Labor Law and Social Legislation

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Labor Law and Social Legislation Syllabus-based Reviewer for the 2023 Bar

Table of Contents
3. Labor Code 4. Due Process Clause. Sec 1 Art III. No person shall be
deprived of life, liberty, or property without due process of
Fundamental Principles and Concepts 2 State Policy Towards Labor law, nor shall any person be denied the equal protection of the
laws.
Pre-Employment 4 1. Security of Tenure
Constitutional provisions on the protection of labor are NOT
2. Social Justice SELF-EXECUTING, and are mere guidelines that need enabling laws.
Employment Proper 10 They are not judicially enforceable.
3. Equal Work Opportunities
Management Prerogative 11
Council of Teachers & Staff of Colleges &
4. Right to Self-Organization and Collective Bargaining 2018 En Banc
Universities of the Phils. v. Sec. of Education
Labor Standards 14
5. Construction in Favor of Labor The constitutional mandates of protection to labor and security of
Social Welfare Legislation 36 tenure may be deemed as self-executing in the sense that these are
6. Burden of Proof and Quantum of Evidence
automatically acknowledged and observed without need for any
Labor Relations 43 enabling legislation. However, to declare that the constitutional
A Legal Basis provisions are enough to guarantee the full exercise of the rights
Telecommuting Act 55 embodied therein, and the realization of ideals therein expressed,
would be impractical, if not unrealistic.
1 1987 Constitution
Post-Employment 56 Subsequent legislation is still needed to de ne the parameters of
Provides limitations in the enactment of Labor Laws. these guaranteed rights to ensure the protection and promotion, not
Jurisdiction and Remedies 80 only the rights of the labor sector, but of the employers' as well.
1. Non-impairment Clause. Sec 10 Art III. No law impairing
the obligation of contracts shall be passed.
Fundamental Principles and Concepts
2. Equal Protection Clause. Sec 1 Art III. No person shall be
2 Civil Code
I PD 442, as amended deprived of life, liberty, or property without due process of
law, nor shall any person be denied the equal protection of the
Omnibus Rules implementing the Labor Code
laws.
Article 1700. The relations between capital and labor are not
Legal Basis 3. Prohibition Against Involuntary Servitude. Sec 18(2) Art merely contractual. They are so impressed with public interest that
III. No involuntary servitude in any form shall exist except as a labor contracts must yield to the common good. Therefore, such
1. 1987 Constitution punishment for a crime whereof the party shall have been duly contracts are subject to the special laws on labor unions, collective
convicted.
2. Civil Code

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bargaining, strikes and lockouts, closed shop, wages, working
conditions, hours of labor and similar subjects.
Article 1701. Neither capital nor labor shall act oppressively against
the other, or impair the interest or convenience of the public.
(Principle of Non-oppression)
Article 1702. In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety and decent living
for the laborer.
3 Labor Code
a) PD 442, as amended;
b) Omnibus Rules implementing the Labor Code.
B State Policy Towards Labor
SEC 3 ART XIII. The State shall
1. a ord full protection to labor, local and overseas, organized
and unorganized, and
2. promote full employment and equality of employment
opportunities for all.
Collective Rights of Workers. — It shall guarantee the rights of all
workers to
1. self-organization,
2. collective bargaining and negotiations, and
3. peaceful concerted activities, including the right to strike in
accordance with law.
Individual Rights of Workers. — They shall be entitled to
1. security of tenure,
2. humane conditions of work, and a
3. living wage.
Right to Participate. — They shall also participate in policy and
decision-making processes a ecting their rights and bene ts as may
be provided by law.
The State shall promote
1. the principle of shared responsibility between workers and
employers and
2. 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
1. the right of labor to its just share in the fruits of production
and
2. the right of enterprises to reasonable returns to investments,
and to expansion and growth.
1 Security of Tenure
ART 294. Security of Tenure. — In cases of regular employment, the
employer shall not terminate the services of an employee except for a
just cause or when authorized by this Title. An employee who is
unjustly dismissed from work shall be entitled to
a) reinstatement without loss of seniority rights and other
privileges and
b) his full backwages, inclusive of allowances, and
c) his other bene ts or their monetary equivalent computed
from the time his compensation was withheld from him up
to the time of his actual reinstatement.
2 Social Justice
The promotion of the welfare of all the people, the adoption by
the Government of measures calculated to insure economic
stability of all the component elements of society, through the
maintenance of a proper economic and social equilibrium in the
interrelation of the members of the community, constitutionally,
through the adoption of measures legally justi able, or
extra-constitutionally through the exercise of powers underlying
the existence of all Governments on the time-honored principle of
Salus Populi est suprema lex. (Calalang v. Williams)
3 Equal Work Opportunities
a) The State shall promote full employment and equality of
employment opportunities for all.
b) A manifestation of this is the enactment of RA 10911 or the
Anti-Age Discrimination in Employment Act.

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Right to Self-Organization and Collective
4
Bargaining
a) An employee can join a union on the rst day of employment.
b) Collective bargaining is a contract between workers and
employers on terms and conditions of employment over and
above those mandated by law.
5 Construction in Favor of Labor
ART 4. Construction in Favor of Labor. — All doubts in the
implementation and interpretation of the provisions of this
Code, including its implementing rules and regulations, shall
be resolved in favor of labor.
a) In Peñaflor v. Outdoor Clothing 2010, this principle has been
extended to cover doubts in the evidence presented by the
employer and the employee.
b) If doubt exists between the evidence presented by the
employer and the employee, the scales of justice must be tilted
in favor of the latter. (Dreamland Hotel Resort v. Johnson
2014)
c) The rule is that where the law speaks in clear and categorical
language, there is no room for interpretation; there is only
room for application. Only when the law is ambiguous or of
doubtful meaning may the court interpret or construe its true
intent. (Leoncio v. MST Marine Services 2017)
6 Burden of Proof and Quantum of Evidence
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Maula v. Ximex Delivery Express 2017 the complaining employee has shown, by substantial evidence,
the fact of termination by the employer
In administrative and quasi-judicial proceedings, the quantum of
evidence required is substantial evidence or "such relevant
evidence as a reasonable mind might accept as adequate to support a
2012 re Clear and
conclusion." Thus, unsubstantiated suspicions, accusations, and Duty Free Philippines v. Tria
Convincing Evidence
conclusions of the employer do not provide legal justi cation for
dismissing the employee. In illegal dismissal cases, the employer is burdened to prove just
cause for terminating the employment of its employee with clear
and convincing evidence. This principle is designed to give esh
Minsola v. New City Builders, Inc. 2018 re Money Claims and blood to the guaranty of security of tenure granted by the
Constitution to employees under the Labor Code.
In claims for payment of salary di erential, service incentive
leave, holiday pay and 13th month pay, the burden rests on the
employer to prove payment. This standard follows the basic rule II Pre-Employment
that in all illegal dismissal cases the burden rests on the defendant to
Recruitment and Placement of Local and Migrant
prove payment rather than on the plainti to prove non-payment.
Workers
On the other hand, for overtime pay, premium pays for holidays
and rest days, the burden is shifted on the employee, as these 1. De nition of Recruitment and Placement
monetary claims are not incurred in the normal course of business.
It is thus incumbent upon the employee to rst prove that he 2. Regulation of Recruitment and Placement Activities
actually rendered service in excess of the regular eight working hours
a day, and that he in fact worked on holidays and rest days. 3. Illegal Recruitment
4. Liability of Local Recruitment Agency and Foreign
Employer
Remoticado v. Typical
2018 re Illegal Dismissal
Construction Trading
5. Termination of Contract of Migrant Worker
There can be no case for illegal termination of employment when
there was no termination by the employer. While, in illegal Employment of Non-Resident Aliens
termination cases, the burden is upon the employer to show just
cause for termination of employment, such a burden arises only if Discriminatory Practices
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Labor Law and Social Legislation
Recruitment and Placement of Local
A and Migrant Workers
Migrant Workers and Overseas Filipinos Act of 1995
1 De nition of Recruitment and Placement
Recruitment and placement refers to any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or
procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad,
whether for pro t or not:
Provided, That any person or entity which, in any manner,
1. o ers or promises for a fee,
2. employment to two or more persons
shall be deemed engaged in recruitment and placement.
Regulation of Recruitment and Placement
2
Activities
a) Regulatory Authorities
(1) Philippine Overseas Employment Administration
Shall regulate private sector participation in the recruitment
and overseas placement of workers by setting up a licensing
and registration system. It shall also formulate and implement
a system for promoting and monitoring the overseas
employment of Filipinos.
Labor Situationers. The POEA, in consultation with the
DFA, shall disseminate information on labor and employment
conditions, migration realities and other facts, as well as
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adherence of particular countries to international standards on
human and workers rights which will adequately prepare
4) Other employers as may be allowed by the POEA, such as
individuals into making informed and intelligent decisions a) Those provided in 1, 2, and 3 above who bear a lesser
about overseas employment. rank, if endorsed by the Philippine Overseas Labor O ce
(POLO), or Head of Mission in the absence of the
(2) Regulatory and Visitorial Powers of the POLO;
Department of Labor and Employment Secretary
b) Professionals and skilled workers with duly executed
Art 36. Regulatory Power. The Secretary of Labor shall
veri ed/authenticated contracts containing terms and
have the power to restrict and regulate the recruitment and
conditions over and above the standards set by the POEA.
placement activities of all agencies within the coverage of this
The number of professionals and skilled OFWs hired for
Title and is hereby authorized to issue orders and promulgate
the rst time by the employer shall not exceed ve (5). For
rules and regulations to carry out the objectives and
the purpose of determining the number, workers hired as
implement the provisions of this Title.
a group shall be counted as one; or
Art 37. Visitorial Power. The Secretary of Labor or his duly
c) Workers hired by a relative/family member who is a
authorized representatives may, at any time, inspect the
permanent resident of the host country, except domestic
premises, books of accounts and records of any person or
workers (live-in caregiver/care worker or household service
entity covered by this Title, require it to submit reports
workers).
regularly on prescribed forms, and act on violations of any
provisions of this Title. Their hiring nonetheless must be processed through the POEA by
submitting:
b) Ban on Direct Hiring
1) The employment contract;
see POEA Memorandum Circular No. 08, S. 2018
2) Valid passport;
Implementing Guidelines on the Registration of Direct-Hire
OFWs. 3) Employment visa or work permit, or equivalent;
No employer may hire a Filipino worker for overseas employment 4) Certi cate of medical tness; and
except through the Boards and entities authorized by the DOLE.
5) Certi cate of attendance to the required employment
The following, however, are exempted from the ban
orientation/ brie ng.
1) members of the diplomatic corps;
c) Entities Prohibited from Recruiting
2) international organizations;
The following are disquali ed from recruitment and placement for
3) Heads of state and government o cials with the rank of at domestic employment:
least deputy minister;
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1) Persons convicted of
a) illegal recruitment,
b) tra cking in persons,
c) violation of child labor laws, or
d) crimes involving moral turpitude;
2) Agencies whose licenses have previously been cancelled or
revoked;
3) Cooperatives;
4) Law enforcers and any o cial or employee of the DOLE.
5) Those against whom probable cause or prima facie nding of
guilt for illegal recruitment or other related cases exist
particularly to owners or directors of agencies who have
committed such violations.
6) Sole proprietors of duly licensed agencies are prohibited from
securing another license to engage in recruitment and
placement.
7) Sole proprietors, partnerships or corporations licensed to
engage in private recruitment and placement for local
employment are prohibited from engaging in job contracting
or subcontracting activities. (Sec 5, DO No 141-14)
For Overseas Employment
1) Travel agencies and sales agencies of airline companies;
2) O cers or Board members of any corporation or partners in a
partnership engaged in the business of a travel agency;
3) Corporations and partnerships, where any of its o cers,
Board members or partners is also (b);
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4) Individuals, partners, o cers or directors of an insurance
company who make, propose or provide an insurance contract
under the compulsory insurance coverage for agency-hired
OFWs;
5) Sole proprietors, partners or o cers and board members with
derogatory records.
6) Any o cial or employee of DOLE, POEA, OWWA, DFA,
DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBO, PNP,
CAAP, international airport authorities, and other GAs
directly involved in the implementation of RA No 8042
and/or any of his relatives within the 4th civil degree.
d) Suspension or Cancellation of License or Authority
Meaning of License and Authority
Authority refers to a document issued by the SOLE authorizing the
o cers, personnel, 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 speci ed
place.
License refers to the document issued by the SOLE authorizing a
person, partnership or corporation to operate a private
recruitment/manning agency.
Any recruitment activities, including the prohibited practices, to
be undertaken by non-licensees or non-holders of authority shall
be deemed illegal.
The characteristics of a recruitment license are:
1) It is place-speci c;
2) It is person-speci c; and
3) It is prospective.
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The DOLE Secretary and POEA Administrator have concurrent
jurisdiction to suspend or cancel a license.
e) Prohibited Practices
It shall be unlawful for any individual, entity, licensee, or holder of
authority:
1) To charge or accept directly or indirectly any amount
greater than that speci ed in the schedule of allowable
fees prescribed by the SOLE, or to make a worker pay or
acknowledge any amount greater than that actually received by
him as a loan or advance;
2) To furnish or publish any false notice or information or
document in relation to recruitment or employment;
3) To give any false notice, testimony, information or
document or commit any act of misrepresentation for
the purpose of securing a license or authority under the
Labor Code, or for the purpose of documenting hired workers
with the POEA, which include the act of reprocessing workers
through a job order that pertains to non-existent work, work
di erent from the actual overseas work, or work with a
di erent employer whether registered or not with the POEA;
4) To induce or attempt to induce a worker already
employed to quit his employment in order to o er him
another unless the transfer is designed to liberate a worker
from oppressive terms and conditions of employment;
5) To in uence or attempt to in uence any person or entity
not to employ any worker who has not applied for
employment through his agency or who has formed, joined or
supported, or has contacted or is supported by any union or
workers' organization;
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6) To engage in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of
the Republic of the Philippines;
7) To obstruct or attempt to obstruct inspection by the
SOLE or by his duly authorized representative;
8) To fail to submit reports on the status of employment,
placement vacancies, remittance of foreign exchange earnings,
separation from jobs, departures and such other matters or
information as may be required by the SOLE;
9) To substitute or alter to the prejudice of the worker,
employment contracts approved and veri ed by the
Department of Labor and Employment from the time of
actual signing thereof by the parties up to and including the
period of the expiration of the same without the approval of
the Department of Labor and Employment;
10) For an o cer or agent of a recruitment or placement
agency to become an o cer or member of the Board of
any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel agency;
11) To withhold or deny travel documents from applicant
workers before departure for monetary or nancial
considerations, or for any other reasons, other than those
authorized under the Labor Code and its implementing Rules
and Regulations;
12) Failure to actually deploy a contracted worker without valid
reason as determined by the DOLE;
13) Failure to reimburse expenses incurred by the worker in
connection with his documentation and processing for
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purposes of deployment, in cases where the deployment does
not actually take place without the worker's fault; and 3 Illegal Recruitment
14) To allow a non-Filipino citizen to head or manage a
licensed recruitment/manning agency.
a) Elements
1) Essential Element. Presupposes deceit or
Other Prohibited Acts
misrepresentation.
15) Excessive Interest. To arrange, facilitate or grant a loan to an
a) Without being duly authorized;
OFW with interest >8% per annum, which will be used for
payment of legal and allowable placement fees and make the b) Gave distinct impression that he had power or ability
OFW issue, either personally or through a guarantor or to deploy workers;
accommodation party, postdated checks in relation to the said c) Complainants were convinced to part with their
loan; money by such impression;1
16) Specifying a Loan Entity. To impose a compulsory and d) There must be at least a promise or o er of
exclusive arrangement whereby an OFW is required to avail a employment.2
loan only from speci cally designated entities;
2) Recruitment and Placement; Presumption. Where a fee is
17) Non-renegotiation of Loan. To refuse to condone a loan collected in consideration of a promise or o er of employment
incurred by an OFW after his employment contract has been to two or more prospective workers.
prematurely terminated not through his fault.
3) Additional elements
18) Specifying a Medical Entity. Whereby an OFW is required
a) For syndicated. — committed by three or more
to undergo health examinations only from speci c clinics,
entities, except when the cost is shouldered by the principal; persons conspiring and confederating with one
another. (People v. Hashim 2012)
19) Specifying a Training Entity. Whereby an OFW is
b) For large scale. — committed against three or more
required to undergo trainings, seminars only from speci c
persons, individually or as a group. (People v.
entities, except when cost is shouldered by the principal;
Tuguinay 2012)
20) Violation of Suspension. To engage in any kind of
recruitment activity including the processing of pending b) Types
workers’ applications; and There are at least four kinds of illegal recruitment under the law.
21) Collection of Insurance Premium. To pass on the employer
through deduction of his wages the cost or premium of
insurances under the compulsory workers insurance coverage. 1
People v. Goce, GR No 113161, August 29, 1995
2
Darvin v. CA and People, GR No 125044, July 13, 1998
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Labor Law and Social Legislation
1) One is simple illegal recruitment committed by a licensee or
holder of authority.
2) Any person “who is neither a licensee nor a holder of
authority” commits the second type of illegal recruitment.
3) Large scale or Qualified. — The third type of illegal
recruitment refers to o enders who either commit the o ense
alone or with another person against three or more persons
individually or as a group.
4) Syndicated —A syndicate or a group of three or more
persons conspiring and confederating with one another in
carrying out the act circumscribed by the law commits the
fourth type of illegal recruitment by the law. (People v.
Sadiosa)
Under RA 8042, the third and fourth types herein are
considered Illegal Recruitment as Economic Sabotage.
c) Illegal Recruitment vs. Estafa
1) Estafa by means of false pretense. A worker who su ers
pecuniary damage as a result of a previous or simultaneous
false pretense resorted to by a nonlicensee or nonholder of
authority, may complain for estafa aside from illegal
recruitment.
2) Illegal recruitment and estafa cases may be led simultaneously
or separately. The ling of charges for illegal recruitment does
not bar the ling of estafa, and vice versa. An accused’s
acquittal in the illegal recruitment case does not prove that she
is not guilty of estafa.
Double jeopardy will not set in because illegal recruitment is
malum prohibitum, in which there is no necessity to prove
criminal intent, whereas estafa is malum in se, in the
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prosecution of which, proof of criminal intent is necessary. (Sy
v. People 2010)
Liability of Local Recruitment Agency and
4 5
Foreign Employer
a) Solidary Liability
1) The liability of the principal/employer and the
recruitment/placement agency for any and all claims under
this section shall be joint and several.
2) Such liabilities shall continue during the entire period or
duration of the employment contract and shall not be
affected by any substitution, amendment or
modification made locally or in a foreign country of the said
contract. (Sec 10, RA 8042)
3) In Sto. Tomas, et al. v. Salac 2012 En Banc, however, the Court
clari ed that liability may be imputed on the corporate o cers
or directors only if it is proved that they are personally
involved in the wrongful acts of the company.
4) The liability of corporate directors and o cers is not
automatic. To make them jointly and solidarily liable with
their company, there must be a nding that they were remiss in
directing the a airs of that company, such as sponsoring or
tolerating the conduct of illegal activities.
b) Theory of Imputed Knowledge
Sunace International Management Services, Inc. v. NLRC
The theory of imputed knowledge ascribes the knowledge of the
agent TO the principal, not the other way around. The
3
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knowledge of the principal-foreign employer cannot, therefore, be
imputed to its agent.
Termination of Contract of Migrant Worker
1. In case of termination of overseas employment without just,
valid or authorized cause as de ned by law or contract, or any
unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement of his
placement fee and the deductions made with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired
portion of his employment contract or for three (3) months
for every year of the unexpired term, whichever is less3. (Sec 10)
2. Termination of employment of OFWs takes place in the
following instances:
a. Pre-termination of employment contract with
approval of employer;
b. Discharge for a valid cause;
c. Su ered injury or illness; or
d. An OFW has died.
Skippers United Pacific Inc. v. Doza 2012
The OFW can pre terminate his employment contract which is akin
to resignation. However, if the employer failed to submit substantial
evidence that indeed the OFW voluntarily pre-terminated his
contract; then the OFW is deemed illegally dismissed.
The best proof of pre-termination is a written resignation.
Declared unconstitutional.
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B Employment of Non-Resident Aliens
1) Only non-resident aliens are required to secure employment
permit. For resident aliens and immigrants, what is required is
an Alien Employment Registration Certi cate (AERC).
2) The latest department order issued about employment of
foreign workers is DO No 146-15.
3) A foreign national working in PH without the requisite
employment permit may le with the NLRC an illegal
dismissal complaint. The dismissal may be declared invalid and
she may be recognized as an employee but she cannot be
awarded claim for monetary bene ts. To do so will
sanction the violation of PH labor laws requiring aliens to secure
work permits before their employment.4
4) Alien Employment Permit. — Revised Rules for Issuance
of Employment Permits to Foreign Nationals, DOLE D.O.
No. 186, S. 2017
Coverage. — All foreign nationals who intend to engage in
gainful employment in the Philippines shall apply for AEP.
Exemption. — The following categories of foreign nationals
are exempt from securing an employment permit:
a) All members of the diplomatic service and
foreign government o cials subject to reciprocity;
b) O cers and sta of international organizations of
which the Philippine government is a member, and
their legitimate spouses desiring to work in PH;
4
WPP Marketing, et al. v. Galera 2010
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c) Owners and representatives of foreign principals i. who is a manager, executive or specialist
whose companies are accredited by the POEA, who in accordance with Trade Agreements and
come to the Philippines
ii. an employee of the foreign service supplier
i. for a limited period and for at least one (1) year continuous
employment.
ii. solely for the purpose of interviewing
Filipino applicants for employment abroad; e) All other intra-corporate transferees not within these
categories as de ned above are required to secure an
d) Foreign nationals who come to the Philippines to
AEP prior to their employment in the Philippines.
teach, present and/or conduct research studies in
universities and colleges as visiting, exchange or f) Contractual service supplier who is a manager,
adjunct professors provided that the exemption is executive or specialist and an employee of a foreign
on a reciprocal basis; service supplier which has no commercial presence in
the Philippines:
e) Permanent resident foreign nationals and
probationary or temporary resident visa holders; i. who enters the Philippines temporarily to
supply a service pursuant to a contract;
f) Refugees and Stateless Persons recognized by DOJ;
and ii. must possess the appropriate educational and
professional quali cations; and
g) All foreign nationals granted exemption by law.
iii. must be employed by the foreign service
Exclusion. — The following categories of foreign nationals
supplier for at least one year prior to the
are excluded from securing an employment permit:
supply of service in the Philippines.
a) Members of the governing board with voting
g) Representative of the Foreign Principal/Employer
rights only and do not intervene in the management
assigned in the O ce of Licensed Manning Agency
of the corporation or in the day to day operation of
(OLMA).
the enterprise.
5) Working Permits & Visas. — See DOLE, DOJ, BI and BIR
b) President and Treasurer, who are part-owner of the
Joint Guidelines No. 01, S. 2019
company.
c) Those providing consultancy services who do not
C Discriminatory Practices
have employers in the Philippines.
d) Intra-corporate transferee
1 Age
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RA 10911 or the Anti-Age Discrimination in
Employment Act
1) It is now unlawful
a) For employers to
i) Print or publish, or cause to be printed or
published, in any form of media, including
the internet, any notice of advertisement
relating to employment suggesting
preferences, limitations, speci cations, and
discrimination based on age;
ii) Require the declaration of age or birth date
during the application process;
iii) Decline any employment application because
of the individual's age;
iv) Discriminate against an individual in terms
of compensation, terms and conditions or
privileges of employment on account of such
individual's age;
2 their employer.
v) Deny any employee's or worker's promotion
or opportunity for training because of age;
The following are acts of discrimination:
vi) Forcibly lay o an employee or worker
because of old age; or
vii) Impose early retirement on the basis of such
employee's or worker's age.
b) For a labor organization to
i) Deny membership to any individual because
of such individual's age;
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ii) Exclude from its membership any individual
because of such individual's age; or
iii) Cause or attempt to cause an employer to
discriminate against an individual.
2) The law however accepts of exceptions
a) Age is a bona fide occupational qualification
reasonably necessary in the normal operation of a
particular business or where the di erentiation is
based on reasonable factors other than age;
b) The intent is to observe the terms of a bona de
seniority system that is not intended to evade the
purpose of this Act;
c) The intent is to observe the terms of a bona de
employee retirement or a voluntary early retirement
plan consistent with the purpose of this Act; or
d) The action is duly certi ed by the SOLE.
Gender and/or Marital Status
RA 9710 or the Magna Carta of Women
a) Payment of a lesser compensation, including wage, salary or
other form of remuneration and fringe bene ts, to a female
employee as against a male employee, for work of equal value;
and
b) Favoring a male employee over a female employee with respect
to promotion, training opportunities, study and scholarship
grants solely on account of their sexes.
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Health Condition
3
RA 7277 or the Magna Carta for Disabled Persons
No entity, whether public or private, shall discriminate against a
quali ed disabled person by reason of disability in regard to job
application procedures, the hiring, promotion, or discharge of
employees, employee compensation, job training, and other terms,
conditions, and privileges of employment.
Solo Parents
4
Sec. 7, RA 8972, as amended by RA 11861
Work Discrimination. — No employer shall discriminate
against any solo parent employee with respect to terms and
conditions of employment on account of his or her status,
Employers may enter into agreements with their solo parent
employees for a telecommuting program, as provided in RA No.
11165, otherwise known as the ‘Telecommuting Act':
Provided, That said solo parent employees shall be given priority by
III Employment Proper
Management Prerogative
Labor Standards
Social Welfare Legislation
Labor Relations
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A Management Prerogative
Discipline
Transfer of Employees
Productivity Standard
Bonus
Change of Working Hours
Bona Fide Occupational Quali cations
Marriage Between Employees of Competitor-Employers
Post-Employment Restrictions
Kephilco Malaya Employees Union v. Kepco Philippines
The employer's right to conduct the a airs of its business, according
to its own discretion and judgment, is well-recognized. An employer
has a free reign and enjoys wide latitude of discretion to regulate all
aspects of employment, including the prerogative to instill discipline
in its employees and to impose penalties, including dismissal, upon
erring employees.
This is a management prerogative, where the free will of
management to conduct its own a airs to achieve its purpose takes
form. The only criterion to guide the exercise of its management
prerogative is that
a) the policies, rules and regulations on work-related activities
of the employees must always be fair and reasonable and
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b) the corresponding penalties, when prescribed,
commensurate to the o ense involved and to the degree of
the infraction.
1 Discipline
1) The right or prerogative to discipline covers the following
rights to:
a) Discipline;
b) Dismiss;
c) Determine who to punish;
d) Promulgate rules and regulations;
e) Impose penalty (proportionality rule)
f) Choose which penalty to impose; AND
g) Impose heavier penalties than what the company
rules prescribe.
2) The proportionality rule means that the penalty to be
imposed must be commensurate with the o ense committed.
2 Transfer of Employees
1) The lateral movement from one position to another of
equivalent rank, level or salary. Could be a movement:
a) From one position to another; or
b) From one o ce to another within the same business
establishment.
Syllabus-based Reviewer for the 2023 Bar
2) This is an inherent right to control or manage by the ER.
Consent of EE NOT required.
3) This is exercised by the ER in the best interest of the company
to see where a particular EE can be best maximized. For a
transfer to be valid, the following REQUISITES must be
observed:
a) Must be reasonable or have a sound purpose;
b) Must not inconvenient the welfare of the EE;
c) Not prejudicial to the EE;
d) Not involve a demotion of rank or status;
e) Not be motivated by discrimination;
f) Not made in bad faith;
g) Not be e ected as a form of punishment without
su cient cause.
4) Failure to observe these requisites, the transfer is deemed
CONSTRUCTIVE DISMISSAL. Same reliefs as that of
illegal demotion.
5) An EE who refuses to be transferred when such is valid, is
guilty of insubordination or willful disobedience of a
lawful order of an ER under Art 297[282] of the LC.
6) Refusal to be transferred is VALID in the following cases
a) Overseas assignment;
b) Consequent to promotion;
This is a scalar transfer. The EE may refuse as this
entails additional responsibilities.
c) To avoid con ict of interest;
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d) Occasioned by the abolition of the position.
7) Refusal is INVALID
a) Due to parental obligations;
b) Additional expenses;
c) Inconvenience;
d) Hardship and anguish.
Peckson v. Robinsons Supermarket 2013
Concerning the transfer of employees, these are the following
jurisprudential guidelines:
a) a transfer is a movement from one position to another of
equivalent rank, level or salary without break in the service
or a lateral movement from one position to another of
equivalent rank or salary;
b) the employer has the inherent right to transfer or reassign
an employee for legitimate business purposes;
c) a transfer becomes unlawful where it is motivated by
discrimination or bad faith or is e ected as a form of
punishment or is a demotion without su cient cause;
d) the employer must be able to show that the transfer is not
unreasonable, inconvenient, or prejudicial to the employee.
Chateau Royale Sports & Country Club v. Balba 2017
The burden of proof lies in the employer to prove that the transfer
of the employee from one area of operation to another was for a
valid and legitimate ground, like genuine business necessity.
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The right of the employee to security of tenure does not give her a
vested right to her position as to deprive management of its
authority to transfer or re-assign her where she will be most useful.
WON the transfer of respondents to petitioner's Manila office was a
valid exercise of management prerogative.
YES. The transfer could not be validly assailed as a form of
constructive dismissal, for, as held in Benguet Electric
Cooperative v. Fianza, management had the prerogative to
determine the place where the employee is best quali ed to serve
the interests of the business given the quali cations, training and
performance of the a ected employee.
According to Abbot Laboratories (Phils.), Inc. v. NLRC, the
employee who has consented to the company's policy of hiring sales
sta willing to be assigned anywhere in the Philippines as demanded
by the employer's business has no reason to disobey the transfer
order of management. Verily, the right of the employee to security of
tenure does not give her a vested right to her position as to deprive
management of its authority to transfer or re-assign her where she
will be most useful.
3 Productivity Standard
Aliling v. Feliciano 2012
An employer is entitled to impose productivity standards for its
workers, and in fact, non-compliance may be visited with a penalty
even more severe than demotion.
Failure to observe prescribed standards of work, or to ful ll
reasonable work assignments due to ine ciency may constitute just
Syllabus-based Reviewer for the 2023 Bar
cause for dismissal. Such ine ciency is understood to mean failure
to attain work goals or work quotas, either by failing to complete the
same within the allotted reasonable period, or by producing
unsatisfactory results. This management prerogative of
requiring standards may be availed of so long as they are
exercised in good faith for the advancement of the employer's
interest.
4 Bonus
Mega Magazine Publications v. Defensor 2014
The grant of a bonus or special incentive, being a management
prerogative, is not a demandable and enforceable obligation, except
when the bonus or special incentive
1. is made part of the wage, salary or compensation of the
employee, or
2. is promised by the employer and expressly agreed upon by
the parties.
Bonus is a gratuity or act of liberality of the giver, and cannot be
considered part of an employee’s wages if it is paid only when pro ts
are realized or a certain amount of productivity is achieved. If the
desired goal of production or actual work is not accomplished, the
bonus does not accrue.
5 Change of Working Hours
CCBPI v. Iloilo Coca-Cola Plant Employees Union 2018
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WON scheduling Saturday work has ripened into a company practice,
the removal of which constituted a diminution of benefits.
NO. In Royal Plant Workers Union v. Coca-Cola Bottlers
Philippines, Inc.-Cebu Plant, the Court had the occasion to rule that
the term "bene ts" mentioned in the non-diminution rule refers
to monetary bene ts or privileges given to the employee with
monetary equivalents. Stated otherwise, the employee bene ts
contemplated by Article 100 are those which are capable of being
measured in terms of money.
CCBPI withdrew the Saturday work itself, pursuant, as already
held, to its management prerogative. In fact, this management
prerogative highlights the fact that the scheduling of the Saturday
work was actually made subject to a condition, i.e., the prerogative
to provide the company's employees with Saturday work based on
the existence of operational necessity.
In the case at bar, CCBPI's employees were not illegally prevented
from working on Saturdays. The company was simply exercising
its option not to schedule work pursuant to the CBA provision
Theories on Employment Discrimination
which gave it the prerogative to do so. It therefore follows that the
principle of "no work, no pay" nds application in the instant case.
6 Bona Fide Occupational Quali cations
1) To be considered a bona fide occupational qualification,
the policy must
a) Serve a legitimate business purpose;
b) Be speci c to the occupation at issue; and
c) Re ect an inherent quality that would reasonably
guarantee work e ciency.
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2) Employment may not be limited to persons of a particular sex,
religion, or national origin unless the employer cas show that
such quali cations are necessary in the performance of the job
involved. Exceptions to BFOQ:
a) Employment quali cation is reasonably related to
the essential operation of the job involved; and
b) There is a factual basis for believing that all or
substantially all persons meeting the quali cation
would be unable to properly perform the duties of
the job.
Marriage Between Employees of
7
Competitor-Employers
A policy prohibiting spouses from being employed in the same
company. There must be compelling business necessity for
which no alternative exists other than the discriminatory practice
for it to be VALID.
1. Disparate Treatment — Plainti must prove that an
employment policy is discriminating on its face;
2. Disparate Impact — Plainti must prove that a facially
neutral policy has a disproportionate e ect on a part of the
class.
Duncan Assoc. of Detailman-PTGWO v.
Glaxo Wellcome Phils.
No reversible error can be ascribed to the Court of Appeals when it
ruled that Glaxo’s policy prohibiting an employee from having a
relationship with an employee of a competitor company is a valid
Syllabus-based Reviewer for the 2023 Bar
exercise of management prerogative.
Glaxo has a right to guard its trade secrets, manufacturing formulas,
marketing strategies and other con dential programs and
information from competitors, especially so that it and Astra are
rival companies in the highly competitive pharmaceutical industry.
The prohibition against personal or marital relationships with
employees of competitor companies upon Glaxo’s employees is
reasonable under the circumstances because relationships of that
nature might compromise the interests of the company. In laying
down the assailed company policy, Glaxo only aims to protect its
interests against the possibility that a competitor company will gain
access to its secrets and procedures.
8 Post-Employment Restrictions
1) An EE is prohibited after separation from joining a
competitor. VALID, subject to limitations as to duration and
place.
2) A non-compete clause is not necessarily void for being in
restraint of trade as long as there are reasonable limitations as
to three (3) things: time, place and trade.
3) Restrictive covenant clauses. — In determining whether
the contract is reasonable or not, the following factors should
be considered:
a) whether the covenant protects a legitimate business
interest of the employer;
b) whether the covenant creates an undue burden on
the employee;
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c) whether the covenant is injurious to the public a) Coverage 1) All hours are hours worked which the employee is required
welfare; to give his employer, regardless of whether or not such hours
are spent in productive labor or involve physical or mental
d) whether the time and territorial limitations contained Employees NOT covered
exertion.
in the covenant are reasonable; and
1) Government employees
2) An employee need not leave the premises of the workplace
e) whether the restraint is reasonable from the
2) Managerial EEs — Meet the following conditions: in order that his rest period shall not be counted, it being
standpoint of public policy.
a) Formulate policies; enough that he stops working, may rest completely and may
leave his work place, to go elsewhere, whether within or
B Labor Standards b) Execute management policies; outside the premises of his work place.
c) Impose disciplinary actions 3) If the work performed was necessary, or it bene ted the
Conditions of Employment
Reason for exclusion Not usually employed by the hour, but employer, or the employee could not abandon his work at
Wages by their special training, experience or knowledge. the end of his normal working hours because he had no
replacement, all time spent for such work shall be considered
Leaves 3) Field personnel — If they:
as hours worked, if the work was with the knowledge of his
a) Regularly perform duties away from the principal or employer or immediate supervisor.
Special Groups of Employees
branch o ce or place of business of employer; and
4) The time during which an employee is inactive by reason of
Sexual Harassment in the Work Environment b) Whose actual hours of work in the eld cannot be interruptions in his work beyond his control shall be
determined with reasonable certainty. considered working time either
1 Conditions of Employment 4) Members of the family of employer who are dependent a) if the imminence of the resumption of work requires the
upon him for support — Employer has already taken care of employee's presence at the place of work or
a) Coverage the employee’s sustenance.
if the interval is too brief to be utilized e ectively and gainfully in the
b) Hours of Work 5) Domestic helpers — covered in Kasambahay Law; employee's own interest.
6) Persons in the personal service of another — Already
c) Rest Periods (1) Normal Hours of Work and Hours Worked
provided with living quarters; nature of work; plus they are
not employed in a business undertaking.
d) Holidays The normal hours of work of any employee shall not exceed eight (8)
7) Workers paid by results whose time and performance are hours a day. It includes
e) Service Charge NOT supervised — Piece rate or job or task based.
1) Hours worked under Art 84
f) Occupational Safety and Health Standards Law b) Hours of Work a. All time during which EE is required to be on duty or to
be at a prescribed workplace;

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b. All the time during which an EE is su ered or permitted
to work;
2) Rest periods of short interval (5-20 minutes)
3) Meal period of less than 20 minutes;
4) Reasonable time to withdraw wages from bank or ATM, or by
check.
Other hours of work
1) Children. — below 15: 20H/W, 4H/D, not allowed between
8pm to 6am of next day;
15-18: 40H/W, 8H/D, not allowed between 10pm to 6am the
next day.
2) Domestic worker. — entitled daily to at least 8 hours
aggregate rest per day.
3) Health personnel. — in
a. Cities and municipalities with at least 1M population; or
b. Hospitals with at least 100 bed capacity,
Regular o ce hours for 8 hours a day, 5 days a week, except where
exigencies of service require such personnel to work on the 6th day, in
which case he is entitled to the 30% premium pay. see DOLE D.O.
No. 182 s. 2017.
(2) Compressed Work Week
1) Normal workweek — 6 consecutive days, 48 hours per week;
2) Compressed — less than 6 days, but may not exceed 12 hours
per day. It is an alternative arrangement whereby the normal
workweek is reduced to less than 6 days but the total number
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of normal work hours per week remains at 48. Thus, the
workweek may be compressed only up to 4 days.
3) CWW results from an express voluntary agreement of
majority of the covered employees or their duly authorized
representatives.
4) A three-day work week is illegal. — Illegal compressed
workweek when work days were reduced from 6 to 3 days a
week, resulting to illegal reduction of work hours, as there was
no adequate proof of losses. Financial losses must be shown
before a company can validly opt to reduce the work
hours of its employees. (Linton Commercial v. Hellera)
5) Waiving of OT in CWW is valid. D.O. No. 21 sanctions
the waiver of overtime pay in consideration of the bene ts that
the employees will derive from the adoption of a compressed
workweek scheme. (Bisig ng Manggagawa sa Tryco v. NLRC)
See DOLE DA No. 2 s. 2004
6) Flexible work arrangements refer to alternative
arrangements or schedules other than the traditional or
standard work hours, workdays and workweek. The following
are the exible work arrangements which may be considered,
among others:
a) Compressed Workweek refers to one where the
normal workweek is reduced to less than six (6) days
but the total number of work-hours of 48 hours per
week shall remain. The normal workday is increased
to more than eight hours but not to exceed twelve
hours, without corresponding overtime premium.
The concept can be adjusted accordingly depending
on the normal workweek of the company pursuant to
Syllabus-based Reviewer for the 2023 Bar
the provisions of Department Advisory No. 02, series
of 2004, dated 2 December 2004.
b) Reduction of Workdays refers to one where the
normal work days per week are reduced but should
not last for more than six months.
c) Rotation of Workers refers to one where the
employees are rotated or alternately provided work
within the workweek.
d) Forced Leave refers to one where the employees are
required to go on leave for several days or weeks
utilizing their leave credits if there are any.
e) Broken-time schedule refers to one where the work
schedule is not continuous but the work-hours
within the day or week remain.
f) Flexi-holidays schedule refers to one where the
employees agree to avail the holidays at some other
days provided there is no diminution of existing
bene ts as a result of such arrangement.
See DOLE DA No. 2 s. 2009
7) Telecommuting refers to work from an alternative
workplace with the use of telecommunications and/or
computer technologies.
See DOLE DO No. 202 s. 2019 or the IRR of RA 11165, and RA
11165 or the Telecommuting Act.
(3) Meal Periods
At least one-hour of non-compensable meal period.
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May be shortened (Book III Rule 1 Sec 7) to at most, 20 minutes c) There is urgent work to be performed on machineries Ordinary day x1 x1.1 x1.25 x1.375
provided: in order to avoid serious loss or damage to the employer;
Rest Day (RD) x1.3 x1.43 x1.3 x1.859
1) Work is non-manual; d) Work is necessary to prevent loss or damage of
perishable goods; Special Day
2) Establishment regularly operates not less than 16 hours a day; x1.3 x1.43 x1.69 x1.859
(SD)
e) Completion or continuation of work started before
3) In cases of actual or impending emergencies or there is urgent
the 8th hour necessary to prevent serious obstruction SD on RD x1.5 x1.65 x1.95 x2.145
work to be performed on machineries; and
or prejudice to the business; and
4) Work is necessary to prevent serious loss of perishable goods. Regular
x2 x2.2 x2.6 x2.86
f) Necessary to avail of favorable weather conditions. Holiday (RH)
(4) Night-Shift Di erential
Under Art 88 and jurisprudence, undertime is strictly not RH on RD x2.6 x2.86 x3.38 x3.718
o set by overtime.
Refers to the additional compensation of ten percent (10%) of an Double
x3 x3.3 x3.9 x4.29
employee’s regular wage for each hour of work performed between 10 Holiday (DH)
Robina Farms Cebu v. Villa 2016
p.m. and 6 a.m. DH on RD x3.9 x4.29 x5.07 x5.577
Firstly, entitlement to overtime pay must rst be established by
1) 110% of Basic Hourly Rate;
proof that the overtime work was actually performed before the
c) Rest Periods
2) Employees working between 10 PM - 6 AM of the next day; employee may properly claim the bene t. The burden of proving
entitlement to overtime pay rests on the employee because the
3) NOT waivable, founded on public policy. Employees working for 6 consecutive days are entitled to a rest
bene t is not incurred in the normal course of business.
day of at least 24 consecutive hours.
(5) Overtime Work
And, secondly, the DTRs did not substantially prove the actual
GR: Employer schedules employee’s rest day.
performance of overtime work. Any employee could render
GR: No employee may be compelled to render OT against overtime work only when there was a prior authorization therefor EXC: Employee preference based on religious ground;
his will; by the management. Without the prior authorization, therefore,
EE must make known his preference 7 days before
EXC: Art 89 Villa could not validly claim having performed work beyond the
initial rest day.
normal hours of work.
a) Country is at war or there is a declared national or EXC to the EXC:
local emergency;
(6) Computation of Additional Compensation When it will cause serious obstruction or prejudice to
b) OT is necessary to prevent loss of life or property or the employer, employer shall schedule the rest day of
in case of imminent danger to public safety due to w/o Night w/ NS OT Pay
OT Pay employee’s choice at least 2 days in a month.
Work on Shift = = w/o w/ NS
calamities; = BHR
Regular NS = BHR GR: Employer cannot compel employee to work on a rest
day.

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EXC: Under Art 92 and Book III Rule III Sec 6:
a. In case of actual or impending emergencies due to
calamities, or in case of force majeure or imminent
danger to public safety;
b. Urgent work needs to be performed on machineries
to avoid serious loss;
c. Abnormal pressure of work due to special
circumstance;
d. Prevent serious loss of perishable goods;
e. Nature of work requires 7 days continuous work, i.e.
crew members in vessels;
f. Work is necessary to avail of favorable weather
conditions.
NO rest day for
a. Employees excluded from labor standards (Art. 82)
Union members who are supervisory employees
considered as o cers and members of the managerial
sta are exempt from the coverage of Article 82.
Perforce, they are not entitled to overtime, rest day
and holiday. (National Sugar Refineries v. NLRC)
b. Shift engineer, no right to overtime and premium pay
as he is an o cer or member of managerial sta
(Peñaranda v. Baganga Plywood)
d) Holidays
1. Coverage. — This rule shall apply to all employees except:
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a. Those of the government and any of the political
subdivision, including GOCC;
b. Those of retail and service establishments regularly
employing less than ten (10) workers;
c. Domestic helpers and persons in the personal service of
another;
d. Managerial employees;
e. Field personnel and other employees whose time and
performance is unsupervised by the employer including
those who are engaged on task or contract basis, purely
commission basis, or those who are paid a xed amount
for performing work irrespective of the time consumed in
the performance thereof.
2. Regular holiday shall exclusively refer to: New Year's Day,
Maundy Thursday, Good Friday, the 9th of April, the 1st of
May, the 12th of June, the last Monday of August, the 30th of
November, the 25th and 30th of December.
3. National holidays include Eidul Fitr and Eidul Adha.
4. Nationwide special days shall include the Chinese New Year,
25th of February, Black Saturday, 21st of August, 1st and 2nd
of November, 8th, 24th and 31st of December, and 8th of
December.
Regular Holiday Special Day
A covered employee who does NOT report for work
Is paid 100% of his regular wage Not paid
A covered employee who reports for work
Syllabus-based Reviewer for the 2023 Bar
Is paid 200% of his regular wage Is paid 130% of his regular wage
e) Service Charge
1) Service charge refers to the amount that is added to the bill
for work or service rendered.
2) All service charges actually collected by covered establishments
shall be distributed COMPLETELY and EQUALLY, based
on actual hours or days of work or service rendered among the
covered employees, including those already receiving the
bene t of sharing in the service charges.
3) Covered employees refer to all employees, except managerial
employees, under the direct employ of the covered
establishment.
4) Relevant laws and rules:
a) as amended by RA No. 11360, e ective on September 4,
2019 per DOLE Labor Advisory No. 10 s. 2020;
b) see DOLE DO No. 206 s. 2019;
c) see DOLE Labor Advisory No. 14, S. 2019.
f ) Occupational Safety and Health Standards Law
RA 11058
(1) Covered Workplaces
Refer to establishments, projects, sites and all other places
where work is being undertaken wherein the number of
employees, nature of operations, and risk or hazard involved in
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the business, as determined by the SOLE, require compliance
with the provisions of RA 11058.
Including
a) Establishments located inside special economic zones and
other investment promotion agencies;
b) Utilities engaged in air, sea, and land transportation;
c) Industries such as mining, shing, construction, agriculture,
and maritime;
d) Contractors and subcontractors, including those engaged in
projects of the public sector.
Excluding
a) Public sector such as the NGAs, GOCCs with original
charters, GFIs, SUCs and LGUs.
(2) Duties of Employers, Workers and Other Persons
1) Every employer, contractor or subcontractor, if any, and
any person who manages, controls or supervises the work
being undertaken shall
2) Every worker shall participate in ensuring compliance with
a) Furnish the workers a place of employment free
from hazardous conditions that are causing or are
likely to cause death, illness or physical harm to
workers;
b) Give complete job safety instructions or
orientation to all the workers especially to those
entering the job for the rst time, including those
relating to familiarization with their work
environment;
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c) Inform the workers of the hazards associated with
their work, health risks involved or to which they are
exposed to, preventive measures to eliminate or
minimize the risks, and steps to be taken in cases of
emergency;
d) Use only approved devices and equipment for the
workplace;
e) Comply with OSH standards including training,
medical examination and, where necessary, provision
of protective and safety devices such as personal
protective equipment (PPE) and machine guards;
f) Allow workers and their safety and health
representative to participate actively in the process
of organizing, planning, implementing and evaluating
the safety and health program to improve safety and
health in the workplace; and
g) Provide, where necessary, for measures to deal with
emergencies and accidents including rst-aid
arrangements.
OSH standards in the workplace. The worker shall
a) make proper use of all safeguards and safety devices
furnished for the worker's protection and that of
others;
b) observe instructions to prevent accidents or
imminent danger situations in the workplace;
c) observe the prescribed steps to be taken in cases of
emergency; and
Syllabus-based Reviewer for the 2023 Bar
d) report to the supervisor any work hazard that may be
discovered in the workplace.
3) It shall be the duty of any person, including the builder or
contractor who visits, builds, renovates or installs devices or
conducts business in any establishment or workplace, to
comply with the provisions of this Act and all other
regulations issued by the SOLE.
4) Whether two (2) or more undertakings are engaged in
activities simultaneously in one (1) workplace, it shall be the
duty of all engaged to collaborate in the application of OSH
standards and regulations.
(3) Workers’ Right to Know
The right to safety and health at work shall be guaranteed. All
workers shall be appropriately informed by the employer
about all types of hazards in the workplace, provided access to
training and education on chemical safety, and to orientation
on the data sheet of chemical safety, electrical safety,
mechanical safety, and ergonomic safety.
(4) Workers' Right to Refuse Unsafe Work
The worker has the right of refusal to work without threat or
reprisal from the employer if, as determined by the DOLE, an
imminent danger situation exists in the workplace that may
result in illness, injury or death, and corrective actions to
eliminate the danger have not been undertaken by the
employer.
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(5) Workers' Right to Personal Protective Equipment a) De nitions d) 13th month pay; or
(PPE) e) Other monetary bene ts.
Wage paid to an employee shall mean

Every employer, contractor, or subcontractor, if any, shall 1. the remuneration or earnings, however designated, (1) Wage vs. Salary
provide his workers, free of charge, protective equipment for 2. capable of being expressed in terms of money,
Wage Salary
their eyes, face, hands and feet, and lifeline, safety belt or whether xed or ascertained on a
harness, gas or dust respirators or masks, and protective shields Compensation paid for manual Compensation for higher or
a. time,
whenever necessary by reason of the hazardous work process skilled or unskilled labor superior level of employment
or environment, chemical, radiological, mechanical and other b. task,
irritants or hazards capable of causing injury or impairment in Compensation for labor Relates to a position or o ce
c. piece, or
the function of any part of the body through absorption,
d. commission basis, or Shall not be subject to execution, NOT exempt
inhalation or physical contact. The cost of the PPE shall be
attachment or garnishment except
part of the safety and health program which is a separate pay e. other method of calculating the same,
for debts incurred for food, shelter,
item pursuant to Section 20 of this Act.
3. which is payable by an employer to an employee under a clothing and medical attendance.
written or unwritten contract of employment
2 Wages
a. for work done or to be done, or (2) Facilities vs. Supplements

a) De nitions b. for services rendered or to be rendered Facilities Supplements

b) Principles 4. and includes the fair and reasonable value of board,

Necessary expenses of laborer
lodging, or other facilities customarily furnished by the Extra bene t or special privilege
and his family
c) Payment of Wages employer to the employee.
"Fair and reasonable value" shall not include any pro t to the (Purpose Test)
d) Prohibitions Regarding Wages For the bene t of Employee For the bene t of Employer
employer, or to any person a liated with the employer.
e) Wage Distortion Basic Wage. — All the remuneration or earnings paid by an Part of Wage Independent of Wage
employer to a worker for services rendered on normal working days
f ) Minimum Wage Law and hours but does not include: Deductible from wage Not deductible from wage

g) Holiday Pay a) COLA; 1) Facilities. — Requisites for Deductibility:

b) Pro t sharing payments; a) Must be customarily furnished by the employer;
h) 13th Month Pay
c) Premium pay; b) Must be charged at a fair and reasonable value; and

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 Labor Law and Social Legislation
c) Must be voluntarily accepted by the employee in
writing.
2) Meals and lodging provided to employees in order to
maintain their e ciency and health while working at their
respective project sites, are supplements, and not facilities
(SLL International Cable Specialists v. NLRC 2011)
3) Supplements. — Constitute extra remuneration or
special privileges or bene ts given to or received by the
laborers over and above their ordinary earnings or wages.
b) Principles
(1) No Work, No Pay
GR: If the worker does not work, he earns no pay.
EXC: Worker is still entitled to be paid if:
a. Employer unduly prevented him from working despite his
ableness, willingness and readiness;
b. He is legally locked out or illegally suspended or
dismissed;
c. He is illegally prevented from working.
In Odango v. NLRC, SC held that no work no pay also applies to
monthly-paid workers, if absent without pay.
(2) Equal Pay for Equal Work
International School Alliance of Educators v. Quisumbing
Persons who work with substantially equal quali cations, skill,
e ort and responsibility, under similar conditions, should be paid
similar salaries. This rule applies to the School, its "international
eCodal+Pro by RGL
character" notwithstanding.
The School cannot invoke the need to entice foreign-hires to leave
their domicile to rationalize the distinction in salary rates without
violating the principle of equal work for equal pay.
Receiving salaries less than their counterparts hired abroad, the
local-hires of private respondent School, mostly Filipinos, su ered
discrimination. That the local-hires are paid more than their
colleagues in other schools is, of course, beside the point. The point
is that employees should be given equal pay for work of equal value.
(3) Fair Wage for Fair Work
Coca-Cola Bottlers v. ICCPELU 2018
Since the a ected employees are daily-paid employees, they should
be given their wages and corresponding premiums for Saturday
work only if they are permitted to su er work.
The age-old rule governing the relation between labor and capital, or
management and employee, of a "fair day's wage for a fair day's
labor" remains the basic factor in determining employees' wages.
1. If there is no work performed by the employee, there can be
no wage.
2. In cases where the employee's failure to work was
occasioned neither by his abandonment nor by
termination, the burden of economic loss is not rightfully
shifted to the employer; each party must bear his own
loss.
3. In other words, where the employee is willing and able to
work and is not illegally prevented from doing so, no wage
is due to him.
Syllabus-based Reviewer for the 2023 Bar
as reiterated in Ergonomic
G&S Transport v. Infante Systems v. Enaje 2017; VCMC v.
Yballe 2014
With respect to backwages, the principle of a "fair day's wage for
a fair day's labor" remains as the basic factor in determining the
award thereof. If there is no work performed by the employee
there can be no wage or pay unless, of course, the laborer was able,
willing and ready to work but was illegally locked out, suspended or
dismissed or otherwise illegally prevented from working. While it
was found that respondents expressed their intention to report back
to work, the latter exception cannot apply in this case. In Philippine
Marine Officers' Guild v. Compañia Maritima, as a rmed in
Philippine Diamond Hotel and Resort v. Manila Diamond Hotel
Employees Union, the Court stressed that for this exception to apply,
it is required that the strike be legal, a situation that does not
obtain in the case at bar.
Under the circumstances, respondents' reinstatement without
backwages su ces for the appropriate relief.
Bigg's Inc. v. Boncacas 2019
In Escario v. NLRC, the Court held:
Conformably with the long honored principle of a fair day's wage
for a fair day's labor, employees dismissed for joining an illegal strike
are NOT entitled to backwages for the period of the strike even if
they are reinstated by virtue of their being merely members of the
striking union who did not commit any illegal act during the strike.
In Philippine Diamond Hotel & Resort, Inc. v. Manila Diamond
Hotel Employees Union, the Court laid down the exceptions to this
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Labor Law and Social Legislation
rule:
1. when the employees were illegally locked to thus compel
them to stage a strike;
2. when the employer is guilty of the grossest form of ULP;
3. when the employer committed discrimination in the
rehiring of strikers refusing to readmit those against whom
there were pending criminal cases while admitting
non-strikers who were also criminally charged in court; or
4. when the workers who staged a voluntary ULP strike
o ered to return to work unconditionally but the employer
refused to reinstate them.
(4) Non-Diminution of Bene ts
1) Bene ts given to employees cannot be taken back or reduced
unilaterally by the employer because the bene t has become
part of the employment contract.
2) Applicable if the following conditions are met:
a) The grant of the bene t is based on an express policy or
has ripen into practice over a long period of time;
b) Practice is consistent and deliberate;
c) It is not due to error in the construction or application
of a doubtful or di cult question of law or provision in
the CBA;
d) The diminution is done unilaterally by the employer.
3) Company practice is a custom or habit shown by an
employer’s repeated, habitual customary or succession of acts
eCodal+Pro by RGL
of similar kind by reason of which, it gains the status of a
company policy that can no longer be disturbed or withdrawn.
4) The rule on company practice is generally used with respect to
grant of additional bene ts to employees, not to issues
involving diminution of bene ts.
Home Credit Mutual Building v. Prudente 2020
The non-diminution rule applies only if the bene t is based on an
express policy, a written contract, or has ripened into a practice.
Here, Rollette's claim that the car plan was part of her hiring
package was unsubstantiated. Admittedly, Home Credit has no
existing car plan at the time Rollette was hired. Rollette's
employment contract does not even contain any express provision
on her entitlement to a service vehicle at full company cost.
Home Credit's act of giving service vehicles to Rollette has been a
company practice - but not as to the non-participation aspect.
There was no substantial evidence to prove that the car plan
at full company cost had ripened into company practice.
Notably, the only time Rollette was given a service vehicle fully paid
for by the company was for her rst car. For the second vehicle, the
company already imposed a maximum limit but Rollette never
questioned this. She willingly paid for the equity in excess of said
limit. Thus, the elements of consistency and deliberateness are
NOT present.
Philippine National Construction Corp. v. NLRC 2021
PNCC did NOT violate the non-diminution rule when it desisted
from granting mid-year bonus to its employees starting 2013. True,
between 1992 and 2011, PNCC invariably granted this bene t to its
Syllabus-based Reviewer for the 2023 Bar
employees and never before revoked this grant in strict adherence to
the non-diminution rule under Article 100 of the Labor Code.
Nonetheless, with the subsequent enactment of RA 10149 in 2011,
PNCC may no longer grant this bene t without rst securing the
requisite authority from the President. As borne by the records,
PNCC failed to obtain this authority in view of the position taken
by the GCG not to forward the request to the President.
Philippine Journalists Inc. v.
2013
Journal Employees Union
The argument of petitioner that the grant of the funeral and
bereavement bene t was not voluntary but resulted from its
mistaken interpretation as to who was considered a legal dependent
of a regular employee deserves scant consideration. To be sure, NO
doubtful or di cult question of law was involved in as much as
the several cogent statutes existing at the time the CBA was entered
into already de ned who were quali ed as the legal dependents of
another.
It is further worthy to note that petitioner granted claims for funeral
and bereavement aid as early as 1999, then issued a memorandum in
2000 to correct its erroneous interpretation of legal dependent
under the CBA. This notwithstanding, the 2001-2004 CBA still
contained the same provision granting funeral or bereavement aid in
case of the death of a legal dependent of a regular employee without
di erentiating the legal dependents according to the employee’s civil
status as married or single. The continuity in the grant of the funeral
and bereavement aid to regular employees for the death of their legal
dependents has undoubtedly ripened into a company policy.
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Labor Law and Social Legislation Syllabus-based Reviewer for the 2023 Bar

c) Payment of Wages b. Actual or impending emergencies due to calamities;
c. Employer provides free transportation back and forth;
GR: Legal Tender (Art 102, LC; Art 1705 NCC) is that and
currency which has been made suitable by law for the d. Other analogous circumstance, provided
purpose of a tender of payment of debts, i.e. coins and
Time spent collecting wages is considered compensable
notes issued by BSP.
hours worked.
Strictly not allowed — other objects other than legal tender, even
e. Prohibited places: bar, club, drinking establishment,
when expressly requested by EE.
similar places where games are played with stakes of
Exceptions money, except if employee employed in such
a) Bank Check establishment.
b) Money Order Payment thru Banks allowed (RA 6727) provided
g. Employer shall assume responsibility in case the wage
protection provisions of law and regulations are not
complied with under the arrangement.
Payee
GR: Direct to Employee;
EXC:
a. Force majeure, in which case worker may be paid through
another person under written authority for such
purpose; or
b. Worker has died, in which case, paid to heirs without need
of intestate proceedings, only a davit of heirship.

c) Postal Checks, provided a. With written permission of majority of employees;

Time and Frequency
i. It is customary practice on the date of e ectivity; or b. In all private establishments of at least 25 EEs;
GR: At least every 2 weeks or twice a month at intervals not
ii. So stipulated in CBA; and the following are met: c. Located within 1KM radius to a bank; exceeding 16 days.

iii. There is a bank within 1 KM radius; d. Within the period of payment of wages xed by the LC. EXC: Force majeure.

iv. Employer or agents do not receive pecuniary bene ts Payment thru ATM allowed provided: d) Prohibitions Regarding Wages
from such arrangement; a. With written consent of employees concerned;
v. Employee given reasonable time to withdraw and b. Given reasonable time to withdraw during working hours 1) From the Civil Code
shall constitute compensable hours if done within and is considered compensable; a) Art 1705. The laborer's wages shall be paid in legal
working hours; and currency.
c. Within period of payment of wages xed by LC;
vi. With written consent of the employee if without b) Art 1706. Withholding of the wages, except for a debt
d. There is a bank or ATM within 1KM radius;
CBA. due, shall not be made by the employer.
e. Payslip be provided, upon request;
Place and Medium of Payment c) Art 1707. The laborer's wages shall be a lien on the goods
f. No additional expenses and diminution of bene ts
GR: At or near place of undertaking; manufactured or the work done.
resulting from the scheme;
EXC: (Book III Rule VIII Sec 4)
a. Deterioration of peace and order;

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Labor Law and Social Legislation
d) Art 1708. The laborer's wages shall NOT be subject to
execution or attachment, except for debts incurred for
food, shelter, clothing and medical attendance.
e) Art 1709. The employer shall neither seize nor retain any
tool or other articles belonging to the laborer.
2) Other prohibitions
a) Kickbacks — induce a worker to give up any part of his
wages by force, stealth, intimidation, threat;
b) Deduction to ensure employment (Art 117);
c) Retaliate against an employee who has
i) Filed any complaint, or
ii) Instituted proceedings, or
iii) Has testi ed or is about to testify in said proceedings;
by:
1. Refusing to pay the wages; or
2. Reducing such wages; or
3. Discharging him from employment; or
4. Discriminate against him in any manner. (Art
118)
d) False reporting (Art 119)
3) Non-interference in the disposal of wages. — Art 112.
No employer is allowed to limit or otherwise interfere with
how an employee should dispose or make use of the latter’s
wages.
eCodal+Pro by RGL
He shall not in any manner force, compel, or oblige his
employees to purchase merchandise, commodities or any other
property.
Wage Deduction
GR: No employer, in his own behalf or in behalf of any person,
shall make any deduction from the wages of his
employees.
EXC:
a) Facilities;
b) Amount paid by ER as premiums on insurance,
consented to by EE;
c) For union dues, where the right of EE or his union to
checko has been recognized by the ER or authorized in
writing by the EE concerned;
d) Where ER is authorized by law or regulations issued by
SOLE;
e) For loss or damage under Art 114 LC; DOLE LA
11-14, Private Security Agencies:
i) Following must be observed:
1) EE is clearly responsible for the loss or damage;
2) He is given reasonable opportunity to show cause
why deductions should not be made;
3) Deduction is fair and reasonable and should not
exceed the actual loss or damage; and
4) Does not exceed 20% of EE’s wages in a week.
Syllabus-based Reviewer for the 2023 Bar
ii) Cash Deposit — must not exceed one month's basic
salary of EE. May be deducted from wages in an
amount not to exceed 20% of EE’s wages in a week.
iii) Refund — within 10 days from separation from
service.
Jardin v. NLRC
With regard to the amount deducted daily by private respondent
from petitioners for washing of the taxi units, we view the same as
not illegal in the context of the law.
Niña Jewelry Manufacturing of Metal Arts
2011
v. Montecillo
Employers should rst establish that the making of deductions from
the salaries is authorized by law, or regulations. Further, the posting
of cash bonds should be proven as a recognized practice in the
jewelry manufacturing business, or alternatively, the employer
should seek for the determination by the SOLE that the policy the
former seeks to implement is necessary or desirable in the conduct of
business.
f) For Agency Fees from non-union members who accept
the bene ts under the CBA negotiated by the bargaining
union. Does not need authorization from concerned
member;
g) Premiums for SSS, PhilHealth, employee’s compensation
and Pag-IBIG;
h) Withholding tax;
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Labor Law and Social Legislation Syllabus-based Reviewer for the 2023 Bar

i) Where EE is indebted to ER that has become due and e) Wage Distortion

demandable (Art 1706 CC); (1) Concept
j) Pursuant to a court judgment where wages may be the
subject of attachment or execution but only for debts 1) A situation where an increase in prescribed wage rates results
incurred for in the elimination or severe contraction of intentional
quantitative di erences in wage or salary rates between and
i) food,
among employee groups in an establishment as to e ectively
ii) clothing, obliterate the distinctions embodied in such wage structure
iii) shelter and based on skills, length of service, or other logical bases of
di erentiation. (Art 124 LC)
iv) medical attendance;
2) Elements
k) Ordered by the court.
a) An existing hierarchy of positions with corresponding
l) Under the PH Cooperative Act of 2008. RA 9520 - A
salary rates;
member of a cooperative may execute an instrument in
favor of the cooperative authorizing his employer to b) A signi cant change in the salary rate of a lower pay class
deduct from his wages and remit such to the cooperative w/o concomitant increase in the salary rate of a higher 5) In Bankard Employees Union v. NLRC, the unilateral
to satisfy any incurred debt or other demands. one; adoption by an employer of an upgraded salary scale that
increased the hiring rates of new employees without increasing
m) DO No. 195, S. 2018, amending Sec. 10, Rule VIII, c) Elimination of the distinction between the two levels;
the salary rates of old employees DOES NOT RESULT in
Book III, IRR. d) Existence of the distortion in the same region. wage distortion within the contemplation of Article 124 of
⭐SECTION 10. Wages deduction. — Deductions from the Labor Code, as the increase in the wages and salaries
3) Possible causes
the wages of the employees may be made by the employer in of the newly-hired was not due to a prescribed law or
any of the following cases: a) Government decreed increase through WOs; wage order.
(b) When the deductions are with the written authorization of b) Merger of establishments;
the employees for payment to the EMPLOYER or a third Prubankers Association v. Prudential Bank
c) Increase granted by employers;
person and the employer agrees to do so; Provided, That Wage distortion presupposes an increase in the compensation of the
d) Passage of RA 6727.
the latter does not receive any pecuniary bene t, directly lower ranks in an o ce hierarchy without a corresponding raise for
or indirectly, from the transaction. 4) Wage Distortion Resolution higher-tiered employees in the same region of the country, resulting
in the elimination or the severe diminution of the distinction
between the two groups.

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Labor Law and Social Legislation Syllabus-based Reviewer for the 2023 Bar

1. For Monthly paid: (365) In order to be exempted under the Wage Rationalization Act, two
Such distortion does not arise when a wage order gives employees in
elements must concur —
one branch of a bank higher compensation than that given to their 𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 365
𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠
counterparts in other regions occupying the same pay scale, who are first, it must be shown that the establishment is regularly
not covered by said wage order. In short, the implementation of 2. For Daily paid: employing not more than ten (10) workers, and
wage orders in one region but not in others does not in itself
i) Required to work everyday (393.5) second, that the establishment had applied for and was
necessarily result in wage distortion.
granted exemption by the appropriate Regional Board..
𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 393.5
𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠 WON petitioner is exempt from the Minimum Wage Law.
f ) Minimum Wage Law
ii) Do not work and not considered paid on NO. As the petitioner failed to apply for an exemption, and it is
The minimum wage rates prescribed by law shall be the basic Sundays or rest days (313) undisputed that the respondents are MPRB's employees and are
cash wages without deduction therefrom of whatever bene ts, 𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 313 paid less than the prescribed minimum wage, the petitioner's
supplements or allowances which the employees enjoy free of
𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠 liability for wage di erential cannot be denied.
charge aside from the basic pay. Petitioner is employing more than ten (10) employees in his
iii) Do not work and not considered paid on
Regional Minimum Wage Rates. — The lowest basic wage weekends or rest days (261) establishment. To be sure, employment status is determined by the
rates that an employer can pay his workers, as xed by the four-fold test, and the attendant circumstances of each case.
𝐴𝑝𝑝𝑙𝑖𝑐𝑎𝑏𝑙𝑒 𝐷𝑎𝑖𝑙𝑦 𝑅𝑎𝑡𝑒 (𝐴𝐷𝑅) 𝑥 261
Regional Tripartite Wages and Productivity Boards 𝐸𝐸𝑀𝑅 = 12 𝑚𝑜𝑛𝑡ℎ𝑠
(RTWPB) and which shall not be lower than the applicable g) Holiday Pay
2) Payment by results. — All workers paid by result,
statutory minimum wage rates.
including those who are paid on piecework, takay, pakyaw or
a) Includes COLA as xed by RTWPB. task basis, shall receive not less than the prescribed wage rates Holiday pay. — refers to the payment of the regular daily wage for any
per eight (8) hours of work a day, or a proportion thereof for unworked regular holiday.
b) Excludes other wage-related bene ts.
working less than eight (8) hours. 1) E ect of absences:
1) Payment by hours worked. — Once an agreed period of
work is completed, compensation is earned regardless of result. Other Wage Rates a) On leave with pay — entitled;

a) Daily-paid employees are paid on the days actually
worked except unworked regular holidays when they are
paid their basic wage if they are present or a leave with pay
on the working day preceding the regular holiday.
b) Monthly-paid employees are paid every day of the
month, including unworked days.
Estimated Equivalent Monthly Rate (EEMR)
a. Of apprentices or learners shall be 75% of the statutory b) On leave without pay on the day immediately preceding
minimum wage. — not entitled, unless worked on regular holiday;
b. Of PWDs, 100% of the applicable minimum wage. c) On leave while on SSS or EC bene ts — entitled.
d) If day preceding holiday is nonworking day — entitled if
Pablico et al. v. Cerro 2019
worked the day immediately preceding the nonworking
day.

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2) E ect of business closure
a) In case of temporary shutdown — entitled;
b) If cessation due to business reverses as authorized by
SOLE — not entitled.
3) Holiday pay of certain employees
a) Private school teachers: during semestral vacations —
not entitled; Christmas breaks — entitled.
b) Paid by results or output = entitled to not less than
the average of daily earnings of last 7 days actually
worked preceding the holiday, provided it is not less than
the statutory minimum wage.
c) Seasonal workers: during o -season — not entitled.
d) Workers with no regular working days — entitled.
4) Successive Holiday Rule. — Not entitled for both
holiday pay if absent on the day preceding the rst holiday,
unless working on the rst holiday, in which case, he is
entitled holiday pay for the 2nd.
5) Double Holiday Rule
a) If unworked = 200%;
b) If worked = 300%;
c) If falls on a rest day = 390%
6) Flexi-holiday Schedule — employee agrees to avail of
holidays at some other days provided there is no diminution
of existing bene ts resulting therefrom.
7) Supervised workers paid by results are entitled to holiday
pay.
eCodal+Pro by RGL
Asian Transmission Corp v. CA
Holiday pay is a legislated bene t enacted as part of the
Constitutional imperative that the State shall a ord protection to
labor. Its purpose is not merely "to prevent diminution of the
monthly income of the workers on account of work interruptions.
In other words, although the worker is forced to take a rest, he earns
what he should earn, that is, his holiday pay." It is also intended to
enable the worker to participate in the national celebrations held
during the days identi ed as with great historical and cultural
signi cance.
Since a worker is entitled to the enjoyment of ten paid regular
holidays, the fact that two holidays fall on the same date
should not operate to reduce to nine the ten holiday pay
bene ts a worker is entitled to receive.
h) 13th Month Pay
1) Resigned or separated employees to be paid pro rata;
2) Non-payment shall be treated as money claims.
3) Employees paid a xed or guaranteed wage plus
commission are entitled based on their total earnings for the
calendar year.
4) Basic salary means not the amount actually received by an
employee, but 1/12 of their standard monthly wage
multiplied by their length of service within a given calendar
year.
R&E Transport v. Latag
Syllabus-based Reviewer for the 2023 Bar
Since Pedro was paid according to the "boundary" system, he is not
entitled to the 13th month and the service incentive pay; hence, his
retirement pay should be computed on the sole basis of his salary.
Reyes v. NLRC
ON COMMISSIONS. The Court thus clari ed that in
Philippine Duplicators, the salesmen’s commissions, comprising a
predetermined percentage of the selling price of the goods sold by
each salesman, were properly included in the term basic salary
for purposes of computing the 13th month pay.
Sales commissions which are e ectively an integral portion of
the basic salary structure of an employee, shall be included in
determining the retirement pay. In ne, the commissions which
petitioner received were not part of his salary structure but were
pro t-sharing payments and had no clear, direct or necessary
relation to the amount of work he actually performed. The
collection made by the salesmen from the sale transactions was the
pro t of private respondent from which petitioner had a share in
the form of a commission.
Letran Calamba Faculty & Employees Association v. NLRC
ON OVERLOAD PAY. Overload pay should be excluded from
the computation of the 13th-month pay.
In the same manner that payment for overtime work and work
performed during special holidays is considered as additional
compensation apart and distinct from an employee's regular wage or
basic salary, an overload pay, owing to its very nature and de nition,
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may not be considered as part of a teacher's regular or basic salary, Tan v. Lagrama
because it is being paid for additional work performed in excess of
If a piece worker is supervised, there is an employer-employee
the regular teaching load.
relationship. However, such an employee is not entitled to service
Verily, overload pay may not be included as basis for incentive leave pay since, as pointed out in Makati Haberdashery
determining a teacher's 13th-month pay. v. NLRC and Mark Roche International v. NLRC, he is paid a xed
amount for work done, regardless of the time he spent in
accomplishing such work.
3 Leaves
b) Maternity Leave
a) Service Incentive Leave
105-Day Expanded Maternity Leave Law
b) Maternity Leave
c) Paternity Leave 1) Increased maternity leave with full pay;
a) 105 days for natural or cesarean delivery;
d) Solo Parent Leave
b) 60 days for miscarriage or emergency termination of
e) Leave Bene ts for Women Workers pregnancy.
2) Option to extend maternity leave for additional thirty (30)
f ) Compassionate Leaves
days without pay;
Notify ER at least 45 days before end of maternity leave to
a) Service Incentive Leave
avail of extension.
3) Additional fteen (15) days with full pay for solo parents;
Every employee who has rendered at least one (1) year of service is
entitled to Service Incentive Leave (SIL) of ve (5) days with 4) Combinations of prenatal and postnatal leave;
pay.
Compulsory postnatal at least 60 days.
The phrase “one year of service” of the employee means service 5) Maternity leave regardless of frequency;
within twelve (12) months, whether continuous or broken,
reckoned from the date the employee started working. The period 6) Allocation of maternity leave credits;
includes authorized absences, unworked weekly rest days, and paid a) allocate up to seven (7) days of said bene ts to the child's
regular holidays. father, whether or not the same is married to the female
worker.
eCodal+Pro by RGL
Syllabus-based Reviewer for the 2023 Bar
b) alternate caregiver who may be a relative within the
fourth degree of consanguinity or the current partner of
the female worker sharing the same household.
c) In the event the bene ciary female worker dies or is
permanently incapacitated, the balance of her maternity
leave bene ts shall accrue to the father of the child or to a
quali ed caregiver.
7) Maternity leave after termination of service;
a) occurs not more than fteen (15) calendar days after
the termination of an employee's service, as her right
thereto has already accrued.
b) such period is not applicable when the employment of the
pregnant woman worker has been terminated without
just cause.
8) Voluntary working arrangement during the maternity leave
period.
c) Paternity Leave
Paternity Leave Act of 1996
1. Granted to all married male employees in the private sector,
regardless of their employment status.
2. Government employees are also entitled to the paternity leave
bene t.
3. Entitled to full pay, consisting of basic salary, for the 7 days of
paternity leave, for up to the rst four (4) deliveries.
a. A married male employee;
b. Cohabiting with spouse;
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Labor Law and Social Legislation
c. Has applied for PL;
d. Legitimate spouse gave birth or had a miscarriage.
e) Leave Bene ts for Women Workers
4. In the event that the paternity leave is not availed of, it shall
not be convertible to cash and shall not be cumulative.
d) Solo Parent Leave
1) Gynecological leave. — Any female employee in the public
Expanded Solo Parents Welfare Act
1) In addition to leave privileges under existing laws, a forfeitable
and noncumulative parental leave of not more than seven (7)
working days with pay every year shall be to working granted
to any solo parent employee, regardless of employment status,
who has rendered service of at least six (6) months:
2) The parental leave bene t may be availed of by the solo parent
employees in the government and the private sector.
3) The seven-day parental leave shall be non-cumulative.
4) In the event that the parental leave is not availed of, said leave
shall not be convertible to cash unless speci cally agreed
upon previously.
2) Battered woman leave. — The quali ed victim-employee
5) A solo parent shall be entitled to parental leave provided that:
a) He/She has rendered at least 6 months of service
whether continuous or broken at the time of the
e ectivity of the Act;
b) He/She has noti ed his/her employer of the
availment thereof within a reasonable time period;
and
eCodal+Pro by RGL
Syllabus-based Reviewer for the 2023 Bar
c) He/She has presented a Solo Parent Identi cation
d) the Clerk of Court, as the case may be,
Card to his/her employer.
that an action relative to the matter is pending.
f ) Compassionate Leaves
R.A. No. 9710 and R.A. No. 9262
Or Bereavement leaves are currently NOT statutorily mandated
bene ts.
and private sector regardless of age and civil status shall be
entitled to a special leave of two (2) months with full pay 4 Special Groups of Employees
based on her gross monthly compensation subject to existing
laws, rules and regulations due to surgery caused by a) Women
gynecological disorders under such terms and conditions:
a) She has rendered at least six (6) months continuous b) Minors
aggregate employment service for the last twelve (12)
c) Kasambahays
months prior to surgery;
d) Homeworkers
b) In the event that an extended leave is necessary, the female
employee may use her earned leave credits; and
e) Night Workers
c) This special leave shall be non-cumulative and non-
convertible to cash. f ) Apprentices and Learners
g) Persons With Disabilities
shall be entitled to a leave of up to ten (10) days with full pay,
consisting of basic salary and mandatory allowances xed by
RTWPB.
a) Women
Requirement. — To be entitled to the leave bene t, the only (1) Discrimination
requirement is for the victim-employee to present to her
employer a certi cation from the The following are acts of discrimination:
a) barangay chairman or 1) Payment of a lesser compensation to a female employee as
against a male employee, for work of equal value; and
b) barangay councilor or
c) prosecutor or
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Labor Law and Social Legislation
2) Favoring a male employee over a female employee with respect
to promotion, training opportunities, study and scholarship
grants solely on account of their sexes.
(2) Stipulation Against Marriage
It shall be unlawful for an employer
1) to require as a condition of employment or continuation of
employment that a woman employee shall not get married, or
2) to stipulate expressly or tacitly that upon getting married, a
woman employee shall be deemed resigned or separated, or
3) to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage.
Cadiz v. Brent Hospital and Colleges 2016
Brent imposed on Cadiz the condition that she subsequently
contract marriage with her then boyfriend for her to be reinstated.
According to Brent, this is "in consonance with the policy against
encouraging illicit or common-law relations that would subvert the
sacrament of marriage."
The Magna Carta of Women protects women against
discrimination in all matters relating to marriage and family
relations, including the right to choose freely a spouse and to
enter into marriage only with their free and full consent.
Brent's condition is coercive, oppressive and discriminatory. There is
no rhyme or reason for it. It forces Cadiz to marry for economic
reasons and deprives her of the freedom to choose her status, which
is a privilege that inheres in her as an intangible and inalienable
right. While a marriage or no-marriage quali cation may be justi ed
eCodal+Pro by RGL
as a "bona fide occupational qualification," Brent must prove
two factors necessitating its imposition, viz:
1) that the employment quali cation is reasonably related to
the essential operation of the job involved; and
2) that there is a factual basis for believing that all or
substantially all persons meeting the quali cation would be
unable to properly perform the duties of the job.
Brent has not shown the presence of neither of these factors.
PT&T v. NLRC
Petitioner’s policy of not accepting or considering as disquali ed
from work any woman worker who contracts marriage runs afoul of
the test of, and the right against, discrimination, a orded all women
workers by our labor laws and by no less than the Constitution.
Contrary to petitioner’s assertion that it dismissed private
respondent from employment on account of her dishonesty, the
record discloses clearly that her ties with the company were dissolved
principally because of the company’s policy that married women are
not quali ed for employment in PT&T, and not merely because of
her supposed acts of dishonesty.
Private respondent was practically forced by that very same illegal
company policy into misrepresenting her civil status for fear of
being disquali ed from work.
(3) Prohibited Acts
It shall be unlawful for any employer:
Syllabus-based Reviewer for the 2023 Bar
1) To deny any woman employee the bene ts provided for in this
Chapter or to discharge any woman employed by him for the
purpose of preventing her from enjoying any of the bene ts;
2) To discharge such woman on account of her pregnancy, or
while on leave or in con nement due to her pregnancy;
3) To discharge or refuse the admission of such woman upon
returning to her work for fear that she may again be pregnant.
b) Minors
See RA No. 9231, amending RA 7610;
DO No. 65-04, S. 2004 on Worst Forms of Child Labor; and
DOLE Dept. Circular No. 2, S. 2017 on Guidelines on the
Issuance of Work Permit for Children Below 5 Years Old
Engaged in Public Entertainment or Information
1) Child labor refers to any work or economic activity
performed by a child that subjects him/her to any form of
exploitation or is harmful to his/her health and safety or
physical, mental or psychosocial development.
2) Working child refers to any child engaged as follows:
a) when the child is below eighteen (18) years of age, in
work or economic activity that is not child labor; and
b) when the child is below fteen (15) years of age,
i) in work where he/she is directly under the
responsibility of his/her parents or legal guardian and
where only members of the child ‘s family are
employed; or
ii) in public entertainment or information.
3) 15 and above, but below 18 years of age
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GR: May be employed ★ Hours of Work. up to 8H/D, 40H/W; 6am to 10pm ★ Hours of Work. up to 4H/D, 20H/W; 6am to 8pm only.
only.
EXC: In an undertaking which is deleterious or hazardous 5) Prohibition on the Employment of Children in Worst
in nature. 4) Below 15 years of age Forms of Child Labor. — No child shall be engaged in the
★ DOLE DO 149-16. Based on Two Classi cations: GR: Shall not be employed worst forms of child labor. The phrase “worst forms of child
labor” shall refer to any of the following:
a) Industrial Classi cation EXC: When a child works
a) All forms of slavery, as de ned under the “Anti-tra cking
i. Mining and Quarrying; a. Directly under the sole responsibility of his parents/
in Persons Act of 2003”, or practices similar to slavery
legal guardian and where only members of his family
ii. Construction; such as sale and tra cking of children, debt bondage and
are employed.
iii. Transportation and Storage; serfdom and forced or compulsory labor, including
Provided his employment neither endangers his life, recruitment of children for use in armed con ict.
iv. Water Supply, Sewerage, Waste management and safety, health, and morals nor impairs his normal
remediation activities; b) The use, procuring, o ering or exposing of a child for
development.
prostitution, for the production of pornography or for
v. Forestry and Logging; Provided further that said child is provided with the pornographic performances;
vi. Fishing and Agriculture; prescribed education;
c) The use, procuring or o ering of a child for illegal or illicit
vii. Hunting, Trapping; b. Or participates in public entertainment or activities, including the production or tra cking of
information dangerous drugs or volatile substances prohibited under
viii. Security and Investigation;
Provided that the employment contract is concluded existing laws; or
ix. Manufacturing
by child’s parent with express agreement of said child d) Work which, by its nature or the circumstances in which
b) Occupational Classi cation it is carried out, is hazardous or likely to be harmful to the
Provided further that the following are met:
i. Farmers health, safety or morals of children, xxxx.
i) Protection, health, safety, morals and normal
ii. Animal Producers; development of child is ensured; 6) Prohibition on the Employment of Children in Certain
Advertisements. — No child shall be employed as a model in
iii. Physical, Life Sciences and Health Associate ii) Measures are instituted to prevent child’s any advertisement directly or indirectly promoting alcoholic
Professionals; exploitation or discrimination; and beverages, intoxicating drinks, tobacco and its byproducts,
iv. Sales and Services Elementary Occupations; iii) A continuing program for training and skills gambling or any form of violence or pornography.
v. Personal and Protective Services Workers; acquisition of the child is formulated and
implemented.
c) Kasambahays
vi. Customer Services Clerks;
A work permit shall be secured from DOLE in both Batas Kasambahay
vii. Other Craft and Related Trade Workers. instances.

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Labor Law and Social Legislation
1) Coverage. — Apply to all parties to an employment contract
for the services of the following Kasambahay, whether on a
live-in or live-out arrangement, such as but not limited to:
a) General househelp;
b) Yaya;
c) Cook;
d) Gardener;
e) Laundry person; or
f) Any person who regularly performs domestic work in
one household on an occupational basis.
2) The following are not covered:
a) Service providers;
b) Family drivers;
c) Children under foster family arrangement; and
d) Any other person who performs work occasionally or
sporadically and not on an occupational basis.
3) Employment contract and renewal. — Before the
commencement of the service, a written employment
contract between the Kasambahay and the employer shall be
accomplished in three (3) copies. The contract shall be in a
language or dialect understood by both the Kasambahay and
the employer.
4) Renewal of Contract. — Should the parties mutually agree
to continue their employment relationship upon expiration of
the contract, they shall execute a new contract to be registered
with the concerned barangay. However, if the parties fail to
execute a new contract, the terms and conditions of the
eCodal+Pro by RGL
original contract and other improvements granted during the
e ectivity of said contract are deemed renewed.
5) The rights and privileges of the Kasambahay are as follows:
a) Minimum wage;
b) Other mandatory bene ts, such as the daily and
weekly rest periods, service incentive leave, and 13th
month pay;
c) Coverage under the SSS, PhilHealth and Pag-IBIG
laws;
d) Board, lodging and medical attendance;
e) Right to privacy;
f) Access to outside communication;
g) Access to education and training;
h) Right to form, join, or assist labor organization;
i) Right to be provided a copy of the employment
contract;
j) Right to certi cate of employment; and
k) Right to exercise their own religious beliefs and
cultural practices.
Atienza v. Saluta 2019
WON the Labor Code governs the rights of family drivers.
NO. The Civil Code shall govern the rights of family drivers.
d) Homeworkers
DOLE DO No. 5 s. 1992
Syllabus-based Reviewer for the 2023 Bar
1) “Industrial Homework” is a system of production under
which work for an employer or contractor is carried out by a
homework at his/her home. Materials may or may not be
furnished by the employer or contractor. It di ers from
regular factory production principally in that, it is a
decentralized form of production where there is ordinarily
very little supervision or regulation of methods of work.
2) Exemption from minimum Wage if engaged in
needlework. The title on Wages shall not apply to farm
tenancy or leasehold, domestic service and persons working in
their respective homes in needle work or in any cottage
industry duly registered.
3) No homework shall be performed on the following:
a) explosives, reworks and articles of like character;
b) drugs and poisons; and
c) other articles, the processing of which requires exposure
to toxic substances.
e) Night Workers
DOLE DO No. 119-12 s. 2012
1) Coverage and Exclusion. — Shall apply to all persons, who
shall be employed or permitted or su ered to work at night,
except those employed in agriculture, stock raising, fishing,
maritime transport and inland navigation, during a period of
not less than seven (7) consecutive hours, including the
interval from midnight to ve o'clock in the morning.
2) Right to Health Assessment. — At their request, workers
shall have the right to undergo a health assessment without
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charge and to receive advice on how to reduce or avoid health

5) Women Night Workers. — Measures shall be taken to iv) Possess the ability to comprehend and follow oral and
problems associated with their work.
ensure that an alternative to night work is available to women written instructions.
3) Right to Mandatory Facilities. — Mandatory facilities workers who would otherwise be called upon to perform such
d) Compulsory apprenticeship
shall be made available for workers performing night work work.
which include the following: i) When grave national emergencies, particularly those
6) Criminal liability of Employer. — Any violation of this
involving the security of the state, arise or particular
a) Suitable rst-aid and emergency facilities; Rule shall be punishable with a ne of 30K - 50K or
requirements of economic development so demand.
imprisonment of not less than six (6) months or both, at the
b) Lactation station in required companies;
discretion of the court. ii) Where services of foreign technicians are utilized by
c) Separate toilet facilities for men and women; private companies in apprenticeable trades.
f ) Apprentices and Learners
d) Facility for eating with potable drinking water; and e) Qualified Employers. — Only employers in highly
technical industries may employ apprentices and only in
e) Facilities for transportation and/or properly ventilated
a) Apprenticeship means any training on the job supplemented apprenticeable occupations approved by the SOLE.
temporary sleeping or resting quarters, except where any
by related theoretical instructions involving apprenticeable
of the following circumstances is present: f) Deductibility of Training Costs. — An additional
occupations and trades.
deduction from taxable income of one-half (1/2) of the
i) Where there is an existing agreement between
b) Coverage. — value of labor training expenses incurred for developing the
management and workers providing for an equivalent
i) Any enterprise duly registered with TESDA with 10 productivity and e ciency of apprentices. Provided
or superior bene t; or
or more regular workers. The number of i) such program is duly recognized by the DOLE;
ii) Where the start or end of the night work does not fall
apprentices shall not be more than 20% of its total
within 12 midnight to 5 o'clock in the morning; or ii) such deduction shall not exceed ten (10%) percent
regular workforce.
of direct labor wage: and
iii) Where the workplace is located in an area that is
ii) Any unemployed person 15 years old and above may
accessible twenty four (24) hours to public iii) apprentices are paid the minimum wage.
apply.
transportation;
g) Apprentices without Compensation. — The SOLE may
c) Qualifications. — To qualify as apprentice, an applicant
iv) Where the number of employees does not exceed a authorize the hiring of apprentices without compensation
shall:
speci ed number as may be provided for by the whose training on the job is
SOLE. i) Be at least fteen years of age;
i) required by the school or training program
4) Right to Transfer. — Night workers who are certi ed by provided those who are at least fteen years of age but curriculum or
competent physician, as un t to render night work, due to less than eighteen may be eligible for apprenticeship
ii) as requisite for graduation or board examination.
health reasons, shall be transferred to a job for which they are only in non-hazardous occupations;
t to work whenever practicable. h) Apprenticeship period. — The period of apprenticeship
ii) Be physically t;
shall not exceed six (6) months.
iii) Possess vocational aptitude and capacity; and

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employment and the same compensation, privileges, bene ts,

i) Wages. — The wage rate of the apprentice shall start at 75% consisting of employment or
fringe bene ts, incentives or allowances as a quali ed able-bodied
of the statutory minimum wage for the rst six (6) months; semi-skilled and other occupation approved for
person.
thereafter, he shall be paid the full minimum wage, including industrial occupations apprenticeship by SOLE
the full cost of living allowance. (1) Discrimination
Theoretical
j) Hours of work. — An apprentice not otherwise barred by Not required Required
instruction
law from working eight hours a day may be requested by his (a) Magna Carta for Disabled Persons (RA 7277)
employer to work overtime and paid accordingly, provided Competency-
✔ ✘ No entity, whether public or private, shall
i) there are no available regular workers to do the job, based system
discriminate against a quali ed disabled person by
and reason of disability in regard to job application
Duration Not exceeding 3 months 3-6 months
ii) the overtime work thus rendered is duly credited procedures, the hiring, promotion, or discharge of
toward his training time. 20% of total regular employees, employee compensation, job training, and
Limitation NONE
workforce other terms, conditions, and privileges of
k) Learners are persons hired as trainees in semi-skilled and employment.
other industrial occupations which are non-apprenticeable Option to ER Obliged to hire
Optional
and which may be learned through practical training on the employ learner (b) Mental Health Act (RA 11036)
job in a relatively short period of time which shall not exceed Discrimination refers to any distinction, exclusion or
Dispute DOLE Regional
three (3) months. Labor Arbiter restriction which has the purpose or e ect of
Resolution Director
l) Learners may be employed nullifying the recognition, enjoyment or exercise, on
an equal basis with others, of all human rights and
i) when no experienced workers are available, g) Persons With Disabilities
fundamental freedoms in the political, economic,
ii) the employment of learners is necessary to prevent The Magna Carta for Disabled Persons, as amended social cultural, civil or any other eld. It includes all
curtailment of employment opportunities, and forms of discrimination, including denial of
iii) the employment does not create unfair competition Handicapped workers may be employed reasonable accommodation. Special measure solely to
in terms of labor costs or impair or lower working protect the rights or secure the advancement of
1) when their employment is necessary to prevent curtailment
standards. persons with decision-making impairment capacity
of employment opportunities and
shall not be deemed to be discriminatory.
m) The wages or salary rates of the learners which shall begin at 2) when it does not create unfair competition in labor costs or
not less than 75% of the applicable MW. impair or lower working standards. (2) Incentives for Employers
Learner Apprentice Equal opportunity. — No disabled persons shall be denied access
1) Private entities that employ disabled persons who meet the
to opportunities for suitable employment. A quali ed disabled
Occupation Learnable occupations Any trade, form of required skills or quali cations, either as regular employee,
employee shall be subject to the same terms and conditions of

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apprentice or learner, shall be entitled to an additional Bene t How to avail Exception Notes
3) The above acts would result in an intimidating, hostile, or
deduction, from their gross income, equivalent to
o ensive environment for the employee.
twenty- ve percent (25%) of the total amount paid as ■ 125% of BHR Overtime Employees OT Pay refers to
on Work - Work not covered additional
salaries and wages to disabled persons. b) Safe Spaces Act
ORDINARY rendered after under Art compensation for
2) Private entities that improve or modify their physical facilities days; the normal 8 82 work performed
in order to provide reasonable accommodation for disabled The crime of gender-based sexual harassment in the ■ 130% of BHR hours of work. beyond the 8
persons shall also be entitled to an additional deduction from workplace includes the following: on Rest Days, normal hours of
their net taxable income, equivalent to fty percent Special and work on any
1) An act or series of acts involving
Regular given day.
(50%) of the direct costs of the improvements or
a) any unwelcome sexual advances, requests or demand Holidays
modi cations.
for sexual favors or
Premium Pay
5 Sexual Harassment in the Work Environment b) any act of sexual nature, whether done verbally, physically
or through the use of technology, ■ 130% of regular Working on a Art 82 + Premium pay
pay for work special holiday those of refers to
a) Sexual Harassment Act that has or could have a detrimental e ect on the conditions of done during or a scheduled retail and additional
an individual's employment or education, job performance or special holiday rest day. service with compensation
Sexual harassment is committed when: opportunities; or rest day; less than required by law
■ 150% of regular 10 EEs for work
1) The sexual favor is made as a condition 2) A conduct of sexual nature and other conduct-based on sex
pay for work performed within
a ecting the dignity of a person, which is unwelcome,
a) in the hiring or in the employment, re-employment or done on a rest the 8 normal
unreasonable, and o ensive to the recipient, whether done day falling on a hours of work
continued employment of said individual, or
verbally, physically or through the use of technology; holiday. on non-working
b) in granting said individual favorable compensation, terms days.
3) A conduct that is unwelcome and pervasive and creates an
of conditions, promotions, or privileges; or
intimidating, hostile or humiliating environment for the
Service Incentive Leave
the refusal to grant the sexual favor results recipient.
c) in limiting, segregating or classifying the employee which ■ Five days leave Rendered at Art 82 + Commutable to
This may also be committed between peers and those committed
with pay least 1 year already cash if not used.
in any way would discriminate, deprive or diminish to a superior o cer by a subordinate, or to a teacher by a student,
service; enjoying
employment opportunities or otherwise adversely a ect or to a trainer by a trainee. bene t; VL
said employee; Part time with pay of
Summary of Minimum Labor Standards Bene ts
2) The above acts would impair the employee's rights or workers may at least 5
Bene t How to avail Exception Notes bene t. days; less
privileges under existing labor laws; or
than 10
Overtime Pay

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Bene t How to avail Exception Notes Summary of Special Bene ts Bene ciaries, Exemptions
Provision How to avail
and Exclusions
EEs Bene ciaries, Exemptions
Provision How to avail
and Exclusions maternity leave with availed of either as a solo parent the worker
Holiday Pay
full pay and an before or after the shall be granted an
13th month pay [PD 851 as amended]
option to extend for actual period of additional fteen (15) days
■ 100% of regular May be availed Art 82 + Jan 1, Maundy
an additional thirty delivery in a maternity leave with full
pay even if of regardless of those of Thursday, Good Equivalent to 1/12 Worked for at least 1 1. Rank-and- le
(30) days without continuous and pay.
unworked; whether worked retail and Friday, Eidul Fitr, of the total basic month during a employees;
pay uninterrupted
■ 200% if worked or unworked. service with Eidul Adha, Apr salary earned calendar year 2. Domestic helpers;
manner, not Adoptive parents, if the
less than 9, May 1, Jun 12, within a calendar 3. Piece-rate employees;
exceeding one adoptee is below 7 years
10 EEs National Heroes year, to be paid not 4. Government;
hundred ve (105) old as of date he is placed in
Day, Nov 1, Nov later than Dec 24. 5. Already paying 13th
days Pre-Adoptive Placement
30, Dec 25, Dec month pay or its
Authority
30, Dec 31, equivalent;
Election Day 6. In the personal service
Retirement Pay
of another;
Night- shift Di erential 7. Commission- based, One-half month Generally 1. All employees in private
boundary or task basis, salary for every year 1. Optional Age: 60; sector;
■ 110% of BHR Employees Art 82 + Not waivable,
paid by result. of service that Compulsory: 65 2. Part-timers;
working those of founded on
includes: 2. 5 year minimum 3. Employees of service and
between 10 PM retail and public policy Paternity Leave [RA 8187. Paternity Leave Act of 1996 and its IRR]
1. 15 days latest service; other job contractors;
- 6 AM of the service of
salary rate; and if 3. Eligible for 4. Kasambahays or persons
next day NOT more Entitled to full pay, 1. An employee; Married male employee,
entitled to retirement; in the personal service of
than 5 EEs. consisting of basic 2. Cohabiting with provided he is, during
2. Cash equivalent another;
salary, for the 7 days spouse; delivery or miscarriage:
Service Charges of service Surface Mine 5. Underground mine
of paternity leave, 3. Has applied for
incentive leave = Workers workers;
for up to the rst PL;
■ 100% Employees Art 82 Service charges are
four (4) deliveries. 4. Legitimate spouse
5 days; Optional: 50; 6. Employees in GOCCs
rank-and- le working in not in the nature 3. 1/12 of the 13th Compulsory: 60. organized under Corp
gave birth or had a
establishments of pro t share month pay = 2.5 Code.
miscarriage.
collecting and, therefore, days; Racehorse Jockeys 7. National Gov, LGCs,
service charges, cannot be Maternity Leave [RA 11210. 105-Day Expanded Maternity Leave Law Compulsory: 55. GOCCs under Civil
i.e. hotels, clubs, deducted from and its IRR] 1/2MS = Service Law;
bars, casinos, wage. 15+5+2.5 = 22.5 8. Retail, service, agri
restaurants one hundred ve Cannot be deferred Female employee; establishments regularly
days
(105) days but should be in case the worker quali es employ not more than

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stated in Sec 9-A which provides that self-employed includes,

Provision How to avail
Bene ciaries, Exemptions C Social Welfare Legislation but not limited to, the following:
and Exclusions

SSS Law a) All self-employed professionals;

10.
9. Dismissed from work due b) Partners and single proprietors of businesses;
a) Coverage
to just cause.
c) Actors and actresses, directors, scriptwriters and news
Parental Leave [RA 8972. Solo Parent Welfare Act and its IRR] b) Dependents and Bene ciaries correspondents who do not fall within the de nition of
the term “employee” in Sec 8 (d) of this Act;
Parental leave of not 1. Has rendered Solo parent, or other person c) Bene ts
more than 7 days service for at least who solely provides parental d) Professional athletes, coaches, trainers and jockeys; and
every year. 1 year; care and support to a child GSIS Law e) Individual farmers and shermen.
2. Noti ed or children.
Flexible work employer; a) Coverage 2) OFWs, sea-based or land-based, are compulsory members as
schedule; 3. Presented a Solo provided for under Sec 9-B.
Parent ID. b) Dependents and Bene ciaries
Protection from b) Dependents and Bene ciaries
work c) Bene ts
discrimination. 1) The dependents shall be the following:
Disability and Death Bene ts
Battered Woman’s Leave a) The legal spouse entitled by law to receive support from
a) Labor Code the member;
10 days of paid Certi cation from Victims of abuse under
leave, which is Punong brgy, VAWC b) POEA-Standard Employment Contract b) The legitimate, legitimated or legally adopted, and
extendible. Prosecutor or Clerk illegitimate child who is unmarried, not gainfully
of Court. employed, and has not reached twenty-one (21) years of
SSS Law
1 age, or if over twenty-one (21) years of age, he is
Gynecological Leave [RA 9710. Magna Carta of Women]
RA 8282, as amended by RA 11199 congenitally or while still a minor has been permanently
Special leave of 2 Continuous Female employee incapacitated and incapable of self-support, physically or
months with full aggregate service of undergoing gynecological a) Coverage mentally; and
pay based on gross at least 6 months surgery. c) The parent who is receiving regular support from the
monthly for the last 12 1) The SS Law mandates that all employees including member.
compensation. months.
kasambahays or domestic workers not over sixty (60) years of
2) Primary Beneficiaries
age shall be members of the SSS (Sec 9). The law also
mandates compulsory coverage of the Self-Employed as a) The dependent spouse until he or she remarries;

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Labor Law and Social Legislation
b) the dependent legitimate, legitimated or legally adopted,
and illegitimate children, In their absence,
3) Secondary Beneficiaries
a) the dependent parents;
b) In the absence of all the foregoing, any other person
designated by the member as his/her secondary
bene ciary.
c) Bene ts
1) Maternity Leave Bene t. — see also 105-Day Expanded
Maternity Leave Law RA 11210
2) Retirement Bene t. — under Section 12-B, is given to a
member who:
a) has reached the age of sixty (60) years old, and is already
separated from work or has ceased to be self-employed; or
b) has reached the age of sixty ve (65) years provided he/she
has complied with the required monthly contributions.
3) Death Bene t. — under Section 13, allows the primary
bene ciaries of the deceased member to be entitled to monthly
pension provided the latter has paid the required monthly
contributions to be quali ed thereof.
4) Permanent Disability Bene t. — under Section 13-A,
provides that those who have permanent disabilities shall be
entitled to a monthly pension. The sum equivalent to the
monthly pension is still subject to the conditions and
quali cations provided by the said law. Further, the law
provides a di erent monthly pension for permanent total
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disability, which is de ned by Section 13-A (d), and
permanent partial disability.
5) Funeral Bene t. — under Section 13-B, provides for a
funeral grant equivalent to P12K to help defray the cost of
funeral expense upon the death of a member, including a
permanently totally disabled member or retiree.
6) Sickness Bene t. — under Section 14, provides daily sickness
bene ts equivalent to ninety percent (90%) of his average
daily salary credit, to members who are con ned for more
than three (3) days in a hospital or elsewhere with the
approval of the SSS. However, to avail of this bene t, the
member must have complied with the conditions and
quali cations provided by the said law.
7) ⭐Unemployment Insurance or Involuntary Separation
Benefits. — under Section 14-B, provides that an employee
who is involuntarily unemployed or separated from work can
avail of this bene t. However, this bene t shall only be availed
once every three (3) years.
SSS v. Alba
An action for remittance of SS monthly contributions is not a type
of money claim which needs to be led against the estate
proceedings.
WON the term "employer" under the Social Security Act of 1954 may
be applied to Far Alba, the administrator-son of the owner, Arturo
Alba, Sr., who is directly and actively involved in the operation of the
agricultural undertaking.
YES. Plainly, Far Alba, as the hacienda administrator, acts as the
legal representative of the employer and is thus an employer
Syllabus-based Reviewer for the 2023 Bar
within the meaning of the law liable to pay the SS
contributions.
The Court sustains the jurisdiction of the Commission over
disputes under the Social Security Act "with respect to coverage,
bene ts, contributions and penalties thereon or any other matter
related thereto. Moreover, the Court agrees with the Commission's
assertion that an action for remittance of SS monthly
contributions is not a type of money claim which needs to be
led against the estate proceedings.
SSS v. Delos Santos
AN ESTRANGED wife who was not dependent upon her
deceased husband for support is not quali ed to be his bene ciary.
Death bene ts should not be denied to the wife who was married to
the deceased retiree only after the latter's retirement.
The reckoning point in determining the bene ciaries of the
deceased should be the time of his death. There is no need to look
into the time of retirement.
In Aguas, the Court ruled that although a husband and wife are
obliged to support each other, whether one is actually dependent for
support upon the other cannot be presumed from the fact of
marriage alone. A wife who is already separated de facto from her
husband cannot be said to be "dependent for support" upon the
husband, absent any showing to the contrary.
Bartolome v. SSS 2014
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Plainly, "dependent parents" are parents, whether legitimate or
illegitimate, biological or by adoption, who are in need of support or
assistance.
Haveria v. SSS 2018
WON Haveria's inclusion as a compulsory member of the SSS was
valid and consequently, whether he is entitled to receive monthly
pensions.
NO. Haveria was reported by the SSSEA as an employee, and he
claims coverage as a compulsory member of the SSS. As correctly
held by the SSC and CA, the SSSEA, a labor organization,
cannot be considered an employer under the law. As a
government employee, Haveria would have been quali ed for
voluntary coverage under Section 9 (b) of R.A. No. 1161, had he
registered as a voluntary member. Consequently, his compulsory
coverage while supposedly employed with the SSSEA was erroneous.
Philippine Journalist Inc. v.
2013
Journal Employees Union
The coverage of the term legal dependent as used in a stipulation
in a CBA granting funeral or bereavement bene t to a regular
employee for the death of a legal dependent, if the CBA is silent
about it, is to be construed as similar to the meaning that
contemporaneous social legislations have set. This is because the
terms of such social legislations are deemed incorporated in or
adopted by the CBA.
WON petitioner’s denial of respondents’ claims for funeral and
bereavement aid granted under their CBA constituted a diminution
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of benefits in violation of Article 100 of the Labor Code.
YES. The civil status of the employee as either married or single is
not the controlling consideration in order that a person may qualify
as the employee’s legal dependent. What is rather decidedly
controlling is the fact that the spouse, child, or parent is
actually dependent for support upon the employee.
Petitioner had no basis to deny the claim for funeral and
bereavement aid of Alfante for the death of his parent whose death
and fact of legal dependency on him could be substantially proved.
Pursuant to Article 100 of the Labor Code, petitioner as the
employer could not reduce, diminish, discontinue or eliminate any
bene t and supplement being enjoyed by or granted to its
employees.
GSIS Law
2 the age of majority but is incapacitated and incapable of
RA 8291
a) Coverage
1) Membership in the GSIS shall be compulsory for all
employees receiving compensation who have not reached the
compulsory retirement age, irrespective of employment status,
except
a) members of the Armed Forces of the Philippines and the
Philippine National Police, subject to the condition that
they must settle rst their nancial obligation with the
GSIS, and
Syllabus-based Reviewer for the 2023 Bar
b) contractual who have no employer and employee
relationship with the agencies they serve.
2) Except for the members of the judiciary and constitutional
commissions who shall have life insurance only, all
members of the GSIS shall have life insurance, retirement, and
all other social security protection such as disability,
survivorship, separation, and unemployment bene ts.
b) Dependents and Bene ciaries
1) Dependents shall be the following:
a) the legitimate spouse dependent for support upon the
member or pensioner;
b) the legitimate, legitimated, legally adopted child,
including the illegitimate child, who is unmarried, not
gainfully employed, not over the age of majority, or is over
self-support due to a mental or physical defect acquired
prior to age of majority; and
c) the parents dependent upon the member for support;
2) Primary bene ciaries. — The legal dependent spouse until
he/she remarries and the dependent children;
3) Secondary bene ciaries. — The dependent parents and,
subject to the restrictions on dependent children, the
legitimate descendants.
c) Bene ts
1) The separation bene ts are given to GSIS members who are
separated from service or who resigned therefrom provided
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that the quali cations set by law are met by the member
claiming for separation bene ts.
2) On the other hand, the Unemployment or Involuntary
Separation Bene ts are given to an employee who, at the
time of separation from work,
a) was holding a permanent employment, and
b) was separated involuntarily due to the abolition of his/her
o ce or position resulting from reorganization.
3) With respect to disability bene ts,
a) permanent total disability means disability caused by
injury or disease resulting in complete, irreversible, and
permanent incapacity to work or to engage in any gainful
occupation,
b) while there is permanent partial disability when a GSIS
member is incapacitated to work for a limited period of
time because of complete, and permanent loss of any of
the following body parts. xxx
c) Further, there is temporary total disability when a GSIS
member is momentarily incapacitated to work or engage
in any gainful occupation as a result of impairment of
physical or mental faculties which can be rehabilitated or
restored to their normal functions.
4) Retirement bene ts are those received by employees upon
reaching the age of retirement which is sixty (60) years of
age. To be entitled thereon, according to Section 13-A of R.A.
No. 8291, the following quali cations shall be met:
a) he has rendered at least fteen (15) years of service;
b) he is at least sixty (60) years of age at the time of
retirement; and
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c) he is not receiving a monthly pension bene t from
permanent total disability.
5) Likewise, Survivorship bene ts are given when a member or
pensioner dies, his/her bene ciaries shall be entitled to
survivorship bene ts provided in Sections 21 and 22 of R.A.
No. 8291 as stated in Section 20 of said law provided the
quali cations set by law are met.
6) Funeral bene t is given to the bene ciaries of the deceased
member to help them defray the cost of burial, and funeral
expenses.
7) Life insurance bene ts are given to all GSIS members,
except for Members of the AFP and the PNP.
8) It must be noted that the claims for bene ts under this law
shall be led within 4 years from the time of the
contingency except claims for life and retirement
bene ts.
9) Hence, after the contingency such as separation from work,
occurrence of disability, or death happens, then the member
ought to le a claim immediately, in order to avail of the
bene ts provided under this law.
Rodrin v. GSIS
Members of the national police, unless they are on o cial leave, are,
by the nature of their functions, technically on duty 24 hours a day,
because policemen are subject to call at any time and may be asked
by their superiors or by any distressed citizen to assist in maintaining
the peace and security of the community.
WON the death of SPO1 Rodrin is compensable under PD 626.
Syllabus-based Reviewer for the 2023 Bar
YES. For the compensability of an injury to an employee which
results in his disability or death, Section 1(a), Rule III of the
Amended Rules on Employees' Compensation imposes the
following conditions:
1. The employee must have been injured at the place where
his work required him to be;
2. The employee must have been performing his o cial
functions; and
3. If the injury was sustained elsewhere, the employee must
have been executing an order of the employer.
GSIS v. Casco
When an employee is constrained to retire at an early age due to his
illness and the illness persists even after retirement, resulting in his
continued unemployment, as in this case, such a condition amounts
to total disability which should entitle him to the maximum
bene ts allowed by law.
WON respondent's claim for conversion of his PPD benefits to PTD
benefits should be granted.
YES. A disability is considered total and permanent if as a result
of the injury or sickness, the employee is unable to perform any
gainful occupation for a continuous period exceeding 120 days.
Disability should be understood not singly through its medical
signi cance but, more importantly, in terms of a person's loss of
earning capacity.
Permanent total disability means disablement of an employee to
earn wages in the same kind of work, or work of a similar nature that
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he was trained for or accustomed to perform, or any kind of work
which a person of his mentality and attainment could do. It does not
mean absolute helplessness but rather an incapacity to perform
gainful work which is expected to be permanent.
GSIS v. De Castro
What the law requires is a reasonable work connection and not
direct causal relation. Probability, not the ultimate degree of
certainty, is the test of proof in compensation proceedings.
WON De Castro proved that his heart ailments are work-related
and/or have been precipitated by his duties with the AFP.
YES. In any determination of compensability, the nature and
characteristics of the job are as important as raw medical ndings
and a claimant's personal and social history.
Intoxication which does not incapacitate the employee from
following his occupation is not su cient to defeat the recovery of
compensation, although intoxication may be a contributory cause
to his injury. While smoking may contribute to the development of
a heart ailment, heart ailment may be caused by other factors such as
working and living under stressful conditions.
Based on the totality of the circumstances surrounding De Castro's
case, we are convinced that his long years of military service, with its
attendant stresses and pressures, contributed in no small measure to
the ailments that led to his disability retirement.
3 Disability and Death Bene ts
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a) Labor Code
CHAPTER VI Disability Bene ts
ARTICLE 197. Temporary Total Disability. — Any employee who
sustains an injury or contracts sickness resulting in temporary total
disability shall, for each day of such a disability or fraction thereof,
be paid by the System an income bene t equivalent to ninety (90%)
percent of his average daily salary credit.
ARTICLE 198. Permanent Total Disability. —
a) Any employee who contracts sickness or sustains an injury
resulting in his permanent total disability shall, for each month
until his death, be paid by the System during such a disability,
i) an amount equivalent to the monthly income bene t,
ii) plus ten (10%) percent thereof for each dependent child,
but not exceeding five, beginning with the youngest and
without substitution.
b) The monthly income bene t shall be guaranteed for ve years,
and shall be suspended if the employee
i) is gainfully employed, or
ii) recovers from his permanent total disability, or
iii) fails to present himself for examination at least once a year
upon notice by the System.
c) The following disabilities shall be deemed total and
permanent:
Syllabus-based Reviewer for the 2023 Bar
i) Temporary total disability lasting continuously for more
than one hundred twenty days, except as otherwise
provided for in the Rules;
ii) Complete loss of sight of both eyes;
iii) Loss of two limbs at or above the ankle or wrist;
iv) Permanent complete paralysis of two limbs;
v) Brain injury resulting in incurable imbecility or insanity;
and
vi) Such cases as determined by the Medical Director of the
System and approved by the Commission.
ARTICLE 199. Permanent Partial Disability. — Any employee
who contracts sickness or sustains an injury resulting in permanent
partial disability shall, for each month not exceeding the period
designated herein, be paid by the System during such a disability an
income bene t for permanent total disability. xxxx
CHAPTER VII Death Bene ts
ARTICLE 200. Death. —
a) The System shall pay to the primary bene ciaries upon the
death of the covered employee,
i) an amount equivalent to his monthly income bene t,
ii) plus ten percent thereof for each dependent child, but
not exceeding five, beginning with the youngest and
without substitution, except as provided for in paragraph (j)
of Article 167 hereof:
Provided, however, That the monthly income bene t shall be
guaranteed for ve years:
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Provided, further, That if he has no primary bene ciary, the
System shall pay to his secondary bene ciaries the monthly
income bene t but not to exceed sixty months:
Provided, finally, That the minimum death bene t shall not
be less than fteen thousand pesos.
b) The System shall pay to the primary bene ciaries upon the
death of a covered employee who is under permanent total
disability under this Title, eighty (80%) percent of the
monthly income bene t and his dependents to the dependents'
pension:
Provided, That the marriage must have been validly subsisting at
the time of disability:
Provided, further, That if he has no primary bene ciary, the
System shall pay to his secondary bene ciaries the monthly
pension excluding the dependents' pension, of the remaining
balance of the ve-year guaranteed period:
Provided, finally, That the minimum death bene t shall not be
less than fteen thousand pesos.
c) The monthly income bene t provided herein shall be the new
amount of the monthly income bene t for the surviving
bene ciaries upon the approval of this decree.
d) Funeral benefit. — A funeral bene t of Three Thousand
Pesos (P3,000.00) shall be paid upon the death of a covered
employee or permanently totally disabled pensioner.
b) POEA-Standard Employment Contract
Great Southern Maritime Service Corp., et al., v. Surigao
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The general rule is that the employer is liable to pay the heirs of the
deceased seafarer for death bene ts once it is established that he died
during the e ectivity of his employment contract.
However, the employer may be exempted from liability if he can
successfully prove that the seafarer's death was caused by an injury
directly attributable to his deliberate or willful act.
Kestrel Shipping Co. et al., v. Munar 2013
If after the lapse of the 120 or 240 day periods, the seafarer is still
incapacitated to perform his usual sea duties and the company-
designated physician had not yet declared him t to work or
permanently disabled, whether total or permanent, the conclusive
presumption that the latter is totally and permanently
disabled arises.
WON Munar is entitled to the maximum compensation benefit as
provided under the POEA Standard Employment Contract.
YES. Under Section 32 of the POEA-SEC, only those injuries or
disabilities that are classi ed as Grade 1 may be considered as total
and permanent. However, if those injuries or disabilities with a
disability grading from 2 to 14, hence, partial and permanent, would
incapacitate a seafarer from performing his usual sea duties for a
period of more than 120 or 240 days, depending on the need for
further medical treatment, then he is, under legal contemplation,
totally and permanently disabled.
In addition, that it was by operation of law that brought forth the
conclusive presumption that Munar is totally and permanently
disabled, there is no legal compulsion for him to observe the
procedure prescribed under Section 20-B(3) of the
Syllabus-based Reviewer for the 2023 Bar
POEA-SEC. A seafarer’s compliance with such procedure
presupposes that the company-designated physician came up with
an assessment before the expiration of the 120-day or 240-day
periods.
Sy v. Phil Transmarine Carriers Inc. 2013
The quali cation that death must be work-related has made it
necessary to show a causal connection between a seafarer’s work
and his death to be compensable. Disability or death must arise
1) out of employment, AND
2) in the course of employment.
WON Sy is entitled to death benefits under the POEA Standard
Contract.
NO. Under the Amended POEA Contract, work-relatedness is
now an important requirement. Work-related injury is de ned as an
injury resulting in disability or death arising out of and in the course
of employment.
An injury or accident is said to arise "in the course of
employment"
1. when it takes place within the period of the employment,
2. at a place where the employee reasonably may be, and
3. while he is ful lling his duties or is engaged in doing
something incidental thereto.
At the time of the accident, AB Sy was on shore leave and there was
no showing that he was doing an act in relation to his duty as a
seaman or engaged in the performance of any act incidental thereto.
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Consequently, his death could not be considered work-related
to be compensable.
Nazareno v. Maersk Filipinas Crewing Inc. 2013 En Banc
If serious doubt exists on the company-designated physician's
declaration of the nature of a seaman's injury and its corresponding
impediment grade, resort to prognosis of other competent medical
professionals should be made.
WON under Section 20 of the said POEA-SEC, the disability of a
seafarer can only be assessed by the company-designated physician and
not by the seafarer’s own doctor.
NO. While it is the company-designated physician who must declare
that the seaman su ered a permanent disability during employment,
it does not deprive the seafarer of his right to seek a second opinion.
The certi cation of the company-designated physician would defeat
petitioner’s claim while the opinion of the independent physicians
would uphold such claim. In such a situation, the Court adopts the
ndings favorable to petitioner. The law looks tenderly on the
laborer.
WON petitioner is entitled to disability benefits based on the findings
and conclusions, not only of his personal doctors, but also on the
findings of the doctors whom he consulted abroad.
YES. The medical certi cate issued by Dr. Campana cannot be
given much weight and consideration against the overwhelming
ndings and diagnoses of di erent doctors, here and abroad, that
petitioner was not t for work and can no longer perform his duties
as a seafarer.
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Philman Marine Agency Inc. et al., v. Cabanban 2013
The doctor who has had a personal knowledge of the actual medical
condition, having closely, meticulously and regularly monitored and
actually treated the seafarer’s illness, is more quali ed to assess the
seafarer’s disability.
WON Armando is entitled to total and permanent disability
benefits.
NO. Section 20-B of the POEA-SEC evidently shows that it is the
company-designated physician who primarily assesses the degree of
the seafarer’s disability.
1. Upon the seafarer’s repatriation for medical treatment, and
during the course of such treatment, the seafarer is under
total temporary disability and receives medical allowance
until the company-designated physician declares his tness
to work resumption or determines the degree of the
seafarer’s permanent disability — either total or partial.
2. The company-designated physician should, however, make
the declaration or determination within 120 days,
otherwise, the law considers the seafarer’s disability as
total and permanent.
3. Should the seafarer still require medical treatment for more
than 120 days, the period may be extended, but not to
exceed 240 days.
4. At anytime during this latter period, the
company-designated physician may make the declaration or
determination.
5. In case of disagreement between the ndings of the
company-designated physician and the seafarer’s appointed
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physician, the parties shall jointly agree to refer the matter
to a third doctor whose ndings shall be nal and
binding on both.
Here, Armando, in fact, had no ground for a disability claim at the
time he led his complaint, as he did not have any su cient
evidentiary basis to support his claim.
More than this, the disagreement between the ndings of the
company-designated physician and Armando’s chosen physicians
was never referred to a third doctor. Considering the absence of
ndings coming from a third doctor, we sustain the ndings of the
NLRC and hold that the certi cation of the
company-designated physician should prevail.
Austria v. Crystal Shipping 2016
Pre-existence of an illness does not irrevocably bar compensability
because disability laws still grant the same provided seafarer's
working conditions bear causal connection with his illness.
WON Austria was entitled to permanent disability benefits despite
his pre-existing condition.
YES. For an occupational disease and the resulting disability or
death to be compensable, all of the following conditions must be
satis ed:
1. The seafarer's work must involve the risks described herein;
2. The disease was contracted as a result of the seafarer's
exposure to the described risks;
3. The disease was contracted within a period of exposure and
under such other factors necessary to contract it; and
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4. There was no notorious negligence on the part of the
seafarer.
Petitioner's working environment as chef constantly exposed him to
factors that could aggravate his heart condition.
Compensability of an ailment does not depend on whether the
injury or disease was pre-existing at the time of the employment but
rather if the disease or injury is work-related or aggravated
his condition. It is not necessary, in order for an employee to
recover compensation, that he must have been in perfect condition
or health at the time he received the injury, or that he be free from
disease.
Quizora v. Denholm 2011 re Pre-Employment Medical
Crew Management Examination
PEME is NOT exploratory in nature. It was not intended to be a
totally in-depth and thorough examination of an applicant’s medical
condition. The PEME merely determines whether one is " t to
work" at sea or " t for sea service," it does not state the real state of
health of an applicant. In short, the " t to work" declaration in the
respondent’s PEME cannot be a conclusive proof to show that he
was free from any ailment prior to his deployment.
Doroteo v. Philimare, Inc 2017 re Clear Nexus Rule
the non-disclosure of the stenting procedure.
Jebsens Maritime v. Alcibar 2019 re Theory of Aggravation
In Leonis Navigation Co., Inc. v. Villamater, this Court held that
under Section 32-A of the POEA Standard Employment Contract,
colon cancer is considered a work-related disease. This Court
explained that the seaman is entitled to disability bene ts if the
seaman proves that the conditions inside the vessel increased or
aggravated the risk of the seaman of colon cancer.

Dizon v. Naess Shipping Phils 2016
The three-day period from return of the seafarer or sign-o from
the vessel, whether to undergo a post-employment medical
examination or report the seafarer's physical incapacity, should
always be complied with to determine whether the injury or illness is
work-related.
WON Dizon is entitled to disability benefits.
NO. The law speci cally declares that failure to comply with the
mandatory reporting requirement shall result in the seafarer's
forfeiture of his right to claim benefits thereunder.
Dizon’s coronary artery disease which rendered him un t for sea
duty was diagnosed during a pre-employment medical
examination and not in a post-employment medical
examination as provided by law.
Here, there is no clear nexus between the disease Doroteo acquired D Labor Relations
and the working conditions he encountered. Therefore, the
disputable presumption of work-relation cannot be applied, since Right to Self-Organization
based on the evidence presented the Court cannot reasonably
a) Coverage
conclude that his work as an engineer in the engine room led to
Dorotea's throat cancer. b) Eligibility for Membership
c) Doctrine of Necessary Implication
Leoncio v. MST
2017 re Medical Procedure d) Commingling or Mixed Membership
Marine Services
Nothing can be plainer than the meaning of the word "illness" as e) E ect of Inclusion as Members of Employees
referring to a disease or injury a icting a person's body. By the Outside of the Bargaining Unit
doctrine of noscitor a sociis, "condition" likewise refers to the state of
one's health. Neither of these words refers to a medical Bargaining Unit
procedure undergone by a seafarer in connection with an "illness or
condition" already known to the employer. Bargaining Representative
Thus, the employer cannot validly decry his supposed concealment Rights of Labor Organizations
and fraudulent misrepresentation of Leoncio's illness on account of

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a) Check O , Assessment, and Agency Fees Ambulant, intermittent and itinerant workers, self-employed (RECIPROCITY rule); le by virtue of separation
people, rural workers and those without any de nite employers may and of unions doctrine.
b) Collective Bargaining form labor organizations for their mutual aid and protection. 4. Country of origin has Con dential EEs
Unfair Labor Practices rati ed ILO 87 and 98 as Members of a Cooperative;
ART 254. Right of Employees in the Public Service. — Employees of certi ed by DFA.
government corporations established under the Corporation Code Owners cannot bargain
a) Nature and Aspect All other workers FOR mutual
shall have the right to organize and to bargain collectively with their with themselves.
aid and protection and NOT for
b) By Employers respective employers. All other employees in the civil service shall Members of International Orgs;
collective bargaining;
have the right to form associations for purposes not contrary to By doctrine of
c) By Organizations law. Security guards;
incorporation, they are
Workers in EPZs. immune from suit.
Peaceful Concerted Activities
b) Eligibility for Membership
a) Strikes (Valid vs. Illegal) c) Doctrine of Necessary Implication
Quali ed Disquali ed
b) Picketing 1) Con dential employees, by Doctrine of Necessary
Those employed in commercial, EEs of GOCCs under Special
industrial and agricultural charters; Implication, are also disquali ed for union membership.
c) Lockouts
enterprises; They are those who
Managerial EEs;
d) Assumption of Jurisdiction by the DOLE Secretary EEs of GOCCs WITHOUT a) assist or act in a con dential capacity in regard
They are those who are
original charters (Corpo Code); vested with powers or b) to persons who formulate, determine, and e ectuate
1 Right to Self-Organization EEs of religious, charitable, prerogatives to lay down management policies, speci cally in the eld of labor
medical or educational and execute management relations.
a) Coverage institutions, for pro t or not; policies and/or hire,
2) For the disquali cation to apply
Alien EEs transfer, suspend, lay-o ,
ART 253. Coverage and Employees' Right to Self-Organization. — All a) He must be in a duciary relationship with another to
recall, discharge, assign or
persons employed in commercial, industrial and agricultural 1. Working in the country;
discipline employees. whom he reports or whom he assists;
enterprises and in religious, charitable, medical, or educational 2. With valid working permits
institutions, whether operating for pro t or not, shall have the right Supervisory EEs are b) The latter possesses labor-management relations
issued by DOLE;
to self-organization and to form, join, or assist labor organizations of RELATIVELY prohibited information; and
3. Nationals of countries in that they are not allowed
their own choosing for purposes of collective bargaining. c) He has access to that information by reason of his
granting same rights to to join unions of rank and
Filipinoworkers position.
3) The disquali cation will NOT apply if

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a) The information is business information; and
b) The information may be labor-management relations in
nature but the employee’s access thereto is accidental only.
Societe Internationale De
2018
Telecommunications v. Huliganga
Managerial employees are not eligible to join, assist or form any
labor organization. An exception to this prohibition is when the
employer extends the CBA bene ts to the managerial employee as a
matter of policy or established practice.
WON Huliganga, as a managerial employee, is entitled to the same
retirement benefits as those of rank-and-file employees.
NO. Complainant failed to present evidence to justify his claim. He
failed to su ciently establish that there is an established company
practice of extending the CBA concessions to managerial employees.
To be considered as a company practice, the act of extending the
bene ts of the CBA to managerial employees must have been
practiced for a long period of time and must be shown to be
consistent and deliberate.
d) Commingling or Mixed Membership
1) Mixed-membership is NOT a ground for the cancellation of a
union’s certi cate of registration. The grounds are limited to
the following:
a) Fraud in the rati cation of Constitution and Bylaws;
b) Fraud in election of o cers;
c) Voluntary dissolution
i) By ⅔ of members;
eCodal+Pro by RGL
ii) In a meeting called for the purpose;
iii) An application to cancel submitted by the board
attested to by the president;
iv) Filed in the RO which issued the Certi cate of
Registration.
Holy Child Catholic School v. Sto. Tomas 2013 En Banc
In case of alleged inclusion of disquali ed employees in a union, the
proper procedure for an employer like petitioner is to directly le a
petition for cancellation of the union’s certi cate of
registration due to misrepresentation, false statement or fraud
under the circumstances enumerated in Article 239 of the Labor
Code, as amended.
e) E ect of Inclusion as Members of Employees
Outside of the Bargaining Unit
The inclusion as union members of employees outside the
bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically
deemed removed from the list of membership of said union.
2 Bargaining Unit
1) A "bargaining unit" has been de ned as a group of
employees of a given employer, comprised of all or less than all
of the entire body of employees, which the collective interest
of all the employees, consistent with equity to the employer,
indicate to be the best suited to serve the reciprocal rights and
duties of the parties under the collective bargaining provisions
of the law. (UP v. Ferrer-Calleja)
Syllabus-based Reviewer for the 2023 Bar
2) The factors in determining the appropriate collective
bargaining unit are
a) the will of the employees (Globe Doctrine);
b) a nity and unity of the employees' interest, such as
substantial similarity of work and duties, or similarity
of compensation and working conditions
(Substantial Mutual Interests Rule);
c) prior collective bargaining history; and
d) similarity of employment status.
3) The basic test of an asserted bargaining unit's acceptability is
whether or not it is fundamentally the combination which
will best assure to all employees the exercise of their collective
bargaining rights. (ISAE v. Quisumbing)
3 Bargaining Representative
Exclusive bargaining agent. — Refers to any legitimate labor
organization duly recognized or certi ed as the sole and exclusive
bargaining agent of all the employees in a bargaining unit.
Modes to acquire status as Sole and Exclusive
Bargaining Agent (SEBA)
Four (4) ways of determining a bargaining agent:
a) Request for SEBA certi cation;
b) Certi cation election;
c) Run-o election; OR
d) Consent election.
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Labor Law and Social Legislation
SEBA Certi cation
a conciliation or arbitration or had become the subject of a
DOLE DO 40-I-2015
1) In an unorganized establishment with 1 LLO. — the RD
shall call a conference within ve (5) work days for the
submission of the following:
a) the names of employees in the covered bargaining unit
who signify their support for the certi cation, provided
that said employees comprise at least majority of the
covered BU; and
b) certi cation under oath by the president of the requesting
union or local that all documents submitted are true and
correct.
If the requesting union or local fails to complete the
requirements for SEBA certi cation during the conference,
the request for SEBA certi cation shall be referred to the
election officer for the conduct of election.
Action On The Submission. — RD shall issue during the
conference a certi cation as SEBA.
Effect Of Certification. — Upon the issuance of the
certi cation as SEBA, the certi ed union or local shall enjoy all
the rights and privileges of an exclusive bargaining agent of all
the employees in the covered bargaining unit
2) In an unorganized establishment with > 1 LLO. — RD
shall refer the same to the election o cer for the conduct of
certi cation election.
3) In an organized establishment. — RD shall refer the same
to the mediator-arbiter for the determination of the
propriety of conducting a certi cation election.
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b Certi cation/Consent Election
1) Who may file?
a) LLO. —
i) Independent union;
ii) National union or federation;
4) Grounds to Deny Petition.
iii) Local chapter.
b) Employer, when requested to bargain collectively, and the
majority status of the requesting party is in doubt.
c) If in an organized establishment, the signature of at
least 25% of all employees in the bargaining unit is
required.
2) Venue and Jurisdiction. — With the Regional O ce
which issued the petitioning union's certi cate of registration
or certi cate of creation of chartered local.
The petition shall be heard and resolved by the
Mediator-Arbiter.
3) When to File? A petition for certi cation election may be
led anytime, except:
a) when a valid certi cation, consent or run-o election has
been conducted within the bargaining unit within one (1)
year prior to the ling of the petition for certi cation
election;
b) when the duly certi ed union has commenced and
sustained negotiations in good faith with the employer
in accordance with the said one year period;
5) Order of Election
Syllabus-based Reviewer for the 2023 Bar
c) when a bargaining deadlock had been submitted to
valid notice of strike or lockout;
d) when a CBA has been registered. The petition may be
led only within sixty (60) days prior to its expiry
(FREEDOM PERIOD).
a) the petitioner is not listed in the department's registry
of legitimate labor unions or that its registration
certi cate has been cancelled with nality;
b) failure to submit a duly issued charter certi cate;
c) ling the petition before or after the freedom period;
d) ling of a petition within one (1) year from the date of
a valid election;
e) where a duly certi ed union has commenced and
sustained negotiations with the employer within the
one-year period, or
where there exists a bargaining deadlock;
f) in an organized establishment, the failure to submit the
25% signature requirement;
g) non-appearance of the petitioner for two (2) consecutive
scheduled conferences; and
h) absence of EER between all the members of the
petitioning union and the establishment where the
proposed bargaining unit is sought to be represented.
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Labor Law and Social Legislation
Granted Denied
Unorganized
shall not be subject to appeal. Appeal to SOLE within
le protest on the conduct ten (10) days from
and results of the certi cation receipt
election.
Organized
Appeal to SOLE within ten (10) days from receipt
a) The ling of the memorandum of appeal from the order
or decision of the Med-Arbiter stays the holding of any
certification election.
b) The decision of the Secretary shall become nal and
executory after ten (10) days from receipt thereof by
the parties. No motion for reconsideration of the
decision shall be entertained.
6) Inclusion-exclusion proceeding
a) All employees who are members of the appropriate
bargaining unit three (3) months prior to the ling of
the petition/request shall be eligible to vote.
b) An employee who has been dismissed from work but
has contested the legality of the dismissal in a forum
of appropriate jurisdiction.
7) Proclamation and Certification of the Result of the
Election. — Within 24 hours from nal canvass of votes,
there being a valid election, the SEBA, shall be proclaimed by
the Med-Arbiter under any of the following conditions:
eCodal+Pro by RGL
Syllabus-based Reviewer for the 2023 Bar
a) no protest was led or, even if one was led, the same that its members are managerial employees and for this reason, its
was not perfected within the ve-day period for registration is thus a patent nullity for being an absolute violation of
perfection of the protest; Article 245 of the Labor Code which declares that managerial
employees are ineligible to join any labor organization — is, in a
b) no challenge or eligibility issue was raised or, even if
sense, an accusation that respondent is guilty of misrepresentation
one was raised, the resolution of the same will not
for registering under the claim that its members are not managerial
materially change the results of the elections.
employees.
The winning union shall have the rights, privileges and
obligations of a duly certi ed collective bargaining agent
c Bars to the holding of Certi cation/Consent Election
from the time the certification is issued.
8) Appeal. — The decision of the Med-Arbiter may be appealed 1) Contract Bar rule. — BLR shall not entertain any petition
to the Secretary within ten (10) days from receipt. for certi cation election or any other action which may
disturb the administration of duly registered existing collective
9) Consent Election. — Refers to the election voluntarily
bargaining agreements a ecting the parties. The exceptions
agreed upon by the parties, with or without the intervention
are as follows:
of the DOLE, to determine the issue of majority
representation of all the workers in the appropriate collective a) during the 60-day freedom period;
bargaining unit. b) when the CBA is not registered with the BLR or DOLE
Regional O ces;
Asian Institute of Management v. Asian
2017 c) when the CBA, although registered, contains provisions
Institute of Management Faculty Association
lower than the standards xed by law;
In case of alleged inclusion of disquali ed employees in a union,
d) when the documents supporting its registration are
the proper procedure for an employer is to directly file a petition
falsi ed, fraudulent or tainted with misrepresentation;
for cancellation of the union's certi cate of registration due to
misrepresentation, false statement or fraud. e) when the CBA is not complete;
f) when the CBA was entered into prior to the 60-day
WON the BLR was correct in holding that being composed of
freedom period;
managerial employees is not a ground for canceling the certificate of
registration of a labor organization. g) when there is a schism in the union resulting in an
industrial dispute wherein the CBA can no longer foster
NO. Petitioner was correct in ling a petition for cancellation of
industrial peace.
respondent's certi cate of registration. Petitioner's sole ground for
seeking cancellation of respondent's certi cate of registration —
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Labor Law and Social Legislation
2) Deadlock Bar rule. — neither may a representation question
be entertained if:
a) before the ling of a petition for certi cation election, the
duly recognized or certi ed union has commenced
negotiations with the employer within the one-year
period; or
b) a bargaining deadlock had been submitted to conciliation
or arbitration or had become the subject of valid notice of
strike or lockout.
3) Certification Year Bar rule. — A certi cation election
petition may not be filed within one (1) year:
a) from the date of a valid certi cation, consent or run-o
e Employer as a mere bystander rule
election; or
b) from the date of SEBA certi cation.
d Failure of election, Run-O Election, Re-run election
1) Failure of Election. —
a) Where the number of votes cast is less than the majority
4 Rights of Labor Organizations
of the number of eligible voters and there are no
material challenged votes.
b) It shall not bar the ling of a motion for the immediate
holding of another certi cation or consent election
within six (6) months from date of declaration of failure
of election.
c) A re-run election is then called.
2) Run-off Election. — Refers to an election between the labor
unions receiving the two (2) highest number of votes when a
certi cation election which provides for three (3) or more
eCodal+Pro by RGL
choices results in no choice receiving a majority of the valid
votes cast; provided, that the total number of votes for all
contending unions is at least fty percent (50%) of the
number of votes cast.
3) Re-run election. — Refers to an election conducted
a) to break a tie between contending unions, including
between "no union" and one of the unions.
b) after a failure of election has been declared by the election
o cer and/or a rmed by the mediator-arbiter.
c) When the certi cation election is nulli ed.
Role of Employer. — Merely a bystander and may only
participate:
a) By being furnished a copy of the petition; and
b) By providing the list of employees in the unit for
pre-election.
"Legitimate Labor Organization" refers to any labor
organization in the private sector registered or reported with the
Department in accordance with Rules III and IV of the Omnibus
Rules.
1) To act as the representative of its members for the purpose
of collective bargaining;
2) To be certi ed as the exclusive representative of all the
employees in an appropriate bargaining unit for purposes of
collective bargaining;
Syllabus-based Reviewer for the 2023 Bar
3) To be furnished by the employer, upon written request, with
its annual audited nancial statements, including the
balance sheet and the pro t and loss statement,
a) within thirty (30) calendar days from the date of
receipt of the request, after the union has been duly
recognized by the employer or certi ed as the sole and
exclusive bargaining representative of the employees
in the bargaining unit, or
b) within sixty (60) calendar days before the expiration
of the existing collective bargaining agreement, or
during the collective bargaining negotiation;
4) To own property, real or personal, for the use and bene t of
the labor organization and its members;
5) To sue and be sued in its registered name; and
6) To undertake all other activities designed to bene t the
organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
7) The income and the properties of legitimate labor
organizations, including grants, endowments, gifts, donations
and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from
taxes, duties and other assessments. (ART 251.)
a) Check O , Assessment, and Agency Fees
ART 113. Wage Deduction. — No employer, in his own behalf or in
behalf of any person, shall make any deduction from the wages of his
employees, except:
xxxx
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Labor Law and Social Legislation
(b) For union dues, in cases where the right of the worker or his
union to check-o has been recognized by the employer or
authorized in writing by the individual worker concerned;
1) There may be some SPECIAL ASSESSMENTS:
a) Authorized by a written resolution of majority of all
members; AND
b) Purpose is stated.
2) Union Dues vs. Agency Fees. — Assessment of agency fees
from non-union employees and deduction thereof from the
employees’ salaries (Art 248[e]) even in the absence of
individual written authorization if the non-union employees
accept the bene ts under the CBA.
3) The union’s right to agency fees is neither contractual nor
statutory but quasi-contractual.
4) Requisites for validity of union dues and special
assessments
a) Authorization by a written resolution of the majority of
all the members at a general membership meeting duly
called for the purpose;
b) Secretary’s record of the minutes of said meeting;
c) Individual written authorization (IWA) for check-o duly
signed by the employees concerned.
5) When not to require IWA
a) Assessment from non-members of SEBA of agency fees;
b) Deductions for fees from mandatory activities such as
labor relations seminars;
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c) Withholding tax;
d) EE’s debt to ER which is already due and demandable;
e) Judgment against the worker where wages may be subject
of attachment or execution but only for debts incurred for
food, clothing, shelter, and medical attendance.
f) Via court order;
g) Authorized by law such as premiums for SSS,
PhilHealth, Pag-ibig.
b) Collective Bargaining
1) A collective bargaining agreement or CBA is the negotiated
contract between a legitimate labor organization and the
employer concerning wages, hours of work and all other terms
and conditions of employment in a bargaining unit.
2) Thus, where the CBA is clear and unambiguous, it becomes
the law between the parties and compliance therewith is
mandated by the express policy of the law.
ART 265. Terms of a Collective Bargaining Agreement. — Any CBA
that the parties may enter into shall, insofar as the representation
aspect is concerned, be for a term of ve (5) years.
No petition questioning the majority status of the incumbent
bargaining agent shall be entertained and no certi cation election
shall be conducted by the DOLE outside of the sixty (60) day
period immediately before the date of expiry of such ve-year
term of the CBA.
All other provisions of the CBA shall be renegotiated not later
than three (3) years after its execution.
Syllabus-based Reviewer for the 2023 Bar
Any agreement on such other provisions of the CBA entered into
within six (6) months from the date of expiry of the term of such
other provisions as xed in such CBA, shall retroact to the day
immediately following such date.
If any such agreement is entered into beyond six months, the
parties shall agree on the duration of retroactivity thereof. In
case of a deadlock in the renegotiation of the CBA, the parties may
exercise their rights under this Code.
(1) Economic Terms and Conditions
Economic provisions include monetary value of
1) wage increases,
2) loan bene ts,
3) bonuses,
4) allowances,
5) retirement plan, and
6) other fringe bene ts.
(2) Non-Economic Terms and Conditions
On the other hand, non-economic clauses include
1) union security clauses,
2) grievance procedures,
3) labor-management cooperation schemes, and
4) other provisions without monetary value.
(3) Duty to Bargain Collectively
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ART 263. Meaning of Duty to Bargain Collectively. — The duty to
bargain collectively means
1. the performance of a mutual obligation to meet and
convene promptly and expeditiously in good faith
2. for the purpose of negotiating an agreement with respect to
wages, hours of work and all other terms and conditions of
employment including proposals for adjusting any
grievances or questions arising under such agreement and
3. executing a contract incorporating such agreements if
requested by either party but such duty does not compel
any party to agree to a proposal or to make any concession.
(4) Mandatory Provisions in the Collective Bargaining
Agreement (CBA)
1) Grievance Procedure. — They shall establish a machinery
for the adjustment and resolution of grievances arising from
a) the interpretation or implementation of their CBA and
b) the interpretation or enforcement of company personnel
policies.
2) Voluntary Arbitration. — All grievances submitted to the
grievance machinery which are not settled within seven (7)
calendar days from the date of its submission shall
automatically be referred to voluntary arbitration prescribed
in the CBA.
3) “No Strike, No Lockout” Clause. — No strike or lockout
shall occur during the e ectivity of the CBA. However, this
only applies if the ground relied upon is economic in nature.
The “No Strike, No Lockout” clause is inapplicable to prevent
a strike or lockout which is grounded on ULP.
eCodal+Pro by RGL
4) Provision on wage increases.
5) What are the remedies in case of CBA deadlock? In case of
a deadlock in the negotiation or renegotiation of the collective
bargaining agreement, the parties may exercise the following
rights under the Labor Code:
a) Conciliation and mediation by the NCMB, DOLE.
b) Declaration of a strike or lockout, as the case may be.
c) Referral of case to compulsory or voluntary arbitration.
ART 264. Duty to Bargain Collectively When There Exists a CBA. —
When there is a CBA, the duty to bargain collectively shall also mean
that neither party shall terminate nor modify such agreement during
its lifetime.
Freedom period. — However, either party can serve a written
notice to terminate or modify the agreement at least sixty (60)
days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and e ect
the terms and conditions of the existing agreement during the
60-day period and/or until a new agreement is reached by the parties.
Hongkong Bank Independent Labor Union v. HSBC 2018
WON HSBC could validly enforce the credit-checking requirement
under its BSP-approved Plan in processing the salary loan
applications of covered employees even when the said requirement is
not recognized under the CBA.
NO. The Plan was never made part of the CBA. Tolerating HSBC's
conduct would be tantamount to allowing a blatant circumvention
Syllabus-based Reviewer for the 2023 Bar
of Article 253. It would contravene the express prohibition against
the unilateral modi cation of a CBA during its subsistence
and even thereafter until a new agreement is reached.
HSBC's enforcement of credit checking on salary loans under the
CBA invalidly modi ed the latter's provisions thereon through the
imposition of additional requirements which cannot be
found anywhere in the CBA.
Mitsubishi Motors Phils Salaried Employees
2013
Union v. Mitsubishi Motors Phils Corp.
WON member-employees are entitled to full reimbursement of
medical expenses incurred by their dependents regardless of any
amounts paid by the latter’s health insurance provider.
NO. The conditions set forth in the CBA provision indicate an
intention to limit MMPC’s liability only to actual expenses incurred
by the employees’ dependents, that is, excluding the amounts paid
by dependents’ other health insurance providers.
Since the subject CBA provision is an insurance contract, the rights
and obligations of the parties must be determined in accordance
with the general principles of insurance law. Being in the nature of a
non-life insurance contract and essentially a contract of indemnity,
the CBA provision obligates MMPC to indemnify the covered
employees’ medical expenses incurred by their dependents but only
up to the extent of the expenses actually incurred. This is consistent
with the principle of indemnity which proscribes the insured from
recovering greater than the loss.
5 Unfair Labor Practices
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a) Nature and Aspect
ART 258. Concept of Unfair Labor Practice and Procedure for
Prosecution Thereof. — Unfair labor practices violate the
constitutional right of workers and employees to
self-organization, are inimical to the legitimate interests of
both labor and management, including their right to bargain
collectively and otherwise deal with each other in an atmosphere of
freedom and mutual respect, disrupt industrial peace and hinder the
promotion of healthy and stable labor-management relations.
Consequently, unfair labor practices are not only violations of the
civil rights of both labor and management but are also criminal
o enses against the State.
Subject to the exercise by the President or by the SOLE of the
powers vested in them by Articles 263 and 264 of this Code, the
civil aspects of all cases involving unfair labor practices, which
may include claims for actual, moral, exemplary and other
forms of damages, attorney's fees and other a rmative relief,
shall be under the jurisdiction of the Labor Arbiters.
The Labor Arbiters shall resolve such cases within thirty (30)
calendar days from the time they are submitted for decision.
Recovery of civil liability in the administrative proceedings
shall bar recovery under the Civil Code.
No criminal prosecution may be instituted without a final
judgment nding that an unfair labor practice was committed,
having been rst obtained. The nal judgment in the administrative
proceedings shall not be binding in the criminal case nor be
considered as evidence of guilt but merely as proof of compliance
of the requirements therein set forth.
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b) By Employers
1) To interfere with, restrain or coerce employees in the
exercise of their right to self-organization;
2) Yellow Dog Contract. To require as a condition of
employment that a person or an employee shall not join a
labor organization or shall withdraw from one to which he
belongs;
3) To contract out services or functions being performed by
union members when such will interfere with, restrain or
coerce employees in the exercise of their right to
self-organization;
4) To initiate, dominate, assist or otherwise interfere with
the formation or administration of any labor organization,
including the giving of nancial or other support to it or its
organizers or supporters;
5) To discriminate in regard to wages, hours of work and other
terms and conditions of employment in order to encourage
or discourage membership in any labor organization.
6) To dismiss, discharge or otherwise prejudice or discriminate
against an employee for having given or being about to
give testimony under this Code;
7) To violate the duty to bargain collectively;
8) To pay negotiation or attorney's fees to the union or its o cers
or agents as part of the settlement of any issue in collective
bargaining or any other dispute; or
9) To violate a collective bargaining agreement.
10) NOTES
Syllabus-based Reviewer for the 2023 Bar
a) As to violation of CBA. — It is ULP if what is violated
is an ECONOMIC provision of the CBA and that the
violation is gross and agrant; otherwise, it is not ULP.
b) As to jurisdiction
i) LA → NLRC → CA. — gross and agrant violation
of an economic provision, a ULP;
ii) Grievance Machinery → VA → CA. — violation
of
1. a political provision; or
2. an economic provision that is NOT gross and
agrant.
c) Totality of Conduct Doctrine. — Expressions of
opinion by an employer which, though innocent in
themselves, frequently were held to be culpable because of
the circumstances under which they were uttered, the
history of the particular employer's labor relations or
anti-union bias or because of their connection with an
established collateral plan of coercion or interference.
SONEDCO v. Universal Robina 2016
An employer who refuses to bargain with the union and tries to
restrict its bargaining power is guilty of unfair labor practice. In
determining whether an employer has not bargained in good faith,
the totality of all the acts of the employer at the time of negotiations
must be taken into account.
Adamson Univ Faculty and
2020
Employees Union v. Adamson Univ
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Labor Law and Social Legislation
Petitioner's dismissal, which was brought about by his personal acts,
does not constitute unfair labor practice as provided under the
Labor Code. Dismissing him was not meant to violate the right of
the university employees to self-organize. Neither was it meant to
interfere with the Union's activities. Likewise, petitioner failed to
prove that the proceedings were done with haste and bias. Finally,
petitioner cannot raise the defense that he was the Union's
president; this does not make him immune from liability for his acts
of misconduct.
c) By Organizations
1) To restrain or coerce employees in the exercise of their right
to self-organization. However, a labor organization shall have
the right to prescribe its own rules with respect to the
acquisition or retention of membership;
2) To cause or attempt to cause an employer to discriminate
against an employee, including discrimination against an
employee with respect to whom membership in such
organization has been denied or to terminate an employee on
any ground other than the usual terms and conditions under
which membership or continuation of membership is made
available to other members;
3) To violate the duty, or refuse to bargain collectively with
the employer, provided it is the representative of the
employees;
4) Featherbedding. To cause or attempt to cause an employer
to pay or deliver or agree to pay or deliver any money or other
things of value, in the nature of an exaction, for services which
are not performed or not to be performed, including the
demand for fee for union negotiations;
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5) To ask for or accept negotiation or attorney's fees from
employers as part of the settlement of any issue in collective
bargaining or any other dispute; or
6) To violate a collective bargaining agreement.
Examples of ULPs
1) Surface bargaining. — De ned as “going through the
motions of negotiating” without any legal intent to reach an
agreement.
It involves the question of whether an employer’s conduct
demonstrates an unwillingness to bargain in good faith or is
merely hard bargaining.
2) Blue sky bargaining. — Making exaggerated or
unreasonable proposals.
3) Featherbedding. — see above.
4) Yellow dog contract. — An agreement which exacts from
workers as a condition of employment, that they shall not join
or belong to a labor organization, or attempt to organize one,
during their period of employment or that they shall withdraw
therefrom, in case they are already members of a labor
organization.
5) Runaway shop. — Is an industrial plant that is moved by its
owners from one location to another to escape union labor
regulations or state laws. It may also be a relocation motivated
by anti-union animus rather than for business reasons.
6) Contracting out. — It is only when the contracting out of a
job, work or service being performed by union members will
interfere with, restrain or coerce employees in the exercise of
Syllabus-based Reviewer for the 2023 Bar
their right to self-organization that it shall be unlawful and
shall constitute ULP.
7) Company Union. — To initiate, dominate, assist or
otherwise interfere with the formation or administration of
any labor organization, including the giving of nancial or
other support to it or its organizers or supporters.
8) Boulwarism. — the tactic of making a "take-it-or-leave-it"
o er in a negotiation, with no further concessions or
discussion.
United Polyresins, Inc. v. Pinuela 2017
WON Pinuela was illegally dismissed as the charges of
misappropriation against him were unsubstantiated.
YES. Respondent's expulsion from PORFA is grounded on the
union's Constitution. However, these provisions refer to
impeachment and recall of union o cers, and not expulsion from
union membership. In short, any o cer found guilty of violating
these provisions shall simply be removed, impeached or recalled,
from o ce, but not expelled or stripped of union membership.
It was therefore an error on the part of PORFA and petitioners to
terminate respondent's employment based on said provision of the
union's Constitution. Such a ground does not constitute just cause
for termination.
A review of the PORFA Constitution itself reveals that the only
provision authorizing removal from the union is found in Article X,
Section 6, that is, on the ground of failure to pay union dues,
special assessments, nes, and other mandatory charges.
The matter of respondent's alleged failure to return petitioners'
P300K which was lent to PORFA is immaterial as well. It may not
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be used as a ground to terminate respondent's employment; under 4) Strike vote wherein at least a majority of the members of the j) In de ance of an assumption or certi cation or return-to-work
the Labor Code, such a contribution by petitioners to PORFA union approve the holding of strike through secret balloting in order;
is illegal and constitutes unfair labor practice. a meeting called for the purpose;
k) In violation of a TRO or an injunction order;
5) Strike vote report submitted at least 7 days before intended
l) After notice of strike converted to preventive mediation
date of strike;
case;
6 Peaceful Concerted Activities
6) Cooling o period.
m) Against prohibition by law;
a) Strikes (Valid vs. Illegal) a) Union busting = NONE;
n) By a minority union;
b) ULP = 15 days;
o) By an illegitimate union;
"Strike" refers to any temporary stoppage of work by the
c) CBD = 30 days;
concerted action of employees as a result of a labor or industrial p) By dismissed EEs;
dispute. Elements: From date of notice of strike is led.
q) In violation of company code of conduct;
a) Temporary stoppage of work; 7) 7 day waiting period or strike ban after submission of
r) As protest rallies in front of government o ces;
strike vote report.
b) Concerted activity; s) As welga ng bayan.
c) Labor dispute. Legal strike vs. illegal strike
Prohibited acts during strike
Grounds for strike When a strike is ILLEGAL
a) Doesn’t comply with procedural requirements; ARTICLE 279. Prohibited Activities. —
There are only TWO strikeable grounds:
b) For an unlawful purpose; a. No labor organization or employer shall declare a strike or
a) Collective bargaining deadlock; AND
lockout without first having bargained collectively or
c) Based on non-strikeable grounds;
b) ULP. without rst having led the notice required or without the
d) Didn’t bargain collectively rst; necessary strike or lockout vote rst having been obtained and
Mandatory procedural requirements e) Violated the no strike no lockout clause; reported to the DOLE.

1) Based on a valid and factual ground;
2) A notice of strike led with the NCMB;
3) Notice of strike vote to the NCMB, at least 24 hours before
such vote;
f) Failure to submit issues to grievance procedure and exhaust No strike or lockout shall be declared after assumption of
the steps therein; jurisdiction by the President or the SOLE or after certi cation
g) While C-M is ongoing at NCMB; or submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving the same
h) Based on issues already brought to arbitration; grounds for the strike or lockout.
i) Pending case involving same ground in the notice of strike;

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Any worker whose employment has been terminated as a
consequence of any unlawful lockout shall be entitled to
reinstatement with full backwages.
Any union o cer who knowingly participates in an illegal
strike and any worker or union o cer who knowingly
participates in the commission of illegal acts during a
strike may be declared to have lost his employment status.
Mere participation of a worker in a lawful strike shall not
constitute su cient ground for termination of his employment,
even if a replacement had been hired by the employer during
such lawful strike.
b. No person shall obstruct, impede, or interfere with by force,
violence, coercion, threats or intimidation, any peaceful
picketing by employees during any labor controversy or in the
exercise of the right to self-organization or collective bargaining,
or shall aid or abet such obstruction or interference.
c. No employer shall use or employ any strike-breaker, nor shall
any person be employed as a strike-breaker.
d. No public o cial or employee, including o cers and personnel
of the AFP or PNP, or armed person, shall bring in, introduce
or escort in any manner, any individual who seeks to replace
strikers in entering or leaving the premises of a strike area, or
work in place of the strikers.
e. The police force shall keep out of the picket lines unless
actual violence or other criminal acts occur therein.
f. No person engaged in picketing shall commit any act of
violence, coercion or intimidation or obstruct the free ingress to
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or egress from the employer's premises for lawful purposes, or
obstruct public thoroughfares.
“Strike area" means the establishment, warehouses, depots, plants
or o ces, including the sites or premises used as runaway shops, of
the employer struck against, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all
points of entrance to and exit from said establishment.
"Strike-breaker" means any person who obstructs, impedes, or
interferes with by force, violence, coercion, threats, or intimidation
any peaceful picketing a ecting wages, hours or conditions of
work or in the exercise of the right of self-organization or collective
bargaining.
Liability of union o cers and members for illegal strike and
illegal acts during strike
Knowingly Committed Illegal
Participated Acts
Union O cer DISMISSED DISMISSED
Union Member - DISMISSED
b) Picketing
Marching to-and-fro with placards that make known the issues
between the establishment and the workers.
Picketing is limited to harmless marching by employees who carry
placards or use speech to attract the public to their cause.
c) Lockouts
Syllabus-based Reviewer for the 2023 Bar
Refers to the temporary refusal of an employer to furnish work as a
result of a labor or industrial dispute.
Grounds for lockout
Same as grounds for strike
a) Collective bargaining deadlock; AND
b) ULP.
Mandatory procedural requirements
1) Based on a valid and factual ground;
2) A notice of lockout led with the NCMB;
3) Notice of lockout vote to the NCMB, at least 24 hours
before such vote;
4) Lockout vote wherein at least a majority of the members of
the board of directors approve the holding of lockout through
secret balloting in a meeting called for the purpose;
5) Lockout vote report submitted at least 7 days before
intended date of lockout;
6) Cooling o period.
a) ULP = 15 days;
b) CBD = 30 days;
From date of notice of lockout is led.
7) 7 day waiting period or lockout ban after submission of
lockout vote report.
d) Assumption of Jurisdiction by the DOLE Secretary
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When, in his opinion, there exists a labor dispute causing or likely to
cause a strike or lockout in an industry indispensable to the national
interest, the SOLE may
1. assume jurisdiction over the dispute and decide it or
2. certify the same to the NLRC for compulsory arbitration.
In labor disputes adversely a ecting the continued operation of such
hospitals, clinics or medical institutions, it shall be the duty of
the striking union or locking-out employer to provide and maintain an
effective skeletal workforce for the duration of the strike or lockout.
The President of the Philippines shall not be precluded from
determining the industries that, in his opinion, are indispensable to
the national interest, and from intervening at any time and
assuming jurisdiction over any such labor dispute in order to settle
or terminate the same.
a. Industry indispensable to the national interest. — Sec 16,
Rule XXII, Book V, as created by DOLE Department Order
No. 040-H-13
i. hospital sector;
ii. electric power industry;
iii. water supply services, to exclude small water supply
services such as bottling and re lling stations;
iv. air tra c control; and
v. such other industries as may be recommended by the
National Tripartite Industrial Peace Council (TIPC).
b. E ects of assumption of jurisdiction.
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Syllabus-based Reviewer for the 2023 Bar
i. On intended or impending strike or lockout —
automatically enjoined even if a Motion for
Reconsideration is led.
Telecommuting Act
E
ii. On actual strike or lockout — strikers or locked out RA 11165
employees should immediately return to work and
employer should readmit them back.
1 De nition
iii. On cases filed or may be filed — All shall be
subsumed/absorbed by the assumed or certi ed case Refers to work from an alternative workplace with the use of
except when the order speci ed otherwise. The telecommunications and/or computer technologies.
parties to the case should inform the DOLE Secretary
of pendency thereof. 2 Telecommuting Program
An employer in the private sector may o er a telecommuting
Manggagawa ng Komunikasyon sa Pilipinas v. PLDT 2017
program to its employees on a voluntary basis, and upon such
terms and conditions as they may mutually agree upon.
WON the return-to-work order of the SOLE was rendered moot when
the NLRC upheld the validity of the redundancy program. Such terms and conditions shall not be less than the minimum
YES. When petitioner led its Motion for Execution on pursuant to labor standards set by law, and shall include
this Court's ruling there was no longer any existing basis for the 1) compensable work hours,
return-to-work order. This was because the SOLE's return-to-work
order had been superseded by the NLRC's Resolution. Hence, the 2) minimum number of work hours,
SOLE did not err in dismissing the motion for execution on the 3) overtime,
ground of mootness.
4) rest days, and
Garcia v. Philippine Airlines upholds the prevailing doctrine
5) entitlement to leave bene ts.
that even if a Labor Arbiter's order of reinstatement is reversed on
appeal, the employer is obligated "to reinstate and pay the wages of In all cases, the employer shall provide the telecommuting
the dismissed employee during the period of appeal until reversal by employee with relevant written information in order to
the higher court." adequately apprise the individual of the terms and conditions of
the telecommuting program, and the responsibilities of the
There is no order of reinstatement from a Labor Arbiter in the case
employee.
at bar, instead, what is at issue is the return-to-work order from the
SOLE.
3 Fair Treatment
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The employer shall ensure that the telecommuting employees are IV Post-Employment Termination of Contract of Migrant Workers
given the same treatment as that of comparable employees and are
given the same treatment as that of comparable employees working Termination of Employment by Employee
Employer-Employee Relationship
at the time employer's premises. All telecommuting employee shall:
Resignation vs. Constructive Dismissal
a) Receive a rate of pay, including overtime and night shift Tests to Determine Employer-Employee
di erential, and other similar monetary bene ts not lower Relationship Preventive Suspension
than those provided in applicable laws, and collective
bargaining agreements. Kinds of Employment Reliefs from Illegal Dismissal

b) Have the right to rest periods, regular holidays, and special Regular Retirement
nonworking days.
Casual
c) Have the same or equivalent workload and performance A Employer-Employee Relationship
standards as those of comparable workerat the employer's Probationary
premises. 1) It is in personam and involves the rendition of personal
Project service by the employee, and partakes of master and servant
d) Have the same access to training and career development
relationship.
opportunities as those of comparable workers at the
Seasonal 2) Its existence is a question of law and fact. In the 2016
employer's premises, and be subject to the same appraisal
policies covering these workers. Century Properties case, SC said that the employment status of
Fixed-Term
a person is defined and prescribed by law and not by what
e) Receive appropriate training on the technical equipment
Floating Status the parties say it should be. It can not be negated by expressly
at their disposal, and the characteristics and conditions of
repudiating it in a contract.
telecommuting.
Legitimate Subcontracting vs. Labor-Only
3) In the 2011 Tongko case, SC aptly described the primary and
f) Have the same collectible rights as the workers at the
Contracting controlling test in determining the existence of an ER-EE
employer's premises, and shall not be barred from
relationship as the control over the performance of the
communicating with workers' representatives. Termination of Employment by Employer task of the one providing the service.
The employer shall also ensure that measures are taken to prevent
Just Causes
the telecommuting employee from being isolated from the rest of Tests to Determine Employer-Employee
the working community in the company by giving the 1
Authorized Causes Relationship
telecommuting employee the opportunity to meet with colleagues
on a regular basis, and opportunity to meet with colleagues on a Due Process The Four-Fold Test
regular basis, and allowing access to company information.
1) Selection and Engagement of employees;

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2) Payment of Wages;
3) Power of Dismissal;
4) ⭐ Power of Control over employee’s conduct and over the
means, manner and method by which the work is to be
accomplished.
Economic Reality or the Two-Tiered Test
This test is used when there is no existing employment
contract.
1) The putative employer’s power to control the employee with
respect to the manner and methods by which the work is to be
accomplished; and
2) The underlying economic realities of the activity or
relationship, i.e. employee’s economic dependence on the
employer.
Depends upon the circumstances of the whole economic activity:
1) The broad extent to which the services performed are an
integral part of the employer’s business.
2) The limited extent of the worker’s investment in the
equipment and facilities.
3) The nature and high degree of control by the employer;
4) The worker’s limited opportunities for pro t and growth;
5) The small amount of initiative, skill, judgment or foresight
required for the success of the claimed independent enterprise;
6) The high degree of permanency and duration of relationship;
7) The degree of dependency of the worker upon the employer
for his continued employment.
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Lu v. Enopia 2017
The fact that petitioner had registered the respondents with SSS is
proof that they were indeed his employees. The coverage of the
Social Security Law is predicated on the existence of an EER.
It was established that petitioner exercised control over respondents.
The control test merely calls for the existence of the right to
control, and not necessarily the exercise thereof.
The payment of respondents' wages based on the percentage share
of the sh catch would not be su cient to negate the EER existing
between them.
Petitioner wielded the power of dismissal over respondents when he
dismissed them after they refused to sign the joint shing venture
agreement.
Reyes v. Doctolero 2017
In Mamaril v. The Boy Scout of the Philippines, there was no EER
between BSP and the security guards assigned to it by an agency
pursuant to a Guard Service Contract. In the absence of such
relationship, vicarious liability under Article 2180 of the Civil Code
cannot apply as against BSP. Similarly, we nd no EER between
MCS and respondent guards. The guards were merely assigned by
Grandeur to secure MCS' premises pursuant to their Contract of
Guard Services. Thus, MCS cannot be held vicariously liable for
damages caused by these guards' acts or omissions.
Loreche-Amit v. Cagayan De Oro Medical Center 2019
Syllabus-based Reviewer for the 2023 Bar
ECONOMIC REALITY TEST. The benchmark of economic
reality is the economic dependence of the worker on his employer.
WON Loreche-Amit was an employee of CDMC.
NO. CDMC does not exercise the power of control over petitioner.
Petitioner was working for two other hospitals aside from CDMC,
not to mention those other hospitals which she caters to when her
services are needed. Such fact evinces that petitioner controls her
working hours. On this note, relevant is the economic reality test.
Thus, the fact that petitioner continued to work for other hospitals
strengthens the proposition that petitioner was not wholly
dependent on CDMC.
Petitioner likewise admitted that she receives in full her 4% share in
the Clinical Section of the hospital regardless of the number of
hours she worked therein. The rule is that
a. where a person who works for another
b. performs his job more or less at his own pleasure,
c. in the manner he sees t,
d. not subject to de nite hours or conditions of work, and
e. is compensated according to the result of his e orts and not
the amount thereof,
no employer-employee relationship exists.
Fernandez v. Kalookan Slaughterhouse 2019
WON Fernandez was an employee of Kalookan Slaughterhouse.
YES. The Court in Masonic Contractor, Inc. v. Madjos ruled
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that the fact that the company provided identification cards
and uniforms and the vague a davit of the purported employer
were su cient evidence to prove the existence of EER.
Kalookan Slaughterhouse, through Tablit, was the one who engaged
petitioner, paid for his salaries, and in e ect had the power to
dismiss him. Further, Kalookan Slaughterhouse exercised control
over petitioner's conduct through De Guzman. To the mind of the
Court, Kalookan Slaughterhouse was petitioner's employer and it
exercised its rights as an employer through Tablit and De Guzman,
who were its employees.
2018 re
American Power Conversion Corp v. Lim
Quasi-Contract
We have this unique situation where respondent was hired directly
by APCC of the USA, but was being paid his remuneration by a
separate entity — APCP BV of the Philippines, and is supervised
and controlled by APCS from Singapore and APC Japan - all in
furtherance of APCC's objective of doing business here unfettered
by government regulation. For all legal purposes, APCC is
respondent's employer.
2 Kinds of Employment
ART 295. Regular and Casual Employment. — The provisions of
written agreement to the contrary notwithstanding and regardless of
the oral agreement of the parties, an employment shall be deemed to
be regular where the employee has been engaged to perform
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activities which are usually necessary or desirable in the usual
business or trade of the employer, except
a) where the employment has been xed for a speci c project
or undertaking the completion or termination of which has
been determined at the time of the engagement of the
employee or
b) where the work or service to be performed is seasonal in
nature and the employment is for the duration of the
season.
An employment shall be deemed to be casual if it is not covered by
the preceding paragraph:
Provided, That any employee who has rendered at least one year of
service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which
he is employed and his employment shall continue while such
activity exists.
a Regular
1) Employment is regular where the employee has been engaged
to perform activities which are usually necessary or desirable
in the usual business or trade of the employer.
2) A regular employee may either be:
a) Permanent. One who has an inde nite employment,
whether passing the probationary stage or not; or
b) Probationary.
3) Two kinds of regular employees
Syllabus-based Reviewer for the 2023 Bar
a) By the nature of their work. Usually necessary or
desirable in the usual trade or business of an employer.
b) By the length of service. Have rendered at least 1 year of
service whether continuous or not.
4) TEST of regularity. Reasonable connection between the
particular activity performed by the employee in relation to
the employer.
5) Repeated rehiring of a job for a xed period and the
continuing need for an employee’s service are su cient
evidence of the necessity and indispensability of an EE’s
service to the ER’s trade or business.
6) Exceptions to regular employment
a) Project;
b) Seasonal; and
c) Fixed Term.
Lu v. Enopia 2017
The primary standard for determining regular employment is the
reasonable connection between the particular activity performed by
the employee in relation to the usual trade or business of the
employer. Respondents' jobs as shermen-crew members of F/B
MG 28 were directly related and necessary to petitioner's deep-sea
shing business and they had been performing their job for more
than one year.
UST v. Samahang Manggagawa ng UST 2017
WON the CA correctly ruled that Pontesor, et al. are regular
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employees and, consequently, were illegally dismissed by petitioner.
YES. Petitioner repeatedly rehired respondents for various positions
in the nature of maintenance workers, for various periods spanning
the years 1990-1999. Pontesor, et al. fall under the second
category of regular employees. Accordingly, they should be deemed
as regular employees but only with respect to the activities for which
they were hired and for as long as such activities exist.
Pontesor, et al. were not project employees of petitioner. The
speci c undertakings or projects for which they were employed were
not clearly delineated. This is evidenced by the vagueness of the
project descriptions set forth in their respective CEAs, which states
that they were tasked "to assist" in various carpentry, electrical, and
masonry work.
Expedition Construction Corp. v. Africa 2017
First, respondents were engaged/hired by Expedition as garbage
truck drivers. Second, respondents received compensation from
Expedition for the services that they rendered to the latter. The fact
that respondents were paid on a per trip basis is irrelevant in
determining the existence of an employer-employee relationship
because this was merely the method of computing the proper
compensation due to respondents. Third, Expedition's power to
dismiss was apparent when work was withheld from respondents as
a result of the termination of the contracts with LGUs. Finally,
Expedition has the power of control over respondents in the
performance of their work.
Therefore, respondents should be accorded the presumption of
regular employment.
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Gerardo v. Bill Sender Corp. 2018
WON Geraldo was a regular employee of respondent.
YES. Geraldo was performing activities necessary or desirable in its
usual business or trade for without his services, its fundamental
purpose of delivering bills cannot be accomplished. He has been
delivering mail matters for the company for more than fourteen (14)
years.
In Gamboa, Jr. v. Villegas, We held that the payment on a
piece-rate basis does not negate regular employment. Payment by
the piece is just a method of compensation and does not de ne
the essence of the relations.
b Casual
1) An employee is considered casual if:
a) Employed to perform work merely incidental to the
trade or business of employer;
b) Employment is for a de nite period;
c) Employment status was made known at the time of
engagement.
2) If employed for a continuous or broken period of at least 1
year, he is deemed regular but only with respect to the
activity he is employed and as long as such activity exists. The
status of being regular casual is coterminous to the existence
of the activity.
3) There is no security of tenure for casual employees.
Syllabus-based Reviewer for the 2023 Bar
Paragele v. GMA 2020
Only casual employees performing work that is neither necessary
nor desirable to the usual business and trade of the employer are
required to render at least one (1) year of service to attain regular
status. Employees who perform functions which are necessary and
desirable to the usual business and trade of the employer attain
regular status from the time of engagement.
c Probationary
1) A probationary employee is one, who, for a given period of
time, is being observed and evaluated to determine whether or
not he is quali ed for a permanent position (Pasamba v.
NLRC)
2) One who is placed in a trial period whose performance is
assessed whether satisfactory or not. Duration is generally 6
months except
a) Covered by an apprenticeship agreement stipulating a
longer period;
b) Manual of regulations of private schools which provide
for a longer period.
i) Elementary and Secondary. Not more than 3 years of
satisfactory service;
ii) Tertiary. Not more than 6 semesters or 9
trimesters of satisfactory service.
3) If the employee is not apprised of the STANDARDS that he
must meet in order to hurdle probation, then he is deemed
regular after 6 months.
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Labor Law and Social Legislation
4) When probationary EE considered regular?
a) Allowed to continue work beyond probationary period;
b) NO evaluation conducted and no basis for termination;
presumed to have been satisfactorily complied;
c) Proby NOT informed of the standards required to qualify
as regular EE;
d) EE successfully passes the period of probation.
5) The adequate performance of such duties and responsibilities
constitute the inherent and implied standard for
regularization. (Abbott Laboratories v. Alcaraz 2014 En
Banc)
6) When probationer informed of required standards. —
Ideally, employers should immediately inform a probationary
employee of the standards for his regularization from day one.
However strict compliance is not required. The true test of
compliance is one of reasonableness. As long as he is given a
reasonable time and opportunity to be made fully aware of
what is expected of him during the early phases of the
period, the law is met. (Enchanted Kingdom v. Verzo 2015)
7) When probation may exceed 6 months. — When the
parties agree otherwise, such as when the same is established by
company policy or when the same is required by the nature of
work as where one must learn a particular kind of work such
as selling, or when the job requires certain quali cations, skills,
experience or training.
Where the extension of employee’s probation was ex gratia,
an act of liberality on the part of his employer to a ord the
employee a second chance to make good after having initially
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failed to prove his worth as an employee. (Mariwasa v.
Leogardo, Jr.)
d Project
Umali v. Hobbywing Solutions Inc. 2018
The general rule remains that an employee who was su ered to work
for more than the legal period of six (6) months of
probationary employment or less shall, by operation of law,
become a regular employee.
WON Umali was terminated without cause when she was informed
that the period of her probationary employment had already ended
and her services were no longer needed.
YES. Petitioner commenced working for the respondent on June
19, 2012 until February 18, 2013. By that time, however, she has
already become a regular employee.
8) RA 10869 (JobStart Trainee). — A JobStart trainee shall
no longer be required to undergo a probationary period at
the end of the internship phase should the trainee be hired in
the same establishment upon completion of the program.
Three (3) Phases
a) JobStart Life Skills Training. 10 days with one life
skill taught each day;
b) JobStart Technical Training. Up to 3 months and
is optional.
c) JobStart Internship. Up to 3 months or 600 hours.
9) RA 10917 amending RA 9547, 7323 or SPES Act. —
Period of employment shall be from twenty (20) to
seventy-eight (78) working days only, except that during
Christmas vacation, employment shall be from ten (10) to
fteen (15) days which may be counted as part of the
Syllabus-based Reviewer for the 2023 Bar
students’ probationary period should they apply in the
same company or agency after graduation.
1) Where employment has been xed for a specific project or
undertaking, the completion of which has been determined
at the time of engagement of EE. Elements are as follows:
a) employment has been xed for a speci c project or
undertaking; AND
b) the completion or termination of which has been
determined at the time of engagement of EE.
2) Specific project or undertaking is an activity which is NOT
commonly or habitually performed or such type of work
which is not done on a daily basis, but only for a speci c
duration of time until the completion of the project.
3) When project EE deemed regular?
a) When there is continuous rehiring even after cessation
of a project;
b) When the tasks performed by the alleged project EE are
vital, necessary and indispensable to the usual business or
trade of ER.
4) While there was repeated re-hiring, the hiring was NOT,
however, continuous, as in fact there was a lapse of 33
months after the next project, the employee is a project and
not regular. (Alcatel PH v. Relos)
5) However, if the employee is successively re-engaged to
perform the same kind of work not intermittently, but
continuously, contract after contract, month after
month involving the same task indicates the necessity and
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desirability of the work in the usual business of the company.
(Manalo v. TNS Phil. 2014)
E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc
The decisive determinant in project employment is the
activity that the employee is called upon to perform. Prior
notice of termination is not part of procedural due process if the
termination is brought about by the completion of the contract or
phase thereof for which the project employee was engaged.
WON Ando was a regular employee and was thereby illegally
dismissed by EGI.
NO. The activities of project employees may or may not be usually
necessary or desirable in the usual business or trade of the employer.
In ALU-TUCP v. NLRC, two (2) categories of project employees
were distinguished:
Firstly, a project could refer to a particular job or undertaking
that is within the regular or usual business of the employer
company, but which is distinct and separate, and identi able as
such, from the other undertakings of the company. Such job or
undertaking begins and ends at determined or determinable
times. The typical example of this rst type of project is a
particular construction job or project of a construction
company.
Secondly, a particular job or undertaking that is not within the
regular business of the corporation. Such a job or undertaking
must also be identi ably separate and distinct from the ordinary
or regular business operations of the employer.
In this case, the three project employment contracts signed by Ando
explicitly stipulated the agreement "to engage his services as a Project
Worker."
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The fact that Ando was required to render services necessary or
desirable in the operation of EGI's business for more than a year
does not in any way impair the validity of his project employment
contracts. The rehiring of construction workers on a
project-to-project basis does not confer upon them regular
employment status as it is only dictated by the practical
consideration that experienced construction workers are more
preferred.
Herma Shipyard Inc. v. Oliveros 2017
The principal test in determining whether particular employees were
engaged as project-based employees, as distinguished from regular
employees, is whether they were assigned to carry out a speci c
project or undertaking, the duration and scope of which was
speci ed at, and made known to them, at the time of their
engagement.
Repeated rehiring of project employees to di erent projects
does NOT ipso facto make them regular employees.
WON respondents are regular employees of petitioner and not project
employees.
NO. Here, for each and every project respondents were hired, they
were adequately informed of their employment status as
project-based employees at least at the time they signed their
employment contract. While the tasks assigned to the respondents
were indeed necessary and desirable in the usual business of Herma
Shipyard, the same were distinct, separate, and identifiable
from the other projects or contract services.
The rule that employees initially hired on a temporary basis may
Syllabus-based Reviewer for the 2023 Bar
become permanent employees by reason of their length of service is
not applicable to project-based employees.
In Mercado Sr. v. NLRC, this court ruled that the proviso in the
second paragraph of Article 280, providing that an employee who
has served for at least one year, shall be considered a regular
employee, relates only to casual employees and not to project
employees.
Innodata Knowledge Services v. Inting 2017
In order to safeguard the rights of workers against the arbitrary use
of the word "project" which prevents them from attaining regular
status, employers claiming that their workers are project employees
have the burden of showing that:
a) the duration and scope of the employment was speci ed at
the time they were engaged; and
b) there was indeed a project.
WON respondent employees, as mere project employees, were validly
placed on floating status and, therefore, were validly dismissed.
NO. While IKSI was able to show the presence of a speci c project,
the ACT Project, in the contract and the alleged duration of the
same, it failed to prove, however, that respondents were in reality
made to work only for that speci c project indicated in their
employment documents and that it adequately informed them of
the duration and scope of said project at the time their services were
engaged.
The fact is IKSI actually hired respondents to work, not only on the
ACT Project, but on other similar projects such as the Bloomberg.
When respondents were required to work on the Bloomberg
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project, without signing a new contract for that purpose, it was
already outside of the scope of the particular undertaking for which
they were hired; it was beyond the scope of their employment
contracts. This act by IKSI indubitably brought respondents
outside the realm of the project employees category.
e Seasonal
1) Employment is for the duration of a certain season.
a) They are considered regular EEs if called to work from
time to time, during o -season and are merely considered
as on leave of absence without pay until they are
reemployed.
b) If EE has worked only for 1 season, he is not regular.
c) Enjoys security of tenure within the duration of the
season.
d) Their employment is never terminated but merely
suspended.
2) Requisites for SEASONAL undertaking
a) Dependent on climatic or natural causes. Operations
must be limited to a regular, annual, or recurring part/s of
each year and regularly closes during the remainder of the
year.
b) Activity is agricultural where the crops are available
only at certain times of the year.
3) Deep sea shing business is not a seasonal undertaking.
Catching sh is not seasonal especially where the boat crew,
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although employed on a per trip basis, has been working for 12
years. (Poseidon Fishing v. NLRC)
Universal Robina Sugar Milling Corp v.
2018
Nagkahiusang Mamumuo sa Ursumco-NFL
Notwithstanding the stipulations in an employment contract or a
duly negotiated CBA, the employment status of an employee is
ultimately determined by law.
WON URSUMCO's regular seasonal employees are regular
employees.
YES. Seasonal employment becomes regular seasonal employment
when the employees are called to work from time to time. On the
other hand, those who are employed only for a single season remain
as seasonal employees. As a consequence of regular seasonal
employment, the employees are not considered separated from
service during the o -milling season, but are only temporarily laid
o or on leave until re-employed. Nonetheless, in both regular
seasonal employment and seasonal employment, the employee
performs no work during the o -milling season.
Here, the concerned URSUMCO employees are performing work
for URSUMCO even during the o -milling season as they are
repeatedly engaged to conduct repairs on the machineries and
equipment.
f Fixed-term
1) EE performing work that is usually necessary and desirable
in the business of ER wherein the employment contract
stipulates the duration or term of employment.
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2) Not permanent, but EE still enjoys security of tenure during
the pre-determined term.
3) Term employment should not circumvent security of tenure.
This is shown by the criteria laid by the BRENT
DOCTRINE:
a) Must not be entered merely to circumvent the EE’s right
to security of tenure;
b) The xed period was knowingly and voluntarily
agreed upon without any force, duress or improper
pressure and absent any other circumstances vitiating
consent;
c) Must satisfactorily appear that the ER and EE dealt with
each other on more or less equal terms with no moral
dominance exercised by the former to the latter.
4) Why allow fixed term employment? It is an essential and
natural appurtenance recognized by SC. i.e.
a) Overseas workers;
b) College Deans and Department Heads.
5) What determines term employment? The decisive
determinant should not be the activities the EE is called upon
to perform, but the day certain agreed upon for the
commencement and termination of the employment
relationship.
E. Ganzon Inc. v. Ando, Jr. 2017 Special En Banc
Project employment should not be confused and interchanged with
xed-term employment: While the former requires a project as
restrictively de ned above, the duration of a xed-term employment
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agreed upon by the parties may be any day certain, which is
understood to be "that which must necessarily come although it
may not be known when."
g Floating Status
Ibon v. Genghis Khan Security Services Inc. 2017
An employer must assign the security guard to another posting
within six (6) months from his last deployment, otherwise, he would
be considered constructively dismissed; and the security guard must
be assigned to a speci c or particular client. A general
return-to-work order does not su ce.
Superior Maintenance Services v. Bermeo 2018
Article 301 of the Labor Code was applied only by analogy to
prevent the oating status of employees hired by agencies from
becoming inde nite. This temporary o -detail of employees is not a
result of suspension of business operations but is merely a
consequence of lack of available posts with the agency's subsisting
clients.
WON Bermeo was constructively dismissed from work.
NO. In Salvaloza v. NLRC, temporary o -detail or oating status
was de ned as that "period of time when security guards are in
between assignments or when they are made to wait after being
relieved from a previous post until they are transferred to a new
one."
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Here, when Bermeo led his complaint for constructive dismissal on
September 5, 2008, it was only a week after his unsuccessful
assignment in French Baker on August 28, 2008. Even if the
reckoning date would be his last assignment at Trinoma Mall, which
ended on March 30, 2008, it is still less than the six-month period
allowed by Article 301 for employees to be placed on oating status.
Thus, the ling of his complaint for constructive dismissal is
premature. Besides, it is unrebutted that the petitioners contacted
Bermeo for a new assignment even after the latter has led a
complaint for constructive dismissal.
Legitimate Subcontracting vs. Labor-Only
3 Contracting
DOLE DO No. 174 s. 2017
a Elements
1) There is "labor-only" contracting where the person
supplying workers to an employer
a) does not have substantial capital or investment in the
form of tools, equipment, machineries, work premises,
among others, and
b) the workers recruited and placed by such person are
performing activities which are directly related to
the principal business of such employer.
2) Labor-only contracting, which is totally prohibited, refers
to:
a) an arrangement where
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i) The contractor or subcontractor does not have
substantial capital, OR
ii) The contractor or subcontractor does not have
investments in the form of tools, equipment,
machineries, supervision, work premises, among
others, AND
iii) The contractor's or subcontractor's employees
recruited and placed are performing activities which
are directly related to the main business
operation of the principal; OR
b) The contractor or subcontractor does not exercise the
right to control over the performance of the work of the
employee.
3) "Substantial capital" — refers to paid-up capital
stock/shares at least P5M in the case of corporations,
partnerships and cooperatives; in the case of single
proprietorship, a net worth of at least P5M.
4) Contracting or subcontracting shall only be ALLOWED if
all the following circumstances concur:
a) The contractor or subcontractor is engaged in a distinct
and independent business and undertakes to perform
the job or work on its own responsibility, according to its
own manner and method;
b) The contractor or subcontractor has substantial capital
to carry out the job farmed out by the principal on his
account, manner and method, investment in the form of
tools, equipment, machinery and supervision;
c) In performing the work farmed out, the contractor or
subcontractor is free from the control and/or
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direction of the principal in all matters connected with
the performance of the work except as to the result
thereto; and
d) The Service Agreement ensures compliance with all
the rights and bene ts for all the employees of the
contractor or subcontractor under the labor laws.
b Trilateral Relationship
In legitimate contracting, there exists a trilateral relationship
under which there is a contract for a speci c job, work or service
between the principal and the contractor or subcontractor, and a
contract of employment between the contractor or subcontractor
and its workers. Hence, there are three parties involved in these
arrangements,
1) the principal which decides to farm out a job or service
to a contractor or subcontractor,
2) the contractor or subcontractor which has the capacity
to independently undertake the performance of the job,
work or service, and
3) the contractual workers engaged by the contractor or
subcontractor to accomplish the job work or service.
c Solidary Liability
Effects of Labor-only Contracting
1) Principal is deemed direct employer of contractor’s
employees;
2) Contractor will be treated as agent of principal;
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3) Principal’s liability is comprehensive — all liabilities
under labor laws, not only to unpaid wages.
Nestle Philippines Inc. v. Puedan, Jr 2017
WON ODSI is a labor-only contractor of NPI, and consequently,
NPI is respondents' true employer and, thus, deemed jointly and
severally liable with ODSI for respondents' monetary claims.
NO. A closer examination of the Distributorship Agreement reveals
that the relationship of NPI and ODSI is not that of a principal and
a contractor, but that of a seller and a buyer/re-seller.
The stipulations in the Distributorship Agreement do not operate
to control or x the methodology on how ODSI should do its
business as a distributor of NPI products, but merely provide rules
of conduct or guidelines towards the achievement of a mutually
desired result — which in this case is the sale of NPI products to the
end consumer.
Thus, the foregoing circumstances show that ODSI was not a
labor only contractor of NPI.
Valencia v. Classique Vinyl Products Corp 2017
WON Valencia is an employee of CMS and not Classique Vinyl.
YES. Valencia's selection and engagement was undertaken by CMS
and conversely, this negates the existence of such element insofar as
Classique Vinyl is concerned.
Here, Classique Vinyl presented the CMS’s Certi cate of
Registration with the DTI and license as a private recruitment and
placement agency from the DOLE. Indeed, these documents are not
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conclusive evidence of the status of CMS as a contractor. However,
such fact of registration of CMS prevented the legal presumption of
it being a mere labor-only contractor from arising.
The facts failed to establish that there is any circumvention of labor
laws as to call for the creation by the statute of an EER between
Classique Vinyl and Valencia.
Mago et al. v. Sunpower Manufacturing Ltd. 2018
A contractor is presumed to be a labor-only contractor, unless the
contractor is able to discharge the burden of overcoming this
presumption.
WON Jobcrest is a legitimate and independent contractor.
YES. Since the petitioners do not dispute that Jobcrest was a
duly-registered contractor under Section 11 of DOLE DO No.
18-02, there is no operative presumption that Jobcrest is a labor-only
contractor.
Conversely, the fact of registration with DOLE does not necessarily
create a presumption that Jobcrest is a legitimate and independent
contractor. The petitioners must overcome the presumption of
regularity accorded to the o cial act of DOLE.
Jobcrest has substantial capital.
Jobcrest had substantial capital to perform the business process
services it provided Sunpower. It has its own o ce, to which the
petitioners admittedly reported to, possessed numerous assets for
the conduct of its business, and even continuously earned pro t as a
result.
Sunpower does not control the manner by which the
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petitioners accomplished their work.
The fact that the petitioners were working within the premises of
Sunpower, by itself, does not negate Jobcrest's control over the
means, method, and result of the petitioners' work. The petitioners,
despite working in Sunpower's plant for most of the time, admit
that whenever they le their leave application, or whenever required
by their supervisors in Jobcrest, they report to the Jobcrest o ce.
Designated on-site supervisors from Jobcrest were the ones who
oversaw the performance of the employees' work within the
premises of Sunpower.
Abuda et al. v. L. Natividad Poultry Farms 2018
WON the maintenance personnel in L. Natividad Poultry Farms can
be considered as its regular employees.
YES. San Mateo and petitioner Del Remedios were not
independent contractors but labor-only contractors since they did
not have substantial investment in the form of tools, equipment, or
work premises. As labor-only contractors, they were considered to
be agents of L. Natividad.
Phil. Pizza Inc. v. Porras 2018
Although not a conclusive proof of legitimacy, the certification by the
DOLE nonetheless prevents the presumption of labor-only contracting
from arising. It gives rise to a disputable presumption that the
contractor's operations are legitimate.
CBMI is a legitimate job contractor, and consequently, the
employer of respondents. CBMI retained control over
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respondents, as shown by the deployment of at least one (1) CBMI
YES. Petitioners' duties were reasonably connected to the very
supervisor in each Pizza Hut branch to regularly oversee, monitor,
business of CCBPI. They were indispensable to such business
and supervise the employees' attendance and performance.
because without them the products of CCBPI would not reach its
Respondents applied for work with CBMI and were consequently
customers.
selected and hired by the latter.
In Pacquing v. Coca-Cola Philippines, Inc., the Court ruled that the
sales route helpers of CCBPI were its regular employees. In this case,
petitioners had similarly undertook to bring CCBPI's products to
Lingnam Restaurant v. Skills & Talent Employment 2018
its customers at their delivery points.
The legitimate job contractor provides services, while the
WON MDTC is an independent contractor and employers of
labor-only contractor provides only manpower. The legitimate job
petitioners.
contractor undertakes to perform a speci c job for the principal
employer, while the labor-only contractor merely provides the NO. CCBPI's contention that MDTC was a legitimate labor
personnel to work for the principal employer. contractor and was the actual employer of petitioners does not hold
water.
WON STEP is engaged in labor-only contracting.
YES. STEP merely acted as a placement agency providing
manpower to Lingnam Restaurant. The service rendered by STEP Termination of Employment by
in favor of Lingnam Restaurant was not the performance of a B
Employer
speci c job, but the supply of personnel.
1 Just Causes
Lingat v. Coca-Cola Bottlers Phils, Inc. 2018
To determine whether one is an independent contractor, the ART 297. Termination by Employer. — An employer may terminate
possession of substantial capital is only one element. It is necessary an employment for any of the following causes:
to prove not only substantial capital or investment in tools,
a) Serious misconduct or willful disobedience by the
equipment, work premises, among others, but ALSO that the work
employee of the lawful orders of his employer or
of the employee is directly related to the work that contractor is
representative in connection with his work;
required to perform for the principal.
b) Gross and habitual neglect by the employee of his
WON petitioners were regular employees of CCBPI.
duties;
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c) The order violated must be reasonable, lawful, and i) There must be an act, omission, or
c) Fraud or willful breach by the employee of the trust
made known to the employee; and concealment;
reposed in him by his employer or duly authorized
representative; d) The order must pertain to the duties which he has ii) The act, omission or concealment involves a
been engaged to discharge. breach of legal duty, trust, or con dence justly
d) Commission of a crime or o ense by the employee
reposed;
against the person of his employer or any immediate 3) Gross and Habitual Neglect of Duty. —
member of his family or his duly authorized representatives; iii) It must be committed against the employer or
a) Gross Neglect refers to the absence of that diligence
and his/her representative; and
that an ordinary prudent man would use in his/her
e) Other causes analogous to the foregoing. own a airs. iv) It must be in connection with the employees'
work.
b) Habitual Neglect refers to repeated failure to
1) Serious Misconduct. — Misconduct is improper or perform one's duties over a period of time, depending c) Requisites of Breach of Trust
wrong conduct. It is a transgression of some established and upon the circumstances. i) The employee holds a position of trust and
de nite rule of action, a forbidden act, a dereliction of duty,
GR: Neglect of duty must be BOTH Gross and con dence;
willful in character and implies wrongful intent and not
Habitual. ii) There exists an act justifying the loss of trust and
merely error in judgment. It must be in connection with the
EE’s work to constitute just cause for his separation. EXC: Even if NOT habitual, but there is con dence;
SUBSTANTIAL DAMAGE or injury to iii) The employee’s breach must be willful;
a) There must be misconduct;
the ER.
iv) The act must be in relation to his work which
b) The misconduct must be of such grave and
4) Fraud or Willful Breach of Trust. — would render him un t to continue.
aggravated character;
a) There are two (2) classes of positions of trust. d) Requisites of Loss of Confidence
c) It must relate to the performance of the employee's
duties; AND i) The first class consists of managerial i) There must be an act, omission or
employees, or those vested with the power to lay concealment;
d) There must be showing that the employee becomes down management policies; and
ii) The act, omission or concealment justi es the
un t to continue working for the employer.
ii) The second class consists of cashiers, auditors, loss of trust and con dence of the employer to
2) Willful Disobedience or Insubordination. — property custodians or those who, in the normal the employee;
and routine exercise of their functions, regularly
a) There must be disobedience or insubordination; iii) The employee concerned must be holding a
handle significant amounts of money or
b) The disobedience or insubordination must be willful position of trust and con dence;
property.
or intentional characterized by a wrongful and iv) The loss of trust and con dence should not be
b) Requisites of Fraud
perverse attitude; simulated;

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v) It should not be used as a subterfuge for causes
which are improper, illegal, or unjusti ed; and
vi) It must be genuine and not a mere afterthought
to justify an earlier action taken in bad faith.
5) Commission of a Crime. — By the employee against the
person of his employer or his immediate family or authorized
representatives.
a) There must be an act or omission
punishable/prohibited by law; and
b) The act or omission was committed by the employee
against the person of
i) employer,
ii) any immediate member of his/her family, or
iii) his/her duly authorized representative.
6) Analogous Causes. — No act or omission shall be
considered as analogous cause unless expressly speci ed in the
company rules and regulations or policies.
a) Abandonment is the deliberate and unjusti ed
refusal of an employee to resume his employment.
Two factors should be present:
i) the failure to report for work or absence
without valid or justi able reason; and
ii) a clear intention to sever EER — manifested by
overt acts from which it may be deduced that the
employees have no more intention to work.
b) Sexual Harassment. — The gravamen of the o ense
is not the mere violation of one’s sexuality, but the
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abuse of power by the employer who has a duty to
protect his employee against over-sex.
c) Gross Ine ciency or poor performance. —
i) Employer has set standards of performance;
ii) Standards are reasonable and in connection with
employee’s work; AND
iii) Proof that EE failed to meet the standards despite
given reasonable opportunity to meet the same.
d) Drug use or abuse. — the law speci es that the
procedure shall employ two testing methods, i.e.,
the screening test and the con rmatory test. (Nacague
v. Sulpicio Lines 2010)
e) Attitude Problem. — An employee who cannot get
along with his co-employees is detrimental to the
company for he can upset and strain the working
environment. It is a situation analogous to loss of
trust and confidence that must be duly proved by
the employer. (Heavylift Manila v. CA)
f) Enforcement of union security clause. —
i) The union security clause is applicable;
ii) The bargaining union is requesting for the
termination of employment due to enforcement
of the clause in the CBA; AND
iii) There is su cient evidence to support the
union’s decision to expel the employee from the
union. (Slord Development v. Noya 2019)
g) Commission of prohibited acts during strike. —
i) A worker merely participating in an illegal strike
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may not be terminated from employment. It is
only when he commits illegal acts during a
strike that he may be declared to have lost
employment status. (Solidbank v. Gamier 2010)
ii) A union o cer who knowingly participates in an
illegal strike is deemed to have lost his
employment status, but a union member who is
merely instigated or induced to participate in the
illegal strike is more benignly treated. (Escario v.
NLRC 2010)
Sterling Paper Products Enterprises
2017
v. KMM-Katipunan
The utterance of obscene, insulting or o ensive words against a
superior is not only destructive of the morale of his co-employees
and a violation of the company rules and regulations, but also
constitutes gross misconduct.
WON Esponga was validly dismissed for serious misconduct.
YES. In de La Cruz v. NLRC, the dismissed employee shouted,
"Sayang ang pagka-professional mo!" and "Putang ina mo" at the
company physician when the latter refused to give him a referral slip.
Likewise, in Autobus Workers' Union (AWU) v. NLRC, the
dismissed employee told his supervisor "Gago ka" and taunted the
latter by saying, "Bakit anong gusto mo, tang ina mo."
Moreover, in Asian Design and Manufacturing Corporation
v. Deputy Minister of Labor, the dismissed employee made false
and malicious statements against the foreman (his superior).
In Reynolds Philippines Corporation v. Eslava, the dismissed
employee circulated several letters to the members of the company's
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board of directors calling the executive vice-president and general
manager a "big fool," "anti-Filipino".
Hence, it is well-settled that accusatory and in ammatory
language used by an employee towards his employer or
superior can be a ground for dismissal or termination.
Transglobal Maritime Agency v. Chua 2017
There must be reasonable proportionality between, on the one
hand, the willful disobedience by the employee and, on the other
hand, the penalty imposed therefor.
WON Chua was validly dismissed for insubordination.
NO. By virtue of the POEA-SEC, Chua is indeed bound to obey
the lawful commands of the captain of the ship, but only as long as
these pertain to his duties.There is no relevance to the order to sign
the documents in Chua's performance of his duty as a seaman.
To amount to a valid dismissal, an erring seafarer must be handed a
written notice of the charge against him and must be given the
opportunity to explain himself — unless, of course, there is a clear
and existing danger against the safety of the crew or the vessel in
which case notice may be dispensed with.
Mamaril v. Red System Company 2018
WON Mamaril was illegally dismissed by Red System, and is
consequently entitled to reinstatement and full backwages; and
NO. Mamaril was validly dismissed on account of his willful
disobedience of the lawful orders of Red System.
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Red System was not remiss in reminding its drivers of the
importance of abiding by their safety regulations. Notably, Mamaril
violated Red System's safety rules twice, and caused damage
amounting to over Php 40,000.00. To make matters worse, he even
deliberately and willfully concealed his transgressions.
Alaska Milk v. Ponce 2017
WON Ponce was guilty of gross and habitual neglect of duties.
NO. Fault cannot rest upon Ponce's shoulders alone, inasmuch as
satisfactory completion of the assigned tasks was subject to an
interplay of factors beyond his sole control. The fact that Ponce
admitted to having been delayed in some of the tasks assigned to
him does not establish gross and habitual neglect of duties.
WON Ponce can be terminated for loss of trust and confidence.
YES. As regards a managerial employee, the mere existence of a basis
for believing that such employee has breached the trust of his
employer would su ce for his dismissal.
Ponce held the position of Director for Engineering Services and
that he was in charge of managing AMC's Engineering Department.
Hence, he belongs to the rst class of employees who occupy a
position of trust and con dence.
The Court rules that his dismissal from employment is justi ed.
First, The opening sentence of Ponce's R/A e-mail readily exposes
the attendant willfulness in his act. Second, the act of soliciting
receipts from colleagues constitutes dishonesty, inimical to AMC's
interests, for the simple reason that Ponce would be collecting
receipted allowance from expenses he did not actually incur. Third,
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the R/A e-mail betrays a truly sinister purpose which AMC had a
right to guard against.
Bravo v. Urios College 2017
WON Bravo was properly dismissed for a just cause.
YES. Petitioner's act in assigning to himself a higher salary rate
without proper authorization is a clear breach of the trust and
con dence reposed in him. In addition, there was no reason for the
Comptroller's O ce to undertake the preparation of its own
summary table because this was a function that exclusively pertained
to the Human Resources Department.
Panaligan v. Phyvita Enterprises 2017
WON there exists just and valid cause for the termination of
PANALIGAN, et al.'s, employment by PHYVITA.
NO. No direct evidence was presented to link PANALIGAN, et al.,
to the theft that they allegedly committed.
Taking into consideration the fact that the DOLE-NCR conducted
an inspection of the respondent's premises on as a result of the labor
complaint led by PANALIGAN, et al., and they were implicated in
the alleged theft incident only thereafter, a reasonable inference can
be made that PANALIGAN, et al.'s, termination of employment
may have been indeed a retaliatory measure designed to coerce
them into withdrawing their complaint for underpayment of wages
and nonpayment of other labor standard bene ts. Such an act is
proscribed by Article 118 of the Labor Code.
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Aluag v. BIR Multi-Purpose Cooperative 2017
WON BIRMPC had just cause to terminate Aluag's employment.
YES. One of the infractions that BIRMPC cited in justifying
Aluag's dismissal is her failure to deposit checks on due dates,
pursuant to a member/debtor's request. The task of depositing
checks on due dates de nitely falls within Aluag's scope of
responsibilities.
BIRMPC had ample reason to lose the trust and con dence it
reposed upon her and thereby, terminate her employment.
Gaite v. Filipino Society of Composers 2018
WON Gaite was validly dismissed due to loss of trust and
confidence.
YES. Gaite's actuations constitute serious misconduct. First, not
only is the amount involved herein a staggering amount of P17.7M,
the alleged reallocation violated an express provision of the
company's Distribution Rules. Second, Gaite committed said
transfer in the performance of her duties as General Manager of
FILSCAP. Third, because of this grave infraction causing the
depletion of the company's Special Accounts held in trust for the
rightful copyright owners, Gaite's ability to duly perform and
accomplish her duties and responsibilities as General Manager has
been seriously put into question.
On the second ground for termination, the Court nds that
FILSCAP validly terminated Gaite's employment on the ground of
loss of trust and con dence.
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Maula v. Ximex Delivery Express 2017
Dismissal from employment has two facets: first, the legality of the
act of dismissal, which constitutes substantive due process; and,
second, the legality of the manner of dismissal, which constitutes
procedural due process.
ON SERIOUS MISCONDUCT
While this Court held in past decisions that accusatory and
in ammatory language used by an employee to the employer or
superior can be a ground for dismissal or termination, the
circumstances peculiar to this case nd the previous rulings
inapplicable. The admittedly insulting and unbecoming language
uttered by petitioner to the HR Manager should be viewed with
reasonable leniency in light of the fact that it was committed under
an emotionally charged state. Indeed, there was only lapse in
judgment rather than a premeditated de ance of authority.
ON TOTALITY OF INFRACTIONS
In Merin v. NLRC, this Court expounded on the principle of
totality of infractions as follows:
The totality of infractions or the number of violations
committed during the period of employment shall be
considered in determining the penalty to be imposed upon an
erring employee. The o enses committed by petitioner should
not be taken singly and separately.
Here, respondent cannot invoke the principle of totality of
infractions considering that petitioner's alleged previous acts of
misconduct were not established in accordance with the
requirements of procedural due process.
Syllabus-based Reviewer for the 2023 Bar
Evic Human Resource Mgmt v. Panahon 2017
WON there was just cause in dismissing Panahon.
NO. The Court nds the Crew Behavior Report sorely inadequate
in meeting the required quantum of proof to discharge petitioners'
burden. For one, the statements contained therein were
uncorroborated and self-serving. No other evidence was presented
to support the statements of the Captain. In Skippers United
Pacific, Inc. v. NLRC, the Court did not give weight and credence
to the uncorroborated Chief Engineer's Report which purportedly
speci ed the causes for the seafarer's dismissal. In
Maersk-Filipinas Crewing, Inc. v. Avestruz, the Court likewise
disregarded the uncorroborated and self-serving electronic mails of
the ship captain as proof of the seafarer's supposed neglect of duty
and perverse and wrongful attitude.
Here, while the report was signed by four (4) crew members, the
statements contained therein were, as correctly observed by the CA,
based on acts witnessed only by Captain Buton.
Incompetence or ine ciency, as a ground for dismissal, is
understood to mean the failure to attain work goals or work quotas,
either by failing to complete the same within the allotted reasonable
period, or by producing unsatisfactory results.
Petitioners failed to show that respondent willfully or deliberately
caused the alleged accident during the mooring operations or that
respondent repeatedly committed mistakes or repeatedly failed to
perform his duties. As regards the charge of intoxication, Section
33(6) of the POEA SEC provides that drunkenness must be
committed while on duty to merit dismissal from employment.
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Here, respondent was admittedly o duty when he was allegedly
caught by the master drinking on board.
Malcaba et al. v. Prohealth Pharma Phils. 2018
While this Court recognizes the inherent right of employers to
discipline their employees, the penalties imposed must be
commensurate with the infractions committed. Dismissal of
employees for minor and negligible o enses may be considered as
illegal dismissal.
WON Nepomuceno and Palit-Ang were illegally dismissed.
YES. For an act to be considered a loss of trust and con dence, it
must be first, work-related, and second, founded on clearly
established facts.
The breach of trust must likewise be willful. Nepomuceno alleges
that he was illegally dismissed merely for his failure to inform his
superiors of the actual dates of his vacation leave.
Nepomuceno turned over all of his pending work to a reliever
before he left for Malaysia. He was able to reach his sales quota and
surpass his sales target even before taking his vacation leave.
Respondents did not su er any nancial damage as a result of his
absence. This was also petitioner Nepomuceno's rst infraction in
his nine (9) years of service with respondents. None of these
circumstances constitutes a willful breach of trust on his part.
The penalty of dismissal, thus, was too severe for this kind of
infraction.
Palit-Ang's failure to immediately give the money to Gamboa was
not the result of a perverse mental attitude but was merely because
she was busy at the time. Neither did she pro t from her failure to
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immediately give the cash advance for the car tune-up nor did
respondents su er nancial damage by her failure to comply. The
severe penalty of dismissal was not commensurate to her infraction.
Claudia’s Kitchen Inc. v. Tanguin 2017
In abandonment, absence must be accompanied by overt acts
unerringly pointing to the fact that the employee simply does not
want to work anymore. Mere absence or failure to report for work,
even after a notice to return to work has been served, is not enough
to amount to an abandonment of employment.
Here, there was no abandonment on the part of respondent.
Records are bereft of any indication that Tanguin's failure to report
for work was with a clear intent to sever her employment
relationship with the petitioners. Moreover, Tanguin's act of ling a
complaint for illegal dismissal with prayer for reinstatement negates
any intention to abandon her employment.
Mehitabel Inc v. Alcuizar 2017
The ling of a complaint for illegal dismissal does not ipso facto
foreclose the possibility of abandonment. It is not the sole indicator
in determining whether or not there was desertion. Other
circumstances surrounding the case must be taken into account in
resolving the issue of whether or not there was abandonment.
WON Alcuizar was dismissed by Mehitabel.
NO. The publications were made through sheer inadvertence, and
that the vacancy is actually for the position of Purchasing O cer,
rather than Purchasing Manager.
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Alcuizar was informed of the error committed, and that it was made
clear to him that he was never terminated from service at that time
in spite of his poor performance.
WON Alcuizar abandoned his employment.
YES. Respondent's non-compliance with the directive in the
Return to Work to Our mind, signi es his intention to sever the
employment relation with petitioner, and gives credence to the
latter's claim that it was respondent who abandoned his job.
It can be gathered that respondent's departure was merely a
precursor to his scheme to turn the table against petitioner.
Realizing that his employment was at serious risk due to his habitual
neglect of his duties, respondent jumped the gun on petitioner by
lodging a baseless complaint for illegal dismissal even though it was
he who abandoned his employment.
Maria De Leon Transportation Inc., et al. v. Macuray 2018
An employee can not be said to have abandoned his employment
when he merely availed of a company practice of taking sabbaticals
in order to a ord them the opportunity to recover from the stresses
of driving the same long and monotonous bus routes by accepting
jobs elsewhere.
WON there was just cause for dismissing Macuray due to
abandonment.
NO. Macuray was not dismissed from work and he did not abandon
his employment.
Even assuming that respondent was indeed told by respondent's bus
dispatcher Roger Pasion that he was AWOL, this was not
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tantamount to dismissal, actual or constructive. An ordinary bus
A fraction of at least six (6) months shall be considered one (1)
dispatcher has no power to dismiss an employee.
whole year.
2 Authorized Causes
ARTICLE 298. Closure of Establishment and Reduction of Personnel.
— The employer may also terminate the employment of any
employee due to
1. the installation of labor-saving devices,
2. redundancy,
3. retrenchment to prevent losses or
4. the closing or cessation of operation of the
establishment or undertaking
unless the closing is for the purpose of circumventing the provisions
of this Title, by serving a written notice on the workers and the
DOLE at least one (1) month before the intended date thereof.
In case of termination due to the installation of labor-saving
devices or redundancy, the worker a ected thereby shall be
entitled to a separation pay equivalent to at least his one (1) month
pay or to at least one (1) month pay for every year of service,
whichever is higher.
In case of retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due
to serious business losses or nancial reverses, the separation pay
shall be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher.
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Common Requisites
a) Good faith;
b) Termination is matter of last resort;
c) Two (2) Separate notices served on the a ected EE and
DOLE ONE MONTH prior to intended date of
termination;
d) Separation pay;
i) Installation of labor saving Device or Redundancy —
1 month pay or at least 1 month pay for every year of
service whichever is higher;
ii) Retrenchment or closure not due to serious losses —
1 month pay or at least 1/2 month pay for every year
of service whichever is higher;
iii) Closure due to serious losses — NONE.
iv) CBA provision shall prevail.
e) Fair and reasonable criteria.
1) Installation of labor-saving devices. — refers to the
reduction of the number of workers in any workplace made
necessary by the introduction of labor-saving machinery or
devices.
a) There must be introduction of machinery, equipment or
other devices;
b) The introduction must be done in good faith;
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c) The purpose for such introduction must be valid such as
to save on cost, enhance e ciency and other justi able
economic reasons;
d) There is no other option available to the employer than
the introduction of machinery, equipment or device and
the consequent termination of employment of those
a ected thereby; and
e) There must be fair and reasonable criteria in selecting
employees to be terminated.
2) Redundancy. — exists when "the services of an employee are
in excess of what is reasonably demanded by the actual
requirements of the enterprise."
a) written notice served on both the employees and the
DOLE at least one month prior to the intended date of
retrenchment;
b) payment of separation pay equivalent to at least one
month pay or at least one month pay for every year of
service, whichever is higher;
c) good faith in abolishing the redundant positions; and
d) fair and reasonable criteria in ascertaining what
positions are to be declared redundant and accordingly
abolished.
3) Retrenchment. — or downsizing is a mode of terminating
employment initiated by the employer through no fault of the
employee and without prejudice to the latter, resorted to by
management during periods of business recession, industrial
depression or seasonal uctuations or during lulls over
shortage of materials.
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Labor Law and Social Legislation
a) The retrenchment must be reasonably necessary and likely
to prevent business losses;
b) The losses, if already incurred, are not merely de
minimis, but substantial, serious, actual and real, or, if
only expected, are reasonably imminent;
c) The expected or actual losses must be proved by
su cient and convincing evidence;
d) The retrenchment must be in good faith for the
advancement of its interest and not to defeat or
circumvent the employees' right to security of tenure; and
e) There must be fair and reasonable criteria in
ascertaining who would be dismissed and who would be
retained among the employees, such as status, e ciency,
seniority, physical tness, age, and nancial hardship for
certain workers.
4) Closing or cessation of operation. — Refers to the
complete or partial cessation of the operations and/or
shut-down of the establishment of the employer.
a) There must be a decision to close or cease operation of the
enterprise by the management;
b) The decision was made in good faith; and
c) There is no other option available to the employer except
to close or cease operations.
5) Disease. — To be a valid ground for termination, the
following must be present:
a) The employee must be su ering from any disease;
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b) The continued employment of the employee is
prohibited by law or prejudicial to his/her health as
well as to the health of his/her co-employees; and
c) There must be certi cation by a competent public
health authority that the disease is incurable within a
period of six (6) months even with proper medical
treatment.
d) As to procedural due process. — The employer must
furnish the employee two written notices in terminations
due to disease, namely:
i) the notice to apprise the employee of the ground for
which his dismissal is sought; and
ii) the notice informing the employee of his dismissal,
to be issued after the employee has been given
reasonable opportunity to answer and to be heard on
his defense.
Manggagawa ng Komunikasyon sa Pilipinas v. PLDT 2017
An order of reinstatement is di erent from a return-to-work order.
1. The award of reinstatement, including backwages, is
awarded by a Labor Arbiter to an illegally dismissed
employee pursuant to Article 294.
2. On the other hand, a return-to-work order is issued by
the SOLE when he or she assumes jurisdiction over a labor
dispute in an industry that is considered indispensable to
the national interest.
WON the 2002 redundancy program of PLDT was valid.
YES. To establish good faith, the company must provide substantial
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proof that the services of the employees are in excess of what is
required of the company, and that fair and reasonable criteria were
used to determine the redundant positions.
PLDT's declaration of redundancy was backed by substantial
evidence showing a consistent decline for operator-assisted calls for
both local and international calls because of cheaper alternatives.
Aquino v. NLRC di erentiated between separation pay and
retirement bene ts:
1. Separation pay is required in the cases enumerated in
Articles 283 and 284. We have held that it is a statutory
right designed to provide the employee with the
wherewithal during the period that he is looking for
another employment.
2. Retirement bene ts, where not mandated by law, may be
granted by agreement of the employees and their employer
or as a voluntary act on the part of the employer.
Retirement bene ts are intended to help the employee
enjoy the remaining years of his life.
Acosta v. Matiere SAS 2019
In redundancy, an employer must show that it applied fair and
reasonable criteria in determining what positions have to be declared
redundant. Otherwise, it will be held liable for illegally dismissing
the employee a ected by the redundancy.
WON Acosta was validly dismissed from employment on the ground
of redundancy.
NO. Respondents' only basis for declaring petitioner's position
redundant was that his function, which was to monitor the delivery
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of supplies, became unnecessary upon completion of the shipments.
However, there was no mention of monitoring shipments as part of
petitioner's tasks. If his work pertains mainly to the delivery of
supplies, it should have been speci cally stated in his job
description. There was, hence no basis for respondents to consider
his position irrelevant when the shipments had been completed.
Likewise, respondents failed to show that they used fair and
reasonable criteria in determining what positions should be
declared redundant.
In Panlilio v. NLRC, this Court held that fair and reasonable
criteria may take into account the preferred status, e ciency, and
seniority of employees to be dismissed due to redundancy.
Read-Rite Phils v. Francisco, et al. 2017
Given the diametrical nature of an involuntary and a voluntary
separation from service, one necessarily excludes the other. For sure,
an employee's termination from service cannot be voluntary
and involuntary at the same time.
Flight Attendants and Stewards
2018 En Banc
Association of the Phils. v. PAL
In determining the validity of a retrenchment, judicial notice may be
taken of the nancial losses incurred by an employer undergoing
corporate rehabilitation. In such a case, the presentation of audited
nancial statements may not be necessary to establish that the
employer is su ering from severe nancial losses.
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La Consolacion College of Manila, et al. v. Pascua 2018 There is no evidence showing that Arlene was accorded due process.
After informing her employer of her lung cancer, she was not given
When termination of employment is occasioned by retrenchment to
the chance to present medical certi cates. Fuji immediately
prevent losses, an employer must declare a reasonable cause or
concluded that Arlene could no longer perform her duties because
criterion for retrenching an employee. Retrenchment that
of chemotherapy. It did not ask her how her condition would a ect
disregards an employee's record and length of service is an
her work. Neither did it suggest for her to take a leave, even though
illegal termination of employment.
she was entitled to sick leaves. Worse, it did not present any
WON Pascua's retrenchment was valid based on the criteria that she certi cate from a competent public health authority. What Fuji did
had the highest rate of pay. was to inform her that her contract would no longer be renewed,
and when she did not agree, her salary was withheld. Thus, the
NO. Jurisprudence requires that the necessity of retrenchment to
Court of Appeals correctly upheld the nding of the NLRC that
stave o genuine and signi cant business losses or reverses be
for failure of Fuji to comply with due process, Arlene was illegally
demonstrated by an employer's independently audited
dismissed.
nancial statements. Documents that have not been the subject
of an independent audit may very well be self-serving.
The records indicate that La Consolacion su ered serious business 3 Due Process
reverses or an aberrant drop in its revenue and income, thus,
compelling it to retrench employees. a) Twin Notice Requirement
La Consolacion's failure was non-compliance with using fair and
reasonable criteria that considered the status and seniority of the 1) The rst written notice should contain:
retrenched employee.
a) The speci c causes or grounds for termination;
La Consolacion's disregard of respondent's seniority and preferred
b) Detailed narration of the facts and circumstances that will
status relative to a part-time employee indicates its resort to an
serve as basis for the charge against the employee. A
unfair and unreasonable criterion for retrenchment.
general description of the charge will not suffice; and
Employees who have earned their keep by demonstrating exemplary
performance and securing roles in their respective organizations c) A directive that the employee is given opportunity to
cannot be summarily disregarded by nakedly pecuniary submit a written explanation within a reasonable period.
considerations. "Reasonable period" should be construed as a period of at
least ve (5) calendar days from receipt of the notice.
Fuji Television v. Espiritu 2014
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2) After determining that termination of employment is justi ed,
the employer shall serve the employee a written notice of
termination indicating that:
a) all circumstances involving the charge against the
employee have been considered; and
b) the grounds have been established to justify the
severance of their employment.
The foregoing notices shall be served personally to the
employee or to the employee's last known address.
b) Hearing
3) After serving the rst notice, the employer should a ord the
employee ample opportunity to be heard and to
defend himself with the assistance of his representative if he
so desires.
"Ample opportunity to be heard" means any meaningful
opportunity given to the employee to answer the charges
against him and submit evidence in support of his defense,
whether in a hearing, conference or some other fair, just and
reasonable way. A formal hearing or conference becomes
mandatory only
a) when requested by the employee in writing or
b) substantial evidentiary disputes exist or a company
rule or
c) practice requires it, or
d) when similar circumstances justify it.
5
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4 Termination of Contract of Migrant Workers
1) In case of termination of overseas employment without just,
valid or authorized cause as de ned by law or contract, or any
unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement of his
placement fee and the deductions made with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired
portion of his employment contract or for three (3) months
for every year of the unexpired term, whichever is less5. (Sec 10)
2) Termination of employment of OFWs takes place in the
following instances:
a. Pre-termination of employment contract with approval of
employer;
b. Discharge for a valid cause;
c. Su ered injury or illness; or
d. An OFW has died.
Skippers United Pacific Inc. v. Doza 2012
The OFW can pre terminate his employment contract which is akin
to resignation. However, if the employer failed to submit substantial
evidence that indeed the OFW voluntarily pre-terminated his
contract; then the OFW is deemed illegally dismissed.
The best proof of pre-termination is a written resignation.
Termination of Employment by
C unreasonable or unlikely as in the case of an o er of
Employee
Declared unconstitutional.
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1 Resignation vs. Constructive Dismissal
1) Resignation is the VOLUNTARY act of an employee
dissociating from his employment in the belief that personal
reason cannot be sacri ced in favor of the exigency of the
service. Personal reasons may be due to health concerns.
2) The law requires the EE to submit an advance notice to the
ER known as a RESIGNATION NOTICE.
a) It is to be given at least 1 month before e ectivity date of
resignation.
b) The notice is for the bene t of the ER.
c) ER has discretion to shorten the period.
d) Failure to le notice will hold EE liable for damages for
losses.
3) Acceptance of resignation is not necessary. Resignation may
however be withdrawn even if EE called it irrevocable. If the
ER has accepted and approved the tendered resignation,
withdrawal thereafter requires the ER’s consent.
4) Generally, an EE who voluntarily resigns is NOT entitled to
separation pay. There are however two exceptions:
a) When stipulated in CBA;
b) Sanctioned by established ER practice or policy.
5) Constructive dismissal occurs when an employee quits
because continued employment is rendered impossible,
demotion in rank and a diminution in pay.
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6) There is constructive dismissal in the following:
a) INVOLUNTARY RESIGNATION when continued
employment is rendered impossible, unreasonable or
unlikely;
b) DEMOTION in rank and/or DIMINUTION of pay;
c) Clear DISCRIMINATION, INSENSIBILITY or
DISDAIN by an ER to his EE.
7) The TEST of constructive dismissal is whether a reasonable
person in the position of the EE would have felt compelled to
give up his position under the circumstances. It is an act
amounting to dismissal but made to appear it is not. It is
therefore a dismissal in disguise.
8) Constructive dismissal is distinguished from illegal dismissal
in that in the latter, intent to dismiss is clearly expressed by
the ER. In the former however, ER NEVER indicates that he
is terminating the EE.
9) The unilateral and arbitrary reduction of the work day scheme
that signi cantly reduced employees’ salaries is a form of
constructive dismissal. (Intec Cebu v. CA 2016)
10) A college professor that was later appointed as a laboratory
custodian, divesting him of his teaching load, was
constructively dismissed. (Divine Word College of Laoag v.
Mina 2016)
Diwa Asia Publishing et al. v. De Leon 2018
WON the issuance of communications to reprimand and/or correct an
erring employee forms part of the employer's management
prerogatives and is not tantamount to harassment, let alone illegal
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dismissal.
NO. Respondent was excluded from important HR decisions
which she was expected not only to be privy to, but also to have a say
in, by virtue of her position in the company.
There is constructive dismissal when an employee's functions,
which were originally supervisory in nature, were reduced; and such
reduction is not grounded on valid grounds such as genuine
business necessity.
The reduction in respondent's duties and responsibilities as HR
Manager amounted to a demotion that was tantamount to
constructive dismissal.
The above-cited circumstances indubitably present a hostile and
unbearable working environment that reasonably compelled
respondent to leave her employment. Respondent, therefore, was
constructively dismissed.
Del Rio v. DPO Phils. 2018
WON the CA is correct in deleting the award of separation pay in
favor of petitioner.
YES. There was no employment contract, much less a CBA, which
contained the stipulation that would grant separation pay to
resigning employees. Neither was there a company practice or policy
that was proven to exist in the instant case.
Doble, Jr. v. ABB Inc. 2017
Constructive dismissal is de ned as quitting or cessation of
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work because continued employment is rendered impossible,
unreasonable or unlikely. There is involuntary resignation due
to the harsh, hostile, and unfavorable conditions set by the
employer.
On the other hand, resignation is the voluntary act of an
employee who is in a situation where one believes that personal
reasons cannot be sacri ced in favor of the exigency of the service,
and one has no other choice but to dissociate oneself from
employment. It is a formal pronouncement or relinquishment of an
o ce, with the intention of relinquishing the o ce accompanied by
the act of relinquishment.
Sumifru Corp v. Baya 2017
The burden is on the employer to prove that the transfer or
demotion of an employee was a valid exercise of management
prerogative and was not a mere subterfuge to get rid of an employee;
failing in which, the employer will be found liable for constructive
dismissal.
WON AMSFC and DFC constructively dismissed Baya.
YES. The top management of both AMSFC and DFC, which were
sister companies at the time, were well-aware of the lack of
supervisory positions in AMSFC. This notwithstanding, they still
proceeded to order Baya's return therein, thus, forcing him to accept
rank-and- le positions. Thus, AMSFC and DFC are guilty of
constructively dismissing Baya.
Cosue v. Ferritz Integrated Development Corp 2017
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Labor Law and Social Legislation
WON Cosue was constructively dismissed because he reported to work
immediately after his suspension but was not anymore allowed to
work.
NO. Bare allegations of constructive dismissal, when
uncorroborated by the evidence on record, as in this case, cannot be
given credence.
Records do not show any demotion in rank or a diminution in pay
made against petitioner. Neither was there any act of clear
discrimination, insensibility or disdain committed by respondents
against petitioner.
Respondents' decision to give petitioner a graceful exit is perfectly
within their discretion. It is settled that there is nothing
reprehensible or illegal when the employer grants the employee a
chance to resign and save face rather than smear the latter's
employment record.
Since there was neither dismissal nor abandonment, the CA
correctly sustained the LA and the NLRC's decision to order
petitioner's reinstatement but without backwages, consistent
with the following pronouncement in Danilo Leonardo v. NLRC
and Reynaldo's Marketing Corporation, et al.
Philippine Pan Asia Carriers Corp v. Pelayo 2018
WON Pelayo's involvement in the investigation conducted by
petitioner amounted to constructive dismissal.
NO. An employer who conducts investigations following the
discovery of misdeeds by its employees is not being abusive when it
seeks information from an employee involved in the work ow
which occasioned the misdeed. An employee's involvement in such
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an investigation will naturally entail di culty. This di culty does
not mean that the employer is creating an inhospitable employment
atmosphere so as to ease out the employee involved in the
investigation.
Thus, subject to the limits of ethical and lawful conduct, an
employer is free to adopt any means for conducting these
investigations. They can, for example, obtain information from the
entire roster of employees involved in a given work ow.
This Court fails to see how the petitioner's investigation amounted
to respondent's constructive dismissal. Other than respondent's bare
allegation, there is nothing to support the claim that her
interviewers were hostile, distrusting, and censorious, or that the
interview was a mere pretext to pin her down. Respondent's
recollection is riddled with impressions, unsupported by
independently veri able facts.
Union School International et al. v. Dagdag 2018
The standard of morality with which an act should be gauged is
public and secular, not religious.
Pregnancy of a school teacher out of wedlock is not a just cause for
termination of an employment absent any showing that the
pre-marital sexual relations and, consequently, pregnancy out of
wedlock, are indeed considered disgraceful or immoral.
WON Dagdag was constructively dismissed by Union School.
YES. Mandapat's act of suggesting that Dagdag should simply
tender her resignation, as the school may impose harsher penalties,
left Dagdag with no choice but to discontinue working for Union
School. Although there was a conduct of grievance meeting, its
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outcome was already predetermined as petitioners were already
resolute in their decision to terminate Dagdag's employment. This is
evident by the fact that Dagdag was left with two
choices—resignation or dismissal and threatening her with possible
revocation of her teaching license.
In the case of Capin-Cadiz v. Brent Hospital and Colleges, Inc.
it is held that:
Jurisprudence has already set the standard of morality with
which an act should be gauged — it is public and secular,
not religious.
The totality of evidence in this case does not justify the dismissal of
Dagdag from her employment considering that there was no legal
impediment to marry between Dagdag and the father of her child at
the time of the conception.
Spectrum Security Services 2017 re Suspension of Business
Inc v. Grave et al. Operations
A security guard placed on reserved or o -detail status is
deemed constructively dismissed only if the status should last more
than six months. Any claim of constructive dismissal must be
established by clear and positive evidence.
WON Spectrum Security constructively dismissed its employees.
NO. Security guards, like other employees in the private sector, are
entitled to security of tenure. However, their situation should be
di erentiated from that of other employees or workers. The
employment of security guards generally depends on their
employers' contracts with clients who are third parties to the
employment relationship, and the requirements of the latter for
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security services and what will be bene cial to them dictate the
posting of the security guards.
In other words, their security of tenure, though it shields them from
demotions in rank or diminutions of salaries, bene ts and other
privileges, does not vest them with the right to their positions or
assignments that will prevent their transfers or re-assignments. Only
when the period of their reserved or o -detail status exceeds the
reasonable period of six months without re-assignment should the
a ected security guards be regarded as dismissed. Indeed, there
should be no inde nite lay-o s. After the period of six months, the
employers should either recall the a ected security guards to work or
consider them permanently retrenched pursuant to the
requirements of the law; otherwise, the employers would be held to
have dismissed them, and would be liable for such dismissals.
Under DOLE Department Order No. 014-01, the tenure of
security guards in their employment is ensured by guaranteeing that
their services are to be terminated only for just or authorized causes.
D Preventive Suspension
1) May be de ned as the temporary removal of an EE charged for
violation of company rules from his present status or position.
It is not a disciplinary measure and should not be confused
with suspension imposed as a penalty. It shall not last longer
than thirty (30) days.
2) This may be imposed while an investigation is ongoing.
3) The notice of preventive suspension cannot be
considered as adequate notice to explain. (Tanala v.
NLRC)
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4) Reassignment or transfer as remedial measure. — The
purpose of reassignments is no di erent from that of
preventive suspension which management could validly
impose as a disciplinary measure for the protection of the
company's property pending investigation of any alleged
malfeasance or misfeasance committed by the employee. (Ruiz
v. Wendel Osaka Realty 2012)
Maula v. Ximex Delivery Express 2017
Preventive suspension may be legally imposed against an employee
whose alleged violation is the subject of an investigation. Preventive
suspension is justi ed where the employee's continued employment
poses a serious and imminent threat to the life or property of the
employer or of the employee's co-workers. Without this kind of
threat, preventive suspension is not proper.
Here, it cannot be said that petitioner posed a danger on the lives of
the o cers or employees of respondent or their properties. Being
one of the Operation Sta , which was a rank and le position, he
could not and would not be able to sabotage the operations of
respondent.
Mamaril v. Red System Company 2018
WON Red System was guilty of imposing a double penalty against
Mamaril.
NO. Mamaril's preventive suspension and subsequent dismissal
from the service do not partake of a double penalty; neither may his
dismissal be regarded as harsh and excessive.
Syllabus-based Reviewer for the 2023 Bar
Mamaril's initial suspension was a preventive suspension that was
necessary to protect Red System's equipment and personnel.
Mamaril was placed under preventive suspension considering that
during the pendency of the administrative hearings, he was noticed
to have several near-accident misses and he had exhibited a lack of
concern for his work. His inattentiveness posed a serious threat to
the safety of the company equipment and personnel.
E Reliefs from Illegal Dismissal
1. Effect or Consequences of Dismissal. — An employee who is
unjustly dismissed from work shall be entitled to
a. reinstatement without loss of seniority rights and other
privileges and to his
b. full backwages, inclusive of allowances, and to his
c. other bene ts or their monetary equivalent
computed from the time his compensation was withheld from him
up to the time of his actual reinstatement.
GR: When an EE is validly dismissed, NO separation pay
is given.
EXC: Such cause does not constitute serious misconduct
nor re ect on the EE’s moral character, separation pay
MAY be validly awarded. This is the DISCERNING
COMPASSION doctrine.
2. Reinstatement. — Separation pay is made an alternative relief
in lieu of reinstatement in certain circumstances, like:
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a. when reinstatement can no longer be e ected in view of
the passage of a long period of time or because of the
realities of the situation;
b. reinstatement is inimical to the employer’s interest;
c. reinstatement is no longer feasible;
d. reinstatement does not serve the best interests of the
parties involved;
e. the employer is prejudiced by the workers’ continued
employment;
f. facts that make execution unjust or inequitable have
supervened; or
g. strained relations between the employer and employee
3. Award When Reinstatement not Viable
a. Backwages from date of dismissal until nality of
decision;
b. Separation pay from date of employment until nality of
decision (not date of dismissal);
c. 10% attorney’s fees based on the awards computed; and
d. Interest on the awards computed from date of nality of
decision until they are paid, these monetary claims being
equivalent to a forbearance of credit (Javellana, Jr v. Belen
2010)
4. Backwages in general are granted on grounds of equity for
earnings which a worker or employee has lost due to his illegal
dismissal. It is not private compensation or damages but is awarded
in furtherance and e ectuation of the public objective of the
Labor Code.
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5. The rule in Bustamante is controlling that the dismissed
employee is to be paid backwages for the entire period that he was
without work, without deduction and without quali cation
6. The base gure is the wage rate at time of dismissal inclusive of
“allowances”, excluding salary increases. Salary increases are
not akin to allowances or bene ts, and cannot be confused with
either. (Equitable Banking v. Sadac)
Claudia’s Kitchen Inc. v. Tanguin 2017
As to separation pay
In sum, separation pay is only awarded to a dismissed employee in
the following instances:
1. in case of closure of establishment under Article 298;
2. in case of termination due to disease or sickness under
Article 299;
3. as a measure of social justice in those instances where the
employee is validly dismissed for causes other than serious
misconduct or those re ecting on his moral character;
4. where the dismissed employee's position is no longer
available;
5. when the continued relationship between the employer and
the employee is no longer viable due to the strained
relations between them; or
6. when the dismissed employee opted not to be reinstated, or
the payment of separation bene ts would be for the best
interest of the parties involved.
In ne, as a general rule, separation pay in lieu of reinstatement
could not be awarded to an employee whose employment was
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not terminated by his employer.
There were cases, however, wherein the Court awarded separation
pay in lieu of reinstatement to the employee even after a nding that
there was neither dismissal nor abandonment. In Nightowl
Watchman & Security Agency, Inc. v. Lumahan, the Court
awarded separation pay in view of the ndings of the NLRC that
respondent stopped reporting for work for more than ten (10) years
and never returned.
F Retirement
GR: Employees dismissed for just cause are generally entitled
due to vested rights
EXC: Where just cause termination proscribes the claim of
retirement pay as cited in the retirement plan.
1) Retirement has been de ned as a withdrawal from o ce,
public station, business, occupation, or public duty. It is the
result of a bilateral act of the parties, a voluntary agreement
between the employer and the employee whereby the latter,
after reaching a certain age, agrees and/or consents to sever his
employment with the former.
2) Under the Labor Code, only unjustly dismissed employees are
entitled to retirement bene ts and other privileges including
reinstatement and backwages. Since petitioner’s dismissal was
for a just cause, he is not entitled to any retirement bene t. (Sy
v. Metrobank)
3) ⭐An employee in the private sector who did not expressly
agree to the terms of an early retirement plan cannot be
separated from the service before he reaches the age of 65
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years. The employer who retires the employee
prematurely is guilty of illegal dismissal, and is liable to
pay his back wages and to reinstate him without loss of
seniority and other bene ts, unless the employee has
meanwhile reached the mandatory retirement age, in which
case he is entitled to separation pay pursuant to the terms of
the plan, with legal interest on the backwages and separation
pay reckoned from the nality of the decision. (Laya, Jr v.
CA 2018 En Banc)
4) However, where the employee has been informed and had
consented, as when in accepting the employment o er, he has
assented to all existing rules, regulations and policy of the
employer in the employment contract, and furthermore, he
did not object to the compulsory age of retirement in the
Retirement Plan, he is deemed bound thereto. (Banco de Oro
Unibank v. Sagaysay 2015)
5) Jurisprudence is replete with cases discussing the employer's
prerogative to lower the compulsory retirement age subject to
the consent of its employees.
6) In Pantranco North Express, Inc. v. NLRC, the Court
upheld the retirement of the private respondent therein
pursuant to a CBA allowing the employer to compulsorily
retire employees upon completing 25 years of service to the
company.
7) In Progressive Development Corporation v. NLRC, the
retirement plan, which allowed the employer to retire
employees who had rendered more than 20 years of service,
was declared valid and enforceable even though it was not
embodied in a CBA. In that case, the Court concluded that
the employees, who were hired before the execution of the
employer's retirement plan, were bound by it because the
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retirement plan was expressly made known and accepted Bernardo's claim for retirement bene ts cannot be denied on
by them. the ground that he was a part-time employee as part-time
employees are not among those speci cally exempted
8) In contrast, the case of Jaculbe v. Silliman University did
under RA No. 7641 or its Implementing Rules. (Dela Salle
not allow the application of a lower retirement age. The
Araneta U v. Bernardo 2017)
petitioner in the said case was employed sometime in 1958
while the retirement plan, which automatically retired its
Catotocan v. Lourdes School of Quezon City 2017
members upon reaching the age of 65 or after 35 years of
uninterrupted service to the university, came into being in RETIREMENT PLAN. Acceptance by the employees of an early
1970. The said retirement plan was not applied to the retirement age option must be explicit, voluntary, free, and
petitioner because there was no agreement to which the uncompelled.
latter assented.
WON Catotocan's receipt of her retirement benefits will not stop her
9) Similarly, the case of Cercado v. UNIPROM Inc., involved a from pursuing an illegal dismissal complaint against LSQC.
non-contributory retirement plan which provided that any
NO. LSQC did not illegally dismiss Catotocan from service. While
employee with twenty (20) years of service, regardless of age,
it may be true that Catotocan was initially opposed to the idea of
may be retired at his option or at the option of the company.
her retirement at an age below 60 years, it must be stressed that
The said plan was adopted while the petitioner therein was
Catotocan's subsequent actions after her "retirement" are actually
employed earlier. There was no voluntary acquiescence to
tantamount to her consent to the addendum to the LSQC's
UNIPROM's early retirement age option on her part.
retirement policy of retiring her from service upon serving the
10) On the other hand, in Obusan v. PNB, the petitioner, who school for at least thirty (30) continuous years. Catotocan
was hired by PNB in 1979, was deemed covered by its performed all the acts to ratify her retirement in accordance with
retirement plan adopted in 2000. Considering that on LSQC's retirement policy.
February 21, 2001, PNB had informed all of its o cers and
Catotocan's repeated application and availment of the re-hiring
employees about the said retirement plan, the said plan was
program of LSQC for quali ed retirees for 3 consecutive years is a
then registered with the BIR and was later recognized by the
supervening event that would reveal that she has already voluntarily
Philnabank Employees Association in its CBA. Despite the
and freely signi ed her consent to the retirement policy despite her
proper dissemination of information, no one questioned the
initial opposition to it.
retirement plan. Hence, the Court deemed it valid and
e ective as due notice of the employer's decision to retire
an employee was adequately provided.
PAL v. Hassaram 2017
11) ⭐Retirement of Part-time Faculty. Under the rule of
statutory construction of expressio unius est exclusio alterius,
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The determining factor in choosing which retirement scheme to Requisites to Perfect an Appeal With the National Labor Jurisdiction of Labor Arbiter vs. Jurisdiction
1
apply is still superiority in terms of bene ts provided.
Relations Commission of Regional Director
a) Under Art 224[217] of LC
Reinstatement and/or Execution Pending Appeal
Barroga v. Quezon Colleges of the North 2018 i. Unfair labor practice cases;
National Labor Relations Commission
While retirement from service is similar to termination of ii. Illegal dismissal;
employment insofar as they are common modes of ending Court of Appeals iii. Money claims > P5K;
employment, they are mutually exclusive, with varying juridical
Supreme Court iv. Claims for damages arising from ER-EE relations; and
bases and resulting bene ts. Retirement from service is
contractual, while termination of employment is statutory. v. Legality of strikes and lockouts.
Bureau of Labor Relations
WON the CA correctly ruled that petitioner was not illegally b) Under Art 124 of LC. — Disputes involving legislated
dismissed by respondents, but rather, retired from his employment National Conciliation and Mediation Board wage increases and wage distortion in unorganized
with the latter. establishments not voluntarily settled.
Conciliation vs. Mediation
YES. The Court is inclined to hold that petitioner retired from c) Under Art 128(b) of LC. — Where the ER contests the
service, but nonetheless, pursued the ling of the instant illegal DOLE Regional Directors ndings of the labor employment and enforcement o cer and
dismissal case in order to recover the proper bene ts due to him. In raises issues supported by documentary proofs which were not
fact, it is telling that he never asked to be reinstated as he only DOLE Secretary considered in the course of inspection.
sought the payment of his retirement bene ts. In view of the d) Under Art 233[227] of LC. — Enforcement of
Jurisdiction
foregoing, respondents must duly pay petitioner not only his compromise agreements when there is non-compliance by
retirement bene ts, but also his other monetary claims. Visitorial and Enforcement Powers any of the parties thereto.
e) Under Art 276[262-A] of LC. — Issuance of writ of
Power to Suspend E ects of Termination
execution to enforce decisions of VA or panel of VAs, in case
V Jurisdiction and Remedies of their absence or incapacity.
Remedies
Labor Arbiter f) Under Sec 10 of RA 8042. — Money claims of OFWs
Voluntary Arbitrator
arising out of EER by virtue of any law or contract, including
Jurisdiction of Labor Arbiter vs. Jurisdiction of Regional Prescription of Actions claims of death and disability bene ts and for damages.

Director g) Other cases as may be provided by law.

A Labor Arbiter
Pepsi-Cola v. Gal-lang

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The case involves a complaint for damages for malicious
prosecution which was led with the RTC by the employees of the
defendant company. It does not appear that there is a
"reasonable causal connection" between the complaint and the
relations of the parties as employer and employees. The
complaint did not arise from such relations and in fact could have
arisen independently of an employment relationship between the
parties. This is a matter which the labor arbiter has no
competence to resolve as the applicable law is not the Labor
Code but the Revised Penal Code.
San Miguel v. Etcuban
In the present case, while respondents insist that their action is for
the declaration of nullity of their "contract of termination," what is
inescapable is the fact that it is, in reality, an action for damages
emanating from employer-employee relations.
Respondents' claim for damages is intertwined with their having
been separated from their employment without just cause and,
consequently, has a reasonable causal connection with their
employer-employee relations with SMC. Accordingly, it cannot be
denied that respondents' claim falls under the jurisdiction of the
labor arbiter as provided in paragraph 4 of Article 217.
Indophil Textile Mills v. Adviento 2014
It is obvious from the complaint that the plainti s have not alleged
any unfair labor practice. Theirs is a simple action for damages for
tortious acts allegedly committed by the defendants. Such being
the case, the governing statute is the Civil Code and not the Labor
Code.
Century Properties v. Babiano 2016
The CA erred in limiting the "Confidentiality of Documents and
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Non-Compete Clause" only to acts done after the cessation of the not religious in nature.
employer-employee relationship or to the "post-employment"
The SDA cannot hide behind the mantle of protection of the
relations of the parties. As clearly stipulated, the parties wanted to
doctrine of separation of church and state to avoid its responsibilities
apply said clause during the pendency of Babiano's employment,
as an employer under the Labor Code.
and CPI correctly invoked the same before the labor tribunals.
Silva v. NLRC
PAL v. ALPAP 2018
For a ULP case to be cognizable by the Labor Arbiter, and the
PAL's cause of action is not grounded on mere acts of quasi-delict.
NLRC to exercise its appellate jurisdiction, the allegations in the
The claimed damages arose from the illegal strike and acts
complaint should show prima facie the concurrence of two things,
committed during the same which were in turn closely related and
namely:
intertwined with the respondents' allegations of unfair labor
practices against PAL. 1) gross violation of the CBA; AND
The question of damages becomes a labor controversy and is 2) the violation pertains to the economic provisions of the
therefore an employment relationship dispute. CBA.
Sim v. NLRC
Perpetual Help Credit Coop v. Faburada
There is no evidence that private respondents are members of Section 62 of the Omnibus Rules and Regulations provides that the
Labor Arbiters of the NLRC shall have the original and
petitioner PHCCI and even if they are, the dispute is about
exclusive jurisdiction to hear and decide all claims arising out
payment of wages, overtime pay, rest day and termination of
of EER or by virtue of any law or contract involving Filipino
employment. Under Art. 217 of the Labor Code, these disputes
workers for overseas deployment including claims for actual,
are within the original and exclusive jurisdiction of the Labor
moral, exemplary and other forms of damages, subject to the rules
Arbiter.
and procedures of the NLRC.
Austria v. NLRC
International Management Services v. Logarta 2012
The grounds invoked for petitioner's dismissal, namely:
In the case at bar, despite the fact that respondent was employed by
misappropriation of denominational funds, willful breach of
Petrocon as an OFW in Saudi Arabia, still both he and his employer
trust, serious misconduct, gross and habitual neglect of duties
are subject to the provisions of the Labor Code when applicable.
and commission of an o ense against the person of his
The basic policy in this jurisdiction is that all Filipino workers,
employer's duly authorized representative, are all based on
whether employed locally or overseas, enjoy the protective mantle of
Article 282 of the Labor Code which enumerates the just
causes for termination of employment. By this alone, it is Philippine labor and social legislations.
palpable that the reason for petitioner's dismissal from the service is Action for damages by employer against employee who resigned short
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of 30 day prior notice. Eviota v. CA
Petitioner does not ask for any relief under the Labor Code of the
Philippines. It seeks to recover damages agreed upon in the contract
as redress for private respondent’s breach of his contractual
obligation to its "damage and prejudice". Such cause of action is
within the realm of Civil Law, and jurisdiction over the controversy
belongs to the regular courts. More so when we consider that the
stipulation refers to the post-employment relations of the parties.
Replevin case by ER against EE in Smart v. Astorga
SMART’s demand for payment of the market value of the car or, in
the alternative, the surrender of the car, is not a labor, but a civil
dispute. It involves the relationship of debtor and creditor rather
than employee-employer relations. As such, the dispute falls within
the jurisdiction of the regular courts.
Action by employer to recover unpaid loans of employees who were
dismissed. HSBC Ltd. Staff Retirement Plan v. Sps Broqueza
2010
The enforcement of a loan agreement involves "debtor-creditor
relations founded on contract and does not in any way concern
employee relations. As such it should be enforced through a separate
civil action in the regular courts and not before the Labor
Arbiter."
Action for declaratory relief filed by female flight attendants to
question the constitutionality of their compulsory age of retirement at
55 compared to male workers. Halaguena v. PAL
Here, the petitioners' primary relief is the annulment of Section 144,
Part A of the PAL-FASAP CBA, which allegedly discriminates
against them for being female ight attendants. The subject of
litigation is incapable of pecuniary estimation, exclusively
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cognizable by the RTC. Being an ordinary civil action, the same is
beyond the jurisdiction of labor tribunals.
The said issue cannot be resolved solely by applying the
Labor Code. Rather, it requires the application of the
Constitution, labor statutes, law on contracts and the CEDAW, and
the power to apply and interpret the constitution and CEDAW is
within the jurisdiction of trial courts, a court of general
jurisdiction.
Intracorporate vs Labor Dispute. Okol v. Slimmers World
Section 25 of the Corporation Code enumerates corporate o cers
as the president, secretary, treasurer and such other o cers as may be
provided for in the by-laws. In Tabang v. NLRC, we held that an
"o ce" is created by the charter of the corporation and the o cer is
elected by the directors or stockholders. On the other hand, an
"employee" usually occupies no o ce and generally is employed not
by action of the directors or stockholders but by the managing
o cer of the corporation who also determines the compensation to
be paid to such employee.
Here, petitioner was a director and o cer of Slimmers World. The
charges of illegal suspension, illegal dismissal, unpaid commissions,
reinstatement and back wages imputed by petitioner against
respondents fall squarely within the ambit of intra-corporate
disputes.
Corporate Officers. Matling Industrial and Commercial Corp v.
Coros 2010
Conformably with Section 25 of the Corporation Code, a position
must be expressly mentioned in the By-Laws in order to be
considered as a corporate o ce. Thus, the creation of an office
Syllabus-based Reviewer for the 2023 Bar
pursuant to or under a By-Law enabling provision is not enough to
make a position a corporate office.
Whoever are the corporate o cers enumerated in the by-laws are the
exclusive O cers of the corporation and the Board has no power to
create other O ces without amending rst the corporate By-laws.
Real v. Sangu Phil 2011
The better policy to be followed in determining jurisdiction over a
case should be to consider concurrent factors such as the status or
relationship of the parties or the nature of the question that is
subject of their controversy. In the absence of any one of these
factors, the SEC (RTC) will not have jurisdiction.
When petitioner sought for reinstatement, he wanted to
recover his position as Manager, a position which has been
declared to be not a corporate position. The case is thus a
termination dispute and, consequently, falls under the jurisdiction
of the Labor Arbiter pursuant to Section 217 of the Labor Code.
Cacho v. Balagtas 2018
Under the nature of the controversy test, the disagreement must
not only be rooted in the existence of an intra-corporate
relationship, but must as well pertain to the enforcement of the
parties' correlative rights and obligations under the Corporation
Code and the internal and intra-corporate regulatory rules of the
corporation.
It is clear that the termination complained of is intimately and
inevitably linked to Balagtas's role as North Star's EVP. Balagtas's
dismissal is an intra-corporate controversy, not a mere labor
dispute.
Ellao v. BATELEC 2018
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Here, the position of General Manager is expressly provided for
under Article VI, Section 10 of BATELEC I's By-laws. It is therefore
beyond cavil that Ellao's position as General Manager is a
cooperative o ce. Accordingly, his complaint for illegal dismissal
partakes of the nature of an intra-cooperative controversy.
Requisites to Perfect an Appeal With the
2
National Labor Relations Commission
1) Decisions, awards or order of LA shall be F&E unless
appealed to NLRC within 10 cal days from receipt thereof.
2) In case of decisions or resolutions of RD pursuant to Art
129, within 5 cal days.
3) If last day falls on a weekend or holiday, move to the next
working day.
4) No motion or request for extension shall be allowed.
5) Grounds for appeal:
a) Prima facie evidence of abuse of discretion on the part
of LA or RD;
b) Decision, award or order secured through fraud or
coercion, including graft and corruption;
c) If made purely on questions of law; and/or
d) If serious errors in the ndings of facts are raised
which may cause grave and irreparable damage or injury to
appellant.
6) To be led with the Regional Arbitration Branch of the
Regional O ce where the case was heard and decided.
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7) No appeal from interlocutory order shall be entertained. (Sec In case of surety bond, the same shall be issued by a
10 Rule VI, supra). reputable bonding company duly accredited by the
Commission, and shall be accompanied by original or
8) REQUISITES (Sec 4):
certi ed true copies of the following:
a) Filed within the reglementary period;
a) a joint declaration under oath by the employer, his/her
b) Veri ed by the appellant in accordance to Sec 4 Rule 7 of counsel, and the bonding company, attesting that the
RoC; bond posted is genuine, and shall be e ective until nal
c) In the form of a memorandum of appeal which shall disposition of the case;
i) State the grounds relied upon and b) an indemnity agreement between the
employer-appellant and bonding company;
ii) The arguments in support thereof,
c) proof of security deposit or collateral securing the
iii) The relief prayed for, and
bond: provided, that a check shall not be considered as an
iv) With a statement of the date the appellant received acceptable security; and,
the appealed decision, award or order;
d) notarized board resolution or secretary’s certi cate
d) In 3 legibly typewritten or printed copies; and from the bonding company showing its authorized
accompanied by: signatories and their specimen signatures.
i) Proof of payment of the required appeal fee and NO motion to reduce bond shall be entertained except on
legal research fee; meritorious grounds, and only upon the posting of a bond in a
ii) Posting of a cash or surety bond as provided in Sec reasonable amount in relation to the monetary award.
6; and The mere ling of a motion to reduce bond without
iii) Proof of service upon the other parties complying with the requisites in the preceding paragraphs
shall not stop the running of the period to perfect an appeal.
9) Appeal from Decision involving monetary award may be
perfected only upon the posting of a bond (Sec 6) which 10) Prohibited appeals:
shall either be in the form of a) Appeal from any interlocutory order of the LA
a) Cash deposit; or denying a motion:
b) Surety bond i) To dismiss;
Equivalent in amount to the monetary award exclusive of ii) To inhibit;
damages and attorney’s fees. iii) For issuance of writ or execution, or
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iv) To quash writ of execution;
b) Appeal from the issuance of a certi cate of nality of
decision by LA;
c) Appeal from orders issued by LA in the course of
execution proceedings.
Reinstatement and/or Execution Pending
3
Appeal
1) Sec 12 Rule XI, supra. — In case the decision includes an
order of reinstatement, and the employer disobeys the
directive under the second paragraph of Section 19 of Rule V
or refuses to reinstate the dismissed employee, the Labor
Arbiter shall immediately issue writ of execution, even
pending appeal, directing the employer
a) to immediately reinstate the dismissed employee either
physically or in the payroll, and
b) to pay the accrued salaries as a consequence of such
non-reinstatement in the amount speci ed in the
decision.
2) The Labor Arbiter shall motu proprio issue a corresponding
writ to satisfy the reinstatement wages as they accrue until
actual reinstatement or reversal of the order of reinstatement.
(En Banc Resolution No. 11-12, Series of 2012)
3) The Sheri shall serve the writ of execution upon the
employer or any other person required by law to obey the
same. If he/she disobeys the writ, such employer or person
may be cited for contempt in accordance with Rule IX.
4) Sec 19(2) Rule V. In case the decision of the Labor Arbiter
includes an order of reinstatement, it shall likewise contain:
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a) a statement that the reinstatement aspect is immediately
executory; and
b) a directive for the employer to submit a report of
compliance within ten (10) calendar days from receipt of
the said decision.
Malcaba et al. v. Prohealth Pharma Phils. 2018
Before any labor tribunal takes cognizance of termination disputes,
it must rst have jurisdiction over the action. The Labor Arbiter and
the NLRC only exercise jurisdiction over termination disputes
between an employer and an employee. They do not exercise
jurisdiction over termination disputes between a corporation and a
corporate o cer.
National Labor Relations Commission
B iii)
2011 NLRC Rules of Procedure
1) Original and Exclusive Jurisdiction (OEJ)
a) Petition for Injunction in ordinary labor disputes
b) Petition for Injunction on strikes or lockouts (Art
279)
c) Certi ed cases which refer to labor disputes causing or
likely to cause a strike or lockout in an industry
indispensable to the national interest, certi ed to it by
the SOLE for compulsory arbitration pursuant to Art
278(g).
d) Petition to annul or modify the order or resolution of
the LA.
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2) Exclusive Appellate Jurisdiction (EAJ)
a) All cases decided by the LA;
b) Cases decided by DOLE RD or hearing o cers involving
small money claims under Art 129
3) The NLRC is a quasi-judicial body 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.
4) Extraordinary Remedies. —
a) Petition to annul or modify order or resolution, with
the following grounds:
i) Prima facie evidence of abuse of discretion;
ii) Serious errors in the ndings of facts;
A party, by fraud, accident, mistake or excusable
negligence has been prevented from taking an
appeal;
iv) Purely on Questions of law; or
v) Order or resolution will cause injustice if not
recti ed.
➔ Not later than 10 cal days from receipt of order of LA,
aggrieved party may le the petition before the NLRC,
furnishing a copy to the adverse party.
b) Injunctive relief — writ of preliminary injunction;
c) Temporary restraining order.
CICM Mission Seminaries School of Theology v. Perez 2017
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In the event the aspect of reinstatement is disputed, backwages,
including separation pay, shall be computed from the time of
dismissal until the nality of the decision ordering the
separation pay.
The rule is, if the LA's decision, which granted separation pay in lieu
of reinstatement, is appealed by any party, the employer-employee
relationship subsists and until such time when decision becomes
nal and executory, the employee is entitled to all the monetary
awards awarded by the LA.
It has been settled that no essential change is made by a
recomputation as this step is a necessary consequence that
ows from the nature of the illegality of dismissal declared in
that decision. By the nature of an illegal dismissal case, the
reliefs continue to add on until full satisfaction thereof.
Turks Shawarma Company v. 2017 re Reduction of Appeal
Pajaron, et al. Bond
The liberal interpretation of the rules applies only to justi able
causes and meritorious circumstances.
The posting of cash or surety bond is mandatory and
jurisdictional; failure to comply with this requirement renders the
decision of the Labor Arbiter nal and executory.
WON CA erred in affirming the NLRC's dismissal of petitioners'
appeal.
NO. It is clear from both the Labor Code and the NLRC Rules of
Procedure that there is legislative and administrative intent to
strictly apply the appeal bond requirement, and the Court should
give utmost regard to this intention. However, the Court, in special
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and justi ed circumstances, has relaxed the requirement of posting a event occurring after the judgment becomes nal and executory,
supersedeas bond. which renders the decision unenforceable.
The reduction of the appeal bond is allowed, subject to the
following conditions:
Doble, Jr. v. ABB Inc. 2017
1. the motion to reduce the bond shall be based on
meritorious grounds; and The provision states that either a legible duplicate original or
certi ed true copy thereof shall be submitted. If what is submitted is
2. a reasonable amount in relation to the monetary award is
a copy, then it is required that the same is certi ed by the proper
posted by the appellant.
o cer of the court, tribunal, agency or o ce involved or his
Here, petitioners' motion to reduce bond was not predicated on duly-authorized representative. The purpose for this requirement is
meritorious and reasonable grounds and the amount tendered is not not di cult to see. It is to assure that such copy is a faithful
reasonable in relation to the award. reproduction of the judgment, order, resolution or ruling subject of
In the case of McBurnie v. Ganzon, the Court has set a the petition.
provisional percentage of 10% of the monetary award
(exclusive of damages and attorney's fees) as reasonable amount of
bond that an appellant should post pending resolution by the Genpact Services Inc. v. Santos-Falceso 2017
NLRC of a motion for a bond's reduction. Only after the posting
The 2011 NLRC Rules of Procedure, as amended, provides, among
of this required percentage shall an appellant's period to perfect an
others, that the remedy of ling a motion for reconsideration may
appeal be suspended.
be availed of once by EACH party.
Dutch Movers Inc. v. Lequin, et al. 2017
Malcaba et al. v. Prohealth Pharma Phils. 2018
WON petitioners are personally liable to pay the judgment awards in
In appeals of illegal dismissal cases, employers are strictly mandated
favor of respondents.
to le an appeal bond to perfect their appeals. Substantial
YES. Valderrama v. NLRC, and David v. Court of Appeals are compliance, however, may merit liberality in its application.
applicable here. In said cases, the Court held that the principle of
WON CA should have dismissed outright the Petition for Certiorari
immutability of judgment, or the rule that once a judgment has
since respondents failed to post a genuine appeal bond before the
become nal and executory, the same can no longer be altered or
NLRC.
modi ed and the court's duty is only to order its execution, is not
absolute. One of its exceptions is when there is a supervening
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NO. In labor cases, an appeal by an employer is perfected only
by ling a bond equivalent to the monetary award.
Procedural rules require that the appeal bond led be "genuine."
An appeal bond determined by the NLRC to be "irregular or not
genuine" shall cause the immediate dismissal of the appeal.
In Quiambao v. NLRC, this Court held that the mandatory and
jurisdictional requirement of the ling of an appeal bond could be
relaxed if there was substantial compliance. Quiambao proceeded
to outline situations that could be considered as substantial
compliance, such as
1. late payment,
2. failure of the LA to state the exact amount of money
judgment due, and
3. reliance on a notice of judgment that failed to state that a
bond must rst be led in order to appeal.
Rosewood Processing v. NLRC likewise enumerated other
instances where there would be a liberal application of the
procedural rules.
Despite their failure to collect on the appeal bond, petitioners do
not deny that they were eventually able to garnish the amount
from respondents' bank deposits. Respondents are considered to
have substantially complied with the requirements on the posting of
an appeal bond.
Consolidated Distillers of Far East v. Zaragoza 2018
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When there is a supervening event that renders reinstatement
impossible, backwages is computed from the time of dismissal until
the nality of the decision ordering separation pay.
WON Court of Appeals committed reversible error in reckoning the
period of back wages and separation pay until finality of the decision
of this case and not until the time, the supervening event and legal
impossibility to reinstate arose in this case.
NO. The Court agrees with the CA that Condis is liable for
backwages and separation pay until the nality of the decision
awarding separation pay as ruled in Bani.
Here, the award of separation pay in lieu of reinstatement was made
subsequent to the nality of the Decision in the Illegal Dismissal
Case. Condis cannot therefore evade its liability to Rogel for
backwages and separation pay computed until the nality of this
Decision which a rms the order granting separation pay.
For Olympia Housing v. Lapastora to apply, the employer must
prove the closure of its business in full and complete compliance
with all statutory requirements prior to the date of the nality of the
award of backwages and separation pay.
Pacios et al., v. Tahanang Walang Hagdanan 2018
In authorizing execution pending appeal of the reinstatement
aspect of a decision of the Labor Arbiter reinstating a dismissed or
separated employee, the law itself has laid down a compassionate
policy.
WON the Court of Appeals erred in affirming the suspension of the
execution proceedings.
Syllabus-based Reviewer for the 2023 Bar
YES. The more relevant rule in this case is Rule XI, Section 3 of
the NLRC Rules, which provides:
Section 3. Effect of Perfection of Appeal on Execution.
— The perfection of an appeal shall stay the execution of the
decision of the Labor Arbiter except execution for
reinstatement pending appeal.
Execution may be authorized even pending appeal. This Court
nds that the principles allowing execution pending appeal invoked
in Aris are equally applicable here as petitioners are poor employees,
deprived of their only source of livelihood for years and reduced to
begging on the streets. In view of their dire straits and since the
NLRC has already ruled twice on the case in a way that supports the
release of the supersedeas bond, it is proper to continue with
execution proceedings in this case despite a pending motion
for reconsideration.
C Court of Appeals
Bugaoisan v. Owi Group et al. 2018
The CA is only tasked to determine whether or not the NLRC
committed grave abuse of discretion in its appreciation of factual
issues presented before it by any parties. The CA is not given
unbridled discretion to modify factual ndings of the NLRC and
LA, especially when such matters have not been assigned as errors
nor raised in the pleadings.
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WON the CA was correct when it went beyond the issues of the case
and the assigned errors raised by respondents when it filed the
certiorari petition under Rule 65.
NO. In a Rule 65, petition for certiorari led with the CA, the latter
must limit itself to the determination of whether or not the inferior
court, tribunal, board or o cer exercising judicial or quasi-judicial
functions acted without, in excess of or with grave abuse of
discretion amounting to lack or excess of jurisdiction.
Here, the appellate court modi ed the aforesaid decision by
reducing the award of unpaid salaries due the petitioner on the
ground that the basis should be the rst contract of employment
which had a duration of only one (1) year.
The supervisory jurisdiction of the CA under Rule 65 was con ned
only to the determination of whether or not the NLRC committed
grave abuse of discretion in deciding the issues brought before it on
appeal. To recapitulate, the CA is allowed to consider the factual
issues only insofar as they serve as the basis of the jurisdictional error
imputed to the lower court or in this case, the NLRC.

D Supreme Court

E Bureau of Labor Relations

1) ARTICLE 232. The Bureau of Labor Relations and the Labor
Relations Divisions in the regional o ces of the Department

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of Labor shall have original and exclusive authority to act,
at their own initiative or upon request of either or both
parties, on all inter-union and intra-union con icts,
and all disputes, grievances or problems arising from
or a ecting labor-management relations in all
workplaces, whether agricultural or non-agricultural,
except those arising from the implementation or interpretation
of collective bargaining agreements which shall be the subject
of grievance procedure and/or voluntary arbitration.
2) The Bureau shall have fteen (15) working days to act on
labor cases before it, subject to extension by agreement of the
parties.
3) ARTICLE 245. Cancellation of Registration. — The
certi cate of registration of any legitimate labor organization,
whether national or local, may be cancelled by the Bureau.
4) The BLR and the labor relations divisions in the regional
o ces have original and exclusive authority to act motu proprio
or upon request on:
a) Inter-union disputes or representation disputes —
refer to cases involving petition for certification election
led by a duly registered labor org which seeks to be the
sole and exclusive bargaining agent in an establishment.
b) Intra-union disputes or internal union disputes —
disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and
by-laws of the union, including violations on conditions
of union membership as per LC.
c) All disputes, grievances arising from or a ecting
labor-management relations; except those arising from
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interpretation or implementation of CBA which are
subject to grievance procedure and/or voluntary
arbitration.
National Conciliation and Mediation
F d) Violations of POEA Rules and Regulations involving:
Board
The agency attached to DOLE principally in-charge of the
settlement of labor disputes through conciliation, mediation, and
promotion of voluntary approaches to labor dispute prevention
and settlement.
Salient Points of RA 10396
1) LA or the appropriate DOLE Agency that has jurisdiction
over the dispute shall only entertain only endorsed or
referred cases by the duly authorized o cer.
2) Any or both parties to the dispute may pre-terminate the C-M
and request referral to the appropriate DOLE Agency, or if
both agree, refer the unresolved issue for VA.
DOLE DO No 151-16 or the SEnA IRR
GR: All issues arising from labor and employment shall be subject
to the 30-day mandatory conciliation-mediation.
EXC:
a) Notices of strike/lockout or preventive mediation cases
with the National Conciliation and Mediation Board
(NCMB);
b) Issues arising from the interpretation or implementation
of the collective bargaining agreement and those arising
from interpretation or enforcement of company
Syllabus-based Reviewer for the 2023 Bar
personnel policies which should be processed through the
grievance machinery.
c) Applications for exemption from Wage Orders with the
National Wages and Productivity Commission (NWPC)
1) Serious o enses and o enses penalized with cancellation
of license;
2) Disciplinary actions against overseas workers/seafarers
which are considered serious o enses or which carry the
penalty of delisting from the POEA registry at rst
o ense;
3) Complaints initiated by the POEA;
4) Complaints against an agency whose license is revoked,
cancelled, expired or otherwise delisted; and
5) Complaints categorized under the POEA Rules and
Regulations as not subject to SEnA.
Co-conciliation-mediation. — Coordinated C-M by two or
more SEADs shall be observed if the RFA is led with the SEAD
most convenient to the requesting party but outside the region
where the employer principally operates, the SEADO shall
entertain the same and co-conciliate-mediate with the SEAD of the
region where the employer principally operates.
Consolidation of RFA. — Where two or more RFAs involving
the same responding party and issues are led before di erent
SEADs within the same region/o ce/unit, the RFAs shall be
consolidated before the rst SEAD taking cognizance of the RFAs,
when practicable.
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Schedule of Conferences 2. Narrow down the disagreements and broaden areas for e. Cognizance over referred RFAs — LA or appropriate
settlement; DOLE agency.
a. Initial — within 5 working days from date of assignment of
RFA; 3. Encourage parties to generate options and enter into In case of settlement agreements
stipulations;
b. Succeeding — as many within the 30 day mandatory C-M a. Reduced in writing using the SEnA Settlement Agreement
period; 4. O er proposals and options toward mutually acceptable Form, signed by both parties and attested by the SEADO.
solutions and voluntary settlement;
c. Resetting — GR: not allowed; b. Agreement on monetary claims arising from violations of
5. Prepare the settlement agreement in consultation with the labor standards shall be fair and reasonable, and not contrary
EXC: reasonable ground, concurred by other party. In such
parties; and to law, public morals and public policy.
case, the conference shall be held not later than 3 calendar
days from original sched; 6. Monitor the voluntary and faithful compliance of the c. Types
settlement agreement.
d. Extension — GR: not extendible; i. Full;
c. Pre-termination
EXC: mutual agreement and possibility of settlement. 15 ii. Partial - installment, or reinstatement is on a future
calendar days. 1. Written withdrawal by the requesting party; agreed date.

Conduct of C-M 2. Non-appearance of either parties in two (2) consecutive d. The SEADO shall attach a duly accomplished waiver and
scheduled conferences despite due notices; or quitclaim document as proof of full compliance.
a. Appearance — GR: Personal;
3. Request for referral to the appropriate DOLE o ce or e. In case of non-compliance — The requesting party may le
EXC: Lawyers, agents may appear, with SPAs in the agency by the requesting party or both parties prior to the an action for enforcement with the NLRC/POEA/DOLE
following circumstances: expiration of the 30-day period. Regional O ce.
i. Party is outside of country; d. Issuance of Referral — within 1 day after: f. For enforcement through DOLE RO the requesting party
ii. Party is a minor or incapacitated; or 1. Expiration; may request for the issuance of a writ of execution or the
iii. Party died, with which the heir may appear conduct of compliance visit.
2. Failure to timely reach agreement;
presenting: Preventive Mediation
3. Non-appearance of responding party in 2 consecutive
1. Death Certi cate; scheduled conferences despite due notice; Preventive Mediation Cases refer to labor disputes which are
2. NSO Marriage or Birth Certi cate to prove the subject of a formal or informal request for conciliation and
4. Non-settlement of one or more issues;
relationship. mediation assistance sought by either or both parties or upon the
5. Non-compliance with agreement. initiative of the Board.
b. C-M Process — The SEADO shall:
No referral where the requesting party withdrew RFA.
1. Clarify the issues, validate positions and determine the
underlying issues;

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1) Who may file a request for Preventive Mediation,
Notice of Strike or Lockout. — the following may le a
request for preventive mediation, notice of strike or lockout:
a) The president or any authorized representative of a
certi ed or duly recognized bargaining representative
in cases of bargaining deadlocks and unfair labor
practices.
b) In the absence of a certi ed or duly recognized
bargaining representative, the president or any
authorized representative of a legitimate labor
organization in the establishment on grounds of
unfair labor practice.
c) The employer or any authorized representative in
cases of bargaining deadlocks and unfair labor
practices.
2) Where to file. — A request for preventive mediation, notice
of strike or lockout shall be led through personal service or
by registered mail/private couriers with the Regional Branch
having jurisdiction over the workplace of the union members.
3) Conversion of Notice Strike/Lockout to Preventive
Mediation — in converting a notice of strike or lockout to a
preventive mediation case the following guidelines shall be
observed:
a) Clearly determine whether the issue/s raised is/are
valid ground/s for NS/L;
b) If conversion is warranted, a written recommendation
from the Conciliator-Mediator handling the case is
required, after due consultation with the Branch
Director;
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c) The written recommendation must be formally 1. Jurisdiction
endorsed to the Branch Director for approval;
O ce Basis Jurisdiction
d) The conversion shall be done before the cooling-o
period expires; DOLE Art Recovery of wages, simple money claims and
RD 129 other bene ts
e) Parties concerned must be formally noti ed of the
action taken by the Regional Branch through a letter VA Art All unresolved grievances arising from the
signed by the Conciliator-Mediator handling the case 261 interpretation and implementation of the CBA
and approved by the Branch Director; except those gross in character;
Cases arising from interpretation or
f) The notice shall be dropped from the dockets and to
enforcement of company personnel policies
be renumbered as a preventive mediation case; and
g) A conference shall be immediately set by the Art All other labor disputes including ULP and
concerned Conciliator-Mediator. 262 bargaining deadlocks, upon agreement of the
parties
1 Conciliation vs. Mediation
SOLE Art Within 24 hours from knowledge of an
a) Conciliation — is a mild form of intervention by a neutral 263(g) occurrence of a labor dispute causing or likely to
third party, the Conciliator-Mediator, who relying on his cause a strike or lockout in an industry
persuasive expertise, takes an active role in assisting parties by indispensable to the national interest, SOLE
trying to keep disputants talking, facilitating other procedural may assume jurisdiction, decide on the dispute
niceties, carrying messages back and forth between the parties, or certify the same to NLRC for compulsory
and generally being a good fellow who tries to keep things arbitration.
calm and forward-looking in a tense situation.
1) ARTICLE 129. The RD or any of the duly authorized hearing
b) Mediation — is a mild intervention by a neutral third party,
o cers of DOLE have jurisdiction over claims for recovery
the Conciliator-Mediator, who advises the parties or o ers
of wages, simple money claims and other benefits,
solutions or alternatives to the problems with the end in view
provided that:
of assisting them towards voluntarily reaching their own
mutually acceptable settlement of the dispute. a) Claim arises from ER-EE Relationship;
b) Claimant does not seek reinstatement;
G DOLE Regional Directors
c) Aggregate money claim of each <=P5K.
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2) ARTICLE 268. Representation Issue in Organized Enforcement of labor legislation Monetary claims which only 4. RD issues summons served upon employer as respondent,
Establishments. — In organized establishments, when a in general involve labor standards law together with the copy of complaint;
veri ed petition questioning the majority status of the
O shoots of inspections done Sworn complaints by interested 5. ER is given 5 calendar days to answer;
incumbent bargaining agent is led, the Med-Arbiter
by labor o cers or safety party 6. After receiving the answer, RD calls for a summary hearing;
shall automatically order an election by secret ballot.
engineers
3) ARTICLE 269. Petitions in Unorganized Establishments. 7. RD decides within 30 calendar days from date of ling of
— In any establishment where there is no certi ed bargaining Involves employees still in service Present or past employees at the the complaint;
agent, a CERTIFICATION ELECTION shall time of complaint provided 8. ER may appeal with the NLRC within 5 calendar days from
automatically be conducted by the Med-Arbiter. there is no demand for receipt of decision. Appeal must be with cash or security
reinstatement bond.
4) Appeal to NLRC within 5 cal days from receipt of copy of
decision. No maximum monetary Claim per claimant not to 9. ER may the le MR from an adverse decision of the NLRC;
5) NLRC to resolve within 10 cal days from submission of last amount exceed P5K 10. Petition for Certiorari under Rule 65 to the CA not later than
pleading. 60 days from notice;
Exercised by SOLE or any of his RD or any duly authorized
6) Grounds for appeal (Art 229) duly authorized representatives, hearing o cer of DOLE 11. Appeal by certiorari under Rule 45 to the SC within 15 days
a) Prima facie evidence of abuse of discretion; i.e. the RD from notice on pure questions of law.

b) Decision, order or award secured through fraud or Appealable to SOLE, then to Appealable to NLRC Enforcement Power on Health and Safety of Workers
coercion, including graft and corruption; CA 1. An inspection is made via Art 128;
c) Made purely on questions of law; 2. Non-compliance was discovered that poses grave and
Recovery of Wages and Simple Money Claims
d) Serious errors in the ndings of facts. imminent danger to the health and safety of workers in
1. Requisites: the workplace.
2. Recovery and adjudicatory power a. Claimant is an employee or domestic worker; 3. SOLE may order stoppage of work or suspension of
Visitorial and Enforcement b. Claim does not exceed P5K; operations of unit or department concerned;
Simple Money Claim
Power 4. Within 24 hours, a hearing shall be conducted to determine
c. No claim of reinstatement;
Art 128 Art 129 whether said stoppage order shall be lifted or not.
d. Claim arose from ER-EE relationship.
a. If violation is attributable to ER, he shall pay the
Police power - Inspection and Quasi-judicial - Adjudication 2. Employee les a pro-forma complaint with the RD;
wages of EEs during the period of stoppage or
issuance of orders to compel through summary proceedings 3. RD dockets the complaint as simple money claim; suspension of operations.
compliance
b. Suspension should not exceed 6 months.

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5. see RA 11058, Strengthening Compliance with
Occupational Safety & Health Standards;
6. SEC. 23. Payment of Workers During Work Stoppage Due to
Imminent Danger. — If stoppage of work due to imminent
danger occurs as a result of the employer's violation or
fault, the employer shall pay the workers concerned their
wages during the period of such stoppage of work or
suspension of operations.
7. In National Mines and Allied Workers Union v. Marcopper
Mining, if the suspension of operations was ordered by a
government agency other than the DOLE, the general "no
work, no pay" rule should prevail with respect to
employees' wages during the suspension period, subject to
existing CBA terms on leave credits and similar bene ts of
employees.
8. DOLE D.O. No. 198, S. 2018, distinguished from Bona fide
suspension of operations (Art 301).
Closure of Business under RA 9231
DOLE DC 03-09
SOLE or RD may order closure of business found to have violated
any provisions of RA 9231 more than 3 times.
GR: Prior notice and hearing is required before issuance of
such Closure Order, unless:
EXC:
a. Violation resulted to death, insanity, or serious physical
injury to a child employed;
b. Prostitution or obscene or lewd shows; or
c. There is imminent danger in the life and limb of a child.
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Under any such circumstance, SOLE or RD must, within 5
working days from receipt of complaint, order immediate
closure.
A close-now-hear-later process is to be adhered to, which shall be
summary in nature.
H DOLE Secretary
1 Jurisdiction
ARTICLE 278. Strikes, Picketing, and Lockouts. xxxx
(g) When, in his opinion, there exists a labor dispute causing or
likely to cause a strike or lockout in an industry indispensable
to the national interest, the SOLE may assume jurisdiction over
the dispute and decide it or certify the same to the Commission for
compulsory arbitration. xxxx
(h) Before or at any stage of the compulsory arbitration process, the
parties may opt to submit their dispute to voluntary arbitration.
(i) The SOLE, the Commission or the voluntary arbitrator or panel
of voluntary arbitrators shall decide or resolve the dispute within
thirty (30) calendar days from the date of the assumption of
jurisdiction or the certi cation or submission of the dispute,
as the case may be. The decision of the President, the SOLE, the
Commission or the voluntary arbitrator shall be nal and executory
ten (10) calendar days after receipt thereof by the parties.
2 Visitorial and Enforcement Powers
1) There is a report on non-compliance of employer;
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2) Upon receipt by SOLE or RD, there will be an ORDER OF
INSPECTION;
3) The inspection will be implemented by a Labor and
Employment O cer who will then visit the employer’s
premises and conduct inspection.
4) Inspector will make an INSPECTION REPORT should
there be violation or non-compliance.
a) Embodied in a NOTICE OF INSPECTION
RESULTS;
b) All violations will be enumerated therein.
5) Employer is then informed of the results of the inspection;
6) Employer is given the opportunity to comply within 7 days;
OR
7) Employer may contest the NIR and raise issues which cannot
be resolved without considering DOCUMENTARY
PROOFS that are not veri able in the normal course of the
inspection;
8) Should the employer fail to contest, as well as fails to comply
to the NIR, RD will then issue an ORDER OF
COMPLIANCE;
9) Employer has the following remedies from said order:
a) Appeal to SOLE within 10 calendar days, with bond;
b) Motion for reconsideration with the RD within 7
calendar days;
c) If beyond 7 but not beyond 10 days, considered an appeal
from RD to SOLE.
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10) Failure to le MR within reglementary period will make order
FINAL AND EXECUTORY.
11) Should employer be able to validly contest NIR, the
proceeding becomes adversarial:
a) RD will endorse the case to RAB of NLRC;
b) Endorsed to LA;
c) May be appealed to NLRC within 10 days from receipt of
Decision; MR allowed within 10 days;
d) Petition for Certiorari under Rule 65 to the CA not later
than 60 days from notice;
e) Appeal by certiorari under Rule 45 to the SC within 15
days from notice on pure questions of law.
12) see DOLE D.O. No. 183, S. 2017
13) In People’s Broadcasting Service v. SOLE 2012 En Banc,
the issue was WON the SOLE, in exercising his visitorial
power, can determine the existence of ER-EE relationship. YES.
14) In Balladares v. Peak Ventures, the worker need not litigate
to get what legally belongs to him, for the whole enforcement
machinery of the DOLE exists to insure its expeditious
delivery to him free of charge.
15) Exception clause of Art 128. — In Meteoro v. Creative
Creatures, respondent contested the ndings of the labor
inspector during and after the inspection and raised issues the
resolution of which necessitated the examination of
evidentiary matters not veri able in the normal course of
inspection. Hence, the Regional Director was divested of
jurisdiction and should have endorsed the case to the
appropriate Arbitration Branch of the NLRC.
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3 Power to Suspend E ects of Termination
ARTICLE 292. Miscellaneous Provisions. — xxxx
(b) xxxx The Secretary of the Department of Labor and
Employment may suspend the effects of the termination
pending resolution of the dispute in the event of a prima facie
nding by the appropriate o cial of the DOLE before whom such
dispute is pending that the termination
1. may cause a serious labor dispute or
2. is in implementation of a mass lay-o .
4 Remedies
The ndings of the DOLE, may still be questioned through a
petition for certiorari under Rule 65 of the Rules of Court.
NOT to the NLRC, but to the CA.
I Voluntary Arbitrator
ARTICLE 273. Grievance Machinery and Voluntary Arbitration. —
The parties to a CBA shall include therein provisions that will
ensure the mutual observance of its terms and conditions.
They shall establish a machinery for the adjustment and resolution
of grievances arising from the interpretation or implementation of
their CBA and those arising from the interpretation or enforcement
of company personnel policies.
All grievances submitted to the grievance machinery which are not
settled within seven (7) calendar days from the date of its submission
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shall automatically be referred to voluntary arbitration prescribed
in the CBA.
For this purpose, parties to a CBA shall name and designate in
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or
include in the agreement a procedure for the selection of such
Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably
from the listing of quali ed Voluntary Arbitrators duly accredited by
the Board.
In case the parties fail to select a Voluntary Arbitrator or panel of
Voluntary Arbitrators, the Board shall designate the Voluntary
Arbitrator or panel of Voluntary Arbitrators, as may be necessary,
pursuant to the selection procedure agreed upon in the CBA, which
shall act with the same force and e ect as if the Arbitrator or panel of
Arbitrators have been selected by the parties.
1) Grievance refers to any question by either the employer or the
union regarding the interpretation or implementation of any
provision of the collective bargaining agreement or
interpretation or enforcement of company personnel policies.
2) Grievance handling
a) An employee shall present this grievance or complaint
orally or in writing to the shop steward.
b) If the grievance is valid, the shop steward shall
immediately bring the complaint to the employee's
immediate supervisor.
c) If no settlement is reached, the grievance shall be referred
to the grievance committee which shall have ten (10)
days to decide the case. (Sec 2 Rule XIX Book 5)
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3) Grievance; Concept and Scope. — Refers to any question Compulsory Voluntary 1. Jurisdiction
by either the employer or the union regarding
Definition The law declares Contractual proceeding ARTICLE 274. Jurisdiction of Voluntary Arbitrators and Panel of
a) the interpretation or implementation of any provision of the dispute subject wherein the parties, to obtain a Voluntary Arbitrators. — The Voluntary Arbitrator or panel of
the collective bargaining agreement or to arbitration, speedy and inexpensive nal Voluntary Arbitrators shall have original and exclusive
b) interpretation or enforcement of company personnel regardless of consent disposition of the matter, jurisdiction to hear and decide
policies or of the parties. select a judge of their own
choice and by consent, submit 1. all unresolved grievances arising from the
c) any claim by either party that the other party is violating interpretation or implementation of the CBA and
their controversy to him.
any provision of the CBA or company personnel policies.
2. those arising from the interpretation or enforcement of
4) Grievance machinery; Unresolved grievances. — Refers to Done by Labor Arbiter, Voluntary Arbitrator, an
company personnel policies.
the internal rules of procedures established by the parties in clothed with impartial 3rd person named by
their CBA with voluntary arbitration as the terminal original and both parties Accordingly, violations of a CBA, except those which are gross in
step, which are intended to resolve all issues arising from the exclusive character, shall no longer be treated as unfair labor practice and shall
implementation and interpretation of their collective jurisdiction (Art be resolved as grievances under the CBA.
agreement and the company personnel policies or company 217)
For purposes of this article, gross violations of CBA shall mean
rules and regulations. agrant and/or malicious refusal to comply with the economic
Nature Adversarial; May be done prior to or
5) Company Personnel Policies. — are guiding principles initiated by a during compulsory provisions of such agreement.
stated in broad, long-range terms that express the complaint. arbitration; (B5-R19-S5) The Commission, its Regional O ces and the Regional Directors of
philosophy or beliefs of an organization’s top authority the DOLE shall not entertain disputes, grievances or matters under
regarding personnel matters. They deal with matters Settlement of labor Private judicial system; the exclusive and original jurisdiction of the Voluntary Arbitrator or
a) A ecting e ciency and well-being of employees and disputes by a panel of Voluntary Arbitrators and shall immediately dispose and
government Non-litigious, not governed by refer the same to the Grievance Machinery or Voluntary Arbitration
b) Include the procedures in the administration of agency. technical ROC, but still provided in the CBA.
i) Wages, observes due process.

ii) Bene ts, ARTICLE 275. Jurisdiction over Other Labor Disputes. — The
Initiated Complaint; to be a) Submission agreement;
Voluntary Arbitrator or panel of Voluntary Arbitrators, upon
iii) Promotions, by answered by other b) Demand or Notice,
agreement of the parties, shall also hear and decide all other labor
party. invoking a CBA clause;
iv) Transfer and other personnel movement. Which are disputes including unfair labor practices and bargaining deadlocks.
c) Or both
not spelled out in the CBA.
Appeal to NLRC, who merely reviews for errors of fact or law. 1) Exclusive and original. —

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Labor Law and Social Legislation
a) all unresolved grievances arising from the
implementation or interpretation of the collective
bargaining agreements and
b) those arising from the interpretation or enforcement
of company personnel policies
c) wage distortion issues arising from the application of
any wage orders in organized establishments,
d) unresolved grievances arising from the interpretation and
implementation of the productivity incentive
programs under R.A. 6971
2) Concurrent. — All other labor disputes including ULP and
bargaining deadlocks, upon agreement of the parties.
Before or at any stage of compulsory arbitration, parties may
opt to submit to VA instead.
3) Voluntary arbitration. — a mode of settling labor
management disputes by which the parties select a competent,
trained and impartial person who shall decide on the merits of
the case and whose decision is nal, executory and binding.
4) Nature of proceedings. — The proceedings before a
voluntary arbitrator are non-litigious in nature. They are
not governed by technical rules applicable to court or judicial
proceedings, but they must, at all times, comply with the
requirements of due process.
5) Decision of voluntary arbitrator, and prohibited
motion. — THE decision of THE voluntary arbitrator
SHALL BE nal and executory after ten (10) calendar days
from receipt of the copy of the decision by the parties.
eCodal+Pro by RGL
Syllabus-based Reviewer for the 2023 Bar
2. Remedies 5) Illegal Recruitment. — FIVE (5) years:
1) The petition for review shall be led within 15 days If involving economic sabotage shall prescribe in twenty
pursuant to Section 4, Rules 43 of the Rules of Court; (20) years.
2) Rule 45, procedure before the SC. 6) Execution of Judgment — FIVE (5) YEARS.
7) Backwages as a relief for illegal dismissal is
Guagua National Colleges v. CA 2018 En Banc IMPRESCRIPTIBLE.
The 10-day period stated in Article 276 should be understood as the 8) Separation pay and retirement bene ts are akin to money
period within which the party adversely a ected by the ruling of the claims.
Voluntary Arbitrators or Panel of Arbitrators may le a motion for
reconsideration. Only after the resolution of the motion for
reconsideration may the aggrieved party appeal to the CA by ling
the petition for review under Rule 43 of the Rules of Court within
15 days from notice pursuant to Section 4 of Rule 43.
J Prescription of Actions
1) Illegal dismissal —
a) If with prayer of reinstatement — the EE is given a
period of FOUR (4) YEARS from the time of his
illegal dismissal within which to institute the
complaint (Art 1146, NCC);
b) If WITHOUT reinstatement — THREE (3)
YEARS.
2) Money claims — THREE (3) YEARS from the time the
action accrued;
3) Unfair Labor Practice — ONE (1) YEAR from accrual;
4) Penal provisions under LC — THREE (3) YEARS;
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