Summary Atty Alcantara Labor Review

LABOR LAW REVIEW
CHAPTER 1 GENERAL PRINCIPLES
Matters which fall under the term Labor Law

1. Sta tutes pas s ed by the s ta te to promote the wel fa re of
workers a nd employees a nd regulate thei r rel a ti ons wi th
thei r empl oyers .
2. Judi cial decisions a pplying a nd i nterpreti ng the a fore s a i d
s ta tutes .
3. Rul es a nd regulations issued by a dmi ni s tra ti ve a genci es
wi thin their legal competence, to implement labor statutes.
Purpose
Regulate labor-capital or employer-employee relations hi p,
purs uant to the police power of the State and in accordance
wi th the cons ti tuti ona l pol i cy of s oci a l jus ti ce.
Labor Statutes:
1. La bor s tanda rd l a ws thos e tha t provi de for the pa y a nd
other l egal benefi ts to whi ch the worker, whi l e a t work, i s
enti tl ed to recei ve from hi s empl oyer.
Ex. Mi ni mum ra tes of pa y
2. Wel fare legislation those that require payment of benefi t s
of government a gencies to the worker or his family when a nd
whi le he ca nnot work, by reason of s i cknes s , di s a bi l i ty, ol d
a ge, dea th a nd s i mi l a r ha za rds . Ex. SSS La w
3. La bor relations laws those i ntended to stabilize the relations
of employees and their employers, adjust differences between
them thru collective barga i ni ng, a nd s ettl e l a bor di s putes
through conciliation, mediation and arbitration. Ex. Book V, LC
Labor relations laws and labor standards laws mutually exclusive?
No. LR provi des for ri ghts a nd procedures by whi ch workers ma y be
a bl e to obtain from thei r empl oyers benefi ts whi ch a re over a nd
a bove the minimum terms and conditions of employment set by labor
s ta nda rd l a ws .
Social Legislation
La ws passed by the State to promote publ i c wel fa re. Even
when there i s no empl oyer-empl oyee rel a ti ons hi p. Ex.
Agra ri a n reform l a ws
Labor and Social Legislation
Ena cted pursuant to police power of state promote order,
s a fety, hea l th, mora l s a nd genera l wel fa re of s oci ety.
Not vi ol ative of due proces s a nd freedom to contra ct of
empl oyers, resisting the expansi on of the s oci a l ri ghts of
empl oyees a nd workers i s es s enti a l l y ca pi ta l i s ti c,
cons erva ti ve, rea cti ona ry a nd s el fi s h.
Employer
One for whom employe es work in considera ti on of wa ges
or s a l a ri es . Na tura l or Juri di ca l pers on.
Employee
One who works for a n empl oyer; a pers on worki ng for
s a lary or wa ges; a ny person i n the servi ce of a nother under
a contra ct for hi re, expres s or i mpl i ed, ora l or wri tten.
Al wa ys a na tura l pers on.
Employee-Employer Relationship
Contractual in character; by a greement.
Impressed with public interest; l a bor contracts yi eld to the

common good.
Subject to special laws on l a bor uni ons , col l ecti ve
ba rgaining, s trikes and lockouts, cl os ed s hop, wa ges a nd
worki ng conditions, hours of l a bor a nd s i mi l a r s ubjects .
Pa rti es enjoined not to a ct oppressively a gainst ea ch other
or i mpa i r the i nteres t or conveni ence of the publ i c.
In personam, i nvolves the rendition of pers ona l s ervi ce of
empl oyee; partakes of ma s ter a nd s erva nt rel a ti ons hi p.
Property right of employee in E-E relationship

Upon establishment, employee acquires ri ght to continue in
hi s employment until he is deprived thereof i n a ccorda nce
wi th the requirements of s ubstantive a nd procedura l due
proces s . Rea s on: empl oyees mea ns of l i vel i hood.
Workers right to labor. Right to his job, means of livelihood
Elements of E-E relationship
1. the s el ecti on a nd enga gement of the empl oyee
2. the pa yment of wa ges
3. the power of di s mi s s a l
4. the employers power to control the employee with respect
to the mea ns a nd methods by whi ch the work i s to be
a ccompl i s hed (Control Tes t)
o Mos t i mporta nt i ndex of exi s tence of E-E
rel a ti ons hi p.
Importance of determining if E-E relationship exists
La w & Tri bunal . To determi ne wha t l a w wi l l govern the
ri ghts and liabilities of the pa rti es , a nd wha t tri buna l or
court wi l l ha ve juri s di cti on over the di s pute.
If E-E rel ationship exists La bor Arbiter. If none ordi na ry
courts .
Specific Evidence required to prove existence of E-E relationship
None. Any competent a nd relevant evi dence to prove the
rel a ti ons hi p ma y be a dmi tted.
Purchaser of Assets of an employer corporation NOT considered
successor employer of latters employees Unl es s expres s l y
a s s umed or col ored or cl othed i n ba d fa i th, l a bor contra cts not
enforceable a gainst a tra nsferee of a n enterpri s e, l a bor contra cts
bei ng i n pers ona m.
LABOR Provisions of the 1987 Constitution
Sec3 ArtXIII
Section 3. The State shall afford full protection to labor, local and ove rseas,
organized and unorganized, and promote full employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the
right to strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of production and
the right of enterprises to reasonable returns to investments, and to
expansion and growth.
Chapters: Asuncion 1-14, Ortiguerra 15, 18-21, Punzalan 16, Piccio 17
LABOR LAW REVIEW

Note: Sta te ma y regul a te the rel a ti ons between workers a nd
empl oyers . However thi s does not i ncl ude the workers ri ght to
pa rti cipate in the management of the enterprise; thi s i s empl oyers
preroga ti ve.
Sec 18 Art II
Section 18. The State affirms labor as a primary social economic force. It shall
protect the rights of workers and promote their welfare.
Sec 8 Art III

Section 8. The right of the people, including those employed in the public and
private sectors, to form unions, associations , or societies for purposes not
contrary to law shall not be abridged.
Sec2b Art IXB

Sec14 AXIII
Section 14. The State shall protect working women by providing safe and
healthful working conditions, taking into account their maternal functions, and
such facilities and opportunities that will enhance their welfare and enable
them to realize their full potential in the service of the nation.
In 1987 Constitution, Social Justice envisions equitable diffusion of

wea lth a nd political power for the common good, regul a ti on of the
a cquisiti on, owners hi p, us e a nd di s pos i ti on of property a nd i ts
i ncrements ; a nd crea ti on of economi c opportuni ti es ba s ed on
freedom of i ni ti a ti ve a nd s el f-rel i a nce (Sec. 1&2, AXIII).
Social Justice as a guiding principle in labor law may be so used by
courts in sympathy with the working man if it collides with the
equal protection clause of the Constitution. As i t i ns ures equa l i ty
between labor a nd ca pital. La bor is in weaker posi ti on tha n ca pi ta l ,
thereby provi di ng equa l protecti o n.
Definition and Relevance of Compassionate Justice
Di s regarding of ri gid rules a nd gi ving due wei ght to a l l the
equities of the ca s e. Rel eva nt i n di s mi s s a l of workers .
Social Justice
Ca l a l a ng vs . Wi l l i a ms
Social justice is neither communism, nor despotism, nor atomism, nor
anarchy, but 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 approximated. Social justice means the
promotion of the welfare of all the people, the adoption by the Government of
measures calculated to ensure economic stability of all the component
elements of society, through the maintenance of a proper economic and social
equilibrium in the interrelations of the members of the community,
constitutionally, through the adoption of measures legally justifiable, or extraconstitutionally, through the exercise of powers underlying the existence of all
governments on the time-honored principle of salus populi est supremo lex.
It gua rantees equality of opportunity, equa l i ty of pol i ti ca l

ri ghts , equality before the law, equality of va lues given a nd
recei ved, equitable sharing of the social and material goods
a nd basis of efforts exerted in thei r producti on. Does no t
cha mpi on di vi s i on of property or equa l i ty of economi c
s ta tus . Ca nnot be us ed to tra mpl e ri ghts of others .
Not i ntended to countena nce the wrongdoi ngs by the
underprivileged. Ma y mi ti ga te pena l ty but not condone
offens e.
La bor, by reason of its economic dependence upon ca pi ta l ,

i s deemed the weaker of the two a nd needs the protecti on
of the Sta te.
Three Aggregates of power against which the individual employee

needs protection
1. Col l ecti ve La bor
2. Col l ecti ve Ca pi ta l
3. Uni on
Protection of labor means destruction of employer No. La tter i s
a l s o a component of s oci ety whi ch mus t be res pected.
Laissez-Faire principle cannot be invoked by an employer to resist
State regulation of E-E relationship Never found full a ccepta nce i n
thi s jurisdiction. General welfare pursued through government action.
Construction of labor and social legislation
Bei ng remedial i n character, should be l iberally construed in
order to further thei r purpos es .
Arti cl e 1702 CC Inca se of doubt, all labor l egislati ons a nd
a l l labor contracts s hall be construed i n fa vor of the s a fety
a nd decent l i vi ng of the l a borer.
Arti cl e 4 LC Cons tructi on i n fa vor of l a bor
May employee waive any right conferred by labor statutes or
acquired by him under a labor contract? Bi ndi ng onl y i f:
1. Supported by a dequa te a nd va l ua bl e cons i dera ti on
2. Not i n contravention of law, morals, good customs or public
pol i cy.
3. Vol unta ri l y entered i nto.
Burden of establishing voluntariness of waiver is i ncumbent
upon the empl oyer.
Dire Necessity not a ground to annul waivers or releases executed
by workers. Onl y i f workers were forced to execute them of tha t
the considerations for the quitclaims a re unconsciona bl y l ow or the
workers were tri cked i n a ccepti ng them.
Property Rights of Employer - Management prerogatives. Thes e
mus t be exercised i n good faith, without discrimination a nd wi thout
a bus e of di s creti on. Ri ghts to:
to s elect workers to be hired and to discharge them for jus t
a nd va l i d ca us e
to promul gate and enforce re asonable empl oyment rul es
a nd regulations and to modify or a mend or revoke the same
to des i gna te the work a s wel l a s the empl oyee or
empl oyees to perform i t
to tra ns fer a nd promote empl oyees
to s chedule, direct, curtail or control compa ny opera ti ons
to i ntroduce a nd i ns ta l l new or i mproved money s a vi ng
methods , fa ci l i ti es or devi ces
to crea te, merge, divide, reclassify a nd a bolish departments
or pos i ti ons i n the compa ny
to s el l or cl os e the bus i nes s
Prerogative to select employees NOT absolute. Subject to
cons ti tuti ona l or s ta tutory l i mi ta ti ons . Cons i der equa l i ty
requi rements .
Why must the State afford protection to Labor?

Bona Fide Occupational Qualification Exception
LABOR LAW REVIEW

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when employer ca n prove that the reasonable demands of the

bus iness require a distinction and there is no better a vail a bl e
or a ccepta bl e pol i cy whi ch woul d better a ccompl i s h the
bus i nes s purpos e.
Increase in salary is a management prerogative. Promotion does not

automatically entitle employee to increase in salary. Increa s e
dependent upon the empl oyer i n the a bs ence of contra ctua l
s ti pul a ti on or es ta bl i s hed compa ny pol i cy.
Code of discipline. Empl oyer ha s obl i ga ti on to s ha re wi th i ts
empl oyees i ts preroga ti ve of formul a ti ng a code of di s ci pl i ne.
Ma na gement prerogatives are not considered boundless. If i t a ffects
the ri ghts of empl oyees a nd ha ve repercus s i ons on the ri ghts to
s ecuri ty of tenure, empl oyees mus t be i nformed.
Prerogative to transfer and reassign employees. Mus t be for va l i d
rea s ons and according to the requi rement of the bus i nes s . There
mus t not be any demotion in ra nk or diminution of his salary, benefits
a nd other pri vi l eges .
Promotion, as a result of transfer, should still be with employees
consent. No l a w which compels employee to a ccept promoti on for
the rea son that a promotion i s in the nature of a gift or reward, which
a pers on ha s a ri ght to refus e.
Relevance of Management Prerogatives to the in personam
character of the E-E relationship. Purcha ser of business ca nnot be
compelled to conti nue s ervi ces of empl oyees of s el l er. Workers
ca nnot be compel l ed to work for hi m ei ther a ga i ns t thei r wi l l .
CHAPTER II THE LABOR CODE

Enactment Ma y 1, 1974
Effectivity November 1, 1974 (6months a fter ena ctment)
Reasons for enactment to a fford protecti on to l a bor, promote
empl oyment a nd human resources development a nd i nsure i ndustrial
pea ce ba s ed on s oci a l jus ti ce.
Concept of liberal approach in interpreting the Labor Code and its
IRR in favor of labor.
Bei ng remedial i n character, must be a ccorded the broa des t
s cope a nd most beneficial interpretation. Stri ct adh erence to
the l etter of l a bor l a ws i s not a l l owed, the s pi ri t thereof
preva ils and must be given effect. All doubts must be resolved
i n fa vor of l a bor.
Books in the Labor Code
Book I 12 to 42, Pre-employment
Book II 43 to 81, Human resources Developme nt Program
Book III 82 to 155, Conditions of Employment
Book IV 156 to 210, Health, Safety and Social Welfare Benefits
Book V 211 to 277, Labor Relations
Book VI 278 to 287, Post Employment
Book VII 288 to 302, Penal Provisions, Prescriptions, Transitory and Final
Provisions
Scope of Power of DOLE and other government agencies in the

administration and enforcement of the LC and promulgation of
necessary implementing rules and regulations. Li mi ted to
promulgation of rules and regulations to effectuate the policies of the
Code. Mus t conform to the terms and s ta nda rds pres cri bed i n the
s ta tute. (Art5) Rulemaking is not Lawmaking.
Application to employment contracts already existing at the time of
enactment of LC. remedial i n character, otherwise, i t wi l l be s el fdefea ti ng.
Main Objectives of Labor Code (accdg. to Pres. Marcos who
promulgated LC)
1. Industrial Pea ce ba s ed on s oci a l jus ti ce a nd ma xi mum
protecti on of the ri ghts of l a bor
2. Industrial Development based on trisectoral cooperation of
l a bor, ma na gement a nd government
3. Promoti on of i nteres ts a nd wel fa re of l a bor
Basic Policy of State (in labor code)
Article 3
ART. 3. Declaration of basic policy. - The State shall afford protection to labor,
promote full employment, ensure equal work opportunities regardless of sex,
race or creed and regulate the relations between workers and employers. The
State shall assure the rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane conditions of work.
Article 12 POLICY OF STATE ON PRE-EMPLOYMENT

ART. 12. Statement of objectives. - It is the policy of the State:
a) To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
b) To protect every citizen desiring to work locally or overseas by securing for
him the best possible terms and conditions of employment;
c) To facilitate a free choice of available employment by persons seeking work
in conformity with the national interest;
d) To facilitate and regulate the movement of workers in conformity with the
national interest;
e) To regulate the employment of aliens, including the establishment of a
registration and/or work permit system;
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of
workers, locally and overseas, to serve national development objectives;
g) To insure careful selection of Filipino workers for overseas employment in
order to protect the good name of the Philippines abroad.
Article 43 POLICY OF STATE ON HUMAN RESOURCES

ART. 43. Statement of objective. - It is the objective of this Title to develop
human resources, establish training institutions, and formulate such plans and
programs as will ensure efficient allocation, development and utilization of the
nations manpower and thereby promote employment and accelerate
economic and social growth.
Article 57 POLICY OF STATE ON APPRENTICESHIP

ART. 57. Statement of objectives. - This Title aims:
(1) To help meet the demand of the economy for trained manpower;
(2) To establish a national apprenticeship program through the participationof
employers, workers and government and non-government agencies; and
(3) To establish apprenticeship standards for the protection of apprentices.
Article 166 POLICY OF STATE ON EMPLOYEES COMPENSATION

PROGRAM
ART. 166. Policy. - The State shall promote and develop a tax-exempt
employees compensation program whereby employees and their
dependents, in the event of work-connected disability or death, may promptly
secure adequate income benefit and medical related benefits.
Article 211 POLICY OF STATE ON COLLECTIVE BARGAINING, TRADE

UNIONISM and OTHER MATTERS CONCERNING LABOR RELATIONS
LABOR LAW REVIEW

ART. 211. Declaration of Policy. - A. It is the policy of the State: (a) To promote
and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as modes of
settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor
movement;
(d) To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
(e) To provide an adequate administrative machinery for the expeditious
settlement of labor or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; a nd
(g) To ensure the participation of workers in decision and policy-making
processes affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the relations
between the employers and employees by means of agreeme nts freely
entered into through collective bargaining, no court or administrative agency
or official shall have the power to set or fix wages, rates of pay, hours of work
or other terms and conditions of employment, except as otherwise provided
under this Code. (As amended by Section 3, Republic Act No. 6715, March 21,
1989).
Article 263 (SAME)

Article 275
ART. 275. Tripartism and tripartite conferences. - (a) Tripartism in labor
relations is hereby declared a State policy. Towards this end, workers and
employers shall, as far as practicable, be represented in decision and policymaking bodies of the government.
(b) The Secretary of Labor and Employment or his duly authorized
representatives may, from time to time, call a national, regional, or industria l
tripartite conference of representatives of government, workers and
employers for the consideration and adoption of voluntary codes of principles
designed to promote industrial peace based on social justice or to align labor
movement relations with established priorities in economic and social
development. In calling such conference, the Secretary of Labor and
Employment may consult with accredited representatives of workers and
employers. (As amended by Section 32, Republic Act No. 6715, March 21,
1989).
Workers entitled to rights and benefits under the Labor Code.

Arti cl e6. Applicability xxx a l l workers, whether a gricul tura l or non a gri cul tura l .
Tripartism in Labor Relations
Sta te, Empl oyee a nd Empl oyer res ol vi ng a l a bor di s pute.
Cons i dera ti on of l a bor di s putes a s ha vi ng fa r rea chi ng
developmental repercussions. NLRC, National Ma npower a nd
Youth Council, Employees Compens a ti on Commi s s i on a nd
Soci a l Securi ty Commi s s i on.
Compensation of Government Employees NOT covered by LC
Congress determines compensation (Sec5, ArtIX-B, Cons ti )
Thi s i ncl udes GOCCs wi th ori gi na l cha rters . (SSS, DBP,
PAGCOR, PNRC, Wa ter Di s tri cts , etc.)
No Ori gi na l Cha rters PNB, NHA,
Classes of Workers mentioned in the labor Code
1. Agri cul tura l a nd non-a gri cul tura l workers
2. Apprentice, Learners and Handica pped workers provi ded
(Art. 59 to 81)
3. Ma na geri a l empl oyees (Art. 82 a nd 212)
4. Workers pa i d by res ul ts (Art. 82 a nd 101)
5.
6.
Women, minors, househelpers and homeworkers (Art. 130

to 155)
Regular, casual a nd probationa ry empl oyees (Art.280 a nd
281)
Classification of employments covered by the Labor Code

1. Na ture of a cti vi ti es
a . Agri cul tura l
b. Non-a gri cul tura l (A6)
2. Na ture of workers res pons i bi l i ti es
a . Ma na geri a l
b. Supervi s ory
c. Ra nk-a nd-fi l e (A82,212)
3. Method of determi ni ng the workers wa ges
a . Pa i d on ti me-ba s i s
b. Pa i d by res ul ts (A97, 99, 101)
4. Importa nce of workers functi ons to the bus i nes s or
underta ki ng of the empl oyer
a . Regul a r
b. Ca s ua l (A280)
5. Peri od of empl oyment
a . for a n i ndefi ni te peri od
b. for a fi xed term
c. Project
d. Speci fi c underta ki ng
e. Pa rti cul a r Sea s on (A280)
f. Proba ti ona ry (A281)
Agricultural or Farm Worker
Is one empl oyed i n a n a gri cul tura l or fa rm enterpri s e a nd
a s signed to perform ta s ks whi ch a re di rectl y rel a ted to the
a gri cultural activities of the employer, s uch as cul ti va ti on a nd
ti l lage of the s oi l , da i ryi ng, growi ng a nd ha rves ti ng of a ny
a gri cul tura l a nd horti cul tura l commodi ti es , the ra i s i ng of
l i vestock or poultry a nd any a ctivi ties performed by a farmer on
a fa rm a s an incident to or i n conjuncti on wi th s uch fa rmi ng
opera ti ons .
Seasonal
1. Work Seasonal
2. Only for one season
Regular
1. Usually necessary or desirable in the usual business
2. Indefinite period of time
Casual
1. Not usually necessary or desirable in the business
Project Employment
1. Specific, particular project
Probationary
1. Stated in Contract or expressed that they are probationary
employee
Relationship of parties NOT determined solely on the terms of

agreement in Contract. Al s o on the basis of the nature of the work
peti ti oner ha s been ca l l ed upon to perform.
Program Employees
Thos e whose skills, ta l ents or s ervi ces a re enga ged by the
s ta tion for a particular or s pecific program or undertaking and
who a re not required to observe normal worki ng hours s uch
tha t on s ome da ys they work for l es s tha n 8 hours a nd on
other da ys beyond the normal work hours observed by s tation
LABOR LAW REVIEW

empl oyees a nd a re a l l owed to enter i nto empl oyment
contra cts wi th other persons, stations, advertising a gencies or
s ponsoring compa ni es . Shoul d be under wri tten contra ct.
Work Pool Employees
Empl oyees from whi ch a compa ny dra ws workers for
deployment to i ts different projects. Ma y be regular or project
empl oyees .
At least one year of service in Art. 280
Servi ce within 12 months , conti nuous or broken, reckoned
from the da te the empl oyee s ta rted worki ng, i ncl udi ng
a uthorized absences a nd pai d regul a r hol i da ys , unl es s the
worki ng days i n the establishment as a ma tter of pra cti ce or
pol icy or tha t provided in the contract is l ess than 12 months ,
i n whi ch ca s e s a i d peri od s ha l l be cons i dered one yea r.
Performa nce of a job for a t l ea s t one yea r, even i f not
conti nuous or i ntermittent, l aw deems a s sufficient evi dence
of the necessity, i f not i ndispensability, of tha t a cti vi ty to the
bus i nes s of the empl oyer.
Regular employees by nature of
work
Performs a cti vi ti es whi ch a re
neces s a ry or des i ra bl e i n the
us ual bus i nes s or tra de of the
empl oyer rega rdl es s of thei r
l ength of s ervi ce.
Empl oyment for a n i ndefi ni te
peri od.
Regular employees by years of

service
Ha ve been performi ng the job,
not us ua l l y neces s a ry or
des irable in the usual business or
tra de of the employer for at least
a yea r.
Onl y a s long a s the a cti vi ty they
a re enga ged a ctua l l y exi s ts .
Probationary Employment
Tempora ry empl oyment s ta tus . Empl oyee termi na bl e
a nyti me as long as such termi na ti on i s ma de before the
expi ra ti on of the 6-month proba ti ona ry peri od.
May only be terminated if:
1. For a jus t ca us e
2. When the empl oyee fa i l s to qua l i fy a s a regul a r
empl oyee i n a ccordance with the reasonable standards
ma de known to him by the employer a t the start of his
empl oyment.
Power to terminate subject to following conditions:
1. Exerci s ed in accordance with specific requirements of
the contra ct
2. Di s satisfaction on the pa rt of the empl oyer mus t be
rea l and in good faith, not prejudicial s o a s to vi ol a te
the contra ct or the l a w
3. There mus t be no unl a wful di s cri mi na ti on i n the
di s mi s s a l .
Burden of proof wi th the empl oyer.
Managerial, Supervisory and Rank-and-file Employees
Managerial
Supervisory
Rank-and-File
On who i s vested Thos e, who i n the Al l other employees.
with powers
or i nteres t of the
prerogatives to l a y empl oyer, effectively
down a nd execute recommend
s uch
ma nagement policies ma nagerial a ctions i f
a nd/or hire, tra nsfer, the exercise of s uch
s us pend, l a y-off, a uthori ty i s not
reca l l , di s cha rge,

a s sign or di s ci pl i ne
empl oyees .
Ha s no ri ght to s el forga ni za ti on
for
purpos es
of
col l ective bargaining.
merel y routi na ry or
cl eri cal i n nature but
requi res the s ue of
i ndependent
judgment.
Ha s ri ght.
Ha s ri ght.
CHAPTER III RECRUITMENT AND PLACEMENT OF

WORKERS
Recruitment and Placement
Any a ct of ca nva ssi ng, enl i s ti ng, contra cti ng, tra ns porti ng,
uti l izing, hiring, procuri ng workers , a nd i ncl udes referra l s .
Conta ct s ervi ces, promising or a dverti s i ng for empl oyment,
l oca lly or a broad, whether for profit or not; provided, that a ny
pers on or entity which, in any manner, offers or promises for a
fee employment to two or more pers ons s ha l l be deemed
enga ged i n recrui tment a nd pl a cement. (Art. 13(b))
Number of persons dealt with is not a n essenti a l i ngredi ent.
Even i f onl y one.
Il l ega l i f no l i cens e.
Who can undertake recruitment and placement?
Onl y i ndivi dua l s or enti ti es who ha ve been i s s ued the
a ppropri a te a uthori ty or l i cens e ca n enga ge i n or
underta ke recrui tment a nd pl a cement.
Authority document issued by the Secretary of DOLE a utho ri zi ng a
pers ons or a s s oci a ti on to enga ge i n recrui tment a nd pl a cement
a cti vi ti es a s a pri va te recrui tment enti ty.
License document issued to a person or entity to operate a pri va te
empl oyment a gency.
Terms:
Overseas or Migrant Filipino Workers a ny person, 18 ya rs of a ge or
a bove, as provi ded by RA 8042, who i s to be engaged, or i s enga ged,
or ha s been engaged in a remunerated a ctivi ty i n a s tate of which the
worker i s not a l ega l res i dent.
Licensed Manning Agency a ny pers on, partnershi p or corpora ti on
dul y l icensed by the Secreta ry to recrui t a nd depl oy s ea fa rers for
ma ri ti me empl oyment.
Placement Fee a mount charged by a pri va te empl oyment a gency
from a worker for i ts recrui tment a nd pl a cement s ervi ces , a s
pres cri bed by the Secreta ry.
Sha ll not be cha rged unti l the empl oyee ha s obta i ned
empl oyment through the l a tters efforts or ha s a ctua l l y
commenced empl oyment. (Art32)
Service Fee a mount charged by a licensee from i ts foreign principa l
a s payment for a ctual servi ces rendered i n relation to the recruitment
a nd empl oyment of workers .
Overseas Employment empl oyment of a Filipino worker outside the
Phi l i ppi nes , covered by a va l i d contra ct.
Valid Employment Contract i ndividual written agreement between
the pri nci pa l /empl oyer a nd the worker ba s ed o n the ma s ter
empl oyment contra ct a s a pproved by the POEA.
LABOR LAW REVIEW

Citizenship requirement for a person or entity engaged in the
recruitment and placement of workers.
Art. 27. Onl y Fi lipino ci tizens or corporations, partners hi ps
or enti ties at l east 75% of the a uthorized and voting ca pita l
s tock of which is owned a nd controlled by Filipino ci ti zens .
Qualifications for overseas employment program
1. Fi l ipino ci tizens or corporations, partnerships or enti ti es a t
l eas t 75% of the a uthori zed a nd voti ng ca pi ta l s tock of
whi ch i s owned a nd control l ed by Fi l i pi no ci ti zens
2. Mi ni mum ca pi ta l i za ti on P2M i n ca s e of a s i ngl e
propri etors hi p or pa rtners hi p a nd a mi ni mum pa i d -up
ca pi ta l of P2M i n ca s e of corpora ti ons .
3. Thos e otherwise not disqualifi ed by l a w or gui del i nes to
enga ge i n the recruitment or placement of workers abroad.
Not qualified to participate in recruitment and placement of
workers abroad
Secti on 2, Rule I, Part II, Amended Rules and Regulation on Overs ea s
Empl oyment.
a . Tra vel agencies a nd s a l es a genci es of a i rl i ne com pa ni es ;
b. Offi cers or members of the Boa rd of a ny corpora ti on or
members i n a partnership engaged i n the business of a tra vel
a gency
c. Corpora ti ons a nd pa rtners hi ps , when a ny of i ts offi cers ,
members of the board or partners, is also a n officer, member
of the boa rd of pa rtner of a corpora ti on or pa rtners hi p
enga ged i n the bus i nes s of a tra vel a gency;
d. Pers ons, partnerships or corporations which have deroga tory
records such as, but not limited to overcharging of placement
or documenta ti on fees , fa l s e documenta ti on, i l l ega l
recrui tment a nd s windl i ng or es ta fa , or thos e convi cted of
cri mes i nvol vi ng mora l turpi tude;
e. Pers ons employed in the Department or i n other government
offi ces directly i nvolved i n the overseas employment program,
a nd their relatives within the fourth degree of cons a ngui ni ty
or a ffi ni ty; a nd
f. Pers ons , pa rtners , offi cers a nd Di rectors of corpora ti ons
whos e license has been previousl y ca ncel l ed or revoked for
vi ol ation of the La bor Code, or i ts implementing rules, or other
rel evant l aws, decrees, rules a nd regulations, and i s s ua nces .
Philippine Overseas Employment Administration
Es ta bl i s hed Ma y 1, 1982, EO 797
Cha rged with the implementation a nd enforcement of the
l a ws on recrui tment a nd pl a cement.
Proceedings: Nonlitiguous a nd techni ca l i ti es o f l a w a nd
procedure and the rules obtaining i n the courts of l a w a re
not a ppl i ca bl e. Summa ry Na ture of proceedi ngs .
Direct Hiring of foreign employers of Filipinos banned.
Arti cl e 18, LC. No employer may be hi re a Fi l i pi no worker
for overs eas empl oyment except through the Boa rds or
enti ties authorized by the Secretary of Labor. Di rect hi ri ng
by members of the diplomatic organizations, i nterna ti ona l
orga nizations and such other employers as may be allowed
by the Secretary of La bor i s exempted from thi s pro vi s i on.
Reasons for ban on Direct-Hiring:
1. Fi l ipino employee may not be a ssured of the best pos s i bl e
terms a nd condi ti ons of empl oyment.
2.
3.
Forei gn empl oyer mus t a l s o be protected. Onl y hi res

qua l i fi ed Fi l i pi nos .
Ma ndatory requirements for remittance to the Phili ppi nes
of a porti on of the workers foreign exchange earni ngs ca n
ea s i l y be eva ded by a worker who i s di rectl y hi red.
Overseas Worker cannot refuse to remit his earnings to his

dependents and deposit the same in the country where he works to
gain more interests. Ma nda tory for OFW to remit a portion of thei r
forei gn exchange earnings to their dependents a nd/or beneficiaries in
the country i n a ccordance with the rules a nd regulations pres cri bed
by the Secreta ry of DOLE.
Minimum requirements for contracts of employment of alnd-based
workers.
1. Gua ra nteed wages for regular work hours and overtime pay
2. Free tra nsportation to a nd from the worksite or offs etti ng
benefi t.
3. Free food a nd a ccommoda ti ons or offs etti ng benefi t.
4. Jus t/authorized ca uses for termination of the contract or of
the s ervices of the workers taking i nto cons i dera ti on the
cus toms , tra di ti ons , norms , mores , pra cti ces , compa ny
pol icies and the labor laws a nd s ocial l egislations of the host
country.
Nature of liability of the recruitment and placement agency and its
principal.
Joi ntly a nd severally lia bl e wi th the pri nci pa l or forei gn ba s ed employer for a ny of the vi ol a ti ons of recrui tment
a greement a nd contra cts of empl oyment.
Desertion
1. Sea mans abandonment of duty by qui tti ng s hi p, not onl y
wi thout l eave or permission but without justifi a bl e ca us e,
before termi na ti on of empl oyment
2. Wi th the i ntent of not returni ng to s hi ps duty.
o Pena lties : di s mi s s ed by ma s ter for des erti on;
Sus pended by POEA for 3 yea rs a s a mi ni mum
pena l ty or Del i s ted a s a ma xi mum pena l ty.
NLRC has jurisdiction over claims of overseas Filipino workers.
ori gi nal a nd exclusive juri s di cti on to hea r ca s e a fter 90 da ys from
fi l i ng.
Repatriation of Overseas Filipino Workers pri mary res ponsibility of
the a gency whi ch recrui ted or depl oyed the worker overs ea s .
Amount a nd Form of remi tta nce
Sea men a nd ma ri ners
Workers of Fil i pi no contra ctors
a nd cons tructi on compa ni es
Doctors , engi neers , tea chers ,
nurs es a nd other profes s i ona l
workers whos e empl oyment
contra cts provide for free boa rd
a nd l odgi ng
Al l other profes s i ona l s whos e
empl oyment contra cts do not
provi de free boa rd a nd l odgi ng
Domes ti c a nd other s ervi ce
80% ba s i c s a l a ry
LABOR LAW REVIEW

workers
Al l other workers not fa l l i ng
under the a forementi oned
ca tegori es
Prohibited practices
Arti cl e 34 of the LC
Illegal recruitment considered a crime of economic sabotage
When commi tted by a s yndi ca te or i n a l a rge s ca l e.
By a s yndi ca te i f: ca rri ed out by a group of 3 or more
pers ons conspiring or confedera ti ng wi th one a nother i n
ca rryi ng out any unlawful or i llegal tra nsaction, enterpri s e
or s cheme defi ned i n Art38.
In a La rge Scale if: committed a ga i ns t 3 or more pers ons
i ndi vi dua l l y or a s a group.
Illegal recruitment as a criminal offense
(1) offender non-l i cens ee or non-hol der of a uthori ty to
l a wful l y enga ge i n the recrui tment a nd pl a cement of
workers ; a nd (2) offender underta kes a ny recrui tment
a cti vi ty defi ned i n Art 13b of LC.
Purpose of surety bond required of recruitment agencies by the LC
(Art. 31): Protecti on of Filipino ci tizens who a re engaged i n overs ea s
empl oyment by forei gn corpora ti ons . If ri ghts vi ol a ted, recours e
woul d s ti l l be a va i l a bl e to them.
Duration of License to recruit
Va l i d for 4 yea rs from da te of i s s ua nce unl es s s ooner
ca ncelled, revoked or s uspended for vi olation of applicabl e
Phi l ippine La w, rules a nd regulations a nd other perti nent
i s s ua nces or i ts i mpl ementi ng rul es a nd regul a ti ons .
(Sec6Rul eIIPa rtIi , IRR)
Transferability of license or authority
Not a l l owed.
Enforcement of monetary award of the POEA
Ini tially enforced a gainst the cas h a nd s urety bonds fi l ed
wi th the POEA.
Appeal bond required in ca se of a ppea l to further i ns ure
pa yment of the monetary a ward in fa vor of the empl o yee.
Amount of indemnity in case of pretermination of the employment
contract of the OFW
Ful l reimbursement of placement fee wi th i nteres t a t 12%
per a nnum pl us s a l a ri es for unexpi red porti on of hi s
empl oyment contract or for 3 months for every yea r of th e
unexpi red term.
Employment of Aliens
Not prohi bi ted
Prohi bi ted onl y by Anti -Dummy La w (CA 108 a a PD 715)
when the empl oyment of a l i ens i n es ta bl i s hements or
enti ties which ha ve under thei r na me or control a ri ght,
fra nchise, privilege, property, or bus i nes s the exerci s e or
enjoyment of whi ch i s expres s l y res erved by the
Cons ti tution or the laws to ci tizens of the Philippi nes or to
corpora tions or a ssociations a t lea s t 60% of the ca pi ta l i s
owned by s uch ci ti zens (na ti ona l i zed a cti vi ti es ).
Exceptions to prohibition against employment of aliens in entities

engaged in nationalized activities.
1. Where s ecreta ry of Jus ti ce s peci fi ca l l y a uthori zes the
empl oyment of techni ca l pers onnel
2. Where the ali ens a re el ected members of the boa rd of
di rectors or governing body of corporations or associations
i n proportion to their allowable participation in the ca pi ta l
of s uch enti ti es .
Employment permit for non-resident aliens (NRA) (Article 40, LC)
1. Ma y be i ssued upon determination of: The non-availability
of a person in the Philippines who is competent, a bl e a nd
wi l ling at the ti me of application to perform the services for
whi ch the a l i en i s des i red.
For a n enterpri s e regi s tered i n preferred a rea s of
i nvestment, permit may be issued upon recommendation of
the government agency cha rged wi th the s upervi s i on of
s a i d regi s tered enterpri s e.
2.
Non-resident a lien must bind themselves to tra in a t l ea s t 2

Fi l ipino understudies for a period to be determi ned by the
Secreta ry of DOLE. Unders tudi es a re hi red a s regul a r
empl oyees to ens ure a ctua l tra ns fer of technol ogy.
Duration of employment permit

Sec 7 Rul e XIV Book I, IRR s ubject to renewal s howi ng good ca us e,
s ha ll be va lid for a minimum of 1 year s tarting from date of issua nce,
unl es s s ooner revoked.
Reason: to protect l ocal employment opportunities from i nva s i on of
forei gners .
CHAPTER IV HUMAN RESOURCE DEVELOPMENT

Human Resource Development
Refers to the process by which the a ctual and potentia l l a bor
force i s made systematically to a cqui re grea ter knowl edge,
s ki lls a nd ca pabilities for the nations sustained economic a nd
s oci a l growth.
Important becaus e thi s wi l l produce s ki l l ed a nd ca pa bl e
workers which have better opportuni ti es fro empl oyment.
Wi th s uch, industries can operate efficiently a nd continuously,
thus economi c a nd s oci a l growth i s a s s ured.
Not l i mi ted to tra i ni ng workers to s erve empl oyers .
Entrepreneurs hi p a l s o covered.
Manpower porti on of popul a ti on whi ch ha s a ctua l or potenti a l
ca pa bility to contri bute to the producti on of goods a nd s ervi ces .
How Manpower Development achieved?
Pri ma ri l y through tra i ni ng progra ms conducted by the
Techni ca l Educa ti on a nd Ski l l s Devel opment Boa rd or by
pri va te empl oyers (l ea rners hi p a nd a pprenti ces hi p),
a s s oci a ti ons or ci vi c groups .
TESDA
Crea ted by RA 7796. Replacing National Ma npower and Youth
Counci l, Bureau of Technical and Voca ti ona l Educa ti on a nd
pers onnel and functions pertai ni ng to techni ca l -voca ti ona l
educa ti on offered by DECS a nd DOLE.
LABOR LAW REVIEW

Dual System Training refers to s ys tem of qua l i ty tehni ca l a nd
voca ti ona l educa ti on whi ch requi res tra i ni ng to be ca rri ed out
a l ternately i n 2 venues: School (theoretical) a nd i n Production Pl a nts
(pra cti ca l ).
Apprenticeship
mea ns practical training on the job supplemented by rel a ted
theoretical i nstruction involving a pprentici a bl e occu pa ti ons
a nd tra des a s ma y be a pproved by the Secreta ry of La bor.
Apprenticiable Occupations
Offi ci ally Endorsed by a tri pa rti te body a nd a pproved for
a pprenti ces hi p by the TESDA.
1. requi res for proficiency more tha n 3 months of pra cti ca l
tra i ning on the job s upplemented by theoretical instruction
2. onl y i n hi ghl y techni ca l i ndus tri es
Highly Technical Industries enga ged i n a ppl i ca ti on of a dva nced
technol ogy.
Compulsory?
GR: Vol unta ry underta ki ng of empl oyers
EXPN:
1. when national security or particular requirements of economi c
development so demands, the Pres ma y requi re compul s ory
tra i ning apprentices in certain tra des or occupa ti ons , jobs or
empl oyment l evels where s horta ge of tra i ned ma npower i s
deemed cri ti ca l a s determi ned by the DOLE Sec.
2. where servi ces of a foreign technici a n a re uti l i zed by pri va te
compa nies in apprenticiable trades, said companies required to
s et-up a pprenti ces hi p progra ms .
Incentives to employer
1. a l l owed to pa y a pprenti ce 75% of mi ni mum wa ge
2. a l lowed a dditional deduction from taxable i ncome of of
the va l ue of labor training expenses i ncurred for developing
the producti vi ty of a pprenti ces .
PROVIDED: (1) a pprenticeship progra m recogni zed by the
DOLE. (2) s a id deducti on s ha l l not exceed 10% of di rect
l a bor wage. (3) employer pays a pprenti ces the mi ni mum
wa ge.
Apprentice without compensation
If required by s chool or tra ining program curri culum or as a
requi s i te for gra dua ti on or boa rd exa mi na ti ons .
Qualifications of an apprentice:
1. Be a t l east 15 yea rs of a ge. Provi ded if 15 yea rs of a ge but
bel ow 18, ma y be eligible for apprenti ces hi p onl y i n non ha za rdous occupa ti ons ;
2. Be phys ically fi t for the occupation he desires to be trained;
3. Pos s ess voca tional aptitude and capacity for the pa rti cul a r
occupa tion as established through appropri a te tes ts ; a nd
4. Pos s ess a bility to comprehend and follow oral a nd wri tten
i ns tructi ons .
Period: Sha l l not exceed 6 months .
Cause of Dismissal - After Proba ti ona ry peri od of 1 month, the
a pprenticeship agreement may be terminated only for the fol l owi ng
ca us es :
Sec25 Rul e VI BookII, Impl ementi ng Rul es
By the employer
(a ) Ha bi tua l a bs enteei s m i n on -the-job tra i ni ng a nd rel a ted
theoreti ca l i ns tructi ons ;
(b) Wi llful disobedience of company rul es or i nsubordination to lawful
order of a s uperi or;
(c) Poor phys ical condition, permanent disability or prolonged i llnes s
whi ch i nca pa ci ta tes the a pprenti ce from worki ng;
(d) Theft or ma l i ci ous des tructi on of compa ny property a nd/or
equi pment;
(e) Poor efficiency or performance on the job or i n the cl assroom for a
prol onged period despite wa rnings duly given to the apprenti ce; a nd
(f) Enga ging in vi olence or other forms of gross misconduct inside the
empl oyer's premi s es .
By the apprentice
(a ) Subs ta nda rd or del eteri ous worki ng condi ti ons wi thi n the
empl oyer's premi s es :
(b) Repea ted vi ol a ti ons by the empl oyer of the terms of the
a pprenti ces hi p a greement;
(c) Cruel or i nhuman treatment by the employer or his subordina tes ;
(d) Pers onal problems which i n the opinion of the a pprenti ce s ha l l
prevent hi m from a s a ti s fa ctory performa nce of hi s job; a nd
(e) Ba d hea l th or conti nui ng i l l nes s .
Hours of work of apprentice: s ha l l not exceed the ma x number of
hours of work prescribed by l aw, if any, for a worker of hi s a ge a nd
s ex.
Entitlement to increase: Increase based on graduated scale of wages
i ncl uded in the written program in the apprenticeship a greement. If
there i s increase i n statutory minimum wage, change s hall l ikewise be
ma de i n the wa ges of a pprenti ces .
Obligation of employer to employ after apprenticeship period:
None. Unles s , a pprenti ces hi p a greement s ti pul a tes otherwi s e.
Learners
Pers ons hired as trainees i n semi-skilled a nd other i ndus tri a l
occupa tions which are non-apprenticiable and whi ch ma y be
l earned through practical tra ining on the job in relatively sh ort
peri od of time whi ch s ha l l not exceed 3 months (Art73,LC)
Neces s a ry to prevent curta i l ment of empl oyment
opportunities a nd the empl oyment does not crea te unfa i r
competition i n terms of labor costs or impair or l ower working
s ta nda rds .
Mus t be a pproved by TESDA.
Apprenticeship
Learnership
Must be approved by TESDA.

Apprentice/Learner may be paid wages 75% of applicable minimum wage.
- Duration may exceed 3 months
- Duration may not exceed 3
months.
- No commitment to employ - Employer
must
make
apprentices.
commitment to employ learners.
- Integrated circuit assembler, - Candle maker, office secretary,
general maintenance mechanic
waiter
Handicapped Workers
Thos e whose earning ca pacity is i mpaired by a ge or physical
or menta l defi ci ency or i njury.
One whose e fficiency or quality of work i s i mpa i red by hi s
di s a bi l i ty i n rel a ti on to the work performed.
LABOR LAW REVIEW

-
Di s ability must render them unqua l i fi ed or unfi t for the

ta s ks a s s i gned to them, otherwi s e qua l i fi ed di s a bl ed
workers .
Determi ned by na ture of work performed a nd not by
s ti pul a ti ons i n contra ct.
CHAPTER V HOURS OF WORK, REST PERIODS,

HOLIDAY PAY, LEAVES and SERVICE CHARGES
Normal Hours of Work
ART. 83. Normal hours of work. - The normal hours of work of any employee
shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at least
one million (1,000,000) or in hospitals and clinics with a bed capacity of at
least one hundred (100) shall hold regular office hours for eight (8) hours a
day, for five (5) days a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for six (6) days or
forty-eight (48) hours, in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work
on the sixth day. For purposes of this Article, "health personnel" shall include
resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologi sts,
midwives, attendants and all other hospital or clinic personnel.
whi le on call. An employee who is not required to l ea ve word a t hi s

home or with company offi ci a l s where he ma y be rea ched i s not
worki ng whi l e on ca l l .
Overtime Work and Compensation
It i s work rendered i n excess of a nd i n a ddi ti on to ei ght (8)
hours on ordi na ry worki ng da ys .
An a dditional compens a ti on equi va l ent to a n empl oyees
regul ar wage plus 25% thereof given for overtime work on a n
ordi nary day. If overtime was done on a rest day or a hol i da y,
the a dditional compensation is equiva l ent to the ra te of the
fi rs t 8 hours pl us a t l ea s t 30% thereof.
Overtime Pay vs. Premium Pay
Overtime Pay
Addi ti ona l compens a ti on for
work done beyond the norma l
work hours on ordina ry worki ng
da ys .
Premium Pay
Addi ti ona l compens a ti on for
work rendered by the empl oyee
on da ys normally he s houl d not
be worki ng s uch a s s peci a l
hol i da ys or res t da ys . Pa y for
exces s of 8hours on s uch da ys
cons i dered overti me pa y.
Empl oyers ma y reduce norma l hours of work.
Hours Worked
Compensable hours worked i ncludes: (a ) a ll ti me during which
a n employee is required to be on duty or to be a t a pres cri bed
workpl a ce, a nd (b) a l l ti me duri ng whi ch a n empl oyee i s
s uffered or permi tted to work. (Art.84)
Res t periods of s hort duration during working hours s ha l l be
counted a s hours worked.
General Principles Sec 4 Rul e I Book 3 IRR
(a ) Al l hours are hours worked which the employee is required to give
hi s employer, regardless of whether or not s uch hours a re s pent i n
producti ve l a bor or i nvol ve phys i ca l or menta l exerti on.
(b) An employee need not l eave the premi s es of the work pl a ce i n
order tha t his rest period s hall not be counted, it bei ng enough tha t
he s tops working, may rest completely a nd may l eave his work pla ce,
to go el sewhere, whether within or outside the premises of hi s work
pl a ce.
(c) If the work performed wa s neces s a ry, or i t benefi ted the
empl oyer, or the employee could not abandon his work a t the end of
hi s normal working hours because he had no repl a cement, a l l ti me
s pent for s uch work shall be considered as hours worked, i f the work
wa s with the knowledge of his empl oyer or i mmedi a te s upervi s or.
(d) The ti me duri ng whi ch a n empl oyee i s i na cti ve by rea s on of
i nterruptions i n his work beyond hi s control s ha l l be cons i dered
worki ng ti me ei ther i f the i mmi nence of the res umpti on of work
requi res the empl oyee's pres ence a t the pl a ce of work or i f the
i nterval is too brief to be uti l i zed effecti vel y a nd ga i nful l y i n the
empl oyee's own i nteres t.
Waiting Time Sec 5 Rul e I Book III, IRR
(a ) Wa iting time spent by a n employee shall be considered as working
ti me i f waiting i s a n i ntegra l pa rt of hi s work or th e empl oyee i s
requi red or enga ged by the empl oyer to wa i t.
(b) An employee who is required to remain on call i n the empl oyer's
premi ses or s o cl ose thereto that he ca nnot use the ti me effecti vel y
a nd gainfully for his own purpos e s ha l l be cons i dered a s wo rki ng
Reasons: Di s courages employer from requiri ng s uch work a nd thus

protect the hea l th a nd wel l -bei ng of the workers . Al s o tends to
remedy unemployment by encouraging empl oyers to empl oy other
workers to do what ca nnot be accomplished during norma l worki ng
hours .
May an employee be compelled to render overtime pay?
GR: No.
EXPNS: ARTICLE 89, LC Emergency Overti me Work
(a ) When the country i s at war or when a ny other national or l oca l
emergency has been decl a red by the Na ti ona l As s embl y or the
Chi ef Executi ve;
(b) When it is necessary to prevent loss of life or property or in case
of i mminent danger to public safety due to an actual or i mpendi ng
emergency i n the locality ca used by s erious a ccidents , fi re, fl ood,
typhoon, earthqua ke, epi demi c, or other di s a s ter or ca l a mi ty;
(c) When there i s urgent work to be performed on ma chi nes ,
i ns tal l a ti ons , or equi pment, i n order to a voi d s eri ous l os s or
da mage to the employer or s ome other ca us e of s i mi l a r na ture;
(d) When the work i s neces s a ry to prevent l os s or da ma ge to
peri s ha bl e goods ; a nd
(e) Where the compl eti on or conti nua ti on of the work s ta rted
before the eighth hour is necessary to prevent serious obs tructi on
or prejudi ce to the bus i nes s or opera ti ons of the empl oyer.
Employees NOT entitled to Overtime Pay
1. Government Empl oyees
2. Ma na geri a l empl oyees
3. Non-a gri cul tura l fi el d pers onnel
4. Members of the family of the employer who a e dependent
upon hi m for s upport
5. Domestic helpers and persons i n the pers ona l s ervi ce of
a nother
6.
Workers who are paid by results, such as piece-rate or task-basis.
Managerial Employees employed by reason of their s pecial training,

expertise or knowledge a nd for posi ti onz requi ri ng the exerci s e of
LABOR LAW REVIEW

di s cretion a nd i ndependent judgment. Va l ue of work ca nnot be
mea s ured i n terms of hours .
Condi ti ons :
1. Pri ma ry duty consists of management of the establishment
i n which they a re employed of a department or subdivisi on
thereof
2. Cus toma ri l y a nd regul a rl y di rect the work of 2 or more
empl oyees .
3. Ha ve the authority to hire or fi re other employees of l ower
ra nk.
Field Personnel employees who regularly perform their duties away
from the pri ncipal place of business or bra nch office of the empl oyer
a nd whose actual hours of work in the fi el d ca nnot be determi ned
wi th rea s ona bl e certa i nty. Ex. Sa l es men, col l ector or credi t
i nves ti ga tors .
May undertime be offset by overtime work?
No. The l aw express l y prohi bi ts offs etti ng of underti me
work a nd overtime work because employees i n this case are
not pa id the extra compensation they shoul d be recei vi ng
for thei r overti me work. Art 88.
Compressed Workweek
Generally observed work week of 6 da ys may be s hortened
to 5 da ys but prolonging the working hours from Monday to
Fri da y without employer being obliged to pay overti mepa y
for work performed in exces s of 8 hours on weekda ys i n
excha nge of pers ona l benefi ts .
Condi ti ons :
1. Empl oyees vol unta ri l y a gree to work more tha n 8
hours a da y but not more tha n the norma l weekl y
hours of work prior to the a doption of the compressed
workweek.
2. No di minution of weekl y or monthl y ta ke home pa y
a nd fri nge benefi ts .
3. Al l s uch work shall be compens a ted under the LC or
a ppl i ca bl e CBA.
4. Appropriate waivers with respect to overtime premium
pa y for work performed in exces s of 8 hours ma y be
devi s ed.
5. Effecti vity of the a rrangement shall be by a greement of
the pa rti es .
Report s ubmitted to DOLE or neares t Regi ona l Offi ce not
l a ter tha n 10 da ys of a dopti on of s cheme.
Meal Periods
Obl i ga ti on of empl oyer to gi ve empl oyee not l es s tha n 60
mi nutes time for regular meals. Not compensable. Empl oyees
ma y l ea ve compa ny premi s es duri ng mea l peri ods .
Coffee Breaks res t peri ods runni ng from 5 to 20 mi nutes a re
i ncl uded. Cons i dered compens a bl e worki ng ti me.
Meal period may be shortened to less than 1 hour:
1. Where work i s non-manual i n na ture or does not i nvol ve
s trenuous phys i ca l exerti on
2. Where the establishment regularly operates not l es s tha n
16 hours a da y
3. In ca s es of actual or i mpendi ng emergenci es or there i s
urgent work to be performed on machineries, equipment or
4.
i ns tallations to avoid s erious loss which the employer would

otherwi s e s uffer
Where work i s neces s a ry to prevent s eri ous l os s of
peri s ha bl e goods .
Night Shift Differential

It i s that additional compensation of not less than 10% of an
empl oyees regul a r wa ge for every hour worked done
between 10:00pm to 6:00a m, whether or not such period is
pa rt of the workers regul a r s hi ft. (Art.86)
Employees NOT entitled to night shift differential
1. Government and any of its political s ubdivisi ons i ncl udi ng
GOCCs
2. Thos e of reta i l a nd s ervi ce es ta bl i s hments regul a rl y
empl oyi ng not more than 5 workers
3. Domestic hel pers a nd thos e i n the pers ona l s ervi ce of
a nother
5. Fi eld pers onnel a nd other empl oyees whos e ti me a nd
performance a re unsupervised by employer (contract basis,
purel y commission basis, paid fixed a mount for performi ng
work i rrespective of ti me cons umed i n the performa nce
thereof).
Retail or Service Establishment
Reta il one open to the genera l cons umi ng publ i c for the s a l e of
goods tha t a re commonl y bought by end -us ers for pers ona l or
hous ehol d us e.
Servi ce predominantly i n the sale of service to indivi dua l s for thei r
own or hous ehol d us e.
Rest Day
It i s a rest period of not less tha n 24 hours a fter every s i x
cons ecutive normal work days. Obliga ti on of empl oyer to
provi de a nd s chedul e.
Employee may be required to work on his rest day:
Art 92 LC, Sec 6 Rul e III Book III, IRR
(a ) In case of actual or i mpending emergencies ca us ed by s eri ous
a cci dent, fi re, fl ood, typhoon, ea rthqua ke, epi demi c or other
di s aster or ca lamity, to prevent l oss of l ife or property, or i n ca s es
of force ma jeure or i mmi nent da nger to publ i c s a fety;
(b) In ca s e of urgent work to be performed on ma chi neri es ,
equipment or installations to a void serious l oss which the employer
woul d otherwi s e s uffer;
(c) In the event of a bnorma l pres s ure of work due to s peci a l
ci rcums tances, where the employer ca nnot ordinarily be expected
to res ort to other mea s ures ;
(d) To prevent s eri ous l os s of peri s ha bl e goods ;
(e) Where the nature of the work i s such that the employees ha ve
to work conti nuously for seven (7) days in a week or more, as in the
ca s e of the crew members of a vessel to complete a voya ge a nd i n
other s i mi l a r ca s es ; a nd
(f) When the work is necess a ry to a va i l of fa vora bl e wea ther or
envi ronmental conditions where performance or quality of work i s
dependent thereon.
Additional Compensation if required to work on Rest day
Rest day: Regul a r wa ge for the da y + 30% thereof
Rest day & Special Non-Working Holiday: RW for the da y + 50%
thereof
10
LABOR LAW REVIEW

Rest day& Regular Holiday: 200% of RW for the da y + 30% thereof
Regular Holidays
Thes e hol i da ys a re compens a bl e whether worked or
unworked. (RA 9492)
New Yea rs Da y Ja nua ry 1
Ma undy Thurs da y Mova bl e Da te
Good Fri da y Mova bl e Da te
Eidul Fitr Mova bl e Da te
Araw ng Kagitingan Monda y nea res t Apri l 9
La bor Da y Monda y nea res t Ma y 1
Independence Da y Monda y nea res t June 12
Na ti ona l Heroes Da y La s t Sunda y of Augus t
Boni fa ci o Da y Monda y nea res t November 30
Chri s tma s Da y December 25
Ri za l Da y Monda y nea res t December 30
Special Holidays
Al l Sa i nts Da y November 1
La s t Da y of the Yea r December 31
Ni noy Aqui no Da y Augus t 21 (R.A. 9256)
Employees not entitled to Holiday Pay
GOCCs
2. Thos e of reta i l a nd s ervi ce es ta bl i s hments regul a rl y
empl oyi ng less than 10 workers
a nother
thereof).
1. What are the effects of absences on holiday pay?
a . If a n empl oyee i s on l ea ve of a bs ence wi th pa y, he i s
enti tl ed to hol i da y pa y.
b. If a n employee is on leave of a bs ence wi thout pa y on the
da y i mmediately preceding the regul a r hol i da y, he i s not
enti tl ed to hol i da y pa y.
c. If the da y i mmedi a tel y precedi ng the hol i da y i s a non worki ng day or the scheduled rest day of an employee, he is
not cons idered to be on lea ve of a bs ence on tha t da y, i n
whi ch ca s e he s ha l l be enti tl ed to hol i da y pa y i f the
empl oyee s hould work on the day i mmedi a tel y precedi ng
the non-worki ng da y or res t da y.
Service Incentive Leave
The La bor Code provides a five -day servi ce incenti ve l ea ve
wi th pay for employees who ha ve rendered a t l ea s t one
yea r of s ervi ce, continuous or broken. The SIL may be us ed
a s va cation or sick leave. If unused a t the end of the yea r,
thi s benefi t i s converti bl e to i ts ca s h equi va l ent.
A gra nt of va cation a nd s ick l eave may be considered as the
s ubs ti tute for SIL.
Ca us e of action to recover SIL accrues from the moment the
empl oyer refuses to remunerate its moneta ry equi va l ent.
Ava i lable to employees who ha ve rendered a t l ea s t one
yea r of s ervi ce.
Employees not entitled to SIL

GOCCs
2. Thos e employed in establishments regularly employing less
than 10 workers
a nother
thereof).
6. Thos e who a re a l rea dy enjoyi ng the benefi t provi ded
7. Thos e enjoyi ng vacation leave wi th pa y of a t l ea s t 5 da ys
When workers engaged on task or contract basis or paid purely on
commission, entitled to SIL, if performance is supervised by
employer and not considered field personnel.
For purposes of SIL entitlement at least one year of service means
Servi ce within 12 months, continuous or broken , reckoned
from the da te the empl oyee s ta rted worki ng, i ncl udi ng
a uthorized absences a nd paid regular holidays , unl es s the
worki ng days i n the establishment as a ma tter of practice or
pol i cy or tha t provi ded i n the contra ct i s l es s tha n 12
months, i n which case said period shall be cons i dered one
yea r.
Vacation and Sick Leave Benefits cumulative and commutative
Unl ess otherwise stipulated, l eaves mus t be cl a i med a nd
enjoyed by the empl oyee wi thi n the yea r; otherwi s e
cons i dered wa i ved a nd forfei ted.
Genera l l y not converti bl e to ca s h.
Nature of Sick Leave, Maternity Leave and Vacation Leave Benefits
Replacements for regular i ncome which otherwise would be
ea rned because a n empl oyee i s not worki ng duri ng the
peri od of said l ea ves . Ma y be gi ven i n conjuncti on w i th
other benefi ts .
Paternity Leave
Refers to benefits gra nting married male employees 7 da ys
l eave with full pay on the condi ti on tha t hi s s pous e ha s
del ivered a child or s uffered mi s ca rri a ge for purpos es of
ena bling him to effectively l end support to hi s wi fe i n her
peri od of recovery a nd/or i n the nursing of the newl y-born
chi l d. If paternity l eave is not a vailed of, i t is not convertible
to ca s h. Pa ternity l eave may be a vailed of for each del i very
for the fi rs t 4 del i veri es of hi s l egi ti ma te wi fe.
Ma y be a va iled of within 60 da ys from the del i very of the
wi fe.
Parental Leave
Republic Act No. 8972 (An Act Provi di ng for Benefi ts a nd
Pri vi l eges to Solo Pa rents and Their Children, Appropriati ng
Funds Therefor a nd for Other Purposes), otherwis e known
a s The Solo Pa rents Wel fa re Act of 2000, a pproved on
November 7, 2000 gra nts parental l eave of not more tha n
s even (7) da ys every yea r to a ny empl oyee who ha s
rendered s ervice of at l east one (1) year. (Sec. 8, R.A. 8972)
11
LABOR LAW REVIEW

-
Needs Sol o Pa rents ID Ca rd. If s a me i s provi ded by

empl oyer, considered pa renta l l ea ve. Not converti bl e to
ca s h.
Note: Pi ece rate workers entitled to Night Shift Differenti a l , Hol i da y

Pa y, SIL a nd 13th month pay benefits. Not one of thos e prohi bi ted.
Entitlement of employees to Service Charge
Di s tributed as follows: 85% for a ll empl oyees & 15% di s pos i ti on of
ma nagement to answer for l osses or breakages a nd di s tri buti on to
ma na geri a l empl oyees a t the di s creti on of ma na egement.
If a bolished shall be deemed i ntegra ted to the wa ges of
empl oyees . Forms pa rt of ba ckwa ges of empl oyees .
Service Charge col l ected by ma na gement from cus tomers
TIPS vol untary payments made by the customers to the employees
for excel l ent s ervi ce.
CHAPTER VI WAGES
Wage
a . i t i s the remuneration or earnings, however designated, for work
done or to be done or for s ervi ces rendered or to be rendered;
b. i t i s ca pable of being expressed i n terms of money, whether fixed
or a s certained on a time, task, piece, or commiss i on ba s i s , or other
method of ca l cul a ti ng the s a me;
c. i t i s payable by a n employer to a n employee under a wri tten or
unwri tten contract of employment for work done or to be done, or
for s ervi ces rendered or to be rendered; a nd
d. i t i ncludes the fair and reasonable value, as determi ned by the
Secreta ry of La bor a nd Empl oyment, of boa rd, l odgi ng, or other
fa ci lities customarily furni s hed by the empl oyer to the empl oyee.
Fair and reasonable value s ha l l not i ncl ude a ny profi t to the
empl oyer, or to a ny pers on a ffi l i a ted wi th the empl oyer.
Salary
-
Recompense or cons i dera ti on ma de to a pers on for hi s

pa i ns or i ndus try i n a nother ma ns bus i nes s .
Ma y be a greed upon but mus t not be bel ow mi ni mum
wa ge.
Basic Salary
Ra e of pa y for a s ta nda rd work peri od excus i ve of s uch
a ddi ti ona l pa yment a s bonus es a nd overti me.
Gratuity pay gi ven to a benefi ci a ry for the pa s t s ervi ce or fa vor
gi ven purel y out of the generos i ty of the gi ver.
Salary pa yment for a ctua l work rendered.
A fair days wage for a fair days labor
Unl ess s pecifically required by law, contract or establ i s hed
pol icy, the employer is not bound to pay wages to a worker
who ha s nt actually rendered a ny s ervice. Absent or only for
a porti on of the da y.
However, if employee is a ble, willing a nd ready to work but
wa s illegally l ocked out, s uspended or dismissed or illega l l y
prevented from worki ng, empl oyer l i a bl e to pa y.
Purpose of Fixing Minimum Wage
Benefits wage earners by provi ding a rock bottom wa ge to

be pa id to them by employers. Protection a gainst swet shop
opera tors .
Protecti on to the employers who without l egal compuls i on
pa ys a decent wage to his workers a gainst the competi ti on
of the employer who pays his workers i na dequa te wa ges
a nd thus operates a t a l ower cos t or s el l hi s products a t
l ower pri ce.
Regional Tripartite Wages and Productivity Board

Ha s power to fi x mi ni mum wa ge ra tes i n thei r regi on,
provi nces or i ndustries therein a nd to i s s ue wa ge orders
s ubject to the guidelines issued by the Na tional Wages a nd
Producti vi ty Commi s s i on.
Ma y i s sue wa ge orders orderi ng the pa yment of wa ges
a bove the mi ni mum. REA 6727 a l l owed the Boa rd to be
crea ti ve i n res ol vi ng wa ge di s torti ons .
If wa ge order without prior public hearing a nd consultations
a nd not publ i s hed, order nul l a nd voi d.
Employers exempt from minimum wage law
A dul y regi s tered Ba ra nga y Mi cro Bus i nes s Enterpri s e
(BMBE). Tota l assets s hall not be more tha n 3 mi l l i on. RA
9178)
Agricultural Employees 2 aspects
Agri cul tura l workers ha ve di fferent mi ni mum wa ge, s o
cl a s s i fi ca ti on i mporta nt.
Pri ma ry purel y a gri cul tura l
Secondary pra ctices performed by a farmer on a farm as a n incident
to or i n conjuncti on wi th the fa rmi ng opera ti ons .
Fixed Salary above minimum wage cannot be decreased even if
decrease does not go below the minimum wage thi s would res ukt
to di mi nuti on of a benefi t tha t empl oyer ha s vol unta ri l y gi ven.
Empl oyers a re prohibited from eliminating or diminishing benefi ts of
s uppl ements bei ng enjoyed by hi s empl oyee. (Art 100)
Facilities
Facilities s hall i nclude a rticles or s ervices for the benefi t
of the employee or his family but shall not i nclude tool s of
the tra de or a rticles or s ervices primarily for the benefi t of
the employer or necessary to the conduct of the employers
bus i nes s .
Va l ue Secretary of Labor from time to time fixes fa i r a nd
rea s onable va lue of boa rd, l odgi ng, a nd o ther fa ci l i ti es
cus tomarily furnished by a n empl oyer to hi s empl oyees
both i n a gri cul tura l a nd non -a gri cul tura l enterpri s e.
Requirements:
a . Mus t be cus toma ri l y furni s hed by the tra de
b. Empl oyee vol unta ri l y a ccepts i n wri ti ng
c. Va l ue i s fa i r a nd rea s ona bl e
Examples: Mea l s, housing, fuel i ncluding electricity, wa ter gas for the
non-commercial use of employee; tra ns porta ti on; s chool ; medi ca l
a nd denta l s ervi ce
Not facilities: emergency denta l a nd medi ca l ; cos t/ renta l a nd/or
l a undry of uniform; shares of capital s tock, pa i d va ca ti on, s i ck a nd
ma ternity leaves, tools of tra de or a rticles or s ervices primarily for the
benefi t of the empl oyer
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LABOR LAW REVIEW

Supplements
Supplements mea ns extra remunera ti on or s peci a l
pri vi leges or benefits given to or recei ved by the l a borers
over a nd a bove thei r ordi na ry ea rni ngs or wa ges .
Supplements
Remuneration or s pecial benefits
gi ven to empl oyee
Not pa rt of wa ge, thus cannot be

deducted.
Facilities
Items of neces s a ry expens e
necessary for the l a borers a nd
hi s fa mi l ys exi s tence a nd
s ubs i s tence.
Pa rt of wa ges a nd a re thus
deductible therefrom if they a re
not furni s hed.
Gra nted for the conveni ence of

the empl oyer.
Once gi ven ca nnot be eliminated
or di mi ni s hed
Bonus
-
Bonus i s a n a mount gra nted a nd pa i d ex gratia to the

empl oyee for his industry or l oya l ty whi ch contri buted to
the s uccess of the employers business and made pos s i bl e
the rea l i za ti on of profi ts .
Hence, generally not demandable or enforceable. If there is
no profi t, there may be no bonus. If profit is reduced, bonus
s hould likewise be reduced, a bsent any a greement ma ki ng
s uch bonus part of the compens a ti on of the empl oyees .
However, may become pa rt of regul a r compens a ti on by
rea s on of i ts l ong a nd regul a r conces s i on.
Amount of Bonus may be reduced - If gra nt is entirely dependent on

profi ts . Ma y not be gi ven i f not empl oyer ca nnot a fford.
Pa rt of wa ge GR: Gratuity or a ct of liberality which recipient has no
ri ght to demand. XPN: Pa rt of wa ge i f empl oyer promi s ed wi thout
condi ti ons for gra nt.
Emergency Cost of Living Allowance (ECOLA) now forms pa rt of
regul a r wa ge under EO 178.
13th Month Pay
PD 851 requi res an employer to pay its employees receiving
ba s i c s a l a ry of not more tha n P1000, rega rdl es s of the
na ture of the employment, a 13th month pay not l ater tha n
December 24, every yea r, provided they ha ve worked for a t
l ea s t one month duri ng the ca l enda r yea r. Thirteenthmonth pay s ha l l mea n one -twel fth (1/12) of the basic
salary of a n empl oyee wi thi n a ca l enda r yea r.
The basic salary of a n empl oyee for the purpos e of
computi ng the 13th-month pa y s ha l l i ncl ude a l l
remunera ti ons or ea rni ngs pa i d by the empl oyer for
s ervi ces rendered but does not i ncl ude a l l owa nces a nd
monetary benefits which are not considered or i ntegra ted
a s pa rt of the regul a r or ba s i c s a l a ry, s u ch a s the ca s h
equi va l ent of unus ed va ca ti on a nd s i ck l ea ve credi ts ,
overti me, premium, night differential a nd holi da y pa y a nd
cos t-of-l i vi ng a l l owa nces . However, these salary-related
benefits should be included as part of the basic salary in the
computation of the 13th-month pay if by individual or
collective agreement, company practice or policy, the same
are treated as part of the basic salary of the employees.
To be pa i d onl y to ra nk a nd fi l e empl oyees .

Empl oyers paying their employees a 13 th month pa y or i ts
equi va l ent a re not covered by PD851.
Rule on Voluntary Grants

Wha tever the employer has granted to hi s empl oyees a s
benefits and enjoyed by the latter for a considerable period
of ti me, ca nnot be unilaterally withdrawn by the empl oyer.
(Art. 100) They become part of the terms and conditions of
empl oyment a nd ma y onl y be wi thdra wn mutua l l y.
Monthly-paid one pa id everyday of the month a l though he does
not regularly work on his rest day or Sundays and/or regular holida ys
a nd s peci a l hol i da ys
Daily-paid pa i d on da ys he a ctua l l y worked.
Wages of an employee paid by results
Should receive not l es s tha n the a ppl i ca bl e wa ge ra tes
provi ded for 8hours work a da y.
Mus t be ba s ed on s peci fi c wa ge ra tes provi ded by the
Secreta ry of l a bor.
Piece Work
The s tress is placed on the unit of
work produced, or the qua nti ty
thereof; a uni form a mount i s
pa i d per uni t a ccompl i s hed.
Task Work
Empha si s i s on the ta s k i ts el f;
pa yment i s not reckoned i n
terms of the unit produced, but
i n terms of compl eti on of the
work.
Contracting and Subcontracting

- refers to a rra ngement whereby a n empl oyer known a s the
pri nci pa l a grees to putour or fa rm out wi th a contra ctor or
s ubcontractor the performance or completion of a s pecific job, work,
s ervi ce within a defi ni te or prede termi ned peri od, rega rdl es s of
whether s uch job, work or s ervice is to be performed or compl eted
wi thi n or outs i de the premi s es of the pri nci pa l .
Labor-Only and Job Contractors
Job Contracting
- provi des s ervi ces
- Ha s s ubs ta nti a l ca pi ta l or i nves tment i n the form of tool s ,
equipment, machineri es , work premi s es , a mong others , a nd the
workers recruited and placed perform activities directly related to the
pri nci pa l bus i nes s of the empl oyer.
Job Contra cting Arti cl e 106 Contra ctor/s ubcontra ctor
a nd principal s hall be jointly a nd severally liable for unpa i d
wa ges .
Deemed i ndi rect empl oyer
No E-E rel a ti ons hi p between empl oyee a nd pri nci pa l .
Tri l ateral relations hi p contra ctor, pri nci pa l , empl oyee
Labor Only Contracting
- provi des ma npower
- Prohi bited because gives rise to confus i on a s to who a re the rea l
empl oyers of the empl oyees . Depri ves workers from bei ng
regul a ri zed a nd to a cqui re s ecuri ty of tenure.
Presumption of Labor-Only Contracting
- There i s pres umpti on tha t i t i s l a bor-contra cti ng i f i t does not
overcome the burden of provi ng i t ha s s ubs ta nti a l ca pi ta k,
i nves tment, tool s a nd the l i ke.
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LABOR LAW REVIEW

Labor Only
Prohi bi ted
Contra ctor does not ha ve
s ubstantial ca pital or investment
Empl oyees employed by principal
Job
Lega l l y recogni zed
Contra ctor has substantial capital
a nd i nves tment i n the form of
equipment, ma chi nery nd work
premi s es
Empl oyee a re i ts own.
Joint and several liability in job contracting

Not dependent on insolvency or unwillingness to pay. This is
to ens ure a mpl e protecti on to l a bor.
Stipulations of non-existence of E-E relationship and relief liability
clauses va l i d i f employee hired not s ubject to pri nci pa l s control .
Rights of contractual employees
a . Sa fe a nd hea l thful worki ng condi ti ons
b. La bor s ta nda rds
c. Soci a l s ecuri ty a nd wel fa re benefi ts
d. Sel f-orga ni za ti on, col l ecti ve ba rga i ni ng a nd
pea ceful concerted a cti on; a nd
e. Securi ty of tenure
Termination of Contractual Employee
Pri or to expi ra ti on of contra ct governed by termi na ti on of
empl oyment l a ws .
Expi ra ti on of Contra ct no pa yment of s epa ra ti on pa y.
Workers preference for unpa i d wa ges under Art 110
Huma n beings must be treated a bove chattel, machineries ,
etc.
Condi ti on: a decl a ra ti on of ba nkruptcy or a judi ci a l
l i quidation must be present before the workers preference
under Art 110 of the LC ma y be enforced. Empl oyees ha ve
preferenti a l ri ght of credi t.
Does not crea te a l i en.
Onl y i n cases of bankruptcy or judi ci a l l i qui da ti on of the
empl oyer.
Form of wages
- Under the Labor Code and i ts i mplementing rules, as a general rul e,
wa ges shall be paid i n legal tender a nd the use of tokens, promiss ory
notes, vouchers, coupons or a ny other form alleged to represent legal
tender is prohibited even when expressly requested by the employee.
(Art. 102)
Goods as payment
- Empl oyer cannot be compelled by i ts empl oyees to pa y wa ges i n
goods. It ha s ri ght to di s cha rge wa ges i n forms a l l owed by l a w.
Empl oyees freedom to dispose of his wages shoul d not be l i mi ted.
Empl oyer ca nnot compel or obl i ge hi s empl oyees to purcha s e
mercha ndise, commodi ti es or other property from the empl oyer.
(Art112)
Payments by checks, postal checks, money order
1. Ba nk facility within a ra dius of 1 ki l ometer from bus i nes s
2. Empl oyer recei ves no pecuni a ry benefi t from the
a rra ngement
3. Empl oyees gi ven rea s ona bl e ti me to wi thdra w duri ng
ba nki ng hours
4. Wi th wri tten consent of empl oyees concerned i f no CBA

- empl oyer s houl d ha ve a t l ea s t 25 empl oyees .
How often paid
GR: a t l east once every two (2) weeks or twice a month a t
i ntervals not exceeding sixteen (16) days. No employer shall
ma ke payment with l ess frequency than once a month. The
exception to above rule i s when payment cannot be ma de
wi th s uch regularity due to force majeure or ci rcumsta nces
beyond the employers control, i n which case, the employer
s ha ll pay the wa ges immediately a fter such force majeure or
ci rcums ta nces ha ve cea s ed (Art. 103).
Where paid
GR, the pl ace of payment s hall be a t or nea r the pl a ce of
underta ki ng.
The excepti ons to thi s rul e a re:
a . When payment ca nnot be effected a t or nea r the pl a ce of
work by rea son of the deterioration of peace and order conditions, or
by rea s on of a ctual or impending emergencies caused by fi re, fl ood,
epi demic or other ca lamity rendering payment therea t i mpos s i bl e;
b. When the empl oyer provi des free tra ns porta ti on to the
empl oyees ba ck a nd forth; a nd
c. Under a ny other a nalogous circumstances, provi ded tha t the
ti me s pent by the empl oyees i n col l ecti ng thei r wa ges s ha l l be
cons idered as compensable hours worked. (Sec. 4 (a) Rule VIII Book
III, Rules to Implement the Labor Code)
Pa yment of wages i n bars, massage clinics or ni ghtcl ubs i s
prohi bi ted except i n the ca s e of empl oyees thereof.
Pa yment through banks a re allowed i n businesses a nd other
enti ti es wi th twenty fi ve (25) or more empl oyees a nd
l oca ted within one (1) kilometer ra di us to a commerci a l ,
s a vi ngs or rural bank. Written permission of the majori ty of
the empl oyees i s a l s o a requi rement.
Payment to be made to:
GR: di rectly to the employee entitled thereto and to nobody
el s e. (Art. 105)
The excepti ons to thi s rul e a re:
a . Where the employer is a uthorized i n writing by the empl oyee
to pa y hi s wa ges to a member of hi s fa mi l y;
b. Where pa yment to a nother pers on of a ny pa rt of the
empl oyees wages i s authorized by existing l aw, i ncludi ng pa yments
for the i nsurance premiums of the employee a nd union dues where
the ri ght to check-off ha s been recogni zed by the empl oyer i n
a ccordance with a collective agreement or a uthori zed i n wri ti ng by
the i ndi vi dua l empl oyees concerned; or
c. In ca se of death of the employee, in which ca se, the same shall
be pa i d to hi s hei rs without necessity of intestate proceedings.
Payrolls and time records
Documents to be kept a nd maintained for three years from
da te of last entry by the employer i n connecti on wi th the
pa yment of wa ges
Claims for unpaid wages may be adjudicated by the DOLE regional
director provi ded summary proceeding a nd amount of wages to be
recovered does not exceed P5,000 for ea ch worker a nd no cl a i m for
rei ns ta tement.
Wage Distortion
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-
A s i tuation where a n i ncrea s e i ng the pres cri bed ra tes

res ul ts i n the el i mi na ti on or s evere contra cti on of
i ntentional quantitative differences in wa ge or s al a ry ra tes
between a nd a mong employee groups in an establis hment
a s to effectively obliterate the di s ti ncti ons embodi ed i n
s uch wage structure based on s ki l l s , l ength of s ervi ce, or
other l ogi ca l ba s es of di fferenti a ti on.
El i mi na ti on of wa ge ra te di fferenti a l enough to s how
exi s tence of wa ge di s torti on.
Correction of Wage Distortions

Correcti on does not require return of the same di fferen ce.
Empl oyer a nd Uni on wi l l negoti a te. If there i s di s pute,
res ol ved by a gri eva nce procedure under the CBA. If
unres ol ved, vol unta ry a rbi tra ti on.
Burden of proving payment of monetary claims of employees rests
with Employer - a l l documents a re wi th hi m
CHAPTER VII Working Women and Minors

WOMEN
Rules governing nightwork of women employees
Arti cl e 130, LC
Art. 130. Nightwork prohibition. No woma n, regardless of age, s ha l l
be empl oyed or permi tted or s uffered to work, wi th or wi thout
compens a ti on:
a . In a ny i ndustrial undertaking or branch thereof between ten
ocl ock a t ni ght a nd s i x ocl ock i n the morni ng of the
fol l owi ng da y; or
b. In a ny commercial or non-industrial undertaking or bra nch
thereof, other than a gricultural, between midnight a nd s i x
ocl ock i n the morni ng of the fol l owi ng da y; or
c. In a ny a gricultural undertaking a t nightti me unl es s s he i s
gi ven a period of rest of not less than nine (9) cons ecuti ve
hours .
Exceptions:
Sec 5 Rul e XI, Book III
Facilities Employers may be required to provide
Arti cl e 132, LC
Art. 132. Facilities for women. The Secreta ry of La bor a nd
Empl oyment s hall establish s tandards that will ensure the s afety a nd
hea lth of women empl oyees . In a ppropri a te ca s es , he s ha l l , by
regul a ti ons , requi re a ny empl oyer to:
a . Provi de s eats proper for women a nd permit them to use s uch
s eats when they a re free from work a nd during working hours,
provi ded they ca n perform their duties in this position without
detri ment to effi ci ency;
b. To es tablish s eparate toilet rooms and lavatories for men a nd
women and provi de a t l ea s t a dres s i ng room for women;
c. To es tablish a nursery i n a workpl a ce for the benefi t of the
women empl oyees therei n; a nd
d. To determine appropriate minimum a ge a nd other sta nda rds
for reti rement or termination in special occupa ti ons s uch a s
thos e of fl i ght a ttenda nts a nd the l i ke.
Q: Are empl oyers requi red to gi ve ma terni ty l ea ve benefi ts to
empl oyees ?
A: No. Ma terni ty l ea ve benefi ts a re to be pa i d to the SSS. The

empl oyers a re obliged to contribute to SSS. However, i f by vol unta ry
pra cti ce or policy, the empl oyer ma y bi nd i ts el f to gi ve ma terni ty
l ea ve benefi ts i n a ddi ti on to tha t provi ded by the SSS.
Population Control
Art. 134. Family planning services; incentives for family planning.
a . Es ta blishments which a re requi red by l a w to ma i nta i n a
cl i nic or infirmary s hall provide free family planning s ervices
to thei r employees which shall include, but not be l i mi ted
to, the a ppl i ca ti on or us e of contra cepti ve pi l l s a nd
i ntra uteri ne devi ces ;
b. In coordina ti on wi th other a genci es of the gove rnment
enga ged i n the promoti on of fa mi l y pl a nni ng, the
Department of La bor a nd Employment s ha l l devel op a nd
pres cribe i ncentive bonus s chemes to encoura ge fa mi l y
pl a nning a mong female workers i n a ny es ta bl i s hment or
enterpri s e.
Acts of employer discriminatory against women employees.
Art. 135. Discrimination prohibited. It s ha l l be unl a wful for a ny
empl oyer to discriminate against a ny woman employee with res pect
to terms a nd conditions of employment solely on account of her s ex.
The fol l owi ng a re a cts of di s cri mi na ti on:
a . Pa yment of a l esser compensation, including wage, salary or
other form of remuneration a nd fringe benefits, to a female
empl oyees as a gainst a male employee, for work of equa l
va l ue;
a nd
b.
Fa vori ng a male employee over a fema l e empl oyee w i th

res pect to promotion, tra i ni ng opportuni ti es , s tudy a nd
s chol a rs hi p gra nts s ol el y on a ccount of thei r s exes .
Cri mi nal liability for the willful commi s s i on of a ny unl a wful a ct a s
provi ded in this Article or a ny vi olation of the rules a nd regul a ti ons
i s sued pursuant to Section 2 hereof shall be penalized as provi ded i n
Arti cl es 288 a nd 289 of thi s Code: Provi ded, Tha t the i ns ti tuti on of
a ny cri mi nal a ction under this provision s hal l not ba r the a ggri eved
empl oyee from filing a n enti rel y s epa ra te a nd di s ti nct a cti on for
money cl aims, whi ch ma y i ncl ude cl a i ms for da ma ges a nd other
a ffi rmative reli efs . The a cti ons hereby a uthori zed s ha l l proceed
i ndependently of each other. (As amended by Republi c Act No. 6725,
Ma y 12, 1989)
Stipulation Against Marriage
Art. 136. Stipulation against marriage. It s ha l l be unl a wful for a n
empl oyer to require as a condition of employment or continuation of
empl oyment that a woman empl oyee s ha l l not get ma rri ed, or to
s ti pulate expressly or ta ci tl y tha t upon getti ng ma rri ed, a w oma n
empl oyee s hall be deemed res i gned or s epa ra ted, or to a ctua l l y
di s miss, discharge, discri mi na te or otherwi s e prejudi ce a woma n
empl oyee merel y by rea s on of her ma rri a ge.
Rea s on: to gi ve va l i di ty to s uch underta ki ng wi l l dri ve women
empl oyees to enter relationships wi thout the benefi t of ma rri a ge.
Unmarried women who are pregnant may not be dismissed.
Art. 137. Prohibited acts.
a . It s ha l l be unl a wful for a ny empl oyer:
1. To deny a ny woman employee the benefits provi ded for i n
thi s Chapter or to discharge a ny woman empl oyed by hi m
for the purpose of preventing her from enjoying a ny of the
benefi ts provi ded under thi s Code.
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2.
3.
To di s charge such woman on a ccount of her pregna ncy, or

whi le on leave or i n confi nement due to her pregna ncy;
To di s charge or refuse the a dmission of such woma n upon
returni ng to her work for fea r tha t s he ma y a ga i n be
pregna nt.
+ If di smissal of women a ccordi ng to s chool pol i cy not beca us e of

there s ex, di s mi s s a l ma y be va l i d.
Ex. Al l -gi rl s s chool protecti on of s tudents from unwhol es o me
i nfl uences .
Chua Qua vs. Judge Clave If employee did not us e her pos i ti on to
ta ke a dvantage of her student for them to marry, Not va lid dismissa l .
If the two fell i n love despite the disparity i n thei r a ges a d
a ca demic l evels, this only l ends s ubstance to the truism that
the heart has reasons of i ts own whi ch rea s on does not
know. Yi elding to this gentle and universal emotion is not to
be ca s ually equated with i mmorality. The devi a ti on of the
ci rcums tances of thei r ma rri a ge from the us ua l s oci eta l
pa ttern ca nnot be cons i dered a s a s defi a nce of
contempora ry s oci a l mores .
Duncan Association of Detailmen-PTGWO et al vs. Glaxo Wellcome
Phils. (2004) - Ma rri a ge between an employee and an employee of a
competitor company may be ground of di s mi s s a l . Cons i d ers tra de
s ecrets, confidential programs a nd i nforma ti on from competi tors .
Protecti on of economi c i nteres ts of a bus i nes s i n
Cons ti tuti on.
Classification of certain women workers cons i dered empl oyees
des pi te condi ti ons i n work
Art. 138. Classification of certain women workers. Any woma n who
i s permitted or s uffered to work, with or wi thout compens a ti on, i n
a ny ni ght cl ub, cockta i l l ounge, ma s s a ge cl i ni c, ba r or s i mi l a r
es tablishments under the effecti ve control or s upervi s i on of the
empl oyer for a s ubs ta nti a l peri od of ti me a s determi ned by the
Secreta ry of La bor a nd Empl oyment, s ha l l be cons i dered a s a n
empl oyee of such establishment for purpos es of l a bor a nd s oci a l
l egi s l a ti on.
fa vora ble compensation, terms of conditions, promoti ons ,

or pri vi leges; or the refusal to grant the sexual favor results
i n l imiting, s egregating or classifying the employee which i n
a ny wa y woul d di s cri mi na te, depri ve or di mi ni s h
empl oyment opportunities or otherwi s e a dvers el y a ffect
s a i d empl oyee;
(2) The a bove acts would impair the empl oyee's
ri ghts or pri vi l eges under exi s ti ng l a bor l a ws ; or
(3) The a bove acts would result in a n i ntimidating,
hos ti l e, or offens i ve envi ronment for the empl oyee.
(b) In a n educa ti on or tra i ni ng envi ronment, s exua l
ha ra s s ment i s commi tted:
(1) Aga i nst one who i s under the ca re, cus tody or
s upervi s i on of the offender;
(2) Aga i ns t one whos e educa ti on, tra i ni ng,
a pprenticeship or tutorship i s entrus ted to the offender;
(3) When the s exual favor is made a condi ti on to
the gi vi ng of a passing gra de, or the granting of honors a nd
s cholarships, or the payment of a s ti pend, a l l owa nce or
other benefi ts , pri vi l eges , or cons i dera ti on; or
(4) When the s exua l a dva nces res ul t i n a n
i nti mi da ti ng, hos ti l e or offens i ve envi ronment for the
s tudent, tra i nee or a pprenti ce.
Any pers on who di rects or i nduces a nother to commi t a ny a ct of
s exual harassment a s herei n defi ned, or who coopera tes i n the
commi ssion thereof by a nother wi thout whi ch i t woul d not ha ve
been commi tted, s ha l l a l s o be hel d l i a bl e under thi s Act.
Q: Sexua l Ha ra s s ment a Sexua l Offens e?
A: No. It i s a n offense of dominance. Lewd designs of the offender i s
not requi red.
Sexual Favor
Act done or pri vi l ege gra nted by the offended pa rty by
rea s on of hi s s ex or her s ex.
+ Di s crimination a gainst women empl oyees not vi ol a ti on of Anti Sexua l Ha ra s s ment Act but a vi ol a ti on of Arti cl e 135, LC.
+ Sexua l Ha ra s s ment ma y be a ground for s us pens i on .
Battered women employees are entitled to leave benefits

Sec. 43, RA 9262 vi cti ms under the law a re entitled to paid l ea ve of
a bs ence of up to 10 da ys in addition to other paid l eaves, extendi bl e
when the neces s i ty a ri s es a s s peci fi ed i n the protecti on order.
Sexual Harrassment RA 7877 Sexual Harassment Act of 1995
Acts Constituting Sexual Harassment
Section 3. Work, Educa tion or Training-Related, Sexua l Ha ra s s ment
Defi ned. - Work, education or tra ining-related sexual hara s s ment i s
commi tted by a n employer, employee, manager, s upervisor, agent of
the employer, teacher, i nstructor, profes s or, coa ch, tra i nor, or a ny
other person who, having authority, i nfluence or moral a s cenda ncy
over a nother i n a work or tra i ni ng or educa ti on envi ronment,
dema nds, requests or otherwise requires any s exua l fa vor from the
other, regardless of whether the demand, request or requirement for
s ubmi s s i on i s a ccepted by the object of s a i d a ct.
(a ) In a work-related or employment envi ronment, s exua l
ha ra s s ment i s commi tted when:
(1) The s exual favor i s made as a condition i n the
hi ri ng or in the employment, re-employment or conti nued
empl oyment of said individual, or i n granting said individual
Duties of the employer relative to the prevention or deterrence of

the commission of acts of sexual harassment
Sec. 4, RA 7877
Q: Ma y a n empl oyee be preventi vel y s us pended for s exua l
ha ra ssment ca ses pursuant to rules a nd regulations of the empl oyer
whi ch ha ve not been publ i s hed?
A: No. RA 7877 requi res the publ i ca ti on of a dmi n rul es a nd
regul a ti ons for thei r effecti vi ty.
Liabilities of an employer for sexual harassment (RA 7877)
Section 5. Li a bility of the Employer, Hea d of Offi ce, Educa ti ona l or
Tra i ning Institution. - The employer or head of office, educa ti ona l or
tra i ning institution shall be solidarily liable for damages a ri s i ng from
the a cts of s exua l ha ra s s ment commi tte d i n the empl oyment,
education or training environment i f the employer or head of offi ce,
educational or tra ining instituti on i s i nformed of s uch a cts by the
offended pa rty a nd no i mmedi a te a cti on i s ta ken.
Section 6. Independent Acti on for Da ma ges . - Nothi ng i n thi s Act
s ha ll preclude the vi ctim of work, education or training-related sexual
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ha ra ssment from instituting a separate and i ndependent a cti on for
da ma ges a nd other a ffi rma ti ve rel i ef.
Section 7. Pena lties. - Any person who vi olates the provisions of thi s
Act s hall, upon convi ction, be penalized by i mprisonment of not l es s
tha n one (1) month nor more than six (6) months, or a fine of not l ess
tha n Ten thousand pesos (P10,000) nor more than Twenty thousa nd
pes os (P20,000), or both s uch fi ne a nd i mpri s onment a t the
di s creti on of the court.
Any a cti on arising from the vi olation of the provisions of this Act shall
pres cri be i n three (3) yea rs .
+ Secretary of La bor and Employment has the a uthori ty to a pprove
pol icies fixing minimum a ge a nd other s ta nda rds for reti rement or
termi nation in special occupations s uch as those of flight a ttenda nts
a nd the l i ke.
CHILDREN
Condi ti ons for the empl oyment
Section 12. Employment of Children. Chi l dren bel ow fi fteen (15)
yea rs of a ge ma y be empl oyed except:
(1) When a child works directly under the sole respons i bi l i ty of
hi s pa rents or l ega l gua rdi a n a nd where onl y members of the
empl oyer's fa mi l y a re empl oyed: Provi ded, however, Tha t hi s
empl oyment neither endangers his life, safety and health and morals,
nor i mpairs hi s norma l devel opment: Provi ded, further, Tha t the
pa rent or legal guardian s hall provide the sai d mi nor chi l d wi th the
pres cri bed pri ma ry a nd/or s econda ry educa ti on; or
(2) When a chi l d's empl oyment or pa rti ci pa ti on i n publ i c &
entertainment or i nforma ti on through ci nema , thea ter, ra di o or
tel evision is essential: Provi ded, The employment contract concluded
by the chi ld's parent or guardian, with the express a greement of the
chi l d concerned, i f possible, a nd the a pproval of the Depa rtment of
La bor a nd Employment: Provided, That the following requirements in
a l l i ns ta nces a re s tri ctl y compl i ed wi th:
(a ) The employer s hall ensure the protection, health, safety a nd
mora l s of the chi l d;
(b) the employer shall institute measures to prevent the chi l d's
expl oitation or discrimination ta ki ng i nto a ccount the s ys tem a nd
l evel of remuneration, and the duration and arrangement of worki ng
ti me; a nd;
(c) The employer s hall formulate and implement, s ubject to the
a pproval and supervis i on of competent a uthori ti es , a conti nui ng
progra m for tra i ni ng a nd s ki l l a cqui s i ti on of the chi l d.
In the a bove exceptional ca s es where a ny s uch chi l d ma y be
empl oyed, the employer shall first secure, before engaging such child,
a work permit from the Department of La bor a nd Employment whi ch
s ha l l ens ure obs erva nce of the a bove requi rement.
The Department of La bor Employment s ha l l promul ga te rul es
a nd regulations necessary for the effective i mpl ementa ti on of thi s
Secti on.
Condi tions for the employment of children below 15 yea rs old und er
RA 7658
1. When a chi l d works di rectl y under the s ol e
res ponsibility of his parents or l egal guardian a nd
where only members of the employers family are
empl oyed.
Hours of Work of a working child
1. Chi l d bel ow 15 20 hours / week; not a l l owed to work
between 8 pm to 6 a m
2.
Chi l d 15, below 18 8 hours /da y,ma x40 hours /week; not
a l l owed to work between 10 pm to 6 a m.
CHAPTER VIII HOUSEHELPERS AND

HOMEWORKERS
Domestic or Household Service
Servi ce in the employers home which is usual l y neces s a ry
or des irable for the maintena nce a nd enjoyment thereof
a nd i ncl udes mi ni s teri ng to the pers ona l comfort a nd
convenience of the members of the employers househol d,
i ncl udi ng s ervi ces of fa mi l y dri vers . (Art.141)
Maximum period of contract of domestic service 2 yea rs (A142),
ma y be renewed.
+ Househelpers should not be a llowed or suffered to work for more
tha n 10 hours a da y (A1695, Ci vi l Code)
Mi ni mum Wa ge for Hous ehel pers (Art. 143, LC RA 7655)
Art. 143. Minimum wage.
a . Hous ehelpers shall be paid the fol l owi ng mi ni mum wa ge
ra tes :
1. Ei ght hundred pes os (P800.00) a month for
hous ehel pers i n Ma ni l a , Quezon, Pa s a y, a nd
Ca l oocan cities and municipalities of Ma ka ti , Sa n
Jua n, Ma nda l uyong, Munti nl upa , Na vota s ,
Ma l a bon, Pa raaque, Las Pi as, Pa s i g, Ma ri ki na ,
Va l enzuela, Taguig and Pa teros i n Metro Ma ni l a
a nd i n hi ghl y urba ni zed ci ti es ;
2. Si x hundred fi fty pes os (P650.00) a month for
thos e i n other cha rtered ci ti es a nd fi rs t-cl a s s
muni ci pa l i ti es ; a nd
3. Fi ve hundred fi fty pes os (P550.00) a month for
thos e i n other muni ci pa l i ti es .
Provi ded, That the employers s hall review the employment
contra cts of their househelpers every three (3) years with the end i n
vi ew of i mprovi ng the terms a nd condi ti ons thereof.
Provi ded, further, Tha t thos e hous ehel pers who a re
recei ving a t least One thousand pesos (P1,000.00) s hall be covered by
the Social Security Sys tem (SSS) and be enti tl ed to a l l the benefi ts
provi ded thereunder. (As amended by Republic Act No. 7655, Augus t
19, 1993)
Art. 144. Minimum cash wage. The mi nimum wa ge ra tes pres cri be d
under this Chapter s hall be the basic ca sh wages which s hall be pa i d
to the hous ehel pers i n a ddi ti on to l odgi ng, food a nd medi ca l
a ttenda nce.
Other rights of a househelper
Art. 146. Opportunity for education. If the househelper i s under the
a ge of eighteen (18) yea rs , the empl oyer s ha l l gi ve hi m or her a n
opportunity for a t least elementary education. The cost of educa ti on
s ha ll be part of the househelpers compens a ti on, unl es s there i s a
s ti pul a ti on to the contra ry.
Art. 147. Treatment of househelpers. The empl oyer s ha l l trea t the
hous ehelper i n a just and humane manner. In no ca se s ha l l phys i ca l
vi ol ence be us ed upon the hous ehel per.
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Art. 148. Board, lodging, and medical attendance. The employer shall
furni sh the househelper, free of charge, suitable a n d s a ni ta ry l i vi ng
qua rters a s wel l a s a dequa te food a nd medi ca l a ttenda nce.
Art. 149. Indemnity for unjust termination of services. If the peri od
of hous ehol d s ervi ce i s fi xed, nei ther the empl oyer nor the
hous ehelper may terminate the contract before the expiration of the
term, except for a just ca use. If the househelper is unjustly dismissed,
he or s he s hall be paid the compensation already earned plus that for
fi fteen (15) da ys by wa y of i ndemni ty.
If the househelper l eaves without justifiable reaso n, he or she shall
forfei t any unpaid salary due him or her not exceedi ng fi fteen (15)
da ys .
Q: Ma y rel a ti ons hi p be termi na ted wi thout jus t ca us e?
A: Yes . But i t should be with noti ce wi thi n 5 da ys before i ntended
termi na ti on.
Househelpers vs. Homeowrkers
HH mi ni s ters to the pers ona l needs a nd confort of hi s
empl oyer i n the l atters home. HW performs in or about his
own home a ny proces s i ng or fa bri ca ti on of goods or
ma terials, i n whole or i n part, which ha ve been furni s hed
di rectly or i ndirectly, by a n employer a nd thereafter s old or
returned to the l a tter. (Art. 155)
Employers of Homeworkers
Art. 155. Distribution of homework. For purposes of this Chapter, the
"employer" of homeworkers i ncludes a ny person, natural or artifici a l
who, for hi s account or benefit, or on behalf of a ny pers on res i di ng
outs ide the country, di rectly or i ndirectl y, or through a n empl oyee,
a gent contra ctor, s ub-contra ctor or a ny other pers on:
1. Del ivers, or ca uses to be delivered, a ny goods , a rti cl es or
ma terials to be processed or fabricated in or a bout a home
a nd therea fter to be returned or to be di s pos ed of or
di s tri buted i n a ccorda nce wi th hi s di recti ons ; or
2. Sel ls any goods, articles or ma teri a l s to be proces s ed or
fa bri cated in or about a home and then rebuys them a fter
s uch processing or fabrication, either by himself or through
s ome other pers on.
CHAPTER IX MEDICAL AND DENTAL SERVICES AND

OCCUPATIONAL: SAFETY
Q: Is the employer obliged to furnish his employees free medi ci nes
a nd equipments as well a s free medi ca l a nd denta l s ervi ces a nd
fa ci l i ti es ?
A: Art. 165, LC
Intended to provide i mmediate and necessary treatment i n
ca s e of i njury or s udden illness of the worker, whether the
s a me is work-connected or not before a more extens i ve
medi ca l a nd/or denta l trea tment ca n be s ecured.
Empl oyers not obl i ged to provi de a nd s pend for i ts
conti nued or follow-up treatment unless i t has bound i tsel f
by contra ct or es ta bl i s hed pra cti ce or pol i cy.
Free emergency medical, dental services and facilities
SECTION 4. Emergency medical and dental servi ces. Any empl oyer
covered by this Rule s hall provide his employees medical a nd denta l
s ervi ces a nd fa ci l i ti es i n the fol l owi ng ca s es a nd ma nner:
(a ) 10 to 50 workers - gra duate first-aider shall be provided who ma y

be one of the workers i n the work pl a ce a nd who ha s i mmedi a te
a ccess to the first-aid medicines prescribed in Section 3 of thi s Rul e.
(b) exceeds 50 but not more tha n 200 the s ervi ces of a ful l -ti me
regi stered nurse shall be provi ded. However, if the work place is non ha za rdous, the s ervices of a full-time first-aider may be provi ded i f a
nurs e i s not a va i l a bl e.
(c) exceeds 200 but not more tha n 300, the s ervi ces of a ful l -ti me
regi stered nurse, a part-time physician a nd a part-ti me denti s t, a nd
a n emergency cl inic s hall be provided, regardless of the nature of the
undertaking therein. The physician a nd dentist engaged for s uch work
pl a ce shal l s ta y i n the premi s es for a t l ea s t two (2) hours a da y;
Provi ded, However, that where the establishment has more than one
(1) work s hift a day, the required two-hour s tay s ha l l be devoted to
the work s hift which has the bi gges t number of workers a nd they
s ha ll, i n a ddition to the requirements of this Rule, be subject to call at
a ny ti me during the other work shifts to a ttend to emergency ca s es .
(d) Where the number of workers in a hazardous work place exceeds
300, the s ervices of a full-time nurse, a full-time physician, a full-ti me
dentist, a dental cl inic and an infirmary or emergency hos pi ta l wi th
one-bed ca pa ci ty for every 100 workers s ha l l b e provi ded. The
phys i cian a nd dentist s hall s tay i n the premises of the work pl a ce for
a t l east eight (8) hours a da y; Provi ded, However, tha t where the
work pl ace has more than one (1) work s hift a da y, they s ha l l be a t
work pl ace during the work shift whi ch ha s the bi gges t number of
workers a nd they shall be subject to call at a nytime duri ng the other
work s hifts to a ttend to emergency ca ses. Where the underta ki ng i n
s uch a work place is non-ha za rdous i n na ture, the empl oyer ma y
enga ge the s ervices of a part-time physician a nd a pa rt-ti me denti s t
who s hall have the s ame responsibilities a s thos e provi ded i n s ub s ecti on (c) of this Section, a nd s hall engage the s ervices of a full -ti me
regi s tered nurs e.
(e) In a ll work places where there are more than one (1) work shift i n
a da y, the employer s hall, i n addition to the requirements of this Rule,
provi de the s ervices of a full-time first-aider for each workshift. (Rul e
I, Book IV, IRR)
Factors that make a workplace hazardous
(a ) Where the nature of the work e xposes the workers to da ngerous
envi ronmenta l el ements , conta mi na ti ons or work condi ti ons
i ncl uding i onizing radiations, chemicals, fire, flammable s ubs ta nces ,
noxi ous components a nd the l i ke.
(b) Where the workers are enga ged i n cons tructi on work, l oggi n g,
fi re-fighting, mining, qua rryi ng, bl a s ti ng, s tevedori ng, dock work,
deep-s ea fi s hi ng a nd mecha ni zed fa rmi ng.
(c) Where the workers a re engaged i n the manufacture or handling of
expl os i ves a nd other pyrotechni c products .
(d) Where the workers use or a re exposed to heavy or power-dri ven
ma chi nery or equi pment.
(e) Where the workers us e or a re expos ed to power-dri ven tool s .
(Sec. 8, Rul e I, Book IV, IRR)
When emergency hospital ot dental clinic not applicable
SECTION 5. Emergency hospital. An employer need not put up a n
emergency hospital or dental clinic i n the work pla ce a s requi red i n
thes e regulations where there i s a hospital or denta l cl i ni c whi ch i s
not more tha n fi ve (5) ki l ometers a wa y from the work pl a ce i f
s i tuated in any urban a rea or which can be reached by motor vehi cl e
i n twenty-five (25) minutes of tra vel, if situated i n a rural a rea and the
empl oyer has facilities readily a vailable for tra nsporti ng a worker to
the hos pi ta l or cl i ni c i n ca s e of emergency: Provi ded, Tha t the
18
LABOR LAW REVIEW

empl oyer s hall enter i nto a wri tten contra ct wi th the hos pi ta l or
dental clinic for the use thereof i n the treatment of workers in ca se of
emergency. (Rul e I, Book IV, IRR)
Other duties of Doctor
(a ) Conduct pre -employment medical examination, free of charge, for
the proper s el ecti on a nd pl a cement of workers ;
(b) Conduct free of cha rge a nnua l phys i ca l exa mi na ti on of the
workers ;
(c) Col l aborate closely with the safety and technical personnel of the
es tablishment to assure selection a nd placement of workers from the
s ta ndpoint of phys i ca l , menta l , phys i ol ogi ca l a nd ps ychol ogi ca l
s ui tability, i ncluding i nvestigation of accidents where the proba bl e
ca us es a re expos ure to occupa ti ona l hea l th ha za rds ; a nd
(d) Develop a nd implement a comprehens i ve occupa ti ona l hea l th
progra m for the employees of the establis hment. A report s ha l l be
s ubmitted annually to the Bureau of Working Conditions des cri bi ng
the program established a nd the i mpl ementa ti on thereof. (Sec. 9,
Rul e I, Book IV, IRR)
Other obligations of employer in connection with health and safety
of his employees
The employer i s obliged to keep and maintain hi s workpl a ce
free from hazards that are ca using or l ikely to ca us e phys i ca l
ha rm to the workers or damage to property. He mus t compl y
wi th the provisions of the Occupa ti ona l Hea l th a nd Sa fety
Code. (Rul e VI, Book IV, IRR)
Administration and enforcement of occupational safety and health
laws
Art. 165. Administration of safety and health laws.
a . The Depa rtment of La bor a nd Empl oyment s ha l l be s ol el y
res pons i bl e for the a dmi ni s tra ti on a nd enforcement of
occupa tional safety and health laws, regulations and s ta nda rds
i n a ll establis hments a nd workpl a ces wherever they ma y be
l oca ted; however, chartered ci ties ma y be a l l owed to conduct
i ndustrial safety i ns pecti ons of es ta bl i s hments wi thi n thei r
res pective jurisdictions where they have adequate facilities a nd
competent personnel for the purpos e a s determi ned by the
Department of La bor a nd Employment and s ubject to na ti ona l
s ta nda rds es ta bl i s hed by the l a tter.
b. The Secreta ry of La bor a nd Empl oyment ma y, through
a ppropri a te regul a ti ons , col l ect rea s ona bl e fees for the
i ns pection of s team boilers, pressure ves s el s a nd pi pi ngs a nd
el ectrical i nstallati ons , the tes t a nd a pprova l for s a fe us e of
ma terials, equipment and other s afety de vices and the approva l
of pl a ns for s uch materials, equipment and devi ces . The fee s o
col l ected s hall be deposited in the national treasury to the credit
of the occupa ti ona l s a fety a nd hea l th fund a nd s ha l l be
expended exclusively for the a dministration and enforcement of
s a fety a nd other labor laws administered by the Depa rtment of
La bor a nd Empl oyment.
CHAPTER X EMPLOYEES COMPENSATION

PROGRAM AND STATE INSURANCE FUND
Employees Compensation Program
- Fund es ta bl i s hed through premi um pa yments exa cted f rom
empl oyers a nd from which employees a nd thei r dependents i n the
event of work-connected disabi l i ty or dea th, ma y promptl y s ecure

a dequa te i ncome benefi ts a nd medi ca l or rel a ted benefi ts .
Characteristics of the ECP
Sa n Mi guel Corpora ti on vs . NLRC 1988
1. ta x exempt;
2. des igned to ensure promptitude in cases of work-connected
di s a bi l i ty or dea th;
3. funded by monthly contributions of all covered empl oyers ;
4. compulsory on a ll employers a nd their employees not over
60 yea rs of a ge;
5. the benefits are exclusive a nd i n place of a ll other liabiliti es
of the employer to the employee, his dependents or anyone
otherwise entitled to recei ve da ma ges on beha l f of the
empl oyee or hi s dependents ;
6. ha vi ng i ts own a djudi ca ti on ma chi nery wi th ori gi na l
excl usive jurisdiction to s ettle a ny dis pute wi th res pect to
covera ge, entitlement to benefits, collection a nd payments
of contri bution a nd penalties thereon, or any other ma tter
rel a ted thereto, i ndependent of other tri bunals except the
Supreme Court.
Subject to coverage
Empl oyers a nd their employees not over 60 yea rs of a ge.
Empl oyer a nd employees ma y be of the pri va te s ector or
the publ i c s ector.
Coverage takes effect
Empl oyer ta kes effect on the fi rs t da y of opera ti on
Empl oyee ta kes effect on the fi rs t da y of empl oyment
Injury
-
a ny ha rmful cha nge i n the huma n orga ni s m from a ny

a cci dent a rising out of a nd i n the cours e of empl oyment.
(A167(k), LC)
Sickness
i l lness definitely a ccepted as an occupational disease lis ted
by the Commi ssion or a ny i llness ca us ed by empl oyment,
s ubject to proof tha t the ri s k of contra cti ng the s a me i s
i ncrea s ed by worki ng condi ti ons .
Occupational Disease
one which develops as a result of hazards peculiar to certain
occupa tions, due to toxi c s ubs ta nces (a s i n the orga ni c
s ol vents i ndustry), ra diation (a s i n tel evi s i on repa i rmen)
repea ted mecha ni ca l i njury, emoti ona l s tra i n, etc.
Jus ti fi ca ti on: every pl a nt of the s a me i ndus try i s a l i ke
cons tantly exposed to the danger of contracting a particular
occupa ti ona l di s ea s e.
Q: Ma y a di s ea s e not l i s ted wi th the Empl oyees Compens a ti on
Commi s s i on a s a n occupa ti ona l di s ea s e be compens a bl e?
A: Yes , a s long as it ca n be established that the ri sk of contracting the
s a me i s i ncrea s ed by worki ng condi ti ons .
Theory of Increased Risk
- The ri s k of contra cti ng the i l l nes s i s i ncrea s ed by worki ng
condi ti ons .
- Requirement: Rea s ona bl e work-connecti on; Proba bi l i ty not
certa i nty.
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LABOR LAW REVIEW

Q: Wha t defenses may be interpos ed by the Sta te Ins ura nce Fund
a ga inst a cl aim for compensation made by a covered employee or hi s
dependents ?
A: The fol l owi ng defens es ma y be s et up:
1. The i njury i s not work-related or the s ickness is not occupational.
2. The di s a bi l i ty or dea th wa s occa s i oned by the empl oyees
i ntoxication, willful intention to i njure or kill himself or a nother,
of hi s notori ous negl i gence. (A172, LC)
3. No noti ce of sickness, i njury or death was given to the employer.
(A206, LC)
4. The cl aim was filed beyond 3 yea rs from the ti me the ca us e of
a cti on a ccrued. (A201, LC)
- "Dependent" means the legitimate, legitimated or l ega l l y

a dopted or a cknowl edged na tura l chi l d who i s unma rri ed, not
ga i nfully employed, and not over twenty-one (21) years of age or over
twenty-one (21) yea rs of a ge provi ded he i s i nca pa ci ta ted a nd
i nca pable of self-support due to a physical or mental defect whi ch i s
congenital or a cquired during minority; the l egitimate s pous e l i vi ng
wi th the empl oyee a nd the pa rents of s a i d empl oyee whol l y
dependent upon hi m for regul a r s upport.
Rules governing payment of death benefits to the beneficiaries
Priority
1. Pri ma ry benefi ci a ri es . They excl ude others .
2. Seconda ry benefi ci a ri es
3. No beneficiaries, death benefits s hall a ccrue to the ECFund
Notorious Negligence
Is equivalent to gross negligence; i t i s s omethi ng more tha n
ca rel essness or lack of foresight; it falls under the designati on
of evi dent a nd manifest negligence; i t signifies a deliberate act
of the empl oyee to di s rega rd hi s own pers ona l s a fety.
Benefits Payable
- Pri ma ry - Enti tled to a monthly i ncome benefit. Secondary monthly
benefit not to exceed 60 months and shall not be l es s tha n P15,000.
(Rul e XV of the ECC Rul es )
Q: Ca n a n i njured worker or hi s hei rs who opted a nd a ctua l l y

col l ected from the State Insurance Fund, ca n they s ti l l ma i nta i n a s
a cti on for da ma ges a ga i ns t the empl oyer?
A: No. The cl a i ma nt i s precl uded from purs ui ng the a l terna ti ve
remedy, a t least until the prior cl aim is rejected by the Compensation
Commi s s i on.
Classification of benefits which may be enjoyed under the State

Insurance Fund
1. Medi ca l Benefi ts
2. Di s a bi l i ty Benefi ts
3. Dea th Benefi ts
4. Funera l Benefi ts
Going and Coming Rule

Is tha t in the a bsence of special circumstances, a n employee
i njured while going to or coming from his pl a ce of work i s
excl uded form the benefits of workmens compensation act.
Exceptions:
1. where the employee is proceeding to or from hi s work on
the premi s es of hi s empl oyer.
2. where the employee is a bout to enter or a bout to leave the
premi s es of hi s empl oyer by wa y of the excl us i ve or
cus toma ry mea ns of i ngres s or egres s (proxi mi ty rul e);
3. where the employee is charged, while on his way to or from
hi s pla ce of empl oyment or a t hi s home, or duri ng thi s
empl oyment with some duty or s pecia l erra nd connected
wi th hi s empl oyment;
4. where the empl oyer a s a n i nci dent of the empl oyment
provi des the means of transportation to a nd from the place
of empl oyment.
Medical Benefits
Art. 185. Medical services. Immediately after a n employee contra cts
s i ckness or sustains an i njury, he s ha l l be provi ded by the Sys tem
duri ng the subsequent peri od of hi s di s a bi l i ty wi th s uch medi ca l
s ervi ces and appliances as the na ture of hi s s i cknes s or i njury a nd
progres s of hi s recovery ma y requi re, s ubject to the expens e
l i mi ta ti on pres cri bed by the Commi s s i on.
Art. 190. Rehabilitation services.
a . The Sys tem shall, as s oon as practicable, establis h a conti nui ng
progra m, for the rehabilitation of i njured a nd ha ndi ca pped
empl oyees who shall be entitled to reha bi l i ta ti on s ervi ces ,
whi ch shall consist of medical, s urgical or hospital trea tment,
i ncl uding a ppliances if they ha ve been ha ndi ca pped by the
i njury, to hel p them become phys i ca l l y i ndependent.
b. As s oon a s pra cti ca bl e, the Sys tem s ha l l es ta bl i s h centers
equi pped a nd s ta ffed to provi de a ba l a nced progra m of
remedial treatment, vocational assessment a nd prepa ra ti on
des igned to meet the i ndividual needs of ea ch ha ndi ca pped
empl oyee to restore him to suitable empl oyment, i ncl udi ng
a s s i s ta nce a s ma y be wi thi n i ts res ources , to hel p ea ch
reha bi l i tee to devel op hi s menta l , voca ti ona l or s oci a l
potenti a l .
Persons entitled to benefits under the employees compensation

program
The covered employee, his dependents, and i n ca s e of hi s
dea th, hi s benefi ci a ri es .
Dependents
mea ns the l egi ti ma te, l egi ti ma ted, l ega l l y a dopted or
a cknowledged natural child who is unmarried, not gainful l y
empl oyed, and not over 21 yea rs of a ge or over 21 yea rs of
a ge provided he is i nca pa ci ta ted a nd i nca pa bl e of s el f s upport due to physical or mental defect which is congental
or a cquired during minority; the l egi ti ma te s pous e l i vi ng
wi th the employee wholly dependent upon him for regul a r
s upport. (A167, LC)
Conditions of Entitlement to Medical Services

1. He ha s been dul y reported to the Sys tem (SSS or GSIS)
2. He s ustains a permanent disability as a result of a n injury or
s i cknes s ; a nd
3. The Sys tem has been notified of the i njury or s ickness which
ca us ed hi s di s a bi l i ty.
Disability Benefits
they a re benefi ts i n ca s e of tempora ry tota l di s a bi l i ty,
perma nent total disability a nd permanent partial disabi l i ty.
Beneficiaries
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LABOR LAW REVIEW

Income Benefits
Injury or
sickness
resulting
in:
Tempora r
y
tota l
di s a bi l i ty
Perma nen
t
tota l
di s a bi l i ty
Perma nen
t
tota l
di s a bi l i ty
Daily
Income
Benefit
Number of
Days
90%
of
a vera ge
da i ly salary;
not
l es s
tha n P10
nor more
tha n P90
120 da ys
except
where
i njury or
s i cknes s
s ti l l
requi res
medi ca l
a ttendance
beyond 120
da ys but
not
to
exceed 240
from ons et
of
di s a bi l i ty.
Monthl y
i ncome
benefi t
gua ra nteed
for 5 yea rs
a nd s ha l l
be
s us pended
if
the
empl oyee
i s gainful l y
empl oyed
or recovers
from hi s
perma nent
tota l
di s a bi l i ty,
or fa i l s to
pres ent
hi msel f for
exa minatio
n a t l ea s t
once a year
noti ce by
the Sys tem,
except a s
otherwi s e
provi ded.
Amount
equa l to
monthl y
i ncome
benefi ts ,
pl us 10%
thereof for
ea ch
dependent
chi l d but
not
exceeding 5
from the
younges t
wi thout
s ubstitution
.
Equa l
to
perma nent
tota l
di s a bi l i ty.
Total and permanent Disability

Temporary total disability l asting continuously for more than 120 days
except a s otherwi s e provi ded by the Rul es :
Compl ete l os s of s i ght of both eyes ;
Los s of 2 l i mbs a t or a bove the a nkl e or wri s t;
Perma nent compl ete pa ra l ys i s of 2 l i mbs ;
Bra i n injury res ulting i n i ncurable i mbecility or i nsanity; a nd
Such ca ses as determined byt the Medi ca l Di rector of the

Sys tem a nd a pproved by the Commi s s i on. (Art. 192 (c), LC)
How long may the permanent partial disability income benefit be
enjoyed?
Art. 193 (b), LC
The benefit shall be paid for not more than the period desi gna ted i n
the fol l owi ng s chedul es :
Complete and permanent
loss of the use of
No. of Months
One thumb
One index finger
One middle finger
One ring finger
One little finger
One big toe
One toe
One arm
One hand
One foot
One leg
One ear
Both ears
Hearing of one ear
Hearing of both ears
Sight of one eye -
10
8
6
5
3
6
3
50
39
31
46
10
20
10
50
25
Q: Perma nent partia l di s a bi l i ty be converted to perma nent tota l

di s a bi l i ty a fter the empl oyees reti rement?
A: Yes . In line with the social jus ti ce provi s i on i n the Cons ti tuti on.
Death Benefits
Art. 194. Death.
a . Under s uch regulations as the Commission ma y a pprove, the
Sys tem s hall pay to the primary beneficiaries upon the dea th
of the covered empl oyee under thi s Ti tl e, a n a mount
equivalent to his monthly i ncome benefi t, pl us ten percent
thereof for ea ch dependent chi l d, but not exceedi ng fi ve,
begi nning with the youngest and without substitution, except
a s provi ded for i n pa ra gra ph (j) of Arti cl e 167 hereof:
Provi ded, however, That the monthly i ncome benefit shal l be
gua ra nteed for five years: Provi ded, further, That if he ha s no
pri ma ry beneficiary, the Sys tem s ha l l pa y to hi s s econda ry
beneficiaries the monthly i ncome benefi t but not to exceed
s i xty months : Provi ded, fi na l l y, Tha t the mi ni mum dea th
benefit shall not be l es s tha n fi fteen thous a nd pes os . (As
a mended by Secti on 4, Pres i denti a l Decree No. 1921)
b. Under s uch regulations as the Commission ma y a pprove, the
Sys tem s hall pay to the primary beneficiaries upon the dea th
of a covered empl oyee who i s under perma nent tota l
di s a bi l i ty under thi s Ti tl e, ei ghty percent of the monthl y
i ncome benefi t a nd hi s dependents to the dependents
pension: Provi ded, That the marriage must have been va l i dl y
s ubsisting a t the time of disability: Provi ded, further, That if he
ha s no pri ma ry benefi ci a ry, the Sys tem s ha l l pa y to hi s
s econdary beneficiaries the monthl y pens i on excl udi ng the
dependents pension, of the remai ni ng ba l a nce of the fi ve yea r gua ranteed period: Provi ded, finally, That the mi ni mum
dea th benefit shall not be l ess than fifteen thous a nd pes os .
(As a mended by Secti on 4, Pres i denti a l Decree No. 1921)
c. The monthly i ncome benefit provided herein shall be the new
a mount of the monthl y i ncome benefi t for the s urvi vi ng
21
LABOR LAW REVIEW

beneficiaries upon the a pproval of this decree. (As a mended
by Secti on 8, Pres i denti a l Decree No. 1368)
Conditions for entitlement to Death Benefits
1. The empl oyee ha s dul y reported to the Sys tem.
2. He di ed a s a res ul t of a n i njury or s i cknes s ;
3. The Sys tem has been duly notified of his dea th, a s wel l a s
the i njury or s i cknes s whi ch ca us ed hi s dea th.
How long are primary beneficiaries entitled to death benefits?
1. dependent s pous e unti l he or s he rema rri es ;
2. dependent children until they get married, or fi nd ga i nful
empl oyment, or rea ch 21 yea rs of a ge;
3. i n ca se of child suffering from phys i ca l or menta l defect,
when defect di s a ppea rs .
+ If employee s uffers dis a bi l i ty or di es before he i s reported, the
empl oyer wi l l be l i a bl e for the benefi ts .
Funeral Benefits.
A funeral benefit of P10,000 s hall be paid upon the death of
a covered empl oyee or perma nentl y tota l l y di s a bl ed
pens i oner.
When empl oyer l i a bl e to pa y pena l ty to Sta te Ins ura nce Fund
Art. 200. Safety devices. In ca se the employees injury or dea th wa s
due to the failure of the employer to comply with a ny l aw or to i nstall
a nd maintain s a fety devi ces or to ta ke other preca uti ons for the
prevention of i njury, s aid employer s hall pay the State Insurance Fund
a penalty of twenty-five percent (25%) of the l ump sum equivalent of
the i ncome benefi t pa ya bl e by the Sys tem to the empl oyee. Al l
empl oyers, s pecially those who s houl d ha ve been pa yi ng a ra te of
contri buti on hi gher tha n requi red of them under thi s Ti tl e, a re
enjoined to undertake and strengthen measures for the occupational
hea l th a nd s a fety of thei r empl oyees .
Who are required to make contributions to the State Insurance
Fund?
Contri butions under this Title s hall be pa i d i n thei r enti rety by the
empl oyer a nd a ny contra ct or devi ce for the deducti ons of a ny
porti on thereof from the wages or s alaries of the employees s hal l be
nul l a nd voi d. (Art. 183, (c))
Art. 184. Government guarantee. The Republ i c of the Phi l i ppi ne s
gua ra ntees the benefi ts pres cri bed under thi s Ti tl e, a nd a ccepts
general responsibility for the solvency of the State Insurance Fund. In
ca s e of a ny deficiency, the s ame s hall be covered by s uppl ementa l
a ppropri a ti ons from the na ti ona l government.
+ Juri sdiction over disputes under the ECP wi th res pect to covera ge,
enti tlement to benefits, collection a nd payment of contributions a nd
pena l ti es or a ny other ma tter rel a ted thereto.
Art. 180. Settlement of claims. The Sys tem s ha l l ha ve ori gi na l a nd
excl usive jurisdiction to s ettle a ny dispute arising from this Titl e wi th
res pect to coverage, entitlement to benefits, collection a nd pa yment
of contri butions a nd penalties thereon, or a ny other ma tter rel a ted
thereto, subject to appeal to the Commi s s i on, whi ch s h a l l deci de
a ppealed cases within twenty (20) working days from the submissi on
of the evi dence.
Rul e 43, Secti on 1,3,4, 1997, Ci v Pro
Section 1. Scope. Thi s Rule s hall a pply to a ppeals from judgments
or fi na l orders of the Court of Ta x Appea l s a nd from a w a rds ,
judgments, final orders or resolutions of or a uthorized by a ny qua s i judi ci a l a gency i n the exerci s e of i ts qua s i -judi ci a l functi ons .
Section 2. Cases not covered. Thi s Rul e s ha l l not a ppl y to
judgments or fi na l orders i s s ued under the La bor Code of the
Phi l i ppi nes . (n)
Section 3. Where to appeal. An a ppea l under thi s Rul e ma y be
ta ken to the Court of Appeals within the peri od a nd i n the ma nner
herein provided, whether the appeal i nvol ves ques ti ons of fa ct, of
l a w, or mi xed ques ti ons of fa ct a nd l a w. (n)
Section 4. Period of appeal. The a ppea l s ha l l be ta ken wi thi n
fi fteen (15) days from notice of the award, judgment, fi na l order or
res olution, or from the date of its last publi ca ti on, i f publ i ca ti on i s
requi red by l aw for i ts effecti vi ty, or of the deni a l of peti ti oner's
moti on for new trial or reconsideration duly filed in a ccorda nce wi th
the governing law of the court or agency a quo. Onl y one (1) moti on
for reconsideration shall be allowed. Upon proper moti on a nd the
pa yment of the full a mount of the docket fee before the expiration of
the regl ementa ry peri od, the Court of Appea l s ma y gra nt a n
a dditional period of fifteen (15) da ys onl y wi thi n whi ch to fi l e the
peti tion for review. No further extension s hall be gra nted except for
the mos t compelling reas on a nd i n no ca s e to exceed fi fteen (15)
da ys . (n)
Q: When does ri ght to compens a ti on or benefi t for l os s or

i mpairment of an employees earning ca pa ci ty due to work -rel a ted
i l l nes s or i njury a ri s e?
A: Ari s es or a ccrues upon, a nd not before, the ha ppeni ng of the
conti ngency.
Q: Does recovery from the Sta te Ins ura nce Fund ba r a cl a i m for
benefi ts under the SSS La w? Why?
No. As expres s l y provi ded for i n Arti cl e 173 of the LC,
pa yment under the Sta te Ins ura nce Fund does not ba r
recovery from SSS.
Benefits under the SIF accrue to the employees concerned
due to hazards i nvol ved a nd a re ma de a burden on the
empl oyment i ts el f. On the other ha nd, s oci a l s ecuri ty
benefi ts a re pa i d to SSS Members by rea s on of thei r
membership therein for which they contribute their money
to a genera l fund. (Ma -a o Suga r Centra l vs . CA, 1990)
Note: Li beral attitude should be a dopted i n fa vor of the empl oyee.
CHAPTER XI RIGHT TO SELF-ORGANIZATION

Right to Self-Organization
- The ri ght to form, joi n, or a s s i s t l a bor orga ni za ti ons for the
purpose of collective bargaining through representatives of their
own choosing a nd to engage in l awful concerted activities for the
s a me purpose for their mutual aid and protecti on (Art. 246, LC)
Purpose: In a uni on there i s s trength. Orga ni za ti on of col l ecti ve
s trength for the protection of workers against the unjust exactions of
the employer a nd for s ecuring to i ts members fair a nd just wages and
good worki ng condi ti ons .
Labor Organization
i s a union or association of employees which exists i n whole or in
pa rt for the purpose of col l ecti ve ba rga i ni ng or dea l i ng wi th
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LABOR LAW REVIEW
empl oyers concerning terms a nd condi ti ons of empl oyment.

(Art. 212 (e))
l egitimate labor organization if duly registered wi th the DOLE
(Art. 212 (f))
Workers As s oci a ti on
a n a ssociation of workers for the mutual a id and protection of its
members or for a ny l egitima te purpos e other tha n col l ecti ve
ba rga i ni ng. (IR)
Sec. 4. Thi s EO s hall not apply to the members of the AFP, i ncl udi ng
pol i ce offi cers , pol i cemen, fi remen a nd ja i l gua rds .
Managerial and Supervisory Personnel
Managerial a re not eligibl e to joi n, a s s i s t or form a ny LO. (A245)
Supervisory ma y joi n, assist or form LO of their own but not eligible
for members hi p i n a l a bor orga ni za ti on of the ra nk -a nd fi l e
empl oyees .
Independent Union
l a bor organization operating at the enterprise level whose l ega l
pers ona l i ty i s deri ved through a n i ndependent a cti on for
regi s tra ti on pres cri bed under Art. 234, LC. (IR)
Should managerial employees be entitled to form unions of their

own?
Yes . Al l workers ha ve the ri ght to s el f-orga ni za ti on. (Sec. 8,
Arti cl e 3, Consti). Ma nageri a l empl oyees not di s qua l i fi ed by
Cons ti from exerci s e of the ri ght to s el f-orga ni za ti on.
Chartered Local
La bor orga ni za ti on i n the pri va te s ector opera ti ng a t the
enterprise l evel tha t a cqui red l ega l pers ona l i ty through the
i s suance of a charter certificate by a duly registered federa ti on
or na ti ona l uni on, a nd reported to the Regi ona l Offi ce (IR)
IS Art 245 constitutional?

No. Ri ght to form uni ons s houl d be onl y for purpos es not
contra ry to l a w. In Art.245, there is rational basis for prohibi ti ng
ma nageria l empl oyees from formi ng l a bor orga ni za ti ons .
Evi dent confl i ct of i nteres t.
Affiliate
refers to an independent uni on a ffi l i a ted wi th a federa ti on,
na ti onal union or a chartered l oca l , whi ch wa s s ubs equentl y
gra nted i ndependent registration but did not disaffiliate from its
federation, reported to the Regi ona l Offi ce a nd the Burea u.
National Union/Federation
a group of legitimate labor unions i n a pri va te es ta bl i s hment
orga nized for collective bargaining or for dealing with employees
concerni ng terms a nd condi ti ons of empl oyment for thei r
member unions or for participating in the formulation of s oci a l
empl oyment policies, standards a nd programs, regi s tered wi th
the Burea u (IR).
Who are entitled to exercise right to self-organization
Art. 243. Coverage and employees right to self-organization.
1. Al l pers ons empl oyed i n commerci a l , i ndus tri a l a nd
a gri cultural enterprises a nd i n religious, charitable, medical, or
educa ti ona l i ns ti tuti ons , s ha l l ha ve the ri ght to s el f orga nization and to form, join, or a ssist labor organizations of
thei r own choos i ng for purpos es of col l ecti ve ba rga i ni ng.
2. Ambul ant, intermittent and itinerant workers, self-empl oyed
peopl e, rura l workers a nd thos e wi thout a ny defi ni te
empl oyers may form labor organizations for their mutua l a i d
a nd protection. (As a mended by Ba tas Pa mba ns a Bi l a ng 70,
Ma y 1, 1980)
Government Employees
Sec. 8, Art. III a nd Sec. 2 (5), Art. Ix-b of the Cons ti tuti on.
EO 180:
Sec. 2. Al l govt empl oyees ca n form, joi n or a s s i s t empl oyees
orga ni za ti ons of thei r own choos i ng for the furthera nce a nd
protecti on of their interests. They ca n a lso form, i n conjuncti on wi th
a ppropriate govt authorities, labor-management commi ttees , work
counci ls a nd other forms of workers participation schemes to achieve
the s a me objecti ves .
Sec. 3. Hi gh-l evel empl oyees whos e functi ons a re norma l l y
cons idered as policy-making or managerial or whose duties are highly
confi dential in nature shall not be eligible to join the organi za ti on of
ra nk-a nd-fi l e govt empl oyees .
Managerial
- ves ted with powers of
preroga ti ves to l a y
down a nd execute
ma nagement pol i ci es
a nd/or hi re, tra ns fer,
s us pend, lay-off, recall,
di s cha rge, a s s i gn or
di s cipline empl oyees .
Supervisory
- thos e, who, i n the
i nteres t
of
the
empl oyer, effecti vel y
recommend
s uch
ma nagement actions i f
the exerci s e of s uch
a uthority is not merel y
routi nary or cl eri ca l i n
na ture but requires the
us e of i ndependent
judgment.
Note: ca s e to ca s e ba s i s . See i f ma na gers or s upervi s ors

functi ons fi t the di s ti ncti ons a bove.
Confidential Employees
One entrusted with confidence on delicate matters, or wi th
cus tody, handling, or ca re and protection of the employers
property.
Under the DOCTRINE OF NECESSARY IMPLICATION,
confi dential employees are s imilarly disqualified. (NATU vs .
Torres , 1994)
Qua l i fy: Confi denti a l empl oyees WITH ACCESS to l a bor
rel a tions documents. (SMC s upervisors a nd Exempt Uni on
vs . La gues ma , 1997)
Shop Steward
Appoi nted by the union i n a shop, department, or plant a nd
s erves a s repres enta ti ve of the uni on, cha rged wi th
negotiating and adjus tment of gri eva nces of empl oyees
wi th the s upervi s or of the empl oyer.
Pa rt of conti nuous process of grievance resolution designed
to pres erve and maintain peace among the employees a nd
thei r empl oyer.
Q: Ma y a l i ens joi n l a bor uni ons i n the Phi l i ppi nes ?
A: General Rul e: No, they a re prohi bi ted under Art. 269 of the LC.
However, under the same a rticle as amended by 6715, a liens working
i n the Philippines with va lid permits issued by the DOLE may exerci s e
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LABOR LAW REVIEW

the ri ght to self-organization a nd join or a ssist labor organizations of
thei r own choosing for purposes of collective ba rga i ni ng; provi ded,
tha t s aid a liens a re nationals of a country wh i ch gra nts the s a me or
s i mi l a r ri ghts to Fi l i pi no workers .
Trade Union Activities
a . "Tra de uni on a cti vi ti es " s ha l l mea n:
1. orga ni za ti on, forma ti on a nd a dmi ni s tra ti on of l a bor
orga ni za ti on;
2. negoti a ti on a nd a dmi ni s tra ti on of col l ecti ve ba rga i ni ng
a greements ;
3. a l l forms of concerted uni on a cti on;
4. orga nizing, managing, or assisting union conventions, meeti ngs ,
ra l l i es , referenda , tea ch-i ns , s emi na rs , conferences a nd
i ns ti tutes ;
5. a ny form of pa rti ci pa ti on or i nvol vement i n repres enta ti on
proceedings, representation elections, consent elections , uni on
el ecti ons ; a nd
6. other a ctivities or actions analogous to the foregoi ng. (Art. 270)
+ Empl oyees of a Coopera ti ve ma y joi n l a bor uni ons , except
empl oyees who a re members of the coopera ti ve. Members a re
cons idered owners and an owner ca nnot bargain with hims el f or hi s
co-owners .
Features of the Labor Code that protect and strengthen labor unions
Provisions on:
a . unfa i r l a bor pra cti ce (A248)
b. ri ght of l abor organizations to prescribe their own rul es wi th
res pect to the a cquisition or retention of membership therei n
(A249)
c. recognizing the validity of cl osed s hop, union s hop a nd other
uni on s ecuri ty a rra ngements (A248(e))
d. a uthorizing deductions or check-offs from the wa ges of a n
empl oyee for uni on dues (A113(e))
e. a l l owi ng the i mpos i ti on of a n a gency fee (A248(e))
f. prohi biting abridgment of the ri ght to self-organization (A246)
Legal Personality
Labor Organization - Upon i ssuance of the certificate of regi s tra ti on
(Art. 234, LC)
Chapter/Local of a federation or national union becomes a
l egitimate l a bor orga ni za ti on upon s ubmi s s i on to the BLR of i ts
cha rter certificate, constitution a nd by-laws, a statement on the set of
offi cers a nd the books of a ccounts .
Purpose of registration
A condi ti on s i ne qua non for the a cqui s i ti on of l ega l
pers onality by l abor organizations, ass oci a ti on or uni ons ,
a nd the possession of the rights and privi l eges gra nted by
l a w to l egi ti ma te l a bor orga ni za ti ons .
To protect l a bor a nd publ i c from thos e who pos e a s
orga nizers , a l though not trul y a ccredi ted a gents of the
uni on they purport to repres ent.
Requirements for the registration of Independent Union and of
Federation and National Union
(Sec 2, Rul e III, Book V, IRR. As a mended by DO 40-03)
Chapter No mi ni mum
Independent Union 20%. (def: does not depe nd on a cha rter;

regi s tered for a nd by empl oyees thems el ves )
Requirements for chartering/creation of a local chapter
(Art. 234-A, LC a s a mended by RA 9481)
Trade Union Center
a ny group of regi s tered na ti ona l uni ons or federa ti ons
orga nized for the mutual a id and protection of its members;
for a s sisting s uch members i n collective ba rga i ni ng; or for
pa rti cipating in the formul a ti on of s oci a l a nd economi c
pol icies, standards, a nd progra ms a nd i s dul y regi s tered
wi th the DOLE.
Under LC IRR a nd RA 9481, effective June 14, 2007, a tra de
uni on i s not a mong thos e tha t ca n cha rter a cha pter or
l oca l .
Union registration requirements
Formal requirements
mus t be strictly complied with; otherwi s e no pers ona l i ty.
Cons ti tution, by-laws a nd list of members must be a ttested
to by uni on pres i dent
Accounti ng books mus t be s ubmi tted
Reason for Strict Compliance
beca use l egi ti ma te l a bor orga ni za ti ons a re enti tl ed to
s pecific ri ghts under the LC a nd a re i nvol ved i n a cti vi ti es
di rectly a ffecting ma tters of publ i c i nteres t. (ri ght to be
certi fi ed a s the excl us i ve repres enta ti ve of a l l the
empl oyees i n an appropriate bargai ni ng uni t; ri ght to fi l e
peti tion for certification election; - these depend on a labor
orga ni za ti on a tta i ni ng the s ta tus of LLO)
+ Lega l personality of LO ca nnot be subject of collatera l a tta ck. Onl y
through a separate action instituted particul a rl y for the purpos e of
a s s a i l i ng s a i d l ega l pers ona l i ty.
Principles relative to the right of a local union to disaffiliate from its
mother federation
Bei ng a separate a nd voluntary a ssociation, is free to disaffili a te
when ci rcumstances warra nt. This ri ght i s cons i s tent wi th the
cons ti tuti ona l gua ra ntee of freedom of a s s oci a ti on.
Technical rules to disaffiliate ca nnot rise above the fundamenta l
ri ght to s el f-orga ni za ti on.
Generally, a labor union ma y disaffiliate from the mother uni on
to form a l ocal or i ndependent uni on onl y duri ng the 60-da y
freedom period immedia tel y precedi ng the expi ra ti on of the
CBA. Excepti on: before onset of freedom peri od (a nd des pi te
cl os e-shop provision in the CBA between the mother-union a nd
the mgmt) disaffiliation ma y be ca rri ed out, but s uch mus t be
effected by a majority of the members i n the ba rga i ni ng uni t.
Thi s happens when there is a substantial shi ft i n a l l egi a nce on
the pa rt of the majority or the members of the union. In s uch a
ca s e, CBA s till binds the members of the new or disaffiliated a nd
i ndependent uni on up to the CBAs expi ra ti on da te.
Essence of Affiliation
to i ncrease, by collective a cti on, the common ba rga i ni ng
power of l ocal unions for the effecti ve enha ncement a nd
protecti on of their interests. (Philippine Skylanders , Inc. vs .
NLRC, 2002)
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LABOR LAW REVIEW

+ Ra nk and file uni on a nd s upervi s ors uni on ma y joi n the s a me
federa ti on or na ti ona l uni on. (Art. 245 a s a mended by 9481.)
Effect of the registration of a Labor Organization
a . To a ct a s the representa ti ve of i ts members for the purpos e of
col l ecti ve ba rga i ni ng;
b. To be certi fied a s the exclusive representative of a ll the employees
i n a n a ppropri a te ba rga i ni ng uni t for purpos es of col l ecti ve
ba rga i ni ng;
c. To be furnished by the employer, upon wri tten reques t, wi th i ts
a nnual a udited financial s tatements, including the balance sheet a nd
the profit a nd l oss statement, within thi rty (30) ca l enda r da ys from
the da te of receipt of the reques t, a fter the uni on ha s been dul y
recognized by the employer or certi fi ed a s the s ol e a nd excl us i ve
ba rgaining representative of the employees i n the bargaining uni t, or
wi thin sixty (60) ca lendar days before the expira ti on of the exi s ti ng
col l ective bargaining a greement, or during the collecti ve ba rga i ni ng
negoti a ti on;
d. To own property, real or personal, for the us e a nd benefi t of the
l a bor orga ni za ti on a nd i ts members ;
e. To s ue a nd be s ued i n i ts regi s tered na me; a nd
f. To underta ke a l l other a cti vi ti es des i gned to benefi t the
orga ni za ti on a nd i ts members , i ncl udi ng coopera ti ve, hous i ng,
wel fa re a nd other projects not contra ry to l a w.
g. To be free wi th res pect to i ts i ncome a nd the properti es of
l egitimate labor organizations, including grants, endowments , gi fts ,
dona tions and contributi ons they ma y recei ve from fra terna l a nd
s i milar organizations, local or foreign, which are a ctually, di rectly a nd
excl usively used for their lawful purposes, s ha l l be free from ta xes ,
duti es a nd other a ssessments. (As amended by Secti on 17, Republ i c
Act No. 6715, Ma rch 21, 1989).
h. To fi l e a notice of s trike i n beha l f of i ts members on grounds of
unfa ir labor practices, in the a bsence oa a duly certified or recognized
ba rga i ni ng repres enta ti ve. (Art. 263, LC)
i . To col lect reasonable membership fees, union dues , a s s es s ments
a nd fines a nd other contributions for labor educati on a nd res ea rch,
mutua l death and hospitalization benefits, welfare fund, s tri ke fund
a nd credit a nd cooperative undertakings. (As amended by Section 33,
Republ i c Act No. 6715, Ma rch 21, 1989).
Q: Ma y a n empl oyee be compel l ed to be a member of a l a bor
orga ni za ti on?
A: No. ri ght to s elf-organization i ncludes the freedom not to joi n a
uni on. EXCPT: cl os ed-s hop cl a us e i n CBA.
Q: Ma y a n employer as a condition for employment that the applicant
s ha l l not joi n a l a bor orga ni za ti on?
A: No. Such i s in the nature of a yellow dog contract and constitutes
unfa ir labor practice. Interference on the right to s el f-orga ni za ti on.
Rights of membership in a labor organization
Ma gna Ca rta of Empl oyees a ga i ns t a Uni on
(a ) Ri ght against imposition of arbitrary or excessive i ni ti a ti on fees ,
fi ne a nd forfei ture be i mpos ed;
(b) Ri ght to ful l a nd deta i l ed reports from thei r offi cers a nd
representatives of all financial tra ns a cti ons a s provi ded for i n the
cons ti tuti on a nd by-l a ws of the orga ni za ti on;
(c) Ri ght to directly elect their officers, i ncluding those of the national
uni on or federation, to whi ch they or thei r uni on i s a ffi l i a ted, by
s ecret ba l l ot a t i nterva l s of fi ve (5) yea rs .
(d) The members s ha l l determi ne by s ecret ba l l ot, a fter due

del i bera ti on, a ny ques ti on of ma jor pol i cy a ffecti ng the enti re
members hi p of the orga ni za ti on, unl es s the na ture of the
orga nization or force majeure renders such secret ballot i mpra cti ca l ,
i n which case, the board of directors of the orga ni za ti on ma y ma ke
the deci s i on i n beha l f of the genera l members hi p;
(e) Ri ght to i nspect during offi ce hours the books of a ccounts a nd
other records of the fi na nci a l a cti vi ti es of the orga ni za ti on.
(f) Ri ght to be informed about the provis i ons of the orga ni za ti ons
cons ti tuti on a nd by-l a ws , col l ecti ve ba rga i ni ng a greement, the
preva iling labor relation systems, as well a s ri ghts a nd obl i ga ti ons
under exi s ti ng l a bor l a ws .
(g) Ri ght to report to the Bureau of La bor Relations a ny vi ol a ti on of
the ri ghts a nd condi ti ons of members hi p.
Q: Expul sion of union officers for vi olation of 242. Instead of deciding
the ca s e, the med-arbi ter ordered hol di ng of referendum a mong
uni on members to decide issue of expuls i on. Is med-a rbi ter a cti on
correct?
A: No.
Q: Wha t i f offi ces s ought to be expel l ed get re -el ected?
A: The re-election i ndicates that the members ha ve di s rega rded or
ha ve forgi ven thei r fa ul ts or mi s conduct.
Check-off
process or devi ce whereby the empl oyer, on a greement
wi th the uni on recogni zed a s the proper ba rga i ni ng
repres enta ti ve, or on pri or a uthori za ti on from i ts
empl oyees, deducts unions dues or a gency fees from the
l a tters wa ges a nd remi ts them di rectl y to the uni on.
When a l l owed, LO i s a s s ured of conti nuous fundi ng.
General Rule: Fees a nd a s s es s ments due the uni on ca nnot be
deducted from his wa ges or other a mounts due hi m wi thout hi s
i ndi vi dua l s wri tten a uthori za ti on.
Exceptions:
1. for uni on dues in case where the right to s et-off ha s been
recogni zed by the empl oyer
2. for rea s onable assessments in connection wi th ma nda tory
a cti vi ties s uch as l abor education a nd res ea rch a nd l a bor
rel a ti ons . (Art. 241 (o))
Union Service Fee pa yment for a ppearances i n labor proceedi ngs .
Al l owed to be col l ected.
Note however: Arti cl e 222, Arti cl e 111
Art 222 - No a ttorneys fees, negotiation fees or similar charges of any
ki nd a ri s i ng from a ny col l ecti ve ba rga i ni ng a greement s ha l l be
i mpos ed on a ny i ndi vi dua l member of the contra cti ng uni on:
Provi ded, However, tha t a ttorneys fees ma y be cha rged a ga i ns t
uni on funds i n a n a mount to be a greed upon by the pa rti es . Any
contra ct, a greement or a rrangement of a ny s ort to the contrary s ha l l
be null a nd void. (As amended by Presidential Decree No. 1691, Ma y
1, 1980)
Art. 111. Attorneys fees.
a . In ca s es of unlawful wi thhol di ng of wa ges , the cul pa bl e
pa rty ma y be assessed a ttorneys fees equi va l ent to ten
percent of the a mount of wa ges recovered.
b. It s hall be unlawful for a ny person to demand or a ccept, i n
a ny judicial or administrative proceedings for the recovery
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LABOR LAW REVIEW

of wa ges, a ttorneys fees which exceed ten percent of the
a mount of wa ges recovered.
Rules in collection and disbursement of funds of a labor

organization
g. No offi cer, a gent or member of a labor organization s hall col l ect
a ny fees, dues, or other contributions i n i ts beha l f or ma ke a ny
di s bursement of its money or funds unless he is duly a uthori zed
purs ua nt to i ts cons ti tuti on a nd by-l a ws ;
h. Every pa yment of fees, dues or other contributions by a member
s ha ll be evidenced by a recei pt s i gned by the offi cer or a gent
ma ki ng the col l ecti on a nd entered i nto the record of the
orga ni za ti on to be kept a nd ma i nta i ned for the purpos e;
i . The funds of the orga ni za ti on s ha l l not be a ppl i ed for a ny
purpose or object other tha n thos e expres s l y provi ded by i ts
cons ti tuti on a nd by-l a ws or thos e expres s l y a uthori zed by
wri tten resolution a dopted by the majority of the members a t a
genera l meeti ng dul y ca l l ed for the purpos e;
j.
Every i ncome or revenue of the organization shall be evi denced
by a record s howi ng i ts s ource, a nd every expendi ture of i ts
funds s hall be evidenced by a receipt from the pers on to whom
the pa yment i s ma de, whi ch s ha l l s ta te the da te, pl a ce a nd
purpose of such payment. Such record or receipt shall form pa rt
of the fi na nci a l records of the orga ni za ti on.
k. Any a cti on involving the funds of the organization s hall prescribe
a fter three (3) years from the date of submission of the a nnua l
fi nancial report to the Department of Labor a nd Employment or
from the da te the same s hould have been s ubmitted as required
by l a w, whichever comes earlier: Provi ded, Tha t thi s provi s i on
s ha ll a pply only to a legiti ma te l a bor orga ni za ti on whi ch ha s
s ubmitted the financial report requi rements under thi s Code:
Provi ded, further, tha t fa i l ure of a ny l a bor orga ni za ti on to
compl y wi th the periodic financial reports requi red by l a w a nd
s uch rul es a nd regul a ti ons promul ga ted thereunder s i x (6)
months a fter the effectivi ty of this Act s hall automatically res ul t
i n the ca ncel l a ti on of uni on regi s tra ti on of s uch l a bor
orga nization; (As a mended by Section 16, Republic Act No. 6715,
Ma rch 21, 1989)
l . The treasurer of any labor organization and every officer thereof
who i s responsible for the a ccount of s uch orga ni za ti on or for
the col lection, management, disbursement, custody or control of
the funds, moneys a nd other properties of the organization, shall
render to the organization and to its members a true and correct
a ccount of a l l moneys recei ved a nd pa i d by hi m s i nce he
a s sumed office or since the last day on which he rendered s uch
a ccount, and of all bonds, s ecurities a nd other properties of the
orga nization entrusted to his custody or under hi s control . The
renderi ng
of
s uch
a ccount
s ha l l
be
ma de:
1. At l east once a year wi thin thirty (30) days after the close
of i ts fi s ca l yea r;
2. At s uch other ti mes as may be required by a resolution of
the ma jori ty of the members of the orga ni za ti on; a nd
3. Upon va ca ti ng hi s offi ce.
The a ccount shall be duly a udited a nd verified by a ffidavit a nd a copy
thereof s ha l l be furni s hed the Secreta ry of La bor.
Special Assessments
Requi s i tes :
1.
2.
3.
a uthorization by a wri tten resolution of the ma jori ty of a l l

members a t the general membership meeti ng dul y ca l l ed
for the purpos e.
s ecreta rys record of the mi nutes of the meeti ng;
i ndividual wri tten authorization for check-off duly s igned by
the empl oyees concerned.
Note: Speci a l As s es s ments vs . Uni on Dues

Technical Requirements or formalities in relation to election of
union officers does not invalidate election a s l ong a s i t does not
a ppear that s uch failure resulted i n the deprivation of any s ubstantial
ri ght or prerogative of a nyone, or ca used the perpetration of fraud or
other s erious a nomaly, or preclude the expression a nd ascertainment
of the popul a r wi l l i n the choi ce of offi cers .
Constitution and by-laws of labor unions
Tra de unions have the right to a dopt constitutions , rul es or byl a ws within the s cope of their lawful purpos es , a nd bi nd thei r
members thereby. To be va lid, the provisions i n the constituti on
a nd by-laws must be reasonabl e, uni form a nd not contra ry to
publ i c pol i cy or the l a w of the l a nd.
Cons ti tute a contra ct between the uni on a nd i ts members .
Mus t be ra tified by the majority of the members a t the ti me of
i ts a dopti on.
Mus t contain a definite procedure for settling internal di s putes
Binding effect of the unions constitution and by-laws on union
member
on joi ning a union, the constitution a nd the by-laws become part
of the members contract of membership under which he a grees
to become bound by the Constitution a nd governing rules of the
uni on so far as i t not i nconsistent with controlling pri nci pl es of
l a w.
Q: Ma y a uni on be compel l ed to a dmi t a pers on a s a member?
A: No pers on has a n a bsolute ri ght to membership i n a tra de uni on;
genera l l y, a uni on ha s the ri ght to s el ect i ts members .
+ A uni on ca n s ue on behalf of i ts members for their i ndivi dual money
cl a ims. It would be a n i mpairment of the ri ght to s el f-orga ni za ti on
through the forma ti on of l a bor a s s oci a ti ons i f therea fter s uch
col l ective entities would be barred from i ns ti tuti ng a cti ons i n thei r
repres enta ti ve ca pa ci ty. (La Ca rl ota Suga r Centra l vs CIR, 1975)
+ An a cti on brought through a labor union on behal f of a number of
empl oyees should not be di s mi s s ed on the ground tha t the l a bor
uni on has l ost interest to pursue the case. The l abor union has not s o
grea t ma terial i nterest in the controversy as would prejudice it i n the
event of di s mi s s a l . (La Ca mpa na Food Products vs . CIR, 1969)
+ Wa i ver of the ri ght of the union member to reinstatement pursuant
to a n NLRC decisi on i s a pers ona l ri ght whi ch mus t be exerci s ed
pers ona l l y by the workers thems el ves . (Ja g vs NLRC, 1995)
Q: When ma y employees money cl a i ms a ga i ns t the empl oyer be
s ettl ed through the uni on?
A: i ndivi dual cons ent of the empl oyee concerned s houl d fi rs t be
procured. Beca us e pers ona l ri ght whi ch mus t be protected.
Right of union to sue in representative capacity/ Representative Suit
26
LABOR LAW REVIEW

(Art. 242, (e))
+ Liberty Manufacturing Workers Union vs. CFI (1972) Art 242
a uthorizes a union to file a representative suit for the benefit of i ts
members i n the i nteres t of a voi di ng a n otherwi s e cumbers ome
procedure of joining all union members in the complaint, even if they
number by the hundreds .
Grounds for Cancellation of Union Registration
(a ) Mi srepresentation, false statement or fra ud i n connecti on wi th
the a dopti on or ra ti fi ca ti on of the cons ti tuti on a nd by-l a ws or
a mendments thereto, the mi nutes of ra ti fi ca ti on a nd the l i s t of
members who took pa rt i n the ra ti fi ca ti on;
(b) Mi s representation, false s tatements or fra ud i n connecti on wi th
the el ection of officers, minutes of the election of officers, the l i s t of
voters .
(c) Vol unta ry di s s ol uti on by the members .
Q: Ma y the uni on ca ncel i ts regi s tra ti on?
A: Yes . Art. 239-A of LC provi des: the registration of a legitimate labor
orga nization may be ca ncelled by the organi za ti on i ts el f: Provi ded,
tha t a t l east 2/3 of i ts general membership votes, i n a meeti ng dul y
ca l led for that purpose to dissolve the organization: Provi ded, fu rther,
Tha t a n application to cancel registration is therea fter s ubmi tted by
the board of the organization, a ttested to by the pres i dent thereof.
+ Incl usion as union member employees outside the barga i ni ng uni t
not a ground to ca ncel the uni ons regi s tra ti on No. Under 245-A,
s uch members a re merel y a utoma ti ca l l y removed from the l i s t of
members hi p of s a i d uni on. To prevent di l a tory purpos es .
Q: Who ma y order cancellation of unions certificate of regis tra ti on?
A: Regi onal director (Chartered l ocal) or Bureau Director (federations,
na ti ona l or i ndus try uni ons a nd tra de uni on centers ) s ubject to
requi rements of notice a nd due process upon filing of an independent
compl a i nt or peti ti on for ca ncel l a ti on.
Effect of cancellation of registration
i t l os es ri ghts under the La bor Code.
Grounds for expulsion of union members
1. For ca us es s pecified i n the unions constitution a nd by-laws
provi ded the s a me a re not a rbi tra ry, unrea s ona bl e or
contra ry to l a w or public policy a nd the member i s accorded
a fa i r hearing. (Note: Mus t be for s ome jus t a nd s eri ous
grounds ).
2. Pa rti ci pa ti on i n a ny i rregul a ri ty i n the a pprova l of a
res olution authorizing payment of compensa ti on to uni on
offi cers .
Q: As of wha t ti me i s a n i ndi vi dua l cons i dered a n a mpl oyee for
purpos es of members hi p i n a l a bor uni on?
A: Art. 277 (c) of LC:
(c) Any empl oyee, whether empl oyed for a defi ni te peri od or not,
s ha ll, begi nni ng on hi s fi rs t da y of s ervi ce, be cons i dered a s a n
empl oyee for purpos es of members hi p i n a ny l a bor uni on. (As
a mended by Secti on 33, Republ i c Act No. 6715).
Union Loyalty
Loya l ty i s necessary to obta i n the ful l extent the uni ons
cohesion and i ntegri ty. As a n a ct of l oya l ty a uni on ma y
certa i nly require its members not to a ffiliate with any other
l a bor union a nd to consider i ts infringement as a reasonable
ca us e for separation. (Ang Tibay). Right to s elf-preservation.
Donations, Assistance, etc. given by foreign individuals, orgs and
entities for support of trade union activities
La bor orgs, employers or employers orgs cannot receive directly
or i ndirectly a ny donations, grants or other forms of a s s i s ta nce
gi ven by foreign i ndividual, organization or enti ty i n rel a ti on to
or i n s upport of tra de union activities wi thout prior permi s s i on
from the DOLE (A270).
Industrial Peace res pons i bi l i ty of both empl oyer a nd l a bor
orga ni za ti on
Labor Management Committees ma y be formed vol unta ri l y by
workers a nd employers for the purpose of promoting i ndustrial peace
(A277 (h), LC)
Visitorial Power of Secretary of Labor and Employment
ART. 274. Visitorial power. - The Secretary of La bor a nd Empl oyment
or hi s duly a uthorized representative is hereby empowered to i nquire
i nto the fi nancial a ctivities of legitimate labor organizations upon the
fi l ing of a complaint under oath and dul y s upported by the wri tten
cons ent of a t least twenty percent (20%) of the total members hi p of
the l a bor organi za ti on concerned a nd to exa mi ne thei r books of
a ccounts a nd other records to determi ne compl i a nce or non compl iance with the l aw a nd to prosecute any vi ol a ti ons of the l a w
a nd the union constitution and by-laws: Provi ded, Tha t s uch i nqui ry
or exa mi na ti on s ha l l not be conducted duri ng the s i xty (60) -da y
freedom period nor within the thirty (30) da ys i mmediately preceding
the da te of election of union offi ci a l s . (As a mended by Secti on 31,
Republ i c Act No. 6715, Ma rch 21, 1989).
Inter-union and Intra-union Conflicts Art. 226 provi des tha t BLR
a nd the La bor Relations Divisions i n the regional office ha ve ori gi na l
a nd excl us i ve juri s di cti on
GR: Rul e on exha us ti on of a dmi ni s tra ti ve remedi es .
XPN:
1. Vi ol a ti on of due proces s
2. No cha rge pri or to i ndefi ni te s us pens i on.
Powers of Bureau of Labor Relations
1. Ma y exerci s e vi s i tori a l power i n A274 i f the ma tters of
exa mination of uni on a ccounts i s endors ed to ti by the
DOLE Secreta ry.
2. Independent of delegation, BLR can conduct examination of
uni on accounts under Sec 16, Cha pter 4, Ti tle VII, Book IV of
Admi n Code s et policies, s tandards and procedures on the
exa mi na ti on of fi na nci a l records of a ccounts of l a bor
orga ni za ti ons .
3. Art.226 of LC, a l lows BLR to decide intra-union disputes.(ex.
Exa mi na ti on of the fi na nci a l records of the uni on)
Authority of BLR over union litigation expenses
Cl othed wi th a uthori ty to rul e, motu propi o, on the
propri ety of liti ga ti on expens es a l l eged l y i ncurred by a
uni on.
Procedure for registration of unions of government employees
27
LABOR LAW REVIEW

EO 180, Sec. 7 a nd 8
CHAPTER XII CERTIFICATION ELECTION

Certification Election
Refers to the process of determining through s ecret ba l l ot the
s ol e a nd excl us i ve repres enta ti ve of the empl oyees i n a n
a ppropriate bargaining unit for purposes of collective bargaining
or negoti a ti on.
Di fferent from Cons ent El ecti ons . Certi fi ca ti on El ecti ons i s
ordered by DOLE. Consent El ection is vol untary a greed upon by
the pa rties, with or without the i ntervention by the Department.
(Sec. 1 (h), Rul e I, Book V, IRR)
Nature of Certification Elections
fa i res t a nd mos t effecti ve wa y of determi ni ng whi ch l a bor
orga ni za ti on ca n trul y repres ent the worki ng force.
Not a l i tigation i n the s ens e i n whi ch thi s term i s commonl y
understood; it i s a mere i nves ti ga ti on of non -a dvers a ry fa ctfi nding character in which the Bureau of Labor Relations of DOLE
pl a ys the part of a disinterested investigator s eeki ng merel y to
a s certain the desi res of the empl oyees a s to ma tter of thei r
repres enta ti on.(Ai rl i ne Pi l ots As s oci a ti on v. CIR, 1977)
Who may file Petition for Certification Election?
A l egitimate labor organization (A257, LC), or a n empl oyer
when reques ted to ba rga i n col l ecti vel y (A258, LC).
Where Filed
Wi th the Regional Office which issued the peti ti oni ng uni ons
certi ficate of registrati on/certi fi ca te of crea ti on of cha rtered
l oca l .
Peti ti on s ha l l be hea rd a nd res ol ved by the Med -Arbi ter
When two or more petitions are filed wi th the s a me Regi ona l
Offi ce a utomatically consolidated wi th the fi rs t Med -Arbi ter
who fi rs t a cqui red juri s di cti on
When peti ti ons a re fi l ed i n di fferent Regi ona l Offi ces , the
Regi onal Office in which the fi rst petition i s fi l ed, excl udes a l l
others ; in which case the l atter will i ndors e the peti ti on to the
former for cons ol i da ti on. (Sec. 2, Rul e VIII, Book V, IR)
When may a certification election be automatically called?
1. Art. 257 of LC, a ny es tabli s hment where there i s no certi fi ed
ba rgaining a gent, a certification election shall be a utoma ti ca l l y
conducted by the Med-Arbiter upon the filing of a peti ti on by a
l egi ti ma te l a bor orga ni za ti on.
2. In a n organized established, when a verified petition questioning
the ma jority of the incumbent bargaining a gent if filed within the
60-da y period before the expiration of a col l ecti ve ba rga i ni ng
a greement, the Med-Arbi ter s ha l l a utoma ti ca l l y order a n
el ection by s ecret ballot when the verified petition is s upported
by the wri tten consent of a t least 25% of a l l empl oyees of the
ba rga i ni ng uni t.
Conditions when the Med-Arbiter may automatically order a
certification election by secret ballot in an organized establishment
1. Tha t a peti ti on ques ti oni ng the ma jori ty s ta tus of the
i ncumbent bargaining agent i f filed before the DOLE wi thi n
the 60-da y peri od;
2. Tha t s uch peti ti on i s veri fi ed;
3.
Tha t the petition is s upported by the written cons ent of a t

l ea s t 25% of a l l empl oyees i n the ba rga i ni ng uni t.
When may a petition for certification be filed?

***Sec 3, Rul e VIII, Book V, IR a s a mended by DOLE DO 40-03
Purpose of 1 year gi ve opportuni ty to negoti a te a nd pos s i bl y
concl ude a CBA.
Organized Establishment
It i s a n enterprise where there exists a recogni zed or certi fi ed
excl usive bargaini ng a gent. (Secti on 1 (II), Rul e I, Book V, IR)
Petition for certification election contains:
SECTION 4. Procedure. Upon receipt of the complaint, the Regional
Di rector shall immediately a ssign the case to a Med-Arbiter. The MedArbi ter s hall have twenty (20) working days within which to s ettl e or
deci de the ca se. The decision of the Med-Arbiter s hall s tate the fa cts
a nd the reliefs granted, if a ny. If the conflicts i nvolve a vi olation of the
ri ghts and conditions of the membership enumera ted under Arti cl e
242 of the Code, the Med-Arbiter shall order the cancell a ti on of the
regi stration certificate of the erri ng uni on or the expul s i on of the
gui lty pa rty from the union, whichever i s a ppropri a te. (Sec 4, Rul e
VIII, Book V, IR)
Local or Chapter of a Federation ma y fi l e a petition for certification
el ecti on provi ded i t i s a l egi ti ma te l a bor orga ni za ti on.
Mother Federation bei ng merely a n agent of the l oca l or cha pter,
ma y fi l e a petition for certification election i n behalf of the l atter who
i s considered the principal. The local or cha pter mus t however be a
l egitimate labor organization; i t cannot merely rely on the l egi ti ma te
s ta tus of the mother federa ti on (Progres s i ve Devel opment
Corpora ti on vs . DOLE Sec, 1992).
Q: Ma y a peti ti on for certi fi ca ti on el ecti on fi l ed by a na ti ona l
federa ti on for a l oca l cha pter not dul y regi s tered be gra nted?
A: No. It s hould be dismissed. Local Cha pter, a s pri nci pa l , mus t be
dul y regi s tered.
Q: Ma y a na ti onal union or federation or l ocal chapter file a peti ti on
for certi fi ca ti on el ecti on i n orga ni zed es ta bl i s hments ?
A: Yes . Art. 256 of the LC, provi des tha t i n the orga ni zed
es tablishment, the verified petition questioning the majority s tatus of
the i ncumbent bargaining agent may be filed by a ny l egitimate l a bor
orga nization includi ng a na ti ona l uni on or federa ti on whi ch ha s
a l ready i s s ue d a cha rter to i ts l oca l cha pter pa rti ci pa ti ng i n the
certi fication election or a l oca l cha pter whi ch ha s been i s s ued a
cha rter certificate by the national uni on or federa ti on, a nd tha t i n
ca s es where the petition is filed by the national union or federation, it
s ha ll not be required to discl os e the na mes of the l oca l cha pters
offi cers a nd members .
Reason why Certification Election outside freedom period
prohibited
To ens ure i ndus tri a l pea ce between the empl oyer a nd i ts
empl oyees duri ng the exi s tence of the CBA.
Peti ti on woul d be prema ture a nd s houl d be di s mi s s ed.
+ Certi fi ca ti on El ecti on i s the bes t a nd a ppropri a te mea ns of
a s certa i ni ng the wi l l of the empl oyees a s to thei r choi ce of a n
28
LABOR LAW REVIEW

excl usive bargaining repres enta ti ve. (George & Peter Li nes , Inc. v.
ALU, 1985)
+ Certi fi ca ti on El ecti on ma y s ti l l be ca l l ed by the Med -Arbi ter
a l though the 25% s tatutory requirement has not been complied with.
Med Arbi ter i s still empowered to order certification elections for the
purpose of ascertaining which of the contending labor organi za ti ons
s ha l l be the excl us i ve ba rga i ni ng a gent. The requirement then is
relevant only when it becomes mandatory to conduct a certification
elections. In a ll other i nstances, the discretion ought to be ordi na ri l y
exerci sed i n favor of a petition for certification elections . (Ca l i forni a
Ma nufa cturi ng Corp. v. Unders ecreta ry, 1992)
+ Art 251, LC, ma nda tes tha t a certi fi ca ti on el ecti on s ha l l
a utomatically be conducted by the Med-Arbiter upon the fi l i ng of a
peti tion by a l egitimate l abor union. Nothi ng i s s a i d tha t prohi bi ts
a utoma ti c conduct of certi fi ca ti on el ecti on.
Contract Bar Rule
Exi s tence of a collective bargaining a greement dul y fi l ed wi th
a nd s ubmitted to the DOLE, i n compliance with the requirements
a nd s tandards of the said office, between the empl oyer a nd a
l egitimate labor organization, bars a certification election i n the
col l ective ba rga i ni ng uni t except wi thi n 60 da ys pri or to the
expi ra ti on of the l i fe of s uch contra ct.
Purpos e: As s ure i ndus tri a l pea ce a nd s ta bi l i ty.
+ Contra ct ba r rule still a pplies if petition for certification el ecti on i s
fi l ed despite lapse of the formal effectivi ty of the CBA. The l a w s ti l l
cons iders the CBA the same as continuing i n force a nd effect unti l a
new CBA s hall have been va lidly executed. (Col egi o de Sa n Jua n de
Letra n v. As s oci a ti on of Empl oyees a nd Fa cul ty of Letra n, 2000)
+ No peti tion filed within the freedom peri od, empl oyer obl i ged to
conti nue recognizing the majority s tatus of the i ncumbent bargaining
nd
a gent. (Art. 256, 2 pa r., LC)
Deadlock Bar Rule
Thi s rule provides that a petition for certi fi ca ti on el ecti on ca n
onl y be entertained i f there i s no pending barga i ni ng dea dl ock
s ubmitted to conciliation or a rbitration or which has become the
s ubject of a va l i d noti ce of s tri ke or l ocko ut.
Purpos e: Ensure s tability i n the relationship of the workers a nd
the ma na gement.
Art. 232. Prohibition on certification election. The Burea u s ha l l not
entertain a ny petition for certification el ecti on or a ny other a cti on
whi ch may disturb the a dmi ni s tra ti on of dul y regi s tered exi s ti ng
col l ective bargaining a greements a ffecting the parti es except under
Arti cl es 253, 253-A a nd 256 of this Code. (As amended by Secti on 15,
Republ i c Act No. 6715, Ma rch 21, 1989)
+ No certi fication election may be held within one year from the date
of i s suance of a fi nal certification election result. (Sec. 3, Rule V, Book
V, IR)
Final Certification Election Result
- There was a n a ctual conduct of election, i .e. ball ots were ca s t a nd
there wa s a counti ng of votes .
Q: What kind of Collective Bargaining Agreement may bar a
certification election
The col l ecti ve ba rga i ni ng a greement mus t provi de for

s ubstantial benefits to the empl oyees . One whi ch s i mpl y
gra nts benefi ts a l rea dy enjoyed by the workers under
exi s ti ng l a ws (Sweethea rt Contra ct) wi l l not ba r a
certi fication election; otherwise, the workers ri ght to s eek
better terms a nd condi ti ons of empl oyment wi l l be
ema s cul a ted.
Nature of Certification Election not a l i ti ga ti on, not covered by

technical rules of evi dence. Pre s enta ti on of the Xerox copy of the
certi ficate of registration i nstead of the ori gi na l certi fi ca te i s not a
fa ta l defect and does not i n a ny wa y a ffect the uni ons l egi ti ma te
s ta tus .
Explain the role of employer in Certification Election
CE i s s ole concern of employees. The only exception i s where the
empl oyer has to file a petition for certification election beca us e
i t i s requested to bargain collectively. After thi s , he becomes a
mere by-s ta nder. No s ta ndi ng to ques ti on a CE.
Art. 258-A, LC
Appropriate Bargaining Unit
A group of employees of a given employer, comprised of all
or l ess than a ll of the entire body of employees , whi ch the
col l ective i nterest of a l l the empl oyees , cons i s tent wi th
equity to the employer, i ndicate the best suited to s erve the
reci proca l ri ghts a nd duti es of the pa rti es under the
col l ecti ve ba rga i ni ng provi s i ons of the l a w.
Factors in determining the appropriateness of a bargaining unit
1. Wi l l of the empl oyees (Gl obe Doctri ne);
2. Affi ni ty a nd uni ty of empl oyees i nteres ts ;
3. Pri or col l ecti ve ba rga i ni ng hi s tory; a nd
4. Empl oyment s ta tus , s uch a s tempora ry, s ea s ona l a nd
proba ti ona ry empl oyees .
Employer Unit
An a ppropriate bargaining unit consisting of ra nk -a nd-fi l e
empl oyees of the empl oyer. Term empl oyer i ndi ca tes
s cope of the uni t.
Ex. Tra ns porta ti on compa ny
Plant Unit vs. Craft Unit
Plant
Ba rga i ni ng
uni t
compos ed
of
empl oyees
in
a
pa rti cular pl a nt of the
compa ny. Ex. Cebu
Pl a nt, Il ocos Pl a nt
Geogra phi ca l
Craft
Ba rga i ni ng
uni t
compos ed
of
empl oyees of the
compa ny wi th the
s a me occupa ti on. Ex.
Pi l ots ,
ground
pers onnel
Occupa ti ona l
Jurisprudence:
+ Non-a cademic personnel have different i nteres ts wi th a ca demi c
pers onnel of school. Thus, not one a ppropriate orga ni za ti ona l uni t.
(UP vs . Ca l l eja , 1992)
+ One company engaged in business of poul try ra i s i ng, pi ggery a nd
a gri culture and opera ti ng s uperma rkets . Agri cul tura l empl oyees
29
LABOR LAW REVIEW

s houl d be i n a s epa ra te uni t from thos e empl oyees i n the
s uperma rkets . (BELYCA Corp. v. Ca l l eja , 1988)
+ Empl oyees in two plants in one company performing s a me l i ne of
work ma y form a single bargaining unit. (SMC Supervi sors and Exempt
Uni on v. La gues ma , 1997)
+ Foremen (are supervisory) a nd legal s ecretaries (a re confi denti a l )
ma y not be members of the ra nk-a nd-fi l e ba rga i ni ng uni t. Pi er 8
Arra s tre a nd Steve dori ng vs . Rol da n-Confes s or, 1995)
Purpose why formation of several bargaining units in one company
recognized: To s i mplify and expedite the collective bargaining process
a nd to fa cilitate the execution of a collective bargaini ng a greement.
Empl oyees with different interests may ma ke col l ecti ve ba rga i ni ng
proces s tedi ous a nd cumbers ome.
One Union, One Company Policy
Empl oyees ha ve one yet potent voi ce i n CB. Empl oyees
ba rga i ni ng power i s s trengthened thereby.
Exceptions: For compelling reasons
1. Ri ght to empl oyees to form uni ons or a s s oci a ti ons for
purpos es not contra ry to l a w
2. Ri ght to s el f-orga ni za ti on
3. Ri ght to enter i nto col l ecti ve ba rga i ni ng
Who are entitled to vote in a certification election
All employees i n the a ppropri a te ba rga i ni ng uni t a re
enti tled to vote in a certification election. Members or not
of a l a bor orga ni za ti on.
+ Pa yrol l must be uti l i zed to determi ne the number a nd el i gi bl e
voters . In i ts a bs ence, SSS l i s t ma y be us ed.
Vote necessary to make a union win in a certification election
Ma jori ty of the va l i d votes ca s t. Spoi l ed ba l l ots a re not
counted i n determi ni ng the ma jori ty.
However, to have a VALID election, a t least a majority of al l
el i gi bl e voters i n the uni t mus t vote.
Run-off Election
when a n el ecti on whi ch provi des for 3 or more choi ces
res ults in no choice receiving a majori ty of the va l i d votes
ca s t, a run-off election shall be conducted between the 2
l a bor uni ons recei vi ng the hi ghes t number of votes ;
provi ded that the total number of votes for all contendi ng
uni ons i s a t l ea s t 50% of the number of votes ca s t.
Direct Certification
No l onger allowed as a method of s el ecti ng a ba rga i ni ng
a gent. Even if no opposition to a peti ti on for certi fi ca ti on
el ecti on, there ca n be no di rect certi fi ca ti on.
Requirements for voluntary recognition
SECTION 1. Cha l lenging of votes. (a ) Any vote ma y be cha l l enged
for a va l id ca use by a ny observer before the voter has depos i ted hi s
vote i n the ba l l ot box.
(b) If a ballot i s challenged on va lid grounds, the Repres enta ti on
Offi cer s hall s egregate it from the unchallenged ballots a nd s ea l i t i n
a n envel ope. The Repres enta ti on Offi cer s ha l l i ndi ca te on the
envelope the name of the challenger a nd the ground of the challenge.
SECTION 2. Run-off election. When an election which provi des for

three (3) or more choices results in no choice receiving a ma jori ty of
the va l id votes ca s t, a nd no objecti ons or cha l l enges ha ve been
pres ented whi ch i f s us ta i ned mi ght cha nge the res ul ts , the
representation officer s hall motu proprio conduct a run -off el ecti on
wi thin five (5) ca lendar days from the close of the electi on between
the l a bor unions receivi ng the two highest number of votes; Provided,
tha t the total number of votes for all contendi ng uni ons i s a t l ea s t
fi fty (50%) percent of the number of votes ca s t.
The ba llots in the run-off election s ha l l provi de for two choi ces
recei ving the highest and the s econd hi ghes t number of the votes
ca s t. (Sec 1 a nd 2 Rul e VII, Book V, IR)
Effect of Voluntary Recognition
The recognized labor union shall enjoy the rights, privileges a nd
obl igations of a n existing bargaining a gent of a ll the empl oyees
i n the ba rga i ni ng uni t.
Entry of vol untary recognition s hall bar the filing of a petition for
certi fication election by a ny labor organization for a peri od of 1
yea r from the da te of entry of vol unta ry recogni ti on. (Sec. 4,
Rul e VII, Book V, IR)
Q: Is a collective bargaining a greement entered i nto by a nd between
the employer a nd the union representing majority of the empl oyees
va l i d and binding on all the employees of the said employer, whether
or not they a re uni on members ? Why?
A: The a greement is valid a nd binding on all ra nk-and-file empl oyees
i n the a ppropriate bargaining unit, whether or not they belong to the
uni on concl udi ng the a greement. They cons ti tute the uni t
represented by the union. They a re deemed the pri nci pa l a nd they
a re bound by the a cti ons of thei r a gents .
Selection of the sole and exclusive representatives of government
employees (EO 180, Sec. 9-12)
Sec. 9. The a ppropriate organizational unit shall be the employers unit
cons isting of ra nk-and-file employees unless circumstances otherwise
requi re.
Sec. 10. The dul y regi s tered empl oyees ' orga ni za ti on ha vi ng the
s upport of the ma jori ty of the empl oyees i n the a ppropri a te
orga nizational unit s hall be des i gna ted a s the s ol e a nd excl us i ve
repres enta ti ve of the empl oyees .
Sec. 11. A dul y registered employees' organization s hall be a ccorded
vol untary recogni ti on upon a s howi ng tha t no other empl oyees '
orga nization is registered or i s seeking registration, based on records
of the Bureau of La bor Relations, and that the said organizations ha s
the ma jori ty s upport of the ra nk-a nd-fi l e empl oyees i n the
orga ni za ti ona l uni t.
Sec. 12. Where there are two or more dul y regi s tered empl oyees '
orga nizations in the a ppropriate organizati ona l uni t, the Burea u of
La bor Rel a ti ons s ha l l , upon peti ti on, order the conduct of a
certi fication election and sha l l certi fy the wi nner a s the excl us i ve
representative of the ra nk-and-file employees i n s a i d orga ni za ti on
uni t.
Q: Does BLR have jurisdiction over a petition for CE fi led by a union of
empl oyees of the Court of Appea l s ?
A: Yes . The BLR has the expertise, machinery a nd experi ence i n thi s
pa rti cular a ctivi ty. Ci vil Service Commission, has none of thes e. And
the s eparation of powers does not requi re the Supreme Court to
s upervise the details of s el f-orga ni za ti on a cti vi ti es i n the courts .
(ACAE va . Ferrer-Ca l l eja , 1991)
30
LABOR LAW REVIEW

+ Orders of Med-Arbiter appealable directly to the Secretary of La bor
a nd Employment on the ground that the rules and regulations for the
conduct of the el ecti on ha ve been vi ol a ted. (Art. 259, LC)
Deci sion of the Secretary of DOLE on appeal s ha l l be fi na l
a nd executory. Upon finality, the entire records of the ca s e
s ha ll be remanded to the office of origin for implementation
of the Decision, unless restrained by a n a ppropri a te court.
Remedy to decision of Secretary: MR (preconditi on to a ny
s ubsequent remedy), then seas ona bl y fi l e a s peci a l ci vi l
a cti on for certi ora ri under Rul e 65, ROC. No, MR fi l ed
s ea s ona bl e, Secreta rys deci s i on becomes fi na l a nd
executory. (SMC QUArry 2 Workers vs . Ti tan Megabags Ind.
Inc., 2004)
CHAPTER XIII COLLECTIVE BARGAINING AND

COLLECTIVE BARGAINING AGREEMENTS
Collective Bargaining
Proces s of negotiation between an employer or empl oyers
a nd empl oyees orga ni za ti on or uni on to rea ch a n
a greement on the terms and conditions of employment for
a s peci fi ed peri od.
Covers the enti re ra nge of orga ni za ed rel a ti ons hi ps
between employers a nd employees represented by unions ;
thi s includes the negotiation, administration, interpretation
or a ppl i ca ti on of the l a bor contra ct.
Empl oyment Contra ct

Es ta bl i s hes
E-E
rel a ti ons hi p
Between the employer
a n i ndividual employee
Ends or termi na tes

when the peri od fi xed
therei n expi res
CBA
Pres uppos es
the
exi s tence of s uch
rel a ti ons hi p
Between employer and
a
uni on
in
repres enta ti on of a
group of workers .
Conti nues
to
be
bi ndi ng a nd effecti ve
a s l ong as no new CBA
i s entered i nto
Important Aims of CB
a . to es ta blish i ndustrial peace by a nabling ca pital and labor to
res olve their disputes a nd controversies on terms mutua l l y
a ccepta bl e a nd s a ti s fa ctory to thems el ves .
b. To enhance industrial efficiency through s peedy resol uti on
of l a bor disputes concerning the fi xi ng of wa ges , worki ng
hours and other terms and conditions of empl oyment, the
execution of contracts incorporating such agreements, a nd
the a djus tment or s ettl ement of a ny gri eva nce a ri s i ng
thereunder.
c. To es tablish benefits for l abor higher or greater than thos e
fi xed by l a w.
Various Aspects of CB
a . duty of the pa rti es to ba rga i n, negoti a te on propos a l s
concerni ng wa ges , worki ng hours a nd other terms a nd
condi ti ons of empl oyment;
b. duty of the pa rties to a dhere to the statutory s ta nda rds of
good fa i th, promptnes s a nd expedi ti ous a cti ons ;
c. duty to refra in from unilateral changes concerning ma tters
s ubject to ba rga i ni ng; a nd
d. In ca s e there is an existing coll ecti ve contra ct, the duty to
a dhere faithfully to i ts terms a nd not termi na te or modi fy
the s a me duri ng i ts peri od of effecti vi ty.
Collective Bargaining Agreement

Negoti a ted contra ct between a l egi ti ma te l a bor
orga nization and the employer concerning wages, hours of
work a nd all other terms a nd conditions of employment in a
ba rga i ni ng uni t, i ncl udi ng ma nda tory provi s i ons for
gri eva nce a nd a rbi tra ti on ma chi neri es .
Covers whole employment relationship and prescri bes the
ri ghts a nd duti es of the pa rti es .
If terms of a CBA a re cl ea r a nd ha ve no doubt upon the
i ntention of the contracting parties, the litera l mea ni ng of
the provi s i ons s ha l l preva i l . Cons trued l i bera l l y.
Duty to bargain collectively

Art. 252. Meaning of duty to bargain collectively. The duty to bargain
col l ectively means the performance of a mutual obl i ga ti on to meet
a nd convene promptly a nd expeditiously i n good faith for the purpose
of negotiating a n agreement with res pect to wa ges , hours of work
a nd a l l other terms a nd condi ti ons of empl oyment i ncl udi ng
proposals for a djusting any gri evances or questions arising under such
a greement a nd executing a contract i ncorporating s uch a greements if
requested by either party but such duty does not compel any party to
a gree to a propos a l or to ma ke a ny conces s i on.
Art. 253. Duty to bargain collectively when there exists a collective
bargaining agreement. When there i s a col l ecti ve ba rga i ni ng
a greement, the duty to ba rga i n col l ecti vel y s ha l l a l s o mea n tha t
nei ther party s hall terminate nor modify s uch a greement duri ng i ts
l i feti me. However, ei ther pa rty ca n s erve a wri tten noti ce to
termi nate or modify the agreement at l east sixty (60) da ys prior to i ts
expi ration date. It s hall be the duty of both parties to keep the s tatus
quo a nd to continue in full force and effect the terms a nd condi ti ons
of the existing a greement duri ng the 60-da y peri od a nd/or unti l a
new a greement i s rea ched by the pa rti es .
Employment Contract vs. CBA
Most important factor that will assure free Collective Bargaining

31
LABOR LAW REVIEW

-
Free a nd genui ne CB ca n exi s t onl y i f the pa rti es a re of

equal s trength. If one is dominated by a nother it becomes a
fa rce.
Multi-employer Bargaining
Sec5-7, Rul e XVI, Book V, IR, a s a mended by DO 40-03
Effect of vi ol a ti on of duty to ba rga i n
Cons ti tutes unfa i r l a bor pra cti ce on the pa rt of the
empl oyer (A248 (g)) or the labor organiza ti on s el ected a s
repres enta ti ve of the empl oyees (A249(c))
Collective Bargaining is a Continuous Process
CB does not end wi th the executi on of a col l ecti ve
ba rgaining a greement. Also i ncludes grieva nce procedure.
(Republ i c Sa vi ngs Ba nk v. CIR, 1967)
Usual Provisions, Stipulations, or clauses in a CBA
1. Defi ni ti on of Ba rga i ni ng Uni t
2. Uni on Security Cl ause i ntended to maintai n the s trength
of the union during the life of the agreementand safegua rd
i t a gainst the perfidy or fi ckleness of its own members a nd
i ncurs i ons of empl oyer.
3. Check-off Provi s i on deducti on of wa ges
4. Ma na gement Preroga ti ves Cl a us e ri ghts of compa ny
5. Economic Benefits i ncrea s es , va ca ti on a nd s i ck l ea ves
6. Provi s i on on Admi ni s tra ti on of Agreement
7. Vol unta ry Arbi tra ti on Cl a us e (A260)
8. No Stri ke-No Lockout Cl a us e duri ng the term of CBA
9. Compl etenes s of Agreement
10. Provi s ions on Family Pl anning, Pa rticipati on i n s ports , etc.
11. Provi s i on a ga i ns t drug us e i n workpl a ce
12. Dura ti on of Agreement
Closed shop Agreement Agreement whereby empl oyer bi nds
hi mself to hire onl y me mbers of the contra cti ng uni on who mus t
conti nue to remain members of the union i n good s ta ndi ng for the
dura tion of the agreement as a condition for continued employment.
(Art. 248 (e))
Union Shop Agreement One whereby the employer is permitted to
empl oy a non-union worker, but to retain empl oyment s uch worker
mus t become a union member a fter s ome period a nd ma i nta i n hi s
members hi p therei n i n good s ta ndi ng for the dura ti on of the
a greement.
Ma i ntenance of membership clause does not requi re non members to join the union but provides that those who do joi n mos t
ma i ntain their membership for the dura ti on of the uni on contra ct,
under the pena l ty of di s cha rge.
Members hi p
condi ti on
is
a
for
a nd
Preferential Shop Agreement recognizes the ri ght of the employer to

s elect his employees but requires him to give preference to members
of the contra cti ng uni on who a re qua l i fi ed.
Procedure in Collective Bargaining

Art 250, LC
Closed-Shop
Empl oyer ca nt hi re
worker who i s not a
member
of
the
contra cti ng uni on
empl oyment
retenti on
Union-shop
Empl oyer ma y hi re
worker who i s not a
member, but employee
mus t
become
a
member a fter
Members hi p i s a
condi tion for retention
+ A uni on s hop clause in a CBA i s enforeceable and opera ti ve even i f

not yet certi fied (registered) by the BLR. Becomes effective a s to the
pa rti es (Liberty Fl our Mi lls Empl oyees v. Li berty Fl our Mi l l s , 1989).
Importance of Union Security Clause
Intended to s trengthen the contra cti ng uni on a nd to
protect i t from the fi ckl enes s or perfi dy of i ts own
members . Wi thout s uch s a fegua rd, group s ol i da ri ty
becomes uncerta i nty. (Ca l tex Refi nery EE As s oc. v.
Bri l l i a ntes , 1997)
+ Agency fee may be collected from those non-members who benefi t
from the CBA. No need for a uthori za ti on
Substitutionary Doctrine
- Even duri ng the effectivity of a CBA executed between the Employer
a nd the employees thru their a gent, the employees can cha nge s a i d
a gent but the contract continues to bi nd them up to i ts expi ra ti on
da te. They ma y ba rga i n for the s horteni ng of the peri od.
- Serves a s a compromi s e s ol uti on when there occurs a s h i ft i n
empl oyees union allegiance a fter the executi on of the ba rga i ni ng
contra ct wi th thei r empl oyer.
Q: Under the doctri ne, i s new a gent bound by the pers ona l
underta ki ngs of the former a gent?
A: No. It woul d vi ol a te ma xi m of res i nter a l i os a cta .
+ CBA s hould be submitted to BLR for registration within 30 da ys from
executi on thereof. (Art.231)
+ Empl oyees who received benefits, ca nnot claim i nvalidity of the CBA
a fter (Pl a nters Products vs . NLRC, 1989)
Freedom Period
It i s the 60-day period immediately preceding the expiration
of the representation period of 5 years i n the CBA. A CE ca n
be hel d i n thi s peri od.
+ At expiration, provisions be maintained until there is new CBA
Art. 253. Duty to bargain collectively when there exists a collective
bargaining agreement. When there i s a col l ecti ve ba rga i ni ng
a greement, the duty to ba rga i n col l ecti vel y s ha l l a l s o mea n tha t
nei ther party s hall terminate nor modify s uch a greement duri ng i ts
l i feti me. However, ei ther pa rty ca n s erve a wri tten noti ce to
termi nate or modify the agreement at l east sixty (60) da ys prior to i ts
expi ration date. It s hall be the duty of both parties to keep the s tatus
quo a nd to continue in full force and effect the terms a nd condi ti ons
of the existing a greement duri ng the 60-da y peri od a nd/or unti l a
new a greement i s rea ched by the pa rti es .
Q: IS renegoti a ti on of the CBA duri ng i ts l i feti me requi red?
A: Art. 253-A. Terms of a collective bargaining agreement. Any
Col l ective Bargaining Agreement that the parties may enter i nto shall,
i ns ofar as the representation a spect i s concerned, be for a term of
32
LABOR LAW REVIEW

fi ve (5) yea rs. No peti ti on ques ti oni ng the ma jori ty s ta tus of the
i ncumbent bargaining agent s hall be entertained a nd no certifica ti on
el ecti on s ha l l be conducted by the Depa rtment of La bor a nd
Empl oyment outside of the sixty-day period immediatel y before the
da te of expiry of s uch fi ve -yea r term of the Col l ecti ve Ba rga i ni ng
Agreement. Al l other provi s i ons of the Col l ecti ve Ba rga i ni ng
Agreement shall be renegotiated not later than three (3) yea rs a fter
i ts executi on. Any a greement on s uch other provi s i ons of the
Col l ective Bargaining Agreement entered into wi thi n s i x (6) months
from the da te of expiry of the term of such other provisions a s fi xed
i n s uch Collective Bargaini ng Agreement, s ha l l retroa ct to the da y
i mmediately following such date. If a ny s uch a greement i s entered
i nto beyond six months, the parties s ha l l a gree on the dura ti on of
retroa ctivity thereof. In case of a deadlock i n the renegotiation of the
Col l ective Bargaining Agreement, the parties may exercise their ri ghts
under this Code. (As a mended by Section 21, Republ i c Act No. 6715,
Ma rch 21, 1989)
+ Renegotiated contract may be for a period exceeding the remainder
of the ori gi na l 5-yea r term i n the CBA
Effect of
Art253-A
-
unjustified refusal to renegotiate the CBA as required by

of the LC.
Unfa i r La bor Pra cti ce
Ha vi ng vi ol a ted i ts duty to ba rga i n col l ecti vel y, l os t i ts
s ta tutory ri ght to negotiate or renegoti a te the terms a nd
condi tions of the draft CBA proposed by the union (General
Mi l l i ng Corpora ti on v. CA, 2004)
+ Pa rti es may a gree on the s us pens i on of thei r CBA for a certa i n

peri od
Purpos e: promote i ndus tri a l Sta bi l i ty a nd predi cta bi l i ty.
+ A CBA i s a contractual obligation di s ti nct from thos e obl i ga ti ons
i mpos ed by l a w.
proxi ma te rel a ti on of empl oyers a nd empl oyees . (Art.

212(l ), LC)
Slowdown
It i s a s tri ke on the i ns ta l l ment pl a n. It i s a wi l l ful
repudiation to work by concerted action of workers for the
purpose of restricting the output of the employer i n relation
to a l a bor dispute; i t is an activity by which workers, without
a compl ete s toppage of work, reta rd producti on or thei r
performance of duties and function to compel management
to gra nt thei r dema nds .
Common concerted activities
1. Stri ke tempora ry s toppa ge of work a s a res ul t of a n
i ndus tri a l or l a bor di s pute.
2. Pi cketi ng the ma rchi ng to a nd fro a t the empl oyers
premi ses, usually a ccompanied by the di s pl a y of pl a ca rds
a nd other signs making known the facts involved in a l a bor
di s pute.
3. Boycotts the concerted refusal to patronize a n employers
goods or s ervices a nd to persua de others to l i ke refus a l .
Boycotts are lawful
- As l ong a s they a ct through pea ceful a nd hones t mea ns
Statutory Recognition of workers right to strike and employers
right to lockout.
The Secreta ry of La bor a nd Empl oyment, the Commi s s i on or the
vol untary a rbitrator shall decide or resolve the di s pute, a s the ca s e
ma y be. The decision of the Pres i dent, the Secreta ry of La bor a nd
Empl oyment, the Commission or the voluntary a rbitrator shall be final
a nd executory ten (10) ca l enda r da ys a fter recei pt thereof by the
pa rti es. (As amended by Section 27, Republic Act No. 6715, Ma rch 21,
1989)
+ Ri ght to Strike or to Lockout NOT Absolute subject to police power.
Q: Ma y the pa rties be required by the Sec of DOLE to execute a CBA

embodyi ng terms a nd condi ti ons whi ch he ma y determi ne?
A: Yes . This is pursuant to the power of compulsory a rbitration vested
i n the Sec. by Arti cle 263(g) LC, to s ettle a labor dispute i n an indus try
i ndi s pens a bl e to the na ti ona l i nteres t.
CHAPTER XIV STRIKES AND LOCKOUTS

Strike
-
temporary s toppa ge of work by the concerted a cti on of

empl oyees as a result of an industrial or l abor di s pute (Art.
212(o), LC)
Mus t be purs ued wi thi n the bounds of l a w.
Who may declare a strike or lockout

Stri ke a ny certi fied or duly recognized ba rga i ni ng repres enta ti ve
ma y decl a re a s tri ke i n ca s e of ba rga i ni ng dea dl ocks a nd ULP.
- i n the a bsence of a duly recognized or certified bargaini ng
representative, any LLO i n the establis hment ma y decl a re a s tri ke.
Lockout the empl oyer i n the s a me ca s es
National Conciliation and Mediation Board
Body crea ted under EO 126, on Ja nua ry 30, 1987, whi ch
a bs orbed the conci l i a ti on, medi a ti on a nd vol unta ry
a rbi tra ti on of the BLR.
Lockout
temporary refusal of an employer to furnish work as a result
of a n i ndus tri a l or l a bor di s pute.
Grounds for Strike

1. Ba rga i ni ng Dea dl ocks
2. ULP
Scope of term Labor or Industrial Dispute

Any controvers y or ma tter concerning terms or condi ti ons
of employment or the a s s oci a ti on or repres enta ti on or
pers ons i n negoti a ti ng, fi xi ng, ma i nta i ni ng, cha ngi ng or
a rra ngi ng the terms a nd condi ti ons of empl oyment,
rega rdless of whether or not the di s puta nts s ta nd i n the
+ Vi olation of CBA, except flagrant and/or malicious refusal to com ply

wi th i ts economi c provi s i ons , s ha l l not be cons i dered ULP.
+ No s tri ke or l ockout
1. Grounds involving i nter-uni on a nd i ntra -uni on di s putes
2. Wi thout fi rs t ha vi ng fi l ed a noti ce of s tri ke or l ockout
3. Wi thout the necessary s trike or l ockout vote ha vi ng been
obta i ned a nd reported to the Boa rd
4. After a s s umpti on of Secreta ry of Juri s di cti on
33
LABOR LAW REVIEW

5.
6.
After Certi fi ca ti on or s ubmi s s i on of the di s pute to

compul s ory or vol unta ry a rbi tra ti on
Duri ng pendency of ca ses involving the s a me grounds for
the s tri ke or l ockout. (IR)
Deadlock in Bargaining
a ri s es when there i s a n i mpa s s e whi ch pres uppos es
rea s onable effort a t good faith bargai ni ng whi ch, des pi te
nobl e intentions, does not conclude i n agreement between
the pa rti es .
+ Thus , no deadlock if employer refuses to bargain i n th e fi rs t pl a ce
Requisites of Lawful Strike or Lockout
1. mus t be based on serious or s ubstantial grounds i nvol vi ng
ba rgaining deadlock a nd/or ULP a nd theses ha ve not been
brought to vol unta ry or compul s ory a rbi tra ti on.
2. Noti ce of strike or l ockout, as the case may be, must be filed
wi th the NCMB a t least 30 days (bargaining deadlocks) or 15
da ys (ULP) before the i ntended da te thereof.
3. Noti ce of s tri ke mus t be fi l ed by the certi fi ed or dul y
recognized bargaining rep but i n ca s es of ULP a nd i n the
a bs ence of a dul y certi fi ed or recogni zed ba rga i ni ng
representative, the notice may be filed by a ny LLO i n behalf
of i ts members .
4. deci sion to s trike mus t be a pproved by a ma jori ty of the
tota l union membership in the bargai ni ng uni t concerned
obta ined by s ecret ballot i n meetings or referenda; a nd the
deci sion to declare a l ockout must be approved by a ma j of
the board of directors of the employer corporation or of the
pa rtners i n a partners hi p obta i ned by s ecret ba l l ot i n a
meeti ng ca l l ed for the purpos e.
5. A report of the s trike must be filed with the NCMB a t least 7
da ys before the i ntended s tri ke or l ockout.
6. the cooling off period of 30 da ys and 15 days has lapsed and
the di spute remains unsettled despite efforts a t medi a ti on
a nd conciliation. XPN: i n union busting, 15 day period does
not a ppl y. Uni on ma y ta ke a cti on i mmedi a tel y.
7. Uni on declaring the strike or the empl oyer decl a ri ng the
l ockout must have been complied with i ts duty to ba rga i n
col l ecti vel y.
8. the s tri ke mus t be s ta ged a nd conducted by pea ceful
mea ns .
Importance of Strike Voting and Prior Notice of the date to the
NCMB
Noti ce - To give NCMB a chance to s upervise the s trike vote
i f i t deci des to exerci s e power of s upervi s i on
Noti ce - To allow NCMB to conduct conference to expl ore
pos s i bi l i ti es of a mi ca bl e s ettl ement
Stri ke Vote to ensure that the decisi on to s tri ke broa dl y
res ts with the majority of the uni on members i n genera l
a nd not wi th a mere mi nori ty, a nd a t the s a me ti me
di s coura ge wi l dca t s tri kes , uni on bos s i s m a nd even
corrupti on.
Cool i ng-off peri od des i gned to a fford pa rti es the
opportuni ty to a mi ca bl y res ol ve the di s pute wi th the
a s s i s ta nce of the NCMB conci l i a tor/medi a tor.
7-da y Stri ke Ban i ntended to give the DOLE a n opportunity
to veri fy whether the projected s tri ke rea l l y ca rri es the
i mpri ma tur of the ma jori ty of the uni on members .
+ Capitol Medical Center v. NLRC, 2005: Importance of notice:

a . i nform NCMB of the i ntent of the union to conduct a s tri ke
vote,
b. gi ve the NCMB a mpl e ti me to deci de on whether or not
there i s a need to s upervise the conduct of the s tri ke vote
to prevent a ny a cts of vi ol ence a nd/or i rregul a ri ti es
a ttenda nt thereto; a nd
c. s hould the NCMB decide on its own ini ti a ti ve or upon the
request of a n interested party i ncl udi ng the empl oyer, to
s upervise the s trike vote, to give i t ampl e ti me to prepa re
for the deployment of the requisi te pers onnel , i ncl udi ng
pea ce offi cers i f need be.
Contents
1.
2.
3.
of Notice to strike or lockout

na mes a nd a ddres s es of empl oyer a nd uni on i nvol ved
na ture of the i ndus try to whi ch the empl oyer bel ongs
number of union members a nd workers i n the ba rga i ni ng
uni t
4. bri ef s ta tement of a l l pendi ng l a bor di s putes
5. BD - unresolved issues , wri tten propos a l s of the uni on,
counter-proposals of the employer a nd proof of request for
conference to s ettl e di fferences
6. ULP s ta te acts complained of and efforts taken to res ol ve
them
+ If noti ce does not conform wi th the requi rements the regi ona l
bra nch of the NCMB s ha l l i nform concerned pa rty.
Duty of NCMB
to exert a ll efforts at mediation anc concilia ti on to ena bl e
the pa rti es to s ettl e the di s putes a mi ca bl y.
Cooling-off and Waiting Periods are mandatory
Cool i ng- off peri od i ntended to provi de opportuni ty for
mediation and conciliation. Waiting peri od i s i ntended to
provi de opportunity to the members of the uni on or the
ma nagement to take the a ppropri a te remedy i n ca s e of
s tri ke or l ockout vote i s fa l s e or i na ccura te, a nd the
i ntended strike or lockout turns out to be merely the idea of
a mi nority group. Thus, mandatory. (Gold Ci ty Integrated vs.
NLRC; Na ti ona l Federa ti on of La bor Uni ons vs . NLRC)
Union Busting may dispense with the cooling-off period
1. the di s mi s s a l from empl oyment of the uni on offi cers dul y
el ected i n accordance with the union constituti on a nd by-l a ws
2. exi s tence of the union must be threatened by s uch di s mi s s a l .
+ Promotion not dismissal (PILTEA vs. NLRC, 2007)
Improved Offer or Reduced Offer Ba l l oti ng
Art. 265. Improved offer balloting. In a n effort to s ettle a s tri ke, the
Department of La bor a nd Employment shall conduct a referendum by
s ecret ballot on the improved offer of the employer on or before the
30th da y of the s trike. When a t least a majority of the union members
vote to a ccept the i mproved offer the s tri ki ng workers s ha l l
i mmedi a tel y return to work a nd the empl oyer s ha l l thereupon
rea dmi t them upon the s i gni ng of the a greement.
In ca se of a l ockout, the Depa rtment of La bor a nd Empl oyment
s ha ll also conduct a referendum by s ecret bal l oti ng on the reduced
offer of the union on or before the 30th day of the l ockout. When a t
l east a majority of the board of directors or trustees or the pa rtners
34
LABOR LAW REVIEW

hol ding the controlling interest i n the case of a pa rtners hi p vote to
a ccept the reduced offer, the workers s ha l l i mmedi a tel y return to
work a nd the empl oyer s ha l l thereupon rea dmi t them upon the
s i gning of the agreement. (Incorporated by Secti on 28, Republ i c Act
No. 6715, Ma rch 21, 1989)
+ Strikes attended with violence
If vi ol ence sporadic a nd not pervasive, liability i s indi vi dua l
a nd not collective. (Feati Facul ty Cl ub v. Fa eti Uni v., 1974)
If s tri ke wi th force, coercion, intimidation, vi olence a nd the
us e of slanderous and obscene langua ge or epi thets , i t i s
i l l ega l .
If vi ol ence on both sides, s trike ca nnot be declared i l l ega l .
Pervasive and Widespread Violence in Strike Empl oyees hi ja cked
29 bus es which res ul ted i n i njuri es a nd pa ni c to empl oyees a nd
commuters, barricading of the bus terminal; puncturing ti res; theft of
expensive fuel injections worth 30K ea ch; throwing of Molotov bombs
i n the company compound. (First Ci ty Interlink Tra nsportation Co. vs .
Confes s or, 1997)
Union Recognition Strike
Ca l cul a ted to compel the empl oyer to recogni ze ones
uni on, a nd no the other contendi ng group, a s the
empl oyees bargaining representative despi te the s tri ki ng
uni ons doubtful ma jori ty s ta tus to meri t vol unta ry
recognition and lack of formal certification as the excl us i ve
repres enta ti ve i n the ba rga i ni ng uni t. (As s oc. of
Independent Uni ons of the Phi l s . V. NLRC, 1999)
Strike in Good Faith may be legal
when the union believed that the company committed ULP
a nd the ci rcumstances warranted s uch belief in good fa i th,
even i f ULP l ater proved non-existent. (PICEWO v. Peopl es
i ndus tri a l a nd Commerci a l Corpora ti on, 1982)
Strike in Good Faith But without prior filing of notice of strike and
strike vote not legal RA 6715 ma kes thes e requi rements
ma nda tory.
Cl a i ms for 13th month pa y not cons ti tuti ve of ULP ba s ed on the
Impl ementi ng Rul es of PD 851. Nonpa yment of 13 th month pa y
cons i dered money cl a i ms ca s es .
Pari-Delicto Rule applicable in strikes and lockouts
When the parties, the employees having s taged a n i l l ega l
s tri ke a nd the employer having declared a n illegal l ockout
s uch s ituation warrants the restora ti on of the s ta tus quo
a nte a nd bri ngi ng the pa rti es ba ck to thei r res pecti ve
pos itions before the i llegal s trike a nd i llegal l ockout through
the rei nstatement, without ba ckwa ges of the di s mi s s ed
empl oyees (Phi l -Inter fa s hi on v. NLRC, 1982).
Effect of Illegal Strike Upon employment status
To Offi cers - Officer who participates ma y be decl a red to ha ve l os t
thei r empl oyment s ta tus (Art. 264)
To Uni on members not officers Does not lose empl oyment s ta tus
unl ess he commits illegal acts i n the cours e of the s tri ke. They a re
mere followers. This must be establis hed by s ubs ta nti a l evi dence.
+ If employer refuses to rei ns ta te s tri kers des pi te order of DOLE,

Stri kers entitled to full backwages from the date of the return to work
order unti l rei ns ta tement.
+ Arti cl e 1704 i s the ba s i s of a comp a nys a cti on for da ma ges i f
beca us e of i l l ega l s tri ke i n vi ol a ti on of CBA
Arti cl e 1704. In collective bargaining, the labor union or members of
the board or committee signing the contract s hall be l i a bl e for non ful fi l l ment thereof.
Illegal Strikes
Stri ke staged despi te no s tri ke no l ockout cl a us e i n CBA a nd
a bs ence of ULP
Vi ol a tes 263 a nd 264
Premature Strike
s tri ke declared on the basis of grieva nces whi ch ha ve not been
s ubmitted to the grieva nce committee as stipul a ted i n the CBA
of the pa rties i s prema ture a nd i l l ega l . (Phi l com Empl oyees
Uni on vs . Phi l i ppi ne Gl oba l Comm, 2006)
Peaceful Picketing
gua ra nteed by ri ght to free s peech
i nvol ves people marching to a nd fro with pl a ca rds to a cqua i nt
the public wi th the facts of a labor dispute. It is not i llegal even in
the a bs ence of E-E rel a ti ons hi p. Ma y be ca rri ed out i n the
premi ses of the employer, i n places where employers products
ha ve been brought a nd a re di s tri buted a s a mea ns to
ci rcumvent, defeat or minimize the adverse effects of pi cketi ng
conducted a t the empl oyers pl a nts a nd offi ces . (ALU v.
Borromeo, 1968)
Pea ceful Picketing still s ubject to regulation by the i ns ta nce of thi rd
pa rti es or Innocent bysta nders i f i t a ppea rs tha t the i nevi ta bl e
res ult of its existence is to create a n i mpression that a l a bor di s pute
wi th which they ha ve no connection or interest exists between them
a nd the pi cketi ng uni on, or cons ti tutes i nva s i on of thei r ri ghts .
+ If two companies in the same premises, other company who are not
the employers of the s tri kers ma y fi l e i njuncti on to s top s tri kers .
(Republ i c Fl our Mi l l s Workers As s oci a ti on vs . Reyes , 1966)
Acts Specifically prohibited by the law in connection with picketing
Art. 264. Prohibited activities.
b.No pers on s ha l l obs truct, i mpede, or i nterfere wi th, by force,
vi ol ence, coercion, threats or i ntimidation, any peaceful pi cketi ng by
empl oyees during a ny l abor controversy or i n the exercise of the ri ght
to s elf-organization or collective bargaining, or s hall aid or a bet s uch
obs tructi on or i nterference.
e.No person engaged in picketing shall commi t a ny a ct of vi ol ence,
coerci on or i ntimidation or obstruct the free i ngress to or egress from
the employers premi s es for l a wful purpos es , or obs truct publ i c
thoroughfares. (As amended by Batas Pambansa Bi l a ng 227, June 1,
1982)
May a strike or lockout be enjoined
Art. 254. Injunction prohibited. No tempora ry or perma nent
i njunction or restraining order i n a ny case i nvolving or growing out of
l a bor disputes s hall be issued by any court or other enti ty, except a s
+ Ins ubordination by empl oyees of offi cers orders not i l l ega l a ct.
35
LABOR LAW REVIEW

otherwise provi ded i n Arti cles 218 a nd 264 of this Code. (As amended
by Ba ta s Pa mba ns a Bi l a ng 227, June 1, 1982)
Rea son: to give effect to the policy of free collective barga i ni ng. The
pa rti es must be free to use the economic weapons tha t the l a w ha s
gi ven them.
Exceptions:
1. Arti cl e 263 (g) on l a bor di s putes ca us i ng or l i kel y to ca us e
s tri kes or lockouts in a n i ndustry i ndispensabl e to the na ti ona l
i nteres t.
2. Arti cl e 218 (e), on the power of the NLRC to restrain commission
of prohi bi ted or unl a wful a cts i n l a bor di s pute.
Note: Article 263 (g)
(g) When, in his opinion, there exists a labor dispute causing or l i kel y
to ca us e a s tri ke or l ockout i n a n i ndus try i ndi s pens a bl e to the
na ti ona l i nteres t, the Secreta ry of La bor a nd Empl oyment ma y
a s sume jurisdiction over the dispute and decide it or certify the same
to the Commission for compulsory a rbitrati on. Such a s s umpti on or
certi fication sha l l ha ve the effect of a utoma ti ca l l y enjoi ni ng the
i ntended or i mpendi ng s tri ke or l ockout a s s peci fi ed i n the
a s sumption or certification order. If one has a l rea dy ta ken pl a ce a t
the ti me of assumpti on or certi fi ca ti on, a l l s tri ki ng or l ocked out
empl oyees shall immediately return-to-work and the employer s ha l l
i mmediately resume operations and readmi t a l l workers under the
s a me terms a nd conditions prevaili ng before the s tri ke or l ockout.
The Secretary of La bor and Employment or the Commission may s eek
the a ssistance of l aw enforcement a genci es to ens ure compl i a nce
wi th this provision as well a s wi th s uch orders a s he m a y i s s ue to
enforce the s a me.
In l i ne with the national concern for and the highest respect
a ccorded to the ri ght of pa ti ents to l i fe a nd hea l th, s tri kes a nd
l ockouts in hospitals, clinics a nd similar medical i nstitutions s ha l l , to
every extent possible, be avoided, a nd a ll s erious efforts, not onl y by
l a bor a nd management but government a s wel l , be exha us ted to
s ubstantially mi nimize, if not prevent, their a dvers e effects on s uch
l i fe a nd health, through the exercise, however legitimate, by l a bor of
i ts ri ght to s trike and by ma nagement to l ockout. In l a bor di s putes
a dversely a ffecting the continued operation of such hospitals, cl i ni cs
or medi cal i nstitutions, i t shall be the duty of the s tri ki ng uni on or
l ocking-out employer to provide and maintain a n effecti ve s kel e ta l
workforce of medical a nd other health personnel, whos e movement
a nd s ervices shall be unhampered and unrestricted, as a re neces s a ry
to i ns ure the proper a nd a dequate protection of the life a nd health of
i ts patients, most especially emergency ca ses, for the duration of the
s tri ke or l ockout. In s uch ca ses, therefore, the Secretary of La bor a nd
Empl oyment may i mmediately assume, within twenty four (24) hours
from knowl edge of the occurrence of s uch a s tri ke or l ockout,
juri s di cti on over the s a me or certi fy i t to the Commi s s i on for
compulsory a rbitration. For this purpose, the contending pa rti es a re
s tri ctl y enjoined to compl y wi th s uch orders , prohi bi ti ons a nd/or
i njunctions as are issued by the Secretary of La bor a nd Empl oyment
or the Commi ssion, under pa i n of i mmedi a te di s ci pl i na ry a cti on,
i ncl uding dismissal or l oss of employment s ta tus or pa yment by the
l ocking-out employer of backwages, damages a nd other a ffi rma ti ve
rel i ef, even crimi na l pros ecuti on a ga i ns t ei ther or both of them.
The foregoi ng notwi ths ta ndi ng, the Pres i dent of the
Phi l ippines s hall not be precluded from determi ni ng the i ndus tri es
tha t, i n his opinion, a re indispensable to the na ti ona l i nteres t, a nd
from i ntervening a t any ti me and assuming jurisdiction over a ny s uch
l a bor di s pute i n order to s ettl e or termi na te the s a me.

Article 263 gi ves power to Secrtary of DOLE the power to a s s ume
juri s diction over and decide a labor dispute or certify the same to the
NLRC for compul s ory a rbi tra ti on Not a n undue del ega ti on of
l egislative power. Power i s limi ted to l a bor di s putes ca us i ng or
l i kely to ca use strikes or l ockouts a dvers el y a ffecti ng the na ti ona l
i nteres t. Suffi ci ent s ta nda rd.
+ In a pplication it may be unconstitutional if it vi olates workers ri ght
to s elf-organization, collective bargaining, security of tenure, just and
huma ne conditions of work; or is repugnant to the protection to labor
ma nda te of the Cons ti tuti on.
+ Exerci se of power must be in a ccorda nce wi th the l a w. Secreta ry
mus t fol l ow l a w.
Industries Indispensable to National interest
1. Publ i c Uti l i ti es
2. Compa nies engaged i n generation or di s tri buti on of energy
3. ba nks
4. s chool s
5. hos pi ta l s
6. export ori ented i ndus tri es
+ If not i ndispensable to national i nteres t, Secrta ry of l a bor ha s no
power to i ntervene.
Return-to-work order
by i ts very na ture i t i s a provi s i ona l mea s ure
non-compliance therewith will not necessarily a uthorize the
perma nent replacement of the reca l ci tra nt workers . Any
order for the replacement of s tri ki ng empl oyees i s not a
fi nal determination of their ri ght to go ba ck to work or for
the new recrui ts to conti nue thereon a s perma nent
empl oyees .
Economic Strike
One whi ch is to force wage or other conces s i on from the
empl oyer whi ch he i s not requi red by l a w to gra nt.
No Strike Clause on CBA
onl y a pplies to economi c s tri ke a nd not to s tri ke on the
ground of ULP.
Q: Ma y Sec i n the exercise of his jurisdiction under Art. 263 (g) of LC,
ta ke cognizance of an i ssue which is merely i ncidental to labor dispute
over whi ch he ha s a s s umed juri s di cti on.
A: Yes , provided the said issue is i nvolved i n the labor dispute i tself or
otherwi s e s ubmi tted to hi m for res ol uti on.
+ Authori ty to assume jurisdiction over the said l a bor di s pute mus t
i ncl ude a nd extend to a l l ques ti ons a nd controvers i es a ri s i ng
therefrom. The power is plenary a nd discretionary i n nature to enable
hi m to effecti vel y a nd effi ci entl y di s pos e of the di s pute.
Secretary may certify cases to the NLRC
Juri s di cti on: ha s concomi ta ntl y empowered to res ol ve a l l
questions a nd controversies a rising therefrom i ncl udi ng ca s es
otherwise bel ongi ng ori gi na l l y a nd excl us i vel y to the La bor
Arbi ter. (263(g)) This is despite of Art217 of LC whi ch provide for
excl us i ve juri s di cti on of Sec., beca us e of phra s e, except a s
otherwi s e provi ded by l a w.
Assumption and certification orders
36
LABOR LAW REVIEW

-
Executory i n character a nd a re to be s tri ctl y compl i ed wi th by

the pa rties even during the pendency of a ny petition questioning
thei r va lidity. Ai med a t arri ving at a peaceful a nd s peedy s olution
to l a bor di s putes , wi thout jeopa rdi zi ng na ti ona l i ntere s ts .
+ If a worker defies return-to-work order, deemed to have abandoned

hi s job. It is a l rea dy pa rti ci pa ti ng i n a n i l l ega l a ct. Al s o, a s tri ke
undertaken despi te the Secreta rys i s s ua nce of a s s umpti on a nd
certi fication order becomes a prohibited a cti vi ty, a nd thus , i l l ega l .
Judicial Review of Secretarys arbitral award
Not l i mited to determination of grave a bus e i n the ma nner of
the s ecreta rys exerci s e of hi s s ta tutory powers . Court ma y
revi ew the substance of the Secreta rys a wa rd when gra ve of
a buse of discretion is alleged to exi s t i n the a wa rd, i .e. i n the
a ppreciation of a nd the conclusions the Secretary drew from the
evi dence pres ented.
Sta nda rd of rea s ona bl enes s s houl d be a ppl i ed.
Middle Ground approach of settling wage dispute is NOT necessarily
the best method
Ma y l ea d to the da nger tha t nei ther of the pa rti es wi l l
enga ge i n principled bargaining; the company may keep i ts
pos i ti on a rti fi ci a l l y l ow whi l e the uni on pres ents a n
a rti ficially high pos i ti on, on the fea r tha t a Sol omoni c
s ol ution cannot be avoided. Than encourage agreement, i t
encoura ges a Pl a y s a fe a tti tude tha t l ea ds to more
dea dl ocks tha n to s ucces s ful l y negoti a ted CBAs .
Payroll Reinstatement
a s a n excepti on to a ctua l rei ns ta tement requi red by a
return to work order, ma y be a l l owed, pendi ng fi na l
res olution of the va li di ty of thei r di s mi s s a l , i n vi ew of a
s uperseding ci rcumstance i .e. the fi na l deci s i on of the
pa nel of arbitrations as to the confidenti a l na ture of thei r
pos itions (Univ of Imma cul a te Concepci on vs . Sec, 2005)
NLRC ha s powers to issue i njunctions or restra i ni ng orders i n l a bor
di s putes Art. 218 (e)
(e) To enjoin or restrain a ny a ctual or threatened commiss i on of a ny
or a l l prohibited or unlawful acts or to require the performa nce of a
pa rti cul a r a ct i n a ny l a bor di s pute whi ch, i f not res tra i ned or
performed forthwith, may ca use gra ve or i rreparable dama ge to a ny
pa rty or render i neffectua l a ny deci s i on i n fa vor of s uch pa rty:
Provi ded, That no temporary or perma nent i njuncti on i n a ny ca s e
i nvol ving or growing out of a labor dispute a s defi ned i n thi s Code
s ha ll be issued except after hearing the testimony of wi tnesses , wi th
opportunity for cross-examination, i n s upport of the allega ti ons of a
compl aint made under oath, a nd testimony i n oppositi on thereto, i f
offered, a nd only a fter a fi ndi ng of fa ct by th e Commi s s i on, to the
effect:
1. Tha t prohibited or unlawful a cts have been threatened a nd wi l l
be committed and will be continued unles s res tra i ned, but no
i njunction or temporary res tra i ni ng order s ha l l be i s s ue d on
a ccount of any threat, prohibited or unlawful a ct, except agains t
the person or persons, association or orga ni za ti on ma ki ng the
threa t or committing the prohibited or unlawful a ct or a ctua l l y
a uthorizing or ra tifyi ng the same a fter a ctual knowledge thereof;
2. Tha t s ubstantial and i rreparable injury to complainants property
wi l l fol l ow;
3.
Tha t a s to each item of relief to be granted, greater i njury wi ll be

i nflicted upon complainant by the denial of rel i ef tha n wi l l be
i nfl i cted upon defenda nts by the gra nti ng of rel i ef;
4. Tha t compl a i na nt ha s no a dequa te remedy a t l a w; a nd
5. Tha t the publ i c offi cers cha rged wi th the duty to protect
compl a i na nts property a re una bl e or unwi l l i ng to furni s h
a dequa te protecti on.
Such hearing shall be held after due a nd pers ona l noti ce
thereof has been s erved, i n s uch manner a s the Commi s s i on s ha l l
di rect, to a ll known persons a gainst whom relief i s sought, and also to
the Chi ef Executive a nd other public officia l s of the provi nce or ci ty
wi thin which the unlawful acts have been threatened or commi tted,
cha rged with the duty to protect complaina nts property: Provi ded,
however, tha t i f a compl a i na nt s ha l l a l s o a l l ege tha t, unl es s a
tempora ry res tra i ni ng order s ha l l be i s s ued wi thout noti ce, a
s ubstantial a nd i rreparable i njury to complaina nts property wi l l be
una voidable, such a temporary res training order may be issued upon
tes ti mony under oa th, s uffi ci ent, i f s us ta i ned, to jus ti fy the
Commi ssion i n issuing a tempora ry i njuncti on upon hea ri ng a fter
noti ce. Such a temporary restraining order s ha l l be effecti ve for no
l onger than twenty (20) days a nd shall become voi d at the expira ti on
of s a id twenty (20) da ys . No s uch tempora ry res tra i ni ng order or
tempora ry i njuncti on s ha l l be i s s ued except on condi ti on tha t
compl ainant shall first file an undertaking with adequa te s ecuri ty i n
a n a mount to be fixed by the Commission s uffi ci ent to recompens e
thos e enjoi ned for a ny l os s , expens e or da ma ge ca us ed by the
i mprovi dent or erroneous i s s ua nce of s uch order or i njuncti on,
i ncl uding all reasonable costs, together wi th a reasonable a ttorneys
fee, a nd expense of defense a gainst the order or a gainst the gra nti ng
of a ny i njuncti ve rel i ef s ought i n the s a me proceedi ng a nd
s ubs equentl y
deni ed
by
the
Commi s s i on.
The undertaking herein mentioned s hall be unders tood to
cons titute an a greement entered i nto by the compl a i na nt a nd the
s urety upon which a n order ma y be rendered i n the s a me s ui t or
proceeding against s aid complainant a nd s urety, upon a hea ri ng to
a s sess damages, of which hearing, complainant and surety s hall ha ve
rea s onabl e noti ce, the s a i d compl a i na nt a nd s urety s ubmi tti ng
thems elves to the jurisdiction of the Commi s s i on for tha t purpos e.
But nothing herein contained shall deprive any pa rty having a claim or
ca us e of action under or upon s uch underta ki ng from el ecti ng to
purs ue his ordi na ry remedy by s ui t a t l a w or i n equi ty: Provi ded,
further, That the reception of evi dence for the a pplication of a writ of
i njunction may be delegated by the Commiss i on to a ny of i ts La bor
Arbi ters who shall conduct s uch hearings i n s uch pl a ces a s he ma y
determine to be a ccessible to the parti es a nd thei r wi tnes s es a nd
s ha ll s ubmit thereafter his recommendation to the Commi s s i on. (As
a mended by Secti on 10, Republ i c Act No. 6715, Ma rch 21, 1989)
Ex Parte Temporary Restraining Order may be issued by the NLRC
However, must be characterized by ca re a nd ca ution for the
l a w requires that it be cl early justified by considerati ons of
extreme necessity i .e. when the commi s s i on of unl a wful
a cts i s causing substantial a nd i rreparable injury to company
properties and company i s , for the moment, bereft of a n
a dequa te remedy a t l a w.
Article 18 (e) allows NLRC to issue injunction
However, necessary to establish that the commission of the
i l legal a cts will ca use grave or i rrepa ra bl e da ma ge to the
pa rty s eeking the i njunctive relief or render i neffectua l a ny
deci s i on i n fa vor of s uch pa rty.
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LABOR LAW REVIEW

Injunction may be had if:
1. Compa ny is i n a n industry i ndispensable to national interest
2. There is a ctual or threatened commission of proh i bi ted or
unl awful a cts which, i f not restrained forthwith, may ca us e
gra ve or i rreparable damage to it or render i neefectual a ny
deci s i on i n fa vor of s uch pa rty.
+ NLRC ha s no power to order s trikers to return to work i f ca s e not
certi fi ed to them by the Secreta ry (Art 263 (g)). It ma y however
res tra in strikers from blocking the means of egress from and i ngres s
to the pl a nt.
Remedies to lockout
Fi l e with Secretary a request that he as s umes juri s di cti on over the
l a bor di s pute or cedrti fy the s a me to the NLRC for compul s ory
a rbi tration on the ground that the i ntended l ockout is i n a n i ndus try
i ndispensable to na ti ona l i nteres t. As s umpti on of juri s di cti on or
certi fication has the effect of automatically enjoining the i mpendi ng
l ockout., (Art 263)
Consequence of lockout notwithstanding certification
Art. 264 (a ), LC, a ny worker whose employment has been terminated
a s a consequence of a l ockout is entitled to rei ns ta tement wi th ful l
ba ckwa ges .
Illegal Acts
1. vi ol ation of 264 (e) vi ol ence, coerci on or i nti mi da ti on
2. Commi ssion of cri mes a nd other unlawful acts i n carryi n out
the s tri ke
3. vi ol ation of a ny order, prohibition, or i njuncti on i s s ued by
the DOLE Sec. or NLRC i n connection with the assumption of
juri s di cti on/certi fi ca ti on order
Return to Work Order Served, when
copi es of the same were left by the Sheriff with the strikers
a t the pi cket line, although they refus ed to a cknowl edge
recei pt thereof, a nother copy l eft a t their couns el s offi ce.
Strike Breaker
a ny person who obstructs, i mpeded or i nterferes wi th by
force, vi ol ence, coerci on, threa ts or i nti mi da ti on a ny
pea ceful pi cketi ng by empl oyees duri ng a ny l a bor
controvers y affecting wages, hours or conditions of work or
i n theexercise of the right of self-organization or col l ecti ve
ba rga i ni ng. (Art. 212 (r) LC)
Not a l l owed. Art. 264 (c))
Strike Area
Es ta bl i s hment, wa rehous e, depots , pl a nts or offi ces ,
i ncl uding the sites or presmises used as run-away s hops of
the employer s truck a ga i ns t, a s wel l a s the i mmedi a te
vi ci nity a ctually used by picketing strikers i n moving to a nd
fro before a l l poi nts of entra nce to a nd from s a i d
es ta bl i s hment.
Runaway Shop
Industrial plant moved by i ts owners from one l oca ti on to
a nother to escape union labor regulations or s ta te l a ws . It
ma y a l so refer to a plant removed from i ts present l ocati on
i n order to discriminate against employees a t the old pl a nt

beca us e of thei r uni on a cti vi ti es .
Move to a nother l ocation or temporarily cl oses i ts busines s
for a nti -uni on purpos e.
Wildcat Strike
Stri ke not a uthorized by the union representing the strikers
Sympathy Strike
A Stri ke by body of workers for the purpose of s upporting a
ca us e of a nother group of s tri kers .
Prohibition against the use of police or armed escorts during strike
Art 264 (d) No public offi ci a l or empl oyee, i ncl udi ng offi cers a nd
pers onnel of the New Armed Forces of the Phi l i ppi nes or the
Integrated National Police, or a rmed person, s hall bring i n, i ntroduce
or es cort i n a ny ma nner, a ny i ndivi dual who seeks to replace s tri kers
i n entering or l eavi ng the premises of a strike a rea, or work i n place of
the s tri kers. The police force shall keep out of the picket lines unl es s
a ctua l vi olence or other criminal a cts occur therei n: Provi ded, Tha t
nothi ng herein shall be interpreted to prevent any public officer from
ta ki ng any measure necessary to maintain pea ce a nd order, protect
l i fe a nd property, a nd/or enforce the l a w a nd l ega l order.
+ An employer who knowi ngl y rea dmi ts to work the s tri kers who
commi tted illega l a cts duri ng the s tri ke, ma y no l onger s eek the
di s missal of the employee by rea s on of s uch a cts . Condona ti on of
i l l ega l a cts .
Strikers entitled to backwages during period of strike
- GR: No ba ckwages, employer should get equivalent da y of work for
wha t he pa ys hi s empl oyees .
- XPN: When strikers a bandon s trike a nd a pply for reinstatement a nd
empl oyer refus es to rei ns ta te or i mpos es new condi ti ons for
rei ns ta tement whi ch cons ti tute ULP.
Jurisprudential Exceptions
6. empl oyees i l l ega l l y l ocked out
7. when employer i s guil ty of the gros s es t form of
ULP
8. When there i s discri mi na ti on i n the rehi ri ng of
s tri kers
9. when workers who s ta ged a vol unta ry ULP
offered to return to work unconditionally but the
empl oyer refus ed to rei ns ta te them (Phi l .
Di a mond Hotel v. Ma ni l a Di a mond Hotel
Empl oyees Uni on, 2006)
+ Empl oyees who are unable to work by reason of a l ockout va l i dl y
decl ared by employer NOT entitled to wa ges corres pondi ng to the
peri od of the l ockout. No work-no pa y.
+ No Work-No Pa y. A fa i r da ys wa ge for a fa i r da ys l a bor.
Q: Ma y empl oyees of the government go on strike and may the latter
decl a re a l ockout?
A: No. They a re governed by Ci vi l Servi ce La ws (Art. 276, LC)
Right of govt employees to strike under the 1987 Constitution
Sec 3 Art XIII. Recognizes ri ght to organize but s i l ent on the ri ght to
s tri ke.
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LABOR LAW REVIEW

+ Manila Public School Teachers Association v. Laguio, 1991 There
wa s a concerted a nd unauthori zed s toppa ge of, or a bs ence from,
work whi ch teachers duty to perform, underta ken for es s enti a l l y
economi c rea s ons .
2.
3.
CHAPTER XV UNFAIR LABOR PRACTICES

Concept of Unfair Labor Practice (ART. 247):
Vi olate the constitutional right of workers a nd employees to
s elf-organization, are i nimical to the legitimate interes ts of
both l abor and management, including their ri ght to bargain
col l ecti vel y a nd otherwi s e dea l wi th ea h othe r i n a n
a tmos phere of freedom a nd mutua l res pect, di s rupt
i ndustrial peace and hinder the promotion of hea l thy a nd
s ta bl e l a bor ma na gement rel a ti ons .
Not onl y vi ol a ti ons of the ci vi l ri ghts of both l a bor a nd
ma nagement but a re also cri minal offes ns es a ga i n s t the
Sta te which shall be subject to prosecution a nd punishment
a s herei n provi ded.
Pri or to the enactment of the La bor Code ULPs a re mere

a dmi ni s tra ti ve offens es , thi s fa ct ma de i t ea s y for
empl oyers to commit s uch a cts with i mpuni ty beca us e of
l i ght cons equence.
The a dministrative proceedings a nd cri mi na l pros ecuti on

for ULP ma y not be i ns ti tuted s i mul ta neous l y.
o A Fi nal judgment of the labor a rbiter (LA) , fi nding
tha t a n ULP wa s commi tted, mus t fi rs t be
obta ined before a cri mi na l pros ecuti on for the
s a me ca n bbe commenced.
o To prevent pa rti es from uti l i zi ng the cri mi na l
a cti on a s a mea ns for ha ra s s ment.
o Fi nal judgment rendered by the LA i s not bi ndi ng
i n the cri mi na l ca s e nor ca n the s a me be
ccons idered as evidence of guilt. Beca us e of the
di fference in the quantum of evi dence to sustain a
judgment.
WHO MAY COMMIT ULP:

1. Empl oyer
2. La bor Orga ni za ti on
WHO MAY BE CRIMINALLY LIABLE:
thos e who ha ve a ctua l l y pa rti ci pa ted i n, a uthori zed or
ra ti fi ed the ULP
Employer:
1. Offi cers
2. Agents of the corporations, ass oci a ti ons or pa rtners hi ps
Labor Organization:
1. Offi cers
2. Members of governi ng boa rds
3. repres enta ti ves
4. a gents
5. members
EMPLOYER ULP (ART. 248):
1. To i nterfere wi th, res tra i n or coerce empl oyees i n the
exerci s e of thei r ri ght to s el f-orga ni za ti on;
4.
5.
6.
7.
8.
9.
To require as a condition of employment tha t a pers on or

a n employee s hall not joi n a l a bor orga ni za ti on or s ha l l
wi thdra w from one to whi ch he bel ongs ;
To contra ct out servi ces or functi ons bei ng performed by
uni on members when such will interfere wi th, res tra i n or
coerce employees i n the exerci s e of thei r ri ghts to s el forga ni za ti on;
To i ni tiate, dominate, assist or otherwise i nterfere with the
forma tion or a dmi ni s tra ti on of a ny l a bor orga ni za ti on,
i ncl uding the givi ng of financial or other support to i t or i ts
orga ni zers or s upporters ;
To di s criminate i n regard to wages, hours of work and other
terms a nd conditions of employment in order to encourage
or di s coura ge members hi p i n a ny l a bor orga ni za ti on.
Nothi ng i n thi s Code or i n a ny other l a w s ha l l s top the
pa rti es from re qui ri ng members hi p i n a recogni zed
col l ective bargaining a gent as a condition for empl oyment,
except thos e empl oyees who a re a l rea dy members of
a nother union at the ti me of the s i gni ng of the col l ecti ve
ba rga i ni ng a greement. Empl oyees of a n a ppropri a te
ba rgaining unit who a re not members of the recogni zed
col l ective bargaining a gent may be assessed a rea s ona bl e
fee equivalent to the dues and other fees paid by members
of the recognized collective bargaining a gent, i f s uch non uni on members a ccept the benefi ts under the col l ecti ve
ba rga i ni ng a greement: Provi ded, tha t the i ndi vi dua l
a uthorization required under Arti cle 242, pa ra gra ph (o) of
thi s Code s ha l l not a ppl y to the non -members of the
recogni zed
col l ecti ve
ba rga i ni ng
a gent;
cha nrobl es vi rtua l l a wl i bra ry
To di s miss, discharge or otherwise prejudice or discriminate
a ga inst an employee for havi ng given or being a bout to give
tes ti mony under thi s Code;
To vi ol ate the duty to ba rgain collectively as pres cri bed by
thi s Code;
To pa y negotiation or a ttorneys fees to the uni on or i ts
offi cers or a gents as part of the settlement of a ny i s s ue i n
col l ecti ve ba rga i ni ng or a ny other di s pute; or
To vi ol a te a col l ecti ve ba rga i ni ng a greement.
LABOR ORGANIZATION ULP:

1. To res train or coerce empl oyees i n the exerci s e of thei r
ri ght to s elf-organization. However, a l a bor orga ni za ti on
s ha ll have the ri ght to prescribe i ts own rules wi th res pect
to the a cqui s i ti on or retenti on of members hi p;
cha nrobl es vi rtua l l a wl i bra ry
2. To ca us e or attempt to ca use an employer to di s cri mi na te
a ga inst an employee, including discri mi na ti on a ga i ns t a n
empl oyee wi th res pect to whom members hi p i n s uch
orga nization has been denied or to terminate an empl oyee
on a ny ground other than the usual terms a nd condi ti ons
under which membership or continuation of membership is
ma de a va i l a bl e to other members ;
3. To vi ol ate the duty, or refuse to ba rga i n col l ecti vel y wi th
the empl oyer, provi ded i t i s the repres enta ti ve of the
empl oyees ;
4. To ca us e or attempt to ca use an employer to pay or del i ver
or a gree to pa y or del i ver a ny money or other thi ngs of
va l ue, i n the nature of an exaction, for s ervi ces whi ch a re
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LABOR LAW REVIEW
5.
6.
not performed or not to be performed, i ncl udi ng the

dema nd for fee for uni on negoti a ti ons ;
o a s k for or a ccept negoti a ti on or a ttorneys fees from
empl oyers a s pa rt of the s ettl ement of a ny i s s ue i n
col l ecti ve ba rga i ni ng or a ny other di s pute; or
To vi ol a te a col l ecti ve ba rga i ni ng a greement.
Refusal of a school to renew the contracts of teachers who

ha ve been with the s chool for periods ranging from 6 to 20
yea rs , for fear that they will i nstigate a s trike is held to have
been an ULP. (Ri za l Memori a l Col l eges Fa cul ty Uni on v.
NLRC)
Yellow dog contract a promi se exacted from workers a s a condition

of employment tha t they not to bel ong to, or a ttempt to fos ter a
uni on duri ng thei r peri od of empl oyment.
The ULP covered by Art. 248 (b) ma y be committed a gains a

pros pecti ve empl oyee. The provi s i on us es the phra s e
pers on or a n empl oyee.
The mere questioning of employees, s tanding alone, i s not

ULP, a nd before i nqui ri es by a n empl oyer a s to uni on
ma tter ca n be held to be ULP they must be s hown to ha ve
s ome relation to coercion or restraint of the empl oyees i n
thei r ri ght of s el f-orga ni za ti on.
As a general rule, a n empl oyer ma y predi ct unfa vora bl e

cons equences of unionization without committing ULP i f he
ca n do s o i n a ma nner which contains no threat. HOWEVER,
when s tatements as to consequences whi ch mi ght fol l ow
empl oyees adherence to a union are ma de by one who i s
pa rt of company ma nagement a nd who ca n affect pol i ci es
rega rding employment, such statement whether couched in
l a nguages of probability or certainty, tend to i mpede a nd
coerce empl oyees i n thei r ri ght of s el f-orga ni za ti on,
therefore ma y cons ti tute ULP.
An empl oyer ma y be gui l ty of ULP for i nterferi ng wi th

empl oyees ri ght to self-organization even before the union
ha s been registered a s where empl oyees a re di s mi s s ed
beca us e of thei r refus a l to di vul ge the na mes of the
orga ni zers a nd members of the uni on.
Gra nti ng of s ubs ta nti a l i ncrea s es i n benefi ts s o a s to
prevent the unionization of the employees is considered a s
i nterference i n the exercise by latter of thei r ri ght to s el forga nization. It interferes with their freedom of choi ce for
or a ga inst unionization. Interference may be i n the form of
a l l urements .
Union busting i nterference wi th the forma ti on of a uni on.
The re-opening of a high s chool a fter only one year from i ts

s upposed closure has been held to be an ULP a s the s a me
wa s in bad faith a nd for the purpose of ci rcumventi ng the
Uni ons ri ght to collective bargaining a nd i ts members to
s ecuri ty of tenure. (St. John Col l eges , Inc. v. St. John
Aca demy Fa cul ty a nd Empl oyees Uni on)
The hi s tory of the empl oyers pa s t conduct a nd l i ke

cons i dera ti ons , coupl ed wth a nd i nti ma te connecti on
between the employers a ction a nd the union affiliations or
a cti vi ties of the particular employee or employees taken a s
a whol e ra i s e a s us pi ci on a s to the moti va ti on for the
empl oyers a ction, the failure of the employer to a s cri be a
va l i d rea s on therefor ma y jus ti fy a n i nference tha t hi s
unexplained conduct i n respect of the particular empl oyee
or empl oyees wa s i ns pi red by the l a tters uni on
members hi p or a cti vi ti es .
Survei llance by a n employer of the meetings and a cti vi ti es

of a uni on cons ti tute a s ULP.
o It becomes i l l ega l beca us e i t i ndi ca tes the
empl oyers oppos i ti on to uni oni s m.The l a w
res asons that when a n employer either engages in
s urveillance or ta kes steps l eading his empl oyees
to thi nk that it is going on, they a re under threa t
of economi c coerci on a nd reta l i a ti on.
The employer has the prerogative of promulgating rul es to

ma i ntain di s ci pl i ne a nd enha nce producti on wi thi n i ts
premi ses during work hours . Therefore, a s l ong a s s uch
pol i ci es a re enforced wi thout di s cri mi na ti on, the
prohi bition a gainst an empl oyee from enga gi ng i n uni on
membership solicitation and distribution of union literature
duri ng work hours i s NOT ULP.
The terms of a CBA ca nnot be unila tera l l y di s rega rded by
the pa rti es theres to. A s ta tement of ma na gement
prerogatives couched i n genera l terms i s not s uffi ci ent.
Sta tements ma de i n defens e of the i nteres t of the
empl oyees that a union officer represents a re privil eged, a
va l i d exercise of his freedom of expression a nd hi s ri ght to
s elf-organization. (Union Supervisors (RB) NATU v. The Sec.
of La bor)
The wri ting of a l etter-charge against a company pres i dent

dema ndi ng for the l a tters res i gna ti on, done by 8
empl oyees is considered a s a concerted a cti vi ty for thei r
mutua l aid a nd protection. Thi s i s a pa rt of thei r ri ght of
s elf-organization, interference with whi ch cons ti tute ULP.
(Republ i c Sa vi ngs Ba nk v. CIR)
The refusal of the company to a cknowledge the receipt of a

l etter-request of union officers a nd members to a ttend a
hea ri ng for certi fi ca ti on el ecti on a nd preventi vel y
s us pending the same is considered as ULP, i t is cons i dered
a s i nterference wi th the empl oyees ri ght to s el f orga ni za ti on.
Mora l dama ges ma y be a wa rded under Art. 2220 of the

NCC provi ding for damages for breaches of contra ct where
the defendant acted fra udulently or i n bad faith. Exempla ry
da mages may also be gra nted purs ua nt to Art. 2229, 2231
a nd/ror 2232.
Where all the retrenched employees were members of a

pa rti cular union, there being no sa ti s fa ctory expl a na ti on
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LABOR LAW REVIEW

why s a id employees were s i ngl ed out, the concl us i on i s
i nevitable that the empl oyer ha d di s cri mi na ted a ga i ns t
members hi p i n the s a i d uni on.
The a lleged dissolution of the corporation in order to effect

the di smissal of workers because of their union a ctivi ties i s
cons idered ULP. (Arons on & Co., Inc. v. As s oci a ted La bor
Uni on)
A l etter s ent by the compa ny pres i dent a nd ma na ger to
s tri ki ng empl oyees offeri ng rei ns ta tement a nd other
benefits tends to undermi ne the concerted a cti vi ty. It i s
equi va l ent to a n a ttempt to brea k the s tri ke, thus ULP.
Di s criminatory a cts under Art. 248 (e) need not be a ga i ns t
s pecific employee or a gainst a group of employees, for s ai d
a cts a re not limited to hiring or tenure but extend to terms
a nd conditions of employment. Di s cri mi na ti on ca n be i n
fa vor or a ga i ns t a uni on i ts el f.
Refus a l of a n empl oyer to negoti a te wi th a uni on
contendi ng tha t the l a tter wa s di s a uthori zed by the
empl oyees cons ti tute ULP. It i s not for the empl oyer to
question which group is the bargaining representative of i ts
workers .
Retaliatory Measures (ART. 118) i t s ha l l be unl a wful for a n

empl oyer to refus e to pa y or reduce the wa ges a nd benefi ts ,
di s charge or in any ma nner discriminate against a ny empl oyee who
ha s filed any complaint or instituted any proceeding under thi s Ti tl e
or i s a bout to tes ti fy i n s uch proceedi ngs .
Art 248 s houl d be s tri ctl y cons trued bei ng pena l i n

cha ra cter. Not all a cts of di s cri mi na ti on of the empl oyer
cons titute ULP. Only s uch a ct as woul d i nterfere wi th the
empl oyees ri ght to s el f-orga ni za ti on, encoura ge or
di s coura ge members hi p i n a l a bor orga ni za ti on or
di s criminate a gainst an employee for having gi ven or bei ng
a bout to gi ve tes ti mony under the Code.
The a ct of compell i ng empl oyees to s i gn a n i ns trument
i ndicating tha t the empl oyer obs erved l a bor s ta nda rds
provi sions of l aw when he mi ght ha ve not, together wi th
the a ct termi na ti ng or coerci ng thos e who refus e to
cooperate with the empl oyers s cheme cons ti tutes ULP.
(Ma beza v. NLRC)
An empl oyer vi olates its duty to ba rgain collectively when i t

fa i led wi thout va l i d rea s ons to gi ve counter-propos a l s
wi thi n 10 da ys from recei pt of the uni ons propos a l s .
The mere filing of a petition for certification el ecti on does

not i pso fa cto justify the suspension of negoti a ti on by the
empl oyer. The peti ti on mus t fi rs t compl y wi th the
requi rements for a va l i d peti ti on.
The vei l of corpora te fi cti on ma y be pi erced i n ca s e a

corpora ti on i s a mere a l ter ego or bus i nes s condui t of
a nother person. The a ct of a corporation i n enga gi ng i n a
s cheme of termi na ti ng the s ervi ces of s ecuri ty gua rds
provi ded by a corpora ti on s et-up a s i ts mere a l ter ego
pos ted at the premises of the mother-company a nd bus t
thei r newly-organized union which was then begi nni ng to
become a ctive in demandi ng the compa nys compl i a nce

wi th l a bor s ta nda rd l a ws i s ULP.
Surface Bargaining goi ng through the moti ons of negoti a ti ng
wi thout a ny l ega l i ntent to rea ch a n a greement.
It i nvolves the question of whether a n empl oyers conduct
demonstrates an unwillingness to bargain in good faith or is
merel y ha rd ba rga i ni ng.
The duty to ba rgain does not compel etiher pa rty to a gree

to a propos a l or requi re the ma ki ng of a conces s i on.
Therefore, the parties failure to agree does not a mount to
ULP for vi ol a ti on of the duty to ba rga i n.
The refusal to furnish requested information i n connecti on

wi th a n on-going bargai ni ng i s cons i dered ULP a nd a l s o
s upports the inference of s urfa ce ba rga i ni ng . However,
fa i lure to put such request i n writing as required by law may
excus e the non-compl i a nce wi th s uch reques t.
The refusal of an employe e to re-admit a n empl oyee who

pa rti ci pa ted i n a n i l l ega l s tri ke i s jus ti fi ed.
The employer i s not considered gui l i ty of ULP i f i t merl ey

compl ied i n good fa i th wi th the reques t of the certi fi ed
uni on for the dismiss a l of empl oyees expel l ed from the
uni on pursuant to the uni on s ecuri ty cl a us e i n the CBA.
The gra nt of profit s haring to employees not covered by the

CBA i s a n exerci s e i n good fa i th of ma na gement
prerogatives. There is no discrimination as the s i tua ti on of
the uni on empl oyees i s di fferent fro m the non-uni on
empl oyees .
The di smiss a l by the empl oyer upon the reques t of the

mother federation of employees who were exercising thei r
freedom to disaffiliate is ULP. However, the lia bi l i ty of the
empl oyer i s limited to the immediate reinstatement of the
di s mi s s ed empl oyees .
The mere a ct of the empl oyees i n s eeki ng hel p from
a nother union cannot constitute disloyalty. At mos t, i t wa s
a n a ct of s elf-preservation of desperate workers. The ha s ty
di s missa l of empl oyees purs ua nt to the uni on s ecuri ty
cl a use lends credence that there was conni va nce wi th the
uni on and the company, therefore, the company s hall a l s o
be hel d l i a bl e for ULP.
The a ct of the uni on i n a rbi tra ri l y refus i ng to a l l ow a

member, who was cri tical to of how the uni on wa s bei ng
run, to wi thdraw his resignation while i nsisting tha t he be
di s mi s s ed from hi s work by rea s on of a cl os ed -s hop
a greement i s ULP.
As a genera l rul e, the s ta te ma y not compel a uni on to

a dmit or readmit thereto a ny gi ven i ndi vi dua l , beca us e
membership therei n ma y be a ccorded or wi thhel d a s a
ma tter of privilege. However, the rule i s qualified in respect
of l a bor unions holding a monopoly i n the s uppl y of l a bor.
In s uch a case, a dmission requirements and a dminis tra ti on
become a ffected wi th publ i c i nteres t.
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LABOR LAW REVIEW
The employer who was reluctant i n dismissing an employee

by rea s on of the i nsistence of the union to dismiss the l atter
purs ua nt to a cl os ed s hop a greement i s ca nnot be
cons i dered gui l ty of ULP.
Before a l a bor orga ni za ti on ma y be decl a red to ha ve

vi ol ated the duty to ba rga i n col l ecti vel y, i t mus t fi rs t be
es tablished that the former is the bargaining representative
of the employees. A union that has not been selected as the
repres enta ti ve of the empl oyees ha s no obl i ga ti on to
col l ecti vel y ba rga i n wi th the empl oyer.
The employers refusal tomake a counterr-propos a l to the

uni ons proposal for CBA negotiations is a n i ndiction of ba d
fa i th. The CBA proposed i n such case ma y be i mpos ed on
the empl oyer a s -i s .
o By i mposing upon the employer the provisions of
the dra ft CBA propos ed by the uni on, the
i nterests of equi ty a nd fa i r pl a y were properl y
s erved and both parties regained equa l footi ng.
(Gen. Mi l l i ng Corp. v. CA)
Featherbedding refers to the practice of the union or i ts a gents i n

ca us ing or attempting to cuase a n employer to pay or deliver or a gree
to pa y or deliver money or other things of va lue, i n the na ture of a n
exa cti on, for s ervi ces whi ch a re not performed or not to be
performed.
A uni on is guilty of featherbedding for declaring a s tri ke to

compel a n employer to assign two persons to a job that ca n
be performed by onl y one.
To a voi d the pos s i bi l i ty of the uni ons deci s i on bei ng
i nfluenced by monetary doleouts from the employer to the
uni on officers, i t is ULP to a sk for or a ccept negotiation fees
from the employer as part of the settlement of an i s s ue i n
col l ecti ve ba rga i ni ng or a ny other di s pute.
For a vi olation of the CBA to be considered a s ULP i s mus t
be GROSS VIOLATION.
o Gros s vi ol a ti ons of a CBA s ha l l mea n fl a gra nt
a nd/or ma l i ci ous refus a l to compl y wi th the
economi c provi s i ons of s uch a greement.
Relief of an illegally dismissed employee:

1. rei ns ta tement to hi s former pos i ti on
- wi thout l os s of s eni ori ty or a ny other ri ghts .
2. pa yment of ba ckwa ges
Reinstatement a res toration to a state4 from which one ha s been
removed or separated. It i s the return to the position from whi ch he
wa s removed, and assuming a gain the functions of the office alrea dy
hel d.
Pres upposes that the previous position from which one had
been removed s ti l l exi s ts , or tha t there i s a n un fi l l ed
pos ition more or l ess of a similar nature as one previ ous l y
occupi ed by the empl oyee.
An order of rei ns ta tement wi th ful l ba ckwa ges for a n

i ndefinite and prol onged peri od of ti me i s vi ewed wi th
di s favor. It i s not onl y unjus t for the empl oyer but a l s o
fos ters i ndol ence on the pa rt of the empl oyee.
ULP i s deemed to be purely a n a dministrative offense when

the a cts compl a i ned of hi nges on the ques ti on of
i nterpretation or i mplementation of ambiguous provi s i ons
of a n existing CBA. By reason of the a mbi gui ty, good fa i th
ma y be s et-up a s a defens e.
Not a l l illegal dismissal constitutes ULP. Only when it results
from a ny of the a cts s peci fi ed i n Art. 248 & 249.
Seniority rights ri ghts of empl oyees to certa i n preferenti a l

trea tment ba s ed on the l ength of s ervi ce.
An empl oyee has no i nherent seniority ri ghts, this is ba s ed
on contra ct or s ta tute or a dmi ni s tra ti ve regul a ti on.
Offi cers of a corporation may be held jointly a nd s evera l l y

l i able with the latter for damages for the i llegal dismissal of
a n employee i f the former acted oppresively, willfully and in
ba d faith. Their l iability i s based on Art. 19, 20, 21 a nd 1701,
NCC.
Basis of Computation of Backwages and Separation Pay:

1. Ba s i c Sa l a ry
2. Tra ns porta i on a nd emergency a l l owa nces
3. Va ca ti on or s ervi ce i ncenti ve l ea ves
4. Si ck l ea ves
5. Thi rteenth month pa y
Sepa ration pay may not be awarded in l ieu of reinstatement

to a n empl oyee who wa s di s mi s s ed by rea s on of ULP.
Otherwise, the employer would still get what he wants a nd
the ULP i s condoned.
Separation Pay
- Subs ti tute for
i mmedi a te
a nd
conti nued
re empl oyment wi th
the compa ny
- ori ented towa rds

the
i mmedi a te
future, tra nsi ti ona l
peri od
the
di s missed employee
mus t
undergo
before l oca ti ng a
repl a cement job.
Backwages
- To rel i eve the
empl oyee of l os s of
ea rni ngs tha t he
s uffered duri ng the
peri od between hi s
di s mi s s a l a nd hi s
rei ns ta tement.
- a form of rel i ef ha t
res tores i ncome tha t
wa s lost by rea s on of
unl a wful di s mi s s a l
Separation Pay, How Computed (Grol i er Intl ., Inc. v. Ama ns ec):

Ra te of 1 month for EVERY year of s ervice from the s ta rt of
hi s empl oyment up to the ti me of termi na ti on.
Incl udes the 3-year period in respect of whi ch ba ckwa ges
a re a warded a lthough the di s mi s s ed empl oyee di d not
a ctua l l y s erve duri ng the l a tter peri od.
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LABOR LAW REVIEW

-
The s alary ra te prevailing at the end of the 3-year period of

puta ti ve s ervi ce s houl d be us ed i n s uch computa ti on.
ULP ca s es are not, in view of the publ i c i nteres t i nvol ved,
s ubject to compromi s e.
PENALTY FOR ULP:

1. Fi ne of not l es s tha t P1,000
2. Impri sonment of not l ess tha n 3 months nor more tha n 3
yea rs .
3. Both a t the di s creti on of the court.
CHAPTER XVI TERMINATION OF EMPLOYMENT

AND RETIREMENT
SECURITY OF TENURE Ri ght of employee against unjust and a rbi tra ry
di s missal. Since work is property i n a constitutional sense, he ca n not
be depri ved of i t wi thout:
1. a jus t or a uthori zed ca us e
2. benefi t of a hea ri ng
- i ncl udes his ri ghts a gainst unwa rra nted tra ns fers , demoti on a nd
di mi nuti on of hi s benefi ts .
- thi s is enshrined under Arti cle XIII sec 3 a nd reiterated i n Arti cle III of
the La bor Code
-does not guarantee perpetual employment, a n employee may s till be
termi na ted for jus t or a uthori zed ca us es .
UNION SECURITY CLAUSE vs. SECURITY OF TENURE (Art 280 LC)
USC i s a contractual limitation upon the ST of employee, purs ua nt to
the pol i ce power of the Sta te, i ntended to ma ke uni ons s trong,
thereby becoming effective i nstruments for the workers protections.
The ST of a n empl oyee mus t yi el d to a va l i d USC.
The following are the REGULAR EMPLOYEES:
1. Thos e engaged to perform services which are necessary and
des irable to the business of the ER, employement not for a
a ffi xed project nor s ea s ona l .
2. Ca s ual EEs- 1 yea r of servi ce continuous or broken, regul a r
a s to the activity they perform, and employment continues
wi th the a cti vi ty
CASUAL EMPLOYMENT EE i s engaged to perform tasks which are not
necessa ry or des i ra bl e to the bus i nes s of the or tra de of the ER
-enjoys ST i f has already rendered at l eats 1 yr of s ervi ce conti nuous
or broken
CONSEQUENCE OF VIOLATION OF ST
EE unjus tly dismissed shall be entitled to reins ta tement w/o l os s of
s eniority ri ghts a nd other pri vel eges , ful l ba ck wa ges , a nd other
benefits computed from the time his compens a ti on wa s wi thhel d
unti l he wa s rei ns ta ted.
-ma y a lso recover moral and exempl a ry da ma ges . Attorneys fees
Right to NOTICE and HEARING:
ART 277 LC:
1. wri tten noti ce conta i ni ng ca us e of termi na ti on
2. EEs opportuni ty to be hea rd a nd defend hi ms el f
ART283 for a uthori zed ca us e:
Mus t s erve a notice to the DOLE one month before the termi na ti on.
*The concept of casual and regular employment is designed to put an

end to the practice of ERs of hiring ca suals a nd deprive them of thei r
regul a r empl oyment.
Bustamante v NLRC: The fa ct that Employment is only for a period of
s i x months does not prevent a worker from be comi ng a regul a r
empl oyment s ervi ces i ndespensible to the year round opera ti on of
the compa ny.
Philippine Fruit and Vegetable Company vs. NLRC: The empl oyment
ma y be regul a r even i f the a cti vi ti es a re not conti nuous . Ex:
empl oyment of seeders, operators, sorters sl i cers a nd ja ni tors i n a
food processing company. Company continues opera ti ons through
out the yea r even though the frui ts a re s ea s ona l .
Perpetual Help Credit Cooperative vs. Faburada: Ones regul a ri ty of
empl oyment i s not determi ned by the h ours of work but by the
na ture a nd l ength of ti me one ha s been i n a pa rti cul a r job.
Columbus Phil Bus vs. NLRC: Empl oyment of bus dri vers a nd
conductors i s cons i dered regul a r, render s ervi ce neces s a ry a nd
des irable to the business, notwithstanding that th ey a re compensated
purel y on commi s s i on ba s i s .
+ Qui tclaims a nd waivers are generally frowned upon a s contra ry to
publ i c pol i cy, EE a nd ER does not s ta nd on equa l footi ng.
PROJECT ha s a reference to a particular job or undertaki ng tha t ma y
or ma y not be within the regular or usual business of the ER. Must be
di s tinct, separate a nd i dentifiable from the ERs bus i nes s , dura ti on
mus t be determi ned or determi na bl e.
TEST to determine whether project employees or regular
employees: WON the employees a re assigned to carryout a s peci fi c
project or undertaking the duration a nd scope of which a re speci fi ed
a t the ti me the EEs a re enga ged for tha t project.
PROBATIONARY EMPLOYMENT not exceedi ng 6 months to
determi ne i f the EEs ca n qua l i fy for regul a r empl oyment i n
a ccordance with reasonable standards prescri bed by the empl oyer.
PERIODS:
APPRENTICES: 6 mos or l ess depending upon the na ture of the job,
the a pprentice may not be under probationa ry empl oyment for the
compa ny where he tra i ned
LEARNER -ma y be 3 mos .
PROFERSSORS/ INSTRUCTORS/TEACHERS:
(DOLE-DECS-CHED TESDA Ord. No. 01 s 1996):
El em a nd HS: 3 yea rs
Col l ege: 6 cons ecuti ve s emes ters
REQUIREMENTS for private school teacher to acquire security of
tenure:
1. ful l ti me tea cher
2. rendered 3 cons ecuti ve yea rs of s ervi ce
3. s a ti s fa ctory s ervi ce
43
LABOR LAW REVIEW

PAKYAO EEs who a re considered regula r workers enjoy s ecuri ty of
tenure, as long as the owner of the establ i s hment exerci s e control
over them.
JUST CAUSESArt 282 LC)
1. Seri ous misconduct or wilful disobedience by the EE of the
l a wful order of the ER i n connecti on wi th hi s work
2. Gros s a nd ha bi tua l negl ect by the EE of hi s duti es
3. Fra ud or wilful breach by the EE of the trust reposed i n hi m
by hi s empl oyer
4. commi ssion of a cri me by the EE ga i ns t the Er, hi s fa mi l y
5. other a nalogous ca us es ( thos e cha ra cteri zed by fa ul t or
cul pa bi l i ty of EE i e i neffi ci ency)
AUTHORIZED CAUSE:
1. Ins ta l l a ti on of La bor s a vi ng devi ce
2. Redunda ncy
3. Retrenchment to prevent l os s es
4. cl os ure of establishment unless for a cause to obey the l a w
5. Di s ea s e
Almira et al. vs. Goodrich: Rel uctance of Courts to allow the dismissal
of a worker. The law regards the worker wi th compa s s i on. Where a
penal ty l es s puni ti ve woul d s uffi ce, wha tever mi s s teps ma y be
commi tted by the worker s houl d not be vi s i ted wi th the s upreme
pena l ty of di s mi s s a l .
Instances when DISMISSAL was deemed HARSH:
1. Pi oneer texturizing vs . NLRC: Dismis s a l of revi s er a fter 12
yea rs of service after merely tri mming the cl oth negligently.
2. Na ti ona l Suga r Refi neri es vs . NLRC: 20 yea rs s ervi ce,
negl i gence a s wa rehous e s u pervi s or
3. Perez vs . Medical City: Pi l fera ge of s ome offi ce s uppl i es
a fter 20 yea rs of s ervi ce.
DISMISSAL not harsh: Ja mer vs . NLRC: ca s hi ers fa i l ed to report
s hortages to the manager- breach of fiduciary trust, regretta bl e l a ck
of l oya l ty.
* Cosep vs. NLRC: Mi s conduct, however s eri ous mus t be i n
connection wi th the empl oyees work i n order to cons ti tute a jus t
ca us e for s epa ra ti on.
+ Cl ea rance from DOLE prior to dismissal of employee except for jus t
ca us e i s no l onger neces s a ry.
Twin requirement prior to dismissal: ( Nei ther ca n be di s pens ed
wi th)
1. Noti ce- to i nform the empl oyee concerned of the
empl oyers i ntent to dismiss a nd the rea s on for the s a i d
di s mi s s a l .
2. Hea ring- affords the EE a n opportuni ty to a ns wer hi s Ers
cha rges
Batangas Laguna Tayabas Bus Co. vs. NLRC: Fi re now expl a i n l a terNOT ALLOWED! Not i n a ccorda nce wi th due proces s .
Seahorse Maritime Corp vs. NLRC: Noti ce a nd hea ri ng a ppl y to
s eamen. Before disembarking from the vessel, must be gi ven noti ce
of cha rges a gainst him a nd a fford a formal investigation where he can
defend hi ms el f pers ona l l y.
+ Pendi ng the res ol uti on of the ca s e by the l a bor a rbi ter, the
di s missed EE may be ordered rei ns ta ted, i f there i s a pri ma fa ci e
fi nding by the a ppropriate official of DOLE that the termi na ti on ma y
ca us e a s erious labor dispute or a n i mplementation of a mass l a y off.
+ Empl oyer ha s the burden of provi ng the exi s tence of va l i d or
a uthori zed ca us e.
CONSTRUCTIVE DISMISSALS:
a . EE qui ts work due to ERs unreasona bl e, humi l i a ti ng a nd
demeaning a ctua ti ons whi ch rendered conti nued work
i mpossible is deemed to have been illegally dismissed, w/o
di mi nuti ons of s a l a ry.
b. mea ns qui tti ng beca us e conti nued empl oyment i s
i mpos s i bl e, unrea s ona bl e or unl i kel y, a s a n offer i n
di mi nuti on i n ra nk a nd i n pa y
c. i s a n i nvoluntary resignation resorted to when continued
empl oyment rendered i mpos s i bl e.
d. Tra ns fer a mounts to cons tructi ve di s mi s s a l when i t i s
UNREASONABLE, UNLIKELY, INCONVINIENT, IMPOSSIBLE
AND PRJUDICIAL TO THE EMPLOYEE
Elements of DISOBEDIENCE or INSUBORDINATION:
1. EEs conduct mus t ha ve been wi l ful a nd i ntenti ona l ,
wi l fulness being a wrongful a nd pervers e menta l a tti tude
2. The rul es instructions must be rea s ona bl e, l a wful , ma de
known to the EE a nd perta i n to the duti es whi ch he ha s
been enga ged to di s cha rge
GROSS NEGLIGENCE a s a ground for di s mi s s a l : negl i gence
cha ra cterized by wa nt of even the slight ca re, acting or omitting to act
i n a s ituation where there is duty to a ct, not i nadvertently but wilfully
a nd i ntentionally wi th a conscious indifference to consequences as far
a s other pers ons ma y be a ffected.
LOSS OF CONFIDENCE a s a ground for dismissal- a va lid ground, proof
beyond reasonable doubt i s not required to dismiss him i n his charge.
It i s s uffi ci ent i f there i s s ome ba s i s for the l os s of confi dence.
Requi s i tes :
1. Shoul d not be s i mul a ted
2. s hould not be used as a subterfuge for i llegal or unjusti fi ed
ca us es
3. s houl d not be a rbi tra ry a nd a s s erted i n the fa ce of
overwhel mi ng evi dence to the contra ry
4. mus t be genuine a nd not a mere a fterthought to jus ti fy
ea rl i er a cti on ta ken In ba d fa i th
+ LOC a pplicable only to those EEs who enjoy s ome degree of trus t
a nd confidence of the Er a s that i s one of the rea s ons why he wa s
empl oyed i n the fi rs t pl a ce.
CHAPTER 17 REMEDIES
Art. 217. La bor Arbiters s hall have original and exclusi ve juri s di cti on
to hea r a nd decide wi thin thirty (30) working days a fter submission of
the ca s e by the parties for decision without extension the fol l owi ng
ca s es i nvolvi ng workers, whether a gri cul tura l or non -a gri cul tura l :
1. Unfa i r l a bor pra cti ce (ULP) ca s es ;
2. Termi na ti on di s putes ;
44
LABOR LAW REVIEW

3.
4.
5.
6.
If a ccompanied with a cl aim for reinstatement, those ca s es

tha t workers may fi le involving wages, ra tes of pay, hours of
work a nd other terms a nd condi ti ons of empl oyment;
Cl a i ms for actual, moral, and exemplary a nd other fo rms of
da mages arising from the empl oyer-empl oyee rel a ti ons ;
Ca s es arising from vi olation of Art. 264 i ncluding ques ti ons
i nvol vi ng the l ega l i ty of s tri kes a nd l ockouts ; a nd
Except cl aims for employees compensation, social securi ty,
medi care and maternity benefits, al l other cl a i ms a ri s i ng
from empl oyer-empl oyee rel a ti ons , i ncl udi ng thos e of
pers ons i n domes ti c or hous ehol d s ervi ce, i nvol vi ng a n
a mount exceeding P5,000.00 whether or not a ccompa ni ed
wi th a cl a i m for rei ns ta tement.
Even i f the claim exceeds P5,000.00, the Regiona l Di rector ma y s ti l l

exerci se the enforcement and vi sitorial powers vested i n hi m by Art.
128.
Is the decision of the Regional Director appealable? YES, to the NLRC
on grounds provi ded i n Art. 223, wi thi n fi ve ca l enda r da ys from
recei pt of a copy of s a i d deci s i on.
How a re di s putes a ri s i ng from wa ge di s torti ons s ettl ed?
When there i s CBA, through the gri eva nce procedure a nd, i f i t
rema i ns uns ol ved, through vol unta ry a rbi tra ti on.
When there i s no CBA, the di s pute s ha l l be s ettl ed through the
Na ti onal Conciliation and Mediation Board (NCMB) and, if it rema i ns
uns olved a fter ten ca lendar days of conciliation, shal l be referred to
the a ppropri a te bra nch of the NLRC.
May lack of jurisdiction of the Labor Arbiter be raised for the first
time on appeal?
YES. Juri s diction over the subject matter is conferred by l aw. Es toppel
does not apply to confer jurisdiction to a tri bunal that has none over a
ca us e of action. The defense may be i nterposed at a ny ti me, even on
a ppeal, or even a fter final judgment. (Uni on Motors Corp. vs . NLRC,
September 16, 1999)
NO. Whi l e jurisdiction may be a ssailed at a ny s ta ge, a pa rtys a cti ve
pa rti cipation i n the proceedings before a court wi thout juri s di cti on
wi l l estop such party from assailing lack of i t. (Ilocos Sur Electric Coop.
vs . NLRC, Februa ry 1, 1995)
NO. Where a party has voluntarily s ubmitted to the jurisdiction of the
court or tri buna l , he ca nnot l a ter on, i f he gets a n unfa vora bl e
judgment, adopt a n i ncons i s tent pos ture a nd a tta ck the l a tters
juri s di cti on. (Ti ja m vs . Si bongha noy, Augus t 18, 1988)
However, where the tribunal has not yet decided the case, a party can
s ti ll raise the issue of lack of jurisdiction. (Vargas vs . Akai Phi l s ., Dec.
14, 1987)
Some decisions on jurisdiction

Not every di spute between a n empl oyer a nd empl oyee i nvol ves
ma tters tha t onl y l a bor a rbi ters a nd the NLRC ca n res ol ve. For
exa mple in a si mpl e col l ecti on s ui t wherei n the empl oyer i s the
credi tor a nd the empl oyee the debtor. The fa ct tha t they were
empl oyer a nd empl oyee a t the ti me of the tra ns a cti on does not
nega te the ci vi l juri s di cti on of the tri a l court. The ca s e does not
i nvol ve adjudi ca ti on of a l a bor di s pute but recovery of a s um of
money.
If the relief sought has to do with the enforcement of the contra ct or
the recovery of damages agreed upon i n the contract, s uch ca us e of
a cti on i s wi thi n the rea l m of Ci vi l l a w, a nd juri s di cti on over the
controvers y bel ongs to the regul a r courts .
The l abor a rbiter does not have jurisdiction over cl aims based on tort
or qua si-delict that has no reasonable ca usal connection wi th a ny of
the cl aims provided for in Art. 127, other labor statutes, or CBAs . The
empl oyer-empl oyee rel a ti on i s merel y i nci denta l .
The La bor Arbiter ca nnot a cquire jurisdiction over the pers on of the
res pondent without the l atter bei ng s erved wi th s ummons . In the
a bs ence of servi ce of s ummons or a va lid waive thereof, the hearings
a nd judgment rendered by the La bor Arbi ter a re nul l a nd voi d .
It i s the RTC a nd not the NLRC whi ch ha s ori gi na l a nd excl us i ve

juri s diction over cases invol vi ng the remova l from empl oyment of
corpora te offi cers . A corpora te offi cers di s mi s s a l i s a l wa ys a
corppora te a ct a nd/or a n i ntra -corpora te controvers y.
Are technical rules of procedure and evidence prevailing i n courts of

l a w a pplicable to proceedings before l a bor a rbi ters a nd the NLRC?
NO. It i s the spirit a nd i ntention of the Code that they s hall us e every
a nd a ll reasonable means to ascertain the fa cts i n each case s peedi l y
a nd objectively, without regard to technicalities of law or procedure,
a l l i n the i nteres t of due proces s .
The La bor Arbiter has no juri s di cti on over a compl a i nt for i l l ega l
di s mi s s a l fi l ed a ga i ns t a bra nch, a gency, s ubdi vi s i on a nd
i ns trumentality of the government, i ncluding GOCCs . It falls under the
juri s diction of the Ci vi l Servi ce Commi s s i on (CSC). However, onl y
GOCCs wi th ori gi na l cha rters a re embra ced i n the ci vi l s ervi ce.
Do La bor Arbiters have juri s di cti on to hea r a nd deci de cl a i ms for

da ma ges a ri s i ng from unfa i r l a bor pra cti ces ? YES.
Does the Regi ona l Di rector of the Depa rtment of La bor ha ve
juri s di cti on to hea r a nd deci de money cl a i ms of workers ? YES,
through s umma ry proceedi ngs a nd a fter due noti ce.
Wha t a re the requisites for the exercise of the power of the Regiona l
Di rector to a djudi ca te empl oyees money cl a i ms ?
Under Art. 129, the ff. requi s i tes mus t concur:
1. the cl aim is presented by an employee or person employed
i n domes ti c or hous ehol d s ervi ce or hous ehel per;
2. the cl a i m a ri s es from empl oyer-empl oyee rel a ti ons ;
3. the cl aimant no l onger bei ng empl oyed, does not s eek
rei ns ta tement;
4. the a ggrega te money cl a i m of ea ch empl oyee or
hous ehel per does not exceed P5,000.00.
The l abor a rbiter has jurisdicti on over a termi na ti on a nd ULP ca s e

fi l ed by workers who were dismissed, notwithstandi ng the fa ct tha t
the CBA provi des tha t wa ges , hours of work, condi ti ons of
empl oyment a nd/or employer-employee relations s hall be s ettled by
a rbi tration. The CBA must s tate i n unequi voca l l a ngua ge tha t the
compa ny a nd the union conform to the submi s s i on of termi na ti on
di s putes a nd ULP to vol unta ry a rbi tra ti on.
The l abor a rbiters, not the regular courts, have original a nd exclus i ve
juri s diction to hear a nd decide ques ti ons i nvol vi ng the l ega l i ty of
s tri kes a nd l ockouts .
An empl oyee ca nnot be permitted to prosecute his claims piecemeal .
He ca nnot be allowed to s ue i n two forums : one, before the La bor
Arbi ter for rei ns ta tement a nd recovery of ba ckwa ges , or for
s eparation pay, upon the theory that his dismis s a l wa s i l l ega l ; a nd
two, before a court of jus ti ce for recovery of mora l a nd other
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LABOR LAW REVIEW

da mages, upon the theory tha t the ma nner of hi s di s mi s s a l wa s
unduly i njurious, or tortious. This is what i n procedural law i s known
a s s plitting ca uses of a ction, engendering multiplicity of a cti ons . It i s
s uch dupl i ci ty whi ch the RoC rega rd a s ground for a ba tement or
di s missal of actions, constituting either litis pendentia or res judicata .
If the cl aim for damages is interwoven with a labor di s pute exi s ti ng
between the parties, it must be ventilated before the labor a rbiter to
a voi d s pl i t juri s di cti on whi ch i s obnoxi ous to the orderl y
a dmi ni s tra ti on of jus ti ce.
If the a lleged injury i s di rectl y rel a ted to the empl oyer-empl oyee
rel a tionship, the compl a i nt i s ba rred by the rea s ona bl e ca us es
connection rule which recognizes the jurisdi cti on of l a bor a rbi ters
over cl a i ms for da ma ges i n connecti on wi th termi na ti on of
empl oyment. What is essential is the character of the principal rel i ef
s ought. Where s uch relief ca n be granted under the La bor Code, the
ca s e s hould fall wi thi n the juri s di cti on of the La bor Arbi ter, even
though a cl aim for damages might be a sserted as an incident to s uch
cl a i m.
Da ma ges
As a rul e, moral damages are recoverable only where the dismissal of
the employee was a ttended by ba d faith or fra ud or cons ti tuted a n
a ct oppressive to labor, or was done in a manner contrary to mora l s ,
good customs, or public policy, a nd that social humiliation, wounded
feel i ngs , gra ve a nxi ety, etc. res ul ted therefrom.
Al though his dismissal is based on just or authorized ca us es , he ma y
s ti ll recover moral a nd exemlary da mages from the empl oyer i f the
l a tter effected the dismissal in an a nti-social or oppres s i ve ma nner.
As rega rds exempla ry da ma ges , they ma y onl y be a wa rded i f the
di s missal was shown to have been effected in a wanton, opp res s i ve
or ma l evolent manner, or where the pa rty i nvol ved i s enti tl ed to
mora l or compens a tory da ma ges .
In a n a ction for recovery of wages or where a n employee wa s forced
to l i tigate and incur expenses to protect his ri ghts and interes t, he i s
enti tl ed to a n a wa rd of a ttorneys fees .
Ma y a n employee be a warded 13th month pay a nd holiday pay even if
he di d not prove tha t he wa s not pa i d thes es benefi ts ?
YES. The cl aimants allegation of non-payment is a negative allegation
whi ch need not be supported by evidence unless i t is an essential part
of the ca use of a ction. The burden of provi ng tha t pa yment of s a i d
benefi ts ha s been ma de res ts upon the empl oyer.
Ma y the l a bor a rbi ter a djudi ca te on cl a i ms not a l l eged i n the
compl a i nt?
YES, provi ded the claims a re ma de i n the compl a i na nts pos i ti on
pa per.
Is the l a bor a rbi ter requi red to hol d forma l hea ri ngs ?
The holding of a formal hearing or tri al i s discretionary with the la bor
a rbi ter a nd is s omething that the parties ca nnot demand a s a ma tter
of ri ght. It i s within his authority to decide the case before him, based
on the position papers a nd s upporti ng documents of the pa rti es ,
wi thout a tri a l or forma l hea ri ng.
Is the Rules of Court a ppl i ca bl e to proceedi ngs before the l a bor
a rbi ter a nd NLRC?
YES, i n the absence of any a pplicable provision i n the NLRC Rul es of
Procedure.
The Mi nistry of Labor a nd Empl oyment does not ha ve juri s di cti on

over a n i ndependent contra ctors cl a i m beca us e no empl oyerempl oyee rel a ti ons hi p exi s ts .
If s ome of the workers of the independent contractor were not pa i d
thei r wages, the indirect employer will be jointly a nd severall y l i a bl e
wi th the independent contractor for unpai d wa ges to the extent of
the work performed under the contra ct.
Does the l a bor a rbi ter ha ve juri s di cti on over a cl a i m for i l l ega l
di s missal filed by a pastor a gainst the Seventh-Day Adventist Mi ssi on
Corpora tion, in vi ew of the pri nci pl e of s epa ra ti on of Church a nd
Sta te?
YES. Wha t i s i nvol ved here i s the rel a ti ons hi p of the church a s
empl oyer a nd the minister a s an employee. It i s purel y s ecul a r a nd
ha s no relation wha ts oever wi th the pra cti ce of fa i th, wors hi p or
doctri nes of the church.
The Med-Arbiter of the Bureau of Labor Relations has excl us i ve a nd
ori gi nal jurisdiction over i ntra-union and inter-union controversies. An
i ntra -union conflict i s within or i nside a labor uni on. An i nter-uni on
confl ict is one occurring or ca rried on between or a mong unions. The
deci sion of the Med-Arbiter is a ppealable to the Secreta ry of La bor.
La bor Arbi ters have no jurisdiction over i nter-uni on or i ntra -uni on
confl i cts , except where the s a me a l s o cons ti tute ULP.
Ordi nary notices usually published in the newspapers i nformi ng the
publ i c tha t a certa i n empl oyee i s no l onger connected wi th a n
empl oyer a re not libelous. This is necessary to protect the bus i nes s
from l os s or i njury.
The l abor a rbiter does not have jurisdiction over a case that i nvol ves
the i nterpretation of CBA. Ma tters involving the i nterpreta ti on of a
CBA not res olved or settled through the grieva nce machinery must be
referred to vol unta ry a rbi tra ti on.
Ma tters that fall under the ori gi na l a nd excl us i ve juri s di cti on of
vol unta ry a rbi tra tors provi ded for i n a CBA:
1. Unres olved grievances a risi ng from the i nterpreta ti on or
i mplementa ti on of the CBA a nd thos e a ri s i ng fro m the
i nterpreta ti on or enforcement of compa ny pers onnel
pol i ci es .
2. Al l other l a bor di s putes i ncl udi ng ULP a nd ba rga i ni ng
dea dlocks submitted to them by a greement of the pa rti es .
3. Al l wa ge distortion issues a rising from the application of any
wa ge orders .
4. Al l unresolved gri evances aris i ng from the i nterpreta ti on
a nd i mplementation of the productivity i ncentive programs
under RA 6971.
Onl y di sputes i nvolving the union a nd the company shall be referred
to the gri eva nce ma chi nery or vol unta ry a rbi tra tors . An a ctua l
termi nation case falls wi thi n the juri s di cti on of the l a bor a rbi ter.
Wi thi n what period shoul d (a ) a compl a i nt for ULP a nd (b) money
cl a i ms be fi l ed wi th the l a bor a rbi ter?
(a ) Wi thi n one year from accrual thereof, otherwise, it s hall be
forever ba rre d.
(b) Wi thi n three yea rs from the ti me the ca us e of a cti on
a ccrues , otherwi s e, they s ha l l be forever ba rred.
When does the pres cri pti ve peri od s ta rt to run?
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LABOR LAW REVIEW

The prescriptive period for an action for reinstatement or for money
cl a ims starts to run onl y when the empl oyer ma kes a ca tegori ca l
rejecti on of the cl a i m; mere i na cti on ca nnot be cons i dered
ca tegori ca l .
How ma y the three yea r pres cri pti ve peri od for money cl a i ms be
i nterrupted?
By the fi ling of the cl aim with the a ppropriate judicial or quasi-judicial
body or by a wri tten demand a ddressed to the employer (debtor). If
the ca s e i s fi l ed before the RTC a nd i s di s mi s s ed for l a ck of
juri s diction, the cl aimant will be left in exactly the same position as i f
no ci vi l ca s e ha d been fi l ed a t a l l .
Art. 292. Mone y cl aims shall be filed before the a ppropri a te enti ty
i ndependently of the cri minal a cti on tha t ma y be i ns ti tuted i n the
proper courts . Pendi ng the fi na l determi na ti on of the meri ts of
money cl aims filed with the appropriate entity, no civil a ction a ri s i ng
from the s a me ca us e of a cti on s ha l l be fi l ed wi th a ny court.
A cri mi nal case filed a gainst an employee does not have the effect of
s us pending or i nterrupting the running of the prescriptive peri od for
the fi ling of a n a cti on for i l l ega l di s mi s s a l . An a cti on for i l l ega l
di s missal is a n administrative case which is separate a nd distinct from
a cri mi na l a cti on.
The procedure followed by l a bor a rbi ters i n the hea ri ng of ca s es :
The l abor a rbiter shall first summon the pa rti es for the purpos e of
a mi cable settlement, simplification of issues, a nd determi na ti on of
other preliminary i ssues. If no a micable settlement i s a rri ved a t, he
s ha ll require the parties to s ubmit verified position papers a nd then
determine whether there is a need for a formal trial or hea ri n g. The
deci sion of the labor arbiter must be cl ear a nd concise and conta i n a
bri ef statement of facts, the issues a nd l a ws i nvol ved, the rea s ons
therefor, a nd the rel i ef gra nted.
Non-l awyers may a ppear before labor a rbiters only i f they repres ent
thems el ves or thei r orga ni za ti ons or members thereof.
The decisions of l abor a rbiters a re appea l a bl e wi thi n ten ca l enda r
(not working) days from receipt of the decision, to the NLRC, on the
ff. grounds :
1. There is prima facie abuse of discretion on the pa rt of the
l a bor a rbi ter;
2. If the decision, order or a ward was secured through fra ud
or coerci on, i ncl udi ng gra ft a nd corrupti on;
3. If ma de purel y on ques ti ons of l a w
4. If s erious errors in the fi ndi ngs of fa cts a re ra i s ed whi ch
woul d ca use grave or irreparable da ma ge or i njury to the
a ppel l a nt.
A peti tion for relief from the decision of the labor a rbiter may be filed
wi th the NLRC within 60 days from knowledge of the judgment a nd
wi thin si x months from entry of the judgment. The regl ementa ry
peri od is reckoned from the time the partys counsel recei ves noti ce
of the deci s i on.
How i s the a ppea l perfected?
By the fi ling by the a ppellant with the labor a rbiter his memorandum
of a ppeal, copy furni s hed the a ppel l ee, a nd the pa yment of the
a ppeal fee. If the tenth da y fa l l s on a Sa turda y, Sunda y or a l ega l
hol iday, the appeal may be filed on the next bus i nes s da y. Where
there was a one day delay i n the filing of the a ppeal occasi oned by a
typhoon, the a ppea l ma y s ti l l be a l l owed.
Even where the reglementary period for filing an appeal ha s a l rea dy
l a ps ed, a peti ti on for rel i ef fi l ed by the workers ma y s ti l l be
entertained in order to prevent depri va ti on of benefi ts whi ch a re
ri ghtful l y due them.
The l aw does not provide that payment of the appeal fee is necessa ry
for the perfection of the a ppeal. Failure to pay the a ppeal fee docket
i s not fatal. As a matter of fact, Art. 277 (d) provi des tha t no docket
fee s ha l l be a s s es s ed i n l a bor s ta nda rd di s putes .
The l egal effect of failure of the a ppel l a nt to furni s h a copy of hi s
memorandum appeal to the adverse party i s a mere formal lapse a nd
a n excusable neglect. It does not jus ti fy di s mi s s a l of the a ppea l .
General Rule: The perfection of an appeal i n the manner a nd wi thi n
the peri od pres cri bed by l a w s houl d not onl y be cons i dered
ma nda tory but juri s di cti ona l .
Excepti on: When there is a n a cceptable reason to excus e ta rdi nes s .
1. funda menta l cons i dera ti ons of s ubs ta nti a l jus ti ce
2. prevention of miscarriage of justice or of unjust enrichment
3. s pecial ci rcumstances of the ca se combined wi th i ts l ega l
meri ts
4. l a bor a rbi ters l a ck of juri s di cti on i s pa l pa bl y cl ea r
Is the order of reinstatement of a labor a rbiter s tayed by a n a ppea l ?
NO. The rei ns ta tement a s pect of the deci s i on i s i mmedi a tel y
executory. The employee s hall either be a dmitted back to work or a t
the option of employer merely reinstated i n the payroll. The pos ti ng
of a bond s ha l l not s ta y the executi on for rei ns ta tement.
How i s an a ppeal by a n employer from a monetary a ward by the labor
a rbi ter perfected?
Upon the posting of a ca s h or s urety bond i s s ued by a reputa bl e
bonding company duly accredited by the Commission in the a mount
equivalent to the monetary a ward i n the judgment a ppea l ed from.
The fi ling of a motion to reduce bond shall not stop the running of the
peri od to perfect a ppea l .
When i s pos ti ng of the bond not neces s a ry?
If the moneta ry a wa rd cons i s ts s ol el y or mora l a nd exempl a ry
da ma ges .
Where the a ppellant employer is prepared to accept and comply with
the moneta ry a wa rds .
Ma y the pos ting of a bond i n order to perfect an appeal be dispensed
wi th?
YES, i f the a ppellant is i nsolvent or a di s mi s s a l of thei r a ppea l for
fa i l ure to pos t a bond wi l l be ta nta mount to vi ol a ti on of the
cons titutional guaranty that free access to courts s hall not be deni ed
to a ny pers on by rea s on of poverty.
Does the a mount of the bond i ncl ude the a wa rd for mora l a nd
exempl a ry da mma ges a nd a ttorneys fees ? NO.
Genera l Rul e: A pa rty who ha s not a ppea l ed i s not enti tl ed to
a ffi rmative relief other than the ones gra nted i n the deci s i on of the
court bel ow.
Excepti on: Errors may be considered, a l though una s s i gned, i f they
i nvol ve:
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LABOR LAW REVIEW

1.
Errors a ffecti ng the l ower courts juri s di cti on over the

s ubject ma tter
2. Pl a i n errors not s peci fi ed
3. cl eri ca l errors
Ra ti onale: The s trict and rigid a pplication of Rules of Pro cedure would
res ult in technicalities tha t tend to frus tra te ra ther tha n promote
s ubs ta nti a l jus ti ce.
Compos i ti on of the NLRC
The NLRC i s composed of a Chairman and 14 members. Five members
ea ch s hall be chosen from among the nominees of the workers a nd
empl oyers organizations respecti vel y. The Cha i rma n a nd the four
rema i ni ng members s ha l l come from the publ i c s ector.
The Commission may s it en banc or i n five divisions, ea ch compos ed
of three members. The first a nd s econd divisions s hall ha ndl e ca s es
comi ng from the NCR, a nd the third, fourth and fifth divisions , ca s es
from other pa rts of Luzon, from the Vi s a ya s a nd Mi nda na o,
res pecti vel y.
Powers of the NLRC
1.
2.
3.
4.
5.
Promul gate rules a nd regulations governing the hearing and

di s pos i ti on of ca s es .
To a dminister oaths, summon the parties, issue s ubpoena s
To conduct i nves ti ga ti on for the determi na ti on of a
ques ti on, ma tter or controvers y wi thi n i ts juri s di cti on;
di rect pa rti es to be joi ned or excl uded from the
proceedings, correct, a mend, or waive a ny error, defect o r
i rregul a ri ty whether i n s ubs ta nce or i n form
To hol d a ny person i n contempt directl y or i ndi rectl y a nd
i mpos e a ppropri a te pena l ti es therefor.
To enjoin or restrain a ny a ctual or threatened commi s s i on
of a ny or a ll prohibited or unla wful a cts or to requi re the
performa nce of a pa rti cul a r a ct i n a ny l a bor di s pute.
La bor Arbi ter Aquino found that PAL i llegally dismissed Sings on.
PAL a ppealed Aquinos decision to the NLRC. Mea nwhile, Aquino
wa s a ppoi nted the pres i di ng commi s s i oner of the s econd
di vi sion of the NLRC. The s econd division acted on PALs appea l ,
revers ing the decision of then La bor Arbiter Aquino. Is the NLRC
deci s i on revers i ng the l a bor a rbi ters deci s i on va l i d?
NO. There was a deni a l of due proces s when Commi s s i oner
Aqui no participated in reviewing his own deci s i on a s a former
l a bor a rbi ter. Li ti ga nts a re enti tl ed to a revi ew of three
commi ssioners who are impartial from the s ta rt of the revi ew
proces s . Commi s s i oner Aqui no ca n ha rdl y be cons i dered
i mpartial since he was the a rbiter who decided the ca s e under
revi ew.
Is the NLRC or a Labor Arbiter empowered to conduct a n ocul a r
i ns pecti on?
YES. Under Art. 219, a t a nyti me during worki ng hours a nd a s k
a ny empl oyee or a ny pers on for a ny i nforma ti on or da ta
concerning any matter relative to the object of the i nvestigation.
Ma y the NLRC cons ider evidence submitted for the first ti me on
a ppea l ?
YES, i n order to a voi d deni a l of due proces s . But where the
document submitted to the NLRC for the fi rs t ti me on a ppea l
wa s available during the proceedings before the l a bor a rbi ter,
the a ppellant cannot offer any excuse for i ts non -s ubmi s s i on,
a nd a dmission of such document by the NLRC i s unwa rra nted.
Duri ng the pendency of the appeal before the NLRC, the pa rti es
entered i nto a compromi s e a greement. Is the co mpromi s e
a greement whi ch wa s a pproved by the NLRC va l i d?
YES. Under Art. 2041 of the Ci vi l Code, s houl d a pa rty fa i l or
refus e to comply with the terms of a compromi s e or a mi ca bl e
s ettl ement, the other pa rty coul d ei ther (1) enforce the
compromise by a writ of execution, or (2) regard i t as res ci nded
a nd s o i ns i s t upon hi s ori gi na l dema nd.
Summons on the respondent shall be served on the respondent
pers onally or by registered mail. If the pa rty i s repres ented by
couns elor or a ny a uthorized representative or a gent, s ummons
s ha l l be s erved on s uch pers on.
Wha t i s the judicial remedy a gainst deci s i ons of the NLRC a nd
the Secreta ry of La bor a nd Empl oyment?
Peti ti on for certi ora ri under Rul e 65, for gra ve a bus e of
di s creti on a mounti ng to l a ck or exces s of juri s di cti on. The
peti ti on s houl d be fi l ed wi th the Court of Appea l s .
Wi thi n what period should the peti ti on for certi ora ri be fi l ed
wi th the Court of Appea l s ?
Wi thi n 60 days from notice of the judgment or from noti ce of
the res ol uti on denyi ng the peti ti oners moti on for
recons i dera ti on.
Is the failure of the petitioner to file a motion for reconsideration
before filing a petition for certiorari before the Court of Appeal s
a l wa ys a fa ta l omi s s i on?
NO, i n the i nterest of substantial justice, the procedura l l a ps e
ma y be di s rega rded to a fford protecti on to the di s mi s s ed
empl oyee. But an MR is not required when the questions ra i s ed
i n the petition for certiorari a re those which have been squa rel y
ra i s ed i n a nd pa s s ed upon by the NLRC.
The deci s i on of the Secreta ry of La bor i s s ubject to judi ci a l
revi ew onl y through a s peci a l ci vi l a cti on for certi ora ri .
The general rule i s that a n MR i s indispensable before res ort to
the s peci a l ci vi l a cti on for certi ora ri to a fford the court or
tri bunal the opportuni ty to correct i ts error, i f a ny. Any pa rty
cl a i mi ng exempti on from thi s rul e mus t s how s uffi ci ent
jus ti fi ca ti on.
Wha t weight should be given to the factual findings of the NLRC?
Not onl y respect but at ti mes even final i ty i f s uch fi ndi ngs a re
s upported by s ubstantial evidence, especially s o i f the fi ndi ngs
a re a ffirmed by the CA. Such findings of fact ca n only be set aside
upon s howing of gra ve abuse of discretion, fraud, or error of law.
The contra di ctory fi ndi ngs of the NLRC a nd the CA provi de
s uffi ci ent jus ti fi ca ti on for the SC to revi ew the fa cts .
How s hould the monetary a ward of the POEA a gainst a recrui ter
be i mpos ed?
It s hould i nitially be enforced against the cash a nd s urety bonds
fi l ed wi th the POEA. These bonds answer for all sorts of liabilities
of the recruiter to the worker and to the POEA. The obl i ga ti ons
they gua ra ntee a re conti nui ng; they a re s ubject to
repl enishment when they a re garnished and failure to repleni s h
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LABOR LAW REVIEW

s ha ll ca use the sus pens i on or ca ncel l a ti on of the recrui ters
l i cens e.
fi l es a motion for execution before the voluntary a rbitrator or i n

hi s a bs ence the l a bor a rbi ter.
Who ha s the power to suspend or ca ncel the license or a uthority

to recrui t empl oyees for overs ea s empl oyment?
Thi s power i s concurrentl y ves ted wi th the POEA a nd the
Secreta ry of La bor under Art. 35.
Do a wa rds or decisions of volunta ry a rbi tra tors cons ti tute res

judi ca ta ?
YES, on the theory that the ma tter ha s been a djudged by the
tri bunal which the parties have agreed to make as tribunal of last
res ort.
Art. 36 empowers the Secretary of Labor to restrict and regulate

the recrui tment a nd pl a cement a cti vi ti es of a genci es .
Remedies of a third party whose properti es ha ve been l evi ed
upon i n a l a bor ca s e:
Fi l e a third party claim with the Sheriff of the Labor Arbi ter; a nd
If the thi rd party cl aim is denied, the third party may a p pea l the
deni a l to the NLRC.
The fi ling of a third party cl aim wi th the La bor Arbi ter a nd the
NLRC does not preclude the petitioner from filing a subs equent
a cti on for recovery of property a nd damages wi th the RTC. And
the i nstitution of s uch wi l l not ma ke the peti ti oner gui l ty of
forum s hoppi ng.
Is the order of execution of a fi na l a nd executory judgment of
the La bor Arbi ter a ppea l a bl e?
NO. Otherwi s e, there woul d be no end to a ca s e.
Wha t i s vol unta ry a rbi tra ti on?
It i s the s ettlement of a controversy or di s puted ma tter by the
deci sion of arbitrator or a rbitrators, freely selected or chosen by
the pa rties and to whom s uch controversy or disputed matter i s
by a greement s ubmi tted for a fi na l a nd bi ndi ng deci s i on.
Wha t i s compul s ory a rbi tra ti on?
They ma y ta ke place without or against the wi l l of the pa rti es .
They a re compel l ed by l a w to s ubmi t thei r di s putes to
a rbi tra ti on.
Ma y the Secreta ry of La bor excl ude the uni on offi cers , s hop
s tewards a nd those wi th pendi ng cri mi na l cha rges from the
di rective to the Company to a ccept ba ck the s tri ki ng workers ?
NO. Once a n a ssumption/certification order is issued, strikes a re
enjoined, or i f one has a l rea dy ta ken pl a ce, a l l s tri kers s ha l l
i mmedi a tel y return to work. To excl ude them wi thout fi rs t
determining whether they knowi ngl y commi tted i l l ega l a cts
woul d be ta nta mount to di s mi s s a l wi thout due proces s .
Ma y the Secreta ry of La bor order the executi on of hi s order
whi ch is being questioned in a certiorari proceedi ng i n the SC?
YES, for a s l ong as no writ of injuncti on or res tra i ni ng order i s
i s sued in the special civil a ction for certi ora ri , no i mpedi ment
exi s ts a nd there i s nothi ng to prevent the l ower court from
exerci sing its jurisdiction and proceeding with the case pendi ng
before i t.
Are vol untary a rbitration a wards or decisions a ppealabl e to the
l a bor a rbi ter or the NLRC?
NO. Vol untary a rbitration a wa rds s ha l l be fi na l a nd executor
a fter ten days from receipt of the copy of the a ward or deci s i on
by the pa rties. They ma y be executed when a ny i nterested pa rty
Art. 262-B provi des that awards of voluntary a rbitrators are final
a nd executor. Ma y s uch a wa rds be neverthel es s s ubject to
judi ci a l revi ew?
YES. The errors of fact or l aw must be so potent a nd gros s a nd
prejudi ci a l a s to a mount to a gra ve a bus e of di s creti on.
The proper remedy from an adverse deci s i on of the vol unta ry
a rbi trator i s a peti ti on for revi ew under Rul e 43 of the 1997
Rul es of Ci vil Procedure, which must be filed with the CA wi thi n
15 da ys from notice of the decision of the vol unta ry a rbi tra tor.
Do La bor Arbiters or the NLRC ha ve juri s di cti on over cri mi na l
ca s es i nvolvi ng vi olations of the penal provisions of l a bor l a ws ?
NO. They do not a dhere s tri ctl y to the techni ca l rul es of
evi dence. This is required in cri minal cases where the guilt of the
a ccus ed must be establi s hed beyond rea s ona bl e doubt. The
regul ar courts have jurisdi cti on over cri mi na l ca s es i nvol vi ng
vi ol a ti ons of the l a bor l a ws .
Is P.D. 1508, the Ka ta rungang Pambarangay La w, a ppl i ca b l e to
l a bor ca s es ?
NO. The conci liation and mediation of labor disputes, grievances
or probl ems fa l l wi thi n the juri s di cti on of the DOLE.
Are uns igned print-outs presented by the empl oyer before the
La bor Arbi ter to show that the employees attendance was poor
a dmi s s i bl e i n evi dence?
NO. The pri nt-outs whi ch were not s i gned ei ther by the
empl oyer or by the empl oyee a fford no a s s ura nce of thei r
a uthenti ci ty.
Ma y the buyer of a business be held liable for the obligati ons of
the previ ous owner to the empl oyees ?
As a GR, NO. But where before buyi ng the bus i nes s
es tablishment, the new owner very well knew that the previ ous
owner had outstanding obligations to the employees, the former
ma y be held jointly and severally l i a bl e wi th the l a tter for the
pa yment of the cl a i ms .
Li a bi l i ty of corpora te offi cers :
Corpora te officers and/or agents are not pers ona l l y l i a bl e for
money cl aims of discharged employees a bsent any s howing tha t
they a cted with evident malice a nd bad faith i n terminating their
empl oyment.
The employee or a gent of a corpora ti on enga ged i n unl a wful
bus i nes s na tura l l y a i ds a nd a bets i n the ca ri ng on of s uch
bus iness and will be prosecuted as principal i f, wi th knowl edge
of the bus i nes s , i ts purpos e a nd effect, he cons ci ous l y
contri butes his efforts to its conduct a nd promoti on, however
s l i ght hi s contri buti on ma y be.
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LABOR LAW REVIEW

CHAPTER XVIII THE SOCIAL SECURITY LAW
RA 1161 a s a m. RA 8282. Ma rch 24, 1997.
Social Security Law - ena cted to establish, develop and perfect a
s oci al s ecurity s ystem suitable to the needs of the people throughout
the Phi lippines which shall provi de the covered employees (members)
a nd their families protection against the hazards of disability,
s i ckness, old age and death.
COMPULSORY
LEGITIMATE EXERCISE OF POLICE POWER
AFFORDS PROTECTION TO LABOR
TAX EXEMPT
COVERAGE
(COMPULSORY)
1. Empl oyees, not over 60 yea rs of a ge
2. Empl oyers
3. Domestic Helpers earning not less than P1,000/month
4. Sel f-employed
(VOLUNTARY)
1. Spouses who devote full time to managing their
hous ehold a nd fa mily a ffairs, unless engaged in other
voca ti on or employment (homemakers)
2. Overs eas Filipino Workers
Employer a ny person, natural/juridical, domestic/foreign, who
ca rri es in the Philippines a ny tra de, business, industry, undertaking or
a cti vi ty of any kind and uses the s ervices of a nother who is under his
orders as regards the employment
Except: Government
Incl udes religious organization
Self-employed empl oyer and employee a t the SAME TIME
One whose income is not derived from employment,

Incl uding:
1. Profes sionals
2. Pa rtners & s ingle proprietors of business
3. Actors /Actress, directors, scriptwriters who do not fall under
the definition of employee
4. Profes sional athletes, coaches, trainers a nd jockeys
5. Indivi dual farmers a nd fishermen
Control Test determines whether there exists an employer-employee
rel a tionship for the purpose of coverage
Not necessary tha t the employer actually exercises the power

to control the employee.
Suffi cient that such power could have been exercised under
the ci rcumstances.
EXEMPT FROM COVERAGE:
1. Purel y ca sual employment
2. Servi ce performed on or i n connection with a n alien vessel
3. Government employees
4. Servi ce performed i n the employ of foreign government or
i nternational organization
5. Temporary employees which may be excluded by regulation of
the Commission
PURELY CASUAL when the servi ces rendered was not for the
purpose of the occupation or business of the employer.
Dependent upon contingency

Coverage Starts:
1. Empl oyees fi rst day of employment
2. Empl oyer fi rst day of operation
3. Sel f-employed upon registration with SSS
Once a member, always a member Rule: even a fter termination of
empl oyer-employee relationship, the member-employee shall be
credi ted with all contributions paid on his behalf a nd entitled to
benefits according to the SSS La w.
He ma y continue to pay the total contributions to maintain his
ful l ri ghts to the benefits.
A s elf-employed member i s not required to pay

contri butions for the month wherein he did not realize any
i ncome
Ma y be a llowed to continue paying contributions under the

s a me rules applicable to a separated covered employee
No retroa ctive payment of contributions a llowed
Empl oyers a re required to deduct a nd withhold from

empl oyees monthly s alary, wa ge, compensation or earning
a nd remit to the system (Sec. 18)
o Begi nning as of the last day of the calendar month
when a n employees compulsory coverage s tarts
a nd every month thereafter during his
empl oyment.
Compensation a l l actual remuneration for employment, including

ma ndated CoLA, a s well a s the cash va lue of any remuneration i n
exces s of the maximum salary credit provided for i n Sec. 18
The employer s hall not deduct directly or i ndirectly from his

EMPLOYEES or otherwise recover from them the
EMPLOYERS contri bution wi th respect to such employees.
Contributions of self-employed individuals covered by Sec. 18:
Monthl y net earnings shall be considered a s his monthly
compensation
Sha ll pay both the employer a nd employee contribution
Net earnings net i ncome before taxes + non-cash charges ,i .e.,
depreciation and depletion
The revenues of the SSS are used to meet current

a dministrative a nd operational expenses a nd for payment
of benefits under SSS La w.
SSS PREMIUM
For the promotion of general
wel fare
Funds belong to the members
who wi ll receive benefits as a
ma tter of ri ght whenever
conti ngency provided in l aw
occurs
Benefits:
1.
2.
3.
4.
5.
TAXES
Purpos e is to ra ise revenues
Funds belong to the coffers of
the government
Si ckness
Perma nent Disability
Ma ternity
Reti rement
Dea th & Funeral
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LABOR LAW REVIEW

6.
Loa ns
Membership with the SSS is the basis for enjoyment of
benefits under the law
Sickness benefit a da i ly allowance paid to a covered employee who

becomes sick and is confined i n a n hospital for more than 3 da ys or
el sewhere with the Commissions approval .
90% of da i ly salary credit s hall be paid for not more than 120 da ys i n
one ca lendar year
Sha ll not be paid for more than 240 da ys on a ccount of the same
confi nement
Requirements:
1. Pa yment of at l east 3 monthly contributions in the 12
month period i mmediately preceding the semester of
s i ckness
2. Si ckness or i njury a nd confinement for more than 3 da ys in
a hos pital or elsewhere with the Commissions approval
3. Noti ce of the fact of illness by the Employee to the
Empl oyer within 5 ca lendar days a fter start of confinement,
unless, Employee became sick or injured while working or
within the premises of the employer then NO NOTICE IS
REQUIRED.
4. Exha ustion of sick leaves of absence with full pay to the
credi t of the Employee.
The Employer s hall pay the a llowance promptly every

regul ar payday s ubject to 100% rei mbursement by the SSS
upon receipt of satisfactory proof of payment a nd l egality
thereof.
o Provi ded, Employer has notified the SSS within 5
da ys from receipt of notice from Employee
o If ma de after 5 ca lendar days shall be reimbursed
onl y for each day of confinement s tarting from
the 10th ca l endar day i mmediately preceding the
da te of notice to the SSS.
NO REIMBURSEMENT:
1. Empl oyer failed to notify the SSS of confinement
2. For Unemployed Member, failure to send the notice directly
to SSS except when the confinement is in a hospital
3. When cl aim is made a fter one year from confinement
PERMANENT DISABILITY: Perma nent Total | Permanent Pa rtial
Permanent Total:
1. Compl ete l oss of sight of both eyes
2. Los s of 2 l i mbs a t/or above a nkle/wrists
3. Perma nent complete paralysis of 2 l imbs
4. Bra i n injury res ulting to i ncurable imbecility or i nsanity
5. Such ca ses as determined & a pproved by SSS.
Permanent Disability Benefits: Sec. 13-A
Upon the permanent total disability of a member who has paid a t
l east thirty-six (36) monthly contributions prior to the s emester of
di s ability, he shall be entitled to the monthly pension: Provi ded, That
i f he has not paid the required thirty-six (36) monthly contributions,
he s hall be entitled to a lump s um benefit equivalent to the monthly
pension times the number of monthly contributions paid to the SSS or
twel ve (12) times the monthly pension, whichever is higher. A
member who (1) has received a lump sum benefit; and (2) is
reemployed or has resumed s elf-employment not earlier than one (1)

yea r from the date of his disability shall again be subject to
compulsory coverage a nd s hall be considered a new member.
The monthly pension and dependents pension s hall be s uspended
upon the reemployment or resumption of self-employment or the
recovery of the disabled member from his permanent total disability
or hi s failure to present himself for examination a t least once a year
upon notice by the SSS.
Upon the death of the permanent total disability pensioner, his
pri ma ry beneficiaries as of the date of disability s hall be entitled to
recei ve the monthly pension: Provi ded, That i f he has no primary
beneficiaries a nd he dies within sixty (60) months from the start of his
monthly pension, his secondary beneficiaries s hall be entitled to a
l ump sum benefit equivalent to the total monthly pensions
corres ponding to the balance of the five-year guaranteed period
excl uding the dependents pension.
MONTHLY PENSION (SEC. 12-A):
Dependents Pension. - Where monthly pension is payable

on a ccount of death, permanent total disability or
reti rement, dependents pension equivalent to ten percent
(10%) of the monthly pension or Two hundred fifty pesos
(P250.00), whi chever is higher, s hall also be paid for each
dependent child conceived on or before the date of the
conti ngency but not exceeding five (5), beginning with the
youngest and without substitution: Provi ded, That where
there a re l egitimate or i llegitimate children, the former shall
be preferred.
Average monthly salary credit (SEC. 8 (m))
The res ult obtained by divi ding the sum of the last sixty (60)
monthly s alary credits immediately preceding the semester
of conti ngency by s i xty (60), or the result obtained by
di vi ding the s um of a ll the monthly s alary credits paid prior
to the s emester of contingency by the number of monthly
contri butions paid i n the same period, whichever i s greater:
Provi ded, That the i njury or s ickness which ca used the
di s ability s hall be deemed a s the permanent disability for
the purpose of computing the average monthly s alary
credi t.
Average daily salary credit (SEC. 8 (n))
The res ult obtained by divi ding the sum of the six (6)
hi ghest monthly salary credits i n the twelve-month period
i mmediately preceding the s emester of contingency by one
hundred eighty (180).
DEPENDENTS:
1. Lega l Spouse, dependent, livi ng with the member
2. Chi l dren (legitimate, legitimated, illegitimate & a dopted)
a . Unma rried
b. Not ga i nfully employed
c. Not over 21
If over 21, congenitally or while s till a minor has

been permanently i ncapacitated or i ncapable of
s elf-support, physically or mentally
3. pa rent who i s receivi ng regular support from the member
BENEFICIARIES:
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LABOR LAW REVIEW

1.
Primary
a . Dependent spouse until he marri es
b. Dependent children
Secondary
a . Dependent parents
b. Any other person designated by the covered
empl oyee
In ca s e no beneficiary qualifies the death benefits shall be
pa i d to te legal heirs i n accordance wi th the law on
s uccession
2.
Monthly
1.
2.
3.
pension may be suspended upon:

re-employment or resumption of s elf-employment
recovery of the disabled member from his PTD.
fa i lure to present himself for examination a t least once a
yea r upon notice by SSS.
Retirement Benefits. (SEC. 12-B)
A member who has paid at least one hundred twenty (120)

monthly contributions prior to the s emester of retirement and
who:
1. ha s reached the a ge of sixty (60) yea rs and is already
s eparated from employment or has ceased to be selfempl oyed
2. ha s reached the a ge of sixty-five (65) years, shall be
enti tled for as l ong as he lives to the monthly pension:
Provi ded, That he s hall have the option to receive his
fi rs t eighteen (18) monthly pensions in l ump s um
di s counted a t a preferential rate of interest to be
determined by the SSS.
A covered member who is s ixty (60) years old a t retirement

a nd who does not qualify for pension benefits under
pa ra graph (a) above, s hall be entitled to a lump s um benefit
equal to the total contributions paid by him and on his behalf:
Provi ded, That he is s eparated from employment a nd is not
conti nuing payment of contributions to the SSS on his own.
Death Benefits:
Upon the death of a member who has paid a t least thirty-six (36)
monthly contributions prior to the s emester of death, his primary
beneficiaries s hall be entitled to the monthly pension.
Provi ded, That i f he has no primary beneficiaries, his s econdary
beneficiaries s hall be entitled to a lump s um benefit equivalent to
thi rty-s ix (36) ti mes the monthly pension. If he has not paid the
requi red thirty-six (36) monthly contributions, his primary or
s econdary beneficiaries shall be entitled to a l ump sum benefit
equivalent to the monthly pension times the number of monthly
contri butions paid to the SSS or twelve (12) ti mes the monthly
pension, whichever is higher.
Funeral Benefits:
P12,000 pa i d i n cash/kind to help defray the cost of expenses upon
the death of a member
Maternity Leave Benefit: need not be married
1. Fema le member
2. Pa i d at l east 3 months contribution in i mmediately
preceding the 12-month period prior to the semester
of chi l dbirth or miscarriage
100% of a verage daily s alary credit.
60 da ys normal
78 da ys ca esarean delivery
Conditions:
1. Noti ce to the employer
2. Ful l payment s hall be a dvanced by the employer within 30
da ys from the filing of the maternity l eave
3. Pa yment of daily ma ternity benefit s hall be a bar to recovery
of s i ckness benefit fromt eh same period daliy ma ternity
benefit is received.
4. Pa i d for the first 4 deliveries/miscarriages
5. SSS s hall immediately reimburse the employer 100% of the
a mount of MB a dvanced upon receipt of satisfactory proof of
s uch payment & l egality thereof.
6. Empl oyer s hall pay SSS damages = to MB whi ch employee i s
enti tled to i f the employer fails to remit the contribution or to
noti fy.
LOANS:
1.
2.
3.
4.
Sa l ary Loan
Educa tional Loan
Hous ing Loan
Community Hospital Loan
BENEFICIARIES DISQUALIFIED FROM RECEIVING BENEFITS UNDER

SSS LAW:
A na tional of a foreign country which does not extend
benefits to a Filipino beneficiary residing in the Philippines
or whi ch is not recognized in Philippines
Provi ded, that notwithstanding the foregoing, where the best i nterest
of the SSS will be served, the Commission may di rect payments
wi thout regard to nationality or country of residence.
The benefit payments made by SSS are not subject to tax or

a tta chments and similar processes. a ll benefit payments
ma de by the SSS s hall be exempt from all kinds of taxes,
fees or charges, and shall not l iable to a ttachments,
ga rnishments, l evy or s eizure by or under a ny l egal or
equitable process whatsoever, either before or a fter receipt
by the pers on or persons entitled thereto, except to pay any
debt of the member to the SSS.
No ta x measure of whatever nature enacted shall apply to

the SSS, unless it expressly revokes the declared policy of
the Sta te i n Section 2 hereof granting ta x-exemption to the
SSS. Any ta x a s sessment imposed a gainst the SSS s hall be
nul l a nd void.
LIABILITIES OF THE EMPLOYER FOR FAILURE TO REPORT THE
EMPLOYEES CONTRIBUTION:
1. It s hall pay to the SSS damages equivalent to the benefits to
whi ch the employee would have been entitled had his name
been reported on time to the SSS, except that i n case of
pension benefits, the employer s hall be l iable to pay the SSS
da mages equivalent to 5 yea rs monthly pension
However, if the contingency occurs within the 30 da ys from

da te of employment, the employer shall be relieved of his
l i ability for damages.
2. i t s hall pay the corresponding unremiited contributions a nd
penalties therein.
3. Cri mi nal liability for failure to comply wi th the provisions of
the SSS l aw.
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LABOR LAW REVIEW

A fi ne not less than P5,000 nor more than P20,000 a nd imprisonment
for not l ess than 6 yea rs a nd 1 da y nor more than 12 years.
The Social Security Commission has the jurisdiction over

s ettlement of disputes arising under this SSS La w with respect to
covera ge, benefits, contributions or penalties or a ny ma tter
rel a ted thereto.
The decision of the Commission shall become final within 15

da ys a fter the date of notification and is subject to judicial
revi ew by the Court of Appeals.
Benefits provi ded for i n the SSS law are not tra nsferable a nd no
power of a ttorney or other document executed by those entitled
thereto, in favor of a ny a gent, attorney, or a ny other person for
the col lection thereof on their behalf s hall be recognized except
when they a re physically unable to personally collect s uch
benefits.
The benefits receivable under the SSS law a re in the nature of

s pecial privilege or a n arrangement s ecured by the law pursuant
to the policy of the State to provide social security to the
worki ngman. It cannot be considered as property earned by the
member during his l ifetime.
The Social Security Act i s not a law of s uccession. The b enefits

due under the SSS law do not form part of the estate of the
covered employee. Also, persons other than the heirs of the
deceased employee may be entitled to s uch benefits.
LIMITED PORTABILITY SCHEME:
A covered worker who tra nsfers employment from one s ector
to a ntoher or is empoloyed i n both sectors hsall have his
redi table servi ces or contributions in both Sys tems credited to
hi s servi ce or contribution record in each of the Sys tems and
s ha ll be totalized for purposes of benefits i n case the cove red
member does not qualify for s uch in either or both Sys tems
wi thout totalization.
Overl a pping periods of membership shall be credited only
once.
PRESCRIPTION OF ACTION:
- the ri ght to institute the necessary a ction a gainst the
empl oyer wi thin 20 yea rs from the ti me:
1. del inquency i s known
2. a s sessment i s made by the SSS
3. the benefit accrues
The ma naging head, directors or partners of association,

pa rtnership and corporation s hall be held liable for a ny a ct
or omi ssion pertaining to the violation of the s aid law.
CHAPTER XIX THE REVISED GOVERNMENT SERVICE

INSURANCE SYSTEM
CA 186, Nov. 14, 1936
P.D. 1146, Ma y 31, 1977
RA 8291, 1977
COVERAGE
compulsory for a ll employees receiving compensation who
ha ve not reached the compulsory a ge of retirement
EXCEPT:
AFP members, BFP & BJMP (uni formed)
PNP (uni formed)
Contra ctuals who have no Employer-Employee relationship with the

a gencies they s erve
Thos e who have s eparate retirement s chemes under s pecial laws.
BENEFITS: All members are entitled to the ff:
1. Sepa ration
2. Reti rement
3. Perma nent Disability
4. Temporary Disability
5. Funeral
6. Survi vors hip
7. Li fe Insurance
EXCEPT: (Policyholders)
members of the judiciary
members of constitutional commissions
s ha ll enjoy Li fe Insurance only
Employee (member)
Any pers on receiving compensation while i n the servi ce of an
empl oyer a s defined herein, whether by election, or a ppointment
i rres pective of status of appointment, i ncluding bgy & s ang.
Employer the Na tional Government, its political s ubdivisions,
bra nches, agencies, or i nstrumentalities, government owned and
control led operations a nd financial i nstitutions or original charters,
the constitutional commissions and the judiciary.
CLASSIFICATION of MEMBERS:
1. Active s ti ll i n the servi ce and are paying the i ntegrated
premi ums
Covered by the entire package of benefits and privilege
2.
Policyholders covered for l ife i nsurance only a nd a re

enti tled to s pecific benefits accruing from the life insurance
covera ge
Ca n a va il of policy l oan and privilege
Ma y a pply for housing loans (subject to the same terms and
condi tions applicable to non members)
3.
Separated Members former a ctive members who have

been separated from the service and are s till covered by the
GSIS under the once a member always a member rul e
Enti tl ed to receive future benefits in the event of compensable
conti ngency s uch a s:
a . ol d a ge (60 yea rs old & a bove)
b. di s ability
c. s urvi vorship
d. dea th
not entitled to l oan privileges
ma y a pply for housing loans (subjects to the same terms and
condi tions applicable to a non member.
4. Retired former a cti ve members who have retired from the
s ervi ce a nd a re already enjoying the corresponding
reti rement benefits a pplied for:
Not enti tled to loan privilege
Except: s tock purchase loan
SOURCES OF FUND OF GSIS:
empl oyee contribution
empl oyer contribution
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LABOR LAW REVIEW

contri butions of the employee a re deducted and withheld by the
empl oyer each month from the monthly s alary of the former a nd a re
remi tted by the l atter, with i ts own s hare to the GSIS within 10 days
of the ca lendar month following the month to which the
contri butions a pply.
Pena lty for non remittance
Unremi tted collections shall earn such interest as the GSIS BOT may
pres cribe, not exceeding 2%/month from the due date to the date of
pa yment by the employer
The Govt. of the Rep. of the Philippines shall pay the benefits due to
i ts members in ca se the GSIS becomes INSOLVENT.
2 TYPES OF PERMANENT DISABILITY:
1. P. Total Disability when recovery from any l oss or i mpairment of
the normal functions of the physical and/ or mental faculty of a
member which reduces or eliminates his/ her ca pacity to continue
wi th his current gainful occupation or enjoys i n a ny other gainful
occupa tion is medically remote.
2. P. Partial disability when there i s irrevocable loss or i mpairment
of certa in portion/s of the physical faculties despite which the
member i s able to pursue a gainful occupation.
The disability must not be due to:

1. gra ve mi sconduct
2. notori ous negligence
3. ha bitual intoxication
4. wi l lful intention to kill himself or a nother
GENERAL CONDITIONS FOR ENTITLEMENT:
PTD:
He i s in the s ervice a t the time of the disability
i f s eparated from the service:
ha s paid at l east 36 monthly contributions wi thin the 5 yea r period
i mmediately proceeding his disability or
ha s paid a total of a t least 180 monthly contributions, prior to his
di s ability
Provi ded that i n case of (1) a nd has paid a total of 180 monthly
contri butions
Sha ll receive a cash payment equivalent to 18 ti mes his basic monthly
pension, in a ddition to the monthly i ncome benefit
A member ca nnot enjoy the MIB for permanent disability a nd the old
a ge retirement simultaneously.
If the member does not s atisfy the a bove conditions, but has
rendered a t least 3 years s ervice at the ti me of his disability
Sha ll be a dvanced the cash payment equivalent to 100% of his
a vera ge monthly compensation for each year of servi ce he paid
contri butions, but not l ess than Php 12,000 which s hould have been
hi s separation benefit.
Unl ess the member has reached the minimum retirement age,
di s ability benefit s hall be s uspended when:
he i s re employed
he recovers from his disability as determined by the GSIS whose
deci sion s hall be final a nd binding
he fa ils to present himself for medical examination when required by
the GSIS.
Total and Permanent Disability:
1. compl ete loss of sight of both eyes
2. l ess of two l imbs a t or above the ankle or wri st
3. perma nent complete paralysis of 2 l imbs
4. bra i n i njury resulting i n incurable i mbecility or i nsanity
5. s uch other cases as may be determined by the GSIS
BENEFIT: ca sh payment i n accordance with a s chedule of

di s abilities to be prescribed by the GSIS.
PERMANENT PARTIAL DISABILITY:

1. Compl ete a nd Permanent l oss of use
a . a ny fi nger
b. a ny toe
c. one a rm
d. one hand
e. one foot
f. one l eg
g. one or both ears
h. hea ring of both or one ear
i . s i ght of one eye
2. s uch other cases as may be determined by the GSIS
COMPENSATION mea ns the basic pay or s alary received by a n
empl oyee pursuant to his election/ appointment, excluding per
di ems, bonuses, overtime pay, honoraria, a llowances a nd a ny other
emol uments received in addition to the basic pay which a re not
i ntegrated into the basic pay under existing l aws.
COMPULSORY RETIREMENT:
65 yea r ol d
Wi th a t l east 15 yea rs of service
Provi ded, i f he has l ess than 15 yea rs of s ervice, he s hall be
a l lowed to continue i n the servi ce to complete the 15 years.
Not to exceed (1) year
Separation Benefits, Condition:
member resigns or separates from the s ervice
ha s rendered at l east 3 yea rs but less than 15
pa ya ble upon reaching the age of 60 or upon separation whichever
comes later
Vol untary Retirement
RA 910 reti rement of members of the judiciary
RA 340 reti rement of members of the AFP
PD 1146 does not a pply where separate retirement s chemes a re
es tablished under s pecial l aws.
To a public serva nt, a person is not a gratuity but a form of

deferred compensation for s ervices performed a nd his ri ght
to i t commences to rest upon his entry i nto the retirement
s ys tem a nd becomes a n enforceable obligation in court
upon fulfillment of all conditions under which i t is to be
pa i d.
UNEMPLOYMENT OR INVOLUNTARY SEPARATION

Occurs when a n employee (permanent) i s
i nvol untary s eparated from the servi ce due to
a bolition of his office or position resulting from
reorga nization
Ma y recei ve benefits provi ded he has been paying
i ntegrated contribution for a t least one year prior
to hi s separation.
Reti rement l aws are l iberally
i nterpreted in favor of the retiree
beca use their i ntention is to provide for
hi s sustenance and even comfort, when
no l onger has the stamina to continue
ea rning his l ivelihood.
PPD same conditions as PTD.

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LABOR LAW REVIEW
The GSIS has the original a nd exclusive

juri s diction to determine whether a n
empl oyee i s entitled to benefits, and to
s ettle a ny dispute arising under the Act.
Highest Basic Salary Rate ba sis

computation of a government employee
the compensation or s alary or pa y which may be used in computing
reti rement benefit.
Hi ghest salary ra te actually received by a n employee/ official as fixed
by l a w a nd/or indicated in his duly a pproved appointment
Al l other compensation a nd/or fri nge benefits
s ha ll not be considered
BENEFICIARIES:
1. Primary
a . l egal dependent spouse until he/ she remarries
b. dependent children
2. Secondary
a . dependent descendants (subject to restrictions on
dependent children)
dependent s pouse s hall receive benefits for l ife or until

he/ s he remarries
dependent children s hall receive benefits as l ong as they

a re dependent, thereafter, the dependent spouse s hall
recei ve the basic survi vorship pension
SECONDARY BENEFICIARIES shall be entitled to

benefits in the a bsence of primary beneficiaries
In their a bsence, benefits s hall be paid
to the l egal heirs
FUNERAL BENEFIT not l ess than Php 18, 000 pa ya ble upon the
dea th of:
1. a cti ve member
2. s eparated members
3. pensioner
4. reti ree who at the time of his retirement was of
pensionable a ge under reason by 8291 PD1146 but opted to
reti re under RA 1616
LIFE INSURANCE COVERAGE
Compulsory a l l employees except members of the AFP a nd PNP
s ha ll under such terms a nd conditions as may be promulgated by the
GSIS be compulsorily covered which shall automatically ta ke effect a s
fol l ows:
on the date of employment
for thos e whose insurance will ma ture after the effectivity of this Act,
thei r i nsurance s hall be deemed renewed on the day following the
ma turi ty or expiry da te of their i nsurance
For thos e without a ny l ife i nsurance as of the effectivity of this Act
thei r i nsurance s hall ta ke effect following said effectivity.
Optional s ubject to the rules and regulations prescribed by the GSIS
a member may a pply for i nsurance and/or pre needed coverage
embra cing life, health, hospitalization, education, memorial plans for
hi mself or his dependents.
EMPLOYER ma y l i kewise apply for group i nsurance coverage for i ts
empl oyees
EXCLUSIVENESS OF BENEFITS
Si milar benefits to the same contingency a s provided for by

other l aws
The qualified member has the option to choose which
benefits will be paid to him
If the benefits under the other l aw is l ess than the benefits
under the GSIS, the l atter shall pay only the difference
PRESCRIPTIVE PERIOD FOR CLAIMS:

Four (4) yea rs from the date of contingency
Appeal to the CA from the decision of the GSIS
15 da ys from notice of a ward or judgment
Rul e 43, petition for revi ew
RETIREMENT:
COMPULSORY
65 yea rs old
At l east 15 yea rs of s ervice
VOLUNTARY
At l east 60 yea rs old
At l east 3 yea rs of s ervice, not more than 15 yea rs
CHAPTER XX NATIONAL HEALTH INSURANCE

PROGRAM
NATIONAL HEALTH INSURANCE PROGRAM
Sha ll provide health insurance coverage a nd ensure a ffordable,
a cceptable and a ccessible health care s ervices for all citizens of
the Phi l., i n accordance with the policies a nd s pecific provisions
of thi s Acct
Al l ci tizens of the Philippines shall be covered by the NHIP

under the principle of universality and compulsory coverage.
Medi care Act i s repealed by RA 7875

Medi Care funds, functions, assets,
equipment, records, operating sys tems and liabilities will be
tra ns ferred to the NHIC
COVERAGE:
1. Empl oyed (Government, Priva te)
2. Indigents
3. i ndividually Pa ying
a . Sel f employed
b. OFW
c. Pri va tely s ponsored
d. Others
e. EE/ER of Intl Org a nd Foreign Govt based i n the
Phi l ippines
4. non pa yi ng
Personal
1.
2.
3.
4.
Health Services
Inpatient hospital ca re
Outpa tient ca re
Emergency a nd tra nsfer s ervices
s uch other health care that the NHIC s hall determine to be
a ppropriate and cost effective
Lega l Dependents:
1. Legi timate spouse who is not a member
2. unma rried a nd unemployed l egitimate, l egitimated,
i l legitimate, acknowledged children as a ppearing i n the
55
LABOR LAW REVIEW
3.
4.
bi rth certificate, legally a dopted a nd s top children BELOW

21 yea rs
Chi l dren who are 21 y/o a nd above but s uffering from
congenital disability, either physical or mental, or a ny
di s ability a cquired that renders them totally dependent on
the member for s upport.
pa rents who a re 60 y/o a nd above whose monthly i ncome
i s below a n amount to be determined by the NHIC
EXCLUDED PERSONAL HEALTH SERVICES:

1. non prescription drugs a nd devices
2. outpa tient psychotherapy a nd counseling for mental
di s orders
3. drug a nd alcohol abuse or dependency treatment
4. cos metic s urgery
5. home a nd rehabilitation servi ces
6. optometric services
7. norma l obstetrical delivery
8. cos t i neffective procedures
MEDICAL CASES:
1. Catastrophic i l lnesses or injuries such as but not l imited
to: ca ncer wi th metastasis and/or requiring chemo or
ra di ation therapy, meningitis, encephalitis, cirrhosis of the
l i ver, myocardial infarction, cerebrovascular a ttack, renal
di s ease, rheumatic heart disease grade III, other conditions
wi th massive hemorrhage s hock of any ca use.
2. Intensive
a l l confinements requiring s ervices in a n ICU s uch
a s monitoring a nd respiratory s upport, cardiac/
hemodialysis monitoring a nd maintenance
other s imilar serious illnesses or i njuries s uch as
but not l imited to: ca ncer, pneumonia,
moderately or fa r advanced TB i nc i ts
compl ications, cardiovascular attack, disease of
the heart, etc. or s evere i njuries.
Surgi cal procedure or multiple surgical procedures
done iin one sitting with a total Relative Unit
va l ue of 8 but not exceeding 19 99
3. Ordinary
i l lnesses or injuries other than those i ncluded in
the a bove enumeration
CHAPTER XXI AGRARIAN REFORM

AGRARIAN REFORM
The Sta te s hall promote comprehensive rural development
a nd a grarian reform (Sec. 21, Art.11)
The Sta te s hall, by l aw, undertake a n a grarian reform program
funded on the ri ght of farmers a nd regular farmworkers, who
a re l andless, to own directly or i ndirectly (collectively) the
l a nds they ti ll or, i n the ca se of other farmworkers, to receive
a jus t s hare of the fruits thereof.
PROPERTY OWNERSHIP as a SOCIAL FUNCTION

the owner has the obligation to use his property not only to
benefit himself but society a s well.
In the promotion of social justice, the s tate shall regulate

the a cquisition, ownership, use, and disposition of property
a nd i ts increments, a nd equitability diffuse wealth
1.
2.
3.
4.
5.
6.
AGRARIAN REFORM
more tha n restructuring of or change in the nature of the
property ownership
i ntegral parts of the program are: s ervices extended to the
fa rmers i n the form of:
credi t s upport
i nfrastructure
fa rm extension
l egal assistance
el ectrification
development of rural institutions
des igned to uplift the farmers from poverty, i gnorance a nd stagnation

a nd to make them dignified, self reliant, strong and responsible
ci ti zens, a source of genuine strength in our democratic society a nd
a cti ve participants in nation building
RA 3844 Agricultural Land Reform Code
i ns tituted La nd reforms in the Philippines
a bolished tenancy
cha nneling of capital i nto i ndustry

OWNER CULTIVATORSHIP
the s tatus of a person who, providing capital and
ma nagement, personally cultivates his own land with the
a i d of his immediate fa mily a nd household
goa l of AR to convert the tenant into O-C
ECONOMIC FAMILY SIZE FARM
a n a rea of farm land that permits efficient use of labor a nd
ca pi tal resources of the farm family a nd will produce an i ncome
s ufficient to provide a modest s tandard of livi ng to me et a farm
fa mi lys needs for food, clothing shelter a nd education with
pos sible allowance for yearly payment of installments on the
l a nd, a nd reasonable reserve to a bsorb yearly fl uctuations i n
i ncome.
AGRICULTURAL LAND
l a nd devoted to a ny growth, i ncluding but not limited to crop
l a nds, flatbeds, fishponds, i dle lands a nd a bandoned lands as
defi ned i n the Code
l a nds intended by a n industrial concern for expansion of i ts
pl a nts or factory facilities, although planted to s ome crops i n the
mea ntime ca nnot be considered as a gricultural
devoted to a gricultural activity a s defined in the law a nd not
cl a ssified a s mineral, forest, residential, commercial or i ndustrial
l a nd.
AGRARIAN REFORM
The redistribution of l ands, regardless of crops or fruits
produced, to farmers and regular farmworkers who a re
l a ndless, i rrespective of tenurial arrangement to i nclude the
tota l ity of factors a nd s upport s ervices designed to l ift the
economic s tatus of the beneficiaries a nd a ll other
a rra ngements a lternative to the physical redistribution of
l a nds
56
LABOR LAW REVIEW

AGRICULTURAL ACTIVITY
The cul tivation of soil
Pl a nting of crops
Growi ng of fruit trees
Incl uding the harvesting of ri ch farm products and
other fa rm activities and practices performed by a
fa rmer i n conjunction with such farming operations
done by a person natural or juridical
AGRARIAN DISPUTE a ny controversy relating to tenurial

a rra ngements whether l easehold, tenancy, s tewardship or
otherwise, over l ands dented to agriculture
Incl uding fa rmworkers associations or representation of

pers on in negotiating, fixing, maintaining, changing or
s eeking to arrange terms and conditions of such tenurial
a rra ngements.
Incl udes a ny controversy relating to compensation of l ands
a cquired under the Act a nd other terms and conditions of
tra ns fer of ownership from landowners to farmworkers,
tena nts a nd other agrarian reform beneficiaries, whether
the di sputants s tand in the proximate relation of farm
opera tor a nd beneficiary.
FARMER a na tural person whose primary l ivelihood is cultivation of

l a nd or the production of agricultural products/ crops, either by
hi mself, or primarily with the assistance of his i mmediate farm
hous ehold.
FARMWORKER a na tural person who renders service for value as an
empl oyee or l aborer i n a n a gricultural enterprise or fa rm regardless
of whether his compensation is paid on a daily, weekly, monthly or
pa kya w basis.
Regular a na tural person who is employed on a permanent
ba s is by a n a gricultural enterprise or farm
Seasonal a na tural person who i s employed on a recurrent,
peri odic or intermittent basis, whether a s a permanent or a
non permanent laborer, such as dumaan, sacada
LANDS COVERED BY THE CARP
1. Al l a lienable and disposable lands of the public domain
devoted to or s uitable for agriculture
2. Al l l ands of the public domain in excess of the specific l imits
a s determined by congress
3. Al l other lands owned by the Government devoted to or
s ui table for a griculture
4. Al l priva te lands devoted to or s uitable for a griculture
rega rdless of the agricultural products raised or that ca n be
ra i sed thereon.
LANDS EXEMPTED OR EXCLUDED FROM THE COVERAGE OF THE
CARP
1. La nds a ctually, directly a nd exclusively used for parks,
wi l dlife, forest reserves, reforestation, fish sanctuaries a nd
breeding grounds, watersheds a nd mangroves
2. La nds a ctually, directly, a nd exclusively used for prawn
fa rms and fishponds. Provi ded, that said prawn farms and
fi s hponds have not been distributed and certificate of La nd
ownership a ward issued to a grarian reform beneficiaries.
3. La nds a ctually, directly, a nd exclusively used a nd found to
be necessary for na tional defense, s chool s ites a nd
ca mpuses i ncluding experimental from situations for

educational purposes, seeds a nd s eedlings research and
pi l ot production center, church sites and convenient
a ppurtenant thereto, mosque site and Islamic centers,
communal burial grounds and cemeteries, penal colonies
a nd penal farms actually worked by i nmates, government
a nd priva te research a nd quarantine centers and all lands
wi th 18% s lope and over.
1.
2.
In no ca se shall the retention by the landowner

exceed five (hectares)
Three (3) hectares may be awarded
to ea ch child of the landowner
provi ded:
At l east 15 y/o
a ctua lly ti lling the land, or directly ma naging farm.
The ri ght to choose the a rea to be retained which
s ha ll be compact or contiguous, shall pertain to
the l a ndowner
LANDLESS BENEFICIARY
7. One who owns less than three hectares of a gricultural land
AGRARIAN REFORM = revolutionary expropriation
Affects all private a gricultural l ands and is i ntended to benefit
the entire Filipino nation
FACTS FOR CONSIDERATION IN LAND DISTRIBUTION
1. mus t be a just one
2. s ubject to l imitations of retention a nd priorities prescribed
by Congres s
3. ecol ogy
4. development
5. equity
6. pa yment of just compensation
WATERSHED a n a rea drained by a ri ver and enclosed by a boundary
or di vi de which s eparates it from adjacent watershed
1.
2.
Tena nts shall have the option to choose whether:

To rema in i n the landowners retained land
be a beneficiary i n the s ame or a nother agricultural land
wi th comparable / s imilar features
opti ons are a lternative, election of one is the
forfei ture of the other
tena nt must exercise this option
wi thin one year form the time the
l a ndowner ma nifests his choice of
a rea for retention
SUPPORT SERVICES UNDER CARL:

Irri ga tion facilities
i nfrastructure a nd public works
Govt. s ubsidies for the use of irrigation facilities
Pri ce s upport a nd guarantee for a ll agri. Produce
credi t a nd l oans servi ces
promoti ng, developing and extending financial assistance to small and
medi um scale i ndustries
As s igning sufficient number of agricultural extension workers to
fa rmers organization
57
LABOR LAW REVIEW

Undertake, research, development a nd dissemination of information
on a gra rian reform a nd l ow cost a nd ecologically s ound fa rm i nputs
Devel opment of cooperative mgmt. s kill through i ntensive tra ining
As s istance in the identification of ready market or a gricultural
produce a nd training in other va rious a spects of mktg.
Admi nistration, Operation, management and funding of s upport
s ervi ces programs
La nds may be acquired by DAR through:
vol untary s ale
compulsory mode
DAR s end written offers to landowners
If the l andowner rejects or fa ils to make a
repl y -2
Summa ry proceedings are conducted to
determine the just compensation
MODES OF PAYMENT:
Ca s h Pa yment
a . Above 50 hecta res - 25% ca sh + 75% govt.
b. 24 50 hecta res 30% ca s h + 70 % govt. fi nancial i nst.
Negotiable a t anytime
c. Les s than 24 hectares 35% ca sh + 65% govt. fi nancial
i ns titution negotiable at a nytime
Sha res of s tock i n GOCC, LBP pref. s hares, physical assets or other
qua lified investments
Ta x credi ts which ca n be used a gainst any tax l iability
LBP bonds
a . ma rket ra tes a ligned with 91 da y T bi ll
b. Tra ns ferability negotiability\
LBP bonds ma y be used:
a cquisition of land and other real properties of the Govt.
a cquisition of shares of stocks of GOCC or those owned by the GOVT.
i n pri vate corp.
Subs titution for s urety or bail bonds
s ecurity for l oans with a ny govt. fi nancial i nstitution
pa yment for va rious ta xes and fees to the government
pa yment for tuition fees of i mmediate family of the orig. bondholder
i n govt. universities, college, schools and other i nstitutions
Pa yment for fees of the immediate family of the orig. bondholder i n
govt. hos pitals
Such other uses as the PARC ma y a llow
BENEFICIARIES:
Agri . Les sees a nd s hare tenants
regul ar farmworkers
s easonal farmworkers
other FW
a ctua l tillers or occupants of public lands
col l ectives or coops of 1-5
others directly working on the lands
Basic Qualification:
wi l lingness
a tti tude
a bi lity
To cul ti vate and make the land a s productive as
pos sible
LIMIT: 3 hecta res of a gricultural land
Ma nner of payment by beneficiary:

pa ya ble i n 30 a nnual amortizations (30 years)
6% i nterest per year
LBP s ha ll have a l ien by way of mortgage
Ma y be foreclosed for non payment of an
a ggregate 3 a nnual i nstallments
LBP s ha ll inform DAR and the latter s hall a ward
the l a ndholdings to other qualified beneficiaries
A beneficiary whose l and has been foreclosed is
perma nently disqualified from being a beneficiary
CONDITIONS FOR SALE, TRANSFER OR CONVEYANCE:
ma y not be exercised within a period of 10 yea rs, except:
a . hereditary s uccession
b. to the govt.
c. to the LBP
d. other qualified bens,
chi l dren or spouse has a ri ght to repurchase within two years from
the government or LBP.
due notice of the a vailability of the land shall be given by the LBP to
the BARC. The BARC PARCOM
If not yet fully paid, the rights may be transferred or conveyed with
pri or a pproval by DAR to a ny heir of the beneficiary or a ny other
beneficiary who as a condition shall cultivate the l and for himself
QUASI JUDICIAL POWERS OF DAR:
Pri ma ry juri sdiction to determine a nd a djudicate AR matters i nvolving
the i mplementation of AR except those falling under the exclusive
juri s diction of the:
a . DA
b. DENR
Sha ll have the power to:
1. s ummon witnesses
2. a dminister oaths
3. ta ke testimony
4. requi re submission of reports
5. compel production of documents
6. i s sue s ubpoenas
7. punish for direct and indirect contempt
Res ponsible farmer leaders shall be
a l lowed to represent:
i . thems elves
ii . fel low farmers
iii. thei r organization
Deci sions of DAR a re immediately
executory
DISTRIBUTION OF FARMS OPERATED BY CORPORATIONS
La nds s hall be distributed directly to the individual worker
beneficiary
If not economically feasible and sound to divide the land
owned collectively through a workers coop. or assoc. which
wi l l deal with the corp. or business assoc.
CONDITIONS FOR CONVERSION:
1. After the l apse of 5 yea rs from a ward
2. The l and ceases to be economically feasible a nd s ound for
a gri cultural purposes, or
3. l oca lity has become urbanized
a . the l a nd has greater economic va lue for residential,
commercial or i ndustrial purpose
4. a pplication beneficiary or l andowner wi th the DAR
58
LABOR LAW REVIEW

5.
6.
1.
2.
3.
4.
5.
6.
wi th due notice to a ffected persons

Ben must have fully paid (full payment) his obligations
4.
Prohibited acts and omissions under CARL:

ownership or possession for the purpose of circumventing the
Act, except those under collective ownership
Forci ble entry or i llegal detainer by persons who a re not
qua lified bens.
Convers ion with i ntent to a void the application of this Act to
hi s landholdings of to disposes his tenant farmers of the lands
ti l led by them.
wi l lful prevention or obstruction by a ny person of the
i mplementation of the CARP
s a le, tra nsfer, conveya nce or change of the nature of lands
outs ide of urban centers and city l imits.
s a le, tra nsfer or conveyance by a ben. Of the ri ght to use or
a ny us ufructuary ri ght over the land in order to ci rcumvent
the provi sions of this Act.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
i s suance, recall, or ca ncellation of Certificates of Land

Tra ns fer a nd CARP Ben Certs, CLOA a nd EPs not yet
regi stered.
exerci se of the right of retention by LO
a pplication for exemptions
i s suance of cert. of exemption for lands subject of voluntary
offer to s ell or compulsory a cquisition found unsuitable
a pplication for conversion
ri ght of AR bens. To home lots
di s position of excess a rea of the F.B. of his fa rm holdings
tra ns fer surrender or a bandonment by the FB of his farm
hol dings a nd i ts disposition
Increase of the awarded a rea by the F.B.
confl ict of claims i n landed estates and settlements
Such other matters strictly i nvolving the admin.
Impl ementation of a grarian l aws, rules and regulations
Requisites for DARAB Jurisdiction:

tena ncy relationship between the parties
a . pa rti es are the l and owner a nd the tenant or a gri lessee
b. s ubject matter i s an a gri land
c. cons ent between the parties to the relationship
d. purpose of the relationship is to bring a bout agri production
e. pers onal cultivation on the part of the tenan t or AL
f. tha t the harvest is s hared between LO a nd + or AL
Jurisdiction of DARAB:
1. Pri ma ry a nd exclusive (original and appellate) jurisdiction to
determine a nd a djudicate all agrarian disputes involving the
i mplementation of the CARP. Include but not limited to:
2. ri ghts and obligations of persons, whether natural or
juri dical, engaged i n the mgmt. cultivation and use of lands
covered by the CARP a nd other a grarian reform laws
3. va l uation of lands, prelim determination and payment of
jus t compensation, fixing a nd collection of lease rentals,
di s turbance compensation, amortization payments and
other s imilar disputes concerning the functions of the LBP
4. a nnulment or ca ncellation of lease contract or deeds of rate
or thi s amendments under DAR or LBP
5. ca s es a rising from, or connected with membership or
representation in compact fa rms, farmers coop. and other
regi stered farmers a ssoc. or org.
6. There i nvolving sale, alienation , mortgage conveya nce or
ma i ntenance foreclosure, preemption a nd redemption of
Agri La nd covered by the CARP a nd agrarian laws
7. i s suance, connection, cancellation of CLOA a nd
Ema ncipation Patents which a re registered of the LRA
8. ca s es previ ously falling under the orig and exclusive
juri s diction pf the defunct court of Agrarian Relations
9. s uch other agrarian cases, disputes, matters or concerns
referred to i t by the Sec. of DAR
DAR Secretary Exclusive Jurisdiction:
1. Cl a ssification and identification of landholdings for coverage
under the CARP
2. i dentification, qualification or do of potential farmer ben.
3. s ubdivision surveys of lands under CARP
59

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Summary Atty Alcantara Labor Review

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LABOR LAW REVIEW

CHAPTER 1 GENERAL PRINCIPLES

Matters which fall under the term Labor Law

Impressed with public interest; l a bor contracts yi eld to the

Property right of employee in E-E relationship

LABOR LAW REVIEW

Sec 8 Art III

Sec2b Art IXB

In 1987 Constitution, Social Justice envisions equitable diffusion of

It gua rantees equality of opportunity, equa l i ty of pol i ti ca l

La bor, by reason of its economic dependence upon ca pi ta l ,

Three Aggregates of power against which the individual employee

Why must the State afford protection to Labor?

LABOR LAW REVIEW

when employer ca n prove that the reasonable demands of the

Increase in salary is a management prerogative. Promotion does not

CHAPTER II THE LABOR CODE

Scope of Power of DOLE and other government agencies in the

Article 12 POLICY OF STATE ON PRE-EMPLOYMENT

Article 43 POLICY OF STATE ON HUMAN RESOURCES

Article 57 POLICY OF STATE ON APPRENTICESHIP

Article 166 POLICY OF STATE ON EMPLOYEES COMPENSATION

Article 211 POLICY OF STATE ON COLLECTIVE BARGAINING, TRADE

LABOR LAW REVIEW

Article 263 (SAME)

Workers entitled to rights and benefits under the Labor Code.

Women, minors, househelpers and homeworkers (Art. 130

Classification of employments covered by the Labor Code

Relationship of parties NOT determined solely on the terms of

LABOR LAW REVIEW

Regular employees by years of

reca l l , di s cha rge,

CHAPTER III RECRUITMENT AND PLACEMENT OF

Chapters: Asuncion 1-14, Ortiguerra 15, 18-21, Punzalan 16, Piccio 17

LABOR LAW REVIEW

Forei gn empl oyer mus t a l s o be protected. Onl y hi res

Overseas Worker cannot refuse to remit his earnings to his

Chapters: Asuncion 1-14, Ortiguerra 15, 18-21, Punzalan 16, Piccio 17

LABOR LAW REVIEW

Exceptions to prohibition against employment of aliens in entities

Non-resident a lien must bind themselves to tra in a t l ea s t 2

Duration of employment permit

CHAPTER IV HUMAN RESOURCE DEVELOPMENT

Chapters: Asuncion 1-14, Ortiguerra 15, 18-21, Punzalan 16, Piccio 17

LABOR LAW REVIEW

Must be approved by TESDA.

LABOR LAW REVIEW

Di s ability must render them unqua l i fi ed or unfi t for the

CHAPTER V HOURS OF WORK, REST PERIODS,

whi le on call. An employee who is not required to l ea ve word a t hi s

Empl oyers ma y reduce norma l hours of work.

Reasons: Di s courages employer from requiri ng s uch work a nd thus

Workers who are paid by results, such as piece-rate or task-basis.

Managerial Employees employed by reason of their s pecial training,

LABOR LAW REVIEW

i ns tallations to avoid s erious loss which the employer would

Night Shift Differential

LABOR LAW REVIEW

Employees not entitled to SIL

LABOR LAW REVIEW

Needs Sol o Pa rents ID Ca rd. If s a me i s provi ded by

Note: Pi ece rate workers entitled to Night Shift Differenti a l , Hol i da y

Recompense or cons i dera ti on ma de to a pers on for hi s

Benefits wage earners by provi ding a rock bottom wa ge to