CBA, a
registration fee of not less than P1 ,000.00 or any amount deemed appropriate
by the Secretary of Labor;
5. Issuance of Certificate of Registration (/RR of the LABOR CODE, Book V,
Rule XVII, Sec. 1-4, as amended by 0.0. No. 40-03).
Q: Is the registration of the CBA a requisite for its validity?

ANS: No, registration of the CBA is not a requisite for its validity. The certification of the
CBA by the BLR is not required to put a stamp of validity to such contract. Once it is duly
entered into and signed by the parties, a CBA becomes effective as between the parties
regardless of whether or not the same has been certified by the SLR (Liberty Flour Mills
Employees v. Liberty Flour Mills, Inc., G.R. Nos. 58768-70, December 29, 1989).
Term of CSA, Freedom Perigd.

Q: What is freedom period?.. ..
ANS: Freedom period is the _la~t60 days of the 5ih year ofthe.CSA (2 AZUCENA, supra
at 479). A petition que$tioning the-majority status of the incumbent bargaining agent or a
petition for certification election may be entertained and'{:l certification election may be
conducted within the 60-day period immediately prior to the ~xp/r<;1tlonof the CBA (LABOR
CODE, Art. 265). . . .
Q: What are the differences between 60-day notice p~riod and 60-day freedom
period?
ANS: The differences between 60-day notice period and 60-day freedom period are the
following:
60-day Notice Period 60-day Freedom Period
Asto The SQ-day petiod prior to The 60-day period immediately
Definition the expiration date of the before the date of expiry of the five-
CBA where a party serves.a Year term of the CBA, where a
written notice to terminate or petition questioning the majority
modify the CSA (LABOR status of the incumbent bargaining
CODE, Art. 264). agent may be entertained and a
certification election may be
conducted (LABOR CODE, Art.
265).
As to the An economic event A political event between rival

Nature unions and voters
As to the The employer is a party. The employer is not a party.

Participation
of the
Employer
Note: The renegotiation period of the CBA economic provisions occurs towards the end th
of the 2 nd or 3rd year of the CBA. The notice and freedom periods may coincide on the 5
year of the CBA (2 AZUCENA, supra at 493).

lOMoARcPSD|11893536
Q: When shall the CBA become effective?

ANS: If the CSA is the first ever in the bargaining unit, the effectivity date is whatever
date the parties agree on. If the CSA is a new CSA to replace the expired one and the
new CSA is concluded within 6 months from the expiry date of the old one, then the new
CSA starts to take effect on the date following such expiry date (LABOR CODE, Art. 265).
If the agreement was entered into outside the 6-month period, then the parties shall agree
on the duration of the retroactivity thereof (Union of Filipro Employees v. NLRC, G.R. No.
91025, December 19, 1990).
Q: What is the duration of a CBA?

ANS: Any CBA that the parties may enter into shall insofar as the representation aspect
is concerned, be for a term of 5 years. All other provisions of the CSA (economic and non-
economic, except representation) shall be renegotiated not later than 3 years after its
execution (LABOR CODE, Art. 265).
Q: What is the effect of the extension of the CBA's original term?

ANS: While the parties may agree to extend the CSA's original 5-year term despite an
agreement for a CSA with a life of more than 5 years, the bargaining union's exclusive
bargaining status is effective only for 5 years and can be challenged within 60 days prior
to the expiration of the CSA's first 5 year~{FVCLU-PTGWO v. SANAMA-FVC-SIGLO,
G.R. No. 176249, November 27, 2009). ;:
Q: What is Labor Management Council (l!Jl!I~H

;,..... ...
ANS: Any provision of law to the contrary ootwithstafl9ing1 Workers shall have the right,
subject to such rules and regulations as t~ Secretary ofla,bor and Employment may
promulgate, to participate in policy and deci,sion-making proc~S/:,esof the establishment
where they are employed insofar as said processes will directly affect their rights, benefits
and welfare. For this purpose, workers a~(l employers may fcit-m labor management
councils (LABOR CODE, Art. 267).
$:
Q: What is the automatic renewal clausei - , .., , .·"·..
ANS: The automatic renewal clause provi{tes that the CBA"shallremain effective and
enforceable even after the expiration of the Qiiriod fixed by the parties as long as no new
agreement is reached by them (LABOR CO~Ji;;M,,264) .
.' ••• ,, ':, _;
Q: Define grievance machinery.

ANS: Grievance machinery is a machinery for the adjustment and resolution of
grievances arising from the interpretation or implementation of their CSAs and those
arising from the interpretation or enforcement of company personnel policies (LABOR
CODE, Art. 273).
Q: Define grievance procedure.

ANS: Grievance procedure is the series of formal steps that parties to a CSA agreed to
take the adjustment of grievances or questions arising out of the interpretation or
implementation of the CSA or company personnel policies including voluntary arbitration
as the terminal step (National Conciliation and Mediation Board Primer on Grievance
Machinery and Voluntary Arbitration [hereinafter NCMB on Grievance Machinery and
Voluntary Arbitration]).
Q: Discuss the procedure in handling grievances.

ANS: In the absence of a specific provision in the CSA or existing company practice
prescribing for the procedure in handling grievance, the following shall apply:
1. An employee shall present his grievance or complaint orally or in writing to
the shop steward. Upon receipt thereof, the shop steward shall verify the facts
and determine whether or not the grievance is valid;

lOMoARcPSD|11893536
2. If the grievance is valid, the shop steward shall immediately bring the
complaint to the employee's immediate supervisor. The shop steward shall
exert efforts to settle the grievance at their level; and
3. If no settlement is reached, the grievance shall be referred to the grievance
committee which shall have 10 days to decide the case (0.0. No. 40-03, Rule
XIX.Sec. 2).
E. UNFAIRLABORPRACTICES
Q: What is unfair labor practice (ULP)?

ANS: Unfair labor practice (ULP) refers to acts that violate workers' right to organize.
The prohibited acts are related to workers' right to self-organization and to the observance
of a CBA (Tunay na Pagkakaisa ng Manggagawa sa Asia Brewery v. Asia Brewery, Inc.,
GR No. 162025, August 3, 2010).
Nature, Aspects
Q: What is the nature of ULP? (12C3 U)
ANS: The nature of ULP are as follows:
1. Are !nimical to the legitimate interests of both labor and management,
including their right to bargain collectively and otherwise deal with each other
in an atmosphere of freedom and mutual respect;
2. Disrupt !ndustria1 peace;
3. £riminal offenses against the State;
4. Violation of ~ivif rights of both labor and management;
5. Violate the £onstitutional right of workers and employees to self-organization;
and
6. Creates .!:!_nstablelabor-management relations (LABOR CODE, Art. 258).
Q: What is the exception to the general nature of ULP as being related to the
workers' right to self-organization and collective bargaining?
ANS: As an exception, the only ULP which may or may not relate to the exercise of the
right to self-organization and collective bargaining is to dismiss, discharge, or otherwise
prejudice or discriminate an employee for having given or being about to give testimony
under the Labor Code (LABOR CODE, Art. 259(f); Phi/com Employees Union v. Philippine
Global Communications, G.R. No. 144315, July 17, 2006).
Q: Differentiate the two aspects of ULP.

ANS: ULP has civil and criminal aspects. The differences between the said two aspects
are as follows:
Civil Aspect Criminal Aspect

Asto 1. Employer (LABOR 1. Agents and officers who have actually
Persons CODE, Art. 259); participated in, authorized or ratified
Liable 2. Labor Organization unfair labor practices; and
3. Officers, agents, or 2. Agents representatives, members of
representatives of the the government board including ordinary
labor organization members (LABOR CODE, Arts. 304 &
(LABOR CODE, 260)
Art.260)
Asto Labor Arbiters (LABOR Regular Courts (LABOR CODE, Art.

Jurisdiction CODE, Art. 224) 303)

lOMoARcPSD|11893536
Civil Aspect Criminal Aspect

Asto Substantial evidence Proof beyond reasonable doubt (subject
Quantum of to prosecution and punishment)
Proof
Asto One year from the accrual One year from the accrual of the ULP,
Prescriptive of ULP (LABOR CODE, however, it will be suspended once the
Period Art. 305) administrative case has been filed and
would only continue running once the
administrative case has attained finality
(LABOR CODE, Art. 258)
Q: Who may commit ULP?

ANS: A ULP may be committed by an employer or by a labor organization (LABOR
CODE, Arts. 259-260).
By Employers
Q: What are the acts considered as ULP by employers? (DIY-PaVi 2 -DisCo 2 )
ANS: The unfair labor practices of employem are the following:
1. To discriminate in regard to W'i9es, hours of work and other terms and
conditions of employment in orlt•t to ~c;ouragepr discourage membership
in any labor organization (Qiscrimiiiatiol1); ·. .. ; ·.
2. To interfere with, restrain or coerce employees in1 the exercise of their right
to self-organization (!nterferen~);
3. To require as a condition of eml)!oyment that person or an employee shall a
not join a labor organization or flball withdraw frotn orie to which he belongs
(Yellow Dog Condition); ·
4. To pay negotiation or attorney'sif,ees to thM,1pioo or its:ciiticers or agents as
part of the settlement of any issufjn collectiviil"~~\'li.rjgor any other dispute
(Paid Negotiation); ··· · ·
5. To violate the duty to bargain CQllectively as prescribed by the Labor Code
(Violation of the duty to Bargaint'. ..
6. To grossly viQlate a CBA (Gross:li~Of.CE,iA);
7. To dismiss, discharge or otherwise prejudice or discriminate against an
employee for having given or being about to give testimony under the Labor
Code (Discrimination because of Testimony);
8. 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 rights to self-organization (Contracting Out); and;
9. 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 supporters (Company-Domination of
Union) (LABOR CODE, Art. 259).
Q: What does the Totality of Conduct Doctrine provide?

ANS: The Totality of Conduct Doctrine provides that the culpability of an employer's
remarks is to be evaluated not only on the basis of their implicit implications, but are to be
appraised against the background of and in conjunction with collateral circumstances (The
Insular Life Assurance Co., Ltd. Employees Association-NA TU v. The Insular Life
Assurance Co., Ltd., G.R. No. L-25291, January 30, 1971).

lOMoARcPSD|11893536
Q: When is there refusal to bargain?

ANS: There is refusal to bargain so as to constitute an unfair labor practice when the
employer refuses to submit an answer or reply to the written bargaining proposals of the
SEBA. While the law does not compel the parties to reach an agreement, it does
contemplate that both parties will approach the negotiation with an open mind and make
a reasonable effort to reach a common ground of agreement (Kiok Loy v. NLRC, G.R. No.
54334, January 22, 1986). Failure of the employer to submit its counter-proposals tothe
demands of the SEBA does not, by itself, constitute refusal to bargain as would amount
to ULP (Philippine Marine Radio Officers Association v. CIR, G.R. No. L-10095, October
31, 1957).
Q: When is a violation of the CBA by the employer considered a ULP?

ANS: To constitute ULP, violations of the CBA must be gross. Gross violation of the CBA
means flagrant and/or malicious refusal to comply with the economic provisions thereof
(Arellano University Employees and Workers Union v. CA, G.R. No. 139940, September
19, 2006).
Q: What is a union security clause?

ANS: A union security clause is a stipulation in a CBA allowing the parties to require
membership in a recognized collective bargaining agent as a condition of employment
(LABOR CODE, Art. 259). It is a discrimination in favor of unionism; it is a valid kind of
discrimination (Bank of the Philippine Islands v. BPI Employees Union-Davao Chapter-
Federation of Unions in BPI Unibahk, G.R. No. 164301, August 10, 2010).
Q: Who may be excluded in a union security clause? (MARC$)

ANS: The following may be excluded in a union security clause, and hence compulsory
membership cannot be enforced:
1. Employees already in the service and already _Membersof a union other than
the SEBA at the time the union security agreement took effect (LABOR
CODE, Art. 259(e));
2. Employees excluded from the coverage of the union security clause per
express tnutual 8greement of the parties as stipulated in the CBA (Bank of
the Philippine Islands v. BPI Employees Union-Davao Chapter-Federation of
Unions in BPI Unibank, G.R. No. 164301, August 10, 2010);
3. Religious objectors who are bona fide. members of religious organizations
which prohibit their members from joining labor unions on religious grounds
(Victoriano v. Elizalde Rope Workers' Union, G.R. No. L-25246, September
12, 1974);
4. _g_onfidential employees who are excluded from the rank-and-file or
supervisory bargaining unit (Metro/ab Industries v. Confesor, G.R. No.
108855, February 28, 1996); and
5. ~upervisory employees excluded from being members of the rank-and-file
union and vice-versa (LABOR CODE, Art. 255).
Q: What is a closed-shop agreement?

ANS: A closed-shop agreement is a valid form of union security, one whereby an
employer binds himself to hire only members of the contracting union who must continue
to remain members in good standing to keep their jobs (Manila Mandarin Employees
Union v. NLRC, G.R. No. 76989, September 29, 1987).
Q: What is a run-away shop?

ANS: Run-away shop is an unfair labor practice of the management which usually takes
place by effecting the transfer of ownership, the plant itself, or its equipment and machines
or by temporarily closing its business purposely to bust the union or to evade payment of
its legitimate obligations.

lOMoARcPSD|11893536
Q: What is a yellow-dog contract?

ANS: A yellow-dog contract is a promise in a contract exacted from workers as a
condition of employment that they are not to belong to, or attempt to foster, a union during
their period of employment (2 AZUCENA, supra at 329). It is an unfair labor practice to
require as a condition of employment that a person or an employee shall not join a labor
organization or shall withdraw from one to which he belongs (LABOR CODE, Art. 259(b)).
Q: What is contracting out?

ANS: Contracting out means 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 (LABOR CODE, Art. 259(c)).
Q: When is outsourcing not considered ULP?

ANS: For outsourcing to be not considered a ULP, it must be:
1. Motivated by good faith; and
2. Must not have been resorted to circumvent the law or must not have been the
result of malicious or arbitrary action (Manila Electric Company v.
Quisumbing, G.R. No. 127598, January 27, 1999).
Q: When is there a company-domination 1.mion?

ANS: A company-domination union exists When the employer acts "to initiate, dominate,
assist, or otherwise interfere with the formatic:inor administration of any labor organization,
including the giving of financial or other support \o it or i~ organizers or supporters"
(Rivera v. Espiritu, G.R. No. 135547, January 23, 2002). ·
Q: When is there discrimination of employees?
ANS: There is discrimination of employees when benefits or prlvileges given to one are
not given to the other under similar or identical conditions when directed to encourage or
discourage union membership (2 AZUCENA, supra at 338).
Q: What is surface bargaining? .. .

ANS: Surface bargaining is defined as "going through the motions of negotiating" without
any legal intent to reach an agreement (St?ndard Chartered Bank Employees Union v.
Confesor, G.R. No. 114974, June 16, 2004),
Q: Can a criminal case for ULP precede the administrative case?

ANS: No. To prosecute ULP as criminal offense is not possible until after finality of
judgment in the labor case, finding that respondent indeed committed ULP. But such
judgment will not serve as evidence of ULP in the criminal case; the criminal charge must
be proved independently from the labor case (LABOR CODE, Art. 258).
By Labor Organizations
Q: What are the ULPs of labor organizations? (GRADE-V)

ANS: The ULPs of labor organizations are the following:
1. To ~rossly violate a collective bargaining agreement;
2. To .Bestrain or coerce employees in the exercise of the right to self-
organization. However, labor organization shall have the right to prescribe
its own rules with respect to the acquisition and retention of membership;
3. To Ask for or accept negotiation or attorney's fees from employers as part of
the settlement of any issue in collective bargaining or any other dispute;
4. To cause or attempt to cause an employer to Qiscriminate against an
employee, including discrimination against an employee with respect towhom
membership in such organization has been denied or to terminateand
employee on any ground other than the usual terms and conditions under

lOMoARcPSD|11893536
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Volume I · Series
of 2022
which membership or continuation of membership is made availableto other

members;
5. 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 s_xaction,
for services which are not performed or not to be performed, including the
demand for fee for union negotiations; and
6. To Y:iolate the duty, or refuse to bargain collectively with the employer,
provided it is the representative of the employees (LABOR CODE, Art. 260).
Q: When does expulsion of an employee from the union become a form of

discrimination by the labor organization?
ANS: A union member may not be expelled from the union, and consequently from the
job, for personal or impetuous reasons or for causes foreign to the closed-shop agreement
(Manila Mandarin Employees Union v. NLRC, G.R. No. L-76989, September 29, 1987).
Q: What is blue-sky bargaining?

ANS: Blue-sky bargaining is defined as making exaggerated or unreasonable
proposals. If the union requires exaggerated or unreasonable economic demands, it is
from declaring or conducting a strike (Jac,into v. CA, G.R. No. 124540, November 14,
1997). The rationale behind this absolute probation-is that the terms and conditions of
employment in the government servjce are governed by Civil Service Law, in relation to
the Constitution, rules and regulations (CONST. Art.Xlll, See. 3; LABOR CODE, Art. 291).
Consequently, they cannot use strike to secure changes in such terms andconditions
(/RR of E.O. No. 180, Rule Ill, Sec. 4). .
F. PEACEFULCONCERTEDACTIVITIES
Strikes
Q: Who rriay declare a strike or lockout? ,
ANS: Any certified or duly recognized bargaining representative may declare a strike in
cases of bargaining deadlocks and unfair labor· practices,. The employer may declare a
lockout in the same cases. In the absence of the former, any legitimate labor organization
in the establishment may declare a strike but only on grounds of unfair labor practice
(/RR of the LABOR CODE, Book V, Rule XIII; Sec. 2). __
Q: What are the grounds for strikes/lockouts?

ANS: The grounds for strikes or lockouts may be any of the following:
1. A collective bargaining deadlock; or
2. A ULP act of the employer or the labor organization (LABOR CODE, Art. 278).
Q: What is a slowdown?
ANS: Slowdown is a "strike on installment plan." It is also an activity by which workers,
without a complete stoppage of work, retard production or their performance of duties and
functions to compel the management to grant their demands. This is generally
condemned as inherently illicit and unjustifiable (IBM v. NLRC, G.R. No. 91980, June 27,
1991).
Q: When will a mass leave be considered a strike?

ANS: The phrase "mass leave" may refer to a simultaneous availment of authorized
leave benefits by a large number of employees in a company. Art. 212(0) of the Labor
Code defines a strike as "any temporary stoppage of work by the concerted action of
employees as a result of any industrial or labor dispute." "Concerted" is defined as
"mutually contrived or planned" or "performed in unison" (Naranjo v. Biomedica
Healthcare, G.R. No. 193789, September 19, 2012).

lOMoARcPSD|11893536
Q: What are the procedural and substantive requirements of strike?

ANS: For a strike to be considered valid, the following must be complied with:
1. A strike must be based on a valid and factual ground, based on either:
a. ULP of the employer; or
b. Collective bargaining deadlock;
2. Strike notice filed with NCMB:
a. At least 15 days (cooling-off period) before intended day of the strike if
the issues raised are ULPs;
b. At least 30 days (cooling-off period) before the intended date if the issue
involves bargaining deadlock; or
c. In case of acts constituting union busting where the existence of the
union is threatened, the 15-day cooling-off period shall not apply.
3. A strike must be approved by a majority vote of the members of the union by
secret ballot in a meeting called for that purpose;
Note: A notice must be served to the NCMB-DOLE at least 24 hours prior to
the taking of strike or lockout vote by secret balloting, informing said office of
the decision to conduct a strike or lockout vote, and the date, place and time
thereof (/RR of the LABOR CODE, Book V, Rule XX/I, Sec. 10, as amended
by 0.0. No. 40-03).
4. The strike vote shall be reported to the NCMB-DOLE Regional Branch at least
7 days before the intended strike $1Jbjectto cooling-off period; and
Note: It must be stressed that the requirements of cooling-off period and 7-
day strike ban must both be complied with,although the labor union may take
a strike vote and report the same within the statutory cooling-off period
(NSFW v. Ovejera, G.R. No. 59743, May 31, 1982).
5. The dispute must not be the subject of an assumption of jurisdiction by the
President or the Secretary of •Labor and Emplpyment, a certification for
compulsory arbitration, or subniiSsion to compulsory or voluntary arbitration
nor a subject of a pending case Involving the same. grounds for the strike or
lockout (NCMB Primer on Strikes, Picketing and Li>ckduts, Parl II, Question
6, A.5).
Q: What kind of strikes are covered by the no-strike no lock-out clause?

ANS: A no-strike no-lock-out clause in a CBA is appllcable only to economic strikes,
i.e., those which is to force wage or other concessions from the employer which he is
not required by law to grant. Corollary, if the strike is founded on an ULP of the employer,
a strike declared by the union cannot be considered a violation of the no-strike no
lock-out clause (Master Iron Labor Union v. NLRC, G.R. No. 92009, February 17, 1993).
Q: In cases of union busting, what requirement to conduct strike may be

dispensed with?
ANS: In cases 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, the 15-day cooling-off period shall not apply and the
union may take action immediately after vote is conducted and the result thereof
submitted to the DOLE. The time requirement for the filing of the Notice of Strike shall be
dispensed with (NCMB Primer for Strikes, Picketing and Lockouts, Parl II, Question 6,
A.2).
Q: What constitutes union busting as a ULP that may be invoked as a valid

ground for strike?
ANS: To constitute union-busting, there must be:
1. A dismissal from employment of union officers duly elected in accordance
with the union's constitution and by-laws; and

lOMoARcPSD|11893536
2. The existence of the union is threatened by such dismissal (LABOR CODE,

Art. 278(c)).
Q: What is Good Faith Strike Doctrine?

ANS: Under the Good Faith Strike Doctrine, strike may be considered legal where the
union believed that the company committed ULP and the circumstances warranted such
belief in good faith, although subsequently such allegations of ULP are found out as not
true. A strike staged by the workers, inspired by good faith, does not automatically make
the same illegal (Bacus v. Opie, G.R. No. L-56856, October 23, 1984).
Q: What is the Doctrine of Means and Purposes?

ANS: A strike is legal when lawful means concur with lawful purpose (GOP-CCP
Workers v. CIR, G.R. No. L-33015, September 10, 1979). Lawful purpose means that to
validly recognize a strike, it must be for the purpose of collective bargaining and other
mutual aid or protection. There are two strikeable grounds: collective bargaining deadlock
and employer's ULP (2 AZUCENA, supra at 612). It also has to be pursued within the
bounds of law; the limits are among those prohibited activities, i.e., no person engaged in
picketing shall commit any act of violence, coercion or intimidation, or obstruct the free
ingress or egress from the employer's premises for lawful purposes, or obstruct public
thoroughfares (LABOR CODE, Art. 279(e)). .
Thus, strike is illegal when it is declared for an unlaWfu( purpose or employs unlawful
means in the pursuit of its .objective, such 8$ a widespread terrorism of non-striker (Toyota
Motor Phils. Corp. Workers Association .v.NLR<:;, G.R. No. 158786, October 19, 2007).
Q: What are the distinctions between strike caused by. CBA deadlock and ULP?
ANS: The distinctions between strike caused by CBA deadlock and ULP are asfollows:
Economic Strike
ULP Strike
(CBA Deadlock)
Asto A voluntary sttike because involuntary strike; the labor
Nature the employee will declare a organization is forced to go on strike
strike to compel because of the ULP committed
management to grant its against them by the employer.
demands.
As to Who The collective bargaining Either;
Initiates agent of the appropriate 1. ·Collective bargaining agent; or
bargaining unit. 2. The legitimate labor organization
in behalf of its members
Asto Thirty days from the filing of Fifteen days from the filing of the
Cooling-off the notice of strike before notice of strike subject to the 7-day
Period the intended date of actual strike ban
strike subject to the 7-day
strike ban
Exception to No exception; mandatory Cooling-off period may be dispensed
the Cooling- with and the union may take
Off Period immediate action in case of dismissal
from employment of their officers
duly elected in accordance with the
union's constitution and by-laws,
which may constitute union busting
where the existence of the union is
threatened.
As to Strike to said pay Said pay may be awarded in the
based on the rinci le that a discretion of the authorit decidin

lOMoARcPSD|11893536
Economic Strike
(CBA Deadlock)
Duration "fair day's wage accrues
only for a fair day's labor."
(LABOR CODE, Art. 278; NCMB Primer on Strikes, Picketing and Lockouts).
Q: In what instances are striking workers entitled to backwages?

ANS: Striking workers are not entitled to compensation during the period of strike under
the principle of "no work no pay". However, there are recognized exceptions to the "no
backwages rule," to wit:
1. When the employees were illegally locked to thus compel them to stage a
strike;
2. When the employer is guilty of the grossest form of ULP;
3. When the employer committed discrimination in the rehiring of strikers
refusing to readmit those against whom there were pending criminal cases
while admitting non-strikers who were also criminally charged in court; or
4. When the workers who staged a voluntary ULP strike offered to return to work
unconditionally but the employer refused to reinstate them (Philippine
Diamond Hotel & Resort, Inc.,. Jt, Manila Diamond Hotel Employees Union,
G.R. No. 158075, June 30, 2006);
ft:/
Q: How does a strike become illegal un

ANS: Under the Means Employed T8$t, '·•sm'f<e:·-:~'legal
E1:":1PloyedTest?
at its inception but
eventually be declared illegalifthe strike is ompanied by violence which is widespread,
pervasive and adopted as a matter of policy and not mere[y violence which is sporadic
which normally occurs in a strike area (Shef;Oil Workers' 1/nion v. Shell Company of the
Philippines, G.R. No. L-28607, May 31, 1971j. .
Q: Differentiate a legal strike from an illegal strike •. .

ANS: The following are the differences be~en a valr
,~;J}l}i:
.. ?taged a purpose not
and conducted through m '"fEJCognnzed by law or if for a valid
authorized by law (NCMB purpose, it is conducted through
Primer on Strikes, Picketing means not sanctioned by law (NCMB
and Lockouts, Part II, Question Primer on Strikes, Picketing and
2, A.1). Lockouts, Part II, Question 2, A.2).
Officers are not liable for Any union officer who knowingly
resulting damages. They will participates in an illegal strike and
not lose employment by knowingly participates in the
reason thereof. commission of illegal acts during a
strike may be declared to have lost
his employment status (LABOR
CODE, Art. 279(a)).
They are not civilly liable for When he commits illegal acts during
participating in a valid strike. a strike that he may be declared to
have lost employment status
(Solidbank v. Gamier, G.R. No.
159640, November 15, 2010).

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Q: What are the prohibited activities during strike? (FAOB-PuV)

ANS: The following are the prohibited acts during strike:
1. No labor organization or employer shall declare a strike or lockout without first
having bargained collectively or without Eirst having filed the notice required
or without the necessary strike or lockout vote first having been obtained and
reported to the DOLE (LABOR CODE. Art. 279(a));
2. No strike or lockout shall be declared after Assumption of jurisdiction by the
President or the Secretary of Labor or after certification or submission of the
dispute to compulsory or voluntary arbitration or during the pendency of cases
involving the same grounds for the strike or lockout (LABOR CODE, Art.
279(a));
3. No person shall Qbstruct, impede, or interfere with, by force, violence,
coercion, threats or intimidation, any peaceful picketing by employees during
any labor controversy or in the exercise of the right to self-organization or
collective bargaining, or shall aid or abet such obstruction or interference
(LABOR CODE, Art. 279(b));
4. No employer shall use or employ any strike-§reaker, nor shall any person be
employed as a strike-breaker (LABOR CODE, Art. 279(c));
5. No Public official or employeEl, il)i:;luding officers and personnel of the New
Armed Forces of the Philippines or the Integrated National Police (now the
Philippine National Police), or armed person, shall bring in, introduce or escort
in any manner, any inc!ividual Who seeks to replace strikers in entering or
leaving the premises of cJstrike .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:
a. Maintain peace and order;
b. Protect life and property; and/or
C. Enforce the law and legal order (LABOR CODE, ,'\rt. 279(d));
6. No person engaged inpickettng shall commit any act of Y.iolence, coercion or
intimidation or obstruct the free ingress to or egress from the employer's
premises for lawful purposes, or obstruct public thoroughfares (LABOR
CODE, Art. 279(e)). .
Q: What is the liability of union officers and members. for illegal strike and illegal
acts committed during strike?
ANS: A strike staged without c6mplicJnce with Jhe requirements of Art. 278 of the Labor
Code is illegal and may cause the termination of the employment of the participating union
officers and members. However, the liability for the illegal strike is individual, not
collective. To warrant the termination of an officer of the labor organization on that basis,
the employer must show that the officer knowingly participated in the illegal strike. An
ordinary striking employee cannot be terminated based solely on his participation in the
illegal strike, for the employer must further show that the employee committed illegal acts
during the strike (The Hong Kong and Shanghai Banking Corp. Employees Union v.
NLRC, G.R. No. 156635, January 11, 2016).
Picketing
Q: What is picketing?
ANS: Picketing is a concerted activity of workers consisting in peacefully marching to
and from before an establishment involved in a labor dispute generally accompanied by
the carrying and display of signs, placards and banners intended to inform the public about
the dispute (flaw at Buklod ng Manggagawa v. NLRC, G.R. No. 91980, June 27, 1995).
Q: What are the requisites for lawful picketing? (PNOP)

ANS: The requisites of lawful picketing are the following:

lOMoARcPSD|11893536
1. It should be feacefully carried out;

2. There should be Noact of violence, coercion, or intimidation attendant thereto;
3. The ingress and egress should not be Qbstructed; and
4. fublic thoroughfares should not be impeded (/RR of the LABOR CODE, Book
V, Rule XX/I, Sec.13, as amended by D.O. No. 40-03).
Lockouts
Q: What is a lockout?
ANS: Lockout means the temporary refusal of an employer to furnish work as a result of
and industrial or labor dispute (LABOR CODE, Art. 212(p), as amended by R.A. No. 6715,
Sec. 4). It is a term commonly used to express an employer's act of excluding from his
plant union members hitherto employed by him. The act may affect all or less than all of
the employee-union members. In the sense in which it is universally used, is an act
directed at the union itself rather than at the individual employer-members of the union
(Sta. Mesa Slipways & Engineering Company, Inc., v. CIR, G.R. No. L-4521, August 18,
1952).
Q: What are the grounds for lockouts?

ANS: The following are the grounds for locJ<outs:
1. A collective bargaining deadlock(LABOR CODE, Art. 278 (b)); and
2. An unfair labor practice act oftMemployee (LABOR CODE, Art. 278 (c)).
Q: When is a lockout deemed lawful and pr'ltaWfu}?,

ANS: A Lockout is deemed lawful when: (WUT)
1. In response to a Whipsaw strike;
2. In response to an J.!.nprotectedstrike or walkout; or
3. In anticipation of a Ihreatened strike (2 AZUCENA, supra at 579).
• •••
, <
On the other hand, a Lockout is deemed un!ilwful when,: (BAD)

1. It is to avoid §.argaining; . .· · ·
2. It is to Aid a particular union by'.preventing farth'er6fganizational work of its
rival, or to coerce the employees{to join the favored union; or when
3. It is to Q.iscourage and dissipatf?, {l}f?~bership in a labor organization or
otherwise kill the union (Id.). ' · ·• ·
Q: What are the procedural and substantive requirements of a lockout?

ANS: For a lockout be considered valid, the following must be complied with:
1. A lockout must be based on a valid and factual ground, based on either:
a. ULP of the employer; or
b. Collective Bargaining Deadlock;
2. Lockout notice filed with NCMB:
a. At least 15 days before intended day of the strike if the issues raised are
ULPs; or
b. At least 30 days before the intended date if the issue involves bargaining
deadlock;
3. A lockout must be approved by a majority vote of the members of the Board
of Directors of the Corporation or Association or of the partners in a
partnership, obtained by secret ballot in a meeting called for that purpose;
4. The lockout vote shall be reported to the NCMB-DOLE Regional Branch at
least 7 days before the intended strike subject to cooling-off period; and
5. The dispute must not be the subject of an assumption of jurisdiction by the
President or the Secretary of Labor and Employment, a certification for
compulsory arbitration, or submission to compulsory or voluntary arbitration
nor a subject of a pending case involving the same grounds for the strike or

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lockout (NCMB Primer on Strikes, Picketing and Lockouts, Part II, Question
6, A.5).
Q: What are the instances when no strike or lockout can be declared?

ANS: No strike or lock-out can be declared in the following instances:
1. After assumption of jurisdiction by the President or the Secretary of Labor
(LABOR CODE, Art. 27B(g));
2. After certification or submission of the dispute to compulsory or voluntary
arbitration; or
3. During the pendency of cases involving the same grounds for the strike or
lock-out (LABOR CODE, Art. 279).
Q: What are the reliefs available to illegally locked-out employees?

ANS: In case of illegal lockout, any worker whose employment has been terminated as
a consequence thereof shall be reinstated with payment of full backwages and other
benefits (LABOR CODE, Art. 279(a)).
Assumption of Jurisdiction bv Secretarv of Labor

Q: What is the power of the Se.cretary ofLabor-to assume jurisdiction in cases of
strikes and lockouts? · ,_
ANS: When in the opinion of the DC)LESecretary; the labor dispute causes or will likely
to cause a strike or lockout in anindustry indispensable to the national interest, he is
empowered to either: , ' .
1. Assume jurisdiction over the labor dispute and, decide it himself; or
2. Certify it to NL~C for compulsory arbitration, ir\which case, the NLRC shall
hear and decide it (LABOR CODE, Ari. 27B(g)).
Q: What is the rule on strikes and lockouts in hospitals, clinics and medical
institutions? .
ANS: It shall be th~duty of the striking union or locking-0ut employer to provide and
maintain an effective skeletal workforce of medical and other health personnel, whose
movement and service shall be unhampered-and unrestriCted, as are necessary to ensure
the proper and adequate proteeticm of life and health of its patients, most especially in
of
emergency cases for the ctwatron the .sJrike or lockout (D. 0. No. 40-H-13, Sec. 3).
Q: What is the effect of assumption of jurrsdictlon or certification by Secretary of

Labor and of the labor dispute?
ANS: The following are the effects of assumption of jurisdiction or certification by the
Secretary of Labor:
1. If a strike or lockout has not taken place, the parties are enjoined to conduct
any untoward action that may lead to a strike or lockout;
2. If a strike or lockout has already taken place, all striking and locked out
workers shall, within 24 hours from receipt of an Assumption or Certification
Order, immediately return to work and the employer shall immediately resume
operations and readmit all workers under the same terms and conditions
prevailing before the strike; and
3. At any point in time, the parties are not prevented from submitting the dispute
to Voluntary Arbitration with the Secretary of Labor and Employment or
his/her duly authorized representative as voluntary Arbitrator or Panel of
Voluntary Arbitrators (/RR of the LABOR CODE, Book V, Rule XX/I, Sec. 15,
as amended by 0.0. No. 40-03 and 0.0. No. 40-G-03).
Q: What is the effect if the return-to-work order is not expressly stated in the
assumption or certification order?
ANS: The mere issuance of an assumption order by the Secretary of Labor

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SEDAN RED BOOK

Volume l • Series of 2022
automatically carries with it a return-to-work order, even if the directive to return to work
is not expressly stated in the assumption order. The moment the Secretary of Labor
assumes jurisdiction over a labor dispute in an industry indispensable to national interest,
such assumption shall have the effect of automatically enjoining the intended orimpending
strike (Telefunken Semiconductors Employees Union-FFWv. CA, G.R. Nos. 143013-14,
December 18, 2000).
Q: What are the issues that the Secretary of Labor can resolve when he/she
assumes jurisdiction over a labor dispute?
ANS: The issues that the Secretary of Labor can resolve when he/she assumes
jurisdiction over a labor dispute are the following:
1 . Issues submitted to the Secretary for resolution and such issues involved in
the labor dispute (St. Scho/astica's College v. Torres, G.R. No. 100158, June
2, 1992); and
2. The Secretary of Labor may subsume pending labor cases before Labor
Arbiters which are involved in the dispute and decide even issues falling
under the exclusive and original jurisdiction of Labor Arbiters such as legality
and illegality of strike (International Pharmaceuticals v. Secretary of Labor,
G.R. No. 92891, January 9, 19~?)-
Q: What is the effect of defiance of a& ion or certification orders?

ANS: Non-compliance with the cert· order of the Secretary of Labor and
Employment shall be considered as an s;9mmill~;in the course of the strike
or lockout, and shall authorize the Co 10:.~ the same under pain of
immediate disciplinary action, including ctismissal or loss Qf employment status or
payment by the locking-out employer of bii;kwages, damagts and/or other affirmative
relief, even criminal prosecution against ttie liable parties! (2011 NLRC RULES OF
PROCEDURE, Rule VIII, Sec. 4), i~ .. ...
Q: What is the procedure to be followed l~.certified
ANS: The following procedure must be foll~ed inc
1 . When there is no need to condw::t a clarifi
resolve all certified cases witbth 30 calendar days from receipt by the
assigned NLRC of the compl · , which shall include the position
papers of the parties and the or Jary of Labor and Employment
denying the motion for reconsidera 10no the'certification order, if any; or
2. Where a clarificatory hearing is need - the NLRC shall, within 5 calendar
days from receipt of the records, issue a notice to be served on the parties
through the fastest means available, requiring them to appear and submit
additional evidence, if any. All certified cases shall be resolved by the
Commission within 60 calendar days from receipt of the complete records by
the assigned Commissioner (2011 NLRC RULES OF PROCEDURE, Rule
VIII, Sec. 5).
lniunctions
Q: When may the NLRC grant a preliminary or permanent injunction instrikes
or lockouts? (TIGNU)
ANS: The NLRC may only grant an injunction after hearing the testimony of witnesses
and with opportunity for cross examination in support of the allegations of the complaint
or petition made under oath, and testimony by way of opposition; and, only after a finding
of fact by the NLRC:
1. That prohibited or unlawful acts have been !hreatened and will be committed
and will be continued unless restrained;
2. That substantial and irreparable Injury to petitioner's property will follow;

lOMoARcPSD|11893536
3. That as to each item of relief to be granted, Qreater injury will be inflicted upon
the petitioner by the denial of relief than will be inflicted upon respondents by
the granting of relief;
4. That petitioner has Noadequate remedy at law; and
5. That the public officers charged with the duty to protect petitioner's property
are .!J.nableor unwilling to furnish adequate protection (2011 NLRC RULES
OF PROCEDURE, Rule X, Sec. 2).
Note: No injunction or temporary restraining order shall be issued on account of any
threat, prohibited or unlawful act, except against the person or persons, association or
organization making the threat or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual knowledge thereof (2011 NLRC RULES OF
PROCEDURE, Rule X, Sec. 2).
Q: Who are authorized to issue injunctions or restraining orders? (NPS)

ANS: The following are authorized to issue injunctions or restraining orders:
1. NLRC (LABOR CODE, Art. 225);
2. fresident - In case of labor dispute in industries which are indispensable to
national interest (LABOR CODE, Art. 278 (g)); and
3. DOLE _§ecretary - In case of labor dispute in industries which are
indispensable to national interest, the Secretary may assume jurisdiction over
the dispute or certify the sametQ fhe NLRC fo( compulsory arbitration. Such
assumption or certification shall havefthe effect Of automatically enjoining the
intended or'in\pendtng strike. If one has already .taken place, all striking or
locked out employees shall immediately return toworj< and the employer shall
immediately re~admit employees and resume Operations (LABOR CODE, Art.
278 (g)).
Q: Can regular courts issue injunctions?

ANS: Regular courts an~ without authority to issue. lnjunctipn orders in cases involving
or originating from labor disputes even if the complaint was; filed by non-striking
employees and the employer was made a respondent. To hold otherwise is to sanction
splitting of jurisdiction _whichis obnoxious to the orderly administration of justice (Ando v.
Campo, G.R. No. 184007, February 16, 2011). ·
As an exception, a regular court mi;ly issue injur:iction to protect the interest of neutral
employers in common situs picketing, providedthe lr:ij1,mc;tion does not in any way curtail
the right of the union to strike and/or picket (Repubf;c"F/our Mill Workers Assoc. v. Reyes,
G.R. No. L-21378, November 28, 1966).
Note: In cases of strikes/picketing, third parties or innocent bystanders may secure a
court (regular court) injunction to protect their rights (PAFLU v. Cloribel, G.R. No. L-25878,
March 28, 1969).
VI. Termination of Employment

A. SECURITY OF TENURE
Q: What is security of tenure?

ANS: In cases of regular employment, the employer shall not terminate the services of
an employee except for a just cause or when authorized by this Title (Termination of
Employment) (LABOR CODE, Art. 294).

lOMoARcPSD|11893536
Categories of Employment as to Tenure

Q: What are the different kinds of employees? (RCP 2-SF)
ANS: The Labor Code and jurisprudence have identified the following as kinds of
employees:
1. Regular employees - referring to those who have been engaged to perform
activities which are usually necessary or desirable in the usual business or
trade of the employer (LABOR CODE, Art. 295);
2. .s;;_asual employees - referring to those who are not regular, project, or
seasonal employees (LABOR CODE, Art. 295). Generally, those performing
activities not usually necessary or desirable in the employer's usual business
or trade are casual employees (GMA Network v. Pabriga, G.R. No.176419,
November 27, 2013);
3. frobationary employees - whose employment does not exceed 6 months
from the date the employee started working, unless it is covered by an
apprenticeship agreement stipulating a longer period (LABOR CODE, Art.
296);
4. froject employees - referring to those whose employment has been fixed
fora specific project or underta!<jng, the completion or termination of which
has been determined at the time:of the engagement of the employee (LABOR
CODE, Art. 295);
5. _§_easonalemployees - referring;to those who work or perform services
which are seasonal in nature, tlle.~mployment is for the duration of the
season (LABOR CODE, Art. 295}1•af!tlt\,. -·-·;: ; y;:t·.
tq
6. fixed-term employees - refer those whos'e ernf)loyment contract specifies
that the same will last only foria definite period 0j (L3rent School v. Zamora,
G.R. No. L-48494, February 5, i:990). ·
Q: When is an employee deemed regular•1

ANS: An employee is deemed regular whei,;
1. The employee has been engaged to perfofroSd µsually necessary or
desirable in the usual businesi'.or trade ofth'Ef' p oyer (LABOR CODE,
Art. 295); ..
2. A casual employee is allowed to'workfor at least 1 year, whether the same is
continuous or broken, with resp(;lyffd;th~~)lit¥ in which he is employed and
while such activity exists (LABOR CODE, Alt: '295); and
3. An employee is allowed to work after the lapse of the probationary period
(LABOR CODE, Art, 296).
Q: What is the primary standard in determining regular employment?

ANS: The primary standard in determining a regular employment is the reasonable
connection between the particular activity performed by the employee in relation to the
usual business or trade of the employer. The test is whether the former is usually
necessary or desirable in the usual business or trade of the employer. Also, if the
employee has been performing the job for at least 1 year, even if the performance is not
continuous or merely intermittent, the law deems the repeated and continuing need for its
performance as sufficient evidence of the necessity if not indispensability of that activity
to the business (De Leon v. NLRC, G.R. No. 70705, August 21, 1989).
Note: The phrase "to perform activities which are usually necessary or desirable in the
usual business or trade of the employer" includes performance of peripheral jobs indirectly
related to the principal business of employer (Romares v. NLRC, G.R. No. 122327,
August 19, 1998).
Q: May a part-time employee be deemed regular?

ANS: Yes. One's regularity of employment is not determined by the number of hours one

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BEDAN RED BOOK

works but by the nature and by the length of time one has been in that particular job
(Perpetual Help Credit Cooperative, Inc., v. Faburada, G.R. No. 121948, October 8,
2001).
Q: When shall a security guard be considered as a regular employee?

ANS: A security guard shall be considered as a regular employee when:
1. He/she is allowed to work after probationary period;
2. There is an absence of a valid probationary contract; or
3. He/she is affected by repeated hiring-firing-rehiring scheme for short periods
of time, the aggregate duration of which is at least 6 months (0.0. No. 150-
16, Sec. 3.3).
Q: May a security guard be placed in a work pool or reserved status?

ANS: A security guard and other private security personnel may be placed in a work pool
or on reserved status:
1. Due to lack of service assignment after the expiration or termination of the
Service Agreement with the principal where he/she is assigned;
2. Due to the temporary suspension of security service operations; or
3. Due to valid relief from the. qment place of work and there is no work
assignment available {D.0. ·No. 150~16;-Sec. 10.3).
However, no security guar-d and otherprivate·security\:)etsonnel can be placed in a work

pool or on reserved statds inany"Of the .following situations:
1. After expiration oJa service contract, ifthere are other principals where he/she
can be assfgned;
2. As a measure to constructively dismiss the security guard; and
3. As an act of retaliation for filing any complaint against the employer for
violation of labor laws, among others (D.0. No. 150-16, Sec. 10.3).
Note: If after a period of 6 months, the Security Service Contractor or Private Security
Agency cannot pro'{ide work or give an assignmenUo the .reserved security guard, the
latter can be separated from service and shall be entitled to
separation pay. An
assignment of the security guard and other private security per~onnel as a reliever for
less than one-month shall not be considered as an interruption of the 6 months period
(0.0. No. 150-16, Sec. 10.3). · · · •
Q: What is a casual employment? ·

ANS: There is casual employment whefean employee is engaged to perform a job, work
or service which is merely incidental to the business of the employer, and such job, work
or service is for a definite period made known to the employee at the time of engagement
(/RR of the LABOR CODE, Book VI, Rule I, Sec. 5(b) as amended by 0.0. No. 10-97). It
is also deemed casual when it is not considered as regular, project, or seasonal
employment (LABOR CODE, Art. 295).
Q: How can a casual employee become a regular employee?

ANS: Any casual employee who has rendered at least 1 year of service, whether such
service is continuous or broken, shall be considered a regular employee with respect to
the activity in which he is employed and his employment shall continue while such activity
exists (LABOR CODE, Art. 295).
Q: What is probationary employment?

ANS: A probationary employment is where the employee, upon his engagement, is
made to undergo a trial period during which the employer determines his fitness to qualify
for regular employment based on reasonable standards made known to him at the time
of his engagement (Robinsons Galeria v. Ranchez, G.R. No. 177937, January 19, 2011).
A probationary employment gives the employer an opportunity to observe the fitness of a

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1 • Series of 2022 ••
probationer while at work, and to ascertain whether he would be a proper and efficient
employee (Canadian Opportunities Unlimited v. Dalangin, G.R. No. 172223, February 6,
2012).
Q: What is the duration of probationary employment?

ANS: Probationary employment shall not exceed 6 months from the date the employee
started working (LABOR CODE, Art. 296). The computation of the 6-month probationary
period is reckoned from the date of appointment up to the same calendar date of the 6th
month following (Cebu Royal Plant v Deputy Minister of Labor, G.R. No. L-58639, August
12, 1987).
Note: In the case of Alcira v. NLRC (G.R. No. 149859, June 9, 2004), the Supreme Court
ruled that the computation of the 6-month period is reckoned from the date of appointment
up to the same calendar dale of the 6th month following. However, in the case of
Mitsubishi Motors Philippines Corporation v. Chrysler Philippines Labor Union (G.R. No.
148738, June 29, 2004), the Supreme Court construed the 6-month period as 180 days
applying Article 13 of the New Civil Code.
Q: What are the exceptions to the rule that the length of time of probationary
employment is not exceeding 6 months? (ACE-369)
ANS: The following are the exceptions to the 6-month period limit:
1. When the employment is covered by an Apprenticeship agreement stipulating
a longer period (LABOR CODE, Alt. 296);
2. When the parties agree to a longerterml>y virtue of ~ompany policy or when
the same is required by the nature of the work (BUiser v. Leogardo, G.R. No.
L-63316, July 31, 1984);
3. When there is an .!;_xtensionof the probationary period beyond 6 months
agreed upon at or prior to the expiration thereof, in view of an act of liberality
on the part of his employer affording the employee a second chance to make
good after initiaHy failing to prove his worth as an employee (Mariwasa
Manufacturing v Leogardo, G.R, No. 74246, Janua,r 26, 1989); and
4. In case of academic school personnel, J consecutive years in elementary and
secondary levels, § consecutiveregular semesters of satisfactory service for
those in the tertiary level, and~ eonsecutive trimesters of satisfactory service
for tertiary level offering a trimester (1992 Manual of Regulations for Private
Schools, Sec. 92).
Note: The probationary period for academic school personnel shall be counted in terms
of "school years", not calendar years (Magis Young Achievers Learning Center v.Manalo,
G.R. No. 178835, February 13, 2009). D.O. No. 88-10 amended the 1992 Manual of
Regulations for Private Schools with respect to basic education in private schools but still
provides for the same period.
Q: How can a probationary employee become a regular one?

ANS: A probationary employee becomes a regular one in any of the following cases:
1. When a probationary employee is engaged to work beyond the probationary
period of 6 months, as provided under Art. 296 of the Labor Code (Dusit Hotel
Nikko v. Gatbonton, G.R. No. 161654, May 5, 2006);
2. When a probationary employee is repeatedly rehired after her first 6-month
probationary period (Octavio v. NLRC, G.R. No. 88636, October 3, 1991);
3. When the employer extended a regular or permanent appointment to an
employee once he finds that the employee is qualified for regular employment
even before the expiration of the probationary period; or
4. When the employer did not apprise the probationary employee of the
standards by which he will qualify as a regular employee (A.M. Oreta & Co.,
Inc., v. NLRC, G.R. No. 74004, August 10, 1989).

lOMoARcPSD|11893536
Q: Aside from rendition of services within the probationary period, what is required
of private school teachers to acquire permanent status?
ANS: Full-time teachers who have satisfactorily completed their probationary period
shall be considered regular or permanent (2010 Revised Manual of Regulations for
Private Schools in Basic Education, Sec. 63). Mere rendition of service for 3 consecutive
years does not automatically ripen into a permanent appointment. It is also necessary that
the employee be a full-time teacher, and that the services he rendered are satisfactory
(Magis Young Achievers Learning Center v. Manalo, G.R. No. 178835, February 13,
2009).
In addition, they shall possess appropriate educational qualifications and must pass the
Licensure Examination for Teacher (LET). The minimum educational qualification for
school teaching personnel in the kindergarten and elementary levels shall be a bachelor's
degree in education. For secondary level of instruction for academic subject, a bachelor's
degree in education, or arts, or equivalent, with such additional number of professional
education subjects as may be required, to teach largely in their major or minor fields of
concentration. Whereas, for vocational subjects, they shall be a graduate of any
bachelor's degree, with knowledge of the vocational courses to be taught (2010 Revised
Manual of Regulations for Private Schools in Basic Education, Sec. 70).
Q: What are the grounds to terminate probationary employment?

ANS: The service of a probationary employee may be terminated in the following
instances:
1. For any just cause;
2. For an authorized cause; or
3. When he fails to qualify as a regular employee in accordance with reasonable
standards.made known by the employer to the employee at the start of the
employment (/RR of the LABOR CODE, Rule I, Book VJ, Secs. 2(b) and 6(c),
as amended).
Q: What is required for valid severance o.f probationary employer-employee

relationship on the ground of failure to qualify as a regular employee? (C-SEF)
ANS: Valid severance of probationary employer-employee relationship outside of the
just and authorized causes presupposes that the employer had accomplished the
following things:
1. The employer must ~ommunicate to the employee that he is being hired on
a probationary basis prior to the commencement of his employment;
2. The employer must convey to the probationary employee the reasonable
.§.tandards at the start of the probationary employee and not in the course
thereof or toward its end;
3. The employer must !;valuate the performance of the probationary employee
in relation to the duly communicated reasonable standards; and
4. The employee fails to comply with these reasonable standards before the
completion of the probationary period (Tamson's Enterprises, Inc., v. CA,
G.R. No. 192881, November 16, 2011).
Q: What is a project employment?

ANS: A project employment is one where the employment is fixed for a specific project
or undertaking the completion or termination of which has been determined at the time
of the engagement of the employee (LABOR CODE, Art. 295).
Q: What is the principal test in determining whether particular employees are

project employees?
ANS: The principal test is whether the project employees were assigned to carry out a
specific project or undertaking, the duration and scope of which were specified at the lime

lOMoARcPSD|11893536
the employees were engaged for that project (ALU-TUCP v. NLRC, G.R. No. 109902,
August 2, 1994).
Q: What is a project in the context of project employment?

ANS: A project could refer to two distinguishable types of activities:
1. A particular job or undertaking that is within the regular or usual business of
the employer company, but which is distinct and separate, and identifiable
as such, from the other undertakings of the company. Such job or undertaking
begins and ends at determined or determinable times; or
2. A particular job or undertaking that is not within the regular business of the
corporation. Such job or undertaking must also be identifiably separate and
distinct from the ordinary or regular business operations of the employer. The
job or undertaking also begins and ends at determined or determinable times
(ALU-TUCP v. NLRC, G.R. No. 109902, August 2, 1994).
Q: Who are non-project employees?

ANS: Non-project employees are employees in the construction industry employed
without reference to any particular construction project or phase of a project (D.0. No. 19-
93, Sec. 2. 1).
Q: What is a seasonal employment?

ANS: A seasonal employment is one where the work or services to be performed are
seasonal in nature and the employment is for the duration of the season (LABOR CODE,
Art. 295). It is an employment arrangement where an employee is engaged to work during
a particular season on an activity that is usually necessary or desirable in the usual
business or trade of the employer (Universal Robina Sugar Milting Corp., v. Acibo, G.R.
No. 186439, January 15, 2014).
Q: What are the conditions for an employee to be considered a seasonal

employee?
ANS: To exclude the asserted "seasonal'' employee from those classified as regular
employees, the employer must show that:
1. The employee must be performing work or services that are seasonal in
nature; and
2. He had been employed for the duration of the season (Universal Robina
Sugar Milling Corporation v. Acibo, G.R. No. 186439, January 15, 2014).
Q: When can a seasonal employee become a regular employee?

ANS: A seasonal employee can become a regular employee when an employee is
engaged in work or services seasonal in nature and the employment is for more than
one season (Hacienda Fatima v. National Federation of Sugarcane Workers, G.R. No.
149440, January 28, 2003). Moreover, the primary standard, therefore, of determining
regular employment is the reasonable connection between the particular activity
performed by the employee in relation to the usual trade or business of the employer, i.e.,
whether the former is usually necessary or desirable in the usual trade or business of the
employer (Abasolo v. NLRC, G.R. No. 118745, November 29, 2000).
Q: Since the work of regular seasonal employees are seasonal in nature, what
happens to their employment during off-season?
ANS: The nature of their relationship with the employer is such that during off-season,
they are temporarily laid off but during the season they are reemployed or when their
services are needed. They are not, strictly speaking, separated from the service but are
merely considered as on leave of absence without pay until they are reemployed. Their
employment relationship is never severed but only suspended (Gapayao v. Fu/a, G.R.
No. 193493, June 13, 2013).

lOMoARcPSD|11893536
BEDAN RED BOOK

Q: Define fixed-term employment.

ANS: It is a contract of employment for a definite period that terminates by its own terms
at the end of such period (Brent School v. Zamora, G.R. No. L-48494, February 5, 1990).
Q: When is there a valid fixed-term employment?

ANS: There is a valid fixed-term employment when the following requisites are present:
1. The fixed period of employment was knowingly and voluntarily agreed upon
by the parties without any force, duress, or improper pressure being brought
to bear upon the employee and absent any other circumstances vitiating his
consent; or
2. It satisfactorily appears that the employer and the employee dealt with each
other on more or less equal terms with no moral dominance exercised by
the former on the latter (Labayog v. M. Y. San Biscuits, G.R. No. 148102, July
11, 2006).
Q: When may a fixed-term employee become a regular employee?

ANS: A fixed-term employee may become a regular employee when:
1. The employees were allowed to work beyond the fixed-term employment
without the benefit of a new employment (Viernes v. NLRC, G.R. No. 108405,
April 4, 2003); and
2. In case of successive renewals of fixed -period contracts and there is
reasonable connection between the particular activity performed by the
employees in relation to the usual business or trade of the employer (Philips
Semicondw:;torsPHL /he., v. Fadriquefa, G.R: No. 141717, April 14, 2004).
Q: What is the Work Pool principle?

ANS: Members of a wofk pool from which a construction company draws its project
employees, if considered employees of the construction company while in the work pool
are non-project employees or employees for an indefinite period. If they are employed in
a particular project, the cQmpletion of the project or of any phase• thereof will not mean
severance of employer-employee relationship. However, ifthe workers in the work pool
are free to leave anytime and offer their services to other employers then they are project
employees employed by a construction company in a particular project or in a phase
thereof (Raycor Aircontrol Systems, Inc., v. NLRC, G.R. No. 114290, September9,
1996).
Q: When can a project employee who is a member of a work pool acquire the status
of a regular employee?
ANS: A project employee or a member of a work pool may acquire the status of a regular
employee when the following concur:
1. There is a continuous rehiring of project employees for the same task or
nature of tasks even after cessation of a project; and
2. The tasks performed by the alleged project employee are vital, necessary and
indispensable to the usual business or trade of the employer (Maraguinot v.
NLRC, G.R. No. 120969, January 22, 1998).
Note: The "no work no pay" principle applies during the interval between the end of a
project and the start of a new one.
legitimate Subcontracting vs. labor-On(v Contracting

Q: What is Contracting?
ANS: Contracting or subcontracting refers to an arrangement whereby a principal
agrees to farm out to a contractor the performance or completion of a specific job or
work within a definite or predetermined period, regardless of whether such job or work is
to be performed or completed within or outside the premises of the principal (0.0. No.

lOMoARcPSD|11893536
174-17, Sec. 3(c)).
Q: Who is a Contractor?
ANS: A contractor refers to any person or entity engaged in a legitimate contracting or
subcontracting arrangement providing services for a specific job or undertaking farmed
out by principal under an agreement (0. 0. No. 174-17, Sec. 3(d)).
Q: What are the elements of a legitimate contracting or subcontracting? (DC-FR)

ANS: The contracting or subcontracting shall only be allowed if all of the following
circumstances concur:
1. The contractor or subcontractor is engaged in a Qistinct and independent
business and undertakes to perform the job or work on its own responsibility
according to its own method;
2. The contractor or subcontractor has substantial _£apital to carry out the job
farmed out by the principal on his account, manner and method, investment
in the form of tools, equipment, machinery and supervision;
3. In performing the work farmed out, the contractor or subcontractor is free
from control and/or discretion of the principal in all matters connected with the
performance of the work except;as to the result thereto; and
4. The service agreement ensurei compliance with all the ,Bights and benefits
for all the employees of the cori}l'actor or subcontractor under the labor laws
(0.0. No. 174-17, Sec. 8). ··
Q: What is considered "substantial ca~itatn- \~rpose of compliance in

legitimate contracting? ·
ANS: Substantial capital refers to paid:.up capital stocl\slshares of at least
fl>5,000,000.00 in case of corporations, partnerships and cqoperatives; or net worth of at
least fit5,000,000.00 in the case of single pr9J>rietorship (Q.O)No:.174-17, Sec. 3(/)).
~.
Q: What is the concept of "Trilateral Relati6nship'.''.?,,'.

ANS: Trilateral relationship refers to the rel.lJtionship'~:lf ,:jQfpgor subcontracting
arrangement where there is a contract for jil'.:Specific job,· '('orservice between the
principal and the contractor, and a contract ofemployment between the contractor and its
workers (0.0. No. 18-A, Sec. 3(m)). ·
Q: Who are the parties involved in a "Trilateral Relatloriship"?

ANS: The parties involved in a trilateral relationship are:
1. Principal - one who decides to farm out a job, work, or service to a
contractor;
2. Contractor - one who has the capacity to independently undertake the
performance of the job; and
3. Contractual workers - one engaged by the contractor to accomplish the job,
work, or service (0.0. No. 18-A, Sec. 3(m)).
Q: What are the contracts required in a "Trilateral Relationship"?

ANS: The contracts required in a trilateral relationship are:
1. Employment contract between the contractor/subcontractor and its
employees; and
2. Service Agreement between the principal and the contractor (0.0. No. 174-
17, Sec. 11).
Q: What is labor-only contracting?

ANS: Labor-only contracting refers to an arrangement where the contractor or
subcontractor recruits, supplies, or places workers to perform a job or work for a principal,
any of the two elements hereunder is present:

lOMoARcPSD|11893536
1. The contractor or subcontractor:

a. Does not have either substantial capital OR investments in the form of
tools, equipment, machineries, supervision, work premises, among
others;
b. AND the employees recruited and placed are performing activities which
are directly related to the main business operation of the principal; or
2. The contractor or subcontractor does not exercise the right to control over the
performance of the work of the employee (0.0. No. 174, Secs. 3.5 & 5).
NOTE: There is labor-only contracting even if only one of the two elements above is
present (Coca-Co/a Bottlers Phils., Inc., v. Agito, G.R. No. 179546, February 13, 2009).
Labor-only contracting is legally wrong and prohibited because it is an attempt to evade
the obligations of an employer (1 Azucena, p. 307).
Q: What is the rule regarding the liability of the parties in legitimate subcontracting
and labor-only contracting?
ANS: As to legitimate contracting, there exists a solidary liability on the part of the
principal and the contractor for purposes of enforcing the provisions of the Labor Code
and other social legislations, to the extent of the work performed in the employment
contract in the event of (a) a violation of any provision of the Labor Code; or (b) failure to
pay wages (0.0. No. 174-17, Sec. 9). On the other hand, in labor-only contracting, the
principal becomes solidarily liable with the contractor not only for unpaid wages but also
for all rightful claims of the employees under the Labor Code and ancillary laws (SMC v.
MAERC Integrated Services, Inc., G.R. No. 144672, July 10, 2003).
Q: What are the differences between subcontracting and labor-only contracting?

ANS: The following are the differences:
Subcontracting/
Labor-Only Contracting
Job Contracting
As to nature The employer or principal is employer/ principal is
of employer/ merely an indirect employer, by treated as direct employer of the
principal operation of law, of his contractor's employees in all
contractor's employees (PC/ instances (contractor is deemed
Automation Center, Inc., v. NLRC, agent of the employer) (Manila
G.R. No. 115920 January 29, Water Company v. Pena G.R.
1996) No. 158255, July 8, 2004)
Asto law creates an Er-Ee The statute creates an Er-Ee
existence of relationship for a limited purpose, relationship for a comprehensive
Er-Ee (i.e. to ensure that the employees purpose, (i.e. to prevent a
relationship are paid their wages) (SMC v. circumvention of labor laws)
with MAERC Integrated Services, Inc., (SMC v. MAERC Integrated
employer/ G.R. No. 144672, July 10, 2003) Services, Inc., G.R. No. 144672,
principal July 10, 2003)
Asto The principal becomes solidarily The principal becomes solidarily
liability of liable with the contractor in the liable with the contractor not only
the principal event the latter fails to pay the for unpaid wages but also for all
employees' wages and for the rightful claims of the
violation of labor standard laws. employees under the Labor
But the liability does not extend to Code and ancillary laws (SMC v.
the payment of backwages or MAERC Integrated Services,
separation pay of employees who Inc., G.R. No. 144672, July 10,
are illegally dismissed (Rosewood 2003)
Processing v. NLRC, G.R. No.
116476-84, May 21, 1998)

lOMoARcPSD|11893536
There is a presence of substantial There is an absence of

capital or investment. substantial capital or investment.
B. TERMINATION
BY EMPLOYER
Substantive Due Process
Q: What are the aspects of the two-fold due process requirement in the termination
of an employee?
ANS: The two-fold aspects of due pro~ss requirement in the termination by an
employer of an employee are:
1. Substantive aspect, by which the dismissal must be for any of the:
a. Just causes; or
b. Authorized causes; and
,of
2. Procedural aspect, rudimentary requif1:1J)1epts due process, notice and
hearing must be observed (Bughaw, Jr. v. treasure Island Industrial Corp.,
G.R. No. 173151, (March 28, 2008).
Q: What are the just causes for the termination of employment? (SeW-NA-FAC)
ANS: The following are the just causes for the termination of employment by the
employer:
1. Serious misconduct
2. Insubordination or Willful disobedience by the employee of the lawfulorder
of his employer or representative in connection with his work;
3. Gross and habitual H,eglect by the employee of his duties;
4. Abandonment of Work; ·
5. fraud or willful breach by the employee of the trust reposed in him by his
employer or his duly authorized representative;
6. Commission of a Qrime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
representative; and
7. Other causes Analogous to the foregoing (LABOR CODE, Art. 297).
Q: What is serious misconduct?

ANS: Misconduct is defined as the transgression of some established and definite rule
of action, a forbidden act, a dereliction of duty, willful in character, and implies wrongful
intent and not mere error in judgment (0.0. No. 147-15, Sec. 4(o)). In order for such to
be considered serious, the misconduct must be of such grave and aggravated character,
and not merely trivial or unimportant (Philippine National Bank v. Velasco, G.R. No.
166096, September 11, 2008). Such misconduct, however serious, must nevertheless be
in connection with the employee's work to constitute just cause for his separation
(Department of Labor Manual, Sec. 4343.01).
Q: When may serious misconduct be a just cause for termination of employment?

(MADU)
ANS: For serious misconduct to be a just cause for termination of employment, the
following must be present:

lOMoARcPSD|11893536
1. There must be _Misconduct;

2. The misconduct must be of such grave and Aggravated character;
3. It must relate to the performance of employee's Quties; and
4. There must be showing that the employee becomes .Y,nfitto continue working
for the employer (0. 0. No. 147-15, Sec. 5.2(a))
Q: What is insubordination?
ANS: Insubordination refers to the refusal to obey some order, which a superior is
entitled to give and have obeyed. It is a willful or intentional disregard of the lawful and
reasonable instructions of the employer (0.0. No. 147-15, Sec. 4(/)).
Q: What are the requisites of willful disobedience or insubordination? (Wi-Re)

ANS: For willful disobedience or insubordination to be a valid cause for termination of
employment, the following must be present:
1. The employee's assailed conduct must have been Willful or intentional, the
willfulness being characterized by a wrongful and reversed attitude; and
2. The order violated must be based on a Reasonable and lawful company rule,
regulation or policy and made known to the employee and must pertain to the
duties for which he has been engaged to discharge (The Coffee Bean and
Tea Leaf Philippines v. Arena, G.R. No. 208908, March 11, 2015).
Q: What is gross and habitual neglect?

ANS: Gross neglect is the absence of that diligence that an ordinarily prudent man would
use in his/her own affairs (D. 0. No. 147-15, Sec. 40)). On the other hand, habitual neglect
is repeated failure to perform one's duties over a period of time depending upon the
circumstances (D.O. No. 147-15, Sec. 4(k)). The neglect of duties must not only be gross,
but also habitual (Cavite Apparel v. Marquez, G.R. No. 170244, February 6, 2013).
Q: What are the requisites of gross and habitual neglect of duties?

ANS: For gross and habitual neglect of duties to be a just cause for termination of
1. There must be negligence which is gross and/Or habitual in character; and
2. It must be work-related as would make him unfit to work for his employer
Q: How can an unsatisfactory rating be a just ca.use for dismissal?

ANS: An unsatisfactory rating can be a just cause for dismissal only if it amounts to gross
and habitual neglect of duties. Poor or unsatisfactory performance of an employeedoes
not necessarily mean that he is guilty of gross and habitual neglect of duties (INC
Shipmanagement, Inc., v. Camporedondo, G.R. No. 199931, September 7, 2015).
Q: What is fraud and willful breach of trust?

ANS: Fraud refers to any act, omission, or concealment which involves a breach of legal
duty, trust, or confidence justly reposed, and is injurious to another (D.O. No. 147- 15,
Sec. 4(i)). A breach of trust is willful when it is done intentionally, knowingly and purposely,
without justifiable excuse. The breach must be work-related and committed against the
employer or his representative (Bluer than Blue Joint Ventures, Co. v. Esteban, G.R. No.
192582, April 7, 2014).
Q: When may fraud or willful breach of duty be a just cause for termination of
employment? (ABEC)
ANS: For fraud or willful breach of trust to be a just cause for termination of
1. There must be an Act, omission, or concealment;

lOMoARcPSD|11893536
2. The act, omission or concealment involves a !!reach of legal duty, trust, or

confidence justly reposed;
3. It must be committed against the _smployer or his/her representative; and
4. It must be in ~onnection with the employees' work (0.0. No. 147-15, Sec
5.2(d)).
Q: When is there loss of confidence?

ANS: Loss of confidence refers to a condition arising from fraud or willful breach of
trust reposed in him/her by his/her employer or his/her duly authorized representative
(0.0. No. 147-15, Sec. 4(n)). There is loss of confidence when the employer has
reasonable ground or has some basis to believe that the employee is responsible for the
misconduct and the nature of his participation renders him unworthy of the trust and
confidence demanded by his position. Proof beyond reasonable doubt is not required
(Jerusalem v. Keppel Monte Bank, G.R. No. 169564, April 6, 2011).
Q: When may loss of confidence be a just cause for termination of employment?

(ALPS 2 -A)
ANS: For loss of confidence to be a just cause for termination of employment, the
following must be present:
1. There must be an Act, omission, or concealment;
2. The act, omission or concealment justifies the _bossof trust and confidence of
the employer to the employee;
3. The employee concerned most be holding a f_osition of trust and
confidence;
4. The loss of trust and confidence should not be ~imulated;
5. It should not be used as a _§ubterfuge for causes which are improper, illegal,
or unjustified; and
6. It must be genuine and not a mere Afterthought to justify an earlier action
taken in bad faith (0.0. No. 147~15, Sec. 5.2{e)).
Q: Who are considered employees hold in$! position of, trust .md confidence?
ANS: Employees holding positions of trust and confidence are classified into the
following:
1. Managerial employees - those vestedwith power to lay down management
policies; . ·
2. Supervisorial employees - those who, in the interest of the employer,
effectively recommend such managerial actions the exercise of which is not
merely routinary or clerical in nature but requires the use of independent
judgment; and
3. Those who, in the normal and routine exercise of their functions, regularly
handle significant amounts of money or property (0.0. No. 147-15, Sec. 4(n);
Wesleyan University-Philippines v. Reyes, GR. No. 206321, July 30, 2014).
Q: When may the commission of crime or offense be a just cause for termination
of employment?
ANS: For commission of a crime or offense to be a just cause for termination of
1. There must be an act or omission punishable/prohibited by law; and
2. That act or omission as committed by the employee against any of the
following persons:
a. His employer;
b. Any immediate member of his employer's family; or
c. His employer's duly authorized representative (0.0. No. 147-15,
Sec.2(f)).

lOMoARcPSD|11893536
Q: Is conviction or acquittal of an employee in a criminal case required for

dismissal from employment based on commission of a crime or offense?
ANS: No. The conviction of an employee in a criminal case is not indispensable to
warrant his dismissal by his employer and that the fact that a criminal complaint against
the employee has been dropped by the city fiscal is not binding and conclusive upon the
labor tribunal (Starlite Plastic Industrial Corp. v. NLRC, G.R. No. 78491, March 16, 1989).
Q: What constitutes analogous cases of just causes for termination of

employment?
ANS: Analogous cases must be due to voluntary and/or willful act or omission of the
employee (Nadura v. Banguet Consolidated, G.R. No. L-17780, August 24, 1962). No act
or omission shall be considered as analogous cause unless expressly specified in the
company rules and regulations or policies (0.0. No. 147-15, Sec. 5.2(g)).
Q: What is Doctrine of Incompatibility?

ANS: Under the doctrine of incompatibility, where the employee has done something
that is contrary or incompatible with the faithful performance of his duties, his employer
has a just cause for terminating his employment (Manila Chauffers League v. Bachrach
Motor Co., G.R. No. L-47138, June 17, 1940).
Q: What are the authorized causes for the termination of employment? (IRR-CD)
ANS: The following are the authorized causes for the termination of employment:
1. !nstallation of labor-saving device or automation;
2. Redundancy;
3. B.etrenchmentto prevent losses (Downsizing);
4. ~losure or cessation of operation of the establishment or undertaking
(LABOR CODE, Art. 298); and
• 5. .Qisease (LABOR CODE, Art. 299).
Q: What is installation of labor-saving device?

ANS: Installation of labor~saving device is a reduction of the number of workers in any
workplace made necessary by the introduction of labor-saving machinery or devices (D. 0.
No. 147-15, Sec. 4(m)).
Q: When may installation of labor-saving devtce be a valid ground for termination

of employment?
ANS: For installation of labor-saving device to be a valid ground for termination of
1. There is good faith in effecting the termination;
2. The termination is a matter of last resort, there being no other option available
to the employer after resorting to cost-cutting measures;
3. Two separate written notices are served on both the affected employee and
the DOLE at least 1 month prior to the intended date of termination;
4. That separation pay is paid to the affected employee, which is equivalent to
1 month pay or at least 1 month pay for every year of service, whichever is
higher, a fraction of at least 6 months shall be considered as 1 whole year;
5. Fair and reasonable criteria in ascertaining what positions are to be affected
by the termination; and
6. The purpose for such installation of labor saving devices/s must be valid (0. 0.
No. 147-15, Sec. 5.4(a)).
Q: What is redundancy?
ANS: Redundancy is a condition when the services of an employee are in excess of
what is reasonably demanded by the actual requirements of the enterprise or superfluous
(0.0. No. 147-15, Sec. 4(q)). A position is redundant where it is superfluous, and

lOMoARcPSD|11893536
superfluity of position/s may be the outcome of a number of factors such as over hiring of
employees, decreased volume of business, or dropping of a particular product line or
service activity previously manufactured or undertaken by the enterprise (Coats Manila
Bay, Inc., v. Ortega, G.R. No. 172628, February 13, 2009).
Q: When may redundancy be a valid ground for termination of employment?

(SEA-FA)
ANS: For redundancy to be a valid ground for termination of employment, the following
must be present:
1. There must be §.uperfluous positions or services of employees;
2. The positions or services are in 5.xcess of what is reasonably demanded by
the actual requirements of the enterprise to operate in an economical and
efficient manner;
3. There must be good faith in Abolishing redundant positions;
4. There must be fair and reasonable criteria in selecting the employees to be
terminated; and
5. There must be an Adequate proof of redundancy such as but not limited to
the new staffing pattern, feasibility studies/proposal, on the viability of the
newly created positions, job description and the approval by the management
of the restructuring (0. 0. No. 147-15, Sec. 5.4(b))
Q: What is retrenchment?
ANS: Retrenchment is an economic grouncHor dismissing employees and is resorted to
primarily to avoid or minimize business losses (D.O, No, 147-15, Sec. 4(q)). Likewise,
retrenchment has been defined as the "termination of employment initiated by the
employer through no fault of the employees and without prejudice to the latter (Anabe v.
Asian Construction, G.R. No. 183233, Dece,nber 23, 2009).
Q: When may retrenchment be a valid ground for termination of employment?

(RSPAC)
ANS: For retrenchment to be a valid ground for terminatlqn of employment, the following
must be present: · ·
1. The retrenchment must be Beasonably necessary and likely to prevent
business losses;
2. The losses, if already incurred, are not merely de minimis, but §.ubstantial,
serious, actual, and real, or if only expected, are reasonably imminent;
3. The expected or actual losses must be froved by sufficient and convincing
evidence;
4. The retrenchment must be in good faith for the Advancement of its interest
and not to defeat or circumvent the employee's right to security of tenure; and
5. There must be fair and reasonable ~riteria in ascertaining who would be
dismissed and who would be retained among the employees (0.0. No. 147-
15, Sec. 5.4(c)).
Q: What is the "Last In, First Out" Rule?

ANS: Under the "Last In, First Out" rule, when there are 2 or more employees occupying
the same position in the company affected by the retrenchment program, the· 1ast one
employed will necessarily be the first one to go (Maya Farms Employees Organization v.
NLRC, G.R. No. 106256, December 28, 1994).
The "Last In, First Out" Rule shall apply in cases of installation of labor-saving devices,
redundancy, and retrenchment, except when an employee volunteers to be separated
from employment (D.O. No. 147-15, Sec. 5.4).

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Volume l • series of 2022
Q: Distinguish retrenchment from redundancy.

ANS: The differences between retrenchment and redundancy are as follows:
Retrenchment Redundancy
Asto Employer reduces the number When for purposes of economy, a

Purpose of its personnel in order to company decides to reorganize its
prevent further losses in his departments by imposing on
business operations (Caffco employees of one department the
International, Ltd., v. Office of duties performed by the employees
the Minister - Ministry of of the other department, thus
Labor, G.R. No. 76966, August rendering unnecessary the job of
7, 1992). the latter, the services of the
employees whose functions are
now being performed by the former
(Caffco International Ltd. v. Office
of the Minister - Ministry of Labor,
G.R. No. 76966, August 7, 1992).
As to Equivalent to 1 monthpayorat Equivalent to at least 1 month pay

Separation least 112 month pay for every or at least 1 month pay for every
Pay year of service, whichever is year of service, whichever is higher,
higher; a fraction of 6 months a fraction of 6 months is considered
is considered as -1 whole year as 1 whole year (LABOR CODE,
(LABOR CODE, Art 298). Art. 298).
Asto An act of employer of Even if the business is doing well,

Employer's dismissing employees an employer can still validly dismiss
Business because of losses in the an employee from the service due
Status operation 6f a business, lack of to redundancy if that employee's
work, and considerable position has already become in
reduction on the volume of his excess of what the employer's
business (Waterfront Cebu enterprise requires (Arabit v.
Hotel v. Jimenez, GR No. Jardine Pacific Finance, G.R. No.
174214, June 13, 2012). 181719, April 21, 2014).
Q: Define closure.
ANS: Closure is the complete or partial cessation of the operations and/or shutdown of
the establishment of the employer (D. 0. No. 147-15, Sec. 4(c)). It is carried out to starve
off the financial ruin or promote the business interest of the employer (Eastridge Golf Club
v. Eastridge Golf Club Inc., Labor Union-Super, G.R. No. 166760, August 2, 2008).
Q: When may closure be a valid ground for termination of employment? (CF-No)

ANS: For closure to be a valid ground for termination of employment, the following
must be present:
1. There must be a decision to £lose or cease operation of the enterprise by
the management;
2. The decision was made in good Eaith; and
3. There is No other option available to the employer except to close or cease
operations (D.O. No. 147-15, Sec. 5.4(d)).
Q: When may disease be a valid ground for termination of employment? (SPC)

ANS: For disease to be a valid ground for termination of employment, the following must
be present:
1. The employee must be §uffering from any disease;

lOMoARcPSD|11893536
2. The continued employment of the employee is prohibited by law or _frejudicial

to his/her health as well as to the health of his/her co-employees; and
3. There must be _g_ertificationby a competent public health authority that the
disease is incurable within a period of 6 months even with proper medical
treatment (D.O. No. 147-15, Sec. 5.4(e)).
Q: In case the disease or illness of the employee may be cured within 6

months, what is duty of the employer?
ANS: The employer shall not terminate the employee but shall ask the latter to take a
leave. Upon the restoration of the employee's normal health, the employer shall
immediately reinstate him to his former position (!RR of LABOR CODE, Book VI, Rule I,
Sec. 8).
Q: Distinguish authorized-cause dismissal from just-cause dismissal.

ANS: The following are the differences between authorized cause and just cause:
Authorized Cause Just Cause

Asto A form of terminating employer-employee The employee is
Nature relationship with a liability on the part of the dismissed for causes
employer to pay separation pay as which are
mandated by law. It does not necessarily attributable to his
imply delinquency or culpability on the part fault or culpability
of the employee. Instead, tn, dismi$$al (0.0. No. 147-15,
process is initiated bY the employer's Sec. 4(a)).
exercise of his management prerogative
such as installation of labor-saving devices,
closure of business or implementing a
retrenchment program (JAKA FoOd
Processing v. Pacot, G,R. No. 151378,
March 28, 2005).
As to 1. lf the ground is Automation and As a rule, a

Entitlement to Redundancy, the amount of dismissed employee
Separation separation pay is equivalent to at least is not entitled to
Pay 1 month payor at lea$f 1 m.onthpayfor separation pay
every year of service, whichever is (Claudia's Kitchen v.
higher, a fraction of 6 months is Tanguin, G.R. No.
considered as 1 whole year. 221096, June 28,
2. If the ground is Retrenchment, 2017).
Closure not due to serious business
losses, and Disease, the amount of
separation pay is equivalent to at least
1 month pay or at least 1/2 month pay
for every year of service, whichever is
higher, a fraction of 6 months is
considered as 1 whole year.
3. If the ground is Closure due to serious
business losses, there is no
separation pay (LABOR CODE, Art.
298-299).

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Procedural Due Process
Q: What is the Two-Notice Rule under Procedural Due Process in labor cases?
ANS: The Two-Notice Rule provides that in dismissing an employee, the employer has
the burden of proving that the former worker has been served two notices:
1. One to apprise him of the particular acts or omissions for which his dismissal
is sought; and
2. The other to inform him of his employer's decision to dismiss him (Tan v.
NLRC, G.R. No. 128290, November 24, 1998).
Note: The first notice must inform outright the employee that an investigation will be
conducted on the charges particularized therein which, if proven, will result to his
dismissal. Such notice must not only contain a plain statement of the charges of
malfeasance or misfeasance but must categorically state the effect on his employment if
the charges are proven to be true (Maquiling v. Philippine Tuberculosis Society, Inc., G.R.
No. 143484, February 4, 2005).
Q: What is the procedure to be followed after the first notice was given to the
employee?
ANS: After serving the first notice, the employer should afford the employee ample
opportunity to be heard and to defend himself/herself with the assistance of his/her
representative if he/she so desires. A formal hearing or conference becomes mandatory
only when requested by the employee in writing or substantial evidentiary disputes exist
or a company rule or practtce requires it, or when similar circumstances justify it (0. 0. No.
147-15, Sec. 5.1(b)).
Q: What are the requirements of due process on termination of employment based

on authorized causes?
ANS: The requirements of due process on termination of employment based on
authorized causes shall be deemed complied with upon service of a written notice to the
employee and the appropriate Regional Office of the DOLE at least 30 days before the
effectivity of the termination, specifying the ground or grounds for termination (0.0. No.
147-15, Sec. 5.3).
Q: What are the procedural rules on termination of employment due to disease?

ANS: The procedural rules on termination of employment due to disease are similar to
due process for just cause tetmination. Thus, the employer must furnish the employee
2 notices, namely:
1. The notice to apprise the employee of the ground for which his dismissal is
sought; and
2. The notice informing the employee of his dismissal, to be issued after the
employee has been given reasonable opportunity to answer and to be heard
on his defense (Oeoferio v. Intel Technology Philippines, G.R. No. 202996,
June 18, 2014).
Q: What are the rules in the interplay of substantial and procedural due process
requirement?
ANS: The dismissal is:
1. Legal if it was done observing both substantive and procedural due process
(Philippine Airlines v. NLRC, G.R. No. 115785, August 4, 2000);
2. Illegal if it was done without substantive due process although procedural
due process was observed (ACO Investigation Security Agency, Inc., v.
Oaquera, G.R. No. 147473, March 30, 2004);
3. Illegal if it was done without observance of both substantive and procedural
due process (Lambert Pawnbrokers and Jewelry Corp., v. Binamira, G.R. No.
170464, November 17, 2004); and

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4. Legal if it was done with substantive due process but without procedural due
process (Agabon v. NLRC, G.R. No. 158693, November 17, 2004).
Note: Where the dismissal is for a just cause, or an authorized cause, the lack of
procedural due process should not nullify the dismissal, or render it illegal or ineffectual.
However, the employer should indemnify the employee for the violation of his right to
procedural due process, in the form of nominal damages (Agabon v. NLRC, G.R. No.
158693, November 17, 2004).
Q: What is contractual due process rule?

ANS: The contractual due process rule applies in a situation where there is an existing
company policy enunciating the procedural due process that must be observed in
termination of employment, compliance alone with the statutory due process would not
suffice. Additionally, there must be compliance with the company-prescribed due process
procedure (Abbott Laboratories, Philippines v. Alcaraz, G.R. No. 192571, July 23, 2013).
Q: What are the consequences of failure to comply with contractual due process
rule?
ANS: The termination be considered legal but for lack of contractual due process, the
employer will be penalized with the payment bf indemnity in the form of nominal damages
(Abbott Laboratories, Philippines v. Alcaraz; (;.R. No. 192571, July 23, 2013).
Illegal Dismissal and Reliefs Therefrom·

Q: What happens if the termination was done'wittiout observing substantive due
process?
ANS: The employer shall not terminate the services of an employee except for a just
cause or cause authorized by law. Where there is no showing of clear, valid and legal
cause of termination, the law considers it a case of illegal dismissal (General Baptist
College v. NLRC, G.R. No. 85534, March 5,~!993).
Q: What are the reliefs available to an erfjployee uporif[ridh'lg·that he was illegally

dismissed? ··
ANS: An illegally dismissed employee is entitled to the following reliefs:
1. Reinstatement without loss of ~~n,iorltyrights and other privileges or
separation pay if no longer viable; arid ·
2. Full backwages, inclusive of allowances and other benefits or their monetary
equivalent computed from the lime his compensation was withheld from him
up to his actual reinstatement (LABOR CODE, Art. 279).
Q: What is reinstatement?
ANS: Reinstatement is a restoration to a state from which one has been removed or
separated (Reyes v. RP Guardians Security Agency, Inc., G.R. No. 193756, April 10,
2013).
Q: What are the forms and situations of reinstatement under the Labor Code?
ANS: The Labor Code grants the remedy of reinstatement in various forms and
situations, as follows:
1. Reinstatement of an employee whose dismissal is declared illegal by the
Labor Arbiter. This form of reinstatement is self-executory and must be
implemented during the pendency of the appeal instituted by the employer
(LABOR CODE, Art. 229);
2. Reinstatement as a result of suspension of the effects of termination by the
DOLE Secretary in the event of prima facie finding by the appropriate official
of the DOLE that the termination may cause a serious labor dispute or is in
implementation of a mass lay-off (LABOR CODE, Art. 229(b));

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3. Reinstatement as a relief to an employee whose dismissal is declared illegal

in a final and executory judgment (LABOR CODE, Art. 294); and
4. Reinstatement by the employer of its employees after resumption of its
operation after suspension of operation for a period not exceeding 6 months,
or after rendition by the employees of military or civic duty (LABOR CODE,
Art. 301).
Q: What are the kinds of reinstatement?

ANS: Reinstatement may be:
1. Actual reinstatement - The employee shall be admitted back to work; or
2. Payroll reinstatement - The employee is merely reinstated in the payroll
(University of Immaculate Concepcion v. Secretary of Labor, G.R. No.
151379, January 14, 2005).
Q: What is the remedy if the position previously occupied is already filled up?
ANS': If the position previously occupied by the dismissed employee has already been
filled up, it would be unjustified for the employer to dismiss the person hired to replace
the dismissed employee just to make available the position for the latter. Under the
circumstance, the proper remedy would be to reinstate him to a substantially equivalent
position (Magtoto v. NLRC, G.R. No. 63370, November 18, 1985).
Q: Define backwages.
ANS: Backwages, in general, are those granted on grounds of equity for earnings
which a worker or employee has lost due to his illegal dismissal (PAL v. NLRC, G.R. No.
55159, December 22, 1989).
Q: What are the components of backwages?

ANS: The components of backwages are the following:
1. Salaries or wages computed on the basis of wage rate !evel at the time of the
illegal dismissal (PLDTv. NLRC, G.R. No. 106947, February 11, 1999); and
2. Allowances and other benefits regularly granted to and received by the
employee such as:
a. Emergency living allowances and 13th month pay mandated under the
law (Espejo v. NLRC, G.R. No. 112678, Marr;h 29, 1996);
b. Fringe benefits or their monetary equivalent (Acesite Corporation v.
NLRC, G.R. No. 152308, January 26, 2005);
c. Transportation and emergency allowances (Santos v. NLRC, G.R. No.
76721, September 21, 1987);
d. Holiday pay, vacation, and sick leaves and service incentive leaves (St.
Louise College of Tuguegarao v. NLRC, G.R. No. 74214, August 31,
1989; Fernandez v. NLRC, G.R. No. 105892, January 28, 1998);
e. Just share in the service charge (Maranaw Hotels & Resort Corporation
v. NLRC, G.R. No. 123880, February 23, 1999);
f. Gasoline, car, and representation allowances (Consolidated Rural Bank
Inc., v. NLRC, G.R. No. 123810, January 20, 1999); and
g. Any other regular allowances and benefits or their monetary equivalent
(Blue Dairy Corporation v. NLRC, G.R. No. 129843, September 14,
1999).
Q: What is the reckoning period in computing backwages entitled to an illegally

dismissed employee?
ANS: The backwages entitled to an illegally dismissed employee shall be computed from
the time his compensation was withheld from him which, as a rule, is from the time of his
illegal dismissal up to the time of his actual reinstatement (Philippine Journalists Inc., v.
Mosqueda, G.R. No. 141430, May 7, 2004). If reinstatement is no longer possible, the

lOMoARcPSD|11893536
backwages shall be computed from the lime of their illegal termination up to the finality of
the decision (Buenviaje v. CA, G.R. No. 147806, November 12, 2002).
Q: Who are entitled to separation pay? (IRR-CD)

ANS: Separation pay shall be paid by the employer to an employee terminated due to:
1. !nstallation of labor-saving devices;
2. Redundancy;
3. ,Betrenchment;
4. _g_losureor cessation of operations not due to serious business losses or
financial reverses; and
5. Q.isease (0.0 147-15, Sec. 5.5).
Q: What is separation pay in lieu of reinstatement?

ANS: Separation pay in lieu of reinstatement is enunciated in jurisprudence in the
event that actual reinstatement is not possible or feasible (Capili v. NLRC, G.R. No.
117378, March 26, 1997).
Q: What are the instances where separation pay in lieu of reinstatement should be
awarded?
ANS: Separation pay in lieu of reinstatement should be awarded in the following
instances:
1. When the Doctrine of Strained Relations is applicable;
2. When reinstatement proves impossible, impracticable, not feasible, or
unwarranted for varied reasons and thus hardly in the best interest of the
parties; ·
3. Where the employee decides not to be reinstated as when he does not pray
for reinstatement in his complaint or position paper but asked for separation
pay instead (F.F. Marine Corporation v. Second Division, NLRC, G.R. No.
152039, April 8, 2005);
4. When reinstatement is rendered moot and academic due to supervening
events, such as death of the illegally dlsmissed employee, declaration of
insolvency of the employer, fire resulting in total destruction of the
employer's establishment or when the employer has closed or ceased
operations (Price v. /nnodata Phi/s., Inc., G.R. No. 178505, September 30,
2008);
5. To prevent delay in the execution of the decision to the prejudice of private
respondent (Sea/and Service, Inc., v. NLRC, G.R. No. 90500, October 5,
1990); and
6. Other circumstances such as when reinstatement is inimical to the employer's
interest, reinstatement does not serve the best interest of the parties involved,
or that it will not serve any prudent purpose as when supervening facts
transpired which made execution unjust or inequitable (San Miguel
Corporation v. Deputy Minister of Labor and Employment, G.R. No. L-58927,
October 27, 1986; Century Textile Mills, Inc., v. NLRC, GR.No. 77859, May
25, 1988; Sea/and Service, Inc., v. NLRC, G.R. No. 90500, Octobers, 1990).
Q: What is the salary rate to be used in computing separation pay in lieu of

reinstatement?
ANS: The salary rate prevailing at the end of the period of putative service should be the
basis for computation which refers to the period of imputed service for which the employee
is entitled to backwages (Masagana Concrete Products v. NLRC, G.R. No. 106916,
September 3, 1999).

lOMoARcPSD|11893536
Q: What are the rules on reinstatement of an illegally dismissed employee under

the NLRC rules?
ANS: The decision of the Labor Arbiter includes an order of reinstatement and shall
contain a statement that the reinstatement aspect is immediately executory, and directive
for the employer to report the compliance within 10 calendar days from receipt of the said
decision (2011 NLRC RULES OF PROCEDURE, Rule V, Sec. 19, as amended).
In case the decision includes an order of reinstatement and the employer disobeys the
directive or refuses to reinstate the dismissed employee, the Labor Arbiter shall
immediately issue a writ of execution even pending appeal directing the employer to
immediately reinstate the dismissed employee either physically or in the payroll (2011
NLRC RULES OF PROCEDURE, Rule XI, Sec. 12, as amended).
Q: What is the Doctrine of Strained Relations?

ANS: Under the circumstances where the relationship of employer to employee is so
strained and ruptured as to preclude a harmonious working relationship should
reinstatement of the employee be decreed, the latter should be afforded the right to
separation pay so that he can be spared the agony of having to work anew with the
employer under an atmosphere of antipathy and antagonism and the employer does not
have to endure the continued services of the employee in whom it has lost confidence
(Esma/in v. NLRC, G.R. No. L-67880, September 15, 1989).
Q: What are the consequences of the Violation of Worker's Security of Tenure?

(BaReD)
ANS: The consequences of the Violation of Worker's Security of Tenure are:
1. Full Backwages, inclusive of allowances and other,benefits or their monetary
equivalent computed from the time his compensation was withheld from him
up to the time of his actual reinstatement;
2. Reinstatement without loss of seniority rights and othet privileges; and
3. Recovery . of moral· and exemplary Q.amages and attorney's fees
(ALCANTARA, supra at 599).
Q: What are the penalties imposed upon the employer for failure to observe
procedural process?
ANS: In cases of termination for just causes, the employee is entitled to payment of
indemnity or nominal damages in a sum not more than P30,000.00 (Agabon v. NLRC,
G.R. No. 158693, November 17, 2004).
In cases of termination for authorized causes, the employee is entitled to PS0,000.00

(JAKA Food Processing v. Pacot, G.R. No. 151378, March 28, 2005).
If the authorized cause is due to losses, the penalty to the employer who disregarded
due process may be lighter than if the authorized cause has no relation to losses
(Industrial Timber Corp., v. Agabon, G.R. No. 164518, March 30, 2006).
Q: What are the two concepts of attorney's fees?

ANS: In some labor cases, attorney's fees are awarded to employees. There are two
commonly accepted concepts of attorney's fees:
1. Ordinary Concept - an attorney's fee is the reasonable compensation paid
by the client to his lawyer in exchange for the legal services rendered by the
latter. The compensation is paid for the cost and/or results of the legal
services, as agreed upon by the parties or as may be assessed by the courts;
and
2. Extraordinary Concept - attorney's fee is deemed an indemnity for damages
ordered by the court to be paid by the losing party to the winning party. In

lOMoARcPSD|11893536
labor cases, attorney's fees partake of the nature of an extraordinary award

granted to the victorious party as an indemnity for damages. As a general
rule, it is payable to the client, not to his counsel, unless the former agreed to
give the amount to the latter as an addition to, or part of the counsel's
compensation (Alva v. High Capacity Security Force, Inc., G.R. No. 203328,
November 8, 2017).
Note: Article 111 of the Labor Code sanctions the award of attorney's fees in cases of the
unlawful withholding of wages, wherein the culpable party may be assessed attorney's
fees equivalent to 10% of the amount of wages recovered. The amount of attorney's fees
shall not exceed 10% of the total monetary award, and the fees may be deducted from
the amount due the winning party (id.).
Q: Does the availment of the free legal services offered by the Public Attorney's
Office (PAO) prevent the award of attorney's fees to employees?
ANS: No. The Supreme Court held that the employees are entitled to attorney's fees,
notwithstanding their availment of the free legal services offered by the PAO. The amount
of attorney's fees shall be awarded to the PAO as a token recompense to them for their
provision of free legal services to litigants who have no means of hiring a private lawyer.
The costs of the suit, attorney's fees and contingent fees imposed upon the adversary of
the PAO clients after a successful litigation shall be deposited in the National Treasury as
trust fund and shall be disbursed for special allpwances of authorized officials and lawyers
of the PAO (Our Haus Realty Development Corporation v. Parian, G.R. No. 204651,
August 6, 2014).
Q: What is the rule with regards to the liability of corporate officers in illegal
dismissal cases?
ANS: As a general rule, corporations are treated as separate and distinct legal entities
from the natural persons composing them. In the absence of gross negligence, bad faith,
or a specific provision of law making a corporate officer liable, such corporate officer
cannot be made personally liable for corporate liabilities.
To hold a director or officer personally liable for corporate obligation is the exception and
it only occurs when the following requisites are present:
1. The complaint must allege that the dirtl)ct9ror officer assented to the patently
unlawful acts of the corporation; or that the director or officer was guilty of
gross negligence or bad faith; and
2. There must be proof that the director or officer acted in bad faith (Lozada v.
Mendoza, G. R. No. 196134, October 12, 2016).
Q: Who has the burden of proof in cases of illegal dismissal?

ANS: In illegal dismissal cases, the burden of proof is on the employer in proving the
validity of dismissal. However, the fact of dismissal, if disputed, must be duly proven by
the complainant. The rule is that the one who alleges a fact has the burden of proving it
(/ta/karat 18, Inc., v. Gerasmio, G.R. No. 221411, September 28, 2020).
C. TERMINATIONBYEMPLOYEE
Q: How may an employee terminate his employment?

ANS: An employee may terminate his employment by:
1. Serving notice on the employer at least 1 month in advance (without just
cause): or
2. Put to end to his employment without serving any notice on the employer for
any of the following just causes (with just cause), to wit: (SICO)
a. ~erious insult by the employer or his representative on the honor and
person of the employee;

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b. !nhuman and unbearable treatment accorded the employee by the

employer or his representative;
c. ~ommission of a crime or offense by the employer or his representative
against the person of the employee or any of the immediate members
of his family; and
d. Qther causes analogous to any of the foregoing (LABOR CODE, Art.
300).
Q: What is resignation?
ANS: Resignation is defined as the voluntary act of an employee who finds himself in a
situation where he believes that personal reasons cannot be sacrificed in favor of the
exigency of the service so much that he has no other choice but to dissociate himself from
his employment (Gan v. Galdema Philippines, G.R. No. 177167, January 17, 2013).
Q: What are the requisites of a valid resignation?

ANS: Resignation must show the concurrence of two things, to wit:
1. Intention of relinquishing an office; and
2. Accompanied by the act of abandonment (Grande v. Philippine Nautical
Training College, G.R. No. 213137, March 1, 2017).
Q: May a resignation be withdrawn?

ANS: Yes. Resignation is withdrawabte even if the employee has called it irrevocable
(Custodio v. Ministry of Labor and Employment, G.R. No. 643174, July 19, 1990).
However, once an employee resigns and his resignation is accepted, he no longer has
any right to the job (lntertrod Maritime, Inc., v. NLRC, G.R. No. 81087, June 19, 1991).
Q: When is there constructive dismissal?

ANS: There is constructive dismissal when any or all of the following circumstances
exist/s:
1. When continued employment is rendered impossible, unreasonable, or
unlikely;
2. When there is a demotion in rank and/or diminution in pay (Philippine Japan
Active Carbon Corporation, G.R. No. 83239, March 8, 1989);
3. When a clear discrimination, insensibility, or disdain by an employer becomes
unbearable to the employee that it could foreclose any choice by him except
to forego his continued employment; or
4. When the suspension went beyond the maximum period allowed by law
(Hyatt Taxi Services, Inc., v. Catinoy, G.R. No. 143204, June 26, 2001).
Q: What is the test of constructive dismissal?

ANS: The test of constructive dismissal is whether a reasonable person in the
employee's position would have felt compelled to give up his position under the
circumstances (McMer Corporation, Inc., v. NLRC, G.R. No. 193421, June 4, 2014).
Q: Who has the burden of proof in proving constructive dismissal?

ANS: In constructive dismissal cases, the employee has the burden to prove first the fact
of dismissal by substantial evidence. Only then when the dismissal is established that the
burden shifts to the employer to prove that the dismissal was for just and/or authorized
cause (Galang v. Boie Takeda Chemicals, Inc., G.R. No. 183934, July 20, 2016).
Resignation versus Constructive Dismissal
Q: Distinguish voluntary resignation from constructive dismissal.

ANS: The differences between voluntary resignation and constructive dismissal are as
follows:

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Voluntary Resignation Constructive Dismissal

Asto Voluntary resignation is the act Constructive dismissal is an act of
Nature of an employee, who finds clear discrimination, insensibility, or
himself in a situation in which disdain by an Employer that
he believes that personal becomes so unbearable on the part
reasons cannot be sacrificed of the employee that it could
in favor of the exigency of the foreclose any choice by him except
service thus, he has no choice to forego his continued employment
but to dissociate himself from (Hyatt Taxi Services v. Catinoy, G.R.
his employment (lntertrod No. 143204, June 26, 2001).
Maritime, Inc., v. NLRC, G.R.
No. 81087, June 19, 1991).
As to Test Important for voluntary The test of constructive dismissal is
of Validity resignation to be valid is that whether a reasonable person in the
the employee's intent to employee's position would have
relinquish must concur with the compelled to give up his position
overt act of relinquishment under the circumstances (McMer
(Doble v. ABB, Inc., G.R. No. Corp. Inc., v. NLRC, G.R. No.
215627, June 5, 2017). 193421, June 4, 2014).
Asto An employee who voluntarily Entitled to reinstatement without loss
Entitlement resigns is not entitled.•. to . of seniority and payment of
to Relief separation pay unless . baokwage~ (Pido V. NLRC, G.R. No.
stipulated in an employment 169812, February 23, 2007).
contract or CBA or sanctioned
by established employer
practice or policy (Travelaire &
Tours Corp. v. NLRC, G.R.'No.
131523, August 20, 1998).
Abandonment
Q: What constitutes abandonment of work? ..
ANS: Abandonment of work is a form of neg\$dtqf duty. Jo constitute abandonment, 2
elements must concur, namely:
1. The employee must have failed to report for work or must have been absent
without valid or justifiable reason; and
2. There must have been a clear intention on the part of the employee to sever
the employer-employee relationship manifested by some overt act (CRC
Agricultural Trading v. NLRC, G.R. No. 177664, December 23, 2009).
Q: What is due process in abandonment?

ANS: The requisites for due process in abandonment are:
1. First Notice to apprise the employee of the particular acts or omissions for
which his dismissal is sought;
2. Second notice to inform him of the employer's decision to dismiss him on the
ground of abandonment (Kingsize Manufacturing Corp. v. NLRC, G.R. Nos
110452-54, November 24, 1994).
Note: Notices in abandonment cases must be sent to employee's last known address
(Agabon v. NLRC, G.R. No. 158693, November 17, 2004).

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D. PREVENTIVESUSPENSION
Q: What is preventive suspension?

ANS: Preventive suspension is a disciplinary measure for the protection of the
company's property pending investigation of any alleged malfeasance or misfeasance
committed by the employee. The employer may place the worker concerned under
preventive suspension if his continued employment poses a serious and imminent threat
to the life or property of the employer or of his co-workers (Gatbonton v. NLRC, G.R. No.
146779, January 23, 2006).
Q: What is the period of preventive suspension?

ANS: No preventive suspension shall last longer than 30 days. The employer may
extend the period of suspension provided that during the period of extension, he pays the
wages and other benefits due to the worker (D.O. No. 09-97, Rule XX/II, Sec. 9).
E. FLOATING
STATUS
Q: When is employment not deemed terminated?
ANS: Employment shall not be deemed terminated when:
1. There is bona fide suspension of operation of a business or undertaking for
a period not exceeding 6 months; or
2. The employee has to fulfill a military or civic duty (LABOR CODE, Art. 301).
Q: What is the obligation of the employer on employees not deemed terminated?

ANS: In both cases, the employer shall reinstate the employee to his former position
without loass of seniority rights if he indicates his desire to resume his work not later than
1 month from the resumption of operations of his employer or from his relief from the
military or civic duty (LABOR CODE, Ari. 301 ).
Q: When does floating status rule apply?

ANS: Floating status rule is applicable in the following instances:
1. Traditionally, to security guards who are temporarily sidelined from duty while
waiting to be transferred or assigned to a new post or client (Nippon Housing
Phil., Inc., v. Leynes, G:R. No, 177816, August 3, 2011); and
2. To other industries when, as a consequence of the bona fide suspension of
the operation of a business or undertaking, an employer is constrained to
put employees on a "floating status• for a period not exceeding 6 months (JPL
Marketing Promotions v. CA, G.R. No. 151966, July 8, 2005).
Q: How long may an employee's floating status last?

ANS: The bona fide suspension of operation of a business or undertaking where floating
status is permissible is for a period not exceeding 6 months; the employer shall reinstate
the employee to his former position within 1 month from the resumption of operations
F. RETIREMENT
Q: What is retirement?
ANS: Retirement is the result of a bilateral act of the parties, a voluntary agreement
between the employer and the employees whereby the latter, after reaching a certain age,
agrees and/or consents to sever his employment with the former (Brion v. South PH
Union Mission of the Seventh Day Adventist Church, G.R. No. 135136, May 19, 1999).

lOMoARcPSD|11893536
Q: Who are entitled to retirement benefits under the Labor Code?

ANS: Any employee in the private sector upon reaching the retirement age, regardless
of their position, designation, or status and irrespective of the method by which their
wages are paid are covered (/RR of R.A. No. 7641, Rule II, Sec. 2). An underground or
surface mining employee shall also be entitled to all retirement benefits provided in Labor
Code (LABOR CODE, Art. 302). They shall include part-time employees, employees of
service and other job contractors and domestic helpers or persons in the personal service
of another (Labor Advisory on Retirement Pay Law, October 24, 1996).
Q: Who are exempted from the coverage of the Labor Code on retirement from
service?
ANS: The following are exempted from the coverage of the Labor Code on retirement
from service:
1. Employees of the National Government, its political subdivisions, including
GOCCs if they are covered by the Civil Service Laws; and
2. Employees of retail, service and agricultural establishments or operations
regularly employing not more than 10 employees (/RR of LABOR CODE,
Book VI, Rule II, Sec. 2).
Q: What are the kinds of retirement schen,es?

ANS: Retirement schemes may be:
1. Compulsory and contributory in ~lure;
2. One set up by the agreement qf'.frte ef1Jployer iitfld employee in the CBA or
other agreement between them; or· · · ·
3. One that is voluntarily given by the employer (Gerlach v. Reuters Ltd., PHL,
G.R. No. 148542, January 17, 2()05). ·
Q: In what situations does Art. 302 of the:"i.abor Code apply?

ANS: Art. 302 of the Labor Code applies only in situations where:
1. There is no CBA or other appli0$ble emplp1,men,t;c;QQll'actsproviding for the
benefita for employees; or · · · · · , · · ,:r , ·
2. There is a CBA or other applicable employment ebrffracts providing for the
retirement benefits for emplO'yees, but such benefits are below the
requirements set by law (Elegirlt, .f'}l#ippine Airlines, Inc., G.R. No. 181995,
July 16, 2012). .'
Q: What is the age requirement for the purpose of retirement?

ANS: The age requirement for the purpose of retirement are as follows:
1. Under the Labor Code:
a. Optional retirement - 60 years old; and
b. Compulsory retirement - 65 years old (/RR of R.A. No. 7641,Rufe II,
Sec. 2);
Note: The employee must have served in the establishment for at least 5
years (LABOR CODE, Art. 302, as amended by R.A. No. 10757).
2. Under a retirement plan, where the employers and employees are given free
hand to determine and agree upon the terms and conditions of retirement,
even less than 60 years of age (Pantranco North Express v. NLRC, G.R. No.
95940, July 24, 1996).
Note: An underground or surface mining employee upon reaching the age of 50 years or
more, but not beyond 60 years which is hereby declared the compulsory retirement age
for both underground and surface mine workers, who has served at least 5 years as
underground or surface mine worker may retire and shall be entitled to all the retirement
benefits (LABOR CODE, Art. 302, as amended by R.A. 10757).

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• Volume 1 • Series of 2022
Q: What is the amount the retiring employee is entitled to under the Labor Code?
ANS: A retiring employee is entitled to retirement pay equivalent to at least one-half
(1/2) month salary for every year of service, a fraction of at least 6 months being
considered as 1 whole year (LABOR CODE, Art. 302). The term "one-month salary"
in determining the minimum retirement pay due includes:
1. Fifteen (15) days salary of the employee on his latest salary date;
2. Cash equivalent of not more than 5 days of service incentive leave;
3. One-twelfth (1/12) of 13th month pay due the employee or two and a half (2.5)
days;and
4. All other benefits that the employer and employee may agree upon that
should be included in the computation of the employee's retirement pay
(/RR of R.A. No. 7641, Rule II, Sec. 5.2).
VII. Management Prerogative

Q: What is the doctrine of management prerogative?
ANS: Under the doctrine of management prerogative, every employer has the inherent
right to regulate, according to his own discretion and iudgment, all aspects of employment,
including hiring, work assignments, working methods, the time, place and manner of work,
work supervision, transfer of employees, lay-off of workers, and discipline, dismissal, and
recall of employees (Peckson v. Robinsons Supermarket, GR.No. 198534, July 3, 2013).
It must be upheld so long as they are exercised in good faith for the advancement of its
interest and not for the purpose of defeating or circumventing the rights of the employees
under special laws or valid agreements (Coca-Co/a Bottlers, PHL, Inc., v. Kapisanan ng
Malayang Manggagawa sa Coca-Cola-FFW, G.R. No, 148205, February 28, 2005).
A. DISCIPLINE
Q: What is the reasonable proportionality rule?

ANS: Reasonable proportionality rule means that infractions committed by an
employee should merit only the corresponding sanction demanded by the circumstances.
The penalty must be commensurate with the gravity of the offense, the act, conduct, or
omission imputed to the employee and imposed in connection with the employer's
disciplinary authority (Manila Memorial Park Cemetery v. Pan ado, G.R. No. 167118, June
15, 2006).
Q: What is the employer's right to discipline?

ANS: The employer's right to discipline, in general, is the prerogative of the employer to
discipline its employees and to impose appropriate penalties on erring workers pursuant
to company rules and regulations (De/es, Jr. v. NLRC, G.R. No. 121348, March 9, 2000).
Q: What is the employer's right to dismiss?

ANS: The right of employer to dismiss its erring employees is a measure of self-
protection (Reyes v. Minister of Labor, G.R. No. 48705, February 9, 1989). An employer
generally can dismiss or lay-off an employee for just and authorized causes enumerated
under the Labor Code, subject to regulation by the State of its paramount police power
(Manila Electric Company v. NLRC, G.R. No. 78763, July 12, 1989).
Q: Who has the right to determine the officers or employees to be punished?

ANS: The employer has· the right to determine who to punish. The employer shall be
accorded reasonable latitude in determine who among its erring officers or employees
should be punished, to what extent, and what proper penalty to impose (Soriano v. NLRC,

lOMoARcPSD|11893536
G.R. No. 75510, October 27, 1987).
Q: What is the employer's right to prescribe company rules and regulations?

ANS: The prerogative of an employer to prescribe reasonable rules and regulations is
necessary or proper for the conduct of its business and to provide certain disciplinary
measures in order to implement said rules and to assure that the same would be
complied with (Phimco Industries, Inc., v. NLRC, G.R. No. 118041, June 11, 1997).
B. TIIANSFEROFEMPlOYEES
Q: What is transfer of employee?

ANS: A transfer of employee means a movement:
1. From one position to another of equivalent rank, level, or salary, without break
in the service (Coca-Cola Bottlers Philippines, Inc., v. Del Villar, G.R. No.
163091, October 6, 2010); or
2. From one office to another within the same business establishment (Blue
Dairy Corporation v. NLRC, G.R. No. 129843, September 14, 1999).
Q: What does the right to transfer employees include? (RPO)

ANS: The prerogative to transfer is broad enough to include the following prerogatives
that involve movements of personnel:
1. Prerogative to Reorganize (Tinio v. Communications, Inc., G.R. No. 171764,
June 8, 2007);
2. Prerogative to ~romote (Philippine Telegraph & Telephone Corporation v.
CA, G.R. No. 152057, September 29, 2003); and
3. Prerogative to Qemote (Petrophil Corporation v. NLRC, G.R. No. L-64048,
August 29, 1986).
Q: What are the limitations on the transfer of employees? (FUCIL)

ANS: The following are the limitations on transfer of employees;.
1. The transfer must not be motivated by discrtminatlorror bad faith;
2. The managerial prerogative to transfer personnel cannot be used by the
employer to rid himself of an .!::!.n<lesirable
employee;
3. Transfer, even if due to promotion, cannot be done without employee's
~onsent (PT& T v. CA, G.R. No. 152O57,'September 29, 2003);
4. The mere fact that it would be Inconvenient does not, by itself, make the
transfer !llegal (OSS Security v. NLRC, G.R. No. 112752, February 9, 2000);
and
5. The transfer of an employee should be considered as within the bounds
allowed by ,baw, unless there are circumstances which directly point to
interference by the company with the employees' right to self-organization
(Rubberworld PHL. v. NLRC, G.R. No. 75704, July 19, 1989).
C. PRODllCTIVITYSTANDARDS
Q: May an employer impose productivity standards?
ANS: Yes. An employer is entitled to impose productivity standards as management
prerogative. This management prerogative of requiring standards may be availed of so
long as they are exercised in good faith for the advancement of the employer's interest
(Aliling v. Feliciano, G.R. No. 185829, April 25, 2012).
Q: What is time and motion studies?

ANS: A time and motion studies is a more scientific and preferred method of determining
the standard output rates or piece rates. The basis for the establishment of rates for piece,
output, or contract work is the performance of an ordinary worker of minimum skill or ability

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(/RR of the LABOR CODE, Rule VII-A, Book Ill, Section 5(b)).
Q: What is the effect of failure to observe productivity or work standards of the

employer?
ANS: Failure to observe prescribed standards of work, or to fulfill reasonable work
assignments due to inefficiency may constitute just cause for dismissal. Such inefficiency
is understood to mean failure to attain work goals or work quotas, either by failing to
complete the same within the allotted reasonable period, or by producing unsatisfactory
results (Rea/da v. New Age Graphics, Inc., G.R. No. 192190, April 25, 2012).
D. BONUS
Q: What is bonus?
ANS: Bonus is an amount granted and paid ex gratia to the employee. It is an amount
granted and paid 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 (UST
Faculty Union v. NLRC, G.R. No. 90445, October 2, 1990). It is something given in
addition to what is ordinarily received by or strictly due the recipient (Protacio v. Laya
Mananghaya & Co., G.R. No. 168654, March 25, 2009).
Q: What is the nature of grant of a bonus?

ANS: The grant of a bonus is a management prer-0gative (Producers Bank of the
Philippines v. NLRC, G.R.. No: 100701, March 28, 2001). ·1t is a gratuity or act of
liberality of the giver which the recipient has no right to demand as a matter of right (Trade
Royal Bank v. NLRC, G.R. No. 88618, August 30, 1990 citing Aragon v. Cebu Portland
Cement Co., 61 O.G. 4597).
Q: When is bonus demandable and enforceable?

ANS: Bonus is demar\dable and enforceable when:
1. It is stipulated,in an employment contract or CBA;
2. The grant of bonus is a company policy or prac~ce (Manila Electric Company
v. Secretary of Labor, G.R: No. 127598, January 27, 1999); or
3. When it is granted as an additional compensation which the employer agreed
to give without any condition and, thus;- must be deemed part of wage or
salary (Atok Big Wedge Mining Co., Inc,, v. Atok Big Wedge Mutual Benefit
Association, G.R. No. L..5276, March 3, 1953).
E. CHANGEOF WORKINGHOURS
Q: What is the employer's right to change working hours?

ANS: The employer's right to change working hours is within their freedom and
prerogative, according to their discretion and best judgment, to regulate and control the
time when workers should report for work and perform their respective functions
(Philippine Airlines, Inc., v. NLRC, G.R. No. 115785, August 4, 2000). It is the prerogative,
whenever exigencies of the service so require, to change the hours of its employees
(Sime Darby Pilipinas, Inc., v. NLRC, G.R. No. 199205, April 15, 1998).
TJONS
F. BONA FIDEOCCUPATIONAl QIJAlJFJCA
Q: What is Bona Fide Occupational Qualifications (BFOQ) rule?

ANS: The Bona Fide Occupational Qualifications (BFOQ) rule provides that employment
may not be limited to persons of a particular sex, religion, or national origin unless the
employer can show that such is an actual qualification for performing the job (Yrasuegui
v. PAL, G.R. No. 168081, October 17, 2008).

lOMoARcPSD|11893536
Q: What must be proven by the employer to justify a BFOQ?

ANS: To justify a BFOQ, the following must be proven:
1. That the employer adopted the standard for a purpose rationally connected
to the performance of the job;
2. That the employer adopted the particular standard in an honest and good faith
belief that it was necessary to the fulfilment of that legitimate work-related
purpose; and
3. That the standard is reasonably necessary in order to accomplish the
legitimate work-related purpose (Yrasuegui v. PAL, G.R. No. 168081,
October 17, 2008).
Q: What is reasonable business necessity rule?

ANS: The reasonable business necessity rule provides that a BFOQ is valid provided it
reflects an inherent quality reasonably necessary for satisfactory job performance
(Philippine Telegraph and Telephone Company v. NLRC, G.R. No. 118978, May 23,
1997).
Q: What are some examples of a BFOQ?

ANS: II shall be unlawful for an employer to commit any of the following acts:
1. Mandatory retirement ages for. bus drivers and airplane pilots for safety
reasons;
2. Churches requiring members of its clergy to be of a certain denomination and
may lawfully bar from employment anyor,e whois not a member;
3. Use of models and actors for the purposept authenticity or genuineness;
4. Requirement of emergency personnel to be bilingual, judged on the language
competency (CHAN REVIEWER supra at 813).
G. P0$7-EMPl.OYMENTRE$TRICTIONS
Q: What is post-employment restriction?

ANS: A post-employment restriction is the right of the employer, in the exercise of its
prerogative, to insist on an agreement with the employee for certain prohibitions to take
effect after the termination of their employer-employee relationship (CHAN REVIEWER,
supra at 822).
Q: What is the legal basis for the right of employers to establish a post-employment
restriction?
ANS: Parties to a contract may establish such situations, clauses, terms, and conditions
as they may deem convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy (CIVIL CODE, Art. 1306).
Q: What must be proven by the employer to justify a post-employment restriction?

ANS: The employer is burdened to establish that a restrictive covenant barring an
employee from a competitive employment after retirement or resignation is not
unreasonable restraint of trade thus, unenforceable for being repugnant to public policy
(Rivera v. Solidbank Corporation, G.R. No. 163269, April 19, 2006). There must be
limitation as to time, place and trade. A contract embodying such prohibition that is limited
as to time and trade is considered reasonable, and therefore, valid and enforceable (Tiu
v. Platinum Plans, G.R. No. 163512, February 28, 2007).
Contracts involving restraint of trade are to be judged according to their circumstances or

two principal grounds, as follows:
1. Injury to the public by being deprived of restricted party's industry; and

lOMoARcPSD|11893536
2. Injury to the party himself by being precluded from pursuing his occupation,
and thus being prevented from supporting himself and his family (Ferrazzini
v. Gsell, G.R. No. L-10172, August 10, 1916).
Q: What is the consequence of non-compliance with post-employment restriction?

ANS: Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith (CIVIL CODE, Art. 1159).
A non-competing clause, like a "Goodwill Clause", with a stipulation that a violation thereof
makes the employee liable to his former employer for liquidated damages, refers to post-
employment relations of the parties. In accordance with jurisprudence, breach of the
undertaking is a civil law dispute, not a labor law case (Portillo v. Rudolf Lietz, Inc., G.R.
No. 196539, October 10, 2012).
H. CLEARANCEPROCEDIJRES
Q: Is an employer required to obtain a clearance from the Secretary of Labor in

order to shut down his establishment or to dismiss or terminate the employment of
employees with at least one year?
ANS: No. Batas Pambansa Big. 130, approved on August 21, 1981, abolished the
clearance requirement (2 AZUCENA, supra at 949).
Q: Is there a specific period prescribed forthe release of the separated employees'

final pay and certificate of employment?
ANS: Yes. The DOLE issued guidelines which provides that the final pay should be
released by the employ!,lr within 30 days from the date of separation or termination of
employment, unless th.ere is a more favorable company policy, individual, or collective
agreement thereto. Said guidelines also provide for the enforcement mechanism in
settling any issue, claim, or dispute in connection therewith (Labor Advisory No. 06, Series
of 2020, or the Guidelines on the Payment of Final Pay and tssuance of Certificate of
Employment).
However, by exception, an employer may still delay the celease of the separated
employee's final pay beyond the pr~scribed 30-day period such as when the employee
refuses to complete the company's clearance process or has pending accountabilities
with the company (Milan v. National Labor Relations Commission, G.R. No. 202961,
February 4, 2015).
Note: Prior to this DOLE issuance, there was no specific period prescribed for the release
of the separated employees' final pay and certificate of employment. L.A. No. 06-20
effectively imposes an obligation upon employers to comply with the prescribed periods.
Q: What is a Certificate of Employment as part of the Clearance Procedure?

ANS: It refers to a certificate from the employer specifying the dates of an employee's
engagement and the termination of his/her employment and the type or types of work in
which he/she is employed. An employee whose employment is not yet terminated may
also ask for a Certificate of Employment (Labor Advisory No. 06, Series of 2020, or the
Guidelines on the Payment of Final Pay and Issuance of Certificate of Employment).
Note: Under L.A. No. 06-20, the employer shall issue a certificate of employment within
3 days from the time of the request by the employee.

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I. LIMITATIONSONMANAGEMENTPREROGATIVEAND THEPOllCEPOWEROF
THESTATE
Q: What are the limitations on the exercise of management prerogative? (LCE 3-

GePo-WiG)
ANS: The following are the limitations on the exercise of management prerogative:
1. Limitations imposed by:
a. _baw;
b. ~BA;
c. .!;_mploymentcontract;
d. !;_mployer policy;
e. .!;_mployerpractice; and
f. General principles of fair play and justice (The Philippine American Life
and General Insurance Co. v. Gramaje, G.R. No. 156963, November 11,
2004); and
2. It is subject to Police power;
3. Its exercise should be Without abuse of discretion;
4. It should be done in Qood faith and with due regard to the rights of labor
Q: Why is the exercise of police power b!(. ~he state a limitation on the exercise of
management prerogative? _. . . .
ANS: The preservation of the lives of the citlienii:ls;.:1
basic tiuty of the State, more vital
than the preservation of profits (MERALCO y. NLRC, G.R:No; 78763, July 12, 1989).
VIII. Jurisdiction and Reliefs

Q: What is the importance of employer,"f:)mploy~ re1att9nship with respect to
jurisdiction? ·· ·
ANS: An employer-employee relationship is an indispensable jurisdictional requisite.
The jurisdiction of Labor Arbiters and the NI.RCunder Article 217 of the Labor Code is
limited to disputes arising from an employer~"ilmpioyee relationship which can only be
resolved by reference to the labor Code, other raberstatutesor their collective bargaining
agreement (Villamaria v. Courl of Appeals, G.R. No. 165881, April 19, 2006).
Q: What is the reasonable causal connection rule?

ANS: Under this rule, if there is a reasonable causal connection between the claim
asserted and the employer-employee relations, then the case is within the jurisdiction of
our labor courts. In the absence of such nexus, it is the regular courts that have jurisdiction
(San Miguel Corporation v. Ectuban, G.R. No. 127639, December 3, 1999).
A. MANDATORY CONC/l/A TION-MEDIAT/ON, SENA
Q: What is the Single Entry Approach (SEnA)?

ANS: SeNA refers to the administrative approach to provide an accessible, speedy,
impartial, and inexpensive settlement procedure of all issues arising from labor and
employment through a 30-day mandatory conciliation-mediation (Single Entry Approach
Implementing Rules and Regulations, D.O. NO. 151-16, series of 2016, RULE 1, Sec.
4(k) [hereinafter SENA /RR]).
Q: What are the cases covered by the SEnA?

ANS: As a general rule, all issues arising from labor and employment shall be subject to

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the 30-day mandatory conciliation-mediation EXCEPT: (NCEV 2O)

1. Notices of strike/ lockout or preventive mediation cases with the NCMB;
2. Issues arising from the interpretation andimplementation of the £BA, and
those arising from the interpretation and enforcement of company personnel
policies which should be processed through the grievance machinery;
3. Applications for 5.xemption from wage orders with the National Wages and
Productivity Commission (NWPC);
4. Issues involving Y'.iolations of: (AEP-PEA-CRPL-TO)
a. Alien Employment Permit (AEP);
b. Private Employment Agency (PEA) authority or license;
c. Working £hild Permit (WCP) and violations of R.A. No. 9231 (Anti-Child
Labor Law);
d. B,egistration under D.O. No. 18-A, series of 2011;
e. frofessional bicense issued by the PRC and violation of the Professional
Code of Conduct;
f. IESDA Accreditations; and
g. Qther Similar Permits, licenses or registrations issued by the DOLE or
its attached agencies;
5. Y'.iolations of POEA Rules and Regulations involving: (SDIR-Not)
a. §.erious offenses and offenses penalized with cancellation of license;
b. Q.isciplinary actions against overseas workers/seafarers which are
considered serious offenses, or which carry the penalty of delisting from
the POEA registry at first offense;
c. Complaints !nitiated by the POEA;
d. Complaints against an agency whose license is B.evoked, cancelled,
expired or otherwise delisted; and
e. Complaints categorized under the POEA Rules and Regulations as Not
subject to SEnA; and _
6. Issues on Qccupational Safety and Health Standards involving imminent
danger situation, dangerous occurrences/ disabling injury, and absence of
personal protective equipment (R.A.No. 10396, Sec. 1; LABOR CODE Art.
234; SENA /RR, RULE I, Sec. 3).
Q: Who may file a Reqt1est for Assistance (RFA) under SEnA? (WUGE)
ANS: Any aggrieved person, such as:
1. • Worker, including kasambahay, whether local or overseas;
2. .!J.nion,workers association or federation;
3. Qroup of workers, whether local or overseas; or
4. 5.mployer.
Note: In case of absence or incapacity of the aggrieved person, his/her immediate family
with Special Power of Attorney (SPA) may file the RFA. In case of death, his/her legitimate
heir/s may file the RFA (SENA /RR, Rule II, Sec. 1).
Q: What is the purpose of the conciliation-mediation process? (CNE-OPM)

ANS: The Single Entry Assistance Desk Officer (SEADO), in the conduct of the
conciliation-mediation, shall:
1. £Iarify the issues, validate positions and determine the underlying issues;
2. Narrowdown the disagreements and broaden areas for settlement;
3. 5 ncourage parties to generate options and enterinto stipulations;
4. Qffer proposal and options toward mutually acceptable solutions and
voluntary settlement;
5. f.repare the settlement agreement in consultation with the parties; and
6. _Monitor the voluntary and faithful compliance ofthe settlement agreement
(SENA /RR, Rule IV, Sec. 3).

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Q: What are the requirements before lawyers, agents, or attorney-in-fact may

validly appear during SEnA in behalf of another party? (Dep-Min-Di)
ANS: For the appearance to be valid, lawyers, agents, or attorneys-in-fact appearing in
behalf of any of the parties should submit a SPN Board Resolution/ Secretary's Certificate
granting them the authority to represent and enter into binding agreement for their
principal in the following circumstances:
1. When the requesting/ responding party is already Deployed abroad or out of
the country or employed/ assigned/ migrated to another region;
2. When the requesting/ responding party is a Minor or physically incapacitated;
and/or
3. If the requesting/ responding party Died during the pendency of the RFA, the
heir/s of the deceased may appear and shall present the following:
a. Death Certificate; and
b. Proof of relationship such as marriage contract and/or birth certificate
(SENA /RR, Rule IV, Sec. 2).
B. /.ABOR ARBITER
Q: What is a labor dispute?

ANS: Labor dispute includes any contr<lversy or matter concerning terms and
conditions of employment or the association;or representation of persons in negotiating,
fixing, maintaining, changing or arra · ·~e terms and conditions of employment,
regardless of whether the disputants ·~ 1h&]J?(f?~ifll~~ relation of employer and
employee (LABOR CODE as amended, Art. 219). .. · · .. ...... .
Q: What are the cases falling under the l!xclusive and original jurisdiction of the
Labor Arbiter? (TURDOS-5000-CLAD) •
ANS: The Labor Arbiters (LA) shall have qfiginal and ex:clu$ive Jurisdiction to hear and
decide the following cases involving all worktts, whetherliigridultur8tl or non-agricultural:
1. Iermination disputes; , ,1
2. Y,LP cases; . :,; ;....
: ·'.;·;;
3. If accompanied witha claim for J,instatement. thcise cases that workers may
file involving wages, rates of ;,pay, hours of work and other terms and
conditions of employment; ;,, " ii ( .....
_.·
4. Claims for actual, moral, exemplary,cand'.otherforms of Qamages arising from
employer-employee relations;
5. Monetary claims of Qverseas contract workers arising from employer-
employee relationship or by virtue of any law or contract, including claims for
death and disability benefits and for actual, moral, exemplary and other forms
of damages as provided by Section 10 of R.A. No. 8042 amended by R.A.
No. 10022;
Note: In order for the LA to assume jurisdiction over the money claim, the
OFW must have a certification from POEA (PNB v. Cabansag, G.R. No.
157010, June 21, 2005).
6. Cases arising from any violation of Article 279 of the Labor Code, including
questions involving the legality of §.trikes and lockouts;
7. Except claims for Employment Compensation, Social Security, Medicare
and maternity benefits, all other claims arising from employer-employee
relations, including those of persons in domestic or household service,
involving an amount exceeding PS,000 regardless of whether accompanied
with a claim for reinstatement;
8. ~ontested cases under the exception clause in Article 128(b) of the Labor
Code;

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of 2022
Volume 1 · Series
Note: The jurisdiction of the LA is found in the exception clause of Article 128
(b) where the employer contests the findings of the labor employment and
enforcement officer and raises issues supported by documentary proofs
which were not considered in the course of inspection (E.O. No. 111 (1986)).
9. Other cases as may be provided by haw (2011 NLRC PROCEDURE OF
PROCEDURE, Rule V, Sec. 1);
10. Enforcement of compromise Agreements when there is non-compliance by
any of the parties pursuant to Article 233 (non-compliance, or if settlement is
obtained through fraud, misrepresentation, or coercion) of the Labor Code,
as amended; and
11. Wage Qistortion disputes in unorganized establishments not voluntarily
settled by the parties pursuant to R.A. No. 6727;
Note: Not every controversy or money claim by an employee against the employer or
vice-versa is within the exclusive jurisdiction of the labor arbiter. Actions between
employees and employer where the employer-employee relationship is merely incidental
and the cause of action precedes from a different source of obligation is within the
exclusive jurisdiction of the regular court (Halaguena v. PAL, G.R. No. 172013, October
2, 2009).
Q: What are the exceptions to the original and exclusive jurisdiction of the LA?
ANS: The following are the exceptions:
1. When in his opinion, there exists a labor dispute causing or likely to cause a
strike or lockout in an industry indispensable to the national interest, the
DOLE Secretary may assume jurisdiction over the dispute and decide it or
certify the same to the Commission for compulsory arbitration (LABORCODE,
Art. 278(g));
2. The President is not precluded from determining the industries that are
indispensable to the national interest, and from intervening at any time
assuming jurisdiction over such any labor dispute (LABOR CODE, Art.
278(g));
3. When the NLRC exercises its power of compulsory arbitration over similar
national interest cases that are certified to it by the DOLE Secretary pursuant
to the exercise by the latter of his certification power under the same Article
278(g); and
4. When upon agreement of the parties, the Voluntary Arbitrator or the panel of
Voluntary Arbitrators, shall also hear and decide all other labor disputes
including unfair labor practices and bargaining deadlocks (LABOR CODE,
Art. 275).
Q: What is the rule on jurisdiction of the LA with respect to the civil aspect of ULP
cases?
ANS: The civil aspect of all cases involving unfair labor practices, which may include
claims for actual, moral, exemplary and other forms of damages, attorney's fees and other
affirmative relief, shall be under the jurisdiction of the LA (LABOR CODE, Art. 258).
Q: What is the rule against double recovery in ULP cases?

ANS: Recovery of damages in the administrative proceedings shall bar recovery under
the Title XVIII - Damages of the Civil Code (LABOR CODE, Art. 258).
Q: What is the rule with respect to the criminal prosecution of ULP cases?
ANS: No criminal prosecution for ULP may be instituted without a final judgment finding
that an unfair labor practice was committed. During the pendency of such administrative
proceeding, the running of the period of prescription of the criminal offense herein
penalized shall be considered interrupted: Provided, however, that the final judgment in
the administrative proceedings shall not be binding in the criminal case nor be considered

lOMoARcPSD|11893536
as evidence of guilt but merely proof of compliance of the requirements therein set forth
Q: Who has jurisdiction over illegal dismissal cases? (LV-DN)

ANS: The following may take cognizance of termination disputes in the exercise of their
respective original and exclusive jurisdictions:
1. babor Arbiters (LABOR CODE, Art. 224 (a));
2. Y:oluntary Arbitrators or panel of Voluntary Arbitrators upon agreement of
the parties (LABOR CODE, Arts. 274 & 275);
3. Q.OLE Secretary, in the exercise of his assumption power in national interest
cases (LABOR CODE, Art. 278 (g)); or
4. The _!iLRC, in national interest cases certified to it for compulsory arbitration
by the DOLE Secretary (LABOR CODE, Art. 278 (g)).
Q: Where a conflict of jurisdiction exists, who among the LA and Voluntary

Arbitrator (VA) may take cognizance of the case?
ANS: In case of conflict of jurisdiction between LA and VA over termination cases, the
LA's jurisdiction shall prevail because:
1. A termination dispute is not a grievable issue that must be submitted to the
grievance machinery or voluntary arbitration for adjudication (Landtex
Industries v. CA, G.R. No. 150278, August 9, 2007);
2. Where the dispute is just in the interpretation, implementation or enforcement
stage, it may be referred to the grievance machinery set up in the CBA or
brought to voluntary arbitration: But, where there was already actual
termination, with alleged violation of the employees' rights, it is already
cognizable by the labor arbiter (Atlas Farms v. NLRC, G.R. No.142244,
November 18,2002);
3. Where the CBA provision on grievance machinery does not expressly state
that termination disputes are included in the ambit of what may be brought
before the company's grievance machinery, the original and exclusive
jurisdiction of the Labor Arbiter over terminatkm disputes is not removed
(Negros Metal v. Lamayo, G.R. No. 186557, August 25, 2010);
4. Article 224 is deemed written into the CBA being an intrinsic part thereof (2
AZUCENA, supra at 528);
5. Article 292(b) grants the right to the dismissed employee to contest his
termination with the LA (LABOR CODE, Art. 292(b));
6. Estoppel confers jurisdiction on LA (Ocheda v. CA, G.R. No. 85517, October
16, 1992); and
7. Failure of the employer to activate grievance machinery confers jurisdiction
on LA (Atlas Farms v. NLRC, G.R. No. 142244, November 18, 2002).
Q: Who are corporate officers?

ANS: The corporate officers under Section 24 of the Revised Corporation Code are the
following:
1. President;
2. Secretary;
3. Treasurer;
4. Such other officers as may be provided in the bylaws; and
5. Compliance Officer, if the corporation is vested with public interest.
Conformably with Section 25 (now Section 24 ), a position must be expressly mentioned

in the By-Laws in order to be considered as a corporate office. Thus, the creation of an
office pursuant to or under a By-Law enabling provision is not enough to make a position
a corporate office (Matling Industrial and Commercial Corporation v. Coros, G.R. No.
157802, October 13. 2010).

lOMoARcPSD|11893536
Q: How do we determine if a controversy is intra-corporate?

ANS: The two-tiered test must be employed to determine whether an intra-corporate
controversy exists in the present case, namely:
1. The relationship test; and
2. The nature of the controversy test (Matting Industrial and Commercial
Corporation v. Coros, G.R. No. 157802, October 13, 2010).
Q: When is a dispute considered an intra-corporate controversy under the

relationship test?
ANS: A dispute is considered an intra-corporate controversy under the relationship test
when the relationship between or among the disagreeing parties is any one of the
following:
1. Between the corporation, partnership, or association and the public;
2. Between the corporation, partnership, or association and its stockholders,
partners, members, or officers;
3. Between the corporation, partnership, or association and the State as far as
its franchise, permit or license to operate is concerned; and
4. Among the stockholders, partners, or associates themselves (Philippine
Communications Satellite Corporation v. Sandiganbayan, 5th Division, G.
R.No. 203023, 17 June2015).
Q: When is a dispute considered an intra-corporate controversy under the

relationship test?
ANS: Under the nature of the controversy test, the disagreement must not only be rooted
in the existence of an intra-corporate relationship, but must as well pertain to the
enforcement of the parties' correlative rights and obligations under the Corporation Code
and the internal and intra-corporate regulatory rules of the corporation (Cacho v. Balagtas,
G.R. No. 202974, February 17, 2018).
Q: Who has jurisdiction in dismissal cases of directors and corporate officers?

ANS: The dismissal of a director or corporate officer is an intra-corporate dispute
cognizable by the Regional Trial Court and not by the Labor Arbiter. A corporate officer's
dismissal is always a corporate act, or an intra-corporate controversy which arises
between a stockholder and a corporation (Locsin v. Nissan Lease Philippines, G.R. No.
185567, October 20, 2010).
Note: Prior to its amendment, Section 5(c) of Presidential Decree No. 902-A (PD 902-A)
provided that intra-corporate disputes fall within the jurisdiction of the Securities and
Exchange Commission (SEC). Subsection 5.2, Section 5 of Republic Act No. 8799, which
took effect on 8 August 2000, transferred to regional trial courts the SEC's jurisdiction
over all cases listed in Section 5 of PD 902-A (Locsin v. Nissan Lease Philippines, G.R.
No. 185567, October 20, 2010).
Q: What are the classifications of money claims falling under the jurisdiction of
the LA? (ARO)
ANS: Money claims falling within the original and exclusive jurisdiction of the LA may
be:
1. Any money claim, regardless of amount, accompanied with a claim of
reinstatement (2011 NLRC RULES OF PROCEDURE, Rule V, Sec. 1);
2. Note: This falls within the jurisdiction of the LA since it is principally a
termination dispute. The situation presupposed that it proceeds from a
termination case, it being accompanied with a claim for reinstatement (CHAN
REVIEWER, supra at 841).

lOMoARcPSD|11893536
3. Any money claim, regardless of whether accompanied with a claim for

Reinstatement, exceeding the amount of 1"5,000 per claimant (LABOR
CODE, Art. 129); and
Note: The claim does not necessarily arise from or involve a termination case,
but because the amount exceeds 1"5,000, it falls within the jurisdiction of the
LA (CHAN REVIEWER, supra at 840-841).
4. Monetary claims of Qverseas contract workers arising from employer-
employee relations, or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral,
exemplary, and other forms of damages as provided by Section 10 of R.A.
No. 8042 amended by R.A. No. 10022 (2011 NLRC RULES OF
PROCEDURE, Rule V, Sec. 1).
Note: The issue of deduction for tax purposes is intertwined with the main
issue of whether the benefits have been fully paid. It is, therefore, a money
claim arising from an employer-employee relationship, which falls within the
jurisdiction of the Labor Arbiter (Santos v. Servier PHL, G.R. No. 166377,
November 28, 2008).
Q: How do we reconcile the grants of Jurisdiction vested under Article 224 and 274
of the Labor Code for money claims?
ANS: In reconciling the grants of jurisdiction vested under Articles 274 and 224 of the
Labor Code, the Court has pronounced that.the original and exclusive jurisdiction of the
Labor Arbiter under Article 224(c) for money claims is limited only to those arising from
statutes or contracts other than a CBA. The Voluntary Arbitrator or Panel of Voluntary
Arbitrators shall have original and exclusive jurisdiction over money claims arising from
the interpretation or implementation of the CBA and, those arising from the interpretation
or enforcement of company personnel policies, under Article 274 (Del Monte v. Saldivar,
G.R. No. 158620, October 11, 2006).
Q: What is the difference between the Labor Arbiter jurisdiction and the Visitorial
and Enforcement Powers of the Secretary of Labor?
ANS: If the labor standards case is covered by the exception clause in Art 128(b) of the
Labor Code, then the Regional Director will haveto endorse the case to the appropriate
Arbitration Branch of the NLRC.
In order to divest the Regional Director or his representatives of jurisdiction, the following
elements must be present:
1. That the employer contests the findings of the labor regulations officer and
raises issues thereon;
2. That in order to resolve such issues, there is a need to examine evidentiary
matters; and
3. That such matters are not verifiable in the normal course of inspection (Ex-
Bataan Veterans Security Agency v. Secretary of Labor, GR. No. 152396,
November 20, 2007).
On the other hand, DOLE Regional Directors have jurisdiction in cases of inspection of
establishment, regardless of whether or not the total amount of claims per employees
exceeds 1"5,000 (LABOR CODE, Art. 128 (b)).
For the valid exercise by the DOLE Secretary or any of his duly authorized representatives
(DOLE Regional Directors) of the visitorial and enforcement powers provided under Article
128(b ), the following requisites should concur:
1. The employer-employee relationship should still exist;
2. The findings in question were made in the course of inspection by labor

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· Series of 2022
Volume 1
inspectors; and
3. The employees have not yet initiated any claim or complaint with the DOLE
Regional Director under Article 129, or the Labor Arbiter under Article 224
(People's Broadcasting Service v Secretary of DOLE, G.R. No. 179652,
March 6, 2012).
Q: What is the jurisdiction of the Regional Director for simple money claims?
ANS: Labor Arbiters have no jurisdiction over small money claims lodged under Article
129, except when the claim includes a prayer for reinstatement (LABOR CODE, Art.
224). It must be noted that RA 7730, or an Act Further Strengthening the Visitorial and
Enforcement Powers of the Secretary of Labor, did away with the fi'>S,000 limitation,
allowing the DOLE Secretary to exercise its visitorial and enforcement power for claims
beyond !'"5,000. The only qualification to this expanded power of the DOLE was only that
there still be an existing employer-employee relationship (People's Broadcasting
Service v. Secretary of DOLE, G.R. No. 179652, March 6, 2012).
Q: Who has jurisdiction over money claims of an OFW?

ANS: Section 10 of R.A. No. 8042 or the Migrant Workers Act, provides that the Labor
Arbiter of the National Relations Commission (NLRC) shall have the exclusive and original
jurisdiction to hear and decide any claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino workers for overseas
deployment including claims for actual, moral, exemplary, and other forms of damages.
Note: The jurisdiction of labor arbiters is not limited to. claims arising from employer-
employee relationships. Despite the absence of an employer-employee relationship
between petitioner and respondent, the Court ruled that the NLRC has jurisdiction over
petitioner's complaint {Sahtiago v. C.F. Sharp Crew Management, G.R. No. 162419, July
10, 2007).
Q: What are the requisites for a foreign law to govern an employment contract?
ANS: For a foreign law to govern an employment contract,.the following requisites must
be met:
1. That it is expressly stipulated in the overseas employment contract, that a
specific foreign law.shall govern;
2. That the foreign law invoked must be proven before the courts pursuant to
the Philippine rules on evidence;
3. That the foreign law stipulated in the overseas employment contract must not
be contrary to law, morals, good customs, public order, or public policy of
the Philippines; and
4. That the overseas employment contract must be processed through the
POEA (IPAMS v. De Vera, G.R. No. 205703, March 07, 2016).
Q: What is the rule when there is a CBA between the foreign employer and
bargaining union of the OFWs?
ANS: With respect to disputes involving claims of Filipino seafarers wherein the parties
are covered by a collective bargaining agreement, the dispute or claim should be
submitted to the jurisdiction of a voluntary arbitrator or panel of arbitrators. It is only in the
absence of a collective bargaining agreement that parties may opt to submit the dispute
to either the NLRC or to voluntary arbitration (Estate of Nelson Dulay v. Aboitiz Jebsen
Maritime Inc., G.R. No. 172642. June 13, 2012).
Q: When can the Philippine court or agency assume jurisdiction under the doctrine
of forum of non conveniens?
ANS: Under the Rule of Forum Non Conveniens, a Philippine court or agency may
assume jurisdiction over the case if it chooses to do so provided that:
1. The Philippine court is one to which the parties may conveniently resort to;

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2. The Philippine court is in a position to make an intelligent decision as to the

law and the facts; and
3. The Philippine court has or is likely to have power to enforce its decision
(Manila Hotel v. NLRC, G.R. No. 120077, October 13, 2000).
Q: What are the grounds for appeal to the NLRC? (FAQS)

ANS: The appeal to the NLRC may be entertained only on any of the following grounds:
1. If the decision, award or order was secured through fraud, coercion,
including graft and corruption;
2. If there is a prima facie evidence of A,buse of discretion on the part of the
Labor Arbiter or the Regional Director;
3. If made purely on Questions of law; and/or
4. If .§.erious errors in the findings of facts are raised which, if not corrected,
would cause grave or irreparable damage or injury to the appellant (2011
NLRC RULES OF PROCEDURE, Rule VI, Sec. 2).
Q: What are the requirements to perfect an appeal to the NLRC? (RVM-3A)

ANS: The following are the requirements to perfect an appeal to the NLRC:
1. It must be filed within the f!eglementary period, which is within 10 calendar
days from receipt thereof; in case of decisions or resolutions of the DOLE
Regional Director pursuant to Article 129 of the Labor Code, within 5 calendar
days from receipt thereof; ·
Note: If the 10th or 5th day, as the casemaybe/falls on a Saturday, Sunday
or holiday, the last day to perfect the appealshall be the first working day
following such Saturday, Sunday or holiday (2p11 NLRC RULES OF
PROCEDURE, Rule VI, Sec. 1); '
2. It must be )!erified by the appellant himself in accordance with Section 4,
Rule 7 of the Rules of Court, as amended; · \
3. It shall be in the form of a ,Memorandum of app,ea.l;whi~h,.~~allstate: (GRD)
a. The Q.rounds relied upon and the argl.imen4'1Jnsupport thereof;
b. The B.elief prayed for, and ' ·· · '"'
c. A statement of the Date the appellant received the appealed decision,
award or order; - '
4. It must be in~ legibly typewritten orprinted'copies; and
5. A_ccompanied by: (ABS) · · · ··
a. Proof of payment of the required A_ppealfee and legal research fee;
b. Posting of a cash or surety §.and in case the decision of the Labor Arbiter
or the Regional Director involves a monetary award as provided in
Section 6, Rule VI of the 2011 NLRC Rules of Procedure; and
c. Proof of .§.ervice upon the other parties (2011 NLRC RULES OF
PROCEDURE, Rule VI, Sec. 4).
Q: Can the appellant seek reduction of the required appeal bond?

ANS: Yes, but the same may be granted only upon meritorious grounds, and only upon
the posting of a bond in a reasonable amount in relation to the monetary award. The
motion must be accompanied by 10% of the amount of the judgment award (McBurnie
v. Ganzon, G.R. Nos. 178034 & 178117, October 17, 2013).
The 10% requirement pertains to the reasonable amount which the NLRC would accept
as the minimum of the bond that should accompany the motion to reduce bond in order to
suspend the period to perfect an appeal under the NLRC Rules. The 10% is based on the
judgment award and should in no case be construed as the minimum amount of bond to
be posted in order to perfect appeal. The NLRC retains its authority and duty to resolve
the motion and determine the final amount of bond that shall be posted by the appellant,
still in accordance with the standards of "meritorious grounds" and "reasonable amount"

lOMoARcPSD|11893536
(Sara Lee PHL, Inc., v. Macatlang, G.R. No. 180147, June 14, 2014).
Q: What is the effect of an appeal to the execution of the order of reinstatement by

the Labor Arbiter?
ANS: None. In any event, the decision of the Labor Arbiter reinstating a dismissed or
separated employee, in so far as the reinstatement aspect is concerned, shall immediately
be executory, even pending appeal. The employee shall either be admitted back to work
under the same terms and conditions prevailing prior to his dismissal or separation or, at
the option of the employer, merely reinstated in the payroll. The posting of a bond by the
employer shall not stay the execution for reinstatement provided herein(Baronda v. CA,
G.R. No. 161006. October 14, 2015).
Q: What is the remedy should the employer refuse to reinstate the dismissed
employee?
ANS: The Labor Arbiter shall immediately issue writ of execution, even pending appeal,
directing the employer to immediately reinstate the dismissed employee either physically
or in the payroll, and to pay the accrued salaries as a consequence of such reinstatement
at the rate specified in the decision (2011 NLRC RULES OF PROCEDURE, Rule XI, Sec.
9).
Q: What are the differences between Reinstatement Pending Appeal under Article
229 and an Order of Reinstatement under Article 294?
ANS: The differences between Reinstatement Pending Appeal under Article 229 and an
Order of Reinstatement under Article 294 are:
Article229 Article 294
Asto An order of reinstatement by The order of reinstatement

Effectivity the Labor Arbiter is under Article 294 presupposes
immediately executory, even the award thereof is pursuant to
pending appeal. It is similar a final and executory judgment,
toa return-to-work order, i.e., and not while the case for illegal
to restore the status quo in dismissal is pending on appeal.
the workplace in the
As to the No need for the issuance of a Needs the issuance of a writ of

Necessity writ of execution (2 execution (2 AZUCENA, supra
of a Writ of AZUCENA, supra at 1024). at 1024).
Execution
C. NATIONAL LABOR RELATIONS COMMISSION
Q: Discuss the original jurisdiction of the NLRC. (C-CIV)

ANS: The NLRC has original jurisdiction over the following cases:
1. Cases .Q.ertifiedto the NLRC for compulsory arbitration by the Secretary of
Labor under Articles 277 and 278 of the Labor Code;
2. .Q.ontemptCases committed before the NLRC under Article 225 of the Labor
Code;
3. !njunction cases under Articles 225 and 278 of the Labor Code; and
4. yerified Petition (2011 NLRC RULES OF PROCEDURE, Rule XII, Sec. 3).

lOMoARcPSD|11893536
Q: What are the instances wherein NLRC has appellate jurisdiction? (Not5-LM-DC-
3rd)
ANS: The NLRC has appellate jurisdiction over the following:
1. Cases decided by the Regional Offices of the DOLE in the exercise of their
adjudicatory functions under Article 129 over monetary claims of workers Not
exceeding P§,000;
2. Cases decided by the Labor Arbiters under Article 224(b) of the !,abor Code
and Section 10 of the Migrant Worker's Act;
3. Cases decided by the Labor Arbiters pursuant to Article 124 of the Labor
Code on wage Qistortion problem in non-unionized establishment and cases
~ertified by the Regional Director under Article 128(b ); and
4. Denial of the claim of the 3rd party where property was levied by the Sheriff
of Labor Arbiter can be appealed to the NLRC (Yupangco Cotton Mills v.
Mendoza, G.R. No. 139912, March 3, 2005).
Q: What is the effect of the reversal of the Labor Arbiter's order of reinstatement?
ANS: If the Labor Arbiter ordered the reinstatement of an employee and the employer
opted to reinstate him in the payroll, such employee is not obliged to refund the amount
of salary received during the time he is reinstated in the payroll, should the NLRC
reverse said order of reinstatement on appeal (Garcia v. PAL, G.R. No. 164856,January
20, 2009).
Q: May an employee still recover his/her accrued or u~ollected wages where a

delay in the execution of the reinstatement occurs pending appeal and the NLRC
reverses the LA's decision of reinstatement?
ANS: After the LA's decision is reversed by a higher tribunal, the employee may be
barred from collecting the accrued wages, jf it is shown that the delay in enforcing the
reinstatement pending apPeal was without fa1,1lton the part of the employer, that is:
1. There must be actual delay; and·
2. The delay must not be due to the employer'~ urijustified act or omission -
otherwise, the employer may still be regvlrea, ,tp. pay the salaries
notwithstanding the reversal of the Labor Arbiter's decision (Garcia v. PAL,
G.R. No. 164856, January 20, 2009).
Q: What is the remedy from an adverse deciJlon:of Nl..~C?

ANS: The remedy from an adverse decision of NLRC is through the special civil action
of certiorari under Rule 65 of the Rules of Court, to the Court of Appeals. Thus, the 1997
Rules of Civil Procedure should be observed, to wit:
1. The petition for certiorari must be filed not later than 60 days from notice of
the judgment, order or resolution. If a motion for new trial or reconsideration
is timely filed, whether it is required or not, the 60-day period shall be counted
from denial of such motion;
2. The petition should be accompanied by a certified true copy of the NLRC
decision and by a sworn certification of non-forum shopping as well as copies
of all relevant pleadings and documents; and
3. In observance of the hierarchy of courts principle, the petition must be filed
in the first instance with the CA (St. Martin Funeral Home v. NLRC, G.R. No.
130866, September 16, 1998).
D. JUDIC/At REVIEW OFtABOR RUt/NGS
Q: When is a remedy of petition for certiorari available?

ANS: The way to review NLRC decisions is through the special civil action of certiorari
under Rule 65. Also, a petition for certiorari under Rule 65 of the Rules of Court will lie
only when a grave abuse of discretion or an act without or in excess of jurisdiction of the

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BEDAN RED BOOK

voluntary arbitrator is shown. The jurisdiction over such action belongs to both the CA and
the SC. Following the doctrine of hierarchy of courts, the petition should be initially
presented to the CA (St. Martin Funeral Home v. NLRC, G.R. No. 130866, September 16,
1998).
Note: The Rule on the filing of a Motion for Reconsideration of the decision of the DOLE
Secretary, NLRC and BLR Director is mandatory and jurisdictional (Diamonon v. DOLE,
G.R. No. 108951, March 7, 2000).
Q: What is the proper remedy to appeal a final order or resolution by the Court of
Appeals?
ANS: The appeal from a final disposition of the CA is a petition for review under Rule 45
and not a special civil action under Rule 65 of the 1997 Rules of Civil Procedure. Rule 45
is clear that decisions, final orders or resolutions of the CA in any case, i.e., regardless of
the nature of the action or proceedings involved, may be appealed to this Court by filing
a petition for review, which would be but a continuation of the appellate process over the
original case. This is in line with another established rule "that one of the requisites of
certiorari is that there be no available appeal or any plain, speedy and adequate remedy.
Where an appeal is available, certiorari will not prosper, even if the ground therefor is
grave abuse of discretion" (Union Sank of the Philippines v. Menju, G.R. No. 189508,
March 18, 2021).
Q: Discuss the flow of procedure from the Labor Arbiter to Supreme Court
ANS: The following is the flow of procedure of appeal from the decision of the Labor
Arbiter:
ll £1 J J
Petition for Appeal by Certiorari
.. ..
Appeal to
NLRC Certiorari in Court in the Supreme Court
•
Decision/ within 10 of Appeals (via Rule 45)
days from (via Rule 65)
Order of
the Labor receipt of within 60 days within 15 days from
Arbiter the from notice of notice of the
decision/ judgment, order, judgment or final
order or resolution order or resolution
(2011 NLRC Rules of Procedure).
E. BUREAIJOFLABORRELATIONS
Q: Discuss the exclusive and original jurisdiction of the BLR. (110)

ANS: The BLR may act on its own initiative or upon the request of either or both parties
in the following cases involving federations, national unions, industry unions, its officers
or member organizations:
1. !ntra-union conflicts;
2. !nter-union conflicts; and
3. Qther related labor relations disputes (0.0. No. 40-03, RULE XI, Sec. 5).
Q: What is an inter-union dispute?

ANS: An inter-union dispute refers to any conflict between and among legitimate labor
unions involving representation questions for purpose of collective bargaining or to any
other conflict or dispute between legitimate labor unions (0. 0 No. 40-03, Rule I, Sec.
1(x)).
Q: What is an intra-union dispute?

ANS: An intra-union dispute refers to any conflict between and among union members,
including grievances arising from any violation of the rights and conditions of membership,

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violation of or disagreement over any provision of the union's constitution and by-laws or
disputes arising from chartering or affiliation of union (0.0 No. 40-03, Rule I, Sec. (bb)).
Q: What are other related labor relations disputes?

ANS: They shall include any conflict between a labor organization and the employer or
any individual, entity, or group that is not a labor organization or worker's association.
This includes:
1. Cancellation of registration of unions and worker's associations; and
2. A petition for interpleader (0. 0 No. 40-03, Rule XI, Sec. 2).
Q: What is the venue for complaints involving independent unions, local chapters
or workers' associations?
ANS: Complaints or petitions involving labor unions with independent registrations,
"local chapters," workers' associations, or their offices or members should be filed with
the DOLE Regional Office that issued their certificates of registration or certificates of
creation of chartered local (local chapter). Complaints filed shall be resolved by:
1. DOLE Regional Director for petitions for cancellation of registration of labor
unions with independent registration, chartered locals (local chapters) and
workers' associations and petitions for deregistration of collective bargaining
agreements. For this purpose, he may appoint a Hearing Officer from the
Labor Relations Division; or
2. Mediation-Arbiter in the OOLE..Regional Office for other inter-union or
intra-union disputes and related labor relations disputes (0. 0. 40-03, RULE
XI, Sec. 5).
Q: What is the venue for complaints involving federations, national unions, or

industry unions, trade union centers and their chartered locals (local chapters)
affiliates or member organizations?
ANS: They shall be filed either with the Regional Office or the Bureau of Labor Relations.
But the complaint or petitions shall be heard and resolved by the BLR (0.0. 40-03,
RULE XI, Sec.5). .
Q: What is the remedy from an adverse decision of the Med-Arbiter or Regional

Director?
ANS: The decision of the Med-Arbiter and Reg!o.rial Director may be appealed to the
Bureau of Labor Relations by any of the parties within 10 days from receipt thereof,
copy furnished to the opposing party. The decision of the Bureau director is appealable
to the Office of the DOLE Secretary (0.0. No. 40-03, RULE XI, Sec. 16).
Note: In petitions for cancellation of union registration, if filed with the Regional Office,
the appeal is with the BLR Director. If the petition for cancellation is filed directly with the
BLR, the appeal is with the Secretary of Labor (0.0. No. 40-03, RULE XI, Sec. 16).The
decision of the Bureau or the Office of the Secretary shall become final and executory
after 10 days from receipt thereof by the parties, unless a motion for its reconsideration
is filed by any party therein within the same period. Only 1 motion for reconsideration of
the decision of the Bureau or the Office of the Secretary in the exercise of their appellate
jurisdiction shall be allowed (0. 0. No. 40-03, Rule XI, Sec. 20).
F. NATIONAL CONCILIATION AND MEDIATION BOARD
Q: What is the National Conciliation and Mediation Board (NCMB)?

ANS: The NCMB is an agency attached to the Department of Labor and Employment
principally in-charge of the settlement of labor disputes through conciliation, mediation
and of the promotion of voluntary approaches to labor dispute prevention and settlement
(2017 Revised NCMB Manual of Procedures For Conciliation and Preventive Mediation
Cases, Rule Ill, Sec. 1 [23] [hereinafter 2017 Revised NCMB Manual of Procedure]).

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Q: What are Preventive mediation cases?

ANS: Preventive mediation cases refer to the potential labor disputes which are the
subject of a formal or informal request for conciliation and mediation assistance sought
by either or both parties or upon the initiative of the NCMB to avoid the occurrence of
actual labor disputes (2017 Revised NCMB Manual of Procedure, Rule Ill, Sec. 1(28)).
Q: Who may file a request for preventive mediation?

ANS: The following may file a request for preventive mediation:
1. The president or any authorized representative of a certified or duly
recognized bargaining representative in cases of bargaining deadlocks and
unfair labor practices;
2. In the absence of a certified or duly recognized bargaining representative, the
president or any authorized representative of a legitimate labor organization
in the establishment on grounds of unfair labor practices; and
3. The employer or any authorized representative in cases of bargaining
deadlocks and unfair labor practices (2017 Revised NCMB Manual of
Procedure, Rule IV, Sec. 3).
Q: What are the guidelines in the conversion of notice to strike or lockout be into
a preventivemediation case? (V-WE-Cf-DS}
ANS: The following guidelines shall be observed:
1. Clearly determine whether the issue/s raised is/are Y.alid ground/s of NS/L;
2. If conversion is warranted, a Written recommendation from the consultation
from the Condliator-Mediator handling the case is required, after due
consultation with the Branch Director;
3. The written recommendation must be formally _§ndorseto the Branch Director
for approval;
4. The conversion shall be done before the £oiling-off period expires;
5. Parties concerned must be Eormally notified of the action taken by the
Regional Branch through a letter signed by the Conciliator-Mediator handling
the case and approved by the Branch Director;
6. The notice shall be Qropped from the dockets and to be renumbered as
preventive mediation case; and
7. A conference shall be immediately §et by the concerned Conciliator-Mediator
(2017 Revised NCMB Manual of Procedure, Rule IV, Sec. 3).
G. PHILIPPINEOVERSEASEMPLOYMENTAGENCY {POEA}
Note: The 2022 Labor Law Syllabus still includes POEA under Jurisdictions and Reliefs.
However, on December 30, 2021, President Duterte approved R.A. No. 11641, otherwise
known as the "Department of Migrant Workers Act", where the POEA, the Office of the
Undersecretary of Migrant Workers' Affairs (OUMWA), all Philippine Overseas Labor
Offices (POLO), the International Labor Affairs Bureau (ILAB), National Reintegration
Center for OFWs (NRCO), the National Maritime Polytechnic (NMP), and the Office of the
Social Welfare Attache (OSWA) are consolidated and merged, and thereby constituted
as the Department of Migrant Workers.
The Department of Migrant Workers shall absorb all the powers, functions, and mandate
of POEA and all the entities enumerated and shall be the primary agency under the
Executive Branch of the government tasked to protect the rights and promote the welfare
of OFWs regardless of status and means of entry into the country of destination.
R.A No. 11641, which was approved beyond the 2022 Bar examination coverage period,
was not discussed in this chapter.

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Q: What is the POEA?

ANS: The POEA is a government agency who has taken over the functions of the
Overseas Employment Development Board (OEDB) and National Seamen Board (NSB).
It is also mandated to manage the country's overseas employment program, to ensure
that job opportunities for Filipinos overseas are legitimate as well as to monitor and
regulate recruitment agencies in the Philippines (E. 0. 797, Sec. 4; RA 9422 or the Migrant
Workers' and Overseas Filipinos Act of 1995, as amended).
Q: What are the powers of POEA?

ANS: POEA has the power to:
1. Suspend or cancel license; and
2. Order the refund or reimbursement of such illegally collected fees (Eastern
Assurance and Surety Corp. v. Secretary of Labor, G.R. Nos. 79436-50,
January 17, 1990).
Q: What are the cases under the original and exclusive jurisdiction of POEA?
ANS: Adjudicatory Functions (Jurisdiction Retained with POEA):
1. Administrative cases involving violations of licensing rules and regulations
and registration of recruitment and employment agencies or entities; and
2. Disciplinary action cases and other special cases which are administrative in
character, involving employers, principals, contracting partners and Filipino
migrant workers (/RR of RA No. 8042, Rule X, Sec. 6).
Note: Jurisdiction over claims arising out of an employer-employee relationship or by
virtue of any law or contract involving Filipino workers for overseas deployment including
claims for actual, moral, exemplary and other forms of damages has been transferred to
the Labor Arbiters of the NLRC (R.A. No. 8042, Sec. 10).
Q: Where are disciplinary action cases filed?

ANS: II should be filed with the Adjudication Office or Regional Office of the POEA, as
the case may be. The POEA may motu proprio undertake disciplinary action against a
worker. It shall establish a system of watching and blacklisting (POEA Rules, Book VII,
Rule VII).
Q: Is the clause "or for three months for every year of the unexpired term,
whichever is less" under Sec 10(5) of the Migrant Workers and Overseas Filipinos
Act constitutional?
ANS: The "or for three months for every year of the unexpired term, whichever is less"
in Sec. 10(5) of R.A. No. 8042 is an unconstitutional clause. The Supreme Court was
aware that said clause was reinstated in Sec. 7 of R.A. No. 10022. However, when a law
or a provision of law is null because it is inconsistent with the Constitution, the nullity
cannot be cured by reincorporation or reenactment of the same or similar law or provision.
A law or provision of law that was already declared unconstitutional remains as such
unless the circumstances have so changed as to warrant a reverse conclusion. The Court
reiterated its finding in Serrano v. Gallant Maritime that limiting wages that should be
recovered by an illegally dismissed overseas worker to three months is both a violation of
due process and the equal protection clause of the Constitution" (Sameer Overseas
Placement Agency Inc., v. Cabiles, G.R. No. 170139, August 5, 2014).
Q: What are the ground for disciplinary action?

ANS: Commission by the worker of any of the offenses enumerated below or of similar
offenses while working overseas shall be subject to appropriate disciplinary actions as
the POEA may deem necessary:
1. Commission of a felony punishable by Philippine laws or by the laws of the
host country;
a. Drug addiction or possession or trafficking of prohibited drugs;

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b. Desertion or abandonment;
c. Drunkenness, especially where the laws of the host country prohibit
intoxicating drinks;
d. Gambling, especially where the laws .of the host country prohibit the
same;
e. Initiating or joining a strike or work stoppage where the laws of the host
country prohibit strikes or similar actions;
f. Creating trouble at the worksite or in the vessel;
g. Embezzlement of company funds or of moneys and properties of a fellow
worker entrusted for delivery to kins or relatives in the Philippines;
h. Theft or robbery;
i. Prostitution;
j. Vandalism or destroying company property;
k. Gunrunning or possession of deadly weapons;
I. Unjust refusal to depart for the worksite after all employment and travel
documents have been duly approved by the appropriate government
agency/ies; and
m. Violation/s of the laws and sacred practices of the host country and
unjustified breach of government-approved employment contract by a
worker (2016 POEA Rules and Regulations Governing Overseas
Employment, Secs. 143-145).
Q: Who has appellate jurisdiction over POEA decisions?

ANS: POEA decisions on cases within its jurisdiction are appealable not to the NLRC
nor directly to the Court of Appeals but to the Secretary of Labor. As specifically provided
in the POEA Rules and Regulations of 2003: "The Secretary shall have the exclusive and
original jurisdiction to act on appeals or petition for review of disciplinary action cases
decided by the Administration [POEA]." The Secretary's appellate jurisdiction is part of its
power of supervision and control recognized in the Revised Administrative Code of 1987
(Eastern Mediterranean Maritime v. Surio, et al., G.R. No. 154213, August 23, 2012).
DIRECTORS
H. DOLEREGIONAL
Q: What is the subject of the visitorial and enforcement power?

ANS: The visitorial and enforcement powers given to the Secretary of Labor is relevant
to, and exercisable over establishments, not over the individual members/employees,
because what is sought to be achieved by its exercise is the observance of, and/or
compliance by, such firm/establishment with the labor standards regulations. Necessarily,
in case of an award resulting from a violation of labor legislation by such establishment,
the entire members/employees should benefit therefrom (Maternity Children's
Hospital v. Secretary of Labor, G.R. No. 78909, June 30, 1989).
Q: What is covered by the enforcement power under Article 128? (CRESt)

ANS: The enforcement power under Article 128 covers:
1. The power to issue _g_omplianceorders to give effect to the labor standards
provisions of the Labor Code and other labor legislation based on the findings
of labor employment and enforcement officers or industrial safety engineers
made in the course of inspection;
2. The power to require employers to keep and maintain such employment
ftecords as may be necessary in aid of his visitorial and enforcement powers;
3. The power to issue writs of gxecution to the appropriate authority for the
enforcement of their orders, except in cases where the employer contests the
findings of the labor employment and enforcement officer and raises issues
supported by documentary proofs which were not considered in the course of
inspection; and

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4. The power to order Stoppage of work or suspension of operations of any

unit or department of an establishment when non-compliance with the law or
implementing rules and regulations poses grave and imminent danger to the
health and safety of workers in the workplace.
Q: When may the DOLE Regional Director be divested of his jurisdiction under
Article 128(b)? (CEN)
ANS: Under the exception clause in Article 128 (b) of the Labor Code, the Regional
Director may not be divested of his jurisdiction over these claims, unless 3 elements
concur, namely:
1. That the employer £ontests the findings of the labor regulationofficer and
raises issues thereon;
2. Thal in order to resolve such issues, there is a need to examine gvidentiary
matters; and
3. That such matters are Not verifiable in the normal course of inspection (SSK
Parts Corporation v. Camas, G.R. No. 85934, January 30, 1990).
Q: What are the differences between Article 128 and Article 129 of the Labor Code?
ANS: The differences between Article 128 and Article 129 of the Labor Code are
as follows:
Article 128 Article 129

As to nature Vis,torial and enforcement Adjudicatory power
of power powers
As to who Secretary of Labor or his duly Regional Director or any duly

exercises authorized representative who authoriZed hearing officer of
the power may or may not be a Regional DOLE.
Director.
Asto Requires existence of Et2Ee Er-Ee. . . re!.;!tionl!ihip is not
existence of relationship. necessary since it should not
Er-Ee include a claim for reinstatement.
relationship
As to how Enforcement power is an Swom complaint filed by
initiated offshoot of visitorial power. interested party.
Asto Aggregate claim of each

limitation as complainant does not exceed
to amount P5,000.
Asto Appeal to Sec. of Labor, within Appeal to NLRC, within 5 calendar
remedy 10 calendar days; Decision days.
may be elevated to the Court
of Appeals (CA) through
certiorari.
(LABOR CODE, Arts. 128 and 129).
Q: What are the differences between the visitorial powers under Article 37 and
Article 289?
ANS: The differences between the visitorial powers under Article 37 and Article 289 of
the Labor Code are as follows:

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Article 37 Article 289
Asto
purpose
To inspect the premises, books
of accounts and records of any
covered person or entity, to organizations
.. •••
require it to submit reports
regularly on prescribed forms,
and act on violation of any
provisions in relation to
recruitment and placement of
workers for both local and
overseas employment
As to when At any time Upon the filing of a complaint under
may be oath and duly supported by the
exercised written consent of at least 20% of
the total membership of the labor
organization concerned
Note: Such inquiry or examination

shall not be conducted during the
60,day freedom period nor within
the 30 days immediately preceding
the date of election of union officials
(As amended by Section 31,
Republic Act No. 6715, March 21,
1989)
(LABOR CODE, Arts. 37 and 289).
Note: It is the DOLE Regional Directors, as the DOLE Secretary's duly authorized
representatives, who have the original jurisdiction to exercise the visitorial powers under
Articles 37 and 289. The Role of the DOLE Secretary is appellate in nature (CHAN
REVIEWER, supra at 747).
Q: What is the remedy from a decision of the DOLE Regional Director under
Article 128?
ANS: An appeal to the Secretary of Labor and Employment within 10 calendar days from
receipt of the order (Rules on the Disposition of Labor Standard Cases in the Regional
Offices, Rule IV, Sec. 1).
Q: What are the requisites for the valid exercise of jurisdiction under Article 129?
(EN-5)
ANS: The following requisites must all concur, to wit:
1. The claim is presented by an gmployee or person employed in domestic or
household service or househelper;
2. The claimant, no longer being employed, does Not seek reinstatement; and
3. The aggregate money claim of the employee does not exceed ~.§.,000.00.
Q: What is the remedy from an adverse decision of the DOLE Regional Director
under Article 129?
ANS: Any decision or resolution of the Regional Director or hearing officer pursuant to
this provision may be appealed on the same grounds provided in Article 223 of the Labor
Code, within 5 calendar days from receipt of a copy of said decision or resolution, to the
National Labor Relations Commission which shall resolve the appeal within 10 calendar
days from the submission of the last pleading required or allowed under itsrules (LABOR
CODE, Art. 129).

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I. DOlESECllETAllY
Q: What is the power of assumption of jurisdiction by the DOLE Secretary?

ANS: When, in his opinion, there exists a labor dispute causing or likely to cause a strike
or lockout in an industry indispensable to the national interest, the Secretary of Labor and
Employment may assume jurisdiction over the dispute and decide it or certify the same to
the Commission for compulsory arbitration (LABOR CODE, Arl. 27B(g)).
Q: What is the voluntary arbitration power of the DOLE Secretary?

ANS: Either or both the employer and the certified collective bargaining agent (or the
representative of the employees where there is no certified bargaining agent) may
voluntarily bring to the SOLE, through a request for intervention, any potential or ongoing
dispute defined below. A potential or ongoing dispute refers to a live and active dispute
that may lead to a strike or lockout or to massive labor unrest and is not the subject of
any complaint or notice of strike or lockout at the time a request for intervention is made
(DOLE CIRCULAR NO. 1-06).
Q: What is the mode for reviewing the decision of the DOLE Secretary?
ANS: The Labor Code and its implementing and related rules generally do not provide
for any mode for reviewing the decision of the Secretary of Labor. However, the SC
ruled that the proper remedy is Rule 65 and which should be initially filed in the Court of
Appeals in strict observance of the doctrine ()fl the hierarchy of courts. Accordingly, the
SC read "the appropriate court" in Section 15,RuleXI, Book V of the Implementing Rules
to refer to the Court of Appeals (National federation oft.alior v. Laguesma, G.R. No.
123426, March 10, 1999). ·
J. GRIEVANCEMACHINERY
Q: What is grievance? (CPV)

ANS: A grievance is any question raised bYeither the etnployer:or the union regarding
any of the following issues or controversies:
1. The interpretation or application of the _g_BA;
2. The interpretation or enforcement of company f.ersonnel policies; or
3. Any claim by either party that th~ gtherparty is.)liolating any provisions of the
CBA or company personnel pollcies (Sec. 1, Rufe I, Book V, Rules to
Implement the Labor Code).
Note: To be grievable, the violations of the CBA should be simple or ordinary, and not
gross in character, otherwise they shall be considered Unfair Labor Practice which is
under the original and exclusive jurisdiction or the Labor Arbiter (CHAN REVIEWER,
supra at 978).
Q: What is grievance machinery?

ANS: It refers to the mechanism for the adjustment and resolution of grievances arising
from the interpretation or implementation of a CBA and those arising from the
interpretation or enforcement of company personnel policies (LABOR CODE, Arl. 273).
Q: What is grievance procedure?

ANS: This refers to the series of formal steps that parties to a CBA agreed to take for
the adjustment of grievances or questions arising out of the interpretation or
implementation of the CBA or company personnel policies, including voluntary arbitration
as the terminal step (No. 12, NCMB Primer on Grievance Machinery and Voluntary
Arbitration).

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Q: What are the CBA provisions subject of grievance machinery?

ANS: The two kinds of CBA provisions that are subject of grievance machinery are:
1. Economic or non-political provisions - have direct and measurable
monetary cost consequences such as wage rates, paid leaves, pensions,
health and welfare plans and other fringe benefits.
2. Political or non-economic provisions - provisions whose monetary cost
cannot be directly computed, i.e. No-strike-no-lockout,union security clause,
management rights clause, check-off clause, grievance procedure (No. 9,
NCMB Primer on Grievance Machinery and Voluntary Arbitration).
Note: When the violation of the CBA consists in flagrant and/or malicious refusal to
comply with the economic provisions, the same shall be treated as an unfair labor practice
act and shall not be treated as a grievable issue (LABOR CODE, Arl. 274).
Q: What are company personnel policies?

ANS: These policies deal with matters affecting efficiency and well-being of employees
and include, among others, the procedures in the administration of wages, benefits,
promotions, transfer and other personnel movements which are usually not spelled out in
the CBA (No. 10, NCMB Primer on Grievance Machinery and Voluntary Arbitration).
Q: Who has the right to bring or initiate a grievance?

ANS: The union designated by the majority of the employees being their exclusive
bargaining representative, are generally recognized as having the right to initiate, file or
present a grievance (No. 25, NCMB Primer on Grievances Machinery and Voluntary
Arbitration). However, an Individual employee or group of employees shall have the right
at any time to present grievances to their employer (LABOR CODE, Article 267). The
employer may likewise have the right to initiate grievance when such right is granted to
him in the CBA.
Q: What is the remedy for unresolved grievances?

ANS: All grievances submitted to the grievance machinery which are not settled within
7 calendar days from the date of its submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement (NCMB Revised Procedural
Guidelines in the Conduct of Voluntary Arbitration Proceedings). Resort to voluntary
arbitration from grievance machinery is in the nature of appeal. This may be gleaned from
the provisions of Art. 273, in relation to Art. 274 that all grievances which are not settled
or resolved within 7 calendar days from the dale of their submission for resolution to the
last step of the grievance machinery shall automatically be referred to voluntary arbitration
prescribed in the CBA (LABOR CODE, Arl. 273).
Q: What are the grievances which may be brought directly to voluntary arbitration
without coursing it through grievance machinery?
ANS: A grievance may be brought directly to voluntary arbitration when:
1. The same has been proven to be ineffective in the past; or
2. The parties inadvertently failed to include a grievance machinery provision in
their CBA (Sec. 3, Rule CIC, Book V, NCMB Revised Procedural Guidelines
in the Conduct of Voluntary Arbitration Proceedings);
3. Estoppel, either because of failure to question the jurisdiction of the Labor
Arbiter (Philimare Shipping & Equipment Supply, Inc., v. NLRC, G.R. No.
126764, December. 23, 1999), or by actively participating in the proceedings
(Central Pangasinan Electric Cooperative, Inc., v. Macaraeg, G.R. No.
145800, January 22, 2003); and
4. Upon agreement of the parties, as provided under Art. 275 of the Labor Code
(Alipasok v. Radio Philippines Network, G.R. No. 138094, May 29, 2003).

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K. VOI.UNTARYARBITRATOR
Q: Who is a voluntary arbitrator?

ANS: A voluntary arbitrator refers to any person who has been accredited by the Board
as such, or any person named or designated in the collective bargaining agreement by
the parties as their voluntary arbitrator, or one chosen by the parties with or without the
assistance of the board, pursuant to a selection procedure agreed upon in the CBA or
one appointed by the board in case either of the parties to the CBA refuses to submit to
voluntary arbitration. the term includes panel of voluntary arbitrators (Revised Procedural
Guidelines in the Conduct of Voluntary Arbitration Proceedings, Rule II, Sec.1 (e)).
Q: What are the powers of a voluntary arbitrator? (RSTE)

ANS: The voluntary arbitrator shall have the following powers:
1. ,Bequire any person to attend hearing(s);
2. §.ubpoena witnesses and receive documents when the relevancy of the
testimony; and the materiality thereof has been demonstrated to the
arbitrators:
3. Iake whatever action is necessary to resolve the issue/s subject of the
dispute; and
4. Issue a writ of gxecution to enforce final decisions, and, in connection
therewith, it shall be his duty to: {DICE)
a. Qetermine every question offact and law which may be involved in the
execution;
b. !nquire into the correctness of the execution of the decision;
c. ~onsider any supervening event during such execution; and
d. gnsure satisfaction of decision (NCMB GUIDELINES, Rule V, Sec. 3).
Q: What is a grievance?
ANS: A grievance is a complaint arising from the interpretation or implementation of
the collective bargaining agreement (CBA) and those arising .from interpretation or
enforcement of company rules and regulations, personnel Policies, and established
practices, or such other controversy involving employer-employee relationship (Revised
Procedural Guidelines in the Conduct of Voluntary Arbitration Proceedings, Rule II, Sec. 1
(g)).
Q: What is a Grievance Procedure?

ANS: II refers to the system of grievance settlement as provided for in the collective
bargaining agreement. It usually consists of successive steps starting at the level of
complainant and his immediate supervisor and ending, when necessary, at voluntary
arbitration (Revised Procedural Guidelines in the Conduct of Voluntary Arbitration
Proceedings, Rule II, Sec. 1 (h)).
Q: What are the cases that must be referred to the grievance machinery and
voluntary arbitration?
ANS: The following are cases which must be disposed of by the Labor Arbiter by
referral to the grievance machinery and voluntary arbitration:
1. Disputes on the interpretation or implementation of CBA; and
2. Disputes on the interpretation or enforcement of company personnel policies
(2011 NLRC RULES OF PROCEDURE, Rule V, Sec. 1).
Q: What happens to unresolved grievances?

ANS: All grievances submitted to the grievance machinery which are not settled within
7 calendar days from the date of its submission shall automatically be referred to
voluntary arbitration prescribed in the Collective Bargaining Agreement (LABOR CODE,
Art. 273).

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Q: What is the precondition for judicial resort when a grievance procedure is

established?
ANS: It is settled that when parties have validly agreed on a procedure for resolving
grievances and to submit a dispute to voluntary arbitration then that procedure should
be strictly observed. Moreover, before a party is allowed to seek the intervention of the
court, it is a precondition that he should have availed of all the means of administrative
processes afforded him (Octavio v. Philippine Long Distance Telephone Company, G.R.
No. 175492, February 27, 2013).
Q: Who are bound by the decision of the voluntary arbitrator?

ANS: When the voluntary arbitration submission covers matters affecting third parties
who are not parties to the voluntary arbitration and over whom the voluntary arbitrator has
no jurisdiction, the voluntary arbitration ruling cannot bind them. Thus, the voluntary
arbitration process and ruling can only be recognized as valid between its immediate
parties as a case arising from their collective bargaining agreement (Temic Automotive
Philippines v. Temic Automotive Philippines, Inc., Employees Union, G.R. No. 186965,
December 23, 2009).
Q: Who has original and exclusive jurisdiction over unfair labor practices,
termination disputes, and claims for damages?
ANS: The original and exclusive juriscliction of the labor arbiter over unfair labor
practices, termination disputes, and claims for damag.es cannot be arrogated into the
powers of voluntary arbitrators in the absence of an express agreement between the
union and the company. A reading of Article 217 in conjunction with Article 262 shows
that termination disputes fall under the jurisdiction of the labor arbiter unless the union
and the company agree that termination disputes shouk;l be submitted to voluntary
arbitration. Such agreement should be clear and unequivocal (Landtex Industries v. CA,
G.R. No. 150278,August9, 2007).
Q: What is the period to appeal the decision of the Voluntary Arbitrator to the CA?
ANS: The petition for review shall be filed within 15 days pursuant to Section 4, Rules
43 of the Rules of Court. The 10-day period slated in Article 276 should be understood as
the period within which the party adversely affected by the ruling of the Voluntary
Arbitrators or Panel of Arbitrators may file a motion for reconsideration. Only after the
resolution of the motion for reconsideration may the aggrieved party appeal to the CA by
filing the petition for review under Rule 43 of the Rules of Court within 15 days from notice
pursuant to Section 4 of Rule 43 (Guagua National Colleges v. CA, G.R. No. 188492,
August 28, 2018).
L PRESCRIPT/ONOFACTIONS
Money Claims
Q: What is the prescriptive period for money claims arising from employer-
employee relations?
ANS: All money claims arising from employer-employee relations accruing during the
effectivity of the Labor Code shall be filed within 3 years from the time the cause of action
accrued, otherwise they shall be forever barred (LABOR CODE, Art. 291).
Q: What are the exceptions to the 3-year prescriptive period for money claims
arising from employer-employee relationship?
ANS: Art. 306 of the Labor Code on the 3-year prescriptive period for money claims
arising from employer-employee relationship does not cover money claims consequent
to an illegal dismissal, such as backwages and damages due to illegal dismissal. These
claims are governed by Art. 1146 of the Civil Code, wherein actions upon injury to rights

lOMoARcPSD|11893536
of the plaintiff must be instituted within 4 years (Protective Maximum Security Agency,
Inc., v. Fuentes, G.R. No. 169303, February 11, 2015).
Q: When does the cause of action accrue?

ANS: II is a settled jurisprudence that a cause of action has three elements, to wit:
1. A right in favor of the plaintiff by whatever means and under whatever law it
arises or is created;
2. An obligation on the part of the named defendant to respect or not to violate
such right; and
3. An act or omission on the part of such defendant violative of the right of the
plaintiff or constituting a breach of the obligation of the defendant to the
plaintiff.
In the computation of the three-year prescriptive period, a determination must be made

as to the time when the act constituting a violation of the workers' right to the benefits
being claimed was committed (J Marketing Corporation v. Taran, G.R. No. 163924, June
18, 2009).
Q: When may the period of prescription be disregarded?

ANS: There is an ample justification not to follow the prescriptive period when the
delay of filing the complaint was by reason ofthe reliance by the employee on the promise
of the employer that he would be paid, as in the case of promissory estoppel (Accessories
Specialist v. Alabanza, G.R. No. 168985, JQ,V2~,2908)
Q: What is the principle of promissory estoppel?

ANS: Promissory estoppal may arise from the making of a promise, even though without
consideration, if it was intended that the promise should be relied upon, as in fact it was
relied upon, and if a refusal to enforce it would virtually sanction the perpetration of fraud
or would result in other injustice. Promissory estoppel presupposesthe existence of a
promise on the part of one against whom estoppel is clain,,ed.The promise must be plain
and unambiguous and sufficiently specific so that the court can un!ferstand the obligation
assumed and enforce the promise according to its terms (Accessories Specialist v.
Alabanza, G.R. No. 168985, July 23, 2008).
Q: When does the cause of action for Servi~e1,-~tttjy:e Leave accrue?

ANS: The 3-year prescriptive period commences, not al the end of the year when the
employee becomes entitled to the commutation of his service incentive leave, but from
the time when the employer refuses to pay its monetary equivalent after demand of
commutation or upon termination of the employee's services (Auto Bus Transport v.
Bautista, G.R. No. 156367, May 16, 2005).
Illegal Dismissal
Q: What is the prescriptive period for the filing of a complaint for illegal
dismissal?
ANS: The prescriptive period for filing an illegal dismissal complaint is 4 years from the
time the cause of action accrued. This 4-year prescriptive period, not the 3-year period
for filing money claims under Article 291 of the Labor Code, applies to claims for
backwages and damages due to illegal dismissal. The four-year prescriptive period under
Article 1146 also applies to actions for damages due to illegal dismissal since such actions
are based on an injury to the rights of the person dismissed (Arriola Pilipino Star Ngayon,
G.R. No. 175689, August 13, 2014).

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untairlaborPracuce
Q: What is the prescriptive period for the filing of a complaint for unfair labor
practice?
ANS: All unfair labor practice arising from Book V shall be filed with Labor Arbiter within
1 year from accrual of such unfair labor practice; otherwise, they shall forever be barred
Q: What is the pre-requisite for filing a criminal case for unfair labor practice?
ANS: No criminal prosecution under this Title (Unfair Labor Practices) may be instituted
without a final judgment finding that an unfair labor practice was committed, having been
first obtained in an administrative proceeding. During the pendency of such administrative
proceeding, the running of the period of prescription of the criminal offense herein
penalized shall be considered interrupted: Provided, however, that the final judgment in
the administrative proceedings shall not be binding in the criminal case nor be considered
as evidence of guilt but merely as proof of compliance of the requirements therein set
forth (LABOR CODE, Art. 258).
OffensesunderthelaborCode
Q: What is the prescriptive period for. the filing of a complaint for offenses under
the Labor Code?
ANS: Offenses penalized under the Labor Code and the rules and regulations issued
pursuant thereto shall prescribe in 3 years (LABOR CODE, Art. 305).
Illegal Recruitment
Q: What is the prescriptive period for the filing of a complaint for illegal
recruitment?
ANS: The following are the prescriptive periods for the filing of a complaint for illegal
recruitment:
1. Simple illegal recruitment cases - the prescriptive period is 5 years; and
2. Illegal recruitment cases involving economic sabotage - the prescriptive
period is 20 years (R.A. No. 8042, Sec. 12).
Summary of Periods of Prescription:
Cause Period of Prescription
Money Claims 3 years from the accrual of the causes of action

CODE, Art. 307)
Illegal Dismissal and 4 years from the accrual of the cause of action (Arriola v.
Reinstatement Pilipino Star Ngayon, Inc., G.R. No. 175689, August 13, 2014;
CIVIL CODE, Art. 1146).
ULP 1 year from the accrual of the cause of action (LABOR CODE,
Art. 305).
Offenses Under the 3 years from the lime of commission (LABOR CODE, Art.
Labor Code 305).
Actions Involving 3 years from the date of submission of the financial report
Funds of the Union (/RR of LABOR CODE, Book VII, Rule II, Sec. 5).

lOMoARcPSD|11893536
Cause Period of Prescription
Illegal Recruitment 5 years from commission if simple (LABOR CODE, Art. 305);
Cases 20 years if involving economic sabotage (Sec. 12, R.A. No.
8042).
Failure to Remit SSS 20 years from the time the delinquency is known or the
Contributions assessment is made by the SSS, or from the time the benefit
accrues, as the case may be (R.A. No. 11199, Sec. 22 (b)}.
Sexual Harassment 3 years (R.A. No. 7877, Sec. 7)

lOMoARcPSD|11893536
SYLLABUS FOR THE 2022 BAR EXAMINATIONS

LABOR LAW AND SOCIAL LEGISLATION
NOTE: This syllabus is an outline of the key topics that fall under the core subject "Labor
Law and Social Legislation" Accordingly, all Bar candidates should be guided that only laws,
rules, issuances, and jurisprudence pertinent to these topics as of June 30, 2021 are
examinable materials within the coverage of the 2022 Bar Examinations.
I. GENERAL
PRINCIPLES
A. Basic policy on labor
B. Construction in favor of labor
C. Burden of proof and quantum of evidence in labor cases
D. Legal basis under the 1987 Constitution, Civil Code, and Labor Code
II. RECRUITMENT
AND PLACEMENT
OF WORKERS
A. Recruitment and placement (Labor Code and R. A. No. 8042, as amended by
R.A. No. 10022)
1. Illegal recruitment and other prohibited activities
a. Elements
b. Types of illegal recruitmenf
C. Illegal recruitment vs. estafa
2. Liability of local recruitment agency and foreigh employer
a. Sojidary liability
b. Theory of imputed knowledge
3. Entities prohibited from recruiting
4. Cancellation of license or authority
5. Termination of contract of migrant worker without just or valid cause
6. Ban on direct hiring, exceptions ·
B. Employment of non-resident aliens
Ill. LABORSTANDARDS
1. Employer-employee relationship
2. Test to determine existence
3. Employee vs. independent contractor
A. Conditions of employment
1. Covered employees/workers
2. Hours of work
a. Normal hours of work; hours worked
b. Meal periods
c. Night-shift differential
d. Overtime work
e. Compressed work week, flexible work arrangement, alternative work
arrangements, telecommuting program
3. Rest periods
4. Holidays
5. Service charges
6. 13th month pay
B. Wages
1. Payment of wages
2. Prohibitions regarding wages
3. Facilities vs. supplements
4. Minimum wage

lOMoARcPSD|11893536
5. Wage distortion
6. Non-diminution of benefits
C. Leaves
1. Service incentive leave
2. Expanded Maternity leave
3. Paternity leave
4. Parental leave for solo parents
5. Leave benefits for women workers under R.A. No. 9710 and R.A. No. 9262
D. Special groups of employees
1. Women
a. Discrimination
b. Stipulation against marriage
c. Prohibited acts
2. Minors (R.A. No. 7610, as amended by R.A. No. 9231)
a. Child labor vs. working child
b. Allowed working hours and industries of a working child
c. Prohibited acts
3. Kasambahay (R.A. No. 10361)
4. Homeworkers
5. Night workers
6. Persons with Disabilities
a. Discrimination
b. Incentives for employers .....
E. Sexual Harassment in the work envirohrrtent'
1. Anti-Sexual Harassment Act (RA No. 7877)
2. Safe Spaces Act (R.A. No. 11313)
IV. SOCIAL WELFARE LEGISLATION

A. SSS Law (R.A. No. 8282)
1. Coverage and exclusions
2. Dependents and beneficiaries
3. Benefits
8. GSIS Law (R.A. No. 8291)
1. Coverage and exclusions
2. Dependents and beneficiaries
3. Benefits
C. Limited Portability Law (R.A. No. 7699)
D. Disability and death benefits
1. Labor Code
2. POEA-Standard Employment Contract for Seafarers
V. LABOR RELATIONS
A. Right to self-organization
1. Who may join, form, or assist labor organizations or workers' associations
2. Restrictions as to managerial employees, supervisory employees,
confidential employees, employee-members of cooperatives, alien
employees, and government employees
3. Determination of appropriate bargaining unit (ABU), effect of inclusion of
employees outside of the ABU
4. Non-interference with workers' rights to self-organization

lOMoARcPSD|11893536
B. Legitimate labor organizations

1. Registration with the DOLE
2. Cancellation of registration
3. Affiliation/disaffiliation from national union or federation
4. Rights of legitimate labor organizations
5. Rights and conditions of membership in legitimate labor organizations
6. Check off, assessments, union dues, and agency fees
7. Union security clause
C. Bargaining representative
1. Modes to acquire status as Sole and Exclusive Bargaining Agent (SEBA)
a. SEBA Certification
b. Certification/Consent Election
c. Bars to the holding of Certification/Consent Election
d. Failure of election, Run-Off Election, Re-run election
e. Employer as a mere bystander rule
D. Collective bargaining
1. Duty to bargain collectively, bargaining in bad faith
2. Collective bargaining agreement (CBA), mandatory provisions
3. Signing, posting, registration
4. Term of CBA, freedom period
E. Unfair Labor Practices
1. Nature, aspeyts
2. By employers,
3. By labor organiz~.tibns
F. Peaceful concerted"activities
1. Strikes
a. GrPunds for strike
b. M$ndatqry procedural requirements
c. Legal slrlke vs; illegal strike
d. Prohibitep acts during strike •
e. Liability of union officers and members for illegal strike and illegal acts
during strike · ..
2. Picketing
3. Lockouts
a. Grounds for Lockout·
b. Mandatory. prqcedural requirements
4. Assumption of jurisdiction by the DQLE Secretary
5. Injunctions •
VI. TERMINATION
OFEMPLOYMENT
A. Security of tenure
1. Categories of employment as to tenure
a. Regular
b. Casual
c. Probationary
d. Project
e. Seasonal
f. Fixed-term
g. Work-pool employees
2. Legitimate subcontracting vs. labor-only contracting
a. Elements
b. Trilateral relationship
c. Solidary liability

lOMoARcPSD|11893536
B. Termination by employer
1. Substantive due process
a. Just causes
b. Authorized causes
2. Procedural due process
a. Two-notice rule
3. Illegal dismissal, reliefs therefrom
a. Reinstatement
b. Backwages
c. Separation pay, doctrine of strained relations
d. Damages
e. Attorneys' fees
f. Liabilities of corporate officers
g. Burden of proof
C. Termination by employee
1. Resignation versus constructive dismissal
2. Abandonment
D. Preventive Suspension
E. Floating status
F. Retirement
VII.MANAGl;MINTPREROGATM
A. Discipline
B. Transfer of employees
C. Productivity standards
D. Bonus
E. Change of working hours ._._
F. Bona Fide Occupational Qualificatio~~
G. Post-employment restrictions .
H. Clearanceprocedures If; ,.,r,,,,,_,,,,),,c;:;,:>.
I. Limitations on management prerogat,l!?e;police p~,f~r,~•:State
vrn.JUR,Sl>ICTION
ANDREUEFS
A. Mandatory conciliation-mediation,
B. Labor Arbiter
C. National Labor Relations Commission
D. Judicial review of labor rulings
E. Bureau of Labor Relations
F. National Conciliation and Mediation Board
G. POEA
H. DOLE Regional Directors
I. DOLE Secretary
J. Grievance machinery
K. Voluntary arbitrator
L. Prescription of actions
1. Money claims
2. Illegal dismissal
3. Unfair labor practice
4. Offenses under the Labor Code
5. Illegal recruitment

lOMoARcPSD|11893536
BEDAN RED BOOK

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Hofilena, S. (2016). International Law. Manila: Baybayin Publishing
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BEDAN REDBOOK
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SEDAN RED BOOK

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_UtinOinnibus Glorific~tilrDe,y,s
That in all things, God may be glorified.
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2022 San Beda Red Book - Labor Law

College of Law (Arellano University)

Studocu is not sponsored or endorsed by any college or university

LABOR LAW AND SOCIAL

ANA MARIA BEATRICEG. DIMAILIG

MICAH MARIE F. NAADAT Labor Standards

KYLELIVEN DAVE ANDRINO MUJAHEEDABDUL JAMIL S. MAMBUAY

ATTY. JOYRICH M. GOLANGCO

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II. GENERAL PRINCIPLES OF TAXATION............................................... 11

Ill. LEGISLATIVE DEPARTMENT.............................................................. 41

IV. EXECUTIVE DEPARTMENT................................................................. 57

V. JUDICIAL DEPARTMENT ..................................................................... 72

D. Appointments to the judiciary ......................................................... 76

A. Suffrage .......................................................................................... 173

XIII. NATIONAL ECONOMY AND PATRIMONY.......................................... 225

XIV. SOCIAL JUSTICE AND HUMAN RIGHTS ............................................ 229

XV. AMENDMENTS OR REVISIONS OF THE CONSTITUTION ................ 231

XVII. PUBLIC INTERNATIONAL LAW .......................................................... 234

LABORLAW AND SOCIAL LEGISLATION

I. DOLE Secretary ............................................................................. 451

c_ Rights and obligations of parties ----------------------------------------------------

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This is the intellectual property of

Any unauthorized copying, reproduction, modification, or storage of any portion of this

ALL RIGHTS RESERVED

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LABOR LAW AND

Q: What is the basic policy under the Labor Code?

Q: What is the state policy towards security of tenure?

Q: What is social justice?

Q: How is social justice applied to labor?

Q: What is the state policy towards equal work?

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BEDAN RED BOOK

Q: What is the state policy towards right to self-organization and collective

Q: How are the provisions of the Labor Code construed?

C. BURDENOFPROOFANDQUANTUMOF EVIDENCEIN LABOR CASES

Q: What is the quantum of evidence required in labor cases?

D. LEGALBASIS UNDER THE 1987 CONSTITUTION, CIVIL CODE, AND LABOR

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BEDAN RED BOOK

d. The State affirms labor as a primary social economic force. It shall

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BEDAN RED BOOK

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Q: Who are covered by the Labor Code?

Q: Who are not covered by the Labor Code? (CELFIG)

II. Recruitment aml elacememt of Workers

Illegal Recruitment and Other Prohibited Activities

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SEDAN RED BOOK

individual or entity is engaged in recruitment and placement whenever he or it is dealing

Q: Is the concept of illegal recruitment applicable to both local and overseas

Q: Who may commit illegal recruitment?

Q: What acts constitute illegal recruitment when committed by a non-licensee or

Q: What acts constitute illegal recruitment when committed by ANY PERSON,

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Q: What are the types of illegal recruitment?

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2. Illegal recruitment involving economic sabotage