Beda Mem Aid Labor

San Beda College of Law
MEMORY AID
PRELIMINARY TITLE
LABOR exertion by human beings of
physical or mental efforts, or both,
towards the production of goods and
services. Labor also means that sector or
groups in a society which derives its
livelihood chiefly from rendition of work
or services in exchange for compensation
under managerial direction. (Mendoza:
2001)
CHAPTER I
GENERAL PROVISIONS
ART. 1. NAME OF DECREE
Labor Code of the Philippines
ART. 2. DATE OF EFFECTIVITY
The Labor Code took effect on
November 1, 1974 (six months after its
promulgation on May 1,1974).
LABOR LEGISLATION - consists of
statutes, regulations and jurisprudence
governing the relations between capital
and labor, by providing for certain
standards of terms and conditions of
employment or providing a legal
framework within which these terms and
conditions
and
the
employment
relationship may be negotiated, adjusted
and administered.
- body of statutes, rules and
doctrines that defines State policies on
labor and employment, and governs the
rights and duties of workers and
employers
respecting
terms
and
conditions of employment by prescribing
certain standards therefore, or by
establishing a legal framework within
which better terms and conditions of
work could be obtained through
collective bargaining or other concerted
activity.
LABOR STANDARDS - the minimum
requirements prescribed by existing
laws, rules and regulations relating
to :
LABOR LAW COMMITTEE
IN
LABOR LAW
1. wages
2. hours of work
3. cost-of-living allowance
4. other monetary and welfare
benefits, including occupational
safety, and health standards.
(Maternity Childrens Hospital vs
Sec. of Labor G.R. No. 78909.
June 30,1989)
LABOR RELATIONS LAW that which
defines the status, rights, and duties and
the institutional mechanisms that govern
the individual and collective interactions
of employers, employees or their
representatives.
-the law which seeks to stabilize
the relation between employers and
employees, to forestall and thresh out
their
differences
through
the
encouragement of collective bargaining
and the settlement of labor disputes
through conciliation, mediation, and
arbitration.
LABOR LAW
1. directly affects
employment (e.g.
wages)
2. designed to meet
the daily needs of
workers
3. covers
employment for
profit or gain
4. affects work of
employee
SOCIAL
LEGISLATION
1. governs the effects
of employment (e.g.
compensation
for injuries)
2. involves long
range benefits
3. covers
employment, profit
and non-profit
4. affects life
of employee
OVERVIEW OF THE LABOR CODE

BOOK ONE On Pre-employment, sets
the period and groundwork to attain a
state of full employment by making the
full possible use of its manpower.
BOOK TWO On Human Resource
Development, emphasizes the need of
developing human resources.
BOOK THREE On Conditions of
Employment, deals with the mechanism
to protect or secure the workers who
may be employed especially after
appropriate qualification and training.
CHAIRPERSON: Francis Benedict Rotutar ASSISTANT CHAIRPERSON: Juanito Lim, Jr. SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws) EDP: Flora Sherry Basquiez
ASST. EDPS: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
2005 CENTRALIZED BAR OPERATIONS
BOOK FOUR On Health, Safety and

Social Welfare Benefits, deals with
protection and promotion of the health
and safety of the worker.
BOOK FIVE On Labor Relations, spells
out the terms and conditions of
employment.
BOOK SIX On Post Employment,
provides for security of tenure and
conditions under which security of
tenure and conditions under which a
worker may be dismissed.
BOOK SEVEN On Transitory and Final
Provisions, provides for sanctions for
violation or non-compliance with the
Code; it also provides for procedure and
prescription for the enforcement of
rights under the Code.
BASIC RIGHTS OF WORKERS AS
GUARANTEED
BY
THE
CONSTITUTION: (Art.13, Sec.3, 2nd
par. Consti.)
(POWEERSC)
1. Right to Participate in policy &
decision-making
processes
affecting
their
rights
and
benefits as may be provided by
law
2. Right to Organize themselves
3. Right to Work under humane
conditions
4. Right to Engage in peaceful
concerted activities including
strike in accordance with law
5. Right to Enjoy security of tenure
6. Right to Receive a living wage
7. Right to Share in the fruits of
production
8. Right to Conduct collective
bargaining or negotiation with
management
CONSTITUTIONAL PROVISIONS THAT

GUARANTEE THE RIGHTS OF WORKERS,
PROTECT THEIR SPECIAL INTEREST, OR
PROMOTE THEIR GENERAL WEFARE:
1. Protection to labor
Article XIII)
(Sec. 3,
2. Right of workers to form unions

(Sec.3, Article XIII, 2nd par., Bill
of Rights)
3. Principle of shared responsibility
(3rd par., Article XIII)
4. Right of employers to profit (last
par., Article XIII, section 3)
5. Employment of women workers
(Sec. 14, Article XIII)
RELATED LAWS:
1. CIVIL CODE:
Art. 1700. The relations between
capital and labor are not merely
contractual.
They
are
so
impressed with public interest
that labor contracts must yield
to the common good. Therefore,
such contracts are subject to the
special laws on labor unions,
collective bargaining, strikes and
lockouts, closed shop, wages,
working conditions, hours of
labor and similar subjects.
Art. 1701. Neither capital nor

labor shall act oppressively
against the other, or impair the
interest or convenience of the
public.
Art. 1703. No contract which

practically
amounts
to
involuntary servitude, under any
guise whatsoever, shall be valid.
2. REVISED PENAL CODE:

- Art. 289. Formation, maintenance
and prohibition of combination of
capital or labor through violence or
threats. The penalty of arresto
mayor and a fine not exceeding 300
pesos shall be imposed upon any
person who, for the purpose of
organizing,
maintaining
or
preventing coalitions or capital or
labor, strike of laborers or lock-out
of employees, shall employ violence
or threats in such a degree as to
compel or force the laborers or
employers in the free and legal
exercise of their industry or work, if
the act shall not constitute a more
2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

CHAIRPERSONS
Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), Yolanda
Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VCEDP), Anna Margarita Eres (VC-Logistics) Jonathan
Mangundayao (Political Law), Francis Benedict Rotutar (Labor Law), Romuald Padilla (Civil Law),
Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (Commercial
Law), Jinky Ann Uy (Remedial Law), Jackie Lou Bautista (Legal Ethics)

MEMORY AID
serious offense in accordance with
the provisions of this Code.
3. SPECIAL LAWS:
SSS Law
GSIS Law
Comprehensive Agrarian Reform
Law
13th Month Pay Law
Magna Carta for Public Health
Workers
Migrant Workers Act of 1995
National Health Insurance Act
AIM, REASON & JUSTIFICATION OF
LABOR LAWS:
- raison detre : SOCIAL JUSTICE
the humanization of laws and the
equalization of social and economic
forces by the State so that justice in
its rational and objectively secular
conception may at least be
proximated. Social justice means the
promotion of the welfare of all
people, the adoption by the
government of measures calculated
to ensure economic stability of all
the component elements of the
society through the maintenance of
proper
economic and social
equilibrium in the interrelations of
the members of the community,
constitutionally,
through
the
adoption
of
measures
legally
justifiable or extra-constitutionally,
through the exercise of powers
underlying the existence of all
governments, on the time honored
principle of salus populi suprema
est lex (Calalang vs. Williams)
BASIS OR FOUNDATION OF LABOR
LAWS: POLICE POWER
- "States authority to enact
legislation that may interfere with
personal liberty or property in order to
promote the general welfare." (PASEI vs.
Drilon, G.R.No.L-81958. June 30,1988)
ART. 3. DECLARATION OF BASIC
POLICY
The State shall: [PEARA]

a. Promote full employment,
LABOR LAW COMMITTEE
IN
LABOR LAW
b. Ensure
equal
work
opportunities regardless of
sex, age or creed,
c. Afford protection to labor,
d.
Regulate
the
relations
between workers and employers,
e. Assure the right of workers
to: [JSSC]
1.Just and humane conditions of
work
2. Self-organization
3. Security of tenure
4. Collective bargaining
ART. 4. CONSTRUCTION IN FAVOR OF
LABOR
The rule is applicable if there is a
doubt as to the meaning of the legal and
contractual provision. If the provision is
clear and unambiguous, it must be
applied in accordance with its express
terms.
In interpreting the Constitutions
protection to labor and social justice
provisions and the labor laws and rules
and regulations implementing the
Constitutional mandate, the SC adopts
the liberal approach which favors the
exercise of labor rights.(Meralco vs.
NLRC, G.R.No. 78763. Jul.12, 1989)
While the Constitution is committed
to the policy of social justice and the
protection of the working class, it should
not be supposed that every labor dispute
shall be automatically resolved in favor
of labor. It is mandated that there be
equal protection and respect not only
the laborers side but also the
management and/or employers side.
The law, in protecting the rights of the
laborer, authorizes neither oppression
nor self-destruction of the employer
(Colgate Palmolive Philippines vs. Ople,
G.R.No. 73681. June 30,1988)
REASONS FOR AFFORDING
PROTECTION TO EMPLOYEES
GREATER
1. There is greater supply than

demand for labor.
2. The need for employment by

labor comes from vital, and even
desperate, necessity.
MANAGEMENT RIGHTS: [CPST ]
C
P
S
T
Right to conduct business

Right to prescribe rules
Right to select and hire employees
Right to transfer or discharge
employees
ART.5. RULES AND REGULATIONS

The rules and regulations issued by the
DOLE shall become effective 15 days
after announcement of their adoption in
newspapers of general circulation.
DELEGATED LEGISLATIVE POWER - It is
true that police power is the domain of
the legislature, but it does not mean
that such an authority may not be
lawfully delegated. The Labor Code
itself vests the Department of Labor and
Employment with rule-making powers in
the enforcement whereof. (PASEI vs
Drilon)
ART. 6. APPLICABILITY
The LC applies to all workers, whether
agricultural
or
non-agricultural,
including employees in a government
corporation incorporated under the
Corporation Code.
- government corporations
created by special (original) charter are
subject to the Civil Service Law, while
those corporations under the general
corporation law are not within the
coverage of the Civil Service Law, but is
subject to the provisions of Labor Code.
- It is important to distinguish if
the employee is employed in a GOCC
with an original charter or not. (see
discussion in Art. 244)
AGRICULTURAL OR FARM WORKER one employed in an agricultural or farm
enterprise and assigned to perform tasks
which are directly related to the
agricultural activities of the employer,
such as cultivation and tillage of the soil,
dairying, growing and harvesting of any

agricultural
and
horticultural
commodities, the raising of livestock or
poultry, and any activity performed by a
farmer as an incident to or in
conjunction
with
such
farming
operations.
- There may be, in one
employer, both agricultural as well as
industrial workers.
Agricultural workers receive salaries

lower than the prescribed minimum
for industrial and commercial
employees.
CHAPTER II
EMANCIPATION OF TENANTS
(amended by RA 6657, CARL)
ARTS. 7-11.
Constitutional bases :
Art.III, Sec.21.
The
State
shall
promote
comprehensive rural development and
agrarian reform.
Art.XIII, Sec.4
The State shall, by law, undertake
an agrarian reform program founded on
the right of farmers and regular
farmworkers, who are landless, to own
directly or collectively the lands they
till or, in the case of other farmworkers,
to receive a just share of the fruits
thereof. To this end, the State shall
encourage and undertake the just
distribution of all agricultural lands,
subject to such priorities and reasonable
retention limits as the Congress may
prescribe,
taking
into
account
ecological, developmental, or equity
considerations, and subject to the
payment of just compensation. In
determining retention limits, the State
shall respect the rights of small
landowners. The State shall further
provide incentives for voluntary landsharing.
- Share tenancy has been abolished
placing in its stead a leasehold system.

CHAIRPERSONS

MEMORY AID
- Under Art. 8, the land covered

by operation land transfer must be
private agricultural land, tenanted,
primarily devoted to rice and/or corn,
and more than seven hectares in area.
PRESENT RETENTION LIMITS:
- 5 hectares per landowner and 3
hectares per child provided the child
is:
at least 15 years of age; and
actually/personally tilling the
land or directly managing the
farm
LANDS NOT COVERED:
livestock and poultry farms
those covered by homestead
patents
residential subdivisions
EMANCIPATION PATENT - the title issued
to the tenant upon compliance with all
the requirements of the government. It
represents the full emancipation of the
tenant from the bondage of the soil.
PROHIBITION AGAINST ALIENATION IS
INTENDED TO:
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
LABOR LAW COMMITTEE
LABOR LAW
ART. 13. DEFINITIONS

(a) WORKER - any member of the labor
force, whether employed or unemployed
(b) RECRUITMENT AND PLACEMENT any act of (CEC-TUHP) canvassing,
enlisting,
contracting,
transporting,
utilizing, hiring or procuring workers,
and includes (RCPA) referrals, contract
services, promising or advertising for
employment, locally or abroad, whether
for profit or not; PROVIDED, that any
person or entity which, in any manner,
offers or promises for a fee employment
to two or more persons shall be deemed
engaged in recruitment and placement.
- The number of persons dealt with is not
an essential ingredient of the act of
recruitment and placement of workers.
The
proviso
merely
creates
a
presumption.(People vs Panis, G.R. No.
L-58674-77. July 11, 1986)
ELEMENTS
RECRUITMENT
ACTIVITIES:
OF
&
ENGAGING
IN
PLACEMENT
These conditions must concur to

constitute recruitment & placement:
1. preserve the landholding in the

hands of the owner-tiller and his
heirs;
2. minimize land speculation; and
3. prevent a return to the regime of
land ownership by a few.
BOOK ONE
IN
1. The complainant had a distinct

impression that the accused had the
power to send complainant abroad for
work; and
2. The complainant was convinced to
part with his money in order to be so
employed.
(People vs. Goce,
G.R.No.113161. Aug. 29, 1995)
ART. 16. PRIVATE RECRUITMENT
ENTITIES AUTHORIZED TO RECRUIT:
1.
2.
3.
4.
Public employment offices

Private recruitment entities
Private employment agencies
Shipping or manning agents or
representatives
5. POEA
6. Construction
contractors
if
authorized by the DOLE and the
Construction Industry Authority
7. Members of the diplomatic corps

(but hiring must also go through
POEA)
8. Other persons or entities as may be
authorized by the DOLE Secretary.
ART. 17. (POEA)
The POEA has taken over the functions
of the OEDB & NSB.
PRINCIPAL FUNCTIONS OF THE POEA:
(FPD )
1. Formulation, implementation, &
monitoring
of
overseas
employment of Filipino workers
2. Protection of their rights to fair
and
equitable
employment
practices
3. Deployment of Filipino workers
through
government-togovernment hiring
REGULATORY FUNCTION OF THE
POEA:
regulates
private
sector
participation in the recruitment and
overseas placement of workers through
its licensing and registration system.
ADJUDICATORY FUNCTIONS OF THE
POEA:
1.All cases which are administrative
in character, involving or arising
out of violations of rules and
regulations relating to licensing
and registration of recruitment
and employment agencies or
entities; and
2.Disciplinary action cases and other
special
cases
which
are
administrative
in
character,
involving employers, principals,
contracting partners and filipino
migrant workers.
GROUNDS FOR DISCIPLINARY ACTION
(Under the MWA of 1995, RA 8042):
1. Commission of a felony punishable
by the laws of the Philippines or by
the host country;
2. Drug addiction or possession or
trafficking of prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the

laws of the host country prohibit
intoxicating drinks;
5. Gambling, especially where the laws
of the host country prohibit the
same;
6. Initiating or joining a strike or work
stoppage where the laws of the host
country prohibit strikes or similar
actions;
7. Creating trouble at the worksite or
in the vessel;
8. Embezzlement of company funds or
of money and properties of a fellow
worker entrusted for delivery to kins
or relatives in the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company
property;
12. Gunrunning or possession of deadly
weapons;
13. Unjust refusal to depart for the
worksite after all employment and
travel documents have been duly
approved
by
the
appropriate
government agencies; and
14. Violation of the laws and sacred
practices of the host country and
unjustified breach of government
approved employment contract by a
worker.
WHERE TO FILE DISCIPLINARY ACTION
CASES
- Rule VII of Book VII of the
POEA Rules provides that complaints for
breach of discipline against a contract
worker shall be filed with the
Adjudication Office or Regional Office of
the POEA, as the case may be. The POEA
may motu propio undertake disciplinary
action against a worker for breach of
discipline. It shall establish a system of
watching and blacklisting of overseas
contract workers.
JURISDICTION TRANSFERRED TO THE
LABOR ARBITERS OF THE NLRC (Sec.
10, RA 8042):
-claims arising out of an
employer-employee relationship or by
virtue of any law or contract involving
Filipino workers for overseas deployment

CHAIRPERSONS

MEMORY AID
including claims for actual, moral,
exemplary and other forms of damages.
VENUE: Money claims or claims for
damages should be filed before the
Regional Arbitration branch of the NLRC
where the complainant resides or where
the
principal
office
of
the
respondent/employer is situated, at the
option of the complainant.
COMPROMISE AGREEMENT: Consistent
with the policy encouraging amicable
settlement of labor disputes, Sec 10, RA
8042 allows resolution by compromise of
cases filed with the NLRC.
RULE ON PREMATURE TERMINATION
OF CONTRACT
1. RULE: Termination before the
agreed termination date based not on
lawful or valid ground, employer will pay
employee
corresponding
to
the
unexpired portion of the employment
contract (Tierra Intl Construction Corp.
vs. NLRC)
2. HOWEVER, under R.A. 8042,
Cut-off date: JULY 15, 1995
- illegally dismissed employees are
entitled to full reimbursement of his
placement fee with interest at 12% per
annum PLUS salary for unexpired portion
of his employment OR for three (3)
months for every year of the unexpired
term whichever is less.
- However, SC clarified in the case
of Marsaman Manning Agency vs. NLRC
(G.R.No. 127195. Aug.25, 1999) that A
plain reading of section 10 clearly
reveals that the choice of which amount
to award an illegally dismissed OCW, i.e.
whether his salaries for the unexpired
portion of his employment contract or 3
months salary for every year of the
unexpired term whichever is less, comes
into play ONLY when the employment
contract concerned has a term of at
least 1 year or more. This is evident
from the words for every year of the
unexpired term which follows the
salaries x x x for three months.
LABOR LAW COMMITTEE
IN
LABOR LAW
- Under Section 10, RA 8042, the

claim for unpaid salaries of overseas
workers should be whichever is less
between salaries for unexpired portion
of the contract or 3 months for every
year of the remaining unexpired portion
of the contract (in case contract is one
year or more) (Skippers Pacific, Inc. Vs.
Mira, et al. NOV. 21, 2002).
- The basis for the award of
backwages is the parties employment
contract, stipulating the wages and
benefits.
N.B.: SIGNING A SATISFACTION
RECEIPT IS NOT A WAIVER.
Any
agreement to receive less compensation
that what the worker is entitled to
recover is INVALID (MR Yard Crew Union
vs. PNR).
RULE ON SIDE AGREEMENTS
An agreement that diminishes the
employees pay and benefits as
contained in a POEA approved contract
is void, unless such subsequent
agreement is approved by POEA (Chavez
vs. Bonto-Perez; G.R.No. 109808;
Mar.1,1995).
MINIMUM
REQUIREMENTS
OR
EMPLOYMENT
CONDITIONS
OF
OVERSEAS
EMPLOYMENT
PRESCRIBED BY POEA :
(GFF-JW-RAF)
1. Guaranteed
2.
3.
4.
5.
6.
wages for regular

working hours and overtime pay for
services rendered beyond regular
working hours in accordance with
the standards established by the
POEA;
Free Transportation from point of
hire to site of employment and
return;
Free emergency medical and dental
treatment and facilities;
Just causes for termination of the
contract or of the services of the
workers;
Workmens compensation benefits
and war hazard protection;
Repatriation of workers remains and
properties in case of death to the
point of hire, or if this is not

possible, the proper disposition
thereof;
7. Assistance on remittance of workers
salaries, allowances or allotments to
his beneficiaries; and
8. Free and adequate board and
lodging facilities or compensatory
food allowance at prevailing cost of
living standards at the jobsite.
AGENCIES GIVEN THE DUTY TO
PROMOTE THE WELFARE AND PROTECT
THE RIGHTS OF MIGRANT WORKERS:
1. DFA
2. DOLE
3. POEA
4.
OWWA- provides social and welfare
services including insurance coverage,
legal assistance, placement assistance
and remittance services to Filipino
overseas workers.
5.
Re-Placement
and
Monitoring
Center (RPM)- develops livelihood
programs for the returning workers, the
purpose of which is to reintegrate the
returning migrant workers to the
Philippine society.
conditions of work.
The foreign
employer must also be protected as he
may chance upon a Filipino worker who
does not possess sufficient knowledge
for which he is employed.
ART. 22. MANDATORY REMITTANCE

OF FOREIGN EXCHANGE EARNINGS
MANDATORY REMITTANCE
REQUIREMENTS:
- It shall be mandatory for all Filipino
workers abroad to remit a portion of
their foreign exchange earnings to their
families,
dependents,
and/or
beneficiaries in the country.
-The POEA Rules (Book III, Rule VIII)
prescribe the percentages of foreign
exchange remittance ranging from 50%
to 80% of the basic salary, depending on
the workers kind of job.
Nature of Job
Foreign Exchange
Remittance
(% of the Basic
salary)
Seamen or
mariners
80%
Workers for Filipino

contractors and
construction
companies
70%
Professionals
whose
employment
contract provide
for lodging facilities
70%
Professionals
without
board
and lodging
50%
Domestic and other

service
Workers
50%
ART. 18. BAN ON DIRECT HIRING

GENERAL RULE:
Direct hiring of
Filipino workers by a foreign
employer is NOT allowed.
EXCEPTIONS:
1. Direct hiring by:
a. the members of the diplomatic
corps;
b. international organizations; and
c. such other employers as may be
allowed by DOLE
2. NAME HIREES individual workers
who are
able to secure contracts for
overseas employment on their own
efforts and representations without
the assistance or participation or any
agency.
RATIONALE OF THE PROHIBITION
Filipino workers hired directly
by a foreign employer without
government intervention may not be
assured of the best possible terms and

CHAIRPERSONS

MEMORY AID
REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
ART. 25.
PRIVATE SECTOR
PARTICIPATION IN THE RECRUITMENT
AND PLACEMENT OF WORKERS
QUALIFICATIONS FOR PARTICIPATION

IN
THE
OVERSEAS
EMPLOYMENT
PROGRAM:
1. Citizenship requirement (Art.27,LC)
Filipino citizens, partnerships or
corporations
at least 75% of the authorized
and voting capital stock of which
is owned and controlled by
Filipino citizens
a)
Capitalization (Art. 28, LC)

For single proprietorship
or
partnership
minimum capitalization
of two (2) million.
For corporations - a
minimum paid up capital
of 2 million provided
that in those with
existing licenses shall,
within 4 years from
effectivity
hereof,
increase
their
capitalization or paid-up
capital, as the case
maybe, to two million
pesos at the rate of two
hundred fifty thousand
pesos (P250,000) every
year.
3. Those not otherwise disqualified by
law or guidelines to engage in the
recruitment and placement of workers
for overseas employment.
2.
b)
c)
d)
those
certified
to
have
derogatory
record
or
information by NBI or by the
Anti-illegal Recruitment Branch
of POEA
those against whom probable
cause or prima facie finding of
guilt or illegal recruitment of
other related cases exist
those convicted
for illegal
recruitment or other related
cases and/or crimes involving
moral turpitude
those agencies whose licenses
have been previously cancelled
or revoked by POEA for violation
of RA 8042, PD 442 as amended
and their implementing rules
and regulations as well as the
Labor
Codes implementing
rules and regulations
5. Persons
employed
in
the
Department of Labor or in other
government agencies directly
involved in overseas employment
program and their relatives
within the 4th degree of
consanguinity or affinity; or
those whose license has been
previously canceled or revoked
(POEA Rules & Regulations
governing the Recruitment &
Employment
of
Land-Based
Overseas Workers of 2002 ).
THE FF. ARE DISQUALIFIED FROM

RECRUITMENT &
PLACEMENT OF
WORKERS FOR OVERSEAS EMPLOYMENT
WHETHER FOR PROFIT OR NOT:
LABOR LAW COMMITTEE
LABOR LAW
members in a partnership
engaged in the business of a
travel agency;
3. Corporations and partnerships,
when any of its officers,
members of the board or
partners, is also an officer,
member of the board or partner
of a corporation engaged in the
business of a travel agency
(interlocking officers);
4. Persons,
partnerships,
or
corporations
which
have
derogatory records;
- such as but not limited to
those directed to be included in
the list of persons and entities
issued by POEA pursuant to:
CHAPTER II
1. Travel
agencies
and
sales
agencies of airline companies
(Art.26,LC);
2. Officers or members of the
board of any corporation or
IN
ART. 29. NON-TRANSFERABILITY OF

LICENSE OR AUTHORITY
-
No license or authority shall be

used directly or indirectly by any
10
person other than the one in whose

favor it was issued or at any place
other than that stated in the license
or authority, nor may such license or
authority be transferred, conveyed
or assigned to any other person or
entity.
-
Licensees or holders of authority or

their duly authorized representatives
may
as
a
rule,
undertake
recruitment and placement activities
only at their authorized official
addresses.
(Under
existing
regulations, they may be allowed to
conduct
provincial
recruitment
and/or job fairs only upon written
authority from POEA)
Change of ownership or relationship
of single proprietorship licensed to
engage in overseas employment shall
cause the automatic revocation of
the license.
ART. 31. BONDS

- All applicants for license or authority
shall post such cash and surety bonds as
determined by the Sec. of Labor.
PURPOSE: (GE)
1. To guarantee compliance with
prescribed
recruitment
procedures,
rules
and
regulations, and terms and
conditions of employment as
may be appropriate;
2. To ensure prompt and effective
recourse against such companies
when held liable for applicants
or workers claim (Finman
General
Assurance
vs.
Innocencio; G.R.No. 90273-75;
Nov.15,1989)
Cash bond filed by applicants for
license or authority is not subject to
garnishment by a judgment creditor of
the agency.
- POEA: possesses the power to
enforce liability under cash or surety
bonds.
ART. 32. FEES TO BE PAID BY

WORKERS
- Any person applying with a private
fee-charging employment agency for
employment assistance shall not be
charged any fee until he has
obtained employment
though its
efforts or has actually commenced
employment.
Fees paid shall always be covered

with the appropriate receipt clearly
showing the amount paid.
POEA: has the power to:
1. suspend/cancel license
2. order the refund/reimbursement
of such fees as may have been
illegally collected
3. award damages to repair the
injury caused to the victim
-
Private Fee Charging Employment

Agency -any person or entity engaged in
the recruitment and placement of
workers for a fee which is charged
directly or indirectly, from the workers
or employers or both.
ART. 34. PROHIBITED PRACTICES
It shall be unlawful for any individual,

entity, licensee, or holder of authority:
1. To charge or accept, directly or
indirectly, any amount greater
than that specified in the
schedule of allowable fees
prescribed by the Secretary of
Labor, or to make a worker pay
any amount greater than that
actually received by him as a
loan or advance;
2. To furnish or publish any false
notice
or
information
or
document
in
relation
to
recruitment or employment;
3. To give any false notice,
testimony,
information
or
document or commit any act of
misrepresentation
for
the
purpose of securing a license or
authority under this Code;
4. To induce or attempt to induce a
worker already employed to quit
his employment in order to offer
him another unless the transfer

CHAIRPERSONS
11
MEMORY AID
5.
6.
7.
8.
9.
10.
11.
is designed to liberate the

worker from oppressive terms
and conditions of employment;
To influence or attempt to
influence any person or entity
not to employ any worker who
has not applied for employment
through his agency.
To engage in the recruitment or
placement of jobs harmful to
public health or morality or to
the dignity of the Republic of the
Philippines;
To obstruct inspection by the
Secretary of Labor or by his duly
authorized representatives;
To fail to file reports on the
status
of
employment,
placement,
vacancies,
remittances of foreign exchange
earnings, separation from jobs,
departures and such other
matters as may be required by
the Secretary of Labor;
To
substitute
or
alter
employment contracts approved
and verified by the DOLE from
the time of actual signing
thereof by the parties up to and
including
the
periods
of
expiration of the same without
the approval of the Secretary of
Labor;
To become an officer or member
of the Board of any corporation
engaged directly or indirectly in
the management of a travel
agency; and
To withhold or deny travel
documents
from
applicant
workers before departure for
monetary
or
financial
considerations other than those
authorized under this Code and
its implementing rules and
regulations.
ART. 35.
CANCELLATION
AUTHORITY
-
SUSPENSION AND/OR
OF
LICENSE
OR
AUTHORITY - document issued by

DOLE authorizing a person or
association to engage in recruitment
LABOR LAW COMMITTEE
IN
LABOR LAW
and placement activities as a private

recruitment entity (Art.13 f, LC)
LICENSE - a document issued by
the DOLE authorizing a person or
entity to
operate
a private
employment agency.
GROUNDS FOR REVOCATION OF

LICENSE: (IVEE)
1. Incurring an accumulated three
counts of suspension by an
agency based on final and
executory orders within the
validity period of its license;
2. Violation/s of the conditions of
license;
3. Engaging
in
act/s
of
misrepresentation
for
the
purpose of securing a license or
renewal thereof;
4. Engaging in the recruitment or
placement of workers to jobs
harmful to the public health or
morality or to the dignity of the
Republic of the Philippines.
(POEA 2000 Rules)
GROUNDS
FOR
SUSPENSION/
CANCELLATION OF LICENSE:
1. Charging a fee before the worker
is employed or in excess of the
authorized amount;
2. Doing recruitment in places
outside its authorized area;
3. Deploying
workers
without
processing through the POEA;
4. Substituting
or
altering
employment contracts; and
5. Publishing job announcements
without
the
POEAs
prior
approval. (Sec.4, Rule2, Book IV,
POEA Rules)
NON-LICENSEE OR NON-HOLDER OF
AUTHORITY - any person, corporation or
entity which has not been issued a valid
license or authority to engage in
recruitment and placement by the
Secretary of Labor, or whose license or
authority has been suspended, revoked,
or cancelled by the POEA and the
Secretary. (PP vs. Diaz 259 SCRA 441
(1996)
- The DOLE Secretary and the POEA
Administrator exercise concurrent
jurisdiction to suspend or cancel a
12
license. (TransAction Overseas Corp.

vs. Sec. of Labor. G.R.No.109583.
Sept.5,1997)
CHAPTER III
by the POEA shall likewise

constitute illegal recruitment.
QUALIFYING CIRCUMSTANCES THAT
WOULD
MAKE
ILLEGAL
RECRUITMENT AS AN OFFENSE
INVOLVING ECONOMIC SABOTAGE:
MISCELLANEOUS PROVISIONS
I. When illegal recruitment is
ART. 38. ILLEGAL RECRUITMENT (as

per RA 8042 otherwise known as
the Migrant Workers Act of 1995)
ILLEGAL RECRUITMENT - Any act of
canvassing,
enlisting,
contracting,
transporting,
utilizing,
hiring
or
procuring workers and includes referring
contract
services,
promising
or
advertising for employment abroad,
whether for profit or not when
undertaken by a non-licensee or nonholder of authority; PROVIDED that any
such non-licensee or non-holder of
authority who in any manner, offers or
promises for a fee employment abroad
to two or more persons shall be deemed
so engaged. It shall likewise include the
commission of the following prohibited
acts whether committed by a nonlicensee or non-holder of authority or a
licensee or holder of authority (Sec.6,
RA 8042):
a) Those prohibited practices
enumerated under Art. 34;
b) Failure to actually deploy
without valid reason as
determined by DOLE; and
c) Failure
to
reimburse
expenses incurred by the
worker in connection with
his
documentation
and
processing for purposes of
deployment, in cases where
the deployment does not
actually take place without
the workers fault.
Recruitment and placement

activities
of
agents
or
representatives appointed by a
licensee, whose appointments
were not previously authorized
committed by a SYNDICATE
if it is carried out by a group of

three (3) or more persons more
persons individually or as a group, it
must be understood as referring to
the number of complainants in each
case who are complainants therein,
otherwise, prosecutions for single
crimes of illegal recruitment can be
cumulated to make out a case of
large scale illegal recruitment. In
other words, a conviction for large
scale illegal recruitment must be
based on a finding in each case of
illegal recruitment of three or more
persons whether individually or as a
group (People vs. Sps Karl and
Yolanda Reichl; MAR. 7, 2002).
II. When illegal recruitment is
committed in a LARGE SCALE
if it is committed against
three
(3) or
more
persons.
These circumstances only qualify

the offense. They do not define the
offense themselves.
CONSEQUENCES OF CONVICTION:
(AFC)
1. automatic revocation of the
license or authority (Art39
e,LC)
2. forfeiture of the cash and
surety bonds(Art.39 e,LC)
3. conviction for the crime of
estafa
provided
all
the
elements of the crime are

CHAIRPERSONS
13
MEMORY AID
present (PP vs Calonzo; G .R.

No.115150-55; Sept.27, 1996)
VENUE OF ACTIONS
RECRUITMENT
ON
ILLEGAL
- RTC of the province or city:

1.where the offense was committed;
or
2.where the offended party resides
at the time of the commission of the
offense.
at the option of the complainant
SUMMARY OF RULES ON
PRESCRIPTIVE PERIOD &
PENALTY:
ILLEGAL
REGULAR
ECONOMIC
SABOTAGE
Prescriptive
Period
5 years
20 years
Imprisonment
Prision
mayor
Life imprisonment
Fine
200T500T
500T-1M
RECRUITMENT
N.B.: maximum penalty shall be

imposed if the person illegally recruited
is less than 18 years of age or
committed by a non-licensee or nonholder of authority.
TITLE II
If an alien enters the country under

a non-working visa and wishes to be
employed thereafter, he may only be
allowed to be employed upon
presentation of a duly approved
employment permit.
Requirements before an alien can

work in the Philippines:
a) Work permit from DOLE - BLE
b) Working visa from Bureau of
Immigration
REQUIREMENTS FOR EMPLOYMENT
PERMIT APPLICATION (Section 5, LC
Implementing Rules)
The application for an employment
permit shall be accompanied by the
following:
(a) Curriculum vitae duly signed by the
applicant indicating his educational
background, his work experience and
other data showing that he possesses
high technical skills in his trade or
profession;
(b) Contract of employment between
the employer and the principal
which shall embody the following,
among others;
1)
That the non-resident alien

worker shall comply with
all applicable laws and
rules and regulations of
the Philippines;
2)
That the non-resident alien

worker and the employer
shall bind themselves to
train at least two (2)
Filipino understudies for a
period to be determined by
the Secretary of Labor and
Employment; and
3)
That he shall not engage in

any gainful employment
other than that for which
he was issued a permit.
ART. 40. EMPLOYMENT PERMIT OF

-
No alien seeking employment,

whether on resident or non-resident
status, may enter the Philippines
without
first
securing
an
LABOR LAW COMMITTEE
LABOR LAW
employment permit from the DOLE

(Bureau of Local Employment).
EMPLOYMENT OF NON-RESIDENT
ALIENS
NON-RESIDENT ALIENS
IN
(c) A designation by the employer of at

least two (2) understudies for every alien
14
worker. Such understudies must be the

most ranking regular employees in the
section or department for which the
expatriates are being hired.
b) His assessment as to whether

or not the employment of
the applicant will redound to
the national interest;
The employer shall submit a training

program for his understudies to the
Bureau within thirty (30) days upon
arrival of the alien workers.
c) Admissibility of the alien as

certified by the Bureau on
Immigration
and
Deportation;
Purpose of understudy: to ensure

the actual transfer of technology.
Instances where there is no need

for
employer
to
designate
understudies:
d) The recommendation of the

Board of Investments or
other
appropriate
government agencies if the
applicant will be employed
in
preferred
areas
of
investments or in accordance
with
imperatives
of
economic
developments;
and
1) elected board members in

multinational companies
2) artists / athletes
3) missionaries
4) lecturers/ instructors / trainors
5) foreign technicians who install
equipments
UNDERSTUDY any qualified Filipino
citizen designated by a local employer to
be trained by a foreign national allowed
to work in the country by virtue of an
employment permit granted him by the
Secretary under an approved understudy
training program (Implementing Rules,
Book 1, Rule 1, Section 1[1]).
ISSUANCE OF EMPLOYMENT PERMIT
(Section 6, LC Implementing Rules)
- The Secretary of Labor and
Employment may issue an employment
permit to the applicant based on:
a) Report
of
the
Bureau
Director as to the availability
or non-availability of any
person in the Philippines who
is competent, able and
willing to do the job for
which the services of the
applicant are desired at the
time of application to
perform the services for
which the alien is desired;
e) Payment of a P100.00 fee.

-
For an enterprise registered in

preferred areas of investments,
said employment permit may be
issued upon recommendation of
the government agency charged
with the supervision of said
enterprise.
DURATION OF EMPLOYMENT PERMIT

(Section 7, LC Implementing Rules)
- Subject to renewal upon showing
of good cause, the employment
permit shall be valid for a
minimum period of one (1) year
starting from the date of its
issuance unless sooner revoked
by the Secretary of Labor and
Employment for violation of any
of the provisions of the Code or
of these Rules.
PROHIBITION AGAINST EMPLOYMENT
OF ALIENS
A. GENERAL RULE.
- Foreigners may not be employed in
certain nationalized business.
- Section 2-A of the Anti-Dummy Law
prohibits the employment of aliens
in entities that own or control a
right, franchise, privilege, property
or business whose exercise or

CHAIRPERSONS
15
MEMORY AID
enjoyment is reserved by law only to

Filipinos or to corporations or
associations whose capital should be
at least 60% Filipino-owned.
B. EXCEPTIONS:
1. where the Secretary of
Justice specifically authorizes
the employment of technical
personnel;
2. where the aliens are elected
members of the board of
directors or governing body of
corporations or association in
proportion to their allowable
participation in the capital of
such entities; (DOJ Opinion
No.143)
C. OTHER PROHIBITIONS
1. Aliens shall not transfer to
another job or change his
employer without prior approval
of the secretary of Labor.
2. Non-resident alien shall not
take up employment in violation
of the provisions of the Code.
- violations of the abovementioned acts
will subject the alien to the punishment
provided in Art 289 and 290 and shall
subject the alien worker to deportation
after service of sentence.
BOOK TWO
HUMAN RESOURCES DEVELOPMENT
TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM
CHAPTER I
IN
LABOR LAW
2. to establish training institutions;

and
3. to formulate such integrated
plans, policies, & programs that
will ensure efficient and proper
allocation, development and
optimum utilization of the
nation's manpower, and thereby
promote
employment
and
accelerate economic and social
growth.

a. MANPOWER - that portion of the
nations population which has actual or
potential capability to contribute
directly to the production of goods and
services.
b. ENTREPRENEURSHIP - training for
self-employment or assisting individual
or small industries within the purview
of Title II of the Labor Code.
TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS
CHAPTER I
APPRENTICES
Types of Special Workers:
1. Apprentice
2. Learner
3. Handicapped
ART. 57. STATEMENT OF OBJECTIVES
FOR THE TRAINING & EMPLOYMENT OF
SPECIAL WORKERS
The promotion, development, and
maintenance
of
apprenticeship
programs shall have the following
objectives:
NATIONAL POLICIES AND

ADMINISTRATIVE MACHINERY FOR
THEIR IMPLEMENTATION
(a) To help meet the needs or

demands of the economy for
trained manpower in the widest
possible range of employment;
ART. 43. STATEMENT OF OBJECTIVES
(b) To
establish
a
national
apprenticeship program through
the participation of employers,
OF
NATIONAL
MANPOWER
DEVELOPMENT PROGRAM
1. to develop human resources;
LABOR LAW COMMITTEE
16
workers, government, civic and

other groups; and
(c) To
establish
apprenticeship
standards for the protection of
apprentices and upgrading of
skills.
ART. 58. DEFINITION OF TERMS
a.
b.
c.
d.
e.
f.
APPRENTICESHIP - practical
training
on
the
job
supplemented
by
related
theoretical instruction.
APPRENTICE - a worker who is
covered
by
a
written
apprenticeship agreement with
an individual employer or any of
the entities recognized under
this chapter.
APPRENTICEABLE OCCUPATION any trade, form of employment
or occupation which requires
more than 3 months of practical
training
on
the
job
supplemented
by
related
theoretical instruction.
APPRENTICESHIP AGREEMENT an employment contract wherein
the employer binds himself to
train the apprentice and the
apprentice in turn accepts the
terms of training.
ON-THE-JOB
TRAINING
practical
work
experience
through actual participation in
productive activities given to or
acquired by an apprentice.
HIGHLY TECHNICAL INDUSTRIES
a trade, business, enterprise,
industry or other activity, which
is engaged in the application of
advanced technology.
ART. 59.
APPRENTICES
QUALIFICATIONS
OF
Qualifications of an Apprentice:
1. at least 15 years of age; [provided
that those who are at least 15 years
of age but less than eighteen may
be eligible for apprenticeship only
in non-hazardous occupations and
the apprenticeship agreement shall
be signed in his behalf by the parent
or
guardian
or
authorized
representative of DOLE]
2. possess vocational aptitude and
capacity for appropriate tests; and
3. possess the ability to comprehend
and follow oral and written
instructions
4. The company must have an
apprenticeship
program
duly
approved by the DOLE.
[Note: The apprenticeable age under Art. 59 LC is
14 but it is 15 under the Implementing Rules. The
question of variance is rendered moot and
academic by RA 7610 which explicitly prohibits
employment of children below 15 yrs. of age. RA
7610 recognizes certain exceptions, but being an
apprentice is not one of the exceptions.]
Trade and industry associations may,

recommend to the Secretary of Labor
and
Employment
appropriate
educational
qualifications
for
apprentices in certain occupations. Such
qualifications, if approved, shall be the
educational
requirements
for
apprenticeship in such occupations
unless waived by an employer in favor of
an applicant who has demonstrated
exceptional ability.
ART.
60.
APPRENTICES
EMPLOYMENT
OF
Qualifications for an Employer:

- Only employers in highly technical
industries may employ apprentices
and
only
in
apprenticeable
occupations as determined by the
Secretary of Labor.
REQUESITES
FOR
A
VALID
APPRENTICESHIP:
1. Qualifications of the apprentice
2. Qualifications of the employer
3. Apprenticeship agreement duly
executed and signed which shall
contain the ff: (art.61, LC )
a.
b.
the duration of apprenticeship

which shall not exceed 6 months
the wage rates below the legal
minimum wage which in no case
shall start below 75% of the
applicable minimum wage in the
place where he is working { i.e.
compensation which must not

CHAIRPERSONS
17
MEMORY AID
be less than 75% of the

applicable
minimum
wage
except on-the-job training (OJT)
4. Apprenticeship program duly

approved by the DOLE ( Nitto
Enterprises vs. NLRC. G.R.No.
114337. Sept. 29,1995)
[otherwise, theres a possibility
that apprentice may become a
regular employee]
5. Period of apprenticeship shall
not exceed 6 months
ART.
62.
SIGNING
APPRENTICESHIP AGREEMENT
ON-THE-JOB
TRAINING
OF
APPRENTICES MAY BE UNDERTAKEN IN:
(a) the plant, shop or premises of the
employer or firm concerned if the
apprenticeship program is organized
by an individual employer or firm;
(b) the premises of one or several firms
designated for the purpose by the
organizer of the program if such
organizer is an association of
employers, civic group and the like;
and
(c) DOLE Training Center or other public
training institutions with which the
Bureau
has made
appropriate
arrangements.
OF
INVESTIGATION OF VIOLATION OF
APPRENTICESHIP
AGREEMENT:
(Art.65,LC)
LABOR LAW COMMITTEE
Either party to an agreement may

terminate the same after the
probationary period only for a valid
cause.
Action may be initiated upon
complaint of any interested person
or upon DOLEs own initiative.
APPEAL (Art.66,LC)
decision of authorized agency of DOLE
Within 5 days fr. receipt of
decision
Secretary of DOLE
ART. 63. VENUE OF APPRENTICESHIP

PROGRAMS
ARTS. 65-67. VIOLATION

APPRENTICESHIP AGREEMENT
LABOR LAW
OF
Who shall sign the Apprenticeship

Agreement:
- Every apprenticeship agreement
shall be signed by the employer or
his duly authorized representative
and by the apprentice.
- An apprenticeship agreement with a
minor shall be signed in his behalf by
his parent or guardian, or if the
latter is not available, by an
authorized representative of the
DOLE.
IN
[Sec of DOLEs decision is final & executory]
EXHAUSTION OF ADMINISTRATIVE
REMEDIES: (Art.67,LC)
- No person shall institute any action
for the enforcement of any
apprenticeship agreement or for
damages for breach thereof, unless
he has exhausted all available
administrative remedies.
- The plant apprenticeship committee
shall have initial responsibility for
settling differences arising out of
apprenticeship agreements.
ART. 70. VOLUNTARY ORGANIZATION

OF APPRENTICESHIP PROGRAM
GENERAL RULE: The organization of
apprenticeship
program
shall
be
primarily a voluntary undertaking of
employers.
EXCEPTION:
(Instances
when
organization of program is compulsory):
1. when
national
security or
particular
requirements
of
economic
development
so
demand;
2. where
services
of
foreign
technicians are utilized by
private
companies
in
apprenticeable trades
ART. 71. DEDUCTIBILITY OF
TRAINING COSTS
- An additional deduction from taxable
income of of the value of labor
training expenses incurred for
18
developing the productivity and

efficiency of apprentices shall be
granted to the person or enterprise
organizing
an
apprenticeship
program.
Provided,
that
such
program is duly recognized by the
Department of Labor: Provided,
further, that such deduction shall not
exceed ten percent (10%) of direct
labor wage: And provided, finally,
that the person or enterprise who
wishes to avail himself or itself of
this incentive should pay his
apprentices the minimum wage.
REQUISITES FOR TAX DEDUCTIONS IN
CASE
EMPLOYERS
HAVE
APPRENTICESHIP PROGRAMS:
1. the program must be duly recognized
by the Department of Labor;
2. the deduction shall not exceed 10%
of direct labor wage; and
3. the
employer
must
pay
his
apprentices the minimum wage.
APPRENTICESHIP
LEARNERSHIP
DURATION
Not less than 3
months practical
training on the job
but not more than
6months
Practical training on
the job not to
exceed 3 months.
CONCEPT
Practical training on
the job supplemented
by related theoretical
instruction
Hiring of persons as
trainees in semiskilled and other
industrial
occupations which
are nonapprenticeable and
which may be
learned through
practical training on
the job in a
relatively short
period of time.
ERs COMMITMENT TO HIRE

No commitment to
hire
With a commitment
to employ the
learner as regular
employee if he
desires upon
completion of
learnership
EFFECT OF PRETERMINATION
Worker is not
considered an
employee
Learner is
considered regular
employee after 2
months of training
and dismissal is
without fault of
learner
FOCUS OF TRAINING
Highly skilled or
technical industries &
in industrial
occupation
Semiskilled/industrial
occupation (nonapprenticeable)
APPROVAL
Requires
DOLE
approval for validity
Not required
EXHAUSTION OF ADM. REMEDIES IN

CASE OF BREACH OF CONTRACT
Precondition for filing
action
Not required
ART. 72. APPRENTICES WITHOUT

COMPENSATION
APPRENTICES MAY BE HIRED WITHOUT
COMPENSATION WHERE TRAINING ON
THE JOB IS:
1. required by the school;
2. required by the Training Program
Curriculum;
3. a requisite for Graduation; or
4. a
requisite
for
Board
Examination
LIABILITY OF A WORKING SCHOLAR
- Under this article the student is not
considered an employee. But if he
causes injury or damage to a third
person, the school may be held
liable under the Civil Code.
There is no employer-employee
relationship between students on one
hand,
and
schools,
colleges
or
universities agreement between them
under which the former agree to work
for the latter in exchange for the
privilege to study free of charge,
provided the students are given real
opportunities, including such facilities as
may be reasonable and necessary to
finish their chosen courses under such

CHAIRPERSONS
19
MEMORY AID
IN
LABOR LAW
agreement. (Rule X. Sec. 14, Book III,

Implementing Rules)
entered into between the employer and

the learner.
Section 14, Rule X, Book III of the

Rules implementing the Labor Code was
promulgated by the Secretary of Labor
only for the purpose of administering
and enforcing the provisions of the Labor
Code on conditions of employment. In
other words, Rule X is merely a guide to
the enforcement of the substantive law
on labor. The Court, thus, makes the
distinction and so holds that Section 14,
Rule X, Book III of the Rules is not the
decisive law in a CIVIL SUIT for damages
instituted by an injured person during a
vehicular accident against a working
student of a school and against the
school itself. The present case does not
deal with a labor dispute on conditions
of employment between an alleged
employee and an alleged employer. It
invokes a claim brought by one for
damages for injury caused by the
patently negligent acts of a person,
against both doer-employee and his
employer. Hence, the reliance on the
implementing rule on labor to disregard
the primary liability of an employer
under Article 2180 of the Civil Code is
misplaced. An implementing rule on
labor cannot be used by an employer as
a shield to void liability under the
substantive provisions of the Civil Code.
(Filamer Christian Institute vs. IAC;
[G.R. No. 75112; August 17, 1992.])
ART. 74. WHEN LEARNERS MAY BE

HIRED
CHAPTER II
LEARNERS
ART. 73. LEARNERS DEFINED
LEARNERS - persons hired as trainees
in semi-skilled and other industrial
occupations
which
are
nonapprenticeable and which may be
learned through practical training on the
job in a relatively short period of time
which shall not exceed 3 months.
CONDITIONS FOR HIRING LEARNERS:

- Learners may be employed when:
1. no experienced workers
are available,
2. the
employment
of
learners being necessary
to prevent curtailment
of
employment
opportunities, and
3. such employment will
not
create
unfair
competition in terms of
labor costs nor impair
working standards.
ART. 75. CONTENTS OF LEARNERSHIP
AGREEMENT
AGREEMENT SHALL INCLUDE :
1. The names and addresses of the
employer and the learner;
2. The occupation to be learned
and the duration of the training
period which shall not exceed
three (3) months;
3. The wage of learner which shall
be at least 75 percent of the
applicable minimum wage; and
4. A commitment to employ the
learner, if he so desires, as a
regular
employee
upon
completion of training.
- A learner who has worked during the
first two months shall be deemed a
regular
employee
if
training
is
terminated by the employer before the
end of the stipulated period through no
fault of the learner.
LEARNERSHIP AGREEMENT - refers to

the employment and training contract
LABOR LAW COMMITTEE
20
ART. 76. LEARNERS IN PIECEWORK

- Learners in piecework/incentive
rate jobs are to be paid in full for the
work done during the training period.
CHAPTER III
HANDICAPPED WORKERS
ART. 78. DEFINITION
HANDICAPPED WORKERS - those whose
earning capacity is impaired by age or
physical or mental deficiency or injury,
disease or illness.
- There must be a link between the
deficiency and the work which entitles
the employer to lessen the workers
wage.
HANDICAPPED
WORKER
Art. 78. LC
Those whose
earning capacity is
impaired by age or
physical or mental
deficiency or injury.
HANDICAPPED
PERSON
RA 7277
(Magna Carta for
Disabled Persons)
Those suffering
from restriction or
different abilities,
as a result of a
mental, physical or
sensory impairment,
to perform an
activity in the
manner or within
the range
considered normal
for a human being.
ART. 79. WHEN EMPLOYABLE

Handicapped workers may be employed
when:
1. their employment is necessary to
prevent
curtailment
of
employment opportunities
2. it does not create unfair
competition in labor costs or
impair
or
lower
working
standards.
Subject to the provisions of the

Code, handicapped workers may be
hired
as
regular
workers,
apprentices or learners IF their
handicap is not such as to
effectively
impede
the
performance of job operations in
the particular occupations for which
they were hired.
EQUAL
OPPORTUNITY
EMPLOYMENT ( SEC.5 RA 7277)
FOR
- No disabled person shall be denied

access to opportunities for suitable
employment.
Qualified
disabled
employees shall be subject to the same
terms and conditions of employment
and the same compensation, privileges,
benefits, fringe benefits, incentives or
allowances as a qualified able-bodied
person. Even a handicapped worker can
acquire the status of a regular
employee.
Duration of employment - no
minimum,
no
maximum duration.
Dependent on agreement but it is
necessary that there is a specific
duration.
ART. 80. EMPLOYMENT AGREEMENT
CONTENTS
AGREEMENT
-
OF
EMPLOYMENT
An
employer
who
hires
a
handicapped worker shall enter into
an employment agreement with the
latter which shall include:
employer and the handicapped
worker;
2. The rate of pay of the
handicapped worker which shall
not be less than seventy-five
(75%) percent of the legal
minimum wage;
3. The nature of work to be
performed by the handicapped
worker; and

CHAIRPERSONS
21
MEMORY AID
MANAGERIAL
EMPLOYEES
LABOR STANDARDS
Article 82
MANAGERIAL
EMPLOYEES
LABOR RELATIONS
Article 212 (m)
Used only for

purposes of Book III
Used only for

purposes of Book V
those
whose
primary
duty
consists
of
the
management of the
establishment
in
which
they
are
employed or of a
department
or
subdivision thereof
and
to
other
members of the
managerial staff
one who is vested

with
powers
or
prerogatives to lay
down and execute
management
policies and /or to
hire,
transfer,
suspend,
lay-off,
recall,
discharge,
assign or discipline
employees.
Supervisors are
members of the
managerial staff
does not include

supervisors
IN
LABOR LAW
ART. 82. COVERAGE

Title I, Book III of the Labor Code dealing
with hours of work, weekly rest periods,
holidays, service incentive leaves and
service charges, covers all employees in
all establishments, whether for profit or
not EXCEPT the following employees:
1. Government employees
2. Managerial employees
3. Officers and members of the
managerial staff
4. Field personnel
5. Members of the family of the
employer who are dependent
on him for support
6. Domestic helpers
7. Persons on the personal
service of another
8. Workers paid by result
4. The duration of the employment.
Subject to the appropriate

provisions
of
this
Code,
handicapped workers may be
hired
as
apprentices
or
learners, if their handicap is not
such as to effectively impede
the
performance
of
job
operations in the particular
occupations for which they are
hired.
BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
LABOR LAW COMMITTEE
22
The aforementioned employees are not

entitled to:
overtime pay
premium pay for rest days and
holidays
night shift differential pay
holiday pay
service incentive leave
service charges.
- Importance of determining the
existence
of
employer-employee
relationship: Labor standards and
conditions apply only if there is E-E
relationship.
ELEMENTS OF EMPLOYER-EMPLOYEE
RELATIONSHIP: (Enero vs. NLRC; G.R.
No. 120969; Jan. 22, 1998)
1. selection and engagement of the
employee;
2. the payment of wages;
3. power of dismissal; and
4. control test
TYPE OF EMPLOYEE
GOVERNMENT
EMPLOYEES
(including
those
employed in GOCCs
not
incorporated
under
the
Corpo.Code)
MANAGERIAL
EMPLOYEES
NON-AGRICULTURAL
FIELD PERSONNEL
(Union of Filipino
Employees vs. Vivar;
G.R. No. 79255;
January 22,1992)
EMPLOYER - one who employs the

services of others; one for whom
employees work and who pays their
wages or salaries.
EMPLOYEE - one who works for an
employer; a person working for salary or
wages
- shall not be limited to the employees
of a particular employer; it shall
include any individual whose work has
ceased as a result of or in connection
with any
current labor dispute or
because of unfair labor practice IF he
has not obtained any other
1. Substantially equivalent and
2. Regular employment
CONTROL TEST refers to the
employers power to control or right to
control the employee not only as to the
result of the work to be done but also as
to the means and methods by which the
same is to be accomplished.
This last element is the most important
index of the existence of the
relationship
MEMBERS OF THE
FAMILY
of
the
employer who are
dependent upon him
for support
DOMESTIC HELPERS
and persons in the
personal service of
another
Workers who are

paid BY RESULTS,
such as those on
piece rates or task
basis
GOVERNMENT EMPLOYEES
REASON WHY NOT

COVERED
because terms and
conditions
of
employment
are
governed by Civil
Service Law, rules
and regulations.
because they are
employed by reason
of
their
special
training, experience
or knowledge. Value
of their work cant
be
measured
in
terms of hours.
because they are
on their own in the
field and the number
of hours of actual
work they render
cannot
be
reasonably
ascertained;
it
would be grossly
unfair to require the
employer to pay
them benefits such
as
overtime
compensation.
the amounts given
by the employer by
way of support may
far
exceed
the
benefits to which
the
employee
is
entitled under the
provisions of the
Title.
terms
and
conditions
of
employment
are
governed by the
provisions of Chapter
III, Title III of the
present Book.
their compensation
is based on the work
accomplished
and
not on the time they
spend
in
accomplishing
the
work.
- refers only

CHAIRPERSONS
23
MEMORY AID
to employees of government agencies,

instrumentalities or political subdivisions
and of government corporations that are
NOT incorporated under the Corporation
Code, i.e., those which have original
charters.
WORKERS PAID ON PIECE-RATE BASIS those who are paid a standard amount
for every piece or unit of work produced
that is more or less regularly replicated,
without regard to the time spent in
producing the same.
WORKERS PAID BY RESULT - those who
are paid based on the work completed
and not on the time spent in working.
FIELD PERSONNEL - non-agricultural
employees who regularly perform their
duties away from the principal place of
business or branch office of the
employer, and whose actual hours of
work in the field cannot be determined
with reasonable certainty.
- They work away from direct supervision
of the employer.
NOTES:
- It is not prohibited to have normal
hours of work of less than
8hours/day. What the law regulates
is work hours exceeding eight.
-
The normal hours of work of an

employee shall not exceed 8 hours
a day.
Health personnel in government
service are excluded from the
coverage of Arts.82-96. Their work
hours, night shift differential pay,
LABOR LAW COMMITTEE
8-hour labor law prescribes the

maximum but not the minimum.
Therefore, part-time work, or a
days work of less than 8 hours is not
prohibited.
NORMAL HOURS OF WORK OF HEALTH

PERSONNEL
-
For health personnel in cities and

municipalities with a population of
at least 1M or in hospitals and clinics
with a bed capacity of at least 100:
regular office hours shall
be 8 hours a day for five
days a week, or 40 hours
a week, exclusive of
time for meals.
in case of exigencies,
they may work for 6 days
or for 48 hours, but they
shall be entitled to an
additional compensation
of at least 30% of their
regular wage for work
performed on the 6th day.
It is possible for an employee to

work for 2 calendar days.
1. perform
services
in
the
employers home which are
usually necessary and desirable
for
the
maintenance
or
enjoyment thereof; or
ART. 83. NORMAL HOURS OF WORK
LABOR LAW
and other employment benefits are

specified in RA 7305.
PURPOSES OF THE PROVISIONS
GOVERNING HOURS OF WORK:
1. to safeguard the health and
welfare of the laborer and
2. to minimize unemployment by
utilizing different shifts
DOMESTIC
HELPERS/
PERSONS
RENDERING PERSONAL SERVICES - those
who:
2. minister
to
the
personal
comfort, convenience or safety
of the employer, as well as the
members of the employers
household.
IN
(e.g. If Xs work schedule is from 10 pm of

Monday up to 6 a.m. of Tuesday, his work
day covers 2 calendar days.)
ART. 84. HOURS WORKED

HOURS WORKED SHALL INCLUDE:
1. all time during which an employee is
required to be on duty or to be at a
prescribed workplace;
24
RULES ON HOURS OF WORK

2. all time during which an employee is
suffered or permitted to work; and
3. rest periods of short duration during
working hours
4. meal period of less than twenty(20)
minutes, it becomes only a rest
period and is thus considered as
work time
A. WAITING TIME
- considered as hours worked if waiting:
1. is an integral part of his work; or
2. the employee is required or
engaged by the employer to wait
3. when employee is required to
remain on call in the employers
premises or so close thereto that
he cannot use the time
effectively and gainfully for his
own purpose.
PRINCIPLES IN DETERMINING HOURS

WORKED: (Rule 1, Book II, Implementing Rules)
1. All hours are hours worked which the
employee is required to give to his
employer, regardless of whether or
not such hour are spent in
productive labor or involve physical
or mental exertion.
2. An employee need not leave the
premises of the workplace in order
that his rest period shall not be
counted, it being enough that he
stops working, may rest completely
and may leave his workplace, to go
elsewhere whether within or outside
the premises of his workplace.
3. If
the
work
performed
was
necessary, or it benefited the
employer, or the employee could not
abandon his work at the end of his
normal working hours because he
had no replacement, all time spent
for such work shall be considered as
hours worked if the work is with the
knowledge of his employer or
immediate supervisor.
4.
The time during which an employee

is inactive by reason of interruptions
in his work beyond his control shall
be considered time worked either if
the imminence of the resumption of
work requires the employees
presence at the place of work or if
the interval is too brief to be utilized
effectively and gainfully in the
employees own interest.
WORKING WHILE ON CALL

-
when employee is required to remain

on call in the employers premises or
so close thereto that he cannot use
the time effectively and gainfully for
his own purpose.
However, if he is not required to

leave word at his home or with
company officials where he may be
reached, he is not considered
working while on call.
B. PRELIMINARY
ACTIVITIES
-
&
POSTLIMINARY
compensable when:
1. controlled or required by employer ;

2. are
pursued
necessarily
and
primarily for the employers benefit
*preliminary:
before work, e.g. preparation for
business presentations
* postliminary:
after actual work, e.g. OT

CHAIRPERSONS
25
MEMORY AID
C. TRAVEL TIME
- Summary of Rules
TRAVEL
TRAVEL
FROM
THAT IS ALL
HOME TO
IN DAYS
WORK
WORK
TRAVEL
AWAY FROM
HOME
LABOR LAW
ENGAGED TO WAIT
WAITING TO BE
ENGAGED
When waiting is an
integral part of the
job,
the
time
spent waiting is
Idle time is not

working time; it is
not compensable.
e.g. Affleck works

as a driver and his
task is to drive a
truck to Naga to
load gravel and
sand. While gravel
is being loaded, he
engaged himself in
a mahjong session
and then slept. Is
the time spent
playing
and
sleeping
compensable?
e.g. Stiller works

as a Partas Trans
bus driver.
His
route is from Vigan
to Baguio, leaving
at
6am and
arriving at 12nn.
He is completely
relieved from all
duty until 6pm,
when he again
goes on duty for
the return trip to
Vigan. Is his idle
time working time?
compensable
Normal
travel from
home
to
work which is
not
work
time
The
time
spent by an
employee in
travel as part
of
his
principal
activity, like
travel from
jobsite
to
jobsite
during
the
workday
Travel
that
keeps
an
employee
away
from
home
overnight
Generally:
not
compensable
Compensable
and must be
counted
as
hours worked
Considered as
work
time
when it cuts
across
an
employees
workday
Exception:
where
the
worker
is
made
to
work on an
emergency
call
and
travel
is
necessary in
proceeding
to
the
workplace,
the
time
spent
on
travel
is
compensable
IN
(because it
substitutes
for the hours
that
the
employee
should have
been in the
office.
N.B.: In Travel from home to work, if

same is via shuttle service sponsored by
the company, travel time is not
compensable because service is for the
benefit of the employee.
In travel away from home, if instruction
was given by the employer to the
employee to go to a warehouse and to go
back to the main office afterwards, the
time traveled is considered as hours
worked; however, if instead of going
back to the office, the employee went
home, only the travel to the warehouse
is considered as hours worked.
Yes because he is
engaged to wait
for waiting is an
integral part of the
job.
No because during
his idle time, he is
specifically
relieved from all
duty. He is merely
waiting
to
be
engaged.
a. 1st 20 minutes is compensable;

b. succeeding
minutes
not
compensable
- but if despite the lapse of the
1st 20 minutes the employees are
required to stay in their
workplaces,
such
time
is
compensable.
E. SEMESTRAL BREAK OF TEACHERS
- compensable hours worked for it is a
form of interruption beyond their
control.
- Only for regular full-time teachers
(Univ. of Pangasinan Faculty Union
vs. Univ. of Pangasinan; Feb. 20,
1984)
F. LECTURES, MEETINGS, TRAININGS,
PROGRAMS
not counted as working time if all the
following conditions are met:
D. POWER INTERRUPTIONS
LABOR LAW COMMITTEE
26
a. attendance is outside of the

employees
regular
working
hours;
b. attendance is in fact voluntary;
and
c. employee does not perform any
productive work during such
attendance.
G. WORK HOURS OF SEAMEN
-
presence on board for more than 8

hours a day is required by the nature
of their service.
Conditions to be satisfied before a

seaman be entitled to overtime pay:
1. Actual rendition of overtime
work
2. Submission of sufficient proof
that said work was actually
performed
ART. 85. MEAL PERIODS

MEAL PERIODS
1. should not be less than sixty (60)
minutes, and is time-off/noncompensable.
2. under specified cases, may be less
than sixty (60) minutes, but should
not be less than twenty (20) minutes
and must be with full pay.
3. if less than twenty(20) minutes, it
becomes only a rest period and is
thus considered as work time.
NOTE:
the
employee
must
be
completely
relieved
from
duty.
Otherwise, it is compensable as hours
worked.
- Mealtime is not compensable
EXCEPT in the ff. cases:
1. where the lunch period or meal
time is predominantly spent for
the employers benefit or
2. where it is less than 60 minutes.
SHORTENED MEAL BREAK UPON

EMPLOYEES REQUEST
Employees may request that their
meal period be shortened so that
they can leave work earlier than the

previously established schedule.
REQUISITES:
1. employees voluntarily agree in
writing to a shortened meal period
and are willing to waive the
overtime pay for such shortened
meal;
2. There will be no diminution
whatsoever in the salary and other
fringe benefits of the employees
existing before the affectivity of the
shortened meal period;
3. The work of the employees does not
involve strenuous physical exertion
and they are provided with adequate
coffee breaks;
4. The value of benefits is equal to the
compensation due them for the
shortened meal period;
5. Overtime pay will become due and
demandable if ever they are
permitted or made to work beyond
4:30 pm.
6. The arrangement is of temporary
duration.
( BWC-WHSD Opinion
N0.197)
ART. 86. NIGHT SHIFT DIFFERENTIAL
CONCEPT OF NSD
- additional compensation of not less
than ten percent (10%) of an
employees regular wage for every hour
of work done between 10:00 PM and
6:00 AM, whether or not such period is
part of the workers regular shift.
- if work done between 10 PM
and 6 AM is overtime work,
then the 10% night shift
differential should be based on
the overtime rate.
NOT
WAIVABLE
Additional
compensation for nighttime work is
founded on PUBLIC POLICY (Mercury
Drug vs Dayao. G.R. L-30452. Sept.
30,1982).
FORMULA
([ 10% x regular wage per hour) x no.
of hours of work performed
between 10pm-6am]

CHAIRPERSONS
27
MEMORY AID
SAMPLE ILLUSTRATION NO. 1 :

P800
Work Schedule:
6:00pm 2:00 am
- Daily Wage divided by number of hours

worked
= P100
Step 2: compute wage between 6:00pm

-2:00 am
e.g. 8hrs x P100
= P800
Step 3: compute NSD
- (10% of regular wage per hour x no. of hours
of work performed between 10pm-6am)
COMPUTATION:
6am-10pm
4hrs x P100
10pm-2am
4hrs x P100
NSD Pay
4hrs x P 10
Total wage earned
e.g. (10% x P125) x 2 hours=

COMPUTATION:
8am-5pm
8hrs x P100.00
5pm-12mn 7hrs x P125.00
NSD Pay
2hrs x P 12.50
Step 1: get hourly wage rate
e.g. (10% x P100) x 4 hours
LABOR LAW
- (10% of OT wage per hour x no. of hours of

work performed between 10pm-6am)
Daily Wage :
e.g. P800 / 8 hrs.
IN
=P40
Total wage earned

NSD
400
40
-----------P840
P800
875
24
-----------P1699
OVERTIME PAY
Payment for
Payment
for
the
work done during
excess of the regular
the night (10:00pm-8-hr work
6am)
10 % of basic wage
P400
P24
25% or 30% of basic

wage
NOTE: The receipt of overtime pay will not

preclude payment of night shift differential pay.
ART. 87. OVERTIME WORK

SAMPLE ILLUSTRATION NO. 2 :
Daily Wage :
Work Schedule:
OT :
OVERTIME PAY
P800
8:00am 5:00 pm
5:00pm 12:00 mn

- Daily Wage divided by number of hours
worked
e.g. P800 / 8 hrs.
= P100

-5:00 am
e.g. 8hrs x P100
= P800
Step 3: compute OT Premium Pay

between 5:00pm - 12mn
additional compensation for work

performed beyond eight (8) hours
within the workers 24-hour workday
regardless whether the work covers
2 calendar days.
The employee is paid for the
overtime
work
on
additional
compensation equivalent to his
regular wage plus at least 25%
thereof.
Overtime work performed on a
holiday or rest day shall be paid an
additional compensation equivalent
to the rate of the first 8 hours on a
holiday or rest day plus at least 30%
thereof.
- [(25% x Wage per hour) + Wage per hour] x

no.of OT hours
e.g.
(25% x P100)+100
= P125
x no.of OT hours (5pm-12mn)x 7hrs
--------
Step 4: compute NSD
LABOR LAW COMMITTEE
P875
PREMIUM PAY
- is additional compensation for work
rendered by the employee on days
when normally he should not be
working such as special holidays and
weekly rest days.
28
hour OT pay that is due them

during weekdays based on
the
employees
quantification;
4. The one-hour OT pay will
become due and payable if
they are made or permitted
to work on a day not
scheduled for work on the
compressed workweek;
5. The work does not involve
strenuous physical exertion
and employees must have
adequate rest periods; and
6. The arrangement is of
temporary
duration.
WORK DAY
-the 24-hour period which
commences from the time the
employee regularly starts to work;
e.g., if the worker starts to work 8
am today, the workday is from 8am
today up to 8 am tomorrow.
- The minimum normal working hours
fixed by law need not be continuous to
constitute the legal working day, so long
as it is within the work day.
RATIONALE:
The employee is given OT pay
because he is made to work longer
than what is commensurate with his
agreed
compensation
for
the
statutorily fixed or voluntarily
agreed hours of labor he is supposed
to do.
WAIVER OF OVERTIME PAY:
- As a rule, no waiver of overtime pay
whether express or implied. Any
contrary stipulation is null and void,
as it is intended to benefit laborers
and employees.
Exceptions:
1. when the waiver is made in
consideration of benefits and
privileges which may be more
than what will accrue to them in
overtime pay (Meralco Workers
Union vs. Meralco; G.R.No.L11876; May 29,1959)
2. compressed workweek proposed
by employees
- allowable only under the
following CONDITIONS:
1. It is voluntary on the part of
the worker;
2. There will be no diminution
of the weekly or monthly
take-home pay and fringe
benefits of the employees;
3. The value of the benefits
that will accrue to the
employees
under
the
proposed schedule is more
than
or
at
least
commensurate with the one-
FACTUAL & LEGAL BASIS FOR CLAIM

-
As a Rule: Express instruction

from the employer to the
employee to render overtime
work is not required for the
employee to be entitled to
overtime pay.
N.B.: Meal periods during overtime

work is not given to workers
performing overtime for the reason that
OT work is usually for a short period
ranging from one to three hours and to
deduct from the same one full hour as
meal period would reduce to nothing the
employees OT work.
BASIS OF OT:
- Regular Basic Wage : includes
cash wage only, without any
deduction on account of
facilities provided by the
employer (Art.90,LC)
RULES:
- Work performed beyond 8 hours a
day must be paid an additional
compensation equivalent to the
employees regular wage plus at
least 25% thereof.
- Work performed beyond 8 hours
on a holiday or rest day shall be
paid an additional compensation
equivalent to the rate for the first

CHAIRPERSONS
29
MEMORY AID
IN
LABOR LAW
8 hours on a holiday or rest day

plus 30% thereof.
-
Express instruction from the

employer to render overtime
work is not required for the
employee to be entitled to
overtime pay. It is sufficient that
the employee is permitted or
suffered to work.
ILLUSTRATION :
1. REGULAR WORKDAYS
Regular basic wage + 25% of regular basic
wage
Daily Wage :
P 800
Work Schedule:
8:00am 5:00 pm
(inclusive of 1 hour
meal break)
OT
5:00pm 10:00 pm
- Daily Basic Wage divided by number of

hours worked
= P100
Step 2: compute wage between 8:00am

-5:00 pm
e.g. 8hrs x P100
= P800
between 5:00 pm 10pm
no.of OT hours
e.g. (25% x P100)+100

= P125
x no.of OT hours (5pm-10pm)= 5hrs
-----------COMPUTATION:
8am-5pm
8hrs x P100.00
5pm-10pm 5hrs x P125.00
Total Take Home Pay
e.g. (P800 / 8 hrs.) x 200%
P625
P800
625
-----------P1,425
2. LEGAL OR REGULAR HOLIDAYS

Holiday wage rate + 30% of holiday rate
(200%)
Daily Wage :
P 800
= P200

-5:00 pm using holiday wage rate
e.g. 8hrs x P200
= P1600

no.of OT hours
e.g. (30 % x P200)+200

= P 260
x no.of OT hours (5pm-10pm) = 5hrs
-----------P1300
COMPUTATION:
8am-5pm
8hrs x P200.00
5pm-10pm 5hrs x P260.00
Step 1. Get hourly wage rate
e.g. P800 / 8 hrs.

hours worked multiplied by regular holiday
wage rate
Total Take Home Pay
P 1600
1300
-----------P2,900
3. REST DAYS OR SPECIAL HOLIDAYS

Rest day or special holiday wage rate +
30% of rest day or special holiday wage
rate (130%)
Daily Wage :
Work Schedule:
P 800
8:00am 5:00 pm
meal break)
OT :
June 24
( Q.C. day - special holiday)
5:00pm 10:00 pm

hours worked multiplied by special holiday
wage rate
e.g. (P800 / 8 hrs) x 130%

= P130
-5:00 pm using special holiday wage
rate
e.g. 8hrs x P130
= P1040
- [(30% x HWage per hour) + HWage per hour]
x no.of OT hours
e.g. (30 % x P130)+130

= P 169
8:00am 5:00 pm
x
no.of
OT
hours
(5pm-10pm)
=
5hrs
meal break)
OT :
June
12
(Independence
day)
LABOR LAW COMMITTEE
5:00pm
10:00
pm CHAIRPERSON: Juanito Lim, Jr. SUBJECT HEADS: Aimee Roselle
CHAIRPERSON: Francis Benedict
Rotutar
ASSISTANT
Work Schedule:
30
-----------P 845
COMPUTATION:
8am-5pm
8hrs x P130.00
5pm-10pm 5hrs x P169.00
Total Take Home Pay
P 1040
845
-----------P1,885
4. SCHEDULED REST DAY WHICH IS

ALSO A SPECIAL HOLIDAY
Rest day & special holiday wage rate +
30% of rest day & special holiday wage
rate (150%)
Daily Wage :
Work Schedule:
P 800
8:00am 5:00 pm
meal break)
OT
June 6
( Araw ng Caloocan special holiday coinciding
w/ employees scheduled
rest day)
5:00pm 10:00 pm

hours worked multiplied by rest day & special
holiday wage rate
e.g. (P800 / 8 hrs) x 150%
= P150

-5:00 pm using special holiday wage
rate
e.g. 8hrs x P150
= P1200
x no. of OT hours
e.g. (30 % x P150)+150

= P 195
x no. of OT hours (5pm-10pm)=
5hrs
-----------COMPUTATION:
8am-5pm
8hrs x P150.00
5pm-10pm 5hrs x P195.00
Total Take Home Pay
P 975
P 1200
975
-----------P2,175
5. DOUBLE HOLIDAY
Double holiday wage rate + 30% of
Double holiday wage rate (300%)
Daily Wage :
Work Schedule:
OT :
P 800
8:00am 5:00 pm
meal break)
April 9
(Araw ng Kagitingan &
at the same time Good
Friday)
5:00pm 10:00 pm

hours worked multiplied by rest day & special
holiday wage rate
e.g. (P800 / 8 hrs) x 300%
= P300

-5:00 pm using special holiday wage rate
e.g. 8 hrs x P300
= P2400

x no. of OT hours
e.g. (30 % x P300)+300

= P 390
x no. of OT hours (5pm-10pm) =
5hrs
-----------P 1950
COMPUTATION:
8am-5pm
8hrs x P300.00
5pm-10pm 5hrs x P390.00
Total Take Home Pay
P 2400
1950
-----------P4,350
ART. 88. UNDERTIME NOT OFFSET BY

OVERTIME
RULE :
- Undertime work on any particular
day shall not be offset by overtime work
on any other day.
- Permission given to the employee to
go on leave on some other day of the
week shall not exempt the employer
from
paying
the
additional
compensation.

CHAIRPERSONS
31
MEMORY AID
RATIONALE
- An employees regular pay rate is
lower than the overtime rate. Offsetting
the undertime hours against the
overtime hours would result in undue
deprivation of the employees extra pay
for overtime work.
ART. 89. EMERGENCY OVERTIME
WORK
GENERAL RULE :
- Generally, employers can not compel
his workers to render overtime work
against his will.
EXCEPTION:
- Any employee may be required by
the employer to perform overtime
work in any of the following cases:
1. When the country is at war or
when any national or local
emergency has been declared by
the National Assembly or the
Chief Executive;
2. When it is necessary to prevent
loss of life or property or in case
of imminent danger to public
safety due to an actual or
impending emergency in the
locality caused by serious
accidents, fire, flood, typhoon,
earthquake, epidemic, or other
disaster or calamity;
3. When there is urgent work to be
performed
on
machines,
installations, or equipment, in
order to avoid serious loss or
damage to the employer or some
other cause of similar nature;
4. When work is necessary to
prevent loss or damage to
perishable goods;
5. Where
the
completion
or
continuation of the work started
before the eight hour is
necessary to
prevent serious obstruction or
prejudice to the business or
operations of the employer; and
6. When it is necessary to avail of
favorable
weather
or
environmental conditions where
LABOR LAW COMMITTEE
IN
LABOR LAW
performance or quality of work

is dependent thereon.
in any of the foregoing cases,
the employer may require the employee
to render OT work provided that the OT
work is paid the additional compensation
required.
ART. 90. COMPUTATION
ADDITIONAL COMPENSATION
- For purposes of
overtime
and
other
remunerations.
OF
computing
additional
- REGULAR WAGE shall include

cash wage only, without deduction on
account of
facilities
provided
by
the employer.
CHAPTER II
WEEKLY REST PERIOD
ART. 91. RIGHT TO A WEEKLY REST
DAY
CONCEPT OF REST DAY
- Employees should be provided a
rest period of not less than twenty four
(24) consecutive hours after every six
(6) consecutive normal work days.
- Weekly Rest period is within the
purview of employers prerogative.
The employer shall schedule the weekly
rest day of his employees subject to
collective
bargaining
agreement.
However, the employer shall respect the
preference of employees as to their
weekly rest day when such preference
is based on religious grounds. But
when such preference will prejudice the
operations of the undertaking and the
employer cannot normally result to other
remedial measures, the employer may so
schedule the weekly rest day that meets
the employees choice for at least two
(2) days a month.
32
ART. 92. WHEN EMPLOYER MAY

REQUIRE WORK ON A REST DAY
GENERAL RULE:
-
It shall be the duty of every

employer, whether operating for
profit or not to provide a rest period
of not less than twenty four (24)
consecutive hours after every six (6)
consecutive normal work days to his
employees.
EXCEPTION: (UPANAC)
The employer may require his
employees to work on any day even on a
rest day:
1. In cases of urgent work to be
performed on the machinery,
equipment, or installation, to
avoid serious loss which the
employer
would
otherwise
suffer;
2. To prevent loss or damage to
perishable goods;
3. In case of actual or impending
emergencies caused by serious
accident, fire, flood, typhoon,
disaster or calamity to prevent
loss of life and property, or
imminent danger to public
safety;
Where the nature of the work
requires continuous operations
and the stoppage of work may
result in irreparable injury or
loss to the employer; and
4. In the event of abnormal
pressure of work due to special
circumstances,
where
the
employer cannot ordinarily be
expected to resort to other
measures;
5. Under
other
circumstances
analogous to the foregoing as
determined by the Secretary of
Labor.
this article does not prohibit a

stipulation in the CBA for higher
benefits
SPECIAL HOLIDAYS
List of Special Holidays
National;
1. All Saints Day- November 1
2. Last Day of the YearDecember 31
3. And all other days declared by
law
Local:
Those declared by law or
ordinance (e.g. Makati Day for Makati
City only)
When entitled to premium pay:
If worked = regular wage plus

30% premium pay
If
not
worked
=
no
compensation/no premium
REGULAR
HOLIDAY
SPECIAL HOLIDAY
compensable even
if unworked
subject to certain
conditions
Not compensable if
unworked
limited to the 10 Not exclusive since a

enumerated by
law or ordinance may
the Labor Code provide for other special
holidays
rate is twice the
regular rate if
worked
Rate is 130% of the

regular wage if worked
ART. 93. COMPENSATION FOR REST

DAY, SUNDAY OR HOLIDAY WORK
ADDITIONAL COMPENSATION FOR WORK

ON A REST DAY, SUNDAY OR HOLIDAY:

CHAIRPERSONS
33
MEMORY AID
DAY
RATE OF
ADDITIONAL
COMPENSATION
Work on a scheduled 30% of regular wage
rest day
No regular workdays 30% of regular wage
and rest days
for work on Sundays
& Holidays
Work on Special
30% of regular wage
Holidays
Holiday Work falls on 50% of regular wage
Scheduled Rest Day
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
ART. 94. RIGHT TO HOLIDAY PAY
HOLIDAY PAY
- Also termed as legal holiday
- A days pay given by law to an
employee even if he does not work on a
regular holiday. It is limited to the
eleven (11) regular holidays listed by
law. The employee should not have
been
absent without pay on the
working day preceding the regular
holiday.
PREMIUM PAY
-
additional
compensation for
work performed on a scheduled
rest day or holiday
REGULAR HOLIDAYS [NM-GALIN-CREB]:

1. New Years Day - January 1
2. Maundy Thursday - Movable date
LABOR LAW COMMITTEE
3.
4.
5.
6.
7.
8.
9.
10.
11.
IN
LABOR LAW
Good Friday - Movable date

Araw ng Kagitingan - April 9
Labor Day - May 1
Independence Day - June 12
National Heroes Day - Last
Sunday of August
Bonifacio Day - November 30
Christmas Day - December 25
Rizal Day - December 30
Eidl Fitr movable date (RA
9177. Nov.13,2002)
N.B.: There must be no distinction

between Muslims and non-Muslims as
regards payment of benefits for Muslim
Holidays; wages and other emoluments
are laid down by law and not based on
faith or religion (SMC v. CA).
RULE ON COMPENSABILITY
- compensable whether worked or
unworked subject to certain
conditions
- Legal holiday falling on a Sunday
does not create an additional
workday nor create a legal
obligation for the employer to
pay extra, aside from the usual
holiday pay to its monthly paid
employees.
DOUBLE HOLIDAY PAY
1. 200% of the basic wage
- entitled even if said holiday is
unworked
- to give employee only 100%
would reduce the number of
holidays under DO No. 3.
2. 300% if he worked on 2 regular
holidays falling on the same day,
- e.g., April 9 and Good Friday
ILLUSTRATION :
A Single holiday rule:
- provided that the employee
1. worked
2. was on leave with pay or
3. was
on
authorized
absence on the day prior
to the regular holiday.
34
SUCCESSIVE REGULAR HOLIDAY

- If there are two successive regular
holidays, e.g., Maundy Thursday and
Good Friday, the employee must be
present the day before the scheduled
regular holiday to be entitled to
compensation to both; otherwise, he
must work on the first holiday to be
entitled to holiday pay on the second
regular holiday. (Sec.10, Rule IV, Book
III, Implementing Rules) (see table
below)
WED
THURS
FRI
REGULAR
HOLIDAY
REGULAR
HOLIDAY
REGULAR
HOLIDAY
Present REST DAY

Absent
REST DAY
with pay
Absent REST DAY
w/out
pay
Present SILSPECIAL
DAY
Absent SPECIAL
with pay
DAY
Mandatory
Absent
SPECIAL
-legally required w/out
DAY
under
pay Art.95,LC
-
ENTITLED
TO BE
PAID ?
YES
ENTITLED
TO BE
PAID?
Present
REGULAR
HOLIDAY
REGULAR
HOLIDAY
YES
BOTH
Absent
with pay
REGULAR
HOLIDAY
REGULAR
HOLIDAY
YES
BOTH
Absent
REGULAR
w/out pay HOLIDAY
Absent
w/out pay
YES
Worked
REGULAR NO BOTH
HOLIDAY
YES but
only to the
holiday
pay on
Friday
NO
VACATION/ YES
SICK LEAVE
YES
Voluntary
NO
grant results from:
employers
discretionary
policy or from CBA
Intended to
alleviate the
economic
condition of the
workers for it
acts
as replacement
for regular
income that
would not be
earned during
such instance
Intended to afford a
laborer a
chance to get a much
needed
rest to replenish his worn
out
energies and acquire new
vitality to enable him to
meet
him to efficiently perform
his
duties and not merely to
give
him additional salary
Can not be
waived
Must be demanded in its

opportune time,
otherwise,
silence would equate to
waiver
same being a mere
concession
or act of grace of
employer
Commutable
CHAIRPERSONS
B. Successive holiday rule:

MAUNDY
GOOD
WED
THURS
FRIDAY
ART. 95. RIGHT

INCENTIVE LEAVE
TO
SERVICE
CONCEPT OF SERVICE INCENTIVE

LEAVE (SIL)
- five (5) days leave with pay for
every employee who has rendered at
least one (1) year of service.
SIL DOES NOT APPLY TO THOSE WHO
ARE: (E4)
1. already enjoying the said benefits;
2. already enjoying vacation leave with
pay for at least 5 days;
3. employed in establishments regularly
employing less than 10 employees;
and
4. employed
in
establishments
exempted from granting this benefit
by the Secretary of Labor.
ONE (1) YEAR OF SERVICE - service
within 12 months, whether continuous or
broken, reckoned from the date the
employee started working including
authorized absences and paid regular
holidays unless the number of working
days in the establishment, as a matter of
practice or policy or as provided in the
2005
CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT
Not Commutable
35
MEMORY AID
employment contract, is less than 12

months.
SIL is commutable, i.e., convertible to
cash the cash equivalent is aimed
primarily at encouraging workers to work
continuously and with dedication to the
company.
-
Part-time workers are entitled to the

full benefit of the yearly 5-days SIL.
The reason is that the provisions of
Art.95 speak of the number of
months in a year for entitlement to
said benefit.
VACATION AND SICK LEAVE

-
Not statutorily required; matter of

management discretion or a product
of collective bargaining agreement.
Benefits are non-cumulative and

non-commutative; must be enjoyed
by the employee within 1 year
otherwise they are considered
waived or forfeited. Exception is
when the labor contract or the
established practice of the employer
provides otherwise.
No employer shall discriminate against

any solo parent employee with respect
to terms and conditions of employment
on account of his/her status. (Sec. 7,
Solo Parents Law)
In addition to leave privileges under
existing laws, parental leave of not more
than seven (7) working days every year
shall be granted to any solo parent
employee who has rendered service of at
least 1 year. (Sec. 8, Solo Parents Law)
MATERNITY AND PATERNITY LEAVE
(see discussion in Art. 133 )
ART. 96. SERVICE CHARGES
CONCEPT.
- All service charges collected by
hotels, restaurants and similar
establishment shall be distributed:
1. 85%
for
all
covered
employees to be equally
distributed among them
LABOR LAW COMMITTEE
IN
LABOR LAW
2. 15% for management

-
Share of the employees shall be

equally distributed among them.
The shares referred to

herein shall be distributed
and paid to employees not
less than once every 2 weeks
or twice a month at intervals
not exceeding 16 days.
The 15% management share shall be for

disposition by management to answer for
losses and breakages and distribution to
employees
receiving
more
than
P2,000.00 a month at the discretion of
the management in the latter case.
-
In case the service charge is

abolished, the share of the covered
employees shall be considered
integrated in their wages.
The basis of the amount to

be integrated shall be the
average share of each
employee for the past 12
months
immediately
preceding the abolition or
withdrawal of such charges.
COVERAGE
- Apply only to hotels, restaurants and
similar establishment collecting service
charges
POOLED TIPS
- Monitored, accounted for, and
distributed in the same manner as
service charges
TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS
ART. 97. DEFINITION
AGRICULTURE includes farming in all
its branches, and, among other things,
36
includes the cultivation and tillage of

soil,
dairying,
the
production,
cultivation, growing and harvesting of
any
agricultural
and
horticultural
commodities, the raising of livestock or
poultry, and any practices performed by
a farmer on a farm as an incident to or
in conjunction with such farming
operations, but does not include the
manufacturing or processing of sugar,
coconuts, abaca, tobacco, pineapples or
other farm products.
THEY ARE DEEMED INCLUDED IN THE

SALARY IF THE FF CONDITIONS
CONCUR:
The grant thereof is:
- Unconditional
- Consistent and deliberate over a period
of time
- Customarily given such that the
employee expects to receive the same
WAGE - the remuneration or earnings,

however designated, capable of being
expressed in terms of money, whether
fixed or ascertained on a time, task,
piece, or commission basis or other
method or calculating the same, which is
payable by an employer to an employee
under a written or unwritten contract of
employment for work done or to be done
or for services rendered or to be
rendered and includes the fair and
reasonable value, as determined by the
Sec. of Labor, of board, lodging, or
other facilities customarily furnished by
the employer to the employee.
COMMISSION direct remunerations

received by an agent, salesman,
executor,
broker, or trustee calculated as a
percentage on the amount of his
transactions or on the profit to the
principal.
FAIR AND REASONABLE VALUE - shall

not include any profit to the employer or
to any person affiliated with the
employer.
FAIR DAYS WAGE FOR A FAIR DAYS
LABOR - if there is no work performed
by the employee, there can be no wage
or pay unless the laborer was able,
willing, and ready to work but was
prevented by management or was
illegally locked out, suspended or
dismissed.
WAGE
Compensation
manual labor
Corresponds
higher
degree
employment
FACILITIES shall include all articles or

services for the benefit of the employee
or his family but shall not include tools
of the trade or articles or services
primarily for the benefit of the employer
or necessary to the conduct of the
employers business.
LEGAL REQUIREMENTS
BEFORE
FACILITIES CAN BE DEDUCTED FROM
THE EMPLOYEES WAGES:
1.
Proof must be shown that such
facilities are customarily furnished
by the trade;
2.
The provision of deductible
facilities must be voluntarily
accepted in writing by the
employee; and
3.
The facilities must be charged at
fair and reasonable value.
SALARY
for
(Mabeza vs. NLRC; G.R. No.118506;

Apr.18,1997)
to
of
WHAT DOES WAGE OR SALARY

INCLUDE?
1. Commission
2. Facilities
3. Commodities/Supplements
GRATUITY something given freely

or without recompense to reward
employees who have rendered
satisfactory and efficient service
to the company.
FACILITIES
SUPPLEMENTS

CHAIRPERSONS
37
MEMORY AID
- items of expense
necessary for the
laborers and his
familys existence
and subsistence
Part of the wage

Deductible from the
wage
- constitute extra
remuneration or special
privileges or benefits
given to or received by
the laborers over and
above their ordinary
earnings wages
ART. 98. APPLICATION OF TITLE

Title on Wages apply to ALL
EMPLOYEES except the following:
1. farm tenancy or leasehold
2. household or domestic helpers
3. homeworkers engaged in needlework
4. workers
employed
in
any
establishment duly registered with
the National Cottage Industry
Development Authority (NACIDA)
5. workers
in
duly
registered
cooperatives
ART 99.
REGIONAL MINIMUM
WAGES
- minimum wage rates for agricultural
and nonagricultural employees and
workers in each and every region of the
country shall be those prescribed by the
Regional
Tripartite
Wages
and
Productivity Boards.
MINIMUM WAGE - lowest wage rate
fixed by law that an employer can pay
his employees.
The employer cannot exempt
himself from liability to pay
minimum wages because of poor
financial condition of the company;
the payment of minimum wages is
not dependent on the employers
ability to pay.
(De Racho v.
Municipality of Iligan, GR NO. L23542).
- The acceptance by an employee of the
wages paid him without objection does
not give rise to estoppel precluding him
from suing for the difference between
LABOR LAW COMMITTEE
LABOR LAW
the amount received and the amount he

should have received pursuant to a valid
minimum wage law where it does not
appear that the employer changed his
position to his own prejudice.
CHAPTER II
MINIMUM WAGE RATES
Independent of the wage

not wage deductible
IN
ART. 100. PROHIBITION AGAINST

ELIMINATION
OR
DIMINUTION
OF
BENEFITS
THE NON-DIMINUTION RULE
- Nothing in the Labor Code shall be
construed to eliminate or in any way
diminish supplements, or other
employee benefits being enjoyed at
the time of promulgation of this
Code.
benefits being given to

employees cannot be taken
back or reduced unilaterally by
the employer because the
benefit has become part of the
employment contract, written
or unwritten.
The rule is applicable if it is shown

that the grant of the benefit is:
1.
based
policy, or
on
an
express
2.
has ripened into practice

over a long period of time, and
the practice is consistent and
deliberate, and it is not due to
an
error
in
the
construction/application of a
doubtful or difficult question
of law.
But even in cases of error, it should

be shown that the correction is being
done soon after the discovery of the
error.
BONUS - A supplement or employment
benefit given under certain conditions,
such as success of the business or
greater production or output.
-
38
As a rule, it is an amount
granted
voluntarily
to
an
employee for his industry and
loyalty which contributed to the
success and realization of profits
of the employers business.
Therefore, from a legal point

of view, it is not a demandable
and
enforceable
obligation
unless it was promised to be
given without any conditions
imposed for its payment in which
case it is deemed part of the
wage.
Free rice, electricity cash and stock

dividends, COLA are NOT proper
substitutes for the 13th month pay.
An employee who has resigned or

whose services were terminated at any
time before the payment of the 13 th
month pay is entitled to this monetary
benefit in proportion to the length o
time he worked during the year
reckoned from the time of his
resignation or termination from service.
13TH
MONTH
EQUIVALENT)
PAY
(OR
It must always be in the form of

legal tender
Difference of opinion on how to
compute the 13th month pay does not
justify a strike.
Note: 13th Month Pay is tax exempt.

14TH MONTH PAY
- a misnomer because it is
basically a bonus and gratuitous
in character
- granting
thereof
is
a
management prerogative which
can not be forced upon the
employer.
PRODUCTIVITY INCENTIVES
-
Productivity Incentives Act of

1990
(RA 6971, November 22, 1990)
kind of bonus that comes from

productivity gain
aims to institute productivity at
company level and the sharing of
productivity
gain
between
employers and employees
nature of salary bonus is
proportionate to increases in
current productivity
employees whose positions are
reclassified from rank and file to
supervisory lose overtime pay
and other benefits under Arts.
82-96. Promotion produces the
same effect. But the promotion
and
position
reclassification
must be done in good faith. The
personnel movement should not
be intended to circumvent the
law to deprive employees of the
benefits they used to receive.
ITS
(see annex)
- additional income based on wage
required by P.D. 851 which is
equivalent to 1/12 of the total basic
salary earned by an employee within
a calendar year.
- may be given anytime but not later
than Dec. 24.
COVERAGE:
- All rank-and-file employees regardless
of their designation or employment
status and irrespective of the method by
which their wages are paid, are entitled
to this benefit, provided, that they have
worked for at least one (1) month
during the calendar year.
FORMS:
1. Christmas bonus
2. midyear bonus
3. profit sharing payments; and
4. other cash bonuses amounting to not
less than 1/12 of its basic salary.
ART. 101. PAYMENT BY RESULTS

CATEGORIES OF PIECE RATE
WORKERS (as to presence of control):
1. those who work directly under the
supervision
of
their
employer

CHAIRPERSONS
39
MEMORY AID
(usually termed as piece rate

worker)
2. those who work away from the
employers work premises and are
not directly supervised by the
employer (usually termed as pakiaw
or takay)
CATEGORIES OF PIECE RATE (as to rate
of payment)
1. those who are paid piece rates as
prescribed in Piece Rate Orders by
the DOLE
2. those who are paid output rates
which are prescribed by the
employer and are not yet approved
by the DOLE
WORKERS PAID ON PIECE-RATE BASIS
- those who are paid a standard amount
for every piece or unit of work produced
that is more or less regularly replicated,
without regard to the time spent in
producing the same.
BENEFITS PAYABLE TO PIECE-RATE
WORKERS WHOSE WORK IS DIRECTLY
SUPERVISED BY THE EMPLOYER:
1. Applicable statutory minimum daily
rate
2. Yearly service incentive leave of five
days with pay
3. Night shift differential pay
4. Holiday pay
5. Meal and rest periods
6. Overtime pay (conditional)
7. Premium pay (conditional)
8. 13th month pay
9. Other benefits granted by law,
individual or collective bargaining
agreements or company policy or
practice.
- The rules implementing the Labor Code
on night differential and service
incentive leave do not apply to
employees whose time and performance
is unsupervised by the employers,
including those who are engaged on task
or contract basis, purely commission or
those who are paid a fixed amount for
LABOR LAW COMMITTEE
IN
LABOR LAW
performing work irrespective of the time

consumed in the performance thereof.
CHAPTER III
PAYMENT OF WAGES
ART. 102. FORMS OF PAYMENT
EMPLOYER CANNOT PAY HIS WORKERS
BY MEANS OF:
1.
2.
3.
4.
5.
6.
7.
promissory notes;
vouchers;
coupons;
tokens;
tickets;
chits; or
any object other than legal tender
GENERAL RULE:
- payment by legal tender
EXCEPTIONS:
- payment by check or money order
may be allowed if the same is:
1. customary on the
effectivity of the LC;
date
of
2. necessary because of special

circumstances as determined by
the Sec. of Labor; or
3. stipulated in the CBA
4. or where the ff conditions are
met:
a)
b)
c)
d)
there is a bank or other facility

for encashment within a radius
of 1 kilometer from the
workplace;
the employer, or any of his
agent or representatives, does
not receive any pecuniary
benefit directly or indirectly
from the arrangement;
the employees are given
reasonable time during banking
hours to withdraw their wages
from the bank which time shall
be considered as compensable
hours worked if done during
working hours; and
the payment by check is with
the written consent of the
40
employees concerned if there is

no
CBA
authorizing
the
payment of wages by bank
checks.
ART. 103. TIME OF PAYMENT

WHEN TO PAY:
- at least once every two weeks; or
- twice a month at intervals not
exceeding 16 days.
in case of force majeure or

other circumstances beyond
the
employers
control,
payment must be made
immediately after such
occurrence has ceased.
If engaged to perform a task
which cannot be completed
in 2 weeks and in the
absence of CBA:
a) payment shall be made
at
intervals
not
exceeding 16 days, in
proportion
to
the
amount
of
work
completed;
b) that final settlement is
made upon completion
of the work.
ART. 104. PLACE OF PAYMENT

WHERE TO PAY:
- at or near the place of undertaking
EXCEPTIONS (Payment in a place other
than workplace):
1. When
payment cannot be
effected at or near the place of
work by reason of deterioration
of peace and order conditions,
or by reason of actual or
impending emergencies caused
by fire flood or other calamity
rendering
payment
thereat
impossible;
2. When the employer provides for

free transportation to the
employees back and forth; and
3. Under any other analogous
circumstances.
- No employer shall pay his
employees in any bar, night or day club,
drinking establishment, massage clinic,
dance hall, or other similar places or in
places where games are played with
stakes of money or things representing
money except in the case of persons
employed in said places.
PAYMENT THRU BANKS:
REQUISITES:
1. There
must
be
written
permission of the majority of the
employees concerned in an
establishment;
2. The establishment must have 25
or more employees; and
3. The establishment must be
located within one kilometer
radius to the bank.
payment through an ATM is

allowed.
ART.105.
WAGES
DIRECT
PAYMENT
OF
GENERAL RULE:
- wages shall be paid directly to the
workers to whom they are due.
EXCEPTIONS:
1. payment through another person
- in case of force majeure rendering
such payment impossible provided
said person is under written
authority given by the worker for the
purpose;
- when authorized under existing law,
including payments for insurance
premiums of the employee and union
dues where the right to check-off
has been recognized by the employer

CHAIRPERSONS
41
MEMORY AID
in accordance with a CBA or

authorized in writing by the
individual employees concerned
IN
LABOR LAW
Secretary of Labor or his

representative;
2.4 the representative shall act
as referee in dividing the
amount paid among the
heirs;
2.5 payment of wages under this
article shall absolve the
employer of any further
liability with respect to the
amount paid.
2. payment through heirs of worker

- in case where the worker has died
employer may pay wages of the
deceased worker to the heirs of the
latter without the necessity of
intestate proceedings.
Procedure:
JOB
CONTRACTING
LABOR ONLY
CONTRACTING
No E- E
Employer is treated as direct
relationship
employer of the person
except when the recruited in all instances
contractor or
(contractor is deemed agent
subcontractor
of the employer)
fails to pay the
EEs wages
Liability is limited liability extends to all rights
(shall be
duties and liabilities under
solidarily liable labor standards laws including
w/ ER only when the right to selforganization
latter fails to
comply with
requirements as
to unpaid wages
and other labor
standards
violations)
Permissible
3. payment
through
workers family
-
member
of
Where the employer is authorized in

writing by the employee to pay his
wages to a member of his family.
SUMMARY OF RULES ON PAYMENT OF

WAGES:
WHAT
Legal tender; promissory notes,
MUST BE vouchers, coupons, tokens, tickets,
PAID
chits, or any other object other than
legal tender is prohibited.
WHEN
Once every two weeks or twice a

month at intervals not exceeding
16 days.
WHERE
At or near the place of undertaking
HOW
Directly to the employee entitled

thereto
Prohibited by law
Presence of
Absence of substantial capital
substantial capital
or investment.
or investment.
2.1 claimants shall execute an

affidavit attesting their
relationship to the deceased
and the fact that they are
his heirs, to the exclusion of
all others;
2.2 in case of a minor heir,
affidavit shall be executed
on his behalf by his natural
guardian or next of kin;
2.3 affidavit shall be presented
to the employer who shall
make payment through the
LABOR LAW COMMITTEE
ART. 106.
SUBCONTRACTOR
CONTRACTOR
OR
TWO TYPES OF CONTRACTORS UNDER

THE LAW:
a) Labor-only contractor
b) Job contractor
LABOR ONLY CONTRACTING - where
the person supplying workers to an
employer does not have substantial
capital or investment in the form of
tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
42
performing activities which are directly

related to the principal business of such
employer.
Labor-only contracting is prohibited and
the person acting as contractor shall be
considered merely as an agent of the
employer who shall be responsible to
the workers in the same manner and
extent as if the latter were directly
employed by him.
JOB CONTRACTING an arrangement
whereby a principal agrees to put out or
farm out with a contractor or series of
contractor
the
performance
or
completion of a specific job, work or
service
within
a
definite
or
predetermined period, regardless of
whether such job, work, or service is to
be performed or completed within or
outside the premises of the principal.
INDEPENDENT CONTRACTOR - one who
carries on a distinct and independent
business and undertakes to perform the
job or to do a piece of work on its own
account and under its own responsibility,
according to his own manner and
methods and free from the control and
direction of the principal in all matters
connected with the performance of the
work except as to the results thereof.
-
A mere statement in a contract

with a company that laborers who
are paid according to the amount
and quality of work are independent
contractors does not change their
status as mere employees in
contemplation of labor laws.
ELEMENTS OF JOB CONTRACTING:

1. the contractor or subcontractor
carries on a distinct and independent
business and undertakes to perform
the job on his own account and
under
his
own
responsibility,
according to its own manner and
method and free from the control
and direction of the principal in all
matters
connected
with
the
performance of the work except as
to the results thereof;
2. the contractor or subcontractor has

substantial capital or investment;
and
3. the
agreement
between
the
principal
and
contractor
or
subcontractor
assures
the
contractual employees entitlement
to all labor and occupational safety
and health standards, free exercise
of the right to self-organization,
security of tenure and social and
welfare benefits
WHAT IS SUBSTANTIAL CAPITAL
- refers to the adequacy of resources

actually or directly used by the
contractor or subcontractor in the
performance or completion of the job,
work,
service
contracted
out.
Substantial capital need not be
coupled with investment in tools or
equipment. This is clear from the use
of the conjunction or.
SCOPE OF LIABILITY IN CONTRACTING
OR SUBCONTRACTING
when a contractor fails to pay
the wages of his employees in
accordance with the Labor Code,
the employer who contracted
out the job becomes jointly and
severally
liable
with
the
contractor to the extent of the
work performed under the
contract as if such employer
were the employer of the
contractors employees.
- The law itself, establishes an
employer-employee relationship
between the employer and the
job contractors employee for a
limited purpose, i.e. in order to
ensure the latter get paid the
wages due to them.
WORKING CONDITIONS - refers to the
terms and circumstances affecting the
employment of an employee, including
policies, programs and regulations
governing his employment status, work,
and work relationships. They are, as a
rule, determined by the employer.
-

CHAIRPERSONS
43
MEMORY AID
ART. 110. WORKER PREFERENCE IN

CASE OF BANKRUPTCY
PRINCIPLE:
- Workers shall enjoy first preference as
regards their unpaid wages and other
monetary claims, any provision of law to
the contrary notwithstanding.
Just establishes a preference and

not a lien;
Applicable only to ordinary preferred
credit, hence, must yield
to
special preferred credits, e.g.,
secured creditors
This Article did not sweep away the
overriding
preference
accorded
under the scheme of the Civil Code
to tax claims of the government.
conditions sine qua non to the
operation
of
the
preference
accorded to workers under Art. 110:
a. formal declaration of insolvency
or bankruptcy
b. general
judicial
liquidation
proceedings of the employers
business
c. filing of claims by workers
The worker preference is not

applicable in case the employer
corporation is under rehabilitation
(Rubberworld, Inc. vs. NLRC).
- Article 110 covers not only unpaid
wages but also all other monetary
claims.
LABOR LAW COMMITTEE
LABOR LAW
CHAPTER IV
PROHIBITIONS REGARDING WAGES
ART. 112. NON-INTERFERENCE IN
DISPOSAL OF WAGES
RELATED Civil Code PROVISIONS:
Art. 1705. The laborers wages shall be
paid in legal currency.
Art. 1706. Withholding of the wages,
except for a debt due, shall not be
made by the employer.
Art. 1707. The laborers wages shall be
a lien on the goods manufactured or the
work done.
Art. 1708. The laborers wages shall
not be subject to execution or
attachment except for debts incurred
for food, shelter, clothing, and medical
attendance.
.Art. 1709. The employer shall neither
seize nor retain any tool or other
articles belonging to the laborer.
PROHIBITIONS REGARDING WAGES:
1.
2.
3.
ART 111. ATTORNEYS FEES

a. In cases of unlawful withholding of
wages, the culpable party may be
assessed attorneys fees equivalent
to 10% of the amount of wages
recovered.
b. It shall be unlawful for any person to
demand or accept, in any judicial or
administrative proceedings for the
recovery of the wages, attorneys
fees which exceed 10% of the
amount of wages recovered.
(see discussions in Art.222)
Attorneys fees presuppose
atty-client relationship.
IN
4.
5.
6.
Payment of wages with less

frequency than once (1) a month.
Limitations/interference
by
the
employer with the employees'
freedom to dispose of his wages.
Forcing,
compelling/obliging
employees to purchase merchandise,
commodities or other properties
from the employer or from any other
person, or to make use of any store
or service of such employer or any
other person.
Withholding of wages.
Deduction of wages as consideration
of a promise of employment or
retention in employment.
Refusal to pay/reduction of wages
and
benefits,
discharge/
discrimination against any employee
as retaliatory measures against any
employee who has filed any
complaint
or
instituted
any
proceedings against his employer.
44
ART. 113. WAGE DEDUCTIONS

GENERAL RULE.
- Wage deduction is strictly prohibited.
EXCEPTIONS (ALLOWABLE
DEDUCTIONS):
A. WITH EMPLOYEES CONSENT:
1. SSS payments
2. PHILIHEALTH payments
3. Contributions to PAG-IBIG Fund
4. value of meals and other
facilities
5. payments to third persons with
employees consent
6. deduction of absences
B. WITHOUT EMPLOYEES CONSENT:
1. workers insurance acquired by
the employer
2. union dues, where the right to
check-off has been recognized
by the employer
3. cases where the employer is
authorized by law or regulations
issued by the Secretary of Labor
4. debts of the employee to the
employer which have become
due and demandable
ART 114. DEPOSITS FOR LOSS OR
DAMAGE
GENERAL RULE:
- No employer shall require his worker
to make deposits for the reimbursement
of loss of or damage to material,
equipment, or tools supplied by the
employer.
EXCEPTION:
- When the trade, occupation or
businesses of the employer recognizes,
or considers the practice of making
deductions
or
requiring
deposits
necessary or desirable.
REQUISITES OF DEDUCTION FOR LOSS
OR DAMAGE:
1. the employee is clearly shown to

be responsible for the loss or
damage;
2. the employee is given ample
opportunity to show cause why
deduction should not be made;
3. the amount of the deduction is
fair and reasonable and shall not
exceed the actual loss or
damage; and
4. the
deduction
from
the
employees wage does not
exceed 20 percent of the
employees wages in a week.
10 COMMANDMENTS FOR THE
EMPLOYER:
1. No employer shall interfere with
the employees freedom to
dispose of his wages; ART 112
NON-INTERFERENCE
IN
DISPOSAL OF WAGES
2. No employer shall
force,
compel, or oblige employees to
purchase
merchandise,
commodities or other property
from the employer or from any
other person, or otherwise make
use of any store or services of
such employer or any other
person;
ART
112
NONINTERFERENCE IN DISPOSAL OF
WAGES
3. No employer shall make any
deductions from the employees
wages except when authorized
to do so; ART 113 WAGE
DEDUCTION
4. No employer shall require the
worker to make deposits from
which deductions shall be made
for reimbursement of loss of or
damage to tools, materials, or
equipment supplied by the
employer except when the
employer is engaged in such
business requiring such deposits
as determined by the Secretary
of Labor; ART 114 DEPOSITS
FOR LOSS OR DAMAGE

CHAIRPERSONS
45
MEMORY AID

deduction from the employees
deposits for the actual amount
of the loss or damage unless the
employee has been heard
thereon and his responsibility
has been clearly shown; ART 115
LIMITATIONS
6. No employer shall withhold any
amount from the wages unless
authorized to do so; ART 116
WITHHOLDING OF WAGES &
KICKBACKS PROHIBITED
7. No employer shall induce the
employee to give up any part of
his wages by force, stealth,
intimidation, threat or dismissal
or by any other means without
his (worker) consent; ART 116
WITHHOLDING OF WAGES &
KICKBACKS PROHIBITED
8. No
employer
shall
make
deductions as consideration of a
promise of employment or
retention of employment; ART
117 DEDUCTION TO ENSURE
EMPLOYMENT
9. No employer shall refuse to pay
or reduce the wages and benefits
or otherwise discharge the
employee who has filed any
complaint under this Title, or
has testified or is about to
testify in such proceedings; ART
118 RETALIATORY MEASURES
statement, report or record
knowing such statement, report
or record to be false in any
material respect. ART 119
FALSE REPORTING
CHAPTER V
WAGE STUDIES, WAGE AGREEMENTS
AND WAGE DETERMINATION
IN
LABOR LAW
ART 122. CREATION OF THE

REGIONAL TRIPARTITE WAGES AND
PRODUCTIVITY BOARDS
WHO MAY SET MINIMUM WAGE:
1. Regional Tripartite Wages
Productivity Board (RTWPB)
2. Congress
and
COMPOSITION OF RTWPB:
1.
2.
3.
4.
Regional Director of DOLE

2 members form the employer
sector
5. 2 members form the employee
sector
6. Secretariat
MINIMUM WAGE - The lowest wage
rate fixed by law that an employer can
pay his employees.
ART. 123. WAGE ORDER
WAGE ORDER an order issued by the
Regional Board whenever the conditions
in the region so warrant after
investigating and studying all pertinent
facts and based on the standards and
criteria prescribed by the LC, the
Regional Board proceeds to determine
whether to issue the same or not.
EFFECTIVITY OF A WAGE ORDER
it shall take effect after 15 days from
the its complete publication in at least
one newspaper of general circulation in
the region.
FREQUENCY OF A WAGE ORDER
A wage Order issued by the Board may
not be disturbed for a period of 12
months from its effectivity and no
petition for wage increase shall be
entertained during said period.
EXCEPTION: When Congress itself issues
a law increasing wages.
ART. 124. STANDARDS/CRITERIA FOR

MINIMUM WAGE FIXING
LABOR LAW COMMITTEE
46
OTHER RELEVANT FACTORS FOR

DETERMINING REGIONAL MINIMUM
WAGE RATES:
1. Demand for living wages;
2. Wage Adjustment vis--vis the
consumer price index;
3. Cost of living and changes or
increases therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in
the countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested
and capacity to pay of employers;
9. Effects on Employment Generation
and Family Income; and
10. Equitable Distribution of Income &
Wealth along the imperatives of
economic and social development
WAGE DISTORTION a situation where
an increase in prescribed wage rates
results in the elimination or severe
contraction of intentional quantitative
differences in wage or salary rates
between and among employee groups in
an establishment as to effectively
obliterate the distinctions embodied in
such wage structure based on skills,
length of service or other logical bases
of differentiation.
CORRECTION OF WAGE DISTORTION
A. Unionized Establishment
1. Negotiate to correct the distortion
2. Any dispute arising therefrom
should
be
resolved
through
grievance procedure under their
CBA
3. If the dispute remains unresolved,
through voluntary arbitration
B.
Establishments Without Unions

1. The employers and workers shall
endeavor
to
correct
the
distortion.
2. Any dispute arising therefrom
shall be settled through the
NCMB and
3. If it remains unresolved after 10
days of conciliation, it shall be
referred to the NLRC.
N.B.: Wage distortion is non-strikeable.

IS THE EMPLOYER LEGALLY OBLIGED
TO CORRECT A WAGE DISTORTION?
- It appears so. Article 124 of the Code
provides that the employer and the
union shall negotiate to correct the
distortions. If there is no union, the
employer and the workers shall endeavor
to correct such distortions.
MUST THE PREVIOUS PAY GAPS BE
RESTORED?
While that is the aim, it need not
necessarily be restored to the last peso.
An
appreciable
differential,
a
significant pay gap should suffice as
correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 128. VISITORIAL

ENFORCEMENT POWER
AND
VISITORIAL POWER
- Power of the Sec. of Labor or any
of his duly authorized representative to
have access to employers records and
premises at any time of the day or night
whenever work is being undertaken
therein.
includes the right to copy
therefrom, to question any
employee & investigate any fact,
condition or matter which may
be necessary to determine
violations or which may aid in
the enforcement of the Code
and of any labor law, wage order,
or rules and regulations.
duly authorized representative
herein is the Regional Director.
ENFORCEMENT POWER (as amended
by RA 7730)
- Power of the Sec. of Labor
to
compel employer to comply with labor
standards upon finding
of violations

CHAIRPERSONS
47
MEMORY AID
discovered in the course of the exercise

of the visitorial power.
- Among the powers are the power to:
1. Issue Compliance Orders based on
the findings of labor employment
and
enforcement
officers
or
industrial safety engineers made in
the course of inspection.
2. Issue Writs of Execution for the
enforcement of orders except in
cases where the employer contests
the findings of the said labor officers
and raises issues supported by
documentary proofs which were not
considered in the course of
inspection.
3. Order Work Stoppage/Suspension of
Operations when non-compliance
with the law or implementing rules
and regulations poses grave &
imminent danger to the health and
safety of the workers in the
workplace.
4. Conduct hearings within 24 hours to
determine whether:
a. an order for stoppage of
work/suspension of operations shall
be lifted or not.
b. employer shall pay the
employees concerned their salaries
in case the violation is attributable
to his fault
PROCEDURE:
COMPLAINT or ROUTINE INSPECTION
ACTUAL INSPECTION
(inspector lists the
violation
in
his
checklist)
INSPECTORS FINDING
OF VIOLATION
ISSUANCE OF COMPLIANCE ORDER
In case of non-compliance
ISSUANCE OF WRIT OF NON-COMPLINACE
In case party disagrees
with RDs finding
HEARING
DECISION
LABOR LAW COMMITTEE
IN
LABOR LAW
MR
APPEAL
(8-10 days w/ Sec. of labor)
WORK STOPPAGE
INSTANCES WHEN ENFORCEMENT

POWER MAY NOT BE USED
1. case does not arise from the
exercise of visitorial power
2. when er-ee relationship ceased
to exist at the time of the
inspection
3. if employer contests the finding
of the labor regulation officer
and such contestable issue is not
verifiable in the normal course
of inspection.
ART. 129. RECOVERY OF WAGES,
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS
REQUISITES:
1. The aggregate money claim of each
employee or househelper does not
exceed P5, 000.00
2. The claim is presented by an
employee or person employed in
domestic or household service or
househelper;
3. The claim arises from employeremployee relations;
4. The claimant does not seek
reinstatement;
In the absence of any of the requisites,
it is the labor arbiter who shall have
exclusive jurisdiction over claims arising
from employer employee relations,
except
claims
for
employees
compensation, SSS, Philhealth and
maternity benefits, pursuant to Article
217of the Labor Code.
- the proceedings before the Regional
Office shall be summary and nonlitigous in nature .
ADJUDICATORY POWER
the Regional Director or any of
his duly authorized hearing
officer is empowered through
summary proceeding and after
48
due notice, to hear and decide

cases involving recovery of
wages and other monetary
claims and benefits, including
legal interests.
TITLE III
WORKING CONDITIONS FOR SPECIAL
GROUP OF EMPLOYEES
CHAPTER I
EMPLOYMENT OF WOMEN
ART. 130. NIGHTWORK PROHIBITION
No woman, regardless of age, shall

be employed or permitted or
suffered to work, with or without
compensation in any :
-Industrial
undertaking between
10PM and 6AM
-Commercial/Non-Industrial
undertaking between 12 MN and
6AM
-Agricultural
undertaking
at
nighttime unless she is given a
HOW
Enforcement
Power is
offshoot of
visitorial
power
Initiated by
sworn
complaint
filed by the
interested
party
LIMITATIONS
AS TO
AMT. OF
CLAIM
No limit as to
amount of
claim
Aggregate
claim of
each
complainant
does not
exceed
P5,000
APPEAL
Appeal is with
Sec. of Labor;
period of
appeal is 10
calendar days
Appeal with
NLRC;
period of
appeal is 5
calendar
days
INITIATED
WHO
period of rest of not less than 9

consecutive hours
ART. 131. EXCEPTIONS
The prohibitions prescribed by Article
130 shall not apply in any of the
following cases:
1. In cases of actual or impending
emergencies caused by serious
accident, fire, flood, typhoon,
disasters or calamity, to prevent
loss of life or property, or in
cases of force majeure or
imminent danger to public
safety;
2. In cases of urgent work to be
performed on the machineries,
equipment or installation, to
avoid serious loss which the
employer
would
otherwise
suffer;
3. Where the work is necessary to
prevent serious loss of perishable
goods;
4. Where the woman employee holds
a
responsible
position
of
managerial or technical nature,
or where the woman employee
has been engaged to provide
health and welfare service;
5. Where the nature of the work
requires the manual skill and
dexterity of women workers and
the same cannot be performed
with equal efficiency by male
workers;
6. Where the women employees are
immediate members of the
family
operating
the
establishment or undertaking;
and
7. Under other analogous cases
exempted by the Secretary of
Labor in appropriate regulations.
ART 132. FACILITIES FOR WOMEN
- The Secretary of Labor may require
employers to:
1. Provide seats proper for women
and permit them to use the
seats when they are free from
work or during office hours
Person
The power is
exercising the
vested upon
POWER
power is the
a regional
Sec. Of 2005
Labor CENTRALIZED
director or BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT
CHAIRPERSONS
or any of his
any duly
duly
authorized
Tolentino(VC-Acads),
Jennifer
Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VCEDP), authorized
Anna Margarita Eres
(VC-Logistics) Jonathan
hearing
Mangundayao
(Political Law), Francis
Benedict Rotutar (Labor Law), Romuald Padilla (Civil Law),
representatives
officer of
who
or Law),the
DOLE.
Law), Jinky Ann
Uymay
(Remedial
Jackie
Lou Bautista (Legal Ethics)
may not be a
Regional
Director
EXERCISES
49
MEMORY AID
provided the quality of the work

will not be compromised;
2. Establish separate toilet rooms
and lavatories for men and
women and provide at least a
dressing room for women;
3. Establish a nursery in the
establishment; and
4. Determine appropriate minimum
age and other standards for
retirement or termination in
special occupations such as those
of flight attendants and the like.
ART.
BENEFITS
133.
MATERNITY
LEAVE
MATERNITY LEAVE UNDER THE SSS

LAW
- A female member, who need
not be legally married, who
has paid for at least three (3)
monthly contributions in the
12-month period immediately
preceding the semester of her
childbirth or miscarriage shall
be paid a daily maternity
benefit equivalent to 100% of
her average daily salary credit
for 60 days or 78 days, in case
of caesarian delivery.
-
Maternity benefits provided

herein shall be paid only for
the first four (4) deliveries or
miscarriages;
Maternity benefits like other

benefits granted by the SSS,
are granted in lieu of wages
and therefore, may not be
included in computing the
employees 13th month pay for
the calendar year.
QUALIFICATIONS FOR ENTITLEMENT:

1. The female employee should be
employed at the time of the
delivery,
miscarriage,
or
abortion;
2. The employee shall have notified
her employer of her pregnancy
and the probable date of her
childbirth, which notice shall be
transmitted to the SSS in
LABOR LAW COMMITTEE
IN
LABOR LAW
accordance with the rules and

regulations it may provide;
3. That full payment shall be
advanced by the employer within
thirty (30) days from the filing of
the maternity leave application;
and
4. That payment of daily maternity
benefits have been received;
Is it necessary that a woman be
impregnated by her legitimate spouse?
No. it is immaterial who the father is.
Every pregnant woman in the private
sector, whether married or unmarried, is
entitled to the maternity leave benefits.
OTHER IMPORTANT CONDITIONS:
That
the
SSS
shall
immediately
reimburse
the
employer
of
one
hundred
percent (100%) of the amount of
maternity benefits advanced to
the employee by the employer
upon receipt of satisfactory
proof of such payment and
legality thereof; and
That if an employee member

should give birth or suffer
miscarriage without the required
contributions
having
been
remitted for her by her employer
to the SSS, or without the latter
having been previously notified
the employer of the time of the
pregnancy, the employer shall
pay to the SSS damages
equivalent to the benefits which
said employee would otherwise
have been entitled to.
EXTENSION OF MATERNITY LEAVE ART
133 (b)
- the maternity leave shall be
extended
without
pay
on
account of illness medically
certified to arise out of the
pregnancy, delivery, abortion, or
miscarriage, which renders the
woman unfit for work , unless
she has earned unused leave
credits
from
which
such
extended leave may be charged.
50
PATERNITY
LEAVE
(RA 8187 , July
5,1996)
Grants paternity leave of 7 days with

full pay, consisting of basic salary, to
all married male employees in the
public and private sector.
Available only for the first 4
deliveries of the legitimate spouse
with
whom
the
husband
is
cohabiting;
the
term delivery
includes childbirth, miscarriage or
abortion.
In the event that such leave was not
availed of, said leave shall not be
convertible to cash.
contraceptive
devices.
APPLICATION OF LEAVE:
Must be made:
1. within a reasonable time from
the expected date of delivery by
the pregnant spouse.
2. within such period as may be
provided by company rules &
regulations or CBA.
prior application for leave shall NOT
be required in case of miscarriage.
ART. 134. FAMILY PLANNING
SERVICES
- Employers who habitually employ
more than two hundred (200) workers in
any locality shall provide free familyplanning services to their employees and
their spouses which shall include but not
limited to, the application or use of
and
intrauterine
ART.
135.
DISCRIMINATION
PROHIBITED
- It shall be unlawful for any employer
to discriminate against any woman
employee with respect to terms and
conditions of employment solely on
account of her sex.
ACTS OF DISCRIMINATION:
a. Payment of a lesser compensation

for work of equal value.
b. Favoring a male employee over a
female employee solely on the

account of their sexes.
PURPOSE: to enable the husband to lend

support to his wife during the period of
recovery and/ or in the nursing of the
newly born child.
CONDITIONS FOR ENTITLEMENT:
1. He is an employee at the time of
the delivery of his child;
2. He is cohabiting with his spouse at
the time she gives birth or suffers
a miscarriage;
3. He has applied for paternity leave
with his employer;
4. His wife has given birth or suffered
a miscarriage; the term wife refers
to the lawful wife which means
the woman who is legally married
to the male employee concerned.
pills
ART. 136. STIPULATION AGAINST

MARRIAGE
-
it shall be unlawful for an employer:

1. to require as a condition for
employment or continuation of
employment that a woman
employee shall not get married,
2. to stipulate expressly or tacitly
that upon getting married a
woman employee shall be
deemed resigned or separated
3. to actually dismiss, discharge,
discriminate
or
otherwise
prejudice a woman employee
merely by reason of her
marriage.
ART. 137. PROHIBITED ACTS

-It shall be unlawful for
employer:
an
1. To
discharge
any
woman
employed by him for the purpose
of preventing such woman from
enjoying the maternity leave,
facilities and other benefits
provided under the Code;
2. To discharge
such
woman
employee on account of her
pregnancy, or while on leave or
in confinement due to her
pregnancy;
3. To discharge or refuse the
admission of such woman upon

CHAIRPERSONS
51
MEMORY AID
returning to her work for fear

that she may be pregnant;
4. To discharge any woman or child
or any other employee for having
filed a complaint or having
testified or being about to
testify under the Code;
ART. 138. CLASSIFICATION
CERTAIN WOMEN WORKERS
CHAPTER II
EMPLOYMENT OF MINORS
(see RA 7610 annex )
ART. 139. MINIMUM EMPLOYABLE

AGE
GENERAL RULE: No child below 15
shall be employed.
CONDITIONS ON THE EMPLOYMENT OF
A CHILD BELOW 15:
1. When the child works directly under
the sole responsibility of his/her
parents or legal guardian who
employs members of his/her family
only under the following conditions:
employment does not endanger the
childs life, safety, health and
morals;
b. employment does not impair the
childs normal development; and
c. the parent/legal guardian provides
the child with the primary and/or
secondary education prescribed by
DECS.
LABOR LAW
information through cinema, theater,

radio, or television is essential, provided
that:
a. employment does not involve
advertisements
or
commercials
promoting
alcoholic
beverages,
intoxicating drinks, tobacco and its
by-products or exhibiting violence;
b. There is a written contract
approved by the DOLE; and
c. The conditions prescribed for the
employment of minors {above
stated} are met.
OF
- Any woman who is permitted

to work or suffered to work, with
or without compensation, in any
night
club, cocktail lounge,
massage clinic, bar or similar
establishment, under the effective
control or supervision of the
employer for a substantial period
of time as determined by the
Secretary of Labor, shall be
considered as an employee of such
establishment for purposes of
labor and social legislation.
IN
Any person between the ages of 15

and 18 may be employed in any nonhazardous work.
NON-HAZARDOUS
WORK
OR
UNDERTAKING
one where the employee is not exposed
to any risk which constitutes an
imminent danger to his safety and
health.
HAZARDOUS WORKPLACES:
1. where the nature of the work
exposes the workers to dangerous
environmental
elements,
contaminants or work conditions;
2. where the workers are engaged in
construction work, logging, firefighting, mining, quarrying, blasting,
stevedoring, dock work, deep-sea
fishing, and mechanized farming;
3. where the workers are engaged in
the manufacture or handling of
explosives and other pyrotechnic
products;
4. where the workers use or are
exposed to heavy or power-driven
machinery or equipment; and
5. where the workers use or are
exposed to power-driven tools,
a.
2. Where the childs employment or

participation in public entertainment or
LABOR LAW COMMITTEE
CHAPTER III
EMPLOYMENT OF HOUSEHELPERS
ARTS. 141-152
RIGHTS OF HOUSEHELPERS:
(Articles 1689 1699, NCC)
52
1. non-assignment
to
nonhousehold work
2. Reasonable compensation
(minimum cash wage)
3. Lodging, food, and medical
attendance
4. If under 18 years old, an
opportunity
for
elementary
education
cost of which shall be part
of househelpers compensation
5. Contract for household service
shall not exceed 2 years.
- Renewable however from year to
year
6. Just and humane treatment
7. Right not to be required to work
for more than 10 hours a day
If the househelper agrees to
work overtime, and there is
additional compensation, the
same is permissible
8. Right to four days vacation each
month with pay
If the helper does not ask
for the vacation, the number of
vacation
days
cannot
be
accumulated, he is entitled only
to its monetary equivalent.
9. Funeral expenses must be paid
by
the
employer
if
the
househelper has no relatives
with sufficient means in the
place where the head of the
family lives
10. Termination only for a just
cause.
11.
Indemnity
for
unjust
termination of service
12. Employment certification as to
nature and duration of service
and efficiency and conduct of
the househelper.
ART. 149. INDEMNITY FOR UNJUST
TERMINATION OF SERVICE
SUMMARY OF RULES :
1. If the period for household

service is fixed, neither the
employer nor the househelper
may terminate the contract
before the expiration of the
term, except for a just cause.
2. If the househelper is unjustly
dismissed, he or she shall be
paid the compensation already
earned plus that for fifteen (15)
days by way of indemnity.
3. If
the
househelper
leaves
without justifiable reason, he or
she shall forfeit any unpaid
salary due him or her not
exceeding fifteen (15) days.
ART. 151. EMPLOYMENT FOR
CERTIFICATION
- Upon the severance of the
household service relationship, the
househelper may demand from the
employer a written statement of the
nature and duration of the service and
his or her efficiency and conduct as
househelper.
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
ARTS. 153-155
ART.
153.
REGULATION
INDUSTRIAL HOMEWORKERS
-
OF
Rule
shall
apply
to
any
homeworker who performs in or
about his home any processing of
goods or materials, in whole or
in part, which have been
furnished directly or indirectly
by an employer and thereafter
to be returned to the latter.

CHAIRPERSONS
53
MEMORY AID
ART. 155.
HOMEWORK
DISTRIBUTION
OF
EMPLOYER OF HOMEWORKERS :
- any natural or artificial person who,
for his own account or benefit, or on
behalf of any person residing outside
the Philippines, directly or indirectly,
or through any employee, agent,
contractor, sub-contractor; or any
other person:
(1) Delivers or causes to be
delivered any goods or articles
to be processed in or about a
home and thereafter to be
returned or to be disposed of or
distributed in accordance with
his direction; or
(2) Sells any goods or articles for the
purpose of having such goods or
articles processed in or about a
home and then repurchases them
himself or through another after
such processing.
BOOK IV
HEALTH, SAFETY AND SOCIAL WELFARE
BENEFITS
TITLE I
MEDICAL, DENTAL AND OCCUPATIONAL
SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART. 156. FIRST-AID TREATMENT
FIRST-AID TREATMENT adequate,

immediate and necessary medical
and dental attention or remedy
given in case of injury or illness
LABOR LAW COMMITTEE
IN
LABOR LAW
suffered by a worker during

employment, irrespective of whether
or not such injury or illness is workconnected, before a more extensive
medical and/or dental treatment
can be secured.
FIRST-AIDER any person trained and
duly certified as qualified to administer
first aid by the Philippine National Red
Cross or by any other organization
accredited by the former.
TITLE II
EMPLOYEES COMPENSATION AND STATE
INSURANCE FUND
WORKMENS COMPENSATION a
general and comprehensive term
applied to those laws providing for
compensation for loss resulting from
the injury, disablement or death of a
workman
through
industrial
accident, casualty or disease.
COMPENSATION money relief
offered according to the scale
established under the statue as
differentiated from compensatory
damages recoverable in an action at
law for breach of contract or for
tort.
WORKMENS
COMPENSATION
ACT
EMPLOYEES
COMPENSATION
LAW
1. there is a
presumption of
compensability
1.
no
presumption
of
compensability
2. there is a
presumption of
aggravation
2.
presumption
aggravation
3. There is a
need for the
employer
to
controvert
the
claim within 14
days
otherwise
he is deemed to
have waived the
right
3. no need for
the employer to
controvert
the
claim
no
of
54
CONDITIONS for an occupational

disease and the resulting disability or
death to be compensable:
4. payment of
compensation is
made by the
employer
4. payment of
the compensation
is made by the
SSS/GSIS thru the
State Insurance
Fund
ART. 167. DEFINITION OF TERMS

INJURY any harmful change in the
human organism from any accident
arising out of and in the course of
employment
Conditions for an injury to be

compensable:
1. the employee must have been

injured at the place where the work
requires him to be.
2. the employee must have been
performing his official functions.
3. if the injury is sustained elsewhere,
the employee must have been
executing an order for the employer.
4. The injury was not due to the
employees
intoxication,
willful
intention to injure or kill himself or
another, notorious negligence or as
otherwise provided under this Title.
Injuries incurred by a health worker
while doing overtime work shall be
presumed work-connected. (Magna
Carta for Public Health Workers)
SICKNESS - any illness accepted as an
occupational disease listed by the
Commission or any illness caused by
employment subject to proof that the
risk of contraction the same is increased
by working conditions
1. the employees work must involve

the risk described therein
2. the disease was contracted as a
result of the employees exposure to
the described risks
3. the disease was contracted within
the period of exposure and under
such factors necessary to contract it;
and
4. there was no notorious negligence on
the part of the employee
DEATH- loss of life resulting form injury
or sickness
DISABILITY loss or impairment of a
physical or mental function resulting
form injury or sickness
DIRECT PREMISES RULE as a general
rule, the accident should have occurred
at the place of work to be compensable.
EXCEPTIONS TO THE DIRECT PREMISES
RULE:
1. INGRESS-EGRESS/ PROXIMITY RULE
When the injury is sustained when
the employee is proceeding to or
from his work on the premises of the
employer, the injury is compensable.
2. GOING TO OR COMING FROM WORK
-When the injury is sustained when
the employee is proceeding to or
from his work on the premises of the
employer, the injury is compensable.
a. the act of the employee of going
to, or coming from, the work
place, must have been a
continuing act, that is, he had
not been diverted therefrom by
any other activity, and he had
departed form his usual route to,
or from, his workplace; and
b. an employee on a special errand
must have been official and in
connection with his work
3. EXTRA-PREMISES RULE (the Shuttle

CHAIRPERSONS
55
MEMORY AID
IN
LABOR LAW
Bus Rule) the company which

provides the means of transportation
in going to or coming from the place
of work is liable to the injury
sustained by the employees while on
board said means of transportation.
ART 170.
EFFECTIVE
DATE
OF
COVERAGE
- The
employer
is
covered
compulsorily form the first day of
operation and the employee from
the first day of employment.
4. SPECIAL ERRAND RULE injury

sustained outside the company
premises is compensable if his being
out is covered by an office order or a
locator slip or a pass for official
business.
ART. 172 LIMITATIONS OF LIABILITY

- NO COMPENSATION can be obtained
if the injury, death or disability is a
result of the employees:
1.intoxication;
2.willful intention to injure or kill
himself or another;
3.notorious negligence; or
4.otherwise provided by the Labor
Code
5. DUAL PURPOSE DOCTRINE allows

compensation where a special trip
would have to be made for the
employer if the employee had not
combined the service for the
employer with his going or coming
trip.
6. SPECIAL ENGAGEMENT RULE
covers
field
trips,
outings,
intramurals
and
picnics
when
initiated and sanctioned by the
employer.
7. POSITIONAL AND LOCAL RISKS
DOCTRINE if an employee by
reason of his duties is exposed to a
special or peculiar danger from the
elements, that is, one greater than
that to which other persons in the
community are exposed and an
unexpected injury occurs, the injury
is compensable.
NOTORIOUS NEGLIGENCE deliberate

act of the employee to disregard to his
own personal safety.
Is death through suicide compensable?
As a rule, NO. However, as held in NAESS
vs NLRC, the SC held that a self-inflicted
death could be compensable:
1. by agreement of the parties;
2. if the suicide/death is caused by
work-related or compensable illness
or disease
ART. 173 EXTENT OF LIABILITY
-
Simultaneous recovery under the

Labor Code and the Civil Code
cannot be made. The action is
selective and the employee may
either choose to file the claim under
either. But once the election is
made, the claimant cannot opt for
the other remedy.
Simultaneous recovery under the

Labor Code and the SSS can be made
(as per an advisory opinion of Sec.
Drilon dated May 23, 1989) since PD
1921 has lifted the ban on
simultaneous recovery.
CHAPTER II
COVERAGE AND LIABILITY
ART. 168 COMPULSORY COVERAGE

-
ECL applies to all employers, public

or private, and to all employees,
public or private including casual,
emergency, temporary, or substitute
employees.
An employee who is over 60 years of
age and paying contributions to
qualify for the retirement or life
insurance benefit administered by
the system shall be subject to
compulsory coverage.
LABOR LAW COMMITTEE
STATE INSURANCE FUND : all covered

employees are required to remit to a
common fund a monthly contribution
equivalent to 1% of the monthly salary
credit of every covered employee. The
employee pays no contribution to the
56
fund. Any agreement to the contrary is

prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES:
TEMPORARY TOTAL if as a result of the

injury or sickness, the employee is
unable
to
perform
any
gainful
occupation for a continuous period not
exceeding 120 days
PERMANENT TOTAL if as a result of the
injury or sickness, the employee is
unable
to
perform
any
gainful
occupation for a continuous period not
exceeding 120 days
PERMANENT PARTIAL - if as a result of
the injury or sickness, the employee
suffers a permanent partial loss of the
use of any part of his body.
DEATH BENEFITS
- The System shall pay to the primary
beneficiaries upon the death of the
covered employee an amount equal
to his monthly income benefit, plus
ten percent thereof for each
dependent child, but not exceeding
five, beginning with the youngest
and without substitution. The
income benefit shall be guaranteed
for five years.
DEPENDENTS:
1. the legitimate, legitimated, and
legally adopted or acknowledged
natural child who is unmarried, not
gainfully employed and not over 21
years of age or over 21 years of age
provided that he is incapable of selfsupport due to a physical or mental
defect which is congenital or
acquired during minority
2. legitimate spouse living with the
employee
3. the parents of said employee wholly
dependent upon him for regular
support
BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there
are not primary beneficiaries
3. in no case shall the total benefit be
less than P15,000.00
BENEFICIARIES
PRIMARY BENEFICIARIES
A. dependent
spouse
until
he
remarries
B. dependent children (legitimate,
legitimated, natural born or legally
adopted)
SECONDARY BENEFICIARIES
A.
illegitimate children and legitimate
descendants
B.
parents,
grandparents,
grandchildren
TITLE III
MEDICARE
(Repealed by National Health Insurance
Act of 1995)
(See annex for PHILHEALTH)
PAG-IBIG Law- creates a provident
savings system for employees, public and
private, with housing as the primary
investment.
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART. 211. DECLARATION OF
POLICY
LABOR RELATIONS the interactions
between the employer and employees
and their representatives and the
mechanism by which the standards and
other
terms
and
conditions
of

CHAIRPERSONS
57
MEMORY AID
employment are negotiated, adjusted

and enforced.
LABOR RELATIONS LAW those
intended to stabilize the relations of
employees and their employers, adjust
differences between them through the
encouragement of collective bargaining,
and settle labor disputes through
conciliation, mediation and arbitration.
it defines the status, rights, and

duties and the institutional
mechanisms that govern the
individual
and
collective
interactions
of
employers,
employees
or
their
representatives.
Absent an employer-employee
relation, there is no labor
relations to speak of.
Collective bargaining process is
possible only when there is a labor
organization, i.e., (1) labor union
or (2) employee association.
POLICY is intended to install industrial

democracy centered on collective
bargaining, leading to social justice as
the end goal.
PARTIES TO LABOR RELATIONS CASES:
1. employees organization,
2. management, and
3. the public
The public is always to be
considered in disputes between
labor and capital, and it has
been held that the rights of the
general public are paramount.
Labor relations policy under the LC is
embodied in Section 3 Article XIII of
the 1987 Constitution which guarantees
to all workers their right among others
to:
1. Self-organization,
2. Collective
bargaining
and
negotiations,
3. Peaceful and concerted activities
including the right to strike in
accordance with law, and
LABOR LAW COMMITTEE
IN
LABOR LAW
4. Participate
in
policy
and
decision-making
processes
affecting
their
rights
and
benefits as may be provided by
law.
EMPLOYER- one who employs the
services of others; one for whom
employees work and who pays their
wages or salaries.
any person acting in the interest of an
employer, directly or indirectly. The
term does not include a labor
organization or any of its officers and
agents, EXCEPT when acting as an
employer.
EMPLOYEE- one who works for an
employer; a person working for salary or
wages.
Shall not be limited to the
employees of a particular
employer, and 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:
1. Substantially equivalent
and
2. Regular employment
(Art.212f)
ICAWO vs. CIR (16 SCRA 562): The
category of any employee is so broad
as to justify employee status for
supervisors, regular workers, casual
employees,
emergency
laborers,
substitute workers, seasonal workers,
part-time workers and other special
work groups.
APEX MINING CO., vs. NLRC (196 SCRA
251): Laundrywoman not actually
serving the family of the employer but
working in the staff houses or within the
premises of the employers business is a
regular employee and is not included in
the definition of domestic helper.
FELIX vs. BUENASEDA (240 SCRA 139):
Residency or resident physician position
in a medical specialty is not employment
58
but connotes training and temporary

status. (No E-E relationship)
WORKERS ASSOCIATION - any
association of workers organized for the
mutual aid and protection of its
members or for any legitimate purpose
other than for collective bargaining.
INDEPENDENT UNION It refers to any
labor organization operating at the
enterprise level whose legal personality
is derived through an independent action
for registration with the Bureau of Labor
Relations (BLR) of the Department of
Labor and Employment prescribed under
Art. 234. It may be affiliated with a
federation, national or industry union, in
which case it may also be referred to as
an affiliate.
FEDERATION - any labor organization
with at least 10 locals/chapters or
affiliates each of which must be a duly
certified or recognized as the sole and
exclusive collective bargaining agent of
the employees of an appropriate
bargaining unit.
LEGITIMATE WORKERS ASSOCIATION
refers to an
association of workers
organized for mutual aid and protection
of its members of for any legitimate
purpose other than collective bargaining
registered with the Department in
accordance with Rule III, Sections 2-C
and 2-D of these rules.
LABOR MANAGEMENT COUNCIL
Deals with the employer on
matters affecting the employees
rights, benefits and welfare.
Purposes are to:
a.
b.
c.
promote gainful employment

improve working conditions and
achieve increased productivity
(RA 6971)
LABOR ORGANIZATION any union or

association of employees which exists in
whole in part for the purpose
of
collective bargaining with employers
concerning terms and conditions of
employment.
LEGITIMATE LABOR ORGANIZATIONany labor organization which is duly

registered with the Department of Labor.
The term includes a local/chapter of the
Bureau of Labor Relations directly
chartered by a legitimate federation or
national union which has been duly
reported
to
the
Department
in
accordance with Rule VI, Section 2 of
Book V of the Rules Implementing the
LC.
LABOR DISPUTE includes
controversy or matter concerning:
1.
2.
any
terms or 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.
The test
of whether a labor controversy comes
within the definition of a labor dispute
depends on whether it involves or
concerns
terms,
conditions
of
employment, or representation.
TYPES OF LABOR DISPUTES:
1. Labor Standards Disputes
a. Compensation
[e.g.,
underpayment
of
minimum
wage; stringent output quota;
illegal pay deductions]
b. Benefits [ e.g., nonpayment of
c.
holiday pay, overtime pay or other

benefits]
Working conditions [e.g., unrectified
work hazards]
2. Labor Relations Disputes

a. Organizational right dispute/
unfair labor practice [e.g.,
coercion,
restraint
or
interference
in
unionization
efforts; reprisal or discrimination
due to union activities; company
unionism]

CHAIRPERSONS
59
MEMORY AID
b. Representation disputes [e.g.,

determination of the collective
bargaining unit; ULP strike;
uncertainty as to determination
of the sole and exclusive
bargaining
agent
of
the
employees in an appropriate
bargaining unit which is the
majority union]
c. Bargaining disputes [e.g., refusal
to bargain (ULP); bargaining
deadlock; economic strike or
lockout]
d. Contract
administration
or
personnel policy disputes [e.g.,
noncompliance
with
CBA
provisions
(ULP
if
gross
noncompliance with economic
provisions);
disregard
of
grievance machinery; violation
no strike/no lockout agreement]
e. Employment tenure disputes
[e.g., non regularization of
employees; illegal termination;
non-issuance of employment
contract]
PARTIES TO A DISPUTE:
1. PRIMARY PARTIES employer,
employees, union
2. SECONDARY PARTIES voluntary
arbitrator, agencies of DOLE (BLR,
VAC), NLRC, Sec. of Labor, Office of
the President
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION
CHAPTER I
CREATION AND COMPOSITION
ART. 213. NATIONAL
RELATIONS COMMISSION
LABOR
NLRC an administrative body with

quasi-judicial functions and the principal
government agency that hears & decides
labor-management disputes; attached to
the DOLE for program & policy
coordination only.
LABOR LAW COMMITTEE
IN
LABOR LAW
POWERS of the NLRC as amended by

R.A. 6715
EN BANC
1.
Promulgating
rules
&
regulations
governing
the
hearing & disposition of cases
before any of its divisions and
regional
branches
and
formulating policies affecting
its
administration
and
operations.
2.
Under R.A. 7700: to allow cases

within the jurisdiction of any
division to be heard and
decided by any other decision
whose docket allows the
additional workload.
DIVISION
1.
Exercises
adjudicatory
or
appellate power over decisions
of Labor Arbiters and Regional
Directors of the DOLE over
monetary claims not over
P5,000.00 and all other powers,
functions and duties through its
divisions.
TRIPARTISM
The NLRC is composed of five (5)

divisions.
Three
(3)
sectors
are
represented in the composition
of the NLRC.
Each division composed of three

commissioners
will
have
representatives
from
the
following:
1. from the public sectornominated by the Secretary
of Labor
2. workers organizationsnominated by the labor
federation
3. employer
and
management
sectornominated by the Employers
60
Confederation
of
Philippines (ECOP)
the
QUALIFICATIONS OF THE CHAIRMAN AND

THE COMMISSIONERS:
1. must be a member of the
Philippine Bar;
2. must have been engaged in the
practice of law in the Philippines
for at least 15 years;
3. must
have
experience
or
exposure in handling labor
management relations for at
least 5 years; and
4. preferably a resident of the
region where he is to hold
office.
The appointment of the Chairman

and the Commissioners of the NLRC
are not subject to confirmation by
the Commission on Appointments.
QUALIFICATIONS OF EXECUTIVE
LABOR ARBITERS/LABOR ARBITERS:
1. must be members of the
Philippine Bar;
2. must have been engaged in the
practice of law in the Philippines
for at least 7 years; and
3. must
have
experience
or
exposure in handling labor
management relations for at
least 3 years.
TERM OF OFFICE OF THE CHAIRMAN,

COMMISIONERS, AND LABOR ARBITERS:
They shall hold office during good

behavior until they reach the age of
65 unless removed for causes as
provided by law or become
incapacitated to discharge the
function of his office.
A.
EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF THE NLRC:
1. Cases certified to it for compulsory
arbitration by the Secretary of Labor
under Art. 263 CERTIFIED CASES;
2. INJUNCTION CASES under Art. 218
and 264; AND
3. CONTEMPT CASES
B.
EXCLUSIVE APPELLATE JURISDICTION

OF THE NLRC:
1.Cases
DECIDED
BY
LABOR
ARBITERS under Art 217b of the
Labor Code and Sec 10 RA
8012(Migrant Workers Act); and
2.Cases DECIDED BY THE REGIONAL
OFFICES OF DOLE IN THE EXERCISE
OF ITS ADJUDICATORY FUNCTION
under Art 129 of the Labor Code over
monetary
claims
of
workers
amounting to not more that
P5,000.00
THE NLRC ONLY SITS EN BANC
FOR PURPOSES OF:
a. promulgating rules and regulations
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
b. formulating policies affecting its
administration and operations.
The Commission may only sit
en banc for the determination
of policies and NOT for
purposes of adjudication. (RA
6715)
Adjudication of cases certified
to the NLRC, or appealed to it
from the decision of its Labor
Arbiters are referred to and
decided by its five (5) divisions.
-Petitions for certiorari (Rule 65)
against decisions of the NLRC should
henceforth be initially filed with the
Court of Appeals in strict observance of
the doctrine on the hierarchy of courts
as the appropriate forum for the relief
desired.
The Court of Appeals is
procedurally equipped to resolve unclear
or ambiguous factual finding, aside from
the increased number of its component
divisions. (St. Martins Funeral Homes
vs. NLRC; G.R. No. 130866)
- Findings of facts of a labor tribunal
are accorded the utmost respect by the

CHAIRPERSONS
61
MEMORY AID
IN
LABOR LAW
courts and are well-nigh conclusive if

supported by substantial evidence.
DAMAGES arising from employeremployee relations;
- Labor cases are not subject to

Barangay Conciliation since ordinary
rules of procedure are merely suppletory
in character vis--vis labor disputes
which are primarily governed by labor
laws.
5. CASES ARISING FROM ANY

VIOLATION OF ART 264 of this
Code,
including
questions
involving the legality of strikes
and lockouts;
6. Except claims for Employees
Compensation, Social Security,
Medicare
and
maternity
benefits, ALL OTHER CLAIMS
ARISING
FROM
EMPLOYEREMPLOYEE RELATIONS, including
those of persons in domestic or
household service, involving an
amount exceeding P5,000.00
regardless
of
whether
accompanies with a claim for
reinstatement;
- The failure of the petitioner to

file a motion for reconsideration of the
decision of NLRC before filing a petition
for certiorari has in certain instances
been held not to be a fatal omission.
- In certain cases however the
filing of a Motion for Reconsideration is
deemed a condition sine qua non for the
filing of a Petition for Certiorari.
CHAPTER II
POWERS AND DUTIES
7. MONETARY
CLAIMS
OF
OVERSEAS CONTRACT WORKERS
under the Migrant Workers Act of
1995; and
ART. 217. JURISDICTION OF

LABOR ARBITERS AND THE COMMISSION
8. Claims of employees against

GOCCs if the latter does not
have an original charter and has
been incorporated under the
Corporation Code.
EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF LABOR ARBITERS:
Except as otherwise provided
under this
Code the Labor Arbiters
shall have original
and exclusive
jurisdiction to hear and decide, within
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. ULP 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
LABOR LAW COMMITTEE
Although the provision speaks of

EXCLUSIVE
AND
ORIGINAL
JURISDICTION OF labor arbiters,
the cases enumerated may
instead be submitted to a
voluntary
arbitrator
by
agreement of the parties under
Art. 262.
The law prefers
voluntary
over
compulsory
arbitration.
Cases which must be disposed of

by the labor arbiter by referring the
same to the grievance machinery and
voluntary arbitration:
a.
Disputes
on
the
interpretation or implementation of
CBA and
b. those
arising
from
the
interpretation or enforcement of
company personnel policies.
62
The labor arbiter and the NLRC have

no jurisdiction over claims filed by
employees against international
agencies such as IRRI, WHO etc.
unless they expressly waive their
immunity. (Lasco vs. UNRFNRE)
They also have no jurisdiction over

illegal dismissal cases of corporate
officers which fall under PD 902-A
and now fall under the jurisdiction of
the Regular Courts pursuant to the
New Securities Regulation Code.
[Formerly under the jurisdiction of
the Securities and Exchange
Commission (SEC) (Dily-Daly Nakpil
vs NLRC)]

CHAIRPERSONS
63
MEMORY AID
In the absence of service of

summons or a valid waiver
thereof, the hearings and
judgment rendered by the labor
arbiter are null and void.
COMPULSORY ARBITRATION: The

process of settlement of labor disputes
by a government agency which has the
authority to investigate and make and
award binding to the parties.
The NLRC may conduct compulsory
arbitration only in national interest cases
referred to it by the DOLE secretary.
Labor arbiters
employment related.
ART. 218.
COMMISSION
jurisdiction
is
POWERS OF THE
POWERS OF THE NLRC:

a.
R
ule-making power [promulgation
of rules & regulations governing
disposition of cases before any of
its divisions/regional offices]
b.
P
ower
to
issue
compulsory
processes [administer oaths,
summon
parties,
issue
subpoenas]
c. Power to investigate matters and
hear
disputes
within
its
jurisdiction [adjudicatory power
original
&
appellate
jurisdiction over cases]
d. Contempt power [218]
e. Power to issue injunctions and
restraining orders
PROCEDURE FOR THE ISSUANCE
OF RESTRAINING ORDER/ INJUNCTION:
a. filing of a verified PETITION
b. HEARING AFTER DUE AND PERSONAL
NOTICE has been served in such manner
as the Commission shall direct, to:
a. all known persons against
whom the relief is sought and
b. also to the Chief Executive
or other public officials of the
province or city within which the
unlawful
acts
have
been
LABOR LAW COMMITTEE
IN
LABOR LAW
threatened
or
committed
charged with the duty to protect
the complainants property.
c. RECEPTION AT THE HEARING OF
THE TESTIMONIES OF WITNESSES
with
opportunity
for
crossexamination, in support of the
allegations of the complaint made
under oath as well as testimony in
opposition thereto
d. FINDING OF FACT of the Commission
to the effect that :
prohibited or unlawful acts
have been threatened and will
be committed, 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
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.
That
substantial
and
irreparable injury to the
complainants property will
follow
That as to each item of
relief to be granted, greater
injury will be inflicted upon
complainant by the denial of
the relief than will be inflicted
upon the defendants by the
granting of the relief
That complainants has no
adequate remedy at law
That public officers charged
with the duty to protect
complainants property are
unable or unwilling to furnish
adequate protection.
e. Posting of a BOND
IRREPARABLE INJURY: An injury
which
cannot
be
adequately
compensated in damages due to the
64
nature of the injury itself or the nature

of the right or property injured or when
there exists no pecuniary standard for
the measurement of damages.
ADEQUATE REMEDY: One that
affords relief with reference to the
matter in controversy and which is
appropriate
to
the
particular
circumstances of the case.
The power of the NLRC to enjoin or
restrain the commission of any or all
prohibited or unlawful acts under Art.
218 of the Labor Code can only be
exercised in a labor dispute.
REQUISITES BEFORE TRO MAY BE
ISSUED EX PARTE:
1. The complainant shall ALLEGE
THAT, unless a TRO is issued
without notice, a substantial
and
irreparable
injury
to
complaints property will be
unavoidable;
2. TESTIMONY UNDER OATH is
sufficient, if sustained, to justify
the Commission in issuing a
temporary
injunction
upon
hearing after notice;
3. The complainant shall first FILE
AN
UNDERTAKING
WITH
ADEQUATE SECURITY/BOND in
an amount to be fixed by the
Commission
sufficient
to
recompense those enjoined for
any loss, expenses or damage
caused by the improvident or
erroneous issuance of such order
or injunction, including all
reasonable costs, together with
a reasonable attorneys fee, and
expense of defense against the
granting of any injunctive relief
sought in the same proceeding
and subsequently denied by the
Commission.
The TRO shall be effective
for no longer than 20 days and shall
become void at the expiration of
said 20 days counted from the date
of the posting of the bond.
It may be lifted or it may be
upgraded to a permanent injunction.
The
procedural
and
substantial requirements of Art 218
(e) must be strictly complied with
before an injunction may issue in a
labor dispute.
THE FOLLOWING CAN ISSUE
INJUNCTIONS/ TRO IN LABOR DISPUTES:
1. President (ART. 263, g)
2. Secretary of Labor (ART. 263, g)
3. NLRC (218)
4. Labor Arbiters (ART. 217/RULE XI
Sec. 1 of IR&R)
5. Regional Directors
6. Med- Arbiters
ART. 219. OCULAR INSPECTION
The Chairman, any Commissioner,
labor Arbiter or their duly authorized
representatives may, at anytime during
working hours:
a. Conduct an ocular inspection on
any establishment, building,
ship,
place
or
premises,
including any work, material,
implement,
machinery,
appliance or any object therein;
and
b. Ask any employee, laborer, or
any person as the case may be
for any information or date
concerning
any
matter
or
question relative to the object
of the investigation
ART. 221. TECHNICAL RULES NOT
BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
The NLRC may disregard technical
rules of procedure in order to give life to
the constitutional mandate affording
protection to labor. (Principe vs.
Philippine-Singapore Transport Services
Inc.)
RES JUDICATA applies only to

judicial or quasi-judicial proceedings and
NOT to the exercise of administrative
powers.
APPROVAL OF AN AMICABLE
SETTLEMENT BY A LABOR ARBITER

CHAIRPERSONS
65
MEMORY AID
An amicable settlement of a labor

dispute should be approved by the labor
arbiter before whom the case is pending
after being satisfied that:
a. it was VOLUNTARILY ENTERED into
by the parties and
after having EXPLAINED

TO THEM THE TERMS AND
CONSEQUENCES thereof.
PURPOSE: for the employees

protectionbecause the labor arbiter
before whom the case is pending would
be in a better position than just any
other person to personally determine the
voluntariness of the agreement and
certify its validity (Periquet vs. NLRC).
ART. 222. APPEARANCES AND

FEES
APPEARANCE OF NON-LAWYERS
BEFORE THE COMMISSION:
GENERAL RULE: ONLY lawyers can
appear before the NLRC or a Labor
Arbiter
EXCEPTIONS:
Non-Lawyers can
appear ONLY in the following instances:
1.
if
they
represent
themselves;
2.
if
they represent their
organization or
members
thereof; or
3. if he is a duly accredited
member of the legal aid office
duly recognized by the DOJ in
cases referred thereto by the
latter or by the IBP.
LABOR LAW COMMITTEE
LABOR LAW
ATTORNEYS FEES:
1. Art. 111 Labor Code (simple
monetary claim)
The maximum amount to be
given a lawyer for his legal
assistance rendered which is 10% of
the total monetary award adjudged
the employees excluding the award
for moral and exemplary damages.
To demand more than this is
unlawful.
2. Art. 222
a.
The Rules of Court are applied in a

suppletory character.
COMPROMISE, as a way of settling
disputes is encouraged
through compromise, the
parties, by making reciprocal
concessions, avoid litigation
or put an end to one already
commenced.
IN
Attorneys fees for CBA

negotiations and conclusion shall
be in the amount agreed upon by
the parties to be taken from the
union funds and not from
individual union members.
b. This article prohibits the
payment of attorneys fees only
where the same is effected
through forced contributions
from the workers form their own
funds as distinguished from
union funds.
c.
Neither the lawyer nor the

union itself may require the
individual workers to assume the
obligation to pay the attorneys
fees from their own pockets.
Any agreement to the contrary
shall be null and void.
ARTICLE 211 VS ARTICLE 222

ART. 211
Prohibits the
award of attorneys
fees which exceed
10% of the amount
of
wages
recovered.
PURPOSE: to
fix the limit on the
amount
of
attorneys
fees.
The
victorious
party may recover
in
any
ART. 222
Prohibits
the
payment
of
attorneys fees only
when it is effected
through
forced
contribution from the
workers from their
own
funds
as
distinguished
from
union funds
PURPOSE:
to
prevent
the
imposition on the
workers of the duty
to
individually
contribute
their
respective shares in
66
administrative
judicial
proceeding.
or
the fee to be paid to

the attorney for his
services to the union.
CHAPTER III
APPEAL
ART. 223. APPEAL
GROUNDS FOR APPEAL:
1.
If there is prima facie evidence

of abuse of discretion on the part of
the Labor Arbiter
2.
If the decision, order or award
was secured through fraud or
coercion,
including
graft
and
corruption;
3.
If made purely on questions of
law; and
4.
If serious errors in the findings of
facts are raised which would cause
grave or irreparable damage or
injury to the appellant.
PERIODS
APPEAL:
WITHIN
WHICH
TO
A. decisions of the regional director:

within 5 calendar days from
receipt of the order [129 LC
Recovery of wages and simple
money claims of the amount not
exceeding P5,000.00].
B. decisions of the labor arbiter:
within 10 calendar days from
the receipt of the decision.
The appeal must be under oath
and must state specifically the
grounds relied upon and the
supporting arguments.
Where the 10th day falls on a
Saturday, Sunday
or
legal
holiday, the appeal may be filed
on the next business day. (Rules
of Procedure of NLRC)
PERIOD
EXTENDIBLE
TO
APPEALNOT
It is the policy of the state

to settle expeditiously labor
disputes.
The perfection of an appeal
within
the
statutory/
reglementary period is not
only mandatory but also
jurisdictional and failure to
do so renders the questioned
decision final and executory
as to deprive the appellate
court of jurisdiction to alter
the final judgment of the
RDs and LAs. (Aboitiz
Shipping
Employees
Association vs. Trajano)
REQUISITES FOR THE PERFECTION
OF AN APPEAL TO THE NLRC:
1. Filing
of
A
VERIFIED
MEMORANDUM OF APPEAL within
the required period of appeal;
2. In case of monetary award, when
the appellee is the employer he
should file an APPEAL BOND
corresponding to the monetary
award excluding awards for moral
and exemplary damages and
attorneys fees.
Where the employer
failed to post a bond to
perfect its appeal, the
remedy of the employee is a
motion to dismiss the
appeal, NOT a petition for
mandamus.
The intention of the
lawmakers is to make the
bond
an
indispensable
requisite for the perfection
of an appeal by the
employer.
3. Appeal fee of P150;
4. Proof of service - furnish the
other party with a copy of the
memo of appeal.
Failure to give a copy of
the appeal to the appellee
within 10 days is not fatal IF
the
latter
was
not
prejudiced by the delay in
the service of said copy of
the appealtechnical rules
must yield to the broader
interest
of
substantial

CHAIRPERSONS
67
MEMORY AID
justice. (Modern Fishing

Gear Labor Union vs. Noriel)
A mere notice of appeal
does not stop the running of
the reglementary period of
appeal.
EXECUTION PENDING APPEAL - the

decision of the labor arbiter ordering
the reinstatement of a dismissed or
separated
employee
shall
be
immediately executory insofar as the
reinstatement aspect is concerned and
the posting of an appeal bond by the
employer
shall
not
stay
such
execution.
There is no need for a
motion for the issuance of
writ of execution on the
reinstatement order as it is
self-executory.
(Pioneer
Texturizing Co. vs. NLRC)
Perfection of appeal within the
reglementary period is both MANDATORY
and JURISDICTIONAL. (ACDA vs NLRC;
Volkschel vs NLRC)
Non-service of the copy of the
appeal/appeal memorandum to the
adverse party is not a jurisdictional
effect and does not justify dismissal of
the appeal.
AMOUNT OF APPEAL BOND: amount
equal to the monetary award exclusive
of damages (moral and exemplary) plus
attorneys fees.
OPTIONS OF THE EMPLOYER IN
COMPLYING WITH AN ORDER OF
REINSTATEMENT WHICH IS IMMEDIATELY
EXECUTORY:
1.
He can ADMIT THE DISMISSED
employee back to work under the
same terms and conditions prevailing
prior to his dismissal or separation or
to a substantially equivalent position
if the former position is already
filled up, OR
2.
He
can
REINSTATE
THE
EMPLOYEE MERELY IN THE PAYROLL
LABOR LAW COMMITTEE
IN
LABOR LAW
WITH PAYMENT OF THE ACCRUED

SALARIES.
Failure to exercise one
of the foregoing options may
be compelled under pain of
contempt and the employer
may be made to pay instead
the salary of the employee.
A petition for relief from the decision
of the labor arbiter must strictly
comply with 2 reglementary periods:
1.
The petition must be filed within

60 days from knowledge of the
judgment; and
2.
The petition must be filed within
a fixed period of 6 months from
entry of such judgment.
Petitions filed beyond
said period will no longer be
entertained.
APPEAL FROM THE DECISION OF THE
NLRC:
No law allows an appeal from a
decision of the Secretary of Labor, or the
NLRC, or of a voluntary arbitrator. In
these cases, the special civil action of
certiorari, prohibition or mandamus
under Rule 65 of the Rules of Court may
be lodged with the Court of Appeals.
(St. Martins Funeral Home vs. CA)
No Motion for Reconsideration is
allowed for any order, decision
or award of a Labor Arbiter.
However
a
Motion
for
Reconsideration of a Labor
Arbiters decision, award or
order which has all the elements
of an appeal may be treated as
appeal.
Only
one
Motion
for
Reconsideration of the decision,
award
or
order
of
the
commission on appealed cases
before it.
ART 224.
EXECUTION
DECISIONS, ORDER, OR AWARDS
OF
The decision of the Secretary of

Labor, the Commission, the Bureau or
Regional Director the Labor Arbiter, the
68
Med-Arbiter or the Voluntary Arbitrator

shall be final and executory after 10
calendar days from receipt thereof by
the parties and shall be executory
within ten (10) years.
The foregoing may, upon its
own initiative 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.
An independent action is
required for the execution of the
final judgement within the next
of following 5 years [ Phil.
National Railways vs NLRC (177
SCRA740, Sept. 19, 1989)]
The immediate execution of
judgment should be undertaken
only when the monetary award
had
been
carefully
and
accurately determined by the
NLRC and only after the
employer
is
given
the
opportunity to be heard and to
raise
objections
to
the
computation.
TITLE III
BUREAU OF LABOR RELATIONS
ART. 226.
RELATIONS
BUREAU
OF
LABOR
Pursuant to E.O. 126, the NATIONAL

CONCILIATION AND MEDIATION BOARD
(NCMB) has absorbed the conciliation,
mediation and voluntary arbitration
functions of the BLR.
Jurisdiction
over
labormanagement
problems
or
disputes is also exercised by
other offices such as the DOLE
regional offices, and the Office
of the Secretary, NLRC, POEA,
OWWA, SSS-ECC, the regional
wage and productivity boards,
NWPC, and even the regular
courts
over
intra-corporate
disputes.
EXCLUSIVE
AND
JURISDICTION OF THE BLR
ORIGINAL
-to act at its own initiative or upon

the request of either or both parties on
all:
1.
INTRA- union conflicts
2.
INTER- union conflicts
3.
all DISPUTES, GRIEVANCES OR
PROBLEMS ARISING FROM OR
AFFECTING LABOR MANAGEMENT
RELATIONS IN ALL WORKPLACES
WHETHER AGRICULTURAL OR NONAGRICULATURAL.
The parties may however, by
agreement,
settle
their
differences by submitting their
case to a voluntary arbitrator
rather than taking the case to
the BLR.
CASES WHERE THE BLR HAS NO
JURISDICTION:
Those
arising
from
the
implementation or interpretation of
collective bargaining agreements which
shall be subject of grievance procedure
and/or voluntary arbitration.
INTRA-UNION DISPUTES refers to any
conflict between and among union
members, including grievances arising
from any violation of the rights and
conditions of membership, violation of or
disagreement over any provision of the
unions constitution and by-laws, or
disputes arising from chartering or
affiliation.
MED-ARBITER- an officer in the
regional office or bureau authorized to
hear,
conciliate,
and
decide
representation cases or assist in the
disposition of intra or inter-union
disputes.
COVERAGE
OF
INTER/INTRA-UNION
DISPUTES (Sec. 1 Rule XI DO 40-03)
a. cancellation of registration of a
labor organization filed by its
members or by any other labor
organization;

CHAIRPERSONS
69
MEMORY AID
b. conduct of election of union and

workers
association
officers/nullification of election
of union and workers association
officers;
c. audit/accounts examination of
union or workers association
funds;
d. deregistration of CBA;
e. validity/invalidity
of
union
affiliation or disaffiliation;
f. validity/invalidity
of
acceptance/non-acceptance for
union membership;
g. validity/invalidity
of
impeachment/
expulsion
of
union and workers association
officers;
h. validity/invalidity of voluntary
recognition;
i. opposition to application for
union and CBA registration;
j. violations of or disagreements
over any provision in a union or
workers association constitution
and by-laws;
k. disagreements over chartering or
registration
of
labor
organizations and CBAs;
l. violations of the rights and
conditions of union or workers
association membership;
m. violations of the rights of
legitimate labor organizations,
except interpretation of CBAs;
n. such other disputes or conflicts
involving the rights to selforganization, union membership,
and collective bargaining
1. between and among
legitimate
labor
organizations
2. between and among
members of a union or
workers association
IN
LABOR LAW
1. cancellation of registration
of unions and workers
associations; and
2. a petition for interpleader
SPECIAL REQUIREMENTS AS TO THE
FILING OF CASES:
A. INVOLVING ENTIRE MEMBERSHIP
1.The complaint must be signed by
at least 30% of the entire
membership of the union and
2.It must also show exhaustion of
administrative remedies.
B. INVOLVING A MEMBER ONLY - In such
case only the affected member may
file the complaint.
Redress must first be sought

within the union itself in
accordance with its constitution
and by-laws EXCEPT under any
of the following circumstances:
a. futility of intra-union remedies
b. improper expulsion procedure
c. undue delay in appeal as to
constitute
substantial injustice
d. the action is for damages
e. lack of jurisdiction of the
investigating body
f. action of the administrative
agency is
patently illegal,
arbitrary, and oppressive
g. issue is purely a question of law
h. where the administrative agency
had already
prejudged the
case
i. where the administrative agency
was
practically
given
the
opportunity to act on the case but it
did not.
Imposition of fees by the union

affects the entire membership,
therefore it requires that the
complaint should be signed by at
least 30% of the membership of
the union.
EXTENDED COVERAGE (Section 2 Rule XI

DO 40-03)
Other related labor relations
disputes shall include any conflict
between a labor organization and the
employer or any individual, entity, or
group that is not a labor organization or
workers association. This includes:
LABOR LAW COMMITTEE
70
INTER-UNION DISPUTES -refers to any

conflict between and among legitimate
labor
organizations
involving
representation questions for purposes of
collective bargaining or to any other
conflict or dispute between legitimate
labor organizations based on any
violations of their rights as labor
organizations.
EFFECTS OF FILING/PENDENCY OF
INTER/INTRA-UNION
DISPUTE
AND
OTHER LABOR RELATIONS DISPUTES
(Section 3 Rule XI DO 40-03)
- The rights, relationships and obligations of
the parties litigants against each other and
other parties-in-interest prior to the
institution of the petition shall continue to
remain during the pendency of the petition
and until the date of finality of the decision
rendered therein. Thereafter, the rights,
relationships and obligations of the parties
litigants against each other and other partiesin-interest shall be governed by the decision
so ordered.
- The filing or pendency of any inter/intraunion disputes is not a prejudicial question to
any petition for certification election and
shall not be a ground for the dismissal of a
petition for certification election or
suspension of proceedings for certification
election.
SUMMARY OF RULES ON INTRA/INTERUNION DISPUTES (Rule XI DO 40-03)

MODES OF APPEAL IN INTRA/INTERUNION DISPUTES (Rule XI DO 40-03)
1. Under oath
HOW (formal
2. Consist of a
requirements)
PERIOD
TO WHOM
APPEALABLE
memorandum of appeal
3. Based on either of
the following grounds:
a. Grave abuse of
discretion
b. Gross violation
of the Rules
4. With supporting
arguments and evidence
Within 10 days from
receipt of decision
1. Bureau of Labor
Relationsif the case
originated from the Med
Arbiter/Regional
Director
2. Sec. Of Laborif the
case originated from the
Bureau
WHERE FILED
WHO
WHERE
FILED
FORMAL
REQUIREMENTS
Regional Office or to the

BLR, where the
complaint originated
(records are transmitted
to the BLR or Sec.
Within 24 hours from
receipt of the
memorandum of appeal)
1. For grounds under Sec. 1:

a. any LLO
b. member(s) thereof
specially concerned
2. For grounds under Sec. 2any
party-in-interest
1. Regional Office that issued its
certificate of registration or
certificate of creation of
chartered local- If it involves labor
unions with independent
registrations, chartered locals,
workers association, its officers or
members
2. Directly with the BureauIf it
involves a Federation/National
Unions/Industry Unions, its
officers or members
1. in writing
2. verified under oath
3. contains the following
averments
a. name, address and other
personal circumstances of the
complainant(s) or petitioner(s);
b. name, address and other
personal circumstances of the
respondent(s)
or
person(s)
charged;
c. nature of the complaint or
petition;
d. facts and circumstances
surrounding the complaint or
petition;
e. cause(s) of action or specific
violation(s) committed;
f. a statement that the
administrative remedies provided
for in the constitution and by-laws
-have been exhausted or
-such remedies are not
readily available to the
complainant(s) or
petitioner(s) through no fault
of his/their own or
-compliance with such
administrative remedies does
not apply to complainant(s) or
petitioner(s);
g. relief(s) prayed for;
h. certificate of non-forum
shopping; and
i. other relevant matters
DETERMINATION OF
EMPLOYEE RELATIONSHIP:
EMPLOYER-

CHAIRPERSONS
71
MEMORY AID
Since the BLR has the original and

exclusive jurisdiction to decide,
inter alia, all disputes, grievances or
problems arising from or affecting
labor-management relations in all
workplaces, necessarily, in the
exercise of this jurisdiction over
labor-management relations, the
Med-Arbiter has the authority,
original
and
exclusive,
to
determine the existence of an
employer-employee
relationship.
(MY San Biscuits, Inc. vs. Laguesma
G.R. No. 9511, 22 April 1991)
In cases where there is

overlapping
of
jurisdiction,
determine the principal issue.
The agency that has jurisdiction
thereon may decide on the
incidental issues.
ADMINISTRATIVE FUNCTIONS OF THE

BLR:
1.
The
REGULATION
OF
REGISTRATION of the labor unions;
2.
The KEEPING OF A REGISTRY of
labor unions;
3.
The maintenance of a FILE OF
CBAS. ART. 227.
COMPROMISE
AGREEMENTS; and
4.
The maintenance of a file of all
settlements or final decisions of the
Supreme Court, Court of Appeals,
NLRC and other agencies on labor
disputes.
REQUIREMENTS:
a. must be freely entered into;
b. must not be contrary to law, morals
or public policy; and
c. must be approved by the authority
before whom the case is pending [see
discussion on article 221approval of
labor
arbiter
of
an
amicable
settlement in a case before him.
May be effected at any stage
of the proceedings and even
when there is already a final
executory judgment (2040 NCC).
Cannot be entered into when
the final judgment is already in
the
process
of execution.
(Jesalva vs. Bautista)
LABOR LAW COMMITTEE
IN
LABOR LAW
FORMAL REQUIREMENTS OF A VALID

COMPROMISE AGREEMENT:
1. in writing
2. signed in the presence of the regional
director
or
his
duly
authorized
representative.
WITH vs. WITHOUT ASSISTANCE OF
DOLE-COMPROMISE AGREEMENTS
Without assistance
With the
of DOLE
assistance of
DOLE
a.
VALIDITY/BINDING
EFFECT
- Valid and binding - Valid and binding
upon the parties
upon the parties
b. REPUDIATION
Can
be - Can no longer be
repudiated by the repudiated
parties by going to becomes final and
the Commission
binding upon the
parties upon
NOTE: ULP cases execution EXCEPT
are not subject to
a. in case of non
compromise.
compliance
with the
compromise
agreement;
or
if there is
prima facie
evidence that the
settlement was
obtained through
fraud,
misrepresentation,
or coercion
OPTIONS
WHEN
COMPROMISE
AGREEMENT IS VIOLATED:
1. enforce compromise by writ of
execution
2. regard it as rescinded and insist upon
original demand.
REQUIREMENTS
QUITCLAIM:
OF
VALID
1. The quitclaim must be VOLUNTARILY

ARRIVED at by the parties;
72
2. It must be WITH THE ASSISTANCE of

the Bureau of Labor Standards,
Bureau of Labor Relations or any
representative of the DOLE; and
3. The CONSIDERATION MUST BE
REASONABLE (required only when
entered without the assistance of
DOLE)
Dire necessity is not an

acceptable ground for annulling
the releases, especially in the
absence of proof that the
employees were forced to
execute them. (Veloso vs. DOLE)
WAIVER OF REINSTATEMENT like

waivers of money claims, a waiver of
reinstatement must be regarded as a
personal right which must be
exercised personally by the workers
themselves. (Jag & Haggar Jeans and
Sportswear Corp. vs. NLRC)
ART 231. REGISTRY OF UNIONS

AND
FILE
OF
COLLECTIVE
AGREEMENT
The CBA is more than a contract,

it is highly impressed with public
interest for it is an essential
instrument to promote industrial
peace.
Must be filed directly with the
Bureau or the Regional Offices of
DOLE within thirty (30) days
from execution.
An UNREGISTERED CBA does not
bar
certification
election
[contract bar rule will not apply
in the absence of registration.
[See discussion on Arts. 253 &
253-A]
Registration of the CBA is not a

requisite for its validity.
parties regardless of whether or not the

same has been certified by the BLR.
ART 232. PROHIBITION

CERTIFICATION ELECTION
ON
CONTRACT BAR RULE: provides that

while a valid and registered CBA is
subsisting for a fixed period of 5 years ,
the Bureau is not allowed to hold an
election contesting the majority status
of the incumbent union except during
the sixty (60) day period immediately
prior to its expiration, which period is
called the freedom period.
The existence of the CBA bars the
holding of an inter-union electoral
contest and the filing of the Petition for
Certification Election except within the
freedom period.
PURPOSE:
politicking
comes.
to
until
minimize
union
the proper time
ART
233.
COMMUNICATION
PRIVILEGED
PRIVILEGED
COMMUNICATION:
Any
statement of such privacy that the law
exempts the person receiving the
information from the duty to disclose it.
Information and statements made at
conciliation proceedings shall be treated
as privileged communication and shall
not be used as evidence in the
Commission.
Conciliators and similar officials

may not testify in any court or
body regarding any matters
taken
up
at
conciliation
proceedings conducted by them.
LIBERTY FLOUR MILLS EMPLOYEES v.

LFM, INC. 180 SCRA 668
The certification of the CBA by the BLR
is not required to put a stamp of validity
to such contract. Once it is duly entered
into and signed by the parties, a CBA
becomes effective as between the
CHAIRPERSONS
73
MEMORY AID
IN
LABOR LAW
the laborers; and for the protection of

labor against the unjust exactions of
capital
TITLE IV
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND CANCELLATION
ART. 234. REQUIREMENTS OF

REGISTRATION
LABOR ORGANIZATION - Any union or
association of employees which exists in
whole or in part for the purpose of:
a. collective bargaining or
b. of dealing with employer
concerning terms and conditions of
employment.
It is the agent of the
employees of an appropriate
bargaining unit.
MODES OF ACQUIRING LEGITIMACY FOR

LABOR ORGANIZATIONS
1. Registration with the BLR
(Independent Union)
2. Affiliation with a legitimate labor
federation
[REGISTRATION REQUIREMENTS FOR
LABOR ORGANIZATIONS (as amended by
DO 40-03)]
3.
Application for registration
4.
Attachments
name of the applicant labor
union, its principal address;
the name of its officers and their
respective addresses;
o
approximate
number
of
employees in the bargaining
unit where it seeks to
operate, with a statement
that it is not reported as a
chartered local of any
federation or national union;
the
minutes
of
the
organizational
meeting(s)
and the list of employees
who participated in the said
meeting(s);
the name of all its members

comprising at least 20% of
the
employees
in
the
bargaining unit;
the annual financial reports

if the applicant has been in
existence for one or more
years, unless it has not
collected any amount from
the members, in which case
a statement to this effect
shall be included in the
application;
the applicants constitution

and by-laws, minutes of its
adoption or ratification, and
PRINCIPLE OF AGENCY APPLIED

Principal employees
Agent local/chapter
Agent of agent federation
LEGITIMATE LABOR ORGANIZATION or
LABOR UNION
any labor organization duly registered
with the Department of Labor and
Employment, and Bureau of Labor
Relations.
Not every legitimate labor

organization
can
act
as
bargaining representative and be
certified as such. This is true
only of a union that has won in
certification election or has been
voluntarily recognized by the
employer.
PURPOSE OF FORMATION OF LABOR

UNIONS: for securing a fair and just
wages and good working conditions for
LABOR LAW COMMITTEE
74
the list of the members who

participated in it. The list of
ratifying members shall be
dispensed with where the
constitution and by-laws was
ratified or adopted during
the organizational meeting.
In such a case, the factual
circumstances
of
the
ratification shall be recorded
in the minutes of the
organizational meeting(s).
(These
are
called
reportorial
requirements)
The application for registration of
labor unions xxx, shall be certified under
oath by its Secretary or Treasurer, as the
case may be, and attested by its
president.
The attachments must now be in
one(1) original copy and two (2)
duplicate copies which shall accompany
the application or notice, and submitted
to the Regional Office or the Bureau.
- After a labor organization had filed the

necessary papers and documents for
registration, it becomes mandatory for
the BLR to check if the requirements
under Article 234 have been sedulously
complied with. If its application for
registration is vitiated by falsification
and serious irregularities, especially
those appearing on the face of the
application
and
the
supporting
documents, a labor organization should
be denied recognition as a legitimate
labor
organization.
(Progressive
Development Corporation-Pizza Hut vs.
Laguesma et al., GR No. 115077, April
18, 1997)
PURPOSE OF REGISTRATION Registration with the BLR is the

operative act that gives rights to a labor
organization.
A prescribed registration fee must be

paid before the issuance of the
certificate of registration
Where
to
registration:
file
application
for
1. For registration of independent labor

unions, chartered locals, workers
associations shall be filed with the
Regional office where the applicant
principally operates. It shall be
processed by the Labor Relations Division
at the Regional office.
2. Applications for registration of
federations, national unions or workers
associations operating in more than one
region shall be filed with the bureau or
the regional offices, but shall be
processed by the bureau.
MINISTERIAL DUTY OF THE BLR
COMPELLABLE BY MANDAMUS- to
review the application for registration
and not the issuance of a Certificate of
Registration.
It is the fact of being registered

with the DOLE that makes a
labor organization legitimate in
the sense that it is clothed with
legal personality to claim
representational and bargaining
rights enumerated in Article 242
or to strike or picket under
Article 263.
The requirement of registration
is NOT a curtailment of the
right to association. It is merely
a condition sine qua non for the
acquisition of legal personality
by
labor
organizations,
associations or unions and the
possession of the rights and
privileges granted by law to
labor organizations.
A valid exercise of police power
since the activities in which
labor organizations, associations,
or unions of workers are engaged
affect public interest, which
should be protected. (PAFLU vs.
Sec. Of Labor)
FEDERATION- any labor organization

with at least 10 locals/chapters or
affiliates each of which must be duly
certified or recognized as the sole and
exclusive collective bargaining agent of
the employer they represent.

CHAIRPERSONS
75
MEMORY AID
REQUIREMENTS
BEFORE
FEDERATION
CAN
BE ISSUED
CERTIFICATE OF REGISTRATION:
A
A
Aside from the application, which

must be accompanied with the
requirements for registration of a labor
registration, the application should also
be accompanied by the following:
1. Proof of affiliation of at least 10
locals or chapters, each of which
must be a duly recognized sole and
exclusive collective bargaining agent
in the establishment or industry in
which it operates, supporting the
registration
of
such
applicant
federation or national union;
companies where the locals or
chapters operate and the list of all
the members in each company
involved.
IN
LABOR LAW
labor organizations of rank and file

employees PROVIDED that:
a. the federation is not actively
involved in union affairs in the
company; and
b. the rank and file employees are not
directly under the control of the
supervisors
ONCE AFFILIATED, A LOCAL

UNION MAY DISAFFILIATE FROM THE
FEDERATION.
A LOCAL UNION MAY AFFILIATE WITH A

FEDERATION - The procedure of
affiliation would depend on whether the
union is independently registered or not.
REQUIREMENTS OF AFFILIATION (as
amended by DO 40-03)
1. Report of affiliation of
independently registered labor union
2. Attachments:
a. resolution of the labor unions
board of directors approving the
affiliation;
b. minutes
of
the
general
membership meeting approving
the affiliation;
c. the total number of members
comprising the labor union and
the names of members who
approved the affiliation;
d. the certificate of affiliation
issued by the federation in favor
of the independently registered
labor union; and
e. written notice to the employer
concerned if the affiliating union
is the incumbent bargaining
agent.
A union of supervisory employees may
affiliate with a national federation of
LABOR LAW COMMITTEE
76
INDEPENDENTLY
a.HOW
TO -by signing a contract
Obtained
affiliation
A
duly
AFFILIATE
by union
registered
organizers
federation/na
in
an
tional union
enterprise
issues
a
through
charter to a
their own
union in an
action
enterprise
and registers
the
charter
with
the
regional
office or the
BIR.
of
-by application of the union

with the federation for the
issuance
of
a
charter
certificate to be submitted to
the Bureau accompanied by
the following:
a. Copies of its constitution
and by-laws
b. Statement of the set of
officers and
Books of accounts, all of
which must be certified by
the Secretary/Treasurer and
attested to by the President.
In such case, the union
becomes a local chapter of
the Federation.
- would not affect its being a
upon severance, it would

cease to be a legitimate labor
organization and would no
longer have legal personality
and the rights and privileges
granted by law to legitimate
organization, unless the local
chapter is covered by a duly
registered
collective
bargaining agreement. In the
latter case, the local or
chapter will not lose its legal
personality
until
the
expiration of the CBA. After
the CBA expires it will lose its
legal personality unless it
registers as an independent
union.
Independent
union
b. EFFECT OF
DISAFFILIATION
With legal
TO THE
UNION
personalit
[local]
y of its
own
Applicatio
n
for
registratio
n is filed
with and
will
be
acted
upon by
c. EFFECT
OF
the DOLE
DISAFFILIATION
regional
TO THE
CBA
office
where the
applicant
s principal
office is
located.
UNREGISTERED
REGISTERED
CHARTERING
INDEPENDENT
REGISTRATION
Chapter/local
labor
legitimate
No
legal organization
and
therefore
it
would
personality of
continue
to
have
legal
its own and
as to possess all
personality
as it
hasprivileges of a
thelong
rights
and
not
availed
legitimate
labor organization.
itself
of
independent
registration.
Charter
certificate is
issued by a
federation or
national
union is filed
with
the
regional
- office
an existing
or BLR CBA would
continue to be valid as the
with 30 days
labor
organization
can
after
the
continue
administering
the
of
CBAissuance
the
charter
certificate.
The CBA would continue to be

valid. The local chapter will
not lose its personality until
the expiration of the CBA.
After the CBA expires the
local
union
looses
its
personality, unless it registers
anew.

CHAIRPERSONS
77
MEMORY AID
IN
LABOR LAW
- union
dues
may
no collective
longer
legitimate
purpose
other
than
d. ENTITLEMENT -labor organization is entitled
the be collected as there would
WHEN
TO DISAFFILIATE
TO
UNION
DUES to the union dues and notbargaining.
federation from which the no longer any labor union that
AFTER
allowed
such
GENERAL RULE: A labor
labor union may organization
ART.is236.
DENIALto
OF collect
REGISTRATION;
DISAFFILIATION
disaffiliated.
union
dues
from
the
disaffiliate from the mother union to
APPEALemployees.
form an independent union only during
Note: Follow the principle of
the
60-day
freedom
period
- Decisions
the BLR federation
denying the
agency of between
immediately preceding the expiration of
registration
of a labor organization is
and local.
the CBA.
appealable
to the Secretary
Principal
employeesof Labor
within 10
calendar
days from receipt of
Agent
local/chapter
EXCEPTION:
DISAFFILIATION
BY
the decision,
on agent
grounds
of:
Agent of
federation
MAJORITY
a. grave abuse of discretion; or
This happens when there is a
b. gross incompetence
- even before the onset of the
substantial shift in allegiance on
freedom period, disaffiliation may
the part of the majority of the
still be carried out, but such
members of the union. In such
disaffiliation must be effected by a
a case, however, the CBA
majority of the union members in
continues to bind the members
the bargaining unit.
of the new or disaffiliated and
independent union up to the
decision of the regional office or the
CBAs expiration date.
bureau denying the application for
LIMITATION: disaffiliation should be in
registration shall be:
accordance
with
the
rules
and
1. in writing
procedures stated in the Constitution
2. stating in clear terms the reason for
and by-laws of the federation.
the decision
3. applicant union must be furnished a
copy of said decision
A prohibition to disaffiliate in
ART. 238. CANCELLATION OF
the Federations constitution or
REGISTRATION; APPEAL
by-laws is validintended for its
own protection.
The certificate of registration of
any legitimate labor organization shall
REVOCATION OF CHARTER BY THE
be cancelled by the BLR if it has reason
FEDERATION
by
serving
the
to believe, after due hearing, that the
local/chapter a verified notice of
said labor organization no longer meets
revocation, copy furnished the Bureau on
one or more of the requirements
the ground of disloyalty or such other
prescribed by law.
grounds as may be specified in its
constitution or by-laws.
GROUNDS FOR CANCELLATION:
1. Failure to comply with any of the
requirements prescribed under
Arts. 234
(requirements for
The revocation shall divest the
registration of a labor union) &
local chapter of its legal
237 (addl. reqts. federation
personality upon receipt of the
registration) of the Code.
notice by the Bureau, unless in
the meantime the local chapter
2. Violation of any of the provisions
has
acquired
independent
of Art. 239 (grounds for
registration. (Rule VIII Section 5
cancellation
of
union
of the IRR)
registration) of the Code
WORKERS ASSOCIATION: Association of
3. Commission of any of the acts
workers for the mutual aid and
enumerated under Art. 241
protection of its members or for any
(rights
and
conditions
of
LABOR LAW COMMITTEE
78
membership) of the code- No

petition for cancellation based
on this ground 0may be granted
unless supported by at least 30%
of all the members of the
respondent labor organization or
workers association.
A pronouncement as to
the illegality of the
strike is not within the
meaning of Art. 239 of
the Code which provides
for the grounds for
cancellation of union
registration.
MODES OF APPEAL
DENIAL or CANCELLATION BY:
A. Regional Office
transmit records within 24
hours from receipt of Memo of
Appeal
BUREAU decides within 20
days from receipt of records
SUPREME COURT- Rule 65
B. Bureau
transmit records within 24
hours from receipt of memo
of appeal
SEC. OF DOLE decides within
20 days from receipt of
records
SUPREME COURT- Rule 65
EFFECT OF CANCELLATION OF
REGISTRATION IN THE COURSE OF
PROCEEDINGS
- Where a labor union is a party
in a proceeding and later it loses its
registration permit in the course or
during the pendency of the case, such
union may continue as a party without
need of substitution of parties, subject
however to the understanding that
whatever decision may be rendered
therein will be binding only upon those
members of the union who have not
signified their desire to withdraw from
the case before its trial and decision on
the merits. [Principle of Agency applied
the employees are the principals, and
the labor organization is merely an agent
of the former, consequently, the
cancellation of the unions registration,
would not deprive the consenting
member-employees of their right to
continue the case as they are the
considered as the principals]
ART
239.
GROUNDS
FOR
CANCELLATION
OF
UNION
REGISTRATION
GROUNDS FOR CANCELLATION OF
UNION REGISTRATION:
A. FRAUDULENT ACTS
1. Misrepresentation, False statement
or Fraud in connection with
[RATIFICATION
OF
CONSTI/BYLAWS]:
a. the
ADOPTION
OR
RATIFICATION
of
the
constitution and by-laws or
amendments thereto,
b. the MINUTES of ratification,
and
c. the LIST OF MEMBERS who took
part in the ratification.
*Appeal by memo of appeal

within 10 days from receipt of
notice.
2. Misrepresentation, false statement
GROUNDS:
or fraud in connection with the
1. Grave abuse of discretion
[ELECTION PAPERS]:
2. Violation of rules as
amended.
CHAIRPERSONS
79
MEMORY AID
a.
b.
ELECTION of officers,
MINUTES of the election of
officer and the list of voters, or
c. failure
to
submit
these
documents together with the list of
the
newly
elected/appointed
officers and their postal addresses
within 30 days from election
B. INACTION OR OMISSION
1.
Failure to submit the following

documents
[RATIFICATION OF
CONSTI/BY-LAWS]:
a. the adoption or ratification of
the constitution and by-laws or
amendments thereto,
b. the minutes of ratification, and
the list of members who took
part in the ratification
*Within 30 days from adoption or
ratification of the constitution and
by-laws or amendments thereto.
2. Failure to submit the Annual Financial
report to the Bureau within 30 days
after the closing of every fiscal year
and misrepresentation, false entries
and fraud in the preparation of the
financial report itself;
3. Failure to submit a LIST OF
INDIVIDUAL MEMBERS of the Bureau
once a year or whenever required by
the Bureau; and
4. Failure
to
comply
with
the
REQUIREMENTS UNDER ARTICLES
237.
C. UNLAWFUL ACTS
1.
Acting as a labor contractor or
engaging in the CABO SYSTEM, or
otherwise engaging in any activity
prohibited by law;
2. Entering into collective bargaining
agreements which provide terms and
conditions of employment below
minimum standard established by
law
[CBA-BELOW
MINIMUM
STANDARDS];
(Sweetheart
Agreements)
3.
Asking for or
ACCEPTING
ATTORNEYS FEES OR NEGOTIATION
FEES from the employers;
4. Other than for mandatory activities
under this Code, checking off special
assessment or any other fees without
LABOR LAW COMMITTEE
IN
LABOR LAW
duly signed individual written

authorization of the members
[UNLAWFUL ASSESSMENTS];
CANCELLATION OF REGISTRATION
A. FOR:
1. Legitimate individual labor
union.
2. Chartered local
3. Workers association
WHERE TO FILE
Regional Director who has
jurisdiction over the place
where respondent principally
operates (30 days to decide).
WHO MAY FILE

- Any party in interest, if ground
is:
a. Failure to comply with any of
the requirements under Arts.
234, 237 and 238 LC
b. Violation of any provision under
Art. 239, LC
Take note of the cancellation
proceedings if violation is D and
J of Art. 239, LC
REPORTING REQUIREMENTS OF LABOR
UNIONS AND WORKERS ASSOCIATIONS
(Rule V DO 40-03)
- It shall be the duty of every legitimate
labor union and workers association to
submit to the Regional Office or Bureau
which
issued
its
certificate
of
registration or certificate of creation of
chartered local, as the case may be, two
(2) copies of each of the following
documents:
a. any
amendment
to
its
constitution and by-laws and the
minutes
of
adoption
or
ratification of such amendments,
within 30 days from its adoption
or ratification;
b. annual financial reports within
30 days after the close of each
fiscal or calendar year;
c. updated list of newly-elected
officers, together with the
appointive offices or agents who
are entrusted with the handling
of funds, within 30 days after
each regular or special election
of officers, or from the
B. FOR:
1. Federations
80
2005
2. National or Industry unions
3. Trade union centers
d.
e.
CENTRALIZED BAR OPERATIONS
WHERE TO FILE
Bureau Director ( 30 days to
occurrence
decide) of any change in the
officers of agents of the labor
organization
or
workers
WHO MAY FILE
association
Only the members of the
updated
list
of
individual
Labor Organization concerned
members of chartered locals,
if grounds are actions
independent unions and workers
involving violations of Art.
associations within 30 days after
241, subject to the 39% rule
the close of each fiscal year; and
updated list of its chartered
locals and affiliates or member
organizations, CBAs executed
and their effectivity period, in
the case of federations or
national unions, within 30 days
after the close of each fiscal
year, as well as the updated list
of
their
authorized
representatives,
agents
or
signatories in the different
regions of the country.
RULES
ON
ADMINISTRATIVE
CANCELLATION OF CERTIFICATE OF
REGISTRATION OF LLOs DUE TO NONCOMPLIANCE WITH THE REPORTORIAL
REQUIREMENTS:
WHEN
PROPER
Failure to comply with its

legal duty to submit the
documents required to
be submitted under Rule
V of DO 40-03 for 5
consecutive years
WHO MAY
FILE THE
PETITION
1. Motu propio by the

Bureau
2. Any party-in-interest
st
THREENOTICE
REQUIRE
MENT
1 Notice
Bureau
shall
send
by
registered mail with return
card notice for compliance
indicating the documents it
failed to submit and the
corresponding period in
which they were required,
with notice to comply with
the
said
reportorial
requirements and to submit
proof thereof to the Bureau
within 10 days from receipt
thereof
2nd Notice
Where no response is
received by the Bureau
within 30 days from the
release of the 1st notice,
another
notice
for
compliance shall be made
by the Bureau, with warning
that failure on its part to
comply with the reportorial
requirements within the
time specified shall cause
the continuation of the
proceedings
for
the
administrative cancellation
of its registration
3rd Notice
Where no response is again
within 30 days from release
of the 2nd notice, the Bureau
shall cause the publication
of the notice of cancellation
of registration of the labor
organization
in
2
newspapers
of
general
circulation.
When
no
response
is
within 30 days from the
date of publication or when
the Bureau has verified the
dissolution of the labor
organization, it shall order
the
cancellation
of
registration of the labor
organization AND cause its
de-listing from the roster of
legitimate
labor
organizations
CHAPTER II
RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION
ART. 241. RIGHTS AND CONDITIONS
OF
MEMBERSHIP
IN
A
LABOR
ORGANIZATION
GENERAL GROUPINGS OF THE RIGHTS
OF THE UNION MEMBERS:
1. Political right - the right to vote and
be voted for, subject to lawful
provisions on qualifications and
disqualifications.
2. Deliberative and Decision-Making
Right - the right to participate in

CHAIRPERSONS
81
MEMORY AID
deliberations
on
major
policy
questions and decide them by secret
ballot.
4. Right to Information - the right to

be informed about:
a. the
organizations
constitution and by- laws,
b. the collective bargaining
agreement, and labor laws.
Any violation of the above rights

and conditions of membership
shall
be
a
ground
for
cancellation of union registration
or expulsion of an officer from
office, whichever is appropriate.
At least 30% of all the members
of the union or any member or
members specifically concerned
may report such violation to the
Bureau.
PERSONS WHO ARE PROHIBITED FROM

BECOMING MEMBERS/OFFICERS OF A
LABOR ORGANIZATION UNDER THE
LABOR CODE (see also notes under Art.
243 on persons who are not granted the
right to self-organization):
1. Subversives or those engaged in
subversive
activities [Art.241
(e)]
2. Persons who have been convicted
of a crime involving moral
turpitude shall not be eligible for
election as union officer or for
LABOR LAW COMMITTEE
LABOR LAW
appointment to any position in the

union. [Art. 241 (f)]
3. Rights Over Money Matters - the

right of the members:
a. against imposition of excessive
fees;
b. right
against
unauthorized
collection of contributions or
unauthorized disbursements;
c. to require adequate records of
income and expenses;
d. to access financial records;
e. to
vote
on
officers
compensation;
f. to vote on special assessment;
g. to be deducted a special
assessment
only
with
the
members written authorization.
IN
In general, a union is free to

select its own members, and no
person has an absolute right to
membership in a union.
LIMITATIONS [see discussion on union

security arrangements under Art. 248]:
a. The labor org. cannot compel
employees to become members of
their labor organization if they are
already member of rival union.
b.
persons mentioned in Art. 241(e)

[subversives] of the labor code
are prohibited from becoming a
member a labor organization.
c. members of religious organization

whose
religion
forbade
membership in labor organization
could not be compelled into union
membership.
REQUIREMENTS IN MAKING SPECIAL
ASSESSMENTS
or
OTHER
EXTRAORDINARY FEES (Art. 241 [n]):
1.
there must be a WRITTEN
RESOLUTION
2.
he resolution must have BEEN
APPROVED BY A MAJORITY of all the
members
3.
the approval must be AT A
GENERAL MEMBERSHIP MEETING
DULY called for that purpose
The
secretary
of
the
organization shall record the
minutes
of
the
meeting
including:
a.
the list of all members present,
b.
the votes cast, and
c.
the purpose of the assessment or
fees
The record shall be attested by

the President.
82
Substantial compliance to the

aforementioned procedure is not
enoughthe requirements must
be strictly complied with in view
of the fact that the special
assessment will diminish the
compensation of union members.
(Palacol et. al vs. Ferrer-Calleja
et. al)
CHECK-OFF - a method of deducting

from an employees pay at prescribed
period, the amounts due to the union for
fees, fines or assessments.
NATURE AND PURPOSE OF CHECK-OFF:
to facilitate the collection of
dues necessary for the unions
life and sustenance.
Union dues are the lifeblood of

the union.
REQUIREMENTS WITH REGARD

CHECK-OFFS (Art. 241 [o]):
TO
NO special assessment, attorneys

fees, registration fees or any other
extraordinary fees may be checked off
from any amount due an employee
WITHOUT
an
individual
written
authorization duly signed by the
employee.
The authorization
state the:
should
specifically
a. amount
b. purpose and the beneficiary
of the deduction.
Jurisdiction over check-off disputes is
with the Regional Director of the DOLE,
not the Labor Arbiter
UNION DUES VS. AGENCY FEE
UNION DUES
AGENCY FEE
a. DEDUCTED FROM
- members of a
union
for
the
payment of union
dues.
b. CONSENT
May
not
be
deducted from the
salaries of the union
members
without
the written consent
of
the
workers
affected
- May be deducted
from the salary of
employees
without
their consent.
Agency fee cannot be imposed on

employees already in the service and are
members of another union. If a closed
shop agreement cannot be applied to
them, neither may an agency fee, as a
lesser form of union security, be imposed
to them.
(NABAILU vs. San Miguel
Brewery Inc)
EXCEPTION TO THE REQUIREMENT OF
INDIVIDUAL WRITTEN AUTHORIZATION:
1.For mandatory activities provided
under the Code; and
2.When non-members of the union
avail of the benefits of the CBA.
- said non-members may be assessed
union dues equivalent to that paid by
members
- only by a Board Resolution
approved by majority of the members in
a general meeting called for the purpose
Will the employees-members of
another union not be considered as
free riders?
No since when the union bids to be the
bargaining agent, it voluntarily assumes
the responsibility of representing all
employees in the appropriate bargaining
unit.
SPECIAL ASSESSMENT vs. CHECK-OFF
SPECIAL
ASSESSMENTS
CHECK-OFF
- non-members of the
bargaining
agent
(union)
for
the
enjoyment of the
benefits under the
CBA.

CHAIRPERSONS
83
MEMORY AID
a. HOW APPROVED
-by written resolution
approved by majority
of all the members at
a meeting duly called
for that purpose
b.
EXCEPTION TO
SUCH REQUIREMENT
-no exceptionwritten
resolution
is
mandatory
at
all
instances.
(Union Dues)
-by
obtaining
the
individual
written
authorization
duly
signed
by
the
employee which must
specify:
a. amount
b. purpose and
c. beneficiary
of
the deduction.
(Agency Fees)
-not necessary if:
1.
For
mandatory
activities
provided
under the Code; and
2. When non-members
of the union avail of
the benefits of the
CBA.
Said
nonmembers
may
be
assessed agency fees
equivalent to that
paid by members only
by a Board Resolution
approved by majority
of the members in a
general meeting called
for the purpose.
CHAPTER III
RIGHTS OF LEGITIMATE LABOR
ORGANIZATIONS
ART. 242. RIGHTS OF LEGITIMATE
LABOR ORGANIZATIONS
RIGHTS OF A LEGITIMATE
ORGANIZATION [USERFOE]:
LABOR
IN
LABOR LAW
ART. 243. COVERAGE AND

EMPLOYEES RIGHT TO SELF
ORGANIZATION
PERSONS/EMPLOYEES ELIGIBLE TO
JOIN A LABOR ORGANIZATION FOR
PURPOSES
OF
COLLECTIVE
BARGAINING:
1. All persons employed in commercial,
industrial and agricultural (CIA)
enterprises, and
2. In religious, charitable, medical or
educational (RCME) institutions
whether operating for profit or not
PERSONS/EMPLOYEES ELIGIBLE TO
JOIN A LABOR ORGANIZATION FOR
MUTUAL
AID
AND
PROTECTION
(AIRSIW):
1. Ambulant,
2. Intermittent,
3. Rural,
4. Self-employed people
5. Itinerant workers and
6. Workers without any definite
employers,
PERSONS/EMPLOYEES WHO ARE NOT
GRANTED THE RIGHT TO SELFORGANIZATION: (HEMACEN)
1. High-level government employees
(E.O. 180 Sec. 3) (MANAGERIAL
GOVERNMENT EMPLOYEES)
1.Undertake activities for benefit of

members
2.Sue and be sued
3.Exclusive representative of all
employees
4.Represent union members
5.Furnished by employers of audited
financial statements
6.Own properties
7.Exempted from taxes
TITLE V
COVERAGE
LABOR LAW COMMITTEE
84
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS WITH
AN ORIGINAL
CHARTER
a. LAW
- Employees cannot stage
strikes since they are
governed by the Civil
Service Law. They are
enjoined by Civil Service
Memorandum
Circular
No. 6, under pain of
administrative sanctions
from
staging
strikes,
demonstrations,
mass
leaves, walkouts and
other
concerted
activities.
b. BARGAINING RIGHTS
- Corporations with
original charters
cannot bargain with
the government
concerning the terms
and conditions of
their employment.
However, they can
negotiate with the
government on those
terms and conditions
of employment which
are not fixed by law.
Thus, they have
limited bargaining
rights.
c.PURPOSE OF
ORGANIZATION
- Can only form, join or
assist labor organization
for purposes not contrary
to law.
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS
WITHOUT
ORIGINAL
CHARTER
- The GOCC is
created under
Corporation Code,
then employees are
covered by the Labor
Code.
Therefore
the employees have
the same rights as
those as employees
of private
corporations, one of
which is the right to
strike.
- The GOCC is
created under
Corporation Code,
being governed by the
Labor Code, they can
bargain with the
government
concerning the terms
and
conditions of
their employment.
Thus, they have
unlimited bargaining
rights.
- Can form, join or

assist labor
organization for
purposes of CBA, etc.
2.
Employees
of
international
organizations with immunities (ICMC vs.
Calleja)
3.
4.
Managerial employees
whose functions are normally
considered as policy-making or
managerial
whose duties are of a highly
confidential or highly technical
in nature (212 LC)
Members of the Armed Forces of

the Philippines, including police
officers, policemen, firemen and jail
guards (E.O. 180 Sec. 4);
5.
Confidential
(Metrolab vs. Confesor)
employees
6.
Employees of cooperatives who

are members (Benguet Elec. Coop.
vs Calleja)
7.
Non-Employees (Rosario Bros. vs

Ople)
Foreigners validly working in the

Philippines [with permit from DOLE]
can form labor organizations, provided
the same right to form, join or assist in
the formation of labor unions is also
given to Filipinos in their country of
origin. This embodies the principle of
reciprocity.
MAY SECURITY GUARDS FORM A LABOR
ORGANIZATION?
YES. Under RA 6715, they may now
freely join a labor organization of the
rank-and-file or that of the supervisory
union, depending on their rank. (Meralco
vs. Secretary of Labor)
EXTENT OF THE RIGHT TO SELFORGANIZATION

1. To form, join and assist labor
organizations for the purpose of
collective
bargaining
through
representatives of their own choosing
and
2. To engage in lawful concerted
activities for the same purpose- for
their mutual aid and protection.
ART. 244. RIGHTS OF EMPLOYEES IN
THE PUBLIC SERVICE
THE FOLLOWING ARE CONSIDERED

NEGOTIABLE IN GOCCs WITH ORIGINAL
CHARTER:
1.
schedule of vacation and other
leaves
2.
work assignment of pregnant
women
3.
personnel
growth
and
development
4.
communication system lateral
and vertical
5.
provision for protection and
safely

CHAIRPERSONS
85
MEMORY AID
6.
provision
for facilities
for
handicapped personnel
7.
provision for first-aid medical
services for married women
8.
annual
medical/physical
examination
9.
recreational, social, athletic and
cultural activities and facilities
(Rules implementing WO 180)
THE FOLLOWING ARE CONSIDERED
NOT NEGOTIABLE:
1. Those which require appropriation of
funds, such as:
a. increase
in
salary
emoluments
and
other
allowance
not
presently
provided for by law
b. facilities requiring capital
outlays
c. car plan
d. provident fund
e. special
hospitalization,
medical and dental services
f. rice/sugar/other subsidies
g. travel expenses
h. increase
in
retirement
benefits
2. Those that involve the exercise of
management prerogatives, such as:
a. appointments
b. promotion
c. assignments/details
d. reclassification/upgrading of
position
e. revision of compensation
structure
f. penalties imposed as a result
of
disciplinary actions
g. selection of personnel to
attend seminar, trainings,
study grants
h. distribution of work load
i.
external
communication
linkages
Government
employees
and
employees of government-owned
and controlled corporations with
original charters may bargain,
however, such bargaining power
is limited.
LABOR LAW COMMITTEE
IN
LABOR LAW
NOTE:
The Public Sector Labor

Management Council (PSLMC), created
by E.O. 180 has jurisdiction to hear
charges of ULP filed by government
employees against their employer.
REASONS WHY EMPLOYEES IN GOCCs
INCORPORATED
UNDER
THE
CORPORATION CODE ARE ALLOWED TO
ORGANIZE:
1. they are not involved in public
service
2. terms of employment are not fixed
by law
3. they are governed by the provisions
of the Labor Code not by the Civil
Service Law
ART. 245. INELIGIBILITY OF

MANAGERIAL EMPLOYEES TO JOIN ANY
LABOR ORGANIZATION; RIGHT OF
SUPERVISORY EMPLOYEES.
MANAGERIAL EMPLOYEE - one who is
vested with powers or prerogatives to
lay down and execute management
policies and /or to hire, transfer,
suspend, lay-off, recall, discharge,
assign or discipline employees.
MANAGERIAL EE UNDER LS AND LR
Managerial
Managerial
Employees under
Employees
Labor Standards
under Labor
Relations
a. POWERS/DUTIES
- primary duty consists - See definition
of the management of above
the establishment in
which
they
are
employed or of a
department
or
subdivision
- does not include
b. EXTENT
- includes the officers the managerial
and members of the staff since they are
classified as
managerial staff
c. PURPOSE OF
DEFINITION
supervisory
employees [who
may/may not be
eligible to join a
labor union with
the rank and file
employees]
- to determine an
employees
eligibility
in
86
- to determine w/n
certain employees are
covered by Book III of
the LC on Conditions of
joining/forming a
labor union.
Employment.
Reason for ineligibility in the

collective
bargaining
process,
managerial employees are the alter ego
of the employers and thus they are
supposed to be on the side of the
employer to act as its representatives,
and to see to it that its interests are
well protected. The employer is not
assured of such protection if these
employees are union members.
In the same manner, the labor
union might not be assured of
their loyalty to the union in
view of the evident conflict of
interest.
The union can also become
company-dominated with the
presence
of
managerial
employees in Union Membership
(Bulletin Publishing Co. Inc. vs.
Hon. Augusto Sanchez).
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.
MAY SUPERVISORY EMPLOYEES FORM,
ASSIST, JOIN A LABOR ORGANIZATION?
YES, on their own and NOT with the
rank-and-file employees (RA 6715).
The TEST IS: Do they exercise

independent judgment which is
not subject to evaluation of
other department heads/other
superiors? If in the affirmative,
then they may-must form a labor
organization
of
their
own
[separate from the rank and file
employees]
If their responsibilities do not
inherently require the exercise
of discretion and independent
judgment
[or
merely
routinary/clerical in nature]
then they may join the union
composed of the rank and file
employees.
NOTE: It is the nature of the employees
functions and not the nomenclature or
title given to his job which determines
whether he has a rank and file or
managerial
status.
(Engineering
Equipment, Inc. vs. NLRC)
MAY THEY
AFFILIATE
WITH
A
FEDERATION OF LABOR ORGANZATIONS
OF RANK AND FILE EMPLOYEES?
YES. Provided that:
a.
the federation is not actively
involved in union affairs in the
company; and
b. the rank and file employees are
not directly under the control of
the supervisors (Adamson vs.
Adamson)
EFFECT
OF
HAVING
MIXED
MEMBERSHIP
A
union
whose
membership is a mixture of the
supervisors and the rank and file is not
and cannot become a legitimate labor
organization. It cannot petition for a
certification election, much less ask to
be recognized as the bargaining
representative of employees.
CONFIDENTIAL EMPLOYEES - by the
very nature of their functions, they
assist and act in a confidential capacity
to, or, have access to confidential
matters of persons who exercise
managerial functions in the field of
labor relations. Therefore, the rationale
behind the ineligibility of managerial
employees to form, assist or join a labor
union equally applies to them. (Philips
Industrial Devt Inc. Vs. NLRC)
- they are entrusted with confidence on
delicate matters, or with the custody,
handling, or care and protection of the
employers property. Under the doctrine
of necessary implication, confidential
employees are similarly disqualified
under Article 245. (Republic Planters
Bank vs. Torres)

CHAIRPERSONS
87
MEMORY AID
NOTE: The phrase in the field of labor

relations is important. It stresses labor
nexus, i.e., confidentiality of the
position is related or linked to labor
relations matters.
Access to information which is
regarded by the employer to be
confidential from the business
standpoint, such as financial
information or technical trade
secrets, will not render an
employee
a
confidential
employee. (SMC Supervisors &
Exempt
Union
vs.
Hon.
Laguesma, et al.)
Confidentiality is not a matter of
official rank, it is a matter of job
content and authority. It is not
measured by closeness to or
distance from top management,
but by the significance of the
jobholders role in the pursuit of
corporate
objectives
and
strategies.
Every managerial position is
confidential because one does
not become a manager without
having gained the confidence of
the appointing authority. But
not every confidential employee
is managerial; he may be a
supervisory or even a rank-andfile employee.
ART. 246. NON-ABRIDGEMENT OF
THE RIGHT TO SELF-ORGANIZATION
THE RIGHT TO SELF-ORGANIZATION
SHALL NOT BE ABRIDGED MEANS:
It shall be unlawful for any person to:
a.
b.
c.
d.
restrain,
coerce,
discriminate against, or
unduly interfere
- with employees and workers in their

exercise of the right to self-organization.
Any act intended to weaken or

defeat the right is regarded by
law as an offense, which is
LABOR LAW COMMITTEE
IN
LABOR LAW
technically called unfair labor

practice.
TITLE VI
UNFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
ART. 247. UNFAIR LABOR PRACTICES
NATURE
PRACTICES:
OF
UNFAIR
LABOR
1. VIOLATE THE CONSTITUTIONAL

RIGHT of workers and employees to
self-organization;
2. 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
3. DISRUPT INDUSTRIAL PEACE; and
4. hinder the promotion of healthy and
stable labor-management relations
and mutual respect [LABOR-MNGT
RELATIONS-UNSTABLE];
2 ELEMENTS
PRACTICE:
OF
UNFAIR
LABOR
1.
between the offender and the
offended
2. act done is expressly defined in
the Code as an act of unfair
labor practice
3. it is now considered a criminal
offense triable by the criminal
court
NOTE: Prohibited acts are all related to
the workers' self-organizational right and
the the observance of a CBA, except Art.
248 (f) dismissing or prejudicing an
employee for giving testimony under the
Code.
ULP has a technical meaning.
It is a practice unfair to labor,
although the offender may either
88
be an employer or a labor
organization
It refers to acts opposed to
workers'
right
to
organize.
Without this, the act, no matter
how unfair, is not ULP.
It commonly connotes antiunionism.
It also refers to gross violation
of CBA provisions. Gross means the
act is malicious and flagrant.
2 ASPECTS
PRACTICE:
CIVIL CASE
OF
UNFAIR
LABOR
CRIMINAL CASE
A. PERSONS LIABLE
1. Officers and 1. Agents and officers
agents
of who
participated
or
employer or
authorized or ratified
2. Labor
the act.
organization,
2. Agents,
officers
and representatives, members
agents
of the government board,
including
ordinary
members
B. JURISDICTION
-Labor Arbiters of -MTC/RTC as the case
the NLRC
may be.
C. QUANTUM OF PROOF NEEDED
-substantial
-beyond reasonable doubt
evidence
[subject to prosecution
and punishment]
D. PRESCRIPTIVE PERIOD
- one year from - one year from the
the accrual of the accrual of the ULP act,
ULP act.
however
it
will
be
suspended
once
the
administrative case has
been filed and would only
continue running once the
administrative case has
attained finality.
Final judgment in the
administrative
proceeding finding that
ULP has been committed
is a prerequisite in filing
a criminal case for ULP
NOTE: Final judgment in
the
administrative
proceedings shall not be
binding in the criminal
case
nor
shall
be
considered
as
an
evidence of guilt but
merely as a proof of
compliance
of
the
requirements prescribed
by the Code.
CHAPTER II
UNFAIR LABOR PRACTICES
OF EMPLOYERS
ART 248. ULP THAT MAY BE
COMMITTED BY AN EMPLOYER (1-10)
1. To INTERFERE WITH, RESTRAIN OR
COERCE EMPLOYEES
- in the exercise of their right
to self-organization;
INTERFERENCE
Examples:
- outright and unconcealed intimidation
- interrogation
employer must communicate to the
employee the purpose of questioning
1. assure him that no reprisal would
take place
2. obtain employee participation
voluntarily
3. must be free from employer
hostility to union organization
4. must not be coercive in nature
-intimidating expressions of opinion by
employer
TEST OF INTERFERENCE OR COERCION whether the employer has engaged in
conduct which it may reasonably be said
tends to interfere with the free exercise
of the employees' right and it is not
necessary that there be direct evidence
that any employee was in fact
intimidated
or
coerced
by
the
statements of threats or the employer if
there is a reasonable interference that

CHAIRPERSONS
89
MEMORY AID
the anti-union conduct of the employer

does have an adverse effect of selforganization and collective bargaining.
2.
TO REQUIRE AS A CONDITION FOR

EMPLOYMENT THAT A PERSON OR
AN EMPLOYEE
- shall not join a labor
organization or
- shall withdraw from one to
which he belongs;
YELLOW DOG CONTRACT - A promise

exacted from workers as a condition of
employment that they are not to belong
to, or attempt to foster, a union during
their period of employment. It is null
and void because:
- It is contrary to public policy
for it is tantamount to involuntary
servitude.
- It is entered into without
consideration for employees in
waiving
their
right
to
selforganization
- Employees are coerced to sign
contracts disadvantageous to their
family.
Does Art. 248 (3) mean that an
employer cannot contract out work?
NO. Contracting out services is not ULP
per se. It is ULP only when the following
conditions exist:
1. the service contracted- out
are being performed by
union members; and
2. such
contracting-out
interferes with, restrains, or
coerce employees in the
exercise of their right to
self-organization.
HOWEVER, when the contracting-out is
being done to minimize expenses, then it
is a valid exercise of management
prerogative.
3. To CONTRACT OUT SERVICES OR
FUNCTIONS BEING PERFORMED BY
UNION MEMBERS
- when such will interfere with,
restrain or coerce employees in
the
- exercise of their right to selforganization;
LABOR LAW COMMITTEE
IN
LABOR LAW
4. 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 officers; (Formation
of Company Union)
5. To DISCRIMINATE IN REGARD TO
WAGES, hours of work, and other
terms
and
conditions
of
employment in order to encourage or
discourage
membership in any
labor organization.
TEST OF DISCRIMINATION- whenever
benefits or privileges given to one is not
given to the other under similar or
identical conditions when directed to
encourage
or
discourage
union
membership (see more discussions
below)
6. To
DISMISS,
DISCHARGE
OR
OTHERWISE
PREJUDICE
OR
DISCRIMINATE against an employee
- for having given or being about
to give testimony under this
Code; (The only ULP act which is
not anti-unionism)
DISCRIMINATION
BECAUSE
OF
TESTIMONY
TEST: the subject matter of the
testimony can be anything under
the Code
what is ULP is the employer's
retaliatory act regardless of the
subject of employee's complaint
or testimony
7. TO VIOLATE THE DUTY TO BARGAIN
COLLECTIVELY AS PRESCRIBED BY
THIS CODE;
8.
TO PAY NEGOTIATION OR
ATTORNEYS FEES TO THE UNION OR
ITS OFFICERS OR AGENTS
- as part of the settlement of any
issue in collective bargaining

or any other disputes; or
90
9.
To VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.(GROSSLY!)
- the violation must be gross and
with respect to the economic
provision of the CBA (flagrant
and with malice)
All the aforementioned acts (Nos. 19) must have a relation to the
employees exercise of their to selforganization. Anti-union or antiorganization motive must be proved
because it is a definitional element
of ULP.
RUNAWAY SHOP - an industrial plant
moved by its owners from one location
to another to escape union labor
regulations or state laws or to
discriminate against employees at the
old plant because of their union
activities.
COMPANY UNIONISM
1. Initiation of the company union
idea by:
a. outright formation by
employer
or
his
representatives
b. employee formation on
outright
demand
or
influence by employer
c. managerially motivated
formation by employees
2. financial support to the union by:
a. employer defrays union
expenses
b. pays attorney's fees to the
attorney who drafted the
Constitution or by laws of
the union
3.
employer encouragement and
assistance by immediate granting
of
exclusive
recognition
as
bargaining
agent
without
determining whether the union
represents
majority
of
the
employees
4. supervisory assistance by soliciting
membership, permitting union
activities during work time or
coercing employees to join the
union by threats of dismissal or
demotion.
DISCRIMINATION FOR OR AGAINST

UNION MEMBERSHIP
TEST OF DISCRIMINATION: That the

discharge of an employee was motivated
by his union activity. Such inference
must be based on evidence, direct or
circumstantial, not upon mere suspicion.
CONSTRUCTIVE DISCHARGE - ULP
where employer prohibits employees
from exercising their rights under the
Code, on pain of discharge, and the
employee quits as a result of the
prohibition
THREE COMPONENTS OF ART. 248(5)
(DISCRIMINATION):
1.It prohibits discrimination in
terms
and
conditions
of
employment in order to encourage
or discourage membership in the
union;
2.It gives validity to union security
agreements;
3.It allows an agency shop
arrangement whereby agency fees
may be collected from non-union
members.
SECURITY
ARRANGEMENTS
stipulations in the CBA requiring
membership in the contracting union as
a condition for employment or retention
of employment in the company.
PRINCIPLES OF UNION SECURITY
ARRANGEMENTS:
1. Protection - To shield union members
from whimsical and abusive exercise
of management prerogatives.
2. Benefits - An additional membership
will insure additional source of
income to the union in the form of
union dues and special assessment.
3. Self-preservation- It strengthens the
union
through selective
acceptance of new members on the
basis of commitment and loyalty.
DIFFERENT KINDS OF UNION SECURITY
ARRANGEMENTS: (EXCEPTIONS TO ULP
ON INTERFERENCE ON THE EMPLOYEES
EXERCISE OF THEIR RIGHT TO SELFORGANIZATION)

CHAIRPERSONS
91
MEMORY AID
1. CLOSED-SHOP AGREEMENT - the

employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual
once employed must, for the duration of
the agreement, remain a member of the
union in good standing as a condition for
continued employment.
- does not have any retroactivity
- apply only to new hires
EXCEPTIONS:
a. employees belonging to any
religious
sect
which
prohibit
affiliation of their members with any
labor organization are not covered
by
such
agreementThe
free
exercise of religious belief is
superior
to
contract
rights
(Victoriano
vs.
Elizalde
Rope
Workers).
b. members of the rival union are not
covered by such arrangement.
SEMI-CLOSED SHOP AGREEMENT- has
no requirement for the employee to
remain as member of the contracting
union in good standing as a condition
for continued employment.
2. UNION
SHOP
AGREEMENT
-stipulation whereby any person can be
employed by the employer but once
employed such employee must, within a
specific period, become a member of
the contracting union and remain as such
in
good
standing
for
continued
employment for the duration of the CBA
[take note of the exceptions in the
preceding number.]
3. MAINTENANCE OF MEMBERSHIP
CLAUSE - the agreement DOES NOT
require non-members to join the
contracting union BUT provides that
those who are members thereof at the
time of the execution of the CBA and
those who may thereafter on their own
volition become members must for the
duration of the agreement maintain
their membership in good standing as a
condition for continued employment in
the company for the duration of the
CBA.
LABOR LAW COMMITTEE
IN
LABOR LAW
4. PREFERENTIAL SHOP AGREEMENT

an agreement whereby the employer
merely agrees to give preference to the
members of the bargaining union in
hiring, promotion or filing vacancies and
retention in case of lay-off. The
employer has the right to hire from the
open market if union members are not
available.
5.
AGENCY SHOP AGREEMENT - 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.
This is directed against
FREE RIDER employees who
benefit from union activities
without contributing support to
the union, to prevent a situation
of non-union members enriching
themselves at the expense of
union members.
Employee
members
of
another/rival union are not
considered free riders since
when the union [agent] bids to
be the bargaining agent, it
voluntarily
assumed
the
responsibility of representing all
the
employees
in
the
appropriate bargaining unit.
REQUIREMENTS FOR A VALID

TERMINATION BY THE EMPLOYER OF
THE SERVICES OF AN EMPLOYEE
PURSUANT TO A UNION OR CLOSEDSHOP AGREEMENT:
1. The agreement must be expressed in
a CLEAR AND UNEQUIVOCAL way so
as not to leave room for
interpretation because it is a
limitation to the exercise of the
right to self-organization.
Any doubt must be resolved
against the existence of a
closed-shop agreement.
2. The agreement can only have
PROSPECTIVE APPLICATION and
cannot be applied retroactively.
92
3. It can only be exercised by giving the

employee his right to DUE PROCESS.
- The employer has the right to
satisfy himself that there are
sufficient bases for the request
of the union.
The termination of the services
of the employee is not automatic
upon the request of the union.
4. It cannot be applied to employees
who are already MEMBERS OF THE
RIVAL UNION or to the employees
based on their religious beliefs.
CHAPTER III
UNFAIR LABOR PRACTICES OF
LABOR ORGANIZATIONS
ART. 249. UNFAIR LABOR PRACTICES

OF LABOR ORGANIZATIONS
a. To RESTRAIN OR COERCE employees
in the exercise of their right to selforganization. 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
c. To VIOLATE THE DULY OR REFUSE
TO BARGAIN COLLECTIVELY with the
employer provided that 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 a fee for union
negotiations;
(This
is
called
FEATHERBEDDING)
e. To
ASK
FOR
OR
ACCEPT
NEGOTIATION OR ATTORNEYS FEES
FROM EMPLOYERS as part of the
settlement of any issue in collective
bargaining or any other dispute; or
f. To GROSSLY VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.
The violation must be gross and

must be with respect to
economic provisions of the CBA
flagrantly and with malice.
PERSONS CIVILLY LIABLE FOR

ULP:
1. Officers and agents of employer
2. Labor organization, officers and
agents
3.
Agents and officers who
participated or authorized or
ratified the act.
FEATHERBEDDING - refers to the
practice of the union or its agents in
causing or attempting to cause an
employer to pay or deliver or agree to
pay or deliver money or other things of
value, in the nature of exaction, for
services which are not performed or not
to be performed, as when a union
demands that the employer maintain
personnel in excess of the latters
requirements.
It is not featherbedding if the
work is performed no matter
how unnecessary or useless it
may be.
SWEETHEART DOCTRINE considers it
ULP for a labor organization to ask for or
accept negotiation or attorneys fees
from the employer in settling a
bargaining issue or dispute
resulting CBA is considered a

sweetheart contract a CBA
that does not substantially
improve the employees wages
and benefits.
TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
ART.
250.
PROCEDURE
COLLECTIVE BARGAINING
IN

CHAIRPERSONS
93
MEMORY AID
COLLECTIVE BARGAINING negotiation

by an organization or group of workmen,
in behalf of its members, with the
employer, concerning wages, hours of
work and other terms and conditions of
employment and the settlement of
disputes by negotiation between an
employer and the representative of his
employees.
Negotiation towards a collective
agreement.
The mechanics of collective bargaining
is set in motion only when the following
JURISDICTIONAL PRECONDITIONS are
present:
1. POSSESSION OF THE STATUS OF
MAJORITY representation by 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 (Certification of
the BLR that the representative of
the employees in the sole and
exclusive bargaining agent having
won in a certification election); and
3. a DEMAND TO BARGAIN under
Article 250 (a) of the Labor Code.
(Kiok Loy vs. NLRC)
COLLECTIVE BARGAINING AGREEMENT
(CBA) - a negotiated contract between a
legitimate labor organization and the
employer concerning:
a. wages,
b. hours of work, and
c. all
other
terms
and
conditions of employment in
a bargaining unit, including
mandatory provisions for
grievances and arbitration
machineries.
PROCEDURE
BARGAINING
IN
1.
COLLECTIVE
Written NOTICE with statement

of proposals
2.
REPLY by the other party within
10 calendar days with counter
proposals
LABOR LAW COMMITTEE
IN
LABOR LAW
3.
In case of differences, either

party may REQUEST FOR A
CONFERENCE which must be held
within 10 days from receipt of
request.
4.
If not settled NCMB MAY
INTERVENE AND ENCOURAGE the
parties to submit the dispute to a
voluntary arbitrator
5.
If not resolved, the parties may
go to where they want AND RESORT
TO ANY OTHER LAWFUL MEANS
[either to settle the dispute or
submit it to a voluntary arbitrator].
During
the
conciliation
proceeding in the Board, the
parties are prohibited from doing
any act which may disrupt or
impede the early settlement of
the disputes (250[d] LC).
8 STAGES IN THE NEGOTIATION FOR A
COLLECTIVE BARGAINING AGREEMENT:
1.
PRELIMINARY process - written
notice for negotiation which must
be clear and unequivocal
2. NEGOTIATION Process
3. EXECUTION Process signing of the
agreement
4. PUBLICATION for at least 5 days
before ratification
5. RATIFICATION by the majority of
all the workers in the bargaining
unit represented in the negotiation
(not necessary in case of arbitral
award)
6. REGISTRATION Process
Requisites for registration:
a. mandatory provisions
b. payment of P1, 000
c. 5 copies of CBA
d. proof of ratification
7. ADMINISTRATION Process the CBA
shall be jointly administered by
the
management
and
the
bargaining agent for a period of 5
years
8. INTERPRETATION AND APPLICATION
Process
MANDATORY PROVISIONS OF THE CBA:
1. wages
2. hours of work
3. grievance machinery
4. voluntary arbitration
5. family planning
6. rates of pay
94
7.
mutual observance clause

In addition, the Bureau requires
that the CBA should include a
clear statement of the terms of
the CBA.
Note: Employers duty to bargain is

limited
to
mandatory
bargaining
subjects; as to other matters, he is free
to bargain or not to bargain.
ART. 252. MEANING OF DUTY TO
BARGAIN COLLECTIVELY
DUTY TO BARGAIN COLLECTIVELY the performance of a mutual obligation:

a.
to MEET AND CONVENE promptly

and 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
b. EXECUTING
A
CONTRACT
incorporating such agreements if
requested by either party.
LIMITATIONS:
1. the duty to bargain collectively does
not compel any party to:
a. agree to a proposal; or
b. make a concession.
No room for Take it or Leave it
posture.
2. the parties cannot stipulate terms
and conditions of employment which
are below the minimum requirements
prescribed by law
(Meaning of duty to bargain when there
exists a CBA, see discussion under Art.
253)
Collective bargaining does not

end with the execution of the
agreement. It is a continuous
process. The duty to bargain
imposes on the parties during
the term of their agreement the

mutual obligation to meet and
confer
promptly
and
expeditiously and in good faith
for the purpose of adjusting any
grievances or question arising
under such agreement. (Republic
Savings Bank vs. CA)
FOUR (4) FORMS OF ULP IN

BARGAINING:
a. failure or refusal to meet and
convene
b.
evading the mandatory subjects
of bargaining
c.
bad
faith
in
bargaining
[boulwarism], including failure or
refusal to execute the CBA, if
requested
d. gross violation of the CBA
Do economic exigencies justify refusal
to bargain?
An employer has been held not guilty of
refusal to bargain by adamantly
rejecting the union's economic demands
where he is operating at a loss, on a low
profit margin, or in a depressed industry,
as long as he continues to negotiate.
But financial hardship constitutes no
excuse
for
refusing
to
bargain
collectively.
ACTS NOT DEEMED REFUSAL TO
BARGAIN:
1. adoption of an adamant bargaining
position in good faith
2. refusal to bargain over demands for
commission of ULP
3. refusal to bargain during period of
illegal strike
4. there is no request for bargaining
5. union seeks recognition
inappropriately large unit
for
an
6.
union seeks to represent some
persons who are excluded from the Code
7.
the rank-and-file unit includes
supervisors or inappropriate otherwise

CHAIRPERSONS
95
MEMORY AID
8.
the demand for recognition and
bargaining is made within the year
following a certification election in
which the clear choice was no union and
no ad interim significant change has
taken place in the unit
9. the union makes unlawful bargaining
demands
BARGAINING TO THE POINT OF
DEADLOCK OR IMPASSE:
1. over a mandatory subject - party
may insist on bargaining and will not be
construed as bargaining in bad faith
REASON:
duty to bargain requires
meeting and convening on the terms and
253
253-A/256
A.FREEDOM PERIOD
-the notice of intention to
terminate, amend or alter
the provisions of the CBA
shall be filed within the
sixty (60) day period,
immediately prior to the
expiration of the CBA.
-the economic provisions
however
may
be
renegotiated not later than
three (3) years. Those
economic
provisions
entered within 6 months
from the expiry of their
term as fixed in the CBA
shall retroact to the day
immediately following such
date, if beyond 6 months
the effectivity is by
agreement of the parties.
B.
WHAT MAY BE
CHANGED DURING THE 60DAY FREEDOM PERIOD
-re-negotiable provisions of
the CBA particularly the
non-representation aspect
(ECONOMIC
PROVISIONS
may be renegotiated not
later than three (3) years.
- representation
aspect of the CBA
shall be for a
term of five (5).
A petition for
certification
election may be
entertained and
a
certification
election may be
conducted within
the 60-day period
immediately
prior
to
the
expiration of the
CBA.
representation
aspectit may be
resolved by holding
certification
election
conditions of employment
but does not require assent to the other
party's proposals.
2. over a non-mandatory subject party may not insist on bargaining to the
LABOR LAW COMMITTEE
IN
LABOR LAW
point of impasse, otherwise, he will be

construed as bargaining in bad faith.
EXAMPLE:
The employer's insistence
that the union should change its
negotiator
before
bargaining
can
proceed to the employees' wage and
benefits is an instance of bad-faith
bargaining because the composition of
the negotiating panel is not a mandatory
subject of bargaining.
Hence, if Party A insists on first settling a
non-mandatory subject before tackling a
mandatory subject, Party B may
complain that Party A's posture is just an
excuse to avoid bargaining on the
mandatory,
essential
subjects
of
bargaining; thus, Party B can charge that
Party A is bargaining in bad faith or is
evading bargaining on terms and
conditions of employment - in short,
Party A is committing ULP.
NOTE: What the rule forbids is the
posture of making settlement of a nonmandatory subject a pre-condition to
the discussion or settlement of a
mandatory subject.
ART. 253. DUTY TO BARGAIN
COLLECTIVELY WHEN THERE EXISTS A
GENERAL RULE: When there is an
existing CBA, the duty to bargain
collectively shall also mean that neither
party shall TERMINATE nor MODIFY such
agreement during its lifetime. It is the
duty of both parties to:
a. keep the status quo and
b. to continue in the full force and
effect the terms and conditions of
the existing CBA
EXCEPTION: during the 60-day period
prior to its expiration, upon service of a
written notice of a partys intention to
terminate or modify the same, a party
may choose to terminate or modify the
non-representational aspect of the CBA
only after the expiration of CBA of fixed
duration.
96
DUTY TO BARGAIN COLLECTIVELY

UNDER 253 AND 253-A/256
AUTOMATIC RENEWAL CLAUSE Art.
253 provides that the CBA shall remain
effective and enforceable even after the
expiration of the period fixed by the
parties as long as no new agreement is
reached by them.
WHAT MAY BE DONE DURING THE

60-DAY FREEDOM PERIOD:
a. A labor union may DISAFFILIATE
from the mother union to form a
local or independent union only
during the 60-day freedom period
immediately
preceding
the
expiration of the CBA. [take note of
the limitation-see discussions on
registration of labor unions]
b. either party can serve a written
notice to TERMINATE OR MODIFY
the agreement at least 60 days prior
to its expiration period [on renegotiable/non-representation
aspect of the CBAsee discussion on
253]
c. a petition for CERTIFICATION
ELECTION may be filed
ART. 253A.
TERMS OF A
(CONTRACT BAR RULE)
DURATION OF THE CBA:
1. With
respect
representation aspect,
lasts for 5 years
months after the date of expiry of the

CBA
is
subject
to
AUTOMATIC
RETROACTION to the day immediately
following such date of expiry.
b. Those not made within 6 months the
parties may agree to the DATE OF
RETROACTION.
- This rule applies only if there
is an EXISTING AGREEMENT. If THERE IS
NO EXISTING AGREEMENT, there is no
retroactive effect because the date
agreed upon shall be the start of the
period of agreement.
NOTE: Article 253-A on retroaction does
not apply if the provisions were imposed
by the Secretary of Labor by virtue of
arbitration.
It applies only if the
agreement was voluntarily made by the
parties.
ART. 254. NO INJUNCTION RULE
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 (Powers of the
Commission/NLRC) and 264 (Prohibited
Activities) of this Code.
REASON:
injunction contradicts the
constitutional preference for voluntary
modes of dispute settlement
to
the
the
same
2. With respect to other provisions

[economic provisions], the same may
last for a maximum period of 3 years
after the execution of the CBA
RULE ON RETROACTIVE EFFECTS OF
OTHER ECONOMIC PROVISIONS WITH
FIXED TERM OR DATES OF EXPIRY AS
PROVIDED IN THE CBA:
a. Those made within 6 months after
the date of expiry of the CBA
- Any agreement on such other
provisions of the CBA made within 6
In cases of strikes/picketing, third

parties or innocent bystanders may
secure a court (regular court)
injunction to protect their rights.
(PAFLU vs. CLORIBEL)
ART. 255. EXCLUSIVE BARGAINING

REPRESENTATION
AND
WORKERS
PARTICIPATION
IN
POLICY
AND
DECISION-MAKING
WHAT IS THE MEANING OR EXTENT OF
THE WORKERS RIGHT TO PARTICIPATE
IN POLICY AND DECISION-MAKING
PROCESSES?
Such right refers ONLY to
participation in grievance procedures
and voluntary modes of settling disputes

CHAIRPERSONS
97
MEMORY AID
IN
LABOR LAW
and NOT to formulation of corporate

programs and policies.
They may be formed even if there

is already a union in the company.
NOTE:
An employer may solicit
questions, suggestions and complaints
from
employees
eventhough
the
employees are represented by a union,
provided:
ARTS. 256-259 PETITION FOR

CERTIFICATION ELECTION
1.
the
collective
bargaining
representative
executes
an
agreement waiving the right to be
present on any occasion when
employee grievances are being
adjusted by the employer and
2. employer acts strictly within the
terms of this waiver agreement.
ONE-UNION, ONE-COMPANY POLICY the proliferation of unions in an

employer unit is discouraged as a matter
of policy unless there are compelling
reasons which would deny a certain class
of employees the right to selforganization for purposes of collective
bargaining.
EXCEPTION:
supervisory employees who are
allowed to form their own unions apart
from the rank-and-file employees
- the policy should yield to the right of
employees to form unions for purposes
not contrary to law, self-organization
and to enter into collective bargaining
negotiations.
two companies cannot be
treated into a single bargaining unit
even if their businesses are related.
subsidiaries
or
corporations
formed out of former divisions of a
mother
company
following
a
reorganization may constitute a
separate bargaining unit.
LABOR MANAGEMENT COUNCILS deal with the employer on matters
affecting employees rights, benefits and
welfare.
LABOR LAW COMMITTEE
BARGAINING UNIT- a group of

employees of a given employer,
comprised of all or less than all the
entire body of the employees, which,
consistent with equity to the employer,
indicate to be best suited to serve the
reciprocal rights and duties of the
parties under the collective bargaining
provision of the law.
CERTIFICATION YEAR - refers to the
period wherein collective bargaining
should begin, which is within 12 months
following
the
determination
and
certification of employees' exclusive
bargaining representative.
FOUR FACTORS IN DETERMINING THE
APPROPRIATE BARGAINING UNIT:
1. the EXPRESS WILL OR DESIRE of the
employees (Globe Doctrine);
the desires of all the employees
are
relevant
to
the
determination of the appropriate
bargaining unit. The relevance
of the wishes of the employees
concerning their inclusion or
exclusion from a proposed
bargaining unit is inherent in the
basic right to self organization
2. the SUBSTANTIAL AND MUTUALITY
INTEREST factor;
3. prior collective bargaining HISTORY;
and
4. EMPLOYMENT STATUS, such as
a. temporary
b. seasonal, and
c. probationary employee
THINGS TO CONSIDER IN
DETERMINING THE COMMUNITY
OF INTEREST DOCTRINE:
1. similarity in the scale and manner of
determining earnings
98
2. similarity in employment benefits,

hours of work and other terms and
conditions of employment
3. similarity in the kinds of work
performed
4. similarity in the qualifications, skills
and training of the employees
5. frequency of contract or interchange
among the employees
6. common
supervision
and
determination of labor-relations
policy
7. history
of
bargaining
previous
collective
8. desires of the affected employees

9. extent of union organization
MODES OF CHOOSING THE EXCLUSIVE
BARGAINING UNIT:
1. SELECTION - certification election
2. DESIGNATION - voluntary recognition
A. CERTIFICATION ELECTION the
process of determining by secret ballot
the sole and exclusive bargaining agent
of the employees in an appropriate
bargaining unit, for purposes of
collective bargaining
CERTIFICATION
ELECTION
CERTIFICATION
ELECTION
A. NATURE
- separate and distinct
from
a
consent
election
vs.
CONSENT
CONSENT
ELECTION
- a separate and
distinct process
and has nothing
to do with the
import
and
effect
of
a
certification
election
B. PURPOSE
- to determine the sole
and
exclusive
bargaining agent of all
the employees in an
appropriate bargaining
unit for the purpose of
collective bargaining;
- to determine
the
issue
of
majority
representation of
all the workers
in
the
appropriate
collective
bargaining unit
mainly for the
purpose
of
determining the
administrator of
the CBA when
the contracting
union
suffered
massive
disaffiliation but
not
for
the
purpose
of
determining the
bargaining agent
for purposes of
collective
bargaining.
DIRECT CERTIFICATION - the process

whereby the
Med-Arbiter
directly
certifies a labor organization of an
appropriate bargaining unit of a
company after a showing that such
petition is supported by at least a
majority of the employees in the
bargaining unit.
IT IS NO LONGER
ALLOWED. (EO 111)
VOLUNTARY RECOGNITION the process
whereby the employer recognizes a labor
organization as the exclusive bargaining
representative of the employees in the
appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.
EFFECT OF VOLUNTARY RECOGNITION
BY THE EMPLOYER - through voluntary
recognition by the employer, the labor
organization is recognized by the
employer as the exclusive bargaining
agent which may collectively bargain
with such employer.

CHAIRPERSONS
99
MEMORY AID
C.E. IN AN ORGANIZED AND AN

UNORGANIZED ESTABLISHMENT
ORGANIZED
UNORGANIZED
A. WHEN MANDATORY ON
THE PART OF BLR
- upon the filing of a
verified petition by a
legitimate
labor
organization
questioning
the majority status of the
incumbent
bargaining
agent within the 60-day
freedom period before the
expiration of a CBA.
- The petition must be
supported by the written
consent of at least 25% of
ALL THE EMPLOYEES IN
THE
APPROPRIATE
BARGAINING UNIT.
- the employer cannot file
a petition for certification
election; only a legitimate
labor organization can file
such petition.
Upon:
a. the filing
of a verified
petition by a
legitimate
labor
organization;
or
b. upon the
filing of a
petition
by
the employer
when
such
employer is
requested by
the
employees to
bargain
collectively.
B. PERIOD FOR FILING THE

PETITION
a. when there is a CBA,
the labor organization can
file
a
petition
for
certification
election
within the 60-day freedom
period
(CONTRACT-BAR
RULE)
b. when there is no CBA,
then the labor organization
can file a petition for
certification election at
any time, subject to the
Deadlock Bar Rule.
- any time,
subject
however to
the
ONEELECTIONPER-YEAR
RULE.
REQUISITES BEFORE A LABOR UNION

CAN BE DECLARED A WINNER (DOUBLE
MAJORITY RULE):
1. Majority of the eligible voters cast
their votes AND
2. Majority of the valid votes cast is for
such union.
LABOR LAW COMMITTEE
IN
LABOR LAW
HOW TO DETERMINE THE DOUBLE

MAJORITY RULE:
1. In determining the eligible votes cast
[FIRST MAJORITY], include spoiled
ballots
2. In determining valid votes [SECOND
MAJORITY], eliminate spoiled ballots
but include challenged votes
RUN-OFF ELECTION:
A run-off election is proper if the
following conditions exist namely:
(a) a VALID ELECTION took
place because majority of the
Collective
Bargaining
Unit
members
voted
[FIRST
MAJORITY];
(b) the
said
election
presented at least THREE
CHOICES, e.g., Union One,
Union Two, and No Union (Take
Note: No Union shall not be a
choice in the run off
election);
(c) NOT ONE OF THE
CHOICES
OBTAINED
THE
MAJORITY
(50%+1-SECOND
MAJORITY) of the valid votes
cast;
(d) the TOTAL VOTES FOR
THE UNIONS IS AT LEAST 50%
of the votes cast;
(e) there
is
NO
UNRESOLVED
CHALLENGED
VOTES or election protest
which
if
sustained
can
materially alter the results
(f) the two choices which
garnered the highest votes will
be voted and the one which
garners the highest number of
votes will be declared the
winner provided they get the
majority votes of the total
votes cast
100
Who will participate in the run

off?
The unions receiving the highest
and second highest number of votes
cast.
Re Run Election vs. Run off
Election
RE RUN ELECTION
RUN OFF
ELECTION
Held
in
instances:
two
1. if one choice
receives
a
plurality of vote
and
the
remaining
choices results
in a tie;
2. if all choices
received
the
same number of
votes;
In
both
instances,
the
NO UNION is also
a choice
Conducted
when
none
of
the
choices, including
the choice of No
Union, receives a
majority of the
valid vote cast.
This
presupposes
no less than three
competing choices.
In this situation, an
election
is
conducted between
the union choices
receiving
the
largest and the
second
largest
number of the valid
votes cast.
1. Agreement is in WRITING AND

SIGNED by all contracting parties.
2. It must contain THE TERMS AND
CONDITIONS of employment.
3. Covered employees in an appropriate
bargaining unit [ABU EES COVERED].
4. It is for a REASONABLE PERIOD or
duration.
5. It must be RATIFIED.
6. It must be REGISTERED with the
Bureau.
7. The violation of the contract bar rule
or the existence of a duly registered
CBA must be specifically IMPLEADED
AS A DEFENSE.
EFFECT OF AN INVALID AND

UNREGISTERED CBA- there is no bar and
therefore a certification election may be
held.
NOTE: Registration of CBA only puts into
effect the contract bar rule but the CBA
itself is valid and binding even if
unregistered.
EXCEPTIONS TO THE CONTRACT-BAR
RULE:
RULES WHICH PREVENT THE HOLDING

OF A CERTIFICATION ELECTION [DONC]:
1. Deadlock bar rule- when there
is a deadlock in collective bargaining and
the same has been submitted to NCMB
for conciliation and mediation the same
bars any petition or conduct of
certification election.
2. One year bar rule
3. Negotiation bar rule
4. Contract bar rule
1. CBA is not registered

2. CBA deregistered
3. CBA was hastily concluded way
ahead of the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace
because of schism
6. CBA was concluded in violation of an
order enjoining the parties from
entering into a CBA until the issue of
representation is resolved
7. Petition is filed during the 60-day
freedom period
1. CONTRACT-BAR RULE - while a valid

and registered CBA of a fixed duration is
subsisting, the BLR is not allowed to hold
an election contesting the majority
status of the incumbent union during the
five year term of the CBA except during
the sixty day period immediately prior to
the expiration of the CBA.
SUCCESSOR-IN-INTEREST DOCTRINE
When an employer with an existing CBA
is succeeded by another employer, the
successor-in-interest who is a buyer in
good faith has no liability to the
employees in continuing employment
and the collective bargaining agreement
because these contracts are in personam
REQUIREMENTS IN ORDER TO INVOKE

CONTRACT-BAR RULE:
EXCEPT:

CHAIRPERSONS
101
MEMORY AID
a. when the successor-in-interest

expressly assumes the obligation or
b.
the sale is a device to
circumvent the obligation or
c. the sale or transfer is made in
bad faith
SUBSTITUTIONARY DOCTRINE where
there occurs a shift in the employees
union allegiance after the execution of a
collective bargaining contract with the
employer, the employees can change
their agent (the labor union) but the
collective bargaining contract which is
still subsisting continues to bind the
employees up to its expiration date.
They may, however, bargain for the
shortening of said expiration date.
The employees cannot revoke

the validly executed collective
bargaining contract with their
employer
by
the
simple
expedient of changing their
bargaining agent.
The new
agent must respect the contract.
(Benguet Consolidated, Inc. vs.
Employees and Workers UnionPAFLU)
LIMITATION AS TO ITS APPLICATION

it cannot be invoked to support the
contention that a newly certified
collective
bargaining
agent
automatically assumes all the personal
undertakings of the former agentlike
the no strike clause in the CBA
executed by the latter (Benguet
Consolidated Inc. vs. BCI Employees and
Workers Union-PAFLU).
2. DEADLOCK BAR RULE - a petition for
certification
election
cannot
be
entertained if, before the filing of the
petition for certification election, a
bargaining deadlock to which an
incumbent or certified bargaining agent
is a party, had been submitted to
conciliation or arbitration or had become
the subject of a valid notice of strike or
lockout.
DEADLOCK arises when there is an
impasse, which presupposes reasonable
effort at good faith bargaining which,
despite noble intentions, did not
LABOR LAW COMMITTEE
IN
LABOR LAW
conclude in an agreement between the

parties.
INDICATIONS
OF
A
GENUINE
DEADLOCK:
1. the submission of the deadlock
to a
third party conciliator or
arbitrator
2. the deadlock is the subject of
a valid notice of strike or lockout
3. NEGOTIATION BAR RULE - a petition
for certification election cannot be
entertained if, before the filing of the
petition for certification election, the
duly recognized or certified union has
commenced negotiations with the
employer in accordance with Art. 250 of
the Labor Code.
4. CERTIFICATION YEAR RULE no
petition for certification election may be
filed within one year from the date of a
valid certification, consent, or run-off
election or from the date of voluntary
recognition
EXAMPLES
BARGAINING:
OF
BAD
FAITH
1. Surface Bargaining occurs when

employer constantly changes its
positions over the agreement.
2. Boulwarism occurs:
a. when the employer directly
bargains
with
the
employee
disregarding the union.
The aim was to deal with the

Union through the employees,
rather than with the employees
through the union.
b. Employer submits its proposals
and adopts a take it or leave it
stand.
This is not negotiation
because the take it or leave it stand
implies threat.
3.
Side Bar Technique
TITLE VII- A
(as incorporated by RA 6715)
102
GRIEVANCE MACHINERY AND

VOLUNTARY ARBITRATION
ART. 260. GRIEVANCE MACHINERY
AND VOLUNTARY ARBITRATION
GRIEVANCE MACHINERY - a mechanism
for the adjustment of controversies or
disputes arising from the interpretation
or implementation of the CBA and the
interpretation
or
enforcement
of
company personnel policies
GRIEVANCE - arises when a dispute or
controversy
arises
over
the
implementation or interpretation of a
CBA or from the implementation or
enforcement of company personnel
policies, and either the union or the
employer
invokes
the
grievance
machinery provision for the adjustment
or resolution of such dispute or
controversy.
NATURE OF GRIEVANCE PROCEDURE It is a must provision in any CBA and
no collective agreement can be
registered in the absence of such
procedure.
It is a part of the continuous
process of collective bargaining intended
to promote a friendly dialogue between
labor and management as a means of
maintaining industrial peace.
VOLUNTARY
ARBITRATION
contractual proceedings where parties to
a dispute select a judge of their own
choice and by consent submit their
controversy to him for determination.
All grievances not settled within 7
days from the date of its submission to
the
grievance
machinery
shall
automatically be referred voluntary
arbitration prescribed in the CBA.
Although
the
provision
mentions parties to a
collective
bargaining
agreement, it does not
mean that a grievance
machinery cannot be set up
in a CBA-less enterprise. In
any work place where
grievance can arise, a
grievance
machinery
(regardless of name) can be
established.
In a unionized company, Art.
255 allows an employee,
union member or not, to
raise a grievance directly to
the employer.
ARBITRATION MAY BE INITIATED BY:

1.
2.
SUBMISSION
AGREEMENT
where the parties define the

disputes to be resolved; or
DEMAND OR NOTICE invoking a
collective agreement
arbitration clause.
ART 261. JURISDICTION OF

VOLUNTARY ARBITRATORS OR PANEL
OF VOLUNTARY ARBITRATORS
JURISDICTION OF VOLUNTARY
ARBITRATORS:
1. EXCLUSIVE ORIGINAL JURISDICTION
CONFERRED BY LAW
a)All grievances arising from the
interpretation or implementation
of the CBA.
b) Those
arising
from
the
interpretation or enforcement of
company personnel polices.
c)Hear and decide wage distortion
issues
arising
from
the
application of any wage orders
in organized establishments.
d) Unresolved grievances arising
from the interpretation and
implementation
of
the
productivity incentive programs
under RA 6071 .
It is the labor arbiter and not the

grievance machinery which has
jurisdiction over dismissals pursuant
to the union security clause.
violations of CBA, except those
which are gross in character, shall no
longer be treated as ULP and shall
be resolved as grievances.

CHAIRPERSONS
103
MEMORY AID
GROSS VIOLATION flagrant and/or

malicious refusal to comply with the
economic provisions of the CBA.
2. JURISDICTION BY AGREEMENT OF
THE PARTIES (Art. 262)
-all other disputes including ULP
and bargaining deadlocks
The disputes the parties may
submit to a Voluntary Arbitrator
can include any or all the
disputes mentioned in Art. 217
which otherwise fall under the
exclusive jurisdiction of a labor
arbiter.
Voluntary arbitration may be
viewed as a master procedure to
prevent or resolve labor disputes
GROUNDS FOR JUDICIAL REVIEW OF
DECISIONS
OF
VOLUNTARY
ARBITRATORS:
1.
2.
3.
4.
5.
Lack of jurisdiction
Grave abuse of discretion
Violation of due process
Denial of substantial justice
Erroneous interpretation of the law
A voluntary arbitrator is a
quasi-judicial instrumentality (Sec 9
BP129 as amended by RA 7902);
hence, a petition for certiorari under
Rule 65 of the Rules of Court will lie
where a grave abuse of discretion or
an act without or in excess of
jurisdiction
of
the
voluntary
arbitrator is shown, which may be
filed with the Court of Appeals.
TITLE VIII
STRIKES AND LOCKOUTS AND
FOREIGN INVOLVEMENT IN TRADE
UNION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOUTS
ART. 263. STRIKES, PICKETING AND
LOCKOUTS
STRIKE - Any temporary stoppage
of work by the concerted action of
LABOR LAW COMMITTEE
IN
LABOR LAW
employees as a result of an industrial
or labor dispute.
IMPORTANCE:
it is the most
effective weapon of labor in protecting
the rights of employees to improve the
terms
and
conditions
of
their
employment.
Government employees may form
labor unions but are not allowed to
strike.
Only
legitimate
labor
organizations are given the right to
strike.
Ununionized workers may hold a

protest action but not a strike
Not all concerted activities are

strikes; they may only be protest
actions. And they do not necessarily
cause work stoppage by the
protesters. A strike, in contrast, is
always a group action accompanied
by work stoppage.
LOCKOUT - means the temporary
refusal of an employer to furnish work as
a result of an industrial or labor dispute.
PICKETING - the act marching to
and fro the employers premises, usually
accompanied by the display of placards
and other signs making known the facts
involved in a labor dispute. This is an
exercise of ones freedom of speech.
STRIKE-BREAKER - any person who
obstructs, impedes or interferes by
force, violence, coercion, threats or
intimidation with any peaceful picketing
by
employees
during
any
labor
controversy affecting wages, hour or
conditions of work or in the exercise of
the right to self organization or
collective bargaining
STRIKE AREA the establishment,
warehouse, 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 an fro before all
points of entrance to and exit from said
establishment
SOME EXAMPLES OF STRIKES AND
THEIR VALIDITY
A.
SIT-DOWN
STRIKE
is
characterized by a temporary work
104
stoppage of workers who thereupon

seize or occupy property of the employer
or refuse to vacate the premises of the
employer.
ILLEGAL- amounts to a
criminal act because the employees
trespass on the premises of the
employer.
B. WILDCAT STRIKE- is a work stoppage
that violates the labor contract and is
not authorized by the union. ILLEGAL- It
is not valid because it fails to comply
with certain requirements of the law, to
wit: notice of strike, vote, and report on
strike vote.
C. SYMPATHETIC STRIKES- are work
stoppages of workers of one company to
make common cause with other strikers
of other companies, without demands or
grievances of their own against the
employer. ILLEGAL - because there is no
labor dispute between the workers who
are joining the strikers and the latters
employer.
D. SECONDARY STRIKES- are work
stoppages of workers of one company to
exert pressure on their employer so that
the latter will in turn bring pressure
upon the employer of another company
with whom another union has a labor
dispute. ILLEGAL- because there is no
labor dispute involved.
IS A WELGA NG BAYAN LEGAL?
NO. A welga ng bayan is illegal
because it is a political strike and
therefore there is neither a bargaining
deadlock nor any ULP. It is a political
rally.
GROUNDS FOR THE DECLARATION
OF STRIKE:
1. deadlock in collective bargaining
(ECONOMIC); and/or
2. unfair labor practices (POLITICAL)
ECONOMIC STRIKE
ULP STRIKE
[POLITICAL]
A. NATURE
- A voluntary strike - An involuntary
because
the strike; the labor
employee
will organization
is
declare a strike to forced to go on
compel management
to grant its demands.
strike because of
the
ULP
committed
against them by
the employer. It is
an act of selfdefense since the
employees
are
being pushed to
the wall and their
only remedy is to
stage a strike.
B. INITIATED BY:
The
collective - either
bargaining agent of a.
Collective
the
appropriate bargaining agent
bargaining unit can or
declare an economic b. the legitimate
strike.
labor organization
in behalf of its
members
C. COOLING OFF PERIOD
-30 days from the
filing of the notice of
strike before the -15 days from the
intended date of filing
of
the
actual strike subject notice of strike.
to the 7-day strike
ban.
D. EXCEPTION TO THE COOLING-OFF
PERIOD
- No exception - the cooling off
period
may
be
mandatory.
- Notice of strike
and
strike
vote
maybe
dispensed
with.
They
may
strike immediately.
dispensed with, and

the union may take
immediate action in
case of dismissal
from employment of
their officers duly
elected
in
accordance with the
unions Constitution
and By-laws, which
may
constitute
union
busting
where
the
existence of the
union
is
threatened.
- BUT it must still
observe
the
mandatory
7-day
period before it
can stage a valid
strike.
E. STRIKE DURATION PAY IN CASE OF A

CHAIRPERSONS
105
MEMORY AID
LEGAL STRIKE
- not entitled to said
pay based on the
principle that a fair
days wage accrues
only for a fair days
labor
- may be awarded
the said paid in the
discretion of the
authority deciding
the case.
CHARACTERISTICS OF STRIKES:
1. there must be an established
relationship between the strikers and
the person/s against whom the strike is
called
2. the relationship must be one of
employer and employee
3.
the existence of a dispute
between the parties and the utilization
by labor of the weapon of concerted
refusal to work as a means of persuading
or coercing compliance with the working
mens demands
4. the contention advanced by the
workers that although the work ceases,
the employment relation is deemed to
continue albeit in a state of belligerent
suspension
5. there is work stoppage, which
stoppage is temporary
6.
the work stoppage is done
through the concerted action of the
employees
7. the striking group is a legitimate
labor organization, and in case of
bargaining deadlock, is the employees
sole bargaining representative.
TESTS IN DETERMINING THE
LEGALITY OF A STRIKE:
1. Purpose Test
2. Compliance with Procedural and
substantive requirements of law
3. Means employed test
1. PURPOSE TEST - The strike must be
due to either
- bargaining deadlock and/or
- unfair labor practice.
2. COMPLIANCE WITH PROCEDURAL &
SUBSTANTIVE REQUIREMENTS OF
LAW to wit (a-d):
a. notice of strike
LABOR LAW COMMITTEE
IN
LABOR LAW
b. 30/15-day cooling-off period

before
the intended date of actual
strike subject to the 7-day strike ban.
COOLING OFF PERIOD - that period
of time given the NCMB to mediate and
conciliate the parties.
It is that span of time
allotted by law for the
parties
to
settle
theirdisputes in a peaceful
manner, before staging a
strike or lockout.
c. strike vote
STRIKE VOTE - a requirement
wherein the decision to declare a strike
must be:
1. approved by a MAJORITY of the
total union membership in the
bargaining unit concerned [not
of the whole bargaining unit],
2. obtained by SECRET BALLOT
in
MEETINGS
OR
REFERENDA called for the
purpose.
PURPOSE OF A STRIKE VOTE: - to
ensure that the intended strike is a
majority decision
The report on the strike
vote must be submitted to the
DOLE at least 7 days before
the intended strike subject to
the cooling-off period.
d. 7-day strike ban

7-DAY STRIKE BAN it is the 7 day
waiting period before the date of the
purported strike [within which the union
intending to conduct a strike must at
least submit a report to the Department
as to the result of the strike vote]
intended to give the Department an
opportunity TO VERIFY whether the
projected strike really carries the
imprimatur of the majority of the union
members in addition to the cooling off
period before actual strike.
3. MEANS EMPLOYED TEST-A strike
may be legal at its inception but
106
eventually be declared illegal if the

strike is accompanied by violence
which violence is widespread,
pervasive and adopted as a matter of
policy and not merely violence which
is sporadic which normally occur in a
strike area [see prohibited activities
under art. 264].
NOTE:
What
constitutes
indispensable industry is based solely
upon the discretion of the Secretary of
Labor.
EFFECTS OF THE ASSUMPTION OF
JURISDICTION OF THE SECRETARY
NOTE: The 3 tests must concur.

Non-compliance with any of the
aforementioned requisites renders the
strike illegal.
1. AUTOMATICALLY
ENJOINS
the
intended or impending strike or
lockout
as specified in the
assumption or certification order;
EFFECT OF GOOD FAITH OF

STRIKERS ON LEGALITY OF STRIKE - A
strike may be considered legal where the
union believed that the company
committed ULP and the circumstances
warranted such belief in good faith,
although subsequently such allegations
of ULP are found out as not true. (Bacus
vs. Ople)
2. if one has already taken place at

the
time
of
assumption
or
certification, all striking or lockedout employees shall IMMEDIATELY
RETURN TO WORK; and
TOTALITY DOCTRINE - the

culpability of an employers remarks are
to be evaluated not only on the basis of
their implicit implications but are to be
appraised against the background of and
in
conjunction
with
collateral
circumstances.
Under this doctrine expressions
of opinion by an employer which, though
innocent in themselves, frequently were
held to be culpable because:
a. of the circumstances
under which they were uttered
b. the history of the particular
employers labor relations of
anti-union bias or
c. because of their connection
with an established collateral
plan of coercion or interference.
WHEN CAN THE SEC. OF LABOR
ASSUME JURISDICTION OVER A STRIKE?
1.there exists a labor dispute causing or
likely to cause a strike or lockout in a
INDUSTRY INDISPENSABLE TO THE
NATIONAL INTEREST,
2.the
Secretary
of
Labor
and
Employment may:
a. decide it, or
b. certify the same to the NLRC for
COMPULSORY ARBITRATION.
3. the employer shall immediately

resume operations and READMIT ALL
WORKERS under the same terms and
conditions prevailing before the
strike or lockout.
A motion for reconsideration

does not suspend the effects as the
assumption order is immediately
executory.
ISSUES THAT THE SECRETARY OF

LABOR CAN RESOLVE WHEN HE
ASSUMES JURISDICTION OVER A LABOR
DISPUTE:
c.
Only issues submitted to the

Secretary may be resolved by him.
(PAL vs. Sec. of Labor, 23 January
1991).
d.
Issues submitted to the Secretary

for resolution and such issues
involved in the labor dispute itself.
(St. Scholasticas College vs.
Torres; 29 June 1992)
e.
Secretary of Labor may subsume

pending labor cases before Labor
Arbiters which are involved in the
dispute and decide even issues
falling under the exclusive and
original jurisdiction of labor
arbiters such as the declaration of
legality or illegality of strike.

CHAIRPERSONS
107
MEMORY AID
(Intl Pharmaceuticals vs. Sec of

Labor; 09 January 1992).
Power of Sec. of Labor is plenary
and discretionary. (St. Lukes
Medical Center vs. Torres; 29 June
1993; reiterated in PAL vs.
Confesor; 10 March 1994).
f.
IN CASE THE STRIKE IS DECLARED

LEGAL, ARE THE STRIKERS ENTITLED
TO STRIKE DURATION PAY?
GENERAL RULE: Strikers are not
entitled to their wages during the period
of a strike, even if the strike is legal.
EXCEPTIONS:
1.
In case of a ULP STRIKE, in the

discretion of the authority deciding
the case [see table for more
distinction bet. Economic and ULP
strike]
2.
Where the strikers VOLUNTARILY

AND UNCONDITIONALLY OFFERED
TO RETURN TO WORK, but the
employer refused to accept the
offer [e.g. of an unconditional
offer: we will return tomorrow
and NOT willing to return
provided]
They are entitled to backwages from

the date the offer was made
3.
Where there is RETURN-TO-WORK

ORDER and the
employees are
discriminated against.
IN
LABOR LAW
The declaration of a strike is

NOT
a
renunciation
of
employment relation.
EXCEPTIONS - The following strikers

are NOT entitled to reinstatement:
1. Union officers who knowingly
participate in an illegal strike; and
2. any striker/union member who
knowingly
participates
in
the
commission of illegal acts during the
strike.
Those union members who

joined an illegal strike but have
not committed any illegal act
shall be reinstated but without
any backwages.
RULE IN STRIKES IN HOSPITALS

1. It shall be the duty of striking
employees or locking-out employer to
provide and maintain an effective
SKELETAL WORKFORCE of medical
and other health personnel for the
duration of the strike or lockout.
2. SECRETARY
OF
LABOR
MAY
IMMEDIATELY ASSUME JURISDICTION
WITHIN
24
HOURS
FROM
KNOWLEDGE of the occurrence of
such strike or lock-out or certify it to
the Commission for compulsory
arbitration.
ART.
ACTIVITIES
264.
PROHIBITED
LABOR ORGANIZATIONS
They are entitled to backwages

from the date of discrimination.
1. No labor organization or employer

shall declare a strike or lockout
RULE ON REINSTATEMENT OF
STRIKING WORKERS:
without
first
having
bargained
collectively
in
accordance with Title VII of
this Book or
GENERAL RULE : Striking employees

are entitled to reinstatement, regardless
of whether or not the strike was the
consequence of the employers ULP
REASON: because while out on
strike, the strikers are not considered to
have abandoned their employment, but
rather have only ceased from their labor.
LABOR LAW COMMITTEE
without first having filed

the notice required in Art. 263
or
without
the
necessary
strike or lockout vote first
108
having been obtained and

reported to the Department.
NO strike or lockout shall
declared:
b. AFTER
certification
or
submission of the dispute to
compulsory or voluntary
arbitration or
c. DURING the pendency of
cases involving the same
grounds for the strike or
lockout.
THIRD PERSONS
2. NO person [3rd persons] all 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 of selforganization or collective
bargaining or
shall aid or abet such
obstruction or interference.
NO employer shall use or employ

any STRIKE-BREAKER nor shall any
person
be
employed
as
a
strikebreaker.
PUBLIC OFFICIAL OR EMPLOYEE
4.
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
officers from taking any measure
necessary to:
a. maintain peace and order,
b.
and/or
protect life and property,
c.
enforce the law and legal
order.
PERSONS ENGAGED IN PICKETING

NO person engaged in PICKETING shall:
a. commit any act of violence,
coercion or intimidation or
b. obstruct the free ingress to or
egress from the employers premises
for lawful purposes,or
c. obstruct public thoroughfares
ART. 265. IMPROVED OFFER vs.
REDUCED OFFER BALLOTING
EMPLOYERS
3.
shall bring in, introduce or

escort in any manner, any
individual who seeks to
replace strikes in entering
or leaving the premises of a
strike area, or work in place
of the strikers.
be
a. AFTER
assumption
of
jurisdiction by the President
or the Secretary or
NO public official or employee,

including officers and personnel of
the New Armed Forces of the
Philippines of the Integrated
National Police, or armed persons,
IMPROVED OFFER
BALLOTING
1. a referendum
conducted by the NCMB
on or before the 30th day
of the strike, for the
purpose of determining
whether or not the
improved offer of the
employer is acceptable
to the union members.
REDUCED
OFFER
BALLOTING
1.
a
referendum
conducted by the
NCMB for the
purpose
of
determining
whether or not
the
reduced
offer
of
the
union
is

CHAIRPERSONS
109
MEMORY AID
acceptable
the board
directors,
trustees
partners.
PURPOSE
2. to determining
whether or not the
improved offer of the
EMPLOYER is acceptable
to the union members.
to ascertain the
real sentiment of
the silent majority
of
the
union
members on strike.
PERIOD OF FILING
3. on or before the
30th day of the strike
LIMITATION
4.
applies
economic
(deadlock)
only to
strikes
to
of
3.
on or
before the 30th
day
of
the
lockout
4.
applies
only to economic
strikes-deadlock
in
bargaining
(lockout)
ART. 266. ARREST AND DETENTION
General rule is that a police officer
cannot arrest or detain a union

member for union activities without
previous consultations with the
Secretary of Labor EXCEPT on
grounds of:
a.
national security
b.
public peace
c.
commission of a crime
BOOK SIX
POST EMPLOYMENT
TITLE I
TERMINATION OF
EMPLOYMENT
LABOR LAW COMMITTEE
LABOR LAW
ART. 279. SECURITY OF TENURE

SECURITY OF TENURE - the
constitutional
right
granted
the
employee, that the employer shall not
terminate the services of an employee
except for just cause or when authorized
by law.
RELIEFS
AVAILABLE
TO
AN
ILLEGALLY DISMISSED EMPLOYEE:
or
2.
to
determining
whether or not
the
improved
offer
of
the
UNION
is
acceptable
to
the
union
members.
to ascertain
the
real
sentiment of the
silent majority of
the
union
members
on
strike.
IN
A. REINSTATEMENT - Restoration of
the employee to the state from which he
has been unjustly removed or separated
without loss of seniority rights and other
privileges.
FORMS OF REINSTATEMENT:
ACTUAL OR PHYSICAL REINSTATEMENT
- the employee shall be admitted
back to work
2. PAYROLL REINSTATEMENT
- the employee is merely reinstated
in the payroll.
1.
May
a
court
order
the
reinstatement
of
a
dismissed
employee even if the prayer of the
complaint did not include such relief?
YES. So long as there is a finding
that the employee was illegally
dismissed, the court can order the
reinstatement of an employee even if
the complaint does not include a prayer
for reinstatement, unless, of course, the
employee has waived his right to
reinstatement. By law, an employee who
is unjustly dismissed is entitled to
reinstatement, among others. The mere
fact that the complaint did not pray for
reinstatement will not prejudice the
employee, because technicalities of law
and procedure are frowned upon in labor
proceedings (General Baptist Bible
College v. NLRC; 219 SCRA 549).
What happens if there is an order
of reinstatement but the position is no
longer available?
The employee should be given a
SUBSTANTIALLY EQUIVALENT POSITION. If
NO
SUBSTANTIALLY
EQUIVALENT
POSITION IS AVAILABLE, reinstatement
should not be ordered because that
would in effect compel the employer to
110
do the impossible. In such a

the employee should merely
SEPARATION PAY CONSISTING
MONTH SALARY FOR EVERY
SERVICE (1:1).
situation,
be given
OF ONE
YEAR OF
CIRCUMSTANCES WHEN COMPANY

MAY NOT REINSTATE DESPITE ORDER OF
REINSTATEMENT
1. TRANSFER OF BUSINESS OWNERSHIP
-There is no law requiring a
purchasing corporation to absorb the
employees of the selling corporation.
A fortiori, reinstatement of unjustly
dismissed employees CANNOT be
enforced against the new owner
UNLESS there
is an
express
agreement on the assumption of
liabilities
by
the
purchasing
corporation;
2. When reinstatement is rendered
IMPOSSIBLE due to the abolition of
the position;
3. When the business has CLOSED
DOWN;
4. PHYSICAL INCAPACITY
of the
employee; and
5. DOCTRINE OF STRAINED RELATIONS
- When the employer can no longer
trust the employee and vice-versa,
reinstatement could not effectively
serve as a remedy. This doctrine only
applies only to positions which
require trust and confidence
- Under the circumstances
where
the
employment
relationship has become so
strained
to
preclude
a
harmonious
working
relationship, and that all hopes
at reconciliation are nil after
reinstatement, it would be
more beneficial to accord the
employee
backwages
and
separation pay.
B. BACKWAGES the relief given to
an employee to compensate him for lost
earnings during the period of his
dismissal.
PERIOD COVERED BY THE
PAYMENT OF BACKWAGES - Backwages
shall cover the period from the date of
dismissal of the employee up to the date

of actual reinstatement
HOW COMPUTED - Under existing
law, backwages is computed from the
time of the illegal dismissal up to time of
actual reinstatement.
INCLUDED IN THE COMPUTATION
OF BACKWAGES
1. transportation
and
emergency
allowances
2. vacation or service incentive leave
and sick leave
3. 13th month pay.
NOTE: facilities such as uniforms,
shoes, helmets and ponchos should NOT
be included in the computation of
backwages.
REASON: said items are given free,
to be used only during official tour of
duty not for private or personal use.
CIRCUMSTANCES THAT PREVENT
AWARD OF BACKWAGES:
1. death of the employee
2. physical and mental incapacity
3. business reverses
4. closure of business
5. reinstatement of dismissed employee
confinement in jail
Which
takes
precedence
in
conflicts arising between employers
MANAGEMENT PREROGATIVE and the
employees right to security of tenure?
The employees right to security
of tenure. Thus,
an employers
management prerogative includes the
right to terminate the services of the
employee
but
this
management
prerogative is limited by the Labor Code
which provides that the employer can
terminate an employee only for a just
cause or when authorized by law. This
limitation is because no less than the
constitution recognizes and guarantees
employees right to security of tenure.
(Art. 279, Labor Code; Art. XIII, Sec. 3,
Constitution)
ART. 280. REGULAR AND CASUAL
EMPLOYMENT

CHAIRPERSONS
111
MEMORY AID
REGULAR EMPLOYMENT - one wherein

an employee is engaged to perform
activities which are usually necessary or
desirable in the usual business or trade
of the employer.
- He is a regular employee at the point
of hiring.
Test of
employment.
regularity:
nature
of
REGULAR EMPLOYEE
VS.
PROJECT EMPLOYEE
PROJECT
EMPLOYEE
REGULAR
EMPLOYEE
A project employee is
one
whose
employment is fixed
for a specific project
or undertaking the
completion of which
has been determined
at the time of the
engagement of the
employee. (See Art.
280 LC)
A
regular
employee
is
one
engaged to perform
activities which are
usually necessary or
desirable in the usual
business or trade of
the employer
TEMPORARY EMPLOYMENT OR
EMPLOYMENT FOR A FIXED SPECIFIC
PERIOD - one wherein an employee is
engaged to work on a specific project or
undertaking which is usually necessary or
desirable in the usual business or trade
of the employer, the completion of
which has been determined at the time
of the engagement of the employee.
- He does not become a regular
employee. The employment is
coterminous with the specific
period.
SEASONAL EMPLOYMENT - one
wherein an employee is engaged to work
during a particular season on an activity
that is usually necessary or desirable in
LABOR LAW COMMITTEE
LABOR LAW
the usual business or trade of the

employer.
Pakiao employees are considered
employees as long as the
employer exercises control over
the means by which such
workers are to perform their
work.
CASUAL EMPLOYMENT one wherein an

employee is engaged to perform
activities which are not necessary or
desirable in the usual trade or business
of the employer.
- becomes a regular employee after
one (1) year of service.
-
IN
Employee is considered an
regular employee insofar as the
season to which he was
employed is concerned.
- during the off-season his
employment
is
merely
suspended not terminated
(Phil. Tobacco Flue Curring and
Drying Corp. vs. NLRC).
PROBATIONARY
PERIOD
OF
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e.,
the time needed to learn the job.
It is the period during which the
employer may determine if the
employee is qualified for possible
inclusion in the regular force.
PURPOSE: To afford the employer an
opportunity to observe the fitness of a
probationary employee at work.
NOTE:The standard which the
probationary employee is to meet must
be made known by the employer to the
employee at the time of engagement.
The services of probationary employees
may be terminated for the same causes
as in the case of regular employee,
except that there is an additional ground
failure to meet the standard.
LIMITATIONS ON THE EMPLOYERS
POWER TO TERMINATE A PROBATIONARY
EMPLOYMENT CONTRACT:
1. the power must be exercised in
accordance with the specific
requirements of the contract
[COMPLIANCE
WITH
SPECIFIC
REQUIREMENTS];
2.if a particular time is prescribed,
the termination must be within
such time and if formal notice is
required, then that form must be
used
[WITHIN
PARTICULAR
PRESCRIBED TIME];
3.the employers dissatisfaction must
be real and in good faith, not
112
feigned so as to circumvent the

contract
or
the
law
[DISSATISFACTIONREAL AND IN
GOOD FAITH]; and
4.there must BE NO UNLAWFUL
DISCRIMINATION in the dismissal.
GENERAL
RULE:
Probationary
employment shall not exceed six months
from the date the employee started
working.
EXCEPTIONS:
1.
when it is covered by an
apprenticeship agreement stipulating a
longer period; or
2. when the parties to an
employment contract agree otherwise,
such as when the same is established by
company policy or when the same is
required by the nature of the work to be
performed by the employee
EFFECT
IF
PROBATIONARY
EMPLOYEE IS ALLOWED TO WORK
BEYOND 6 MONTHS
If the probationary employee is
allowed to work beyond the period of 6
months or the agreed probationary
period, said employee becomes a regular
employee by operation of law.
Under the Labor Code, an
employee who is allowed to work after a
probationary period shall be considered
a regular employee. (Art. 281.)
ART. 282. TERMINATION BY
EMPLOYER
SECURITY OF TENURE - An
employer
CANNOT
terminate
the
services of an employee EXCEPT for a
just cause or when authorized by law.
GUIDELINES TO DETERMINE THE
VALIDITY OF TERMINATION:
1. Gravity of the offense
2. Position
occupied
by
the
employee
3. Degree of damage to the
employer
4. Previous infractions of the same
offense
5. Length of service
1. Serious MISCONDUCT OR WILLFUL

DISOBEDIENCE by the employee of
the lawful orders of his employer or
representative in connection with his
work;
Misconduct- transgression of
some established and definite
rule of action, a forbidden act, a
dereliction of duty, willful in
character, and implies wrongful
intent and not mere error in
judgment. (Dept. of Labor
Manual, Sec. 4353.01)
2. Gross and habitual NEGLECT by the
employee of his duties; (Repeated
absenteeism and tardiness)
3. FRAUD OR WILLFUL BREACH by the
employee of the trust reposed in him
by his employer or duly organized
representative
Fraud must be committed
against the employer or his
representative and in connection
with the employees work.
((Dept. of Labor Manual, Sec.
4353.01 [3])
4. Commission of a CRIME OR OFFENSE
BY THE EMPLOYEE AGAINST THE
PERSON OF HIS EMPLOYER or any
immediate member of his family or
his duly authorized representative;
and
Conviction or prosecution is not
required.
5. Other causes ANALOGOUS to the
foregoing.
A cause must be due to the
voluntary or willful act or
omission of the employee.
(Nadura
v.
Benguet
Consolidated; G.R. No. L-17780)
DUE PROCESS TO BE OBSERVED
BY THE EMPLOYER - For termination of
the employment based on the any of the
just causes for termination, the
requirements of due process that an
employer must comply with are: (TWIN
NOTICES)
A. JUST CAUSES [MaNaBaCA]:

CHAIRPERSONS
113
MEMORY AID
1. Written NOTICE should be served

to the employee specifying the
ground or grounds for termination
and giving the said employee
reasonable
opportunity within
which to explain;
2. A HEARING OR CONFERENCE
should be held during which the
employee concerned, with the
assistance of counsel, if the
employee so desires, is given the
opportunity to respond to the
charge, present his evidence and
present the evidence presented
against him;
3.
A
WRITTEN
NOTICE
OF
TERMINATION, if termination is
the decision of the employer,
should be served on the employee
indicating
that
upon
due
consideration
of
all
the
circumstances, grounds have been
established
to
justify
his
termination.
For
termination
of
employment
based
on
authorized
causes,
the
requirements of due process
shall be deemed complied with
upon service of a written notice
to the employee and the
appropriate Regional office of
the Department of Labor and
employment at least thirty days
before the effectivity of the
termination
specifying
the
grounds for termination.
NOTE: Under the so-called WENPHIL
DOCTRINE if the services of the
employee was terminated due to a just
or authorized cause but the affected
employees right to due process has been
violated, the dismissal is legal but the
employee is entitled to damages by way
of indemnification for the violation of
the right.
SERRANO vs. ISETANN et. al.

abandoned
the
WENPHIL
DOCTRINE and ruled that if the
employee is dismissed under
just or authorized cause but the
affected employees right to
due process has been violated,
his
dismissal
becomes
LABOR LAW COMMITTEE
IN
LABOR LAW
ineffectual.
Therefore,
the
employee
is
entitled
to
backwages from the time he was
dismissed
until
the
determination of the justness of
the cause of the dismissal.
AGABON vs. NLRC (Nov. 17,

2004) abandoned the Serrano
doctrine and REINSTATED THE
WENPHIL DOCTRINE.
The
sanctions, however must be
stiffer than that imposed in
Wenphil.
PREVENTIVE SUSPENSION when

there is an imminent threat to the lives
and properties of the employer, his
family and representatives as well as the
offenders co-workers by the continued
service of the employee then he may be
placed under preventive suspension
pending his investigation, leading to
termination.
preventive suspension should not

last for more than thirty (30)
days. The employee should be
made to resume his work after
30 days.
it can be extended provided the

employees wages are paid after the
30 day period.
ARTS. 283-284.
B.
AUTHORIZED
CAUSES
TERMINATION BY THE EMPLOYER:
OF
1. installation of labor-saving devices

(AUTOMATION)
2. REDUNDANCY (superfluity in the

performance of a particular work)
redundancy, for purposes of the

Labor Code, exists where the
services of an employee are in
excess of what is reasonably
demanded
by
the
actual
requirements of the enterprise.
(Wishire File Co. Inc. vs. NLRC)
114
b. with a certification from

public heath officer that the
disease is incurable within 6
months
despite
due
medication and treatment.
Reorganization as a cost-saving
device
is
acknowledged
by
jurisprudence. An employer is not
precluded from adopting a new
policy conducive to a more
economical
and
effective
management, and the law does not
require that the employer should
be suffering financial losses before
he can terminate the services of
the employee on the ground of
redundancy (DOLE PHILIPPINES,
INC et al., vs. NATIONAL LABOR
RELATIONS COMMISSION et al.)
Before an employer could

dismiss an employee based on a
disease, Section 8 of Rule 1, Book VI
of the Omnibus Rules Implementing
the
Labor
Code
requires
a
certification by a competent public
health authority that the disease is
of such a nature or at such stage
that it cannot be cured within a
period of 6 months even with proper
medical treatment. (Cathay Pacific
Airways vs. NLRC and Martha
Singson)
3. RETRENCHMENT to prevent losses

(there is excess of employees and
employer wants to prevent financial
losses)
CONDITIONS UNDER WHICH AN
EMPLOYER MAY RETRENCH:
(a) substantial losses which are not
merely de minimis in extent;
(b) imminence of such substantial
losses;
(c) retrenchment would effectively
prevent the expected and additional
losses;
(d) the alleged losses and expected
losses must be proven by sufficient and
convincing
evidence.
(NDC-GUTHRIE
PLANTATIONS, INC., vs. NATIONAL LABOR
RELATIONS COMMISSION, ET. AL)
4. closing or CESSATION OF OPERATION

of the establishment or undertaking
UNLESS the closing is for the purpose
of circumventing the provisions of
the Labor Code.
5. INSTALLATION of labor saving
devices(Automation, Robotics)
DISCRIMINATION IN ANY FORM

FROM PRE-EMPLOYMENT TO POSTEMPLOYMENT, INCLUDING HIRING,
PROMOTION OR ASSIGNMENT, BASED
ON THE ACTUAL, PERCEIVED OR
SUSPECTED HIV STATUS OF AN
INDIVIDUAL
IS
PROHIBITED.
TERMINATION FROM WORK ON THE
SOLE BASIS OF ACTUAL, PERCEIVED
OR SUSPECTED HIV STATUS IS DEEMED
UNLAWFUL.
(SEC. 35, RA 8504,
HIV/AIDS LAW)
CAUSE OF
TERMINATION
Automation
Redundancy
6. DISEASE
a. the disease is incurable
within 6 months and the
continued employment of
the employee is prohibited
by law or prejudicial to his
health as well as to the
health of his co-employees
Retrenchment
Closures or
cessation
of
operations
not
due to serious
SEPARATION PAY
Equivalent to at
least one month pay or
at least one month pay
for every year of
service, whichever is
higher
Equivalent to at
least one month pay or
at least one month pay
for every year of
higher
Equivalent to one
month pay or at least
one-half month pay for
every year of service
Equivalent to one
month pay or at least
one-half month pay for
every year of service

CHAIRPERSONS
115
MEMORY AID
business losses or
financial reverses
Disease
(If due to severe

financial losses, no
separation pay due.)
Equivalent to at
least one-month salary
or to month salary
for every year of
greater, a fraction of at
least 6 months shall be
considered
one
(1)
whole year.
NOTE: ARTICLE 283 governs the

grant of separation benefits in case of
closures or cessation of operation of
business establishments NOT due to
serious business losses or cessation of
operation [North Davao Mining Corp. vs.
NLRC, et al]. Therefore, the employee
is not entitled to such benefit if the
closure was due to SERIOUS BUSINESS
LOSSES.
When termination of employment
is brought by the failure of an employee
to meet the standards of the employer in
case of probationary employment, it
shall be sufficient that a written notice
is served the employee within a
reasonable time from the effective date
of termination.
When termination is brought about
by the completion of the contract or
phase thereof, no prior notice is
required
ART. 285. TERMINATION BY

EMPLOYEE
TERMINATION BY THE EMPLOYEE:
a. WITHOUT JUST CAUSE- by serving a
WRITTEN NOTICE on the employer at
least one month in advance. The
employer upon whom no such notice was
LABOR LAW COMMITTEE
IN
LABOR LAW
served may hold the employee liable for

damages.
b. WITH JUST CAUSE - An employee may
put an end to establish WITHOUT
SERVING ANY NOTICE on the employer
for any of the following just causes
[SUCA]:
1. SERIOUS
INSULT
by
the
employer or his representative
on the hour 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.
ART. 287. RETIREMENT
RETIREMENT AGE - The age of
retirement is that specified in the CBA or
in the employment contract. In the
absence of a retirement plan or
agreement providing for retirement
benefits
of
employees
in
an
establishment, an employee upon
reaching the age of 60 years or more,
but not beyond 65 years which is hereby
declared as the compulsory retirement
age, who has served at least 5 years in
said establishment.
The rule is different with respect
to underground mining employees
whose optional retirement age is
50-60 provided they have at least
served for a period of 5 years (Art.
287 as amended by RA 8558).
BENEFITSA retiree is entitled to
a retirement pay equivalent to at least
month salary for every year of service,
a fraction of at least six (6) months
being considered as one whole year.
Unless the parties provide for
broader inclusions, the term one half
(1/2) month salary shall mean:
116
15 days plus 1/12 of the 13th month

pay and
the cash equivalent of NOT more
than 5 days of service incentive
leaves.
(22.5 days per year of service)
Under Section 26, R.A. No. 4670,
otherwise known as the Magna Carta for
Public School Teachers, public school
teachers having fulfilled the age and
service requirements of the applicable
retirement laws shall be given ONE
RANGE SALARY RAISE upon retirement,
which shall be the basis of the
computation of the lump sum of the
retirement pay and the monthly benefit
thereafter.
NOTE: Exempted from the payment
of retirement pay are retail, service and
agricultural establishments or operations
employing NOT more than ten (10)
employees or workers.
Age
60-65
Retirement
Optional
but
the
employee must have served
at least 5 years
65
Compulsory (no need

for five years of service)
BOOK SEVEN
TRANSITORY AND FINAL PROVISIONS
TITLE II
PRESCRIPTION
CLAIMS
OF
OFFENSES
AND
ART. 291. MONEY CLAIMS

PERIODS OF PRESCRIPTION
Cause
MONEY
CLAIMS
ULP
ILLEGAL
DISMISSAL
REINSTA
TEMENT
Period
of
Prescription
3 years from the
accrual of the causes of
action
1 year from the
accrual of the cause of
action
4 years from the
accrual of the cause of
action
4 years
NOTE: The period of prescription

mentioned under Article 292 of the
Labor Code refers to and is limited to
money claims, all other cases of injury
to rights of a workingman being
governed by the Civil Code. Hence,
REINSTATEMENT prescribes in 4 years.

CHAIRPERSONS
117
MEMORY AID
VENUE: The Regional Arbitration Branch

where the workplace is located (NLRC
Rules of Procedure.
Appendices
SPECIAL LAWS
SOCIAL SECURITY SYSTEM
RA1161 as amended by RA 8282
LABOR LAW COMMITTEE
IN
LABOR LAW
COVERAGE:
Compulsory:
1. Compulsory upon all employees
not over 60 years of age and
their employers
2. In case of domestic helpers,
their monthly income should not
be less than one thousand pesos
Limitation: Sec. 9 (a)
a. Any benefit already earned
by the employees under
private benefit plans existing
at the time of the approval
of the Act shall not be
discontinued, reduced or
otherwise impaired
b. Private plans which are
existing and in force at the
time of compulsory coverage
shall be integrated with the
plan of the SSS in such a way
where
the
employers
contribution to his private
plan is more than that
required of him in this Act,
he shall pay to the SSS only
the contribution required of
him and he shall continue his
contribution to such private
plan less his contribution to
the SSS so
that the
employers total contribution
to his benefit plan and and
to the SSS shall be the same
as his contribution to his
private benefit plan before
any compulsory coverage.
c. Any changes, adjustments,
modifications, eliminations
or improvements in the
benefits to be available
under the remaining private
plan,
which
may
be
necessary to adopt by reason
of the reduced contribution
thereto as a result of the
integration shall be subject
to agreements between the
employers
and
the
employees concerned
d. The private benefit plan
which the employer shall
continue for his employees
shall remain under the
employers managementand
118
control unless there is an

existing agreement to the
contrary.
e. Nothing in this Act shall be
construed as a limitation on
the right of employers and
employees to agree on and
adopt benefits which are
over
and
above
those
provided under this act
3. Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to
the following (Sec 9-A): (APAPI)
1. All
self
employed
professionals
2. Partners
and
single
proprietors
3. Actors
and
actresses
directors, scriptwriters and
news correspondents who do
not fall within the definition
of the term employee in
Section 8 (d) of this Act
4. Professional
athletes,
coaches,
trainers,
and
jockeys
5. Individual
farmers
and
fishermen
Voluntary:
1. Spouses who devote full time to
managing the household and
family affairs, unless they are
also engaged in other vocation or
employment which is subject to
mandatory coverage, may be
covered by the SSS on a
voluntary basis.
2. Filipinos recruited by foreign
based employers for employment
abroad may be covered by the
SSS on a voluntary basis
3. Employees
separated
from
employment may continue to
pay contributions to maintain his
right to full benefits (Sec. 11)
4. Self-employed with no income
(11-A)
BY AGREEMENT:
international
Any foreign government,

organization, or their
wholly-owned instrumentality employing

workers in the Philippines, may enter
into an agreement with the Philippine
government for the inclusion of such
employees in the SSS except those
already covered by their respective civil
service retirement systems (Sec.8 (j (4)).
EXCLUDED EMPLOYMENT (SEC. 8 (J)):
1. Employment purely casual and not
for the purpose of occupation or
business of the employer
2. Service performed on or in
connection with an alien vessel by
an employee if he is employed when
such
vessel
is
outside
the
Philippines.
3. Service performed in the employ of
the Philippine government or
instrumentality or agency thereof.
4. Service performed in the employ of
a foreign government, international
organization, or their wholly owned
instrumentality;
5. Services performed by temporary
employees, which may be excluded
by regulation of the commission.
EFFECTIVE DATE OF COVERAGE:
1. Employer: It shall take effect on
the first day of his operation
2. Employee: On the day of his
employment
3. Self-employed: It shall take
effect upon his registration with
SSS
Definition of Terms
EMPLOYER
Any person natural or juridical,
domestic or foreign, who carries on in
the Philippines, any trade business,
industry undertaking or activity of any
kind and uses the services of another
person who is under his orders as regards
the employment except the Government
and any of its political subdivisions,
branches or instrumentalities, including
corporations owned or controlled by the
Government
Self- employed person shall be
both the employer and employee at the
same time

CHAIRPERSONS
119
MEMORY AID
EMPLOYEE
Any
person
who
performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation for
such services, where there is an
employer- employee relationship.
Self- employed person shall be
both the employer and employee at the
same time
DEPENDENTS:
1. The legal spouse entitled by law
to receive support from the
member
2. the legitimate, legitimated or
legally adopted and illegitimate
child who is unmarried, not
gainfully employed and has not
reached 21 years of age or if 21
years of age, he is congenitally
incapacitated or while still a
minor has been permanently
incapacitated and incapable of
selfsupport, physically and
mentally and
3. the parent who is receiving
regular
support
from
the
member
BENEFICIARIES
a.
b.
c.
d.
The dependent spouse until he

or
she
remarries,
the
dependent
legitimate,
legitimated or legally adopted
and illegitimate children who
shall
be
the
primary
beneficiaries of the member
PROVIDED that the dependent
illegitimate children shall be
entitled to 50% of the share of
the legitimate, legitimated or
legally adopted children.
PROVIDED FURTHER in the
absence of the legitimated,
legally adopted or legitimate
children, illegitimate children
shall be entitled to 100% of
the benefits.
IN THEIR ABSENCE, the
dependent parents who shall
be
the
secondary
beneficiaries.
LABOR LAW COMMITTEE
e.
IN
LABOR LAW
IN THE ABSENCE OF ALL of

the foregoing, any person
designated by the covered
employee
as
secondary
beneficiary.
Benefits
1. Monthly pension
2. Dependents pension
It shall be paid for each dependent
child conceived on or before the
date of the contingency but not
exceeding five, beginning with the
youngest
without
substitution
PROVIDED that where there are
legitimate and illegitimate children,
the former shall be preferred.
3. Retirement benefits
A member who has paid at least 120
monthly contributions prior to
the semester of retirement and
who:
a. has reached the age of
60 years and is already
separated
from
employment
or
has
ceased to be selfemployed
b. has reached the age of
65 years, shall be
entitled for as
A covered member who is 60 years
old not qualified under No. 1
shall still be entitled to
retirement benefits PROVIDED,
he
is
separated
from
employment
and
is
not
continuing
payment
of
contributions to the SSS on his
own.
SUSPENSION OF MONTHLY PENSION:
Upon the re-employment or
resumption of self-employment
of a retired employee who is
less than 65 years old.
4. Death Benefits
5. Permanent disability benefits
6. Funeral Benefit
120
A funeral grant equivalent to Twelve

thousand pesos (P12, 000.00) shall
be paid, in cash or in kind, to help
defray the cost of funeral expenses
upon the death of a member,
including
permanently
totally
disabled member or retiree.
7. Sickness benefit
Requirements:
a. A member must have paid at
least 3 monthly contributions
in the twelve month period
immediately preceding the
semester of sickness or injury
b. and is confined therefor for
more than three days in a
hospital or elsewhere with the
approval of the SSS
8. Maternity Leave Benefit
It shall be paid
to a female
employee who has paid at least 3
monthly contributions in the twelve
month period immediately preceding
the semester of her childbirth or
miscarriage PROVIDED:
a. That the employee shall have
notified her employer of her
pregnancy and the probable
date of her childbirth which
notice shall be transmitted to
the SSS.
b. The full payment shall be
advanced by the employer
within 30 days from the filing
of
the
maternity
leave
application
c. Payment of daily maternity
benefits shall be a bar to the
recovery of sickness benefits
d. The
maternity
benefits
provided under this section
shall be paid only for the first
4 deliveries or miscarriages
e. The SSS shall immediately
reimburse the employer 100%
of the benefits advanced by
the latter
f. If no contributions were
remitted by the employer or
no notice was given to SS, the
employer shall be liable for
damages equivalent to the
benefits which said employee
member would otherwise have

been entitled to.
Non-transferability of benefits (Sec.

15)
Such benefits are not transferable
and no power of attorney or other
document
executed
by
those
entitled thereto, in favor of any
agent, attorney or any other person
for the collection thereof on their
behalf shall be recognized, except
when they are physically unable to
collect personally such benefits.
Sources of Fund
1. Collection:
Beginning on the last day of the
month
when
an
employees
compulsory coverage takes effect
and every month thereafter during
his employment, his employer shall
pay the employers contribution and
shall deduct and withhold from such
employees monthly salary the
employees contribution.
The same time of collection for
self-employed
2. Remittance:
It shall be remitted within the first
10 days of each calendar month
following the month for which they
are applicable or within such time
as the Commission may prescribe.
For self-employed they shall
remit their contributions quarterly
on such dates and schedules as the
Commission may require.
(NOTE: SEE TABLE ON SOCIAL WELFARE
LEGISLATION FOR COMPARISON WITH
GSIS)
GOVERNMENT SERVICE
INSURANCE SYSTEM
RA 8291
COMPULSORY MEMBERSHIP (Sec. 3)
Compulsory for all employees (as
defined in Section 2 (d) of GSIS Law)
receiving compensation who have not

CHAIRPERSONS
121
MEMORY AID
reached the compulsory retirement age,

irrespective of employment status,
EXCEPT MEMBERS OF THE ARMED
FORCES AND THE PNP, subject to the
condition that they must settle first
their financial obligations with the GSIS
and contractuals who have no employer
and employee relationship with the
agencies they serve.
ELECTION INCLUDING PERIODS OF SERVICE AT

DIFFERENT TIMES UNDER THE AUTHORITY OF
THE REPUBLIC OF THE PHILIPPINES AND THOSE
THAT MAY BE PRESCRIBED BY THE GSIS IN
COORDINATION WITH THE CIVIL SERVICE
COMMISSION.
All
service
credited
for
retirement, resignation or separation for
which corresponding benefits have been
awarded shall be EXCLUDED in the
computation of service in case of
reinstatement in the service of an
employer and subsequent retirement or
separation which is compensable.
Dependents:
1. The legitimate spouse dependent
for support upon the member or
pensioner
2. The
legitimate,
legitimated
legally adopted child, including
the illegitimate child who is:
a. unmarried,
b. not gainfully employed,
c. not over the age of
majority,
d. or is over the age of
majority
but
incapacitated
and
incapable of self-support
due to a mental or
physical defect acquired
prior to age of majority
3. Parents dependent upon the
member for support
Primary Beneficiary
The legal dependent spouse until
he/she remarries
Secondary Beneficiary
The dependent parents and subject
to the restrictions on dependent
children, the legitimate descendants
Disability
Any loss or impairment of the normal
functions of the physical and/or
mental faculty of a member which
reduces or
eliminates his/her
capacity to continue with his/her
current gainful occupation or engage
in any other gainful occupation.
Total Disability
Complete incapacity to continue
with his present employment or
engage in any gainful occupation due
to the loss or impairment of the
normal functions of the physical
and/or mental faculties of the
member
Permanent Total Disability
Accrues or arises when recovery
from impairment mentioned in
Section 2 (Q) (defining disability) is
medically remote
Definition of Terms
Employer:
The
national
government,
its
political
subdivisions,
branches,
agencies
or
instrumentalities
including GOCCs and financial
institutions with original charters,
the constitutional commissions and
the judiciary
Employee or Member:
Any person receiving compensation
while in the service of an employer
as defined herein, whether by
LABOR LAW COMMITTEE
LABOR LAW
election
or
appointment,
irrespective of status appointment,
EXCEPT FOR THE MEMBERS OF

THE JUDICIARY AND CONSTITUTIONAL
COMMISSIONS WHO SHALL HAVE LIFE
INSURANCE ONLY, all members of the
GSIS
shall
have
life
insurance,
retirement and all other social security
protection
such
as
disability,
survivorship,
separation
and
unemployment benefits.
COMPUTATION OF SERVICE
The computation of service for
the purpose of determining the amount
of benefits payable shall be FROM THE
DATE
OF
THE
ORIGINAL
APPOINTMENT/
IN
122
Temporary Total Disability

Accrues or arises when impaired
physical and/or mental faculties can
be rehabilitated and/or restored to
their normal functions
Permanent Partial Disability

Accrues
or
arises
upon
the
irrevocable loss or impairment of
certain portion/s of the physical
faculties, despite which the member
is able
to pursue a gainful
occupation.
Sources of Fund
Contributions
1. It shall be mandatory for the
member and the employer to
pay the monthly contributions.
2. The employer shall include in its
annual
appropriation
the
necessary amounts for its share
of the contributions indicated
above PLUS any additional
premiums that may be required
on account of the hazards or
risks
of
its
employees
occupation.
3. Failure to do so shall subject the
employers
to
penal
or
administrative sanctions.
Collection and Remittance
1. Collection: The employer shall
report to the GSIS all pertinent
information
regarding
the
employee and shall deduct each
month from the salary or
compensation of each employee
the contribution payable by him.
2. Remittance: The employer shall
remit directly to the GSIS the
employees
and
employers
contributions within the first ten
(10) days of the calendar month
following the month to which the
contributions apply.
Benefits
1.
SEPARATION BENEFITS (SEC.

11):
Separation benefits are given
to the:
a. The member resigns or

separates from the service
after he has rendered at
least three (3) years of
service but less than fifteen
(15) years or
1. The member resigns or
separates from office after
he has rendered at least
fifteen (15) years of service
and is below sixty (60) years
of age at the time of
resignation or separation.
Separation
include:
benefits
likewise
UNEMPLOYMENT
OR
INVOLUNTARY
SEPARATION
BENEFITS (Sec. 12): shall be
paid to a permanent employee
who is involuntarily separated
from the service due to the
abolition of his office or position
usually
resulting
from
reorganization PROVIDED that
he has been paying integrated
contributions for at least one (1)
year prior to contributions.
2.
RETIREMENT BENEFITS:
Conditions for entitlement (Sec.
13-A):
Member has rendered at least 15
years of service
He is at least 60 years of age at
the time of retirement
He is not receiving a monthly
pension
benefit
from
permanent total disability
3.
PERMANENT
DISABILITY
BENEFITS
General
Conditions
for
Entitlement (Sec. 15):
The member must have suffered
permanent disability for reasons
NOT DUE to:
1. Grave misconduct
2. Notorious negligence
3. Habitual intoxication, or
willful intention to kill
himself or another.

CHAIRPERSONS
123
MEMORY AID
Specific conditions for

entitlement (Sec. 16):
He shall receive monthly income
benefit for life equal to the
basic monthly pension effective
from the date of the disability.
PROVIDED:
1. He is in the service at the
time of the disability
2. IF
SEPARATED
FROM
SERVICE, he has paid at least
36 monthly contributions
within the 5 year period
disability or has paid a total
of at least 180 monthly
contributions prior to the
disability
3. IF HE WAS IN SERVICE AND
HAS PAID A TOTAL OF AT
LEAST
180
MONTHLY
CONTRIBUTIONS, in addition
to the monthly income
benefit, he shall receive a
cash payment equivalent to
18 times his basic monthly
pension
4. However, a member cannot
enjoy the monthly income
benefit
for
permanent
disability and the old age
retirement simultaneously.
Unless the member has reached
the
minimum
retirement
age,
disability
benefits
shall
be
SUSPENDED when:
1. He is reemployed
2. He
recovers
from
his
disability as determined by
the GSIS, whose decision
shall be final and binding
3. He fails to present himself
for medical examination
when required by the GSIS
PERMANENT
PARTIAL
DISABILITY (Sec. 17):
He must satisfy specific
conditions 1-3.
4. TEMPORARY DISABILITY
BENEFITS (Sec. 18)
The member shall be entitled to
75% of the current daily
LABOR LAW COMMITTEE
IN
LABOR LAW
compensation for each day or

fraction thereof of temporary
disability benefit not exceeding
120 days in one calendar year
after exhausting all sick leave
credits and collective bargaining
agreement sick leave benefits.
PROVIDED:
1. He is in service at the time
of his disability
2. If
separated,
he
has
rendered at least 3 years of
service and has paid at least
6 monthly contributions in
the
12month
period
disability
HOWEVER, a member cannot
enjoy temporary total disability benefit
and sick leave pay simultaneously
IN ADDITION, If the disability
requires more extensive treatment that
lasts beyond 120 days, the payment of
the temporary total disability benefit
may be extended by the GSIS but not to
exceed a total of 240 days
LASTLY, and in no case shall the
benefit be less than 70 pesos a day.
5. SURVIVORSHIP BENEFITS:
For purposes of survivorship
benefits, legitimate children
shall include legally adopted
and legitimated children.
Death of a Member
Upon the death of a member, the
primary beneficiaries shall be entitled
to:
1. SURVIVORSHIP
PROVIDED:
PENSION,
a. Member was in service at

the time of his death
b. If separated from service,
has rendered at least 3
years of service and paid
with the 5- year period
immediately preceding his
death or has paid a total of
at least 180 monthly
contributions.
124
2. SURVIVORSHIP PENSION PLUS A

CASH PAYMENT EQUIVALENT TO
100%
OF
HIS
AVERAG`E
MONTHLY COMPENSATION FOR
EVRY YEAR OF SERVICE
PROVIDED: The deceased was in
the service at the time of his
death with at least three years of
service
3. SURVIVORSHIP PENSION PLUS A
CASH PAYMENT EQUIVALENT TO
100% OF HIS AVERAGE MONTHLY
COMPENSATION FOR EVERY YEAR
OF
SERVICE
HE
PAID
CONTRIBUTIONS BUT NOT LESS
THAN P12, 000
PROVIDED That the deceased has
rendered at least 3 years of
service prior to his death but does
not qualify under 1 and 2.
ORDER
OF PAYMENT OF THE
SURVIVORSHIP PENSION
IN THE ABSENCE OF PRIMARY

BENEFICIARIES, THE SECONDARY
BENEFICIARIES SHALL BE ENTITLED
TO:
1. Cash payment equivalent to
100% of his average monthly
compensation for each year of
service he paid contributions,
but not less than P12,000
PROVIDED that the member is in
service at the time of his death
and has at least 3 years of
service.
2. In the absence of secondary
beneficiaries , the benefits
under this paragraph shall be
paid to the legal heirs
6. FUNERAL BENEFITS:
It shall not be less than twelve
thousand pesos (P12,000.00)
PROVIDED that
it shall be
increased to at least eighteen
thousand pesos (P18,000.00)
after five years and shall be paid
upon death.
1.
When the dependent spouse is

the only survivor, he/shall
receive the basic survivorship
pension for life or until he/she
remarries.]
2.
When only dependent children

are the survivors, they shall be
entitled
to
the
basic
survivorship pension for as long
as they are qualified, plus the
dependent childrens pension.
3.
When the survivors are the

dependent spouse and the
dependent
children, the
dependent spouse shall receive
the basic survivorship pension
for life or until he/she
remarries, and the dependent
children shall receive
the
dependents pension.
7. LIFE INSURANCE BENEFITS

All employees except members
of the AFP and the PNP shall be
compulsorily covered with life
insurance.
Adjudication of Claims and Disputes
PRESCRIPTION OF CLAIMS
Claims for benefits under the Act
except for life and retirement shall
prescribe AFTER 4 YEARS FROM THE
DATE OF THE CONTINGENCY.
JURISDICTION
GSIS shall have the exclusive and
original jurisdiction to settle any dispute
arising under the Act and any other laws
administered by the GSIS.
Appealable under Rule 43 and 45
Of the 1997 Rules of Civil Procedure. The
appeal shall not stay the execution of
the order or award unless ordered by the
Boards, CA, or SC and the appeal shall
be without prejudice to the special civil
action of certiorari when proper.

CHAIRPERSONS
125
MEMORY AID
LABOR LAW COMMITTEE
IN
LABOR LAW
126

CHAIRPERSONS
127
MEMORY AID
LABOR LAW COMMITTEE
IN
LABOR LAW
128

CHAIRPERSONS
129
MEMORY AID
LABOR LAW COMMITTEE
IN
LABOR LAW
130

CHAIRPERSONS
131
MEMORY AID
LABOR LAW COMMITTEE
IN
LABOR LAW
132

CHAIRPERSONS
133
MEMORY AID
NATIONAL HEALTH INSURANCE

ACT OF 1995
(RA NO. 7875)
GENERAL OBJECTIVES:
1. Provide all citizens of the
Philippines with the mechanism
to gain financial access to health
services
2. Create the National Health
Insurance Program hereinafter
referred to as the Program, to
serve as the means to help the
people pay for health care
services
3. Prioritize and accelerate the
provision of health services to all
Filipinos,
especially
that
segment of the population who
cannot afford such services; and
4. Establish the Philippine Health
Insurance
Corporation,
hereinafter referred to as the
Corporation, that will administer
LABOR LAW COMMITTEE
IN
LABOR LAW
thge Program at the central and

local levels.
Definition of Terms
1. Dependent:
a. The legitimate spouse who is not
a member
b. The unmarried and unemployed
legitimate,
legitimated,
illegitimate,
acknowledged
children as appearing in the
birth certificate; legally adopted
or step-children below twentyone years of age
c. Children who are 21 years old or
above
but
suffering
from
congenital
disability,
either
physical or mental, or any
disability acquired that renders
them totally dependent on the
member for support
d. Parents who are 60 years old or
above whose monthly income is
below an amount to be
determined by the Corporation
2. Employer
A natural or juridical person who
employs the services of an employee
134
3. Employee
Any person who performs services
for an employer in which either or
both mental and physical efforts are
used and who receives compensation
for such services, where there is an
THE NATIONAL HEALTH INSURANCE

PROGRAM
Establishment and Purpose

It shall provide health insurance
coverage
and
ensure
affordable,
acceptable, accessible, and available
health care srvices for all citizens of the
Philippines.
It shall as a means for the
healthy to help pay for the care of the
sick and for those who can afford
medical care to subsidize those who
cannot
Coverage
All citizens of the Philippines shall be
covered by the National health Insurance
Program
Excluded Personal Health Services

1. non-prescription drugs and services
2. outpatient
psychotherapy
and
counselling for mental disorders
3. drug
and
alcohol
abuse
or
dependency treatment
4. cosmetic surgery
5. home and rehabilitation services
6. optometric services
7. normal obstetrical services
8. cost-ineffective procedures which
shall be defined by the Corporation
Entitlement to Benefits
1. A member whose premium for at
least 3 months have been paid within
6 months prior to the first day of his
or his dependents availment
2. He must show that he contributes
thereto with sufficient regularity as
evidenced by their health insurance
ID card.
3. He must not be currently subject to
legal penalties
Benefit Package
1. Inpatient hospital care
a. room and board
b. services
of
health
care
professionals
c. diagnostic, laboratory and other
medical examination services
d. use of surgical or medical
equipment and facilities
e. prescription
drugs
and
biologicals
2. Outpatient care
a. services
of
health
care
professionals
b. diagnostic, laboratory and other
medical examination services
c. personal preventive services
d. prescription
drugs
and
biologicals
3. Emergency and transfer services
4. Other health care services
MONTHLY CONTRIBUTIONS NEED

NOT BE PAID BY THE FOLLOWING
TO
BE
ENTITLED
TO
THE
PROGRAMS BENEFITS
1. Retirees and pensioners of SSS
and GSIS
2. Members who have paid at least
3. Enrolled indigents
NOTE:
TRANSFER OF HEALTH INSURANCE

FUNDS OF SSS AND GSIS
It shall be transferred to the

Corporation within 60 days from the
promulgation of the Implementing Rules
and Regulation
The SSS and GSIS shall continue to
perform Medicare functions under
contract with the Corporation until such
time that such functions are assumed by
the Corporation.

CHAIRPERSONS
135
MEMORY AID
TRANSFER
OF
MEDICARE
FUNCTIONS OF THE SSS AND GSIS
Within
5
years
from
the
promulgation of the implementing rules
and regulations. But the SSS and GSIS
shall continue performing its Medicare
functions beyond the stipulated 5-year
period if such extension will benefit
Program members.
AN ACT DECLARING SEXUAL
HARASSMENT UNLAWFUL IN THE
EMPLOYMENT, EDUCATION OR TRAINING
ENVIRONMENT,A ND FOR OTHER
PURPOSES
(REPUBLIC ACT NO. 7877)
DECLARATION OF POLICY.
The State shall:
1. value the dignity of every
individual,
enhance
the
development of its human
resources,
2. guarantee full respect for human
rights, uphold the dignity of
workers, employees, applicants
for employment, students or
those
undergoing
training,
instruction or education.
Towards this end, all forms of sexual
harassment
in
the
employment,
education or training environment are
hereby declared unlawful.
The law punishes sexual harassment
if the same is:
1. work-related;
2. education-related;
3. training-related
WORK, EDUCATION
RELATED
SEXUAL
DEFINED.
OR TRAININGHARASSMENT
When work, education or training

related sexual harassment is committed:
a. By an employer, employee,
manager, supervisor, agent of the
employer, teacher, instructor,
professor, coach, trainor, or any
other person
who,
having
LABOR LAW COMMITTEE
IN
LABOR LAW
authority, influence or moral

ascendancy over another
b. In a work or training or
education environment
c. Demands, Requests or otherwise
Requires any sexual favor from
the other regardless of whether
the
demand,
request
or
requirement for submission is
accepted by the object of said
act.
A. in a work-related or employment
environment, sexual harassment is
committed when:
1. The sexual favor is made as a
condition in the hiring or in the
employment, re-employment or
continued employment of said
individual, or in granting said
individual
favorable
compensation,
terms,
conditions,
promotions
or
privileges, or the refusal to grant
the sexual favor results in
limiting,
segregating
or
classifying the employee which
in any way would discriminate,
deprive or diminish employment
opportunities
or
otherwise
adversely affect said employee;
2. The above acts would impair the
employees rights and privileges
under existing labor laws;
3. The above acts would result in
an intimidating, hostile or
offensive environment for the
employee.
B. in an education or training
environment, sexual harassment is
committed:
1. Against one who is under the
care, custody or supervision of
the offender;
2. Against one whose education,
training,
apprenticeship
or
tutorship is entrusted to the
offender;
3. When the sexual favor is made a
condition to the giving of a
passing grade, or the granting
honors and scholarships, or the
payment of a stipend, allowance
136
or other benefits, privileges or

considerations;
4. When the sexual advances result
in an intimidating, hostile or
offensive environment for the
result, trainee or apprentice.
Any person who directs or induces
another to commit any act of sexual
harassment as herein defined, or who
cooperates in the commission thereof by
another without which it would not have
been committed shall also be held liable
under this Act.
DUTY OF THE EMPLOYER OR HEAD OF
OFFICE
IN
A
WORK-RELATED,
EDUCATION
OR
TRAINING
ENVIRONMENT.
It is the duty of the Employer or
Head of Office in a Work-related,
Education or Trainings Environment.
1. To prevent or deter the
commission of acts of sexual
harassment and,
2. To provide the procedures for
the resolution, settlement or
prosecution of acts of sexual
harassment.
Towards this end, the employer or head
of office shall:
a. Promulgate appropriate rules
and regulations in consultation
with and jointly approved by the
employees
or
students
or
trainees, through their duly
designated
representatives,
prescribing the procedure for the
investigation
of
sexual
harassment cases and the
administrative
sanctions
therefor.
Administrative sanctions shall
not be a bar to prosecution in the
proper courts for unlawful acts of
sexual harassment.
The said rules and regulations
issued pursuant to this subsection
shall include, among others,
a)
b)
guidelines on proper decorum in

the workplace and educational
or training institutions.
The creation of a committee on
decorum and investigation of
cases on sexual harassment.
The committee shall conduct

meetings, as the case may be, with
officers and employees, teachers,
instructors, professors, coaches,
trainors and students or trainees to
increase understanding and prevent
incidents of sexual harassment. It
shall also conduct the investigation
of alleged cases constituting sexual
harassment
In the case of a work-related
environment, the committee shall be
composed of at least one (1)
representative
each
from
the
management, the union, if any, the
employees from the supervisory
rank, and from the rank and file
employees
In the case of the educational or
training institution, the committee
shall be composed of at least one (1)
representative
from
the
administration,
the
trainors,
teachers, instructors, professors or
coaches and students or trainees, as
the case may be.
The employer or head of office,
educational or training institution
shall disseminate or post a copy of
this Act for the information of all
concerned.
LIABILITY OF THE EMPLOYER, HEAD
OF OFFICE, EDUCATIONAL OR TRAINING
INSTITUTION.
The employer or head of office,
educational or training institution shall
be solidarily liable for damages arising
from the acts of sexual harassment
committed
in
the
employment,
education or training environment if the
employer or head of office, educational
or training institution is informed of such

CHAIRPERSONS
137
MEMORY AID
acts by the offended party and no

immediate action is taken thereon.
INDEPENDENT ACTION FOR DAMAGES

Nothing in this Act shall preclude the
victim of work, education or trainingrelated
sexual
harassment
from
instituting a separate and independent
action for damages and other affirmative
relief.
PENALTIES
Any person who violates the
provisions of this Act shall, upon
conviction,
be
penalized
by
imprisonment of not less than one (1)
month nor more than six (6) months, or
a fine of not less than Ten thousand
pesos (P10,000) nor more than Twenty
thousand pesos (P20,000), or both such
fine and imprisonment at the discretion
of the court.
PRESCRIPTION
Any action arising from the
violation of the provisions of this Act
shall prescribe in three (3) years.
AN ACT PROVIDING FOR STRONGER

DETERRENCE AND SPECIAL
PROTECTION AGAINST CHILD
ABUSE, EXPLOITATION AND
DISCRIMINATION, PROVIDING
PENALTIES FOR ITS VIOLATION AND
FOR OTHER PURPOSES
(REPUBLIC ACT 7610)
POLICY.
It is hereby declared to be the policy
of the State to :
1. Provide special protection to
children from all forms of abuse,
neglect, cruelty, exploitation
and discrimination, and other
conditions prejudicial to their
development;
2. Provide sanctions for their
commission and
3. Carry out a program for
prevention and deterrence of
LABOR LAW COMMITTEE
IN
LABOR LAW
and
crisis
intervention
in
situations
of
child
abuse,
exploitation and discrimination.
The State shall intervene on behalf
of the child when:
1. The parent, guardian, teacher or
person having care or custody of
the child fails or is unable to
protect the child against abuse,
exploitation and discrimination
or
2. When such acts against the child
are committed by the said
parent, guardian, teacher or
person having care and custody
of the same.
The best interests of children shall
be the paramount consideration in all
actions concerning them
Every effort shall be exerted to
promote the welfare of children and
enhance their opportunities for a useful
and happy life.
CHILDREN persons below 18 years of
age or those over but are unable to fully
take care of
themselves or protect
themselves from abuse, neglect, cruelty,
exploitation or discrimination because of
a physical or mental disability or
condition
CHILD ABUSE - maltreatment, whether
habitual or not, of the child which
includes any of the following:
1. Psychological
and
physical
abuse, neglect, cruelty, sexual
abuse
and
emotional
maltreatment;
2. Any act by deeds or words,
which debases, degrades or
demeans the intrinsic worth and
dignity of a child as a human
being;
3. Unreasonable deprivation of his
basic needs for survival, such as
food or shelter; or
4. Failure to immediately give
medical treatment to an injured
child
resulting
in
serious
impairment of his growth and
138
development,
or
in
his
permanent incapacity or death.
"COMPREHENSIVE PROGRAM AGAINST
CHILD ABUSE, EXPLOITATION AND
DISCRIMINATION":
refers
to
the
coordinated program of services and
facilities to protect children against:
1. Child prostitution and other
sexual abuse;
2. Child trafficking;
3. Obscene
publications
and
indecent shows;
4. Other acts of abuse; and
5. Circumstances which threaten or
endanger the survival and
normal development of children.
RULE ON CHILD LABOR
Children below
fifteen (15)
years of age SHALL NOT BE EMPLOYED
Except:
1. When a child works directly under
the sole responsibility of his parents
or legal guardian and where only
members of the employer's family
are employed
However, the ff. conditions must be
met:
That
his
employment
neither endangers his life,
safety, health and morals,
nor impairs his normal
development;
That the parent or legal
guardian shall provide the
said minor child with the
prescribed primary and/or
secondary education;
2. Where a child's employment or
participation in public entertainment or
information through cinema, theater,
radio or television is essential
However the ff. conditions must be
met:
1. The
employment
contract
is
concluded by the child's parents or
legal guardian, with the express
agreement of the child concerned, if
possible, and approval of

Department
of
Labor
Employment
the
and
2. That the following requirements in

all instances are strictly complied
with:
a.
b.
c.
The employer shall ensure the

protection,
health,
safety,
morals and normal development
of the child;
The employer shall institute
measures to prevent the child's
exploitation or discrimination
taking into account the system
and level of remuneration and
the duration and arrangement
of working time; and
The employer shall formulate
and implement, subject to the
approval and supervision of
competent authorities, a
continuing programme for
training and skills acquisition of
the child.
In the above exceptional cases

where any such child may be employed,
the employer shall first secure, before
engaging such child, a work permit from
the
Department
of
Labour
and
Employment
which
shall
ensure
observance of the above requirements.
(RA 7610, as amended by RA 7658)
PROHIBITION ON THE EMPLOYMENT
OF
CHILDREN
IN
CERTAIN
ADVERTISEMENTS.
No person shall employ child
models
in
all
commercials
or
advertisements
promoting
alcoholic
beverages, intoxicating drinks, tobacco
and its by-products, and violence. (Sec.
14 RA 7610)
COMPLIANCE WITH PD 603
Every employer shall comply with
the duties provided for in Articles 108
and 109 of PD 603 (Child and Youth
Welfare Code):
Article 108, PD 603 Duty of
Employer to Submit Report
Article 109, PD 603 Register of
Children

CHAIRPERSONS
139
MEMORY AID
PROHIBITION
AGAINST
CHILD
DISCRIMINATION
No employer shall discriminate
against any person in respect to terms
and conditions of employment on
account of his age. (Art. 140 Labor
Code)
13TH MONTH PAY LAW

(P.D. 851)
SEC. 2.
TERMS
"BASIC
SALARY"
include
all
remunerations or earnings paid by an
employer to an employee for services
rendered but may not include:
1. Cost-of-living allowances
2. Profit-sharing payments, and
3. All allowances and monetary
benefits
which
are
not
considered or integrated as part
of the regular or basic salary of
the employee at the time of the
promulgation of the Decree on
December 16, 1975.
WHAT CAN BE CONSIDERED AS
13TH MONTH PAY:
1. Christmas bonus
2. Midyear bonuses
3. Cash bonuses
SEC. 3.
EMPLOYERS COVERED
- The Decree shall apply to all

employers except to:
a) Distressed employers, - such as
1. those which are currently
incurring substantial losses; or
2. in the case of non-profit
institutions and organizations,
where their income, whether
from donations, contributions,
grants and other earnings from
any source, has consistently
declined by more than forty
LABOR LAW COMMITTEE
LABOR LAW
(40%) percent of their normal

income for the last two (2)
years, subject to the provision of
Section 7 of this issuance;
b)
c)
DEFINITION OF CERTAIN
"THIRTEENTH-MOTH PAY" - shall mean

one twelfth (1/12) of the basic salary of
an employee within a calendar year;
IN
The Government and any of its

political subdivisions, including
GOCCs except those corporations
operating essentially as private
subsidiaries of the Government;
Employers already paying their
employees 13-month pay or
more in a calendar year of its
equivalent at the time of this
issuance;
d)
Employers of household helpers

and persons in the personal
service of another in relation to
such workers; and
e)
Employers of those who are paid

on purely commission, boundary,
or task basis, and those who are
paid a fixed amount for
performing a specific work,
irrespective
of
the
time
consumed in the performance
thereof, except where the
workers are paid on piece-rate
basis in which case the employer
shall be covered by this issuance
insofar as such workers are
concerned.
WORKERS PAID ON PIECE-RATE BASIS

refer to those who are paid a standard
amount for every piece or unit of work
produced that is more or less regularly
replicated, without regard to the time
spent in producing the same.
"ITS EQUIVALENT" (as used in paragraph
c) hereof) shall include:
1. Christmas bonus
2. mid-year bonus
3. profit-sharing payments and
4. other cash bonuses amounting to
not less than 1/12th of the basic
salary but shall not include cash
and stock dividends, cost of
living allowances and all other
allowances regularly enjoyed by
the employee, as well as nonmonetary benefits.
140
Where an employer pays less than

1/12th of the employees basic salary,
the employer shall pay the difference.
SEC. 4.
EMPLOYEES COVERED
Except as provided in Section 3
of this issuance, all employees of
covered employers shall be entitled to
benefit provided under the Decree who
are receiving not more than P1,000 a
month, regardless of their position,
designation or employment status, and
irrespective of the method by which
their wages are paid, provided that they
have worked for at least one month
during the calendar year.
WHO ARE EXCLUDED FROM
COVERAGE:
1. government employees
2. household helpers
3. employees paid purely on
commission basis
4. employees already receiving
13th month pay
SEC. 5.
OPTION OF COVERED
EMPLOYERS
A covered employer may pay
one-half of the 13th-month pay required
by the Decree before the opening of the
regular school year and the other half on
or before the 24th day of December of
every year.
In any establishment where a
union has been recognized or certified as
the collective bargaining agent of the
employees therein, the periodicity or
frequency of payment of the 13th month
pay may be the subject of agreement.
SEC. 6.
SPECIAL FEATURE OF
BENEFIT
The benefits granted under this
issuance shall not be credited as part of
the regular wage of the employees for
purposes of determining overtime and
premium pay, fringe benefits, as well as
premium contributions to the State
Insurance Fund, social security, medicare
and private welfare and retirement
plans.
SEC. 7.
EXEMPTION
OF
DISTRESSED EMPLOYERS
Distressed
employers
shall
qualify for exemption from the
requirement of the Decree upon prior
authorization by the Secretary of Labor.
SEC. 8.
REPORT
OF
COMPLIANCE
Every covered employer shall
make a report of his compliance with the
Decree to the nearest regional labor
office not later than January 15 of each
year.
SEC. 9.
ADJUDICATION
OF
CLAIMS
Non-payment of the thirteenthmonth pay provided by the Decree and
these rules shall be treated as money
claims cases and shall be processed in
accordance with the Rules Implementing
the Labor Code of the Philippines and
the Rules of the National Labor Relations
Commission.
SEC. 10.
PROHIBITION AGAINST
REDUCTION OR ELIMINATION OF
BENEFITS
Nothing
herein
shall
be
construed to authorize any employer to
eliminate, or diminish in any way,
supplements, or other employee benefits
or favorable practice being enjoyed by
the employee at the time of
promulgation of this issuance.
PRIVATE SCHOOL TEACHERS
Private
school
teachers,
including faculty members of colleges
and universities, are entitled to 1/12 of
their annual basic pay regardless of the
number of months they teach or are paid
within a year.
OT PAY
Overtime pay, earnings and other
remunerations which are not part of the
basic salary shall not be included in the
computation of the 13-month pay.
RA 8042: MIGRANT WORKERS AND

OVERSEAS FILIPINOS ACT 0F 1995"
Approved on 07 June
1995 and took effect on 15 July 1995.

CHAIRPERSONS
141
MEMORY AID
As indicated in its title, the law

institutes the policies of overseas
employment and establishes a higher
standard of protection and promotion of
the welfare of migrant workers, their
families, and of overseas Filipinos in
distress.
GUARANTEE OF PROTECTION FOR
OVERSEAS WORKERS
The State shall deploy overseas
Filipino workers only in countries where
the rights of Filipino migrant workers are
protected. The government recognizes
any of the following as a guarantee for
the protection of the receiving country
of the rights of overseas Filipino
workers:
1. It has existing labor and social laws
protecting the rights of migrant
workers;
2. It is a signatory to multilateral
conventions,
declarations
or
resolutions relating to the protection
of migrant workers;
3. It has concluded a bilateral
agreement or arrangement with the
government protecting the rights of
overseas Filipino workers; and,
4. It is taking positive, concrete
measures to protect the rights of
migrant workers.
JURISDICTION
1. NLRC
Money Claims
The Labor Arbiters of the
National Labor Relations Commission
(NLRC) shall have the original and
exclusive jurisdiction to hear and
decide, the claims arising out of an
employer-employee relationship or by
virtue of any law or contract involving
Filipino workers for overseas deployment
including claims for actual, moral,
exemplary and other forms of damages.
LIABILITIES
The
liability
of
the
principal/employer
and
the
recruitment/placement agency for any
and all claims under this section shall be
joint and several. The performance bond
to
be
filed
by
the
recruitment/placement
agency,
as
provided by law, shall be answerable for
LABOR LAW COMMITTEE
IN
LABOR LAW
all money claims, or damages that may

be awarded to the workers. If the
recruitment/placement agency is a
juridical being, the corporate officers
and directors and partners as the case
may be, shall themselves be jointly and
solidarily liable with the corporation or
partnership for the aforesaid claims and
damages.
Such liabilities shall continue
during the entire period or duration of
the employment contract and shall not
be affected by any substitution,
amendment or modification made locally
or in a foreign country of the said
contract.
Three Month's Pay Under RA 8042
The
date
the
employment
termination occurred is material. On
or after 15 July 1995, the law to apply
is RA 8042.
Under Section 10 of RA 8042, a
worker
dismissed
from
overseas
employment without just, valid or
authorized cause as defined by law or
contract, is entitled to the full
reimbursement of his placement fee
with interest at twelve percent (12%) per
annum, plus his salary for the unexpired
portion of his employment contract or
for three (3) months for every year of
the unexpired term, whichever is LESS.
2. POEA
The POEA retains original
exclusive jurisdiction to hear
decide:
and
and
1. All cases which are administrative in

character, involving or arising out of
violations of rules and regulations
relating to licensing and registration
of recruitment and employment
agencies or entities; and
2. Disciplinary action cases and other
special
cases
which
are
administrative in character, involving
employers, principals, contracting
partners
and
Filipino
migrant
workers.
142
Venue
It may be filed with the POEA
Adjudication Office or the DOLE/POEA
regional office of the place where the
complaint applied or was recruited at
the option of the complainant. The
office with which the complaint was first
filed shall take cognizance of the case.
Disciplinary action cases and other
special cases, as mentioned in the
preceding Section, shall be filed with
POEA Adjudication Office.
3. RTC
A criminal action arising from illegal
recruitment shall be filed with the RTC
of the province or city where the offense
was committed or where the offended
party actually resides at the time of the
commission of the offense. The court
where the criminal action is first filed
shall acquire jurisdiction to the exclusion
of other courts.
MANDATORY
PERIODS
FOR
RESOLUTION
OF
ILLEGAL
RECRUITMENT CASES
The preliminary investigations of

cases under this Act shall be terminated
within a period of thirty (30) calendar
days from the date of their filing.
WHERE
THE
PRELIMINARY
INVESTIGATION IS CONDUCTED BY A
PROSECUTION OFFICER and a prima facie
case is established, the corresponding
information shall be filed in court within
24 hours from the termination of the
investigation.
IF THE PRELIMINARY INVESTIGATION
IS CONDUCTED BY A JUDGE and a prima
facie case is found to exist, the
corresponding information shall be filed
by the proper prosecution officer within
48 hours from the date of receipt of the
records of the case.
PRESCRIPTIVE PERIODS
Illegal recruitment cases under this

Act shall prescribe in five (5) years;
provided,
however,
That
illegal
recruitment cases involving economic
sabotage as defined herein shall
prescribe in twenty (20) years. (Sec. 12,

R.A. 8042)
PROHIBITED
ACTS
IN
THE
RECRUITMENT AND PLACEMENT OF
WORKERS UNDER THE LABOR CODE
ARE RETAINED UNDER THE MIGRANT
WORKERS ACT WITH THE ADDITION
OF THE FOLLOWING:
1. Failure to deploy employee without

valid reason
2. Failure to reimburse expenses
incurred in connection with his
documentation and processing in
cases that deployment did not take
place
DIFFERENT FUNDS CREATED UNDER

THE LAW:
1.
2.
3.
4.
Repatriation fund
Loan Guaranty fund
Legal Assistance fund
Congressional Migrant Workers
Scholarship fund
GOVERNMENT AGENCIES MOBILIZED:

DFA
DOLE
POEA
OWWA
The Welfare Officer, or in his
absence, the Center Coordinator of the
Filipinos Resource Center shall make
proper
representation
with
the
employer/principal and/or agency as the
case may be, through conciliation
meetings or conferences for the
PURPOSE OF ENFORCING CONTRACTUAL
OBLIGATIONS
concerning
migrant
workers. For this purpose, the officer
may enlist the assistance of the OWWA
officer.
1.
2.
3.
4.
5. RE-PLACEMENT
CENTER
It shall:
AND
MONITORING

CHAIRPERSONS
143
MEMORY AID
a. Provide a mechanism for the

reintegration into the Philippine
society
b. Serve as a promotion house for
their local employment
c. Tap their skills and potentials for
national development.
1.
2.
3.
4.
5.
6.
7.
8.
CONSTITUTIONAL PROVISIONS:
1. Art. II, Sec. 9. Declaration of
Principles and State Policies;
2. Art. III, Sec. 9. Bill of Rights;
3. Art. X, Sec. 7.
Local
Government;
4. Art XII, Sec. 1 - 3. National
Economy and Patrimony;
5. Art. XIII, Sec. 4- 6 and 8 Social
Justice and Human Rights;
6. Art. XVIII, Sec. 22. Transitory
Provisions
OTHER LAWS PERTAINING TO
AGRARIAN REFORM:
Agricultural Tenancy Act of 1954
(R.A. 1199);
Land Reform Act (R.A. 1400)
An Act Creating the Court of
Agrarian Relations (R.A. 1267);
The Agricultural Land reform
Code (R.A. 3844)
Code of Agrarian Reforms (R.A.
6389);
Agrarian Reform Special Fund Act
(R.A. 6390);
P.D. No. 2 (Declaring entire
Philippines as land reform area);
P.D. No. 27 (Decreeing the
emancipation of tenants).
COVERAGE:
General:
Regardless
of
tenurial
arrangement and commodity produced,
all public and private agricultural lands
as provided in Proclamation No. 131
and Executive Order No. 229, including
other lands of the public domain
suitable for agriculture.
LABOR LAW COMMITTEE
LABOR LAW
Specifically:
1. All alienable and disposable
lands of the public domain
devoted to or suitable for
agriculture;
2. All lands of the public domain in
excess to the specific limits as
determined by Congress;
3. All other lands owned by the
Government devoted to or
suitable for agriculture; and
4. All private lands devoted to or
suitable
for
agriculture
regardless of the agricultural
products raised or that can be
raised thereon. (Sec. 4 CARL)
COMPREHENSIVE AGRARIAN
REFORM LAW
(R.A. 6657)
IN
EXCLUDED:
Lands
actually,
directly,
and
exclusively used and found to be
necessary for the following purposes:
1. for parks, wildlife, forest
reserves, reforestation;
2. for
fish
sanctuaries
and
breeding grounds;
3. for watersheds and mangroves
4. for national defense;
5. for school sites and campuses,
including experimental farm
stations operated by public or
private schools for educational
purposes;
6. for seeds and seedlings research
and pilot production center;
7. for church sites and convents
appurtenant thereto;
8. for mosque sites and Islamic
centers appurtenant thereto;
9. for communal burial grounds
and cemeteries;
10. for penal colonies and penal
farms actually worked by the
inmates;
11. for government and private
research
and
quarantine
centers;
12. all lands with eighteen percent
(18%) slope and over, except
those already developed (Sec.
10, CARL).
13. Ancestral lands belonging to
indigenous cultural communities
until their boundaries and
extent are duly identified and
144
delineated by the proper

governmental
agency
and
segregated as part of the public
domain.
orchards, vegetables and cut flower

farms, and cacao, coffee and rubber
plantation.
DEFINITION OF TERMS:
SHARE TENANCY
Tenant has physical

possession of anothers
land for the purpose of
cultivating it giving the
owner the share of the
property
The tenant may CHOOSE
TO SHOULDER IN ADDITION
TO LABOR, ANY ONE OR
MORE ITEMS OF PRODUCTION
such as farm
implements, work
animals, cost of final
harrowing and
transplanting
The tenant and the
landholder are COMANAGERS OF FARM HOLDING
The tenant and the

landholder DIVIDE THE
HARVEST IN PROPORTION TO
THEIR CONTRIBUTIONS.
LEASEHOLD
TENANCY
Lessee pays the
landowner a fixed
rent for the use
and cultivation of
land
The tenant/lessee
always SHOULDERS
ALL ITEMS OF
PRODUCTION EXCEPT
LAND
The tenant is the

SOLE MANAGER OF
THE FARM HOLDING
The tenant or
lessee GETS THE
WHOLE PRODUCE with
mere obligation to
pay rental
LEASEHOLD vs. SHARE TENANCY

SYSTEM
SHARE
TENANCY
means
the
relationship which exists whenever two
persons agree on a joint undertaking for
agricultural production wherein one
party furnishes the land and the other
his labor, with either or both
contributing any one or several of the
items of production, the tenant
cultivating the land personally with the
aid or labor available from members of
his immediate farm household, and the
produce thereof to be divided between
the landholder and the tenant.
LEASEHOLD SYSTEM is characterized by
a tenant farmer personally and actually
cultivating the farmholding under a
leasehold relationship whereby the
lessee pays a fixed amount of rental
whether in cash or in kind to the lessor
(owner or legal possessor of the land
SHARE
TENANCY
TENANCY
vs
LEASEHOLD
PUBLIC DOMAIN refers to lands to

which the government has proprietary
rights.
Source: Aralar, Reynaldo B. Agrarian

Reform, Cooperatives and Taxation
(citing People vs. Adillo, GR No. L-23785,
November 27, 1975, 68 SCRA 90), p. 58.
GOVERNMENT LANDS include both

public lands and other lands of the
government already reserved for or
devoted to public use or subject to
private rights.
PRIVATE AGRICULTURAL LANDS are

those devoted to agricultural activities
and which are under the effective
control and disposition of natural or
juridical persons.
COMMERCIAL FARMS are private
agricultural lands devoted to commercial
livestock, poultry and swine raising,
aquaculture
including
saltbeds,
fishponds, and prawn ponds, fruit farms,
ESTABLISHMENT
RELATIONSHIP
OF
LEASEHOLD
1. By AGREEMENT of the parties

(between the lessor and lessee)
this may be entered into either
orally or in writing, expressly or
impliedly.
2. By OPERATION OF LAW this is
brought
about
by
the
implementation of R.A. No.
3844, Agricultural Land Reform
Code, providing for the abolition
of share tenancy.

CHAIRPERSONS
145
MEMORY AID
ESTABLISHMENT
OF
IMPLIED
LEASEHOLD RELATIONSHIP
Implied leasehold relationship is
established when the landholder:
1. does not object to the continued
cultivation of the land, or
2. tolerates
the
continued
cultivation thereof by the
agricultural worker, and/or
3. the landholder continues to
receive benefits from the
cultivation of the land (Sec. 5,
RA 3844).
(NOTE:
Under
PD
27,
landowners covered are entitled
to retain seven (7) hectares of
his landholding devoted to the
production of rice and corn)
2. Original homestead grantees or
direct compulsory heirs who still
own the original homestead at
the time of the approval of CARL
(June 15, 1988) shall retain the
same areas as long as they
continue to cultivate said
homestead (Sec. 6, CARL).
NOTE:
RIGHTS OF CHILD OF LANDOWNER

UNDER CARL
LABOR LAW COMMITTEE
EXCEPTION TO THE RETENTION LIMIT:

1. Landowners whose lands have
been covered by P.D. No. 27 shall
be allowed to keep the area
originally retained by them
thereunder
Except as otherwise provided, no

person may own or retain, directly, any
public or private agricultural land, the
size of which shall vary according to
factors governing a viable family-sized
farm, such as commodity produced,
terrain, infrastructure, and soil fertility
as determined by the Presidential
Agrarian Reform Council (PARC), but IN
NO CASE SHALL THE RETENTION BY THE
LANDOWNER
EXCEED
FIVE
(5)
HECTARES (Sec. 6, CARL).
NOTE:
that he is at least fifteen (15)

years of age;
that he is actually tilling the
land or directly managing the
farm (Sec. 6,CARL).
2. Children of landowners who are

qualified under Section 6 of this Act
shall be given preference in the
distribution of the land of their parents
(Sec. 22, CARL).
RETENTION LIMIT:
The right to choose the area to be

retained, which shall be compact or
contiguous, shall pertain, to the
landowner (Sec 6, CARL)
LABOR LAW
1. THREE (3) HECTARES may be awarded

to each child of the landowner,
regardless of the number of children the
landowner has, and whether they are
legitimate or illegitimate, provided that
the filiation of the children who are
illegitimate must be lawfully recognized
by the landowner or duly established
according to law, subject to the
following qualifications:
FAMILY SIZED FARM
Under the Agricultural Land

Reform Code, or RA 3844, a family
sized farm constitutes an area of
farmland that permits efficient use of
labor and capital resources of the farm
family and will produce an income
sufficient to provide a modest standard
of living to meet a farm familys needs
for food, clothing, shelter and
education with possible allowance for
payment of yearly installments on the
land, and reasonable reserves to
absorb yearly fluctuations in income
IN
QUALIFIED BENEFICIARIES:
a. landless residents of the same
barangay; or in the absence
thereof
b. landless residents of the same
municipality in the following
order of priority:
agricultural lessees and share
tenants;
146
regular farm workers;

seasonal farm workers;
other farm workers;
actual tillers or occupants of public
lands;
collective or cooperatives of the
above beneficiaries; and
others directly working on the land.
PREFERENTIAL RIGHT OF CHILDREN
IN
THE
DISTRIBUTION
OF
PRIVATELY-OWNED AGRICULTURAL
LAND COVERED BY CARL
Children of landowners who are

qualified under Section 6 of this Act shall
be given preference in the distribution
of the land of their parents (Sec. 22,
CARL). Provided, further, that actual
tenant -tillers in the landholding shall
not be ejected or removed therefrom
(Sec. 22, CARL).
QUALIFICATIONS OF A BENEFICIARY:
land or several parcels of land

cumulated up to the prescribed award
limits (Sec. 25, CARL).
CIRCUMSTANCES
WHEN
DISTRIBUTION CEILING MAY BE
EXCEEDED
The beneficiaries may opt for
collective ownership, such as co-workers
or farmers' cooperative or some other
form of collective organization.
In such case, THE TOTAL AREA THAT
MAY BE AWARDED SHALL NOT EXCEED
THE TOTAL NUMBER OF CO-WORKERS
OR MEMBERS OF THE COOPERATIVE OR
COLLECTIVE
ORGANIZATION
MULTIPLIED BY THE AWARD LIMIT
ABOVE
PRESCRIBED,
EXCEPT
in
meritorious cases as determined by the
PARC.
Title to the property shall be issued
in the name of the co-owners or the
cooperative or collective organization,
as the case may be (Sec. 25, CARL).
LANDLESS BENEFICIARY:
For purposes of this Act, a
landless beneficiary is one who owns
less than three (3) hectares of
agricultural land (Sec. 25, CARL).
As a landless beneficiary, he can
demand that the award ceiling of 3
hectares shall be completed which
may be taken from other available
private agricultural lands to be
acquired either by voluntary offer to
sell, voluntary land transfer or
compulsory modes under the CARL.
RIGHTS GIVEN TO ACTUAL TENANT

TILLERS OR FARMERS IN PLACE IN
CASES WHERE THE LAND TILLED BY
THEM IS TRANSFERRED TO A
QUALIFIED BENEFICIARY
a. Actual tenant -tillers in the
landholding shall not be ejected
or removed therefrom.
b. Farmers already in place and
those not accommodated in the
distribution of privately owned
lands will be given preferential
rights in the distribution of lands
from the public domain (Sec. 22,
CARL).
The basic qualifications of a beneficiary

shall be
a. His willingness
b. Aptitude
c. Ability to cultivate and make
land as productive as possible
(Sec. 22, CARL).
DISQUALIFICATIONS
a. Any
beneficiary
guilty
of
negligence or misuse of the land
or any support extended to him
shall forfeit his right to continue
as such beneficiary.
b. Beneficiaries under Presidential
Decree No. 27 who have culpably
sold, disposed of, or abandoned
their land are disqualified to
become beneficiaries under their
program (Sec. 22, CARL).
DISTRIBUTION CEILING:
No qualified beneficiary may own

more than three (3) hectares of
agricultural land (Sec. 23, CARL).
Beneficiaries shall be awarded an
area not exceeding three (3) hectares,
which may cover a contiguous tract of

CHAIRPERSONS
147
MEMORY AID
RIGHTS GIVEN TO THOSE QUALIFIED

BENEFICIARIES WHO WERE NOT
ACCOMMODATED
DUE
TO
INSUFFICIENCY OF LANDS TO BE
DISTRIBUTED
If, due to landowner's retention

rights or to the number of tenants,
lessees, or workers on the land, there is
not enough land to accommodate any or
some of them, they may be granted
ownership of other lands available for
distribution under this Act, at the option
of the beneficiaries (Sec. 22, CARL).
CONDITIONS
FOR
SALE
OR
CONVEYANCE TO THIRD PERSONS
OF LAND RETAINED
d. transferees of agricultural lands

shall furnish the appropriate
Register of Deeds and the BARC
with an affidavit attesting that
his total landholdings as a result
of the said acquisition do not
exceed the landholding ceiling.
The Register of Deeds shall not
LABOR LAW COMMITTEE
RIGHTS OF THE SAID TENANT

FARMER UNDER THE CARL WHEN
AREA SELECTED FOR RETENTION BY
LANDOWNER IS TENANTED
1. In case the area selected for

retention by the landowner is
tenanted, the tenant shall have the
option to choose whether to remain
therein or be a beneficiary in the
same or another agricultural land
with similar or comparable features.
IF THE CHOICE IS TO REMAIN IN THE
RETAINED AREA: He shall be
considered a leaseholder and shall
lose his right to be a beneficiary
under this Act.
IF THE CHOICE IS TO BE A
BENEFICIARY: He loses his right as a
leaseholder to the land retained by
the landowner.
a. the sale or disposition of

agricultural lands after the
effectivity of CARL should
conform with the provisions of
the said law, otherwise, such
sale or disposition shall be null
and void.
c. the total landholdings that shall

be owned by the transferee
thereof inclusive of the land to
be acquired shall not exceed the
landholdings ceilings provided
for in this Act.
LABOR LAW
register the transfer of any

agricultural land without the
submission
of
this
sworn
statement together with proof of
service of a copy thereof to the
BARC (Sec. 70, CARL).
The sale or disposition of agricultural

lands retained by a landowner shall be
valid as long as:
b. The
tenants
or
lessees
preferential right to purchase
the same should be recognized.
In case the land is sold to third
persons
without
her/his
knowledge, she/he shall have a
right to redeem the land in the
manner prescribed by law.
IN
PERIOD TO EXERCISE THE OPTION:

The tenant must exercise this option
within a period of one (1) year from
the time the landowner manifests his
choice of the area for retention
(Sec. 4, CARL).
2. In all cases, the security of tenure of
the farmers or farm workers on the land
prior to the approval of this Act shall be
respected (Sec. 4, CARL
MODES
OF
ACQUIRING
PRIVATE
AGRICULTURAL LANDS UNDER THE

CARL
1. VOLUNTARY OFFER TO SELL - by
and between the landowner and
the government. Purchase price
agreed upon by parties and paid
by Land Bank of the Philippines
(LBP). Exempt from taxes.
2.
VOLUNTARY LAND TRANSFER

directly by and between the
148
landowner and the beneficiary.

Purchase price agreed upon by
said parties but paid by LBP
subject to approval of DAR. Not
exempt from taxes.
corresponding value to the

owners thereof, by personal
delivery or registered mail, and
post the same in a conspicuous
place in the municipal building
and barangay shall of the place
where the property is located.
Conditions for voluntary land transfer:

a. All notices for voluntary land
transfer must be submitted to the
DAR within the first year of the
implementation
of
the
CARP.
Negotiations
between
the
landowners
and
qualified
beneficiaries covering any voluntary
land
transfer
which
remain
unresolved after one (1) year shall
not be recognized and such land
shall instead be acquired by the
government
and
transferred
pursuant to this Act.
b. The terms and conditions of such
transfer shall not be less favorable
to the transferee than those of the
government 's standing offer to
purchase from the landowner and to
resell to the beneficiaries, if such
offers have been made and are fully
known to both parties.
c. The voluntary agreement shall
include sanctions for non-compliance
by either party and shall be duly
recorded and its implementation
monitored by the DAR (Sec. 20,
CARL).
3. COMPULSORY ACQUISITION
undertaken by government, thru
DAR, in the exercise of police
power if landowner fails to avail
of the two modes or when
parties in the second mode
disagrees on the price of the
land. (Law on Agrarian Reform,
2003 Edition, Recaredo P. Barte,
p. 131 and 134.).
PROCEDURE FOR THE
ACQUISITION OF PRIVATE LANDS
UNDER CARL (INPI-ARPA)
a. Identification of the land, the
landowners and the beneficiaries
b. DAR shall send notice to acquire
the land with offer to pay the
c. Within thirty (30) days from the

date of receipt of written
notice, the landowner, his
administrator or representative
shall inform the DAR of his
acceptance or rejection of the
offer.
d. In case landowner accepts the
offer, the LBP shall pay the
landowner the purchase price of
the land within thirty (30) days
after he executes and delivers a
deed of transfer in favor of the
Government and surrenders the
Certificate of Title and other
muniments of title.
e. In case of rejection or failure to
reply, the DAR shall conduct
summary
administrative
proceedings to determine just
compensation.
After
the
expiration of the above period,
the matter is deemed submitted
for decision. The DAR shall
decide the case within thirty
(30) days after it is submitted for
decision.
f.
Upon receipt by the landowner

of the corresponding payment or
in case of rejection or no
response from the landowner,
upon the deposit with an
accessible bank designated by
the DAR of the compensation in
cash or LBP bonds, the DAR shall
take immediate possession of
the land and shall request the
proper Register of Deeds to
issue a Transfer Certificate of
Title (TCT) in the name of the
Republic of the Philippines. The
DAR shall thereafter proceed
with the redistribution of the
land
to
the
qualified
beneficiaries.

CHAIRPERSONS
149
MEMORY AID
g. Any party who disagrees with

the decision may bring the
matter to the court of proper
jurisdiction
for
final
determination
of
just
compensation (Sec. 16, CARL).
COMPENSATION:
In determining just compensation

the following shall be considered:
(NASAC2)
a. the cost of acquisition of the
land,
b. the current
properties,
c. its nature,
income,
value
actual
of
like
use
and
d. the sworn valuation by the

owner, the tax declarations,
e. the
assessment
made
government assessors,
f.
by
additional factors, such as:
the social and economic

benefits contributed by the
farmers
and
the
farm
workers and by government
to the property
non-payment of taxes or
loans secured from any
government
financing
institution on the said land
(Sec.17, CARL)
AMOUNT OF JUST COMPENSATION

FOR LANDS ACQUIRED UNDER
CARL
The LBP (Land Bank of

Philippines) shall compensate
landowner in such amount:
the
the
a. as may be agreed upon by the

landowner and the DAR and LBP;
or
b. as may be finally determined by
the court as just compensation
for the land.
LABOR LAW COMMITTEE
IN
LABOR LAW
DETERMINATION
OF
JUST
COMPENSATION BY THE DAR FOR
LANDS ACQUIRED UNDER THE CARL
IS NOT AN USURPATION OF
JUDICIAL FUNCTION
According to the Supreme Court, the

determination of just compensation is a
function addressed to the courts of
justice and may not be usurped by any
other branch of official of the
government. A reading of the Section 16
(d) will readily show that it does not
suffer from the arbitrariness that
rendered
the
challenged
decrees
constitutionally objectionable.
The determination of the just
compensation by the DAR is not by any
means final and conclusive upon the
landowner or any other interested party
who may bring the matter to the court
of
proper
jurisdiction
for
final
determination of just compensation.
The determination made by the DAR is
only preliminary unless accepted by all
parties concerned.
Otherwise, the
courts of justice will still have the right
to review with finality the said
determination in the exercise of what is
admittedly a judicial function (Nicolas
vs. Manaay, et. al. G. R. No. 79777).
Q: X Corporation and the DAR
signed and entered into a contract
of sale covering 2,000 hectares of
land.
Consequently, the DAR
Secretary
issued
an
order
directing the LBP to pay X
Corporation the contract price
amounting to 65 million pesos.
Discovering that X Corporation
acquired the land for only 3
million pesos, the LBP President
refused to sign the Deed of
Absolute Sale. X Corporation filed
a petition for mandamus to
compel the LBP President to sign
the Deed of Absolute Sale.
Whether or not the petition maybe
granted.
150
time.
A: The petition should be denied.

The act that required of the LBP
President to sign the Deed of
Absolute Sale is not ministerial but
involves a high degree of discretion.
The LBP is an essential part of the
government sector with regard to
payment of compensation to the
landowner. It is therefore part, an
indispensable
cog,
in
the
governmental machinery that fixes
and
determines
the
amount
compensable to the landowner.
Inversely,, if LBP, after review and
evaluation, refuses to sign, it is
because as a party to the contract it
does not give its consent thereto
As to the opinion that
the
decision
fixing
the
compensation is not final if
seasonably questioned in court
by
any
interested
party
(including LBP) otherwise, it
would become final after 15 days
from notice and binding on all
parties concerned including LBP
which then could refuse to pay
compensation thus fixed, the
same opinion applies only to
compulsory acquisition of lands.
(SHARP International Marketing
vs. CA, et. al.).
PAYMENTS TO THE
LANDOWNER
PAYMENTS BY THE
BENEFICIARY
1. CASH payment, under

the following terms and
conditions:
a. Lands 24 hectares
and below = 35% cash
+ balance to be paid
in
government
financial instruments
negotiable at any
time.
b. Lands
above
24
hectares and up to 50
hectares = 30% cash +
balance to be paid in
government financial
instruments
negotiable at any
1. Payments shall
be made to the
LBP in 30 annual
installments at 6%
interest
per
annum;
2. Payments for
the first 3 years
shall
be
at
reduced amounts
as
may
be
established by the
PARC;
3.Payments
corresponding to
the first 5 annual
amortizations may
c. For lands above fifty
(50) hectares, insofar

as the excess in 50
hectares
is
concerned = 25% cash
+ balance to be paid
in
government
financial instruments
negotiable at any
time.
2. SHARES OF STOCK in
government-owned
or
controlled
corporations,
LBP
preferred
shares,
physical assets or
other
qualified
investments
in
accordance
with
guidelines set by the
PARC;
3. TAX CREDITS which

can be used against
any tax liability;
4. LBP bonds
not exceed 5% of
the value of the
annual
gross
production
as
established by the
DAR;
4.
Annual
payments
as
scheduled by the
LBP that exceeds
10% of the annual
gross production
after the fifth
year
of
amortizations,
may be entitled to
a reduction of the
interest
rate
provided in this
Act,
or
a
reduction of the
principal
obligation,
whichever
is
deemed beneficial
and
less
burdensome
to
the
beneficiary
and
affordable.
This is provided
that the failure to
produce is not
attributable to the
beneficiarys fault
like
drought,
typhoon,
fire,
flood or other
natural calamities
or
fortuitous
circumstances
Sec. 26, CARL).
MODES/SCHEMES OF PAYMENT
EFFECT OF FAILURE TO PAY BY THE

BENEFICIARY
All lands awarded under R.A. 6657

are mortgaged with the LBP which has a
first lien thereof, failure on the part of
the awardee to pay at least 3 aggregate
annual amortizations, shall be sufficient
ground for the foreclosure of the
mortgage.
Foreclosure has the effect of
forfeiture
of
the
beneficiarys
landholding in favor of the government
and thereafter the DAR shall award such

CHAIRPERSONS
151
MEMORY AID
forfeited landholding to other qualified

beneficiary.
LIMITATION:
Lands acquired by beneficiaries under

this Act may MAY NOT BE SOLD,
TRANSFERRED OR CONVEYED for a period
of TEN YEARS (10), except :
a. through hereditary succession, or
b. when sold,
conveyed to:
transferred
or
the LBP, or
the government, or
other qualified beneficiaries
RATIONALE
LIMITATION:
FOR
TEN
YEARS
The reason is that after making

use of the land deriving maximum
benefits and income therefrom for
the period of 10 years, the awardee
must have already attained his
dream of providing proper education
for his children, or at least his
hunger for the soil which he can call
his own, must have been satisfied
reasonably.
At least that after 10 continuous
years
of
enjoyment
of
the
governments bounty, the tenant
farmer has no more reason to
complain that he has been neglected
by the government
SALE/CONVEYANCE TO A QUALIFIED
TRANSFEREE OF AN AWARDED LAND
NOT YET FULLY PAID
If the land has not yet been fully

paid by the beneficiary, the right to the
land may be transferred or conveyed,
with prior approval of the DAR, to any
heir of the beneficiary or to any other
beneficiary who, as a condition for such
transfer or conveyance, shall cultivate
the land himself.
Failing compliance herewith, the
land shall be transferred to the LBP
which shall give due notice of the
availability of the land in the manner
specified in the immediately preceding
paragraph.
LABOR LAW COMMITTEE
IN
LABOR LAW
In the event of such transfer to the

LBP, the latter shall compensate the
beneficiary in one lump sum for the
amounts the latter has already paid,
together with the value of improvements
he has made on the land (Sec. 27,
CARL).
RIGHT OF REPURCHASE
The children or the spouse of the

transferor shall have a right to
repurchase
the
land
from
the
government or LBP within a period of
two (2) years.
The law is silent
regarding transfers or alienations of land
awarded
in
favor
of
qualified
beneficiaries or third persons (Sec. 27,
CARL).
CERTIFICATE OF LAND OWNERSHIP

AWARD
It means Certificate of Land Ownership

Award (CLOA). It is the beneficiarys
evidence of ownership over the
landholding awarded to him under the
CARL which recorded in the office of the
Register of Deeds and annotated on the
corresponding certificate of title.
ADMINISTRATIVE AGENCIES
COMPOSITION
OF
Provincial
Agrarian
Reform
Coordinating
Committee or PARCCOM
A Provincial Agrarian
Reform
Coordinating Committee is hereby
created in each province, composed of:
a. Chairman,
who
shall
be
appointed by the President
upon the recommendation of
the EXCOM, the Provincial
Agrarian Reform Officer as
Executive Officer
b. One (1) representative each
from
the
Department
of
Agriculture, Department of
Environment
and
Natural
Resources and from the LBP;
c. One (1) representative each
from
existing
farmers'
organizations,
agricultural
cooperatives
and
nongovernmental organizations in
the province;
152
d. Two (2) representatives from

landowners at least one (1) of
whom shall be a producer
representing the principal crop
of the province;
e. And two (2) representatives
from farmers and farm workers
or beneficiaries, at least one
(1) of whom shall be a farmer
or farmworker representing the
principal crop of the province,
as members.
f.
2. JUDICIAL PROCEEDINGS BY SPECIAL

AGRARIAN COURTS IN VARIOUS
REGIONAL TRIAL COURTS
a.
In areas where there are

cultural communities, the latter
shall likewise have one (1)
representative.
FUNCTIONS OF PARCCOM:
b.
c.
b. Provide information on the

provisions
of
the
CARP,
guidelines issued by the PARC
and on the progress of the CARP
in the province.
d.
c. Recommend to the PARC the

following
e.
Market price to be used in the

determination of the profit-sharing
obligation of agricultural entities in
the province;
Adoption of the direct payment
scheme between the landowner and
the farmer and/or farmworkerbeneficiary
Continuous
processing
of
applications
for
lease-back
arrangements,
joint
venture
agreements and other schemes that
will optimize the operating size for
agriculture production and also
promote both security of tenure and
security of income to farmer
beneficiaries (Sec. 44, CARL).
f.
ADJUDICATION
DISPUTES
OF
AGRARIAN
MODES OF ADJUDICATION
1. ADMINISTRATIVE ADJUDICATION BY
DAR
REFORM
In addition to those provided in

Executive Order No. 229, the BARC shall
have the following function:
a. Coordinate and monitor the

implementation of the CARP in
the province.
BARANGAY
AGRARIAN
COUNCIL (BARC)
g.
h.
Mediate and conciliate between

parties involved in an agrarian
dispute
including
matters
related
to
tenurial
and
financial arrangements;
Assist in the identification of
qualified
beneficiaries
and
landowners
within
the
barangay;
Attest to the accuracy of the
initial parcellary mapping of the
beneficiary's tillage;
Assist qualified beneficiaries in
obtaining credit from lending
institutions;
Assist
in
the
initial
determination of the value of
the land;
Assist the DAR representative in
the preparation of periodic
reports
on
the
CARP
implementation for submission
to the DAR;
Coordinate the delivery of
support
services
to
beneficiaries; and
Perform such other functions as
may be assigned by the DAR
(Sec. 47, CARL).
PROCEDURE IN CASE BARC FAILS TO

SETTLE
AGRARIAN
DISPUTES
SUBMITTED TO IT
The BARC shall endeavor to
mediate, conciliate and settle agrarian
disputes lodged before it within thirty
(30) days from its taking cognizance
thereof.
If after the lapse of the thirty-day
period, it is unable to settle the dispute,
it shall issue a certification of its
proceedings and shall furnish a copy

CHAIRPERSONS
153
MEMORY AID
thereof upon the parties within seven (7)

days from the expiration of the thirty
days period (Sec. 47, CARL).
However, if no certification is
issued by the BARC within thirty (30)
days after a matter or issue is submitted
to it for mediation or conciliation, the
case or dispute may be brought before
the PARC (Sec. 53, CARL).
QUASI-JUDICIAL POWERS OF DAR

a. primary
jurisdiction
to
determine
and
adjudicate
agrarian reform matters;
b. exclusive original jurisdiction
over all matters involving the
implementation of agrarian
reform, except those falling
under the exclusive jurisdiction
of
the
Department
of
Agricultural (DA) and the
Department of Environment and
Natural Resources (DENR).
c. adopt a uniform rule of
procedure to achieve a just,
expeditious and inexpensive
determination of every action
or proceeding before it.
d. power to summon witnesses;
e.
administer oaths;
f.
take testimony;
g. require submission of reports;

h. compel the production of books
and documents and answers to
interrogatories;
i.
issue subpoena, and subpoena

duces tecum;
j.
to enforce its writs through

sheriffs or other duly deputized
officers;
k. punish direct and indirect

contempt in the same manner
and subject to the same
penalties as provided in the
Rules of Court (Sec. 50, CARL).
DARs ASSUMPTION OF JURISDICTION

OVER CASES NOT CERTIFIED BY
BARC:
LABOR LAW COMMITTEE
IN
LABOR LAW
No. The DAR shall not take

cognizance of any agrarian dispute or
controversy unless a certification from
the BARC that the dispute has been
submitted to it for mediation and
conciliation without any success of
settlement is presented (Sec. 53, CARL).
MODE OF
DECISION
APPEAL FROM
DARs
An appeal from the decision of the

Court of Appeals, or from any order,
ruling or decision of DAR, as the case
may be, shall be by a petition for review
with the Supreme Court within a nonextendible period of fifteen (15) days
from receipt of a copy of said decision
(Sec. 60, CARL).
JURISDICTION OF
AGRARIAN COURTS
THE
SPECIAL
The Special Agrarian Courts shall

have original and exclusive jurisdiction
over all petitions for the determination
of just compensation to landowners, and
the prosecution of all criminal offenses
under this Act. The Rules of Court shall
apply to all proceedings before the
Special Agrarian Courts unless modified
by this Act (Sec. 57, CARL).
MODE OF APPEAL FROM DECISION

OF THE SPECIAL AGRARIAN COURTS
An appeal may be taken from the

decision of the Special Agrarian Courts
by filing a petition for review with the
Court of Appeals fifteen (15) days from
receipt of notice of the decision;
otherwise, the decision shall become
final (Sec. 60, CARL).
INSTANCES WHEN COVERED LAND

MAY BE CONVERTED AFTER THE
AWARD
After the lapse of five (5) years from

its award:
1. when the land ceases to be
economically feasible and sound for
agricultural purposes,
2. or the locality has become urbanized
and the land will have greater
154
economic value for residential,

commercial or industrial purposes,
the DAR,
3. upon application of the beneficiary
or the landowner, with due notice to
the affected parties, and subject to
existing laws, may authorize the
reclassification or conversion of the
land and its disposition, provided,
the beneficiary shall have fully paid
his obligation (Sec. 65, CARL).
EXEMPTION FROM TAXES OF LAND

TRANSFERS COVERED BY CARL
Transactions under this Act involving

a transfer of ownership, whether from
natural or juridical persons, shall be
exempted from the following taxes:
a. capital gains tax;
b. registration fees;
c. all other taxes and fees for
the conveyance or transfer
thereof
dispossess his tenant farmers or the land

tilled by them;
d. The willful prevention or
obstruction by any person, association or
entity of the implementation of the
CARP;
e. The sale, transfer, conveyance
change of the nature of lands outside
urban centers and city limits either
whole or in part after the effectivity
this Act, except:
or
of
in
of
The sale and/or transfer of

agricultural land in cases where
such
sale,
transfer
or
conveyance is made necessary as
a result of a bank's foreclosure of
the mortgaged land is hereby
permitted.( As added by R. A.
7881)
Provided, all arrearages in real

property taxes, without penalty
or interest, shall be deductible
from the compensation to which
the owner may be entitled (Sec.
66, CARL).
PROHIBITED ACTS AND OMISSIONS

UNDER THE CARL
The following are prohibited:

a. The ownership or possession, for
the purpose of circumventing the
provisions of this Act, of agricultural
lands in excess of the total retention
limits or award ceilings by any person,
natural or juridical, except those under
collective
ownership
by
farmerbeneficiaries.
b. The forcible entry or illegal
detainer by persons who are not
qualified beneficiaries under this Act to
avail themselves of the rights and
benefits of the Agrarian Reform Program;
c. The conversion by any landowner of
his agricultural land into non-agricultural
use with intent to avoid the application
of this Act to his landholdings and to
CHAIRPERSONS
155
MEMORY AID
IN
LABOR LAW
f. The sale, transfer or conveyance by

a beneficiary of the right to use or any
other usufructuary right over the land he
acquired by virtue of being a beneficiary,
in order to circumvent the provisions of
this Act (Sec. 73, CARL).
LABOR LAW COMMITTEE

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San Beda College of Law

LABOR LAW COMMITTEE

OVERVIEW OF THE LABOR CODE

2005 CENTRALIZED BAR OPERATIONS

BOOK FOUR On Health, Safety and

CONSTITUTIONAL PROVISIONS THAT

2. Right of workers to form unions

Art. 1701. Neither capital nor

Art. 1703. No contract which

2. REVISED PENAL CODE:

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

San Beda College of Law

The State shall: [PEARA]

LABOR LAW COMMITTEE

1. There is greater supply than

2005 CENTRALIZED BAR OPERATIONS

2. The need for employment by

Right to conduct business

ART.5. RULES AND REGULATIONS

dairying, growing and harvesting of any

Agricultural workers receive salaries

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

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- Under Art. 8, the land covered

LABOR LAW COMMITTEE

ART. 13. DEFINITIONS

These conditions must concur to

1. preserve the landholding in the

1. The complainant had a distinct

Public employment offices

2005 CENTRALIZED BAR OPERATIONS

7. Members of the diplomatic corps

4. Drunkenness, especially where the

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

San Beda College of Law

LABOR LAW COMMITTEE

- Under Section 10, RA 8042, the

wages for regular

2005 CENTRALIZED BAR OPERATIONS

point of hire, or if this is not

ART. 22. MANDATORY REMITTANCE

Workers for Filipino

Domestic and other

ART. 18. BAN ON DIRECT HIRING

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San Beda College of Law

QUALIFICATIONS FOR PARTICIPATION

Capitalization (Art. 28, LC)

THE FF. ARE DISQUALIFIED FROM

LABOR LAW COMMITTEE

ART. 29. NON-TRANSFERABILITY OF

No license or authority shall be

2005 CENTRALIZED BAR OPERATIONS

person other than the one in whose

Licensees or holders of authority or

ART. 31. BONDS

ART. 32. FEES TO BE PAID BY

Fees paid shall always be covered

Private Fee Charging Employment

ART. 34. PROHIBITED PRACTICES

It shall be unlawful for any individual,

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT

San Beda College of Law

is designed to liberate the