School Work 1

Bicol University – College of Law

Labor Law and Social Legislation
Atty. Roberto Rafael N. Lucila II
S.Y. 2023-24

1) May social justice, as a guiding principle in labor law be used by courts

in sympathy with the working man if it collides with the Equal
Protection clause of the Constitution?
Answer:
Yes. The State is enjoined under the Constitution to afford full protection to
Labor. When conflicting interests clash and they are to be weighed on the scales
of social justice, the law should accord more sympathy and compassion to the
less privileged workingman. (Fuentes v. NLRC. 266 SCRA 24 f 19971)
However, as provided by jurisprudence, social justice ceases to be an
instrument for the “equalization of the social and economic forces” by the State
when it is used towards the ends of injustice or blatant wrongdoings.

2) What is the quantum of evidence required in labor case? Explain.

Answer:
The required quantum of evidence in labor cases is substantial evidence.
Substantial evidence, within the context of labor cases, pertains to a quantum of
evidence that a reasonable observer would deem sufficient to warrant a conclusion.
It is important to underscore that the burden of proof in labor cases does not
necessitate reaching a threshold of proof beyond a reasonable doubt. As it stands,
substantial evidence, one that lends ample support to a particular stance, is enough
to substantiate a claim or defense.

3) What is the principle of non-oppression?

Answer:
As stated in the Civil Code, the principle of non-oppression dictates that
“Neither capital nor labor shall act oppressively against the other, or impair the
interest or convenience of the public.” This means that the constitutional policy of
providing full protection to labor is not intended to oppress or destroy
management. Rather, when the laborer is patently or blatantly not in the right,
courts shall not adjudicate the case to favor said laborer just because the courts are
committed to the cause of labor.

4) Manchester Corporation is a domestic corporation registered with the

SEC, with 25.1% of the authorized capital stock owned by foreigners,
and the remaining stock owned by Filipinos. Is Manchester Corporation
allowed to engage in the recruitment and placement of workers, locally
and overseas? Please explain your answer.
Answer:
No. Under the Omnibus Rules Implementing the Labor Code, only Filipino
citizens or corporations, partnerships or entities at least seventy-five percent
(75%) of the authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in the
recruitment and placement of workers, locally or overseas.
In the case at bar, 25.1% of the stocks are owned by foreigners which leave
74.9% of the remaining stock owned by Filipinos. 74.9% is clearly not equal to
the 75% mandated by the Omnibus Rules Implementing the Labor Code, thus
Manchester Corporation can not be allowed to engage in recruitment and
placement of workers locally or overseas.

5) Pat Benitar is the sole proprietor of a travel agency. Pat noticed that
most of his clients were travelling overseas and would often be tricked
by unscrupulous recruitment and placement agencies. Having
developed a relationship with the clients, Pat decided to apply for a
license for recruitment and placement activities so that the client will be
dealing with an honest and fair person, and would not fall prey to the
scheming recruitment agencies. Pat also disclosed that there will be no
fees collected, thus there will be no profit. Should the application be
granted?
Answer:
No, the application should not be granted. Under Article 26 of the Labor
Code, “Travel agencies and sales agencies of airline companies are prohibited
from engaging in the business of recruitment and placement of workers for
overseas employment whether for profit or not.”
6) What is the difference between license and authority?
Answer:
In the context of recruitment and placement of workers, “License” refers to
the document issued by the DOLE Secretary authorizing a person, partnership,
or corporation to operate a private recruitment/manning agency. On the other
hand, “Authority” refers to the document issued by the DOLE Secretary
authorizing the personnel, officers, agents or representatives of a licensed
recruitment/manning agency to conduct recruitment and placement activities in
a place stated in the license or in a specified place.

7) Can a license be sold or transferred to another person? If no, is there

any exception with respect to the transfer of license?
Answer:
No, one cannot sell or transfer a license to another person.
Under Article 29 of the labor code “No license or authority shall be used
directly or indirectly by any person other than the one in whose favor it was
issued or at any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or entity…”
However, as an exception, “Any transfer of business address, appointment or
designation of any agent or representative including the establishment of
additional offices anywhere shall be subject to the prior approval of the
Department of Labor”

8) Can a case of illegal recruitment and estafa be filed simultaneously? Is

the dismissal of one action be the cause of the dismissal of the other
action? Discuss the difference between estafa and illegal recruitment.
Answer:
Yes. Jurisprudence provides that a person, for the same acts, may be
convicted separately for Illegal Recruitment under RA 8042 (or the Labor
Code), and Estafa under Article 315(2)(a) of the RPC.

The dismissal of either the estafa or illegal recruitment charges, when both
arise from identical actions by the accused, shall not bar or dismiss the
prosecution for the unresolved offense. While the crime of estafa necessitates
the element of harm or damage, such a requirement is inapplicable to the
offense of illegal recruitment. In the latter case, the unlawfulness of the
recruitment activity is contingent upon the absence of the required license or
authority, rather than the mere act of payment of a placement fee.
9) Explain the Theory of Imputed Knowledge. Does it work both ways?
Answer:
Theory of Imputed Knowledge is a legal concept that states that knowledge
or information possessed by one person to another person or entity based on
their relationship or a particular set of circumstances. This theory is often
invoked in various legal contexts, such as agency law, corporate law, and in
some criminal cases.
For instance, in the context of recruitment and placement, if an employee of
a company has knowledge of an illegal recruitment being conducted by the
company and they are in a position of authority or responsibility, the law may
impute that knowledge to the corporation itself. This can make the corporation
liable for the illegal acts of recruitment conducted by its employees or agents.
Jurisprudence provides that sometimes notice to the principal is not notice to
the agent. Thus, in cases where there is notice to the foreign employer, it cannot
be imputed that the local employment agency has been notified too.

10) A seafarer was prevented from leaving the port of Manila and
refused deployment without valid reason. His POEA approved contract
provides that employer-employee relationship only commences only
upon the seafarer’s actual departure from the port of hire. Is the
seafarer entitled to relief under the Migrant Workers Act, in the
absence of an employer employee relationship?
Answer:
Yes, the seafarer is entitled to relief under the Migrant Worker’s Act.
The act of preventing the seafarer from departing the port of Manila and
deployment to the ship in his contract constitutes a breach of contract. This
gives rise to seafarer’s cause of action. When an employer of a seafarer
unilaterally and unjustifiably defaulted on its obligation to deploy said seafarer,
it must answer for the actual or compensatory damages suffered by the seafarer,
as well as the attorney’s fees incurred when said seafarer got the services of an
attorney to represent him in court proceedings relating to his cause of action.
11) Who are not covered by Title 1 Book III of the Labor Code,
discussing hours of work, weekly rest period, holidays, service incentive
leaves and service charges?
Answer:
Under the Labor Code, as a general rule, the provisions on work hours,
weekly rest periods, holidays, service incentive leaves, and service charges
applies to all employees in all establishments and undertakings, whether for
profit or not. However, such rule is subject to exceptions that it shall not apply
to “government employees, managerial employees, field personnel, members of
the family of the employer who are dependent on him for support, domestic
helpers, persons in the personal service of another, and workers who are paid by
results as determined by the Secretary of Labor in appropriate regulations.”

12) Who are managerial employees?

Answer:
Under the Labor Code, “…“managerial employees” refer to those whose
primary duty consists of the management of the establishment in which they are
employed or of a department or subdivision thereof, and to other officers or
members of the managerial staff.”

13) Define each term: Government employees; officers and members

of the managerial staff; field personnel; members of family of the
employer who are dependent on him for support; Domestic helpers;
persons in the personal service of another; and workers paid by results.

Government employees encompass individuals working in various

government branches, departments, agencies, and related entities, including
those at the local government level and government-owned corporations
with original charters. The terms and conditions of their employment are
subject to regulation by the Civil Service Law and its accompanying rules.

Officers and members of the managerial staff are employees who

have specific duties and responsibilities which primarily engage in tasks
directly linked to their employer's management policies, consistently
exercise discretion and independent judgment, and typically assist a manager
or carry out specialized or technical work under supervision. Their work
mainly relates to management, and they spend no more than 20 percent of
their work hours on activities unrelated to these managerial duties.
 Field personnel refer to non-agricultural employees who regularly
work away from their employer's main office, and their precise working
hours in the field cannot be easily determined.

Members of the employer's family who rely on the employer for

financial support are family members who are financially dependent on the
employer but are not governed by the employment conditions set out in
Book III of the Labor Code due to the substantial support provided by the
employer.

Domestic helpers are individuals who perform household services

essential for the upkeep and enjoyment of the employer's residence.

Persons in the personal service of another are those who attend to

the personal well-being, convenience, or safety of the employer and the
employer's household members.

Workers paid by results receive compensation based on the quantity

of work produced rather than the time spent on production. They receive a
fixed amount for each unit of work, which is often repetitive in nature.

14) In lieu of overtime pay, the employee was given permission to go

on leave on some other day, is that valid?

Answer:

The permission given to the employee to go on leave for a day in a regular

work week in lieu of overtime pay is not valid. Under the Labor Code, it can be
only be valid provided that it shall not exempt the employer from paying the
additional compensation required for the overtime work done.

15) Socorro is a clerk-typist in Hospicio de San Jose, a charitable

institution dependent for its existence on contributions and donations
from well wishers. She renders work 11 hours a day but has not given
OT pay since her place of work is a charitable institution. Is socorro
entitled to overtime pay? Explain. (2002 Bar Question)
Answer:

Yes. Socorro is eligible for overtime compensation. She does not fall into
any of the exceptions exempted from the provisions of Article 82 concerning
working hours. It has to be noted that the Labor Code applies equally to non-profit
institutions. Any employee covered by the Labor Code, working more than eight
(8) hours, is entitled to receive overtime compensation.

16) Danillo Flores applied for the position of driver in the motor-pool
of Gold Company, a multinational corporation. Danillo was informed
that he would frequently be working overtime as he would have to drive
for the company’s executives even beyond the ordinary 8-hour work
day. He was provided with a contract of employment wherein he would
be paid a monthly rate equivalent to 35 times his daily wage, regular
sick and vacation leaves, 5 day-leave with pay every month and time off
with pay when the company’s executives using the cars do not need
Danilo’s service for more than eight hours a day, in lieu of overtime.
Are the above provisions of the contranct of employement in conformity
with, or violate of, the law?

Answer:

The terms and conditions outlined in Danilo's employment contract

generally do not contravene any provisions of the Labor Code, with a few
exceptions of some clauses. In fact, they are generous when compared to the
minimum standards that the existing provisions of relevant labor laws.
Consequently, the monthly compensation equivalent to 35 times the daily wage
may sufficiently cover overtime pay. However, the clause stipulating that
Danilo shall receive paid time off when the company's executives using the cars
do not require his services for more than eight hours a day is not in line with the
provisions of the Labor Code.

The Labor Code does not mandate the providing sick and vacation leaves,
except for the inclusion of a five-day service incentive leave. The granting of a
five-day leave with pay every month, as stated in Danilo's contract, goes
beyond the requirements of labor law and is generous in itself. However, it
should not be overlooked that the clause in Danilo's employment contract
substituting paid time off for overtime pay, conflicts with the provision in the
Labor Code that specifies that undertime work on a particular day cannot be
offset by overtime work on another day. Granting permission to the employer to
take leave on a different day of the week does not exempt the employer from
the obligation to provide the additional compensation mandated by the Labor
Code which in this case should be a minimum of 25% of his regular salary on
top of his regular salary.

17) Can undertime be offset by overtime? If not, what is the recourse

of the employer?
Answer:

No, overtime cannot offset undertime. Under Article 88 of the Labor

Code of the Philippines, an employer shall not offset undertime work of an
employee by overtime work on the particular day or any other day. This
shall also not exempt the employer in paying additional compensation to the
employee.

As provided in National Waterworks and Sewerage Authority vs.

NWSA Consolidated Unions, et al., (G.R. No. L-18939, August 31, 1964),
the appropriate course of action for the employer in such situations is to
subtract the undertime from the employee's accumulated leave balance while
still disbursing the owed overtime compensation. This approach not only
ensures that the employee receives the overtime rightfully due but also helps
maintain a consistent and regular work schedule. Setting off overtime
against undertime could lead to irregular work hours contingent on the
employee's actions, which is undesirable and impractical.

18) What is included in the compensable hours worked?

Under the Labor Code, working hours are compensable when:
- Employee is required to be on duty or to be at a prescribed workplace;
- Employee is suffered or permitted to work;
 - Rest periods of short duration during working hours shall not be more
than 20 minutes; and
- Meal period of less than 20 minutes

19) Discuss the principles in determining hours worked.

Answer:

Under the Labor Code, the principles in determining hours worked are
as follows:
“Principles in determining hours worked. — The following general
principles shall govern in determining whether the time spent by an
employee is considered hours worked for purposes of this Rule:

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.
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.”
20) The employment contract requires work for more than 8 hours a
day with a fixed wage inclusive of OT pay, Is that valid?
Answer:

Yes, it is valid. Under the Labor Code, “Work may be performed

beyond eight (8) 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. Work performed beyond
eight hours on a holiday or rest day shall be paid an additional compensation
equivalent to the rate of the first eight hours on a holiday or rest day plus at
least thirty percent (30%) thereof”

In the case at bar, the fixed wage already includes OT pay, therefore it
is a valid employment contract.

21) Give the difference between wage and salary?

Answer:

Essentially, a salaried person is paid a fixed amount per pay period

and a wage earner is paid by the hour.

22) Define minimum wage.

Answer:
As defined by the International Labor Organization, minimum wage is
“the minimum amount of remuneration that an employer is required to pay
wage earners for the work performed during a given period, which cannot be
reduced by collective agreement or an individual contract.”

23) What is the principle of non-diminution of benefits? Explain.

Answer:

Principle of non-diminution of benefits refers to the prohibition

against employers from eliminating or reducing the benefits received by
their employees.

Under Article 100 of the Labor Code of the Philippines, the principle
of non-diminution of benefits is stated where no provisions of the said law
 shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at its promulgation. Further, as provided in
jurisprudence, the Supreme Court held that this principle is founded on the
constitutional mandate to protect rights of workers and afford them full
protection.

24) The general rule is that the employer may not deduct from the
wages of the employees. What are the exceptions?
Answer:
As provided under Art. 113 of the Labor Code, the exceptions are as
follows:
1. where the worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid by him as
premium on the insurance;
2. for union dues, in cases where the right of the worker or his union to
check-off has been recognized by the employer or authorized in writing
by the individual worker concerned;
3. the employer is authorized by law or regulations issued by the Secretary
of Labor and Employment

25) The normal work hours of any employee shall not exceed 8 hours
a day. Explain the exceptions and the rationale for the exception.
Answer:
As a general rule, the normal work hours of any employee shall not
exceed 8 hours per day. However, the Labor Code provides several
exceptions:

First, under Article 83, “…Health personnel in cities and

municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall
hold regular office hours for eight (8) hours a day, for five (5) days a week,
exclusive of time for meals, except where the exigencies of the service
require that such personnel work for six (6) days or forty-eight (48) hours, in
which case, they shall be entitled to an additional compensation of at least
thirty percent (30%) of their regular wage for work on the sixth day. For
purposes of this Article, "health personnel" shall include resident physicians,
nurses, nutritionists, dietitians, pharmacists, social workers, laboratory
technicians, paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.”

Second, as provided under Article 89, overtime work may be required

in the following cases:
a. 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;
b. When it is necessary to prevent loss 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;

c. When there is urgent work 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;

d. When the work is necessary to prevent loss or damage to perishable

goods; and

e. Where the completion or continuation of the work started before the

eighth hour is necessary to prevent serious obstruction or prejudice to the
business or operations of the employer.

Further, as provided under Article 92, an employer may require an

employee to work on a rest day on the following cases:
a. In cases of actual or impending emergencies;
b. In cases of urgent work to be performed on machines, installations,
or equipment, to avoid serious loss or damage;
 c. In the event of abnormal pressure of work due to special
circumstances;
d. In order to prevent loss or damage to perishable goods; and
e. In case the nature of work requires continuous operations and
stoppage of work shall result to irreparable injury.

In the situations described above, we can observe that the exceptions

to the standard working hours are primarily rooted in the demands of the job
particularly in times of emergency, natural calamities or urgent works such
as repairs of vital infrastructure. These are done in order to respond to such
unforeseen events quickly without being confined to regular working hours
and prevent or minimize the loss of lives and prevent interruption of basic
services. Further, employees who render overtime work shall be entitled to
additional compensation on top of their regular pay.