Pre Week Chan Labor

PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
By: Prof.JoselitoGuianan Chan
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART ONE
FUNDAMENTAL PRINCIPLES AND POLICIES
I. CONSTITUTIONAL PROVISIONS.
Out of the several topics under Fundamental Principles and Policies, the following provisions should be given primordial
importance:
ARTICL II
!CLARATION O" PRINCIPLS AN! STAT POLICIS
STATE POLICIES
Se#tion $. The State shall %ro&ote a 'ust an( (yna&i# so#ial or(er that )ill ensure the %ros%erity an(
in(e%en(en#e of the nation an( free the %eo%le fro& %o*erty throu+h %oli#ies that %ro*i(e a(e,uate so#ial
ser*i#es- %ro&ote full e&%loy&ent- a risin+ stan(ar( of li*in+- an( an i&%ro*e( ,uality of life for all.
Se#tion ./. The State shall %ro&ote so#ial 'usti#e in all %hases of national (e*elo%&ent.
Se#tion .0. The State affir&s la1or as a %ri&ary so#ial e#ono&i# for#e. It shall %rote#t the ri+hts of )or2ers
an( %ro&ote their )elfare.
ARTICL III
BILL O" RIG3TS
Se#tion .. No %erson shall 1e (e%ri*e( of life- li1erty- or %ro%erty )ithout (ue %ro#ess of la)- nor shall any
%erson 1e (enie( the e,ual %rote#tion of the la)s. 4NOT APPLICABL TO LABOR CASS5.
Se#tion 6. No la) shall 1e %asse( a1ri(+in+ the free(o& of s%ee#h- of e7%ression- or of the %ress- or the ri+ht of
the %eo%le %ea#ea1ly to asse&1le an( %etition the +o*ern&ent for re(ress of +rie*an#es. 4APPLICABL TO
PIC8TING5.
Section 7. The right of the people to information on matters of public concern shall be recognized. Access to
official records and to documents and papers pertaining to official acts transactions or decisions as !ell as to
go"ernment research data used as basis for polic# de"elopment shall be afforded the citizen sub$ect to such
limitations as ma# be pro"ided b# la!.4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3 </.= BAR >A:
S9LLABUS5.
Se#tion 0. The ri+ht of the %eo%le- in#lu(in+ those e&%loye( in the %u1li# an( %ri*ate se#tors- to for& unions-
asso#iations- or so#ieties for %ur%oses not #ontrary to la) shall not 1e a1ri(+e(.
Section %&. 'o la! impairing the obligation of contracts shall be passed.4VR9 I:PORTANT AS T3IS IS N;L9
A!!! IN T3 </.= BAR >A: S9LLABUS5.
Section %(. All persons shall ha"e the right to a speed# disposition of their cases before all $udicial )uasi*$udicial
oradministrati"e bodies. 4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3 </.= BAR >A:
S9LLABUS5.
Section 18. (2) No involuntary servitude in any form shall exist except as a punishment for a
crime whereof the party shall have been duly convicted. (VERY IMPORTANT AS THIS IS NEWLY
ADDED IN THE 2013 BAR EXAM SYLLABUS).
ARTICL >III
LA+O,
4VR9 I:PORTANT AS T3IS IS T3 SO?CALL! PROTCTION?TO?LABOR CLAUS IN T3 CONSTITUTION5
Se#tion =. The State shall affor( full %rote#tion to la1or- lo#al an( o*erseas- or+ani@e( an( unor+ani@e(- an(
%ro&ote full e&%loy&ent an( e,uality of e&%loy&ent o%%ortunities for all.
It shall +uarantee the ri+hts of all )or2ers to self?or+ani@ation- #olle#ti*e 1ar+ainin+ an( ne+otiations- an(
%ea#eful #on#erte( a#ti*ities- in#lu(in+ the ri+ht to stri2e in a##or(an#e )ith la). They shall 1e entitle( to
se#urity of tenure- hu&ane #on(itions of )or2- an( a li*in+ )a+e. They shall also %arti#i%ate in %oli#y an(
(e#ision?&a2in+ %ro#esses affe#tin+ their ri+hts an( 1enefits as &ay 1e %ro*i(e( 1y la).
The State shall %ro&ote the %rin#i%le of share( res%onsi1ility 1et)een )or2ers an( e&%loyers an( the
%referential use of *oluntary &o(es in settlin+ (is%utes- in#lu(in+ #on#iliation- an( shall enfor#e their &utual
#o&%lian#e there)ith to foster in(ustrial %ea#e.
The State shall re+ulate the relations 1et)een )or2ers an( e&%loyers- re#o+ni@in+ the ri+ht of la1or to its 'ust
share in the fruits of %ro(u#tion an( the ri+ht of enter%rises to reasona1le returns to in*est&ents- an( to
e7%ansion an( +ro)th.
-EALT-
Section %.. The State shall establish a special agenc# for disabled person for their rehabilitation self*de"elopment
and self*reliance and their integration into the mainstream of societ#. 4VR9 I:PORTANT AS T3IS IS N;L9 A!!!
IN T3 </.= BAR >A: S9LLABUS5.
Please take note of the following enabling laws of this constitutional provision:
Re%u1li# A#t No. A<AA [March 24, !!2", otherwise known as the “Magna Carta for Disabled Persons,” providing for
the rehabilitation, self#development and self#reliance of disabled persons and their integration into the mainstream of
societ$ and for other purposes% &ubse'uentl$,&ection 4 of Re%u1li# A#t No. $66< [effective (pril )*, 2**+" changed the
title of ,epublic (ct -o% +2++ to read as the “Magna Carta for Persons with Disability,” and all references in the said
law to “disabled persons” were likewise amended to read as “persons with disability.”
/O0E'
Se#tion .6. The State shall %rote#t )or2in+ )o&en 1y %ro*i(in+ safe an( healthful )or2in+ #on(itions- ta2in+
into a##ount their&aternal fun#tions- an( su#h fa#ilities an( o%%ortunities that )ill enhan#e their )elfare an(
ena1le the& to reali@e their full %otential in the ser*i#e of the nation.
Please take note of the following enabling laws of this constitutional provision:
o R.A. No. $A./ ? :a+na Carta of ;o&en 4Au+ust .6- <//$5
o C!A; LA; B .onvention on the /limination of (ll Forms of 0iscrimination (gainst 1omen
II. CONSTITUTIONAL PROVISIONS NOT APPLICABL TO LABOR CASS.
2he following constitutional rights and precepts cannot be invoked in labor cases, particularl$ in administrative investigations
leading to the termination of emplo$ment, because the$ can onl$ be asserted against the state3government and not against a private part$
4 the emplo$er:

a% Constitutional !ue Pro#ess since what applies is &tatutor$ 0ue Process under (rticle 2++5b6 of the 7abor .ode%["
b% ,ight to /'ual Protection of the 7aws%[2"
c% ,ight to .ounsel%[)"
d% ,ight (gainst &elf#8ncrimination%[4"
e% ,ight (gainst 9nreasonable &earches and &ei:ures%[;"
III. CIVIL CO! PROVISIONS.
Article %1. E"er# person must in the e2ercise of his rights and in the performance of his duties act !ith
$ustice gi"e e"er#one his due and obser"e honest# and good faith.4VR9 I:PORTANT AS T3IS IS N;L9 A!!!
IN T3 </.= BAR >A: S9LLABUS5.
Arti#le .A//. The relations 1et)een #a%ital an( la1or are NOT &erely #ontra#tual. They are so i&%resse(
)ith %u1li# interestthatla1or #ontra#ts &ust yiel( to the #o&&on +oo(. Therefore- su#h #ontra#ts are
su1'e#t to the s%e#ial la)s on la1or unions- #olle#ti*e 1ar+ainin+- stri2es an( lo#2outs- #lose( sho%- )a+es-
)or2in+ #on(itions- hours of la1or an( si&ilar su1'e#ts.
Article %7&3. In case of doubt all labor legislation and all labor contracts shall be construed in fa"or of
the safet# and decent li"ing for the laborer. 4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3 </.= BAR >A:
S9LLABUSC CORRLAT T3IS ;IT3 ARTICL 6 O" T3 LABOR CO! DS BLO;E5.
IV. LABOR CO! PROVISIONS.
Arti#le =. 4eclaration of basic polic#. ? The State shall affor( %rote#tion to la1or- %ro&ote full e&%loy&ent-
ensure e,ual )or2 o%%ortunities re+ar(less of se7- ra#e or #ree( an( re+ulate the relations 1et)een
)or2ers an( e&%loyers. The State shall assure the ri+hts of )or2ers to self?or+ani@ation- #olle#ti*e
1ar+ainin+- se#urity of tenure- an( 'ust an( hu&ane #on(itions of )or2.
Article 5. Construction in fa"or of labor. * All doubts in the implementation and interpretation of the
pro"isions of this Codeincluding its implementing rules and regulations shall be
resol"ed in fa"or of labor. 4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3 </.= BAR >A: S9LLABUS5.
Article %((. Polic#. * The State shall promote and de"elop a ta2*e2empt emplo#ees6 compensation
program !hereb# emplo#ees and their dependents in the e"ent of work-connected disability or death ma# promptl#
secure ade)uate income benefit andmedical related benefits. 4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3
</.= BAR >A: S9LLABUS5.
8n connection with this provision, please take note of the following:
a. The Emplo#ees6 Compensation Program 7ECP8.
The Employees’ Compensation Program (ECP) mentioned in Article 166 of the Labor Code is designed to provide pblic and
private sector employees and their dependents !ith income and other benefits in the event of a !or"#
connectedinjury, sickness$ disability or death% &t assres !or"ers of total protection throgh the provision of a comprehensive benefit
pac"age encompassing preventive occpational safety and health aspects$ crative or medical and compensatory grant$ and rehabilitation
of occpationally disabled !or"ers%
b. Attributes of the ECP.
2he /mplo$ees< .ompensation Program 5/.P6 is characteri:ed as follows:
% 8t is not sub=ect to ta>?
2% 8t is designed to ensure promptitude in cases of work#connected disabilit$ or death, in the award to emplo$ees and their dependents of
ade'uate income benefits and medical or related benefits?
)% 8t is funded b$ monthl$ contributions of all covered emplo$ers?
4%8t is compulsor$ on all emplo$ers and their emplo$ees whose age is not over si>t$ 5@*6 $ears old?
;%8t provides for benefits which are e>clusive and in place of all other liabilities of the emplo$er to the emplo$ee, his dependents or an$one
otherwise entitled to receive damages on behalf of the emplo$ee or his dependents? and
@%8t has its own ad=udicator$ machiner$ with original and e>clusive =urisdiction to settle an$ dispute with respect to coverage, entitlement to
benefits, collection and pa$ment of contributions and penalties thereon, or an$ other matter related thereto, independent of other tribunals,
e>cept the &upreme .ourt 5and the .ourt of (ppeals per Revised d!inistrative Circ"lar #o. $-%&6%[@"
c. Ad"antages and disad"antages.
2he following advantages ma$ be cited:
%2he coverage has been e>panded to include emplo$ers with at least one emplo$ee and irrespective of the t$pe or nature of business or
amount of business capitali:ation%
2%2he processing of claims has been simplified with the integration of compensation benefits with those of the A&8& or &&&, as the case ma$
be%
)%2he rates of income benefits and medical, rehabilitation and other services have been significantl$ increased%
4%2he procedure for settlement of claims has been simplified% 2edious and cumbersome proceedings have been eliminated%
;%(ttorne$<s fees and costs of legal services have been eliminated% 'rticle ()% *()+,, -abor Code..
d. Compensable contingencies under the ECP.
2he following contingencies are compensable under the /.P:
% 1ork#connected in/"ry or accident?
2% 1ork#connected sickness? and
)% (n$ disability or death resulting from an$ work#connected in=ur$ or accident or work#connected sickness%
Arti#le <FF. E2clusi"e bargaining representation and !or9ers6 participation in polic# and decision*ma9ing. B
The la1or or+ani@ation (esi+nate( or sele#te( 1y the &a'ority of the e&%loyees in an a%%ro%riate
#olle#ti*e 1ar+ainin+ unit shall 1e the e7#lusi*e re%resentati*e of the e&%loyees in su#h unit for the
%ur%ose of #olle#ti*e 1ar+ainin+. 3o)e*er- an in(i*i(ual e&%loyee or +rou% of e&%loyees shall ha*e the
ri+ht at any ti&e to %resent +rie*an#es to their e&%loyer.
Any %ro*ision of la) to the #ontrary not)ithstan(in+- )or2ers shall ha*e the ri+ht- su1'e#t to su#h rules
an( re+ulations as the Se#retary of La1or an( &%loy&ent &ay %ro&ul+ate- to %arti#i%ate in %oli#y an(
(e#ision?&a2in+ %ro#esses of the esta1lish&ent)here they are e&%loye( insofar as sai( %ro#esses
)ill (ire#tly affe#t their ri+hts- 1enefits an( )elfare. "or this %ur%ose- )or2ers an( e&%loyers &ay for&
la1or?&ana+e&ent #oun#ils: Pro"ided That the re%resentati*es of the )or2ers in su#h la1or?&ana+e&ent
#oun#ils shall 1e ele#te( 1y at least the &a'ority of all e&%loyees in sai( esta1lish&ent.
Arti#le <AA.0iscellaneous Pro"isions. B 4VR9 I:PORTANT AS T3IS IS N;L9 A!!! IN T3 </.= BAR >A:
S9LLABUSC T3IS IS T3 STATUTOR9 PROC!URAL !U PROCSS ;3IC3 S3OUL! APPL9 IN CAS O" !IS:ISSAL O"
:PLO9S5.
7b8 Sub$ect to the constitutional right of !or9ers to securit# of tenure and their right to be protected against
dismissal e2cept for a $ust and authorized cause and !ithout pre$udice to the re)uirement of notice under
Article 3:. of this Code the emplo#er shall furnish the !or9er !hose emplo#ment is sought to be
terminated a !ritten notice containing a statement of the causesforterminationandshall afford thelatter
ample opportunit# to be heard and to defend himself !ith the assistance of his representati"e if he so
desires in accordance !ith compan# rules and regulations promulgated pursuant to guidelines set b# the
4epartment of Labor and Emplo#ment. An# decision ta9en b# the emplo#er shall be !ithout pre$udice to
the right of the !or9er to contest the "alidit# or legalit# of his dismissal b# filing a complaint !ith the
regional branch of the 'ational Labor ,elations Commission. The burden of pro"ing that the
termination !as for a "alid or authorized cause shall rest on the emplo#er. The Secretar# of the
4epartment of Labor and Emplo#ment ma# suspend the effects of the termination pending resolution of
the dispute in the e"ent of a prima facie finding b# the appropriate official of the 4epartment of Labor
and Emplo#ment before !hom such dispute is pending that the termination ma# cause a serious labor
dispute or is in implementation of a mass la#*off.
7c8 An# emplo#ee !hether emplo#ed for a definite period or not shall beginning on his first da# of ser"ice be
considered as an emplo#ee for purposes of membership in an# labor union.4T3IS NUNCIATS T3 RUL
T3AT T3 RIG3T TO JOIN A UNION STARTS "RO: !A9 ON O" :PLO9:NT5.
4NOT: The other %ro*isions of Arti#le <AA are o&itte( for they are unli2ely to 1e +i*en in the 1ar e7a&s5.
oooooooooOoOooooooooo
[1] Agabon v. NLRC, G.R. No. 158693, November 17, 2004.
[2] Dn!an A""o!#a$#on o% De$a#&man'()G*+ v. G&a,o *e&!ome (-#&#..#ne", /n!., G.R. No. 162994, 0e.$ember 17, 200412ra"eg# v. (-#&#..#ne A#r&#ne", /n!., G.R. No. 168081, +!$ober 17,
2008.
[3] 3ane& v. N. C. Con"$r!$#on 0..&4, [G.R. No. 127553, November 28, 1997, 282 0CRA 326.
[4] (a"!a&, 5r. v. 6oar7 o% 3e7#!a& 8,am#ner", G.R. No. L' 25018, 3a4 26, 19691 Caba& v. 9a.nan, 5r., G.R. No. L'19052, De!ember 29, 1962.
[5] *a$ero" Drg Cor.ora$#on v. NLRC, G.R. No. 113271, +!$ober 16, 1997, 280 0CRA 735.
[6] 0an 3#ge& Cor.ora$#on v. NLRC, G.R. No. 57473, Ag. 15, 1988.

Pow!" #$% &'()!o#*+#(!.&o,.-'
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
By: Prof.JoselitoGuianan Chan
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART TWO
RECRUITMENT AND PLACEMENT
I. ILLGAL RCRUIT:NT AS !"IN! UN!R R.A. NO. .//<< D:ARC3 0- </./E.D.E
Ille+al re#ruit&ent means an$ act of canvassing, enlisting, contracting, transporting, utili:ing, hiring, or procuring workers and
includes referring, contract services, promising or advertising for emplo$ment abroad, )hether for %rofit or not, when undertaken
b$ non?li#ensee or non?hol(er of authority contemplated under (rticle )5f6 of the 7abor .ode: Provided, 2hat an$ such non#licensee
or non#holder who, in an$ manner, offers or promises for a fee emplo$ment abroad to two or more persons shall be deemed so engaged%
8t shall likewise include the following acts, )hether #o&&itte( 1y any %erson- )hether a non?li#ensee- non?hol(er- li#ensee or
hol(er of authority:
5a6 2o charge or accept directl$ or indirectl$ an$ amount +reater than that specified in the s#he(ule of allo)a1le
fees prescribed b$ the &ecretar$ of 7abor and /mplo$ment, or to &a2e a )or2er %ay or a#2no)le(+e any a&ount
+reater than that a#tually re#ei*e( 1y hi& as a loan or a(*an#e?
5b6 2o furnish or publish an$ false noti#e or infor&ation or (o#u&ent in relation to recruitment or emplo$ment?
5c6 2o give an$ false noti#e- testi&ony- infor&ation or (o#u&ent or #o&&it any a#t of &isre%resentation for the purpose
of securing ali#ense or authority under the 7abor .ode, or for the purpose of documenting hired workers with the
PO/(, which include the act of reprocessing workers through a =ob order that pertains to non?e7istent )or2, )or2
(ifferent fro& the a#tual o*erseas )or2- or )or2 )ith a (ifferent e&%loyer )hether re+istere( or not )ith the
POA?
5d6 2o include or attempt to induce a worker alread$ emplo$ed to ,uit his e&%loy&ent in or(er to offer hi& another unless
the transfer is designed to liberate a worker from oppressive terms and conditions of emplo$ment?
5e6 2o influence or attempt to influence an$ person or entit$ not to e&%loy any )or2er who has not applied for emplo$ment
through his agenc$ or who has formed, =oined or supported, or has contacted or is supported b$ an$ union or workersB
organi:ation?
5f6 2o engage in the recruitment or placement of workers in 'o1s har&ful to %u1li# health or &orality or to the (i+nity of the
,epublic of the Philippines?
5g6 2o obstruct or attempt to obstruct ins%e#tion b$ the &ecretar$ of 7abor and /mplo$ment or b$ his dul$ authori:ed
representative?
5h62o fail to submit re%orts on the status of e&%loy&ent- %la#e&ent *a#an#ies- re&ittan#e of forei+n e7#han+e earnin+s-
se%aration fro& 'o1s- (e%artures an( su#h other &atters or information as ma$ be re'uired b$ the &ecretar$ of 7abor
and /mplo$ment?
5i6 2o su1stitute or alter to the pre=udice of the worker, e&%loy&ent #ontra#ts approved and verified b$ the 0O7/ from the
time of actual signing thereof b$ the parties up to and including the period of the e>piration of the same )ithout the
a%%ro*al of the 0O7/?
5=6 "or an offi#er or a+ent of a re#ruit&ent or %la#e&ent a+en#y to 1e#o&e an offi#er or &e&1er of the Boar( of any
#or%oration en+a+e( in tra*el a+en#y or to 1e en+a+e( (ire#tly or in(ire#tly in the &ana+e&ent of tra*el a+en#y?
5k6 2o )ithhol( or (eny tra*el (o#u&ents from applicant workers 1efore (e%arture for &onetary or finan#ial
#onsi(erations, or for an$ other reasons, other than those authori:ed under the 7abor .ode and its implementing rules
and regulations?
5l6 "ailure to a#tually (e%loy a #ontra#te( )or2er )ithout *ali( reason as determined b$ the 0O7/?
5m6"ailure to rei&1urse e7%enses incurred b$ the worker in connection with his documentation and processing for purposes
of deplo$ment, in cases )here the (e%loy&ent (oes not a#tually ta2e %la#e )ithout the )or2erGs fault% Ille+al
re#ruit&ent )hen #o&&itte( 1y a syn(i#ate or in lar+e s#ale shall 1e #onsi(ere( an offense in*ol*in+ e#ono&i#
sa1ota+e? and
5n62o allow a non?"ili%ino #iti@en to hea( or &ana+e a li#ense( re#ruit&entH&annin+ a+en#y%
II. OT3R PRO3IBIT! ACTS UN!R R.A. NO. .//<<.D<E
8t shall also be unlawful for an$ person or entit$ to commit the following prohibited acts:
56 Arant a loan to an overseas Filipino worker with interest e7#ee(in+ ei+ht %er#ent 40I5 %er annu&, which will be used
for %ay&ent of le+al an( allo)a1le %la#e&ent fees and make the migrant worker issue, either personall$ or through a
guarantor or accommodation part$, %ost?(ate( #he#2s in relation to the said loan?
526 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re,uire( to a*ail of a loan
only fro& s%e#ifi#ally (esi+nate( institutions- entities or %ersons?
5)6 Refuse to #on(one or rene+otiate a loan incurred b$ an overseas Filipino worker after the latterBs emplo$ment contract has
been%re&aturely ter&inate( through no fault of his3her own?
546 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re'uired to undergo health
e7a&inations only fro& s%e#ifi#ally (esi+nate( &e(i#al #lini#s- institutions- entities or %ersons, e7#e%t in the case of
a seafarer whose &e(i#al e7a&ination #ost is shoul(ere( 1y the %rin#i%alHshi%o)ner?
5;6 8mpose a #o&%ulsory and e7#lusi*e arran+e&ent whereb$ an overseas Filipino worker is re'uired to undergo trainin+-
se&inar- instru#tion or s#hoolin+ of any 2in( only fro& s%e#ifi#ally (esi+nate( institutions- entities or
%ersons- e7#e%t for recommendator$ trainings mandated b$ principals3shipowners where the latter shoulder the cost of
such trainings?
5@6 For a sus%en(e( recruitment3manning agenc$ to en+a+e in any 2in( of re#ruit&ent a#ti*ity in#lu(in+ the %ro#essin+ of
%en(in+ )or2ersG a%%li#ations? and
5+6 For a recruitment3manning agenc$ or a foreign principal3emplo$er to %ass on the overseas Filipino worker or (e(u#t
fro& his3her salar$ the pa$ment of the #ost of insuran#e fees- %re&iu& or other insuran#e relate( #har+es, as
provided under the compulsor$ workerBs insurance coverage%
III. L:NTS O" SI:PL ILLGAL RCRUIT:NT.
The essential elements of +.,-* .**/(* !&!0.1,)1 !ithot the attendant 'alifying circmstances$ are(
% 2he person charged with the crime must have undertaken recruitment and placement activities under (rticle ) [b" or an$ of
the activities enumerated in (rticle )4 of the 7abor .ode, as amended? and
2%&aid person does not have a license or authorit$ to do so or more specificall$, that he has not complied with such guidelines,
rules and regulations issued b$ the &ecretar$ of 7abor and /mplo$ment, particularl$ with respect to the securing of license
or authorit$ to recruit and deplo$ workers, either locall$ or overseas%
Re#ruit&ent an( %la#e&ent a#ti*ities- (efine(. ? 2he phrase “recr"it!ent and place!ent” refers to the acts described in
paragraph [b" of (rticle ) of the 7abor .ode, vi0.:
C[b" 1Recr"it!ent and place!ent2 refers to an$ act of canvassing, enlisting, contracting, transporting, utili:ing, hiring or
procuring workers, and includes referrals, contract services, promising or advertising for emplo$ment, locall$ or abroad, whether for
profit or not:Provided, 2hat an$ person or entit$ which, in an$ manner, offers or promises for a fee, emplo$ment to two or more
persons shall be deemed engaged in recruitment and placement%D
IV.AN9 PRSON- ;3T3R A NON?LICNS- NON?3OL!R- LICNS OR 3OL!R O" AUT3ORIT9 :A9 B
3L! LIABL "OR ILLGAL RCRUIT:NT.
Under R.A. No, 8042, license or authority of the illegal recruiter is immaterial. - Under R.A.
No. 8042, the crime of illegal recruitment may be committed by any person, whether a non-licensee, non-
holder, licensee or holder of authority.8t is clear that under this law, in or(er to %ro*e ille+al re#ruit&ent- there is no nee( to
esta1lish )hether the a##use( is a li#ensee or hol(er of authority or not 1e#ause it is no lon+er an ele&ent of the #ri&e.
V. ILLGAL RCRUIT:NT- ;3N CONSI!R! CONO:IC SABOTAG.
8llegal recruitment is considered a crime involving economic sabotage when the commission thereof is attended b$ the following
'ualif$ing circumstances:
%1hen committed 1y a syn(i#ate? or
2%1hen committed in lar+e s#ale%
VI. ILLGAL RCRUIT:NT CO::ITT! B9 A S9N!ICAT.
;hen #o&&itte( 1y a syn(i#ate. ? 8llegal recruitment is deemed committed b$ a syndicate if it is carried out b$ a group of
three 5)6 or more persons conspiring or confederating with one another%
le&ents of ille+al re#ruit&ent 1y a syn(i#ate. ? 2he essential elements of the crime of illegal recruitment committed b$ a
s$ndicate are as follows:
%2here are at least three 5)6 persons who, conspiring and3or confederating with one another, carried out an$ unlawful or illegal
recruitment and placement activities as defined under (rticle ) [b" or in an$ prohibited activities under (rticle )4 of the
7abor .ode? and
2%&aid persons are not licensed or authori:ed to do so, either locall$ or overseas%
The la! does not re'ire that the syndicate shold recrit more than one (1) person in order to constitte the crime
of illegal recritment by a syndicate% )ecritment of one (1) person !old sffice to 'alify the illegal recritment act as
having been committed by a syndicate%
VII. ILLGAL RCRUIT:NT IN LARG SCAL.
;hen #o&&itte( in lar+e s#ale. # 8llegal recruitment is deemed committed in lar+e s#ale if committed against three 5)6 or
more persons individuall$ or as a group%
le&ents of ille+al re#ruit&ent in lar+e s#ale.# 2he essential elements of illegal recruitment in large scale, as distinguished
from simple illegal recruitment, are as follows:
%2he accused engages in the recruitment and placement of workers as defined under (rticle ) [b" or in an$ prohibited
activities under (rticle )4 of the 7abor .ode?
2%2he accused has not complied with the guidelines issued b$ the &ecretar$ of 7abor and /mplo$ment, particularl$ with respect
to the securing of license or an authorit$ to recruit and deplo$ workers, either locall$ or overseas? and
)%2he accused commits the same against three 5)6 or more persons, individuall$ or as a group%
!istin+uishe( fro& ille+al re#ruit&ent 1y a syn(i#ate. ? (s distinguished from illegal recruitment committed b$ a s$ndicate,
illegal recruitment in large scale ma$ be committed b$ onl$ one 56 person%1hat is important as 'ualif$ing element is that there should be
at least three 5)6 victims of such illegal recruitment, individuall$ or as a group%
The nu&1er of %ersons *i#ti&i@e( is (eter&inati*e of the #ri&e. ? ( conviction for large scale illegal recruitment must be
based on a finding in each case of illegal recruitment of three 5)6 or more persons having been recruited, whether individuall$ or as a
group%
Note: ;ailure to pro"e at least . persons recruited ma9es the crime a case of simple illegal recruitment.
VIII. A PRSON- "OR T3 SA: ACTS- :A9 B C3ARG! AN! CONVICT! SPARATL9 "OR T3 CRI: O"
ILLGAL RCRUIT:NT AN! T3 "LON9 O" STA"A.
8n cases where some other crimes or felonies are committed in the process of illegal recruitment, conviction under the 7abor
.ode does not preclude punishment under other statutes%
I>. NATUR O" LIABILIT9 O" LOCAL RCRUIT:NT AGNC9 AN! "ORIGN PRINCIPAL.
%7ocal (genc$ is solidaril$ liable with foreign principal%
2%&everance of relations between local agent and foreign principal does not affect liabilit$ of local recruiter%
>. T3OR9 O" I:PUT! 8NO;L!G.
2his theor$ refers to cogni:ance of a circumstance or fact attributed to a part$ because of its position, or its relationshipwith
or responsibilit$ for another part$%
2he relationship of the local recruitment3manning agenc$ vis-a-vis its foreign principal is that of agent#principal, the former
being the agent and the latter, the principal% .onse'uentl$, the theory of i&%ute( 2no)le(+e ascribes the knowledge of the agent to the
principal but not the other )ay aroun(%
2hus, the violations of the terms and conditions of an e>tension contract, the e>ecution of which the recruiter did not know and
did not consent to, shall not make said recruiter solidaril$ liable for the reason that knowledge b$ his principal of said contract cannot be
imputed to him%
oooooooooOoOooooooooo
[1] 0e!$#on 6 o% R.A. No. 8042 :-#!- 7e%#ne7 #&&ega& re!r#$men$ :a" amen7e7 b4 0e!$#on 5 o% R.A. No. 10022 ;3ar!- 8, 2010<.
[2] 0e!$#on 6 o% R.A. No. 8042, a" amen7e7 b4 0e!$#on 5 o% R.A. No. 10022 ;3ar!- 8, 2010<.
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
By: Prof.JoselitoGuianan Chan
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART THREE
LABOR STANDARDS
A. 3OURS O" ;OR8.
.. Co*era+e. ? (ll emplo$ees in all establishments, whether operated for profit or not, are covered b$ the law on labor
standards%
<. 7#lu(e( e&%loyees. ? 2he following are e7#lu(e( from the coverage of the law on labor standards:
a%Aovernment emplo$ees?
b%Managerial emplo$ees?
c%Other officers or members of a managerial staff?
d%0omestic servants and persons in the personal service of another?
e%1orkers paid b$ results?
f%-on#agricultural field personnel? and
g%Members of the famil$ of the emplo$er%
=. Nor&al hours of )or2. ? 2he total number of working hours of a worker or emplo$ee shall not e>ceed eight 5E6 hours dail$%
2his eight 5E6 hour period is called the nor!al ho"rs of work%
6. O*erti&e )or2C O*erti&e %ay. ? (n$ work in e>cess of eight 5E6 hours is considered o*erti&e work% Overtime
rate: <FI # for overtime work on ordinar$ da$s? =/I # for overtime work on rest da$%
F. Co&%resse( )or2 )ee2 ? 8t is an alternative arrangement whereb$ the normal workweek is reduced to less than si> 5@6 da$s
but the total number of normal work hours per week shall remain at fort$#eight 54E6 hours% 2he normal workda$ is thus
increased to more than eight 5E6 hours without corresponding overtime premium% 2his concept can be ad=usted accordingl$
in cases where the normal workweek of the firm is five 5;6 da$s%
J. :eal 1rea2. ? /ver$ emplo$er is re'uired to give his emplo$ees, regardless of se>, not less than one 56 hour 5or @* minutes6
time#off for regular meals% Feing time#off, it is not #o&%ensa1le hoursworked%8n this case, the emplo$ee is free to do
an$thing he wants, e>cept to work%8f he is re'uired, however, to work while eating, he should be compensated therefor%
A. ;aitin+ ti&e. B 1aiting time spent b$ an emplo$ee shall be considered as working time if waiting is an integral part of his
work or the emplo$ee is re'uired or engaged b$ the emplo$er to wait%
0. Ni+ht )or2. B SINC T3IS IS PROVI!! UN!R A N; LA;- R.A. NO. ./.F.D.E DJUN <.- </..E- ; AR
KUOTING T3 NTIR C3APTR INSRT! B9 IT INTO T3 LABOR CO!:
C'(-1! V
E,-*o$,)1 o2 N./'1 Wo!3!+
A!1.&* 145. Coverae. ! T'.+ &'(-1! +'(** (--*$ 1o (** -!+o)+6 w'o +'(** # ,-*o$" o! -!,.11" o!
+022!" 1o wo!3 (1 )./'16 except 1'o+ ,-*o$" .) (/!.&0*10!6 +1o&3 !(.+.)/6 2.+'.)/6 ,(!.1., 1!()+-o!1 ()"
.)*()" )(7./(1.o)6 "0!.)/ ( -!.o" o2 )o1 *++ 1'() +7) (8) &o)+&01.7 'o0!+6 .)&*0".)/ 1' .)1!7(* 2!o,
,.")./'1 1o 2.7 o9&*o&3 .) 1' ,o!).)/6 1o # "1!,.)" #$ 1' S&!1(!$ o2 L(#o! ()" E,-*o$,)16 (21!
&o)+0*1.)/ 1' wo!3!+9 !-!+)1(1.7+:*(#o! o!/().;(1.o)+ ()" ,-*o$!+.
< N./'1 wo!3!= ,()+ ()$ ,-*o$" -!+o) w'o+ wo!3 !>0.!+ -!2o!,()& o2 ( +0#+1()1.(*
)0,#! o2 'o0!+ o2 )./'1 wo!3 w'.&' ?&"+ ( +-&.2." *.,.1. T'.+ *.,.1 +'(** # 2.?" #$ 1' S&!1(!$ o2
L(#o! (21! &o)+0*1.)/ 1' wo!3!+9 !-!+)1(1.7+:*(#o! o!/().;(1.o)+ ()" ,-*o$!+.
A!1.&* 144. "ealth #ssessment$ ! A1 1'.! !>0+16 wo!3!+ +'(** '(7 1' !./'1 1o 0)"!/o ( '(*1'
(++++,)1 w.1'o01 &'(!/ ()" 1o !&.7 ("7.& o) 'ow 1o !"0& o! (7o." '(*1' -!o#*,+ (++o&.(1" w.1'
1'.! wo!3%
(() B2o! 1(3.)/ 0- () (++./),)1 (+ ( )./'1 wo!3!@
(#) A1 !/0*(! .)1!7(*+ "0!.)/ +0&' () (++./),)1@ ()"
(&) I2 1'$ ?-!.)& '(*1' -!o#*,+ "0!.)/ +0&' () (++./),)1 w'.&' (! )o1 &(0+" #$ 2(&1o!+
o1'! 1'() 1' -!2o!,()& o2 )./'1 wo!3.
W.1' 1' ?&-1.o) o2 ( 2.)".)/ o2 0)2.1)++ 2o! )./'1 wo!36 1' 2.)".)/+ o2 +0&' (++++,)1+ +'(** )o1
# 1!()+,.11" 1o o1'!+ w.1'o01 1' wo!3!+9 &o)+)1 ()" +'(** )o1 # 0+" 1o 1'.! "1!.,)1.
A!1.&* 14A. %andatory &acilities. ! S0.1(#* 2.!+1B(." 2(&.*.1.+ +'(** # ,(" (7(.*(#* 2o! wo!3!+
-!2o!,.)/ )./'1 wo!36 .)&*0".)/ (!!()/,)1+ w'! +0&' wo!3!+6 w'! )&++(!$6 &() # 1(3)
.,,".(1*$ 1o ( -*(& 2o! (--!o-!.(1 1!(1,)1. T' ,-*o$!+ (! *.3w.+ !>0.!" 1o -!o7." +(2 ()"
'(*1'20* wo!3.)/ &o)".1.o)+ ()" (">0(1 o! !(+o)(#* 2(&.*.1.+ +0&' (+ +*-.)/ o! !+1.)/ >0(!1!+ .) 1'
+1(#*.+',)1 ()" 1!()+-o!1(1.o) 2!o, 1' wo!3 -!,.++ 1o 1' )(!+1 -o.)1 o2 1'.! !+.")& +0#C&1 1o
?&-1.o)+ ()" /0."*.)+ 1o # -!o7."" #$ 1' DOLE.
A!1.&* 148. 'ransfer. ! N./'1 wo!3!+ w'o (! &!1.2." (+ 0)2.1 2o! )./'1 wo!36 "0 1o '(*1' !(+o)+6
+'(** # 1!()+2!!"6 w')7! -!(&1.&(#*6 1o ( +.,.*(! Co# 2o! w'.&' 1'$ (! 2.1 1o wo!3.
I2 +0&' 1!()+2! 1o ( +.,.*(! Co# .+ )o1 -!(&1.&(#*6 1'+ wo!3!+ +'(** # /!()1" 1' +(, #)2.1+ (+
o1'! wo!3!+ w'o (! 0)(#* 1o wo!36 o! 1o +&0! ,-*o$,)1 "0!.)/ +0&' -!.o".
A )./'1 wo!3! &!1.2." (+ 1,-o!(!.*$ 0)2.1 2o! )./'1 wo!3 +'(** # /.7) 1' +(, -!o1&1.o) (/(.)+1
".+,.++(* o! )o1.& o2 ".+,.++(* (+ o1'! wo!3!+ w'o (! -!7)1" 2!o, wo!3.)/ 2o! !(+o)+ o2 '(*1'.
A!1.&* 14D. (omen Niht (or)ers.* M(+0!+ +'(** # 1(3) 1o )+0! 1'(1 () (*1!)(1.7 1o )./'1
wo!3 .+ (7(.*(#* 1o wo,) wo!3!+ w'o wo0*" o1'!w.+ # &(**" 0-o) 1o -!2o!, +0&' wo!3%
(() B2o! ()" (21! &'.*"#.!1'6 2o! ( -!.o" o2 (1 *(+1 +.?1) (1A) w3+6 w'.&' +'(** # ".7.""
#1w) 1' 1., #2o! ()" (21! &'.*"#.!1'@
(#) Fo! ("".1.o)(* -!.o"+6 .) !+-&1 o2 w'.&' ( ,".&(* &!1.2.&(1 .+ -!o"0&" +1(1.)/ 1'(1 +(."
("".1.o)(* -!.o"+ (! )&++(!$ 2o! 1' '(*1' o2 1' ,o1'! o! &'.*"%
(1) D0!.)/ -!/)()&$@
(2) D0!.)/ ( +-&.2." 1., #$o)" 1' -!.o"6 (21! &'.*"#.!1' .+ 2.?" -0!+0()1 1o +0#-(!(/!(-'
(() (#o76 1' *)/1' o2 w'.&' +'(** # "1!,.)" #$ 1' DOLE (21! &o)+0*1.)/ 1' *(#o!
o!/().;(1.o)+ ()" ,-*o$!+.
D0!.)/ 1' -!.o"+ !2!!" 1o .) 1'.+ (!1.&*%
(.) A wo,() wo!3! +'(** )o1 # ".+,.++" o! /.7) )o1.& o2 ".+,.++(*6 ?&-1 2o! C0+1 o! (01'o!.+"
&(0++ -!o7."" 2o! .) 1'.+ Co" 1'(1 (! )o1 &o))&1" w.1' -!/)()&$6 &'.*"#.!1' ()" &'.*"&(!
!+-o)+.#.*.1.+.
(..)A wo,() wo!3! +'(** )o1 *o+ 1' #)2.1+ !/(!".)/ '! +1(10+6 +).o!.1$6 ()" (&&++ 1o
-!o,o1.o) w'.&' ,($ (11(&' 1o '! !/0*(! )./'1 wo!3 -o+.1.o).
P!/)()1 wo,) ()" )0!+.)/ ,o1'!+ ,($ ' (**ow" 1o wo!3 (1 )./'1 o)*$ .2 ( &o,-1)1 -'$+.&.()6
o1'! 1'() 1' &o,-()$ -'$+.&.()6 +'(** &!1.2$ 1'.! 2.1)++ 1o !)"! )./'1 wo!36 ()" +-&.2$6 .) 1' (+ o2
-!/)()1 ,-*o$+6 1' -!.o" o2 1' -!/)()&$ 1'(1 1'$ &() +(2*$ wo!3.
T' ,(+0!+ !2!!" 1o .) 1'.+ (!1.&* ,($ .)&*0" 1!()+2! 1o "($ wo!3 w'! 1'.+ .+ -o++.#*6 1'
-!o7.+.o) o2 +o&.(* +&0!.1$ #)2.1+ o! () ?1)+.o) o2 ,(1!).1$ *(7.
T' -!o7.+.o)+ o2 1'.+ (!1.&* +'(** )o1 '(7 1' 22&1 o2 !"0&.)/ 1' -!o1&1.o) ()" #)2.1+
&o))&1" w.1' ,(1!).1$ *(7 0)"! ?.+1.)/ *(w+.
A!1.&* 14E. Compensation.* T' &o,-)+(1.o) 2o! )./'1 wo!3!+ .) 1' 2o!, o2 wo!3.)/ 1.,6 -($ o!
+.,.*(! #)2.1+ +'(** !&o/).; 1' ?&-1.o)(* )(10! o2 )./'1 wo!3.
A!1.&* 1A0. Social Services.*A--!o-!.(1 +o&.(* +!7.&+ +'(** # -!o7."" 2o! )./'1 wo!3!+ ()"6
w'! )&++(!$6 2o! wo!3!+ -!2o!,.)/ )./'1 wo!3.
A!1.&* 1A1. Niht (or) Schedules.* B2o! .)1!o"0&.)/ wo!3 +&'"0*+ !>0.!.)/ 1' +!7.&+ o2
)./'1 wo!3!+6 1' ,-*o$! +'(** &o)+0*1 1' wo!3!+9 !-!+)1(1.7+:*(#o! o!/().;(1.o)+ &o)&!)" o) 1'
"1(.*+ o2 +0&' +&'"0*+ ()" 1' 2o!,+ o2 o!/().;(1.o) o2 )./'1 wo!3 1'(1 (! #+1 ("(-1" 1o 1'
+1(#*.+',)1 ()" .1+ -!+o))*6 (+ w** (+ o) 1'o&&0-(1.o)(* '(*1' ,(+0!+ ()" +o&.(* +!7.&+ w'.&' (!
!>0.!". I) +1(#*.+',)1+ ,-*o$.)/ )./'1 wo!3!+6&o)+0*1(1.o) +'(** 1(3 -*(& !/0*(!*$.[2
$. Ni+ht Shift !ifferential. ? /ver$ emplo$ee shall be paid a night shift differential of not less than ten percent 5*G6 of his
regular wage for each hour of work performed between ten o<clock in the evening and si> o<clock in the morning%
./.Part?ti&e )or2. ? On the issue of whether the emplo$er should give the part#time emplo$ees concerned onl$ fift$ percent
5;*G6 of the wages and other benefits that the emplo$er ma$ pa$ the workers who will work for four 546 hours a da$, @:**
to *:** in the evening, the compensation in proportion to the time the$ actuall$ rendered work or e'uivalent to onl$ four
546 hours a da$ must be given to part#time workers% 2his is, however, without pre=udice to an$ individual or collective
agreement or compan$ practice or polic$ that provides higher basis of computation of wages%
...Contra#t for %ie#e )or2 4see Ci*il Co(e5. B &ince the s$llabus prescribes the definition to be in accordance with the .ivil
.ode, (rticle 4@+ provides:
C(,2% 4@+% ( contract for the deliver$ at a certain price of an article which the vendor in the ordinar$ course
of his business manufactures or procures for the general market, whether the same is on hand at the time or not, is a
contract of sale, 1ut if the +oo(s are to 1e &anufa#ture( s%e#ially for the #usto&er an( u%on his s%e#ial or(er-
an( not for the +eneral &ar2et- it is a #ontra#t for a %ie#e of )or2.L
B. ;AGS.
.. ;a+e *s. Salary. ? 2he term <!age= is used to characteri:e the compensation paid for manual skilled or unskilled
labor% <Salar#=on the other hand, is used to describe the compensation for higher or superior level of emplo$ment% 8n cases
of e7e#ution- atta#h&ent or +arnish&ent of the compensation of an emplo$ee received from work issued b$ the court to
satisf$ a =udiciall$#determined obligation, a distinction should be made whether such compensation is
considered “wage” or “salary.” 9nder (rticle +*E of the .ivil .ode, if considered a “wage,” the emplo$ee<s
compensation shall not be sub=ect to e>ecution or attachment or garnishment, e2cept for debts incurred for food, shelter,
clothing and medical attendance% 8f deemed a “salary,” such compensation is not e7e&%t from e>ecution or attachment or
garnishment% 2hus, the salar$, commission and other remuneration received b$ a managerial emplo$ee 5as distinguished
from an ordinar$ worker or laborer6 cannot be considered wages% &alar$ is understood to relate to a position or office, or the
compensation given for official or other service? while wage is the compensation for labor%
<. :ini&u& )a+e- (efine(. B 8t refers simpl$ to the lowest basic wage rate fi>ed b$ law that an emplo$er can pa$ his workers%
=. :ini&u& )a+e settin+. ? 1ith the advent of ,epublic (ct -o% @+2+, wage fi>ing and determination are no longer done
through .ongress but through the various ,egional 2ripartite 1ages and Productivit$ Foards 5,21PFs6 constituted in
ever$ region of the countr$, including autonomous regions as ma$ be created b$ law%
6. :ini&u& )a+e of )or2ers %ai( 1y results. ? (ll workers paid b$ results, including those who are paid on
piecework, takay,pakyaw or task basis, shall receive not less than the prescribed wage rates per eight 5E6 hours of work a
da$, or a proportion thereof for working less than eight 5E6 hours%
F. :ini&u& )a+e of a%%renti#es an( learners. B 8t shall in no case be less than sevent$#five percent 5+;G6 of the applicable
statutor$ minimum wage rates%
J. :ini&u& )a+e of %ersons )ith (isa1ility 4P;!s5. B 8t shall NOT be +;G but the full amount of the applicable minimum
wage rates%
A. Co&&issions. ? .ommission is the recompense, compensation or reward of an emplo$ee, agent, salesman, e>ecutor, trustee,
receiver, factor, broker or bailee, when the same is calculated as a percentage on the amount of his transactions or on the
profit of the principal% Co&&ission earne( &ay or &ay not 1e #onsi(ere( %art of a )a+e or salary depending on the
peculiar circumstances of a case and on the purpose for which the determination is being made% 2here is no law which
re'uires emplo$ers to pa$ commissions%[)"Once commission is granted, Hthere is no law which prescribes a !ethod for
computing commissions% 2he determination of the amount of commissions is the result of collective bargaining negotiations,
individual emplo$ment contracts or established emplo$er practice%H[4"
0. !e(u#tions fro& )a+es. B Per&issi1le (e(u#tions &ay 1e (i*i(e( into t)o:
a. !e(u#tions allo)e( un(er Arti#le ..=.
56 8n cases where the worker is insured with his consent b$ the emplo$er, and the deduction is to recompense the
emplo$er for the amount paid b$ him as premium on the insurance?
526For union dues, in cases where the right of the worker or his union to check#off has been recogni:ed b$ the emplo$er or
authori:ed in writing b$ the individual worker concerned? and
5)6 8n cases where the emplo$er is authori:ed b$ law or regulations issued b$ the 0O7/ &ecretar$%
1. !e(u#tions allo)e( un(er other %ro*isions of the La1or Co(e an( other la)s.
%0eductions for loss or damage under (rticle 4 of the 7abor .ode?
2% 0eductions made for agenc$ fee from non#union members who accept the benefits under the .F( negotiated b$ the
recogni:ed or certified bargaining union% 2his form of deduction does not re'uire the written authori:ation of the non#
union member concerned?
)% 9nion service fee?
4% 1hen the deductions are with the written authori:ation of the emplo$ee for pa$ment to a third person and the emplo$er
agrees to do so, provided that the latter does not receive an$ pecuniar$ benefit, directl$ or indirectl$, from the
transaction?
;%0eductions for value of meal and other facilities?
@% 0eductions for premiums for &&&, PhilIealth, emplo$ees< compensation and Pag#8F8A?
+%1ithholding ta> mandated under the -ational 8nternal ,evenue .ode 5-8,.6?
E%1ithholding of wages because of the emplo$ee<s debt to the emplo$er which is alread$ due?
!% 0eductions made pursuant to a court =udgment against the worker under circumstances where the wages ma$ be the
sub=ect of attachment or e>ecution but onl$ for debts incurred for food, clothing, shelter and medical attendance?
*% 1hen deductions from wages are ordered b$ the court?
%&alar$ deductions of a member of a legall$ established cooperative%
$. Non?(i&inution of 1enefits. B (ccording to Justi#e Arturo !. Brion- #urrently the Chair&an of the </.= Bar
7a&ination Co&&ittee- (rticle ** is not the proper basis for the invocation of the non#diminution3non#elimination of
benefits principle in his separate concurring opinion in the case of rco Metal Prod"cts, 3nc. v.
4a!ahangng!gaManggagawasa rco Metal-#5-6 '4MRM-#5-6., [A%,% -o% +*+)4, Ma$ 4, 2**E"% Ie
emphasi:ed therein that (rticle ** refers solel$ to the non#diminution of benefits en=o$ed at the ti!e of the pro!"lgation
of the -abor Code% Ie thus posited that the correct bases of this principle are the following:
a% />press terms of an emplo$ment agreement?
b%.ompan$ practice which refers to the i!plied terms of an emplo$ment agreement which the emplo$er has freel$,
voluntaril$ and consistentl$ e>tended to its emplo$ees and thus cannot be withdrawn e>cept b$ mutual consent or
agreement of the contracting parties?
c% 2he .onstitution 5&ection E of (rticle 88 and &ection ) of (rticle J8886? and
d% (rticle 4 of the 7abor .ode%
./. "a#ilities *s. Su%%le&ents. B 2he term “facilities” includes articles or services for the benefit of the emplo$ee or his
famil$ but does not include tools of the trade or articles or services primaril$ for the benefit of the emplo$er or necessar$ to
the conduct of the emplo$er<s business% 2he$ are items of e>pense necessar$ for the laborer<s and his famil$<s e>istence
and subsistence which form part of the wage and when furnished b$ the emplo$er, are deductible therefrom, since if the$
are not so furnished, the laborer would spend and pa$ for them =ust the same%
2he term “s"pple!ents” means e>tra remuneration or special privileges or benefits given to or received b$ the laborers
over and above their ordinar$ earnings or wages%
"a#ilities an( su%%le&ents- (istin+uishe(. ? 2he benefit or privilege given to the emplo$ee which constitutes an e>tra
remuneration over and above his basic or ordinar$ earning or wage, is s"pple!ent? and when said benefit or privilege is
part of the laborer<s basic wage, it is a facility%(s earlier pointed out, the criterion is not so much with the kind of the
benefit or item 5food, lodging, bonus or sick leave6 given but its purpose%2hus, free meals supplied b$ the ship operator to
crew members, out of necessit$, cannot be considered as facilities but supplements which could not be reduced having been
given not as part of wages but as a necessar$ matter in the maintenance of the health and efficienc$ of the crew personnel
during the vo$age% Moreover, facilities are deductible from wage but not supplements%
...;a+e (istortion. ? (s defined b$ law and implementing rules, “wage distortion” contemplates a situation where an
increase in prescribed wage rates results in either of the following:
% 7li!ination of the 'uantitative differences in the rates of wages or salaries? or
2%4evere contraction of intentional 'uantitative differences in wage or salar$ rates between and among emplo$ee groups in
an establishment as to effectivel$ obliterate the distinctions embodied in such wage structure based on the following
criteria:
a%skills?
b%lengthofservice?or
c%other logical bases of differentiation%
6 ele&ents of )a+e (istortion. ? 2he four 546 elements of wage distortion are as follows:
56 (n e>isting hierarch$ of positions with corresponding salar$ rates?
526( significant change in the salar$ rate of a lower pa$ class without a concomitant increase in the salar$ rate of a
higher one?
5)62he elimination of the distinction between the two levels? and
5462he e>istence of the distortion in the same region of the countr$%
"or&ula to re#tify )a+e (istortion.8n the case of Metropolitan 8ank and 9r"st Co!pany 7!ployees 6nion--6-96CP
v. #-RC,[A%,% -o% *2@)@, &eptember *, !!)", the &upreme .ourt has given its i!pri!at"r to the following formula for
the correction of wage distortion in the pa$ scale structures:
Minimum Wage=% !rescribed "ncrease = #istortion $d%ustment
$ctual &alary
2he above formula was held to be =ust and e'uitable%
.<. Re#tifi#ation of )a+e (istortion. B 1age distortion ma$ be rectified as follows
% In or+ani@e( esta1lish&ents. # 2he emplo$er and the union should negotiate to correct the distortions%(n$ dispute
arising from wage distortions should be resolved through the +rie*an#e %ro#e(ure under their .F( and, if it remains
unresolved, through*oluntary ar1itration%
2% In unor+ani@e( esta1lish&ents. # 2he emplo$ers and workers should endeavor to correct such distortions%(n$ dispute
arising therefrom should be settled through the -.MF and, if it remains unresolved after ten 5*6 da$s of conciliation,
should be referred to an$ of the 7abor (rbiters of the appropriate branch of the -7,.%
.=. !i*isor to !eter&ine !aily Rate. BAiven a fi>ed monthl$ rate, the dail$ rate is determined through the following formula:
:onthly Rate7.<
No. of !ays Consi(ere(M,ui*alent !aily Rate 4!R5
Pai( in a 9ear
Choi#e of fa#torsH(i*isors is a %rero+ati*e of the e&%loyer. ? 2here is no law which re'uires emplo$ers to use specific
factors in the computation of emplo$ees< benefits and wage deductions due to absences% 2he choice of factors3divisors is a
prerogative of the emplo$er, the e>ercise of which should not be contrar$ to law, public polic$ or order%1hat wage
legislations specificall$ re'uire is that the emplo$ees be paid on all their actual working da$s and on the twelve 526 regular
holida$s even if unworked%2he principles of “no work, no pay” and “e:"al pay for e:"al work” are also generall$
accepted%8t likewise follows that an emplo$er ma$ deduct a proportionate amount from the emplo$ees< wages on account
of their unworked hours3da$s%
C. RST PRIO!S.
.. ;ee2ly rest (ay. ? /ver$ emplo$er is re'uired to give his emplo$ees a rest period of not less than twent$#four 5246
consecutive hours after ever$ si> 5@6 consecutive normal work da$s% 1here the weekl$ rest is given to all emplo$ees
simultaneousl$, the emplo$er should make known such rest period b$ means of a written notice posted conspicuousl$ in the
workplace at least one 56 week before it becomes effective% 1here the rest period is not granted to all emplo$ees
simultaneousl$ and collectivel$, the emplo$er shall make known to the emplo$ees their respective schedules of weekl$ rest
da$ through written notices posted conspicuousl$ in the workplace at least one 56 week before the$ become effective%
&%loyeeNs %referen#e of rest (ay 1ase( on reli+ious +roun(s. # 2he emplo$er is dut$#bound to respect the preference of
the emplo$ee if based on religious grounds%
<. &er+en#y rest (ay )or2. B 2he general rule is that no emplo$ee shall be re'uired against his will to work on his scheduled
rest da$ e2cept under the circumstances provided under (rticle !2 of the 7abor .ode where work on such da$ ma$ be
compelled% (n emplo$er ma$, however, re'uire an$ of his emplo$ees to work on his scheduled rest da$ for the duration of
the following emergenc$ and e>ceptional conditions:
a%8ncaseof a#tual or i&%en(in+ e&er+en#ies caused b$ serious a##i(ent- fire- floo(- ty%hoon- earth,ua2e- e%i(e&i# or
other (isaster or #ala&ity, to prevent loss of life and propert$, or in case of force !a/e"re or imminent danger to public
safet$?
b%8n case of ur+ent )or2 to be performed on &a#hineries- e,ui%&ent- or installations- to a*oi( serious loss )hich the
emplo$er would otherwise suffer?
c%8n the event of a1nor&al %ressure of )or2 (ue to s%e#ial #ir#u&stan#es- where the emplo$er cannot ordinaril$ be
e>pected to resort to other measures?
d%2o prevent serious loss of %erisha1le +oo(s?
e%1here the nature of the )or2 is such that the emplo$ees have to )or2 #ontinuously for se*en 4A5 (ays in a )ee2 or
more, as in the case of the #re) &e&1ers of a *essel to #o&%lete a *oya+e and in other similar cases? and
f%1hen the work is necessar$ to avail of fa*ora1le )eather or en*iron&ental #on(itions where performance or 'ualit$ of
work is dependent thereon%
!. 3OLI!A9 PA9HPR:IU: PA9.
a. Re+ular holi(ay. ? 3oli(ay %ay refers to the pa$ment of compensation to an emplo$ee during re+ular holi(ays as follows:
% For un)or2e( regular holida$ 4 **G of an emplo$ee<s regular dail$ wage? and
2% For )or2e( regular holida$ 4 2**G thereof%
1. S%e#ial holi(ay. ? 2he rule for s%e#ial holi(ay is as follows:
% For un)or2e( special holida$ 4 C-o 1ork, -o Pa$D applies? and
2% For )or2e( special holida$ 4 Additional compensation of )*G of the dail$ rate on top of the basic pa$ or a total of one
hundred thirt$ percent 5)*G6%
#. Pre&iu& %ay refers to the additional compensation re'uired b$ law to be paid for work performed within the regular eight
5E6 hours on non#working da$s, such as rest da$s, regular and special holida$s%
(. Co*era+eC e7#e%tions. ? Aenerall$, all emplo$ees are entitled to covered b$ (rticle !4 of the 7abor .ode, as amended, and
its implementing rules, e2cept:
% 2hose of the government and an$ of the political subdivisions, including government#owned and controlled corporations?
2%2hose of retail and service establishments regularl$ emplo$ing less than ten 5*6 workers?
)%0omestic helpers?
4%Persons in the personal service of another?
;%Managerial emplo$ees as defined in Fook 888 of the 7abor .ode?
@%Field personnel and other emplo$ees whose time and performance is unsupervised b$ the emplo$er?
+%2hose who are engaged on task or contract basis or purel$ commission basis?
E% 2hose who are paid a fi>ed amount for performing work irrespective of the time consumed in the performance thereof?
!%Other officers and members of the managerial staff?
*% Members of the famil$ of the emplo$er who are dependent on him for support%
. LAVS.
.. Ser*i#e in#enti*e lea*e. ? /ver$ covered emplo$ee who has rendered at least one 56 $ear of service is entitled to a $earl$
service incentive leave of five 5;6 da$s with pa$% 2he term “at least one year of service” should mean service within twelve
526 months, whether continuous or broken, reckoned from the date the emplo$ee started working, in#lu(in+ authori@e(
a1sen#es an( %ai( re+ular holi(ays, unless the number of working da$s in the establishment as a matter of practice or
polic$, or that provided in the emplo$ment contract, is less than twelve 526 months, in which case, said period should be
considered as one 56 $ear for the purpose of determining entitlement to the service incentive leave benefit%
<. :aternity lea*e. ? 8t is the period of time which ma$ be availed of b$ a woman emplo$ee, married or unmarried, to undergo
and recuperate from childbirth, miscarriage or complete abortion during which she is permitted to retain her rights and
benefits flowing from her emplo$ment% ( female member who has paid at least three 5)6 monthl$ contributions in the 2#
month period immediatel$ preceding the semester of her childbirth or miscarriage shall be paid a dail$ maternit$ benefit
e'uivalent to one hundred percent 5**G6 of her average dail$ salar$ credit for:
5a6 J/ (ays for nor&al (eli*ery? or
5b6 A0 (ays in case of #aesarian (eli*ery%
=. Paternity lea*e.DFE B 8t covers a married male emplo$ee allowing him not to report for work for se*en 4A5 #alen(ar da$s but
continues to earn the compensation therefor, on the condition that his spouse has delivered a child or suffered miscarriage for
purposes of enabling him to effectivel$ lend support to his wife in her period of recover$ and3or in the nursing of the newl$#
born child%
6. Parental lea*e.DJE B 8t is the leave benefit of not be more than se*en 4A5 )or2in+ (ays ever$ $ear granted to a male or
female solo %arent to enable him3her to perform parental duties and responsibilities where ph$sical presence is re'uired%
2he term >solo parent> refers to an$ individual who falls under an$ of the following categories:
56 ( woman who gives birth as a result of rape and other crimes against chastit$ even without a final conviction of the
offender:Provided, 2hat the mother keeps and raises the child?
526 Parent left solo or alone with the responsibilit$ of parenthood due to death of spouse?
5)6 Parent left solo or alone with the responsibilit$ of parenthood while the spouse is detained or is serving sentence for a
criminal conviction for at least one 56 $ear?
546 Parent left solo or alone with the responsibilit$ of parenthood due to ph$sical and3or mental incapacit$ of spouse as
certified b$ a public medical practitioner?
5;6 Parent left solo or alone with the responsibilit$ of parenthood due to legal separation or de facto separation from spouse
for at least one 56 $ear, as long as he3she is entrusted with the custod$ of the children?
5@6 Parent left solo or alone with the responsibilit$ of parenthood due to declaration of nullit$ or annulment of marriage as
decreed b$ a court or b$ a church as long as he3she is entrusted with the custod$ of the children?
5+6 Parent left solo or alone with the responsibilit$ of parenthood due to abandonment of spouse for at least one 56 $ear?
5E6 9nmarried mother3father who has preferred to keep and rear her3his child3children instead of having others care for
them or give them up to a welfare institution?
5!6 (n$ other person who solel$ provides parental care and support to a child or children?
5*6 (n$ famil$ member who assumes the responsibilit$ of head of famil$ as a result of the death, abandonment,
disappearance or prolonged absence of the parents or solo parent%
F. Lea*e for *i#ti&s of *iolen#e a+ainst )o&en an( #hil(ren.DAE ? ( victim is entitled to a total of ten 4./5 (ays of paid
leave of absence, in addition to other paid leaves under the 7abor .ode and .ivil &ervice ,ules and ,egulations% 8t is
e>tendible when the necessit$ arises as specified in the protection order% 2his is afforded to the woman emplo$ee to enable
her to attend to the medical and legal concerns relative to said law% 2his leave is not convertible to cash%
J. S%e#ial lea*e 1enefit for )o&en. B 2his is granted under ,%(% -o% !+* [(ugust 4, 2**!"% ( woman emplo$ee having
rendered continuous aggregate emplo$ment service of at least si> 5@6 months for the last twelve 526 months shall be entitled
to a special leave benefit of t)o 4<5 &onths )ith full %ay based on her gross monthl$ compensation following surger$
caused b$ g$necological disorders%
". SRVIC C3ARGS.
2he rules on service charges appl$ onl$ to establishments collecting service charges, such as hotels- restaurants- lo(+in+
houses- ni+ht #lu1s- #o#2tail loun+es- &assa+e #lini#s- 1ars- #asinos an( +a&1lin+ houses- an( si&ilar enter%rises, including those
entities operating primaril$ as private subsidiaries of the government% (ll emplo$ees of covered emplo$ers, regardless of their positions,
designations or emplo$ment status, and irrespective of the method b$ which their wages are paid%
% Per#enta+e of sharin+. * (ll service charges collected b$ covered emplo$ers are re'uired to be distributed at the following
rates:
a% 0FI to be distributed e'uall$ among the covered emplo$ees? and
b%.FI to management to answer for losses and breakages and distribution to emplo$ees receiving more than P2,***%** a
month, at the discretion of the management%
2%"re,uen#y of (istri1ution. # 2he share of the emplo$ees referred to above should be distributed and paid to the them not less
often than once ever$ two 526 weeks or twice a month at intervals not e>ceeding si>teen 5@6 da$s%
G. .=
T3
:ONT3 PA9.
9nder the law, all ran2?an(?file emplo$ees are entitled% :ana+erial emplo$ees are not entitled thereto% Iowever, there is nothing in
the law which prohibits the grant of )
th
month pa$ to managerial emplo$ees%
a. 7#lusionsH7e&%tions fro& #o*era+e. ? 2he following emplo$ers are not covered b$ P%0% -o% E;, as amended:
% 2he government and an$ of its political subdivisions, including government#owned and controlled corporations, e>cept
those corporations operating essentiall$ as private subsidiaries of the government%
2%/mplo$ers alread$ pa$ing their emplo$ees )th#month pa$ or more in a calendar $ear or its e'uivalent at the time of the
issuance of the ,evised Auidelines%
)% /mplo$ers of household helpers and persons in the personal service of another in relation to such workers%
4%/mplo$ers of those who are paid on purel$ commission, boundar$, or task basis, and those who are paid a fi>ed amount
for performing a specific work, irrespective of the time consumed in the performance thereof, e;cept where the workers
are paid on piece#rate basis, in which case, the emplo$er shall be covered b$ the Revised <"idelines insofar as such
workers are concerned% 1orkers paid on piece#rate basis shall refer to those who are paid a standard amount for ever$
piece or unit of work produced that is more or less regularl$ replicated without regard to the time spent in producing the
same%
1. A&ount of .=
th
&onth %ay ? &hould not be less than one#twelfth 5326 of the total basic salary earned b$ an emplo$ee
within a calendar $ear% 8t is based on wage but not part of the wage%s
#.:ini&u& %erio( of ser*i#e. B 2o be entitled to )
th
month pa$, the emplo$ee should have served at least month in the
calendar $ear%
3. SPARATION PA9.
&eparation pa$ under the law and =urisprudence:
1% *eparation pay in lie of reinstatement (in case reinstatement is not possible or feasible)+
2%1hen termination is due to 5a6 installation of labor#saving devices, 5b6 redundanc$, 5c6 retrenchment, or 5d6 closing
or cessation of business operations under (rticle 2E)?
)%1hen termination is due to the disease of an emplo$ee and his continued emplo$ment is pre=udicial to himself or his co#
emplo$ees under (rticle 2E4?
4%1hen resignation pa$ or separation pa$ 5or sometimes called Cfinancial assistanceD6 is re'uired under a unilaterall$
promulgated voluntar$ polic$ or practice of the emplo$er or under an agreement such as a .F(?
;%1hen emplo$ment is deemed terminated after the lapse of si> 5@6 months in cases involving bona-fide suspension of the
operation of business or undertaking under (rticle 2E@?
I. RTIR:NT PA9.
.. li+i1ility. ? ,etirement applies to:
a% (ll emplo$ees in the private sector, regardless of their position, designation or status and irrespective of the method b$
which their wages are paid ?
b% Part#time emplo$ees?
c%/mplo$ees of service and other =ob contractors?
d% 0omestic workers or persons in the personal service of another?
e%9nderground mine workers?
f% /mplo$ees of government#owned and3or controlled corporations organi:ed under the .orporation .ode 5without original
charters6%
<. Retire&ent a+e. ? O%tional retirement age 4 J/C Co&%ulsory retirement age 4 JF
=. A&ount. B &hould be e'uivalent to one?half 4O5 &onth salary for e*ery year of ser*i#e- a fraction of at least si> 5@6
months being considered as one 56 whole $ear% POne?half 4O5 &onth salaryL means <<.F (ays comprised of the
following:
5a6 .F (ays salary of the emplo$ee based on his latest salary rate%PLUS
5b6 2he cash e'uivalent of fi*e 4F5 (ays of ser*i#e in#enti*e lea*e?PLUS
5c6 One?t)elfth 4.H.<5 of the .=
th
&onth %ay due the emplo$ee 4or <.F (ays5?PLUS
5d6 All other 1enefits that the emplo$er and emplo$ee ma$ agree upon that should be included in the computation of the
emplo$ee<s retirement pa$%
6. Retire&ent 1enefits of )or2ers %ai( 1y results. B 2he ; da$s shall be their average dail$ salar$ 5(0&6 for the last 2
months reckoned from the date of their retirement, divided b$ the number of actual working da$s in that particular period%
F. Retire&ent 1enefits of %art?ti&e )or2ers. B /ntitled to C32 month salar$D for ever$ $ear of service, computed at least in
proportion to the salar$ and related benefits due them%
J. Ta7a1ility. B ,etirement benefits are e>empted from attachment, lev$, e>ecution or an$ ta> whatsoever% 2o be e>empted
from withholding ta>, the ta>pa$er should prove the following: 56 a reasonable private benefit plan is maintained b$ the
emplo$er? 526 the retiring official or emplo$ee has been in the service of the same emplo$er for at least ten D./E years? 5)6
the retiring official or emplo$ee is not less than fifty DF/E years of a+e at the time of his retirement? and 546 the benefit has
been a*aile( of only on#e%
J. ;O:N ;OR8RS.
.. A#ts of (is#ri&ination un(er the La1or Co(e. ?
5a6Pa$ment of a lesser compensation, including wage, salar$ or other form of remuneration and fringe benefits, to a female
emplo$ee as against a male emplo$ee, for work of e'ual value? and
5b6 Favoring a male emplo$ee over a female emplo$ee with respect to promotion, training opportunities, stud$ and
scholarship grants solel$ on account of their se>es%
<. P!is#ri&ination a+ainst )o&enL as (efine( un(er the :a+na Carta of ;o&en DR.A. No. $A./ a%%ro*e( on Au+ust
.6- <//$E. B 8t refers to an$ of the following circumstances:
5a6 (n$ gender#based distinction, e>clusion, or restriction which has the effect or purpose of impairing or nullif$ing the
recognition, en=o$ment, or e>ercise b$ women, irrespective of their marital status, on a basis of e'ualit$ of men and
women, of human rights and fundamental freedoms in the political, economic, social, cultural, civil, or an$ other field%
5b6 (n$ act or omission, including b$ law, polic$, administrative measure, or practice, that directl$ or indirectl$ e>cludes or
restricts women in the recognition and promotion of their rights and their access to and en=o$ment of opportunities,
benefits, or privileges%
5c6 ( measure or practice of general application is discrimination against women if it fails to provide for mechanisms to
offset or address se> or gender#based disadvantages or limitations of women, as a result of which women are denied or
restricted in the recognition and protection of their rights and in their access to and en=o$ment of opportunities, benefits,
or privileges? or women, more than men, are shown to have suffered the greater adverse effects of those measures or
practices%
5d6 0iscrimination compounded b$ or intersecting with other grounds, status, or condition, such as ethnicit$, age, povert$, or
religion%
=. Sti%ulation a+ainst &arria+e. B 8t is an unlawful act of the emplo$er to re'uire as a condition for or continuation of
emplo$ment that a woman emplo$ee shall not +et &arrie( or to stipulate e>pressl$ or tacitl$ that u%on +ettin+ &arrie(- a
)o&an e&%loyee shall 1e (ee&e( resi+ne( or se%arate( or to dismiss or discriminate or otherwise pre=udice a woman
emplo$ee merel$ b$ reason of her marriage%
6. Prohi1ite( a#ts. B 8n addition to the stipulation against marriage 5see above6, the following are prohibited:
a%2o discharge an$ woman emplo$ed b$ him for the purpose of preventing such woman from en=o$ing maternit$ leave,
facilities and other benefits provided under the 7abor .ode?
b%2o discharge such woman on account of her pregnanc$, or while on leave or in confinement due to her pregnanc$?
c%2o discharge or refuse the admission of such woman upon returning to her work for fear that she ma$ again be pregnant?
d%2o discharge an$ woman or an$ other emplo$ee for having filed a complaint or having testified or being about to testif$
under the 7abor .ode%
F. Anti?Se7ual 3arass&ent A#t 4R.A. No. A0AA5- ? Penali:es se>ual harassment onl$ in three 5)6 situations, namel$:
56 emplo#ment5work#related6? 526 education 5education#related6? and 5)6 training 5training#related6.
8n a work#related or emplo$ment environment, se>ual harassment is committed when:
a% 2he se>ual favor is made a condition in the hiring or in the emplo$ment, re#emplo$ment or continued emplo$ment of said
individual or in granting said individual favorable compensation, terms, conditions, promotions, or privileges? or the
refusal to grant the se>ual favor results in limiting, segregating or classif$ing the emplo$ee which in an$ wa$ would
discriminate, deprive or diminish emplo$ment opportunities or otherwise adversel$ affect said emplo$ee?
b%2he above acts would impair the emplo$ee<s rights or privileges under e>isting labor laws? or
c%2he above acts would result in an intimidating, hostile, or offensive environment for the emplo$ee%
8.:PLO9:NT O" :INORS 4La1or Co(e an( R.A. No. AJA0- R.A. No. $<=.5.
.. Chil(- &eanin+. ? For legal purposes, the term <child= refers to an$ person less than eighteen 5E6 $ears of age%
<. ;or2in+ #hil(- &eanin+. ? ( <!or9ing child= refers to an$ child engaged as follows:
i% when the child is below eighteen 5E6 $ears of age, in work or economic activit$ that is not “child labor=” and
ii%when the child below fifteen 5;6 $ears of age:
5a6 in work where he3she is directl$ under the responsibilit$ of his3her parents or legal guardian and where onl$ members
of the child<s famil$ are emplo$ed? or
5b6 in <public entertainment or information= which refers to artistic, literar$, and cultural performances for television
show, radio program, cinema or film, theater, commercial advertisement, public relations activities or campaigns,
print materials, internet, and other media%
=. Prohi1ition of e&%loyin+ &inors in #ertain un(erta2in+s an( in #ertain a(*ertise&ents. ? -o child below eighteen 5E6
$ears of age is allowed to be emplo$ed as a model in an$ advertisement directl$ or indirectl$ promoting alcoholic beverages,
into>icating drinks, tobacco and its b$#products, gambling or an$ form of violence or pornograph$%
L. :PLO9:NT O" 3OUS3LPRS 4NO; 8NO;N AS P!O:STIC ;OR8RSL OR 8ASA:BA3A95D0E
.. Pre*ailin+ a%%li#a1le la). ? ,%(% -o% *)@, otherwise known as <4omestic /or9ers Act= or <+atas
@asambaha#= approved on Kanuar$ E, 2*)%
<. P!o&esti# )or2erLor P8asa&1ahayL ? refers to an$ person engaged in (o&esti# )or2 within an emplo$ment
relationship such as, but not limited to, the following: general househelp, nursemaid or “yaya”, cook, gardener, or laundr$
person, but shall e7#lu(e an$ person who performs domestic work onl$ occasionall$ or sporadicall$ and not on an
occupational basis% 2his term shall notinclude children who are under foster famil$ arrangement, and are provided access to
education and given an allowance incidental to education, i.e., “baon”, transportation, school pro=ects and school activities%
=. P3ousehol(L - refers to the immediate members of the famil$ or the occupants of the house that are directl$ provided
services b$ the domestic worker%
6. P&%loyerL ? refers to an$ person who engages and controls the services of a domestic worker and is part$ to the
emplo$ment contract%
F. I&%ortant %rin#i%les un(er R.A. No. ./=J..
• Stan(ar( of treat&ent # =ust and humane manner and in no case shall the former inflict ph$sical violence upon the
kasambaha$%
• "ree 1oar(- lo(+in+ an( &e(i#al atten(an#e%
• Privac$ to all forms of communication and personal effects%
• ,ight to have access to the outside world through such modern modes, e'uipment and devices as the internet,
cellphones, etc%
• ,ight to education and training 5without an$ age limitation of E $ears as provided previousl$6%
• Prohibition on disclosure b$ kasambaha$ of all privileged and confidential communication or information pertaining to
emplo$er%
• 2here should be a )ritten contract of emplo$ment between emplo$er and kasambaha$%
• -o more cap on duration of contract%
• Lasambaha$ cannot ac'uire regularit$ of emplo$ment%
• /mplo$ment of kasambaha$ is fi>ed#term in nature%
• 2he kasambaha$ cannot be re'uired to make deposits from which loss or damage to tools, materials, furniture and
e'uipment ma$ be deducted%
• 2he kasambaha$ cannot be placed under P(e1t 1on(a+eL meaning the rendering of service b$ the domestic worker as
securit$ or pa$ment for a debt where the length and nature of service is not clearl$ defined or when the value of the
service is not reasonabl$ applied in the pa$ment of the debt%
• .hildren whose age is below ; $ears are now absolutel$ prohibited to work as kasambaha$%
• 2he emplo$er is now re'uired to report and register the kasambaha$ working for him3her in the Faranga$ where the
former resides%
• !aily rest %erio( # (ggregate dail$ rest period shall be E hours per da$%
• ;ee2ly rest %erio( # (t least 24 consecutive hours of rest in a week%
• 8t is prohibited to assign the kasambaha$ to non#household work in a commercial, industrial or agricultural enterprise on
the basis of the wage rates for domestic workers%
• :ini&u& )a+e on a &onthly 1asis. 4 &hould not be less than:
4a5P<-F//.// a monthfor those emplo$ed in the -ational .apital ,egion 5-.,6?
415P<-///.// a monthfor those emplo$ed in chartered cities and first class municipalities? and
4#5P.-F//.// a monthfor those emplo$ed in other municipalities%
• (ll kasambaha$ are entitled to:
5a6 .=
th
&onth %ay%
5b6 F?(ay ser*i#e in#enti*e lea*e after $ear of service%
5c6 &&&, PhilIealth and Pag#8F8A coverage who have rendered at least month of service% 5NOT: Premium
pa$ments or contributions shall be shouldered b$ the emplo$er% Iowever, if the domestic worker is receiving a wage of P;,***%** and
above per month, the domestic worker shall pa$ the proportionate share in the premium pa$ments or contributions, as provided b$
law5.
5d6 2he kasambaha$ shall be entitled to all other benefits under e>isting laws%
• Rules on ter&ination of e&%loy&ent:
56 8f emplo$ment contract is fi7e(, it cannot be terminated before its e>piration%
5i6 If ter&inate( 1y 2asa&1ahay )ithout 'ust #ause, he3she forfeits unpaid salar$ due not e>ceeding the
e'uivalent ; da$s work% 2he emplo$er ma$ recover the deploy!ent e;penses provided that the service has been
terminated within @ months from the domestic worker<s emplo$ment%
5ii6If ter&inate( 1y e&%loyer )ithout 'ust #ause, the domestic worker shall be paid the compensation alread$
earned plus the e'uivalent of ; da$s work b$ wa$ of indemnit$%
5iii62he kasambaha$ and the emplo$er ma$ mutuall$ agree upon written notice to pre#terminate the contract of
emplo$ment to end the emplo$ment relationship%
526 8f emplo$ment contract is not fi7e(, the emplo$er or the kasambaha$ ma$ give notice to end the working
relationship F (ays before the intended termination of the service%
5)6 Groun(s to ter&inate e&%loy&ent #ontra#t 1y the 2asa&1ahay. ? 2he domestic worker ma$ terminate the
emplo$ment relationshipat any ti&e 1efore the e7%iration of the #ontra#t for an$ of the following causes:
5a6Merbal or emotional abuse of the domestic worker b$ the emplo$er or an$ member of the household?
5b68nhuman treatment including ph$sical abuse of the domestic worker b$ the emplo$er or an$ member of the
household?
5c6.ommission of a crime or offense against the domestic worker b$ the emplo$er or an$ member of the household?
5d6Miolation b$ the emplo$er of the terms and conditions of the emplo$ment contract and other standards set forth
under this law?
5e6(n$ disease pre=udicial to the health of the domestic worker, the emplo$er, or member3s of the household? and
5f6 Other causes analogous to the foregoing%
5NOT: The +roun(s are a #o&1ination of 1oth 'ust an( authori@e( #auses5.
546 Groun(s to ter&inate e&%loy&ent #ontra#t 1y the e&%loyer. ?(n emplo$er ma$ terminate the services of the
domestic worker at an$ time before the e>piration of the contract, for an$ of the following causes:
5a6Misconduct or willful disobedience b$ the domestic worker of the lawful order of the emplo$er in connection with
the former<s work?
5b6Aross or habitual neglect or inefficienc$ b$ the domestic worker in the performance of duties?
5c6 Fraud or willful breach of the trust reposed b$ the emplo$er on the domestic worker?
5d6 .ommission of a crime or offense b$ the domestic worker against the person of the emplo$er or an$ immediate
member of the emplo$er<s famil$?
5e6 Miolation b$ the domestic worker of the terms and conditions of the emplo$ment contract and other standards set
forth under this law?
5f6 (n$ disease pre=udicial to the health of the domestic worker, the emplo$er, or member3s of the household? and
5g6 Other causes analogous to the foregoing%
5NOT: The +roun(s are a #o&1ination of 1oth 'ust an( authori@e( #auses5.
• &%loy&ent Certifi#ation. ? 8t is the dut$ of the emplo$er to issue a certificate of emplo$ment to the domestic worker
within ; da$s from the time it is re'uested%
:. :PLO9:NT O" 3O:;OR8RS.
.. PIn(ustrial ho&e)or2erL is a worker who is engaged in industrial homework%
<. PIn(ustrial ho&e)or2L is a s$stem of production under which work for an emplo$er or contractor is carried out b$ a
homeworker at his3her home%Materials ma$ or ma$ not be furnished b$ the emplo$er or contractor%8t differs from regular
factor$ production principall$ in that, it is a decentrali:ed form of production where there is ordinaril$ ver$ little supervision
or regulation of methods of work%
=. P3o&eL means an$ nook, house, apartment or other premises used regularl$, in whole or in part, as a dwelling place, e>cept
those situated within the premises or compound of an emplo$er, contractor3subcontractor and the work performed therein is
under the active or personal supervision b$ or for the latter%
6. Pay&ent for ho&e)or2. # 8mmediatel$ upon receipt of the finished goods or articles, the emplo$er is re'uired to pa$ the
homeworker or the contractor or subcontractor, as the case ma$ be, for the work performed less the corresponding
homeworker<s share of &&&, PhilIealth and /.. premium contributions which should be remitted b$ the contractor or
subcontractor or emplo$er to the &&& with the emplo$er<s share%Iowever, where pa$ment is made to a contractor or
subcontractor, the homeworker should likewise be paid immediatel$ after the goods or articles have been collected from the
workers%
F. Prohi1itions on #ertain 2in(s of ho&e)or2. # -o homework shall be performed on the following: 56/>plosives, fireworks
and articles of like character? 526 0rugs and poisons? and 5)6 Other articles, the processing of which re'uires e>posure to
to>ic substances%
N. APPRNTICS AN! LARNRS.
!istin#tions. ? 2he following are the distinctions between apprentices and learners:
% Practical training. Foth learnership and apprenticeship involve practical training on#the#=ob%
2%Training agreement. 7earnership is governed b$ a learnership agreement? while apprenticeship is governed b$ an
apprenticeship agreement%
2%Occupation. 7earnership involves learnable occupations consisting of se!i-skilled and other ind"strial occ"pations which
are non#apprenticeable? while apprenticeship concerns apprenticeable occ"pations or an$ trade, form of emplo$ment or
occupation approved for apprenticeship b$ the 0O7/ &ecretar$%
)%Theoretical instructions. 7earnership ma$ or ma$ not be supplemented b$ related theoretical instructions? while
apprenticeship should alwa$s be supplemented b$ related theoretical instructions%
4% ,atio of theoretical instructions and on*the*$ob training. For both learnership and apprenticeship, the normal ratio is one
hundred 5**6 hours of theoretical instructions for ever$ two thousand 52,***6 hours of practical or on#the#=ob training%
2heoretical instruction time for occupations re'uiring less than two thousand 52,***6 hours for proficienc$ should be
computed on the basis of such ratio%
;% Competenc#*based s#stem. 9nlike in apprenticeship, it is re'uired in learnership that it be implemented based on the
2/&0(#approved competenc$#based s$stem%
@%4uration of training. 7earnership involves practical training on the =ob for a period not e7#ee(in+ three 4=5 &onths? while
apprenticeship re'uires for proficienc$, &ore thanthree 4=5 &onths but not o"er si2 7(8 months of practical training on the
=ob%
+% Aualifications% 2he law does not e>pressl$ mention an$ 'ualifications for learners? while the following 'ualifications are
re'uired to be met b$ apprentices under (rticle ;! of the 7abor .ode:
5a6 Fe at least fourteen 546 $ears of age?
5b6Possess vocational aptitude and capacit$ for appropriate tests? and
5c6 Possess the abilit$ to comprehend and follow oral and written instructions%
E% Circumstances $ustif#ing hiring of trainees% 9nlike in apprenticeship, in learnership, the law, (rticle +4 of the 7abor .ode,
e>pressl$ prescribes the pre#re'uisites before learners ma$ be validl$ emplo$ed, to wit:
a%1hen no e>perienced workers are available?
b% 2he emplo$ment of learners is necessar$ to prevent curtailment of emplo$ment opportunities? and
c%2he emplo$ment does not create unfair competition in terms of labor costs or impair or lower working standards%
!%Limitation on the number of trainees% 8n learnership, a participating enterprise is allowed to take in learners onl$ up to a
ma>imum of 2*G of its total regular workforce% -o similar cap is imposed in the case of apprenticeship%
*% Option to emplo#. 8n learnership, the enterprise is obliged to hire the learner after the lapse of the learnership period? while
in apprenticeship, the enterprise is given onl$ an <option= to hire the apprentice as an emplo$ee%
% /age rate% 2he wage rate of a learner or an apprentice is set at +;G of the statutor$ minimum wage%
O. PRSONS ;IT3 !ISABILIT9 DP;!sE 4R.A. No. A<AA- as a&en(e( 1y R.A. No. $66<5.
.. !efinitions of i&%ortant ter&s. ?
a%<Persons !ith 4isabilit#= are those suffering from restriction or different abilities, as a result of a mental, ph$sical or
sensor$ impairment, to perform an activit$ in the manner or within the range considered normal for a human
being% DNOT: It is not #orre#t to refer to the& as <4isabled Persons=E.
b%<Impairment= refers to an$ loss, diminution or aberration of ps$chological, ph$siological, or anatomical structure or
function%
c%<4isabilit#= means 56 a ph$sical or mental impairment that substantiall$ limits one or more ps$chological, ph$siological
or anatomical functions of an individual or activities of such individual? 526 a record of such an impairment? or 5)6 being
regarded as having such an impairment%
d%<-andicap= refers to a disadvantage for a given individual, resulting from an impairment or a disabilit$ that limits or
prevents the function or activit$ that is considered normal given the age and se> of the individual%
e%<,easonable Accommodations= include: 56 improvement of e>isting facilities used b$ emplo$ees in order to render these
readil$ accessible to and usable b$ persons with disabilit$? and 526 modification of work schedules, reassignment to a
vacant position, ac'uisition or modification of e'uipment or devices, appropriate ad=ustments or modifications of
e>aminations, training materials or compan$ policies, rules and regulations, the provision of au>iliar$ aids and services,
and other similar accommodations for persons with disabilit$%
f%<0arginalized 4isabled Persons= or more appropriatel$, <0arginalized Persons !ith 4isabilit#= refer to persons with
disabilit$ who lack access to rehabilitative services and opportunities to be able to participate full$ in socio#economic
activities and who have no means of livelihood and whose incomes fall below the povert$ threshold%
g%<Aualified Indi"idual !ith a 4isabilit#= means an individual with a disabilit$ who, with or without reasonable
accommodations, can perform the essential functions of the emplo$ment position that such individual holds or desires%
Iowever, consideration shall be given to the emplo$er<s =udgment as to what functions of a =ob are essential, and if an
emplo$er has prepared a written description before advertising or interviewing applicants for the =ob, this description
shall be considered evidence of the essential functions of the =ob%
h%<Co"ered Entit#= means an emplo$er, emplo$ment agenc$, labor organi:ation or =oint#labor management committee%
<. Ri+hts of %ersons )ith (isa1ility. B
a. ,ual o%%ortunity for e&%loy&ent.
1. ;a+e rate. * **G of the applicable minimum wage%
#. Sheltere( e&%loy&ent for %ersons )ith (isa1ility. # “Sheltered Emplo#ment= refers to the provision of productive
work for persons with disabilit$ through workshops providing special facilities, income#producing pro=ects or homework
schemes with a view to giving them the opportunit$ to earn a living thus enabling them to ac'uire a working capacit$
re'uired in open industr$%
(. Vo#ational reha1ilitation. # 2he &tate shall take appropriate vocational rehabilitation measures that shall serve to
develop the skills and potentials of persons with disabilit$ and enable them to compete favorabl$ for available productive
and remunerative emplo$ment opportunities in the labor market%
e. Vo#ational +ui(an#e an( #ounsellin+. ? 2he 0&10 shall implement measures providing and evaluating vocational
guidance and counselling to enable persons with disabilit$ to secure, retain and advance in emplo$ment% 8t shall ensure
the availabilit$ and training of counsellors and other suitabl$ 'ualified staff responsible for the vocational guidance and
counselling of persons with disabilit$%
f. Persons )ith (isa1ility are eli+i1le for a%%renti#eshi% an( learnershi%.
=. Prohi1ition on (is#ri&ination a+ainst P;!s.
6. !is#ri&ination on e&%loy&ent %rohi1ite(. ? -o entit$, whether public or private, shall discriminate against a 'ualified
person with disabilit$ b$ reason of disabilit$ in regard to =ob application procedures, the hiring, promotion, or discharge of
emplo$ees, emplo$ee compensation, =ob training, and other terms, conditions and privileges of emplo$ment% 2he following
constitute acts of discrimination:
56 7imiting, segregating or classif$ing a =ob applicant with disabilit$ in such a manner that adversel$ affects his work
opportunities?
526 9sing 'ualification standards, emplo$ment tests or other selection criteria that screen out or tend to screen out a person
with disabilit$ unless such standards, tests or other selection criteria are shown to be =ob#related for the position in
'uestion and are consistent with business necessit$?
546 9tili:ing standards, criteria, or methods of administration that:
5a6 have the effect of discrimination on the basis of disabilit$? or
5b6 perpetuate the discrimination of others who are sub=ect to common administrative control%
5;6 Providing less compensation, such as salar$, wage or other forms of remuneration and fringe benefits, to a 'ualified
emplo$ee with disabilit$, b$ reason of his disabilit$, than the amount to which a non#disabled person performing the
same work is entitled?
5@6 Favoring a non#disabled emplo$ee over a 'ualified emplo$ee with disabilit$ with respect to promotion, training
opportunities, stud$ and scholarship grants, solel$ on account of the latter<s disabilit$?
5+6 ,e#assigning or transferring an emplo$ee with a disabilit$ to a =ob or position he cannot perform b$ reason of his
disabilit$?
5E6 0ismissing or terminating the services of an emplo$ee with disabilit$ b$ reason of his disabilit$ unless the emplo$er can
prove that he impairs the satisfactor$ performance of the work involved to the pre=udice of the business entit$?
provided, however, that the emplo$er first sought to provide reasonable accommodations for persons with disabilit$?
5!6 Failing to select or administer in the most effective manner emplo$ment tests which accuratel$ reflect the skills, aptitude
or other factor of the applicant or emplo$ee with disabilit$ that such tests purports to measure, rather than the impaired
sensor$, manual or speaking skills of such applicant or emplo$ee, if an$? and
5*6 />cluding persons with disabilit$ from membership in labor unions or similar organi:ations%
6. In#enti*es for e&%loyers )ho e&%loy %ersons )ith (isa1ility. ? Private entities that e&%loy persons with disabilit$ who
meet the re'uired skills or 'ualifications, either as a re+ular e&%loyee- a%%renti#e or learner- shall be entitled to
an a((itional (e(u#tion fro& their +ross in#o&e e,ui*alent to t)enty?fi*e %er#ent 4<FI5 of the total a&ount %ai( as
salaries an( )a+es to %ersons )ith (isa1ility? provided, however, that such entities could present proof as certified b$ the
0epartment of 7abor and /mplo$ment that persons with disabilit$ are under their emplo$ and provided further that the
emplo$ee with disabilit$ is accredited with the 0epartment of 7abor and /mplo$ment and the 0epartment of Iealth as to
his disabilit$, skills and 'ualifications.
B1C
Private entities that i&%ro*e or &o(ify their %hysi#al fa#ilities in or(er to %ro*i(e reasona1le a##o&&o(ation for
%ersons )ith (isa1ility shall also be entitled to an a((itional (e(u#tion fro& their net ta7a1le in#o&e e,ui*alent
to fifty %er#ent 4F/I5 of the (ire#t #osts of the i&%ro*e&ents or &o(ifi#ations.
oooooooooOoOooooooooo
[1] Re.b&#! A!$ No. 10151 [An A!$ A&&o:#ng $-e 8m.&o4men$ o% N#g-$ *or=er", )-ereb4 Re.ea&#ng Ar$#!&e" 130 an7 131 o% (.D. No. 442, A" Amen7e7, +$-er:#"e 9no:n a" $-e Labor Co7e o%
$-e (-#&#..#ne"] :-#!- :a" a..rove7 on 5ne 21, 2011, -a" re.ea&e7 Ar$#!&e 130 [ N#g-$:or=(ro-#b#$#on] an7 Ar$#!&e 131 [8,!e.$#on"] o% $-e Labor Co7e an7 a!!or7#ng&4 renmbere7 $-e "ame
ar$#!&e" a" 7e"!r#be7 above.
A77#$#ona&&4, $-e "ame R.A. No. 10151 -a" #n"er$e7 a ne: C-a.$er > o% )#$&e /// o% 6oo= /// o% $-e Labor Co7e en$#$&e7 ?8m.&o4men$ o% N#g-$ *or=er"@ :-#!- a77re""e" $-e #""e
on n#g-$:or= o% a&& em.&o4ee", #n!&7#ng :omen :or=er". C-a.$er > !over" ne:&4 renmbere7 Ar$#!&e" 154 . $o 161 o% $-e Labor Co7e.
2! As inserted by *ection ,$ )%A% -o% 1.1/1$ 0ne 11$ 1.11%
"! *ee Lagatic v% -L)C$ 2%)% -o% 111..,$ 0anary 13$ 1443%
4! As stated in the Letter-Opinion of the 5epartment of Labor and Employment dated 6ebrary 14$ 1447%
[5]R.A. No. 8187 [5ne 11, 1996].
[6]R.A. N+. 8972, o$-er:#"e =no:n a" ?)A8 0+L+ (AR8N)0B *8LCAR8 AC) +C 2000@ [N+>8368R 7, 2000].
[7]R.A. N+. 9262, o$-er:#"e =no:n a" ?AN)/'>/+L8NC8 AGA/N0) *+38N AND )A8/R CA/LDR8N AC) +C 2994@ [3ARCA 8, 2004].
[8] Dn7er $-e '()* &yllabus for +abor +a,, $-e %o&&o:#ng &ega& ba"e" :ere re%erre7 $oE ?Labor Co7e a" amen7e7 b4 R.A. No. 7655, an A!$ /n!rea"#ng $-e 3#n#mm *age o%
Ao"e-e&.er"1 0ee a&"o F Ao"e-o&7 0erv#!e n7er $-e C#v#& Co7e.@ Re%eren!e $o $-e"e &a:" #" #" no &onger .ro.er :#$- $-e a7ven$ o% Re.b&#! A!$ No. 10361, o$-er:#"e =no:n
a" ?Dome"$#! *or=er" A!$@ or ?6a$a" 9a"amba-a4@ a..rove7 on 5anar4 18, 2013, :-#!- re.ea&e7 $-e en$#re C-a.$er ///, )#$&e /// o% 6oo= ///o% $-e Labor Co7e on Ao"e-e&.er" ' !over#ng
Ar$#!&e" 141 $o 152 $-ereo%.
[9]
0e!$#on 8[b], C-a.$er 1, )#$&e //, /b#7.

Pow!" #$% &'()!o#*+#(!.&o,.-'
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
B$% P!o2.Fo+*.1oG0.()() C'()
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART FOUR
TERMINATION OF EMPLOYMENT
A. EMPLOYERBEMPLOYEE RELATIONSHIP.
1. 5B2o*" 1+1%
a% *election and engagement of the employee+
b% Payment of !ages or salaries+
c% E8ercise of the po!er of dismissal+ or
d% E8ercise of the po!er to control the employee’s condct 9 the controlling test% &t addresses the isse of
!hether the employer controls or has !+!7" 1' !./'1 1o &o)1!o* the employee not only as to
the !+0*1 of the !or" to be done bt also as to the ,()+ ()" ,1'o"+ by !hich the same is to be
accomplished%
2. H.)"+ o2 ,-*o$,)1.
(. P!o#(1.o)(!$ ,-*o$,)1. B A probationary employee is one !ho$ for a given period of time$ is on
observation$ evalation and trial by an employer dring !hich the employer determines !hether or not he is
'alified for permanent employment%
• P!o#(1.o)(!$ -!.o". I 6 months is neither the ma8imm nor the minimm period% The employer may
provide for sch period !hich may either be less or more than 6 months%
• P!o#(1.o)(!$ -!.o"6 'ow !&3o)" ()" &o,-01". I &f for e8ample 6 months$ it shold be
rec"oned +from the date of appointment up to the same calendar date of the ,
th
month followin.-
• D.+1.)&1.o) #1w) -!o#(1.o)(!$ ,-*o$,)1 ()" 2.?"B1!, ,-*o$,)1. I &t is in the intention of
the parties that determines the distinction% &f parties intend to ma"e their relationship reglar after the
agreed period$ it is-!o#(1.o)(!$+ if none in the sense that they intend to terminate it at the e8piration of the
agreed period$ it is simply2.?"B1!,%
• 2 /!o0)"+ 1o 1!,.)(1 -!o#(1.o)(!$ ,-*o$,)1. I (1) 6or a :st case or athori;ed case+ and (1)
<hen the probationary employee fails to 'alify as a reglar employee in accordance !ith reasonable
standards made "no!n by the employer to the employee at the start of the employment%
• D0 -!o&++. I 5e process is re'ired in the first grond above+ &t is not re'ired in the second grond%
• So, -!.)&.-*+ o) -!o#(1.o)(!$ ,-*o$,)1.
1% The probationary period may be e8tended bt only pon the mtal agreement by the employer and the
probationary employee%
1% An employee !ho is allo!ed to !or" after a probationary period is considered a reglar employee%
7% Employment is deemed reglar if the employment contract has no stiplation on probationary period%
,% )epetitive rehiring of a probationary employee means he has become a reglar employee%
#. R/0*(! ,-*o$,)1. I
• T'! (3) w($+ o2 #&o,.)/ ( !/0*(! ,-*o$%
1% B$ )(10! o2 wo!3. <hen the employee has been engaged to perform activities !hich are sally
necessary or desirable in the sal bsiness or trade of the employer%
1% B$ -!.o" o2 +!7.&. <hen the employee has rendered at least one (1) year of service$ !hether sch
service is continos or bro"en$ !ith respect to the activity in !hich he is employed and his employment
shall contine !hile sch activity e8ists%
7% B$ -!o#(1.o)(!$ ,-*o$,)1. <hen the employee sccessflly passes the probationary period%%
&. P!oC&1 ,-*o$,)1. I A pro:ect employee is one !ho is hired( (1) for a specific pro:ect or nderta"ing+
and (1) the completion or termination of sch pro:ect has been determined at the time of their engagement%
• P!.)&.-(* ".+1.)&1.o)+ #1w) -!oC&1 ,-*o$,)1 ()" !/0*(! ,-*o$,)1.
1% L)/1' o2 +!7.& #
! .ro/ect employee # coterminos !ith the pro:ect or any phase thereof and may be terminated pon
the end or completion of the pro:ect or phase thereof for !hich they !ere hired%
! 0eular employee # legally entitled to remain in the service of their employer p to retirement%
1% D0 -!o&++ 9
B .ro/ect employee 9 no de process is re'ired if termination is by reason of completion of the pro:ect
or any phase thereof%
B 0eular employee # de process is re'ired%
". S(+o)(* ,-*o$,)1. B A seasonal employee is one !hose !or" or service to be performed is seasonal in
natre and the employment is for the dration of the season%
• R/0*(! +(+o)(* ,-*o$,)1. A seasonal employee may attain reglarity in his employment if(
1%=e performs !or" or services that are seasonal in natre+ and
1%=e mst have been employed for more than one (1) season%
. C(+0(* ,-*o$,)1. I A casal employee is one !ho is engaged to perform a :ob$ !or" or service !hich is
merely.)&.")1(* to the bsiness of the employer$ and sch :ob$ !or" or service is for a definite period made
"no!n to the employee at the time of engagement%
• So, -!.)&.-*+ o) &(+0(* ,-*o$,)1.
1% Casal employee becomes reglar after one year of service by operation of la!%
1% The one (1) year period shold be rec"oned from the hiring date%
7% )epeated rehiring of a casal employee ma"es him a reglar employee%
2. F.?"B1!, ,-*o$,)1. I A fi8ed#term employee is one !hose employment is for a fi8ed or definite period
the termination of !hich is pre#determined at the time of his engagement%
• Two (2) !>0.+.1+ 2o! 7(*.".1$ o2 2.?"B1!, ,-*o$,)1 &o)1!(&1%
1%The fi8ed period of employment !as "no!ingly and volntarily agreed pon by the parties$ !ithot any
force$ dress or improper pressre being broght to bear pon the employee and absent any other
circmstances vitiating his consent+ or
1%&t satisfactorily appears that the employer and employee dealt !ith each other on more or less e'al terms
!ith no moral dominance !hatever being e8ercised by the former on the latter%
• So, -!.)&.-*+ o) 2.?"B1!, ,-*o$,)1.
1% 6i8ed#term employment is valid even if dties are sally necessary or desirable in the employer’s sal
bsiness or trade% &t is the exception to the rle on the reglarity of employment by reason of natre of
!or"%
1% -otice of termination not necessary in fi8ed#term employment%
7% Employee is deemed reglar if contract failed to state the specific fi8ed period of employment%
,% Employees allo!ed to !or" beyond fi8ed term become reglar employees%
/% )endering !or" beyond one (1) year !old reslt to reglar employment%
6% *ccessive rene!als of fi8ed#period contracts !ill reslt to reglar employment%
>% =iring of employees on a niformly fi8ed /#month basis and replacing them pon the e8piration of their
contracts !ith other !or"ers !ith the same employment stats circmvents their right to secrity of
tenre%
3%Employment on a ?day#to#day basis for a temporary period@ !ill reslt to reglar employment%
4% Termination prior to lapse of fi8ed#term contract shold be for a :st or athori;ed case%
• So, -!.)&.-*+ o) 2.?"B1!, ,-*o$,)1 o2 OFW+.
1% A6<s can never ac'ire reglar employment% &t is al!ays on a fi8ed#term basis%
1% Employment contracts of A6<s for indefinite period$ not valid%
7% A6<s do not become reglar employees by reason of natre of !or"%
,% *eries of rehiring of A6<s cannot ripen into reglar employment
/% CBA cannot override the terms and conditions prescribed by the PAEA nder the *tandard Employment
Contract for A6<s%
3. Fo# &o)1!(&1.)/.
(. A+ "2.)" .) A!1.&* 10A 1o A!1.&* 10E o2 1' L(#o! Co" ()" .1+ *(1+1 .,-*,)1.)/ !0*+
B D-(!1,)1 O!"! No. 1DBA JNo7,#! 156 2011K. B 0ob contracting is legitimate if all the follo!ing three
(7) circmstances concr(
(1) The contractor mst be !/.+1!" !ith the 5ALE and carries a ".+1.)&1 ()" .)"-)")1
#0+.)++ and nderta"es to perform the :ob$ !or" or service o) .1+ ow) !+-o)+.#.*.1$$ according to .1+
ow) ,())! ()" ,1'o"$ and 2!2!o, &o)1!o* ()" ".!&1.o) o2 1' -!.)&.-(* in (**
,(11!+ connected !ith the performance of the !or" except as to the !+0*1+ thereof+
(1) The contractor has +0#+1()1.(* &(-.1(* ()":o! .)7+1,)1+ and
(7) The S!7.& A/!,)1 ensres compliance !ith (** the !./'1+ ()" #)2.1+ nder Labor La!s%
• So, -!.)&.-*+ o) Co# &o)1!(&1.)/ -! D-(!1,)1 O!"! No. 1DBA.
1% Absence of any of the foregoing re'isites ma"es it a labor#only contracting arrangement%
1% Lac" of control by the :ob contractor over the ,())! and ,1'o" of the performance of the !or" of its
employees spplied to the principal !old amont to labor#only contracting%
7% LS0#+1()1.(* &(-.1(*L means(
• 6or &o!-o!(1.o)+6 -(!1)!+'.-+ and &oo-!(1.7+ B P3 M.**.o) of -(."B0- &(-.1(* +1o&3+:+'(!+.
• 6or +.)/* -!o-!.1o!+'.- # P3 M.**.o) of )1 wo!1'%
,%<S0#+1()1.(* &(-.1(*= and <.)7+1,)1 .) 1oo*+6 >0.-,)16 .,-*,)1+6 ,(&'.)!.+ ()" wo!3
-!,.++=shold be treated as t!o (1) distinct and separate factors% The e8istence of one is sfficient to
establish legitimate :ob contracting% 6ailre to prove sbstantial capital or investment in tools$ e'ipment$
etc%$ !old reslt in labor#only contracting arrangement%
/%)enting ot the plant$ tools and e'ipment to the contractor does not prove sbstantial capitali;ation%
6% The fact that the contractor has only the principal as its single client indicates labor#only contracting%
>%5irect relationship of the :ob$ !or" or service contracted !ith the main bsiness of the principal indicates
labor#only contracting%
3% Ciolation of the follo!ing rights of contractors’ employees !old ma"e the principal the direct employer(
(a)*afe and healthfl !or"ing conditions+
(b) Labor standards sch as bt not limited to service incentive leave$ rest days$ overtime pay$ holiday
pay$ 17
th
month pay$ and separation pay as may be provided in the *ervice Agreement or nder the
Labor Code+
(c) )etirement benefits nder the *** or retirement plans of the contractor$ if there is any+
(d) *ocial secrity and !elfare benefits+
(e) *elf#organi;ation$ collective bargaining and peacefl concerted activities+ and
(f) *ecrity of tenre%
4% )egistration of :ob contractors !ith the 5ALE is no! mandatory% F(.*0! 1o !/.+1! +'(** /.7 !.+ 1o
1' -!+0,-1.o) 1'(1 1' &o)1!(&1o! .+ )/(/" .) *(#o!Bo)*$ &o)1!(&1.)/%
#. D-(!1,)1 C.!&0*(! No. 01B12 JM(!&' 136 2012K. I This issance(
1% E8cepted :ob contractors in the constrction indstry from the registration re'irement nder D. O. No. 18-A,
Series of !11%
1% Clarified that D. O. No. 18-A, Series of !11 BPAs are not covered by the same Depart"ent Order No. 18-
Adoes not contemplate information technology#enabled services involving an entire bsiness processes (for
e8ample$#0+.)++ -!o&++ o01+o0!&.)/6 3)ow*"/ -!o&++ o01+o0!&.)/6 */(* -!o&++
o01+o0!&.)/6 '(!"w(! ()":o! +o21w(! +0--o!16 ,".&(* 1!()+&!.-1.o)6 ().,(1.o) +!7.&+6 #(&3
o22.& o-!(1.o)+:+0--o!1)% These companies engaged in bsiness processes (DBPAsD) may hire
employees in accordance !ith applicable la!s$ and maintain these employees based on bsiness
re'irements$ !hich may or may not be for different clients of the BPAs at different periods of the
employeesE employment%Ths$ vendor#vendee relationship for entire bsiness processes covered by the
applicable provisions of the Civil Code on Contracts is e8clded%
&. E22&1+ o2 L(#o!BO)*$ Co)1!(&1.)/. I The follo!ing are the effects(
1% The labor#only contractor !ill be treated as the agent or intermediary of the principal%
1% The principal !ill become the direct employer of the !or"ers spplied by the labor#only contractor%
7% The principal and the labor#only contractor !ill be +o*."(!.*$ treated as the employer%
". T!.*(1!(* !*(1.o)+'.- .) Co# &o)1!(&1.)/. BThere are three (7) parties involved in these arrangements(
(1) The principal !hoF!hich farms ot a !or"$ :ob or service to a :ob contractor+
(1) The /ob contractor !hoF!hich has the capacity to independently nderta"e the performance of the !or"$
:ob$ tas"$ pro:ect or service+ and
(7) The contractual wor)ers spplied by the :ob contractor to the principal to accomplish the !or"$ :ob$ or
service contemplated in the *ervice Agreement%
B. DISMISSAL FROM EMPLOYMENT.
1. F0+1 C(0++. I The follo!ing are the :st cases nder the la!(
(a) *erios miscondct or !illfl disobedience by the employee of the la!fl orders of his employer or
representative in connection !ith his !or"+
(b) 2ross and habital neglect by the employee of his dties+
(c)6rad or !illfl breach by the employee of the trst reposed in him by his employer or dly athori;ed
representative+
(d) Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his dly athori;ed representatives+ and
(e)Ather cases ()(*o/o0+ to the foregoing sch as(
1% Gno!ingly participating by the nion officers in an illegal stri"e+
1% Gno!ingly participating in the commission of illegal acts by any employee$ nion officer or ordinary
member dring a stri"e (irrespective of !hether the stri"e is legal or illegal)%
7% Ciolation by stri"ers of orders$ prohibitions andFor in:nctions issed by the 5ALE *ecretary%
,% Ciolation of the nion secrity clase stiplated in the CBA%
/% Ciolation of company rles and reglations%
6% Theft of property of co#employee%["
>% &nefficiency or failre to attain !or" 'ota%[2"
3% 6ailre to comply !ith !eight standards of employer%[)"
2. A01'o!.;" &(0++. I The follo!ing are the athori;ed cases nder the la!(
(a) &nstallation of labor#saving device+
(b) )edndancy+
(c) )etrenchment+
(d)Closre or cessation of bsiness operations+
(e)5isease%
3. D0 -!o&++. I 5e process in termination of employment refers to stattory$[4" and not constittional$[;" de
process%
(()Tw.)B)o1.& !>0.!,)1. I )efers to the re'irement that an employee !ho is dismissed for C0+1
&(0+ mst be given at least t!o (1) notices described in #in$ of #in$s %ransport, &nc. '. (a"ac$ H2%)% -o%
1661.3$ 0ne 14$ 1..>I$ ths(
(1) F.!+1 written notice. # The first !ritten notice to be served on the employees shold contain the specific
cases or gronds for termination against them$ and a directive that the employees are given the
opportnity to sbmit their !ritten e8planation !ithin the reasonable period of (1 *(+1 2.7 (4) &(*)"(!
"($+ from receipt of the notice to give the employees an opportnity to stdy the accsation against
them$ conslt a nion official or la!yer$ gather data and evidence$ and decide on the defenses they !ill
raise against the complaint% Joreover$ in order to enable the employees to intelligently prepare their
e8planation and defenses$ 1' )o1.& +'o0*" &o)1(.) ( "1(.*" )(!!(1.o) o2 1' 2(&1+ ()"
&.!&0,+1()&+ 1'(1 w.** +!7 (+ #(+.+ 2o! 1' &'(!/ (/(.)+1 1' ,-*o$+% A /)!(*
"+&!.-1.o) o2 1' &'(!/ w.** )o1 +022.&. Lastly$ the notice shold +-&.2.&(**$ ,)1.o) w'.&'
&o,-()$ !0*+$ if any$ are violated andFor w'.&' (,o)/ 1' /!o0)"+ 0)"! A!1.&* 2D2 is being
charged against the employees%
(1) H(!.)/ re1uired. # After serving the first notice$ the employers shold schedle and condct
a '(!.)/ or &o)2!)&!herein the employees !ill be given the opportnity to( (1) ?-*(.) ()" &*(!.2$
1'.! "2)++ 1o 1' &'(!/:+ (/(.)+1 1',@ (2) -!+)1 7.")& .) +0--o!1 o2 1'.! "2)++@
()" (3) !#01 1' 7.")& -!+)1" (/(.)+1 1', #$ 1' ,()(/,)1. 5ring the hearing or
conference$ the employees are given the chance to defend themselves personally$ !ith the assistance of
a representative or consel of their choice% Joreover$ this conference or hearing cold be sed by the
parties as an opportnity to come to an amicable settlement%
(7) S&o)" written notice. # After determining that termination of employment is :stified$ the employers
shall serve the employees a w!.11) )o1.& o2 1!,.)(1.o) indicating that( (1) (** &.!&0,+1()&+
.)7o*7.)/ 1' &'(!/:+ (/(.)+1 1' ,-*o$+ '(7 #) &o)+."!"@ ()" (2) /!o0)"+ '(7 #)
+1(#*.+'" 1o C0+1.2$ 1' +7!()& o2 1'.! ,-*o$,)1.
(#) H(!.)/@ ,().)/ o2 o--o!10).1$ 1o # '(!". I H*ee -o% 1 above in re #in$ of #in$s %ransport '. (a"acI%-e! giding
principles on the hearing aspect of procedral de process have been ennciated in the en banc decision in
the 1..4 case of .ere2 v. .hilippine 'eleraph and 'elephone Company$ JG.R. No. 14205D6 A-!.* 86 200E6
4D5 SCRA 110K$ ths(
(1) <A,-* o--o!10).1$ 1o # '(!"= means any meaningfl opportnity (verbal or !ritten) given to the
employee to ans!er the charges against him and sbmit evidence in spport of his defense$ !hether in a
hearing$ conference or some other fair$ :st and reasonable !ay%
(1)A 2o!,(* '(!.)/ o! &o)2!)& becomes ,()"(1o!$ only nder any of the follo!ing circmstances(
(a) <hen re'ested by the employee in )ritin$+ or
(b) <hen sbstantial evidentiary disptes e8ist+ or
(c) <hen a company rle or practice re'ires it+ or
(d) <hen similar circmstances :stify it%
(7)The <(,-* o--o!10).1$ 1o # '(!"= standard in the Labor *ode -!7(.*+ over the <'(!.)/ o!
&o)2!)&=re'irement in its i"ple"entin$ rules and re$ulations%
C. RELIEFS FOR ILLEGAL DISMISSAL.
1. R.)+1(1,)1. B &t means restoration to a state or condition from !hich one had been removed or
separated% The person reinstated assmes the position he had occpied prior to his dismissal or$ if no longer
available$ to a sbstantially e'ivalent position%
(. P)".)/ (--(* (A!1.&* 2236 L(#o! Co"). I This relief applies o)*$ to orders of reinstatement issed
by L(#o! A!#.1!+ ()" 1o )o o1'!% The employee need not file a motion for the issance of the !rit of
e8ection since the Labor Arbiter shall thereafter "otuproprio isse the !rit% Ths$ if ordered by the -L)C$
CA or *C$ the same is not immediately e8ectory since it is not covered by the rle nder Article 117+ hence$
there shold be a !rit of e8ection to effect reinstatement%
[N!"#$ %ee more discussion on this to&ic in 'AR" 8 entitled “PROCEDURE AND
JURISDICTION” of (a)or Ar)iters.
#. S-(!(1.o) -($ .) *.0 o2 !.)+1(1,)1. I The follo!ing circmstances :stify the a!ard of separation in
lie of reinstatement(
1%<here the contined relationship bet!een the employer and the employee is no longer viable de to
the strained relationsand antagonism bet!een them%
1%<hen reinstatement proves impossible$ impracticable$ and hardly in the best interest of the parties%
7%<hen there has been long passage of time from the date of the incident to the final resoltion of the case
or de to certain realities of the sitation%
,%<here the dismissed employee’s position is no longer available at the time of reinstatement for reasons not
attribtable to the falt of the employer%
/% <here the employee decides not to be reinstated as !hen he does not pray for reinstatement in his
complaint or position paper%
6% <here the employee e8pressly prayed for the a!ard of separation pay instead of reinstatement thereby
effectively foreclosing reinstatement as a relief%
>%&n case the establishment !here the employee is to be reinstated has closed or ceased operations%
3% <here the company has been declared insolvent%
4%<hen$ by reason of compassionate :stice or long years of service or lac" of bad records in the past$ an
employee is granted by the cort separation pay in accordance !ith his entitlement nder the la!$ or
nder the CBA or company rles or practice$ !hichever is higher$ althogh there !as a finding of legality
of dismissal%
1.%<hen reinstatement is rendered moot and academic de to spervening events sch as fire%
11%<hen there is ta"eover of the bsiness of the employer by another company and there is no agreement
regarding assmption of liability by the ac'iring company%
11%<hen the illegally dismissed employees are over#age and their reinstatement !old n:stly pre:dice
their employer%
17%<hen the general sales agency contract bet!een the employer and its client has been terminated and
reinstatement is no longer feasible%
• So, -!.)&.-*+ o) +-(!(1.o) -($ .) *.0 o2 !.)+1(1,)1.
a% The amont of separation pay shold be e'ivalent to at least one (1) month salary or to one (1) month
salary for every year of service$ !hichever is higher$ a fraction of at least si8 (6) months being
considered as one (1) !hole year%R/0*(! allo!ances shold be inclded%
b% *eparation pay as a sbstitte remedy is only proper for reinstatement bt not for bac"!ages nor for
both reinstatement and bac"!ages% *eparation pay in lie of reinstatement and bac"!ages$ not
inconsistent !ith each other%
c% The la! intended reinstatement to be the general rle% &t is only !hen reinstatement is no longer feasible
that payment of separation pay is a!arded to an illegally dismissed employee%
2. B(&3w(/+. B An employee !ho is illegally dismissed is entitled not only to reinstatement$ !ithot loss of
seniority rights and other privileges$ bt also to the payment of his 20** #(&3w(/+6 .)&*0+.7 o2 (**ow()&+
()" o1'! #)2.1+ o! 1'.! ,o)1(!$ >0.7(*)16 compted from the time of his illegal dismissal !hen his
compensation !as !ithheld from him p to the time of his (&10(* !.)+1(1,)1$ or if reinstatement is not
possible$ p to the 2.)(*.1$ of the decision%

Bac"!ages represent compensation that shold have been earned
by the employee bt !ere lost becase of the n:st or illegal dismissal%
(. Co,-01(1.o). I The bac"!ages shall be compted on the basis of the w(/ !(1 *7* (1 1' 1., o2 1'
.**/(* ".+,.++(* and )o1 in accordance !ith the latest$ crrent !age level of the employee’s
position% R/0*(! allo!ances and other benefits shold be made part of the comptation of bac"!ages%
• So, -!.)&.-*+ o) #(&3w(/+.
1%*alary increases dring period of nemployment$ not inclded as component in the comptation of
bac"!ages%
1%5ismissed employee’s ability to earn$ irrelevant in the a!ard of bac"!ages%
7%&f separation pay is ordered in lie of reinstatement$ fll bac"!ages shold be compted from the time of
illegal dismissal ntil the finality of the decision%
,%The rle is different if employment is for a definite period% The illegally dismissed fi8ed#term employee is
entitled only to the payment of his salaries corresponding to the une+pired portion of his fi8ed#term
employment contract%
/%&f the illegally dismissed employee has reached 6. or 6/ years of age$ his bac"!ages shold only cover
the time !hen he !as illegally dismissed p to the time !hen he reached 6. or 6/ years old$ as the
case may be%
#. L.,.1" #(&3w(/+. I &nstead of giving 6KLL bac"!ages as mandated nder Article 1>4 of the Labor Code$
the *preme Cort grants limited bac"!ages de to the follo!ing :stifications(
(i) The dismissal !as made in good faith+ or
(ii) The penalty of dismissal is too harsh a penalty%
E?(,-*+%&n the 1441 case of Dolores '. NL,*$ [@" the employee !as terminated for her continos absence !ithot
permission% Althogh it !as fond that the employee !as indeed gilty of breach of trst and violation of company rles$
the *preme Cort still prononced that the employee’s dismissal !as illegal on the basis of its finding that it !as too
severe a penalty considering that besides that fact that she had served the company for 11 years$ it !as her first offense$
and her leave to stdy the 6rench langage !old ltimately benefit the employer !ho no longer had to spend for
translation services% Even so$ other than ordering the employee’s reinstatement$ the said employee !as a!arded
bac"!ages limited to a period of t!o (1) years$ given that the employer acted !ithot malice or bad faith in terminating the
employee’s services%
The fll bac"!ages originally a!arded in the 1..3 case of -ictory Liner, &nc. '. ,ace,B7C !as redced and limited to only
five (/) years becase of the good faith of the employer% <hile petitioner’s argment that respondent had already
abandoned his :ob in 144, !as not pheld$ the Cort conceded that petitioner$ given the particlar circmstances of this
case$ had sfficient basis to reasonably and in good faith deem respondent resigned by 1443%
D. PREVENTIVE SUSPENSION.
Preventive sspension$[E"!hich is )o1 ( -)(*1$$ may be imposed only in cases !here an employee is ndergoing
an investigation for committing a +!.o0+ offense and his contined presence in the company premises dring the
investigation poses a serios and imminent threat to the life or property of the employer or of his co#!or"ers% <ithot this
threat$ preventive sspension is not proper% Ths$ an employee’s absences and tardiness or failre to !ear proper niform
or to attend a meeting called by his spervisor are not valid gronds to impose preventive sspension%
• So, -!.)&.-*+ o) -!7)1.7 +0+-)+.o).
1% (a+i"u" .eriod of pre'enti'e suspension # 30 "($+% After the lapse thereof$ the employer is re'ired to
reinstate the !or"er to his former position or to a sbstantially e'ivalent position% 5ring the 7.#day period$
the !or"er is not entitled to his !ages and other benefits%
1% /+tension of period "ust be justified. &t may only be e8tended if the employer failed to complete the
investigation !ithin the 7.#day period de to :stifiable gronds% Ance e8tended$ employee mst be paid his
!ages and benefits dring the e8tension% &n sch a case$ the !or"er is not bond to reimbrse the amont
paid to him dring the e8tension if the employer decides to dismiss him after the completion of the
investigation%
7% &ndefinite preventive sspension amonts to constrctive dismissal%
,% Preventive sspension does not mean that de process may be disregarded%
/% Preventive sspension$ by itself$ does not signify that the company has already ad:dged the employee gilty
of the charges for !hich she !as as"ed to ans!er and e8plain%
E. CONSTRUCTIVE DISMISSAL.
Constrctive dismissal contemplates any of the follo!ing(
1% An .)7o*0)1(!$ !+./)(1.o) resorted to !hen contined employment is rendered impossible$ nreasonable or
nli"ely+
1% A ",o1.o) in ran" andFor a dimintion in pay+ or
7% A clear ".+&!.,.)(1.o)6 .)+)+.#.*.1$ o! ".+"(.) by an employer !hich becomes nbearable to the employee
that it cold foreclose any choice by him e8cept to forego his contined employment%
T+1 o2 &o)+1!0&1.7 ".+,.++(*. B The test of constrctive dismissal is !hether a reasonable person in the
employee’s position !old have felt compelled to give p his position nder the circmstances% &t is an act amonting to
dismissal bt made to appear as if it !ere not% &n fact$ the employee !ho is constrctively dismissed may be allo!ed to
"eep on coming to !or"% Constrctive dismissal is$ therefore$ a ".+,.++(* .) ".+/0.+% The la! recogni;es and resolves
this sitation in favor of the employees in order to protect their rights and interests from the coercive acts of the employer%
oooooooooOoOooooooooo
#! $ohn %ancoc& 'ife (nsurance )orp. *. +a*is, ,.R. No. #-./4., 0eptember ", 2008.
2! 1uiser *. 'eogardo, $r., ,.R. No. '2-""#-, $uly #", #.84, #"# 0)RA #/#, #/8.
"! 3rasuegui *. 4hilippine Airlines, (nc., ,.R. No. #-808#, 5ctober #6, 2008.
4! Article 2667b8 of the 'abor )ode.
/! 0ection #, Article ((( of the )onstitution.
-! ,.R. No. 86-6", $anuary 24, #..2, 20/ 0)RA "48,
6! ,.R. No. #-4820, +ecember 8, 2008.
8! 4re*enti*e suspension is not found in the 'abor )ode. (t is pro*ided in 0ections 8 and ., Rules 99(((, 1oo& :, Rules to (mplement
the 'abor )ode.

Pow!" #$% &'()!o#*+#(!.&o,.-'
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
B$% P!o2.Fo+*.1oG0.()() C'()
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART FIVE
MANAGEMENT PREROGATIVES
A. DISCIPLINE.
The employer’s prerogative to discipline incldes the follo!ing rights(
1% To dismiss+
1% To promlgate disciplinary rles and reglations+
7% To determine !ho to pnish+
,% To impose proper penalty nder the <R(+o)(#* P!o-o!1.o)(*.1$ R0*= !hich means that infractions
committed by an employee shold merit only the corresponding sanction demanded by the circmstances%The
penalty mst be commensrate !ith the gravity of the offense$ the act$ condct or omission impted to the
employee and imposed in connection !ith the employer’s disciplinary athority%
B. TRANSFER OF EMPLOYEES.
A transfer means a movement(
1%6rom one -o+.1.o) to another of e'ivalent ran"$ level or salary$ !ithot a brea" in the service+ or
1%6rom one o22.& to another !ithin the same bsiness establishment%
• So, -!.)&.-*+ o) 1!()+2! o2 ,-*o$+.
1% The transfer of an employee may constitte &o)+1!0&1.7 ".+,.++(* !hen it amonts to an involntary
resignation resorted to !hen contined employment is rendered impossible$ nreasonable or nli"ely+ !hen
there is a demotion in ran" andFor a dimintion in pay+ or !hen a clear discrimination$ insensibility or disdain by
an employer becomes nbearable to the employee leaving him !ith no option bt to forego !ith his contined
employment% Jore specifically$ the follo!ing 1'! (3) &o)".1.o)+ mst concr in order for the transfer to be
considered as constrctive dismissal(
(a)<hen the transfer is nreasonable$ inconvenient or pre:dicial to the employee+
(b)<hen the transfer involves a demotion in ran" or dimintion of salaries$ benefits and other privileges+ and
(c)<hen the employer performs a clear act of discrimination$ insensibility$ or disdain to!ards the employee$
!hich forecloses any choice by the latter e8cept to forego his contined employment%
1% Even if the employee is performing !ell in his present assignment$ management may reassign him to a ne!
post%
7% The refsal of an employee to be transferred may be held :stified if there is a sho!ing that the transfer !as
directed by the employer nder 'estionable circmstances% 6or instance$ the transfer of employees dring
the height of their nion’s concerted activities in the company !here they !ere active participants is illegal%
,%An employee !ho refses to be transferred !hen sch transfer is valid is gilty of insbordination or !illfl
disobedience of a la!fl order of an employer nder Article 131 of the Labor Code% Fo! ?(,-*% The
dismissal of a medical representative !ho acceded in his employment application to be assigned any!here in
the Philippines bt later refsed to be transferred from Janila to a provincial assignment$ !as held valid% The
reason is that !hen he applied and !as accepted for the :ob$ he agreed to the policy of the company
regarding assignment any!here in the Philippines as demanded by his employer’s bsiness operation%
["
/% )efsal to transfer de to parental obligations$ additional e8penses$ inconvenience$ hardship and angish$ held
not valid%An employee cold not validly refse la!fl orders to transfer based on these gronds%
6% )efsal to transfer by reason of -!o,o1.o) is valid%
C. PRODUCTIVITY STANDARDS OR MUOTA.
The employer has the prerogative to prescribe the standards of prodctivity !hich the employees shold comply%
The prodctivity standards may be sed by the employer as(
1% an incentive scheme+ andFor
1% a disciplinary scheme%
As an .)&)1.7 scheme$ employees !ho srpass the prodctivity standards or 'ota are sally given additional benefits%
As a ".+&.-*.)(!$ scheme$ employees may be sanctioned for failre to meet the prodctivity standards or 'ota%

D. GRANT OF BONUS.
1. G)!(* !0*@ #o)0+ .+ )o1 ",()"(#* o! )2o!&(#*. B Bons$ as a general rle$ is an amont granted and
paide+ $ratia to the employee% &ts payment constittes an act of enlightened generosity and self#interest on the
part of the employer rather than as a demandable or enforceable obligation%
2. Bo)0+@ w') ",()"(#* ()" )2o!&(#*. # Bons is demandable and enforceable nder any of the
follo!ing circmstances(
a%<hen it is stiplated in an employment contract or CBA+
b% <hen the grant of bons is a company policy or practice+
c% <hen it is granted as an additional compensation !hich the employer agreed to give !ithot any condition
sch as sccess of bsiness or more efficient or more prodctive operation and$ ths$ mst be deemed part
of !age or salary+ hence$ demandable%
&t ths becomes a demandable and enforceable obligation o)*$ w') .1 .+ ,(" -(!1 o2 1' w(/ o! +(*(!$ o!
&o,-)+(1.o)% <hen considered as part of the compensation and therefore demandable and enforceable$ the amont is
sally 2.?"%
Bt if the amont of bons is "-)")1 0-o) 1' !(*.;(1.o) o2 -!o2.1+6 the bons is )o1 demandable and
enforceable%
E. CHANGE OF WORHING HOURS.
Employers have the freedom and prerogative$ according to their discretion and best :dgment$ to reglate and
control the time !hen !or"ers shold report for !or" and perform their respective fnctions%
M().*( Fo&3$ C*0# E,-*o$+ L(#o! U).o) I PTGWO6 7. M().*( Fo&3$ C*0#6 I)&.6 JG.R. No. 1A88A06
M(!&' 86 2008K% # The validity of the e8ercise of the same prerogative to change the !or"ing hors !as affirmed in
this case &n this case% &t !as fond that !hile *ection 1$ Article &C of the CBA provides for a >#hor !or" schedle
from 4(.. a%m% to 11(.. noon and from 1(.. p%m% to /(.. p%m% from Jondays to *atrdays$ *ection 1$ Article L&
thereof$ ho!ever$ e8pressly reserves on respondent the prerogative to change e8isting methods or facilities and to
change the schedles of !or"% Conse'ently$ the hors of !or" of reglar monthly#paid employees !as changed
from 4(.. a%m% to /(.. p%m% to 1(.. p%m% to 3(.. p%m% !hen horse races are held$ that is$ every Tesday and
Thrsday% The 4(.. a%m% to /(.. p%m% schedle for non#race days !as$ ho!ever$ retained% )espondent$ as
employer$ cited the change in the program of horse races as reason for the ad:stment of the employees’ !or"
schedle% &t rationali;ed that !hen the CBA !as signed$ the horse races started at 1.(.. a%m% <hen the races
!ere moved to 1(.. p%m%$ there !as no other choice for management bt to change the employees’ !or" schedle
as there !as no !or" to be done in the morning% Evidently$ the ad:stment in the !or" schedle of the employees
is :stified%
F. RULE ON MARRIAGE BETWEEN EMPLOYEES OF COMPETITORBEMPLOYERS.
The best case to illstrate this rle is D0)&() A++o&.(1.o) o2 D1(.*,()BPTGWO 7. G*(?o W*&o,
P'.*.--.)+6 I)&.6 JG.R. No. 1A2EE56 S-1,#! 186 2005K% The contract of employment e8pressly prohibited an employee
from having a relationship !ith an employee of a competitor company%&t provides(
<10. Yo0 (/! 1o ".+&*o+ 1o ,()(/,)1 ()$ ?.+1.)/ o! 2010! !*(1.o)+'.- $o0 ,($
'(76 .1'! #$ &o)+()/0.).1$ o! (22.).1$ w.1' &oB,-*o$+ o! ,-*o$+ o2 &o,-1.)/ "!0/
&o,-().+. S'o0*" .1 -o+ ( -o++.#* &o)2*.&1 o2 .)1!+1 .) ,()(/,)1 ".+&!1.o)6 $o0 (/! 1o
!+./) 7o*0)1(!.*$ 2!o, 1' Co,-()$ (+ ( ,(11! o2 Co,-()$ -o*.&$.=
The *preme Cort rled that this stiplation is a valid e8ercise of management prerogative% The prohibition against
personal or marital relationships !ith employees of competitor#companies pon its employees is reasonable nder the
circmstances becase relationships of that natre might compromise the interests of the company%&n laying do!n the
assailed company policy$ the employer only aims to protect its interests against the possibility that a competitor company !ill
gain access to its trade secrets$ manfactring formlas$ mar"eting strategies and other confidential programs and
information%
<R(+o)(#* #0+.)++ )&++.1$ !0*= as applied to the prohibition against marriage policy% I This rle dictates
that the re'irement of reasonableness mst be clearly established in order to ma"e the policy against marriage valid% The
employer has the brden to prove the e8istence of a reasonable bsiness necessity% The brden !as sccessflly
discharged in above case of 3uncan.
G. POSTBEMPLOYMENT BAN
(. F!"o, 1o &o)1!(&1. B The employer and the employee are free to stiplate in an employment contract
prohibiting the employee !ithin a certain period from and after the termination of his employment$ from starting a
similar bsiness$ profession or trade or !or"ing in an entity that is engaged in a similar bsiness that might
compete !ith the employer% Contracts !hich prohibit an employee from engaging in bsiness in competition !ith
the employer are not necessarily void for being in restraint of trade% The non#compete clase is agreed pon to
prevent the possibility that pon an employee’s termination or resignation$ he might start a bsiness or !or" for a
competitor !ith the fll competitive advantage of "no!ing and e8ploiting confidential and sensitive information$
trade secrets$ mar"eting plans$ cstomerFclient lists$ bsiness practices$ pcoming prodcts$ etc%$ !hich he
ac'ired and gained from his employment !ith the former employer%
#. P'.*.--.) C0!.+-!0")& o) 1' )o)B&o,-1 &*(0+. B The natre and e8tent to !hich a non#compete
clase is legally allo!ed sally varies from one :risdiction to another% &n the Philippines$ several cases dating
bac" to as early as 141. have dealt !ith isses on :risdiction and validity of ?non#compete@ or ?non#
involvement@ stiplations$ also "no!n as Covenant -ot to Compete (C-C) in an employment contract%
The rle is clear( ( )o)B&o,-1 &*(0+ .+ )o1 )&++(!.*$ 7o." 2o! #.)/ .) !+1!(.)1 o2 1!(" (+ *o)/ (+
1'! (! !(+o)(#* *.,.1(1.o)+ (+ 1o TIME6 TRADE6 ()" PLACE.
&n order to appreciate the principles affecting this clase in or :risdiction$ the follo!ing cases of significance
may be cited and are !orth loo"ing into(
1% *arlos 0sell '. .edro #och, H2%)% -o% ,4.>% Jarch 11$ 141.I+
1% Ansel"o1erra22ini '. *arlos 0sell, H2%)% -o% 1.>11% Agst 1.$ 1416I+
7% 3illia" Ollendorf '. &ra Abraha"son 4/n 5anc6, H2%)% -o% 17113$ *eptember 17$ 1413I+
,% 0. (artini 4Ltd.6 '. 7. (. 0laiser"an 4/n 5anc6$ H2%)% -o% L#17644% -ovember 11$ 1413I+
/% Alfonso del *astillo '. Shannon ,ich"ond, H2%)% -o% 1111>% 6ebrary 4$ 141,I+
6% ,a8uel .. *onsulta '. *A, .a"ana .hilippines, &nc., et al., H2%)% -o% 1,/,,7% Jarch 13$ 1../I+
>% 9usen Air and Sea Ser'ice .hilippines, &nc. '. -illa"or, H2%)% -o% 1/,.6.$ Agst 16$ 1../I+
3% Daisy 5. %iu '. .latinu" .lans .hilippines, &nc., H2%)% -o% 167/11$ 6ebrary 13$ 1..>I+
T!o (1) cases dealing !ith the isse of :risdiction over breach of the non#compete clase have also been
decided by the *preme Cort$ namely(
1% Dai-*hi /lectronics (anufacturin$ *orporation '. :on. -illara"a, H2%)% -o% 1114,.% -ovember 11$ 144,I+
and
1%.ortillo '. ,udolf Liet2, &nc., H2%)% -o% 146/74$ Actober 1.$ 1.11I%
The best case to illstrate the principles on non#compete clase is the 1..> case of 3aisy 4. 'iu v. .latinum
.lans .hilippines$ 5nc.$ JG.R. No. 1A34126 F#!0(!$ 2D6 2008K. The non#compete clase (called ?-on#&nvolvement
Provision@ in this case) provides as follo!s(
?3% -A- &-CALCEJE-T P)AC&*&A- 9 The EJPLAMEE frther nderta"es that dring hisFher engagement
!ith EJPLAME) and in case of separation from the Company$ !hether volntary or for case$ heFshe shall not$ for the
ne8t T<A (1) years thereafter$ engage in or be involved !ith any corporation$ association or entity$ !hether directly or
indirectly$ engaged in the same bsiness or belonging to the same pre#need indstry as the EJPLAME)%Any breach
of the foregoing provision shall render the EJPLAMEE liable to the EJPLAME) in the amont of Ane =ndred
Thosand Pesos (P1..$...%..) for and as li'idated damages%@
*tarting on 0anary 1$ 1447$ petitioner !or"ed for respondent as *enior Assistant Cice#President and Territorial
Aperations =ead in charge of its =ong"ong and Asean operations nder a /#year contract of employment containing the
afore#'oted clase% An *eptember 16$ 144/$ petitioner stopped reporting for !or"% &n -ovember 144/$ she became the
Cice#President for *ales of Professional Pension Plans$ &nc%$ a corporation engaged also in the pre#need indstry%
Conse'ently$ respondent sed petitioner for damages before the )TC of Pasig City% )espondent alleged$ among others$
that petitioner’s employment !ith Professional Pension Plans$ &nc% violated the above#'oted non#involvement clase in her
contract of employment% )espondent ths prayed for P1..$... as compensatory damages+ P1..$... as moral
damages+ P1..$... as e8emplary damages+ and 1/N of the total amont de pls P1$... per consel’s cort appearance$
as attorney’s fees% Petitioner contered that the non#involvement clase !as nenforceable for being against pblic order or
pblic policy(1irst$ the restraint imposed !as mch greater than !hat !as necessary to afford respondent a fair and
reasonable protection% Petitioner contended that the transfer to a rival company !as an accepted practice in the pre#need
indstry% *ince the prodcts sold by the companies !ere more or less the same$ there !as nothing pecliar or ni'e to
protect% Second$ respondent did not invest in petitioner’s training or improvement%At the time petitioner !as recrited$ she
already possessed the "no!ledge and e8pertise re'ired in the pre#need indstry and respondent benefited tremendosly
from it% %hird$ a strict application of the non#involvement clase !old amont to a deprivation of petitioner’s right to engage
in the only !or" she "ne!%
&n pholding the validity of the non#involvement clase$ the trial cort rled that a contract in restraint of trade is
valid provided that there is a *.,.1(1.o) 0-o) .1'! 1., o! -*(&% &n the case of the pre#need indstry$ the trial cort fond
the t!o#year restriction to be valid and reasonable%
An appeal$ the Cort of Appeals affirmed the trial cort’s rling%&t reasoned that petitioner entered into the contract
on her o!n !ill and volition%Ths$ she bond herself to flfill not only !hat !as e8pressly stiplated in the contract$ bt also
all its conse'ences that !ere not against good faith$ sage$ and la!% The appellate cort also rled that the stiplation
prohibiting non#employment for t!o years !as valid and enforceable considering the natre of respondent’s bsiness%
&n affirming the validity of the -on#&nvolvement Clase$ the *preme Cort ratiocinated as follo!s(
?Petitioner avers that the non#involvement clase is offensive to pblic policy since the restraint imposed is
mch greater than !hat is necessary to afford respondent a fair and reasonable protection%*he adds that since the
prodcts sold in the pre#need indstry are more or less the same$ the transfer to a rival company is
acceptable%Petitioner also points ot that respondent did not invest in her training or improvement%At the time she
:oined respondent$ she already had the "no!ledge and e8pertise re'ired in the pre#need indstry%6inally$ petitioner
arges that a strict application of the non#involvement clase !old deprive her of the right to engage in the only !or"
she "no!s%
?)espondent conters that the validity of a non#involvement clase has been sstained by the *preme
Cort in a long line of cases%&t contends that the inclsion of the t!o#year non#involvement clase in petitioner’s
contract of employment !as reasonable and needed since her :ob gave her access to the company’s confidential
mar"eting strategies%)espondent adds that the non#involvement clase merely en:oined her from engaging in pre#need
bsiness a"in to respondent’s !ithin t!o years from petitioner’s separation from respondent%*he had not been
prohibited from mar"eting other service plans%
?As early as 1416$ !e already had the occasion to discss the validity of a non#involvement
clase%I) &erra22ini v. 6sell6 J+0-!(K w +(." 1'(1 +0&' &*(0+ w(+ 0)!(+o)(#* !+1!(.)1 o2 1!(" ()"
1'!2o! (/(.)+1 -0#*.& -o*.&$. I)&erra22ini6 1' ,-*o$ w(+ -!o'.#.1" 2!o, )/(/.)/ .) ()$ #0+.)++ o!
o&&0-(1.o) .) 1' P'.*.--.)+ 2o! ( -!.o" o2 2.7 $(!+ (21! 1' 1!,.)(1.o) o2 '.+ ,-*o$,)1 &o)1!(&1 ()"
,0+1 2.!+1 /1 1' w!.11) -!,.++.o) o2 '.+ ,-*o$! .2 ' w! 1o "o +o.The Cort rled that !hile the stiplation
!as indeed *.,.1" (+ 1o 1., ()" +-(&6 .1 w(+ )o1 *.,.1" (+ 1o 1!(".*ch prohibition$ in effect$ forces an
employee to leave the Philippines to !or" shold his employer refse to give a !ritten permission%
?&n 6. %artini$ 7td. v. 6laiserman6HspraI !e also declared a similar stiplation as 7o." 2o! #.)/ ()
0)!(+o)(#* !+1!(.)1 o2 1!(".There$ the employee !as prohibited from engaging in any bsiness similar to that of
his employer for a period of one year%*ince the employee !as employed only in connection !ith the prchase and
e8port of abaca$ among the many bsinesses of the employer$ the Cort considered the restraint too broad since it
effectively prevented the employee from !or"ing in any other bsiness similar to his employer even if his employment
!as limited only to one of its mltifarios bsiness activities%
?=o!ever$ in 3el Castillo v. 0ichmond6HspraI !e pheld a similar stiplation as legal$ reasonable$ and not
contrary to pblic policy% &n the said case$ the employee !as restricted from opening$ o!ning or having any connection
!ith any other drgstore !ithin a radis of for miles from the employer’s place of bsiness dring the time the
employer !as operating his drgstore%<e said that a contract in restraint of trade is valid provided there is a limitation
pon either time or place and the restraint pon one party is not greater than the protection the other party re'ires%
?6inally$ in Consulta v. Court of #ppeals6HspraI !e considered a non#involvement clase in accordance
!ith Article 17.6 of the Civil Code%<hile the complainant in that case !as an independent agent and not an employee$
she !as prohibited for one year from engaging directly or indirectly in activities of other companies that compete !ith
the bsiness of her principal%<e noted therein that the restriction did not prohibit the agent from engaging in any other
bsiness$ or from being connected !ith any other company$ for as long as the bsiness or company did not compete
!ith the principal’s bsiness%6rther$ the prohibition applied only for one year after the termination of the agent’s
contract and !as therefore a reasonable restriction designed to prevent acts pre:dicial to the employer%
?Conformably then !ith the aforementioned prononcements$ ( )o)B.)7o*7,)1 &*(0+ .+ )o1
)&++(!.*$ 7o." 2o! #.)/ .) !+1!(.)1 o2 1!(" (+ *o)/ (+ 1'! (! !(+o)(#* *.,.1(1.o)+ (+ 1o 1.,6 1!("6 ()"
-*(&.
?I) 1'.+ &(+6 1' )o)B.)7o*7,)1 &*(0+ '(+ ( 1., *.,.1% 1wo $(!+ 2!o, 1' 1., -1.1.o)!9+
,-*o$,)1 w.1' !+-o)")1 )"+.I1 .+ (*+o *.,.1" (+ 1o 1!("6 +.)& .1 o)*$ -!o'.#.1+ -1.1.o)! 2!o,
)/(/.)/ .) ()$ -!B)" #0+.)++ (3.)1o !+-o)")19+.
?Jore significantly$ since petitioner !as the *enior Assistant Cice#President and Territorial Aperations =ead in
charge of respondent’s =ong"ong and Asean operations$ she had been privy to confidential and highly sensitive
mar"eting strategies of respondent’s bsiness%To allo! her to engage in a rival bsiness soon after she leaves !old
ma"e respondent’s trade secrets vlnerable especially in a highly competitive mar"eting environment%I) +0,6 w 2.)"
1' )o)B.)7o*7,)1 &*(0+ )o1 &o)1!(!$ 1o -0#*.& w*2(! ()" )o1 /!(1! 1'() .+ )&++(!$ 1o (22o!" ( 2(.!
()" !(+o)(#* -!o1&1.o) 1o !+-o)")1.
?&n any event$ Article 17.6 of the Civil Code provides that parties to a contract may establish sch stiplations$
clases$ terms and conditions as they may deem convenient$ provided they are not contrary to la!$ morals$ good
cstoms$ pblic order$ or pblic policy%
?Article 11/4of the same Code also provides that obligations arising from contracts have the force of la!
bet!een the contracting parties and shold be complied !ith in good faith%Corts cannot stiplate for the parties nor
amend their agreement !here the same does not contravene la!$ morals$ good cstoms$ pblic order or pblic policy$
for to do so !old be to alter the real intent of the parties$ and !old rn contrary to the fnction of the corts to give
force and effect thereto% -ot being contrary to pblic policy$ the non#involvement clase$ !hich petitioner and
respondent freely agreed pon$ has the force of la! bet!een them$ and ths$ shold be complied !ith in good faith%
?Ths$ as held by the trial cort and the Cort of Appeals$ petitioner is bond to pay respondent P1..$... as
li'idated damages%<hile !e have e'itably redced li'idated damages in certain cases$ !e cannot do so in this
case$ since it appears that even from the start$ petitioner had not sho!n the least intention to flfill the non#involvement
clase in good faith%@ HEmphasis sppliedI%
oooooooooOoOooooooooo
[1] Abbo$$ Labora$or#e", /n!. v. NLRC, G.R. No. 76959, +!$ober 12, 1987..

Pow!" #$% &'()!o#*+#(!.&o,.-'
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
B$% P!o2.Fo+*.1oG0.()() C'()
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART SIX
SOCIAL AND WELFARE LEGISLATION
A. SSS LAW (R.A. No. D2D2).
1. Co,-0*+o!$ &o7!(/.
a% A** ,-*o$+ # not over si8ty (6.) years of age and their employers%
b%Do,+1.& wo!3!+:3(+(,#('($ 9 Knder the H(+(,#('($ L(w H)%A% -o% 1.761I$["it is re'ired that the
domestic !or"er or "asambahay mst have rendered at least o) (1) ,o)1' o2 +!7.&% P!,.0,
-($,)1+ o! &o)1!.#01.o)+ +'(** # +'o0*"!" #$ 1' ,-*o$!. How7!6 .2 1' "o,+1.& wo!3! .+
!&.7.)/ ( w(/ o2 F.7 1'o0+()" -+o+ (P46000.00) ()" (#o7 -! ,o)1'6 1' "o,+1.& wo!3! +'(**
-($ 1' -!o-o!1.o)(1 +'(! .) 1' -!,.0, -($,)1+ o! &o)1!.#01.o)+6 (+ -!o7."" #$ *(w.
2. Co,-0*+o!$ &o7!(/ o2 +*2B,-*o$".
Coverage in the *** shall also be complsory pon sch self#employed persons as may be determined by the
** Commission nder sch rles and reglations as it may prescribe$ inclding bt not limited to the follo!ing(
a% All self#employed professionals+
b% Partners and single proprietors of bsinesses+
c% Actors and actresses$ directors$ script!riters and ne!s correspondents !ho do not fall !ithin the definition of
the term;e"ployee<+
d% Professional athletes$ coaches$ trainers and :oc"eys+ and
e% &ndividal farmers and fishermen%
Knless other!ise specified herein$ all provisions of this Act applicable to covered employees shall also be
applicable to the covered self#employed persons%
3. Vo*0)1(!$ &o7!(/.
a% *poses !ho devote fll time to managing the hosehold and family affairs$ nless they are also engaged in
other vocation or employment !hich is sb:ect to mandatory coverage$ may be covered by the *** on a
volntary basis%
b% 6ilipinos recrited by foreign#based employers for employment abroad may be covered by the *** on a
volntary basis%
5. E22&1.7 "(1 o2 &o7!(/.
1% E,-*o$+% Complsory coverage of the employer shall ta"e effect on the first day of his operation and that of
the employee on the day of his employment
1% S*2BE,-*o$"% The complsory coverage of the self#employed person shall ta"e effect pon his registration
!ith the ***%
4. B)2.1+.
The follo!ing are the benefits provided nder the *** La!(
a% Jonthly pension
b% 5ependents’ pension
c% )etirement benefits
d% 5eath benefits
e% Permanent disability benefits
f% 6neral benefit
g% *ic"ness benefit
h% Jaternity leave benefit
A. B)2.&.(!.+.
(. D-)")&$ !0* 0)"! 1' SSS L(w.
Knder the *** La!$ dependent shall refer to(
(1) The */(* +-o0+ entitled by la! to receive spport from the member+
(1) The */.1.,(16 */.1.,(1"6 or */(**$ ("o-1"6 and .**/.1.,(1 &'.*" !ho is 0),(!!."$ )o1 /(.)20**$
,-*o$"and has )o1 !(&'" 21 o2 (/$ o! .2 o7! 21 $(!+ o2 (/6 he is conenitally or !hile still
a ,.)o! has been-!,())1*$ .)&(-(&.1(1" and .)&(-(#* o2 +*2B
+0--o!1$ -'$+.&(**$ or ,)1(**$+ ()"
(7) The -(!)1 !ho is receiving !/0*(! +0--o!1 from the member%
#. B)2.&.(!.+ 0)"! 1' SSS L(w.
&% .05%#08 49N9&5C5#059S.
The follo!ing are primary #)2.&.(!.+(
1%The "-)")1 +-o0+ ntil he or she remarries+
1%The "-)")1 */.1.,(16 */.1.,(1" or */(**$ ("o-1"6 and .**/.1.,(1 &'.*"!)
JNote: The "-)")1 .**/.1.,(1 &'.*"!) shall be entitled to 40N of the share of the */.1.,(16
*/.1.,(1" or*/(**$ ("o-1" &'.*"!)( .ro'ided, further, That in the absence of the "-)")1 */.1.,(16
*/.1.,(1" &'.*"!)of the member$ hisFher "-)")1 .**/.1.,(1 &'.*"!) shall be entitled to 100N of the
benefits%I
&&% S9C;N3#08 49N9&5C5#059S.
The follo!ing are secondary #)2.&.(!.+(
1%The "-)")1 -(!)1+$ in the absence of the pri"ary beneficiaries%
1%A)$ o1'! -!+o) designated by the member as hisFher secondary beneficiary$ in the absence of (** the
foregoing (primary beneficiaries and dependent parents)$

B. GSIS LAW (R.A. No. D2E1).
1. Co,-0*+o!$ &o7!(/.
Jembership in the 2*&* shall be complsory for (** ,-*o$+ receiving compensation !ho have not reached the
complsory retirement age$ .!!+-&1.7 of ,-*o$,)1 +1(10+%
2. E?&*0+.o)+ 2!o, &o7!(/.
E8cepted from 2*&* coverage are(
1% Jembers of the A!," Fo!&+ o2 1' P'.*.--.)+ (A6P)+
1% Jembers of the P'.*.--.) N(1.o)(* Po*.& (P-P)+
7% Co)1!(&10(*+ !ho have no employer and employee relationship !ith the agencies they serve+
,% M,#!+ o2 1' C0".&.(!$ ()" &o)+1.101.o)(* &o,,.++.o)+. # Jembers of the :diciary and constittional
commissions shall have life insrance only%
3. B)2.1+.
All members of the 2*&* shall have the follo!ing benefits(
1% Jonthly pension
1% *eparation benefits
7% Knemployment or involntary separation benefits
,% )etirement benefits
/% Permanent disability benefits
(a) Total and permanent disability benefits
(b) Permanent and partial disability benefits
6% Temporary disability benefits
>% -on#schedled disability
3% *rvivorship benefits
4% 6neral benefits
1.% Life insrance benefits
(a) Complsory life insrance
(b) Aptional insrance
5. B)2.&.(!.+.
(. D-)")1+.
5ependents shall be the follo!ing(
(a) the legitimate spose dependent for spport pon the member or pensioner+
(b)the legitimate$ legitimated$ legally adopted child$ inclding the illegitimate child$ !ho is nmarried$
not $ainfully e"ployed$ not over the age of ma:ority$ or is over the age of ma:ority bt incapacitated and
incapable of self#spport de to a mental or physical defect ac'ired prior to age of ma:ority+ and
(c) the parents dependent pon the member for spport%
#. B)2.&.(!.+.
There are 1 "inds of beneficiaries nder the 2*&* La! as follo!s(
1% .rimary #)2.&.(!.+ O The legal dependent spose ntil heFshe remarries and the dependent children%
1% Secondary #)2.&.(!.+ O The dependent parents and$ sb:ect to the restrictions on dependent children$
the legitimate descendants%
C. LIMITED PORTABILITY LAW(R.A. No. 8AEE).D<E
(. P0!-o+ o2 1' *(w .+ 1o +1(#*.+' ( 0).1(!$ +o&.(* +&0!.1$ +$+1,. # &t is the declared policy of the *tate to
institte a scheme for 1o1(*.;(1.o) and -o!1(#.*.1$ of social secrity benefits !ith the vie! of establishing !ithin
a reasonable period$ a 0).1(!$ social secrity system%
#. To1(*.;(1.o)6 "2.)". I &t refers to the process of adding p the periods of creditable services or contribtions
nder each of the *ystems$ for the prpose of eligibility and comptation of benefits%
&. Po!1(#.*.1$6 "2.)". I &t refers to the transfer of fnds for the accont and benefit of a !or"er !ho transfers from
one system to the other%
". A--*.&(#.*.1$ o2 *.,.1" -o!1(#.*.1$ +&',. # The benefits provided nder )%A% -o% >644 apply
to (&1.7 or .)(&1.7members of either *ystem (2*&*F***) as of the date of its effectivity on Jay 1.$ 144,%
. Co7!(/. # The la! applies to (** !or"er#members of the 2*&* andFor *** !ho transfer from the pblic sector
to the private sector or 'ice-'ersa$ or !ho !ish to retain their membership in both *ystems%
[)"
2. C!".1(#.*.1$ ()" 1o1(*.;(1.o) o2 &o)1!.#01.o)+ ()" #)2.1+ .) SSS ()" GSIS. # A covered !or"er !ho
transfers employment from one sector to another (i. e.$ from private sector to pblic sector$ or 'ice 'ersa)$ or is
employed in both sectors$ shall have his creditable services or contribtions in both *ystems (2*&* and ***)
credited to his service or contribtion record in each of the *ystems and shall be totali;ed for prposes of old#
age$ disability$ srvivorship and other benefits in case the covered member does not 8ualify for such benefits in
either or both Syste"s )ithout totali2ation provided$ ho!ever$ that overlapping periods of membership shall be
credited only once for prposes of totali;ation%
/. L.,.1" -o!1(#.*.1$ o2 20)"+. # The processes involved in the prompt payment of money benefits to eligible
members are the :oint responsibility of the 2*&* and ***% The *ystem or *ystems responsible for the payment
of money benefits de a covered !or"er shall release the same !ithin fifteen (1/) !or"ing days from receipt of
the claim$ sb:ect to the sbmission of the re'ired docments and availability of complete employeeFemployer
records in the *ystem or *ystems%
'. To1(*.;(1.o) o2 &o)1!.#01.o)+ ()" #)2.1+@ 'ow -!o&++".
1. Co)1!.#01.o)+.B All contributions paid by sch member personally and those that !ere paid by his employers
to both *ystems (2*&* and ***) shall be considered in the processing of benefits !hich he can claim from
either or both *ystems$ provided$ ho!ever$ that the amont of benefits to be paid by one *ystem shall be in
proportion to the nmber of contribtions actally remitted to that *ystem% The term ;contributions< refers to
the contribtions paid by the employee or !or"er to either the 2*&* or the *** on accont of the !or"er’s
membership%
2. C!".1(#* +!7.&+ o! -!.o"+ o2 &o)1!.#01.o)+. B All creditable ser'ices or periods of contributions made
continosly or in the aggregate of a !or"er nder either of the sectors shall be added p and considered for
prposes ofeli$ibility and comptation of benefits% The term <&!".1(#* +!7.&+= insofar as the pblic
sector is concerned$ refers to the follo!ing(
1% All previos services rendered by an officialFemployee prsant to an appointment$ !hether permanent$
provisional or temporary+
1% All previos services rendered by an officialFemployee prsant to a dly#approved appointment to a
position in the Civil *ervice !ith compensation or salary+
7% The period dring !hich an official or employee !as on athori;ed sic" leave of absence !ithot pay not
e8ceeding one (1) year+
,%The period dring !hich an official or employee !as ot of the service as a reslt of illegal termination of his
services as finally decided by the proper athorities+ and
/%All previos services !ith compensation or salary rendered by elective officials%
The term <-!.o"+ o2 &o)1!.#01.o)+= for the private sector refers to the periods dring !hich a person
renders services for an employer !ith compensation or salary$ and dring !hich contribtions !ere paid to
the ***% A <+*2B,-*o$" -!+o)= is considered an employee and employer at the same time% The
term <*./.#.*.1$= means that the !or"er has satisfied the re'irements for entitlement to the benefits
provided for nder )%A% -o% >644%
3. B)2.1+. B All services rendered or contribtions paid by a member personally and those that !ere paid by
the employers to either *ystem shall be considered in the comptation of benefits !hich may be claimed
from either or both *ystems%=o!ever$ the amont of benefits to be paid by one *ystem shall be in proportion
to the services rendered or periods of contribtions made to that *ystem% The benefits are(
a%Ald#age benefit+
b%5isability benefit+
c%*rvivorship benefit+
d%*ic"ness benefit+
e% Jedicare benefit$ provided that the member shall claim said benefit from the *ystem !here he !as last a
member+ and
f% *ch other benefits common to both *ystems that may be availed of throgh totali;ation%
.. To1(*.;(1.o)@ w') (--*.&(#*. # Totali;ation applies in the follo!ing instances(
a%if a !or"er is not 'alified for any benefits from both *ystems+ or
b%if a !or"er in the pblic sector is not 'alified for any benefits from the 2*&*+ or
c%if a !or"er in the private sector is not 'alified for any benefits from the ***%
6or prposes of comptation of benefits$ totali;ation applies in all cases so that the contribtions made by the
!or"er#member in both *ystems shall provide ma8imm benefits !hich other!ise !ill not be available% &n no
case shall the contribtion be lost or forfeited%
C. E22&1 .2 wo!3! .+ )o1 >0(*.2." (21! 1o1(*.;(1.o). # &f after totali;ation$ the !or"er#member still does not 'alify
for any benefit$ the member !ill then get !hatever benefits correspond to hisFher contribtions in either or both
*ystems%
3. E22&1 .2 wo!3! >0(*.2.+ 2o! #)2.1+ .) #o1' S$+1,+.# &f a !or"er 'alifies for benefits in both
*ystems$ 1o1(*.;(1.o) +'(** not (--*$%
*. E22&1 o2 o7!*(--.)/ -!.o"+ o2 &!".1(#* +!7.&+. # Averlapping periods of creditable services or
contribtions in both *ystems shall be credited only once for prposes of totali;ation% +;verlappin of
periods- refers to the periods dring !hich a !or"er simltaneosly contribtes to both *ystems%
D. EMPLOYEE9S COMPENSATION I COVERAGE AND WHEN COMPENSABLE.
(. G)!(* &o7!(/. B The follo!ing shall be covered by the Employees’ Compensation Program (ECP)(
1%All employers+
1%Every employee not over si8ty (6.) years of age+
7% An employee over 6. years of age !ho had been paying contribtions to the *ystem (2*&*F***) prior to age
si8ty (6.) and has not been complsorily retired+ and
,% Any employee !ho is coverable by both the 2*&* and *** and shold be complsorily covered by both
*ystems%
#. S&1o!+ o2 ,-*o$+ &o7!" #$ 1' ECP. # The follo!ing sectors are covered nder the ECP(
1% All pblic sector employees inclding those of government#o!ned andFor controlled corporations and local
government nits covered by the 2*&*+
1% All employees in the private sector covered by the ***+ and
7% Averseas 6ilipino !or"ers (A6<s)$ namely(
a% 6ilipino seafarers complsorily covered nder the ***%
b% Land#based contract !or"ers provided that their employer$ natral or :ridical$ is engaged in any trade$
indstry or bsiness nderta"ing in the Philippines+ other!ise$ they shall not be covered by the ECP%
&. S1(!1 o2 &o7!(/ o2 ,-*o$+ 0)"! 1' ECP. B The coverage nder the ECP of employees in the private
and pblic sectors starts on the first day of their employment% The coverage is &o,-0*+o!$ in natre%
". E,-*o$9+ &o,-)+(1.o) #)2.1+. B The follo!ing are the benefits provided nder the Labor Code(
a% Jedical benefits
b%5isability benefits
1%Temporary total disability
1%Permanent total disability
7%Permanent partial disability
c%5eath benefit
d%6neral benefit
.T,-o!(!$ 1o1(* ".+(#.*.1$. B A total disability is te"porary if$ as a reslt of the in:ry or sic"ness$ the employee is
nable to perform any gainfl occpation for a continos period of not e8ceeding 120 "($+$ except !hen sch
disability still re'ires medical attendance beyond 120 "($+$ bt not to exceed 250 "($+% &f the disability is the
reslt of an in:ry or sic"ness$ the period of compensability shall be conted from the first day of sch in:ry or
sic"ness% An employee !ho later had to stop !or"ing de to a compensable illness is also entitled to temporary
total disability benefits%
2.P!,())1 1o1(* ".+(#.*.1$. &t is the inability of a !or"er to perform his :ob for ,o! 1'() 120 "($+$ regardless of
!hether or not he loses the se of any part of his body%
<To1(* ".+(#.*.1$6= on the other hand$ means disablement of an employee to earn !ages in the same "ind of
!or"$ or !or" of a similar natre that he !as trained for$ or accstomed to perform$ or any "ind of !or" !hich a
person of his mentality and attainment cold do% &t is lac" of ability to follo! continosly some sbstantial gainfl
occpation !ithot serios discomfort or pain and !ithot material in:ry to health and danger to life%
To1(* disability does not mean a state of absolte helplessness% A total disability does not re'ire that the
employee be absoltely disabled or totally paraly;ed% <hat is necessary is that the in:ry mst be sch that the
employee cannot prse his sal !or" and earn therefrom%
A disability is 1o1(* and -!,())1 if$ as a reslt of the in:ry or sic"ness$ the employee is nable to perform any
gainfl occpation for a continos period ?&".)/ 120 "($+% Joreover$ the fact that the permanently and
totally disabled employee contines to !or" after sch disability does not deprive him of the benefits provided
nder the la!%6or !hat is important consideration is the inability to do sbstantially all material acts necessary for
the prosection of a gainfl occpation !ithot serios discomfort or pain and !ithot material in:ry or danger to
life% &n disability compensation$ it is not the in:ry per se !hich is compensated bt the incapacity to !or"%
/.D(1' #)2.1. B <ithin the conte8t of the employees’ compensation program$ the term ;death< means loss of life
reslting from an in:ry or sic"ness% <Co,-)+(#* "(1'= refers to death !hich is the reslt of a !or"#related
in:ry or sic"ness%
'.F0)!(* #)2.1. B The fneral benefit shall be P106000.00 for the private sector and P36000.00 for the pblic
sector%
oooooooooOoOooooooooo
#! *ection 7.$ Article &C of )%A% -o% 1.761$ other!ise "no!n as ;Do"estic 3orkers Act< or ;5atas #asa"bahay< approved by President Benigno *% A'ino
&&& on 0anary 13$ 1.17%
2! R.A. No. *+,, An Act (nstituting 'imited 4ortability 0cheme in the 0ocial 0ecurity (nsurance 0ystem by ;otali<ing the =or&ers>
)reditable 0er*ices or )ontributions in ?ach of the 0ystems! appro*ed on @ay #, #..4.
"! *ection 1$ )le &$ &bid%

Pow!" #$% &'()!o#*+#(!.&o,.-'
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
B$% P!o2.Fo+*.1oG0.()() C'()
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART SEVEN
LABOR RELATIONS LAW
A. RIGHT TO SELFBORGANIOATON.
1. W'o ,($ 0).o).; 2o! -0!-o++ o2 &o**&1.7 #(!/(.).)/P B The follo!ing are eligible to :oin$ form or assist a
labor organi;ation(
a% All persons employed in &o,,!&.(*6 .)"0+1!.(* ()" (/!.&0*10!(* )1!-!.+++
b% Employees of !*./.o0+6 &'(!.1(#*6 ,".&(* o! "0&(1.o)(* .)+1.101.o)+6 w'1'! o-!(1.)/ 2o! -!o2.1 o!
)o1+
c% A*.) ,-*o$+ !ith valid !or"ing permits !ho are nationals of a contry !hich grants the same right to self#
organi;ation to 6ilipino citi;ens as certified by the Philippine 5epartment of 6oreign Affairs (56A) or !hich has
ratified either &LA Convention -o% 3>
["
or &LA Convention -o% 43%
[2"
d% F.!+1B*.) ,()(/!+ or +0-!7.+o!+% 9 6or prposes of :oining a nion$ there are three (7) "inds of
managerial employees( (1) To- M()(/!+@ (2) M.""* M()(/!+@ ()" (3) F.!+1BL.) M()(/!+ o!
S0-!7.+o!+. Anly 6irst#Line Janagers or +pervisory employees may form their o!n nion% They are$
ho!ever$ not allo!ed to become members of a ran"#and#file nion% &n case of ,.?" ,,#!+'.- of
spervisors and ran"#and#file employees in one nion$ the ne! rle ennciated in Article 1,/#A of the Labor
Code is that it cannot be invo"ed as a grond for the cancellation of the registration of the nion% The
employees so improperly inclded are atomatically deemed removed from the list of members of the
nion #$ o-!(1.o) o2 *(w%
e% Employees of government#o!ned or controlled corporations w.1'o01 o!./.)(* &'(!1!+ established nder
the Corporation Code+
f% &n the /o7!),)1 +&1o!$ all !()3B()"B2.* employees of all branches$ sbdivisions$ instrmentalities$ and
agencies of government$ inclding government#o!ned andFor controlled corporations w.1' o!./.)(* &'(!1!+$
can form$ :oin or assist employees’ organi;ations of their o!n choosing for the frtherance and protection of
their interests%
[)"
• E,-*o$+ w'o (! (**ow" 1o o!/().; ( *(#o! o!/().;(1.o) o)*$ 2o! ,010(* (." ()" -!o1&1.o) #01
)o1 2o! &o**&1.7 #(!/(.).)/ -0!-o++. B A"bulant, inter"ittent and other )orkers, the self-e"ployed,
rural )orkers and those )ithout any definite e"ployers may form labor organi;ations for their mtal aid
and protection and other legitimate prposes ?&-1 collective bargaining% T' !(+o) 2o! 1'.+ !0* .+
1'(1 1'+ -!+o)+ '(7 )o ,-*o$!+ 1o &o**&1.7*$ #(!/(.) w.1'.
• Any employee$ !hether employed for a definite period or not$ shall$ #/.)).)/ o) 1' 2.!+1 "($ o2 '.+
+!7.&$ be eligible for membership in any labor organi;ation%
2. W'o &())o1 2o!,6 Co.) o! (++.+1 *(#o! o!/().;(1.o)+. 9 The follo!ing are not allo!ed to nioni;e(
a% To- M()(/!+ and M.""* M()(/!+. I They are (#+o*01*$ -!o'.#.1" from forming$ :oining or assisting a
labor organi;ation%
b% A*.) ,-*o$+ !ith )o valid !or"ing permit or !ho are nationals of a contry !hich does )o1 grant the
same right to self#organi;ation to 6ilipino citi;ens%
c% Co)2.")1.(* ,-*o$+ !ho (1) assist or act in a confidential capacity+ (1) to persons or officers !ho
formlate$ determine$ and effectate management policies specifically .) 1' 2.*" o2 *(#o! !*(1.o)+% These
t!o (1) criteria are cmlative and both mst be met if an employee is to be considered a confidential
employee nder the <Co)2.")1.(* E,-*o$ R0*.= These confidential employees may either be !()3B()"B
2.* or +0-!7.+o!$ employees bt becase they have access to confidential information in the field of labor
relations$ they are not eligible to form$ :oin or assist a labor organi;ation% The rationale is to avoid conflict of
interest since they may obtain advance information on the company’s position !ith regard to collective
bargaining negotiations$ the disposition of grievances$ or other labor relations matters%
d%&n the /o7!),)1 +&1o!$ the follo!ing are )o1 eligible to form employees’ organi;ations(
a% =igh#level employees !hose fnctions are normally considered as policy#ma"ing or managerial or !hose
dties are of a highly confidential natre are not eligible to :oin the organi;ation of ran"#and#file government
employees+
b% Jembers of the Armed 6orces of the Philippines+
c% Police officers+
d% Policemen+
e% 6iremen+ and
f% 0ail gards%
3. B(!/(.).)/ 0).1. I &t refers to a grop of employees sharing mtal interests !ithin a given employer nit$
comprised of all or less than all of the entire body of employees in the employer nit or any specific occpational
or geographical groping !ithin sch employer nit% &t may also refer to the grop or clster of :obs or positions
!ithin the employer’s establishment that spports the labor organi;ation !hich is applying for registration%
(() T+1+ 1o "1!,.) 1' &o)+1.10)&$ o2 () (--!o-!.(1 #(!/(.).)/ 0).1. I There is no hard and fast rle to
determine the valid formation of a bargaining nit% =o!ever$ the follo!ing 2o0! (5) "o&1!.)+ may be sed to
determine its validity(
(1) S0#+1()1.(* ,010(* .)1!+1 "o&1!.)% # The employees soght to be represented by the collective
bargaining agent mst have sbstantial mtal interest in terms of employment and !or"ing conditions
as evinced by the type of !or" they perform% &t is characteri;ed by similarity of employment stats$ same
dties and responsibilities and sbstantially similar compensation and !or"ing conditions%
(1) G*o# "o&1!.). # The determination of the bargaining nit is based on the w.** o2 1' ,-*o$+% &t is
called 2lobedoctrine becase this principle !as first ennciated in the Knited *tates case of G*o#
M(&'.) ()" S1(,-.)/ Co.6J3 NLRB 2E5 (1E38)K !here it !as rled$ in defining the appropriate
bargaining nit$ that in a case !here the company’s prodction !or"ers can be considered either as a
single bargaining nit appropriate for prposes of collective bargaining or as three (7) separate and
distinct bargaining nits$ the determining factor is the w.** o! "+.! of the !or"ers themselves%
(7) Co**&1.7 #(!/(.).)/ '.+1o!$ "o&1!.). # This principle pts premim to the prior collective bargaining
history and affinity of the employees in determining the appropriate bargaining nit% =o!ever$ the
e8istence of a prior collective bargaining history has been held as neither decisive nor conclsive in the
determination of !hat constittes an appropriate bargaining nit%
(,) E,-*o$,)1 +1(10+ "o&1!.). # The determination of the appropriate bargaining nit is based on the
employment stats of the employees% 6or e8ample$ casal employees and those employed on a day#to#
day basis do not have the mtality or commnity of interest !ith reglar and permanent employees%
=ence$ their inclsion in the bargaining nit composed of the latter is not :stified%
5. B(!/(.).)/ (/)1. I The sole and e8clsive bargaining agent is chosen throgh any of the follo!ing modes(
(. Vo*0)1(!$ !&o/).1.o). I &t refers to the process by !hich a legitimate labor nion is volntarily recogni;ed
by the employer as the e8clsive bargaining representative or agent in a bargaining nit% &t is proper only in
cases !here there iso)*$ o) */.1.,(1 *(#o! o!/().;(1.o) e8isting and operating in a bargaining nit% &t
cannot be done in case there are t!o or more nions in contention%
#. C!1.2.&(1.o) *&1.o). I &t refers to the process of determining throgh secret ballot the sole and e8clsive
bargaining agent of the employees in an appropriate bargaining nit for prposes of collective bargaining
negotiations% A certification election is condcted only pon the order of the Jed#Arbiter of the Brea of
Labor )elations (BL))%
(.) I) () 0)o!/().;" +1(#*.+',)1. B &n case of a petition filed by a legitimate organi;ation involving
an unorani2edestablishment$ the Jed#Arbiter is re'ired to immediately order the condct of a
certification election pon filing of a petition for certification election by a legitimate labor organi;ation% The
t!enty#five percent (1/N) minimm spport of the employees in the bargaining nit !hich is re'ired in
?organi;ed establishments@ is not necessary in the case of ?norgani;ed establishments%@
(..) I) () o!/().;" +1(#*.+',)1. I The Jed#Arbiter is re'ired to atomatically order the condct of a
certification election by secret ballot in an organi;ed establishment as soon as the follo!ing re'isites are
flly met(
1% That a petition 'estioning the ma:ority stats of the incmbent bargaining agent is filed before the
5ALE w.1'.) 1' A0B"($ 2!"o, -!.o"+
1% That sch petition is 7!.2."+ and
7% That the petition is spported by the w!.11) &o)+)1 of at least 24N of all the employees in the
bargaining nit%
Two (2) 3.)"+ o2 ,(Co!.1.+ !>0.!" .) 1' -!o&++ o2 &!1.2.&(1.o) *&1.o). # The process of
certification election re'ires t!o (1) "inds of ma:ority votes$ 'i2(
1% To '(7 ( 7(*." &!1.2.&(1.o) *&1.o)6 at least a ,(Co!.1$ o2 (** *./.#* 7o1!+ in the bargaining nit
shold cast their votes+ and
1% To w.) ()" # &!1.2." (+ 1' +o* ()" ?&*0+.7 #(!/(.).)/ (/)1 .) 1' &!1.2.&(1.o)
*&1.o)6 the nion shold garner the ,(Co!.1$ 7o1 o2 1' 7(*." 7o1+ &(+1.
&. R0)Bo22 *&1.o). I &t refers to an election bet!een the labor nions receiving the t!o (1) highest nmber of
votes in a certification election or consent election !ith three (7) or more choices$ !here sch a certification
election or consent election reslts in none of the three (7) or more choices receiving the ma:ority of the valid
votes cast$ provided that the total nmber of votes for all contending nions is at least fifty percent (/.N) of
the nmber of votes cast%
". RB!0) *&1.o). B This mode of choosing the sole and e8clsive bargaining nit is not e8pressly provided in
the Labor Code or in its implementing rles% The circmstances !hich !old :stify the holding of a re#rn
election are not set ot in the la!% =o!ever$ a re#rn election may be :stified if certain irreglarities have
been committed dring the condct of the certification election sch as$ inter alia$ ".+)2!()&'.+,)1 o2
1' 7o1!+6 *(&3 o2 +&!&$ .) 1' 7o1.)/ ()" #!.#!$6 in !hich case$ the certification election shold be
invalidated% *ch invalidation !old necessitate the condct of a re#rn election among the contending
nions to determine the tre !ill and desire of the employee#electorates%
E?(,-*% National &ederation of 7abor v. 'he Secretary of 7abor$ H2%)% -o% 1.,//6$ Jarch 4$ 1443$ 13>
*C)A /44$ 6.>I%[4"
A certification election !as condcted on -ovember 11$ 1433$ among the ran"#and#file employees of the =i:o Plantation$ &nc% reslting in
the choice of ?no nion%@ =o!ever$ on 0ly 7$ 1434$ on allegations that the company intervened in the election$ the BL) 5irector nllified
the reslts of the certification election and ordered a ne! one to be held% The ne! election !as held on Agst 1.$ 1434 nder the
spervision of the 5ALE )egional Affice in 5avao City !ith the follo!ing reslts( Total Cotes cast # 16012+ Associated Trade Knions (ATK)
9 3E votes+ T)K*T G&LK*A- # 4 votes+ -ational 6ederation of Labor (-6L) 9 D8A votes+ *othern Philippines 6ederation of Labor
9 5 votes+ *A-5&2A- 9 A votes+ K6< 9 14 votes+ -o Knion 9 44 votes+ and &nvalid votes 9 13%
Private respondent#employer =P& alleged that the certification election !as marred by ,(++.7 2!(0" ()" .!!/0*(!.1.+ and that ot
of 16AE2eligible voters$ E13$ representing 45N of the ran"#and#file !or"ers of private respondent$ !ere not able to vote$ reslting in a
failre of election% Kpon the order of the 5ALE *ecretary$ the Jed#Arbiter condcted an investigation on the company’s claim that /,N of
the ran"#and#file !or"ers !ere not able to vote in the certification election%
&n a resoltion dated 6ebrary 1,$ 1441$ the 5ALE pheld the Agst 1.$ 1434 certification election% The 5ALE gave no !eight to the
report of the Jed#Arbiter that the certification election !as marred by massive frad and irreglarities% Althogh affidavits !ere sbmitted
sho!ing that the election !as held otside the company premises and private vehicles !ere sed as ma"eshift precincts$ the 5ALE fond
that this !as becase respondent company did not allo! the se of its premises for the prpose of holding the election$ company gards
!ere allegedly instrcted not to allo! parties$ voters and 5ALE representation officers to enter the company premises$ and notice !as
posted on the door of the company that the election had been postponed%
-or !as !eight given to the findings of the Jed#Arbiter that a ma:ority of the ran"#and#file !or"ers had been disfranchised in the Agst
1.$ 1434 election and that the secrecy of the ballot had been violated$ first$ becase the -6L !as not given notice of the investigation nor
the chance to present its evidence to dispte this finding and$ second$ the Jed#Arbiter’s report !as not spported by the mintes of the
proceedings nor by any record of the intervie!s of the 71/ !or"ers% Joreover$ it !as pointed ot that the report did not state the names of
the persons investigated$ the 'estions as"ed and the ans!ers given% The 5ALE held that the report !as ?totally baseless%@
Accordingly$ the Labor *ecretary denied the petition to annl the election and instead certified petitioner -6L as the sole and e8clsive
bargaining representative of the ran"#and#file employees of private respondent =P&%
=o!ever$ on motion of =P&$ the *ecretary of Labor$ on Agst 14$ 1441$ reversed his resoltion of 6ebrary 1,$ 1441% &n this resoltion of
Agst 14$ 1441$ the *ecretary of Labor said he !as reversing his earlier resoltion becase ?!or"ers of =i:o Plantation$ &nc% have
delged this Affice !ith their letter#appeal$ either made singly or collectively e8pressing their !ish to have a ne! certification election
condcted@ and that as a reslt ?the firm position !e held regarding the integrity of the electoral e8ercise had been some!hat eroded by
this recent declaration of the !or"ers$ no! spea"ing in their sovereign capacity%@
&n pholding this reversal of his earlier resoltion by the 5ALE *ecretary$ the *preme Cort ratiocinated$ ths(
?&t is clear from this$ that !hat the 5ALE *ecretary considered in reversing its earlier rlings !as not the petition
of the employer bt the letter#appeals that the employees sent to his office denoncing the irreglarities committed dring
the Agst 1.$ 1434 certification election%The petition of private respondent !as simply the occasion for the employees to
voice their protests against the election% Private respondent =P& attached to its *pplemental Appeal filed on *eptember /$
1434 the affidavits and appeals of more or less >3, employees !ho claimed that they had been disfranchised$ as a reslt
of !hich they !ere not able to cast their votes at the Agst 1.$ 1434 election% &t !as the protests of employees !hich
moved the 5ALE to reconsider its previos resoltion of 6ebrary 1,$ 1441$ pholding the election%
888
?&n this case$ petitioner maintains that private respondent did not ma"e any protest regarding the alleged
irreglarities (e%g%$ massive disfranchisement of employees) dring the election% =ence$ the appeal and motions for
reconsideration of private respondent =P& shold have been dismissed smmarily%
?The complaint in this case !as that a nmber of employees !ere not able to cast their votes becase they !ere
not properly notified of the date% They cold not therefore have filed their protests !ithin five (/) days% At all events$ the
*olicitor 2eneral states$ that the protests !ere not filed !ithin five (/) days$ is a mere technicality !hich shold not be
allo!ed to prevail over the !or"ers’ !elfare% As this Cort stressed in LC- Pictres$ &nc% v% Phil% Jsicians 2ild$ H1 *C)A
171 (1461)I$ it is essential that the employees mst be accorded an opportnity to freely and intelligently determine !hich
labor organi;ation shall act in their behalf% The !or"ers in this case !ere denied this opportnity% -ot only !ere a
sbstantial nmber of them disfranchised$ there !ere$ in addition$ allegations of frad and other irreglarities !hich pt in
'estion the integrity of the election% <or"ers !rote letters and made complaints protesting the condct of the election% The
)eport of Jed#Arbiter Pra !ho investigated these allegations fond the allegations of frad and irreglarities to be tre%
?&n one case (citing *onfederation of *iti2ens Labor =nions '. Noriel, 0.,. No. L->?@!. Septe"ber 1, 1@8,
11? S*,A ?@A)$ this Cort invalidated a certification election pon a sho!ing of disfranchisement$ lac" of secrecy in the
voting and bribery% <e hold the same in this case% The !or"ers’ right to self#organi;ation as enshrined in both the
Constittion and Labor Code !old be rendered ngatory if their right to choose their collective bargaining representative
!ere denied% &ndeed$ the policy of the Labor Code favors the holding of a certification election as the most conclsive !ay
of choosing the labor organi;ation to represent !or"ers in a collective bargaining nit% &n case of dobt$ the dobt shold be
resolved in favor of the holding of a certification election%@
<RB!0)= *&1.o) ".+1.)/0.+'" 2!o, <2(.*0!= o2 *&1.o). B &n !B!0) *&1.o)$ there !as a valid
certification election bt becase of certain circmstances$ the election is nllified and another one is ordered
to trly reflect the !ill and sentiment of the electorate#employees in the choice of their bargaining
representative% &n 2(.*0! o2 *&1.o)$ the nmber of votes cast in the certification or consent election is less
than the ma:ority of the nmber of eligible voters and there are no challenged votes that cold materially
change the reslts of the election%[;" Conse'ently$ a motion for the immediate holding of another
certification or consent election !ithin +.? (A) ,o)1'+ from the date of declaration of the failre of election
may be filed%[@"
. Co)+)1 *&1.o). B &t refers to the process of determining throgh secret ballot the sole and e8clsive
representative of the employees in an appropriate bargaining nit for prposes of collective bargaining or
negotiation% &t is volntarily agreed pon by the parties$ !ith or !ithot the intervention of the 5epartment of
Labor and Employment%
• Co)+)1 *&1.o) ()" &!1.2.&(1.o) *&1.o)6 ".+1.)/0.+'". B A consent election is one mtally
agreed pon by the parties$ !ith or !ithot the intervention by the 5ALE$ its prpose being merely to
determine the isse of ma:ority representation of all the !or"ers in an appropriate collective bargaining nit+
!hile a certification election is one !hich is ordered by the 5ALE and is aimed at determining the sole
and e8clsive bargaining agent of all the employees in an appropriate bargaining nit for the prpose of
collective bargaining% 6rom the very natre of consent election$ it is a separate and distinct process and
has nothing to do !ith the import and effect of a certification election% &n fact$ a&o)+)1 election may be
condcted even dring the pendency of a &!1.2.&(1.o) election by mtal agreement of the contending
nions% Conse'ently$ the Jed#Arbiter is not allo!ed to isse a formal order calling for the condct of a
certification election% &nstead$ he shold enter the fact of the agreement in the mintes of the hearing !hich
shold then be signed by the parties and attested to by the Jed#Arbiter% The reslts thereof shall constitte
a #(! to the holding of a certification election for o) (1) $(! from the holding of sch consent election%
<here an appeal has been filed from the reslts of the consent election$ the rnning of the one#year period
is sspended ntil the decision on appeal has become final and e8ectory%
4. A22.*.(1.o) o2 1' *o&(* 0).o) w.1' ( ,o1'! 0).o). B Affiliation !ith a federation or a national nion is principally
for the prpose of strengthening the collective bargaining leverage of the (22.*.(1% An <(22.*.(1= refers to (a)
anindependent union affiliated !ith a federation or a national nion+ or (b) a local chapter (formerly "no!n as
?chartered local@) !hich has been sbse'ently granted .)"-)")1 !/.+1!(1.o) bt did not disaffiliate from
the federation or national nion !hich created it% Technically$ a local chapter created throgh chartering nder
Article 17,#A of the Labor Code cannot be properly called an <(22.*.(1= of a federation or a national nion if it
has not ac'ired any .)"-)")1 !/.+1!(1.o) of its o!n%
• So, -!.)&.-*+ o) (22.*.(1.o).
1% The relationship bet!een the affiliate nion (independent nion) and the mother nion (federation or
national nion) is that of -!.)&.-(*B(/)1 !*(1.o)+'.-% T' (22.*.(1 0).o) .+ 1' -!.)&.-(* ()" 1'
,o1'! 0).o)6 1' (/)1.

This principle applies in the case of a local chapter created by a federation or a
national nion%
1% Affiliation does not give the mother federation the license to act independently of the affiliate nion% &t only
gives rise to a contract of agency$ !here the former acts in representation of the latter%
7% The appendage of the federation’s acronym to the affiliate nion’s name in the registration !ith the Brea
of Labor )elations does not change the principal#agent relationship bet!een them% *ch inclsion of the
acronym is merely to indicate that the local nion is affiliated !ith the federation or national nion at the
time of the registration% &t does not mean that the affiliate nion cannot independently stand on its o!n%
A. D.+(22.*.(1.o) o2 1' *o&(* 0).o) 2!o, 1' ,o1'! 0).o). I The right of the affiliate nion to disaffiliate from its
mother federation or national nion is a constittionally#garanteed right !hich may be invo"ed by the former (1
()$ 1.,% An affiliate nion is a separate and volntary association free to serve the interest of all its members #
consistent !ith the freedom of association garanteed in the Constittion%
• So, -!.)&.-*+ o) ".+(22.*.(1.o).
1% 5isaffiliation shold be approved by the ma:ority of the nion members%
1% 5isaffiliation does not divest an affiliate nion of its legal personality%
7% 5isaffiliation of an affiliate nion is not an act of disloyalty%
,% 5isaffiliation for prposes of forming a ne! nion does not terminate the stats of the members thereof as
employees of the company%
/% 5isaffiliation terminates the right to chec"#off federation des%
6% 5isaffiliation does not affect CBA% &t does not operate to amend it or change the administration of the
contract%
8. S0#+1.101.o)(!$ "o&1!.). I A1 ()$ 1., "0!.)/ 1' 4B$(! *.21., o2 1' CBA6 the bargaining agent may
lose its ma:ority stats as !hen there e8ists a 0).o) +&'.+, o! +-*.1 !hich completely changes the sitation of
the employer and the bargaining agent in terms of the latter’s membership$ strctre and others% To determine
ma:ority spport of the members of the bargaining nit being represented by the bargaining agent$ a petition for
certification election may be filed to determine !hich of the nions has the ma:ority stats% The nion certified as
the ne! sole and e8clsive bargaining agent !ill ths +0#+1.101 the previos one as a party to the e8isting
CBA% This is allo!ed nder this doctrine%
D. U).o) "0+ ()" +-&.(* (++++,)1+. B All nions are athori;ed to collect reasonable amonts
for ,,#!+'.- 2+6 0).o) "0+6 (++++,)1+ ()" 2.)+% This is done throgh <&'&3Bo22= !hich is the
method of dedcting by the employer from the employee’s pay at prescribed periods$ of any amont de for
sch fees$ fines or assessments%
R>0.!,)1+ 2o! 7(*.".1$. I To be valid$ the follo!ing re'isites shold be complied !ith(
(1) Athori;ation by a w!.11) !+o*01.o) o2 1' ,(Co!.1$ o2 (** 1' ,,#!+ at a general membership
meeting dly called for the prpose+
(1) *ecretary’s !&o!" o2 1' ,.)01+ of said meeting+ and
(7) I)".7."0(* w!.11) (01'o!.;(1.o)+ for chec"#off dly signed by the employees concerned%
The la! strictly prohibits the chec"#off from any amont de an employee of any special assessment$ attorney’s
fees$ negotiation fees or any other e8traordinary fees w.1'o01 1' .)".7."0(* w!.11) (01'o!.;(1.o) dly signed
by the employee% *ch athori;ation mst specifically state the amont$ prpose and beneficiary of the
dedction% The prpose of the individal !ritten athori;ation is to protect the employees from n!arranted
practices that diminish their compensation !ithot their "no!ledge or consent%
E. A/)&$ 2+. I This term refers to the reasonable des and other fees that may be collected by
the #(!/(.).)/ (/)1from )o)B,,#!+ !ho availed of the benefits from the CBA !hich
said (/)1 sccessflly negotiated and conclded !ith the employer% &t is called ?(/)&$ fee@ becase it is paid
to sch ?bargaining (/)1@ of !hich they are not members bt !hich represented them in the CBA negotiations%
The */(* #(+.+ of the bargaining agent’s right to agency fees is).1'! &o)1!(&10(* )o! +1(101o!$6 #01 >0(+.B
&o)1!(&10(*$ deriving from the established principle that non#bargaining nion employees may )o1 0)C0+1*$
)!.&' 1',+*7+ by benefiting from employment conditions negotiated by the bargaining agent%
• So, -!.)&.-*+ o) (/)&$ 2+.
1% -o individal !ritten athori;ation is re'ired to chec"#off agency fees% The fact of acceptance by the non#
bargaining agent members is all that is re'ired to :stify sch chec"#off of agency fees%
1% Employer has the dty to chec"#off agency fees%
7% -on#members of the bargaining agent need not become members thereof% Their acceptance of the benefits
flo!ing from the CBA and their act of paying the agency fees do not ma"e them members thereof%
B. RIGHT TO COLLECTIVE BARGAINING.
1. D01$ 1o #(!/(.) &o**&1.7*$. B The dty to bargain collectively means the performance of a ,010(* o#*./(1.o)
1o ,1 and convene promptly and e8peditiosly .) /oo" 2(.1' for the prpose of )/o1.(1.)/ ()
(/!,)1 !ith respect to !ages$ hors of !or" and all other terms and conditions of employment inclding
proposals for ad:sting any/!.7()&+ or 'estions arising nder sch agreement and e8ecting a contract
incorporating sch agreements if re'ested by either party #01 +0&' "01$ "o+ )o1 &o,-* ()$ -(!1$ 1o
(/! 1o ( -!o-o+(* o! 1o ,(3 ()$ &o)&++.o).
(() W') 1'! .+ (#+)& o2 CBA. B &n the absence of an agreement or other volntary arrangement
providing for a more e8peditios manner of collective bargaining$ it shall be the dty of employer and the
representatives of the employeesto#(!/(.) &o**&1.7*$ in accordance !ith the provisions of the Labor
Code%
(#) W') 1'! .+ ( CBA. B <hen there is a CBA$ the dty to bargain collectively shall mean that neither party
shall terminate nor modify sch agreement dring its lifetime% =o!ever$ either party can serve a !ritten
notice to terminate or modify the agreement (1 *(+1 +.?1$ (A0) "($+ -!.o! 1o .1+ ?-.!(1.o) "(1% &t shall be
the dty of both parties to "eep the +1(10+ >0o and to contine in fll force and effect the terms and
conditions of the e8isting agreement dring the 6.#day period andFor ntil a ne! agreement is reached by
the parties% The said 6. days is called the <2!"o, -!.o"=becase it is the only time !hen the la! allo!s
the parties to freely serve a notice to terminate$ alter or modify the e8isting CBA% &t is also the time !hen the
ma:ority stats of the bargaining agent may be challenged by another nion by filing the appropriate petition
for certification election%
2. Co**&1.7 B(!/(.).)/ A/!,)1 (CBA). I &t refers to the negotiated contract bet!een a
dly !&o/).;" or&!1.2." e8clsive bargaining agent of !or"ers and the employer concerning !ages$ hors
of !or" and all other terms and conditions of employment in the appropriate bargaining nit$ inclding mandatory
provisions for grievances and arbitration machineries%

5ring its lifetime$ the CBA is considered the *(w
#1w) 1' -(!1.+ # the collective bargaining agent and its members$ on the one hand$ and the employer$ on
the other%
(. M()"(1o!$ -!o7.+.o)+ o2 CBA. I The follo!ing are mandatorily re'ired to be embodied in the CBA(
(1) G!.7()& P!o&"0!. I &t refers to the internal rles of procedre established by the parties in their CBA
!ith volntary arbitration as the terminal step$ !hich are intended to resolve all isses arising from (1) the
interpretation or implementation of their CBA or (1) the interpretation or enforcement of company
personnel policies% &t is that part of the CBA !hich provides for a peacefl !ay of settling differences and
misnderstanding bet!een the parties%
(2) Vo*0)1(!$ A!#.1!(1.o). I &t refers to the mode of settling labor#management disptes in !hich the parties
select an impartial third person called <Vo*0)1(!$ A!#.1!(1o!= !ho is tas"ed to decide on the merits of the
case and !hose decision is final and e8ectory%
(3) No S1!.3BNo6 Lo&3o01 C*(0+. I &t is a clase in the CBA !hich indicates the respective commitments of
the parties thereto not to stage a stri"e$ on the part of the nion$ and not to condct a loc"ot$ on the part
of the employer$ dring the lifetime of the CBA% This clase may be invo"ed
to #(! an &o)o,.& stri"eFloc"ot bt )o1 () 0)2(.! *(#o! -!(&1.& stri"eFloc"ot%
(5) L(#o!BM()(/,)1 Co0)&.*. I &t is mandated to be created in every establishment prsant to the
constittional grant[+" to employees of the !./'1 1o -(!1.&.-(1 .) -o*.&$ ()" "&.+.o)B,(3.)/
-!o&+++ in all matters affecting their rights$ dties$ benefits and !elfare% &t is composed of
representatives of the employer and the employees of the establishment%
• D.+1.)&1.o)+ #1w) L(#o!BM()(/,)1 Co0)&.* (LMC) ()" G!.7()& Co,,.11 (GC). # These
t!o (1) bodies may be differentiated from each other as follo!s(
1% Co)+1.101.o)(* #(+.+. 9 As distingished from LJC$ the creation of the 2C is based on a different
constittional principle$ that is$ the preferential se of volntary modes of settling disptes%[E"
1% L/(* #(+.+. # The creation of LJC is provided nder Article 1// of the Labor Code+ !hile the
formation of 2C is mandated nder Article 16. of the same Code%
7% P0!-o+. # The LJC is created for the prpose of affording !or"ers the right to participate in policy
and decision#ma"ing processes in matters affecting their rights$ benefits and !elfare+ !hile that of
the 2C is to resolve grievances involving (1) the interpretation or implementation of the CBA or
(1) the interpretation or enforcement of company personnel policies%
,% N(10!. B The LJC is more of a preventive measre+ !hile a 2C is necessary !hen there is already
the occrrence of a grievance ripe for ad:dication%
/% C*(++.2.&(1.o) o2 1' +1(#*.+',)1. 9 The classification of the establishment$ !hether organi;ed or
norgani;ed$ is not material as far as LJC is concerned since it is re'ired to be established in all
establishments+ !hile the 2C is re'ired only in case of organi;ed establishments since it is re'ired
to be stiplated in the CBA%
6% F0)&1.o). 9 The fnction of the LJC is non#ad:dicatory in natre$ that is$ to ma"e policies or
decisions on matters affecting the !or"ers’ rights$ benefits and !elfare+ !hile that of the 2C is
ad:dicatory in character$ that is$ to resolve and decide on grievances%
>% N(10! o2 .++0+. 9 The isses presented to the LJC is non#adversarial+ !hile those sbmitted to
the 2C are adversarial%
3% Co,-o+.1.o). # The representatives of the !or"ers to the LJC may or may not be nominated by the
bargaining agent$ depending on !hether the establishment is organi;ed or norgani;ed%
&n orani2ed +1(#*.+',)1+$ the !or"ers’ representatives to the LJC shold be nominated by the
e8clsive bargaining agent% &n +1(#*.+',)1+ w'! no leitimate labor orani2ation exists$
the !or"ers’ representative shold be elected directly by the employees at large+ !hile those in the
2C are nominated solely by the bargaining agent%
4% ?A--(*+.= 9 Any decision made by the LJC is not ?appealable@ to any office or athority+ !hile the
decision of the 2C shold be elevated to volntary arbitration if not resolved !ith finality by the 2C%
#. D0!(1.o) o2 CBA. I A CBA has a lifetime of 4 $(!+ rec"oned 2!o, 1' 22&1.7.1$ o2 1' CBA% The
follo!ing principles are !orthy of note(
1% As far as the right of the bargaining agent to represent the employees covered by the bargaining nit
(representation aspect of the CBA) 9 4 $(!+.
1% A** o1'! -!o7.+.o)+ of the CBA (#o1' &o)o,.& ()" )o)B&o)o,.& -!o7.+.o)+) 9 *hold be re#
negotiated$ ?&-1 +(." !-!+)1(1.o) (+-&16 after the lapse of the 2.!+1 3 $(!+ o2 1' 4B$(!
*.21., thereof% *ch re#negotiation$ ho!ever$ shold only pertain to the terms and conditions of the
parties’ relationship for the *(+1 !,(.).)/ 2 $(!+ of the CBA’s /#year term%
7% F!"o, -!.o" 9 refers to the *(+1 A0 "($+ .,,".(1*$ -!&".)/ 1' ?-.!$ "(1 o2 1' 4B$(! 1!,
o2 1' CBA !hen the ma:ority stats of the e8isting bargaining agent !hich conclded the CBA may be
challenged by another nionFs by filing a petition for certification election%
3. U).o) +&0!.1$ &*(0+. I &t is a stiplation in a CBA !hich re'ires mandatory membership in the sole and
e8clsive collective bargaining agent !hich sccessflly negotiated said CBA as a condition for contined
employment% The-0!-o+ of a nion secrity arrangement is to garantee the contined e8istence of the nion
throgh )2o!&" ,,#!+'.- for the benefit of the !or"ers% A** 2010! '.!+ ()w ,-*o$+) are
mandatorily re'ired to :oin the bargaining agent as a condition for their contined employment%
E?&-1" from this provision are the follo!ing(
1% Employees !ho$ at the time the nion secrity agreement ta"es effect$ are bona-fide members of
a !*./.o0+organi;ation !hich prohibits its members from :oining labor nions on religios
gronds JR*./.o0+ O#C&1o!+K.
1% Employees already in the service and (*!("$ ,,#!+ o2 ( 0).o) o1'! 1'() 1' #(!/(.).)/ (/)1 at the
time the nion secrity agreement too" effect%
7% Co)2.")1.(* ,-*o$+ !ho are ?&*0"" from the ran"#and#file or spervisory bargaining nit%
,% Employees ?&*0"" from the nion secrity clase by ?-!++ terms of the agreement%
C*(++.2.&(1.o) o2 0).o) +&0!.1$ (/!,)1+.
1% C*o+" +'o- (/!,)1 B &t is a scheme in !hich$ by agreement bet!een the employer and its employees
or their representatives$ no person may be employed in any or certain agreed departments of the enterprise
nless he or she is$ becomes$ and$ for the dration of the agreement$ remains a member in good standing of
a nion entirely comprised of or of !hich the employees in interest are a part%
1% U).o) +'o- (/!,)1 B There is nion shop !hen all ne! reglar employees are re'ired to :oin the nion
!ithin a certain period as a condition for their contined employment% The role of a Knion *hop provision is to
compel the membership of those !ho are not yet nion members% Knder this scheme$ the employer is given
the freedom to hire and employ any person !ho is not a member of the bargaining agent% Ance sch person
becomes an employee$ he is re'ired to become a member of the bargaining agent and to remain as sch
member in good standing for the !hole period of the effectivity of the CBA as a condition for his contined
employment%
7% Mo".2." 0).o) +'o- (/!,)1 B Employees nder this arrangement !ho are not nion members at the
time of the signing or e8ection of the CBA are not re'ired to :oin the bargaining nion% =o!ever$ any and all
!or"ers hired or employed after the signing or e8ection of the CBA are re'ired to :oin the bargaining nion%
,% M(.)1)()& o2 ,,#!+'.- (/!,)1 B There is maintenance of membership shop !hen employees$
!ho are nion members as of the effective date of the agreement$ or !ho thereafter become members$ mst
maintain nion membership as a condition for contined employment ntil they are promoted or transferred
ot of the bargaining nit$ or the agreement is terminated%
5. U)2(.! L(#o! P!(&1.& (ULP) .) Co**&1.7 B(!/(.).)/.
(1) B(!/(.).)/ .) #(" 2(.1'. I Bad faith is a 'estion of fact the determination of !hich !ill depend pon the
circmstances of each case% 2ood faith bargaining re'ires that claims made by either bargainer shold be
honest claims% &t !old not be far#fetched to reach the conclsion that bargaining lac"s good faith !hen an
employer mechanically repeats claim of inability to pay !ithot ma"ing the slightest effort to sbstantiate the
claim% Ance proved$ the bad faith of the party !ill ma"e it liable for KLP% &t mst be noted that(
a%Parties have no obligation to precipitately agree to the proposals of each other%
b% Ja"ing a promise dring the CBA negotiations$ not an indication of bad faith%
c% Adamant stance reslting in an impasse$ not an indicim of bad faith%
d% Allegations of bad faith !iped ot !ith the signing of the CBA%
(2) R20+(* 1o #(!/(.). B The employer’s refsal to sbmit an ans!er or reply to the !ritten bargaining
proposals of the certified bargaining nion is KLP% <hile the la! does not compel the parties to reach an
agreement$ it does contemplate that both parties !ill approach the negotiation !ith an open mind and ma"e
a reasonable effort to reach a common grond of agreement%
E?(,-*+%
G)!(* M.**.)/ Co!-o!(1.o) 7. CA6 JG.R. No. 15A82D6 F#!0(!$ 116 2005K # The *preme Cort fond
the petitioner gilty of KLP for refsing to send a conter#proposal to the nion and to bargain ane! on the
economic terms of the CBA%
Co*/.o " S() F0() " L1!() 7. A++o&.(1.o) o2 E,-*o$+ ()" F(&0*1$ o2 L1!()6 JG.R. No. 1515816
S-1,#! 1D6 2000K B The petitioner school !as declared gilty of nfair labor practice !hen it failed to
ma"e a timely reply to the proposals of the certified bargaining nion more than a month after the same
!ere sbmitted to it% &n e8plaining its failre to reply$ the school merely offered the feeble e8cse that its
Board of Trstees had not yet convened to discss the matter% Clearly$ its actation sho!ed a lac" of
sincere desire to negotiate the CBA thereby rendering it gilty of an nfair labor practice%
(3) I)".7."0(* #(!/(.).)/. I The employer’s act of negotiating !ith individal members of the bargaining agent
is KLP% This is so becase once a bargaining agent has been recogni;ed or certified$ the employer shold
bargain only there!ith and not !ith the individal members thereof%
(5) B*0 +3$ #(!/(.).)/. B This means ma"ing e8aggerated or nreasonable proposals% This "ind of KLP can
only be committed by the #(!/(.).)/ (/)1%
(4) S0!2(& #(!/(.).)/. B This means ?going throgh the motions of negotiating@ !ithot any legal intent to
reach an agreement% This "ind of KLP can only be committed by the ,-*o$!%
4. U)2(.! L(#o! P!(&1.&. I -ot all nfair acts constitte KLP% The act complained of as KLP mst have a
pro8imate and casal connection !ith the e8ercise of the employees’ !./'1 1o +*2Bo!/().;(1.o) ()" &o**&1.7
#(!/(.).)/ o! 1o 1' o#+!7()& o2 ( CBA. *ans this connection$ the nfair acts cannot be considered KLP%
(() N(10! o2 ULP. B &t is both &.7.* and &!.,.)(* in natre% &ts civil aspect incldes claims for actal$ moral and
e8emplary damages$ attorney’s fees and other affirmative reliefs% The Labor Arbiters have :risdiction over
the civil aspect+ !hile the reglar corts have :risdiction over the criminal aspect%
(#) ULP+ o2 ,-*o$!+. I The follo!ing are the KLPs of employers nder Article 1,3 of the Labor Code(
(a) To interfere !ith$ restrain or coerce employees in the e8ercise of their right to self#organi;ation+
(b) To re'ire as a condition of employment that a person or an employee shall not :oin a labor organi;ation
or shall !ithdra! from one to !hich he belongs (YELLOW DOG CONTRACT)+
(c) To contract ot services or fnctions being performed by nion members !hen sch !ill interfere !ith$
restrain or coerce employees in the e8ercise of their rights to self#organi;ation
(CONTRACTUALIOATION)+
(d) To initiate$ dominate$ assist or other!ise interfere !ith the formation or administration of any labor
organi;ation$ inclding the giving of financial or other spport to it or its organi;ers or
spporters (COMPANY UNION)+
(e) To discriminate in regard to !ages$ hors of !or" and other terms and conditions of employment in order
to encorage or discorage membership in any labor organi;ation (DISCRIMINATION)%
-othing in this Code or in any other la! shall stop the parties from re'iring membership in a
recogni;ed collective bargaining agent as a condition for employment$ e8cept those employees !ho are
already members of another nion at the time of the signing of the collective bargaining
agreement (UNION SECURITY)%
Employees of an appropriate bargaining nit !ho are not members of the recogni;ed collective
bargaining agent may be assessed a reasonable fee e'ivalent to the des and other fees paid by
members of the recogni;ed collective bargaining agent$ if sch non#nion members accept the benefits
nder the collective bargaining agreement( .ro'ided,that the individal athori;ation re'ired nder
Article 1/. H1,1I$ paragraph (o) of this Code shall not apply to the non#members of the recogni;ed
collective bargaining agent (AGENCY FEE)
(f) To dismiss$ discharge or other!ise pre:dice or discriminate against an employee for having given or
being abot to give testimony nder this Code (THIS IS THE ONLY ULP WHICH NEED NOT BE
CONNECTED TO THE EXERCISE OF THE EMPLOYEES OF THEIR RIGHT TO SELFB
ORGANIOATION AND COLLECTIVE BARGAINING)+
C4#!097#'93 <7.s:
(g) To violate the dty to bargain collectively as prescribed by the Labor Code+
(h) To pay negotiation or attorney’s fees to the nion or its officers or agents as part of the settlement of any
isse in collective bargaining or any other dispte+ or
(i) To violate a CBA bt only !hen the violation is </!o++= in character !hich means flagrant andFor
malicios refsal by the,-*o$! to comply !ith the &o)o,.& provisions of the CBA%
(&) ULP+ o2 *(#o! o!/().;(1.o)+. I Knder Article 1,4 of the Labor Code$ it shall be nfair labor practice for a
labor organi;ation$ its officers$ agents or representatives(
(a) To restrain or coerce employees in the e8ercise of their right to self#organi;ation% =o!ever$ a labor
organi;ation shall have the right to prescribe its o!n rles !ith respect to the ac'isition or retention of
membership+
(b) To case or attempt to case an employer to discriminate against an employee$ inclding discrimination
against an employee !ith respect to !hom membership in sch organi;ation has been denied or to
terminate an employee on any grond other than the sal terms and conditions nder !hich
membership or contination of membership is made available to other members+
(c) To violate the dty$ or refse to bargain collectively !ith the employer$ provided it is the representative of
the employees+
(d) To case or attempt to case an employer to pay or deliver or agree to pay or deliver any money or other
things of vale$ in the natre of an e8action$ for services !hich are not performed or not to be
performed$ inclding the demand for fee for nion negotiations (ANTIBFEATHER BEDDING)+
(e) To as" for or accept negotiation or attorney’s fees from employers as part of the settlement of any isse
in collective bargaining or any other dispte+ or
(f) To violate a CBA bt only !hen the violation is </!o++= in character !hich means flagrant andFor
malicios refsal by the*(#o! o!/().;(1.o)6 .1+ o22.&!+6 (/)1+ o! !-!+)1(1.7+ to comply !ith
the &o)o,.& provisions of the CBA%
C. RIGHT TO PEACEFUL CONCERTED ACTIVITIES.
1. Fo!,+ o2 Co)&!1" A&1.7.1.+. B There are three (7) forms of concerted activities$ namely(
(() S1!.3 B means any temporary stoppage of !or" by the concerted action of the employees as a reslt of an
indstrial or labor dispte% &t encompasses slo!do!ns$ mass leaves$ sitdo!ns$ overtime boycott$ attempts to
damage$ destroy or sabotage plant e'ipment and facilities and similar activities and +-o!1.)/ #$ 1'
wo!3!+ o2 &*o+*$ &!o--" '(.! o! &*()*$ +'(7) '("+ (21! 1'.! 0).o) 2.*" ( )o1.& o2 +1!.3 (+ (
!+0*1 o2 ( CBA "("*o&3.D$E
(#) Lo&3o01 B means the temporary refsal of an employer to frnish !or" as a reslt of an indstrial or labor
dispte% &t consists of shtdo!ns$ mass retrenchment and dismissals or the employer’s act of e8clding
employees !ho are nion members%
(&) P.&31.)/ I means the act of !or"ers in peaceflly marching to and fro before an establishment involved in
a labor dispte generally accompanied by the carrying and display of signs$ placards and banners intended
to inform the pblic abot the dispte%
2. W'o ,($ "&*(! ( +1!.3P I Anly a dly recogni;ed or certified #(!/(.).)/ (/)1 may declare a stri"e% A
minority nion can never declare a stri"e% &n 0)o!/().;" establishments$ any legitimate labor organi;ation in
the establishment may declare a stri"e bt only on the grond of KLP%
3. W'o ,($ "&*(! ( *o&3o01P I The employer can declare a loc"ot%
5. R>0.+.1+ 2o! ( 7(*." +1!.3. I The follo!ing are the seven (>) procedral bt ,()"(1o!$ re'isites(
1+1 !>0.+.1 # &t mst be based on a valid and factal grond+
2)" !>0.+.1 # A notice of stri"e mst be filed !ith the -CJB#5ALE+
3!" !>0.+.1 # A notice mst be served to the -CJB#5ALE at least t!enty#for (1,) hors prior to the ta"ing of
the stri"e vote by secret balloting$ informing said office of the decision to condct a stri"e vote$ and the date$
place$ and time thereof+
51' !>0.+.1 # A stri"e vote mst be ta"en !here a ma:ority of the members of the nion obtained by secret
ballot in a meeting called for the prpose$ mst approve it+
41' !>0.+.1 # A stri"e vote report shold be sbmitted to the -CJB#5ALE at least seven (>) days before the
intended date of the stri"e+
A1' !>0.+.1 # E8cept in cases of nion#bsting$ the cooling#off period of 14 "($+$ in the case of 0)2(.! *(#o!
-!(&1.&+$ or 30 "($+$ in the case of &o**&1.7 #(!/(.).)/ "("*o&3$ shold be flly observed+ and
81' !>0.+.1 # The 8B"($ w(.1.)/ -!.o" o! +1!.3 #() rec"oned after the sbmission of a stri"e vote report to
the -CJB#5ALE shold also be flly observed in all cases%
4. R>0.+.1+ 2o! ( 7(*." *o&3o01. I The follo!ing are the seven (>) procedral bt ,()"(1o!$ re'isites(
1+1 !>0.+.1 # &t mst be based on a valid and factal grond+
2)" !>0.+.1 # A notice of loc"ot mst be filed !ith the -CJB#5ALE+
3!" !>0.+.1 # A notice mst be served to the -CJB#5ALE at least t!enty#for (1,) hors prior to the ta"ing of
the loc"ot vote by secret balloting$ informing said office of the decision to condct a loc"ot vote$ and the date$
place$ and time thereof+
51' !>0.+.1 # A loc"ot vote mst be ta"en !here a ma:ority of the members of the Board of 5irectors of the
corporation or association or of the partners in a partnership$ obtained by secret ballot in a meeting called for the
prpose$ mst approve it+
41' !>0.+.1 # A loc"ot vote report shold be sbmitted to the -CJB#5ALE at least seven (>) days before the
intended date of the loc"ot+
A1' !>0.+.1 # The cooling#off period of 1/ days$ in the case of nfair labor practices$ or 7. days$ in the case of
collective bargaining deadloc"$ shold be flly observed+ and
81' !>0.+.1 # The >#day !aiting period or loc"ot ban rec"oned after the sbmission of the loc"ot vote report
to the -CJB#5ALE shold also be flly observed in all cases%
A. R>0.+.1+ 2o! ( *(w20* -.&31.)/. IThe only re'isite for the la!fl condct of pic"eting is that it shold be
peaceflly carried ot% There shold be no violence$ coercion or intimidation attendant thereto% This is so
becase it is flly garanteed nder the freedom of speech and of e8pression and to peaceably assemble to air
grievances nder *ection ,$ Article &&& (Bill of )ights) of the constittion$ nli"e stri"e !hich finds its constittional
basis in the grant to !or"ers of the right to condct peacefl concerted activities nder *ection 7$ Article L&&&
thereof% T' !>0.+.1+ 2o! 1' &o)"0&1 o2 ( 7(*." +1!.3 (! 1'!2o! )o1 (--*.&(#* 1o *(w20* -.&31.)/.

W') -.&31 #&o,+ ( +1!.3. B &n distingishing bet!een a pic"et and a stri"e$ the totality of the
circmstances obtaining in a case shold be ta"en into accont%
E?(,-*+%
L$1 Go1'!,(* Pow! P!o/!++.7 E,-*o$+ U).o)BALUBTUCP 7. P'.*.--.) N(1.o)(* O.* Co,-()$ I E)!/$ D7*o-,)1
Co!-o!(1.o)6 JG.R. No. 1803416 M(!&' 306 2011K B Petitioner nion contends that there !as no stoppage of !or"+ hence$ they did not stri"e%
Ephemistically$ petitioner nion avers that it ?only engaged in pic"eting$@ and maintains that ?!ithot any !or" stoppage$ Hits officers and
membersI only engaged in 888 protest activity%@ The *preme Cort$ ho!ever$ rled that it !as a stri"e and not pic"eting or protest activity that
petitioner nion staged% &t fond the follo!ing circmstances in spport of sch finding(
1% Petitioner nion filed a -otice of *tri"e on 5ecember 13$ 1443 !ith the 5ALE gronded on respondent’s prported nfair labor
practices$ i.e.$Prefsal to bargain collectively$ nion bsting and mass termination%’ An even date$ petitioner Knion declared and staged a stri"e%
1% The 5ALE *ecretary intervened and issed a )etrn#to#<or" Arder dated 0anary ,$ 1444$ certifying the labor dispte to the -L)C for
complsory arbitration% The Arder indicated the follo!ing facts( (1) filing of the notice of stri"e+ (1) staging of the stri"e and ta"ing control over
respondent’s facilities of its Leyte 2eothermal Pro:ect on the same day petitioner nion filed the notice of stri"e+ (7) attempts by the -CJB to
forge a mtally acceptable soltion proved ftile+ (,) in the meantime$ the stri"e contined !ith no settlement in sight placing in :eopardy the
spply of mch needed po!er spply in the L;on and Cisayas grids%
7% Petitioner nion itself$ in its pleadings$ sed the !ord ?stri"e%@
,% Petitioner nion’s asseverations are belied by the factal findings of the -L)C$ as affirmed by the CA ths( ?The failre to comply !ith the
mandatory re'isites for the condct of stri"e is both admitted and clearly sho!n on record% =ence$ it is ndispted that no stri"e vote !as
condcted+ li"e!ise$ the cooling#off period !as not observed and that the >#day stri"e ban after the sbmission of the stri"e vote !as not
complied !ith since there !as no stri"e vote ta"en%@
&n fine$ petitioner nion’s bare contention that it did not hold a stri"e cannot trmp the factal findings of the -L)C that petitioner nion indeed
strc" against respondent% &n fact$ and more importantly$ petitioner nion failed to comply !ith the re'irements set by la! prior to holding a
stri"e%
S()1( Ro+( Co&(BCo*( P*()1E,-*o$+U).o) 7. Co&(BCo*( Bo11*!+P'.*+.6 I)&.6 JG.R. No+. 1A5302B036 F()0(!$ 256 2008K #
Petitionerscontendthat!hattheycondcted!as a mere pic"eting and not a stri"e% &n disagreeing to this contention$ the =igh Cort emphasi;ed
that it is not an isse in this case that there !as a labor dispte bet!een the parties as petitioners had notified the respondent of their intention
to stage a stri"e$ and not merely to pic"et% Petitioners’ insistence to stage a stri"e is evident in the fact that an amended notice of stri"e !as
filed even as respondent moved to dismiss the first notice% The basic elements of a stri"e are present in this case( 1.6 members of petitioner
Knion$ !hose respective applications for leave of absence on *eptember 11$ 1444 !ere disapproved$ opted not to report for !or" on said
date$ and gathered in front of the company premises to hold a mass protest action% Petitioners deliberately absented themselves and instead
!ore red ribbons and carried placards !ith slogans sch as( ?ME* GAJ& *A *T)&GE$@ ?P)ATE*TA GAJ&$@ ?*A=A5$ GA)APATA- -2
JA-22A2A<A &PA2LABA-$@ ?CBA#’<A2 BABAM&-$@ ?*TAP K-&A- BK*T&-2%@ They marched to and fro in front of the company’s
premises dring !or"ing hors% Ths$ petitioners engaged in a concerted activity !hich already affected the company’s operations% The mass
concerted activity obviosly constittes a stri"e% Joreover$ the bare fact that petitioners !ere given a Jayor’s permit is not conclsive
evidence that their actionFactivity did not amont to a stri"e% The Jayor’s description of !hat activities petitioners !ere allo!ed to condct is
inconse'ential% To repeat$ !hat is definitive of !hether the action staged by petitioners is a stri"e and not merely a pic"et is the totality of the
circmstances srronding the sitation%
8. A++0,-1.o) o2 C0!.+".&1.o) #$ 1' S&!1(!$ o2 L(#o! o! C!1.2.&(1.o) o2 1' L(#o! ".+-01 1o 1' NLRC
2o! &o,-0*+o!$ (!#.1!(1.o). B <hen in the opinion of the 5ALE *ecretary$ the labor dispte cases or !ill li"ely
to case a stri"e or loc"ot in an indstry indispensable to the national interest$ he is empo!ered to do either of
t!o (1) things(
1% =e may assme :risdiction over the labor dispte and decide it himself+ or
1%=e may certify it to the -L)C for complsory arbitration$ in !hich case$ it !ill be the -L)C !hich shall hear
and decide it%
This po!er may be e8ercised by the 5ALE *ecretary even before the actal staging of a stri"e or loc"ot
since Article 167 HgI does not re'ire the e8istence of a stri"e or loc"ot bt only of a labor dispte involving
national interest%
D. N(10! o2 A++0,-1.o) O!"! o! C!1.2.&(1.o) O!"!. B &t is in the natre of a -o*.& -ow! measre% This is
done for the promotion of the common good considering that a prolonged stri"e or loc"ot can be inimical to the
national economy% The 5ALE *ecretary is mandated to act to maintain indstrial peace% Ths$ his assming
:risdiction over a labor dispte or his certification thereof to the -L)C for complsory arbitration is not intended
to impede the !or"ers’ right to stri"e bt to obtain a speedy settlement of the dispte% &t is confined only in labor
disptes involving .)"0+1!.+ .)".+-)+(#* 1o 1' )(1.o)(* .)1!+1% A prolonged stri"e or loc"ot in sch
indstries can be inimical to the national economy and$ therefore$ the sitation is imbed !ith pblic necessity
and involves the right of the *tate and the pblic to self#protection%
• E22&1+ o2 &!1.2.&(1.o) o2 *(#o! ".+-01+ 1o 1' NLRC6 +.,.*(! 1o 1'o+ (++0," ".!&1*$ #$ 1' DOLE
S&!1(!$. B The follo!ing are the effects of both assmption or certification of labor disptes(
(. O) .)1)"" o! .,-)".)/ +1!.3 o! *o&3o01. Kpon assmption or certification$ the intended or impending
stri"e or loc"ot is atomatically en:oined$ not!ithstanding the filing of any motion for reconsideration of the
certification order or the non#resoltion of any sch motion !hich may have been dly sbmitted to the
Affice of the 5ALE *ecretary%
#. O) (&10(* +1!.3 o! *o&3o01. &f a !or" stoppage has already ta"en place at the time of the assmption or
certification$ all stri"ing or loc"ed#ot employees shall immediately retrn to !or" and the employer shall
immediately resme operations and readmit all !or"ers nder the same terms and conditions prevailing
before the stri"e or loc"ot%
&. O) &(++ (*!("$ 2.*" o! ,($ # 2.*". All cases bet!een the same parties$ e8cept !here the
assmption or certification order specifies other!ise$ the isses sbmitted for arbitration !hich are already
filed or may be filed and are relevant to or are proper incidents of the certified case$ shall be considered
sbsmed or absorbed by the assmed or certified case$ and shall be decided by the 5ALE *ecretary or$
in certified cases$ by the appropriate 5ivision of the -L)C%
". O) o1'! -)".)/ &(++. The parties to an assmed or certified case$ nder pain of contempt$ are
re'ired to inform their consels and the 5ALE *ecretary or -L)C 5ivision concerned$ of all cases
pending !ith the Labor Arbiters and Colntary Arbitrators relative or incident to the assmed or certified
case before it%
E. E22&1 o2 "2.()& o2 A++0,-1.o) o! C!1.2.&(1.o) O!"!+. B The defiance by the nion$ its officers and
members of the 5ALE *ecretaryEs assmption of :risdiction or certification order constittes a valid grond for
dismissal% The follo!ing are the :stifications for the defiant employees’ dismissal(
1% A stri"e that is nderta"en (21! the issance by the 5ALE *ecretary of an assmption or certification order
becomes a prohibited activity and ths illegal% The stri"ing nion o22.&!+ and ,,#!+$ as a reslt$ are
deemed to have lost their employment stats 2o! '(7.)/ 3)ow.)/*$ -(!1.&.-(1" .) () .**/(* +1!.3%
1% 6rom the moment a !or"er defies a retrn#to#!or" order$ he is deemed to have (#()"o)" '.+ Co#%
7% By staging a stri"e after the assmption or certification for complsory arbitration$ the !or"ers 2o!2.1 1'.!
!./'1 1o # !(",.11" 1o wo!3$ having$ in effect$ abandoned their employment%
• So, -!.)&.-*+ o) "2.()& o2 1' (++0,-1.o):&!1.2.&(1.o) o!"!.
1% All defiant stri"ers$ regardless of !hether they are officers or ordinary members$ are deemed dismissed%
1% The assmptionFcertification order may be served at any time of the day or night%
7% The refsal to ac"no!ledge receipt of sch orders and other processes is an apparent attempt to frstrate
the ends of :stice$ hence$ invalid% The nion cannot be allo!ed to th!art the efficacy of the assmption
and retrn#to#!or" orders issed in the national interest throgh the simple e8pediency of refsing to
ac"no!ledge receipt thereof%
,% Period of defiance$ not material+ defiance of less than one (1) day$ sfficient to effect termination of defiant
stri"ers%(U).7!+.1$ o2 S() A/0+1.) E,-*o$+9 U).o)BFFW 7. T' CA6 JG.R. No. 1AEA326 M(!&' 2D6
200AK$ the period of defiance !as from D%54 (.,. 1o 4%24 -.,. on S-1,#! 1E6 2003)%
10. I**/(* S1!.3. I &n case of illegal stri"e the liabilities are as follo!s(
(1) L.(#.*.1$ o2 o22.&!+ o2 1' 0).o)+. B The mere finding or declaration of illegality of a stri"e !ill reslt in the
termination of all nion officers !ho "no!ingly participated therein% &t is not re'ired that the officers shold
commit an illegal act dring the stri"e%
(2) L.(#.*.1$ o2 o!".)(!$ wo!3!+. I The mere finding or declaration of illegality of a stri"e !ill not reslt in
termination of ordinary nion members% 6or an ordinary nion member to sffer termination$ it mst be
sho!n that he has committed illegal acts dring the stri"e% Liability for illegal acts shold be determined on
an .)".7."0(* #(+.+% &n all cases$ the erring stri"ers mst be identified individally and the specific illegal
acts they each committed shold be described !ith particlarity%
(3) L.(#.*.1$ o2 ,-*o$!. I The employer is liable to pay bac"!ages$ damages and other affirmative reliefs$
inclding criminal prosection in case of defiance of retrn#to#!or" order%
(5) W(.7! o2 .**/(*.1$ o2 +1!.3. I The employer may !aive e8pressly or impliedly the illegality of the stri"e%
An employer may be considered to have !aived its right to proceed against the stri"ing employees for
alleged commission of illegal acts dring the stri"e !hen$ dring a conference before the Chairman of the
-L)C$ it agreed to reinstate them and comply flly !ith the retrn#to#!or" order issed by the 5ALE
*ecretary%[*"
11. I)C0)&1.o)+. I The rle is )o temporary or permanent in:nction or restraining order in any case involving or
gro!ing ot of labor disptes shall be issed by any cort or other entity$ ?&-1 as other!ise provided in
Articles 113 (referring to the in:nction po!er of the -L)C) and 16, (referring to the prohibited activities dring
a stri"e or loc"ot) of the same Code%
(() R>0.+.1+ 2o! L(#o! I)C0)&1.o)+. B A preliminary or permanent in:nction may be granted only after
hearing the testimony of !itnesses and !ith opportnity for cross#e8amination in spport of the allegations
of the complaint or petition made nder oath$ and testimony by !ay of opposition thereto$ if offered$ and
only after a finding of fact by the Commission (-L)C)(
(a) That prohibited or nla!fl acts have been threatened and !ill be committed and !ill be contined
nless restrained$ bt no in:nction or temporary restraining order shall be issed on accont of any
threat$ prohibited or nla!fl act$ ?&-1against the person or persons$ association or organi;ation
ma"ing the threat or committing the prohibited or nla!fl act or actally athori;ing or ratifying the
same after actal "no!ledge thereof%
(b) That sbstantial and irreparable in:ry to petitionerEs property !ill follo!+
(c) That as to each item of relief to be granted$ greater in:ry !ill be inflicted pon the petitioner by the
denial of relief than !ill be inflicted pon respondents by the granting of relief+
(d) That petitioner has no ade'ate remedy at la!+ and
(e) That the pblic officers charged !ith the dty to protect petitionerEs property are nable or
n!illing to frnish ade'ate protection%
C() 1' +1!.3 .1+*2 # )Co.)"P ! &n some cases$ in:nctions issed to en:oin the condct of the stri"e
itself and not only the commission of illegal or prohibited acts in the corse thereof$ !ere held to be valid%
S() M./0* Co!-o!(1.o) 7. NLRC6 JG.R. No. 11E2E36 F0) 106 2003K % # The *preme Cort rled that
in:nction may be issed not only against the commission of illegal acts in the corse of the stri"e bt
against the +1!.3 .1+*2% &n this case$ the notice of stri"e filed by the nion has been converted into a
preventive mediation case% =aving been so converted$ a stri"e can no longer be staged based on said
notice% Kpon sch conversion$ the legal effect is that there is no more notice of stri"e to spea" of% <hen the
-CJB ordered the preventive mediation$ the nion had therepon lost the notice of stri"e it had filed%
=o!ever$ the -CJB !hich effected the conversion has$ nder the la!$ no coercive po!ers of in:nction%
Conse'ently$ petitioner company in the instant case soght recorse from the -L)C% The -L)C$
ho!ever$ issed a T)A only for the free ingress to and egress from petitioner’s plants$ bt did not en:oin
the condct of the nla!fl stri"e itself% &t ignored the fatal lac" of notice of stri"e conse'ent to the
conversion thereof into a preventive mediation case% Article 16, HaI of the Labor Code e8plicitly states that
a declaration of stri"e !ithot first having filed the re'ired notice is a prohibited activity$ !hich may be
prevented throgh an in:nction in accordance !ith Article 1/, of the same Code% Clearly$ pblic
respondent shold have granted the in:nctive relief to prevent the grave damage broght abot by the
nla!fl stri"e%
S() M./0* Co!-o!(1.o) 7. NLRC6

JG.R. No. EE2AA6 M(!&' 26 1EEE6 305 SCRA 1K # &n this case$ the
same isse of -L)C’s dty to en:oin an nla!fl stri"e !as raised% The *preme Cort rled that the
-L)C committed grave abse of discretion !hen it denied the petition for in:nction to restrain the nion
from declaring a stri"e based on non#stri"eable gronds%
IL(w (1 B03*o")/M()//(/(w( JIBMK 7. NLRC6

JG.R. No. E1ED06 F0) 286 1EE16 1ED SCRA 4DAK # &t
!as held here that it is the ?legal dty and obligation@ of the -L)C to en:oin a partial stri"e staged in
violation of the la!% 6ailre to promptly isse an in:nction by the -L)C !as li"e!ise held therein to be an
abse of discretion%
(#) <I))o&)1 B$+1()"! R0*.= I This rle is applicable to -.&31.)/ !hich adversely affect third party#
employers or ?innocent bystanders@ not involved in the labor dispte% Knder this rle$ the third party#
employers !ho have no employer#employee relationship !ith the pic"eters$ may apply for in:nction
!ith the !/0*(! &o0!1+ to en:oin the condct of the pic"et% Absent sch employer#employee
relationship$ it is the reglar cort and )o1 1' NLRC !hich has :risdiction to entertain sch application
for in:nction from ?innocent bystanders%@ &f it is the employer !hich applies for in:nction$ the -L)C$
and )o1 1' !/0*(! &o0!1$ !hich has :risdiction thereover since there e8ists an employer#employee
relationship bet!een the employer and the pic"eters%
W') -.&31.)/ ,($ # )Co.)". BAs a general rle$ in:nction cannot be issed against the condct
of pic"eting by the !or"ers% Knder or constittional set p$ pic"eting is considered part of the freedom
of speech dly garanteed by the Constittion% =o!ever$ excepted from this legal proscription is !hen
pic"eting is carried ot throgh the se of illegal means
["
or !here pic"eting involves the se of
violence and other illegal acts%
[2"
oooooooooOoOooooooooo
#! Under Article 2 of ('5 )on*ention No. 86 Areedom of Association and 4rotection of the Right to 5rgani<e! of which the 4hilippines is a
signatory, Bwor&ers and employers, without distinction whatsoe*er, shall ha*e the right to establish and subCect only to the rules of the
organi<ation concerned, Cob organi<ations of their own choosing without pre*ious authori<ation.D
2! Article 1 of &LA Convention -o% 43 !hich d!ells on the )ight to Argani;e and Collective Bargaining%
"! *ections 1 and 1$ E8ective Arder -o% 13.$ 0ne .1$ 143>+ *ections 1 and 1$ )le &&$ )les and )eglations to 2overn the E8ercise of the )ight of
2overnment Employees to *elf#Argani;ation%
4! 0ee also )onfederation of )iti<ens 'abor Unions *. Noriel, ,.R. No. '2/-.02. 0eptember 2#, #.82, ##- 0)RA -.4.
/! *ection 16 Hformerly *ection 1>I$ )le &L$ Boo" C$ )les to &mplement the Labor Code$ as amended by 5epartment Arder -o% ,.#.7$ *eries of 1..7$
H6eb% 1>$ 1..7I$ and as re#nmbered by 5epartment Arder -o% ,.#6#.7$ *eries of 1..3 HAct% 7.$ 1..3I%
-! *ections 1> and 13 Hformerly *ections 13 and 14I$ )le &L$ Boo" C$ &bid%
6! See 1st para$raph, Section B, Article C&&& of the 1@8D *onstitution %
8! ?The *tate shall promote the principle of shared responsibility bet!een !or"ers and employers and the preferential se of volntary modes in settling
disptes$ inclding conciliation$ and shall enforce their mtal compliance there!ith to foster indstrial peace%@ 4See nd para$raph, Section B, Article C&&&
of the 1@8D *onstitution6 %
.! As rled in -ational Knion of <or"ers in the =otel$ )estarant and Allied &ndstries H-K<=)A&-#APL#&K6I 5sit =otel -i""o Chapter v% The
=onorableCA$ 2%)% -os% 1674,1 and 16614/ $ -ovember 11$ 1..3%
#0! Trans#Asia *hipping Lines$ &nc% 9 Knlicensed Cre!s Employees Knion 9 Associated Labor Knions HTA*L&#ALKI v% CA$ 2%)% -o% 1,/,13$ 0ly >$
1..,%
##! Jortera v% C&)$ 2%)% -o% L#17,.$ Act% 17$ 14,>$ >4 Phil% 7,/%
#2! PA6LK v% Barot$ 2%)% -o% L#4131$ *ept% 13$ 14/6$ 44 Phil% 1..3+ Calte8 6ilipino Janagers and *pervisors Association v% C&)$ 2%)% -os% L#7.671#77$
April 11$ 14>1$ ,, *C)A 7/.%
PRE-WEEK NOTES
ON THE 2013 BAR EXAMINATION IN LABOR LAW
B$% P!o2. Fo+*.1o G0.()() C'()
(These Notes, consisting of 8 parts, are supplementary to the author’s book entitled “2012 Bar Reviewer on Labor Law”)
========================================================
PART EIGHT
PROCEDURE AND FURISDICTION
A. LABOR ARBITER
1. F0!.+".&1.o). B Labor Arbiters shall have o!./.)(* and ?&*0+.7 C0!.+".&1.o) to hear and decide the follo!ing
cases involving all !or"ers$ !hether agricltral or non#agricltral(
1. U)"! A!1.&* 218 o2 1' L(#o! Co"%
(a) Knfair labor practice (KLP) cases+
(b) Termination disptes or illegal dismissal cases+
(c) &f accompanied !ith a claim for reinstatement$ those cases that !or"ers may file involving !ages$ rates of
pay$ hors of !or" and other terms and conditions of employment+
(d) Claims for actal$ moral$ e8emplary and other forms of damages arising from employer#employee
relations+
(e) Cases arising from any violation of Article 16, of the Labor Code$ as amended$ inclding 'estions
involving the legality of stri"es and loc"ots+
(f)E?&-1 claims for employees compensation not inclded in the ne8t scceeding paragraph$ social
secrity$ Philhealth(medicare) and maternity benefits$ all other claims arising from employer#employee
relations$ inclding those of persons in domestic or hosehold service$ involving an amont e8ceeding
6ive Thosand Pesos (P/$...%..)$ !hether or not accompanied !ith a claim for reinstatement+
2. U)"! A!1.&* 125 o21' L(#o! Co"6 (+ (,)"" #$ R.A. No. A828%
<age distortion disptes in norgani;ed establishments not volntarily settled by the parties prsant to )%A%
-o% 6>1> (<age )ationali;ation Act)+
3. U)"! A!1.&* 12D(#) o2 1' L(#o! Co"6 (+ (,)"" #$ R. A. No. 8830%
Contested cases nder the e8ception clase in Article 113(b) of the Labor Code+
5. U)"! A!1.&* 228 o21' L(#o! Co"%
Enforcement of compromise agreements !hen there is non#compliance by any of the parties prsant to
Article 177 H11>I of the Labor Code$ as amended+
4. U)"! S&1.o) 10 o2 R.A. No. D0526 (+ (,)"" .) 2010 #$ R.A. No. 10022%
Joney claims arising ot of employer#employee relationship or by virte of any la! or contract$ involving
6ilipino !or"ers for overseas deployment$ inclding claims death and disability benefits and for actal$ moral$
e8emplary and other forms of damages as provided by *ection 1. of )%A% -o% 3.,1$ as amended by )%A% -o%
1..11+ and
A. U)"! 1' 2011 NLRC R0*+ o2 P!o&"0!%
Ather cases as may be provided by la!%["
(() 7!+0+ R/.o)(* D.!&1o!. I This refers to t!o (1) sitations(
(1) Contested cases nder the e8ception clase in Article 113(b) of the Labor Code+ and
(1) <hen the threshold total amont of monetary claims is P/$...%.. or less$ the :risdiction belongs to the
)egional 5irector%
• Other issuesH#ases fallin+ un(er the 'uris(i#tion of the La1or Ar1iters. ? Per =urisprudence, the following issues
fall under the =urisdiction of the 7abor (rbiters:
1%&sses involving employees in government#o!ned andFor controlled corporations !ithot original
charters+
1%&sses involving alien parties+
7%&llegal dismissal cases involving priests and ministers+
,%Jonetary claims of domestic !or"ers or "asambahay e8ceeding P/"+
/%Cases involving employees of cooperatives+
6%Cases involving employees of local !ater tilities districts+
>%Ta8 dedctions as money claim !hich redce the amont thereof+
3%Claims or conter#claims of employers against employees arising from employer#employee relationship%
• Other issuesH#ases NOT fallin+ un(er the 'uris(i#tion of the La1or Ar1iters. ? Per =urisprudence, the following
issues do not fall under the =urisdiction of the 7abor (rbiters but of the regular courts:
1%Claims for damages arising from violation of the )o)B&o,-1 &*(0+ ()" o1'! -o+1B,-*o$,)1
-!o'.#.1.o)++
1%Claims for payment of &(!6 (--*.()& ()" o1'! *o()+ o2 ,-*o$++
7%Collection of -($,)1 2o! *o()+ (7(.*" o2 2!o, 1' !1.!,)1 20)" by dismissed employees+
,%D.+,.++(* o2 &o!-o!(1 o22.&!+ ()" 1'.! ,o)1(!$ &*(.,++
/%&sses involving +0+-)+.o) o2 -($,)1 o2 "#1+ (!'(#.*.1(1.o) !&.7!+'.-)+
6%Cases involving )1.1.+ .,,0) 2!o, +0.1+
>%Cases falling nder the "o&1!.) o2 forum non conveniens+
3%M0(+.B"*.&1 o! 1o!1 cases+
4%Criminal and civil liabilities arising from violations of certain provisions of the Labor Code+
1.% Co)+1.101.o)(*.1$ o2 CBA -!o7.+.o)+%
• O";?relate( #ases o*er )hi#h the POA- an( not the La1or Ar1iters- has 'uris(i#tion. ? 2he Philippine
Overseas /mplo$ment (dministration 5PO/(6 has original and e;cl"sive =urisdiction to hear and decide:
(a) All cases !hich are administrative in character$ involving or arising ot of violation of rles and
reglations relating to licensing and registration of recritment and employment agencies or entities$
inclding refnd of fees collected from !or"ers and violation of the conditions for the issance of
license to recrit !or"ers%
(b)5isciplinary action cases and other special cases !hich are administrative in character$ involving
employers$ principals$ contracting partners and 6ilipino migrant !or"ers%
• A((itional notes on 'uris(i#tion of La1or Ar1iters:
a% Employment relationship$ a pre#re'isite for e8ercise of :risdiction%
b% &n cases of money claims of A6<s$ Labor Arbiters may e8ercise :risdiction even absent the
employment relationship% This is so becase the Labor Arbiter may e8ercise :risdiction over the claims
of A6<s arising ot of an employer#employee relationship o! #$ 7.!10 o2 ()$ *(w o! &o)1!(&1
.)7o*7.)/ F.*.-.)o wo!3!+ 2o! o7!+(+ "-*o$,)16inclding claims for actal$ moral$ e8emplary
and other forms of damage%
c%Labor Arbiters have :risdiction even if the case is filed by the heirs of the A6<%
d% E8ceptions to the original and e8clsive :risdiction of Labor Arbiters are as follo!s(
(1) <hen the *ecretary of Labor and Employment or the President e8ercises his po!er nder Article
167 HgI of the Labor Code to assme :risdiction over national interest cases and decide them
himself+ or
(1) <hen the -L)C e8ercises its po!er of complsory arbitration over national interest cases that are
certified to it by the *ecretary of Labor and Employment prsant to the e8ercise by the latter of
his certification po!er nder the same Article 167 HgI+ or
(7) <hen the parties agree to sbmit the case to volntary arbitration before a Colntary Arbitrator or
Panel of Colntary Arbitrators !ho$ nder Articles 161 and 161 of the Labor Code$ are also
possessed of original and e8clsive :risdiction to hear and decide cases mtally sbmitted to
them by the parties for arbitration and ad:dication%
e% R(+o)(#* &(0+(* &o))&1.o) !0* 9 This is the rle in case of conflict of :risdiction bet!een labor
cort and reglar cort% Knder this rle$ if there is a reasonable casal connection bet!een the claim
asserted and the employer#employee relations$ then the case is !ithin the :risdiction of laborcorts%&n
the absence of sch ne8s$ it is the reglar corts that have :risdiction%
f% Labor disptes$ not sb:ect to barangay conciliation%
g% Labor Arbiter has no in:nction po!er% &t is only the Commission (-L)C) !hich has in:nctive po!er%
h% Labor Arbiters have )o :risdiction over 1!,.)(1.o) o2 ( &o!-o!(1 o22.&! !hich is in the natre of an
intra#corporate dispte%-e! M(1*.)/ "o&1!.)D<E is that ?corporate officers@ refer only to those
mentioned in the Corporation Code and the By#La!s+ all other officers not so mentioned are deemed
employees%
2. R.)+1(1,)1 -)".)/ (--(*. I This relief ?&*0+.7*$ applies to orders of reinstatement issed by L(#o!
A!#.1!+ ()" )o1 1o +.,.*(! o!"!+ .++0" #$ 1' NLRC6 on appeal$ 1' CA6 on )le 6/#certiorari petition$ o!
1' S0-!, Co0!16 on )le ,/#petition for revie! on certiorari !hich re'ire a !rit of e8ection% The order of
reinstatement of the Labor Arbiter is self#e8ectory or immediately e8ectory% This means that the employee
ordered reinstated need not secre a !rit of e8ection to effect his reinstatement%
• So&e %rin#i%les on reinstate&ent %en(in+ a%%eal un(er Arti#le <<=.
1% Posting of a bond does not stay the e8ection of immediate reinstatement%
1% The employer has only 1 options(
a%A&10(* reinstatement$ i%e%$ the employee shold be reinstated to his position !hich he occpies prior
to his illegal dismissal nder the same terms and conditions prevailing prior to his dismissal or
separation or$ if no longer available$ to a sbstantially#e'ivalent position+ or
b%P($!o** reinstatement$ i%e%$ reinstatement of the employee in the payroll of the company !ithot
re'iring him to report bac" to his !or"%
7%Employer has the obligation to notify the employee ordered reinstated of his choice of option !ithin 1)
(10) &(*)"(! "($+ from receipt of the Labor Arbiter’s decision$ disobedience to !hich clearly denotes
a refsal to reinstate%
,% Ro>0!o "o&1!.)
B.C
B E,-*o$! .+ *.(#* 1o -($ 1' +(*(!.+ 2o! 1' -!.o" 1'(1 1' ,-*o$ w(+
o!"!" !.)+1(1" -)".)/ (--(* 7) .2 '.+ ".+,.++(* .+ *(1! 2.)(**$ 2o0)" 1o # */(* o)
(--(*.
/% The G)0.)o "o&1!.)
B5C
that the payroll-reinstated employee shold refnd the salaries he received if
his dismissal is finally fond legal on appeal no longer applies% <hether reinstated actally or in the
payroll$ the employee is not re'ired to refnd !hat he has received even if the decision of the Labor
Arbiter is sbse'ently reversed on appeal%
6% The Ro>0!o and G)0.)o doctrines have already been modified by the G(!&.( "o&1!.)%
DFE
Ths$
after the Labor Arbiter’s decision is reversed by a higher tribnal$ the employee may be barred from
collecting the accred!.)+1(1,)1 w(/+ (i.e.$ from the time he !as ordered reinstated by the Labor
Arbiter ntil reversed on appeal)$ if it is sho!n that the delay in enforcing the reinstatement pending
appeal !as !ithot falt on the part of the employer%
3%The 1+1 nder the 6arcia doctrine is 1#fold(
(a) There mst be actal delay or the fact that the order of reinstatement pending appeal !as not
e8ected prior to its reversal+ and
(b) The delay mst not be de to the employer’s n:stified act or omission% &f the delay is de to the
employer’s n:stified refsal$ the employer may still be re'ired to pay the salaries not!ithstanding
the reversal of the Labor Arbiter’s decision%
3. R>0.!,)1+ 1o -!2&1 (--(* 1o NLRC. I The 2=11 N70C 0ules of .rocedure[@" prescribe the re'isites
for perfection of an appeal to the -L)C% Ths$ the appeal shold be(
(1) filed !ithin the !/*,)1(!$ -!.o"6 to !it(
(a) 10 &(*)"(! "($+ 9 in appeals from decisions of the Labor Arbiter+ and
(b) 4 &(*)"(! "($+ 9 in appeals from 5ALE )egional 5irectors nder Article 114 (small money claims of
P/$...%.. or less)%
(1) 7!.2." #$ 1' (--**()1 '.,+*2:'!+*2 in accordance !ith *ection ,$ )le > of the )les of Cort$ as
amended+
(7) in the form of a ,,o!()"0, o2 (--(* !hich shall state the /!o0)"+ relied pon and the (!/0,)1+ in
spport thereof$ the !*.2 -!($" for$ and !ith a +1(1,)1 o2 1' "(1 the appellant received the
appealed decision$ a!ard or order+
(,) in 1'! (3) */.#*$ 1$-w!.11) o! -!.)1" &o-.++ and
(/) accompanied by(
(i) -!oo2 o2 -($,)1 of the re'ired (--(* 2 ()" */(* !+(!&' 2+
(ii) posting of a &(+' o! +0!1$ #o)" (only in cases of monetary a!ards bt e8clding moral and e8emplary
damages and attorney’s fees in the comptation thereof)+ and
(iii)-!oo2 o2 +!7.& pon the other parties%
B. NATIONAL LABOR RELATIONS COMMISSION (NLRC)
1. F0!.+".&1.o). B The -L)C e8ercises t!o (1) "inds of :risdiction(
1%;riinal C0!.+".&1.o) over the follo!ing cases(
a%I)C0)&1.o) .) o!".)(!$ *(#o! ".+-01+ to en:oin or restrain any actal or threatened commission of any or
all prohibited or nla!fl acts or to re'ire the performance of a particlar act in any labor dispte !hich$ if
not restrained or performed forth!ith$ may case grave or irreparable damage to any party%
b%I)C0)&1.o) .) +1!.3+ o! *o&3o01+ nder Article 16, of the Labor Code%
c%Labor disptes casing or li"ely to case a stri"e or loc"ot in an .)"0+1!$ .)".+-)+(#* 1o 1' )(1.o)(*
.)1!+1$ certified to it by the *ecretary of Labor and Employment for complsory arbitration nder Article
167(g) of the Labor Code%
1%9xclusive appellate C0!.+".&1.o) over the follo!ing cases(
a%All cases decided by the Labor Arbiters%
b%Contempt cases decided by the Labor Arbiters%
c%Cases decided by the 5ALE )egional 5irectors involving recovery of !ages$ simple money claims and
other benefits nder Article 114 of the Labor Code%
2. E22&1 o2 NLRC !7!+(* o2 L(#o! A!#.1!9+ o!"! o2 !.)+1(1,)1. BThe follo!ing are the effects(
1% An #(&3w(/+ # The employer$ as a $eneral rle$ has to pay the so#called <!.)+1(1,)1 w(/+= of the
employee from the time he !as ordered reinstated by the Labor Arbiter ntil the reversal by the -L)C of sch
reinstatement order% The e+ception is !hen there e8ists :stifiable reason for not effecting actal or payroll
reinstatement pending appeal$ as ennciated nder the 6arcia "o&1!.)%
[+"
1% An !.)+1(1,)1 9 &f the employee !as$ pending appeal$ reinstated either to his former positionFsbstantially
e'ivalent position or in the payroll$ the reversal of the reinstatement ordered by the Labor Arbiter !ill not
affect sch reinstatement if the employee elevates his case to the Cort of Appeals or sbse'ently$ to the
*preme Cort% =o!ever$ if the employee no longer elevates the case to the Cort of Appeals or to the
*preme Cort$ the reversal shall mean the end of the litigation$ hence$ the reinstatement of the employee
shold cease as a matter of corse pon the finality of the reversal decision of the -L)C%
3. R,".+. I The follo!ing are the remedies from the decision$ order or a!ard of the -L)C(
Fo! 1' *o+.)/ -(!1$%
a% 6iling of a motion for reconsideration !ithin ten (1.) calendar days from receipt thereof+ and
b% 6iling of a )le 6/#petition for certiorari !ith the Cort of Appeals !ithin si8ty (6.) days from receipt of the
denial of the motion for reconsideration% (D&.+.o)+ o2 1' NLRC (! )o1 2.)(* "0!.)/ 1' -)")&$ o2 (
&!1.o!(!. -1.1.o). A*1'o0/' .1 .+ )o1 .) 1' )(10! o2 () (--(*6 &!1.o!(!. +'o0*" # 1!(1" (+ #.)/
+.,.*(! 1o 1' &o)&-1 o2 () (--(*)%[E"
Fo! 1' w.)).)/ -(!1$%
a% 6iling of a motion for the issance of a !rit of e8ection !ith the Labor Arbiter o2 o!./.) to enforce the
monetary a!ard or effect reinstatement ordered by the Commission (-L)C) on appeal%This is so becase
a petition for certiorari !ith the Cort of Appeals or the *preme Cort shall not stay the e8ection of the
assailed decision nless a restraining order is issed by said corts%[!"Conse'ently$ sch petition shall not
stop the *heriff from enforcing the assailed decision nless a restraining order is issed by the Cort of
Appeals or the *preme Cort%[*"
5. C!1.2." &(++. I These refer to )(1.o)(* .)1!+1 &(++ certified to the -L)C by the 5ALE *ecretary for
prposes of complsory arbitration nder Article 167(g) of the Labor Code%
C. BUREAU OF LABOR RELATIONS I MED ARBITERS
1. O!./.)(* C0!.+".&1.o). B The BL) has oriinal ()" exclusive over the follo!ing cases(
a%I)1!B0).o) o! !-!+)1(1.o) ".+-01% 9 &t refers to a petition for certification election filed by a dly
registered labor organi;ation !hich is see"ing to be recogni;ed as the sole and e8clsive bargaining agent of
the ran"#and#file employees or spervisory employees$ as the case may be$ in the appropriate bargaining
nit of an establishment%
b%I)1!(B0).o) ".+-01. B &t refers to any conflict bet!een and among nion members$ inclding grievances
arising from any violation of the rights and conditions of membership$ violation of or disagreement over any
provision of the nion’s constittion and by#la!s or disptes arising from chartering or affiliation of a nion%
c%A** ".+-01+6 /!.7()&+ o! -!o#*,+ (!.+.)/ 2!o, o! (22&1.)/ *(#o!B,()(/,)1 !*(1.o)+ .) (**
wo!3-*(&+6!hether agricltral or non#agricltral$ ?&-1 those arising from the implementation or
interpretation of CBAs !hich shall be the sb:ect of grievance procedre andFor volntary arbitration+
d% A--*.&(1.o) 2o! !/.+1!(1.o) o2 *(#o! 0).o)++ and
e% P1.1.o) 2o! &()&**(1.o) o2 0).o) !/.+1!(1.o).
2. A--**(1 C0!.+".&1.o). B The follo!ing are the rles on appeals !ith respect to the BL)(
a% &n .)1!B0).o) ".+-01+ # 5ecisions of the Jed#Arbiter in inter-union disptes 4certification elections6 are not
appealable to the BL) bt to the 5ALE *ecretary%
b% &n .)1!(B0).o) ".+-01+ # 5ecisions of Jed#Arbiters in intra-union disptes are appealable to the BL)%
c% The BL) e8ercises appellate :risdiction over (** cases o!./.)(1.)/ 2!o, the 5ALE )egional 5irector
involving the follo!ing isses(
1% Knion registration+
1% Cancellation of certificates of nion registration+ and
7% Complaints for e8amination of nion’s boo"s of acconts%
d% As far as &()&**(1.o) o2 0).o) !/.+1!(1.o) is concerned$ in case the decision is rendered by the BL)
5irector in the e8ercise of his oriinal :risdiction$ the same may be appealed to the Affice of the 5ALE
*ecretary by any party !ithin the same period of ten (1.) days$ copy frnished the opposing party%
3. A",.).+1!(1.7 20)&1.o)+. I &n addition$ the BL) has the follo!ing administrative fnctions(
a%)egistration of labor nions+
b%Geeping of registry of labor nions+
c%Jaintenance and cstody of the files of Collective Bargaining Agreements (CBAs) and other related
agreements%
d% )ecords of settlement of labor disptes+ and
e% Copies of orders and decisions of Colntary Arbitrators%
D. NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)
1. N(10! o2 -!o&".)/+. I The -CJB is )o1 a >0(+.BC0".&.(* (/)&$.D..E Conse'ently$ its proceedings are
non#litigios in natre% &t does not render decisions in cases broght before it% &ts fnction is confined to the
condct of conciliation and mediation% &t accredits Colntary Arbitrators to !hom it refers cases for volntary
arbitration prposes%
2. Co)&.*.(1.o) 7+. M".(1.o). I &n both conciliation and mediation$ there is a third party called Conciliator (in case
of conciliation) or Jediator (in case of mediation) to !hom the parties sbmit their disptes for prposes of
reconciling their differences or persading them into ad:sting or settling their dispte% The distinction lies on the
e8tent of the po!er and athority granted to the netral third party%
&n ,".(1.o)$ there are t!o (1) classifications(
1% F(&.*.1(1.7 M".(1.o) !here the Jediator does not ma"e or offer any opinion+ or
1% E7(*0(1.7 M".(1.o) !here the Jediator offers an opinion !hich is )o1 binding on the parties%
&n &o)&.*.(1.o)$ the Conciliator is given more po!er and athority in that he may not only offer an opinion on the
isses at hand bt may actally ma"e a bindin$ opinion thereon provided the parties stiplate in advance to this
effect% =is opinion is based on the facts and the la! involved in the controversy before him%
3.P!7)1.7 ,".(1.o). I Althogh this is not provided in the Labor Code$ the la![2" that created the -CJB
mandates that it shold provide preventive mediation to dispting parties% The validity of this remedy has been
affirmed by the *preme Cort% The isses that may be sbmitted for preventive mediation may either
be +1!.3(#* or )o)B+1!.3(#*%
&n cases of stri)eable .++0+6 the parties may mtally agree that the same be treated or converted into a
preventive mediation case$ in !hich event$ no stri"e or loc"ot may be legally and validly monted based on the
same isses since their conversion into a preventive mediation case has the 22&1 o2 ".+,.++.)/ 1' )o1.& o2
+1!.3 o! )o1.& o2 *o&3o01 ()" !,o7.)/ .1 2!o, 1' "o&31 o2 )o1.&+ o2 +1!.3:*o&3o01.
&n cases of non!stri)eable .++0+ raised in a notice of stri"e or notice of loc"ot$ the -CJB
may$ motu proprio6 &o)7!1 1' +(, .)1o ( -!7)1.7 ,".(1.o) &(+ o!6 (*1!)(1.7*$6 !2! +(." .++0+
1o 7o*0)1(!$ (!#.1!(1.o)6if they are in the natre of nresolved grievances or to the Jed#Arbiter$ if they involve
representation or inter#nion disptes%
• Stri2e is ille+al if sta+e( after #on*ersion of the noti#e of stri2e into a %re*enti*e &e(iation #ase.
P'.*.--.) A.!*.)+6 I)&. 7. S&!1(!$ o2 L(#o! ()" E,-*o$,)16 JG.R. No. DD2106 F()0(!$ 236 1EE16 1E3
SCRA 223K B The stri"e !as declared illegal for lac" of a valid notice of stri"e in vie! of the -CJB’s
conversion of said notice into a preventive mediation case%
S() M./0* Co!-o!(1.o) 7. NLRC6 JG.R. No. 11E2E36 F0) 106 2003K B The moment the -CJB orders the
preventive mediation in a stri"e case$ the nion therepon loses the notice of stri"e it had filed% Conse'ently$
if it still defiantly proceeds !ith the stri"e !hile mediation is on#going$ the stri"e is illegal%
E. DOLE REGIONAL DIRECTORS
1. F0!.+".&1.o). I 5ALE )egional 5irectors have o!./.)(* :risdiction over the follo!ing(
a% E8ercise of the visitorial and enforcement po!er as dly athori;ed representatives of the 5ALE *ecretary
nder Article 113 of the Labor Code+ and
b% )ecovery of !ages and other monetary claims and benefits$ inclding legal interest$ o!ing to an employee or
person employed in domestic or hosehold service or kasa"bahay nder Article 114 of the Labor Code%
• Re,uisites for the *ali( e7er#ise of 'uris(i#tion 1y !OL Re+ional !ire#tors un(er Arti#le .<$.
(1) The claim is presented by an employee or person employed in domestic or hosehold service or
"asambahay nder the code+
(1) The claimant !hose employment has been +7!" does not see" reinstatement+ and
(7) The aggregate money claim of the employee or domestic !or"erF"asambahay does not
e8ceed P46000.00%
F. DOLE SECRETARY
1. V.+.1o!.(* ()" E)2o!&,)1 Pow!+. B The visitorial and enforcement po!ers granted to the 5ALE *ecretary or
his dly athori;ed representatives nder Article 113 of the Labor Code are in the natre of a >0(+.BC0".&.(*
-ow!.
[)"

There are three (7) separate po!ers treated in Article 113$ to !it(
1% V.+.1o!.(* -ow! embodied in -(!(/!(-' J(K thereof !hich covers the follo!ing(
a%Access to employer’s records and premises at any time of the day or night$ !henever !or" is being
nderta"en therein+ and
b%The right(
1% to copy from said records+
1%to 'estion any employee and investigate any fact$ condition or matter !hich may be necessary to
determine violations or !hich may aid in the enforcement of the Labor Code and of any labor la!$
!age order$ or rles and reglations issed prsant thereto%
1%E)2o!&,)1 -ow! treated in -(!(/!(-'+ J#K and J&K thereof !hich incldes the follo!ing(
a%To isse &o,-*.()& o!"!+ to give effect to the labor standards provisions of the Labor Code and other
labor legislations based on the findings of labor employment and enforcement officers or indstrial safety
engineers made in the corse of inspection%
b%To isse w!.1+o2?&01.o) tothe appropriate athority for the enforcement of their orders$ ?&-1 in cases
!here the employer contests the findings of the labor employment and enforcement officer and raises
isses spported by docmentary proofs !hich !ere not considered in the corse of inspection%
c% To order +1o--(/ o2 wo!3 o! +0+-)+.o) o2 o-!(1.o)+ of any nit or department of an establishment
!hen non#compliance !ith the la! or implementing rles and reglations poses grave and imminent
danger to the health and safety of !or"ers in the !or"place% <ithin t!enty#for (1,) hors$ a hearing shall
be condcted to determine !hether an order for the stoppage of !or" or sspension of operations shall
be lifted or not% &n case the violation is attribtable to the falt of the employer$ he shall pay the employees
concerned their salaries or !ages dring the period of sch stoppage of !or" or sspension of operation%
d%To re'ire employers$ by appropriate reglations$ to "eep and maintain sch ,-*o$,)1 !&o!"+ as may
be necessary in aid of his visitorial and enforcement po!ers nder the Labor Code%
7%A--**(1 -ow! or -ow! o2 !7.w !hich is fond in the +0#B-(!(/!(-' of -(!(/!(-' J#K thereof% The
appeal from the order of the 5ALE )egional 5irector issed nder Article 113 shold be made to the 5ALE
*ecretary !ithin ten (1.) calendar days from receipt of a copy of the order of the 5ALE )egional 5irector
based on any of the follo!ing gronds(
1%There is a pri"a facie evidence of abse of discretion on the part of the )egional 5irector+
1%The order !as secred throgh frad$ coercion or graft and corrption+
7%The appeal is made prely on 'estions of la!+ or
,%*erios errors in the findings of facts !ere committed !hich$ if not corrected$ !old case grave and
irreparable damage or in:ry to the appellant%
2. Pow! 1o +0+-)" 22&1+ o2 1!,.)(1.o). B Knder Article 1>> HbI of the Labor Code$ the 5ALE *ecretary is
empo!ered to sspend the effects of termination based on the follo!ing gronds(
1%The termination may case a +!.o0+ *(#o! ".+-01+ or
1%The termination is in implementation of a ,(++ *($Bo22%
The obvios prpose behind this rle is to bring the parties bac" to the status 1uo ante litem$ that is$ their state
of relationship prior to the termination% &n this !ay$ the !or"ers !ill be litigating the isse of the validity or legality
of their termination on more or less e'al footing !ith the employer since they !ill not be deprived of their !ages
!hile the litigation is on#going%
3. A++0,-1.o) o2 C0!.+".&1.o). I The 5ALE *ecretary$ nder Article 167(g) of the Labor Code$ may assme
:risdiction over a labor dispte !hen$ in his o-.).o)$ it !ill case or li"ely to case a stri"e or loc"ot in
an .)"0+1!$ .)".+-)+(#* 1o 1' )(1.o)(* .)1!+1. *ch assmption shall have the effect of (01o,(1.&(**$
)Co.).)/ 1' .)1)"" o! .,-)".)/ +1!.3 o! *o&3o01 as specified in the assmption order%&f a stri"e or
loc"ot has already ta"en place at the time of assmption$ all stri"ing or loc"ed ot employees
shall .,,".(1*$ !10!) 1o wo!3 and the employer shall .,,".(1*$ !+0, o-!(1.o)+ ()" !(",.1 (**
wo!3!+ 0)"! 1' +(, 1!,+ ()" &o)".1.o)+ -!7(.*.)/ #2o! 1' +1!.3 o! *o&3o01% The 5ALE
*ecretary may see" the (++.+1()& o2 *(w )2o!&,)1 (/)&.+ to ensre compliance !ith the la! as !ell
as !ith sch orders as he may isse to enforce the same%
A different rle is applicable to labor disptes involving 'o+-.1(*+6 &*.).&+ ()" +.,.*(! ,".&(* .)+1.101.o)+% &n
line !ith the national concern for and the highest respect accorded to the right of patients to life and health$
stri"es and loc"ots in hospitals$ clinics and similar medical instittions shall$ to every e8tent possible$ be
avoided$ and all serios efforts$ not only by labor and management bt government as !ell$ be e8hasted to
sbstantially minimi;e$ if not prevent$ their adverse effects on sch life and health$ throgh the e8ercise$ ho!ever
legitimate$ by labor of its right to stri"e and by management to loc"ot%&nlabor disptes adversely affecting the
contined operation of sch hospitals$ clinics or medical instittions$ .1 +'(** # 1' "01$ o2 1' +1!.3.)/ 0).o)
o! *o&3.)/Bo01 ,-*o$! to provide and maintain an effective+3*1(* wo!32o!& o2 ,".&(* ()" o1'! '(*1'
-!+o))*$ !hose movement and services shall be nhampered and nrestricted$ as are necessary to insre
the proper and ade'ate protection of the life and health of its patients$ most especially emergency cases$ for
the dration of the stri"e or loc"ot%&n sch cases$ therefore$ 1' DOLE S&!1(!$ ,($ .,,".(1*$ (++0,6
w.1'.) 1w)1$ 2o0! (25) 'o0!+ 2!o, 3)ow*"/ o2 1' o&&0!!)& o2 +0&' ( +1!.3 o! *o&3o016 C0!.+".&1.o)
o7! 1' +(,% 6or this prpose$ the contending parties are strictly en:oined to comply !ith sch orders$
prohibitions andFor in:nctions as are issed by the 5ALE *ecretary$ 0)"! -(.) o2 .,,".(1 ".+&.-*.)(!$
(&1.o)6 .)&*0".)/ ".+,.++(* o! *o++ o2 ,-*o$,)1 +1(10+ o! -($,)1 #$ 1' *o&3.)/Bo01 ,-*o$! o2
#(&3w(/+6 "(,(/+ ()" o1'! (22.!,(1.7 !*.26 7) &!.,.)(* -!o+&01.o) (/(.)+1 .1'! o! #o1' o2
1',%
5. A--**(1 C0!.+".&1.o). I The appellate :risdiction of the 5ALE *ecretary may be smmari;ed as follo!s(
a% Appeal from the order of the 5ALE )egional 5irector nder Article 113 (Cisitorial and Enforcement Po!er)%
JNOTE% APPEAL FROM DECISIONS OF THE DOLE REGIONAL DIRECTORS UNDER ARTICLE 12E (R&o7!$ o2 +,(** ,o)$
&*(.,+) IS TO THE NLRC WITHIN 4 CALENDAR DAYSK.
b% Appeal from the order of the Jed#Arbiter in &!1.2.&(1.o) *&1.o) cases (Article 1/4) based o)*$ on one (1)
round(T'(1 1' !0*+ ()" !/0*(1.o)+ o! -(!1+ 1'!o2 +1(#*.+'" #$ 1' DOLE S&!1(!$ 2o! 1'
&o)"0&1 o2 1' &!1.2.&(1.o) *&1.o) '(7 #) 7.o*(1".
HNOTE% 0ule on appeal in unorani2ed establishments. The order GRANTING the petition for certification election in
an unorani2edestablishment is )o1 +0#C&1 1o (--(*% Any isse arising from its &o)"0&1 or from its !+0*1+ is proper sb:ect of
a -!o1+1% A--(* ,($ o)*$ # ,(" .) &(+ o2 DENIAL o2 1' -1.1.o) w.1'.) 1) (10) "($+ 2!o, !&.-1 o2 1' "&.+.o) o2 ").(*.
D.6E
0ule on appeal in orani2ed establishments. BAT= T=E GRANT A-5 DENIAL of the petition for certification election ARE
APPEALABLE% The order GRANTING the condct of a certification election in an orani2ed establishment and the
decision DISMISSING or DENYING the petition may be appealed to the Affice of the 5ALE *ecretary !ithin ten (1.) days from receipt
thereof%[;"K
• &%loyer is not a %ro%er %arty to file an a%%eal fro& the #ertifi#ation ele#tion or(er 1e#ause he is #onsi(ere( un(er the la) as a &ere
1ystan(er or stran+er.D.JE
c% Appeal in &()&**(1.o) o2 0).o) !/.+1!(1.o) proceedings% 9 The rle on appeal depends on !here the
petition for cancellation !as originally filed%
1% I2 o!./.)(**$ 2.*" w.1' 1' DOLE R/.o)(* D.!&1o!$ his decision rendered in his o!./.)(*
C0!.+".&1.o) may be appealed to the BLR D.!&1o! by any of the parties !ithin ten (1.) days from receipt
thereof$ copy frnished the opposing party%
1% I2 o!./.)(**$ 2.*" w.1' 1' BLR D.!&1o!$ his decision rendered in the e8ercise of his ori$inal :risdiction
may be appealed to the O22.& o2 1' DOLE S&!1(!$ by any party !ithin the same period of ten (1.)
days$ copy frnished the opposing party%H1>I
• APPELLATE FURISDICTION OF THE BLR AND DOLE SECRETARY6 DISTINGUISHED.
According to the =igh Cort in A##o11$[E"the appellate :risdiction of the 5ALE *ecretary is limited only to
a revie! of cancellation proceedings decided by the BL) in the e8ercise of the
latter’s e+clusi'e and ori$inal :risdiction% The 5ALE *ecretary has no :risdiction over decisions of the
BL) rendered in the e8ercise of its appellate :risdiction to revie! the decisions of the )egional 5irectors in
cancellation cases$ said decisions being final and inappealable%
*imply stated$ there are t!o (1) sitations contemplated$ ths(
(a)The 2.!+1 sitation involves a petition for cancellation of nion registration !hich is filed !ith a ,e$ional
Office% A decision of a )egional Affice cancelling a nion’s certificate of registration may be appealed
to the BL) 5irector !hose decision on the matter shall be final and inappealable%
(b)The +&o)" sitation involves a petition for cancellation of certificate of nion registration !hich is
filed directly !ith the BL)% A decision of the BL) cancelling a nion’s certificate of registration may be
appealed to the 5ALE *ecretary !hose decision on the matter shall be final and inappealable%
d% Appeal in &o)1,-1 &(++ decided by BLR D.!&1o! shall be made to the 5ALE *ecretary%[!"
4. Vo*0)1(!$ (!#.1!(1.o) -ow!+ o2 1' DOLE S&!1(!$. I This is a )w !0* of dispte settlement !here the
5ALE *ecretary himself may no! condct volntary arbitration of cases% &t is called <A",.).+1!(1.7
I)1!7)1.o) 2o! D.+-01 A7o."()& (AIDA).=[2*"
This recorse is separate from the established dispte resoltion modes of mediation$ conciliation and arbitration
nder the Labor Code$ and is an alternative to other volntary modes of dispte resoltion sch as the volntary
sbmission of a dispte to the )egional 5irector for mediation$ to the -CJB for preventive mediation$ or to the
intervention of a regional or local tripartite peace concil for the same prpose%
• P(!1.+ w'o ,($ !>0+1 2o! 1' DOLE S&!1(!$9+ .)1!7)1.o).
Either or both the employer and the certified collective bargaining agent (or the representative of the
employees !here there is no certified bargaining agent) may volntarily bring to the Affice of the 5ALE
*ecretary$ throgh a )e'est for &ntervention$ any potential or ongoing dispte defined belo!%
• Po1)1.(* o! o)/o.)/ ".+-01.
A potential or ongoing dispte refers to(
a% a live and active dispte+
b% that may lead to a stri"e or loc"ot or to massive labor nrest+ and
c% is not the sb:ect of any complaint or notice of stri"e or loc"ot at the time a )e'est for &ntervention is
made%
• P!B!>0.+.1 1o .)1!7)1.o) #$ 1' DOLE S&!1(!$.
The Affice of the *ecretary or the )egional 5irector$ in the proper case$ shall proceed to intervene after the
parties shall have manifested that(
a% They volntarily sbmit their potential or ongoing dispte to intervention by the Affice of the 5ALE
*ecretary+
b% There is no pending notice of stri"e or loc"ot or any related complaint in relation to their potential or
ongoing dispte+
c% They shall refrain from any stri"e or loc"ot or any form of !or" stoppage or from filing any related
complaint !hile the *ecretaryEs intervention is in effect+ and
d% They shall abide by the agreement reached$ !hose terms may be enforced throgh the appropriate !rits
issed by the 5ALE *ecretary%
All agreements settling the dispte shold be in !riting and signed by the parties as !ell as the official !ho
mediated the dispte%
• >oluntary arbitration by the 3;79 Secretary.
&f AIDA fails$ either or both parties may avail themselves of the remedies provided nder the Labor Code%
Alternatively$ the parties may sbmit their dispte to the Affice of the 5ALE *ecretary for volntary arbitration%
*ch volntary arbitration shold be limited to the isses defined in the partiesE sbmission to volntary
arbitration agreement and shold be decided on the basis of the partiesE position papers and sbmitted
evidence%
The Affice of the 5ALE *ecretary is mandated to resolve the dispte !ithin si8ty (6.) days from the partiesE
sbmission of the dispte for resoltion%
JNOTE% DOLE REGIONAL DIRECTORS AND ASSISTANT REGIONAL DIRECTORS MAY NOW ACT AS 9?!;&&5C5; VOLUNTARY
ARBITRATORS (EVA+). )egional 5irectors and Assistant )egional 5irectors of the 5epartment of Labor and Employment are neither
e8pressly athori;ed to act as Colntary Arbitrators nder the Labor Code nor e8plicitly prohibited from acting as sch% This is a void in the
la! !hich !as appropriately addressed !ith the issance by DOLE S&!1(!$ A!10!o D. B!.o)$ of Depart"ent Order No. 8B-!D, Series of
!!D on 0ne 3$ 1..> designating all )egional 5irectors and Assistant )egional 5irectors of the 5epartment of Labor and Employment
as 9x!;fficioVo*0)1(!$ A!#.1!(1o!+ (EVA+)I%
G. GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
1. S0#C&1 ,(11! o2 /!.7()&. I A grievance may involve the follo!ing sb:ect matters(
1% &nterpretation or implementation of the CBA+ or
1% &nterpretation or enforcement of &o,-()$ -!+o))* -o*.&.+%
&f these t!o isses are nresolved !ithin 8 "($+ from their +0#,.++.o) for resoltion by the 2rievance
Committee$ they shall be for!arded to a Colntary Arbitrator for volntary arbitration%
2. F0!.+".&1.o) o2 Vo*0)1(!$ A!#.1!(1o!. B The Colntary Arbitrator or panel of Colntary Arbitrators shall
have ?&*0+.7 ()" o!./.)(* C0!.+".&1.o) over the follo!ing cases(
1%Knresolved grievances arising from the interpretation or implementation of the collective bargaining agreement
(CBA)%
1%Knresolved grievances arising from the interpretation or enforcement of company personnel policies%
7%Ciolations of the CBA !hich are not gross in character%
,%<age distortion isses arising from the application of any !age orders in organi;ed establishments%
/%Atherlabor disptes$ inclding nfair labor practices and bargaining deadloc"s$ pon agreement of the parties%
6%Knresolved grievances arising from the interpretation and implementation of the Prodctivity &ncentive
Programs nder )% A% -o% 64>1 H-ovember 11$ 144.I$ other!ise "no!n as the ;.roducti'ity &ncenti'es Act of
1@@!. @
• So, -!.)&.-*+ o) C0!.+".&1.o) o2 Vo*0)1(!$ A!#.1!(1o!+.
a% Cases cogni;able by Colntary Arbitrators bt filed !ith the Labor Arbiters$ 5ALE )egional Affices or
-CJB shold be referred to the Colntary Arbitrators mtally chosen by the parties% They are re'ired to
immediately dispose and refer the same to the appropriate grievance machinery or volntary arbitration
provided in the CBA%
b% Cases cogni;able by Colntary Arbitrators bt filed !ith the reglar corts shold be dismissed%
c%WHEN A CASE DOES NOT INVOLVE THE PARTIES TO A CBA I THE EMPLOYER AND THE
BARGAINING UNION B IT IS NOT SUBFECT TO VOLUNTARY ARBITRATION. Only disptes involving
the bargaining nion and the companyshallbe referred to the grievance machinery or volntary arbitrators%
d%A termination dispte is not a grievable isse+ hence$ grievance machinery and Colntary Arbitrators have
no :risdiction over this isse% Termination cases do not call for the interpretation or enforcement of
company personnel policies and so they may not be considered grievable or arbitrable%
e% &n termination cases$ if the bargaining nion is not named a party to the illegal dismissal sit either
becase it failed to ob:ect to the dismissal ofthe employee or the sit !as initiated by the employee alone$
!ithot the assistance of his nion$ Colntary Arbitrator has no :risdiction thereover%
f% To confer :risdiction !ith the Colntary Arbitrator over termination disptes$ there mst be e8press
agreement bet!een employer and the bargaining agent to sbmit the termination case to volntary
arbitration%
g% The Colntary Arbitrators have original and e8clsive :risdiction over money claims ?arising from the
interpretation or implementation of the CBA and$ those arising from the interpretation or enforcement of
company personnel policies$@ nder Article 161% The L(#o! A!#.1!+9 C0!.+".&1.o) o7! ,o)$ &*(.,+
&(++ .+ *.,.1" o)*$ 1o 1'o+ (!.+.)/ 2!o, +1(101+ o! &o)1!(&1+ o1'! 1'() ( CBA%
h%The Colntary Arbitrators may hear and decide isse of legality of stri"es or loc"ots for as long as the
parties mtally agree to sbmit it to volntary arbitration%
i% O!".)(!$ violation of a CBA !hich involves )o)B&o)o,.& provisions thereof is not KLP and shold be
resolved as a grievance or grievable isse properly cogni;able nder the grievance machinery and
volntary arbitration provisions of a CBA% &f the violation of the CBA is ross in character$ i.e.$ the refsal
to comply !ith the economic provisions thereof is flagrant andFor malicios$ it shold be treated as
an 0)2(.! *(#o! -!(&1.& and ths may be ta"en cogni;ance of by the Labor Arbiter nder Article 11> or
by the Colntary Arbitrator or panel of Colntary Arbitrators$ pon agreement of the parties$ nder Article
161 of the Labor Code%
:% 0risdictional over !age distortion cases depends on !hether the establishment
is o!/().;" or 0)o!/().;"% &forani2ed$ the Colntary Arbitrator has :risdiction% &f unorani2ed$ the
Labor Arbiter has :risdiction%
3. P!o&"0!. I Colntary arbitration is initiated either by !ay of(
1%A *bmission Agreement+ or
2%( 0emand or -otice to (rbitrate invoking the arbitration clause in the .F(? or
)%(n (ppointment from the -.MF%
&f after e8hasting the grievance procedre$ the grievance remains nresolved and one party refses to sbmit
the same to volntary arbitration$ the follo!ing procedre shold be observed(
1%A -otice to Arbitrate shold be served pon the refsing or n!illing party$ copy frnished the permanent
Colntary Arbitrator$ if one is named in the CBA$ and the -CJB )egional Branch having :risdiction over the
!or"place+
1%After the lapse of the >#day period !ithin !hich to respond to the -otice to Arbitrate$ the permanent Colntary
Arbitrator shall immediately commence the arbitration proceedings+
7%&n the absence of a permanent Colntary Arbitrator named in the CBA$ the -CJB shall appoint a Colntary
Arbitrator !ho shall immediately commence the arbitration proceedings pon receipt of sch appointment%
,%The Colntary Arbitrator shall have the follo!ing po!ers(
1%To re'ire any person to attend hearingFs+
1%To sbpoena !itnesses and receive docments !hen the relevancy of the testimony and the materiality
thereof have been demonstrated to the arbitrator+
7%To ta"e !hatever action is necessary to resolve the isseFs sb:ect of the dispte+
,%To isse a !rit of e8ection to enforce final decisions and in connection there!ith$ it shall be his dty to(
,%1%see to it that his decision is flly satisfied+
,%1% in'ire into the correctness of the e8ection of his final decision+
,%7% consider !hatever spervening event that may transpire dring sch e8ection+
,%,% determine every 'estion of fact and la! !hich may be involved in the e8ection%
5. R,".+. B As a general rle$ decisions or a!ards of Colntary Arbitrators are
final$ inappealable and e8ectory after ten (1.) calendar days from receipt of a copy thereof by the parties% &t is
!ell#settled a rle$ ho!ever$ that the findings of fact and la! made by the Colntary Arbitrator may be revie!ed
by the cort%
[2"
The decision$ order or a!ard of Colntary Arbitrators may be elevated ".!&1*$ 1o 1' Co0!1 o2 A--(*+ by
!ay ofo!".)(!$ (--(* nder R0* 53 of the 1EE8 R0*+ o2 C.7.* P!o&"0!
[22"
!ithin the reglementary period
of 14 "($+from receipt thereof%
The Colntary Arbitrator’s decisions or a!ards may be contested on the follo!ing gronds(
1%Lac" or !ant of :risdiction+
1%2rave abse of discretion+
7%Ciolation of de process+
,%5enial of sbstantive :stice+
/%Erroneos interpretation of the la!%
[2)"
Appeal !ill be dismissed if erroneosly filed nder )le 6/ instead of )le ,7% &t mst be noted that )le 6/
petition for certiorari is not a sbstitte for a lapsed appeal%
[24"
H. COURT OF APPEALS
1. R0* A46 R0*+ o2 Co0!1. B &n cases !here the decisions$ orders or a!ards of the -L)C$ the 5ALE *ecretary or
the BL) 5irector (in cases !here he rendered the same in his appellate :risdiction) are rendered w.1'o01 o! .)
?&++ o2 C0!.+".&1.o)6 o! w.1' /!(7 (#0+ o2 ".+&!1.o) (,o0)1.)/ 1o *(&3 o! ?&++ o2 C0!.+".&1.o)$ the
aggrieved party may elevate the case to the Cort of Appeals not by !ay of ordinary appeal bt by and throgh
the special civil action forcertiorari provided nder )le 6/ thereof !hich states in its *ection 1 as follo!s(
?*ection 1%.etition for certiorari. 9 <hen any tribnal$ board$ or officer e8ercising :dicial fnctions$ has acted
!ithot or in e8cess of its or his :risdiction$ or !ith grave abse of discretion amonting to lac" or e8cess of :risdiction$
and there is no appeal$ or any plain$ speedy$ and ade'ate remedy in the ordinary corse of la!$ a person aggrieved
thereby may file a verified petition in the proper cort$ alleging the facts !ith certainty and praying that :dgment be
rendered annlling or modifying the proceedings of sch tribnal$ board or officer$ and granting sch incidental reliefs as
la! and :stice may re'ire%
?The petition shall be accompanied by a certified tre copy of the :dgment$ order or resoltion sb:ect
thereof$ copies of all pleadings and docments relevant and pertinent thereto$ and a s!orn certification of non#form
shopping as provided in the third paragraph of *ection 7$ )le ,6%@
An e8traordinary remedy$ a petition for certiorari is available only and restrictively in trly e8ceptional
cases%Thesoleofficeofthe!ritofcertiorariisthecorrection of errors of :risdiction inclding the commission of grave
abse of discretion amonting to lac" or e8cess of :risdiction%
JNOTE% THE ONLY WAY THE DECISIONS6 ORDERS OR AWARDS OF THE NLRC6 THE DOLE SECRETARY OR THE BLR
DIRECTOR(WHEN HE RENDERED THEM IN HIS APPELLATE FURISDICTION) COULD REACH THE COURT OF
APPEALS IS BY WAY OF RULE A4 PETITION FOR CERTIORARI. THERE IS NO APPEAL FROM THEIR DECISIONS6
ORDERS OR AWARDSK.
I. SUPREME COURT
1. R0* 546 R0*+ o2 Co0!1.B )le ,/#petition for revie! on certiorari is the only mode of elevating a labor case from
the Cort of Appeals to the *preme Cort% *ince the Cort of Appeals has :risdiction over the petition
for certiorari nder )le 6/ that may be filed before it from the decisions of the -L)C$ any alleged errors
committed by it in the e8ercise of its :risdiction !old be !!o!+ o2 C0"/,)1 !hich are revie!able by means of
a timely appeal to the *preme Cort and not by a special civil action of certiorari%*ch appeal from a final
disposition of the Cort of Appeals is a petition for revie! on certiorari nder )le ,/ and not a special civil
action of certiorari nder )le 6/ of the )les of Cort%
• So, -!.)&.-*+ o) R0* 546 R0*+ o2 Co0!1.
1% )eglementary period to appeal is 1/ days from notice of :dgment or denial of the motion for
reconsideration%
1% A petition for certiorari nder )le 6/ cannot be a sbstitte for a lost appeal nder )le ,/+ hence$ it
shold be dismissed%
7% A party cannot file a petition both nder )les ,/ and 6/%
F. PRESCRIPTION OF ACTIONS
1. Mo)$ &*(.,+. I 3 $(!+.D<FEAll money claims of !or"ers$ inclding A6<s$
[2@"
prescribe in 3 $(!+ from the
time the case of action accred+ other!ise$ they shall be forever barred%
[2+"
2. I**/(* ".+,.++(*. I 5 $(!+. The 7#year prescriptive period in Article 141 solely applies to money claims bt not
to illegal dismissal cases !hich are not in the natre of money claims% The ,#year prescriptive period of illegal
dismissal cases is based on Article 11,6 of the Civil Code%
[2E"
3. U)2(.! *(#o! -!(&1.&. I 1 $(!. The prescriptive period for all complaints involving nfair labor practices is one
(1) year from the time the acts complained of !ere committed+ other!ise$ they shall be forever barred%
[2!"
Before
a criminal action for KLP may be filed$ it is a condition sine 8ua non that a final :dgment finding that an nfair
labor practice act !as committed by the respondent shold first be secred or obtained in the labor or
administrative case initiated before the Labor Arbiter or the Colntary Arbitrator$ as the case may be%
[)*"
1inal :dgment is one that finally disposes of the action or proceeding%6or instance$ if the remedy of appeal is
available bt no appeal is made$ then$ the :dgment is deemed final and e8ectory%&f an appeal is made$ then
the final :dgment rendered by the last tribnal$ say the *preme Cort$ to !hich the case !as elevated shold
be the rec"oning factor%
• I)1!!0-1.o) o2 -!+&!.-1.7 -!.o" o2 o22)++.
As far as KLP cases are concerned$ the rnning of the one (1) year prescriptive period is interrpted dring
the pendency of the labor case%
[)"
• E7.")1.(!$ 7(*0 o2 1' 2.)(* C0"/,)1 .) 1' *(#o! &(+.
&n KLP cases$ the final :dgment in the administrative case cannot be presented as evidence of the facts
proven therein or as evidence of the gilt of the respondent therein%&ts evidentiary or probative vale is
confined merely in proving the fact of compliance !ith the condition sine 8ua non prescribed by la!$ i.e.$ that
a final :dgment has been secred in the administrative proceeding finding that an nfair labor practice act
!as in fact committed by the respondent%
[)2"
5. O22)++ -)(*.;" #$ 1' L(#o! Co". I 3 $(!+.D==EThe prescriptive period of all criminal offenses penali;ed
nder the Labor Code and the ,ules to &"ple"ent the Labor *ode is three (7) years from the time of
commission thereof% 6ailre to initiate or file the criminal action or complaint !ithin the prescriptive period shall
forever bar sch action% The act of the employer in dismissing an employee !ithot case$ althogh a violation
of the Labor Code and itsimplementing rles$ does not amont to an ?offense@ as this term is nderstood and
contemplated nder Article 14.%
[)4"
4. OTHER RELEVANT PRESCRIPTIVE PERIODS UNDER THE LAW.
a% S.,-* .**/(* !&!0.1,)1 9 4 $(!+
b% I**/(* !&!0.1,)1 .)7o*7.)/ &o)o,.& +(#o1(/ 9 20 $(!+
c% D.+&.-*.)(!$ (&1.o) cases (PAEA) 9 3 $(!+
d% SSS 7.o*(1.o)+ 9 20 $(!+ from the time the delin'ency is "no!n or the assessment is made by the ***$
or from the time the benefit accres$ as the case may be%
e% E,-*o$+9 &o,-)+(1.o) claims 9 3 $(!+
f% Actions involving the 20)"+ o2 1' 0).o) 9 3 $(!+ from the date of sbmission of the annal financial report
to the 5epartment of Labor and Employment or from the date the same shold have been sbmitted as
re'ired by la!$ !hichever comes earlier%
oooooooooOoOooooooooo
#! 0ection #, Rule :, 20## N'R) Rules of 4rocedure.
2! @atling (ndustrial and )ommercial )orp. *. )oros, ,.R. No. #/6802, 5ctober #", 20#0.
"! RoEuero *. 4hilippine Air 'ines, (nc., ,.R. No. #/2"2., April 22, 200".
4! ,enuino *. N'R), ,.R. Nos. #426"22"", +ecember 4, 2006.
/! ,arcia *. 4hilippine Airlines, (nc., ,.R. No. #-48/-, $anuary 20, 200. 7?n 1anc8.
-! 0ection 4 a!, Rule :(, 20## N'R) Rules of 4rocedure.
[7] Gar!#a v. (-#&#..#ne A#r&#ne", (nc., ,.R. No. #-48/-, $anuary 20, 200. 7?n 1anc8!.
8! +elima *. ,ois, ,.R. No. #68"/2, $une #6, 2008.
.! 0ection 4, Rule 9(, 20## N'R) Rules of 4rocedureF 0ee old pro*ision of 0ection #0, Rule 9(, 200/ N'R) Re*ised Rules of 4rocedure.
#0! 0ection 6, Rule (((, 20#2 N'R) 0heriGs> @anual on ?Hecution of $udgment No*ember #/, 20#2!, eGecti*e $anuary ##, 20#".
##! ;abigue *. (nternational )opra ?Hport )orporation, ,.R. No. #8"""/, +ecember 2", 200..
#2! 0ection 22, ?Hecuti*e 5rder No. #2-.
[13] Do&e (-#&#..#ne", /n!. v. 8"$eva, G.R. No. 161115, Nov. 30, 2006.
#4! 0ection #6, Rule :(((, 1oo& :, Rules to (mplement the 'abor )ode, as amended by +epartment 5rder No. 4020", 0eries of 200",
Aeb. #6, 200"!.
#/! (bid.
#-! Article 2/8, 'abor )odeF 0ee also 0@) Iuarry 2 =or&ers Union J Aebruary 0iH @o*ement A0@! 'ocal )hapter No. #/-4 *.
;itan @egabags (ndustrial )orporation, supraF ;oyota @otor 4hils. )orporation =or&ers> Association 7;@4)=A8 *. )ourt of Appeals, ,.R.
No. #48.24, 0ept. 24, 200".
#6! 0ection #-, Rule 9(, 1oo& :, Rules to (mplement the 'abor )ode, as amended by +epartment 5rder No. 4020", 0eries of 200", Aeb.
#6, 200"!.
#8! Abbott 'aboratories 4hilippines, (nc. *. Abbott 'aboratories ?mployees Union, ,.R. No. #"#"64, $anuary 2-, 2000.
#.! 0ection #, Rule 99(((, 1oo& :, Rules to (mplement the 'abor )ode, as amended by +epartment 5rder No. 4020", 0eries of 200",
Aeb. #6, 200"!.
20! -t .as enunciated in DOLE Circular No. 1, Series of 2006 issued on August //, 200+ )y former 0!(# %ecretary
Arturo 0. 1rion, no. a distinguished mem)er of the 2ighest 3ourt and the 3hairman of the 20/4 1ar #5amination
3ommittee.
[21] Con$#nen$a& 3arb&e Cor.ora$#on v. NLRC, G.R. No. L'43825, 3a4 9, 1988.
[22] LGon Deve&o.men$ 6an=, [".ra]1 A&!an$ara , 5r. v. CA, [G.R. No. 143397, Ag"$ 6, 2002]1 0ee Le4$e /> 8&e!$r#! Coo.era$#ve, /n!. v. L828C+ /> 8m.&o4ee" Dn#on'ALD, G.R. No.
157775, +!$ober 19, 20071 Cen$ro 8"!o&ar Dn#ver"#$4 Ca!&$4 an7 A&&#e7 *or=er"'/n7e.en7en$ Dn#on v. Cor$ o% A..ea&", [G.R. No. 165486, 3a4 31, 2006, 490 0CRA 61, 69'70].
[23] 0#me Darb4 (#&#.#na" , /n!. v. 3ag"a&#n , G.R. No. 90426, De!. 15, 19891 No. 107, NC36 (r#mer on Gr#evan!e 0e$$&emen$ an7 >o&n$ar4 Arb#$ra$#on.
[24] 3an#&a 3#7$o:n Ao$e& v. >A 6orromeo , [G.R. No. 138305, 0e.$ember 22, 2004],
2/! Article 2.#, 'abor )ode.
2-! +egamo *. A*antgarde 0hipping )orp., ,.R. No. #/44-0, No*ember 22, 200/!F 0outheastern 0hipping *. Na*arra, $r., ,.R. No.
#-6-68, $une 22, 20#0!F @edline @anagement, (nc. *. Roslinda, ,.R. No. #-86#/, 0eptember #/, 20#0!.
26! 0ection #, Rule ((, 1oo& :((, Rules to (mplement the 'abor )odeF ?. ,an<on , (nc. *. N'R), ,.R. No. #2"6-., +ec. 22, #...F 0urima *.
N'R), ,.R. No. #2##46, $une 2-, #..8.
28! )allanta *. )arnation 4hilippines, ,.R. No. 60-#/, Aebruary 2., #.8-!F 0ee also 4'+; *. 4ingol , ,.R. No. #82-22, 0eptember 8,
20#0!F A<cor @anufacturing, (nc. *. N'R), ,.R. No. ##6.-", Aeb. ##, #...F 4remiere +e*elopment 1an& *. N'R), ,.R. No. ##4-./, $uly
2", #..8F %agonoy Rural 1an&, (nc. *. N'R), ,.R. No. #2206/, $an. 28, #..8, 28/ 0)RA 2.6.
2.! 4aragraph 2, Article 2.0, 'abor )odeF 0ection 2, Rule ((, 1oo& :((, Rules to (mplement the 'abor )ode.
"0! As pro*ided under Article 246 of the 'abor )ode.
"#! (d.
"2! (d.
""! Article 2.0, 'abor )ode.
[34] Ca&&an$a v. Carna$#on (-#&#..#ne", /n!., G.R. No. 70615, Ceb. 29, 1986.

Pow!" #$% &'()!o#*+#(!.&o,.-'
Pow!" #$% &'()!o#*+#(!.&o,.-'