(As of 06/17, 2:30PM) This is exactly what I have indicated it to
218, 219, and 290, Labor Code
be: a memory aid of some sorts, which I based from the
syllabus and discussion of Atty. Quan and Chan’s Labor Law
Bar Reviewer, and formatted for easier memorization and
recall.
All for love.
-BB
LABOR II
I. BASIC CONCEPTS
Art. III, Sec. 8, 1987 Constitution
Section 8.
The right of the people, including those
employed in the public and private sectors,
to form unions, associations, or societies
for purposes not contrary to law shall not
be abridged.
Art. XIII, Sec. 3, 1987 Constitution
Section 3.
The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full
employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers
to self-organization, collective
bargaining and negotiations, and
peaceful concerted activities, including
the right to strike in accordance with law.
They shall be entitled to security of
tenure, humane conditions of work, and
a living wage. They shall also participate
in policy and decision-making processes
affecting their rights and benefits as may be
provided by law.
The State shall promote the principle of
shared responsibility between workers and
employers and the preferential use of
voluntary modes in settling disputes,
including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
The State shall regulate the relations
between workers and employers,
recognizing the right of labor to its just
share in the fruits of production and the
right of enterprises to reasonable returns on
investments, and to expansion and growth.
Arts.
Article 218. Declaration of Policy.
A. It is the policy of the State:
(a) To promote and emphasize the primacy
of free collective bargaining and
negotiations, including voluntary
arbitration, mediation and conciliation, as
modes of settling labor or industrial
disputes;
(b) To promote free trade unionism as an
instrument for the enhancement of
democracy and the
promotion of social justice and
development;
(c) To foster the free and voluntary
organization of a strong and united labor
movement;
(d) To promote the enlightenment of
workers concerning their rights and
obligations as union members
and as employees;
(e) To provide an adequate administrative
machinery for the expeditious settlement
of labor or industrial disputes;
(f) To ensure a stable but dynamic and just
industrial peace; and
(g) To ensure the participation of workers in
decision and policy-making processes
affecting their rights, duties and welfare.
B. To encourage a truly democratic method
of regulating the relations between the
employers and employees by means of
agreements freely entered into through
collective bargaining, no court or
administrative agency or official shall have
the power to set or fix wages, rates of pay,
hours of work or other terms and
conditions of employment, except as
otherwise provided under this Code.
Article 219. Definitions.
(a) "Commission" means the National
Labor Relations Commission or any of its
divisions, as the case may be, as provided
under this Code.
(b) "Bureau" means the Bureau of Labor
Relations and/or the Labor Relations
Divisions in the regional offices established
under Presidential Decree No. 1, in the
Department of Labor.
(c) "Board" means the National Conciliation
and Mediation Board established under
Executive Order No. 126.
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(d) "Council" means the Tripartite Voluntary
Arbitration Advisory Council established
under Executive Order No. 126, as
amended.
(e) "Employer" includes any person acting
in the interest of an employer, directly or
indirectly. The term shall not include any
labor organization or any of its officers or
agents except when acting as employer.
(f) "Employee" includes any person in the
employ of an employer. The term shall not
be limited to the employees of a particular
employer, unless the Code so explicitly
states. It shall include any individual whose
work has ceased as a result of or in
connection with any current labor dispute
or because of any unfair labor practice if he
has not obtained any other substantially
equivalent and regular employment.
(g) "Labor organization" means any union
or association of employees which exists in
whole or in part for the purpose of
collective bargaining or of dealing with
employers concerning terms and
conditions of employment.
(h) "Legitimate labor organization" means
any labor organization duly registered with
the Department of Labor and Employment,
and includes any branch or local thereof.
(i) "Company union" means any labor
organization whose formation, function or
administration has been assisted by any act
defined as unfair labor practice by this
Code.
(j) "Bargaining representative" means a
legitimate labor organization or any officer
or agent of such organization whether or
not employed by the employer.
(k) "Unfair labor practice" means any unfair
labor practice as expressly defined by this
Code.
(l) "Labor dispute" includes any controversy
or matter concerning terms and conditions
of employment or the association or
representation of persons in negotiating,
fixing, maintaining, changing or arranging
the terms and conditions of employment,
regardless of whether the disputants stand
in the proximate relation of employer and
employee.
(m) "Managerial employee" is one who is
vested with the powers or prerogatives to
lay down and execute management
policies and/or to hire, transfer, suspend,
lay-off, recall, discharge, assign or
discipline employees. Supervisory
employees are those who, in the interest of
the employer, effectively recommend such
managerial actions if the exercise of such
authority is not merely routinary or clerical
in nature but requires the use of
independent judgment. All employees not
falling within any of the above definitions
are considered rank-and-file employees for
purposes of this Book.
(n) "Voluntary Arbitrator" means any
person accredited by the Board as such, or
any person named or designated in the
Collective Bargaining Agreement by the
parties to act as their Voluntary Arbitrator,
or one chosen with or without the
assistance of the National Conciliation and
Mediation Board, pursuant to a selection
procedure agreed upon in the Collective
Bargaining Agreement, or any official that
may be authorized by the Secretary of
Labor and Employment to act as Voluntary
Arbitrator upon the written request and
agreement of the parties to a labor dispute.
(o) "Strike" means any temporary stoppage
of work by the concerted action of
employees as a result of an industrial or
labor dispute.
(p) "Lockout" means any temporary refusal
of an employer to furnish work as a result of
an industrial or labor dispute.
(q) "Internal union dispute" includes all
disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by laws of
a union, including any violation of the rights
and conditions of union membership
provided for in this Code.
(r) "Strike-breaker" means any person who
obstructs, impedes, or interferes with by
force, violence, coercion, threats, or
intimidation any peaceful picketing
affecting wages, hours or conditions of
work or in the exercise of the right of self-
organization or collective bargaining.
(s) "Strike area" means the establishment,
warehouses, depots, plants or offices,
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 from before all points of
Billie Blanco (3E) | Ateneo Law 2022 | 2
entrance to and exit from said
establishment.
Article 290. Tripartism, Tripartite
Conferences, and Tripartite Industrial Prace
Councils.
(a) Tripartism in labor relations is hereby
declared a State policy. Towards this end,
workers and employers shall, as far as
practicable, be represented in decision
and policy-making bodies of the
government.
(b) The Secretary of Labor and Employment
or his duly authorized representatives may
from time to time call a national, regional,
or industrial tripartite conference of
representatives of government, workers
and employers, and other interest groups
as the case may be, for the consideration
and adoption of voluntary codes of
principles designed to promote industrial
peace based on social justice or to align
labor movement relations with established
priorities in economic and social
development. In calling such conference,
the Secretary of Labor and Employment
may consult with accredited
representatives of workers and employers.
(c) A National Tripartite Industrial Peace
Council (NTIPC) shall be established,
headed by the Secretary of Labor and
Employment, with 20 representatives each
from the labor and employers' sectors to
be designated by the President at regular
intervals. For this purpose, a sectoral
nomination, selection, and recall process
shall be established by the DOLE in
consultation with the sectors observing the
'most representative' organization criteria
of ILO Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs)
at the regional or industry level shall also
be established with representatives from
government, workers and employers to
serve as a continuing forum for tripartite
advisement and consultation in aid of
streamlining the role of government,
empowering workers' and employers'
organizations, enhancing their respective
rights, attaining industrial peace, and
improving productivity.
The TIPCs shall have the following
functions:
(1) Monitor the full implementation and
compliance of concerned sectors with the
provisions of all tripartite instruments,
including international conventions and
declarations, codes of conduct, and social
accords;
(2) Participate in national, regional or
industry-specific tripartite conferences
which the President or the Secretary of
Labor and Employment may call from time
to time;
(3) Review existing labor, economic and
social policies and evaluate local and
international developments affecting
them;
(4) Formulate, for submission to the
President or to Congress, tripartite views,
recommendations and proposals on labor,
economic, and social concerns, including
the presentation of tripartite positions on
relevant bills pending in Congress;
(5) Advise the Secretary of Labor and
Employment in the formulation or
implementation of policies and legislation
affecting labor and employment;
(6) Serve as a communication channel and
a mechanism for undertaking joint
programs among government, workers,
employers and their organizations toward
enhancing labor-management relations;
and
(7) Adopt its own program of activities and
rules, consistent with development
objectives.
All TIPCs shall be an integral part of the
organizational structure of the NTIPC.
The operations of all TIPCs shall be funded
from the regular budget of the DOLE.
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 II. RIGHT TO SELF-ORGANIZATION
CONCEPT & SCOPE
Arts. 253, 257, 292(c), and 219(e, f), Labor
Code
Article 253. Coverage and Employees’
Right to Self-Organization.
All persons employed in
1. commercial, industrial, and agricultural
enterprises; and
2. religious, charitable, medical, or
educational institutions, whether operating
for profit or not
shall have the right to self-organization
and to form, join, or assist labor
organizations of their own choosing for
purposes of collective bargaining.
Ambulant, intermittent, and itinerant
workers, self-employed people, rural
workers and those without any definite
employers may form labor organizations
for their mutual aid and protection.
Article 257. Non-Abridgment of Right to
Self-Organization.
It shall be unlawful for any person to
restrain, coerce, discriminate against or
unduly interfere with employees and
workers in their exercise of the right to
self-organization.
Such right shall include the right to form,
join, or assist labor organizations for the
purpose of collective bargaining through
representatives of their own choosing and
to engage in lawful concerted activities for
the same purpose for their mutual aid and
protection, subject to the provisions of
Article 2641 of this Code.
Article 292. Miscellaneous Provisions.
XXX
(c) Any employee, whether employed for
a definite period or not, shall, beginning on
his first day of service, be considered as an
1
Article 264 provides that:
ARTICLE 264. Duty to Bargain Collectively When There
Exists a Collective Bargaining Agreement. — When there
is a collective bargaining agreement, the duty to
bargain collectively shall also mean that neither party
shall terminate nor modify such agreement during its
employee for purposes of membership in
any labor union.
Article 219
XXX
(e) "Employer" includes any person acting
in the interest of an employer, directly or
indirectly. The term shall not include any
labor organization or any of its officers or
agents except when acting as employer.
(f) "Employee" includes any person in the
employ of an employer. The term shall not
be limited to the employees of a particular
employer, unless the Code so explicitly
states. It shall include any individual whose
work has ceased as a result of or in
connection with any current labor dispute
or because of any unfair labor practice if he
has not obtained any other substantially
equivalent and regular employment.
Note: The right to form, join, or assist a union
is specifically protected in the Constitution
and such right shall not be abridged.
• The right to self-organization
includes:
(1) the right to form, join or assist
labor organizations for the
purpose of collective bargaining
through representatives of their
own choosing; and
(2) the right to engage in lawful
concerted activities for the same
purpose for their mutual aid and
protection.
WHO MAY EXERCISE THE RIGHT TO SELF
ORGANIZATION
All persons
(1) Commercial, industrial, and agricultural
enterprises, including the employees of
GOCC without original charters
establishment under the Corporation Code;
and
lifetime. However, either party can serve a written notice
to terminate or modify the agreement at least 60 days
prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full
force and effect the terms and conditions of the existing
agreement during the 60-day period and/or until a new
agreement is reached by the parties.
Billie Blanco (3E) | Ateneo Law 2022 | 4
(2) Religious, charitable, medical, or
education institutions, whether for profit or
not
shall have the right to self-organization and
to form, join, or assist labor organizations
of their own choosing for purposes of
collective bargaining.
All other workers
(1) Ambulant, intermittent, and itinerant
workers;
(2) Self-employed people;
(3) Rural workers; and
(4) Those without any definite employees
may form labor organizations for their
mutual aid and protection.
Alien employees
GENERAL RULE: All aliens are strictly
prohibited from engaging directly or
indirectly in all forms of trade union activities.
EXCEPTION: Alien may exercise the right of
self-organization and join or assist labor
unions for purposes of collective
bargaining, provided the following
requisites are fulfilled:
(1) With valid working permits issued by the
DOLE; and
(2) If they are nationals of a country which
grants the same or similar rights to Filipino
workers.
Security Guards
Under the old rules, security guards were
barred from joining a labor organization of
the rank-and-file. Under R.A. 6715, they may
now freely join a labor organization of the
rank-and-file or that of the supervisory union,
depending on their ra
LABOR ORGANIZATIONS AND
REGISTRATION OF UNIONS
Arts. 219 (g, h), 237, 240-251, and 292(a),
Labor Code
Article 219.
XXX
(g) "Labor organization" means any union
or association of employees which exists in
whole or in part for the purpose of
collective bargaining or of dealing with
employers concerning terms and
conditions of employment.
(h) "Legitimate labor organization" means
any labor organization duly registered with
the Department of Labor and Employment,
and includes any branch or local thereof.
Article 237. Registry of Unions and File of
Collective Bargaining Agreements.
The Bureau shall keep a registry of
legitimate labor organizations.
The Bureau shall also maintain a file of all
collective bargaining agreements and
other related agreements and records of
settlement of labor disputes and copies of
orders and decisions of voluntary
arbitrators or panel of voluntary arbitrators.
The file shall be open and accessible to
interested parties under conditions
prescribed by the Secretary of Labor and
Employment, provided that no specific
information submitted in con􀁁dence shall
be disclosed unless authorized by the
Secretary, or when it is at issue in any
judicial litigation, or when public interest or
national security so requires.
Within 30 days from the execution of a
Collective Bargaining Agreement, the
parties shall submit copies of the same
directly to the Bureau or the Regional
Offices of the Department of Labor and
Employment for registration accompanied
with verified proofs of its posting in two
conspicuous places in the place of work
and ratification by the majority of all the
workers in the bargaining unit. The Bureau
or Regional Offices shall act upon the
application for registration of such
Collective Bargaining Agreement within 5
calendar days from receipt thereof. The
Regional Offices shall furnish the Bureau
with a copy of the Collective Bargaining
Agreement within 5 days from its
submission.
The Bureau or Regional Office shall assess
the employer for every Collective
Bargaining Agreement a registration fee of
not less than P1,000 or in any other amount
as may be deemed appropriate and
necessary by the Secretary of Labor and
Employment for the effective and efficient
administration of the Voluntary Arbitration
Program. Any amount collected under this
Billie Blanco (3E) | Ateneo Law 2022 | 5
provision shall accrue to the Special
Voluntary Arbitration Fund.
The Bureau shall also maintain a file, and
shall undertake or assist in the publication
of all final decisions, orders and awards of
the Secretary of Labor and Employment,
Regional Directors and the Commission.
Article 240. Requirements of Registration.
A federation, national union or industry
or trade union center, or an independent
union shall acquire legal personality and
shall be entitled to the rights and privileges
granted by law to legitimate labor
organizations upon issuance of the
certificate of registration based on the
following requirements:
(a) P50.00 registration fee;
(b) The names of its officers, their
addresses, the principal address of the
labor organization, the minutes of the
organizational meetings and the list of the
workers who participated in such
meetings;
(c) In case the applicant is an independent
union, the names of all its members
comprising at least 20% of all the
employees in the bargaining unit where it
seeks to operate;
(d) If the applicant union has been in
existence for one or more years, copies of
its annual financial reports; and
(e) 4 copies of the constitution and by-laws
of the applicant union, minutes of its
adoption or ratification, and the list of the
members who participated in it.
Article 241. Chartering and Creation of a
Local Chapter.
A duly registered federation or national
union may directly create a local chapter
by issuing a charter certificate indicating
the establishment of the local chapter.
The chapter shall acquire legal personality
only for purposes of filing a petition for
certification election from the date it was
issued a charter certificate.
The chapter shall be entitled to all other
rights and privileges of a legitimate labor
organization only upon the submission of
the following documents in addition to its
charter certificate:
(a) The names of the chapter's officers, their
addresses, and the principal office of the
chapter; and
(b) The chapter's constitution and by-laws:
Provided, That where the chapter's
constitution and by-laws are the same as
that of the federation or the national union,
this fact shall be indicated accordingly.
The additional supporting requirements
shall be certified under oath by the
secretary or treasurer of the chapter and
attested by its president.
Article 242. Action on Application.
The Bureau shall act on all applications for
registration within 30 days from filing.
All requisite documents and papers shall
be certified under oath by the secretary or
the treasurer of the organization, as the
case may be, and attested to by its
president.
Article 243. Denial of Application.
The decision of the Labor Relations
Division in the regional office denying
registration may be appealed by the
applicant union to the Bureau within 10
days from receipt of notice thereof.
Article 244. Additional Requirements for
Federations or National Unions.
Subject to Article 238, if the applicant for
registration is a federation or a national
union, it shall, in addition to the
requirements of the preceding Articles,
submit the following:
Proof of the affiliation of at least 10
locals or chapters, each of which must be
a duly recognized bargaining agent in the
establishment or industry in which it
operates, supporting the registration of
such applicant federation or national
union; and
The names and addresses of the
companies where the locals or chapters
operate and the list of all the members in
each company involved.
Billie Blanco (3E) | Ateneo Law 2022 | 6
Article 245. Cancellation of Registration.
The certificate of registration of any
legitimate labor organization, whether
national or local, may be cancelled by the
Bureau, after due hearing, only on the
grounds specified in Article 239 hereof.
Article 246. Effect of a Petition for
Cancellation of Registration.
A petition for cancellation of union
registration shall not suspend the
proceedings for certification election nor
shall it prevent the filing of a petition for
certification election.
In case of cancellation, nothing herein shall
restrict the right of the union to seek just
and equitable remedies in the appropriate
courts..
Article 247. Grounds for Cancellation of
Union Registration.
The following may constitute grounds for
cancellation of union registration:
(a) Misrepresentation, false statement or
fraud in connection with the adoption or
ratification of the constitution and by-laws
or amendments thereto, the minutes of
ratification, and the list of members who
took part in the ratification;
(b) Misrepresentation, false statements or
fraud in connection with the election of
officers, minutes of the election of officers,
and the list of voters;
(c) Voluntary dissolution by the members.
Article 248. Voluntary Cancellation of
Registration.
The registration of a legitimate labor
organization may be cancelled by the
organization itself: Provided, That at least
2/3s of its general membership votes, in a
meeting duly called for that purpose to
dissolve the organization: Provided,
further, That an application to cancel
registration is thereafter submitted by the
board of the organization, attested to by
the president thereof.
Article 249. Equity of the Incumbent.
All existing federations and national unions
which meet the qualifications of a
legitimate labor organization and none of
the grounds for cancellation shall continue
to maintain their existing affiliates
regardless of the nature of the industry and
the location of the affiliates.
Article 250. Rights and Conditions of
Membership in a Labor Organization.
The following are the rights and conditions
of membership in a labor organization:
(a) No arbitrary or excessive initiation fees
shall be required of the members of a
legitimate labor organization nor shall
arbitrary, excessive or oppressive fine and
forfeiture be imposed;
(b) The members shall be entitled to full
and detailed reports from their officers and
representatives of all financial transactions
as provided for in the constitution and by-
laws of the organization;
(c) The members shall directly elect their
officers in the local union, as well as their
national officers in the national union or
federation to which they or their local union
is affiliated, by secret ballot at intervals of 5
years. No qualification requirement for
candidacy to any position shall be imposed
other than membership in good standing
in subject labor organization. The secretary
or any other responsible union officer shall
furnish the Secretary of Labor and
Employment with a list of the newly-elected
officers together with the appointive
officers or agents who are entrusted with
the handling of funds within 30 calendar
days after the election of officers or from
the occurrence of any change in the list of
officers of the labor organization;
(d) The members shall determine by secret
ballot, after due deliberation, any question
of major policy affecting the entire
membership of the organization, unless the
nature of the organization or force majeure
renders such secret ballot impractical, in
which case, the board of directors of the
organization may make the decision in
behalf of the general membership;
(e) No labor organization shall knowingly
admit as members or continue in
membership any individual who belongs to
a subversive organization or who is
engaged directly or indirectly in any
subversive activity;
(f) No person who has been convicted of a
crime involving moral turpitude shall be
Billie Blanco (3E) | Ateneo Law 2022 | 7
eligible for election as a union officer or for
appointment to any position in the union;
(g) No officer, agent or member of a labor
organization shall collect any fees, dues, or
other contributions in its behalf or make
any disbursement of its money or funds
unless he is duly authorized pursuant to its
constitution and by-laws;
(h) Every payment of fees, dues or other
contributions by a member shall be
evidenced by a receipt signed by the
officer or agent making the collection and
entered into the record of the organization
to be kept and maintained for the purpose;
(i) The funds of the organization shall not be
applied for any purpose or object other
than those expressly provided by its
constitution and by-laws or those expressly
authorized by written resolution adopted
by the majority of the members at a general
meeting duly called for the purpose;
(j) Every income or revenue of the
organization shall be evidenced by a
record showing its source, and every
expenditure of its funds shall be evidenced
by a receipt from the person to whom the
payment is made, which shall state the
date, place and purpose of such payment.
Such record or receipt shall form part of the
financial records of the organization.
Any action involving the funds of the
organization shall prescribe after 3 years
from the date of submission of the annual
financial report to the Department of Labor
and Employment or from the date the same
should have been submitted as required by
law, whichever comes earlier: Provided ,
That this provision shall apply only to a
legitimate labor organization which has
submitted the financial report
requirements under this Code: Provided,
further, That failure of any labor
organization to comply with the periodic
financial reports required by law and such
rules and regulations promulgated
thereunder 6 months after the effectivity of
this Act shall automatically result in the
cancellation of union registration of such
labor organization;
(k) The officers of any labor organization
shall not be paid any compensation other
than the salaries and expenses due to their
positions as specifically provided for in its
constitution and by-laws, or in a written
resolution duly authorized by a majority of
all the members at a general membership
meeting duly called for the purpose. The
minutes of the meeting and the list of
participants and ballots cast shall be
subject to inspection by the Secretary of
Labor or his duly authorized
representatives. Any irregularities in the
approval of the resolutions shall be a
ground for impeachment or expulsion from
the organization;
(l) The treasurer of any labor organization
and every officer thereof who is
responsible for the account of such
organization or for the collection,
management, disbursement, custody or
control of the funds, moneys and other
properties of the organization, shall render
to the organization and to its members a
true and correct account of all moneys
received and paid by him since he
assumed office or since the last day on
which he rendered such account, and of all
bonds, securities and other properties of
the organization entrusted to his custody or
under his control. The rendering of such
account shall be made:
(1) At least once a year within 30 days after
the close of its fiscal year;
(2) At such other times as may be required
by a resolution of the majority of the
members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and
verified by affidavit and a copy thereof shall
be furnished the Secretary of Labor.
(m) The books of accounts and other
records of the financial activities of any
labor organization shall be open to
inspection by any officer or member
thereof during office hours;
(n) No special assessment or other
extraordinary fees may be levied upon the
members of a labor organization unless
authorized by a written resolution of a
majority of all the members in a general
membership meeting duly called for the
purpose. The secretary of the organization
shall record the minutes of the meeting
Billie Blanco (3E) | Ateneo Law 2022 | 8
including the list of all members present,
the votes cast, the purpose of the special
assessment or fees and the recipient of
such assessment or fees. The record shall
be attested to by the president.
(o) Other than for mandatory activities
under the Code, no special assessments,
attorney's fees, negotiation fees or any
other extraordinary fees may be checked
off from any amount due to an employee
without an individual written authorization
duly signed by the employee. The
authorization should specifically state the
amount, purpose and beneficiary of the
deduction; and
(p) It shall be the duty of any labor
organization and its officers to inform its
members on the provisions of its
constitution and by-laws, collective
bargaining agreement, the prevailing labor
relations system and all their rights and
obligations under existing labor laws.
For this purpose, registered labor
organizations may assess reasonable dues
to finance labor relations seminars and
other labor education activities.
Any violation of the above rights and
conditions of membership shall be a
ground for cancellation of union
registration or expulsion of officers from
office, whichever is appropriate. At least
30% of the members of a union or any
member or members specially concerned
may report such violation to the Bureau.
The Bureau shall have the power to hear
and decide any reported violation to mete
the appropriate penalty.
Criminal and civil liabilities arising from
violations of above rights and conditions of
membership shall continue to be under the
jurisdiction of ordinary courts.
Article 251. Rights of Legitimate Labor
Organizations.
A legitimate labor organization shall have
the right:
(a) To act as the representative of its
members for the purpose of collective
bargaining;
(b) To be certified as the exclusive
representative of all the employees in an
appropriate bargaining unit for purposes
of collective bargaining;
(c) To be furnished by the employer, upon
written request, with its annual audited
financial statements, including the balance
sheet and the profit and loss statement,
within 30 calendar days from the date of
receipt of the request, after the union has
been duly recognized by the employer or
certified as the sole and exclusive
bargaining representative of the
employees in the bargaining unit, or within
60 calendar days before the expiration of
the existing collective bargaining
agreement, or during the collective
bargaining negotiation;
(d) To own property, real or personal, for
the use and benefit of the labor
organization and its members;
(e) To sue and be sued in its registered
name; and
(f) To undertake all other activities
designed to benefit the organization and
its members, including cooperative,
housing, welfare and other projects not
contrary to law.
Notwithstanding any provision of a general
or special law to the contrary, 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. The exemptions provided
herein may be withdrawn only by a special
law expressly repealing this provision.
Article 252. Reportorial Requirements.
The following are documents required to
be submitted to the Bureau by the
legitimate labor organization concerned:
(a) Its constitution and by-laws, or
amendments thereto, the minutes of
ratification, and the list of members who
took part in the ratification of the
constitution and by-laws within 30 days
from adoption or ratification of the
constitution and by-laws or amendments
thereto;
Billie Blanco (3E) | Ateneo Law 2022 | 9
 (b) Its list of officers, minutes of the election
of officers, and list of voters within 30 days
from election;
(c) Its annual financial report within 30 days
after the close of every fiscal year; and
(d) Its list of members at least once a year or
whenever required by the Bureau.
Failure to comply with the above
requirements shall not be a ground for
cancellation of union registration but
shall subject the erring officers or members
to suspension, expulsion from
membership, or any appropriate penalty.
Article 292. Miscellaneous Provisions.
(a) All unions are authorized to collect
reasonable membership fees, union dues,
assessments and fines and other
contributions for labor education and
research, mutual death and hospitalization
benefits, welfare fund, strike fund and
credit and cooperative undertakings.
XXX
LABOR ORGANIZATION
Any union or association of employees in
the private sector which exists in whole or in
part for the purpose of collective bargaining,
mutual aid, interest, cooperation, or other
lawful purposes.
• A legitimate labor organization is any
labor organization in the private
sector registered or reported with the
DOLE.
UNION
Any labor organization in the private sector
organized for collective bargaining and for
other legitimate purposes.
• An independent union is a labor
organization operating at the
enterprise level that acquired legal
personality through independent
registration under Art. 234 of the
Labor Code and Rule III, Sec. 2-A of
these Rules.
Note: Independent unions require the
submission of names of all its members
comprising at least 20% of all the employees
in the bargaining unit.
WORKERS’ ASSOCIATION
An association of workers organized for the
mutual aid and protection of its members or
for any legitimate purpose other than
collective bargaining.
• A legitimate workers’ association is an
n association of workers organized for
mutual aid and protection of its
members or for any legitimate
purpose other than collective
bargaining registered with the DOLE.
NATIONAL UNION/FEDERATION
Any group of legitimate labor
organizations operating within an
identified industry, organized for collective
bargaining or for dealing with employers
concerning terms and conditions of
employment within an industry, or for
participating in the formulation of social and
employment policies, standards and
programs in such industry, which is duly
registered with the Bureau in accordance
with Rule III, Section 2-B of the Rules.
INDUSTRY UNION
Any group of legitimate labor organizations
operating within an identified industry,
organized for collective bargaining or for
dealing with employers concerning terms
and conditions of employment within an
industry, or for participating in the
formulation of social and employment
policies, standards and programs in such
industry, which is duly registered with the
Department.
TRADE UNION CENTER
A group of national unions or federations
organized for the mutual aid and protection
of its members, for assisting such members in
collective bargaining, or for participating in
the formulation of social and employment
policies, standards and programs.
CHARTERED LOCAL
A labor organization in the private sector
operating at the enterprise level that
acquired legal personality through
registration with the Regional Office in
accordance with Rule III, Sec. 2-B of these
Rules.
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EXCLUSIVE BARGAINING (5) 4 copies of the constitution and by-laws of
REPRESENTATIVE the applicant union, minutes of its adoption
A legitimate labor union duly recognized or or ratification, and the list of the members
certified as the sole and exclusive who participated in it.
bargaining representative or agent of all
the employees in a bargaining unit. ADDITIONAL REQUIREMENTS FOR THE
REGISTRATION OF A FEDERATION
MODES OF ACQUIRING LEGITIMACY FOR (1) Proof of the affiliation of at least 10 locals
LABOR ORGANIZATIONS or chapters, each of which must be a duly
(1) (Independent) Registration recognized bargaining agent in the
(2) Chartering establishment or industry in which it operates,
supporting the registration of such applicant
ACQUISITION OF LEGAL PERSONALITY federation or national union; and
A federation, A chapter or (2) The names and addresses of the
national union, chartered local companies where the locals or chapters
industry or trade acquires tentative operate and the list of all the members in
union center, or legal personality to each company involved.
independent union file a Petition for
acquires legal Certificate Election REQUIREMENTS FOR CHARTERING
personality upon upon issuance of the (1) Issuance of a chartered certificate by a
issuance of Chartered duly registered federation or national union.
Certification of Certificate. (2) The names of the chapter's officers, their
Registration. addresses, and the principal office of the
Note: All other chapter; and
rights are vested (3) The chapter's constitution and by-laws.
upon the
submission of the
documents Note: The additional supporting
required by law. requirements shall be certified under oath by
the secretary or treasurer of the chapter and
Note: Such legal personality may be attested by its president.
questioned only through an independent
petition for cancellation of union registration GROUNDS FOR CANCELLATION OF
and not by way of collateral attack in petition REGISTRATION
for certification election proceedings.
(1) Misrepresentation, false statement, or
REGISTRATION FOR THE ISSUANCE OF fraud
CERTIFICATE OF REGISTRATION OF • Adoption or ratification of the
LABOR ORGANIZATIONS constitution or by-laws or
(1) P50.00 registration fee; amendments, the minutes of the
(2) The names of its officers, their addresses, ratification, and the list of members
the principal address of the labor who took part in the ratification
organization, the minutes of the • Election of officers, minutes of the
organizational meetings and the list of the election of officers, and the list of
workers who participated in such meetings; voters
(3) In case the applicant is an independent
union, the names of all its members (2) Voluntary dissolution
comprising at least 20% of all the employees • At least 2/3 of its general membership
in the bargaining unit where it seeks to votes in a meeting called for that
operate; purpose
(4) If the applicant union has been in
existence for one or more years, copies of its Note: An application to cancel registration
annual financial reports; and must be submitted by the board of the

Billie Blanco (3E) | Ateneo Law 2022 | 11

organization, attested to by the president
thereof.
(3) Violations of the rights and conditions
of membership in labor organizations
EFFECT OF A PETITION FOR CANCELLATION
OF REGISTRATION
It shall:
(1) NOT suspend the proceedings for
certification election; or
(2) Prevent the filing of a petition for
certification election.
REPORTORIAL REQUIREMENTS
(1) Its constitution and by-laws, or
amendments thereto, the minutes of
ratification, and the list of members who took
part in the ratification of the constitution and
by-laws within 30 days from adoption or
ratification of the constitution and by-laws or
amendments thereto;
(2) Its list of officers, minutes of the election of
officers, and list of voters within 30 days from
election;
(3) Its annual financial report within 30 days
after the close of every fiscal year; and
(4) Its list of members at least once a year or
whenever required by the Bureau.
Note: Failure to comply with the
requirements shall not be a ground for
cancellation of union registration but shall
subject the erring officers or members to
suspension, expulsion from membership, or
any appropriate penalty.
ELIGIBILITY FOR MEMBERSHIP;
SPECIAL GROUPS OF EMPLOYEES
Arts. 255, 219(m), and 256, Labor Code
Article 255. Ineligibility of Managerial
Employees to Join Any Labor Organization;
Right of Supervisory Employees.
Managerial employees are not eligible to
join, assist or form any labor organization.
Supervisory employees shall not be
eligible for membership in the collective
bargaining unit of the rank-and-file
employees but may join, assist or form
separate collective bargaining units and/or
legitimate labor organizations of their own.
The rank and file union and the supervisors'
union operating within the same
establishment may join the same federation
or national union.
Article 219. Definitions.
XXX
(m) "Managerial employee" is one who is
vested with the powers or prerogatives to
lay down and execute management
policies and/or to hire, transfer, suspend,
lay-off, recall, discharge, assign or
discipline employees.
Supervisory employees are those who, in
the interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely
routinary or clerical in nature but requires
the use of independent judgment.
All employees not falling within any of the
above definitions are considered rank-
and-file employees for purposes of this
Book.
Article 256. Effect of Inclusion as Members
of Employees Outside 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.
MANAGERIAL EMPLOYEES
One who is vested with the powers or
prerogatives to:
(1) lay down and execute management
policies; and/or to
(2) hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline
employees.
SUPERVISORY EMPLOYEES
Those who, in the interest of the employer,
effectively recommend such managerial
actions if the exercise of such authority is not
merely routinary or clerical in nature but
requires the use of independent judgment.
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RANK-AND-FILE EMPLOYEES assist or form any the collective
All of those who are not managerial or labor organization. bargaining unit of
supervisory employees. the rank-and-file
employees; but
CONFIDENTIAL EMPLOYEES (2) MAY join, assist
Those who: or form separate
(1) By the nature of his/her functions, collective
assist, or act in a confidential capacity; bargaining units
and and/or legitimate
(2) To those persons who formulate, labor organizations
determine, and effect management of their own.
policies specifically in the field of labor
relations. Note: What is prohibited is the co-mingling of
the rank-and-file and the supervisors in one
Note: The 2 are cumulative and both must be union. They have to form separate unions.
met if an employee is to be considered a
“confidential employee” that would deprive Coastal Subic Bay no longer applies. The law
him/her of his/her right to form, joint, or assist allows the situation of a rank-and-file union
a labor organization. and a supervisor’s union operating within one
establishing joining one and the same
DOCTRINE OF NECESSARY IMPLICATION federation and national union as affiliates
The doctrine of necessary implication is the thereof.
legal basis for the ineligibility of a confidential
employee to join the union. While Art. 255 of (3) Employees-members of a cooperative
the Labor Code limits the ineligibility to join, • An employee of such a cooperative
assist, or form a labor organization to who is a member and co-owner
managerial employees, jurisprudence has thereof cannot invoke the right to
extended this prohibition to confidential collective bargaining, for certainly an
employees. owner cannot bargain with himself or
• Art. 255 of the Labor Code does not his/her co-owners.
directly prohibit confidential
employees from engaging in union Note: Insofar as it involves cooperatives with
activities. Their disqualification employees who are not members or co-
proceeds from the application of the owners thereof, such employees are entitled
doctrine of necessary implication. By to exercise the rights of all workers to
necessary implication, because organization, collective bargaining
managerial employees are negotiations and others as are enshrined in
disqualified, confidential employees the Constitution and existing laws.
are similarly disqualified. This doctrine
states that what is implied in a statute (4) Religious Objectors
is as much a part thereof as that which • Under the Industrial Peace act,
is expressed. members of the religious sects cannot
be compelled or coerced to join labor
WHO MAY NOT EXERCISE THE RIGHT TO unions even when said unions have
SELF ORGANIZATION closed shop agreements with
(1) Managerial Employees employers.
(2) Confidential Employees • In succeeding cases, the Supreme
Court ruled that the Court's decision
MANAGERIAL EMPLOYEES RULE v. in Victoriano vs. Elizalde Rope Workers
SUPERVISORY EMPLOYEES RULE Union upholding the right of
Managerial Supervisory members of the Iglesia ni Kristo sect
employees are employees shall: not to join a labor union for being
NOT eligible to join, (1) NOT be eligible contrary to their religious beliefs, does
for membership in

Billie Blanco (3E) | Ateneo Law 2022 | 13

 not bar the members of that sect from
forming their own union.
o In a June 1992 decision, the Supreme
Court held that INK members have the
right to vote in a certification election.
(4) Employees of foreign embassies,
consulates, and international organizations
• Generally, these are organizations set-
up by agreement between 2 or more
states. They are immune from local
jurisdiction.
• The grant of such immunity is a
political question whose resolution by
the executive branch of government is
conclusive upon the courts.
• Examples of such organizations are
the International Rice Research
Institute (IRRI) and the International
Catholic Migration Commission
(ICMC).
(5) Government Employees
Note: The prohibitions are not absolute.
• Employees of GOCC established
under the Corporation Code shall
have the right to organize and to
bargain collectively with their
respective employers.
• All other employees in the civil
service shall have the right to form
associations for purposes not contrary
to law.
• Executive Order No. 180: The scope
of the constitutional right of self-
organization of government
employees was defined and
delineated.
GENERAL RULE:
Government employees have the right to self-
organization not for collective bargaining but
for furtherance and protection of their
interests.
EXCEPTIONS:
(1) AFP;
(2) Police officers;
(3) Firemen; and
(4) Jail guards.
Note: For reasons of security and safety, they
are not allowed to unionize.
Also, high level employees whose functions
are normally considered as policy making or
managerial, or whose duties are of a highly
confidential nature do not have the right to
self-organization.
EFFECT OF INCLUSION OF MEMBERS OF
EMPLOYEES OUTSIDE THE BARGAINING
UNIT
• The inclusion of union members of
employees outside the bargaining
unit is not a ground for the
cancellation of registration of the
union.
• Any excluded members are
automatically deemed removed by
operation of law form the list of
legitimate members.
UNION SECURITY CLAUSE
Ars. 259 (e), Labor Code
Article 259. Unfair Labor Practices of
Employers.
It shall be unlawful for an employer to
commit any of the following unfair labor
practices:
XXX
(e) 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.
Nothing in this Code or in any other law
shall stop the parties from requiring
membership in a recognized collective
bargaining agent as a condition for
employment, except those employees who
are already members of another union at
the time of the signing of the collective
bargaining agreement.
Employees of an appropriate bargaining
unit who are not members of the
recognized collective bargaining agent
may be assessed a reasonable fee
equivalent to the dues and other fees paid
by members of the recognized collective
bargaining agent, if such non-union
members accept the benefits under the
Billie Blanco (3E) | Ateneo Law 2022 | 14
 collective bargaining agreement:
Provided, That the individual authorization
required under Article 242, paragraph (o)
of this Code 204 shall not apply to the non-
members of the recognized collective
bargaining agent;
UNION SECURITY CLAUSE
GENERAL RULE: Nothing in this Code or in
any other law shall stop the parties from
requiring membership in a recognize
collective bargaining agent as a condition for
employment.
• A union security clause essentially
requires membership in the union so
that an employee may retain his/her
job and the union’s existence is
assumed.
• Union security is a generic term which
is applied to and comprehends
"closed shop," "union shop,"
"maintenance of membership" or any
other form of agreement which
imposes upon employees the
obligation to acquire or retain union
membership as a condition affecting
employment.
EXCEPTION: Employees who are already
members of another union at the time of the
signing of the CBA.
TYPES OF UNION SECURITY CLAUSES
1. Closed Shop
• Only union members can be hired by
the company and they must remain as
union members to retain employment
in the company.
2. Union Shop
• An agreement where all new regular
employees are required to join the
union within a certain period as
condition for their continued
employment.
3. Maintenance of Membership Shop
• An agreement where present and
future union members must maintain
their membership as a condition for
continued employment until they are
promoted or transferred out of the
bargaining unit or the agreement is
terminated.
4. Agency Shop
• An agreement whereby employees
must either join the union or pay to the
union as exclusive bargaining agent a
sum equal to that paid by the
members.
CONDITIONS OF MEMBERSHIP;
RIGHTS OF MEMBERS
Arts 250, 289, 228 (b), and 259(e), Labor
Code
Article 250. Rights and Conditions of
Membership in a Labor Organization.
The following are the rights and conditions
of membership in a labor organization:
(a) No arbitrary or excessive initiation fees
shall be required of the members of a
legitimate labor organization nor shall
arbitrary, excessive or oppressive fine and
forfeiture be imposed;
(b) The members shall be entitled to full
and detailed reports from their officers and
representatives of all financial transactions
as provided for in the constitution and by-
laws of the organization;
(c) The members shall directly elect their
officers in the local union, as well as their
national officers in the national union or
federation to which they or their local union
is affiliated, by secret ballot at intervals of 5
years. No qualification requirement for
candidacy to any position shall be imposed
other than membership in good standing
in subject labor organization. The secretary
or any other responsible union officer shall
furnish the Secretary of Labor and
Employment with a list of the newly-elected
officers together with the appointive
officers or agents who are entrusted with
the handling of funds within 30 calendar
days after the election of officers or from
the occurrence of any change in the list of
officers of the labor organization;
(d) The members shall determine by secret
ballot, after due deliberation, any question
of major policy affecting the entire
membership of the organization, unless the
nature of the organization or force majeure
renders such secret ballot impractical, in
which case, the board of directors of the
organization may make the decision in
behalf of the general membership;
Billie Blanco (3E) | Ateneo Law 2022 | 15
(e) No labor organization shall knowingly
admit as members or continue in
membership any individual who belongs to
a subversive organization or who is
engaged directly or indirectly in any
subversive activity;
(f) No person who has been convicted of a
crime involving moral turpitude shall be
eligible for election as a union officer or for
appointment to any position in the union;
(g) No officer, agent or member of a labor
organization shall collect any fees, dues, or
other contributions in its behalf or make
any disbursement of its money or funds
unless he is duly authorized pursuant to its
constitution and by-laws;
(h) Every payment of fees, dues or other
contributions by a member shall be
evidenced by a receipt signed by the
officer or agent making the collection and
entered into the record of the organization
to be kept and maintained for the purpose;
(i) The funds of the organization shall not be
applied for any purpose or object other
than those expressly provided by its
constitution and by-laws or those expressly
authorized by written resolution adopted
by the majority of the members at a general
meeting duly called for the purpose;
(j) Every income or revenue of the
organization shall be evidenced by a
record showing its source, and every
expenditure of its funds shall be evidenced
by a receipt from the person to whom the
payment is made, which shall state the
date, place and purpose of such payment.
Such record or receipt shall form part of the
financial records of the organization.
Any action involving the funds of the
organization shall prescribe after 3 years
from the date of submission of the annual
financial report to the Department of Labor
and Employment or from the date the same
should have been submitted as required by
law, whichever comes earlier: Provided ,
That this provision shall apply only to a
legitimate labor organization which has
submitted the financial report
requirements under this Code: Provided,
further, That failure of any labor
organization to comply with the periodic
financial reports required by law and such
rules and regulations promulgated
thereunder 6 months after the effectivity of
this Act shall automatically result in the
cancellation of union registration of such
labor organization;
(k) The officers of any labor organization
shall not be paid any compensation other
than the salaries and expenses due to their
positions as specifically provided for in its
constitution and by-laws, or in a written
resolution duly authorized by a majority of
all the members at a general membership
meeting duly called for the purpose. The
minutes of the meeting and the list of
participants and ballots cast shall be
subject to inspection by the Secretary of
Labor or his duly authorized
representatives. Any irregularities in the
approval of the resolutions shall be a
ground for impeachment or expulsion from
the organization;
(l) The treasurer of any labor organization
and every officer thereof who is
responsible for the account of such
organization or for the collection,
management, disbursement, custody or
control of the funds, moneys and other
properties of the organization, shall render
to the organization and to its members a
true and correct account of all moneys
received and paid by him since he
assumed office or since the last day on
which he rendered such account, and of all
bonds, securities and other properties of
the organization entrusted to his custody or
under his control. The rendering of such
account shall be made:
(1) At least once a year within 30 days after
the close of its fiscal year;
(2) At such other times as may be required
by a resolution of the majority of the
members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and
verified by affidavit and a copy thereof shall
be furnished the Secretary of Labor.
(m) The books of accounts and other
records of the financial activities of any
labor organization shall be open to
inspection by any officer or member
thereof during office hours;
Billie Blanco (3E) | Ateneo Law 2022 | 16
(n) No special assessment or other
extraordinary fees may be levied upon the
members of a labor organization unless
authorized by a written resolution of a
majority of all the members in a general
membership meeting duly called for the
purpose. The secretary of the organization
shall record the minutes of the meeting
including the list of all members present,
the votes cast, the purpose of the special
assessment or fees and the recipient of
such assessment or fees. The record shall
be attested to by the president.
(o) Other than for mandatory activities
under the Code, no special assessments,
attorney's fees, negotiation fees or any
other extraordinary fees may be checked
off from any amount due to an employee
without an individual written authorization
duly signed by the employee. The
authorization should specifically state the
amount, purpose and beneficiary of the
deduction; and
(p) It shall be the duty of any labor
organization and its officers to inform its
members on the provisions of its
constitution and by-laws, collective
bargaining agreement, the prevailing labor
relations system and all their rights and
obligations under existing labor laws.
For this purpose, registered labor
organizations may assess reasonable dues
to finance labor relations seminars and
other labor education activities.
Any violation of the above rights and
conditions of membership shall be a
ground for cancellation of union
registration or expulsion of officers from
office, whichever is appropriate. At least
30% of the members of a union or any
member or members specially concerned
may report such violation to the Bureau.
The Bureau shall have the power to hear
and decide any reported violation to mete
the appropriate penalty.
Criminal and civil liabilities arising from
violations of above rights and conditions of
membership shall continue to be under the
jurisdiction of ordinary courts.
Article 289. Visitorial Power.
The Secretary of Labor and Employment
or his duly authorized representative is
hereby empowered to inquire into
financial activities of legitimate labor
organizations
(1) upon the filing of a complaint under
oath; and
(2) duly supported by the written consent of
at least 20% of the total membership of the
labor organization concerned
and to examine their books of accounts
and other records to determine
compliance or non-compliance with the
law and to prosecute any violations of
the law and the union constitution and
by-laws:
Provided, That such inquiry or examination
shall not be conducted during the 60 days
freedom period nor within the 30 days
immediately preceding the date of election
of union officials.
Article 228. Appearance and Fees.
XXX
(b) No attorney's fees, negotiation fees or
similar charges of any kind arising from any
collective bargaining agreement shall be
imposed on any individual member of the
contracting union: Provided, However, that
attorney's fees may be charged against
union funds in an amount to be agreed
upon by the parties.
Any contract, agreement or arrangement
of any sort to the contrary shall be null and
void.
Article 259. Unfair Labor Practices of
Employers.
It shall be unlawful for an employer to
commit any of the following unfair labor
practices:
XXX
(e) 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.
Billie Blanco (3E) | Ateneo Law 2022 | 17
 Nothing in this Code or in any other law or oppressive fine and
shall stop the parties from requiring forfeiture;
membership in a recognized collective
bargaining agent as a condition for (2) Against any fees, dues,
employment, except those employees who or other contributions
are already members of another union at unless duly authorized
the time of the signing of the collective pursuant to its
bargaining agreement. constitution and by-laws;

Employees of an appropriate bargaining (3) To full and detailed

unit who are not members of the
recognized collective bargaining agent
may be assessed a reasonable fee
equivalent to the dues and other fees paid
by members of the recognized collective
bargaining agent, if such non-union
members accept the benefits under the
collective bargaining agreement:
Provided, That the individual authorization
required under Article 242, paragraph (o)
of this Code 204 shall not apply to the non-
members of the recognized collective
bargaining agent;
RIGHTS AND CONDITIONS OF
MEMBERSHIP
Political Right to elect their officers
Rights and to be elected, subject
to lawful provisions on
qualifications and
disqualifications
• By secret ballot at
intervals of 5 years;
No qualification
requirement for
candidacy to any position
shall be imposed other
than membership in good
standing in subject labor
organization.
Deliberative Right to determine by
and Decision- secret ballot, after due
Making deliberation, any
Rights question of major policy,
unless the nature of the
organization or force
majeure renders such
secret ballot impractical
Rights Over Right:
Money
Matters (1) Against arbitrary or
excessive initiation fees
nor arbitrary, excessive,
reports from their officers
and representations of all
financial transactions;
(4) To adequate records
to income or revenue of
the organization and
every expenditure of
funds;
(4) To vote on officer’s
compensation other than
the salaries and expenses
due as provided for in the
constitution and by-laws
(5) To inspect the books
of accounts and other
records of the financial
activities of the labor
organization during
officer hours;
(6) To vote on proposed
special assessments or
extraordinary fees; and
(7) To be deducted
special assessments,
attorney’s fees,
negotiation fees, or any
other extraordinary fees
upon written
authorization
Right to Right to be informed
Information about:
1. The organization’s
constitution and by-laws;
and
2. The CBA and about
labor laws
Note: Any violation of the above rights and
conditions of membership shall be a ground

Billie Blanco (3E) | Ateneo Law 2022 | 18

for cancellation of union registration or shall it prevent the filing of a petition for
expulsion of officers from office, whichever is certification election.
appropriate.
In case of cancellation, nothing herein shall
REPORTING VIOLATIONS OF MEMBERSHIP restrict the right of the union to seek just
• At least 20% of the members of a and equitable remedies in the appropriate
union or any member or members courts..
specially concerned may report such
violation to the Bureau. Article 247. Grounds for Cancellation of
Union Registration.
ELIGIBILITY FOR MEMBERSHIP The following may constitute grounds for
Eligibility for membership depends on a cancellation of union registration:
union’s constitution and by-laws. (a) Misrepresentation, false statement or
fraud in connection with the adoption or
Note: An employee’s membership in the ratification of the constitution and by-laws
union does not mean coverage in the CBA. or amendments thereto, the minutes of
Neither does coverage in the CBA mean ratification, and the list of members who
membership in the union. took part in the ratification;
(b) Misrepresentation, false statements or
WHO ARE WHO ARE fraud in connection with the election of
PROHIBITED PROHIBITED officers, minutes of the election of officers,
FROM BECOMING FROM BECOMING and the list of voters;
MEMBERS OF A OFFICERS OF A (c) Voluntary dissolution by the members.
LABOR LABOR
ORGANIZATION ORGANIZATION WHO MAY FILE
1. Non-employees; 1. Non-employees; Any party-in-interest may commence a
and 2. Subversives or petition for cancellation of registration,
2. Subversives or those engaged in except in actions involving violations of Art.
those engaged in subversive activities; 241, which can only be commenced by
subversive activities. and members of the union.
3. Persons who are
convicted of a crime *Recall:
involving moral GROUNDS FOR CANCELLATION OF
turpitude. REGISTRATION

(1) Misrepresentation, false statement, or

LOCAL UNIONS AND FEDERATIONS
CANCELLATION OF REGISTRATION
Article 245. Cancellation of Registration.
The certificate of registration of any
legitimate labor organization, whether
national or local, may be cancelled by the
Bureau, after due hearing, only on the
grounds specified in Article 239 hereof.
Article 246. Effect of a Petition for
Cancellation of Registration.
A petition for cancellation of union
registration shall not suspend the
proceedings for certification election nor
fraud
• Adoption or ratification of the
constitution or by-laws or
amendments, the minutes of the
ratification, and the list of members
who took part in the ratification
• Election of officers, minutes of the
election of officers, and the list of
voters
(2) Voluntary dissolution
• At least 2/3 of its general membership
votes in a meeting called for that
purpose
Note: An application to cancel registration
must be submitted by the board of the

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organization, attested to by the president
thereof.
Omnibus Rules, Book V, Rule I, Sec. 1 (d, t)
(3) Violations of the rights and conditions
of membership in labor organizations
III. BARGAINING UNIT
Section 1. Definition of Terms.
XXX
(d) “Bargaining Unit” refers to a group of
employees sharing mutual interests within
a given employer unit, comprised of all or
less than all of the entire body of the
employees
1. in the employer unit; or
2. in any specific occupational or
geographical grouping within such
employer unit.

XXX

(t) “Exclusive Bargaining

Representative” refers to a legitimate
labor union duly recognized or certified as
the sole and exclusive bargaining
representative or agent of all the
employees in a bargaining unit.

BARGAINING UNIT
A group of employees sharing mutual
interests within a given employer unit,
comprised of all or less than all of the entire
body of the employees
1. in the employer unit; or
2. in any specific occupational or
geographical grouping within such employer
unit.

Note: There is no hard and fast rule in

determining an appropriate bargaining unit.

*Recall:
UNION
Any labor organization in the private sector
organized for collective bargaining and for
other legitimate purposes.

EXCLUSIVE BARGAINING
REPRESENTATIVE
A legitimate labor union duly recognized or
certified as the sole and exclusive
bargaining representative or agent of all
the employees in a bargaining unit.

FACTORS TO DETERMINE THE

APPROPRIATE BARGAINING UNIT
(1) Will of the Employees (Globe Doctrine);
(2) Substantial Mutual Interests;

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(3) Prior Collective Bargaining History; and
(4) Similarity of Employment Status.
The controlling test of grouping is mutuality
or commonality of interest.
COMMUNITY OR MUTUALITY OF INTEREST
DOCTRINE
The employees sought to be represented by
the collective bargaining agent must have
community or mutuality of interest in terms of
employment and working conditions as
evinced by the type of work they perform.
• It is represented by the similarity of
employment status, same duties and
responsibilities, and substantially
similar compensation and working
conditions.
IV. BARGAINING AGENT &
CERTIFICATION ELECTION
PROCEEDINGS
Arts. 267-273, Labor Code
Article 267. Exclusive Bargaining
Representation and Workers’ Participation
in Policy and Decision-Making.
The labor organization designated or
selected by the majority of the employees
in an appropriate collective bargaining unit
shall be the exclusive representative of
the employees in such unit for the
purpose of collective bargaining.
However, an individual employee or group
of employees shall have the right at any
time to present grievances to their
employer.
Any provision of law to the contrary
notwithstanding, workers shall have the
right, subject to such rules and regulations
as the Secretary of Labor and Employment
may promulgate, to participate in policy
and decision-making processes of the
establishment where they are employed
insofar as said processes will directly affect
their rights, benefits and welfare. For this
purpose, workers and employers may
form labor-management councils:
Provided, That the representatives of the
workers in such labor-management
councils shall be elected by at least the
majority of all employees in said
establishment.
Article 268. Representation Issue in
Organized Establishments.
In organized establishments, when a
verified petition questioning the majority
status of the incumbent bargaining agent is
filed by any legitimate labor organization
including a national union or federation
which has already issued a charter
certificate to its local chapter participating
in the certification election or a local
chapter which has been issued a charter
certification by the national union or
federation before the Department of Labor
and Employment within the 60-day period
before the expiration of the collective
bargaining agreement, the Med-Arbiter
shall automatically order an election by
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secret ballot when the verified petition is
supported by the written consent of at least
25% of all the employees in the bargaining
unit to ascertain the will of the employees
in the appropriate bargaining unit.
To have a valid election, at least a majority
of all eligible voters in the unit must have
cast their votes.
The labor union receiving the majority of
the valid votes cast shall be certified as
the exclusive bargaining agent of all the
workers in the unit. When an election which
provides for three or more choices results
in no choice receiving a majority of the
valid votes cast, a run-off election shall be
conducted between the labor unions
receiving the two highest number of
votes:
Provided, That the total number of votes for
all contending unions is at least 50% of the
number of votes cast. In cases where the
petition was filed by a national union or
federation, it shall not be required to
disclose the names of the local chapter's
officers and members.
At the expiration of the freedom period,
the employer shall continue to recognize
the majority status of the incumbent
bargaining agent where no petition for
certification election is filed.
Article 269. Petitions in Unorganized
Establishments.
In any establishment where there is no
certified bargaining agent, a Any party to an election may appeal the
certification election shall automatically
be conducted by the Med-Arbiter upon
the filing of a petition by any legitimate
labor organization, including a national
union or federation which has already
issued a charter certificate to its
local/chapter participating in the
certification election or a local/chapter
which has been issued a charter certificate
by the national union or federation.
In cases where the petition was filed by a
national union or federation, it shall not be
required to disclose the names of the local
chapter's officers and members.
Article 270. When an Employer May File
Petition.
When requested to bargain collectively, an
employer may petition the Bureau for an
election.
If there is no existing certified collective
bargaining agreement in the unit, the
Bureau shall, after hearing, order a
certification election.
All certification cases shall be decided
within 20 working days.
The Bureau shall conduct a certification
election within 20 days in accordance with
the rules and regulations prescribed by the
Secretary of Labor.
Article 271. Employer as Bystander.
In all cases, whether the petition for
certification election is filed by an employer
or a legitimate labor organization, the
employer shall not be considered a party
thereto with a concomitant right to oppose
a petition for certification election.
The employer's participation in such
proceedings shall be limited to:
(1) being notified or informed of petitions
of such nature; and
(2) submitting the list of employees during
the pre-election conference should the
Med-Arbiter act favorably on the petition.
Article 272. Appeal from Certification
Election Order.
order or results of the election as
determined by the Med-Arbiter directly to
the Secretary of Labor and Employment on
the ground that the rules and regulations or
parts thereof established by the Secretary
of Labor and Employment for the conduct
of the election have been violated.
Such appeal shall be decided within 15
calendar days
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SELECTION/DESIGNATION OF AN
EXCLUSIVE BARGAINING
REPRESENTATIVE
GENERAL RULE: The labor organization
designated or selected by the majority of the
employees in an appropriate collective
bargaining unit shall be the exclusive
representative of the employees in such
unit for the purpose of collective bargaining.
EXCEPTIONS:
(1) An individual employee or group of
employees shall have the right at any
time to present grievances to their
exclusive bargaining representatives;
(2) Any provision of law to the contrary
notwithstanding, workers shall have
the right to participate in policy and
decision-making processes of the
establishment where they are
employed insofar as said processes
will directly affect their rights, benefits
and welfare. Workers and employers
may form labor-management
councils. In such a case, its
representatives shall be elected by at
least the majority of all employees in
said establishment.
MODES
The Sole and Exclusive Bargaining Agent
(SEBA) of the employees may be
determined through:
(1) SEBA Certification;
(2) Consent election; and
(3) Certification Election.
• Run-off Election
• Re-run Election
1. SEBA CERTIFICATION
• DO No. 40-I-15 repealed the entire set
of Rules applicable to Voluntary
Recognition in the Labor Code’s
Implementing Rules.
• Where filed: Any legitimate labor
organization may file a Request in the
DOLE Regional Office which issued to
it its Certificate of Registration or
Charter Certificate.
• Documentary Requirements
The Request should indicate:
1. The name and address of the
requesting labor organization;
2. The name and address of the
company where it operates;
3. The bargaining unit sought to be
represented;
4. The approximate number of
employees in the bargaining unit;
and
5. The statement of the
existence/non-existence of other
labor organizations/CBA.
Note: The Certificate of Registration as duly
certified by the President of the requesting
union or the Charter Certificate as duly
certified by the president of the chartered
local is required to be attached to the
Request.
• Action on the Request: Within 1 day
from the submission of the request,
the Regional Director shall:
o Determine whether the request is
compliant with the rules and
whether the bargaining unit
sought to be represented is
organized or not; and
o Request a copy of the payroll for
purposes of SEBA certification.
If s/he finds it deficient, the Regional Director
shall advise the requesting union or local to
comply within 10 days from notice. Failure to
comply is deemed a withdrawal of the
request.
• 3 Scenarios Involving a Request for
Certification:
(1) Request for certification in an
unorganized establishment with
only 1 legitimate union;
(2) Request for certification in an
unorganized establishment with
more than 1 legitimate labor
organization; and
(3) Request for certification in
organized environment.
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 UNORGANIZED UNORGANIZED EFFECTS OF CERTIFICATION
ESTABLISHMENT ESTABLISHMENT (1) Upon the issuance of the certification as
WITH ONLY 1 WITH MORE THAN SEBA, the certified union or local shall enjoy
LEGITIMATE 1 LEGITIMATE the rights and privileges of an exclusive
UNION LABOR bargaining agent of all the employees in the
ORGANIZATION covered bargaining unit.
The Regional The Regional (2) The certification shall bar the filing of a
Director shall call a Director shall refer petition of certification by any labor
conference within 5 the same to the organization for a period of 1 year from the
working days for the Election Officer for date of its issuance.
submission of the the conduct of a • Upon the expiration of the 1-year
following: Certification period, any legitimate labor
(1) The names of the Election. organization may file a petition for
employees in the certification election in the same
covered bargaining bargaining unit represented by the
unit who support certified labor organization, unless a
the certification, CBA between the employer and the
provided said certified labor organization was
employees executed and registered with the
comprise at least Regional Officer in accordance with
majority of the Rule XVII of this Rules.
number of
employees in the 2. CONSENT ELECTION
covered bargaining The process, voluntarily and mutually agreed
unit; and upon by the contending unions, of
(2) Certification determining through secret ballot the sole
under oath by the and exclusive bargaining agent of the
president of the employees in an appropriate collective
requesting union or bargaining unit for purposes of collective
local that all bargaining with the employer.
documents • It is conducted with or without the
submitted are true intervention of the DOLE.
and correct based
on his/her personal Note: Consent election is but a form of
knowledge. certification election.

If the Regional CONSENT CERTIFICATION

Director finds the ELECTION ELECTION
requirements Held upon the Does not require
complete, s/he shall mutual agreement the mutual consent
issue during the of the contending of the parties as it is
conference a unions. conducted upon the
certification as order of the Med-
SEBA. Arbiter.

IF ORGANIZED ESTABLISHEMENT Conducted with or Always conducted

If the Regional Director finds the without the control under the control
establishment organize, s/he shall refer the and supervision of and supervision of
same to the Mediator-Arbiter for the DOLE. DOLE.
determination of the propriety of conducting
a certification election. Conducted as a Although non-
voluntary mode of adversarial, a
resolving labor compulsory method
dispute.

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 of adjudicating a Not appealable Appealable.
labor union. (Protest may be
filed).
Given the highest Resorted to only
priority. when the IN AN ORGANIZED ESTABLISHMENT
contending unions WHO MAY FILE
fail or refuse to A legitimate labor organization, including:
submit their (1) A national union or federation which
representation has already issued a charter certificate
dispute through the to its local chapter participating in the
consent election. certification election; or
(2) A local chapter which has been issued
Necessarily involves Only involves 1 a charter certification by the national
at least 2 or more petitioner union. union or federation.
contending unions.
WHEN TO FILE
May be conducted The proper time to file a petition for
in the course of the certification election depends on whether the
proceeding in the bargaining unit as a CBA or not.
certification election
or during its NO CBA CBA
pendency. The petition may be The petition can be
filed anytime, filed only within the
3. CERTIFICATION ELECTION except within 12 freedom period,
The process of determining through secret months of a which is the last 60
ballot the sole and exclusive bargaining previous election, if days of the 5th year
agent of the employees in an appropriate any. of the CBA.
collective bargaining unit for purposes of
collective bargaining with the employer. REQUISITES
• It is conducted only upon the order of To ascertain the will of the employees in the
the Med-Arbiter of the BLR. appropriate collective bargaining unit, the
Med-Arbiter is required to automatically
Generally, certification election may be order the conduct of a certification
conducted in 2 kinds of establishments: election by secret ballot as soon as the
(1) Unorganized establishment; and following requisites are met:
(2) Organized establishment. (1) That a petition for certification
election (PCE) questioning the
UNORGANIZED ORGANIZED majority status of the incumbent
ESTABLISHMENT ESTABLISHMENT bargaining agent is filed before the
A firm or company An enterprise where Med-Arbiter within the 60-day
where there is no there exists a sole freedom period;
certified a sole andand exclusive (2) That such PCE is verified; and
exclusive bargaining agent (3) That the PCE is supported by the
bargaining agent(SEBA), regardless written consent of at least 25% of all
(SEBA). of whether a CBA the employees in the collective
has been concluded bargaining unit.
or not by such SEBA
with the employer. IN AN UNORGANIZED ESTABLISHMENT
Substantial support Must be duly WHO MAY FILE
no appliable. supported by 25% A legitimate labor organization, including:
of all the members (1) A national union or federation which
of the appropriate has already issued a charter certificate
bargaining unit. to its local/chapter participating in the
certification election; or

Billie Blanco (3E) | Ateneo Law 2022 | 25

 (2) A local/chapter which has been issued INCLUSION/EXCLUSION OF VOTERS
a charter certificate by the national In case of disagreement over the voter’s list or
union or federation. over the eligibility of voters, all contested
voters shall be allowed to vote, but their votes
REQUISITES shall be segregated and sealed in individual
Once a petition is filed by a legitimate labor envelopes with their names.
organization, a certification election shall
automatically be conducted by the Med- DOUBLE MAJORITY RULE
Arbiter. For there to be a valid certification election:
1. Majority of the bargaining unit must
WHEN TO FILE have voted; and
Any time, except within 12 months of a 2. The winning union must have
previous election, if any. garnered the majority of the valid
votes cast.
EMPLOYER AS BYSTANDER RULE
A certification election is the sole concern of Note: Spoiled ballots are not reckoned to
the workers, except when the employer itself determine majority.
has to file the petition pursuant to Article 259
of the Labor Code, as amended, but even CERTIFICATION ELECTION PROCESS
after such filing its role in the certification
process ceases and becomes merely a
bystander.
• The choice of their representative is
the exclusive concern of the
employees; the employer cannot have
any partisan interest therein; it cannot
interfere with, much less oppose, the
process by filing a motion to dismiss
or an appeal from it; not even a mere
allegation that some employees
participating in a petition for
certification election are actually
managerial employees will lend an
employer legal personality to block
the certification election.
• The employer's only right in the
proceeding is to be notified or
informed thereof.

QUALIFIED VOTERS
(1) All employees who are members of the
appropriate bargaining unit 3 months prior to
the filing of the petition/request shall be
eligible to vote.
(2) An employee who has been dismissed
from work but has contested the legality of
the dismissal at the time of the issuance of the
order for the conduct of a certification
election shall be considered a qualified voter,
unless his/her dismissal was declared valid in
a final judgement at the time of the conduct
of the certification election.

Billie Blanco (3E) | Ateneo Law 2022 | 26


CERTIFICATION ELECTION PROPER
GROUNDS FOR DENYING THE PETITION
FOR CERTIFICATION ELECTION
(1) If the petitioner union does not
appear in 2 successive conferences
called by the Med-Arbiter, upon
showing that the petitioner was duly
notified (Non-appearance).
(2) The petitioner is not listed in the
DOLE’s registry of legitimate labor
unions or that its legal personality has
revoked or cancelled with finality
(Illegitimacy – Unregistered Union).
(3) Failure of a local/chapter or national
union or federation to submit a duly
issued charter certificate upon the
filing of the petition for certification
election (Illegitimacy – No Charter).
(4) Absence of an employment
relationship between all the members
of the petitioning union and the
establishment where the proposed
bargaining unit is sought to be
represented (Absence of EER
Relationship).
(5) The petition was filed before or after
the freedom period of a duly
registered CBA, provided that the 60-
day period based on the original CBA
shall not be affected by any
amendment, extension, or renewal of
the CBA (Contract Bar).
(6) The petition was filed within 1 year
from the entry of SEBA certification or
a valid certification, consent, or run-off
election and no appeal on the results
of the certification, consent, or run-off
election is pending (1-Year
Bar/Certification Year).
(7) A duly certified union has
commenced and sustained
negotiations with the employer or
there exists a bargaining deadlock
which had been submitted to
conciliation or arbitration or had
become the subject of a valid notice of
strike or lockout to which an
incumbent or certified bargaining
agent is a party (Negotiation
Bar/Deadlock Bar).
(8) In case of an organize establishment,
failure to submit the 25% support
requirement for the filing of the
petition for certification election (Lack
of Support).
4. RUN-OFF ELECTION
An election between the labor unions
receiving the 2 highest number of votes in a
certification or consent election with 3 or
more choices, where such a certified or
consent results in none of the 3 or more
Billie Blanco (3E) | Ateneo Law 2022 | 27
choices receiving the majority of the valid
votes cast.
Provided that the total number of votes of all
contending unions is at least 50% of the
number of votes cast.
Note: The Election Officer shall motu propio
conduct a run-off election within 10 days from
the close of the election proceedings
between the labor union receiving the 2
highest numbers of votes.
Notice of run-off shall be posted by the
Election Officer at least 5 days before the
actual date of run-off election.
ELEMENTS
A “run-off election” may only be conducted
under the following elements:
(1) There are 3 or more unions
competing in a certification or consent
election;
(2) None of the contending unions
garnered the majority of the valid
votes case;
(3) But, the total number of votes for all
contending union, if added, is at least
50% of the number of valid votes cast;
and
(4) There is no unresolved challenge of
voter or protest.
If all the elements are present, a run-off
election will be conducted between the
labor unions receiving the 2 highest number
of votes in such a certification election or
consent union.
• The choice of ‘no union’ should no
longer be included in the run-off
election.
Example #1
Assume 200 employees.
Union A – 79
Union B – 35
No Union – 20
Challenged Votes – 5
Spoiled Votes – 5
Total: 139
*Majority of 200 is 101.
(1) Is the election valid? Yes, more than
majority of the bargaining unit voted.
(2) Who won? Union A, because it received
more than a majority of the valid votes cast
(Majority is 68).
Example #2:
Assume 200 employees.
Union A – 40
Union B – 30
No Union – 80
Total: 150
*Majority of 200 is 101.
(1) Is the election valid? Yes, more than
majority of the bargaining unit voted.
(2) Who won? No Union, because it
received more than a majority of the valid
votes cast (Majority is 76).
Example #3:
Assume 200 employees.
Union A – 50
Union B – 60
No Union – 70
Total: 180
*Majority of 200 is 101.
(1) Is the election valid? Yes, more than
majority of the bargaining unit voted.
(2) Who won? Union A and Union B did not
win, because both did not have more than
a majority of the valid votes cast. No Union
also did now win (Majority is 91).
(3) Is run-off a remedy here? Yes, the total #
of votes for all contending unions is more
than 50% of ALL of the number of votes cast
(Unions A and B garnered 110 votes, which
is more than requirement since there are
200 members in the appropriate
bargaining unit.)
Example #4:
Assume 240 employees.
Union A – 65
Union B – 65
Billie Blanco (3E) | Ateneo Law 2022 | 28
No Union – 110
Total: 240
*Majority of 240 is 121.
(1) Is the election valid? Yes, everyone
voted.
(2) Who won? Union A and Union B did not
win because both did not have more than a
majority of the valid votes cast. No Union
also did not win (Majority is 121).
(3) Is run-off a remedy here? Yes, the total #
of votes for all contending unions is more
than 50% of ALL of the number of votes cast
(Unions A and B garnered 130 votes, which
is more than requirement since there are
200 members in the appropriate
bargaining unit.)
Example #5:
Assume 500 employees.
300 voted
10 challenged votes
10 spoiled votes
Union A – 60
Union B – 60
Union C - 50
No Union – 110
Total: 300
*Majority of 500 is 251.
(1) Is the election valid? Yes, more than
majority of the bargaining unit voted.
(2) Who won? Union A, B, and C did not win
because they did have not more than a
majority of the valid votes cast. No Union
also did not win (Majority is 141).
(3) Is run-off a remedy here? No, the total #
of votes for all contending unions is less
than 50% of ALL of the number of votes cast
(Unions A, B, and C garnered 170 votes,
which is 70 votes short of the requirement
since there are 500 members in the
appropriate bargaining unit.)
(4) Is re-run a remedy here? Yes, while there
is no failure of elections, Union A and B
obtained the same number of votes.
Example #6:
Assume 160 employees.
Union A – 50
Union B – 50
Union C - 60
No Union – 0
Total: 160
*Majority of 160 is 81.
(1) Is the election valid? Yes, everyone
voted.
(2) Who won? Union A, B, and C did not win
because they did have not more than a
majority of the valid votes cast. No Union
also did not win (Majority is 81).
(3) Is run-off a remedy here? Yes, the total #
of votes for all contending unions is more
than 50% of ALL of the number of votes cast
(Unions A, B, and C garnered 160 votes,
which is more than requirement since there
are 160 members in the appropriate
bargaining unit.)
5. RE-RUN ELECTIONS
It takes place in 2 instances:
(1) An election conducted to break a tie
between contending unions,
including “no union” and one of the
unions; and
(2) If a failure of election has been
declared by the election officer and/or
affirmed by the Med-Arbiter.
This may occur in the following scenarios:
(1) At least 2 unions are involved and a tie
in the votes occurred;
• Between 2 contending unions and
the No Union choice did not garner
the majority; or
• Between 1 of the 2 unions and the
No Union choice.
(2) At least 3 unions are involved and a tie
in the votes occurred.
• Between and among the 2 or more
or all of the contending unions and
the No Union choice did not
muster the majority.
• Between and among 1 or more of
the contending unions and the No
Union choice.
Billie Blanco (3E) | Ateneo Law 2022 | 29
 (3) A tie in the votes occurred between WHAT THE DUTY TO BARGAIN
the 2 unions involved in a run-off COLLECTIVELY MEANS
election. The performance of a mutual obligation to:
The Election Officer should immediately (1) meet and convene promptly; and
notify the parties of a re-run election. The (2) expeditiously in good faith
Election Officer should cause the posting of for the purpose of negotiating an agreement
the notice of re-run election within 5 days with respect to wages, hours of work and all
from the certification, consent, or run-off other terms and conditions of employment
election. The re-run election shall be including proposals for adjusting any
conducted within 10 days after the posting of grievances or questions arising under such
the notice. agreement and executing a contract
incorporating such agreements if requested
The choice receiving the highest vote cast by either party.
during the re-run election shall be declared
the winner and shall be certified as the sole WHAT THE DUTY TO BARGAIN
and exclusive bargaining accordingly. COLLECTIVELY DOES NOT MEAN
The duty does not compel any party to:
RULE IN CASE OF FAILURE OF ELECTION (1) agree blindly to a proposal; or to
In failure of election, the number of votes cast (2) make concession.
in the certification or consent election is less
than the majority of the number of eligible Note: The duty to bargain collectively does
votes and there are no challenged votes that not exist when the majority status of the
could materially change the results of the employees’ representative is not established.
elections. The employer has no such duty to bargain
with individual workers or the minority union.
A failure of election shall not bar the filling of
a motion for the immediate holding of Further, the duty to bargain collectively may
another certification or consent election, now constitute ULP if violated by any employer or
to be called a re-run election, within 6 months by a labor organization.
from the date of the declaration of the failure
of election. KINDS OF COLLECTIVE BARGAINING
SINGLE- MULTI-
ENTERPRISE ENTERPRISE
DUTY TO BARGAIN COLLECTIVELY BARGAINING BARGAINING
CBA Negotiation CBA Negotiation
*Remember: involving one between and
Article 263. Meaning of Duty to Bargain certified SEBA and among several
Collectively. one employer. SEBAs and
The duty to bargain collectively means employers.
the performance of a mutual obligation
to: SINGLE-ENTERPRISE BARGAINING
(1) meet and convene promptly; and • Any certified SEBA may demand
(2) expeditiously in good faith negotiations with the employer
for the purpose of negotiating an regarding the terms and conditions of
agreement with respect to wages, hours of employment in the bargaining unit it
work and all other terms and conditions of represents.
employment including proposals for • The SEBA should submit such
adjusting any grievances or questions intention in writing to the employer
arising under such agreement and together with its proposals for
executing a contract incorporating such collective bargaining.
agreements if requested by either party • The SEBA and the employer may
but such duty does not compel any party adopt such procedures and processes
to agree to a proposal or to make any they may deem appropriate and
concession.

Billie Blanco (3E) | Ateneo Law 2022 | 30

 necessary for the early termination
and conclusion of their negotiations.
o They should name their
representatives to the
negotiations, schedule the
number and frequency of the
meetings, and agree on the
wages, benefits, and other terms
and conditions for all the
employees covered in the
bargaining unit.
MULTI-ENTERPRISE BARGAINING
• Any legitimate labor unions and
employers may agree in writing to
come together for the purpose of
collective bargaining, provided:
(1) Only legitimate labor unions which
are incumbent SEBAs may
participate and negotiate;
(2) Only employers with counterpart
legitimate labor unions which are
incumbent SEBAs may participate
and negotiate; and
(3) Only those legitimate labor unions
that pertain to employer units
which consent to multi-employer
bargaining may participate in
multi-employer bargaining.
2
ARTICLE 264. [253] Duty to Bargain Collectively
When There Exists a Collective Bargaining
Agreement. — When there is a collective
bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall
terminate nor modify such agreement during its
lifetime. However, either party can serve a written
notice to terminate or modify the agreement at
least 60 days prior to its expiration date. It shall be
the duty of both parties to keep the status quo and
to continue in full force and effect the terms and
conditions of the existing agreement during the
60-day period and/or until a new agreement is
reached by the parties.
3
ARTICLE 265. [253-A] Terms of a Collective
Bargaining Agreement .— Any Collective
Bargaining Agreement that the parties may enter
into shall, insofar as the representation aspect is
concerned, be for a term of 5 years. No petition
questioning the majority status of the incumbent
bargaining agent shall be entertained and no
JURISDICTIONAL REQUIREMENTS
JURISDICTIONAL REQUIREMENTS
The mechanics of collective bargaining is set
in motion only when the following
jurisdictional preconditions are present,
namely:
(1) possession of the status of majority
representation of the employees'
representative in accordance with any of the
means of selection or designation provided
for by the Labor Code;
(2) proof of majority representation; and
(3) a demand to bargain under Article 251,
par. (a) of the New Labor Code.
BARGAINING AGENT AND
CERTIFICATION ELECTION
PROCEEDINGS
BARS TO CERTIFICATION ELECTION
Art. 238, Labor Code
Article 238. Prohibition on Certification
Election.
The Bureau shall not entertain any
petition for certification election or any
other action which may disturb the
administration of duly registered existing
collective bargaining agreements affecting
the parties except under Articles 2532, 253-
A3 and 2564 of this Code.
certification election shall be conducted by the
Department of Labor and Employment outside of
the sixty-day period immediately before the date
of expiry of such 5-year term of the Collective
Bargaining Agreement. All other provisions of the
Collective Bargaining Agreement shall be
renegotiated not later than 3 years after its
execution. Any agreement on such other
provisions of the Collective Bargaining
Agreement entered into within 6 months from the
date of expiry of the term of such other provisions
as fixed in such Collective Bargaining Agreement,
shall retroact to the day immediately following
such date. If any such agreement is entered into
beyond 6 months, the parties shall agree on the
duration of retroactivity thereof. In case of a
deadlock in the renegotiation of the Collective
Bargaining Agreement, the parties may exercise
their rights under this Code.
4
ARTICLE 256. [245-A] Effect of Inclusion as
Members of Employees Outside the Bargaining
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BAR RULES
1. CONTRACT BAR RULE
The existence of the CBA bars the filing of a
PCE. Once is a CBA is duly and validly
subsisting no PCE or any other action should
be entertained that may disturb the
administration of the duly registered existing
CBA. Neither party should terminate nor
modify such agreement during its lifetime.
What this means, for the entire 5-year lifetime
of the CBA, no PCE questioning the majority
status of the incumbent SEBA shall be
entertained and no certification election shall
be conducted by the DOLE outside the 60-
day freedom period immediately before the
date of the expiry of such 5-year term of the
CBA.
GENERAL RULE: The representation status of
the incumbent exclusive bargaining agent
which is a party to a duly registered CBA shall
be for a term of 5 years from the date of
effectivity of the CBA. No petition
questioning the majority status of the
incumbent exclusive agent or PCE shall be
filed.
EXCEPTION:
Where a PCE may be validly filed -
(1) During the 60-day freedom period
immediately prior to the expiration of
the 5-year term of the representation
aspect of the CBA;
(2) When the CBA is not registered;
(3) When the documents supporting the
CBA’s registration are falsified,
fraudulent, and misrepresentation;
(4) CBA where the identity of the
representatives is in doubt;
(5) When the CBA is incomplete in itself
(or, it does not contain any of the
mandatory provisions which the law
requires);
(6) CBA was hastily entered into, i.e.,
signed before the freedom period;
(7) CBA entered into between the
employer and the union during the
pendency of the certification election;
Unit.— The inclusion as union members of
employees outside the bargaining unit shall not
be a ground for the cancellation of the registration
(8) CBA contains provisions lower than
the standards provided by law or
illegal per se and concluded in
violation of an order; and
(9) Referendum to register an
independent union.
Note: This freedom period is different from
the 60-day period within which to start
negotiations for a new CBA.
• Certification election may only be
entered within 60-day freedom
period. Any PCE filed before or after
the 60-day freedom period should be
dismissed outright.
• Where there exists a CBA, it is the duty
of both parties to keep status quo and
to continue in full force and effect the
terms and conditions of the existing
agreement during the 60-day
freedom period and/or until a new
agreement is reached by the parties.
• At the expiration of the 60-day
freedom period, the employer should
continue to recognize the majority
status of the incumbent bargaining
agent where no PCE challenging such
majority status is filed by any other
union.
2. CERTIFICATION YEAR BAR/1 YEAR BAR
The Rules embody a rule that bars the filing of
a PCE within a period of 1 year from the date
of a valid conduct of a certification, consent,
run-off election or the certification of the
CEBA within the period of 1 year from the date
of the certification, consent, run-off, or re-run
election or the date of the issuance of the
SEBA Certification, in accordance with Art.
261 of the Labor Code, where no appeal on
the results was made.
• If there was such an appeal from the
order of the Med-Arbiter, the running
of the 1-year period is deemed
suspended until the decision on the
appeal has become final and
executory.
CERTIFICATION 1
BAR YEAR/STATUTORY
BAR
of the union. Said employees are automatically
deemed removed from the list of membership of
said union.
Billie Blanco (3E) | Ateneo Law 2022 | 32
 If a SEBA is certified. If there is no
certification.
1 year starts from 1 year starts from
the certification of the actual date of
the SEBA. the prior election
the negotiation resulting from the
action of equal and opposing
forces.

Note: If the SEBA fails to commence the

collective bargaining process within said
period, its being SEBA may be questioned by
another union through the filing of a new
PCE.

3. NEGOTIATION BAR RULE

No PCE should be entertained from the
moment the SEBA and the employer have
sustained negotiations in good faith,.
• Once the CBA negotiations have
commenced and while the parties are
engaged in the process, no
challenging union is allowed to file a
PCE that would disturb the
negotiation process and unduly delay,
preempt, or forestall the prompt and
timely conclusion thereof.

Note: There is no law or rule that imposes a

time limitation or cap as to when the parties
should negotiate and conclude a CBA. The
parties have all the freedom and leeway to
negotiate the CBA’s terms and conditions
without being constrained by any time
restriction.

4. DEADLOCK BAR RULE

A PCE may not be entertained when a
bargaining deadlock to which an incumbent
SEBA is a party has been submitted to
conciliation, compulsory, or voluntary
arbitration or has become the subject of a
valid notice of strike or lockout.
• Collective bargaining deadlock:
Where there is a failure in the
bargaining negotiations between the
SEBA and the employer resulting in an
impasse or stalemate.
o This happens when, despite their
efforts at bargaining in good faith,
the parties have failed to resolve
the issues and it appears that there
are no other definite options or
plans in sight to break the
standoff.
o There is a deadlock when there is a
complete blocking or stoppage in

Billie Blanco (3E) | Ateneo Law 2022 | 33

 V. COLLECTIVE BARGAINING
Arts. 261-266, 258-260, and 274, Labor Code
Article 261. Procedure in Collective
Bargaining.
The following procedures shall be
observed in collective bargaining:
(a) When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other party with a statement of its
proposals. The other party shall make a
reply thereto not later than 10 calendar
days from receipt of such notice;
(b) Should differences arise on the basis of
such notice and reply, either party may
request for a conference which shall begin
not later than 10 calendar days from the
date of request.
(c) If the dispute is not settled, the Board
shall intervene upon request of either or
both parties or at its own initiative and
immediately call the parties to conciliation
meetings. The Board shall have the power
to issue subpoenas requiring the
attendance of the parties to such meetings.
It shall be the duty of the parties to
participate fully and promptly in the
conciliation meetings the Board may call;
(d) During the conciliation proceedings in
the Board, the parties are prohibited from
doing any act which may disrupt or impede
the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle
disputes amicably and encourage the
parties to submit their case to a voluntary
arbitrator.
Article 262. Duty to Bargain Collectively in
the Absence of Collective Bargaining
Agreements.
In the absence of an agreement or other
voluntary arrangement providing for a
more expeditious manner of collective
bargaining, it shall be the duty of employer
and the representatives of the employees
to bargain collectively in accordance with
the provisions of this Code.
Article 263. Meaning of Duty to Bargain
Collectively.
The duty to bargain collectively means
the performance of a mutual obligation
to:
(1) meet and convene promptly; and
(2) expeditiously in good faith
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
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.
Article 264. Duty to Bargain Collectively
When There Exists a Collective Bargaining
Agreement.
When there is a collective bargaining
agreement, the duty to bargain
collectively shall also mean that neither
party shall terminate nor modify such
agreement during its lifetime.
However, either party can serve a written
notice to terminate or modify the
agreement at least 60 days prior to its
expiration date.
It shall be the duty of both parties to keep
the status quo and to continue in full
force and effect the terms and
conditions of the existing agreement
during the 60-day period and/or until a new
agreement is reached by the parties.
Article 265. Terms of a Collective
Bargaining Agreement.
Any Collective Bargaining Agreement
that the parties may enter into shall,
insofar as the representation aspect is
concerned, be for a term of 5 years.
No petition questioning the majority status
of the incumbent bargaining agent shall be
entertained and no certification election
shall be conducted by the Department of
Labor and Employment outside of the 60-
day period immediately before the date of
expiry of such 5-year term of the Collective
Bargaining Agreement.
All other provisions of the Collective
Bargaining Agreement shall be
renegotiated not later than 3 years after
its execution.
Billie Blanco (3E) | Ateneo Law 2022 | 34

Any agreement on such other provisions of
the Collective Bargaining Agreement
entered into within 6 months from the date
of expiry of the term of such other
provisions as fixed in such Collective
Bargaining Agreement, shall retroact to the
day immediately following such date.
If any such agreement is entered into
beyond 6 months, the parties shall agree
on the duration of retroactivity thereof.
In case of a deadlock in the renegotiation
of the Collective Bargaining Agreement,
the parties may exercise their rights under
this Code.
Article 266. Injunction Prohibited.
No temporary or permanent injunction or
restraining order in any case involving or
growing out of labor disputes shall be
issued by any court or other entity, except
as otherwise provided in Articles 218 and
264 of this Code.
Article 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 offenses against the State which
shall be subject to prosecution and
punishment as herein provided.
Subject to the exercise by the President or
by the Secretary of Labor and Employment
of the powers vested in them by Articles
263 and 264 of this Code, 201 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
affirmative relief, shall be under the
jurisdiction of the Labor Arbiters. The Labor
Arbiters shall give utmost priority to the
hearing and resolution of all cases
involving unfair labor practices. They shall
resolve such cases within 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 under this Title
may be instituted without a final judgment
finding that an unfair labor practice was
committed, having been first obtained in
the preceding paragraph. During the
pendency of such administrative
proceeding, the running of the period of
prescription of the criminal offense herein
penalized shall be considered interrupted:
Provided, however, That the final judgment
in the administrative proceedings shall not
be binding in the criminal case nor be
considered as evidence of guilt but merely
as proof of compliance of the requirements
therein set forth.
Article 259. Unfair Labor Practices of
Employers.
It shall be unlawful for an employer to
commit any of the following unfair labor
practices:
(a) To interfere with, restrain or coerce
employees in the exercise of their right to
self-organization;
(b) 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;
(c) 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;
(d) To initiate, dominate, assist or otherwise
interfere with the formation or
administration of any labor organization,
including the giving of financial or other
support to it or its organizers or supporters;
Billie Blanco (3E) | Ateneo Law 2022 | 35
(e) 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. Nothing in this
Code or in any other law shall stop the
parties from requiring membership in a
recognized collective bargaining agent as
a condition for employment, except those
employees who are already members of
another union at the time of the signing of
the collective bargaining agreement.
Employees of an appropriate bargaining
unit who are not members of the
recognized collective bargaining agent
may be assessed a reasonable fee
equivalent to the dues and other fees paid
by members of the recognized collective
bargaining agent, if such non-union
members accept the benefits under the
collective bargaining agreement:
Provided, That the individual authorization
required under Article 242, paragraph (o)
of this Code 204 shall not apply to the non-
members of the recognized collective
bargaining agent;
(f) To dismiss, discharge or otherwise
prejudice or discriminate against an
employee for having given or being about
to give testimony under this Code;
(g) To violate the duty to bargain
collectively as prescribed by this Code;
(h) To pay negotiation or attorney's fees to
the union or its officers or agents as part of
the settlement of any issue in collective
bargaining or any other dispute; or
(i) To violate a collective bargaining
agreement.
The provisions of the preceding paragraph
notwithstanding, only the officers and
agents of corporations, associations or
partnerships who have actually
participated in, authorized or ratified unfair
labor practices shall be held criminally
liable.
Article 260. Unfair Labor Practices of Labor
Organizations.
It shall be unfair labor practice for a labor
organization, its officers, agents or
representatives:
(a) 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;
(b) 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;
(c) To violate the duty, or refuse to bargain
collectively with the employer, provided it
is the representative of the employees;
(d) 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;
(e) 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
(f) To violate a collective bargaining
agreement.
The provisions of the preceding paragraph
notwithstanding, only the officers,
members of governing boards,
representatives or agents or members of
labor associations or organizations who
have actually participated in, authorized
or ratified unfair labor practices shall be
held criminally liable.
Article 274. Jurisdiction of Voluntary
Arbitrators and Panel of Voluntary
Arbitrators.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and
decide all unresolved grievances arising
from the interpretation or implementation
of the Collective Bargaining Agreement
and those arising from the interpretation or
enforcement of company personnel
policies referred to in the immediately
preceding article. Accordingly, violations
of a Collective Bargaining Agreement,
Billie Blanco (3E) | Ateneo Law 2022 | 36
 except those which are gross in character,
shall no longer be treated as unfair labor KINDS OF COLLECTIVE BARGAINING
practice and shall be resolved as SINGLE- MULTI-
grievances under the Collective Bargaining ENTERPRISE ENTERPRISE
Agreement. For purposes of this article, BARGAINING BARGAINING
gross violations of Collective Bargaining CBA Negotiation CBA Negotiation
Agreement shall mean flagrant and/or involving one between and
malicious refusal to comply with the certified SEBA and among several
economic provisions of such agreement. one employer. SEBAs and
employers.
The Commission, its Regional Offices and
the Regional Directors of the Department SINGLE-ENTERPRISE BARGAINING
of Labor and Employment shall not • Any certified SEBA may demand
entertain disputes, grievances or matters negotiations with the employer
under the exclusive and original regarding the terms and conditions
jurisdiction of the Voluntary Arbitrator or of employment in the bargaining
panel of Voluntary Arbitrators and shall unit it represents.
immediately dispose and refer the same to • The SEBA should submit such
the Grievance Machinery or Voluntary intention in writing to the employer
Arbitration provided in the Collective together with its proposals for
Bargaining Agreement. collective bargaining.
• The SEBA and the employer may
*Recall: adopt such procedures and
WHAT THE DUTY TO BARGAIN processes they may deem
COLLECTIVELY MEANS appropriate and necessary for the
The performance of a mutual obligation early termination and conclusion of
to: their negotiations.
(1) meet and convene promptly; and o They should name their
(2) expeditiously in good faith representatives to the
for the purpose of negotiating an negotiations, schedule the
agreement with respect to wages, hours of number and frequency of the
work and all other terms and conditions of meetings, and agree on the
employment including proposals for wages, benefits, and other
adjusting any grievances or questions terms and conditions for all the
arising under such agreement and employees covered in the
executing a contract incorporating such bargaining unit.
agreements if requested by either party.
MULTI-ENTERPRISE BARGAINING
WHAT THE DUTY TO BARGAIN • Any legitimate labor unions and
COLLECTIVELY DOES NOT MEAN employers may agree in writing to
The duty does not compel any party to: come together for the purpose of
(1) agree blindly to a proposal; or to collective bargaining, provided:
(2) make concession. (4) Only legitimate labor unions
which are incumbent SEBAs
Note: The duty to bargain collectively does may participate and negotiate;
not exist when the majority status of the (5) Only employers with
employees’ representative is not counterpart legitimate labor
established. The employer has no such unions which are incumbent
duty to bargain with individual workers or SEBAs may participate and
the minority union. negotiate; and
(6) Only those legitimate labor
Further, the duty to bargain collectively unions that pertain to employer
may constitute ULP if violated by any units which consent to multi-
employer or by a labor organization. employer bargaining may

Billie Blanco (3E) | Ateneo Law 2022 | 37

 participate in multi-employer
bargaining.
JURISDICTIONAL REQUIREMENTS
The mechanics of collective bargaining is
set in motion only when the following
jurisdictional preconditions are present,
namely:
(1) possession of the status of majority
representation of the employees'
representative in accordance with any of
the means of selection or designation
provided for by the Labor Code;
(2) proof of majority representation; and
(3) a demand to bargain under Article 261,
par. (a) of the New Labor Code.
PURPOSE
To reach an agreement resulting in a contract
binding on the parties.
• But, the failure to reach an agreement
after negotiations continued for a
reasonable period does not establish
bad faith.
COLLECTIVE BARGAINING AGREEMENT
The contract between a legitimate labor
union and the employer concerning wages,
hours of work, and all other terms and
conditions of employment in a bargaining
unit.
Note: The CBA constitutes the law between
the parties when freely and voluntarily
entered into.
PROCEDURE IN COLLECTIVE
BARGAINING
The following procedures shall be observed
in collective bargaining:
(1) When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other party with a statement of its
proposals. The other party shall make a reply
thereto not later than 10 calendar days from
receipt of such notice;
(2) Should differences arise on the basis of
such notice and reply, either party may
request for a conference which shall begin
not later than 10 calendar days from the date
of request.
(3) If the dispute is not settled, the Board shall
intervene upon request of either or both
parties or at its own initiative and immediately
call the parties to conciliation meetings. The
Board shall have the power to issue
subpoenas requiring the attendance of the
parties to such meetings. It shall be the duty
of the parties to participate fully and
promptly in the conciliation meetings the
Board may call;
(4) During the conciliation proceedings in the
Board, the parties are prohibited from doing
any act which may disrupt or impede the early
settlement of the disputes; and
Billie Blanco (3E) | Ateneo Law 2022 | 38
(5) The Board shall exert all efforts to settle
disputes amicably and encourage the parties
to submit their case to a voluntary arbitrator.
STANDARD STIPULATIONS IN A CBA
The stipulations in a CBA may be classified
into 2:
(1) Political
• This shall include: (1) Coverage or
Scope of Agreement; (2) Exclusions;
(3) Rights and Responsibilities of
Parties; (4) Union Security
Arrangement; (5) Job Security
(Security of Tenure); (6) Management
Rights and Prerogative; (7) Company
Rules and Regulations; (8) Discipline
of Employees; (9) Union Dues and
Special Assessments; (10) Agency
Fees; (11) Check-off; (12) Grievance
Machinery; (13) Voluntary Arbitration;
(14) Labor-Management Council; (15)
No-Strike, No-Lockout; (16) Waiver
and Completeness of Agreement;
and (17) Duration and Effectivity of
Agreement.
(2) Economic
• This shall include: (1) Wage Increases;
(2) Allowance; (3) Premiums for Rest
Days, Holidays, etc.; (4) Meal, Rice,
and other Subsidies; (5) Leave
Benefits; (6) Union Leave; (7)
Uniforms; (8) Union Office; (9)
Promotions; (10) Bonuses; (11)
Insurance; (12) Hospitalization; (13)
Retirement; (14) Excursion; and (15)
Others.
MANDATORY PROVISIOSN OF CBA
(1) Grievance Machinery
(2) Voluntary Arbitration
(3) No Strike-No Lockout Clause
(4) Labor-Management Council
(5) Union Security Arrangements
(6) Economic / Working Conditions
Note: Where the subject of the dispute is
mandatory, either party may bargain to
impasse as long as s/he bargains in good
faith.
TWO SITUATIONS CONTEMPLATED
The duty to bargain collectively involves 2
situations:
(1) Duty to bargain collectively in the absence
of a CBA; and
(2) Duty to bargain collectively when there is
an existing CBA.
1. DUTY TO BARGAIN COLLECTIVELY IN
THE ABSENCE OF CBA
In the absence of an agreement or other
voluntary arrangement providing for a more
expeditious manner of collective bargaining,
it shall be the duty of employer and the
representatives of the employees to
bargain collectively in accordance with the
provisions of this Code.
2. DUTY TO BARGAIN COLLECTIVELY
WHEN THERE EXISTS A CBA
GENERAL RULE: When there is a CBA, the
duty to bargain collectively shall mean that
neither party shall terminate nor modify
such agreement during its lifetime.
EXCEPTION: However, either party can serve
a written notice to terminate or modify the
agreement at least 60 days prior to its
expiration date.
• It shall be the duty of both parties to
keep the status quo and to continue
in full force and effect the terms and
conditions of the existing
agreement during the 60-day period
and/or until a new agreement is
reached by the parties.
DURATION OF THE CBA
ECONOMIC POLITICAL
PROVISIONS PROVISIONS
3 years 5 years
60-DAY FREEDOM PERIOD
This refers to the last 60-day period of the 5-
year lifetime of the CBA immediately
preceding its expiration.
• It is the only time when the law allows
the parties to freely serve a notice to
terminate, alter, or modify the existing
the CBA.
• It is also the time when the majority
status of the SEBA may be challenged
Billie Blanco (3E) | Ateneo Law 2022 | 39
 by another union by filing the of notice, application is denied without
appropriate PCE. prejudice.

REGISTRATION OF COLLECTIVE DENIAL OF REGISTRATION / GROUNDS OF

BARGAINING AGREEMENTS APPEAL
WHEN TO FILE 1. The denial shall be in writing, stating in
Within 30 days from the execution of the CBA. clear terms the reason therefor and served
upon the applicant union and employer
WHERE TO FILE within 24 hours from issuance.
(1) With the Regional Office which issued the 2. The denial by the Regional Office of the
certificate of registration/charter certificate; registration of a single enterprise collective
(2) If the creation of the chartered local was bargaining agreements may be appealed to
issued by the Bureau, the agreement shall be the Bureau while the denial by the Bureau of
filed with the Regional Office which has the registration of multi-employer CBA may
jurisdiction over the place where it principally be appealed to the Office of the Secretary,
operates. both within 10 days from the receipt of the
(3) Multi-employer CBA shall be filed with the notice of denial.
Bureau. 3. The memorandum of appeal is filed with
the Regional Office or the Bureau, as the case
REQUIREMENTS FOR REGISTRATION may be.
The application for CBA registration shall be 4. The memorandum of appeal and the entire
accompanied by the original and 2 duplicate records of the application shall be
copies of the following documents which transmitted to the Bureau or Office of the
must be certified under oath by the Secretary within 24 hours from receipt of the
representative(s) of the employer(s) and labor memorandum of appeal.
union(s): 5. Bureau or the Office Secretary shall resolve
(1) CBA; within the same period and in the same
(2) A statement that the CBA was posted in at manner as that prescribed for inter/intra-
least 2 conspicuous places in the union disputes.
establishment/s concerned for at least 5 days
before its ratification; and RULES OF EFFECTIVITY AND
(3) A statement that the CBA was ratified by RETROACTIVITY
the majority of the employees in the NO PREVIOUS CBA WITH PREVIOUS
bargaining unit. CBA
Effective on the date (1) Effectivity of new
PROCEDURE FOR REGISTRATION agreed upon by the CBA entered into
1. The Regional Office or the Bureau shall act parties. within 6 months
on the applications within 5 days from the after the expiration
receipt of the application. of the old CBA →
2. The Regional Office or Bureau may within 5 Retroact to the date
days from receipt of the application: following the expiry
• Approve the application and issue the date.
certificate of registration; or
• Deny the application for failure to (2) Effectivity of new
comply with requirements. CBA entered into
after 6 months after
If the supporting documents are not the expiration of the
complete, or are not verified under oath, the old CBA → Parties
Regional Office shall notify the applicants in shall agree on the
writing of the requirements needed to date of the
complete the registration. effectivity.

Note: If the applicant fails to complete the HOLD OVER PRINCIPLE / AUTOMATIC
requirements within 10 days from the receipt RENEWAL CLAUSE

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Pending the renewal of the CBA and while
they are negotiating its renewal, the parties
are bound to keep the status quo and to treat
the terms and conditions embodied therein
still in force and effect not only during the 6-
day freedom period but until a new
agreement is negotiated and ultimately
concluded and reached by the parties.
• For its part, the employer cannot
discontinue the grant of the benefits
embodied in the CBA which just
expired as it is duty-bound to main the
status quo by continuing to give the
same benefits until a renewed CBA is
reached by the parties.
• On the part of the union, it has to
observe and continue to abide by its
undertaking and commitments under
the expired CBA until the same is
renewed.
ARBITRAL AWARDS
An arbitral award cannot per se be
categorized as an agreement voluntarily
entered into by the parties because it
requires the interference and imposing
power of the State through the Secretary of
Labor when s/he assumes jurisdiction.
However, it can be considered as an
approximation of a CBA which would
otherwise been entered into by the parties.
RULES
1. CBA arbitral awards granted after 6
months of the expiration of the last
CBA → Retroact to the time agreed
upon by both the employer and
employees or their union.
2. Absent such agreement as to
retroactivity → Award shall retroact
to the first day after the 6-month
period following the expiration of the
last day of the CBA
3. Absence of a CBA → Secretary’s
determination of the date of
retroactivity as part of his/her
discretionary powers over arbitral
awards.
Arts. 237, 219(n), 273-275(b), and 292(f,g,h)
Labor Code
Article 237. Registry of Unions and File of
Collective Bargaining Agreements.
The Bureau shall keep a registry of
legitimate labor organizations.
The Bureau shall also maintain a file of all
collective bargaining agreements and
other related agreements and records of
settlement of labor disputes and copies of
orders and decisions of voluntary
arbitrators or panel of voluntary arbitrators.
The file shall be open and accessible to
interested parties under conditions
prescribed by the Secretary of Labor and
Employment, provided that no specific
information submitted in con􀁁dence shall
be disclosed unless authorized by the
Secretary, or when it is at issue in any
judicial litigation, or when public interest or
national security so requires.
Within 30 days from the execution of a
Collective Bargaining Agreement, the
parties shall submit copies of the same
directly to the Bureau or the Regional
Offices of the Department of Labor and
Employment for registration accompanied
with verified proofs of its posting in two
conspicuous places in the place of work
and ratification by the majority of all the
workers in the bargaining unit. The Bureau
or Regional Offices shall act upon the
application for registration of such
Collective Bargaining Agreement within 5
calendar days from receipt thereof. The
Regional Offices shall furnish the Bureau
with a copy of the Collective Bargaining
Agreement within 5 days from its
submission.
The Bureau or Regional Office shall assess
the employer for every Collective
Bargaining Agreement a registration fee of
not less than P1,000 or in any other amount
as may be deemed appropriate and
necessary by the Secretary of Labor and
Employment for the effective and efficient
administration of the Voluntary Arbitration
Program. Any amount collected under this
provision shall accrue to the Special
Voluntary Arbitration Fund.
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 The Bureau shall also maintain a file, and
shall undertake or assist in the publication
of all final decisions, orders and awards of
the Secretary of Labor and Employment,
Regional Directors and the Commission.
= In case the parties fail to select a Voluntary
Article 219. Definitions.
XXX
(n) "Voluntary Arbitrator" means
(1) Any person accredited by the Board as
such; or
(2) Any person named or designated in the
Collective Bargaining Agreement by the
parties to act as their Voluntary Arbitrator;
or
(3) One chosen with or without the
assistance of the National Conciliation and
Mediation Board, pursuant to a selection
procedure agreed upon in the Collective
Bargaining Agreement; or
(4) Any official that may be authorized by
the Secretary of Labor and Employment to
act as Voluntary Arbitrator upon the written
request and agreement of the parties to a
labor dispute.
Article 273. Grievance Machinery and
Voluntary Arbitration.
The parties to a Collective Bargaining
Agreement 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:
(1) the interpretation or implementation of
their Collective Bargaining Agreement; and
(2) those arising from the interpretation or
enforcement of company personnel
policies.
All grievances submitted to the
grievance machinery which are not
settled within 7 calendar days from the
date of its submission shall automatically
be referred to voluntary arbitration
prescribed in the Collective Bargaining
Agreement.
For this purpose, parties to a Collective
Bargaining Agreement 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 qualified Voluntary
Arbitrators duly accredited by the Board.
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
Article 274. Jurisdiction of Voluntary
Arbitrators and Panel of Voluntary
Arbitrators.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and
decide all unresolved grievances arising
from:
(1) The interpretation or implementation of
the Collective Bargaining Agreement; and
(2) Those arising from the interpretation or
enforcement of company personnel
policies referred to in the immediately
preceding article.
Accordingly, violations of a Collective
Bargaining Agreement, except those
which are gross in character, shall no
longer be treated as unfair labor practice
and shall be resolved as grievances under
the Collective Bargaining Agreement.
For purposes of this article, gross
violations of Collective Bargaining
Agreement shall mean flagrant and/or
malicious refusal to comply with the
economic provisions of such agreement.
The Commission, its Regional Offices and
the Regional Directors of the Department
of Labor and Employment shall not
entertain disputes, grievances or matters
under the exclusive and original
jurisdiction of the Voluntary Arbitrator or
panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to
the Grievance Machinery or Voluntary
Arbitration provided in the Collective
Bargaining Agreement.
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Article 275. Jurisdiction Over Other Labor
Disputes.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators, upon agreement of
the parties, shall also hear and decide all
other labor disputes including unfair labor
practices and bargaining deadlocks.
Article 292. Miscellaneous Provisions.
XXX
(f) A special Voluntary Arbitration Fund is
hereby established in the Board to
subsidize the cost of voluntary arbitration in
cases involving the interpretation and
implementation of the Collective
Bargaining Agreement, including the
Arbitrator's fees, and for such other related
purposes to promote and develop
voluntary arbitration. The Board shall
administer the Special Voluntary
Arbitration Fund in accordance with the
guidelines it may adopt upon the
recommendation of the Council, which
guidelines shall be subject to the approval
of the Secretary of Labor and Employment.
Continuing funds needed for this purpose
in the initial yearly amount of P15,000,000
shall be provided in the 1989 annual
general appropriations acts.
The amount of subsidy in appropriate
cases shall be determined by the Board in
accordance with established guidelines
issued by it upon the recommendation of
the Council.
The Fund shall also be utilized for the
operation of the Council, the training and
education of Voluntary Arbitrators, and the
promotion and development of a
comprehensive Voluntary Arbitration
Program.
(g) The Ministry shall help promote and
gradually develop, with the agreement of
labor organizations and employers, labor-
management cooperation programs at
appropriate levels of the enterprise based
on shared responsibility and mutual
respect in order to ensure industrial peace
and improvement in productivity, working
conditions and the quality of working life.
(h) In establishments where no legitimate
labor organization exists, labor-
management committees may be formed
voluntarily by workers and employers for
the purpose of promoting industrial peace.
The Department of Labor and Employment
shall endeavor to enlighten and educate
the workers and employers on their rights
and responsibilities through labor
education with emphasis on the policy
thrusts of this Code.
GRIEVANCE MACHINERY
GRIEVANCE ISSUE
Any question raised by either the employer
or the union regarding any of the following
issues or controversies:
(1) The interpretation or application of the
CBA;
(2) The interpretation or enforcement of
company personnel policies; and
(3) Any claim by either party that the other
party is violating any provisions of the CBA or
company personnel policies.
Note: In order to be grievable, the violations
of the CBA should be simple or ordinary, and
NOT gross in character.
• Gross violation: Flagrant and/or
malicious refusal by a party thereto to
comply with the economic provisions
thereof. Hence, if what is violated is a
political provision, the same is not ULP
and thus may be a grievable issue.
ESTABLISHMENT OF GRIEVANCE
MACHINERY
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:
(1) the interpretation or implementation of
their CBA; and
(2) those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievance
machinery which are not settled within 7
calendar days from the date of its submission
shall automatically be referred to voluntary
arbitration prescribed in the Collective
Bargaining Agreement.
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HOW ESTABLISHED Board, pursuant to a selection procedure
1. By provision in the CBA; and agreed upon in the Collective Bargaining
2. In the absence of applicable provision in Agreement; or
the CBA, a grievance committee shall be (4) Any official that may be authorized by the
created within 10 days from the signing of the Secretary of Labor and Employment to act as
CBA. Voluntary Arbitrator upon the written request
and agreement of the parties to a labor
Grievance committee shall be composed of dispute.
at least 2 representatives each from the
members of the bargaining unit and the
employer, unless otherwise agreed upon by JURISDICTION
the parties. VOLUNTARY LABOR ARBITER
ARBITER
PROCEDURE IN HANDLING GRIEVANCES 1. Grievances 1. Unfair labor
In the absence of applicable provision in the arising from (1) the practice, including
CBA or existing company practice prescribing implementation or gross violations of
for the procedures in handling grievance, the interpretation of the CBA;
following shall apply: CBAs; (2)
1. An employee shall present this interpretation or 2. Termination
grievance or complaint orally or in enforcement of disputes;
writing to the shop steward. Upon company personnel
receipt thereof, the shop steward shall parties; and (3) any 3. Claims for wages,
verify the facts and determine whether claim by either partyrates of pay, hours
or not the grievance is valid. that the other party of work, and other
2. If the grievance of valid, the shop is violating anyterms and
steward shall immediately bring the provisions of the conditions of
complaint to the employee’s CBA or company employment, if
immediate supervisor. The shop personnel policies; accompanied with a
steward, the employee, and his/her claim for
immediate supervisor shall exert Note: Violations of reinstatement;
efforts to settle the grievance at their the CBA which are
level. simple or ordinary, 4. Claims for actual,
3. If no settlement is reached, the not gross in moral, exemplary,
grievance shall be referred to the character. and other forms of
grievance committee which shall have damages arising
10 days to decide the case. 2. Wage distortion from employer-
issues arising from employee
Note: Where the issue involves or arising the application of relationship;
from the interpretation or implementation of any wage orders in
a provision in the CBA or from any order, organized 5. Cases arising
memorandum, circular, or assignment issued establishments; from prohibited
by the appropriate authority in the activities during
establishment, and such issue cannot be 3. Those arising strikes;
resolved at the level of the shop steward of from interpretation
the supervisor, the same may be referred and implementation 6. All other claims
immediately to the grievance committee. of the productivity arising from
incentive program employer-
VOLUNTARY ARBITER under RA 6971; and employee
(1) Any person accredited by the Board as relationship
such; or 4. Any other labor involving an amount
(2) Any person named or designated in the disputes upon exceeding P5k,
Collective Bargaining Agreement by the agreement by the except claims for
parties to act as their Voluntary Arbitrator; or parties. ECC, SSS, Medicare,
(3) One chosen with or without the assistance
of the National Conciliation and Mediation
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and maternity VI. UNFAIR LABOR PRACTICE
benefits;
Arts. 258-260, and 274, Labor Code
7. Wage distortion Article 258. Concept of Unfair Labor
cases in Practice and Procedure for Prosecution
unorganized Thereof.
establishments; Unfair labor practices violate the
constitutional right of workers and
8. All monetary employees to self-organization, are
claims of OFWs (RA inimical to the legitimate interests of both
8042); and labor and management, including their
right to bargain collectively and otherwise
9. Enforcement of deal with each other in an atmosphere of
compromise freedom and mutual respect, disrupt
agreements when industrial peace and hinder the promotion
there is non- of healthy and stable labor-management
compliance by any relations.
of the parties.
Consequently, unfair labor practices are
not only violations of the civil rights of both
labor and management but are also
criminal offenses against the State which
shall be subject to prosecution and
punishment as herein provided.

Subject to the exercise by the President or

by the Secretary of Labor and Employment
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 affirmative relief,
shall be under the jurisdiction of the Labor
Arbiters. The Labor Arbiters shall give
utmost priority to the hearing and
resolution of all cases involving unfair labor
practices. They shall resolve such cases
within 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 under this Title

may be instituted without a final judgment
finding that an unfair labor practice was
committed, having been first obtained in
the preceding paragraph. During the
pendency of such administrative
proceeding, the running of the period of
prescription of the criminal offense herein
penalized shall be considered interrupted:

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Provided, however, That the final judgment
in the administrative proceedings shall not
be binding in the criminal case nor be
considered as evidence of guilt but merely
as proof of compliance of the requirements
therein set forth.
Article 259. Unfair Labor Practices of
Employers.
It shall be unlawful for an employer to
commit any of the following unfair labor
practices:
(a) To interfere with, restrain or coerce
employees in the exercise of their right to
self-organization;
(b) 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;
(c) 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;
(d) To initiate, dominate, assist or otherwise
interfere with the formation or
administration of any labor organization,
including the giving of financial or other
support to it or its organizers or supporters;
(e) 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.
Nothing in this Code or in any other law
shall stop the parties from requiring
membership in a recognized collective
bargaining agent as a condition for
employment, except those employees who
are already members of another union at
the time of the signing of the collective
bargaining agreement. Employees of an
appropriate bargaining unit who are not
members of the recognized collective
bargaining agent may be assessed a
reasonable fee equivalent to the dues and
other fees paid by members of the
recognized collective bargaining agent, if
such non-union members accept the
benefits under the collective bargaining
agreement: Provided, That the individual
authorization required under Article 242,
paragraph (o) of this Code 204 shall not
apply to the non-members of the
recognized collective bargaining agent;
(f) To dismiss, discharge or otherwise
prejudice or discriminate against an
employee for having given or being about
to give testimony under this Code;
(g) To violate the duty to bargain
collectively as prescribed by this Code;
(h) To pay negotiation or attorney's fees to
the union or its officers or agents as part of
the settlement of any issue in collective
bargaining or any other dispute; or
(i) To violate a collective bargaining
agreement.
The provisions of the preceding paragraph
notwithstanding, only the officers and
agents of corporations, associations or
partnerships who have actually
participated in, authorized or ratified
unfair labor practices shall be held
criminally liable.
Article 260. Unfair Labor Practices of Labor
Organizations.
It shall be unfair labor practice for a labor
organization, its officers, agents or
representatives:
(a) 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;
(b) 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;
(c) To violate the duty, or refuse to bargain
collectively with the employer, provided it
is the representative of the employees;
(d) 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
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services which are not performed or not to UNFAIR LABOR PRACTICES
be performed, including the demand for Unfair labor practices violate the
fee for union negotiations; constitutional right of workers and employees
(e) To ask for or accept negotiation or to self-organization, are inimical to the
attorney's fees from employers as part of legitimate interests of both labor and
the settlement of any issue in collective management, including their right to bargain
bargaining or any other dispute; or collectively and otherwise deal with each
(f) To violate a collective bargaining other in an atmosphere of freedom and
agreement. mutual respect, disrupt industrial peace and
hinder the promotion of healthy and stable
The provisions of the preceding paragraph labor-management relations.
notwithstanding, only the officers, Consequently, unfair labor practices are not
members of governing boards, only violations of the civil rights of both labor
representatives or agents or members of and management but are also criminal
labor associations or organizations who offenses against the State which shall be
have actually participated in, authorized subject to prosecution and punishment as
or ratified unfair labor practices shall be herein provided.
held criminally liable.
WHEN AN ACT CONSTITUTES ULP
Article 274. Jurisdiction of Voluntary Any unfair labor practice expressly defined by
Arbitrators and Panel of Voluntary the Labor Code.
Arbitrators. • A ULP may be committed by an
The Voluntary Arbitrator or panel of employer or by a labor organization.
Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and On the part of the On the part of the
decide all unresolved grievances arising employer, only the union, only the
from the interpretation or implementation officers and agents officers, members of
of the Collective Bargaining Agreement of corporations, governing boards
and those arising from the interpretation or associations, or or representatives
enforcement of company personnel partnerships who or agents or
policies referred to in the immediately have actually members of labor
preceding article. Accordingly, violations participated in or associations or
of a Collective Bargaining Agreement, authorized or organizations who
except those which are gross in character, ratified ULPs are have actually
shall no longer be treated as unfair labor criminally liable. participated in or
practice and shall be resolved as authorized or
grievances under the Collective Bargaining ratified the ULPs are
Agreement. For purposes of this article, criminally liable.
gross violations of Collective Bargaining
Agreement shall mean flagrant and/or • Not all unfair acts constitute ULP.
malicious refusal to comply with the While an act or decision of an
economic provisions of such agreement. employer or a union may be unfair,
certainly not every unfair act or
The Commission, its Regional Offices and decision may constitute ULP.
the Regional Directors of the Department
of Labor and Employment shall not ELEMENTS OF ULP
entertain disputes, grievances or matters 1. There is employer-employee relationship.
under the exclusive and original 2. The act done is expressly defined in the
jurisdiction of the Voluntary Arbitrator or Code as a UP.
panel of Voluntary Arbitrators and shall 3. The act complained of as ULP must have a
immediately dispose and refer the same to proximate and causal connection with the
the Grievance Machinery or Voluntary following:
Arbitration provided in the Collective (1) Exercise of the right to self-organization;
Bargaining Agreement.

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(2) Exercise of the right to collective
bargaining; or
(3) Compliance with CBA.
ASPECTS OF ULP
CIVIL ASPECT CRIMINAL ASPECT
Claims for actual,
moral, and
exemplary
damages, attorney’s
fees, and other
affirmative reliefs.
Must be brought Asserted before the
before Labor courts.
Arbiters who have
jurisdiction.
Note: Judgement in the labor case
(remember: administrative proceeding!) will
not sever as evidence of ULP in the criminal
case.
PRESCRIPTIVE PERIOD
The offense prescribes in 1 year.
ULP BY EMPLOYERS
The Code enumerates the acts or categories
of acts considered as ULP. The enumeration
does not mean an exhausting listing of ULP
incidents.
1. Interference with, restraint, or coercion
of employees in the exercise of their right
to self-organization
• Test to determine interference,
restraint, or coercion: W/N the
employer has engaged in conduct
which may be reasonably tend to
interfere with the free exercise of the
employees’ twin rights to self-
organization and collective
bargaining.
• For a charge of ULP to prosper, it must
be shown that the employer’s act was
motivated by ill will, bad faith, or
fraud, or was oppressive to labor, or
done in a manner contrary to moral,
good customs, or public policy.
o Good faith is presumed and s/he
who alleges bad faith has the duty
to prove it.
• Totality of Conduct Doctrine: A
finding of ULP should not be based
alone on the cited ULP act considered
in isolation but should be viewed on
the basis of the employer’s act outside
of the bigger context of the
accompanying labor relations
situation.
o Any perceived act of interference
must be examined in terms of the
act’s inherent import and effects,
in light of the surrounding
circumstances, and weighed on
the basis of the totality of conduct
of the entity charged.
o An expression which might be
permissibly uttered by one
employer, might be deemed
improper when spoken by a more
hostile employer, 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
coercive or interference, and
consequently actionable as an
unfair labor practice.
2. Yellow Dog Contract
• It is one 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
organizations.
3. Contracting Out of Services and
Functions
• As a general rule, the act of an
employer in having work or certain
services or functions being performed
by SEBA members contracted out is
not per se ULP. This is so because
contracting out of a job, work, or
service is clearly an exercise by the
employer of its business judgment and
its inherent management rights and
prerogatives. It is a valid exercise of its
management prerogative, subject to
special laws and agreements on the
matter and the fair standards of justice.
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 • It is only when the contracting out of a
job, work, or service being performed
by SEBA members will interfere with,
restrain, or coerce employees in the
exercise of their right to self-
organization that it shall constitute
ULP.
4. Company Domination of Union
• It is considered a ULP to initiate,
dominate, assist, or otherwise,
interfere with the formation or
administration of any labor
organization, including the giving of
financial or other support to it or its
organizers and supporters.
5. (a) Discrimination
• It is considered a ULP 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.
• There is discrimination only when one
is denied privileges which are granted
to others under similar conditions and
circumstances.
• Before a claim for discrimination can
prosper, it must be established that:
(1) There is no reasonable distinction
or classification that can be
obtained between persons
belonging to the same class; and
(2) Persons belonging to the same
class have not been treated alike.
(b) Valid Discrimination: Union Security
Clause
*Recall:
UNION SECURITY CLAUSE
GENERAL RULE: Nothing in this Code or in
any other law shall stop the parties from
requiring membership in a recognize
collective bargaining agent as a condition
for employment.
• A union security clause essentially
requires membership in the union
so that an employee may retain
his/her job and the union’s
existence is assumed.
• Union security is a generic term
which is applied to and
comprehends "closed shop,"
"union shop," "maintenance of
membership" or any other form of
agreement which imposes upon
employees the obligation to
acquire or retain union membership
as a condition affecting
employment.
EXCEPTION: Employees who are already
members of another union at the time of
the signing of the CBA.
6. Filing of Charges or Giving of Testimony
• It is considered ULP for an employer to
dismiss, discharge, or otherwise
prejudice or discriminate against an
employee for having given or being
about to give testimony under the
Labor Code.
• This is the only kind of ULP that need
not be related to or connected with
the exercise by the employees of their
right to self-organization and
collective bargaining or observance of
a CBA.
7. Violation of the Duty to Bargain
Collectively
This may manifest in:
(1) Failure or refusal to meet and convene;
(2) Evading the mandatory subjects of
bargaining;
(3) Bad faith in bargaining; and
(4) Gross violation of CBA.
8. Payment of Negotiation Fees or
Attorney’s Fees
• The act of the employer in paying
negotiation fees or attorney’s fees to
the SEBA or its officers or agents as
part of the settlement of any issue in
collective bargaining or any other
dispute.
Note: Such attorney’s fees, negotiation fees,
or similar changes should be paid from the
union funds. These cannot be collected from
the employees individually.
Billie Blanco (3E) | Ateneo Law 2022 | 49
ULP BY LABOR ORGANIZATIONS
1. Restraint or coercion by labor
organizations
• It is a ULP for a labor organization, its
officers, agents, or representatives to
restrain or coerce employees in the
exercise of their right to self-
determination.
• Compared to the similar provision in
Art. 259, notably lacking is the word
“interfere.”
o The significance in the omission of
this term lies in the grant of the
unrestricted license to the labor
organization, its officers, agents,
or representatives to interfere with
the exercise by the employees of
their right to self-organization.
Such interference is not unlawful
since without it, no labor
organization can be formed as the
act of recruiting and convincing
the employees to join it is
definitely an act of interference. It
becomes unlawful only when it
amounts to restraint or coercion
which is expressly prohibited.
Note: A labor organization is granted the
right to prescribe its own rules with respect to
the acquisition or retention (or loss) of
membership.
2. Discrimination
3 kinds of discrimination that a union may
commit under the said article:
(1) The act of the union to cause or
attempt to cause an employer to
discriminate against an employee, in
general, irrespective of whether s/he
is a member or non-member of the
union;
(2) The discriminatory act of the union
against an employee with respect to
whom membership in such
organization has been denied; and
(3) The discriminatory act of the union
against an employee whose
membership therein has been
terminated based on any ground
other than the usual terms and
conditions which membership or
continuation of membership is made
available to other members.
(Note: Dismissal based on enforcement of the
Union Security Clause.)
3. Violation of the Duty of the Union to
Bargain Collectively
• Before a union may be held liable for
ULP, the following must concur: (1) the
union is a duly certified sole and
exclusive bargaining agent; and (2) it
either (a) violates the duty to bargain
collectively; or (b) refuses to bargain
collectively with the employer.
Note: A non-SEBA has no duty to collectively
bargain with the employer; only a SEBA has
that duty.
4. Featherbedding & make-work
arrangements
• Featherbedding: Employee practices
which create or spread employment
by unnecessarily maintaining or
increasing the number of employees
used, or the amount of time
consumed to work on a particular job.
o This is resorted to by the union as
a response to laying-off of workers
occasioned by their obsolescence
because of the introduction of
machines, robots, or new and
technical changes and
improvements in the work place or
as required by minimum health
and safety standards, among other
reasons.
• Requisites. – For featherbedding to
be appreciated, the following must
concur:
(1) The labor organization, its officers,
agents, or representatives have
caused or attempted to cause an
employer either: (a) to pay or
agree to pay any money, including
the demand for fee for union
negotiations; or (b) to deliver or
agree to deliver any things of
value;
(2) Such demand for payment of
money or delivery of things of
value is in the nature of an
exaction; and
(3) The services contemplated in
exchange for the exaction are not
Billie Blanco (3E) | Ateneo Law 2022 | 50
 actually performed or will not be
performed.
5. Demand or Acceptance of Negotiation
Fees or Attorney’s Fees
• Following are the requisites to hold a
union liable for ULP based on this
particular ground:
(1) The union or any of its officers,
agents, or representatives commit
either of the following acts: (a) to
ask for negotiation fees or
attorney’s fees; or (b) to accept
negotiation fees or attorney’s fees;
and
(2) The negotiation fees or attorney’s
fees are demanded from, or given
by, the employer as part of
settlement of any issues related to:
(a) collective bargaining; or (b) any
other dispute.
6. Violation of the CBA
• Violating a cba becomes ULP only if
the violation is gross in character.
VI. STRIKES, LOCKOUT, &
CONCERTED ACTIONS
Arts. 219 (o-s), 278-281, and 266, Labor Code
Article 219. Definitions.
XXX
(o) "Strike" means any temporary
stoppage of work by the concerted action
of employees as a result of an industrial or
labor dispute.
(p) "Lockout" means any temporary refusal
of an employer to furnish work as a result of
an industrial or labor dispute.
(q) "Internal union dispute" includes all
disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by laws of
a union, including any violation of the rights
and conditions of union membership
provided for in this Code.
(r) "Strike-breaker" means any person
who obstructs, impedes, or interferes with
by force, violence, coercion, threats, or
intimidation any peaceful picketing
affecting wages, hours or conditions of
work or in the exercise of the right of self-
organization or collective bargaining.
(s) "Strike area" means the establishment,
warehouses, depots, plants or offices,
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 from before all points of
entrance to and exit from said
establishment.
Article 278. Strikes, Picketing, and
Lockouts.
(a) It is the policy of the State to encourage
free trade unionism and free collective
bargaining.
(b) Workers shall have the right to
engage in concerted activities for
purposes of collective bargaining or for
their mutual benefit and protection. The
right of legitimate labor organizations to
strike and picket and of employers to
lockout, consistent with the national
Billie Blanco (3E) | Ateneo Law 2022 | 51
interest, shall continue to be recognized
and respected. However, no labor union
may strike and no employer may declare
a lockout on grounds involving inter-
union and intra-union disputes.
(c) In cases of bargaining deadlocks, the
duly certified or recognized bargaining
agent may file a notice of strike or the
employer may file a notice of lockout with
the Ministry at least 30 days before the
intended date thereof. In cases of unfair
labor practice, the period of notice shall
be 15 days and in the absence of a duly
certified or recognized bargaining agent,
the notice of strike may be filed by any
legitimate labor organization in behalf of its
members. However, in case of dismissal
from employment of union officers duly
elected in accordance with the union
constitution and by-laws, which may
constitute union busting where the
existence of the union is threatened, the 15-
day cooling-off period shall not apply and
the union may take action immediately.
(d) The notice must be in accordance with
such implementing rules and regulations
as the Minister of Labor and Employment
may promulgate.
(e) During the cooling-off period, it shall be
the duty of the Ministry to exert all
efforts at mediation and conciliation to
effect a voluntary settlement. Should the
dispute remain unsettled until the lapse of
the requisite number of days from the
mandatory filing of the notice, the labor
union may strike or the employer may
declare a lockout.
(f) A decision to declare a strike must be
approved by a majority of the total union
membership in the bargaining unit
concerned, obtained by secret ballot in
meetings or referenda called for that
purpose. A decision to declare a lockout
must be approved by a majority of the
board of directors of the corporation or
association or of the partners in a
partnership, obtained by secret ballot in a
meeting called for that purpose. The
decision shall be valid for the duration of
the dispute based on substantially the
same grounds considered when the
strike or lockout vote was taken. The
Ministry may, at its own initiative or upon
the request of any affected party, supervise
the conduct of the secret balloting. In every
case, the union or the employer shall
furnish the Ministry the results of the voting
at least seven days before the intended
strike or lockout, subject to the cooling-off
period herein provided.
(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 Secretary of Labor
and Employment may assume
jurisdiction over the dispute and decide
it or certify the same to the Commission
for compulsory arbitration. Such
assumption or certification shall have the
effect of automatically enjoining the
intended or impending strike or lockout as
specified in the assumption or certification
order. If one has already taken place at the
time of assumption or certification, all
striking or locked out employees shall
immediately return to work and the
employer shall immediately resume
operations and readmit all workers under
the same terms and conditions prevailing
before the strike or lockout. The Secretary
of Labor and Employment or the
Commission may seek the assistance of law
enforcement agencies to ensure
compliance with this provision as well as
with such orders as he may issue to enforce
the same.
In line with the national concern for and the
highest respect accorded to the right of
patients to life and health, strikes and
lockouts in hospitals, clinics and similar
medical institutions shall, to every
extent possible, be avoided, and all
serious efforts, not only by labor and
management but government as well, be
exhausted to substantially minimize, if not
prevent, their adverse effects on such life
and health, through the exercise, however
legitimate, by labor of its right to strike and
by management to lockout. In labor
disputes adversely affecting the continued
operation of such hospitals, clinics or
medical institutions, it shall be the duty of
Billie Blanco (3E) | Ateneo Law 2022 | 52
the striking union or locking-out
employer to provide and maintain an
effective skeletal workforce of medical
and other health personnel, whose
movement and services shall be
unhampered and unrestricted, as are
necessary to insure the proper and
adequate protection of the life and health
of its patients, most especially emergency
cases, for the duration of the strike or
lockout. In such cases, therefore, the
Secretary of Labor and Employment may
immediately assume, within 24 hours
from knowledge of the occurrence of
such a strike or lockout, jurisdiction over
the same or certify it to the Commission
for compulsory arbitration. For this
purpose, the contending parties are strictly
enjoined to comply with such orders,
prohibitions and/or injunctions as are
issued by the Secretary of Labor and
Employment or the Commission, under
pain of immediate disciplinary action,
including dismissal or loss of employment
status or payment by the locking-out
employer of backwages, damages and
other affirmative relief, even criminal
prosecution against either or both of them.
The foregoing notwithstanding, 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.
(h) Before or at any stage of the compulsory
arbitration process, the parties may opt to
submit their dispute to voluntary
arbitration.
(i) The Secretary of Labor and
Employment, the Commission or the
voluntary arbitrator or panel of
voluntary arbitrators shall decide or
resolve the dispute within 30 calendar days
from the date of the assumption of
jurisdiction or the certification or
submission of the dispute, as the case may
be. The decision of the President, the
Secretary of Labor and Employment, the
Commission or the voluntary arbitrator
shall be final and executory 10 calendar
days after receipt thereof by the parties.
Article 279. Prohibited Activities.
(a) No labor organization or employer
shall declare a strike or lockout without
first having bargained collectively in
accordance with Title VII of this Book or
without first having filed the notice
required in the preceding Article or
without the necessary strike or lockout
vote first having been obtained and
reported to the Ministry.
No strike or lockout shall be declared:
(1) after assumption of jurisdiction by
the President or the Minister; or
(2) after certification or submission of
the dispute to compulsory or
voluntary arbitration; or
(3) during the pendency of cases
involving the same grounds for the
strike or lockout.
Any worker whose employment has
been terminated as a consequence of
any unlawful lockout shall be entitled to
reinstatement with full backwages. Any
union officer who knowingly
participates in an illegal strike and any
worker or union officer who knowingly
participates in the commission of illegal
acts during a strike may be declared to
have lost his employment status: Provided,
That mere participation of a worker in a
lawful strike shall not constitute sufficient
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 strikebreaker.
Billie Blanco (3E) | Ateneo Law 2022 | 53
(d) No public official or employee,
including officers and personnel of the
New Armed Forces of the Philippines or the
Integrated National Police, 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. The police force
shall keep out of the picket lines unless
actual violence or other criminal acts occur
therein: Provided, That nothing herein shall
be interpreted to prevent any public officer
from taking any measure necessary to
maintain peace and order, protect life and
property, and/or enforce the law and legal
orders.
(e) No person engaged in picketing shall
commit any act of violence, coercion or
intimidation or obstruct the free ingress
to or egress from the employer's
premises for lawful purposes, or
obstruct public thoroughfares.
Article 280. Improved Offer Balloting.
In an effort to settle a strike, the
Department of Labor and Employment
shall conduct a referendum by secret
balloting on the improved offer of the
employer on or before the 30th day of the
strike. When at least a majority of the union
members vote to accept the improved
offer the striking workers shall immediately
return to work and the employer shall
thereupon readmit them upon the signing
of the agreement.
In case of a lockout, the Department of
Labor and Employment shall also
conduct a referendum by secret
balloting on the reduced offer of the
union on or before the 30th day of the
lockout. When at least a majority of the
board of directors or trustees or the
partners holding the controlling interest in
the case of a partnership vote to accept the
reduced offer, the workers shall
immediately return to work and the
employer shall thereupon readmit them
upon the signing of the agreement.
Article 281. Requirement for Arrest and
Detention.
Except on grounds of national security and
public peace or in case of commission of a
crime, no union members or union
organizers may be arrested or detained
for union activities without previous
consultations with the Secretary of Labor.
Article 266. Injunction Prohibited.
No temporary or permanent injunction or
restraining order in any case involving or
growing out of labor disputes shall be
issued by any court or other entity, except
as otherwise provided in Articles 218 and
264 of this Code.
FORMS OF CONCERTED ACTIONS:
(1) Strike;
(2) Lockout; and
(3) Picketing
STRIKE
Any temporary stoppage of work by the
concerted action of employees as a result of
an industrial or labor dispute.
Forms of Strike
1. Shave heads
2. Slowdown strike
3. Mass leave
4. Sit downs
5. Attempt to destroy equipment
LOCKOUT
Any temporary refusal of an employer to
furnish work as a result of an industrial or labor
dispute.
WHO CAN DECLARE A STRIKE OR LOCKOUT
1. Any certified or duly recognized
bargaining agent on the ground of
bargaining deadlock or ULP;
2. Employer; and
3. In the absence of a SEBA, any
legitimate labor organization in the
establishment.
GROUNDS FOR A STRIKE
(1) Collective bargaining deadlock; and
(2) ULP
Billie Blanco (3E) | Ateneo Law 2022 | 54
Note: In case of ULP, violations of CBA can
only be a ground if it is gross in nature and it
pertains to economic provisions.
PROCEDURAL REQUIREMENTS FOR A
VALID STRIKE
The following are required: (1) notice of
strike; (2) cooling-off period; (3) strike vote;
(4) strike vote report; and (5) 7-day strike ban
Note: These requirements are mandatory,
meaning, non-compliance makes the strike
illegal.
1. NOTICE OF STRIKE
• It is filed in the regional branch of the
NCMB.
• It must be filed at least 30 days, in case
of collective bargaining deadlock, and
at least 15 days in case of ULP, before
the intended date of strike.
WHO FILES NOTICE OF STRIKE?
If ULP: Duly recognized certified bargaining
agent; If none, unrecognized labor union,
provided duly registered
If Deadlock: Only exclusive bargaining
representative
2. COOLING OFF PERIOD
If ULP: 15 days
• BUT, if unionbusting, the cooling off
period need not be observed.
If Deadlock: 30 days
NCMB upon the receipt of the notice of strike
and during the cooling period, mediates, and
conciliates the parties. The Regional branch
of the Board may, upon agreement of the
parties, treat a notice as a preventive
mediation case. It shall also encourage the
parties to submit the dispute to voluntary
arbitration.
UNION BUSTING
This occurs when the following requisites
occur:
(1) The union officers are being dismissed;
(2) The officers were duly elected in
accordance with the union constitution and
by-laws; and
(3) The existence of the union is threatened.
Note: During the cooling off-period, the
parties cannot do any act that may disrupt or
impede the early settlement of the dispute.
Otherwise, it can be interpreted as a violation
of the cooling-off period requirement.

The rules require that as far as practicable, 3. STRIKE VOTE

included in the notice are: A strike vote should be taken by secret
If ULP: If Deadlock: balloting, in meetings or referenda specially
The acts complained The unresolved called for that purpose.
of and the efforts issued in the
taken to resolve the bargaining The requirement of giving notice of the
dispute amicably. negotiation as well conduct of strike vote to the NCMB at least 24
as (1) written hours before:
proposals of the (1) Inform the NCMB of the intent of the
union, (2) union to conduct a strike vote;
counterproposals, (2) Give the NCMB ample time to decide
and (3) Proof of a on whether or not there is a need to
request for supervise the conduct of a strike vote
conference to settle to prevent any acts of violence and/or
the differences. irregularities attendant thereto; and
(3) Should the NCMB decide on its
In case the notice does not conform with the initiative or upon the request of an
requirements, the Regional branch of the interested party including the
Board shall inform the concerned party of employer, to supervise the strike vote,
such fact. It’s not a fatal defect. to give it ample time to prepare for it.

Unless and until the NCMB is notified at least

24 hours of the union’s decision to conduct a
strike vote, the strike is not legal.

Billie Blanco (3E) | Ateneo Law 2022 | 55

NUMBER OF VOTES REQUIRED FOR STRIKES IN HOSPITAL, CLINICS, AND
STRIKE/LOCKOUT: Majority of the total union MEDICAL INSTITUTIONS
membership and/or of the directors or In line with the national concern for and the
partners, as the case may be. highest respect accorded to the right of
patients to life and health, strikes and
4. STRIKE VOTE REPORT lockouts in hospitals, clinics and similar
The result of the strike vote shall be reported medical institutions shall, to every extent
to the NCMB at least 7 days before intended possible, be avoided, and all serious efforts,
strike or lockout, subject to the cooling-off not only by labor and management but
period. government as well, be exhausted to
substantially minimize, if not prevent, their
5. 7-DAY STRIKE BAN adverse effects on such life and health,
Within 7 days from the submission of the through the exercise, however legitimate, by
strike vote, no strike can be staged. labor of its right to strike and by management
to lockout. In labor disputes adversely
If Cooling Off If 7-day Strike Ban: affecting the continued operation of such
Period: The reckoning point hospitals, clinics or medical institutions, it shall
The reckoning point is the filing of the be the duty of the striking union or
is the date of the report of the strike locking-out employer to provide and
intended strike. vote with NCMB. maintain an effective skeletal workforce of
medical and other health personnel,
What happens when strike vote is taken whose movement and services shall be
and reported within cooling-off vote? unhampered and unrestricted, as are
It must be noted that the requirements of the necessary to insure the proper and adequate
cooling-off period and 7-day strike ban must protection of the life and health of its patients,
be most complied with; hence, the 7-day most especially emergency cases, for the
waiting period or strike ban is counted not duration of the strike or lockout.
from the date of submission but from the
expiration of the cooling-off period. CONSEQUENCES FOR ILLEGAL STRIKE
(1) Termination of employment
ILLEGAL STRIKE
A strike is illegal if: If Union Officer: If Union Member:
(1) There are no grounds to declare a Mere participation Commission of an
strike; illegal act during the
(2) There is non-compliance with the strike.
procedural requirements; and
(3) There is the commission of prohibited BUT, if the strike is illegal because it was a
acts. violation of an assumption order or
certification order, that already amounts to a
PROHIBITED ACTS prohibited activity, even a mere union who
(1) If for Deadlock: No collective participated in the illegal strike may be
bargaining yet; terminated.
(2) Violation of assumption or
certification order; Note: The termination of the employment is
(3) Commit any act of violence, coercion, not automatic. It is management prerogative.
or intimidation;
(4) Obstruct the free ingress or egress (2) Fine and/or imprisonment for prohibited
from the employer’s premises; activities
(5) Obstruct peaceful picket; (3) Backwages
(6) Strike breaker;
(7) Use of public officer/employee to GENERAL RULE: If prohibited act was not
escort persons seeking to replace proven and there was illegal dismissal, there
striking workers. are no backwages that can be awarded.

Billie Blanco (3E) | Ateneo Law 2022 | 56

EXCEPTION: An employee is entitled to
backwages even if s/he participated in a strike
and the following concur –
(1) Employee was willing, able, and ready
to go to work but was illegally locked
out, dismissed, suspended, or
separated from work by the employer;
and
(2) Strike was legal.
IMPROVED OFFER BALLOTING
In an effort to settle a strike, the Department
of Labor and Employment shall conduct a
referendum by secret balloting on the
improved offer of the employer on or
before the 30th day of the strike. When at least
a majority of the union members vote to
accept the improved offer the striking
workers shall immediately return to work and
the employer shall thereupon readmit them
upon the signing of the agreement.
In case of a lockout, the Department of
Labor and Employment shall also conduct
a referendum by secret balloting on the
reduced offer of the union on or before the
30th day of the lockout. When at least a
majority of the board of directors or trustees
or the partners holding the controlling
interest in the case of a partnership vote to
accept the reduced offer, the workers shall
immediately return to work and the employer
shall thereupon readmit them upon the
signing of the agreement.
ASSUMPTION AND CERTIFICATION
ORDERS
When in the opinion of the DOLE Secretary,
the labor dispute causes or likely to cause
a trike or lockout in an industry
indispensable to the national interest, the
SOLE is empowered to either:
(1) Assume jurisdiction over the labor
dispute and decide it himself; or
(2) Certify it to the NLRC for compulsory
arbitration, in which it will be NLRC
which shall hear and decide it.
Note: An Assumption or Certification Order
may be issued by the request of both parties
or it can be issued also after conferences
where one of the parties requests for an
assumption order or it can be done motu
propio by the Secretary again after
conferences with the employer and union.
AS A POLICE POWER MEASURE
• The power to issue an assumption
order is an extraordinary authority
granted to the DOLE Secretary, the
exercise of which should be limited to
national interest cases. It is in the
nature of a police power measure.
• This is done for the promotion of the
common good considering that a
prolonged strike or lockout can be
inimical to the national economy.
POWER OF THE PRESIDENT OVER
NATIONAL INTEREST CASES
Notwithstanding the power granted to the
DOLE Secretary to assume jurisdiction over
national interest labor disputes or certify
them to the NLRC for compulsory arbitration,
the President of the Philippines shall not be
precluded from doing any of the following:
(1) to determine the industries that, in his
opinion, are indispensable to the
national interest; or
(2) to intervene at any time and assume
jurisdiction over any such labor
dispute in order to settle or terminate
it.
Note: The normal due process requisite of
prior notice and hearing is not required to be
complied with before the DOLE Secretary
may assume the assumption or certification
order.
• The rationale for his/her primacy
assumption of jurisdiction can
justifiably rest on his/her own
consideration of the exigency of the
situation in relation to national
interest.
EFFECT ON STRIKE OR LOCKOUT
(1) On intended or impending strike or
lockout
• Upon the assumption/certification,
the intended or impending strike or
lockout is automatically enjoined,
notwithstanding the filing of any
motion for reconsideration of
assumption/certification order or the
non-resolution of any such motion.
Billie Blanco (3E) | Ateneo Law 2022 | 57
(2) On the actual strike or lockout
• If a work stoppage has already taken
place at the time of the
assumption/certification, all striking or
locked out employees shall
immediately return to work and the
employer shall immediately resume
operations and readmit all workers
under the same terms and conditions
prevailing before the strike or lockout.
(3) On cases already filed or may be filed
• All cases between the parties, except
where the assumption/certification
order specifies otherwise, including
the issues submitted for arbitration
which are already filed or may be filed
and are relevant to or are proper
incidents of the certified case, are
considered subsumed or absorbed by
the assumed/certified case.
VII. SECURITY OF TENURE
Arts. 292 (b), 294, and 297-302, Labor Code
Article 292. Miscellaneous Provisions.
X X X Right of a worker to a written notice and due process against
dismissal
(b) Subject to the constitutional right of
workers to security of tenure and their right
to be protected against dismissal except
for a just and authorized cause and without
prejudice to the requirement of notice
under Article 283 of this Code, the
employer shall furnish the worker whose
employment is sought to be terminated a
written notice containing a statement of
the causes for termination and
shall afford the latter ample opportunity
to be heard and to defend himself with
the assistance of his representative if he
so desires in accordance with company
rules and regulations promulgated
pursuant to guidelines set by the
Department of Labor and Employment.
Any decision taken by the employer shall
be without prejudice to the right of the
worker to contest the validity or legality of
his dismissal by filing a complaint with the
regional branch of the National Labor
Relations Commission. The burden of
proving that the termination was for a valid
or authorized cause shall rest on the
employer.
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
finding by the appropriate official of the
Department of Labor and Employment
before whom such dispute is pending that
the termination may cause a serious labor
dispute or is in implementation of a mass
lay-off.
Article 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
reinstatement without loss of seniority
Billie Blanco (3E) | Ateneo Law 2022 | 58
rights and other privileges and to his full
backwages, inclusive of allowances, and to
his other benefits or their monetary
equivalent computed from the time his
compensation was withheld from him up to
the time of his actual reinstatement.
Article 297. Termination by Employer.
An employer may terminate an
employment for any of the following
causes:
(a) Serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representative in connection with his work;
(b) Gross and habitual neglect by the
employee of his duties;
(c) Fraud or willful breach by the employee
of the trust reposed in him by his employer
or duly authorized representative;
(d) Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of his
family or his duly authorized
representatives; and
(e) Other causes analogous to the
foregoing.
Article 298. Closure of Establishment and
Reduction of Personnel.
The employer may also terminate the
employment of any employee due to the
installation of labor-saving devices,
redundancy, retrenchment to prevent
losses or 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 Ministry of Labor and
Employment at least 1 month before the
intended date thereof.
In case of termination due to the installation
of laborsaving devices or redundancy, the
worker affected thereby shall be entitled to
a separation pay equivalent to at least his 1
month pay or to at least 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
financial reverses, the separation pay shall
be equivalent to 1 month pay or at least ½
month pay for every year of service,
whichever is higher. A fraction of at least 6
months shall be considered 1 whole year.
Article 299. Disease as Ground for
Termination.
An employer may terminate the services
of an employee who has been found to be
suffering from any disease and whose
continued employment is prohibited by
law or is prejudicial to his health as well as
to the health of his co-employees:
Provided, That he is paid separation pay
equivalent to at least 1 month salary or to
1/2 month salary for every year of service,
whichever is greater, a fraction of at least 6
months being considered as 1 whole year.
Article 300. Termination by Employee.
(a) An employee may terminate without
just cause the employee-employer
relationship by serving a written notice
on the employer at least 1 month in
advance. The employer upon whom no
such notice was served may hold the
employee liable for damages.
(b) An employee may put an end to the
relationship without serving any notice
on the employer for any of the following
just causes:
1. Serious insult by the employer or his
representative on the honor and person of
the employee;
2. Inhuman and unbearable treatment
accorded the employee by the employer or
his representative;
3. Commission of a crime or offense by the
employer or his representative against the
person of the employee or any of the
immediate members of his family; and
4. Other causes analogous to any of the
foregoing.
Article 301. When Employment not
Deemed Terminated.
The bonafide suspension of the
operation of a business or undertaking
for a period not exceeding 6 months, or
the fulfillment by the employee of a military
or civic duty shall not terminate
employment. In all such cases, the
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employer shall reinstate the employee to Retail, service and agricultural
his former position without loss of seniority establishments or operations employing
rights if he indicates his desire to resume his not more than 10 employees or workers
work not later than 1 month from the are exempted from the coverage of this
resumption of operations of his employer or provision.
from his relief from the military or civic duty.
Violation of this provision is hereby
Article 302. Retirement. declared unlawful and subject to the penal
Any employee may be retired upon provisions under Article 288 of this Code.
reaching the retirement age established in
the collective bargaining agreement or Nothing in this Article shall deprive any
other applicable employment contract. employee of benefits to which he may be
entitled under existing laws or company
In case of retirement, the employee shall be policies or practices.
entitled to receive such retirement benefits
as he may have earned under existing laws Security of Tenure
and any collective bargaining agreement It is a constitutionally protected right and
and other agreements: Provided, however, applies to all workers (PH Consti., art. XIII, Sec.
That an employee's retirement benefits 3).
under any collective bargaining and other
agreements shall not be less than those Security of tenure is the constitutional right
provided therein. granted to the employee, that the employer
shall not terminate the services of the
In the absence of a retirement plan or employee except for just cause or when
agreement providing for retirement authorized by law.
benefits of employees in the establishment, • It extends to regular (permanent) as
an employee upon reaching the age of 60 well as non-regular (temporary)
years or more, but not beyond 65 years employment.
which is hereby declared the compulsory
retirement age, who has served at least 5 TWO-FOLD DUE PROCESS
years in the said establishment, may retire REQUIREMENTS
and shall be entitled to retirement pay Dismissal of employees requires the
equivalent to at least 1/2 month salary for observance of the two-fold due process
every year of service, a fraction of at least 6 requisites:
months being considered as one whole (1) Substantive Due Process
year. • The dismissal must be for any of the
following: (1) just causes; or (2)
Unless the parties provide for broader authorized causes.
inclusions, the term 1/2 month salary shall
mean 15 days plus 1/12 of the 13th month JUST CAUSES AUTHORIZED
pay and the cash equivalent of not more CAUSES
than 5 days of service incentive leaves. Instances Instances
enumerated under enumerated under
An underground mining employee upon Art. 297 of the Labor Articles 298
reaching the age of 50 years or more, but Code. (Closure of
not beyond 60 years which is hereby Establishment and
declared the compulsory retirement age Reduction of
for underground mine workers, who has Personnel) and 299
served at least 5 years as underground (Diseases as Ground
mine worker, may retire and shall be for Termination) of
entitled to all the retirement benefits the Labor Code.
provided for in this Article.
Causes directly Causes brought by
attributable to the the necessity and

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 fault or negligence exigencies of
of the employee. business, changing
economic
conditions and
illness of the
employee.
The employee has There exists a chance to defend themselves personally,
committed a ground which the
wrongful act or law itself allows or
omission. authorizes to be
invoked to justify the
termination of an
employee even if he
has not committed
any wrongful act or
omission.
(2) Procedural Due Process (Applies also to
disease!)
(1) The first written notice to be served on
the employees should contain the specific
causes or grounds for termination against
them, and a directive that the employees
are given the opportunity to submit their
written explanation within a reasonable
period. "Reasonable opportunity" under
the Omnibus Rules means every kind of
assistance that management must accord
to the employees to enable them to
prepare adequately for their defense. This
should be construed as a period of at least
5 calendar days from receipt of the notice
to give the employees an opportunity to
study the accusation against them, consult
a union official or lawyer, gather data and
evidence, and decide on the defenses they
will raise against the complaint. Moreover,
in order to enable the employees to
intelligently prepare their explanation and
defenses, the notice should contain a
detailed narration of the facts and
circumstances that will serve as basis for
the charge against the employees. A
general description of the charge will not
suffice. Lastly, the notice should specifically
mention which company rules, if any, are
violated and/or which among the grounds
under Art. 282 is being charged against the
employees.
(2) After serving the first notice, the
employers should schedule and conduct a
hearing or conference wherein the
employees will be given the opportunity to:
(1) explain and clarify their defenses to the
charge against them; (2) present evidence
in support of their defenses; and (3) rebut
the evidence presented against them by
the management. During the hearing or
conference, the employees are given the
with the assistance of a representative or
counsel of their choice. Moreover, this
conference or hearing could be used by
the parties as an opportunity to come to an
amicable settlement.
(3) After determining that termination of
employment is justified, the employers
shall serve the employees a written notice
of termination indicating that: (1) all
circumstances involving the charge against
the employees have been considered; and
(2) grounds have been established to justify
the severance of their employment.
The due process requirement in cases of
termination of employment does not require
an actual or formal hearing.
• "Ample opportunity to be heard"
means any meaningful opportunity
(verbal or written) 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 when
requested by the employee in writing
or substantial evidentiary disputes
exist or a company rule or practice
requires it, or when similar
circumstances justify it.
o The right to counsel and the
assistance of one in investigations
involving termination cases is
neither indispensable nor
mandatory, except when the
employee himself requests for one
or that he manifests that he wants
a formal hearing on the charges
against him.
To constitute proper notice, the facts
constitutive of the violations of these rules —
and not just the rules of conduct — must be
clearly stated. Proper notice also requires that
Billie Blanco (3E) | Ateneo Law 2022 | 61
the alleged participation of the employee be
clearly specified. Without these, the most
fundamental requirement of a fair hearing
cannot be met.
Note: In termination cases, the burden of
proof rests with the employer to show that the
dismissal is for just and valid cause.
• Failure to do so would necessarily
mean that the dismissal was not
justified and therefore was illegal.
The grant of separation pay or some other
financial assistance to an employee
dismissed for just causes is based on equity.
• Severance compensation, or whatever
name it is called, on the ground of
social justice shall be allowed only
when the cause of the dismissal is
other than serious misconduct or for
causes which reflect adversely on the
employee's moral character.
JUST CAUSES (Art. 297, Labor Code) (DO
147-15)
(1) Serious Misconduct5
1. There must be misconduct;
2. The misconduct must be of such grave
and aggravated character;
3. It must relate to the performance of the
employee’s duties; and
4. There must be showing that the
employee becomes unfit to continue
working for the employer.
(2) Willful Disobedience or
Insubordination
1. There must be disobedience or
insubordination;
2. The disobedience or insubordination
must be willful or intentional characterized
by a wrongful and perverse attitude;
3. The order violated must be reasonable,
lawful, and made known to the employee;
and
4. The order must pertain to the duties
which he has been engaged to discharge.
(3) Gross and Habitual Neglect of Duties
1. There must be neglect of duty; and
2. The negligence must be both gross and
habitual in character.6
5
Series of irregularities, when put together, may
constitute serious misconduct.
(4) Fraud or Willful Breach of Trust
1. There must be an act, omission, or
concealment;
2. The act, omission, or concealment
involves a breach of legal duty, trust, or
confidence justly reposed;
3. It must be committed against the
employer or his/her representative; and
4. It must be in connection with the
employees’ work.
(5) Loss of Confidence
1. There must be an act, omission, or
concealment;
2. The act, omission, or concealment
justifies the loss of trust and confidence of
the employer to the employee;
3. The employee concerned must be
holding a position of trust and confidence;
4. The loss of trust and confidence should
not be simulated;
5. It should not be used as a subterfuge for
causes which are improper, illegal, or
unjustified; and
6. It must be genuine and not a mere
afterthought to justify an earlier action
taken in bad faith.
(6) Commission of a Crime or Offense
1. There must be an act or omission
punishable/prohibited by law; and
2. The act or omission was committed by
the employee against the person of
employer, any immediate member of
his/her family, or his/her duly authorized
representative.
(6) Analogous Causes
1. There must be act or omission similar to
those specified just causes; and
2. The act or omission must be voluntary
and/or willful on the part of the employees.
No act or omission shall be considered as
analogous cause unless expressly specified
in the company rules and regulations or
policies.
PAST INFRACTIONS
The past infractions for which the employee
has suffered penalty for each violation cannot
be used as a justification for the employee's
6
Gross means absence of that diligence that an
ordinarily prudent man would use in his own
affairs.
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dismissal for that would penalize him twice for
the same offense.
• At most, it was explained, "these
collective infractions could be used as
supporting justification to a OTHER JUST CAUSES UNDER THE LABOR
subsequent similar offense."
GENERAL RULE: Immorality is not a just
ground to terminate employment.
EXCEPTION: When such immoral conduct is
prejudicial or detrimental to the interest of
the employer.
Employer has the prerogative to formulate
and implement company rules and
regulations or policies. Company rules and
regulations or policies are presumed valid
until amended or nullified.
• Until and unless the rules or orders are
declared to be illegal or improper by
competent authority, the employees
ignore or disobey them at their peril.
Forms of Neglect of Duties
(1) Habitual tardiness and absenteeism
(2) Abandonment
To constitute abandonment, 2 elements
must concur:
(1) The employee must have failed to report
for work or must have been absent without
valid or justifiable reason; and
(2) There must have been a clear intention on
part of the employee to sever the employer-
employee relationship manifested by some
overt act.
DUE PROCESS REQUIREMENTS
The twin notice requirement applies.
1. First notice directing the employee to
explain why s/he should not be
declared as having abandoned his
job; and
2. Second notice to inform him/her of
the employer’s decision to dismiss
him on the ground of abandonment.
Note:
Positions of trust includes: (1) managerial
positions; (2) supervisory positions; and (3)
fiduciary rank-and-file positions.
• In those managerial positions, mere
existence of basis for believing that
the employee has breached the trust
and confidence of the employer is
sufficient and does not require proof
beyond reasonable doubt.
CODE
1. Union officers who, with knowledge,
participate in an illegal strike (Art. 279)
2. An employee who commits an illegal
act during a strike (Art. 279)
3. Strikers who violate orders,
prohibitions, or injunctions issued by
the NLRC, the Secretary of Labor, or
the President (Art. 278)
4. Violation of union security clause in
the CBA (Art. 259)
PREGNANCY
• To constitute immorality, the
circumstances of each particular case
must be holistically considered and
evaluated in light of the prevailing
norms of conduct and applicable laws.
The determination of whether a conduct is
disgraceful or immoral involves a two-step
process:
(1) a consideration of the totality of the
circumstances surrounding the
conduct; and
(2) an assessment of the said
circumstances vis-à-vis the prevailing
norms of conduct, i.e., what the
society generally considers moral and
respectable.
Substantial evidence must be presented,
which would establish that a particular
conduct, viewed in light of the prevailing
norms of conduct, is considered disgraceful
or immoral.
• When the law speaks of immoral or,
necessarily, disgraceful conduct, it
pertains to public and secular
morality; it refers to those conducts
which are proscribed because they
are detrimental to conditions upon
which depend the existence and
progress of human society.
BONAFIDE OCCUPATIONAL
QUALIFICATION
2 factors necessitating its imposition:
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(1) the employment qualification is
reasonably related to the essential operation
of the job involved; and
(2) there is a factual basis for believing that all
or substantially all persons meeting the
qualification would be unable to properly
perform the duties of the job.
Important!
It would be the height of iniquity to view
pregnancy as a disability so permanent and
immutable that, it must entail the termination
of one's employment. It is clear to us that any
individual, regardless of gender, may be
subject to exigencies that limit the
performance of functions. However, we fail to
appreciate how pregnancy could be such an
impairing occurrence that it leaves no other
recourse but the complete termination of the
means through which a woman earns a living.
CRIMINAL CASE
• An employee’s guilt or innocence in a
criminal case is not determinative of
the existence of a just or authorized
cause for his dismissal. The pendency
of a criminal suit against an employee,
does not, by itself, sufficiently
establish a ground for an employer to
terminate the former.
• Criminal and labor proceedings are
distinct and separate from each
other. Each requires a different
quantum of proof, arising though they
are from the same set of facts or
circumstances.
o An employee’s acquittal in a
criminal case does not
automatically preclude a 1. The retrenchment must be reasonably
determination that he has been
guilty of acts inimical to the
employer’s interest resulting in
loss of trust and confidence.
o The ground for the dismissal of an
employee does not require proof
beyond reasonable doubt; as
noted earlier, the quantum of
proof required is merely
substantial evidence.
AUTHORIZED CAUSES (Arts. 298 and 299,
Labor Code) (DO 147-15)
(1) Installation of Labor-saving Devices
1. There must be introduction of
machinery, equipment, or other devices;
2. The introduction must be done in good
faith;
3. The purpose for such introduction must
be valid such as to save on cost, enhance
efficiency, and other justifiable economic
reasons;
4. 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 affected thereby; and
5. There must be fair and reasonable
criteria in selecting the employees to be
terminated.
(2) Redundancy
1. There must be superfluous positions or
services of employees;
2. The positions or services are in excess of
what is reasonably demanded by the actual
requirements of the enterprise to operate
in an economical and efficient manner;
3. There must be good faith in abolishing
redundant positions;
4. There must be fair and reasonable
criteria in selecting the employees to be
terminated; and
5. There must be an adequate proof of
redundancy such as but not limited to the
new staffing pattern, feasibility
studies/proposal, on the viability of the
newly created positions, job description
and approval by the management of the
restructuring.
(3) Retrenchment
necessary and likely to prevent business
losses;
2. The losses, if already incurred, are not
merely de minimis, but are substantial,
serious, actual and real, or if only expected,
are reasonably imminent;
3. The expected or actual losses must be
proved by sufficient and convincing
evidence.
4. The retrenchment must be in good faith
for the advance of its interest and not to
defeat or circumvent the employees’ right
to security of tenure; and
Billie Blanco (3E) | Ateneo Law 2022 | 64
 5. There must be fair and reasonable retrenchment; hence, there is no need
criteria in ascertaining who would be to qualify the term.
dismissed and who would be retained • Where the dismissal is for an
among the employees, such as status, authorized cause, the lack of statutory
efficiency, seniority, physical fitness, age, due process should not nullify the
and financial hardship for certain workers. dismissal, or render it illegal, or
(4) Closure and Cessation of Operations ineffectual.
1. There must be a decision to close or
cease operation of the enterprise by the RETRENCHMENT REDUNDANCY
management; The termination of Exists where the
2. The decision was made in good faith; employment services of an
and initiated by the employee are in
3. There is no other option available to the employer through excess of what is
employer except to close or cease no fault of the reasonably
operations. employee's and demanded by the
(5) Disease without prejudice to actual requirements
1. The employee must be suffering from the latter, resorted of the enterprise.
any disease; to by management
2. The continued employment of the during periods of A position is
employee is prohibited by law or business recession, redundant where it
prejudicial to his/her health as well as to the industrial is superfluous, and
health of his/her co-employees; and depression, or superfluity of a
3. There must be certification by a seasonal position or positions
competent public health authority that the fluctuations, or may be the outcome
disease is incurable within a period of 6 during lulls of a number of
months even with proper medical occasioned by lack factors.
treatment. of orders, shortage
of materials,
Note: Financial statements audited by conversion of the
independent external auditors constitute the plant for a new
normal method of proof of the profit and loss production
performance of a company. program or the
introduction of new
PROCEDURAL REQUIREMENT methods or more
Written notice to the employees and to the efficient machinery,
DOLE at least one month prior to the or of automation.
intended date of retrenchment.
In selecting employees to be dismissed, fair
Further, the requirement for notices to the and reasonable criteria must be used, such
employees and the DOLE is not only to give as but not limited to:
employees some time to prepare for the (1) less preferred status (e.g., temporary
eventual loss of their jobs and their employee)
corresponding income, look for other (2) efficiency
employment and ease the impact of the loss (3) seniority
of their jobs but also to give the DOLE the
opportunity to ascertain the verity of the SEPARATION PAY
alleged cause of termination. Separation pay is made an alternative relief in
• Compliance with the one-month lieu of reinstatement in certain circumstances,
notice rule is mandatory regardless of like: (a) when reinstatement can no longer be
whether the retrenchment is effected in view of the passage of a long
temporary or permanent. This is so period of time or because of the realities of
because Article 283 itself does not the situation; (b) reinstatement is inimical to
speak of temporary or permanent the employer’s interest; (c) reinstatement is no
longer feasible; (d) reinstatement does not

Billie Blanco (3E) | Ateneo Law 2022 | 65

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.
1 month or 1 1 month or ½
month for every month for every
year of service year of service
(1) Installation of (1) Retrenchment
labor-saving (2) Disease
devices (3) Closure (not due
(2) Redundancy to business losses)
DISEASE
For a dismissal on the ground of disease to be
considered valid, two requisites must
concur:
(1) the employee must be suffering from a
disease which cannot be cured within 6
months and his continued employment is
prohibited by law or prejudicial to his health
or to the health of his co-employees; and
(2) a certification to that effect must be issued
by a competent public health authority.
Note: Without the medical certificate, there
can be no authorized cause for the
employee’s dismissal. The absence of this
element thus renders the dismissal void and
illegal.
Important!
It does not contemplate a situation where it is
the employee who severs his or her
employment ties.
On Resignation
• Resignation is defined as the
voluntary act of an employee who
finds himself in a situation where he
believes that personal reasons cannot
be sacrificed in favor of the exigency
of the service and he has no other
choice but to disassociate himself
from his employment.
In the absence of any applicable agreement,
an employee must (1) retire when he is at
least 60 years of age and (2) serve at least 5
years in the company to entitle him/her to a
retirement benefit of at least 1/2 month salary
for every year of service, with a fraction of at
least 6 months being considered as one
whole year.
• These age and tenure requirements
are cumulative and non-compliance
with one negates the employees
entitlement to the retirement benefits
under Article 300 of the Labor Code
altogether.
• This Court has allowed grants of
separation pay to stand as "a
measure of social justice" where the
employee is validly dismissed for
causes other than serious misconduct
or those reflecting on his moral
character. However, there is no
provision in the Labor Code which
grants separation pay to voluntarily
resigning employees.
• The rule is that an employee who
voluntarily resigns from employment
is not entitled to separation pay,
except when it is stipulated in the
employment contract or CBA, or it is
sanctioned by established employer
practice or policy.
In fixing the amount of nominal damages
whose determination is addressed to our
sound discretion, the Court should take into
account several factors surrounding the case,
such as:
(1) the employer’s financial, medical, and/or
moral assistance to the sick employee;
(2) the flexibility and leeway that the employer
allowed the sick employee in performing his
duties while attending to his medical needs;
(3) the employer’s grant of other termination
benefits in favor of the employee; and
(4) whether there was a bona fide attempt on
the part of the employer to comply with the
twin-notice requirement as opposed to giving
no notice at all.
ILLEGAL STRIKE
*Recall:
CONSEQUENCES FOR ILLEGAL STRIKE
(1) Termination of employment
If Union Officer: If Union Member:
Mere participation
Billie Blanco (3E) | Ateneo Law 2022 | 66
 Commission of an
illegal act during
the strike.
BUT, if the strike is illegal because it was a
violation of an assumption order or
certification order, that already amounts to
a prohibited activity, even a mere union
who participated in the illegal strike may be
terminated.
agreement which imposes upon
employees the obligation to
acquire or retain union membership
as a condition affecting
employment.
EXCEPTION: Employees who are already
members of another union at the time of
the signing of the CBA.

Note: The termination of the employment In terminating the employment of an

is not automatic. It is management employee by enforcing the union security
prerogative. clause, the employer needs only to
determine and prove that:
(2) Fine and/or imprisonment for (1) the union security clause is applicable;
prohibited activities (2) the union is requesting for the
(3) Backwages (With respect to backwages, enforcement of the union security provision
the principle of a "fair day’s wage for a fair in the CBA; and
day’s labor" remains as the basic factor in (3) there is sufficient evidence to support the
determining the award thereof.) union's decision to expel the employee from
the union.
GENERAL RULE: If prohibited act was not
proven and there was illegal dismissal, TERMINATION BY THE EMPLOYEE (Art.
there are no backwages that can be 300, Labor Code)
awarded. • While it is normally the employer who
is possessed of the right to terminate
EXCEPTION: An employee is entitled to the EER, the Labor Code grants to an
backwages even if s/he participated in a employee the same right to terminate
strike and the following concur – the relationship he has with his/her
(1) Employee was willing, able, and employer any time s/he wishes and
ready to go to work but was illegally with or without just cause.
locked out, dismissed, suspended,
or separated from work by the VOLUNTARY INVOLUNTARY
employer; and RESIGNATION RESIGNATION /
(2) Strike was legal. CONSTRUCTIVE
DISMISSAL
Without just cause For cause
UNION SECURITY CLAUSE
The employee No notice is
*Recall:
resigning is necessary, s/he can
GENERAL RULE: Nothing in this Code or in
required to tender terminate the EER
any other law shall stop the parties from
or submit a written has soon as thereis
requiring membership in a recognize
notice of resignation evidence of acts.
collective bargaining agent as a condition
to the employer at
for employment.
least 1 month in
• A union security clause essentially advance.
requires membership in the union
so that an employee may retain Failure to serve
his/her job and the union’s notice will make
existence is assumed. him/her liable for
• Union security is a generic term damages.
which is applied to and No illegal dismissal Constructive
comprehends "closed shop," dismissal
"union shop," "maintenance of
membership" or any other form of
Billie Blanco (3E) | Ateneo Law 2022 | 67
VOLUNTARY RESIGNATION
The voluntary act of an employee who finds
himself/herself in a situation where he
believes that personal reasons cannot be
sacrificed in favor of the exigency of the
service so much so s/he has no other choice
but to dissociate himself from employment.
For resignation to be valid, the following must
concur:
(1) The intent to relinquish; and
(2) The overt act of relinquishment.
Note: To constitute valid resignation, it must
be unconditional and with an intent to sever
his/her employment.
• Resignation of a employee is
presumed voluntary, unless
established otherwise.
• Written acceptance of resignation is
necessary to make it binding and
effective.
A resignation made effective immediately or
short of the 30-day period violates the law
and may subject the resigning employee to
damages, if there exists no just cause to
warrant the immediate termination of the
employee.
• The 30-day prior written notice is for
the benefit of the employer, not the
resigning employee.
INVOLUNTARY RESIGNATION
The termination initiated by the employee
based on just causes is in the nature of
involuntary resignation.
An employee may put an end to the
employment of the relationship without need
of notice on the employer of the following just
causes:
1. Serious insult by the employer or
representative on the honor and
person of the employee;
2. Inhuman and unbearable treatment
accorded the employee by the
employer or presentative;
3. Commission of a crime or offense by
the employer or representative
against the person of the employee or
any of the immediate members of the
family; and
4. Other causes analogous to any of the
foregoing.
CONSTRUCTIVE DISMISSAL/PREVENTIVE
SUSPENSION
PREVENTIVE SUSPENSION
The employer may place the worker
concerned under preventive suspension if:
(1) his/her alleged violation is the subject
of an investigation and it concerns a
serious offense; and
(2) his/her continued employment poses
a serious and imminent threat to the
life or property of the employer or his
co-workers.
No preventive suspension shall last longer
than 30 days.
• The employer shall thereafter
reinstate the worker in his former or in
a substantially equivalent position or
the employer may extend the period
of suspension provided that during the
period of extension, he pays the wages
and other benefits due to the worker.
• In such case, the worker shall not be
bound to reimburse the amount paid
to him during the extension if the
employer decides, after completion of
the hearing, to dismiss the worker.
Note: The Rules are explicit that preventive
suspension is justified 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.
• Preventive suspension which lasts
beyond the maximum period allowed
by the Implementing Rules amounts
to constructive dismissal.
Important!
Preventive suspension is not a penalty.
• Preventive suspension by itself does
not signify that the company has
already adjudged the employee guilty
of the charges for which s/he was
asked to answer and explain.
CONSTRUCTIVE DISMISSAL
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Constructive dismissal is a cessation of work • The right of employees to security of
because: tenure does not give them vested
(1) Continued employment is rendered rights to their positions to the extent of
impossible, unreasonable or unlikely; depriving management of its
(2) When there is a demotion in rank or prerogative to change their
diminution in pay or both; or assignments or to transfer them.
(3) When a clear discrimination, Managerial prerogatives, however,
insensibility, or disdain by an are subject to limitations provided by
employer becomes unbearable to the law, collective bargaining
employee. agreements, and general principles of
fair play and justice.
The common character pervading • The employer bears the burden of
involuntary resignation or constructive showing that the transfer is not
dismissal is the act of quitting from the unreasonable, inconvenient or
employment which render the continued prejudicial to the employee; and does
employment impossible, unreasonable, or not involve a demotion in rank or a
unlikely. If there is no cessation of work, there diminution of his salaries, privileges
can be no constructive dismissal. and other benefits. Should the
• The test of constructive dismissal is employer fail to overcome this burden
whether a reasonable person in the of proof, the employee's transfer shall
employee's position would have felt be tantamount to constructive
compelled to give up his position dismissal.
under the circumstances.
• It is an act amounting to dismissal but On Probationary Employees
made to appear as if it were not. In fact, • A probationary employee, like a
the employee who is constructively regular employee, enjoys security of
dismissed may be allowed to keep on tenure.
coming to work. Constructive • The services of an employee who has
dismissal is therefore a dismissal in been engaged on probationary basis
disguise. The law recognizes and may be terminated for any of the
resolves this situation in favor of following: (1) a just or (2) an
employees in order to protect their authorized cause; and (3) when he
rights and interests from the coercive fails to qualify as a regular employee
acts of the employer. in accordance with reasonable
standards prescribed by the
ILLEGAL CONSTRUCTIVE employer.
DISMISSAL DISMISSAL
Shown by the act of Not readily shown Remember!
the employer in or indicated by any An illegally or constructively dismissed
openly and similar act of the employee is entitled to:
expressly seeking employer that (1) either reinstatement, if viable, or
and effecting the would openly and separation pay, if reinstatement is no longer
termination of the expressly show its viable; and
employment of the desire and intent to (2) backwages.
employee. terminate the
employment These two reliefs are separate and distinct
relationship. from each other and are awarded
conjunctively.
Note: Reliefs under Art. 294 of the Labor
Code are available to both the cases of illegal BACKWAGES
and constructive dismissal. Backwages are aimed to replenish the
income that was lost by reason of the unlawful
On Transfers dismissal.

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 • Together with the remedy of
reinstatement, they make the
dismissed employee whole who can
then look forward to continued
employment, thereby giving meaning
and substance to the constitutional
right of labor to security of tenure.
TEMPORARY SUSPENSION OF OPERATIONS
/ FLOATING STATUS
Article 286 of the Labor Code allows the
bona fide suspension of operations for a
period not exceeding 6 months. During the
suspension, an employee is not deemed
terminated.
• As a matter of fact, the employee is
entitled to be reinstated once the
employer resumes operations within
the 6-month period.
• Within 6 months, s/he must be
assigned to a specific or particular
client. A general return-to-work order
does not suffice.
• A bona fide suspension of business
operations for not more than 6
months does not terminate
employment. After 6 months, the
employee may be recalled to work or
be permanently laid off.
Note:
• "Off-detailing" is not equivalent to
dismissal, so long as such status does
not continue beyond a reasonable
time and that it is only when such a
"floating status" lasts for more than 6
months that the employee may be
considered to have been
constructively dismissed.
• A complaint for illegal dismissal filed
prior to the lapse of said six-month
and/or the actual dismissal of the
employee is generally considered as
prematurely filed.
On Why Security Guards are Put on Floating
Status
• 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 security services and
what will be beneficial to them dictate
the posting of the security guards.
• It is also relevant to mention that their
employers retain the management
prerogative to change their
assignments and postings, and to
decide to temporarily relieve them of
their assignments.
To validly terminate a security guard for lack
of service assignment for a continuous period
of six months the security agency must comply
with the provisions of Article 289 (previously
Art. 283) of the Labor Code, which mandates
that a written notice should be served on the
employee on temporary off-detail or floating
status and to the DOLE 1 month before the
intended date of termination.
*The period for employees’
contractors/subcontractors is 3 months (DO
174-17).
SUSPENSION
• An employer has free rein and enjoys
a wide latitude of discretion to
regulate all aspects of employment,
including the prerogative to instill
discipline on his employees and to
impose penalties, including dismissal,
if warranted, upon erring employees.
This is a management prerogative.
• The only limitation on the exercise of
management prerogative is that the
policies, rules, and regulations on
work-related activities of the
employees must always be fair and
reasonable, and the corresponding
penalties, when prescribed,
commensurate to the offense involved
and to the degree of the infraction.
• The employer has the burden of proof
in showing that disciplinary action was
made for lawful cause. The employer
must consider and show facts
adequate to support the conclusion
that an employee deserves to be
disciplined for his or her acts or
omissions.
Note: Suspension from work is prima facie a
deprivation of the right of security of tenure.
Thus, termination and suspension from work
Billie Blanco (3E) | Ateneo Law 2022 | 70
must be reasonable to meet the
constitutional requirement of due process of
law. It will be reasonable if it is based on just
or authorized causes enumerated in the
Labor Code.
• The employee is entitled to moral
damages when the employer acted (1)
in bad faith or fraud; (2) in a manner
oppressive to labor; or (3) in a manner
contrary to morals, good customs, or
public policy.
RETIREMENT (Art. 302, Labor Code)
Retirement is the result of the bilateral act of
the parties. It is a voluntary agreement
between the employer and the employee,
whereby the latter, after reaching a certain
age, agrees to sever his/her employment with
the former.
• The employers and employees are
free to agree and stipulate on the
retirement age, either in a CBA or
employment contract.
o It is only in the absence of such
agreement that the retirement age
shall be fixed by law, that is, in
accordance with the optional and
compulsory retirement age.
If Optional If Compulsory
Retirement: Retirement:
60 years. 65 years.
It is the employee The employee has
who exercises the no more option
option. except to retire.
Note: The optional and compulsory
retirement schemes come into play in the
absence of a retirement plan or agreement
setting forth other forms of optional or
compulsory retirement schemes.
Acceptance by the employees of an early
retirement age option must be explicit,
voluntary, free, and uncompelled.
• While an employer may unilaterally
retire an employee earlier than the
legally permissible ages under the
Labor Code, this prerogative must be
exercised pursuant to a mutually
instituted early retirement plan.
• In other words, only the
implementation and execution of the
option may be unilateral, but not the
adoption and institution of the
retirement plan containing such
option.
• For the option to be valid, the
retirement plan containing it must be
voluntarily assented to by the
employees or at least by a majority of
them through a bargaining
representative.
Under Art. 302, 5 years is the minimum years
of service that must be rendered by the
employee before s/he can avail of the
retirement benefits upon reaching the
optional or compulsory age.
• The parties cannot stipulate a period
higher than 5 years since this will run
counter to the intention of the law.
• This includes authorized absences and
vacations, regular holidays, and
mandatory fulfillment of a military or
civic duty.
In the absence of an retirement plan or
applicable agreement, an agreement must
retire when:
(1) when s/he is at least 60 years of age;
and
(2) serve at least 5 years in the company
to entitle him/her to the retirement
benefits provided under the law.
Retirement pay
Instances when Article 302 applies
This only applies in a situation where:
1. There is no CBA or other applicable
employment contracts providing for
retirement benefits for employees; or
2. There is a CBA or other applicable
employment contracts providing for
employees, but such benefits are
below the requirements set by law.
In the absence of a retirement plan or
agreement providing for retirement benefits,
an employee, upon reaching the optional or
compulsory retirement age, shall be entitled
to retirement pay equivalent to at least ½
month salary for every year of service, a
fraction of at least 6 months being considered
as 1 whole year.
Billie Blanco (3E) | Ateneo Law 2022 | 71
 • The one half month salary includes: notice requirement, the sanction to be
1. 15 days’ salary; imposed upon him should be TEMPERED
2. Cash equivalent of 5 days of because the dismissal process was, in effect,
service incentive leave; and initiated by an act imputable to the
3. 1/12 of the 13th month pay. employee; and
• The retirement benefits under the (2) if the dismissal is based on an authorized
Labor Code are separate and distinct cause (Art. 298) but the employer failed to
from those from the SSS and Pag-Iibig comply with the notice requirement, the
fund. sanction should be STIFFER because the
dismissal, process was initiated by the
Retirement of Underground Mine Workers employer's exercise of his management
Underground mine workers have a different prerogative.
retirement age:
If Optional If Compulsory JUST CAUSE AUTHORIZED
Retirement: Retirement: CAUSE
50 years. 60 years. EE is guilty of some EE did not commit
violation against ER any violation
It is the employee The employee has
who exercises the no more option EE initiated the Initiated by the ER’s
option. except to retire. dismissal process exercise of
(due to his/her acts) management
prerogative
S/he is entitled to the same under Art. 302 of
the Labor Code. Separation pay ot Separation pay
• To be entitled to retirement benefits, required required
the underground mine worker should
have rendered service at such for at In the determination of the amount of
least 5 years, in addition to the age nominal damages which is addressed to the
requirement. sound discretion of the court, several factors
are taken into account:
(1) the authorized cause invoked (whether it
CONSEQUENCES OF DISMISSAL was a retrenchment or a closure or cessation
SUBSTANTIAL PROCEDU- of operations or otherwise);
DUE RAL DUE (2) the number of employees to be awarded;
PROCESS PROCESS (3) the capacity of the employers to satisfy the
Yes Yes Valid awards, taking into account their prevailing
dismissal financial status as borne by the records;
No No Illegal (4) the employer's grant of other termination
dismissal benefits in favor of the employees; and
No Yes Illegal (5) whether there was a bona fide attempt to
dismissal comply with the notice requirements as
Yes No Valid opposed to giving no notice at all.
dismissal,
but GENERAL RULE: An employee dismissed for
employer just cause is not entitled to separation pay.
must pay EXCEPTION: Allowing the grant of separation
nominal pay is based on equity and social justice.
damages • The grant of separation pay or some
other financial assistance to an
RULES IN AWARDING NOMINAL employee dismissed for just causes is
DAMAGES IN AGABON AND JAKA based on equity.
PROCESSING • Severance compensation, or whatever
(1) If the dismissal is based on a just cause name it is called, on the ground of
(Art. 297) but the ER failed to comply with the social justice shall be allowed only

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 when the cause of the dismissal is
other than serious misconduct or for
causes which reflect adversely on the
employee's moral character.
RELIEFS UNDER THE LABOR CODE (Art.
294, Labor Code)
An illegally dismissed employee is entitled to
the following reliefs:
(1) Reinstatement without loss of seniority
rights and other privileges;
(2) Full backwages, inclusive of
allowances; and
(3) Other benefits or their monetary
equivalent.
Other reliefs awarded:
1. Separation pay in lieu of
reinstatement
2. Nominal damages
3. Moral and exemplary damages and
attorney’s fees
4. Financial assistance in cases where the
employee’s dismissal is declared legal
but there are circumstances justifying
the award, such as long years of
service, unblemished record of
service, compassionate justice, and
other considerations
5. Legal interest on separation pay,
backwages, and other monetary
award
Reinstatement and backwages are separate
and distinct from each other and are awarded
conjunctively.
• The award of 1 does not preclude or
bar the other.
• Backwages may be ordered without
ordered reinstatement and
reinstatement may be orderedwithout
the payment of backwages.
REINSTATEMENT
Reinstatement is the restoration to a state or
condition from which one has been removed
or separated.
• This means the same position prior to
dismissal or at least an equivalent
position, if the prior position is filled or
removed.
• It is a legal provision which is fair to
both labor and management because
while execution of the order cannot
be stayed by the posting of a bond by
the employer, the workers also cannot
demand their physical reinstatement if
the employer opts to reinstate them
only in the payroll.
Types of Reinstatement
Reinstatement may be: actual or payroll.
• The option of the employer to effect
actual or payroll reinstatement must
be exercised in good faith.
SEPARATION PAY IN LIEU OF
REINSTATEMENT
It is awarded where:
1. Doctrine of Strained Relations:
Where the continued relationship
between the employer and the
employee is no longer viable due to
strained relations
2. When the reinstatement proves
impossible, impracticable, not
feasible, or unwarranted for varied
reasons and thus hardly in the best
interest of the parties
3. When reinstatement is rendered moot
and academic due to supervening
events, such as where the
establishment is has closed or ceased
operations
Note: Separation pay is only proper where
reinstatement is no longer possible, viable, or
feasible. It is a substitute remedy.
Reinstatement and separation pay cannot be
ordered together.
This includes:
1. The amount equivalent to at least 1
month salary or 1 month salary for
every year of service, whichever is
higher, a faction of at least 6 months
being considered as 1 whole year
2. Allowances that the employee has
been receiving on a regular business
Period
Separation pay in lieu of reinstatement is
computed from the start of the employment
up to the time of termination. It should be
reckoned from the first day of employment
until the finality of the decision.
Billie Blanco (3E) | Ateneo Law 2022 | 73
Importantt! SEPARATION PAY BACKWAGES
Art. 229 of the Labor Code provides for IN LIEU OF
reinstatement whose dismissal is declared REINSTATEMENT
illegal by the Labor Arbiter. This form of Only awarded when Paid for
reinstatement is self-executory and must reinstatement is not compensation
be implemented even during the pendency possible which otherwise the
of the appeal that may be instituted by the employee should
employer. have earned had he
not been illegally
BACKWAGES dismissed
The reason for the payment of backwages is
equity. It represents the compensation that Length of service Actual period when
should have been earned by the employee he was unlawfully
but were lost because of the illegal dismissal. prevented from
• This includes: working
1. Salaries and wages at the time of
the illegal dismissal (General wage Oriented towards Involve the
increases are not included!) the immediate restoration of the
2. Allowances and other benefits future, the past income lost
regularly granted to and received transitional period
by the employee BUT must have the dismissed
accrued prior to dimissal employee must
• The computation of regular undergo
allowances and benefits as part of Substitute only for
backwages should be computed up reinstatement
to the date of reinstatement, or if
reinstatement be not possible, up to On Recomputation
the finality of the decision granting full • The recomputation is not violative of
backwages. the principle of immutability of a final
and executory judgment because it is
If reinstatement If separation pay in a natural consequence of an illegal
ordered: lieu of dismissal decision.
reinstatement: • Recomputation of the consequences
of illegal dismissal upon execution of
Full backwages Full backwages the decision does not constitute as an
should be should be alteration or amendment of the final
computed from the computed from the decision being implemented. The
time the time of illegal illegal dismissal ruling stands; only the
compensation was dismissal until the computation of monetary
withheld, i.e., illegal finality of the consequences of the dismissal is
dismissal up to decision. affected and this is not a violation of
reinstatement, the principle of immutability of final
whether actual or judgments.
payroll.
Remember!
REINSTATEMENT WITHOUT BACKWAGES Art. 229 of the Labor Code provides for
(Integrated Microelectronics v. Pionilla) reinstatement whose dismissal is declared
1. When the dismissal is too harsh a penalty illegal by the Labor Arbiter. This form of
2. When the employer acted in good faith reinstatement is self-executory and must
3. When there is no evidence that the be implemented even during the pendency
employer dismissed the employee of the appeal that may be instituted by the
employer.
• There is no need for writ of execution.

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BUT, note the Garcia doctrine (*PAL was
undergoing rehabilitation; hence, this may
apply only under similar circumstances or
analogous situation.):
• After the LA’s decision is reversed by a
higher tribunal, the employee may
be barred from collecting the
accrued wages, if it is shown that the
delay in enforcing the reinstatement
pending appeal was without the fault
on the part of the employer.
• The test here is twofold:
(1) there must be actual delay or the
fact that the order of reinstatement
pending appeal was not executed
period to its reversal; and
(2) the delay must not be due to the
employer’s unjustified act or omission.
• If the delay is due to the employer’s
unjustified refusal, the employer may
still be required to pay the salaries
notwithstanding the reversal of the
LA’s decision.
VIII. DISPUTE SETTLEMENT
Arts. 128-129, 220-232, 266, 273-277, 278 (g-
i), 303-304, 307(b), 305-307, Labor Code
Article 128. Visitorial and Enforcement
Power.
(a) The Secretary of Labor and
Employment or his duly authorized
representatives, including labor regulation
officers, shall have access to employer's
records and premises at any time of the day
or night whenever work is being
undertaken therein, and the right to copy
therefrom, to question any employee and
investigate any fact, condition or matter
which may be necessary to determine
violations or which may aid in the
enforcement of this Code and of any labor
law, wage order or rules and regulations
issued pursuant thereto.
(b) Notwithstanding the provisions of
Articles 129 and 217 of this Code to the
contrary, and in cases where the
relationship of employer-employee still
exists, the Secretary of Labor and
Employment or his duly authorized
representatives shall have the power to
issue compliance orders to give effect to
the labor standards provisions of this Code
and other labor legislation based on the
findings of labor employment and
enforcement officers or industrial safety
engineers made in the course of
inspection. The Secretary or his duly
authorized representatives shall issue writs
of execution to the appropriate authority
for the enforcement of their orders, except
in cases where the employer contests the
findings of the labor employment and
enforcement officer and raises issues
supported by documentary proofs which
were not considered in the course of
inspection.
An order issued by the duly authorized
representative of the Secretary of Labor
and Employment under this Article may be
appealed to the latter.
In case said order involves a monetary
award, an appeal by the employer may be
Billie Blanco (3E) | Ateneo Law 2022 | 75
perfected only upon the posting of a cash
or surety bond issued by a reputable
bonding company duly accredited by the
Secretary of Labor and Employment in the
amount equivalent to the monetary award
in the order appealed from.
(c) The Secretary of Labor and
Employment may likewise order stoppage
of work or suspension of operations of any
unit or department of an establishment
when non-compliance with the law or
implementing rules and regulations poses
grave and imminent danger to the health
and safety of workers in the workplace.
Within 24 hours, a hearing shall be
conducted to determine whether an order
for the stoppage of work or suspension of
operations shall be lifted or not.
In case the violation is attributable to the
fault of the employer, he shall pay the
employees concerned their salaries or
wages during the period of such stoppage
of work or suspension of operation.
(d) It shall be unlawful for any person or
entity to obstruct, impede, delay or
otherwise render ineffective the orders of
the Secretary of Labor and Employment or
his duly authorized representatives issued
pursuant to the authority granted under
this Article, and no inferior court or entity
shall issue temporary or permanent
injunction or restraining order or otherwise
assume jurisdiction over any case involving
the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty
of violation of, or abuse of authority, under
this Article shall, after appropriate
administrative investigation, be subject to
summary dismissal from the service.
(f) The Secretary of Labor and Employment
may, by appropriate regulations, require
employers to keep and maintain such
employment records as may be necessary
in aid of his visitorial and enforcement
powers under this Code.
Article 129. Recovery of Wages, Simply
Money Claims, and Other Benefits.
Upon complaint of any interested party, the
Regional Director of the Department of
Labor and Employment or any of the duly
authorized hearing officers of the
Department is empowered, through
summary proceeding and after due notice,
to hear and decide any matter involving the
recovery of wages and other monetary
claims and benefits, including legal
interest, owing to an employee or person
employed in domestic or household
service or househelper under this Code,
arising from employer employee relations:
Provided, That such complaint does not
include a claim for reinstatement:
Provided, further, That the aggregate
money claims of each employee or
househelper do not exceed P5,000.00.
The Regional Director or hearing officer
shall decide or resolve the complaint within
30 calendar days from the date of the filing
of the same.
Any sum thus recovered on behalf of any
employee or househelper pursuant to this
Article shall be held in a special deposit
account, and shall be paid, on order of the
Secretary of Labor and Employment or the
Regional Director directly to the employee
or househelper concerned.
Any such sum not paid to the employee or
househelper, because he cannot be
located after diligent and reasonable effort
to locate him within a period of 3 years,
shall be held as a special fund of the
Department of Labor and Employment to
be used exclusively for the amelioration
and benefit of workers.
Any decision or resolution of the Regional
Director or hearing officer pursuant to this
provision may be appealed on the same
grounds provided in Article 223 of this
Code, within 5 calendar days from receipt
of a copy of said decision or resolution, to
the National Labor Relations Commission
which shall resolve the appeal within 10
calendar days from the submission of the
Billie Blanco (3E) | Ateneo Law 2022 | 76
last pleading required or allowed under its
rules.
The Secretary of Labor and Employment
or his duly authorized representative may
supervise the payment of unpaid wages
and other monetary claims and benefits,
including legal interest, found owing to any
employee or house helper under this
Code.
Article 220. National Labor Relations
Commission.
There shall be a National Labor Relations
Commission which shall be attached to the
Department of Labor and Employment
solely for program and policy coordination,
composed of a Chairman and 23 members.
8 members each shall be chosen only from
among the nominees of the workers and
employers organizations, respectively. The
Chairman and the 7 remaining members
shall come from the public sector, with the
latter to be chosen preferably from among
the incumbent labor arbiters.
Upon assumption into office, the members
nominated by the workers and employers
organizations shall divest themselves of
any affiliation with or interest in the
federation or association to which they
belong.
The Commission may sit en banc or in 8
divisions, 160 each composed of 3
members. The Commission shall sit en
banc only for purposes of promulgating
rules and regulations governing the
hearing and disposition of cases before any
of its divisions and regional branches and
formulating policies affecting its
administration and operations. The
Commission shall exercise its adjudicatory
and all other powers, functions and duties
through its divisions. Of the 8 divisions, the
first, second, third, fourth, fifth and sixth
divisions shall handle cases coming from
the National Capital Region and other parts
of Luzon, and the seventh and eighth
divisions, cases from the Visayas and
Mindanao, respectively: Provided , That the
Commission sitting en banc may, on
temporary or emergency basis, allow cases
within the jurisdiction of any division to be
heard and decided by any other division
whose docket allows the additional
workload and such transfer will not expose
litigants to unnecessary additional
expense. The divisions of the Commission
shall have exclusive appellate jurisdiction
over cases within their respective territorial
jurisdiction.
The concurrence of 2 Commissioners of a
division shall be necessary for the
pronouncement of a judgment or
resolution. Whenever the required
membership in a division is not complete
and the concurrence of 2 Commissioners
to arrive at a judgment or resolution cannot
be obtained, the Chairman shall designate
such number of additional Commissioners
from the other divisions as may be
necessary.
The conclusions of a division on any case
submitted to it for decision shall be
reached in consultation before the case is
assigned to a member for the writing of the
opinion. It shall be mandatory for the
division to meet for purposes of the
consultation ordained therein. A
certification to this effect signed by the
Presiding Commissioner of the division
shall be issued, and a copy thereof
attached to the record of the case and
served upon the parties.
The Chairman shall be the Presiding
Commissioner of the first division, and the
7 other members from the public sector
shall be the Presiding Commissioners of
the second, third, fourth, fifth, sixth,
seventh and eighth divisions, respectively.
In case of the effective absence or
incapacity of the Chairman, the Presiding
Commissioner of the second division shall
be the Acting Chairman.
The Chairman, aided by the Executive
Clerk of the Commission, shall have
exclusive administrative supervision over
the Commission and its regional branches
and all its personnel, including the Labor
Arbiters.
Billie Blanco (3E) | Ateneo Law 2022 | 77
The Commission, when sitting en banc,
shall be assisted by the same Executive
Clerk, and, when acting thru its
Divisions, by said Executive Clerk for its 􀁁rst
division and 7 other Deputy Executive
Clerks for the second, third, fourth, 􀁁fth,
sixth, seventh and eighth Divisions,
respectively, in the performance of such
similar or equivalent functions and duties
as are discharged by the Clerk of Court and
Deputy Clerks of Court of the Court of
Appeals.
The Commission and its 8 divisions shall be
assisted by the Commission Attorneys in its
appellate and adjudicatory functions
whose term shall be coterminous with the
Commissioners with whom they are
assigned. The Commission Attorneys shall
be members of the Philippine Bar with at
least 1 year experience or exposure in the
field of labor-management relations. They
shall receive annual salaries and shall be
entitled to the same allowances and
benefits as those falling under Salary Grade
twenty-six (SG 26). There shall be as many
Commission Attorneys as may be
necessary for the effective and efficient
operation of the Commission but in no case
more than 3 assigned to the Office of the
Chairman and each Commissioner.
No Labor Arbiter shall be assigned to
perform the functions of the Commission
Attorney nor detailed to the office of any
Commissioner.
Article 221. Headquarters, Branches, and
Provincial Extension Units.
The Commission and its first, second, third,
fourth, fifth and sixth divisions shall have
their main offices in Metropolitan Manila,
and the seventh and eight divisions in the
cities of Cebu and Cagayan de Oro,
respectively. The Commission shall
establish as many regional branches as
there are regional offices of the
Department of Labor and Employment,
sub-regional branches or provincial
extension units. There shall be as many
Labor Arbiters as may be necessary for the
effective and efficient operation of the
Commission.
Article 222. Appointment and
Qualifications.
The Chairman and other Commissioners
shall be members of the Philippine Bar and
must have been engaged in the practice of
law in the Philippines for at least 15 years,
with at least 5 years experience or exposure
in the field of labor-management relations,
and shall preferably be residents of the
region where they shall hold office. The
Labor Arbiters shall likewise be members
of the Philippine Bar and must have been
engaged in the practice of law in the
Philippines for at least 10 years, with at least
5 years experience or exposure in the field
of labor-management relations.
The Chairman, the other Commissioners
and the Labor Arbiters shall hold office
during good behavior until they reach the
age of 65 years, unless sooner removed for
cause as provided by law or become
incapacitated to discharge the duties of
their office: Provided, however, That the
President of the Republic of the Philippines
may extend the services of the
Commissioners and Labor Arbiters up to
the maximum age of 70 years upon the
recommendation of the Commission en
banc.
The Chairman, the Division Presiding
Commissioners and other Commissioners
shall all be appointed by the President.
Appointment to any vacancy in a specific
division shall come only from the nominees
of the sector which nominated the
predecessor. The Labor Arbiters shall also
be appointed by the President, upon
recommendation of the Commission en
banc to a specific arbitration branch,
preferably in the region where they are
residents, and shall be subject to the Civil
Service Law, rules and regulations:
Provided , That the labor arbiters who are
presently holding office in the region
where they are residents shall be deemed
appointed thereat.
The Chairman of the Commission shall
appoint the staff and employees of the
Commission and its regional branches as
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the needs of the service may require,
subject to the Civil Service Law, rules and
regulations, and upgrade their current
salaries, benefits and other emoluments in
accordance with law.
Article 223. Salaries, Benefits, and
Emoluments.
The Chairman and members of the
Commission shall have the same rank,
receive an annual salary equivalent to, and
be entitled to the same allowances,
retirement and benefits as those of the
Presiding Justice and Associate Justices of
the Court of Appeals, respectively. Labor
Arbiters shall have the same rank, receive
an annual salary equivalent to and be
entitled to the same allowances, retirement
and other benefits and privileges as those
of the judges of the Regional Trial Courts.
In no case, however, shall the provision of
this Article result in the diminution of the
existing salaries, allowances and benefits of
the aforementioned officials.
Article 224. Jurisdiction of Labor Arbiters
and the Commission.
(a) Except as otherwise provided under this
Code, the Labor Arbiters shall have
original and exclusive jurisdiction to hear
and decide, within thirty 30 calendar days
after the submission of the case by the
parties for decision without extension, even
in the absence of stenographic notes, the
following cases involving all workers,
whether agricultural or non-agricultural:
(1) Unfair labor practice cases;
(2) Termination disputes;
(3) If accompanied with a claim for
reinstatement, those cases that workers
may file involving wages, rates of pay,
hours of work and other terms and
conditions of employment;
(4) Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
(5) Cases arising from any violation of
Article 264 of this Code, including
questions involving the legality of strikes
and lockouts; and
(6) Except claims for Employees
Compensation, Social Security, Medicare
167 and maternity benefits, all other claims
arising from employer-employee relations,
including those of persons in domestic or
household service, involving an amount
exceeding P5,000.00 regardless of
whether accompanied with a claim for
reinstatement.
(b) The Commission shall have exclusive
appellate jurisdiction over all cases
decided by Labor Arbiters.
(c) Cases arising from the interpretation or
implementation of collective bargaining
agreements and those arising from the
interpretation or enforcement of company
personnel policies shall be disposed of by
the Labor Arbiter by referring the same to
the grievance machinery and voluntary
arbitration as may be provided in said
agreements.
Article 225. Powers of the Commission.
The Commission shall have the power and
authority:
(a) To promulgate rules and regulations
governing the hearing and disposition of
cases before it and its regional branches, as
well as those pertaining to its internal
functions and such rules and regulations as
may be necessary to carry out the purposes
of this Code;
(b) To administer oaths, summon the
parties to a controversy, issue subpoenas
requiring the attendance and testimony of
witnesses or the production of such books,
papers, contracts, records, statement of
accounts, agreements, and others as may
be material to a just determination of the
matter under investigation, and to testify in
any investigation or hearing conducted in
pursuance of this Code;
(c) To conduct investigation for the
determination of a question, matter or
controversy within its jurisdiction, proceed
to hear and determine the disputes in the
absence of any party thereto who has been
summoned or served with notice to
appear, conduct its proceedings or any
part thereof in public or in private, adjourn
its hearings to any time and place, refer
technical matters or accounts to an expert
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and to accept his report as evidence after
hearing of the parties upon due notice,
direct parties to be joined in or excluded
from the proceedings, correct, amend, or
waive any error, defect or irregularity
whether in substance or in form, give all
such directions as it may deem necessary
or expedient in the determination of the
dispute before it, and dismiss any matter or
refrain from further hearing or from
determining the dispute or part thereof,
where it is trivial or where further
proceedings by the Commission are not
necessary or desirable; and
(d) To hold any person in contempt directly
or indirectly and impose appropriate
penalties therefor in accordance with law.
A person guilty of misbehavior in the
presence of or so near the Chairman or any
member of the Commission or any Labor
Arbiter as to obstruct or interrupt the
proceedings before the same, including
disrespect toward said officials, offensive
personalities toward others, or refusal to be
sworn, or to answer as a witness or to
subscribe an affidavit or deposition when
lawfully required to do so, may be
summarily adjudged in direct contempt by
said officials and punished by 􀁁ne not
exceeding P500 or imprisonment not
exceeding 5 days, or both, if it be the
Commission or a member thereof, or by a
fine not exceeding P100 or imprisonment
not exceeding 1 day, or both, if it be a
Labor Arbiter.
The person adjudged in direct contempt
by a Labor Arbiter may appeal to the
Commission and the execution of the
judgment shall be suspended pending the
resolution of the appeal upon the filing by
such person of a bond on condition that he
will abide by and perform the judgment of
the Commission should the appeal be
decided against him. Judgment of the
Commission on direct contempt is
immediately executory and unappealable.
Indirect contempt shall be dealt with by the
Commission or Labor Arbiter in the manner
prescribed under Rule 71 of the Revised
Rules of Court; and
(e) To enjoin or restrain any actual or
threatened commission of any or all
prohibited or unlawful acts or to require the
performance of a particular act in any labor
dispute which, if not restrained or
performed forthwith, may cause grave or
irreparable damage to any party or render
ineffectual any decision in favor of such
party: Provided, That no temporary or
permanent injunction in any case involving
or growing out of a labor dispute as
defined in this Code shall be issued except
after hearing the testimony of witnesses,
with opportunity for cross-examination, in
support of the allegations of a complaint
made under oath, and testimony in
opposition thereto, if offered, and only
after a finding of fact by the Commission, to
the effect:
(1) That prohibited or unlawful acts have
been threatened and will be committed
unless restrained, or have been committed
and will be continued unless restrained,
but no injunction or temporary restraining
order shall be issued on account of any
threat, prohibited or unlawful act, except
against the person or persons, association
or organization making the threat or
committing the prohibited or unlawful act
or actually authorizing or ratifying the same
after actual knowledge thereof;
(2) That substantial and irreparable injury to
complainant's property will follow;
(3) That as to each item of relief to be
granted, greater injury will be in􀁁icted
upon complainant by the
denial of relief than will be inflicted upon
defendants by the granting of relief;
(4) That complainant has no adequate
remedy at law; and
(5) That the public of􀁁cers charged with the
duty to protect complainant's property are
unable or unwilling to furnish adequate
protection.
Such hearing shall be held after due and
personal notice thereof has been served, in
such manner as the Commission shall
direct, to all known persons against whom
relief is sought, and also to the Chief
Executive and other public officials of the
province or city within which the unlawful
acts have been threatened or committed,
charged with the duty to protect
Billie Blanco (3E) | Ateneo Law 2022 | 80
complainant's property: Provided,
however, That if a complainant shall also
allege that, unless a temporary restraining
order shall be issued without notice, a
substantial and irreparable injury to
complainant's property will be
unavoidable, such a temporary restraining
order may be issued upon testimony under
oath, sufficient, if sustained, to justify the
Commission in issuing a temporary
injunction upon hearing after notice. Such
a temporary restraining order shall be
effective for no longer than 20 days and
shall become void at the expiration of said
20 days. No such temporary restraining
order or temporary injunction shall be
issued except on condition that
complainant shall first file an undertaking
with adequate security in an amount to be
fixed by the Commission sufficient to
recompense those enjoined for any loss,
expense or damage caused by the
improvident or erroneous issuance of such
order or injunction, including all
reasonable costs, together with a
reasonable attorney's fee, and expense of
defense against the order or against the
granting of any injunctive relief sought in
the same proceeding and subsequently
denied by the Commission.
The undertaking herein mentioned shall be
understood to constitute an agreement
entered into by the complainant and the
surety upon which an order may be
rendered in the same suit or proceeding
against said complainant and surety, upon
a hearing to assess damages, of which
hearing, complainant and surety shall have
reasonable notice, the said complainant
and surety submitting themselves to the
jurisdiction of the Commission for that
purpose. But nothing herein contained
shall deprive any party having a claim or
cause of action under or upon such
undertaking from electing to pursuehis
ordinary remedy by suit at law or in equity:
Provided, further, That the reception of
evidence for the application of a writ of
injunction may be delegated by the
Commission to any of its Labor Arbiters
who shall conduct such hearings in such
places as he may determine to be
accessible to the parties and their
witnesses and shall submit thereafter his
recommendation to the Commission.
Article 226. Ocular Inspection.
The Chairman, any Commissioner, Labor
Arbiter or their duly authorized
representatives, may, at any time during
working hours, conduct an ocular
inspection on any establishment, building,
ship or vessel, place or premises, including
any work, material, implement, machinery,
appliance or any object therein, and ask
any employee, laborer, or any person, as
the case may be, for any information or
data concerning any matter or question
relative to the object of the investigation.
Article 227. Technical Rules Not Binding
and Prior Resort to Amicable Settlement.
In any proceeding before the Commission
or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or
equity shall not be controlling and it is the
spirit and intention of this Code that the
Commission and its members and the
Labor Arbiters shall use every and all
reasonable means to ascertain the facts in
each case speedily and objectively, without
regard to technicalities of law or
procedure, all in the interest of due
process. In any proceeding before the
Commission or any Labor Arbiter, the
parties may be represented by legal
counsel but it shall be the duty of the
Chairman, any Presiding Commissioner or
Commissioner or any Labor Arbiter to
exercise complete control of the
proceedings at all stages.
Any provision of law to the contrary
notwithstanding, the Labor Arbiter shall
exert all efforts towards the amicable
settlement of a labor dispute within his
jurisdiction on or before the first hearing.
The same rule shall apply to the
Commission in the exercise of its original
jurisdiction.
Article 228. Appearance and Fees.
(a) Non-lawyers may appear before the
Commission or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or
members thereof.
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(b) No attorney's fees, negotiation fees or
similar charges of any kind arising from any
collective bargaining agreement shall be
imposed on any individual member of the
contracting union: Provided, However, that
attorney's fees may be charged against
union funds in an amount to be agreed
upon by the parties. Any contract,
agreement or arrangement of any sort to
the contrary shall be null and void.
Article 229. Appeal.
Decisions, awards, or orders of the Labor
Arbiter are final and executory unless
appealed to the Commission by any or both
parties within 10 calendar days from receipt
of such decisions, awards, or orders. Such
appeal may be entertained only on any of
the following grounds:
(a) If there is prima facie evidence of abuse
of discretion on the part of the Labor
Arbiter;
(b) If the decision, order or award was
secured through fraud or coercion,
including graft and corruption;
(c) If made purely on questions of law; and
(d) If serious errors in the findings of facts
are raised which would cause grave or
irreparable damage or injury to the
appellant.
In case of a judgment involving a monetary
award, an appeal by the employer may be
perfected only upon the posting of a cash
or surety bond issued by a reputable
bonding company duly accredited by the
Commission in the amount equivalent to
the monetary award in the judgment
appealed from.
In any event, the decision of the Labor
Arbiter reinstating a dismissed or
separated employee, insofar as the
reinstatement aspect is concerned, shall
immediately be executory, even pending
appeal.
The employee shall either be admitted
back to work under the same terms and
conditions prevailing prior to his dismissal
or separation or, at the option of the
employer, merely reinstated in the payroll.
The posting of a bond by the employer
shall not stay the execution for
reinstatement provided herein.
To discourage frivolous or dilatory appeals,
the Commission or the Labor Arbiter shall
impose reasonable penalty, including fines
or censures, upon the erring parties.
In all cases, the appellant shall furnish a
copy of the memorandum of appeal to the
other party who shall file an answer not
later than 10 calendar days from receipt
thereof.
The Commission shall decide all cases
within 20 calendar days from receipt of the
answer of the appellee.
The decision of the Commission shall be
final and executory after 10 calendar days
from receipt thereof by the parties.
Any law enforcement agency may be
deputized by the Secretary of Labor and
Employment or the Commission in the
enforcement of decisions, awards or
orders.
Article 230. Execution of Decisions,
Orders, or Awards.
(a) The Secretary of Labor and Employment
or any Regional Director, the Commission
or any Labor Arbiter, or Med-Arbiter or
Voluntary Arbitrator may, motu proprio or
on motion of any interested party, issue a
writ of execution on a judgment within 5
years from the date it becomes final and
executory, requiring a sheriff or a duly
deputized officer to execute or enforce
final decisions, orders or awards of the
Secretary of Labor and Employment or
Regional Director, the Commission, the
Labor Arbiter or Med-Arbiter, or Voluntary
Arbitrator or panel of Voluntary Arbitrators.
In any case, it shall be the duty of the
responsible officer to separately furnish
immediately the counsels of record and the
parties with copies of said decisions, orders
or awards. Failure to comply with the duty
prescribed herein shall subject such
responsible officer to appropriate
administrative sanctions.
(b) The Secretary of Labor and
Employment, and the Chairman of the
Billie Blanco (3E) | Ateneo Law 2022 | 82
Commission may designate special sheriffs
and take any measure under existing laws
to ensure compliance with their decisions,
orders or awards and those of Labor
Arbiters and Voluntary Arbitrators or panel
of Voluntary Arbitrators, including the
imposition of administrative fines which
shall not be less than P500.00 nor more
than P10,000.00.
Article 231. Contempt Powers of the
Secretary.
In the exercise of his powers under this
Code, the Secretary of Labor may hold any
person in direct or indirect contempt and
impose the appropriate penalties therefor.
Article 232. Bureau of Labor Relations
The Bureau of Labor Relations and the
Labor Relations Divisions in the regional
offices of the Department 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 conflicts, and all disputes,
grievances or problems arising from or
affecting 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.
The Bureau shall have 15 working days to
act on labor cases before it, subject to
extension by agreement of the parties.
Article 266. Injunction Prohibited.
No temporary or permanent injunction or
restraining order in any case involving or
growing out of labor disputes shall be
issued by any court or other entity, except
as otherwise provided in Articles 218 and
264 of this Code.
Article 273. Grievance Machinery and
Voluntary Arbitration.
The parties to a Collective Bargaining
Agreement 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:
(1) the interpretation or implementation of
their Collective Bargaining Agreement; and
(2) those arising from the interpretation or
enforcement of company personnel
policies.
All grievances submitted to the
grievance machinery which are not
settled within 7 calendar days from the
date of its submission shall automatically
be referred to voluntary arbitration
prescribed in the Collective Bargaining
Agreement.
For this purpose, parties to a Collective
Bargaining Agreement 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 qualified 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
Article 274. Jurisdiction of Voluntary
Arbitrators and Panel of Voluntary
Arbitrators.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have original
and exclusive jurisdiction to hear and
decide all unresolved grievances arising
from:
(1) The interpretation or implementation of
the Collective Bargaining Agreement; and
(2) Those arising from the interpretation or
enforcement of company personnel
policies referred to in the immediately
preceding article.
Accordingly, violations of a Collective
Bargaining Agreement, except those
which are gross in character, shall no
longer be treated as unfair labor practice
and shall be resolved as grievances under
the Collective Bargaining Agreement.
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For purposes of this article, gross
violations of Collective Bargaining
Agreement shall mean flagrant and/or
malicious refusal to comply with the
economic provisions of such agreement.
The Commission, its Regional Offices and
the Regional Directors of the Department
of Labor and Employment shall not
entertain disputes, grievances or matters
under the exclusive and original
jurisdiction of the Voluntary Arbitrator or
panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to
the Grievance Machinery or Voluntary
Arbitration provided in the Collective
Bargaining Agreement.
Article 275. Jurisdiction Over Other Labor
Disputes.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators, upon agreement of
the parties, shall also hear and decide all
other labor disputes including unfair labor
practices and bargaining deadlocks.
Article 276. Procedures.
The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have the power
to hold hearings, receive evidences and
take whatever action is necessary to resolve
the issue or issues subject of the dispute,
including efforts to effect a voluntary
settlement between parties.
All parties to the dispute shall be entitled to
attend the arbitration proceedings. The
attendance of any third party or the
exclusion of any witness from the
proceedings shall be determined by the
Voluntary Arbitrator or panel of Voluntary
arbitrators. Hearing may be adjourned for
cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall
be mandatory for the Voluntary Arbitrator
or panel of Voluntary Arbitrators to render
an award or decision within 20 calendar
days from the date of submission of the
dispute to voluntary arbitration.
The award or decision of the Voluntary
Arbitrator or panel of Voluntary Arbitrators
shall contain the facts and the law on which
it is based. It shall be final and executor
after 10 calendar days from receipt of the
copy of the award or decision by the
parties.
Upon motion of any interested party, the
Voluntary Arbitrator or panel of Voluntary
Arbitrators or the Labor Arbiter in the
region where the movant resides, in case of
the absence or incapacity of the Voluntary
Arbitrator or panel of Voluntary Arbitrators,
for any reason, may issue a writ of
execution requiring either the sheriff of the
Commission or regular courts or any public
official whom the parties may designate in
the submission agreement to execute the
final decision, order or award.
Article 277. Cost of Voluntary Arbitration
and Voluntary Arbitrator’s Fees.
The parties to a Collective Bargaining
Agreement shall provide therein a
proportionate sharing scheme on the cost
of voluntary arbitration including the
Voluntary Arbitrator's fee. The fixing of fee
of Voluntary Arbitrators, or panel of
Voluntary Arbitrators, whether shouldered
wholly by the parties or subsidized by the
Special Voluntary Arbitration Fund, shall
take into account the following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the Voluntary
Arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules
of Court.
Article 278. Strikes, Picketing, and
Lockouts.
XXX
(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 Secretary of Labor
and Employment may assume
jurisdiction over the dispute and decide
it or certify the same to the Commission
for compulsory arbitration. Such
assumption or certification shall have the
effect of automatically enjoining the
intended or impending strike or lockout as
Billie Blanco (3E) | Ateneo Law 2022 | 84
specified in the assumption or certification
order. If one has already taken place at the
time of assumption or certification, all
striking or locked out employees shall
immediately return to work and the
employer shall immediately resume
operations and readmit all workers under
the same terms and conditions prevailing
before the strike or lockout. The Secretary
of Labor and Employment or the
Commission may seek the assistance of law
enforcement agencies to ensure
compliance with this provision as well as
with such orders as he may issue to enforce
the same.
In line with the national concern for and the
highest respect accorded to the right of
patients to life and health, strikes and
lockouts in hospitals, clinics and similar
medical institutions shall, to every
extent possible, be avoided, and all
serious efforts, not only by labor and
management but government as well, be
exhausted to substantially minimize, if not
prevent, their adverse effects on such life
and health, through the exercise, however
legitimate, by labor of its right to strike and
by management to lockout. In labor
disputes adversely affecting 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 of medical
and other health personnel, whose
movement and services shall be
unhampered and unrestricted, as are
necessary to insure the proper and
adequate protection of the life and health
of its patients, most especially emergency
cases, for the duration of the strike or
lockout. In such cases, therefore, the
Secretary of Labor and Employment may
immediately assume, within 24 hours
from knowledge of the occurrence of
such a strike or lockout, jurisdiction over
the same or certify it to the Commission
for compulsory arbitration. For this
purpose, the contending parties are strictly
enjoined to comply with such orders,
prohibitions and/or injunctions as are
issued by the Secretary of Labor and
Employment or the Commission, under
pain of immediate disciplinary action,
including dismissal or loss of employment
status or payment by the locking-out
employer of backwages, damages and
other affirmative relief, even criminal
prosecution against either or both of them.
The foregoing notwithstanding, 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.
(h) Before or at any stage of the compulsory
arbitration process, the parties may opt to
submit their dispute to voluntary
arbitration.
(i) The Secretary of Labor and
Employment, the Commission or the
voluntary arbitrator or panel of
voluntary arbitrators shall decide or
resolve the dispute within 30 calendar days
from the date of the assumption of
jurisdiction or the certification or
submission of the dispute, as the case may
be. The decision of the President, the
Secretary of Labor and Employment, the
Commission or the voluntary arbitrator
shall be final and executory 10 calendar
days after receipt thereof by the parties.
Article 303. Penalties.
Except as otherwise provided in this Code,
or unless the acts complained of hinge on
a question of interpretation or
implementation of ambiguous provisions
of an existing collective bargaining
agreement, any violation of the provisions
of this Code declared to be unlawful or
penal in nature shall be punished with a
fine of not less than P1,000.00 nor more
than P10,000.00, or imprisonment of not
less than three months nor more than three
years, or both such fine and imprisonment
at the discretion of the court.
In addition to such penalty, any alien found
guilty shall be summarily deported upon
completion of service of sentence.
Billie Blanco (3E) | Ateneo Law 2022 | 85
Any provision of law to the contrary
notwithstanding, any criminal offense
punished in this Code shall be under the
concurrent jurisdiction of the Municipal or
City Courts and the Courts of First Instance.
Article 304. Who are Liable When
Committed by Other than Natural Person.
If the offense is committed by a
corporation, trust, firm, partnership,
association or any other entity, the penalty
shall be imposed upon the guilty officer or
officers of such corporation, trust, firm,
partnership, association or entity.
Article 305. Offenses.
Offenses penalized under this Code and
the rules and regulations issued pursuant
thereto shall prescribe in 3 years.
All unfair labor practice arising from Book V
shall be filed with the appropriate agency
within 1 year from accrual of such unfair
labor practice; otherwise, they shall be
forever barred.
Article 306. Money Claims.
All money claims arising from employer-
employee relations accruing during the
effectivity of this Code shall be filed within
3 years from the time the cause of action
accrued; otherwise they shall be forever
barred.
All money claims accruing prior to the
effectivity of this Code shall be filed with
the appropriate entities established under
this Code within 1 year from the date of
effectivity, and shall be processed or
determined in accordance with the
implementing rules and regulations of the
Code; otherwise, they shall be forever
barred.
Workmen's compensation claims accruing
prior to the effectivity of this Code and
during the period from November 1, 1974
up to December 31, 1974, shall be filed
with the appropriate regional offices of the
Department of Labor not later than March
31, 1975; otherwise, they shall forever be
barred. The claims shall be processed and
adjudicated in accordance with the law and
rules at the time their causes of action
accrued.
Article 307. Institution of Money Claims.
Money claims specified in the immediately
preceding Article shall be filed before the
appropriate entity independently of the
criminal action that may be instituted in the
proper courts.
Pending the final determination of the
merits of money claims filed with the
appropriate entity, no civil action arising
from the same cause of action shall be filed
with any court. This provision shall not
apply to employees' compensation cases
which shall be processed and determined
strictly in accordance with the pertinent
provisions of this Code.
Note: Executive Orders 126 (Reorganizing
Ministry of Labor and Employment) and 251
(Amending EO 126)
SINGLE-ENTRY APPROACH
Republic Act No. 10396 and DO 151-16
GENERAL RULE: All issues arising from labor
and employment shall be subjected to a 30-
day mandatory conciliation-mediation
services (or Single Entry Approach).
EXCEPTIONS:
1. Notice of strike/lockout or preventive
mediation cases with NCMB
2. Issues arising from the interpretation
or implementation of the CBA and
those arising from the interpretation
or enforcement of company
personnel policies which would be
processed through grievance
machinery
3. Application for exemption from Wage
Orders with NWPC
4. Issues of violations of permits,
licenses, ore registries issued by
DOLE and its attached agencies
5. Violations of the POEA Rules and
Regulations, namely:
(a) Serious offenses and offenses
penalized with the cancellation of
license;
(b) Disciplinary actiosn against
overseas workers/seafarers which
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 are considered serious offenses or
which carry the penalty of delisting
from POEA registry;
(c) Complaints initiated by the POEA;
(d) Complaints against an agency
whose license is revoked,
cancelled, expired, or otherwise
delisted; and
(e) Complaints categorized under the
POEA Rules and Regulations as not
subject to SeNA.
6. Issues on occupational safety and
health standards involving imminent
danger situation, dangerous
occurrences, and absence of PPE
PROCESS FLOW
Settlement agreement reached by the parties
shall be final and executory.
• It shall be binding on all DOLE offices
and attached agencies, except when
settlement agreement is established
to be contrary to law, morals, public
order, and public policy.
DOLE SECRETARY/REGIONAL DIRECTORS
DOLE REGIONAL DIRECTORS
They are the duly authorized representatives
of the DOLE Secretary, which grants them
both visitorial and enforcement powers. They
are in-charge of the administration and
enforcement of labor standards within their
respective territorial jurisdictions.
DOLE Regional Director jurisdiction
The DOLE Regional Directors have original
and exclusive jurisdiction over the following
cases:
1. Visitorial (inspection) cases under Art.
37 of the Labor Code
2. Visitorial and enforcement cases
under Art. 128 of the Labor Code
(labor standards)
3. Visitorial cases under 289, involving
examination of books and accounts of
independent unions, chartered locals,
and workers associations
4. Occupational safety and health
violations
5. Small money claims arising from labor
standards violations in amount not
exceeding P5k and not accompanied
with claim of reinstatement under Art.
129 of the Labor Code
6. Cases related to private recruitment
and planed agencies for local
employment
7. Union registration-related cases
Visitorial and Enforcement Powers
What is being inspected in the exercise of
visitorial and enforcement powers under Art.
128 is the employer-establishment and not
the employees.
• This involves the power:
1. To issue compliance orders to give
effect to labor standards
provisions of the Labor Code;
2. To issue writs of execution to the
appropriate authority for the
enforcement of their orders,
except in contested cases;
3. To order stoppage of work or
suspension of operations when
non-compliance with the law
poses grave and imminent danger
to the health and safety of the
workers in the workplace; and
4. To require employers to keep and
maintain such employment
records as may be necessary in aid
of such powers.
Note: The original jurisdiction over the
exercise of the visitorial and enforcement
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powers belongs to the DOLE Regional Jurisdiction over Claims not Exceeding
Directors. The role of the DOLE Secretory is P5k
confined to the exercise of his/her appellate Requisites:
jurisdiction over the decisions, orders, and To be valid exercise of jurisdiction over small
awards of the DOLE Regional Directors. money claims, the following must concur:
1. The claim is presented by an
Pursuant to their visitorial power, DOLE employee;
Regional Directors shall have: 2. The claimant, no longer being
1. Access to employer’s records and employment, does not seek
premises at any time of the day or reinstatement; and
night, whenever work is being 3. The aggregate money claim of the
undertaken therein; and employee does not exceed P5k.
2. The right:
a. To copy from said records; Note:
b. To question any employee and Employment relationship should no longer
investigate any fact, condition, exist at the time of the initiation of complaint
or matter which may be for monetary money claim under Art. 129.
necessary to determine
violations or which may aid in Also, the P5k threshold no longer applies to
the enforcement of the Labor kasambahays; DOLE Regional Director has
Code. jurisdiction over all their money claims
regardless of amount.
Requisites
For the valid exercise of the visitorial and How are Article 128 and 129 different?
enforcement powers provided for in Art. 128 The two articles are similar as they both
of the Labor Code, the following requisites involve labor law administration and
should concur: enforcement. But they differ in:
1. The EER exists at the time of the
Article 128 Article 129
initiation of the action;
2. The findings in question were made in Nature and Inspection of Adjudication
the course of inspection, regardless it subject of establishmen ,
was initiated by the complaint or proceeding ts and the through
routine inspection; and s issuance of summary
3. The employees have not initiated any orders to proceedings
claim or complaint under Art. 129 compel after notice
(Small money claims not exceeding compliance and hearing,
P5k). with labor of employee
standards, s'
Note: If the EER ceases to exist, it is the Labor wage orders claim for
Code that has jurisdiction. and other wages and
labor laws benefits.
Important! and
The DOLE Regional Director has the authority regulations.
to make a determination on whether a EER
exists. Such determination should be Enforcement
respected in order not to render nugatory the of labor Limits the
exist of his/her visitorial and enforcement legislation in proceedings
powers. Such finding of existence of EER is to general. to monetary
the exclusion of EER. It is subject to judicial
claims which
review but not review by NLRC (See Bombo
involve only
Radyo cases).
labor
standards
laws.

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 regular court, not DOLE or NLRC, has
Offshoots of Initiated by
jurisdiction over claim of an independent
inspections sworn
contractor to adjust contractual fee.
done by complaints
labor filed by any
DOLE Secretary
officers or interested
The DOLE Secretary has the following
safety party.
jurisdiction: (1) original and exclusive
engineers.
jurisdiction; and (2) appellate jurisdiction.
Workers Involves Applies to
involved employees present or Original and exclusive jurisdiction
still in the past 1. Petition to assume jurisdiction over
service. employees at labor dispute affecting industries
the time the indispensable to the national interest
complaint is 2. Petition to certify national interest
filed, cases to NLRC for compulsory
provided arbitration
there is no 3. Petition to suspend effects of
demand for termination
reinstatemen 4. Voluntary arbitration cases
t. 5. Contempt cases

Jurisdiction The law fixes The amount Appellate jurisdiction

al limits no maximum of money 1. DOLE Regional Directors (Visitorial
monetary claim per and enforcement powers exercised by
amount for claimant RD)
the exercise should not 2. Med-Arbiters (in CE Cases)
of exceed 3. BLR Director
enforcement P5,000 4. POEA
power.
BUREAU OF LABOR RELATIONS
Officers The person Article 129 is Original jurisdiction
designated exercising vested upon 1. Inter-union disputes;
the a regional 2. Intra-union-disputes; and
visitorial- director or 3. Other related labor relations disputes
enforcement any duly 4. Registration of federations and
power under authorized chartered locals
Article 128 is hearing 5. Examining accounts of federations
the Secretary officer of the 6. Registration and de-registration of
of Labor or Department multi-employer CBAs
any of his of Labor and
duly Employment Inter-union Intra-union
authorized . dispute dispute
representativ One occurring on Conflict within or
e who may or and between inside a labor union.
may not be a among unions.
regional
director. Med-Arbiter/DOLE Regional Office
Appeal Appeal to the Appeal to (1) Petition for certification election
Secretary of the NLRC. (2) Request for SEBA Certification (Filed
Labor. with RD, but if more than 1 LLO, referred to
an election officer for the conduct of CE)
Note: Articles 128 and 129 are operative only
in the context of employment relationship. A

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Appellate jurisdiction unorganized
1. Decisions of RD on union-related establishments;
matters
2. Decisions of Med-Arbiter in intra- 8. All monetary
union disputes claims of OFWs (RA
8042); and
VOLUNTARY LABOR ARBITER
ARBITER 9. Enforcement of
1. Grievances 1. Unfair labor compromise
arising from (1) the practice, including agreements when
implementation or gross violations of there is non-
interpretation of the CBA; compliance by any
CBAs; (2) of the parties.
interpretation or 2. Termination
enforcement of disputes; NATIONAL LABOR RELATIONS
company personnel COMMISSION
parties; and (3) any 3. Claims for wages, The NLRC exercises 2 kinds of jurisdiction: (1)
claim by either partyrates of pay, hours exclusive original jurisdiction; and (2)
that the other party of work, and other exclusive appellate jurisdiction.
is violating anyterms and
provisions of the conditions of Exclusive original jurisdiction
CBA or company employment, if 1. Petition for injunction in ordinary labor
personnel policies; accompanied with a disputes
claim for 2. Petition for injunction in strikes and
Note: Violations of reinstatement; lockouts
the CBA which are 3. Certified cases which refer to labor
simple or ordinary, 4. Claims for actual, disputes causing or likely to cause a
not gross in moral, exemplary, strike or lockout
character. and other forms of 4. Petition for extraordinary remedies
damages arising from orders or resolutions of Las
2. Wage distortion from employer-
issues arising from employee Exclusive Appellate Jurisdiction
the application of relationship; 1. All cases decided by Las
any wage orders in 2. Cases decided by the DOLE Regional
organized 5. Cases arising Directors involving small money
establishments; from prohibited claims under Art. 129
activities during 3. Contempt cases decided by the Las
3. Those arising strikes;
from interpretation Note: NLRC is not part of the compulsory
and implementation 6. All other claims arbitration process. It only reviews decisions
of the productivity arising from of the LA on the matter; it is not a trier of facts.
incentive program employer-
under RA 6971; and employee REMEDIES
relationship
4. Any other labor involving an amount ON APPEAL BOND
disputes upon exceeding P5k, • The filing of an appeal bond is
agreement by the except claims for necessary to perfect an appeal.
parties. ECC, SSS, Medicare, • This can pertain to a case decided by
and maternity an RD elevated to the DOLE Secretary
benefits; or a case by LA elevated to NLRC. As
long as you are appealing a monetary
7. Wage distortion award, you need to file an appeal
cases in bond.

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 • The appeal bond is equivalent to the
amount of the monetary award.
Can you ask for a reduction of the Bond?
YES. One can file a motion to reduce bond
and posting of at least 10% of the monetary
award.
• This is deemed as the reasonable
amount of the bond to be posed. This
motion + posting of 10% will toll
appeal period. It does not perfect the
appeal.
• The motion may be denied and
require the mover to post the entire
bond or the monetary award being
appealed.
• In case of a denial or requirement of
additional bonds, in McBurnie, the
appellant will have a fresh 10-day
period to post entire bond or the post
additional bond required.
(1) JUDICIAL REVIEW THROUGH RULE 65
PETITION FOR CERTIORARI
Only Mode to Elevate to the CA (Not an
appeal!
There is no appeal from decisions, orders, or
awards of (1) DOLE Secretary, (2) NLRC, and
(3) BLR Director in cases decided in appellate
jurisdiction.
The only mode by which a labor case decided
by them may reach CA is through a Rule 65.
• The reason for this is that after the
lapse of the 10-day period to file a MR,
the decisions become final and
executory and therefore,
inappealable.
• The only grounds that would justify
the elevation of labor cases is (1)
without or in excess of jurisdiction; or
(2) grave abuse of discretion
amounting to lack or excess of
jurisdiction.
Why CA? In St. Martin Funeral, the Supreme
Court ruled that in observance of the
principle of hierarchy of courts, there is a
need to file in CA.
• All labor cases should first past
through CA by way of a Rule 65 for
certiorari before they can reach the
Supreme Court through a Rule 45.
The only exception to this rule is decision,
orders, or awards of VAs which are
appealable to the CA by way of an ordinary
appeal or Rule 43 petition for review.
Note that, VAs exercise quasi-judicial powers.
• In the case of Guagua, from the
decision, you must file an MR within 10
days from the receipt of decision. If
the decision is still adverse after MR,
you can file a Rule 43 within 15 days
from the denial.
GENERAL RULE: Motion for reconsideration
is an indispensable requirement before filing
the petition.
EXCEPTIONS:
1. If the petition involves pure questions
of law
2. If the case involves matters of public
interest
3. In cases involves matters of urgency,
and the matters have been previously
exhaustively passed upon by a lower
tribunal.
PhilTranco doctrine
A motion for reconsideration should be filed
even though it is not required or even
prohibited by a government office.
• Certiorari inherently requires the filing
of a motion for reconsideration which
is the tangible representation of the
opportunity given to the office to
correct itself.
(2) JUDICIAL REVIEW OF DECISIONS OF
VAs THROUGH RULE 43 APPEAL
• As a general rule, decisions or awards
of VAs are final and executory after 10
calendar days from receipt of a copy.
• The findings of fact made by the VA
are subject to judicial review through
Rule 43 appeal on the following
grounds:
1. Lack or want of jurisdiction
2. Grave abuse of discretion
3. Violation of due process
4. Denial of substantial justice
5. Erroneous interpretation of the law
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(3) JUDICIAL REVIEW BY SUPREME COURT
THROUGH RULE 45 PETITION FOR
REVIEW ON CERTIORARI
Since the Court of Appeals has jurisdiction
over the petition for certiorari under Rule 65
that may be filed before it from the decisions
of the NLRC, the DOLE Secretary or the BLR
Directory, any errors committed by it would
be errors of judgement which are reviewable
by means of a timely appeal through Rule 45
petition.
• Rule 45 is clear that the decisions, final
orders, or resolutions of the CA may
be appealed to the Supreme Court,
which is a continuation of the appeal
process, meaning questions of law
only may be raised.
• The reglementary period to appeal is
15 days from notice of judgment or
denial of the motion for
reconsideration.
morals, rules, or it’s unconscionable or
violative of the rights of a third party,
then the waiver can be set aside.
If the ground for the termination is not
proven, the quitclaim is invalid.
ATTORNEY’S FEES
There are 2 kinds of attorney’s fees:
1. Compensation for legal services
2. Damages
Under Art. 111 of the Labor Code, the
attorney’s fees cannot exceed 10% of the
amount of wages awarded to the employee.
This pertains to damages. What this means is
that more than 10% can be charged – the
legal services can be higher than 10%.
- END OF MEMORY AID -

Note: Fresh period rule applies to Rule 43

quasi-judicial agencies and Rule 45 appeals
by certiorari to the Supreme Court (Neypes).

UPDATING OF MONETARY AWARDS

This is not a violation of the principle of
immunity of judgements. This is because the
illegality of the dismissal remains. What is
only affected is the monetary consequence of
the illegal dismissal (See Nacar case).
• Recomputation really just affects the
monetary consequences of the illegal
dismissal judgment. The illegality of
the dismissal remains.

PRESCRIPTIVE PERIODS
Money claims 3 years
Illegal dismissal 4 years
and money claims
Withdrawal of Counted from
action accrual of the cause
of action

QUITCLAIMS IN LABOR CASES

• This does not constitute estoppel to
file an illegal dismissal case.
• Note that in, the Philippine Carpet
case, the Court ruled that waiver may
only be set aside upon proof that the
employer used deceit or fraud to have
the employee sign the waiver. Further,
if the waiver is against public policy,

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