LABOR RELATIONS
age 65 (mandatory) to 70 (with approval)
1. INTRODUCTION
- 3 Parties: (a) Employer; (b) Employee; (c)
Representatives of Employees
- ER-EE relationship? Exceptions: (a) Illegal
Recruitment; (b) Labor-only Contracting; (c)
Yellow Dog Doctrine
- ART. XIII, SEC. 3, 1987 Constitution
- RA 10395 Tripartism
- RA 10396 Mechanisms for Settling Disputes
o Conciliation – disinterested 3rd party
o Mediation – 3rd party merely facilitates
the communication process
o Arbitration – allowed by law to accept
pieces of evidence to come up with a
decision
- Principle of Shared Responsibility –
balance between the rights of the employers
and employees
- Principle of Non-Oppression – capital and
labor should not act oppressively against each
other
- Labor Disputes:
o Labor Standards Disputes
o Labor Relations Disputes
2. NATIONAL LABOR RELATIONS COMMISSION
(NLRC) (ART. 220 to 223)
- Labor court in the country
- Composition: 24 persons – 1 Chairman and
23 members
o No CA Confirmation; Appointed en banc
o 8 nominees of workers
o 8 nominees of employers
o 8 from government (1 Chairman and 7
Incumbent Labor Arbiters)
- Qualifications:
o Chairman – (a) lawyer of good standing;
(b) practice of law in the Phil. for 15
years; (c) experience/exposure in labor
management for 5 years; (d) preferably
© AJ Cresmundo | LABOR RELATIONS NOTES
resident of the division region; (e) until (b) Termination Disputes – no twin notice or
outside causes provided for by law
o Executive Labor Arbiters - (a) lawyer of
good standing; (b) practice of law in the
Phil. For 10 years; (c)
experience/exposure in labor
management for 5 years; (e) until age 65
(mandatory) to 70 (with approval)
- Exclusive Original Jurisdiction:
a. En banc
o Promulgation of rules
o Allowing other jurisdiction to hear
cases
o Appointment of LAs
b. Division
o Petitions for injunction – either
independent action or incorporated
in memorandum of appeal; needs to
be prayed for because the LA
decision will be executed pending
appeal
o Certified Cases – involving national
interest; public health, education,
transport, communication; Secretary
of Labor certifies to NLRC
- Concurrent Jurisdiction with Labor
Arbiter:
o Contempt Cases
- Exclusive Appellate Jurisdiction:
o Cases emanating from LA
o Decisions on money claims from LA
o ART. 129 – small claims (RD DOLE)
3. LABOR ARBITERS
- Exclusive Original Jurisdiction: 30
calendar days after submission for
decision
(a) Unfair Labor Practices – civil aspect only;
need to be decided first before filing
criminal case
(c) With Claim for Reinstatement
(d) Claims for Actual, Moral, Exemplary
Damages – independent or incorporated
in the claim
(e) Violation of ART. 268 – strikes or
lockouts
(f) All other claims arising from ER-EE
relationship involving an amount
exceeding P5,000
(g) Money claims of OFWs
(h) Wage Distortion
(i) Enforcement of Compromise Agreements
- EXCEPTIONS: Grievance Machinery then
NCMB or RCMB
(a) Parties agreed to voluntary arbitration
(b) Disputes arising from interpretation and
implementation of CBA
(c) Interpretation or enforcement of
Company Personnel Policies
- Concurrent Jurisdiction with NLRC:
o Contempt Cases
4. POWERS OF THE COMMISSIONER
a. Promulgate rules
b. Administer oath, summon, issue subpoenas
c. Conduct investigation
d. Contempt power
e. Ocular inspection
f. Injunctive relief
5. ART. 227
- Rules of Court not binding on NLRC, except
suppletory
6. ART. 228
- 10% attorney’s fee; quantum meruit principle
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7. 2011 Rules of Procedure of NLRC

SENA - single entry Case forwarded to LA Submission of position Comment on position

File Complaint with approach paper
(30 days mandatory papers (within 15
DOLE
(1 month conciliation) conciliation) days) (within 10 days)

APPEAL (substantial) (within 10 days)

After filing of last pleading,
Reply to the comment decision of LA within 30 days
from submission of case for
(no specific period, file decision
ASAP)
(NO MR allowed)
• File notice of appeal with Memorandum of Appeal NLRC issue order to
and Appeal Bond appellee to file
• Motion for correction if not substantial comment
• Grounds: (a) abuse of discretion; (b) question of law;
(c) serious errors in finding of facts; (d) decision (within 15 days)
secured through fraud or coercion

Motion for Appeal to CA (Rule 65)

Reply to Comment Reconsideration (within 60 days from
After last pleading, Appelle file a Comment
(no specific period; file (within 10 days) Resolution of MR)
decision of NLRC (within 15 days)
ASAP) (ground: palpable (ground: grave abuse of
error) discretion)

Motion for
Reconsideration
Reply to Comment (within 15 days; Appeal to SC (Rule 45) Appellee file a
CA will resolve.
(file ASAP) Neypes Rule) (can be (within 15 days) Comment
extended for
meritorious reasons)

Motion for 2nd Motion for Motion for Execution

Reply to Comment Judgment issued by SC Reconsideration Reconsideration (before LA)
(within 15 days) (extreme cases) (within 15 days)

© AJ Cresmundo | LABOR RELATIONS NOTES 2

8. BUREAU OF LABOR RELATIONS (ART. 232)
- Exclusive Original Jurisdiction:
o Representation
o Inter-union and intra-union conflicts
o Other related labor relations dispute –
interpleader/intervention
Agusan Workers Union vs. BLR Director
(GR No. 75724, May 6, 1991)
- Filing of Cases:
o 30% of members if affecting union;
member alone if affecting him/her only
o Independent/Local union – Regional
Director of DOLE
National Union/Federation – Bureau of
Labor Relations
o Resolve within 15 days
o Appeal – under oath; memorandum of
appeal; grounds (grave abuse of
discretion or gross violation of the
Rules); 10 days from receipt of decision
a. If RD of DOLE -> BLR -> CA (Rule 43)
-> SC (Rule 45)
b. If BLR -> Sec. of Labor -> CA (Rule
43) -> SC (Rule 45)
- No Longer Under Jurisdiction of BLR:
o Voluntary arbitration – NCMB
9. COMPROMISE AGREEMENT (ART. 233)
- Even if there is final decision; NO partial
fulfillment of the decision; NOT unfair labor
practice
- Requisites:
o Freely entered into by the parties – no
vitiation of consent
o Substance not contrary to law
o Considerations, provisions must be
reasonable
o Approved by the authority – if NOT, still
binding but any of the parties CAN
REPUDIATE
o Must be in writing and signed by the
parties in the presence of the authority
© AJ Cresmundo | LABOR RELATIONS NOTES
- Quitclaim – can only be respected if the
consideration given is EQUAL OR MORE
THAN what he is supposed to receive
- Compromise Agreement Violated – Writ of
Execution, Rescinded agreement
10. REGISTRATION OF UNION AND FILING OF CBA
(ART. 237)
- Collective Bargaining Agreement – imbued
with public interest; both parties must
comply; industrial peace
- If CBA is NOT REGISTERED, the CBA is still
VALID, but the contract-bar rule will not take
effect.
- Registration of CBA:
o Submit copies of CBA to BLR or RD of
DOLE within 30 days from execution
o Verified proof of posting in 2 conspicuous
places in the place of work
o Ratification by MAJORITY of all workers
(not just members)
o BLR/RD shall act within 5 days from
receipt
o Payment of assessment fee
o Issuance of Certification of Registration of
CBA
- CONTRACT BAR RULE (ART. 238, 264, 265,
267, 268, 269)
o While a valid and registered CBA is
subsisting, for a fixed period of 5 years,
the Bureau is not allowed to hold a
certification election.
o Except during the 60-day period before
the lapse of the 5-year period (FREEDOM
PERIOD)
- Existing CBA can be automatically renewed
for 1 year. Also, a bar for certification
election.
- During the 5-year period, no amendments can
be made. Renegotiation can happen in the 3RD
YEAR.
- 9 REQUISITES FOR CONTRACT BAR RULE
TO TAKE EFFECT
o The CBA is existing, and the parties have
duly executed within the formalities
o Ratified by majority of union members
o The CBA is adequate
o The CBA encompasses the employees in
that appropriate bargaining unit
o CBA is for definite period
o During lifetime of CBA, no mass
disaffiliation
o Legitimate labor organization not defunct
or obsolete
o Contracting union is not company
dominated.
11. BARGAINING UNIT (ART. 268)
- Group of employees comprising all or less
than all of the employees in the company
- Voters during certification elections, either
members or non-members
- CERTIFICATION YEAR – collective
bargaining will start; no other certification
election will happen
- SOLE AND EXCLUSIVE BARGAINING AGENT
(SEBA) – the LLO who shall represent the
employees before the employer for purposes
of collective bargaining
o Consent Election – all of the parties
voluntarily agreed that a certain LLO
should be SEBA
o Voluntary Recognition – employer
recognizes that LLO is the SEBA; LLO
should be supported by majority of the
workers
o Certification Election – process of
determining SEBA by secret ballot; at
least two LLOs; third option NO UNION
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12. CERTIFICATION ELECTION
a. ORGANIZED ESTABLISHMENT – there is
already an existing LLO
(1) Verified petition filed with RD-DOLE/BLR
by LLO questioning the majority status of
the existing LLO during the Freedom
Period
(2) With a written consent of at least 25% of
the employees in the bargaining unit
NO CBA YET – anytime
*One election per year rule
*Deadlock bar rule – before filing of petition,
there is bargaining deadlock; submitted to
NCMB for resolution; pending resolution, no
certification election can be undertaken
*Negotiation bar rule – petition cannot be
entertained if there is a negotiation
undertaken by the employer and subjected to
NCMB for resolution
b. UNORGANIZED – no LLO operating in the
bargaining unit
(1) Verified petition anytime
(2) No required written consent
- DOUBLE MAJORITY RULE:
o First Majority: majority of eligible voters
have cast their votes
o Second Majority: majority of VALID
votes cast were for the LLO
- RUN-OFF ELECTION – the 2nd majority not
met
Requisites:
o Valid election
o At least 3 options
o Not one obtained the 2nd majority
o Unions must be majority of votes cast
o Resolved challenge votes and/or protests
o Can only declare a winner if vote reaches
2nd majority
© AJ Cresmundo | LABOR RELATIONS NOTES
- RE-RUN ELECTION – tie in 2nd majority
- FAILED ELECTION:
o Tie after re-run
o Two highest votes are Union A and No
Union (no majority)
- Employer only a bystander. (ART. 271)
13. LABOR ORGANIZATIONS
- Unions or associations of employees that exist
to represent them in collective bargaining
with the employer
- Legitimate labor organization when
registered. Can exercise right of strike in
accordance with law.
- Employees are the principal; LLO is an agent.
- REGISTRATION:
o Requirements (ART. 240)
(a) P50.00 Registration fee
(b) Names of its officers, addresses,
principal address of LO, minutes of
meetings and list of workers who
participated
(c) If independent union, names of
members comprising at least 20% of
all the employees in the bargaining
unit
(d) If in existence for one or more years,
copies of annual financial report
(e) 4 copies of the constitution and by-
laws, minutes of adoption and
ratification and the list of members
who participated in it
o BLR has ministerial duty to REVIEW
REGISTRATION (compellable by
mandamus). However, the ISSUANCE of
Certificate of Registration is
discretionary.
o Issuing Certificate of Registration is the
operative act that cloths the LLO with the
authority to be SEBA in collective
bargaining with the employer.
- DENIAL OF REGISTRATION: (ART. 243)
o Should be in writing
o Should explain in clear terms why
registration was denied
o May appeal within 10 days to the
BLR/Sec. of DOLE ((a) grave abuse of
discretion; (b) gross incompetence; (c)
violation of the rules)
- SUBSTITUTIONARY DOCTRINE – the new
union should respect the CBA entered into by
the disaffiliated or defunct LLO until the lapse
of 5 years.
- CANCELLATION OF REGISTRATION
o After due notice
o Grounds (ART. 247)
(a) Misrepresentation, false statements,
fraud – adoption or ratification of
constitution and by-laws
(b) Misrepresentation, false statements,
fraud – election of officers
(c) Voluntary dissolution by the
members
o Effects (ART. 246)
(a) NOT SUSPEND proceedings of
certification election
(b) NOT PREVENT filing of petition for
certification election
- VOLUNTARY CANCELLATION OF
REGISTRATION (ART. 248)
o Cancelled by the organization
o Supported by at least 2/3 of its general
membership votes
o There should be a meeting called for that
purpose
o An application to cancel registration is
submitted by the board, attested to by the
president thereof
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 (b) To be certified as exclusive representative of
14. RIGHTS AND CONDITIONS OF MEMBERSHIP all employees in a bargaining unit
(ART. 250) (c) To be furnished by the employer with its
(a) Right to be part of deliberation and decision annual audited financial statements
making (d) To own property
(b) Right to be informed of the status of (e) To sue and be sued in its registered name
organization (f) To undertake all other activities designed to
(c) Right over money matters benefit the organization and its members
(d) Right to vote
16. RIGHT TO SELF-ORGANIZATION (ART. 253)
- Any violation can be a ground for cancellation - CANNOT JOIN UNION:
of union’s registration or for the expulsion of (a) Managerial employees – supervisory
officer who committed such violation. employees can join a union of their own
(b) Government employees – can organize
- NOT ALLOWED TO BE MEMBERS OF LO: but not allowed to conduct strike
o Non-employees (c) Alien employees – subject to principle of
o Subversive or engaged in subversive reciprocity
activities (d) Religious objectors – can organize for
o Convicted of crime involving moral themselves but cannot be forced
turpitude (CANNOT BE AN OFFICER)
17. UNFAIR LABOR PRACTICES (ART. 258)
- COLLECTION OF FEES: - act directed to weaken or defeat the workers’
o Written resolution approved by majority right to self-organize or to engage in lawful
of the members concerted activities
o Approval in a General Membership - EXCEPTION: testimony against the employer
Meeting called for that purpose then retaliation by the employer (still an
o Minutes of Meeting attested to by the unfair labor practice)
President - ELEMENTS:
(a) ER-EE relationship – except YELLOW
- CHECK-OFF AGREEMENT – workers agree DOG DOCTRINE
explicitly that the amount for union due shall (b) Act done is expressly defined in the Labor
be deducted from their salary Code as ULP
o EXCEPTIONS: no need for check-off - TWO ASPECTS – (a) civil aspect; (b) criminal
agreement aspect
(a) deductions for mandatory activities o File with LA first and need to be resolved
(b) involving non-members (agency first before filing criminal case with Office
fees) of Prosecutor.
o The decision of LA is recommendatory to
15. RIGHTS OF LEGITIMATE LABOR OP; not binding to the OP or the court.
ORGANIZATION (ART. 251) o PRESCRIPTIVE PERIOD: 1 year from
(a) To act as representative of members for the accrual of right to file action
purpose of collective bargaining o WHO TO IMPLEAD:
© AJ Cresmundo | LABOR RELATIONS NOTES
(a) Civil aspect – officers and agents of
employer; LLO, officers and agents
SUBSTANTIAL EVIDENCE
(b) Criminal aspect – agents of employer
who actually participated in the act
PROOF BEYOND REASONABLE
DOUBT
18. ULP COMMITTED BY EMPLOYERS (ART. 259)
(a) Interference – interfere, restrain or coerce
employees in the exercise of their right to
self-organization
TOTALITY OF CONDUCT DOCTRINE –
expressions by employer, though innocent,
are culpable because of circumstances in
which they are uttered
EXCEPTIONS: (Employer and LLO entered
into Union Security Arrangements)
o Closed Shop Agreement – employer
shall hire only members of the union who
must continue to remain members in
good standing to keep their jobs
(EXCEPT: (a) those religious objectors; (b)
members of rival union; (c) supervisory
employees; (d) expressly disallowed by
law)
o Semi Closed Shop Agreement –
applicant must be member of union
before accepted as employee but no
requirement to remain as member to
continue employment
o Union Shop Agreement – once accepted,
employee must become a member of the
union and remain in good standing for
continued employment
o Modified Union Shop Agreement –
employee need not join union, but all
those workers hired after signing of CBA
must be members of the union
(b) Yellow Dog Doctrine – the employer
requires as a condition for employment to
NOT JOIN a LLO or members to withdraw
their membership
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 (c) Contracting Out – functions or services being
performed by union members
(d) Company Domination of Union – emanating
from a captive unionism; the very force that
initiated the union is the employer
(e) Discrimination – with regard to wages, etc.
to encourage or discourage membership in
union
(f) Discrimination because of testimony –
employee testified against employer causing
retaliation of the employer
(g) Violation of Duty to Bargain
o Runaway Shop – transfer place to avoid
unionism
o Surface Bargaining
(h) Paid Negotiation and Attorney’s Fees –
similar to company unionism
(i) Violation of CBA – must be gross and
flagrant violation of CBA (RA 6715)
19. ULP COMMITTED BY LLO (ART. 260)
(a) Restrain or Coerce Employees
(b) Cause or attempt to cause an employer to
discriminate against employee
(c) Violation of Duty to Bargain
(d) Cause or attempt to cause an employer to
pay or deliver any money or other things
of value
o Feather bedding doctrine – LLO
demanding too much from employer
o Blue Sky Bargaining – LLO demanding
exaggerated and unreasonable proposal
to the company
(e) Asking negotiation fees or attorney’s fees
from employers
o Sweetheart contract – negotiation is not
assured to protect rights of employees
(f) Violation of CBA – must be gross and
flagrant
20. ULP DURING BARGAINING
(a) Failure or Refusal to Meet or Convene
© AJ Cresmundo | LABOR RELATIONS NOTES
(b) Evading the Mandatory Subjects of
Bargaining
(c) Bad Faith in Bargaining
o Bulwarism - employer research ahead of
time; providing a take it or leave it offer
(d) Gross Violation of the CBA
21. PROCEDURE OF COLLECTING BARGAINING
- JURISDICTIONAL REQUIREMENTS:
(DEMAND TO BARGAIN)
(a) Must have majority backing
(b) Submitted a proof
- MANDATORY PROVISIONS
(a) Wages
(b) Hours of Work
(c) Grievance Machinery
(d) Voluntary Arbitration
(e) Rates of Pay
(f) Mutual Observance Clause
- SIGNING OF CBA
o Zipper Clause – a stipulation that could
have been negotiated but was not
contained in CBA cannot be raised in
negotiation when the CBA is in effect
o 5 years effectivity period
o Renegotiation in the 3rd year
o Wiley Doctrine – in mergers and
consolidation, the new company has duty
to bargain, CBA has to be respected
22. STRIKES, PICKETING AND LOCKOUT
- Strike – temporary stoppage of work
initiated by employee due to an industrial or
labor dispute
o Must exhaust all possible peaceful means
o Economic Strike – emanated from a
bargaining deadlock
o ULP Strike – emanated from an unfair
labor practice act
o ILLEGAL STRIKES:
(a) Sit down strike – seized or occupied
the premises of the company
(b) Wild cat strike – no approval from
the majority members of the union
(c) Sympathetic strike – sympathize
with other company’s union
members
o REQUIREMENTS OF LEGAL STRIKE:
(a) Purpose Test – purpose of strike
either because of bargaining
deadlock or an ULP act
(b) Compliance with Procedural and
Substantive Requirements of Law
Test
(1) Notice of Strike – addressed to
employer/ incorporate date of
strike
(2) Cooling off Period – time allotted
to peacefully settle through
NCMB; if Economic Strike -> 30
days; if ULP Strike -> 15 days; No
cooling period if union busting
(3) 7-day strike ban – the very
period when the strike vote
should be secured by the LLO
and submitted to Regional Office
of DOLE
(c) Means Employed Test – a strike
must not be accompanied with
violence that is widespread,
pervasive and adopted as a policy
o GOOD FAITH STRIKE DOCTRINE – a
LLO undertook a strike in the belief that
management committed acts of ULP
o DOCTRINE OF MEANS AND PURPOSES
– pertaining to a strike that is valid
because of lawful means and for a lawful
purpose
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 o INDISPENSABLE INDUSTRY – affecting
the public in general; if a strike is
undertaken, the Secretary of Labor may
assume jurisdiction over the strike
§ Sec. of Labor may decide the dispute
or certify the dispute to NCMB.
(Certified Cases)
§ The workers must immediately stop
the conduct of the strike and go back
to work immediately.
o STRIKERS ARE NOT ENTITLED TO
WAGES DURING STRIKE.
§ Exceptions:
(1) ULP Strike at the discretion of
authority
(2) Strikers voluntarily offered to
return to work, but employer
refused
(3) Employers discriminated against
employee after return to work
order
o WHO SHOULD NOT BE REINSTATED?
(1) Union officers who participated
knowing that the strike is illegal
(2) Union members who knowingly
participate in an illegal strike
- Lockout – temporary refusal of the employer
to provide work to the employees
- Picketing – act of marching to and from the
company premises; only an exercise of
freedom of speech
23. SECURITY OF TENURE (ART. 294)
- Constitutional guarantee
- Except for JUST and AUTHORIZED CAUSE
- JUST CAUSES
(1) Serious Misconduct – willful intent; if
outside premises, not a just cause
© AJ Cresmundo | LABOR RELATIONS NOTES
(2) Willful Disobedience/Insubordination
– of a perverse attitude; the order is
lawful and reasonable
(3) Gross and Habitual Neglect of Duty
(4) Fraud/Breach of Trust and Confidence
(5) Commission of a Crime
(6) Analogous Cases
o DOCTRINE OF INCOMPATIBILITY –
when an employee commit acts that are
incompatible with his duties, the
employer has a valid cause to terminate
him
24. TYPES OF EMPLOYEES
- AUTHORIZED CAUSES
(1) Labor-saving Devices
(2) Redundancy
(3) Retrenchment – to prevent
losses/bankruptcy; notice to DOLE within
30 days; must provide separation pay
(4) Closure/Cessation of Operation
(5) Disease
(6) Other Causes
- RELIEFS:
(1) Payment of back wages
o From illegal dismissal to finality of
decision
o Bustamante Case – back wages
should not be reduced by reason of his
employment elsewhere
(2) Reinstatement
o Restoration to the state where he
was, without loss of seniority rights
o Can be ACTUAL REINSTATEMENT or
PAYROLL REINSTATEMENT
o DOCTRINE OF STRAINED
RELATIONS – separation pay instead
of reinstatement due to strained
relations between employer and
employee
o Feschem Case – LA can issue
reinstatement even when not prayed
for
(3) Separation Pay
(a) In lieu of reinstatement
(b) Legal termination for authorized
causes
(c) Financial assistance (social justice
principle)
(d) As employment benefit granted in
CBA
(1) Regular Employees
- Performs activities which are usual and
desirable to the usual business or trade of
the employer
- Employed for 1 year and 1 day
(2) Casual Employees
- Activities which are not necessary and
desirable in the usual business or trade of
the employer
(3) Project Employees
- Requisites:
(a) Project phase
(b) Estimated date of completion
(c) Employee dismissed at completion
(Mercado vs. NLRC)
(4) Probationary Employees
(5) Fixed Period Employees
(6) Seasonal Employees
- FLOATING STATUS RULE – temporary
retrenchment of business or undertaking
thereby inevitably forcing or causing its
affected employees to go on leave
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25. GUIDELINE FOR VALIDITY OF TERMINATION 29. PRESCRIPTION (ART. 306)
(1) Gravity of Offense (a) Money claims – 3 years
(2) Position Occupied (b) Unfair Labor Practices – 1 year
(3) Degree of Damage (c) Illegal Dismissal – 4 years
(4) Previous Infractions
(5) Length of Service

TOTALITY OF INFRACTION DOCTRINE – the

totality of infractions or number of violations
committed during the period of employment shall
be considered in determining the penalty to be
imposed on the erring employee

26. CASES ON NOMINAL DAMAGES

(1) Agabon vs. NLRC
- If the dismissal is for just or authorized
cause but due process is violated,
dismissal is allowed but separation pay,
and nominal damages should be paid.

(2) JAKA Case

- For just cause, nominal damages must be
tempered.
- For authorized cause, nominal damages
must be stiffer.

(3) Industrial Timber Case

- For authorized cause due to serious
business losses, nominal damages must
be tempered.

27. TERMINATION BY EMPLOYEES (ART. 300)

- Without just cause – 1 month in advance
notice
- With just cause – no notice required

28. RETIREMENT (ART. 301)

- May be COMPULSORY or OPTIONAL
- RETIREMENT PAY = 22.5 days salary X
Number of years in service

© AJ Cresmundo | LABOR RELATIONS NOTES 8