LABOR LAW
PRE-WEEK
LABOR LAW
LABOR STANDARDS
Q: What are the main classifications of labor
laws?
A: Labor laws are classified into three: (1) Labor
standards; (2) Labor relations and (3) Welfare
Laws
Q: What is the test used to determine
employer-employee relationship?
A: The “four-fold test” is generally applied to
determine existence of employer-employee
relationship. The test is composed of four
elements:
(1) selection and engagement of the
employee;
(2) payment of wages;
(3) power of dismissal; and
(4) employer’s power to control the
employee’s conduct
Q: What is meant by the “control test”
applied by courts in distinguishing an
employee with an independent contractor?
A: This test is based on the extent of control the
hirer exercises over a worker. The greater the
supervision and control the hirer exercises, the
more likely the worker is deemed an employee.
The converse holds true as well – the less
control the hirer exercises, the more likely the
worker is considered an independent contractor.
Q: When is job contracting permissible?
A: Job contracting is permissible only if the
following conditions are met:
(1) the contractor carries on an independent
business and undertakes the contract
work on his own account under his own
responsibility according to his own
manner and method, free from the
control and direction of his employer or
principal in all matters connected with
the performance of the work except as
to the results thereof; and
(2) the contractor has substantial capital or
investment in the form of tools,
equipment, machineries, work premises,
and other materials which are necessary
in the conduct of the business (Lakas
vs. Burlingame Corp (2007)).
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Q: When is an employer allowed to contract
out?
A: The company can determine in its best
business judgment whether it should contract
out the performance of some of its work for as
long as the employer is motivated by good faith,
and the contracting out must not have been
resorted to circumvent the law or must not have
been the result of malicious or arbitrary action
(Manila Electric Co. vs. Quisumbing (1999).
Q: Differentiate the legal effect of legitimate
job contracting with labor-only contracting.
A: In legitimate job contracting, no employer-
employee relation exists between the principal
and the job contractor's employees. The
principal is responsible to the job contractor's
employees only for the proper payment of
wages. But in labor-only contracting, an
employer-employee relation is created by law
between the principal and the labor-only
contractor's employees, such that the former is
responsible to such employees, as if he or she
had directly employed them (Philippine Airlines,
Inc. vs. NLRC (1998)).
Q: Who is a REGULAR employee?
A: A regular employee is one who is engaged to
perform activities which are necessary and
desirable in the usual business or trade of the
employer as against those which are undertaken
for a specific project or are seasonal. There are
two separate instances whereby it can be
determined that an employment is regular:
(1) if the particular activity performed by the
employee is necessary or desirable in the
usual business or trade of the employer;
and,
(2) if the employee has been performing the
job for at least a year (Pangilinan v Gen
Milling Corp. (2004)).
Q: Who is a PROJECT employee?
A: One whose employment has been fixed for a
specific project or undertaking the completion or
termination of which has been determined at the
time of the engagement of the employee (Art
LABOR LAW 3 PRE-WEEK

280). The principal test for determining whether he is terminable at any time, permanent
employees are properly characterized as employment not having been attained in the
"project employees," as distinguished from meantime. The employer could well decide he
"regular employees," is whether or not the no longer needed the probationary employee’s
project employees were assigned to carry out a services or his performance fell short of
"specific project or undertaking," the duration expectations, etc. As long as the termination
and scope of which were specified at the time was made before the termination of the six-
the employees were engaged for that project month probationary period, the employer was
(PNOC Energy Dev’t Corp vs. NLRC (2007)). well within his rights to sever the employer-
employee relationship. A contrary interpretation
Q: When does a project employee become a would defect the clear meaning of the term
regular employee? “probationary” (De la Cruz, Jr. vs. NLRC (2004)).
A: Where the employment of project employees
is extended long after the supposed project has Q: What is wage?
been finished, the employees are removed from A: Art. 97(f)
the scope of project employees and considered 1. It is the remuneration or earnings,
regular employees (Audion Electric Co., Inc. vs. however designated capable of being
NLRC (1999)). expressed in terms of money,
2. whether fixed or ascertained on a time,
Q: Who is a SEASONAL employee? task, piece, or commission basis, or other
A: One who works or performs a service which is method of calculating the same,
seasonal in nature and whose employment is 3. which is payable by an employer to an
only for the duration of the season (Art 280). employee
4. under a written or unwritten contract of
Q: Who is a CASUAL employee? employment for work done or to be done, or
A: An employee who is not a regular, project or for services rendered or to be rendered and
seasonal employee: Provided, that any 5. includes the fair and reasonable value,
employee who has rendered one (1) year as determined by the Secretary of Labor and
service, continuous or broken, shall be Employment, of board, lodging, or other
considered regular employee with respect to facilities customarily furnished by the
activity in which he is employed and his employer to the employee
employment shall continue while such activity 6. Fair and reasonable value - shall not
exists (Art 280). include any profit to the employer, or to any
What determines regularity or casualness is not person affiliated with the employer.
the employment contract, written or otherwise,
but the nature of the job. If the job is usually Q: Differentiate facilities from supplements.
A:
necessary or desirable to the main business of
Category Facilities Supplements
the employer, then employment is regular (A. M.
Articles or Extra
Oreta and Co., Inc. vs. NLRC (1989)). What it is
services/ items remuneration or
– not
of expense special benefits /
much
Q: Who is a PROBATIONARY employee? articles or
difference
A: A probationary employee is one who is on trial services / tools
here
by an employer during which the employer of the trade
determines whether or not he is qualified for For the benefit For the benefit
of the or convenience
permanent employment (International Catholic
Employee and of the
Migration Comm. vs. NLRC (1989)). Purpose
his family; for Employer
their existence
Q: How is a probationary employee and subsistence
terminated? Part of Wage Independent of
How
A: A probationary employee enjoys only a so it is the Wage so not
Treated
temporary employment status. This means that deductible deductible
LABOR LAW
Q: What is commission and how is treated?
A: It is the recompense, compensation or reward
of an agent, salesman, executor, trustee,
receiver, factor, broker or bailee, when the same
is calculated as a percentage on the amount of
his transactions or on the profit to the principal
(Iran v. NLRC, 1998).
It is treated as part of wage so it is included
in determining compliance with the minimum
wage. HOWEVER, commission is not part of the
th
“BASIC” salary in the computation of the 13
month pay. Songco v NLRC did not qualify
salary as basic so it was used in its generic
sense (Boie Takeda v Dela Serna, 1993).
Q: Are wages and salary synonymous?
A: Wages and Salary are in essence
synonymous. (Songco v. NLRC, 1990)
However, there are slight differences:
(1) Wage is paid for skilled or unskilled
manual labor while salary Paid to white
collar workers and denote a higher
grade of employment.
(2) Wage is not subject to execution,
garnishment or attachment except for
debts related to necessities following
Art. 1708 while salary is not exempt
from execution, garnishment or
attachment following Gaa vs. CA (1985).
Q: What is gratuity?
A: It is something given freely, or without
recompense, a gift, in return for a favor or
services; a bounty; a tip; It is a money benefit
given to the workers the purpose of which is to
reward employees or laborers, who have
rendered satisfactory and efficient service to the
company (Plastic Town Center Corp. v. NLRC
(1989)).
Q: What is meant by wage distortion?
A: A situation where an increase in prescribed
wage rates results in the elimination or severe
contraction of intentional quantitative differences
in wage or salary rates between and among
employee groups in an establishment as to
effectively obliterate the distinctions embodied in
such wage structure based on skills, length of
service, or other logical bases of differentiation
Wage distortion involves four elements:
1. Existing hierarchy of positions with
corresponding salary rates;
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2. A significant change in the salary rate of
a lower pay class without a concomitant
increase in the salary rate of a higher
one;
3. The elimination of the distinction
between the two levels; and
4. The existence of the distortion in the
same region of the country. (Prubankers
Assn. v. Prudential Bank and Co., 1999)
Q: How is wage distortion resolved?
A: Organized Establishment (with bargaining
representative)
i. Employer and the union shall
negotiate to correct the distortions.
ii. Disputes shall be resolved through the
grievance procedure.
iii. If still unresolved, voluntary arbitration.
Unorganized Establishment
i. ERs and Employees shall endeavor to
correct such distortions.
ii. Disputes shall be settled through the
National Conciliation and Mediation
Board.
iii. If still unresolved after 10 calendar
days of conciliation, it shall be referred
to the appropriate branch of the
National Labor Relations Commission
(NLRC). – compulsory arbitration
Q: How is wage affected by Night Shift
Differential pay, Overtime pay and Holiday
pay?
A: It is summarized as follows:
(1) Night shift differential on a normal day
(10pm-6am) - 110% (Additional 10% of
the regular daily wage)
(2) Overtime on normal day - 125% (At
least an additional 25% of regular daily
wage) per hour
(3) Work on any regular holiday, not
exceeding 8 hours - 200% of regular
daily wage
(4) Work on any regular holiday which falls
on the scheduled rest day, not
exceeding 8 hours - 230% (Additional
30% of 200% of regular daily wage)
(5) Overtime on a regular holiday - 230%
(Additional 30% of the 200% of regular
daily wage) per hour
(6) Overtime on a regular holiday which falls
on the scheduled rest day - 260%
LABOR LAW
(Additional 30% of the 230% of regular
daily wage) per hour
Q: In what forms are wages allowed to be
paid?
A:
1. Legal Tender (Art. 102)
2. Check or Money Order: allowable in any
of the following circumstances:
a. when customary on the date of
the effectivity of this Code,
b. necessary because of special
circumstances as specified in
appropriate regulations:
i. there is a bank or other
encashment facility within a 1
km radius from workplace;
ii. Employer or his agents does
not receive any direct or indirect
pecuniary benefit;
iii. Employes are given
reasonable time during banking
hours to withdraw, compensable
if such time is during working
hours; and
iv. With written consent
c. as stipulated in a CBA.
Q: Is bonus demandable?
A: General Rule: NO. It is a management
prerogative and non demandable; it is a gratuity
or act of liberality of the giver which the recipient
has no right to demand as matter of right.
(Traders Royal Bank vs. NLRC, 1990)
Exceptions:
(1) When it is part of the salary or wages
(2) When there is contractual agreement to
pay such
(3) When it is established company practice
Q: How is employment terminated by the
employee?
A:
Termination by employee with just cause – no
written notice to Employer required; the following
are just causes:
1. Serious insult by the Employer or his
representative on the honor and person
of the Employee;
2. Inhuman and unbearable treatment
accorded the Employee by the Employer
or his representative;
3. Commission of a crime or offense by the
Employer or his representative against
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the person of the Employee or any of
the immediate family members of his
family; and
4. Other causes analogous to any of the
foregoing. (Art 285 (b))
Termination by employee without just cause –
1. Employee to serve written notice on
Employer at least 1 month in advance.
(Art 285(a))
2. Effect of failure to serve notice:
Employer may hold Employee liable for
damages. (Art 285(a))
Resignation: the voluntary act of an Employee
who finds himself in a situation in which he
believes that personal reasons cannot be
sacrificed in favor of the exigency of the service
and he has no other choice but to dissociate
himself from his employment. (Oriental
Shipmanagement Co. vs. CA, 2006)
Q: How is employment terminated by
employer?
A:
(1) JUST CAUSES (SUBSTANTIVE DUE
PROCESS) (Art 282)
1. Serious misconduct
2. Wilful disobedience/ Insubordination
3. Gross and habitual neglect of duties
4. Loss of Trust and Confidence
5. Commission of a crime or offense
against the person of the Employer or
any immediate member of his family or
duly authorized representative
6. Analogous Causes
7. Constructive Discharge/Dismissal
8. Preventive Suspension
(2) AUTHORIZED CAUSES
1. Installation of labor saving devices (Art
283)
2. Redundancy (Art 283)
3. Retrenchment to prevent losses (Art
283)
4. Closure or cessation of operations
5. Disease
Q: When is moral damages recoverable in
case of dismissal?
A: Recoverable only when dismissal was:
a) Attended by bad faith or fraud; bad faith
does not pertain to negligence or bad
judgment but to a state of mind
dominated by ill will or motive,
LABOR LAW
b) constituted an act oppressive to labor, or
c) done in a manner contrary to morals,
good customs or public policy. (PAL vs.
NLRC, 1999)
Q: What is the liability of corporate officers in
case of illegal dismissal?
A: In cases of illegal dismissal, corporate
directors and officers are solidarily liable with the
corporation, where terminations of employment
are done with malice or in bad faith. (Bogo-
Medelin Sugarcane Planters Assn., Inc. v.
NLRC, 1998).
Q: What is recruitment and placement?
A: Art. 13 (b): “Recruitment and placement"
refers to any act of
a. canvassing,
b. enlisting,
c. contracting,
d. transporting,
e. utilizing, or
f. hiring procuring workers,
And also includes
a) referrals,
b) contract services,
c) promising, or
d) advertising for employment, locally or
abroad, whether for profit or not
Q: How does the government regulate
recruitment and employment of overseas
workers?
A:
1. Licensing – to obtain license, must
comply with requirenments of
citizenship, capitalization, payment of
registration fees, and posting of bonds.
2. Reports and Submissions (Art 33 and
Art 14)
3. Suspension (Art 35)
Q: When is illegal recruitment committed by
syndicate or in large scale?
A: Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three (3) or
more persons conspiring and/or confederating
with one another in carrying out any unlawful or
illegal transaction, enterprise or scheme defined
under the first paragraph hereof.
Illegal recruitment is deemed committed in
large scale if committed against three (3) or
more persons individually or as a group.
Q: When is employment permit issued to an
alien seeking admission to the Philippines
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for employment purposes and any domestic
or foreign employer who desires to engage
an alien for employment in the Philippines?
A: The employment permit may be issued to a
non-resident alien or to the applicant employer
after a determination of the non-availability of a
person in the Philippines who is competent, able
and willing at the time of application to perform
the services for which the alien is desired.
Q: When is an employee a field personnel?
A: Field personnel are employees whose time
and performance is unsupervised by the
employer (Salazar v. NLRC (1996)).
In deciding whether or not an employee’s actual
working hours in the field can be determined
with reasonable certainty, query must be made
as to whether or not such employee's time and
performance is constantly supervised by the
employer (Union of Filipro Employees v. Vivar,
1992).
If required to be at specific places at specific
times, employees including drivers cannot be
said to be field personnel, despite the fact that
they are performing work away from principal
office of employee (Auto Bus Transport
Systems, Inc. v. Bautista (2005)).
Q: Does the eight-hour work period include
the meal break?
A: No. The eight-hour work period does not
include the meal break. Employees are not
prohibited from going out of the premises as
long as they return to their posts on time
(Phil. Airlines, Inc. v. NLRC (1999)).
Q: Is undertime work on one day be offset
with overtime work on another day?
A: No. Art. 88: Undertime work on any particular
day shall not be offset by overtime work on any
other day.
Q: Are non-muslims entitled to the benefits
of a Muslim Holiday?
A: There should be no distinction between
Muslims & non-Muslims as regards to the
payment of benefits for Muslim holidays.
Wages & other emoluments granted by law
to the working man are determined on the
basis of the criteria laid down by laws & not
on worker’s faith. Art. 3(3), PD 1083 states
that nothing herein shall be construed to
operate to the prejudice of a non-Muslim
(San Miguel Corp vs. CA (2002))
LABOR LAW
LABOR RELATIONS
Q: What is the constitutional basis of the
right to self organization?
A: Art. III, Sec. 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.
Q: What rights are subsumed in the right to
self organization?
A: The following are deemed included in the
right to self-organize:
1.) The right not to exercise it which means the
right not to join, affiliate with or assist any union
(Reyes v. Trajano)
2.) The right to raise issues in behalf of the
organization (Union of Supervisors v. Sec. of
Labor)
3.) The right to withdraw from the organization
(Central Negros Electric Cooperative v. Sec. of
Labor)
4.) Right to choose one’s leaders (Pan-Am
World Airways v. Pan-Am Employees
Association)
Q: Why are supervisors not allowed to join a
union of rank-and-file employees?
A: To avoid a situation where supervisors would
merge with the rank and file, or where the
supervisors' labor organization would represent
conflicting interests (Dunlop v. Sec. of Labor,
1998).
Q: Who are considered as confidential
employees and why are they disallowed from
joining or forming unions?
A: Confidential employees are those who:
1.) assist or act in a confidential capacity
2.) to persons who formulate, determine, and
effectuate management policies in the field of
labor relations.
These two criteria are cumulative. The
prohibition rests on the rationale that employees
should not be placed in a position involving a
potential conflict of interests. (San Miguel Corp.
Supervisors v. Laguesma, 1997)
Q: May one attack the legal personality of a
labor organization collaterally?
A: No. After a certificate of registration is issued
to a union, its legal personality CANNOT be
subject to collateral attack. It may be questioned
only in an independent petition for cancellation in
accordance with Section 5 of Rule V, Book IV of
the "Rules to Implement the Labor Code"
(Tagaytay Highlands International Golf Club, Inc.
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vs. Tagaytay Highlands Employees Union,
2003).
Q: What is the nature of the relationship
between the union and its members?
A: The union is but an AGENT of the individual
workers and it has the duty to inform the
members of the labor matters entrusted to it.
The employer may rely on the authority of the
union to bring the union members especially in
collective bargaining (Heirs of Cruz v. CIR,
1969).
Q: What is the purpose of union affiliation?
A: The sole essence of affiliation is to increase,
by collective action, the common bargaining
power of local unions for the effective
enhancement and protection of their interests.
Admittedly, there are times when without succor
and support local unions may find it hard,
unaided by other support groups, to secure
justice for themselves (Phil Skylanders v. NLRC,
2002).
Q: To whom is the closed-shop proviso of a
CBA applicable?
A: The closed-shop proviso applies not only to
the employees or laborers that are employed
after the collective bargaining agreement was
entered into but also to old employees who are
not members of any labor union at the time the
said collective bargaining agreement was
entered into.
Q: What is check-off?
A: A check-off is a process or device whereby
the employer, on agreement with the Union,
recognized as the proper bargaining
representative, or on prior authorization from its
employees, deduct union dues or agency fees
from the latter’s wages and remit them directly to
the union. Its desirability in a labor organization
is quite evident. (ABS-CBN Supervisors
Employees Union V. ABS-CBN)
Q: What is an appropriate bargaining unit?
A: An appropriate bargaining unit refers to a
group of employees of a given employer
comprised of all or less than all of the entire
body of employees, which the collective interests
of all the employees indicate to be best suited to
serve reciprocal rights and duties of the parties
consistent with equity to the employer. (Belyca
Corp. vs Calleja, 1988)
LABOR LAW
Q: What are the functions of an appropriate
bargaining unit?
A: The following are the functions of an
appropriate bargaining unit according to Art.
255:
1.) To act as a SOVEREIGN in relation to the
Certification Election and CBA
2.) It is an ELECTORAL DISTRICT. It marks
the boundaries of those who may participate
in a certification election.
3.) It is an ECONOMIC UNIT.
4.) To SELECT or DESIGNATE a labor
organization to represent them in collective
bargaining
Q: What are the factors to be considered in
determining the appropriate bargaining unit?
A: UP v. Ferrer-Calleja (1992) citing Democratic
Labor Assoc v. Cebu Stevedoring Co: (W-A-P-
E)
Will of the Employees
Affinity & unity of Employees interest, such as
substantial similarity of works and duties or
similarity of compensation & working conditions
Prior Collective Bargaining history
Employment status i.e. temporary, seasonal, &
probationary
Q: Can there be a permanent bargaining
unit?
A: There can be no permanent bargaining unit
as an appropriate bargaining unit depends on
the factors that are influenced by the market
place. The bargaining unit is designed to
maintain the mutuality of interest among the
employees in such unit.
Q: What are the principles to consider in
determining whether or not to establish a
separate bargaining unit?
A: Indophil Textile Mills Workers Union v. Calica,
(1992); Diatagon Labor Federation v. Ople,
(1980):
The existence of a bonafide business
relationship between the 2 companies is not
proof of being a single corporate entity,
especially when the services provided by the
other company are merely auxiliary.
The fact that there are as many bargaining units
as there are companies in a conglomeration of
companies is a positive proof that a corporation
is endowed with a legal personality DISTINCTLY
ITS OWN, independent and separate from other
corporations.
Separate legitimate purposes militate against
treating one corporation as an adjunct or alter
ego of the other.
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The fact that the businesses are related, that
some of the employees are the same persons
working in the other company and the physical
plants, offices and facilities are in the same
compound are NOT sufficient to justify piercing
the corporate veil.
Q: What is voluntary recognition?
A: Voluntary Recognition refers to the process
by which a legitimate labor union is recognized
by the employer as the exclusive bargaining
representative or agent in a bargaining unit,
reported with the Regional office in accordance
to Rule VII, Sec 2.
Conditions:
1.) Unorganized establishment;
2.) Only one union asking for recognition; and
3.) The members of the bargaining unit did not
object to the projected recognition of the union.
Q: Are union members precluded from voting
in a certification election?
A: The plainly discernible intendment of the law
is to grant the right to vote to all bona fide
employees in the bargaining unit, whether they
are members of a labor organization or not.
(Reyes v. Trajano, 1992)
Q: What are the requisites for the holding a
certification election in organized
establishments?
A: The following are the requisites enumerated
in Art. 256 of the Labor Code:
1.) Verified petition, supported by at least 25%
of all the employees in the bargaining unit,
questioning the majority status of the
incumbent bargaining agent; and
2.) Filed before the DOLE withing the 60-day
period before the expiration of the collective
bargaining agreement
Q: What is the freedom period?
A: The last 60 days in a Collective Bargaining
Agreement (CBA) is referred to as the “freedom
period” when rival union representation can be
entertained during the existence of a CBA. It is
during this particular period when the majority
status of the incumbent bargaining agent can be
challenged (Tanduay Distillery Labor Union v.
NLRC).
Q: Can the employer question the validity of
a certification election?
A: An employer has no standing to question a
certification election since this is the sole
concern of the workers but may question the
inclusion of any disqualified employee in the
LABOR LAW 9 PRE-WEEK

certification election, during the exclusion- Q: What is a runaway shop?

inclusion proceedings before the representation A: A runaway shop is defined as an industrial
officer. (Phil. Telephone & Telegraph Co. v plant moved by its owners from one location to
Laguesma, 1993) another to escape union labor regulations or
state laws, but the term is also used to describe
Q: What are the effects of an expired a plant removed to a new location in order to
collective bargaining agreement on the discriminate against employees at the old plant
contract bar rule? because of their union activities. It is one
A: The case of Colegio de San Juan de Letran v. wherein the employer moves its business to
Assoc, (2000) provides the effects: another location or it temporarily closes its
No petition for CE may be filed after the lapse of business for anti-union purposes. (Complex
the 60 day freedom period. Electronics Employees Association v. NLRC,
The old CBA is extended until a new one is filed. 1999)
The purpose is to ensure stability in the
Q: What is the totality of conduct doctrine?
relationship of the workers and the company by
A: It means that expressions of opinion by an
preventing frequent modifications of any CBA
employer though innocent in themselves, may
earlier entered into by them in good faith and for
be held to be constitutive of unfair labor practice
the stipulated original period.
because of the circumstances under which they
were uttered, the history of the particular
Q: What is a deadlock?
employer’s labor relations or anti-union bias or
A: Collective Bargaining Deadlock is the
because of their connection with an established
situation between the labor and the
collateral plan of coercion or interference.
management of the company where there is
(Insular Life Assurance Co. Employees Ass’n. v.
failure in the collective bargaining negotiations
Insular Life)
resulting in a stalemate. It is a ground for strike
or lockout [Rule XXII, Section I, of the Rules and
Q: Can unfair labor practice be the subject of
Regulations Implementing Book V the Labor
a compromise agreement?
Code]. (San Miguel Corporation v. NLRC, 1999)
A: No. Unfair labor practices are not subject to
compromises in any event in view of the public
Q: What is the substitutionary doctrine?
interest involved therein. (Gochangco Workers
A: It occurs when there is a shift in employee’s
Union v. NLRC (1988)
union allegiance after the execution of a
collective bargaining contract with their
Q: What is a strike and what does it include?
employer. In such a case, the employees can
A: A strike is a coercive measure resorted to by
change their agent – the labor union, but the
laborers to enforce their demands. The idea
CBA continues to exist. (Benguet Consolidated,
behind a strike is that a company engaged in a
Inc. v BCI Employees and Workers Union—
profitable business cannot afford to have its
PAFLU, 1968)
production or activities interrupted, much less,
paralyzed. (Phil. Can Co. v. CIR, 1950). It
Q: When can an unfair practice be only
includes not only concerted work stoppages, but
committed?
also slowdowns, mass leaves, sitdowns,
A: An unfair labor practice may be committed
attempts to damage, destroy or sabotage plant
only within the context of an employer-employee
equipment and facilities, and similar activities.
relationship (American President Lines v. Clave,
(Samahang Manggagawa v. Sulpicio Lines,
1982)
2004)
Q: What is a yellow dog contract?
Q: Are striking employees entitled to the
A: A typical yellow dog contract embodies the
payment of wages?
following stipulations:
A: The general rule is that striking employees
1.) a representation by the employee that he is
are not entitled to the payment of wages for un-
not a member of a labor organization
worked days during the period of the strike
2.) a promise by the employee that he will not
pursuant to the principle of “No work- No pay”.
join a union
3.) a promise by the employee that upon joining
Q: What are the exceptions to the no
a labor organization, he will quit his
backwages rule?
employment
A: The following are the exceptions:
1.) when the employees were illegally locked
out to thus compel them to stage a strike;
LABOR LAW
2.) when the employer is guilty of the grossest
form of ULP;
3.) when the employer committed discrimination
in the rehiring of strikers refusing to readmit
those against whom there were pending
criminal cases while admitting non-strikers
who were also criminally charged in court; or
4.) when the workers who staged a voluntary
ULP strike offered to return to work
unconditionally but the employer refused to
reinstate them. (Phil. Diamond Hotel and
Resort, Inc. v. Manila Diamond Hotel
Employees Union, 2006)
Q: What are the forms of strikes?
A: The following are the forms of strikes:
1.) LEGAL STRIKE – one called for a valid
purpose and conducted through means
allowed by law.
2.) ILLEGAL STRIKE – one staged for a
purpose not recognized by law, or if for a
valid purpose, conducted through means not
sanctioned by law.
3.) ECONOMIC STRIKE – one staged by
workers to force wage or other economic
concessions from the employer which he is
not required by law to grant (Consolidated
Labor Association of the Phil. v. Marsman
and Company 1964).
4.) ULP STRIKE – one arising out of and
against a company's unfair labor practice.
5.) SLOWDOWN STRIKE – one by which
workers, without a complete stoppage of
work, retard production or their performance
of duties and functions to compel
management to grant their demands (Ilaw at
Buklod ng Manggagawa v. NLRC, 1991).
6.) WILD-CAT STRIKE – one declared and
staged without filing the required notice of
strike and without the majority approval of
the recognized bargaining agent.
7.) SIT DOWN STRIKE – one where the
workers stop working but do not leave their
place of work.
Q: What are the grounds for the declaration
of a strike?
A: A strike or lockout may be declared in cases
of:
1.) Bargaining deadlocks
2.) Unfair Labor Practice
Q: Can a strike be converted into a lockout?
A: A strike CANNOT be converted into a pure
and simple lockout by the mere expedient filing
before the trial court a notice of offer to return to
work during the pendency of the labor dispute
between the union and the employer. (Rizal
Cement Workers Union v. CIR, 1962)
10 PRE-WEEK
Q: Who can be a striking party?
A: The following can declare a strike or a
lockout:
1.) Certified or duly recognized bargaining
representative
2.) Employer; or
3.) In the absence of certified or duly
recognized bargaining representative, any
legitimate labor organization in the
establishment, but only on grounds of ULP.
Q: What is picketing?
A: Picketing refers to the right of workers to
peacefully march to and fro before an
establishment involved in a labor dispute
generally accompanied by the carrying and
display of signs, placards and banners intended
to inform the public about the dispute.
Q: What are the requisites for the granting of
a labor injunction?
A: The essential conditions for granting such
temporary injunctive relief are:
1.) that the complaint alleges facts which
appear to be sufficient to constitute a proper
basis for injunction and
2.) that on the entire showing from the
contending parties, the injunction is
reasonably necessary to protect the legal
rights of the plaintiff pending the litigation.
Q: What is the type of dispute subject to
compulsory arbitration and who may initiate
it?
A: Labor disputes in industry indispensable to
the national interest are the subjects of
compulsory arbitration. It can be initiated by the
Secretary of Labor or the President.