negotiable, it cannot be negotiated and can only
Negotiable Instruments Law be assigned. Assignment is the mode by which a
I. GOVERNING LAW – The law that governs
negotiable instruments in this jurisdiction is Act
No. 2031, otherwise known as the Negotiable
Instruments Law (NIL). It was enacted on
February 3, 1911, and took effect on June 2, 1911.
• Applicability of the NIL – The provisions of
the NIL apply only to negotiable instruments. If
the instrument is not negotiable, the instrument
is not governed by the provisions of the NIL.
II. NEGOTIABLE INSTRUMENT
EXPLAINED
• It is a written contract for the payment of
money which is intended as a substitute for
money and passes from one person to another as
money, in such a manner as to give a holder in
due course the right to hold the instrument free
from defenses available to prior parties. The
instrument must comply with the requirements
laid down in Section 1 of the NIL to be considered
negotiable, to wit:
SEC. 1. – Form of negotiable instruments. –
An instrument to be negotiable must
conform to the following requirements:
(a) It must be in writing and signed by the
maker or drawer;
(b) Must contain an unconditional promise
or order to pay a sum certain in money;
(c) Must be payable on demand, or at a fixed
or determinable future time;
(d) Must be payable to order or to bearer;
and
(e) Where the instrument is addressed to a
drawee, he must be named or otherwise
indicated therein with reasonable certainty.
• Distinguished from non-negotiable
instruments – A negotiable instrument in its
literal sense, is an instrument which can be
transferred by negotiation. The term
“negotiable” represents the mode by which an
instrument is transferred. If the instrument has
the characteristic of negotiability imposed by
law, the instrument is thus “negotiable”,
meaning it is transferable by negotiation. Not
every instrument is transferable by negotiation,
and not every instrument possesses the
characteristics of negotiability. If the instrument
is non-negotiable, the same may be transferred
too, and the transfer is not by negotiation but by
an assignment. Where an instrument is not
non-negotiable instrument is transferred.
• Instruments as evidence of parties’
contract – Note that instruments (whether
negotiable or non-negotiable) are in themselves
evidence of a contractual relationship between
the contracting parties thereto. An instrument
which does not comply with the requirements of
the NIL is just a simple contract in writing and is
merely evidence of such intangible rights as may
have been created by the agreement of the
parties. The term negotiability only refers to the
mode of transferring from one person to another
and does not guaranty the validity of the
instrument. When an instrument complies with
the legal requirements for negotiability (Sec. 1,
NIL), then the instrument is said to be
negotiable. This means that the instrument can
be transferred by negotiation.
• Advantange of holding a negotiable
instrument – A person holding a negotiable
instrument has an advantage over one who takes
a non-negotiable instrument. The former is free
from the defects in the title of the previous holder
as long as he is a holder in due course. This is not
so of a mere assignee who inherits the defects in
the title of the assignor.
• Illustrative Example: Mabel, out of generosity
without receiving anything in return, issued a
note to Percy on 15 July 2018, to wit:
15 July 2018
I promise to pay to the order of Percy
P20,000.00 payable on October 15, 2018.
(Sgd) Mabel Dy
Percy also indorsed the note to Ana
without receiving anything from her. Ana later
indorsed the note to Billy as payment of
construction supplies worth P20,000.00 bought
from the hardware of Billy. Hence, the following
indorsements appear on the note:
• Effect if the note is negotiable - In this
case, even if the note was issued to Percy and
indorsed to Ana without both of them having
given consideration for its issuance or
indorsement, Billy will be deemed a holder for
value not only as regards Ana, but also as regards
Mabel and Percy (Sec. 26, NIL). As a
consequence, if Billy is a “holder in due course”
(Sec. 52, NIL), he may enforce payment for the
full amount of the note against Mabel, Percy and
Ana. On the other hand, if Billy is not a holder in
due course, Mabel can set up the defense of
absence of consideration. In other words, Mabel
can refuse to pay Billy the amount of the note on
the ground that when she issued the note to
Percy, she did not receive any consideration from
Percy for its issuance, but merely issued it as a
gratuity.
• Effect if the note is non-negotiable – If the
note is not negotiable, Billy will simply step into
the shoes or rights of his immediate transferor-
assignor, Ana. If Ana, not being a holder for
value in this promissory note cannot collect the
amount of the note from Mabel, then Billy will
have the same rights – that is, Billy cannot
likewise collect under the note from Mabel.
III. NEGOTIABLE INSTRUMENTS ARE
NOT LEGAL TENDER – While negotiable
instruments are used as substitute for money,
they are not legal tender. Section 52 of the New
Central Bank Act (R.A. 7653) provides that only
notes and coins issued by the Banko Sentral ng
Pilipinas are considered legal tender.
• The consequences of the rule that a negotiable
instrument is not legal tender include the
following:
(a). Delivery of negotiable instruments does not
even produce the effect of payment. Obligations
are deemed paid only when the instruments are
encashed (Art. 1249, NCC).
(b). The creditor may refuse to accept negotiable
instruments like checks in payment of
obligations.
• While it has been pointed out that only notes
(peso bills) and coins issued by the Bangko
Sentral ng Pilipinas are considered legal tender,
there is a limit to the amount that can be paid
using coins (BSP Circular No. 537, Series of
2006).
(a). One Centavo, Five Centavos, Ten Centavos,
and Twenty-Five Centavos - These coins shall be
legal tender for debts not exceeding One
Hundred Pesos.
(b). One Peso, Five Pesos and Ten Pesos – These
coins shall be legal tender for debts not
exceeding One Thousand Pesos.
(c). If the debt to be paid is more than One
Thousand Pesos, it can be paid only in Philippine
currency notes.
• EXAMPLE: Dindo owes Aliyah P2,000.00 due
for payment on 31 October 2018. On maturity
date, Dindo cannot compel Aliyah to receive
payment of his debt in Ten Peso coins, since the
obligation to be paid is already more than
P1,000.00. If Dindo, however, tenders payment
of his debt in Twenty Pesos bills, Aliyah cannot
refuse the payment, it being legal tender.
IV. FEATURES OF NEGOTIABLE
INSTRUMENTS –
(a). Negotiability – The characteristic of
negotiability allows negotiable instruments to be
transferred from one person to another so as to
constitute the transferee to be a holder who can
be a holder in due course – that is, free from
personal defenses (Sec. 30, NIL). Freedom of
negotiability is the foundation for the protection
which the law throws around a holder in due
course.
• A personal defense (such as absence of
consideration) is one which could be availed of
by the party liable on the instrument because it
affects or concerns him alone. Such a defense
cannot be set up against a holder in due course,
but can be set up against a holder not in due
course.
• EXAMPLE: Mercy (the maker) issued a
negotiable promissory note in favor of the payee,
Pearly, who promised to deliver a television set
in exchange for the promissory note. Pearly
subsequently negotiated the instrument to
Arnold, who is a holder in due course. Later,
Pearly failed to deliver the television set as
promised. On maturity date, Arnold presented
the note to Mercy for payment. But Mercy
refused to pay the value of the note setting up as
defense the failure of Pearly to deliver to her the
television set (which is the consideration for the
issuance of the note by Mercy). In this case, since
Arnold is a holder in due course, Mercy cannot
set up as against Arnold this personal defense.
As a consequence, Mercy will be obliged to pay
Arnold the value of the promissory note.
(Sec. 28, NIL)
(b). Accumulation of Secondary Contracts
– When negotiable instruments are transferred
through negotiation, secondary contracts are
accumulated because the indorsers become
secondarily liable not only to their immediate
transferees but also to any holder. In the course
of negotiation, secondary liability results; more
and more persons are made liable to the holder.
• ILLUSTRATIVE EXAMPLE: DR, the drawer,
issued an instrument to the payee, P, payable to
P or order. P indorsed and delivered the
instrument to A, A to B, B to C, and C to D who is
the present holder. The drawee-accepter is DW.
The indorsers are P, A, B, and C. If the
instrument was dishonored by DW and the
proper proceedings on dishonor is duly taken,
any one among P, A, B and C can be made
secondarily liable by D, the holder. D need not
follow any particular order. D is not compelled
to recover first from C.

• Primary liability explained – There is

primary liability if the party is the person who
has an absolute obligation to pay the instrument.
The person primarily liable becomes liable the
moment he becomes a party to the negotiable
instrument. Immediate recourse can be had
against them on the due dates of the
instruments. Thus, persons primarily liable are:
(a) the maker in a promissory note; and (b) the (A.4) Parties in a promissory note –
acceptor in a bill of exchange.
• Maker – He is the person who promises to pay
• Secondary liability explained – There is the amount stated in the promissory note.
secondary liability if the party is not subject to
• Payee – He is the person who is supposed to
immediate recourse. Recourse against a person
be paid by the maker.
secondarily liable is available only if the person
primarily liable fails or refuses to pay. A person
secondarily liable engages that, on due
presentment, the instrument shall be accepted or (B). NEGOTIABLE BILL OF EXCHANGE –
paid, or both, as the case may be, according to its
tenor, and that if it be dishonored and the
necessary proceedings on dishonor be duly (B.1) Definition – A bill of exchange is an
taken, he will pay the amount thereof to the unconditional order in writing addressed by one
holder, or to any subsequent indorser who may person to another, signed by the person giving it,
be compelled to pay it. The drawer and the requiring the person to whom it is addressed to
indorsers are secondarily liable in a bill of pay on demand or at a fixed or determinable
exchange, while the indorsers are secondarily future time a sum certain in money to order or to
liable in a promissory note. bearer. (Sec. 126, NIL).

(B.2) Illustration –

V. COMMON FORMS OF NEGOTIABLE Manila City, Philippines

DOCUMENTS. –

(A). NEGOTIABLE PROMISSORY NOTES August 12, 2016

(A.1) Definition – A promissory note is an For value received, pay to the order of Ms. Julia
unconditional promise in writing made by one Ong the sum of Two Hundred Thousand Pesos
person to another, signed by the maker, engaging (P200,000.00), on or before 15 October 2018.
to pay on demand or at a fixed or determinable
future time, a sum certain in money to order or
to bearer. Where a note is drawn to the maker’s (Sgd.) Bennett Sia
own order, it is not complete until indorsed by To: Jerome Cruz
him. (Sec. 184, NIL).
10 Malugay Street
(A.2) Illustration –
Manila City, Philippines (B.3) General characteristics of a
negotiable bill of exchange –

August 12, 2016

For value received, I promise to pay to the order
of Ms. Julia Ong the sum of Two Hundred
Thousand Pesos (P200,000.00), on 15 October
2018.

(Sgd.) Bennett Sia

(B.4) Parties in a bill of exchange – VII. A PROMISSORY NOTE
DISTINGUISHED FROM A BILL OF
EXCHANGE –
Promissory Note Bill of Exchange
• Drawer – He is the person who draws and
signs the instrument. He orders the drawee to
pay. 1. It contains an 1. It contains an
unconditional unconditional
• Drawee – He is the person who is being promise. order.
ordered to pay. However, while he appears to be 2. There are 2 2. There are 3
a party on the face of the bill, he is not yet liable parties on its parties on its
until he accepts. face. face.
3. The person who 3. The person who
signs it is the signs it is the
maker. drawer.
• Acceptor – He is the drawee (same person)
who already accepted the bill of exchange. In 4. The person who 4. The person who
signs it, the
other words, he already accepted the order of the signs it, the
drawer, is
drawer to pay. maker, is
secondarily
primarily liable
liable.

5. The person 5. The person

• Payee – He is the one to whom payment primarily liable is
primarily liable is
should be made by the acceptor. the drawee-
the maker.
acceptor.
6. There are two
(C). CHECK – A check is a bill of exchange
6. There is only one presentments:
presentment: for (a) for acceptance
drawn on a bank payable on demand (Sec. 185,
payment. and (b) for
NIL).
payment.

• A check, therefore, differs from an ordinary bill
of exchange in that the drawee on a check is
always a bank, whereas the drawee on an
ordinary bill of exchange may be a bank, a
person, a partnership or a corporation.
• A check is always payable on demand while an
ordinary bill may be payable on demand, or at a
fixed date or a determinable future time.
• A check need not be presented for acceptance
while an ordinary bill of exchange is required to
be presented for acceptance.
VIII. INCIDENTS IN THE LIFE OF A
NEGOTIABLE INSTRUMENT –
(a). Preparation and signing – complete
with all the requisites provided for in Section 1 of
the NIL.
(b). Issuance – first delivery of the instrument
to the payee (from the maker to the
payee/bearer, or from the drawer to the
payee/bearer)
(c). Negotiation – transfer from one person to
another so as to constitute the transferee a
holder.

(d). Presentment for acceptance for

VI. OTHER PARTIES IN A NEGOTIABLE
INSTRUMENT –
(a). Indorsers – They are the persons who
transfer or negotiate an instrument by
indorsement completed by delivery.
certain kinds of Bills of Exchange – the bill
of exchange shall be presented to the drawee so
that the latter will signify his agreement to the
order of the drawer to pay.
(e). Acceptance – written assent of the drawee
to the order.

(f). Dishonor by non-acceptance – refusal

(b). Holder – He is  the payee or indorsee of
a bill or note who is in possession of a bill or note
payable to order, or  the bearer of a note or bill
payable to bearer.
(c). Bearer – The person in possession of a bill
or note which is payable to bearer.
to accept by the drawee.
(g). Presentment for payment – the
instrument is shown to the maker (in a
promissory note) or drawee/acceptor (in a bill of
exchange) so that the said maker
(h). Dishonor by non-payment – refusal to
pay by the maker or drawee/acceptor.
(i). Notice of dishonor – notice to the persons
secondarily liable that the maker or the
drawee/acceptor refused to pay or to accept the
instrument.
(j). Protest (in some cases).
(k). Discharge – the release of all parties,
primarily or secondarily liable, from further
liability, obligation, or from the binding effect of
the negotiable instrument.
IX. SOME BASIC LEGAL CONCEPTS IN
NIL EXPLAINED –
(a). Negotiation – It is the transfer of an
instrument from one person to another as to
constitute the transferee the holder of the
instrument. It is a mode of transferring an
instrument. The right to collect a sum certain in
money is transferred from one person to
another.
If the instrument is payable to order, it is
negotiated by the indorsement of the holder
completed by delivery.
If the instrument is payable to bearer, it is
negotiated by mere delivery.
(b). Indorsement – It is a legal transaction
effected by the writing of one’s own name on the
back of the instrument or upon a paper attached
thereto, with or without additional words
specifying the person to whom or to whose order
the instrument is to be payable whereby one not
only transfer one’s full legal title to the
instrument, but likewise enters into an implied
guaranty that the instrument will be duly paid.
(c). Holder – the holder is the payee or
indorsee of a bill or note, who is in possession of
it, or the bearer thereof.
If the instrument is payable to order, the holder
means the person who is the payee or indorsee
therein, and is in possession thereof.
If the note or instrument is payable to bearer,
the holder means the person who is in
possession thereof.
(d). Holder in due course – Under Section
52, a holder in due course is one who has taken
the instrument under the following conditions:
1. That it is complete and regular upon its face;
2. That he became the holder of the instrument
before it was overdue, and without notice
that it had been previously dishonored, if
such was the fact;
3. That he took it in good faith and for value;
4. That at the time it was negotiated to him he
had no notice of any infirmity in the
instrument or defect in the title of the
person negotiating it.
(e). Presumption of consideration –
Section 24 of the NIL provides that, every
negotiable instrument is deemed prima facie to
have been issued for a valuable consideration;
and every person whose signature appears
thereon to have become a party thereto for value.
(f). Accomodation party – Section 29 of the
Negotiable Instruments Law provides that, an
accommodation party is one who has signed the
instrument as maker, drawer, acceptor, or
indorser, without receiving value therefor, and
for the purpose of lending his name to some
other person. Such person is liable on the
instrument to a holder for value,
notwithstanding such holder, at the time of
taking the instrument, knew him to be only an
accommodation party.
(g). Indorser – Section 63 of the NIL provides
that, a person placing his signature upon an
instrument otherwise than as maker, drawer, or
acceptor, is deemed to be an indorser unless he
clearly indicates by appropriate words his
intention to be bound in some other capacity.
IX. DISCHARGE OF NEGOTIABLE
INSTRUMENTS. – Section 119 of the NIL
provides that, a negotiable instrument is
discharged:
(a). By payment in due course by or on behalf of
the principal debtor;
(b). By payment in due course by the party
accommodated, where the instrument is made or
accepted for his accommodation;
(c). By the intentional cancellation thereof by the
holder;
(d). By any act which will discharge a simple
contract for the payment of money;
(e). When the principal debtor becomes the
holder of the instrument at or after maturity in
his own right.

Labor Law and Social Legislation
I. CONSTITUTIONAL BASIS. – The 1987
Constitution is replete with labor-related
provisions, but the more commonly quoted
provisions are those found under Section 3,
Article XIII, to wit:
“Section 3. The State shall afford full
protection to labor, local or overseas,
organized and unorganized and promote
full employment and equality of
employment opportunities for all.
“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.
“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.
“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.”
• These provisions somewhat sum up what Labor
Law is all about. Through the intervention of the
State, a balance has to be attained between the
interests of capital vis-à-vis the interests of the
laborer or worker. With such an aim in mind, the
country saw the promulgation of the Labor Code
of the Philippines, which provided for a two-
tiered approach to labor – labor standards and
labor relations.
Hence, Books I to IV of the Labor Code is mainly
concerned with labor standards, while the
remaining Books V to VI focuses on labor
relations.
• Construction in favor of labor – One
essential feature of labor laws is – all doubts in
the interpretation and implementation of the
provisions of the Labor Code and other labor-
related statutes shall be resolved in favor of labor
(Article 4, New Labor Code). This statutory
pronouncement under the Labor Code
underlines the state’s commitment to the
constitutional mandate of providing full
protection to labor since it has affirmed that
labor is a primary social economic force (Section
18, Article II, 1987 Constitution).
• Balance between labor and capital – This
constitutional mandate of construction in favor
of labor, however, should not be taken to mean
that capital will always be at the losing end of the
equation. This has to be reconciled with another
constitutional mandate to harmonize and
balance the needs and demands from both labor
and capital, since capital is recognized as having
an indispensable role in national development
(Section 20, Article II, 1987 Constitution). Both
are essential cogs in the wheels of national
development and should be created equally.
Labor laws are there only to protect the rights of
Labor against unscrupulous employers as well as
to protect employers from abusive employees. It
should be noted that the protection provided
under the Labor Laws goes both ways, i.e., for the
laborer and the employer.
• ILLUSTRATIVE EXAMPLE: One good
example to illustrate the balance between labor
and capital is on the matter of termination of
employment. Under our labor laws, a qualified
employee is granted security of tenure, and
cannot be removed except for authorized and
legal causes. This does not mean, however, that
an employer is to be burdened with undesirable
employees. The Labor Code provides for the
grounds where an employer can rightfully
initiate disciplinary proceedings against an
employee, which necessarily include termination
of employment.
II. LABOR LAWS, ITS MAIN AREAS OF
CONCERN. –
(a). LABOR LAWS: These laws govern the
rights and obligations of employers and
employees, providing as well for the rules by
which such rights and obligations may be
enforced. This field of law is divided into three
main areas of concern – labor standards, labor
relations and social legislation.
(b). SOCIAL LEGISLATION: There is a
saying that “those who have less in life should
have more in law”. This statement encapsulates
what social legislation is all about. It refers to
statutes that level the playing field between
employers and employees. Such laws endeavor
to strike a balance between the rights of workers
vis-à-vis the underlying goal of employers to
generate profit. More often than not, the lowly
employee or worker is not situated in an equal
footing, so to speak, with powerful and moneyed
employers, and thus social legislation seeks to
ensure that workers are afforded what is due
them in terms of salary, benefits, working
conditions and the like. Social legislation is also
designed to secure the future of the worker as
well as his family because of what happens to the
worker arising from the hazards, incidents or
effects of employment.
• Examples of such laws are as follows:
1. RA 8187 (Paternity Act)
2. RA 7610 (Special Protection of Children)
3. RA 7877 (Anti-Sexual Harassment Act)
4. RA 7655 (Minimum Wage for House helpers)
5. RA 8042 (Migrant Workers Act)
6. RA 8282 (Social Security System Law of
1997)
7. RA 8291 (Government Service Insurance
System Act of 1997)
8. RA 7875 (PhilHealth Act)
9. RA 7641 (Retirement Pay Law)
10. RA 9231 (Act Against Child Labor)
11. PD 851 (13th Month Pay Law)
(c). LABOR STANDARDS LAW: The area of
labor standards provides for the basic
requirement as provided by law that employers
have to provide for their employees whether in
the workplace or in the matter of wages. These
minimum requirements are established in order
to protect workers’ rights as well as set the
standard in all business establishments. In
short, labor standards provide for the conditions
of employment in any business.
• A matter of right – These minimum
standards prescribed by law in relation to work
is a matter of right on the part of the laborer, and
non-compliance by an employer of said
minimum standards would be met with the
punitive force of the law.
• Provision for higher but not below the
minimum prescribed – These minimum
conditions are normally indicated in an
employee’s employment contract. Some firms or
employers even provide for higher standards
than that provided for under the law. What is
important is that the conditions of work, more
particularly the benefits, do not fall below the
minimum prescribed under the Labor Code.
• Workers not covered – These minimum
standards prescribed by law in relation to work
applies to employees in all establishments and
undertakings, whether for profit or not, EXCEPT
the following:
(a). Government employees;
(b). Managerial employees;
(c). Field personnel;
(d). Members of the family of the employer who
are dependent on him for support;
(e). Domestic helpers, or persons in the personal
service of another; and
(f). Workers paid by result.
• Some prescribed minimum conditions – The
conditions regarding employment or work are
covered under Book III of the Labor Code, and
are generally categorized into the following:
1. Normal hours of work, including hours
worked –
• The Labor Code provides that normal working
hours shall not exceed eight (8) hours a day.
• Hours worked shall include:
(a). All time during which an employee is
required to be on duty or to be at a prescribed
workplace; and
(b). All time during which an employee is
suffered or permitted to work.
• Rest periods of short duration during working
hours shall be counted as hours worked. (Arts.
83 & 84, Labor Code)
• The following are other circumstances relative
to normal working hours as provided in the
Labor Code:
(a). Compressed Work Week (CWW) is valid,
subject to regulations provided by the
Department of Labor and Employment (DOLE);
(b). Health personnel in government service are
not covered by this provision. Their employment
benefits are governed by Republic Act No. 7305;
(c). Waiting time is considered hours worked if it
is an integral part of one’s work, or one is
engaged by his employer to wait; and
(d). It is considered hours worked when an
employee is required to remain on call in the
employer’s premises or close thereto that he
cannot use the time effectively for his own
purpose.
2. Meal periods – The law mandates every
employer to give his employees not less than
sixty (60) minutes time-off for their regular
meals (Art. 85, Labor Code).
3. Night Shift Differential – Every employee
shall be paid a night shift differential of not
less than ten percent (10%) of his regular
wage for each hour of work performed
between ten o’clock in the evening and six
o’clock in the morning. (Art. 86, Labor
Code).
• Night shift differential pay is given as an
incentive because the employee is rendering
work past his supposed bedtime.
4. Overtime work – Work may be performed
beyond eight hours a day provided that the
employee is paid, for the overtime work, an
additional compensation equivalent to his
regular wage plus at least twenty-five percent
(25%) thereof (Art. 87, Labor Code).
• Overtime on a holiday or rest day – Work
performed beyond eight hours on a holiday or
rest day shall be paid an additional
compensation equivalent to the rate for the first
eight hours on a holiday or rest day, plus at least
thirty percent (30%) thereof.
• Undertime not offset by overtime –
Undertime work on any particular day shall not
be offset by overtime work on any other day.
Permission given to the employee to go on leave
on some other day of the week shall not exempt
the employer from paying the additional
compensation required under the Labor Code
(Art. 88, Labor Code).
• Rationale: The value paid for overtime work is
more than the value paid for undertime work. If
undertime work is allowed to be offset by
overtime work, the worker will be at a
disadvantage.
• Requirement for overtime –
- An employee cannot, as a rule, be compelled to
render overtime work for his employer, except
only under certain conditions provided under
Article 89 of the Labor Code when an employee
may be required by the employer to perform
emergency overtime work.
- It is enough that an employee renders overtime
work. An express instruction from the employer
is not a requirement. However, if overtime work
will be rendered on holidays or rest days, an
express instruction from the employer is
required.
5. Right to weekly rest periods – The law
mandates that it shall be the duty of every
employer, whether operating for profit or not, to
provide each of his employees a rest period of not
less than twenty-four consecutive hours after
every six consecutive normal work days.
• Factors such as preference of worker,
prerogative of employer and DOLE regulations
shall play a part in the determination when such
rest day will be given.
• However, the employer shall respect the
preference of employees as to their weekly rest
day when such preference is based on religious
grounds. (Art. 91, Labor Code.)
6. Holiday pay – Holiday pay is a day’s pay
given by law to an employee even if he does not
work on a regular or legal holiday as listed by law.
Such grant, however, does not apply to a retail
and service establishment regularly employing
less than ten (10) workers (Art. 94, Labor Code).
• The employer may require an employee to work
on any holiday, but such employee shall be paid
compensation equivalent to twice his regular
rate.
• For holiday pay to be compensable, the
employee should have reported for work on the
day preceding the holiday.
7. Service incentive leave – Every employee
who has rendered at least one (1) year of service
shall be entitled to a yearly service incentive
leave of five (5) days with pay. (Art. 95, Labor
Code).
• Such grant shall not apply to those who are
already enjoying the benefit, those enjoying
vacation leave with pay of at least five (5) days,
and those employed in establishments regularly
employing less than ten (10) employees, or in
establishments exempted from granting this
benefit by the Secretary of Labor after
considering the viability or financial condition of
such establishment.
• Service Incentive Leave can be converted to
cash if not availed at the end of the year. This is
to encourage continuous work of the employees.
• Vacation and Sick Leaves are not required by
law. It is a management prerogative.
8. 13th Month Pay – Thirteenth-month pay
refers to one-twelfth (1/12) of the basic salary of
an employee within a calendar year.
• All employers are required to pay all their
employees, regardless of the nature of their
employment, a thirteenth-month pay not later
than December 24 of every year, provided that
they have worked for at least one (1) month
during a calendar year (P.D. No. 851, 16
December 1975).
• An employee who resigned or was terminated
from work at any time before payment of the 13th
month pay, is still entitled to said pay in
proportion to the time he worked during the
year.
(d). LABOR RELATIONS LAW: Labor
Relations Law refers to laws, rules and
regulations which govern the relationship
between employees and their employers,
promote the right of the employees to self-
organization and collective bargaining, penalize
unfair labor practice, and provide modes for the
settlement of labor disputes such as conciliation,
mediation, grievance machinery, voluntary
arbitration and compulsory arbitration.
3. MANAGEMENT PREROGATIVE. –
Management prerogative refers to the right of
management to regulate according to its own
discretion and judgment all aspects of
employment, and if practiced properly and in
good faith, is protected by labor laws. Some of
the more common management prerogatives are
as follows:
(a). Right to selection of employees;
(b). Right to discipline employees;
(c). Right to prescribe company rules;
(d). Right to transfer or re-assign employees; and
(e). Right to determine company policy.
• Limitations to its exercise – Management
prerogative, however, is subject to limitations
provided by the following:
(a). Law;
(b). Contract or collective bargaining
agreements; and
(c). General principles of fair play and justice.
4. EMPLOYER - EMPLOYEE
RELATIONSHIP –
• Importance of determination - The
determination of whether employer-employee
relation exists between the parties is very
important.
(a). Entitlement to labor standard benefits (i.e.,
minimum wages, hours of work, overtime pay,
etc.), or to social benefits under laws (i.e., social
security law, workmen’s compensation law, etc.),
or to termination pay, or to unionism and other
labor relations provisions under the Labor Code,
are largely dependent on the existence of
employer-employee relationship between the
parties.
(b). The existence of employer-employee
relationship between the parties will determine
whether the controversy should fall within the
exclusive jurisdiction of the labor agencies or
not. If for example the parties are not employer-
employee of each other, respectively, but
perhaps partners or associates, then any dispute
between them will not be covered by the
jurisdiction of labor agencies but by regular
courts.
• NLRC – The National Labor Relations
Commission is a quasi-judicial body attached to
the Department of Labor and Employment
(DOLE), which is tasked to promote and
maintain industrial peace by resolving labor and
management disputes involving both local and
overseas workers through compulsory
arbitration and alternative modes of dispute
resolution.
• How established – To establish an employer-
employee relationship, a contract of employment
is necessary. This can be in writing, or there may
only be an oral agreement.
• Four-fold test to determine its existence – The
usual test to determine the existence of an
employer-employee relationship is the so-called
four-fold test. In applying this test, the existence
of four (4) elements that are determinative of
such a relationship are generally considered, to
wit:
(a). Right to hire or to the selection and
engagement of the employee.
(b). Payment of wages and salaries for services.
(c). Power of dismissal or the power to impose
disciplinary actions.
(d). Power to control the employee with respect
to the means and methods by which the work is
to be accomplished. This is known as the
“Control Test.”
• Of the above-mentioned elements, the “control
test” is considered the most important element
in determining the existence of employment
relation. The “control test” refers to the
employer’s power to control the employee’s
conduct not only as to the result of the work to be
done, but also with respect to the means and
methods by which the work is to be
accomplished.
• It should be noted that control by the employer
need not be actually exercised in order to be
determinative of an employer-employee
relationship. It is sufficient that such power is
reserved to the employer although the use of the
same has never arisen.
• READ THIS CASE IN ITS ORIGINAL TEXT:
South East International Rattan,
Inc. vs. Jesus Coming,
G.R. No. 186621, 12 March 2014.
5. KINDS OF EMPLOYEES –
(a). REGULAR EMPLOYEES – Typically,
regular employees are those who are entitled to
benefits such as: SSS, Pag-IBIG, PhilHealth, 13th
month pay, holiday pay, overtime pay, vacation
leave, and other benefits provided by law.
• Regular employees by nature of work –
It is commonly believed that all employees must
serve at least six months before they become
regular. This is untrue. Under the Labor Code,
so long as an employee performs any function
that is necessary and desirable in the ordinary
course of business, then such employee is
deemed regular regardless of the term of his
service. The only way to prevent such an
employee from becoming regular on his first day
would be to hire him on a probationary basis.
• Regular employees by years of service –
Any employee who has rendered at least one year
of service, whether continuous or intermittent, is
deemed regular with respect to the activity he
performed and while such activity actually exists
(Art. 281, Labor Code).
READ THIS CASE IN ITS ORIGINAL TEXT:
Moises De Leon vs. NLRC,
G.R. No. 70705, 21 August 1989.
• Security of tenure – Regular employees
enjoy security of tenure. Their employment may
only be terminated for just causes or authorized
causes set out in the law. In addition, regular
employees enjoy procedural due process, where
the employee must be informed of the grounds
for termination, and be given the opportunity to
present his defense or evidence. Thereafter, the
employee must be notified of the employer’s
decision to terminate his services. This is also
referred to as the “two-notice rule” where the
employer must send a first notice to the erring
employee composed of the formal charge and the
opportunity to defend himself. The second
notice is the notice of termination.
(b). PROBATIONARY EMPLOYEES –
Probationary employees are those hired for a
trial (or probationary) period during which the
employee must demonstrate the ability to
perform the job for which he has been hired.
Upon doing so, at the end of the probationary
period, the employee becomes a regular
employee.
• Probationary period – Under the law, (a) a
probationary period must not exceed six (6)
months and (b) at the start of this period, the
employer must inform the employee of the
standard by which his performance will be
evaluated. If any of these requirements are not
met, then the probationary employment is void
and the employee is deemed regular from day
one. It is advisable therefore to properly
document the probationary employment to
ensure that all legal requirements have been met.
• Security of tenure – It is important to
remember that probationary employees also
enjoy security of tenure during the probationary
period, and the employment may not be
terminated without a substantive reason and
compliance with the aforementioned two-notice
rule.
(c). CONTRACTUAL EMPLOYEES –
Contractual employees are employees whose
period and condition of employment are
dependent on the provisions of their contract.
The Labor Code does not explicitly permit
contractual or fixed-term employment, but the
courts have ruled that so long as the term in the
contract is not used to pre-emptively end the
employment and deny the employee’s security of
tenure, then it is valid.
• Security of tenure – It should be noted that
contractual or fixed-term employees enjoy the
right to security of tenure while the contract is in
effect.
(d). SEASONAL and PROJECT
EMPLOYEES – Seasonal employees are
employed for seasonal work. Project employees
are called to work only for the accomplishment
of a particular project. The period of
employment is co-terminus with the season or
the project, as the case may be. In both cases, the
employment is for a temporary period at the end
of which the employee ceases to work for the
employer.
• Security of tenure – During the seasonal or
project employment, the employee enjoys
security of tenure and may not be terminated
without cause.
6. TERMINATION OF EMPLOYMENT –
Termination of employment refers to the
cessation of the services of the employee by
management either through just or authorized
causes. The employee’s constitutional right to
security of tenure, wherein the employer cannot
terminate his services without just or authorized
causes, applies both to regular and non-regular
employees.
(a). Just causes for termination. – Under
Article 297 of the Labor Code, the employer may
terminate the services of the employee under the
following just causes:
1. Serious misconduct or willful disobedience by
the employee of the lawful orders of his
employer or representative in connection
with his work;
2. Gross and habitual neglect by the employee of
his duties;
3. Fraud or willful breach by the employee of the
trust reposed in him by his employer or duly
authorized representative;
4. Commission of a crime or offense by the
employee against the person of his employer
or any immediate member of his family or
his duly authorized representative; and
5. Other causes analogous to the foregoing.
(b). Authorized causes for termination. –
An authorized cause refers to an economic
circumstance not due to the employee’s fault.
Under Article 298 the employer is authorized to
terminate the employment of an employee due to
the following authorized causes:
1. Installation of labor-saving devices, also
known as “Automation/Robotics”;
2. Redundancy;
3. Retrenchment to prevent losses; and
4. Closure or cessation of business
(c). Precondition to valid termination. –
(C.1) Due process in case of just causes;
the “two-notice rule” – The employer is
required by law to furnish employees with two
written notices before termination of their
employment due to any of the just causes under
Article 297 of the Labor Code. Thus, the
following steps must be observed; otherwise, the
dismissal is illegal:
1. The first written notice to be served on the
employees should contain the specific causes or
grounds for termination against them, and a
directive that employees are given the
opportunity to submit their written explanation
within a reasonable period. The notice should
specifically mention which company rules, if any,
are violated and/or which among the grounds
under Article 297 of the Labor Code is being
charged against the employees.
2. After serving the first notice, the employees
should schedule and conduct a hearing or
conference wherein the employees will be given
the opportunity to (a) explain and clarify their
defense to the charge against them; (b) present
evidence in support of their defense; and (c)
rebut the evidence presented against them by the
management. During the hearing or conference,
the employees are given the chance to defend
themselves personally, with the assistance of a
representative or counsel of their choice.
3. After determining that termination is
justified, the employer shall serve the employees
a written notice of termination indicating that:
(a) all the circumstances involving the charge
against the employees have been considered; and
(b) grounds have been established to justify the
severance of their employment.
(C.2) Due process in case of authorized
causes – To effect the termination of any
employee for any of the authorized causes, the
employer must serve a WRITTEN NOTICE on
the worker and the Department of Labor and
Employment at least one (1) month before the
intended date thereof.
Constitutional Law
I. CONSTITUTIONAL LAW DEFINED. – It
is that branch of law which treats of the nature of
constitutions, their establishments, construction
and interpretation, and of the validity of legal
enactment as tested by the criterion of their
conformity to the fundamental law.
• Constitutional law lays down the general plan
of governmental organization, treats of the
relations of the government with the individuals,
and puts stress on individual rights.
II. CONSTITUTION DEFINED. – It is that
body of rules and maxims in accordance with
which the powers of sovereignty are habitually
exercised. (Cooley, Constitutional Limitations, p.
4)
• The Constitution of the Philippines may be
defined as that written instrument by which the
fundamental powers of the government are
established, limited, and defined, and by which
these powers are distributed among the several
departments for their safe and useful exercise for
the benefit of the body politic. (Malcolm and
Laurel, Philippine Constitutional Law, p. 6)
• The Constitution, aside from being an
allocation of power is also a social contract
whereby the people have surrendered their
sovereign powers to the State for the common
good. Hence, lest the officers of the Government
exercising the powers delegated by the people
forget and the servants of the people become
rulers, the Constitution reminds everyone that
sovereignty resides in the people and all
government authority emanates from them.
(Marcos vs. Manglapus, G.R. No. 88211,
September 15, 1989, 177 SCRA 668.)
• Kinds of Constitutions –
1. Written constitution – that whose
provisions are reduced into a formal instrument
and ratified by the body politic under certain
formalities prescribed by law; and
2. Unwritten constitution – that whose
provisions are not reduced into writing and is not
confined in one single instrument, but whose
tenets, principles and concepts are interspersed
in various statutes, norms, customs, judicial
decisions and even established practice.
• Sovereignty is the supreme power of the state
to command and enforce obedience, the power to
which, legally speaking, all interests are
practically subject, and all wills subordinate.
• Advantages and disadvantages of
written and unwritten constitutions – The
chief advantage of the written constitution lies in
its stability and definiteness. Having been
framed with care and after much deliberation, its
meaning is not likely to be drawn into question.
It cannot be easily “bent and twisted by the
courts” and is, therefore, a more effective
guarantee of the rights of the citizens. Its
weakness is found in its rigidity. The difficulty of
amendment retards desirable changes in the
interest of progress, and in this way may even
lead to a revolution when no other means
remains by which it can be altered or abrogated.
On the other hand, while the unwritten
constitution has the advantage of flexibility and
elasticity and of being the correct expression of
the progressive and changing necessities of the
state, it also has a serious drawback – that is, it is
subject to perpetual change.
3. BASIC PRINCIPLES OF THE
CONSTITUTION. –
(a). The Constitution is the supreme law
of the land:
• A constitution is a legislation direct from the
people acting in their sovereign capacity; hence,
it is more superior to an ordinary law or statute
which is merely a legislation from the people’s
representatives, subject to limitations prescribed
by the Constitution.
• No man-made law, therefore, can prevail as
against the Constitution.
(b). Being the supreme law of the land, it
is the symbol and monument of the
people’s will:
• As such it should be submitted for ratification
of the people following the principle that “x x x
sovereignty resides in the people and all
government authority emanates from them.”
(Sec. 1, Art. II, 1973 and 1987 Constitutions)
(c). The Constitution outlines the
infrastructure of the government:
• It is through the Constitution that the
fundamental powers of the government are
established, limited and defined, and by which
those powers are distributed among the several
departments of the government for their safe and
useful exercise, and for the benefit of the body
politic.
(d). The Constitution must be obeyed by
all:
• It governs the poor and the rich, the governed
and the governors, the mighty and the weak,
regardless of the color of one’s skin, his religion
or his political persuasion.
(e). The courts are the ultimate guardians
of the Constitution:
• It is the court that implements the laws
prescribed in the Constitution which would
certainly give the people whatever is just and fair
as the case may be.
4. INTERPRETATION OF THE
CONSTITUTION. – There are three well-
settled principles of constitutional construction:
(a). Verba legis – Whenever possible, the
words used in the Constitution must be given
their ordinary meaning, except with regard to
technical terms.
(b). Ratio legis at anima – Where there is
ambiguity, the words of the Constitution should
be interpreted in accord with the intent of the
framers.
(c). Ut magis valeat quam pereat – The
Constitution has to be interpreted as a whole.
• If there is doubt, the provisions of the
Constitution should be considered as self-
executing, mandatory rather than directory, and
prospective rather than retroactive.
5. BRIEF HISTORY OF THE PHILIPPINE
CONSTITUTION –
• The Philippines had had a total of six
constitutions since the Proclamation of
Independence on 12 June 1898.
• Malolos Constitution – In 1899, the Malolos
Constitution, the first Philippine Constitution –
the first republican constitution in Asia – was
drafted and adopted by the First Philippine
Republic, which lasted from 1899 to 1901.
• Philippine Organic Act of 1902 and the
Philippine Autonomy Act of 1916 – During
the American Occupation, the Philippines was
governed by the laws of the United States of
America. Organic Acts were passed by the
United States Congress for the administration of
the Government of the Philippine Islands. The
first was the Philippine Organic Act of 1902,
which provided for a Philippine Assembly
composed of Filipino citizens. The second was
the Philippine Autonomy Act of 1916, which
included the first pledge of Philippine
independence. These laws served as
constitutions of the Philippines from 1902 to
1935.
• The 1935 Philippine Constitution – In
1934, The United States Congress passed the
Philippine Independence Act, which set the
parameters for the creation of a constitution for
the Philippines. The Act mandated the
Philippine Legislature to call for an election of
delegates to a Constitutional Convention to draft
a Constitution for the Philippines. The 1934
Constitutional Convention finished its work on
February 8, 1935. The Constitution was
submitted to the President of the United States
for certification on March 25, 1935. It was in
accordance with the Philippine Independent Act
of 1934. The 1935 Constitution was ratified by
the Filipino people through a national plebiscite,
on May 14, 1935, and came into full force and
effect on November 15, 1935 with the
inauguration of the Commonwealth of the
Philippines. Among its provisions was that it
would remain the constitution of the Philippines
once independence was granted on July 4, 1946.
• In 1940, the 1935 Constitution was amended by
the National Assembly of the Philippines. The
legislature was changed from a unicameral
assembly to a bicameral congress. The
amendment also changed the term limit of the
President of the Philippines from six years with
no reelection to four years with a possibility of
being reelected for a second term.
• The 1943 Philippine Constitution –
During World War II, the Japanese-sponsored
government nullified the 1935 Constitution and
appointed Preparatory Committee on Philippine
Independence to replace it. The 1943
Constitution was used by the Second Republic
with Jose P. Laurel as President.
• Upon the liberation of the Philippines in 1945,
the 1935 Constitution came back into effect. The
Constitution remained unaltered until 1947
when the Philippine Congress called for its
amendment through Commonwealth Act No.
733. On March 11, 1947, the Parity amendment
gave United States citizens equal rights with
Filipino citizens to develop natural resources in
the country and operate public utilities. The
Constitution, thereafter, remained the same
until the declaration of Martial Law on
September 23, 1972.
• The 1973 Philippine Constitution – Before
President Marcos declared Martial Law, a
Constitutional Convention was already in the
process of deliberating on amending or revising
the 1935 Constitution. They finished their work
and submitted it to President Marcos on
December 1, 1972. President Marcos submitted
it for ratification in early of January 1973.
Foreseeing that a direct ratification of the
constitution was bound to fail, Marcos issued
Presidential Decree No. 86, s. 1972, creating
citizens assemblies to ratify the newly drafted
constitution by means of a Viva Voce vote in
place of secret ballots. Marcos announced that it
had been ratified and in full force and effect on
January 17, 1973. Although the 1973
Constitution had been “ratified” in this manner,
opposition against it continued. Chief Justice
Roberto V. Concepcion in his dissenting opinion
in the case of Javellana vs. Executive Secretary,
exposed the fraud that happened during the
citizen’s assembly ratification of the 1973
Constitution on January 10-15, 1973. However,
the final decision of this case was that the
ratification of the 1973 Constitution was valid
and was in force.
• The 1987 Philippine Constitution – When
democrary was restored in 1986, President
Corazon C. Aquino issued Proclamation No. 3,
suspending certain provisions of the 1973
Constitution and promulgating in its stead a
transitory constitution. A month later, President
Aquino issued Proclamation No. 9, s. 1986,
which created a Constitutional Commission
tasked with writing a new charter to replace the
1973 Constitution. The commission finished its
work at 12:28 a.m. of October 16, 1986. National
Plebiscite was held on February 2, 1987, ratifying
the new constitution. On February 11, 1987, by
virtue of Proclamation No. 58, President Aquino
announced the official canvassing of results and
the ratification of the draft constitution. The
1987 constitution finally came into full force and
effect that same day with the President, other
civilian officials, and members of the Armed
Forces swearing allegiance to the new charter.
6. FUNDAMENTAL OR INHERENT
POWERS OF THE STATE –
(a). POLICE POWER – It is the sovereign
power to promote and protect the general
welfare. It is the “most pervasive and the least
limitable of the three powers of the State (Ynot
vs. Intermediate Court of Appeals, 148 SCRA
659), the most essential, consistent and
illimitable which enables the State to prohibit all
hurtful things to the comfort, safety, and welfare
of society.”
• It is also referred to as the law of overwhelming
necessity.
(b). POWER OF EMINENT DOMAIN – It is
an inherent power of the State that enables it to
forcibly acquire private property, which is
intended for public use, upon the payment of just
compensation to the owner.
(c). POWER OF TAXATION – It is the
inherent power of the State to raise revenues to
defray the expenses of government or for any
public purpose. This can be done through the
imposition of the burdens or imposition on
persons, properties, services, or occupations or
transactions.
• Similarities of the three inherent powers of the
state:
• Interference – They are the three methods by
which the State interferes with private
rights.
• Inherent – They are inherent in the State and
they may be exercised by the State without
the need of express constitutional grant.
• Indispensable and indestructible – They
are not only necessary, but also
indispensable and indestructible as the
State itself.
• Equivalent compensation – They
presuppose equivalent compensation
• Legislative in character – They are
exercised primarily by the legislature.
• The three inherent powers differ in the
following:
1. AS TO NATURE OF COMPENSATION –
• In Police Power – The compensation of the
person subjected to police power is the intangible
altruistic feeling that he has contributed to the
general welfare.
• In Eminent Domain – There is full and just
compensation for the property taken.
• In Taxation – There is corresponding
protection and public improvement for the taxes
paid.
2. AS TO NATURE OF PROPERTY –
• In Police Power – Police power involves
destruction and confiscation of property which
are noxious.
• In Eminent Domain and Taxation – The
property is taken for public use.
3. AS TO HOW THE POWER IS
EXERCISED –
• In Police Power and Taxation – They are
inherently exercisable only by the government.
• In Eminent Domain – It may be exercised
by private entities upon valid delegation.
4. AS TO WHAT IS REGULATED –
• In Police Power – It regulates liberty and
property.
• In Eminent Domain and Taxation – They
are addressed to private rights only.
7. THE THREE BRANCHES OF
GOVERNMENT – The Constitution basically
sets out the different governmental powers of the
state among the three equal and coordinate
branches of the government – the executive, the
legislative, and the judiciary.
(a). THE EXECUTIVE DEPARTMENT –
The Executive Department is the branch of
government tasked with the duty of enforcing the
law. Symbolically deemed as wielding the sword,
it is the most active branch of government
dealing directly with the affairs of the people.
The Constitution vests executive powers on the
President of the Philippines and has control and
supervision on all executive offices.
(b). THE LEGISLATIVE DEPARTMENT –
By Constitutional mandate, the lawmaking
power is vested in the Legislative Department, to
wit:
“The legislative power shall be vested in
the Congress of the Philippines which
shall consist of a Senate and a House of
Representatives, except to the extent
reserved to the people by the provision
on the initiative and referendum.”
(Section 1, Article VI, 1987
Constitution.)
• The Philippine Congress – The Philippine
Congress is composed of two chambers – the
Senate and the House of Representatives. A
Senate President heads the Senate, while a
Speaker of the House leads the House of
Representatives. This branch of government is
symbolically depicted as holding the purse of the
government since the annual appropriations is
approved by this body.
• The Philippine Senate – The Senate is
essentially mandated with lawmaking since its
constitutional role and duty to make laws are
derived from the people through popular
representation.
• The Senate is traditionally deemed concerned
with the national sentiment rather than the
regional and local interests and demands of
various localities. It therefore plays a strategic
role in the country’s growth and development by
pushing national programs or legislative agenda
that addresses the country’s national concerns
such as national development in terms of foreign
policy, economy, peace and order, anti-
terrorism, education, health, and social welfare.
While actions of the Lower House is generally
based on the concerns of their respective
constituencies, the Senators, who derive their
mandate from a plurality of the nation’s voting
population, are focused on positions that deal
with national importance.
• In aid of legislation – The Senate is not only
confined to lawmaking. The Constitution vested
in the Senate the power to undertake legislative
inquiries.
“The Senate or the House of
Representatives or any of its respective
committees may conduct inquiries in
aid of legislation in accordance with its
duly published rules of procedure. The
right of persons appearing in, or
affected by, such inquiries shall be
respected. (Section 21, Article VI, 1987
Constitution)
It should be noted that the power of legislative
investigation may be implied from the express
power of legislation and need not be expressly
granted.
(c). THE JUDICIARY – Neither wielding the
sword nor purse is the Judiciary. This branch of
government is given the enormous task of
interpreting and applying the law in actual
controversies.
The Supreme Court, headed by a Chief Justice, is
the highest court of the land and its judicial
pronouncements form part of the laws of the
land.
• The power of judicial review – Under
Article VIII of the Constitution, the Supreme
Court shall have the following powers:

“1. Exercise original jurisdiction over
cases affecting ambassadors, other
public ministers and consuls, and over
petitions for certiorari, prohibition,
mandamus, quo warranto, and habeas
corpus.
“2. Review, revise, modify, or affirm on
appeal or certiorari, as the law or the
Rules of Court may provide, final
judgments and orders of lower courts
in:
(a). All cases in which the
constitutionality or validity of any
treaty, international or executive
agreement, law, presidential decree,
proclamation, order, instruction,
ordinance, ordinance, or regulation is
in question.
(b). All cases involving the legality of
any tax, impost, assessment, or toll, or
any penalty imposed in relation thereto.
(c). All cases in which the jurisdiction of
any lower court is in issue.
(d). All criminal cases in which the
penalty imposed is reclusion perpetua
or higher.
(e). All cases in which only an error or
question of law is involved.”
Moreover, the Supreme Court shall have the
administrative supervision over all courts and
the personnel thereof.
8. SOME BASIC CONCEPTS IN
CONSTITUTIONAL LAW –
• STATE IMMUNITY FROM SUIT – State
immunity is a legal doctrine by which the State
or sovereign cannot commit a legal wrong and is
immune from civil or criminal prosecution. The
State is the source of the authority which creates
the courts. Thus, the courts have no power to
compel the State to be bound by its decisions, as
said courts were created by the State for the
protection of its subjects. There can be no legal
right against the authority which makes the law
on which the right depends. This doctrine is also
known as “Royal Prerogative of Dishonesty.”
• There are two (2) kinds of consent: (1) express
consent can be given only through an act of
Congress, in a general or special law An example
of a general law granting consent is
Commonwealth Act No. 327, as amended by
Presidential Decree No 1445, which requires that
all money claims against the government must
first be filed with the Commission on Audit
(COA) before suit is instituted in court; (2)
implied consent happens when the State
commences litigation or enters into a business
contract with an individual. The State in effect,
descends to the level of said individual and thus,
opens itself to counter suits.
• IMPEACHMENT – Impeachment is a
fundamental Constitutional power belonging to
Congress. It is an extraordinary process of
removal exercised by the legislature over a
selected number of officials. This safeguard
against corruption aims to remove persons
holding government positions of high authority,
prestige, and dignity, with definite tenure; for
causes closely related to their misconduct as
public officials.
Impeachable Officers –
(a). President
(b). Vice-President
(c). Members of the Supreme Court
(d). Members of the Constitutional Commissions
(e). Ombudsman
• Grounds for Impeachment –
(a). Culpable violation of the Constitution
(b). Treason
(c). Bribery, graft and corruption
(d). Other high crimes, or betrayal of public trust
(Section 2, Article XI, 1987 Constitution)
• SYSTEM OF CHECKS AND BALANCES –
As a logical offshoot of the principle of separation
of powers, the system of checks and balances
provide that the awesome powers of government
– executive power, legislative power and the
power of judicial review – are reposed in the
three co-equal and co-ordinate branches. The
system of checks and balances in our
government is designed to avert excesses in the
wielding of government authority in each of the
different branches of government.
With this system in place, there is less
opportunity for abuse of power and mechanisms
are in place in order to enable each department
to check on one another.
Illustrative examples:

1. The President may veto a law passed by

Congress, which in turn, can overturn the veto if
it has the numbers.
2. Certain executive and judicial officials may be
impeached by Congress for acts that are listed in
the Constitution.
3. A law enacted by Congress and an order of the
President may be questioned in and reviewed by
the Supreme Court.

• QUASI-JUDICIAL POWER – Quasi-

judicial power refers to the power of an
administrative agency to resolve conflicts
involving factual issues. Such exercise should be
within the parameters prescribed in the law
granting such quasi-judicial powers and always
in harmony with the legislative intent of policy
the law was created for.

• QUASI-LEGISLATIVE POWER – Quasi-

legislative power, on the other hand, is the power
granted to administrative agencies to
promulgate rules and regulations relative to law
and is also referred to as he rule-making power
and authority of an administrative body.
Sometimes called subordinate legislation, the
administrative agencies fill in the gaps or details
that are left out by the law granting such power.
Good examples are Implementing Rules and
Regulations (IRR) and circulars implementing
the law.