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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
A ART 1. NAME OF DECREE
^ LABOR LEGISLATION - Consists of statutes,
regulations and jurisprudence governing the
relations between capital and labor, by providing
for certain standards of terms and conditions of
employment or providing a legal framework within
which these terms and conditions and the
employment relationship may be negotiated,
adjusted and administered. It is divided into labor
standards and labor relations.
^

LABOR STANDARDS - Are the minimum
requirements prescribed by existing laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.

^ LABOR RELATIONS LAW - defines the status,
rights,
and
duties
and
the
institutional
mechanisms that govern the individual and
collective interactions of employers, employees or
their representatives.
- The law which
seeks to stabilize the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.

A ART. 2. DATE OF EFFECTIVITY
^ The Labor Code took effect on November 1, 1974
(six months after its promulgation on May 1,1974)

^ SEVEN (7) BASIC RIGHTS OF
WORKERS AS GUARANTEED BY THE
CONSTITUTION (OCESHLP):
1.

Right to Organize
2. Right to Conduct Collective Bargaining
or Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities
including
strike
in
accordance with law
4. Right to Enjoy Security of Tenure
5. Right to Work Under Humane Conditions
6. Right to Receive a Living Wage

7.

Right to Participate in Policy &
Decision-Making Processes affecting
their rights and benefits as may be
provided by law

^ RELATED LAWS:
1. CIVIL CODE: see Arts. 1700, 1701and 1703
2. REVISED PENAL CODE: Art. 289
3. OTHERS: SSS Law, GSIS Law, Agrarian
Reform Law, the 13th month pay law, the
Magna Carta for Public Health Workers, etc.

^ RATIONALE :
- The raison d’ etre of labor laws is the POLICE
POWER of the State
A ART

3. DECLARATION OF
BASIC POLICY
The State shall afford protection to labor, promote
full employment, ensure equal work opportunities
regardless of sex, age or creed, and regulate the
relations between workers and employers. The
State shall assure the right of workers to selforganization, collective bargaining, security of
tenure, and just and humane conditions of work.

EMPLOYER - one who employs the services
of others; one for whom employees work and who
pays their wages or salaries.
EMPLOYEE - one who works for an
employer; a person working for salary or wages
A ART 4. CONSTRUCTION IN FAVOR OF
LABOR
^ CONSTRUCTION IN FAVOR OF LABOR
CLAUSE -this is with a view to apply the Code to
the greater number of employees to enable them to
avail of the benefits under the law (Abella vs.
NLRC). The working man’s welfare should be the
primordial consideration.
-

This rule is applicable if there is a doubt as to
the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its express terms.

-

These laws should be interpreted with a view
to the fact that they are remedial in nature,
they are enacted to better the lot

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon

SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

^ ART 6. APPLICABILITY

and promote the welfare of the members of the
laboring class.
-

^ AGRICULTURAL OR FARM WORKER one employed in an agricultural or farm enterprise
and assigned to perform tasks which are directly
related to the agricultural activities of the
employer, such as cultivation and tillage of the
soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.

Reservation of essential attributes of
sovereign power is read into contracts as
a postulate of the legal order.
- Courts adopt a liberal approach that
favors the exercise of labor rights. The
mandate under Art. 4 is simply to resolve
doubt, if any, in favor of labor. If there is
no doubt in implementing and interpreting
the law, labor will enjoy no built-in
advantage and the law will have to be
applied as it is.

^ MANAGEMENT RIGHTS: (CPST)
C
P
S
T

Right to conduct business
Right to prescribe rules
Right to select employees
Right to transfer or discharge employees

-

^ MANAGEMENT PREROGATIVE
Except as limited by special laws, an
employer is free to regulate, according to his own
discretion and judgment, all aspects of
employment, including:
HIRING,
WORK
ASSIGNMENTS,
WORKING METHODS, TIME PLACE AND MANNER
OF WORK, TOOLS TO BE USED, PROCESSES TO
BE FOLLOWED, SUPERVISION OF WORKERS,
WORKING
REGULATIONS,
TRANSFER
OF
EMPLOYEES, WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL AND
RECALL OF WORKERS. (HW5T2PLSD)
Thus, so long as management
prerogatives are exercised in good
faith for the advancement of the
employer’s interest and not for the
purpose
of
defeating
or
circumventing
the
rights
of
employees under special law or
under valid agreements, it shall be
upheld.

^ ART 5. RULES AND REGULATIONS
- The rules and regulations issued by the DOLE
shall
become
effective
15
days
after
announcement of their adoption in newspapers of
general circulation.

-

There may be in one employer both
agricultural as well as industrial workers.

-

PURPOSE of the provision: intended to
encourage workers to seek employment in
agricultural enterprises instead of migrating to
already overcrowded urban areas to find work
in industrial establishments

The LC applies to all workers, whether agricultural
or non-agricultural, including employees in a
government corporation incorporated under the
Corporation Code.

FARM
EMPLOYERFARM
WORKER
RELATIONSHI
P
- The lease is one
of labor with the
agricultural laborer
as the lessor of his
services and the
farm employer as
the lessee
- The agricultural
worker works for
the farm employer
and for his labor
he receives a
salary or wage,
regardless of
whether the
employer makes a
profit.

TENANCY
RELATIONSHIP

- It is the landowner
who is the lessor
and the tenant the
lessee of
agricultural land
- The tenant derives
his income from
the agricultural
produce or harvest

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon

Page 2 of
70

CHAPTER II
EMANCIPATION OF TENANTS

and placement of workers. The proviso merely
creates the presumption.

(Note: not included as per SC Memo)

A ART 16. PRIVATE RECRUITMENT
^ ENTITIES AUTHORIZED TO RECRUIT

A ART 7-11
-

Share tenancy has been abolished
placing in its stead leasehold system.
-

Under Art. 8, the land covered by operation
land transfer must be private agricultural land,
tenanted, primarily devoted to rice and/or
corn, and more than seven hectares in are.

^ Present retention limits:
-

5 hectares per landowner and 3 hectares per
child provided the child is:

1. Is at least 15 years of age; and
2. Actually tilling the land or directly managing
the farm

^ EXCEPTIONS:
-

those covered by homestead patents
those covered by PD 27

^ EMANCIPATION PATENT - is the title issued to
the tenant upon compliance with all the
requirements of the government. It represents the
full emancipation pf the tenant from the bondage
of the soil.

^ PROHIBITION AGAINST ALIENATION IS
INTENDED TO:
1. Preserve the landholding in the hands of the
owner-tiller and his heirs;
2. minimize land speculation; and
3. prevent a return to the regime of land
ownership by a few.

BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
A ART 13. DEFINITIONS
^ WORKER -any member of the labor force,
whether employed or unemployed
^ RECRUITMENT AND PLACEMENT - any act
of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes
referrals,
contract
services,
promising
or
advertising for employment, locally or abroad,
whether for profit or not; PROVIDED, that any
person or entity which, in any manner, offers or
promises for a fee employment to two or more
persons shall be deemed engaged in recruitment
and placement. (CEC-TUCP) (RCPA)
-The number of persons dealt with is not
an essential ingredient of the act of recruitment

1. Public employment offices
2. Private
recruitment
entities;
private
employment agencies
3. Shipping
or
manning
agents
or
representatives
4. The POEA
5. Construction contractors if authorized by the
DOLE and the Construction Industry Authority
6. Members of the diplomatic corps (but hirings
must also go thru POEA)
7. Other persons or entities as may be authorized
by the DOLE secretary

^ DOCUMENTATION OF WORKERS:
1. Contract Processing - workers hired thru the
POEA shall be issued the individual
employment contract and such other
documents as may be necessary for travel
2. Passport Documentation
3. Visa Arrangement

A ART 17. (POEA)
- POEA has taken over the functions of the OEDB

^ ADJUDICATORY FUNCTIONS OF THE
POEA :
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
b. Disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Filipino Migrant Workers

^ JURISDICTION TRANSFERRED TO THE
LABOR ARBITERS OF THE NLRC :
a. claims arising out of an employer-employee
relationship or by virtue of any law or contract
involving Filipino workers for overseas
deployment including claims for actual, moral,
exemplary and other forms of damages.
^ Venue - Money claims or claims for damages
should be filed before the Regional Arbitration
branch of the NLRC where the complainant resides
or
where
the
principal
office
of
the
respondent/employer is situated, at the option of
the complainant.
^ Compromise Agreement - Consistent with the
policy encouraging amicable settlement of labor
disputes, Sec 10, RA 8042 allows resolution by
compromise of cases filed with the NLRC.
^ PREMATURE TERMINATION OF CONTRACT Where the worker’s employment contract is
terminated long before its agreed termination date,
and the termination is not shown to be based on
lawful or valid grounds, the employer will be
ordered to pay the workers their salaries

corresponding to the unexpired portion of their
employment contract. (Tierra Int’l Construction
Corp. vs. NLRC).
HOWEVER, under R.A. 8042, if the illegal
dismissal took place on or after July 15, 1995, the
illegally dismissed overseas worker shall be
entitled to the full reimbursement of his placement
fee with interest at the rate of 12% per annum plus
salary for the unexpired portion of his employment
contract or for 3 mos. for every year of the
unexpired term whichever is LESS.

-

-

Claims for death and burial benefits involving
seamen OCWs which the POEA has
jurisdiction are not the same as the claims
against the State Insurance Fund of the LC.

The basis for the award of backwages is the
parties” employment contract, stipulating the
wages and benefits.
-

The fact that the employee has signed a
satisfaction receipt does not result in waiver;
the law does not consider as
valid any agreement to receive less compensation
than what the worker is entitled to recover.
(MR Yard Crew Union vs. PNR)

A ART 18. BAN ON DIRECT-HIRING
^ Direct hiring of Filipino workers by a foreign
employer is not allowed.
^ EXCEPTIONS :
the members of the diplomatic corps; international
organizations; such other employers as may be
allowed by the Department of Labor and
employment
1. name hirees - individual workers who are able
to secure contracts for overseas employment
on their own efforts and representations
without the assistance or participation or any
agency

^ RATIONALE OF THE PROHIBITION Filipino workers hired directly by a foreign
employer, without government intervention may
not be assured of the best possible terms and
conditions of work. The foreign employer must
also be protected and may chance upon a Filipino
worker who do not possess sufficient knowledge
for which he is employed.

^ MINIMUM EMPLOYMENT
CONDITIONS OF OVERSEAS
EMPLOYMENT:
1.

2.
3.
4.
5.

Guaranteed wages for regular working
hours and overtime pay for services
rendered beyond regular working
hours in accordance with the
standards
established
by
the
Administration
Free Transportation from point of hire to site
of employment and return;
Free emergency medical and dental treatment
and facilities;
Just causes for termination of the contract or
of the services of the workers;
Workmen’s compensation benefits and war

hazard protection;
Repatriation of worker’s remains and
properties in case of death to the point of hire,
or if this is not possible the possible
disposition thereof
7. Assistance on remittance of worker’s salaries,
allowances or allotments to his beneficiaries;
and
8. Free and adequate board and lodging facilities
or compensatory food allowance at prevailing
cost of living standards at the jobsite.
A ART 22. MANDATORY REMITTANCE OF
FOREIGN EXCHANGE EARNINGS
6.

^ MANDATORY REMITTANCE REQUIREMENTS:
1. Seamen or mariners: 80% of the basic salary;
2. Workers
for
Filipino
Contractors
and
Construction Companies: 70% of the basic
salary;
3. Doctors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities: same as
#2
4. All other professionals without board and
lodging: 50% of the basic salary;
5. Domestic and other service of workers; 50% of
the basic salary.

A ART 25. PRIVATE SECTOR
PARTICIPATION IN THE RECRUITMENT
AND PLACEMENT OF WORKERS
^ QUALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM:
1. Filipino citizens, partnerships or corporations
at least 75% of the authorized and voting
capital stock of which is owned and controlled
by Filipino citizens;
2. Minimum capitalization of 1M in case of single
proprietorship or partnership and a minimum
of 1M paid-up capital for corporations;
3. Those not otherwise disqualified by law or
these guidelines to engage in the recruitment
and placement of workers for overseas
employment
~ DISQUALIFICATIONS:
1. Travel agencies and sales agencies of airline
companies;
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
3. Corporations and partnerships, when any of
its officers, members of the board or partners,
is also an officer, member of the board or
partner of a corporation engaged in the
business of a travel agency.
4. Persons, partnerships, or corporations which
have derogatory records;
5. Persons employed in the Department of Labor
or in other government agencies directly
involved in overseas employment program
and their relatives within the 4th degree of
consanguinity or affinity; or
6. Those whose license has been previously
canceled or revoked.

CHAPTER II
REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
A ART 29. NON-TRANSFERABILITY OF
LICENSE OR AUTHORITY
-

-

No license or authority shall be used directly
or indirectly by any person other than the one
in whose favor it was issued
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
Licensees or holders of authority or their duly
authorized representatives may as a rule,
undertake
recruitment
and
placement
activities only at their authorized official
addresses.

-

Change of ownership or relationship of single
proprietorship licensed to engage in overseas
employment shall cause the automatic
revocation of the license.

-

All overseas landbased workers shall be
provided both life and personal accident
insurance.

A ART 32. FEES TO BE PAID BY WORKERS
-

Suspension or cancellation of licenses may
include award of damages to repair the injury
caused to its victims.

A ART 34. PROHIBITED PRACTICES
-

A supplementary contract beneficial to worker
not violative of protection afforded by the
State to workers.

A ART 35. SUSPENSION AND/OR
CANCELLATION OF LICENSE OR
AUTHORITY
^
NON-LICENSEE
OR
NON-HOLDER
OF
AUTHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and placement
by the Secretary of Labor, or whose license or
authority has been suspended, revoked, or
cancelled by the POEA and the Secretary.

^ GROUNDS FOR DISCIPLINARY
ACTION (Under the MWA of 1995) ;
1. Commission of a felony punishable by the
laws of the Philippines or by the host country;
2. Drug addiction or possession or trafficking of
prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the laws of the
of the host country prohibit the same;
5. Gambling, especially where the laws of the
host country prohibit the same;
6. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actions;
7. Creating trouble at the worksite or in the
vessel;
8. Embezzlement of company funds or of money
an properties of a fellow worker entrusted for
delivery to kins or relatives in the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly
weapons;
13. Unjust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agency; and
14. Violation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.

A ART 31. BONDS
-

Cash bond filed by applicants for license or
authority is not subject to garnishment
by judgment creditor of agency

CHAPTER III
MISCELLANEOUS PROVISIONS
A ART 38. ILLEGAL RECRUITMENT (as
per RA 8042 otherwise known as the
Migrant Workers’ Act of 1995)
^ ILLEGAL RECRUITMENT - Any act of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring workers
and includes referring contract services, promising
or advertising for employment abroad, whether for
profit or not when undertaken by a non-licensee or
non-holder of authority.
PROVIDED that any such non-licensee or
non-holder of authority who in any manner, offers
or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall
likewise include the commission of prohibited acts
whether committed by a non-licensee or nonholder of authority or a licensee or holder of
authority.

^ PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
C to charge or accept amount beyond amount
allowed by law
F to furnish or publish false notice or information
in relation to Recruitment and Placement
G to give any false notice and information or

commit any act of misrepresentation to secure
license or authority I Induce or attempt to induce
workers to quit employment to offer him another
except if the transfer is to liberate a worker from
oppressive terms and conditions of employment
(NOTE: it is not necessary that worker was actually
induced or did quit employment)
I to influence or attempt to influence any person or
entity not to employ any worker who has not
applied for employment in his agency E to
engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the Phil.
O
Obstruct or attempt to obstruct
inspection by Secretary
F
Fail to file reports
S
Substitute or alter employment contracts
B
Become officer or Board member of
corporation engaged in travel agency W
Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
F Failure to actually deploy without valid reason as
determined by the DOLE

TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS

F Failure to reimburse expenses incurred by the
worker
in
connection
with
his
documentation
and
processing
for
purposes of deployment, in cases where
the deployment does not actually take
place without the worker’s fault

^

A ART 40. EMPLOYMENT PERMIT OF NONRESIDENT ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure employment
permit from the DOLE upon determination of the
non-availability of a person in the Philippines who
is competent, able and willing at the time of the
application to perform the services for which the
alien is desired.

THE QUALIFYING CIRCUMSTANCES
THAT
WOULD
MAKE
ILLEGAL
RECRUITMENT
AS
A
CRIME
INVOLVING ECONOMIC SABOTAGE
ARE :

When committed by a SYNDICATE i.e., if it is
carried out by a group of three (3) or more
persons conspiring and confederating with
one another; or
(a) When committed in a LARGE SCALE
i. e., if it is committed against three (3) or
more persons

^ VENUE OF ACTIONS ON ILLEGAL
RECRUITMENT:
1. RTC of the province or city where the offense
was committed; or
2. where the offended party resides at the time of
the commission of the offense
® at the option of the complainant
-

These circumstances only qualify. They do not
define the offense themselves

-

Recruitment and placement activities of agents
or representatives appointed by a licensee,
whose appointments were not previously
authorized by the POEA shall likewise
constitute illegal recruitment.
ART.
38
(
c
)
declared
unconstitutional since only a judge
may issue search warrant/ warrant of
arrest. The Sec. Of Labor may only
recommend not issue. However,
Closure of establishments of illegal
recruiters may still be ordered by
Secretary of Labor, same being
essentially
administrative
and
regulatory in nature.(Salazar vs.
Achacoso and Marquez)

-

Foreigners may not be employed in certain
nationalized business.

a non-resident alien worker and the employer shall
bind themselves to train at least 2 Filipino
understudies.

^ PROHIBITION
EMPLOYMENT OF ALIENS

AGAINST

Section 2-A of the Anti-Dummy Law prohibits the
employment of aliens in establishment or entities
which have under their name or control a right,
franchise, privilege, property or business the
exercise or enjoyment of which property or
business the exercise or enjoyment of which is
expressly reserved by the Constitution or the laws
to citizens of the Philippines or to corporations or
associations at least 60% of the capital of which is
owned by such citizens.

^ EXCEPTIONS TO THE PROHIBITION:
a. where the Secretary of Justice specifically
authorizes the employment of technical
personnel; or
b. where the aliens are elected members of the
board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.

^ PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however, That
illegal recruitment cases involving economic
sabotage shall prescribe in twenty (20) years.

BOOK TWO

HUMAN RESOURCES
DEVELOPMENT

requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training

TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM

^ ON-THE-JOB TRAINING - the practical work
experience through actual participation in
productive activities given to or acquired by an
apprentice

CHAPTER I
NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
THEIR IMPLELENTATION

^ HIGHLY TECHNICAL INDUSTRIES - trade,
business, enterprise, industry or other activity,
which is engaged in the application of advanced
technology

A ART 45. DEFINITIONS
^ MANPOWER - that portion of the nation’s
population which has actual or potential capability
to contribute directly to the production of goods
and services.

A ART 59. QUALIFICATIONS OF
APPRENTICES

^ ENTREPRENEURSHIP - training for selfemployment or assisting individual or small
industries within the purview of this the LC.

1.

^ Qualifications of an Apprentice

TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS

1.
2.
3.

2.

at least 15 years of age; provided those who
are at least 15 years of age but less than
eighteen may be eligible for apprenticeship
only in non-hazardous occupations and the
apprenticeship agreement shall be signed in
his behalf by the parent or guardian or
authorized representative of DOLE.
vocational aptitude/ capacity for appropriate
test
ability to comprehend and follow oral and
written instructions

CHAPTER I
APPRENTICES

3.

Types of Special Workers:

A ART

Apprentice
Learners
Handicapped

- Only employers in highly technical industries
may
hire
apprentices
and
only
in
apprenticeableoccupations as determined by
the Sec. Of Labor

A ART 58. DEFINITION OF TERMS

^ Requisites for a VALID APPRENTICESHIP

^ APPRENTICESHIP - practical training on the job
supplemented by related theoretical instruction

1.
2.

^ APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter

3.

^ APPRENTICEABLE OCCUPATION - any
trade, form of employment or occupation which
^ APPRENTICESHIP AGREEMENT - an
employment contract wherein the employer

A ART 71. DEDUCTIBILITY OF TRAINING
COSTS

4.

60. EMPLOYMENT OF APPRENTICES

QUALIFICATIONS OF THE APPRENTICE
APPRENTICESHIP AGREEMENT DULY EXECUTED
AND SIGNED PROVIDING FOR COMPENSATION
NOT LESS THAN 75% OF THE APPLICABLE
MINIMUM WAGE, EXCEPT ON-THE-JOB TRAINING
(OJT)
APPRENTICESHIP
PROGRAM
DULY
APPROVED BY DOLE
PERIOD OF APPRENTICESHIP SHALL NOT
EXCEED 6 MONTHS.

^ Requisites for tax deductions in case
employers have apprenticeship programs:

learner as regular employee if he desires upon
completion of learnership
4. In case of
pretermination of
4. Learner is
the apprenticeship
considered as a
agreement, the
regular employee
worker is not
in case of
considered as a
pretermination of
regular employee
contract after 2

1.

Program duly recognized by the Department of
Labor
2. Deduction shall not exceed 10% of direct labor
wage
3. Pay his apprentices the minimum wage

A ART 72. APPRENTICES WITHOUT
COMPENSATION

mos. of training
and the dismissal
is without fault of
learner

^ Apprentices who may be hired without
compensation:

5. Highly technical
industries and only
in industrial
occupation

1 .those whose training on the job is required by
the school;
2. Training Program Curriculum;
3. Requisite for Graduation; or
4. A requisite for Board Examination

5. Semi-skilled /
industrial
occupations

Learners in piecework/ incentive - rate jobs are to
be paid in full for the work done.

CHAPTER
II
LEARNER
S

CHAPTER III
HANDICAPPED WORKERS
A ART 78. DEFINITION

A ART 73. LEARNERS DEFINED
^ LEARNERS - persons hired as trainees in semiskilled and other industrial occupations which are
non-apprenticeable and which may be learned thru
practical training on the job in a relatively short
period of time which shall not exceed 3 mos.

APPRENTICESHIP
1. Practical training on
the job
supplemented
by
related
theoretical
instruction.

2. Not less than 3
months practical
training on the job
but not more than
6 months
3. No Commitment to
hire

LEARNERSHIP
1. Hiring of persons as
trainees in semiskilled and other
industrial
occupations
which are nonapprenticeable
and which may be
learned thru
practical training
on the job in a
relatively short
period of time.
2. Practical training on
the job not to
exceed 3 mos.

3. With Commitment to
employ the

^ HANDICAPPED WORKERS - Are those whose
earning capacity is impaired by age or physical or
mental deficiency or injury.
-

Subject to the provisions of the Code,
handicapped workers may be hired as regular
workers, apprentices or learners if their
handicap is not such as to effectively impede
the performance of job operations in the
particular occupations for which they were
hired.
-

qualified disabled employee shall be subject to
the same terms and conditions of employment
and the same compensation, privileges,
benefits, fringe benefits, incentives or
allowances as a qualified able-bodied person.
Even a handicapped worker can acquire the
status of a regular employee.

^ Duration of employment - no minimum, no
maximum. Dependent on agreement but is
necessary that there is a specific duration

BOOK THREE
CONDITIONS OF EMPLOYMENT

TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
A ART 82. COVERAGE
^ ELEMENTS OF EMPLOYER- EMPLOYEE
RELATIONSHIP:
1. selection and engagement of the employee
2. the payment of wages
3. the power of dismissal
4. the employer’s power to control the employee
(with respect to the means and methods by
which the work is to be accomplished)
- The last element as mentioned above is what is
known as the CONTROL TEST - whether the
employer controls or has reserved the right to
control the employee not only as to the result
of the work to be done but also as to the
means and methods by which the same is to
be accomplished. This last element is the
most important index of the existence of the
relationship.
^ EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the “hirer” who, directly or
through an agent, supervises or controls the
work performance and pays the salary or
wage of the hire.

^ WORKERS PAID BY RESULTS - Method of
computing compensation based on the work
completed and not on the time spent in
working.
^ PIECE-RATE METHOD - Where pay is dependent
on unit of product finished, preferred where the
work process is repetitive and the out put is
standardized and easily countable. DOMESTIC
HELPERS/ PERSONS RENDERING PERSONAL
SERVICES - Perform services in the employers
home which are usually necessary and desirable
for the maintenance or enjoyment thereof, or
ministers to the personal comfort, convenience or
safety of the employer, as well as the members of
the employer’s household.
-

The existence of employment relationship is
determined by law and not by contract.

-

Whether or not an employer-employee
relationship exists between the parties is a
question of fact. The findings of the NLRC are
accorded not only respect but finality if
supported by substantial evidence.

^ MANAGEMENT PREROGATIVE - except as
otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools to
be used, processes to be followed, supervision of
workers,
working
regulations,
transfer
of
employees, work supervision, lay-off of workers
and discipline, dismissal and recall of workers.
-

^ Employees Exempt from the Benefits of
E-E Relationship
1. Government Employees
2. Managerial Employees
3. Field Personnel
4. Family Members dependent on the employer
for support
5. Domestic Helpers
6. Persons on the Personal Service of another
7. Workers Paid by Result
^ GOVERNMENT EMPLOYEES - Refers only to
employees
of
government
agencies,
instrumentalities or political subdivisions
and of government corporations that are not
incorporated under the Corporation Code,
meaning those which have original charters.
^ MANAGERIAL EMPLOYEES - Refer to those
whose primary duty consists of the
management of the establishment in which
they are employed or of a department or
subdivision thereof and to other members of
the managerial staff
^ Note: Definition applies only to the 8hour Labor law
^ FIELD PERSONNEL - Refer to non- agricultural
employees who regularly perform their duties
away from the principal place of business or
branch office of the employer and whose
actual hours of work in the field cannot be
determined with reasonable certainty.

Management prerogative recognizes the right
of the employer to advance its interest to
prescribe standards of work and impose
reasonable quotas or work assignments, and
failure on the part of the employees to meet
the requirement, impose in good faith,
constitutes a just cause for his dismissal.

- New owner/management group has no obligation
to re-employ workers who freely and
voluntarily accepted their separation pay and
other benefits. A
change of ownership in a business concern is
not proscribed by law.

& ART 83. NORMAL HOURS OF WORK
- Shall not exceed 8 hours in a regular working day
^ PURPOSE

-

to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts

^ REGULAR WORKING DAYS: The regular working
days of covered employees shall not be more than
five days in a workweek. The workweek may begin
at any hour and on any day, including Saturday or
Sunday, designated by the employer.
^ ART 84. HOURS WORKED SHALL
INCLUDE:

1. All time

during which

an employee

is

required to be on duty or to be at a prescribed
workplace; and
2. All time during which
an employee is
suffered or permitted to work

part of the job, it is compensable
^ WAITING TO BE ENGAGED - idle time is not
working time, not compensable ^ WHEN TRAVEL
TIME COMPENSABLE:

^ PRINCIPLES IN DETERMINING HOURS
WORKED:

1. All hours are hours worked which
the
employee is required
to give to
his
employer, regardless of whether or not such
hour are spent in productive labor or involve
physical or mental exertion;
2. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere whether
within or outside the premises of his
workplace;
3. If the work performed was necessary, or it
benefited the employer, or the employee could
not abandon his work at the end of his normal
working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
work is with the knowledge of his employer or
immediate supervisor
4. The time during which an employee is inactive
by reason of interruptions in his work beyond
his control shall be considered time either if
the imminence of the resumption of work
requires the employee’s presence at the place
of work or if the interval is too brief to be
utilized effectively and gainfully in the
employee’s own interest.

1. Travel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace, the
time spent on travel is compensable
2. Travel that is all in a day’s work- time spent by
an employee in travel as part of his principal
activity, such as travel from jobsite to jobsite
during the workday, must be counted as hours
worked.
3. Travel away from home- travel that keeps an
employee away from home overnight.
- Work hours of seamen are governed by the same
rules as land based employees. Thus, they
must show sufficient proof that said work is
actually performed.
Rest Periods of short duration during working
hours shall be considered as hours worked.
Preliminary
activities
compensable
when
controlled or required by employer and are
pursued necessarily and primarily for the
employer’s benefit,

<A ART 85. MEAL PERIODS ^

MEAL PERIODS

- Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
^ ENGAGED TO WAIT - when waiting is an integral

1. Should not be less than sixty (60) minutes, and
is time-off/non-compensable
2. Under specified cases, may be less than sixty
(60) minutes, but should not be less

^ OVERTIME PAY- Additional compensation for

than twenty (20) minutes an must be with full pay.
3. If less than twenty(20) minutes, it becomes
only a rest period and is thus considered as
work time

work performed beyond eight (8) hours within
the worker’s 24-hour workday.
30% of 130% if on a special holiday/rest day
1. 25% of regular wage if done on a regular
workday
2. 30% of 150% if on special holiday AND rest
day
3. 30% of 200% if on a regular holiday

^ NOTE: Employee must be completely relieved
from
duty.
Otherwise, it is
compensable as hours worked.
-

-

Mealtime is not compensable EXCEPT in cases
where the lunch period or meal time is
predominantly spent for the employer’s
benefit or where it is less than 60 minutes.
Employees may request that their meal period
be shortened so that they can leave work
earlier that the previously established
schedule.

^ RATIONALE
-

employee is given OT pay because he is made to
work longer than what is commensurate with his
agreed compensation for the statutorily fixed or
voluntarily agreed hours of labor he is supposed to
do.
-

~ REQUISITES :
1. The employees voluntarily agree in writing to a
shortened meal period and are willing to waive
the overtime pay for such shortened meal
period;
2. No diminution whatsoever in the salary and
other fringe benefits of the employees existing
before the effectivity of the shortened meal
period;
3. Work does not involve strenuous physical
exertion and they are provided with adequate
coffee breaks;
4. The value of benefits is equal with the
compensation due them for the shortened
meal period
5. OT pay will become due and demandable after
the new time schedule; and
6. The arrangement is of temporary duration.
A ART

86. NIGHT SHIFT DIFFERENTIAL

^ NIGHT SHIFT DIFFERENTIAL -Additional
compensation of not less than ten percent (10%) of
an employee’s regular wage for every hour of work
done between 10:00 PM and 6:00 AM, whether or
not this period is part of the worker’s regular shift.
-

^ NOTE: OT pay will not preclude payment of night
shift differential pay.
-

- it serves as an inducement of employment
1. When the waiver stipulates higher payment or
rate of OT pay; or
2. Where the contract of employment requires
work for more than eight hours of work at
specified wage per day providing for a fixed
hourly rate or that the daily wages include
overtime pay.

Meal periods during overtime work is not
given to workers performing overtime for
the reason that OT work is usually for a short
period ranging from one to three hours and to
deduct from the same one full hour as meal
period would reduce to nothing the
employee’s OT work.

^ WORK DAY - the 24-hour period which
commences from the time the employee regularly
starts to work. e.g., if the worker starts to work 8
am today, the workday is from 8am today up to 8
am tom.
-

The minimum normal working hours fixed by
the Act need not be continuous to constitute
the legal working day

-

Express approval by a superior is not a
prerequisite
to
make
overtime
work
compensable. HOWEVER, written authority
after office hours during rest days and
holidays are required for entitlement to
compensation.

If work done between 10 PM and 6 AM is
overtime work, then the 10% night shift
differential should be based on his overtime
rate.

^ RATIONALE

As a rule, cannot be waived, as it is intended
to benefit laborers and employees. But when
the waiver is made in consideration of
benefits and privileges which may even
exceed the overtime pay, the waiver may be
permitted.

-

The right to OT pay cannot be waived.
Such waiver is contrary to law and public
policy.
^ COMPRESSED WORKWEEK -allowable
under the following conditions:

^ EXCEPTIONS:

1.

It is voluntary on the part of the worker

A ART

87. OVERTIME WORK

2. There will be no diminution of the weekly or
monthly take-home pay and fringe benefits of
the employees;
3. The value of the benefits that will accrue to the
employees under the proposed schedule is
more than or at least commensurate with the
one-hour OT pay that is due them during
weekdays
based
on
the
employee’s
quantification
4. The one-hour OT pay will become due and
payable if they are made or permitted to work
on a day not scheduled for work on the
compressed work week
5. The work does not involve strenuous physical
exertion and employees must have adequate
rest periods
5. The arrangement is of temporary duration.

emergency in the locality
U 3. There is urgent work to be performed on
machines, installations, or equipment in
order to avoid serious loss/damage to the
employer or some other causes of similar
nature
N 4. Work is necessary to prevent loss/damage to
perishable goods; and
C 5. where the completion or continuation of the
work started before the eighth hour is
necessary to prevent serious obstruction
or prejudice to the business or operations
of the employer.
N 6. when it is necessary to avail of favorable
weather or environmental conditions
where performance or quality of work is
dependent thereon

A ART 88. UNDERTIME NOT OFFSET BY
OVERTIME

A ART 90. REGULAR WAGE

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

- include the cash wage only, without deduction on
account of facilities provided by the employer

CHAPTER II
WEEKLY REST PERIOD
A ART 91. RIGHT TO A WEEKLY REST
DAY

^ RATIONALE

-

Employees should be provided a rest
period
of not less than twenty four (24) consecutive
hours after every six (6) consecutive normal
work days.

- An employee’s regular pay rate is lower than the
overtime rate. Offsetting the undertime hours
against the overtime hours would result in
undue deprivation of the employee’s extra pay
for overtime work.
-

A ART 89. EMERGENCY OVERTIME WORK
^ WHEN WORKER MAY BE REQUIRED TO
RENDER OT:
(WNUNCN)
W
1. Country is at war or any other
national/local emergency has been
declared by the Chief Executive/Congress
N
2. Necessary to prevent loss of
life/property/ in case of actual/impending
1. In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
2. urgent work to be performed on the machinery,
equipment or installation to avoid serious loss
which the employer would otherwise suffer

Employer shall schedule the weekly rest day of
his employees subject to collective bargaining
agreement. However, the employer shall
respect the preference of employees as to
their weekly rest day when such preference is
based on religious grounds. But when such
preference will prejudice the operations of the
undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly rest
day that meets the employee’s choice for at
least two (2) days a month

A ART 92. WHEN EMPLOYER MAY
REQUIRE WORK ON A REST DAY
^ WHEN EMPLOYEE MAY BE REQUIRED
TO RENDER WORK ON A REST
DAY:
3. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be expected to resort to other
measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous operation
for seven days a week
6. work is necessary to avail of favorable weather
or
environmental
conditions
where
performance or quality of work depends upon

REGULAR
HOLIDAY

SPECIAL
HOLIDAY

- compensable even

- not compensable if

them

^ ART 93. COMPENSATION FOR REST
DAY, SUNDAY OR HOLIDAY WORK
- this article does not prohibit a stipulation in the
CBA for higher benefits

^ SPECIAL HOLIDAYS
1. All Saint’s Day -November 1
2. Last Day of the Year-December 31
3. And all other days declared by law or
ordinances to be a special holiday or nonworking day

^ HOLIDAY PAY - A day’s pay given by law to an
employee even if he does not work on a
regular holiday. It is limited to the ten (10)
regular holidays listed by law.
- employee should not have been absent without
pay on the working day preceding the regular
holiday
Art. 94(b) refers to regular holidays, special
holidays are taken care of under Art. 93.
^ PREMIUM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.

^ REGULAR HOLIDAYS:
NOTE: worked = regular wage plus 30% premium
pay not worked = none

^

ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY, SUNDAY OR
HOLIDAY WORK:

1. Work on a scheduled rest day - 30% of regular
wage
2. No regular workdays and rest days -30% of
regular wage for work on Sundays & Holidays
3. Work on Special Holidays -30% of regular
wage
4. Holiday Work falls on Scheduled Rest Day 50% of regular wage

CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES

1. New Year’s Day -January 1
2. Maundy Thursday -Movable date
3. Good Friday- Movable date
4. Araw ng Kagitingan -April 9
5. Labor Day -May 1
6. Independence Day -June 12
7. National Heroes Day'-Last Sunday of August
8. Bonifacio Day-November 30
9. Christmas Day-December 25
10. Rizal Day-December 30
Note: Compensable whether worked or unworked.

^ DOUBLE HOLIDAY PAY
1. 200% of the basic wage provided, he works on
that day and was present or on leave with pay
on the preceding workday. If on leave without
pay, rate still applies if leave is authorized.
2. 400% if he worked - as per DOLE Memo if there
are 2 regular holidays in one day eg. April 9
and Good Friday. Provided the employee
worked on the day prior to the regular holiday
or on leave with pay or on authorized
absence.
3. If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day before the
scheduled regular holiday to be entitled to
compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.

if unworked subject to
certain conditions

unworked

- limited to the 10
enumerated by the
LC

- not exclusive since
law may provide
for other special
holidays

- rate is twice the
regular rate if
worked

- rate is 130% if
worked

A ART 95. RIGHT TO SERVICE INCENTIVE
LEAVE
^ SERVICE INCENTIVE LEAVE (SIL) - Five (5) days
leave with pay for every employee who has
rendered at least one (1) year of service.

^ BUT DOES NOT APPLY TO THOSE WHO
ARE:
already enjoying the said benefits; or enjoying
vacation leave with pay for at least 5 days
those employed in establishments regularly
employing less than 10 employees those employed
in establishments exempted from granting this
benefit by the Secretary of Labor.
^ ONE (1) YEAR OF SERVICE.- service within 12
months, whether continuous or broken, reckoned
from the date the employee started working
including authorized absences and paid regular
holidays unless the number of working day in the
establishment as a matter of practice or policy, or
provided in the employment contract is less than
12 mos.
- SIL is commutable i.e., convertible to cash- the
cash equivalent is aimed primarily at
encouraging workers to work continuously
and with dedication to the company.
A ART

96. SERVICE CHARGES

^ TO BE DISTRIBUTED TWICE A
MONTH AND AT THE RATE OF:
1. 85% for all covered employees to be equally
distributed among them
2. 15% for management (may answer for losses
and breakages or distributed to management)

A ART

87. OVERTIME WORK

considered integrated in their wages on the
basis of the average monthly share of each
employee for the past 12 months immediately
preceding the abolition.

TITLE
II
WAGE
S
CHAPTER I
PRELIMINARY MATTERS

A ART 97. DEFINITION

^ WAGE - the remuneration or earnings, however
designated, capable of being expressed in
terms of money, whether fixed or ascertained
on a time, task, piece, or commission basis or
other method or calculating the same, which
is payable by an employer to an employee
under a written or unwritten contract of
employment for work done or to be done or
for services rendered or to be rendered and
includes the fair and reasonable value of
board, lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAY’S WAGE FOR A FAIR DAY’S LABOR - if
there is no work performed by the
employee, there can be no wage or pay
unless the laborer was able, willing, and
ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.

WAGE

SALARY

- compensation for
manual labor

- denotes higher
degree of
employment

- Not subject to
execution

- subject to execution
(Gaa vs. CA)

FACILITIES - shall include all articles or
services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employer’s business.

SUPPLEMENTS
FACILITIES

If collection of service charges is abolished,
the share of covered employees shall be

- Are items of expense
necessary for the
laborer’s and his
family’s existence
and subsistence

- part of the wage

- deductible from the
wage

3. It is not due to an error in the construction
/application of a doubtful or difficult question
of law.

- Constitute extra
remuneration or
special privileges
or benefits given to
or received by the
laborers over and
above their
ordinary earnings
wages

-

BONUS _- A supplement or employment
benefit given under certain conditions, such
as success of the business or greater
production or output. As a rule, it is an
amount granted voluntarily to an employee
for his industry and loyalty which contributed
to the success and realization of profits of the
employer’s business. Therefore, from a legal
point of view, it is not a demandable and
enforceable obligation. Unless, it was
promised to be given without any conditions
imposed for its payment, as such, it is
deemed part of the wage.

- independent of the
wage

- not wage deductible

A ART. 98. APPLICATION OF TITLE
^ This Title shall not apply to the following:
1. household or domestic helpers
2. homeworkers engaged in needle-work
3. workers employed in any establishment duly
registered with the National Cottage Industry
4. Workers in any duly registered cooperatives

CHAPTER II
MINIMUM WAGE RATES

-

A ART 100. PROHIBITION AGAINST

-

ELIMINATION OR DIMUNITION OF
BENEFITS
^ LEGAL REQ’TS. BEFORE FACILITIES

CAN BE DEDUCTED FROM THE
EMPLOYEES’ WAGES:

But even in cases of error, it should be shown
that the correction is being done soon after
the discovery of the error.

^ 13 TH MONTH PAY (OR “ITS EQUIVALENT”)
-additional income based on wage required by P.D.
851 which is equivalent to 1/12 of the total basic
salary earned by an employee within a calendar
year.
may be given anytime but not later than Dec. 24

COVERAGE:
All rank-and-file employees regardless of their
designation or employment status and irrespective
of the method by which their wages are paid, are
entitled to this benefit, provided, that they have
worked for at least one (1) month during the
calendar year.

FORMS:

1. Proof that such facilities are customarily
furnished by the trade ;
2. Voluntarily Accepted in writing by the
employee
3. Charged at Fair & Reasonable Value

1.
2.
3.
4.

Christmas bonus
midyear bonus
profit sharing payments; and
other cash bonuses amounting to not less
than 1/12 of its basic salary.

^ THE NON-DIMINUTION RULE -the benefits being
given to employees cannot be taken back or
reduced unilaterally by the employer because
the benefit has become part of the
employment contract, written or unwritten.

-

Difference of opinion on how to compute the
13th month pay does not justify a strike

^ CATEGORIES OF PIECE-RATE WORKERS:

1. those who are paid piece rates as prescribed

-

It must always be in the form of legal tender .
Free rice, electricity cash and stock
dividends, COLA not equivalent
in Piece Rate Orders by the DOLE
2. Those who are paid output rates which are
prescribed by the employer and are not yet

The rule is applicable if it is shown that the
grant of the benefit is:
1. based on an express policy, or
2. has ripened into practice over a long period
of time, and the practice is consistent and A ART 101. PAYMENT BY RESULTS deliberate.

approved by the DOLE

days

^ WORKERS PAID ON PIECE-RATE BASIS shall refer to those who are paid a standard
amount for every piece or unit of work produced
that is more or less regularly replicated, without
regard to the time spent in producing the same.

- force majeure or other
circumstances________beyond_______the
employer’s control, payment must be
made immediately after such occurrence
have ceased.

BENEFITS PAYABLE TO PIECE-RATE WORKERS:

A ART.104. PLACE OF PAYMENT

1. Applicable statutory minimum daily rate;
2. Yearly service incentive leave of five days with
pay;
3. Night shift differential pay
4. Holiday pay
5. Meal and rest periods
6. OT pay (conditional)
7. Premium pay (conditional)
8. 13th month pay
9. other benefits granted by law, individual or
collective bargaining agreement or company
policy or practice.

^ WHERE TO PAY:

CHAPTER III
PAYMENT OF WAGES
A ART 102. FORMS OF PAYMENT
^ EMPLOYER CANNOT PAY HIS WORKERS BY
MEANS OF:

1.
2.
3.
4.
5.
6.
7.

promissory notes
vouchers
coupons
tokens
tickets
chits
or any object.

GENERAL RULE:

-

payment by legal tender

-

Shall be made at or near the place of
undertaking,
^ EXCEPTIONS:

1. When payment cannot be effected at or near
the place of work by reason of deterioration of
peace and security
2. When the employer provides for free
transportation to the employees back and
forth;
3. And under analogous circumstances
-

payment of wages in bars, night or day clubs,
massage clinics or similar establishments are
prohibited except for the workers therein.

PAYMENT THRU BANKS:
REQUISITES :

1. There must be written permission of the
majority of the employees concerned in an
establishment;
2. The establishment must have 25 or more
employees; and
3. The bank must be located within one kilometer
radius to the bank from the location of the
establishment
- payment through the ATM is allowed

EXCEPTIONS:
- checks or money orders may be paid if:
1. the same is customary on the date of
effectivity of the LC;
2. necessary because of special
circumstances; or
3. as stipulated in the CBA
^ WHEN TO PAY:

-

at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16)

A ART 105. DIRECT PAYMENT OF
WAGES
^ TO WHOM PAID

-

wages shall be paid directly to the workers to
whom they are due.
^ EXCEPTIONS:

a. in
case
of
force
majeure/special
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the deceased
worker to the heirs of the latter, through the
Secretary of Labor or his representative,
without
the
necessity
of
intestate
proceedings, after the heirs have executed an
affidavit attesting to their relationship to the
deceased and the fact that they are his heirs
to the exclusion of all others

A ART 106. CONTRACTOR OR SUBCONTRACTOR
^ LABOR ONLY CONTRACTING - where the person
supplying workers to an employer does not have
substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers recruited
and placed by such persons are performing
activities which are directly related to the principal
business of such employer.
^ INDEPENDENT CONTRACTOR - one who
exercises independent employment and contracts
to do a piece of work according to his own
methods and without being subject to control of
his employer except as to the result thereof.
-

A mere statement in a contract with a company
that laborers who are paid according to the
amount and quality of work are independent
contractors does not change their status as
mere employees in contemplation of labor
laws.

^
REQUISITES
FOR A
SUBCONTRACTING TO BE :

1.

CONTRACTING

OR

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

3. the agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all labor
and occupational safety and healthstandards,
free exercise of the right to selforganization,
security of tenure and social and welfare
benefits.
- Substantial capital need not be coupled with
LABOR ONLY
JOB
CONTRACTING
C
O
NT
R
A
CT
IN
G
1. Employer is treated
as direct employer
1. No E- E
of the person
relationship exist
recruited in all
between
instances
employer and
the contractor’s
employee except
when the
contractor or
subcontractor
fails to pay the
wages of his
employees
2. liability is limited
to unpaid wages
and other labor
standards
violations

3. Permissible
4. Contractor has
substantial
capital or
investment

2. liable to all rights
duties and
liabilities under
labor standards
laws including the
right to selforganization
3. Prohibited by
law
4. Contractor has no
substantial capital/
investment

investment in tools or equipment.
This is clear from the use of the conjunction
“or”.
^ WORKING CONDITIONS - Refers to the terms and
circumstances affecting the employment of an
employee, including policies, programs and
regulations governing his employment status,
work, and work relationships. They are, as a
rule, determined by the employer.

A ART. 110. WORKER PREFERENCE IN CASE OF
BANKRUPTCY

- This Article did not sweep away the overriding
preference accorded under thescheme of the
Civil Code to tax claims of the government.

A ART 113. WAGE DEDUCTION ^ ALLOWABLE
DEDUCTIONS:

-

just a preference, must yield to special
preferred credit, e.g. secured creditors

-

The formal declaration of insolvency or
bankruptcy or a judicial liquidation of the
employer’s business is a condition sine qua
non to the operation of the preference
accorded to workers under Art. 110.

WITH EMPLOYEES CONSENT:
1.
2.
3.
4.

6.

CHAPTER IV
PROHIBITIONS REGARDING WAGES
A ART 112. NON-INTERFERENCE IN DISPOSAL OF
WAGES
In relation to the Civil Code:

Art. 1705. The laborer’s wages shall be paid in
legal currency.
Art. 1706. Withholding of the wages except for a
debt due, shall not be made by the employer Art.
1707. The laborer’s wages shall be a lien on the
goods manufactured or the work done. Art. 1708.
The laborer’s wages shall not be subject to
execution or attachment except for debts incurred
for food, shelter, clothing, and medical attendance.
Art. 1709. The employer shall neither seize nor
retain any tool or other articles belonging to the
laborer.
^ PROHIBITIONS REGARDING WAGES:

1. Payment of wages with less frequency than
once (1) a month.
2. Limitations/Interference by the employer with
the employees freedom to dispose of his
wages.
3. Forcing, Compelling/Obliging employees to
purchase merchandise , commodities or other
properties from the employer or from any
other person, or to make use of any store or
service of such employer or any other person
4. Withholding of wages
5. Deduction of wages as consideration of a
promise of employment or retention in
employment
6. Refusal to pay/ Reduction of wages and
benefits, discharge/ discrimination against
any employee as retaliatory measures against
any employee who has filed any complaint or
instituted any proceedings against his
employer

SSS Payments
MEDICARE
Contributions to PAG-IBIG Funds
value of meals and others
5. payments to third persons with employees
consent
deduction of absences
W/OUT EMPLOYEES CONSENT:

1.

Worker’s insurance acquired by the employer
2. Union Dues, where the right to check-off has
been recognized by the employer
3. Cases where the employer is authorized by law
or regulations issued by the Secretary of
Labor
4. debts of the employee to the employer which
have become due and demandable
A ART 114. DEPOSITS FOR LOSS OR DAMAGE

- Deposits for Loss or Damage to tools, materials
and equipment supplied by the employer shall not
be made, EXCEPT when the trade, occupation or
businesses of the employer recognizes, or
considers the practice of making deductions or
requiring deposits necessary or desirable.
^ REQUISITES FOR DEDUCTION FOR LOSS OR
DAMAGE :

1. employee clearly shown responsible
2. opportunity to show cause to show why
deduction should not be made
3. deduction is fair and reasonable and shall not
exceed the actual loss or damage
4. does not exceed 20% of the employees wages
in a week.

CHAPTER V
WAGE STUDIES, WAGE
AGREEMENTS AND WAGE
DETERMINATION
A ART 122. CREATION OF THE REGIONAL
TRIPARTITE WAGES AND PRODUCTIVITY BOARDS

^ WHO MAY SET MINIMUM WAGE:

2.

1. Regional Tripartite Wages and Productivity
Board
Congress
MINIMUM WAGE - The lowest wage rate fixed by law

that an employer can pay his employees.
A ART. 123 WAGE ORDER

^ CORRECTING WAGE DISTORTION
Unionized Establishment

1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be
resolved through grievance procedure under
their CBA.
3. If the dispute remains unresolved, through
voluntary arbitration.

^ WAGE ORDER - an order issued by the Regional

Board whenever the conditions in the region so
warrant after investigating and studying all
pertinent facts and based on the standards and
criteria prescribed by the LC, the Regional Board
proceeds to determine whether to issue the same
or not.
^ EFFECTIVITY of a wage Order - it shall take effect

after 15 days from the its complete publication in
at least one newspaper of general circulation in the
region.
^ FREQUENCY of a wage order - Wage Order issued

by the Board may not be disturbed for a period of
12 months from its effectivity and no petition for
wage increase shall be entertained during said
period. EXCEPTION: When Congress itself issues a
law increasing wages.
A ART 124. STANDARDS/CRITERIA FOR MINIMUM
WAGE FIXING
^ FACTORS FOR DETERMINING
REGIONAL
MINIMUM
(DACNNIPFEE)

1.

4.

6.
7.

WAGE

Establishments without Unions

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

^ Is the employer legally obliged to try &
correct a wage distortion?
It appears so. Article 124 of the Code
provides that “ the employer and the union shall
negotiate to correct the distortions.” If there is no
union, “ the employer and the workers shall
endeavor to correct such distortions.

^ Must the previous pay gaps be restored?
While that is the aim, it need not
necessarily be restored to the last peso. An
appreciable differential, a significant pay gap should
suffice as correction of the distortion.

RATES

Demand for living wages;
2. Wage Adjustment vis-a vis the consumer price
index;
3. Cost of living and changes or increases
therein;
Needs of workers and their families;
5. Need to induce industries to invest in the
countryside;
Improvements in standards of living;
Prevailing wage levels;
8. Fair Return of the capital invested and
capacity to pay of employers;
9. Effects on Employment Generation and Family
Income;
10. Equitable Distribution of Income & Wealth
along the imperatives of economic and social
development
^ WAGE DISTORTION - situation where an increase

in prescribed wage rates results in the elimination
or severe contraction of intentional quantitative
differences in wage or salary rates between and
among employee groups in an establishment as to
effectively obliterate the distinctions embodied in
such wage structure based on skills, length of
service or other logical bases of differentiation.

CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
A ART. 128. VISITORIAL AND ENFORCEMENT POWER
A ART. 129. RECOVERY OF WAGES, SIMPLE
MONEY CLAIMS AND OTHER BENEFITS
-

Art. 129, the Regional Director is
empowered through summary proceeding and
after due notice, to hear and decide cases
involving recovery of wages and other
monetary claims and benefits, including legal
interests.

Under

^ REQUISITES :

1. The claim is presented by an employee or
person employed in domestic or household
service or househelper;
2. The claim arises from employer-employee
relations;
3. The claimant does not seek reinstatement; and
4. The aggregate money claim of each employee
or househelper does not exceed P5, 000.00
-

-

-

-

-

-

Access to employer’s records and premises
® the day/night whenever work is being
undertaken therein
® includes the right to copy therefrom, to
question any employee & investigate any
fact, condition or matter which may be
necessary to determine violations or
which may aid in the enforcement of the
Code and of any labor law, wage order, or
rules and regulations
Issue Compliance Orders (ART. 128)
®based on the findings of labor
employment and enforcement officers or
industrial safety engineers made in the
course of inspection
Issue Writs of Execution (ART. 128)
®for the enforcement of orders ®except in
cases where the employer contests the
findings of the said labor officers and
raises issues supported by documentary
proofs which were not considered in the
course of inspection.
Order
Work
Stoppage/Suspension
of
Operations
® when non-compliance with the law or
implementing rules and regulations poses
grave & imminent danger to the health
and safety of the workers in the
workplace.
Conduct Hearings within 24 hours
® to determine whether an order for
stoppage
of
work/suspension
of
operations shall be lifted or not.
® employer shall pay the employees
concerned their salaries in case the
violation is attributable to his fault
Require employers to keep and maintain
Employment Records
—® as may be necessary in aid of his
visitorial and enforcement powers

1. Visitorial and
enforcement
power of the
Secretary of
Labor /his duly
authorized
representatives
exercised
through routine
inspections of
establishments
2. requires the
existence of E-E
Relationship

3. No limit as to
amount of claim

4. Appeal is with
Sec.of Labor ;
period of appeal
is 10 calendar
days
5. Person exercising
the power is the
Sec. Of Labor or
any of his duly
authorized
representatives
who may or may
not be a regional
director

1. Power of the
Regional Director
or any duly
authorized hearing
officers to hear and
decide matters
involving the
recovery of wages,
upon complaint of
any interested
party
2. E-E relationship not
necessary since it
should not include
a claim for
reinstatement
3. Aggregate claim of
each complainant
does not exceed
P5,000
4. Appeal with NLRC;
period of appeal is
5 calendar days
5. The power is vested
upon a regional
director or any duly
authorized hearing
officer of the
DOLE.

TITLE III
WORKING CONDITIONS FOR
SPECIAL GROUP OF EMPLOYEES
CHAPTER I
EMPLOYMENT OF WOMEN
^ ART 130. NIGHTWORK PROHIBITION

- No woman , regardless of age, shall be employed
or permitted or suffered to work, with or
without compensation in any :
1. Industrial undertaking between 10PM-6AM
2. Commercial/Non-Industrial
undertaking
between 12 MN-6AM
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than 9
consecutive hours

ART 128

ART 129

A ART 131. EXCEPTIONS

1.

7.

Actual/Impending Emergencies
caused by serious accident, flood,
typhoon, epidemic or other disasters or
calamity, to prevent loss of life or
property, or in cases of force majeure or
imminent danger to public safety
2. Urgent work to be performed on machineries,
equipment or installation, to avoid serious
loss
3. Work is necessary to prevent serious loss of
perishable goods
4. Where she holds a responsible position of
managerial/technical
nature/engaged
to
provide health and welfare service
5. Nature of the work requires the manual skill
and dexterity of women workers & cannot be
performed with equal efficiency by male
workers
6. Where women workers are immediate family
members of the family operating the
establishment or undertaking
Analogous cases

2.

3.
4.
5.

6.

pregnancy of the probable date of her
childbirth
Full payment be advanced by the employer
within 30 days from the filing of the maternity
leave application
That payment of daily maternity benefits shall
be a bar to the recovery of sickness benefits
That the maternity benefits shall be paid only
for the first four (4) deliveries or miscarriages
That the SSS shall immediately reimburse the
employer of 100% of the amount of maternity
benefits advanced to the employee by the
employer
That if an employee member should give birth
or suffer a miscarriage without the required
contributions having been remitted for her by
her employer to the SSS, or without the latter
having been previously notified by the
employer of the time of the pregnancy, the
employer shall pay to the SSS damages
equivalent to the benefits which said
employee member would otherwise have been
entitled to.

A ART 132. FACILITIES FOR WOMEN

-

3.

^The
Secretary of Labor may require
employers to:
1. Provide seats proper for women and permit
them to use the seats when they are free from
work or during office hours provided the
quality of the work will not be compromised;
2. To establish separate toilet rooms and
lavatories for men and women and provide at
least a dressing room for women;
To establish a nursery in the establishment;
4. To determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like

ART 133 (b) subsists, i.e., the maternity leave

shall be extended without pay on account of
illness medically certified to arise out of the
pregnancy, delivery, abortion, or miscarriage,
which renders the woman unfit for work ,
unless she has earned unused leave credits
from which such extended leave may be
charged.
^ LIMIT OF THE BENEFIT: Applies only for the first
four deliveries irrespective of who is the father of
the children, and may not be availed of in addition
to sickness benefit under the Social Security
program.
~ RA 8187 (PATERNITY LEAVE)

A ART. 133 MATERNITY LEAVE BENEFITS

-

^ MATERNITY LEAVE UNDER THE SSS LAW

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

abortion.
Purpose: to enable the husband to lend support to

-

This law grants paternity leave of seven day
with full pay to all married male employees in
the private and public sectors.

It is available only for the first four deliveries of the
legitimate spouse with whom the husband is
cohabiting.

his wife during the period of recovery and/or in the
nursing of the newly born child.
^ CONDITIONS :

1. he is an employee at he time of the delivery of
his child;
2. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriage;
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a
miscarriage

-

Paternity leave, if not availed of, is not
convertible to cash.

employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that
upon getting married a woman employee shall be
deemed resigned or separated, or to actually
dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of
her marriage.

WIFE - refers to the lawful wife which means the
woman who is legally married to the male
employee concerned.
-

Where the male employee is already enjoying
the paternity leave by reason of any law,
decree, executive orders or any contract,
agreement or policy between employer and
employee and the existing paternity benefit is
greater, the greater benefit shall prevail; if
lesser, the existing benefit shall be adjusted to
the extent of the difference.

A ART 138. CLASSIFICATION OF CERTAIN WOMEN
WORKERS

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

A ART 135. DISCRIMINATION
PROHIBITED

- It shall be unlawful for any employer to
discriminate against any woman employee
with respect to terms and conditions of
employment solely on account of her sex.

CHAPTER II
EMPLOYMENT OF MINORS

^ Acts of Discrimination:

a.
b.

Payment of a lesser compensation for work
of equal value.
Favoring a male employee over a female
employee solely on the account of their
sexes.

A ART 139. MINIMUM EMPLOYABLE
AGE

- Any person between ages 15 and 18 may
be employed in any non hazardous work.

Sexual Harassment in a Work-Related or
Employment Environment :

1.

2.

3.

the sexual favor is made as a condition
in the hiring or in the employment, reemployment or continued employment
of said individual or in granting said
individual
favorable
compensation,
terms, conditions, promotions, or
privileges; or the refusal to grant the
sexual favor results in limiting,
segregating or classifying the employee
which in anyway would discriminate,
deprive
or
diminish
employment
opportunities or otherwise adversely
affect said employee
the above acts would impair the
employee’s rights or privileges under
existing labor laws or
The above acts would result in an
intimidating, hostile, or offensive
environment (Sec. 3[a], RA No. 7877)
A ART 136. STIPULATION AGAINST
MARRIAGE

- it shall be unlawful for an employer to require as
a condition for employment or continuation of

^ Exception and condition on the employment of a
child below 15:

2.

1. When the child works directly under the sole
responsibility of his/her parents or legal guardian
who employs members of his/her family only under
the following conditions:
a. employment does not endanger the child’s
life, safety, health and morals
b. employment does not impair the child’s
normal development
c. the parent/legal guardian provides the
child with the primary and/or secondary
education prescribed by DECS
Where the child’s employment or participation in
public entertainment or information through
cinema, theater, radio, or television is essential,
provided that:
a. employment
does
not
involve
advertisements
or
commercials
promoting
alcoholic
beverages,
intoxicating drinks, tobacco and its byproducts or exhibiting violence;
b. There is a written contract approved by
the DOLE; and
c. The conditions prescribed for the

employment of minors {above stated}
are met.
NONHAZARDOUS WORK OR UNDERTAKING
- one where the employee is not exposed to any
risk which constitutes an imminent danger to his
safety and health.
^ HAZARDOUS WORKPLACES:

1. Where the nature of the work exposes the
workers
to
dangerous
environmental
elements, contaminants or work conditions;
2. Where
the
workers
are
engaged
in
construction work, logging, fire-fighting,
mining, quarrying, blasting, stevedoring, dock
work, deep-sea fishing, and mechanized
farming;
3. Where the workers are engaged in the
manufacture or handling of explosives and
other pyrotechnic products;
4. Where the workers use or are exposed to
heavy
or
power-driven
machinery or
equipment; and
5. Where the workers use or are exposed to
power-driven tools,

CHAPTER III
EMPLOYMENT OF HOUSEHELPERS ^
RIGHTS OF HOUSEHELPERS:

1. minimum cash wage
2. non-assignment to non- household work
3. opportunity for education: if under 18 (cause
of education part of compensation)
4. board/ lodging, medical attendance
5. just and humane treatment
6. indemnity for unjust termination of services
7. just causes for termination
8. right not to be required to work more than 10
hours a day
9. for days vacation each month
10. to regular wages if employed in industrial or
commercial or agricultural undertaking
11. funeral expenses must be paid by employer if
the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
12. at least elementary education
13. employment certification

CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
^ INDUSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
^ INDUSTRIAL HOMEWORKER - a worker who is
engaged in industrial homework

BOOK FOUR
HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL, DENTAL AND
OCCUPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
^ ART 156. FIRST-AID TREATMENT

^ FIRST-AID TREATMENT - adequate, immediate,
and necessary medical and dental attention or
remedy given in case of injury or illness suffered
by a worker during employment, irrespective of
whether or not such injury or illness is workconnected, before a more extensive medical and/or
dental treatment can be secured.
^ FIRST AIDER - any person trained and duly
certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
organization accredited by the former.

TITLE II
EMPLOYEES’ COMPENSATION AND
STATE INSURANCE FUND
^ WORKMEN’S COMPENSATON- A general and
comprehensive term applied to those laws
providing for compensation for loss resulting from
the injury, disablement or death of a workman
through industrial accident, casualty or disease.
^ COMPENSATION - Money relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for

breach of contract or for tort.

WORKMEN’S
COMPENSATION
ACT

EMPLOYEES
COMPENSATION
LAW

1. There is a
presumption of
compensability

1. no presumption of
compensability

2. there is a
presumption of
aggravation

2. no presumption of
aggravation

3. there is a need for
the employer to
controvert the
claim within 14
days otherwise
he is deemed to
have waived the
right
4. payment of
compensation
made by the
employer

3. no need for the
employer to
controvert

^ Conditions for an occupational disease and the
resulting disability or death to be compensable :

1. The employee’s work must involve the risk
described therein
2. The disease was contracted as a result of the
employee’s exposure to the described risks;
3. The disease was contracted within a period of
exposure and under such other factors
necessary to contract it;
4. There was no notorious negligence on the part
of the employee
^ DEATH - Loss of life resulting from injury or

sickness
^ DISABILITY -Loss or impairment of a physical or

mental function resulting from injury or sickness.
^ DIRECT PREMISES RULE - as a general rule, the

accident should have occurred at the place of work
to be compensable
4. payment of
compensation
made by SSS/GSIS
through the State
Insurance Fund

A ART 164. DEFINITION OF TERMS.
^ INJURY - Any harmful change in the human

organism from any accident arising out of and in
the course of employment.
^ GROUNDS FOR AN INJURY TO BE COMPENSABLE

1. the employee must have been injured at the
place where the work requires him to be
2. the employee must have been performing his
official functions
3. if the injury is sustained elsewhere, the
employee must have been executing an order
for the employer
4. the injury was not due to the employee’s
intoxication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this Title.
^ SICKNESS - Any illness definitely accepted as an
occupational disease listed by the Commission or

any illness caused by employment subject to proof
that the risk of contracting the same is increased
by working conditions.

^ EXCEPTIONS TO THE DIRECT PREMISES
RULE

1. INGRESS- EGRESS/ PROXIMITY RULEwhen the employer is about to leave or about
to enter the premises of the employer by way
of the customary or exclusive means of
ingress or egress.
2. GOING TO OR COMING FROM WORKwhen the injury occurred when the employee
is proceeding to or from his work on the
premises of the employer
®must be a continuing act and has not
diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
employee is on a special errand, it must
have been official and in connection with
his work.
3. EXTRA-PREMISES RULE - (or the shuttle bus
rule) where the company provides the means
of transportation in going to or coming from
the place of work is liable to the injury
sustained by the employees while on board
said means of transportation.

4. SPECIAL ERRAND RULE - injury sustained
outside
the
company
premises
is
compensable if his being out is covered byan
office order or a locator slip or a pass for
official business.
5. DUAL
PURPOSE
DOCTRINE
allows
compensation where a special trip would have
to be made for the employer if the employee
had not combined the service for the
employer with his own going or coming trip.

2.

3.
4.

Willful intention to injure or kill himself or
another;
Notorious negligence; or
Unless otherwise provided by the LC
^ NOTORIOUS NEGLIGENCE -deliberate act of the
employee to disregard his own personal safety.

^ Is death through suicide compensable ?
As a rule NO. However as held in NAESS vs.
NLRC, the supreme court ruled that a self inflicted
death could be compensable if :

6. SPECIAL ENGAGEMENT RULE - covers field
trips, outings, intramurals and picnics when
initiated or sanctioned by the employer
7. POSITIONAL AND LOCAL RISKS DOCTRINE If an employee by reason of his duties is
exposed to a special or peculiar danger from
the elements, that is, one greater than that to
which other persons in the community are
exposed and an unexpected injury occurs, the
injury is compensable
8. FORCE MAJEURE OR AN ACT OF GODwhen one in the course of his employment is
reasonably required to be at a particular place
at a particular time and there meets an
accident although one which any other person
then and there present would have met
irrespective of his employment.

CHAPTER II
COVERAGE AND LIABILITY
A ART 168. COMPULSORY COVERAGE
-

-

ECL applies to all employers, public or private,
and to all employees, public or private
including casual, emergency, temporary, or
substitute employees.
Every employee is covered who is not over 60
years over 60 years of age or over 60 years of
age if he had been paying contributions prior
to the age of 60

A ART 170. EFFECTIVE DATE OF
COVERAGE
-

The employer is covered compulsorily from
first day of operation and the employee from
the first day of employment

1.
2.

by agreement of the parties
The suicide/death is caused by a work
related or compensable illness or disease.

A ART 173 . EXTENT OF LIABILITY
-

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

-

Simultaneous recovery under the LC and the
SSS can be made as per an advisory opinion
dated May 23, 1989 of Sec. Drilon since PD
1921 has lifted the ban on simultaneous
recovery.

^ STATE INSURANCE FUND: all covered employers
are required to remit to a common fund a monthly
contribution equivalent to one percent of the
monthly salary credit of every covered employee.
The employee pays no contribution to the fund.
Any agreement to the contrary is prohibited.

CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES:

^ TEMPORARY TOTAL - if as a result of the injury
or sickness, the employee is unable to perform any
gainful occupation for a continuous period not
exceeding 120 days
^ PERMANENT TOTAL - if as a result of the injury
or sickness, the employee is unable to perform any
gainful occupation for a continuous period
exceeding 120 days

A ART 172. LIMITATIONS OF LIABILITY
-

NO COMPENSATION can be obtained if the
injury, death or disability is a result of the
employee’s:

1. Intoxication;

^ PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.

^ DEATH BENEFITS
- The System shall pay to the primary beneficiaries
upon the death of the covered employee an
amount equal to his monthly income benefit,
plus ten percent thereof for each dependent
child, but not exceeding five, beginning with
the youngest and without substitution. The
income benefit shall be guaranteed for five
years.
^ DEPENDENTS:
1. the legitimate, legitimated, legally adopted or
acknowledged natural child who is unmarried,
not gainfully employed and not over 21 years
of age or over 21 years of age provided that he
is incapable of selfsupport due to a physical
or mental defect which is congenital or
acquired during minority
2. legitimate spouse living with the employee
3. the parents of said employee wholly
dependent upon him for regular support

and arbitration.
-

^ PARTIES TO LABOR RELATIONS CASES:
1. The employee’s organization,
2. management, and
3. the public
-

The public is always to be considered in
disputes between labor and capital, and it
ahas been held that the rights of the general
public are paramount.

-

Labor relations policy under the LC is
embodied in Section 3 Article XIII of the 1987
Constitution which guarantees to all workers
their right among others to selforganization,
collective bargaining and negotiations,
peaceful land concerted activities including
the right to strike in accordance with law, and
to participate in policy and decision making
processes affecting their rights and benefits
as may be provided by law.

^ BENEFITS
1. for life to the primary beneficiaries, guaranteed
for five years
2. for not more than 60 months to the secondary
beneficiaries in case there are no primary
beneficiaries
3. in no case shall the total benefit be less that P
15, 000.00
^ THE BENEFICIARIES ARE:
PRIMARY BENEFICIARIES
a. Dependent spouse until he remarries
b. dependent children ( legitimate, legitimated,
natural born or legally adopted)

^ ART. 212. DEFINITIONS ^ LABOR
DISPUTE INCLUDES:
1. any controversy or matter concerning terms or
conditions of employment or
2. the association or representation of persons in
negotiating, fixing, maintaining, charging or
arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the proximate relation of
employer and employee.
^

SECONDARY BENEFICIARIES
a. Illegitimate
children
and
legitimate
descendants
b. parents, grandparents, grandchildren

BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
^ ART 211. DECLARATION OF POLICY
^ LABOR RELATIONS LAW - Concerned with the
stabilization of relations of employer and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor disputes through conciliation, mediation

Absent an employer-employee relation, there
is no labor relations to speak of.

-

EMPLOYEE- shall not be limited
employees of a particular employer.

to

the

it shall include any individual whose work has
ceased: as a result of or in connection with
any current labor dispute; or because of
unfair labor practice

- If he has not obtained any other:
1. Substantially equivalent and

2. Permanent employment
^ MANAGERIAL EMPLOYEE - is one who is
vested with powers or prerogatives to lay down and
execute management policies and /or to hire, transfer,
suspend, lay-off, recall, discharge, assign or
discipline employees.
^ SUPERVISORY EMPLOYEES - are those who, in the
interest of the employer, effectively recommend such
managerial actions if the exercise of such authority is
not merely routinary or clerical in nature but requires
the use of independent judgment.

^ WORKER’S ASSOCIATION - any
association of workers organized for the mutual aid
and protection of its members or for any legitimate
purpose other than collective bargaining.
^ INDEPENDENT UNION - any labor organization
operating at the enterprise level whose legal
personality is derived through an independent action
for registration prescribed under Art. 234. It may be
affiliated with a federation, national or industry union,
in which case it may also be referred to as an affiliate.
NATIONAL UNION/FEDERATION - any labor
organization with at least 10 locals/chapters or
affiliates each of which must be a dully certified or
recognized collective bargaining agent.

1.

the last say is still with the management
2. it is still the management prerogative that prevails
- If there is no labor union, then consultation
should be made with the labor management
council.

-

If the employees were not given the right to
participate, then they could file with the NLRC
a grievance.

^ LEGITIMATE WORKER’S ASSOCIATION any workers association as defined herein which is
duly registered with the Department of Labor.

TITLE II
NATIONAL LABOR RELATIONS
COMMISSION

^ LABOR ORGANIZATIONS - Any union or association
of employees which exists in whole or in part for
the purpose of collective bargaining or of
dealing with employees concerning terms and
conditions of employment.

CHAPTER I
CREATION AND COMPOSITION

PURPOSES OF LABOR ORGANIZATIONS:

^ ART. 213. NATIONAL LABOR
RELATIONS COMMISSION

1. for collective bargaining; and
2. for mutual aid and protection.
^ TYPES OF LABOR DISPUTES
1. Labor Standards Disputes :
a) compensation (underpayment of minimum wage)
b) benefits ( nonpayment of holiday pay, overtime
pay)
c) working conditions ( unrectified working hazards)

b)
c)

e)
f)

2.

2. Labor Relations Disputes
a) organizational right dispute/unfair labor practice
(coercion, restraint or interference in
unionization efforts)
representation disputes
bargaining disputes ( refusal to bargain )
d) contract administration or personnel policy
disputes (noncompliance with CBA provisions)
employment tenure disputes
( non regularization of employees)
PARTIES TO A DISPUTE:
1. Primary Parties - employer, employees, union
Secondary Parties - voluntary arbitrator,
agencies of DOLE (BLR, NLRC, VAC, Sec. Of
Labor, Office of the President)
^ CONSULTATION ON POLICIES OF
MANAGEMENT AND OF THE EMPLOYER
- What is needed is only consultation or
participation. The employees need not agree.

-

TRIPARTISM
Five (5) divisions of NLRC.
Three (3) sectors are represented in the composition
of the NLRC.
- each division (3 commissioners) will have
representative from the following :

1.
2.
3.

Choice of the Sec. Of Labor coming
from the public sector
labor
employer and management sector

^ QUALIFICATIONS OF THE CHAIRMAN
AND THE COMMISSIONER

1. must be a member of the Philippine Bar;
2. must have been engaged in the practice of law
in the Philippines for at least 15 years;
3. must have experience or exposure in handling
labor management relations for at least 15
years; and
4. preferably a resident of the region where he is
to hold office.
The Chairman and Commissioners of the
NLRC are not subject to confirmation by the
Commission on Appointments
^ THE QUALIFICATIONS OF EXECUTIVE LABOR
ARBITERS

1. must be members of the Philippine Bar;
2. must have been engaged in the practice of law
in the Philippines for at least 7 years;

3. must have experience or exposure in handling
labor management relations for at least 3
years.
^ TERM OF OFFICE OF THE CHAIRMAN,
COMMISIONERS, AND LABOR ARBITERS:
-

until they reach the age of 65 unless removed
for causes as provided by law or become
incapacitated to discharge the function of his
office.

^ CASES WERE THE NLRC HAVE
EXCLUSIVE AND ORIGINAL
JURISDICTION:

1. Cases certified to it for compulsory arbitration
by the Secretary of Labor under Art. 263;
2. Injunction cases under Art. 218 and 264; and
3. Contempt cases.

-

Findings of facts of a labor tribunal are
accorded the utmost respect by the courts
and are well-nigh conclusive if supported by
substantial evidence.

-

Labor cases are not subject to Barangay
Conciliation since ordinary rules on procedure
are merely suppletory in character vis-a- vis
labor disputes which are primarily governed
by labor laws.

-

The failure of the petitioner to file a motion for
reconsideration of the decision of NLRC
before filing a petition for certiorari has in
certain instances been held not to be a fatal
omission.

CHAPTER II
POWERS AND DUTIES
^ ART 217. JURISDICTION OF LABOR ARBITERS AND
THE COMMISSION.
a. Except as otherwise provided under this Code
the Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide,

^ CASES WERE THE NLRC HAS APPELLATE
JURISDICTION:

1. Cases decided by labor arbiters under Art
217b and Sec 10 RA 8012(Migrant Workers
Act)
2. Cases decided by the Regional Offices of
DOLE in the exercise of its adjudicatory
function under Art 129 of the Labor Code
THE NLRC ONLY SITS EN BANC FOR
PURPOSES OF:

1.

2.

-

promulgating
rules
and
regulation
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
formulating
policies
affecting
administration and operations.

notes, the following cases involving all workers,
whether agricultural or non-agricultural:
1,
2.
3.

4.

its

The Commission may only sit en banc for
the determination of policies and NOT for
purposes of adjudication.
-

within 30 calendar days after the submission
of the case by the parties for decision without
extension, even in the absence of stenographic

5.

6.

Petitions for certiorari against decisions of the
NLRC should henceforth be initially filed with the
Court of Appeals in

strict observance of the doctrine on the
hierarchy of courts as the appropriate forum
for the relief desired. The SC noted that the
CA is procedurally equipped to resolve
unclear or ambiguous factual finding, aside
from the increased number of its component
divisions. (St. Martin Funeral Homes vs. NLRC
G.R. No. 130866)

7.

Unfair labor practice cases;
Termination disputes;
If accompanied with a claim for
reinstatement, those cases that
workers may file involving wages,
rates of pay, hours of work and other
terms and conditions of
employment;
Claims for actual, moral, exemplary
and other forms of damages arising
from employer- employee relations;
Cases arising from any violation of
Art 264 of this Code, including
questions involving the legality of
strikes and lockouts; and
Except claims for Employees
Compensation, Social Security,
Medicare and maternity benefits, all
other claims arising from employeremployee relations, including those
of persons in domestic or household
service, involving an amount
exceeding P5,000.00 regardless of
whether accompanies with a claim
for reinstatement.
Monetary claims of overseas
contract workers under the Migrant
Workers Act of 1995.

b. The Commission shall have exclusive appellate
jurisdiction over all cases decided by Labor
Arbiters.
c. Cases arising from the interpretation or
implementation of CBA and those arising from
the interpretation or enforcement of company
personnel policies shall be disposed of by the
Labor Arbiter by referring the same to the
grievance machinery and voluntary arbitration.
-

The labor arbiter has jurisdiction over the claims
of employees against GOCCs if the latter does
not have an original charter and has been
incorporated under the Corporation Code.

-

The labor arbiter and the NLRC have no
jurisdiction over claims filed by employees
against international agencies such as IRRI,
WHO etc.

5.

^ ART 218. POWERS OF THE COMMISSION
^ POWERS OF THE NLRC:
a. Rule-making power
b. Power to issue compulsory
processes
c. Power to investigate matters and
hear disputes within its jurisdiction
d. Contempt power
e. Power to issue injunctions and
Restraining Orders
^ REQUISITES BEFORE RESTRAINING
ORDER/ INJUNCTION MAY ISSUE:
1.
2.

3.

4.

filing of a verified petition
a hearing after due and personal notice has been
served in such manner as the Commission shall
direct, to all known persons against whom the
relief is sought and also to the Chief Executive or
other public officials of the province or city
within which the unlawful acts have been
threatened or committed charged with the duty
to protect the complainant’s property
reception at the hearing of the testimony of
witnesses
with opportunity
for
cross
examination, in support of the allegations of the
complaint made under oath as well as testimony
in opposition thereto
a finding of fact of the Commission to the effect
that :
a) prohibited
or unlawful
acts have been threatened and will be
committed and will be continued unless
restrained, but no injunction or temporary
restraining order shall be issuedon account
of
any
threat,
prohibited,
or unlawful act, except
against the persons, association or
organization making the threat or
committing the prohibited or unlawful act or

actually authorizing or ratifying the same
after actual knowledge thereof.
b) That substantial and irreparable injury to the
complainant’s property will follow
c) That
as to each
item of
relief to be granted, greater injury will be
inflicted upon complainant by the denial of
the relief than will be inflicted upon the
defendants by the granting of the relief
d) That
complainants has
no adequate remedy at law
e) That public
officers
charged with the
duty to
protect
complainant’s property are unable or
unwilling to furnish adequate protection.
Posting of a bond

^ REQUISITES BEFORE TRO MAY BE
ISSUED EX PARTE:

1. The complainant shall allege that, unless a
TRO shall be issued without notice, a
substantial
and
irreparable
injury
to
complaint’s property will be unavoidable;
2. There is testimony under oath, sufficient, is
sustained, to justify the Commission in
issuing a temporary injunction upon hearing
after notice ;
3. The complainant shall first file an undertaking
with adequate security in an amount to be
fixed by the Commission sufficient to
recompense those enjoined for any loss,
expenses or damage caused by the
improvident or erroneous issuance of such
order or injunction, including all reasonable
costs, together with a reasonable attorney’s
fee, and expense of defense against the
granting of any injunctive relief sought in the
same proceeding and subsequently denied by
the Commission; and
4. The TRO shall be effective no longer than 20
days and shall become void at the expiration
of said 20 days counted from the date of the
posting of the bond.
- In the absence of service of summons or a valid
waiver thereof, the hearings and judgment
rendered by the labor arbiter are null and void.
- The procedural and substantial requirements of
Art 218 (e) must be strictly complied with
before an injunction may issue in a labor
dispute.
^ THE FF. CAN ISSUE INJUNCTIONS/
TRO IN LABOR DISPUTES

1.
2.
3.
4.
5.
6.

President (ART. 263, g)
Secretary of Labor (ART. 263, g)
Labor Arbiters (ART. 217)
NLRC
Regional Directors
Med- Arbiters

^ Art 219. OCULAR INSPECTION

awarded to the employees excluding the award for
moral and exemplary damages shall not be
included.

The Chairman, any Commissioner, labor Arbiter
or their duly authorized representatives may, at
anytime during working hours:
a.

b.

Conduct an ocular inspection on
any establishment, building, ship,
place or premises, including any
work,
material,
implement,
machinery,
appliance or any object therein;
and
Ask any employee. Laborer, or
any person as the case may be
for any information or date
concerning
any
matter
or
question relative to the object of
the investigation

Moral and exemplary damages and other
benefits that employee receives when he is
working are excluded.

-

This article prohibits the payment of attorney’s
fees only where the same is effected through
forced contributions from the workers form
their own funds as distinguished from the
union funds.

CHAPTER III
APPEAL
A ART. 223. APPEAL ^ GROUNDS FOR
APPEAL:

A ART. 221. TECHNICAL RULES NOT BINDING AND
PRIOR RESORT TO AMICABLE SETTLEMENT

1. If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Compulsory Arbitrator;
2. If the decision, order or award was secured
through fraud or coercion, including graft and
corruption;
3. If made purely on questions of law;
4. If serious errors in the findings of facts are
raised which would cause grave or irreparable
damage or injury to the appellant.

- An amicable settlement of a labor dispute should be
approved by the labor arbiter before whom the
case is pending after being satisfied that it was

voluntarily entered by the parties and after
having explained to them the terms and
consequences thereof.
PURPOSE: for the employee’s protection for the

labor arbiter before whom the case is pending
would be in a better position than just any labor
arbiter to personally determine the voluntariness
of the agreement and certify its validity.

-

^ PERIODS WITHIN WHICH TO APPEAL:
A.

DECISIONS OF THE REGIONAL DIRECTOR:
within 5 calendar days from receipt of the

order.

RES JUDICATA applies only to judicial or quasi-

judicial proceedings and not to the exercise of
administrative powers.

B. DECISIONS OF THE LABOR ARBITER:
within 10 calendar days from the receipt of the

decision.

A ART 222. APPEARANCES AND FEES
^ APPEARANCE OF NON-LAWYERS BEFORE THE
COMMISSION:
GENERAL RULE:

ONLY lawyers can
appear before the NLRC, or any Labor Arbiter,
EXCEPTIONS : Non-Lawyers can appear ONLY in

the following instances:
1.
2.
3.

if they represent themselves; or
if they represent their organization or
members thereof; or
if he is a duly-accredited member of
the legal aid office duly recognized by
the DOJ of IBP in cases referred
thereto by the latter.

ATTORNEY’S FEES: The maximum amount to be

given a lawyer is 10% of the monetary benefits

-

The appeal must be under oath and must state
specifically the grounds relied upon and the
supporting arguments.

-

Where the 10th day falls on a Saturday, Sunday
or legal holiday, the appeal may be filed on the
next business day.

IS THE PERIOD OF APPEAL EXTENDIBLE?
NO. The period of appeal to cases decided

by the regional Director and the Labor Arbiter is
NEVER extendible. It is the policy of the state to
settle expeditiously labor disputes.
^ REQUISITES BEFORE APPEAL TO THE NLRC IS
DEEMED PERFECTED:

1. File a verified memo of appeal within the
required period of appeal;

2. In case of monetary award, the employer
should file a bond corresponding to the
monetary award excluding awards for moral,
exemplary damages and attorney’s fees.
3. Appeal fee of P110;
4. Furnish the other party with a copy of the
memo of appeal (proof of service).
-

Where the employer failed to post a bond to
perfect its appeal, the remedy of the employee is
not a petition for mandamus by a motion to
dismiss appeal.

-

The intention of the lawmakers is to make the
bond an indispensable requisite for the
perfection of an appeal by the employer.

-

Tardiness of an appeal form the decision of the
labor arbiter may be considered as a mere
procedural lapse.

Funeral’s Home)
^ ART 224. EXECUTION OF DECISIONS, ORDER, OR
AWARDS

-

The decision of the Secretary of Labor, the
Commission, the Bureau or Regional Director the
Labor Arbiter, the Med-Arbiter or the Voluntary
Arbitrator shall be final and executory after 10
calendar days from receipt thereof by the parties.

-

The foregoing may upon its own initiative or on
motion of any interested party, issue a writ of
execution on a judgment within 5 years from the
date it becomes final and executory.

-

The immediate execution of judgment should be
undertaken only when the monetary award had
been carefully and accurately determined by the
NLRC and only after the employer is given the
opportunity to be heard and to raise objections
to the computation.

^ EXECUTION PENDING APPEAL:
the decision of the labor arbiter ordering the
reinstatement of a dismissed or separated
employee shall immediately executory insofar as
the reinstatement aspect is concerned and the
posting of an appeal bond by the employer shall
not stay such execution. There is no need for the
arbiter to issue a writ of execution on the
reinstatement order as it is self-executory
(Pioneer Texturizing Case).

TITLE III

^ OPTIONS OF THE EMPLOYER TO IN COMPLYING
WITH AN ORDER OF REINSTATEMENT WHICH
IS
IMMEDIATELY EXECUTORY:

1.
2.
3.

1.

2.

-

He can admit the dismissed employee back to
work under the same terms and conditions
prevailing prior to his dismissal or separation or
to a substantially equivalent position if the
former position is already filled up.
He can reinstate the employee merely in the
payroll.

2.

The petition must be filed within 60 days from
knowledge of the judgment; and
Within a fixed period of 6 months from entry of
such judgment.
petitions filed beyond said period will
no longer be entertained.

^ APPEAL FROM THE DECISION OF THE NLRC:
appeal by certiorari should be filed with
the Court of Appeals(St. Martin

inter- union conflicts
intra- union conflicts
all disputes, grievances or problems arising from
or affecting labor- management relations in all
workplaces whether agricultural or nonagricultural.
^ CASES WHERE THE BLR HAS NO
JURISDICTION:

-

Failing to exercise any option may be compelled
under pain of contempt and the employer may be
made to pay instead the salary of the employee.

^ A petition for relief from the decision of the labor
arbiter must strictly comply with 2 reglementary
periods:
1.

BUREAU OF LABOR RELATIONS
^ ART. 226 BUREAU OF LABOR
RELATIONS
^ EXCLUSIVE AND ORIGINAL
JURISDICTION OF THE BLR:

Those arising from the implementation or
interpretation of collective bargaining
agreements which shall be subject of grievance
procedure and/or voluntary arbitration.

^ INTRA- UNION DISPUTES - includes all disputes or
grievances arising from any violation of or
disagreement over any provision of the
constitution and by-laws of a union.

-

It also includes any violation of the rights and
conditions of union membership provided for in
the Labor Code.
^ INTER- UNION DISPUTES - refers to questions
involving or arising out of a
representation disputes between or
among the different unions.

-

It also includes all other conflicts which
legitimate labor, organizations may have against

each other based on any violation of their rights
as labor organizations.
^ DETERMINATION OF EMPLOYER- EMPLOYEE
RELATIONSHIP:

-

since the BLR has the original and exclusive
jurisdiction to decide inter alia, all disputes,
grievances or problems arising from or affecting
labor-management relations in all workplaces.
Necessarily, in the exercise of this jurisdiction
over labor-management relations, the MedArbiter has the authority, original and exclusive,
to determine the existence of an employeremployee relationship (MY San Biscuits, Inc. v
Laguesma G.R. No. 9511, 22 April 1991).

^ SPECIAL REQUIREMENT AS TO THE FILING OF
CASES:
A.

B.

INVOLVING ENTIRE MEMBERSHIP
1. The complaint must be signed by at
least 30% of the entire membership of
the union.
2. It must also show exhaustion of
administrative remedies.
INVOLVING A MEMBER ONLY:
In such case only the affected
member may file the complaint.

RE : Imposition of fees by the union - does it affect
the entire membership?
YES. Such being the case, the complaint
should be signed by at least 30% of the membership
of the union.

-

if the compromise agreement was entered into
without the assistance of DOLE, it is valid and
binding between the parties but the parties can
still go to the NLRC and repudiate the agreement.

-

if the compromise agreement was entered into
with the assistance of DOLE, it shall be final and
binding between the parties,
EXCEPT:
a.

-

A ART 231. REGISTRY OF UNIONS AND
FILE OF COLLECTIVE AGREEMENT

-

The CBA is more than a contract, it is highly
impressed with public interest for it is an
essential instrument to promote industrial peace.

-

An unregistered CBA does not bar certification
election.

A ART 233. PRIVILEGE COMMUNICATIONS

-

Information and statements made at conciliation
proceedings shall be treated as privileged
communication and shall not be used as
evidence in the Commission.

-

Conciliators and similar officials shall not testify
in any court or body regarding any matters taken
up at conciliation proceedings conducted by
them.

^ ADMINISTRATIVE FUNCTIONS OF THE BLR:

3.

1. The regulation of registration of the labor unions;
2. The keeping of a registry of labor unions; and
The maintenance of a file of CBAs.
^ NATIONAL CONCILIATION AND MEDIATION BOARD:
- has absorbed the conciliation, mediation and
voluntary arbitration functions of the BLR (E.O.
126)
A ART. 227. COMPROMISE
AGREEMENTS

TITLE IV
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND
CANCELLATION
A ART. 234. REQUIREMENT OF REGISTRATION

^ REQUIREMENTS OF A VALID
QUITCLAIM:
1.
2.

3.

The quitclaim must be voluntarily arrived at by
the parties;
It must be with the assistance of the Bureau of
Labor Standards, Bureau of Labor Relations of
any representative of the DOLE; and
The consideration must be reasonable.

in case of non compliance with the
compromise agreement; or
b. if there is prima facie evidence
that the settlement was obtained
through
fraud,
misrepresentation, or coercion
in such cases, the NLRC of the courts can
assume jurisdiction.

-

^ LABOR ORGANIZATION- A labor
organization is any union or association of
employees which exists in whole or in part for
the purpose :
of collective bargaining or
of dealing with employers concerning the terms
and conditions of employment.

^ PURPOSE OF FORMATION OF LABOR UNIONS: for
securing a fair and just wages and good working
conditions for the laborers; and for the protection of
labor against the unjust exactions of capital

^ REQUIREMENTS BEFORE A LABOR
ORGANIZATION CAN BE REGISTERED WITH THE
BUREAU OF
LABOR
RELATIONS:
1.
2.

3.

Written application verified
by the
Secretary/Treasurer, attested to by the President;
Names of members comprising at least 20% of
the employees in the bargaining unit where it
seeks to operate;
Non-existence of CBA, otherwise, if one exist,
state in the application that it is filed within the
freedom period. It shall be accompanied by the
following attachments :
a. Registration fee in the amount of P50.00;
b. Names of the officers and their addresses;
c. Minutes of the organizational meetings;
d. List of workers who participated in the
organizational meetings;
e. Names of all the members and the number of
employees in the bargaining unit;
f.
Annual Financial Report ( if the applicant
has been in the existence for at least one
year);
g. Four (4) copies of the constitution and bylaws;
h. Minutes of the resolution of the constitution
and by-laws and the list of members who
participated in the bargaining unit
concerned; and
i.
If there is an existing collective bargaining
agreement duly submitted to the DOLE, a
sworn statement that the application for
registration is filed during the last 60 days of
the agreement.

MANDAMUS is the proper remedy for the unjustified
refusal of the Bureau in approving the application and
the corresponding issuance of a certificate of
registration, it being a ministerial duty.
REASON FOR REQUIREMENT OF REGISTRATION - it
is a condition sine qua non for the acquisition of legal
personality by labor organizations, associations or
unions, and the possession or the rights and
privileges granted by law to legitimate labor
organizations
^ FEDERATION is an association of national unions.
^ REQUIREMENTS BEFORE A FEDERATION CAN BE
ISSUED A CERTIFICATE OF REGISTRATION:
Aside from the application, which must be
accompanied with the requirements for registration of
a labor registration, the application should also be
accompanied by the following:
1. Proof of affiliation of at least 10 locals or
chapters, each of which must be :
a. a duly recognized collective
bargaining agent in the
establishment of

b.

2.

supporting the registration of
such applicant federation or
national union;
The names and addresses of the
companies where the locals or chapters
operate and the list of all the members
in each company involved.

^ Can a local union affiliate with a
federation? If so, how?
YES. The procedure of affiliation would
depend on whether the union is individually
registered or not.
If the union is independently registered, the
affiliation is by signing a contract of affiliation with
the labor union and the registration of such contract
with the BLR.
On the other hand, if the union Is not independently
registered, affiliation is done by the application of the
union with the federation so it may be issued a
charter certificate, to be submitted with the BLR,
including the following:
1. Copies of its constitution and by-laws
2. Statement of the set of officers and books of
accounts, all of which must be certified by
the Secretary/Treasurer and attested to by
the President.

^ Can a union of supervisory employees
affiliate with a national federation of labor
organizations of rank and file employees ?
YES, provided that:
a. The federation is not actively involved in
union affairs in the company and
b. The rank and file employees are not
directly under the control of the
supervisors

^ EFFECTS WHEN A LOCAL UNION DISAFFILIATE:
-)IT DEPENDS. If the labor union is independently
registered, the disaffiliation of the union would not
affect its being a legitimate labor organization and
therefor would continue to have the rights and
privileges of a legitimate labor organization as well as
the legal personality as such.

On the other hand, if the labor union is not
independently registered, upon disaffiliation, it would
cease to be a legitimate labor organization and would
therefore no longer have the legal personality and the
rights and privileges granted by law to legitimate
organization.

^ EFFECT OF DISAFFILIATION WITH EXISTING CBAs:

A ART 239. GROUNDS FOR CANCELLATION OF
UNION
REGISTRATION.

-IT DEPENDS. If the labor union is independently
registered, existing CBAs would continue to be valid
as the labor organization can continue administering
the CBAs.
However, if the labor union is not
independently registered, existing CBAs would no
longer be valid as there would no longer be any labor
organization given by law the right to administer the
CBAs.

^ GROUNDS FOR
REGISTRATION:

^ ENTITLEMENT TO UNION DUES IN CASE OF
DISAFFILIATION:

-

-

- If the labor union is independently registered,
then the labor organization is entitled to the
union dues and not the federation from which the
labor organization disaffiliated.
On the other hand, if the labor union is not
independently registered, then union dues may
no longer be collected as there would no longer
any labor union who is allowed to collect such
union dues from the employees.
A union can affiliate anytime but disaffiliation can
be done only during the freedom period. If not
within the freedom period, can be done only with
the consent of the majority of the workers.
Provided it is independently registered otherwise
it loses its personality. The exception will only
apply if it is not prohibited by the constitution
and by-laws of the federation of national union.

A ART 236. DENIAL OF REGISTRATION; APPEAL
Decisions of the BLR denying the registration of
a labor organization is appealable to the Secretary of
Labor within 10 calendar days from receipt, on
grounds of:
a.
b.

grave abuse of discretion; and
gross incompetence
A ART 238. CANCELLATION OF REGISTRATION;
APPEAL
The certificate of registration of any legitimate labor
organization shall be cancelled by the BLR if it has
reason to believe, after due hearing. that the said
labor organization no longer meets one or more of the
requirements herein prescribed.

2.

CANCELLATION

OF

1. Misrepresentation, False statement or Fraud in
connection with:
the adoption or ratification of the
constitution and by-laws or
amendments thereto,
the minutes of ratification, and
the list of members who took part in the
ratification.
Failure to submit the document mentioned in the
preceding paragraph
within 30 days from adoption or
ratification of the constitution and bylaws or amendments thereto.
3. Misrepresentation, false statement or fraud in
connection with the:
election of officers,
minutes of the election of officer and the
list of voters, or failure to submit these
documents together with
the list of the newly elected/appointed
officers and their postal addresses
within 30 days from election
4. Failure to submit the annual financial report to
the Bureau
within 30 days after the closing of every
fiscal year and misrepresentation, false
entries and fraud
in the preparation of the financial report
itself;
5. Acting as a labor contractor or engaging in the
“cabo” system, or otherwise engaging in any
activity prohibited by law;
6. Entering into collective bargaining agreements
which provide terms and conditions of
employment below minimum standard
established by law;
7. Asking for or accepting attorney’s fees or
negotiation fees from the employers;
8. Other than for mandatory activities under this
Code, checking off special assessment or any
other fees without duly signed individual written
authorization of the members;
9. Failure to submit a list of individual members of
the Bureau once a year or whenever required by
the Bureau; and
10. Failure to comply with the requirements under
Articles 237 and 238.

- Appeal may be filed within 15 days from receipt
of the decision to the Secretary of Labor.

UNION

^ REMEDY IN CASE THE BUREAU
SHOULD CANCEL THE REGISTRATION
OF THE UNION:
- to appeal to the Secretary of Labor within 10
calendar days on the grounds of:

1.
2.

-

grave abuse of discretion or
gross incompetence on the part of the
Bureau

Should the office of the Secretary affirm the
decision of the Bureau, the final remedy is a
petition for certiorari to the SC under Rule 65,
Rules of Court.

The authorization should specifically state the:
a. amount
b. purpose and
c. beneficiary of the deduction.

-

CHAPTER II
RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION
A ART. 241. RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION

^ REQUIREMENTS IN MAKING SPECIAL
ASSESSMENT

^ CHECK-OFF is a method of deducting from an
employee’s pay at prescribed period, the amounts due
to the union for fees, fines or assessment.
In Special Assessment, there must be a written
resolution authorized by a majority of the members at
a general meeting called for the purpose.

-

Art. 241(n). No special assessment or other
extraordinary fees may be levied upon the

-

-

members of a labor organization:
UNLESS authorized by a written resolution of a
majority of all the members at a general
membership meetings duly called for the
purpose.

EXCEPTION to the Requirement of Individual
Written Authorization:
The law does not require individual written
authorizations from the employees when it
comes to fees for mandatory activities under the
Labor Code.

Check-off - there must be individual written
authorization of the members.

^ PERSONS WHO ARE PROHIBITED FROM
BECOMING MEMBERS OF A LABOR ORGANIZATION
UNDER THE LABOR CODE:
1.
2.

Those who have been convicted of a crime
involving moral turpitude. (Art. 241(f));
Subversives or those engaged in subversive
Activities.

-

The secretary of the organization shall record the
minutes of the meeting including:
the list of all members present,
the votes cast,
the purpose of the assessment or fees,

-

In general, a union is free to select its own
members, and no person has an absolute right to
membership in a trade union.

-

The record shall be attested by the President.

-

-

Therefore, the REQUIREMENTS when it comes to
special assessment are as follows:
there must be a written resolution
the resolution must have been approved by a
majority of all the members
the approval must be at a general membership
meeting duly called for the purpose

The implementing rules require that the remedies
be exhausted within the union before a complaint
for any violation of the union’s constitution and
by-laws may be filed.

^ REQUIREMENTS BEFORE A CHECKOFF MAY BE
DONE:

1.
2.
3.

^ REQUIREMENTS OF THE LAW WITH REGARDS
TO CHECK-OFFS
Art. 241(o). Other than for MANDATORY
ACTIVITIES under the Code.

-

-

NO special assessment, attorney’s fees,
registration fees or any other extraordinary fees
may be checked off from any amount due an
employee.
WITHOUT an individual written authorization duly
signed by the employee.

-

Individual written authorizations of the
employees are required before a check-off may
be validly done.
EXCEPTIONS :

1.
2.

For mandatory activities provided under the
Code; and
When non-members of the union avail of the
benefits of the CBA.
said non-members may be assessed
union dues equivalent to that paid by
members
only by a Board Resolution approved by
majority of the members in a general
meeting called for the purpose

NATURE AND PURPOSE OF CHECK-OFF

- to facilitate the collection of dues necessary for the
union’s life and sustenance.

^ EFFECT OF CANCELLATION OF REGISTRATION IN
THE COURSE OF PROCEEDINGS;
- Where a labor union is a party in a proceeding
and later it loses its registration permit in the
course or during the pendency of the case, such
union may continue still as a party without need
of substitution of parties, subject however to the
understanding that whatever decision may be
rendered therein will only be binding upon those
members of the union who have not signified
their desire to withdraw from the case before its
trial and decision on the merits.

^ GENERAL GROUPINGS OF THE RIGHTS OF THE
UNION MEMBERS:
(Under Art. 241)
1.

2.

3.

Political right is the right of the members to vote
and be voted for, subject to lawful provisions on
qualifications and disqualifications.
Deliberative and Decision-Making Right is
the members right to participate in deliberations
on major policy questions and decide them by
secret ballot.
Rights Over Money Matters is the right of the
members:
a. against excessive fees
b. against unauthorized collection of
contributions or unauthorized
disbursements
c. to require adequate records of income
and expenses

TITLE V
COVERAGE
A ART. 243. COVERAGE AND
EMPLOYEE’S RIGHT TO SELF
-ORGANIZATION

d.
e.
f.
g.

to access
financial records
GOVERNMENT
GOVERNMENT to voteOWNED
on officers
OR compensation OWNED OR
to voteCONTROLLED
on special assessment CONTROLLED
to be deducted a special assessment
CORPORATIONS WITH
CORPORATIONS
only with the member’s written
A CHARTER
WITHOUT
authorization.
CHARTER
4. Right to Information is the member’s right to be
informed about:
1.organization’s
Employees cannot
stage and
1 .The
a. the
constitution
by- GOCC is created
under Corporation
laws strikes since they are
governed
by the Civil
b. the collective
bargaining
agreement Code, then
employees are
c. about laborService
laws Law. They
are enjoined by
covered by the
Civil Service
Labor Code.
CHAPTER III
Memorandum
Therefore the
RIGHTS OF LEGITIMATE LABOR
Circular No. 6,
employees have the
ORGANIZATIONS
under pain of
same rights as
administrative
those as employees
A ART. 242. RIGHTSsanctions,
OF LEGITIMATE
from LABOR of private
staging ORGANIZATIONS
strikes,
corporations, one of
demonstrations,
which is the right to
mass leaves, walkstage strikes.
outs
and
other
^ RIGHTS OF A LEGITIMATE LABOR ORGANIZATION:
concerted
1. Undertake activitiesactivities.
for benefit of members
2.
3.
4.
5.
6.
7.

Sue and be sued
Exclusive representative of all employees
Represent union
members
2.Corporations
with
2. The GOCC is created
Furnished by employers
financial
originalof audited
charters
under
statements
cannot bargain with the Corporation
Code,
Own properties
government
being governed by the
Exempted fromconcerning
taxes
the
Labor Code, they can
terms
and
bargain with the
conditions
of
their government concerning
employment.
the terms

However, they can
negotiate with the
government on those
terms and conditionsof
employment which are
not fixed by law. Thus,
they have a limited
bargaining rights.

and conditions of their
employment. Thus, they
have an unlimited
bargaining rights.

-

3. Can only form,
join or assist
labor
organization for
purposes
not
contrary to law.

3. Can form, join or
Assisi
labor
organization for
purposes of CBA,
etc.

^ THE FOLLOWING ARE CONSIDERED NEGOTIABLE
IN GOCC WITH ORIGINAL CHARTER:
schedule of vacation and other leaves
work assignment of pregnant women
personnel growth and development
communication system - lateral and vertical
provision for protection and safely
6. provision for facilities for handicapped personnel
7. provision for first-aid medical services for married
women
annual medical/physical examination
9. recreational, social, athletic and cultural activities
and facilities (Rules implementing WO 180)
^ THE FOLLOWING ARE CONSIDERED NOT
NEGOTIABLE :
1. Those which require appropriation of
funds, such as :
a. increase in salary emoluments and other
allowance not presently provided for by
law
b. facilities requiring capital outlays
c. car plan
d. provident fund
e. special hospitalization, medical and
dental services
f.
rice/sugar/other subsidies
g. travel expenses
h. increase in retirement benefits

appointments
promotion
assignments/details
reclassification/upgrading of position
revision of compensation structure
penalties imposed as a result of
disciplinary actions
selections of personnel to attain
seminar, trainings. Study grants
distribution of work load
external communication linkages

- Government employees and employees of
government-owned and controlled corporations
with original charters may bargain, however,
such bargaining power is limited.
^ RATIONALE : GOCCs
INCORPORATED UNDER THE CORP.
CODE ALLOWED TO ORGANIZE:

1.
2.
3.

terms of employment are not fixed by law
they are governed by the provisions of the Labor
Code not by the Civil Service Law

^ EMPLOYEES COVERED BY THE RIGHT TO SELFORGANIZATION:
1.
2.
3.
-

Commercial
Industrial
Agricultural enterprises, including:
charitable
religious
education or
medical institution

^ EMPLOYEES WITH LIMITED RIGHT TO SELFORGANIZATION:
1.
2.
3.
4.
5.

Self- employed
Without definite employers
Ambulant
Intermittent and Itinerant
Rural worker

-

they have the right to self-organization but only
for their mutual aid and protection.

^ EMPLOYEES WHO ARE NOT
GRANTED THE RIGHT TO SELFORGANIZATION:
1.

2.
2. Those that involve the exercise of
management prerogatives, such as :

they are not involved in public service

Members of the Armed Forces of the Philippines,
including police officers, policemen, firemen and
jail guards;
High-level employees

-

5.

whose functions are normally considered
as policy-making or managerial
whose duties are of a highly confidential
or highly technical in nature ( EO 180,
sections 3-4)
3. Government employees occupying high
positions
4. Employees of international organizations with
immunities
Confidential employees
6. Cooperative members who are also employees
-

Foreigners validly working in the Philippines can
form labor organizations.

provided, the same right to form. join or assist
in the formation of labor unions is also given
to Filipinos in their country of origin. This
embodies the principle of reciprocity.
^ Extent of the Right to SelfOrganization

a.
b.
-

To form. join and assist labor organizations
for the purpose of collective bargaining through
representatives of their own choosing and
To engage in lawful concerted activitiesfor the
same purpose
for their mutual aid and protection
A ART 245. INELIGIBILITY OF MANAGERIAL
EMPLOYEES TO JOIN ANY LABOR ORGANIZATION;
RIGHT OF SUPERVISORY EMPLOYEES.
Reason for ineligibility - in the collective bargaining

process. managerial employees are supposed to
be on the side of the employer. to act as its
representatives. and to see to it that its interests
are well protected. The employer is not assured of
such protection if these employees themselves are
union members.

TITLE VI
UNFAIR LABOR PRACTICES
CHAPTER I
CONCEPT
A ART. 247 UNFAIR LABOR
PRACTICES
^ NATURE OF UNFAIR LABOR
PRACTICES:

1. violate the constitutional right of workers and
employees to self-organization.
2. are inimical to the legitimate interests
of both labor and management.
including their right to bargain
collectively and otherwise deal with
each
other in an
atmosphere of freedom and mutual
respect.
3. disrupt industrial peace and
4. hinder the promotion of healthy and stable
labor-management relations.
^ PRESCRIPTIVE PERIOD FOR FILING
CRIMINAL AND CIVIL CASES FOR ULP:

-

The prescriptive period of filing ULP cases
whether it be civil or criminal is one year from
the accrual of the ULP act.

-

The prescriptive period for the criminal case is
suspended once the administrative case has
been filed and would only continue running
once the administrative case has attained
finality.

-

HOWEVER:

Final judgment in the
administrative proceedings shall not be
binding in the criminal case nor shall be
considered as an evidence of guilt but merely
as a proof of compliance of the requirements
prescribed by the Code.

A ART. 246.
“THE RIGHT TO SELF-ORGANIZATION
SHALL NOT BE ABRIDGED” MEANS:

It shall be unlawful for any person to:
restrain.
coerce.
discriminate against. or
unduly interfere
with employees and workers in their exercise
of the right to self-organization.
(Art. 246)
Any act intended to weaken or defeat the right
is regarded by law as an offense. which is
technically called “unfair labor practice.”

Prerequisite for filing criminal case:

final judgment in the administrative proceeding
finding that ULP has been committed
CHAPTER II
UNFAIR LABOR PRACTICES
OF EMPLOYERS
^ ART 248. ULP THAT MAY BE COMMITTED BY AN
EMPLOYER
1.

To interfere with, restrain or coerce employees
in the exercise of their right to selforganization;
2. To require as a condition for employment that a

person or an employee
shall not join a labor organization or
shall withdraw from one to which he
belongs;
3. To contract out services or functions being
performed by union members
when such will interfere with, restrain or
coerce employees in the exercise of their
right to selforganization;
4. To initiate, dominate, assist or otherwise interfere
with the formation or administration of any
labor organization,
including the giving of financial or other
support to it or its organizers or officers;
5. To discriminate in regard to wages, hours of
work, and other terms and conditions of
employment
in order to encourage or discourage
membership in any labor organization .
^ TEST OF DISCRIMINATION:
a.

b.

6.

7.
8.

9.

-

whenever benefits or privileges given to one is
not given to the other under similar or identical
conditions
when directed to encourage or discourage union
membership
To dismiss, discharge or otherwise prejudice or
discriminate against an employee
for having given or being about to give
testimony under this Code;
To violate the duty to bargain collectively as
prescribed by this Code;
To pay negotiation or attorney’s fees to the union
or its officers or agents
as part of the settlement of any issue in
collective bargaining or any other disputes;
or
To violate a collective bargaining agreement.
NOTE: violation must be gross and with respect
to the economic provision of the CBA
^ YELLOW DOG CONTRACT:
A
promise exacted from workers as a condition
employment that they are not to belong to, or
attempt to foster, a union during their period of
employment.
It is contrary to public policy for it is tantamount
to involuntary servitude.
It is entered into without consideration for
employees waive their right to selforganization
Employees are coerced to sign contracts
disadvantageous to their family.

^ DIFFERENT KINDS
ARRANGEMENTS:
1.

OF

UNION

CLOSED- SHOP AGREEMENT - the

SECURITY

^ Does Art. 248 (c ) mean that an employer
cannot contract out work?
NO. Contracting out services is not ULP per
se. It is only ULP when the following conditions exist:
1. the service contracted- out are being
performed by union members; and
2. such contracting-out interferes with,
restrains, or coerce employees in the
exercise of their right to selforganization.
-

HOWEVER, when the contracting- out
is being done to minimize expenses,
then it is a valid exercise of
management prerogative.

^ THREE COMPONENTS
(DISCRIMINATION)

OF

ART.

248

(e

):

1. It prohibits discrimination in terms and
conditions of employment in order to encourage
or discourage membership in the union;
2. It gives validity to union security agreements;
3. It allows an agency shop arrangement whereby
agency fees may be collected from non-union
members.
SECURITY ARRANGEMENTS are stipulations in the
CBA requiring membership in the contracting union
as a condition for employment or retention of
employment in the company.
^ PRINCIPLES OF UNION SECURITY
ARRANGEMENTS:
1.

Protection. To shield union
members from whimsical and
abusive exercise of management
prerogatives.
2. Benefits. An additional
membership will insure
additional source of income
to the union in the form of union
dues and
special
assessment.
3. Self-preservation.
It
strengthens
the union
through selective acceptance of
new members on the basis of
commitment and loyalty.
union activities without contributing to
union support to prevent a situation of nonunion members enriching themselves at the
expense of union members.
employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual once
employer must, for the duration of the
agreement, remain a member of the union in

good standing as a condition for continued
employment.
2.

3.

UNION - SHOP AGREEMENT -stipulation whereby
any person can be employed by the employer but
once employed such employee must, within a
specific period, become a member of the
contracting union and remain as such in good
standing for continued employment for the
duration of the CBA.
MAINTENANCE OF MEMBERSHIP CLAUSE - the
agreement DOES NOT require non-members to
join the contracting union BUT provides that
those who are members thereof at the time of the
execution of the CBA and those may thereafter
on their own volition become members must for
the duration of the agreement maintain their
membership in good standing as a condition for
continued employment in the company for the
duration of the CBA.

4.

PREFERENTIAL SHOP AGREEMENT The employer agrees to give preference to the
members of the bargaining union in hiring or
filing vacancies and retention in case of lay-off.
But the employer has the right to hire in open
market if union members are not available.
Usually, descendants (children) are also given
preference in employment.

5.

AGENCY SHOP AGREEMENT - An
agreement whereby employees must either join
the union or pay to the union as exclusive
bargaining agent a sum equal to that paid by the
members.

- This is directed against “FREE RIDER”
employees who benefit from
^ THE REQUIREMENTS FOR A VALID
UNION OR CLOSE SHOP AGREEMENT

(SO THAT THE EMPLOYER CAN
TERMINATE
THE EMPLOYEE
FOR
VIOLATION OF SAID AGREEMENT):
1.

2.
3.

It must be expressed in a clear and unequivocal
way so as not to leave room for interpretation
because it is a limitation to the exercise of the
right to self-organization.
- Any doubt must be resolved against closeshop.
It can only have prospective application and
cannot be applied retroactively.
Can only be exercised by giving the employee his
right to due process.
The employer has the right to satisfy itself
that there are sufficient bases for the
request of the union.
The termination of the employee is not
automatic upon the request of the union.

4.

Cannot be applied to employees who are already
employees of the rival union nor to the
employees based on their religious beliefs.

CHAPTER III
UNFAIR LABOR PRACTICES OF
LABOR ORGANIZATIONS
A ART. 249. UNFAIR LABOR
PRACTICES OF LABOR
ORGANIZATIONS
a.

To restrain or coerce employees in the exercise
of their right to self-organization. However, a
labor organization shall have the right to
prescribe its own rules with respect to the
acquisition or retention of membership;
b. To cause or attempt to cause an employer to
discriminate against an employee, including
discrimination
c. To violate the duly or refuse to bargain
collectively with the employer provides that it is
the representative of the employees;
d. To cause or attempt to cause an employer to pay
or deliver or agree to pay or deliver any money or
other things of value, in the nature of an
exaction, for services which are not performed or
not to be performed, including the demand for a
fee for union negotiations;
e. To ask for a accept negotiation or attorney’s fees
from employers as part of the settlement of any
issue in collective bargaining or any other
dispute; or
f. To violate a collective bargaining agreement.
NOTE: Violation must be gross with respect to
economic provisions of the CBA.
^ PERSONS CIVILLY LIABLE FOR ULP:
1. Officers and agents of employer
2. Labor organization, officers and agents
^ PERSONS CRIMINALLY LIABLE FOR ULP:
1. Agents and officers who participated or
authorized or ratified the act.
2. Agents, representatives, members of the
government board, including ordinary members
^ FEATHERBEDDING - refers to the practice of the
union or its agents in causing or attempting to cause
an employer to pay or deliver or agree to pay or
deliver money or other things of value, in the nature
of exaction, for services which are not performed or
not to be performed, as when a union demands that
the employer maintain personnel in excess of the
latter’s requirements

equity to the employer, - indicate to be best
suited to serve the reciprocal rights and duties
of the parties under the collective bargaining
provision of the law.

TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
A ART
250. PROCEDURE
COLLECTIVE BARGAINING

IN

^ COLLECTIVE BARGAINING -negotiation by an
organization or group of workmen, in behalf of
its members, with the employer, concerning
wages, hours of work and other terms and
conditions of employment and the settlement of
disputes by negotiation between
an
employer, and
the
representative of his employees.
^ PROCEDURE IN COLLECTIVE BARGAINING:
1. Written notice with statement of proposals
2. Reply by the other party
3. In case of differences, either party may request
for a conference
4. If not settled NCMB may intervene and encourage
the parties to submit the dispute to a voluntary
arbitrator
5. If not resolved, the parties may go to where they
want and resort to any other lawful means.
^ COLLECTIVE BARGAINING AGREEMENT- (CBA)
- negotiated contract between a legitimate labor
organization and the employer
concerning :
wages,
hours of work and
all other terms and
conditions of employment in a
bargaining unit,
including
mandatory provisions for grievances
and arbitration machineries.
^ MANDATORY PROVISIONS OF THE CBA:
1.
2.
3.
4.
5.
6.
7.

wages
hours of work
grievance machinery
voluntary arbitration
family planning
rates of pay
mutual observance clause

In addition, the Bureau requires that the CBA should
include a clear statement of the terms of the CBA.
A ART 253. DUTY TO BARGAIN COLLECTIVELY
WHEN THERE EXISTS A COLLECTIVE BARGAINING
AGREEMENT
^ BARGAINING UNIT- a group of employees of a given
employer, comprised of all or less that all the
entire body of the employees, consistent with

^ FOUR FACTORS IN DETERMINING THE
APPROPRIATE BARGAINING AGREEMENT:
1. The Express Will or Desire of the Employees
(Globe Doctrine);
2. The Substantial and Mutuality Interest Factor;
3. Prior Collective Bargaining History;
4. Employment Status, such as
temporary

-

seasonal, and
probationary employee

- process whereby the employer recognizes a
labor organization as the exclusive bargaining
representative of the employees in the
appropriate bargaining unit after ashowing that
the labor organization is supported by at least a
majority of the employees in the bargaining unit.

^ THINGS TO CONSIDER IN DETERMINING THE
COMMUNITY OF INTEREST DOCTRINE:
1. similarity in the scale and manner of determining
earnings
2. similarity in employment benefits, hours of work
and other terms and conditions of employment
3. similarity in the kinds of work performed
4. similarity in the qualifications, skills and training
of the employees
5. frequency of contract or interchange among the
employees
6. common supervision and determination of laborrelations policy
7. history of previous collective bargaining
8. desires of the affected employees
9. extent of union organization

THE

1. an agreed one,
its purpose
being merely to
determine the

for the purpose
of collective
bargaining;
2. separate and
distinct from a
consent election

1. SELECTION
- certification election
2. DESIGNATION
a) voluntary recognition
b) direct certification

issue of majority
representation of
all the workers in
the appropriate
collective
bargaining unit

2. from the very
nature of
consent election,
it is a separate
and distinct
process and has
nothing to do
with the import
and effect of a
certification
election

EFFECT OF VOLUNTARILY RECOGNITION BY THE
EMPLOYER:

^ CERTIFICATION ELECTION - process of determining
by secret ballot the sole and exclusive bargaining
agent of the employees in an appropriate bargaining
unit, for purposes of collective bargaining.

^ VOLUNTARILY RECOGNITION

1. aimed at
determining the
sole and
exclusive

appropriate
bargaining unit

EXCLUSIVE

^ DIRECT CERTIFICATION - process whereby the
Med-Arbiter directly certifies a labor organization of
an appropriate bargaining unit of a company after a
showing that such petition is supported by at least a
majority of the employees in the bargaining unit.
It is no
longer allowed. (EO 111)

CONSENT
ELECTION

bargaining agent
of all the
employees in an

^ AUTOMATIC RENEWAL CLAUSE - this is under the
present Article which establishes an automatic
renewal clause the CBA is effective and enforceable
even after the expiration of the period fixed by the
parties as long as no new agreement is reached by
them.
^ MODES OF CHOOSING
BARGAINING UNIT:

CERTIFICATION
ELECTION

- By voluntarily recognition of the employer, the
labor organization recognized by the employer
as the exclusive bargaining agent may
collectively bargain with the employer.
^ WHEN IS THE CONDUCT OF A CERTIFICATION
ELECTION MANDATORY ON THE PART OF THE BLR?
1.

In an unorganized company a. upon the filing of a verified petition by a
legitimate labor organization; or
b. upon the filing of a petition by the employer
when such employer is requested by the
employees to bargain collectively.
2. In an organized company upon the filing of a
verified petition by a legitimate labor
organization questioning the majority status of
the incumbent bargaining agent within the 60day freedom period before the expiration of a
CBA.

- The petition must be supported by the
written consent of at least 25% of all the
employees in the appropriate
bargaining unit.

a.
b.

NOTE: In case the establishment is organized, the
employer
cannot file a
petition for
certification election; only a legitimate labor
organization can file such petition.
^ WHEN
MAY
ORGANIZATION
FILE
A
CERTIFICATION ELECTION:
1.

2.

^ RULES WHICH WILL PREVENT THE HOLDING OF A
CERTIFICATION ELECTION:
1.
2.
3.

A
LABOR
PETITION
FOR

Contract-Bar Rule
One-Year Bar Rule
Deadlock Bar Rule

^ THE CONTRACT-BAR RULE provides that while a
valid and registered CBA is subsisting, the BLR is not
allowed to hold an election contesting the majority
status of the incumbent union.

Where the establishment is not
organized,
it can file a
petition for
certification election at any time, subject
however to the ONE-ELECTION-PER-YEAR
RULE.
In an organized establishment a. when there is
a CBA, the labor
organization
can file a petition for
certification election within the 60-day
freedom period (CONTRACT-BAR RULE )
b. when there is no CBA, then the labor
organization
can file a petition for
certification election at any time, subject to
the “Deadlock” bar Rule.

EXCEPTIONS TO THE RULE:
1.

2.

^ DEADLOCK BAR RULE, a petition for certification
election can only can only be entertained if there is no
pending bargaining deadlock submitted to
conciliation or arbitration or had become the subject
of a valid notice of strike or lockout.

2.

Between the labor union receiving the
two highest number of votes
Provided that the total number of votes
for all the contending unions is at least
50% of the total votes cast

3.

Where it is shown that because of a schism
in the union the contract can no longer
serve to promote industrial stability, and the
holding of the election is in the interest of
the employees right in the selection of their
bargaining representatives.
Basic to the contract bar rule is the
proposition that the denial of the right to
select representatives can be justified only
where stability is deemed paramount.
Certain types of contracts which do not
foster industrial stability such as contracts
where the identity of the representative is in
doubt or those that are prematurely renewed

^ REQUISITES BEFORE A LABOR UNION CAN BE
DECLARED A WINNER:

^ REQUIREMENTS IN ORDER TO INVOKE
CONTRACT-BAR RULE:

1. Majority of the eligible voters cast their votes.
Obtained majority of the valid votes cast. (DOUBLE
MAJORITY)

1.

^ HOW TO DETERMINE THE TWO MAJORITY RULE :

3.

1.
2.

2.

In determining valid votes, eliminate spoiled
ballots but include challenged votes
In determining the eligible votes cast, include
spoiled ballots

4.
5.
6.
7.

^ RUN-OFF ELECTIONS
This happens when:
a. The election provides for at least 3
choices(“no union” is always a choice)
b. The election results in none of the
choices received the majority votes(50%
+1) of the valid votes cast

EXCEPTIONS TO THE CONTRACT- BAR RULE:
1.
2.

4.
Run-off shall be conducted:

Agreement is in writing, signed by all contracting
parties.
It must contain the terms and conditions of
employment.
Covered employees in an appropriate bargaining
unit.
It is for a reasonable period or duration.
It must be ratified.
It must be registered with the Bureau.
The violation of the contract bar rule or the
existence of a duly registered CBA must be
specifically impleaded as a defense.

CBA is not registered.
CBA deregistered.
3. CBA was hastily concluded way ahead of the
freedom period
CBA is incomplete in itself
5. CBA does not foster industrial peace because of
schism
6. CBA was concluded in violation of an order

enjoining the parties from entering into a CBA
until the issue of representation is resolved.
^ EFFECT OF AN INVALID AND UNREGISTERED CBA:
-

Then there is no bar and therefore a certification
election may be held.

NOTE: Registration of CBA only puts into effect the
contract-rule bar rule but the CBA itself is valid and
binding even if unregistered.
^ “SUBSTITUTIONARY DOCTRINE”-- It
means that where there occurs a shift in the
employees’ union allegiance after the execution of a
collective bargaining contract with the employer, the
employees can change their agent - the labor union,
but the collective bargaining contract which is still
subsisting, continues to bind the employees up to its
expiration date. They, may, however, bargain for the
shortening of said expiration date.
^ DEADLOCK - arises when there is an impasse which
presupposes reasonable effort at good faith
bargaining which, despite noble intentions, did not
conclude in agreement between the parties.
^ JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING: (Kiok Loy Case)

2.

1. Possession of status of majority representation
Proof of majority representation
3. Clear and unequivocal demand to bargain
collectively
^ “DUTY TO BARGAIN COLLECTIVELY”-

-

The performance of a mutual obligation to meet and
convene
promptly and expeditiously and in good faith, for the
purpose of negotiating an agreement with the respect
to
wages,
hours of work and
all other terms and conditions of
employment, including
proposals for adjusting any grievances
or questions arising under such
agreement and
executing a contract incorporating such
agreements if requested by either party.
- When there is a collective bargaining
agreement, the DUTY TO BARGAIN
COLECTIVELY shall mean that neither party shall
terminate or modify such agreement during its
lifetime.
However, either party can serve a written
notice to terminate or modify the agreement
at least 60 days prior to its expiration period.
^ Does the Duty to Bargain Collectively carry with it

the duty to agree to a proposal or to make a
concession?
NO. The duty to bargain collectively does not
compel any party
to agree to a proposal or
to make a concession
^ EXAMPLES OF BAD FAITH BARGAINING:
1.

2.

3.

Surface Bargaining - occurs when employer
constantly changes its positions over the
agreement.
Boulwarism - occurs
a. when the employer directly bargains with the
employee disregarding the union.
b. Employer submits its proposals and adopts
a take it or leave it stand. This is not
negotiation because the take it or leave it
stand implies threat.
Side Bar Technique

^ DUTIES OF THE PARTIES DURING THE 60-DAY
PERIOD:
1.
2.

to keep the status quo and
to continue in full force and effect and the terms
and conditions of the existing agreement during
the 60-day period and/or until a new agreement is
reached by the parties. (Art. 253)
A ART 253 - A. TERMS OF A COLLECTIVE
BARGAINING AGREEMENT
DURATION OF THE CBA:
1.
2.

With respect to the representation aspect the
same lasts for 5 years.
With respect to other provisions, the same shall
last for a maximum period of 3 years after
execution.

RULE ON RETROACTIVE EFFECTS OF AGREEMENT
PROVISIONS:
-

Any agreement on such other provisions of the
CBA if made within 6 months after the date of
expiry, there is AUTOMATIC RETROACTION to
the day immediately following such date of
expiry.

-

If not within 6 months, the parties may agree to
the DATE OF RETROACTION.
This rule applies only if there is an EXISTING
AGREEMENT. IF THERE IS NO EXISTING
AGREEMENT, there is no retroactive effect
because the date agreed upon shall be the start
of the period of agreement.

TAKE NOTE: Article 253-A on retroaction does not
apply if the provisions were imposed by the Secretary
of Labor by virtue of arbitration. It applies only if the

TITLE VII- A
(as incorporated by RA 6715)

agreement was voluntarily made by the parties.
^ SUCCESSOR-IN-INTEREST DOCTRINE
occurs when an employer is succeeded by another
employer, the successor-in-interest who is a buyer in
good faith has no liability to employees in continuing
employment and collectively bargain because they
are contracts in personam, as well as for cases of
unfair labor practice.

GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
A ART 260. GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
^ GRIEVANCE MACHINERY - Mechanism for the
adjustment of controversies or
disputes arising from the interpretation
or implementation of the CBA and the
interpretation or enforcement of
personnel policies

EXCEPTIONS TO THE SUCCESSOR-ININTEREST
DOCTRINE:
1.
2.
3.

If the transfer is done in bad faith;
If it was done to circumvent the obligation of the
seller;
If the successor expressly assumes the
obligations of the seller

^ GRIEVANCE ARISES: when a dispute or controversy
arises over the implementation or interpretation of a
CBA or from the implementation or enforcement of
company personnel policies, and either the union or
the employer invokes the grievance machinery
provision for the adjustment or resolution of such
dispute or controversy.

^ BARGAINING IMPASSE - exists when good faith
bargaining on the part of the parties filed to resolve
the issue and there are no definite plans for further
efforts to break the deadlock
A ART 254. NO INJUNCTION RULE
No temporary or permanent injunction pr
restraining order in any case involving or growing out
of labor disputes shall be issued by any court or other
entity, except as otherwise provided in Articles 218
and 264 of this Code.

-

A ART 261. JURISDICTION OF VOLUNTARY
ARBITRATORS OR PANEL OF VOLUNTARY
ARBITRATORS
^ JURISDICTION OF VOLUNTARY ARBITRATORS:

A ART 255. EXCLUSIVE BARGAINING
REPRESENTATION AND WORKER’S PARTICIPATION
IN POLICY AND DECISION-MAKING

EXCLUSIVE ORIGINAL JURISDICTION CONFERRED
BY LAW
a) interpretation or implementation of the CBA
b) interpretation or enforcement of company
personnel polices

IN DETERMINING THE APPROPRIATE
BARGAINING UNIT THE FF. MUST BE CONSIDERED:
1.
2.
3.

Will of employees
Affinity and unity of employee’s interest
Prior collective bargaining history
4. Employment status, such as temporary, seasonal
and probationary employees.

- It is the labor arbiter and not the grievance
machinery which has jurisdiction over dismissal
pursuant to the union security clause.
1. JURISDICTION BY AGREEMENT OF THE
PARTIES
- voluntary arbitrators shall also hear and decide
all other disputes including ULP and bargaining
deadlocks.

^ ONE-UNION. ONE-COMPANY POLICY- the
proliferation of unions in an employer unit is
discouraged as a matter of policy unless there are
compelling reasons which would deny a certain class
of employees the right to selforganization for
purposes of collective bargaining.
EXCEPTIONS: supervisory employees who are
allowed to form their own unions apart from the rankand-file employees
LABOR MANAGEMENT COUNCILS deal with the
employer on matters affecting employee’s rights,
benefits and welfare. They may be formed even if
there is already a union in the company.

both parties must resort to grievance machinery

^ GROUNDS FOR JUDICIAL REVIEW OF DECISIONS
OF VOLUNTARY ARBITRATORS:

1.
2.
3.
4.

Lack of jurisdiction
Grave abuse of discretion
Violation of due process
Denial of substantial justice
Erroneous interpretation of the law

TITLE VIII
STRIKES AND LOCKOUTS AND
FOREIGN INVOLVEMENT IN TRADE
UNION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOUTS
A ART. 263. STRIKES, PICKETING AND LOCKOUTS
^ STRIKE - Any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute.
IMPORTANCE
- it is the most effective weapon of labor in
protecting the rights of employees to improve
the stems and conditions of their employment.
^ STRIKE-BREAKER- any person who obstructs,
impedes or interferes by force, violence, coercion,
threats or intimidation with any peaceful picketing by
employees during any labor controversy affecting
wages, hour or conditions of work or in the exercise
of the right to self organization or collective
bargaining
^ STRIKE AREA - the establishment, warehouse,
depots, plants or offices, including the sites or
premises used as runaway shops of the employer
struck against, as well as the immediate vicinity
actually used by picketing strikers in moving to an fro
before all points of entrance to and exit front said
establishment
^ LOCKOUT - means the temporary refusal of an
employer to furnish work as a result of an industrial
or labor dispute.
^ GROUNDS FOR THE DECLARATION OF STRIKE
1.
2.

deadlock in collective bargaining; and/or
unfair labor practices
^ WHO CAN DECLARE ECONOMIC (Bargaining
Deadlock) STRIKE:

1.

Collective bargaining agent
^ WHO CAN DECLARE POLITICAL (ULP)
STRIKE:

1.

collective bargaining agent
2. Legitimate labor organization in behalf of
members
^ SIT-DOWN STRIKE - is characterized by a temporary
work stoppage of workers who thereupon seize or
occupy property of the employer or refuse to vacate
the premises of the employer.

Is a sit-down strike legal?
NO. It borders to a criminal act because the
employees trespass on the premises of the employer.
^ WILDCAT STRIKE- is a work stoppage that violates
the labor contract and is not authorized by the union.
Is a wildcat strike valid?
NO. It is not valid because it fails to comply
with certain requirements of the law, to

wit, notice of strike, vote, and report on strike vote.

-

HOWEVER, in case of dismissal from
employment of union officers duly in
accordance with the union constitution and
by-laws, which may constitute union
bustingwhere the existence of the union is
threatened, the 15-day cooling-off period shall
NOT apply AND the union may take action
immediately.

-

the cooling off periods and seven-day strike
ban is mandatory otherwise the purposes for
which they have been imposed would not be
achieved

Is a “welga ng bayan” legal?
NO. A “welga ng bayan” is illegal because it
is a political strike and therefore there is no
bargaining deadlock nor any ULP. It is a political rally.
^ PICKETING - is the marching to and fro the
employer’s premises, usually accompanied by the
display of placards and other signs making knowing
the facts involved in a labor dispute. This is an
exercise of ones freedom of speech.
^ COOLING -OFF PERIOD - that period of time given

^ EXCEPTION TO THE COOLING-OFF PERIOD:
ECONOMIC
STRIKE
1. Voluntary strike
because the
employee will
declare strike to
compel
management to
grant its
demands.

ULP STRIKE

1. Involuntary : labor
organization is
forced to go on
strike because
the ULP
committed
against them by
the employer. It
is an act of selfdefense since
the employees
are being
pushed to the
wall and their
only remedy is to
strike.

In case of dismissal from employment of union
officers duly elected in accordance with the
union constitution and by-laws, which may
constitute union busting where the existence
of the union is threatened, he 15-day coolingoff period shall NOT apply AND the union may
take action immediately but they must still
observe the mandatory 7 day period before
they can stage a valid strike.

^ STRIKE VOTE - is a requirement wherein the
decision to declare a strike must be:

2.

1. approved by a majority of the total union
membership in the bargaining unit concerned,
obtained by secret ballot
3. in meetings or referenda called for the
purpose.
PURPOSE OF A STRIKE VOTE - is to ensure that
the intended strike is a majority decision.

the NCMB to mediate and conciliate the parties.

^ When should the strike vote be submitted?

-

The report on the strike vote must be
submitted to the DOLE at least 7 days before the
intended strike subject to the cooling-off period.

It is that span of time allotted by law for the
parties to settle their disputes in a peaceful
manner, before staging a strike or lockout.

^ TESTS FOR THE LEGALITY OF A STRIKE:

NUMBER OF DAYS IN THE COOLING OFF
PERIOD:

1. If the ground for the intended strike or lockout
is DEADLOCK IN COLLECTIVE BARGAINING,
the cooling-off period is 30 days from the filing
of the notice of strike.
2. If the ground for the intended strikes is UNFAIR
LABOR PRACTICE, the cooling- off period is 15
days from the filing of the notice of strike.
Therefore:

1.
2.

3.
-

Whether or not is has a lawful PURPOSE.
Whether or not is complies with
the
PROCEDURAL REQUIREMENTS OF THE LAW,
to wit notice of strike
30/15-day cooling-off
period
strike vote
7-day strike ban
Whether or not it is executed through
LAWFUL MEANS.
NOTE: The 3 tests must concur.

-

^ EFFECT OF GOOD FAITH OF STRIKERS ON
LEGALITY OF STRIKE:

- A strike may be considered legal where the union
believed that the company committed ULP
and the circumstances warranted such belief
in good faith, although subsequently such
allegations of ULP are found out as not true.

^ WHEN CAN THE SEC. OF LABOR
ASSUME JURISDICTION OVER A
STRIKE?

1. there exists a labor dispute causing or likely to
cause a strike or lockout in a industry
indispensable to the national interest,
2. the Secretary of Labor and Employment may
assume jurisdiction and EITHER:
-

decide it or
certify the same to the Commission for
COMPULSORY ARBITRATION.

INDISPENSABLE INDUSTRY is based solely
upon the discretion of the Secretary of Labor
^ EFFECTS OF THE ASSUMPTION OF
JURISDICTION OF THE SECRETARY

1. automatically enjoining the intended or
impending strike or lockout as specified in the
assumption or certification order.
2. if one has already taken place at the time of
assumption or certification, all striking or
locked out employees shall immediately
return to work and
3. the employer shall immediately resume
operations and readmit all workers under the
same terms and conditions prevailing before
the strike or lockout.
4. A motion for reconsideration does not
suspend the effects as the assumption order
is immediately executory.
^ TOTALITY DOCTRINE:

“... the culpability of an employer’s remarks were
to be evaluated not only on the basis of their
implicit implications, but were to be appraised
against the background of and in conjunction with
collateral circumstances.
- Under this “doctrine” expressions of opinion by
an employer which, though innocent in
themselves, frequently were held to be
culpable because
- of the circumstances under
which they were uttered,

-

-the history of the particular employer’s
labor relations of anti-union bias or
-because of their connection with an
established collateral plan of coercion or
interference.” (Rothenberg)

^ ISSUES THAT THE SECRETARY OF
LABOR CAN RESOLVE WHEN HE ASSUMES
JURISDICTION OVER A LABOR DISPUTE:
1. Only issues submitted to the Secretary may be
resolved by him. (PAL vs. Sec. of Labor, 23
January 1991)
2. Issues submitted to the Secretary for
resolution and such issues involved in the
labor dispute itself. (St. Scholastica’s College
vs. Torres, 29 June 1992)
3. Secretary of Labor may subsume pending
labor cases before Labor Arbiters which are
involved in the dispute. (Int’l Pharmaceuticals
vs. Sec of Labor, 09 January 1992).
4. Power of Sec. of Labor is plenary and
discretionary. (St. Luke’s Medical Center vs.
Torres, 29 June 1993: reiterated in PAL vs.
Confesor, 10 March 1994).
^ TESTS TO DETERMINE VALIDITY OF STRIKES.

PURPOSE TEST - The strike must be due to either
-bargaining
1.

deadlock

-unfair

labor

practice.
2. MEANS EMPLOYED TEST- -A strike may be
and/or
legal at its inception but eventually be
declared illegal if the strike is accompanied by
violence which violence is widespread,
pervasive and adopted as a matter of policy
and not merely violence which is sporadic
which normally occur in a strike area.

3. IN ACCORDANCE WITH PROCEDURAL &
SUBSTANTIVE REQUIREMENTS OF LAW
^ In Case the strike is declared legal, are the
strikers entitled to strike duration pay?

IT DEPENDS.
1. If it is an Economic Strike
NO, the strikers are NOT entitled to strike
duration pay since the employer should get the
equivalent day’s work for what the pays his
employees.
2. If it is a ULP Strike

Would depend on the authority deciding

(discretionary).

b)

GENERAL RULE:

-

Strikers are not entitled to their wages during
the period of a strike, even if the strike is legal.

-

EXCEPTIONS:

1. Where
the
strikers
voluntarily
and
unconditionally offered to return to work, but
the employer refused to accept the offer.
-They are entitled to backwages from the
date the offer was made
-e.g. of Unconditioned offer: “we will
return tomorrow” and NOT “willing to
return provided...”
2.

c)

NO employer shall use or employ any STRIKEBREAKER
- nor shall any person be employed as a strikebreaker.

d)

NO public official or employee, including officers and
personnel of the New Armed Forces of the Philippines
of the Integrated National Police, or armed persons,
shall bring in, introduce or escort in any
manner,
any individual who seeks to replace
strikes in entering or leaving the
premises of a strike area, or work in
place of the strikers.
The police force shall keep out of the
picket lines unless actual violence or
other criminal acts occur therein:
Provided, That nothing herein shall be interpreted to
prevent any public officers from taking any measure
necessary to:
maintain peace and order,
protect life and property, and/or
enforce the law and legal order.

Where there is return-to-work and the employees
are discriminated against.
- -They are entitled to
backwages
from
the
date
of
discrimination.
^ RULES IN STRIKES IN HOSPITALS

1.

2.

It shall be the duty of striking employees or
locking-out employer to provide and maintain an
effective skeletal workforce of medical and other
health personnel for the duration of the strike or
lock-out.
Secretary of Labor may immediately assume
jurisdiction within 24 hours from knowledge of the
occurrence of such strike or lock-out or certify it to
the Commission for compulsory arbitration

e)

GOCCs organized under the Corporation Code with

no original charter of its own can
declare a strike.
^ ART 264. PROHIBITED ACTIVITIES
1.

-

NO labor organization or employer shall declare a
strike or lockout
without
first
having
bargained
collectively in accordance with Title
VII of this Book or
without first having filed the notice
required in the preceding Article or
without the necessary strike or
lockout vote first having been
obtained and reported to the
Department.
NO strike or lockout shall be declared:
a. AFTER assumption of jurisdiction by
the President or the Secretary or
b.

AFTER certification or submission of
the dispute to compulsory or voluntary
arbitration or
-DURING the pendency of cases involving
the same grounds for the strike or lockout.

NO person all obstruct, impede or interfere with OII by
force, violence, coercion, threats or intimidation
FVCTI
any peaceful picketing by employees
during any labor controversy or
in the exercise of the right of selforganization or collective bargaining or
shall aid or abet such obstruction or
interference.

-

NO person engaged in picketing shall
commit any act of violence, coercion or
intimidation or
obstruct the free ingress to or egress
from the employer’s premises for lawful
purposes, or
obstruct public thoroughfares.
^ RULES ON REINSTATEMENT OF WORKERS:
GENERAL RULE - Striking employees are
entitled to reinstatement, regardless of whether or not
the strike was the consequences of the employer’s
ULP
REASON:
because while out of

strike, the strikers are not considered to have

abandoned their employment, but rather have only
ceased from their labor.
- -The declaration of a strike is NOT a renunciation
of employment relation.
EXCEPTIONS: The following strikers are NOT
entitled to reinstatement:
1. union officers who knowingly
participates in an illegal strike; and
2. any striker/union member who

knowingly participate
in
the
commission of illegal acts during
the strike.

granted the employee, that the employer shall not
terminate the services of an employee except for
just cause or when authorized by law.

TITLE I
TERMINATION
OF
EMPLOYMENT

An employee that has been dismissed illegally is
entitled to:
a. Reinstatement
b. Backwages

A ART 279. SECURITY OF TENURE
^ SECURITY OF TENURE is the constitutional right

A ART 265. IMPROVED OFFER BALLOTING

a
referendum conducted by the NCMB on or before
the 30th day of the strike, for the purpose of
determining whether or not the improved offer of
the union is acceptable to the union members.
applies only to economic strikes (bargaining
deadlock)
^IMPROVED OFFER BALLOTING:

PURPOSE: to ascertain the real sentiment of

the silent majority of the union members on
strike.
^ REDUCED OFFER BALLOTTING

-

-

a referendum conducted by the NCMB,
- for the purpose of determining whether or not
the reduced offer of the union is acceptable to
the board of directors, trustees or partners.
applies only to economic strike
A ART 266. ARREST AND DETENTION
^ General rule is that a police officer cannot arrest

or detain a union member for union activities
without previous consultations with the Secretary
of Labor except on grounds of:
a. national security
b. public peace
c. commission of a crime

BOOK SIX
POST EMPLOYMENT
A ART 280. REGULAR AND CASUAL EMPLOYMENT

^ REGULAR EMPLOYMENT- One wherein an
employee is engaged to perform activities which
are usually necessary or desirable in the usual
business or trade of the employer.
^ TEMPORARY EMPLOYMENT-One wherein an
employee is engaged to work on a specific project
or undertaking which is usually necessary or
desirable in the usual business or trade of the

employer, the completion of which has been
determined at the time of the agreement of the
employee.
A

EMPLOYMENT-One wherein an
employee is engaged to work during a
particular season on an activity that is usually
necessary or desirable in the usual business
or trade of the employer.

SEASONAL

A PROBATIONARY PERIOD OF EMPLOYMENT - the

period needed to determine the fitness for the
job, i .e., the time needed to learn the job.
It is period during which the employer
may determine if the employee is qualified for
possible inclusion in the regular force.
^NOTE:
The standard which the
probationary employee is to meet must be made
known by the employer to the employee at the time
of the engagement.
^Probationary employees may be terminated for
the same causes as a regular employee, except
that there is an additional ground - failure to meet
the standard.
r Is it necessary that probationary employment be for
a period of 6 months?
No. Provided that the following requisites
concur:
1. it is done before the lapse of 6 months;
2. employee must be advised of such extension;
3. employee must agree.
r EFFECT IF PROBATIONARY EMPLOYEE IS
ALLOWED TO WORK BEYOND 6 MONTHS:
If the probationary employee is allowed to
work beyond the period of 6 months or the agreed
probationary period, said employee become a regular
employee by operation of law.
Under the Labor Code, “an employee who is
allowed to work after a probationary period shall be
considered a regular employee.” (Art. 281.)

An employee may put an end to establish
WITHOUT SERVING ANY NOTICE on the employer for
any of the following just causes:

A ART. 282. TERMINATION BY EMPOYER
r JUST CAUSES:
1.

2.
3.

4.

5.

1. Serious insult by the employer or his
representative on the hour and person of the
employee;
2. Inhuman and unbearable treatment accorded the
employee by the employer or his representative;
3. Commission of a crime or offense by the
employer or his representative against the
person of the employee or any of the immediate
members of his family; and
4. Other causes analogous to any of the foregoing.

Serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or
representative in connection with his work;
Gross and habitual neglect by the employee of
his duties;
Fraud or willful breach by the employee of the
trust reposed in him by his employer or duly
organized representative;
Commission of a crime or offense by the
employee against the person of his employer or
any immediate member of his family or his duly
authorized representative; and
Other causes analogous to the following:

r SEPARATION PAY
In case of termination due to

a) THE INSTALLATION OF LABOR-SAVING DEVICES

A ART. 283- 284

OF

b) REDUNDANCY,

r
AUTHORIZED CAUSES OF
TERMINATION BY THE EMPLOYER:
1.
2.
3.

4.

5.

The installation of labor-saving devices
(automation)
Redundancy (superfluity in the performance of a
particular work)
Redundancy to prevent losses (there is excess of
employees and employer wants to prevent
financial losses)
The closing or cessation of operation of the
establishment or undertaking UNLESS the
closing is for the purpose of circumventing the
provisions of the Labor Code.
Illness
a. If illness is incurable within 6 months and
is
b. deleterious to his health or his coemployees.
c. certification from public heath officer
that illness is incurable within 6 months.

- the worker affected thereby shall be entitled to a
separation pay equivalent to at least one (1)
month pay or to at least one (1) month pay for
every year of service, whichever is higher.

d)

NOTE: If CLOSURE is due to severe financial

losses, it is still debatable whether or not
separation pay should be given.
- I f you are able to prove that such portion of
capital (10%) investment has been impaired,
the employer should be exempt for the
payment of separation pay.

r STANDARDS UNDER WHICH AN EMPLOYER MAY
RETRENCH:
1.

3.

Losses expected should be imminent and substantial.
2.It must be reasonably necessary and likely to
effectively prevent the expected losses
Alleged losses if already incurred, and the expected
imminent losses sought to be forestalled, must be
proved by sufficient and convincing evidence.
A ART. 285. TERMINATION BY EMPLOYEE
r TERMINATION BY THE EMPLOYEE
An employee may terminate WITHOUT JUST
CAUSE the employee-employer relationship by
serving a WRITTEN NOTICE on the employer at least
one month in advance. .
The employer upon whom no such notice
was served may hold the employee liable for
damages.

c) RETRENCHMENT TO PREVENT LOSSES and
CLOSURES OR CESSATION OF OPERATIONS
(NOT due to serious business losses or
financial reverses)
- The separation pay shall be equivalent to one
(1) month pay or at least ^ month pay for every
year of service, whichever is higher.
In the case of ILLNESS
- separation pay equivalent to at least one
month salary or to ^ month salary for every
year of service, whichever is greater, a fraction
of at least 6 months shall be considered one
(1) whole year.

^ GUIDELINES TO DETERMINE THE VALIDITY OF
TERMINATION:

1.
2.
3.
4.
5.

Gravity of the offence
Position occupied by the employee
Degree of damage to the employer
Previous infractions of the same offense
Length of service
A ART 287. RETIREMENT

^ RETIREMENT AGE -The age of retirement is that
specified in the CBA or in the employment
contract. If it is not specified,
1. 60-65 -retirement is optional but
the employee must have served

at least 5 years ;
2.

65-compulsory retirement age (no
need for 5 years of service)

^ BENEFITS- A retiree is entitled to a retirement pay
equivalent at least ^ month salary for every year of
service, a fraction of at least six (6) months being
considered as one whole year.
Unless the parties provide for broader
inclusions, the term “one half (1/2) month” salary
shall mean:

15 days plus 1/12 of the 13th month
pay and

the cash equivalent of NOT more than
5 days of service incentive leaves.
(22.5 days per year of service)
^ NOTE: Exempted from the payment of retirement
pay
are
retail,
service
and
agricultural
establishments or operations employing NOT more
than ten (10) employees or workers.

BOOK SEVEN
TRANSITORY AND FINAL
PROVISIONS
TITLE II
PRESCRIPTION OF OFFENSES AND
CLAIMS
A ART. 291. MONEY CLAIMS ^

PERIODS OF PRESCRIPTION
A. MONEY CLAIMS-The prescriptive period is 3
years from the accrual of the cause of action.
B. ULP -The prescriptive period of filing a case
for ULP is 1 year from the accrual of the cause
of action.
^ ILLEGAL DISMISSAL
The prescriptive period of filing a case for
illegal dismissal is 4 years from the accrual of the
cause of action. (Art. 1146)
NOTE: The period of prescription mentioned under
Article 281, now Article 292, of the Labor Code,
refers to and “is limited to money claims, all other
cases of injury to rights of a workingman being
governed by the Civil Code. Hence, reinstatement
prescribes in 4 years.

POST- EMPLOYMENT
^ FORMS OF REINSTATEMENT:
1.

ACTUAL OR PHYSICAL REINSTATEMENT
-the employee shall be admitted back to

work;
2.

PAYROLL REINSTATEMENT
- the employee is merely reinstated in the
payroll.
^ PERIOD COVERED BY THE PAYMENT OF
BACKWAGES: Backwages shall cover the period
from the date of dismissal of the employee up to
the date of actual reinstatement.’
^ SECURITY OF TENURE: An employer CANNOT
terminate the services of an employee EXCEPT for
a just cause or when authorized by law.
^ REQUIREMENTS OF DUE PROCESS
BEFORE AN EMPLOYEE CAN BE REMOVED:
1. written notice to apprise the employee of the
particular acts or omission for which his
dismissal is sought and is hereby considered
as the proper charge;
2. ample opportunity to be employee to be heard
and if the employee so decides, with the
assistance of counsel; and
3. written notice informing the employee of the
employer’s decision to dismiss him.

“Under the so-called ‘WENPHIL DOCTRINE”
if just or authorized cause exist but the affected
employees right to due process has been violated,
the dismissal is valid but the employee is entitled
to damages by way of indemnification for the
violation of the right.
On Jan. 27, 2000, the SC in the case of
SERRANO vs. ISETANN et. al. Disregarded this
WENPHIL DOCTRINE and ruled that if the
employee’s right to due process is violated, his
dismissal becomes illegal regardless of the
existence of a just and authorized cause.
^ REINSTATEMENT - Restoration of the employee
to state from which one has been removed or
separated without loss of seniority rights and other
privileges.

^ WHAT HAPPENS IF THERE IS AN ORDER OF
REINSTATEMENT BUT THE POSITION IS NO
LONGER AVAILABLE? If the position previously
occupied by the employee is no longer available at
the time of reinstatement, he should be given a
substantially equivalent position.

^ If THERE IS NO SUBSTANTIALLY EQUIVALENT
POSITION: If no substantially equivalent position
is available, reinstatement should not be ordered
because that would in effect compel the employer
to do the impossible. In such a situation, the
employee should merely be given separation pay
of the one month salary for every year of service
(1:1).

^ CIRCUMSTANCES WHEN COMPANY MAY NOT

REINSTATE DESPITE ORDER OF
REINSTATEMENT
1.

Transfer of business ownership;- There is no law
requiring a purchasing corporation to absorb the
employees of the selling corporation. A fortiori,
reinstatement of unjustly dismissed employees
CANNOT be enforced against the new owner
UNLESS there is an express agreement on the
assumption of liabilities by the purchasing
corporation.
2. When reinstatement is rendered impossible
due to the abolition of the position;
3. When the business has closed down;
4. Physical incapacity of employee
5. Doctrine of Strained Relations-When the
employer can no longer trust the employee
and vice-versa, reinstatement could not
effectively serve as a remedy. Applies only to
positions which require trust and confidence;
or
Under the circumstances where the
employment relationship has become so strained
to preclude a harmonious working relationship,
and that all hopes at reconciliation are nil after
reinstatement, it would be more beneficial to
accord the employee backwages and separation
pay.

^BACKWAGES-Relief given to an employee to
compensate him for lost earnings during the period
of his dismissal.

How computed:
Under existing law,
backwages is computed from the time of the illegal
dismissal up to time of actual reinstatement.
& WHAT ARE INCLUDED IN THE

COMPUTATION OF BACKWAGES
1.

3.

transportation and emergency allowances
2. vacation or service incentive leave and sick
leave
13th month pay.
However, facilities such as uniforms, shoes,
helmets and ponchos should NOT be included in
the computation of backwages.

REASON: said items are given free, to be
used only during official tour of duty not for private
or personal use.
^ CIRCUMSTANCES THAT PREVENT AWARD OF
BACKWAGES:
1.
2.
3.
4.
5.
6.

death of the employee
physical and mental incapacity
business reverses
closure of business
reinstatement of dismissed employee
confinement in jail

SPECIAL LAWS
SOCIAL SECURITY SYSTEM

^ COVERAGE:
Compulsory upon all employees not over
60 years of age and their employers
In case of domestic helpers, their monthly
income shall not be less than one thousand pesos
Any benefit already earned by the
employees under private benefit plans existing at
the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired and shall
continue to remain under the employer’s management
unless there is an existing agreement to the contrary
Filipinos recruited by foreign based
employers for employment abroad may be covered by
the SSS on a voluntary basis
Compulsory upon such self- employed
persons as may be determined by the Commission
including but not limited to the following:
1. all self employed professionals
2. partners and single proprietors
3. actors and actresses directors
4. professional athletes, coaches, trainers
5. individual farmers and fishermen
^ EFFECTIVE DATE OF COVERAGE:
Shall take effect on the first day of
the operation with respect to the employer
and that of the employee on the day of his
employment
^ DEPENDENTS:
1.
2.

3.

the legal spouse entitled by law to
receive support from the member
the legitimate, legitimated or legally
adopted and illegitimate child who is
unmarried, not gainfully employed and
has not reached 21 years of age or if 21
years of age, he is congenitally
incapacitated or while still a minor has
been permanently incapacitated and
incapable of selfsupport, physically and
mentally and
the parent who is receiving regular
support from the member

^ EMPLOYER
Any person natural or juridical,
domestic or foreign, who carries on in the
Philippines, any trade business,

industry undertaking or activity of any kind
and uses the services of another person who
is under his orders as regards the
employment except the Government and any
of its political subdivisions,
branches
or
instrumentalities, including corporations
owned or controlled by the Government Selfemployed person shall be both the employer
and employee at the same time.
^ EMPLOYEE
Any person who performs services
for an employer in which either or both
mental and physical efforts are used and
who receives compensation for such
services, where there is an employeremployee relationship.

^ BENEFICIARIES
The dependent spouse until he or she
remarries, the dependent legitimate,
legitimated or legally adopted and
illegitimate children who shall be the primary
beneficiaries of the member, PROVIDED that
the dependent illegitimate children shall be
entitled to 50% of the share of the legitimate,
legitimated or legally adopted children
In the absence of the legitimated,
legally adopted or legitimate children,
illegitimate children shall be entitled to 100%
of the benefits.
In their absence, the dependent
parents who shall be the secondary
beneficiaries.
In the absence of all of the
foregoing, any person designated by the
covered employee as secondary beneficiary
MEDICARE
^ COVERAGE:
All SSS members are covered under the
Medicare program. Total permanent disability,
unemployed partial permanent disability, retirement
pensioners and survivors of deceased members of the
SSS and their dependents are also entitled to medical
care benefits without need of additional contributions
^ PERIOD OF ENTITLEMENT
The member or pensioner is entitled to a
maximum of 45 days confinement in a hospital in a
given calendar year. His dependents are given another
set of 45 days to be shared among themselves.
Unused benefits cannot be carried over to the
succeeding year.

GOVERNMENT SERVICE
INSURANCE SYSTEM
^ COMPULSORY MEMBERSHIP
Compulsory for all employees receiving
compensation who have not reached the compulsory
retirement age, irrespective of employment status,
except members of the Armed Forces and the PNP,
subject to the
condition that they must settle first their financial
obligations with the GSIS and contractuals who have
no employer and employee relationship with the
agencies they serve.
Except for the members of the Judiciary and
constitutional commissions who shall have life
insurance only, all members of the GSIS shall have life
insurance, retirement and all other social security
protection such as disability, survivorship, separation
and unemployment benefits.

^ COMPUTATION OF SERVICE
The computation of service for the purpose
of determining the amount of benefits payable shall be
from the date of the original appointment/ election
including periods of service at different times under
the authority of the Republic of the Philippines and
those that may be prescribed by the GSIS in
coordination with the Civil Service Commission.
All service credited for retirement,
resignation or separation for which corresponding
benefits have been awarded shall be excluded in the
computation of service in case of reinstatement in the
service of an employer and subsequent retirement or
separation which is compensable.

^ UNEMPLOYMENT OR INVOLUNTARY SEPARATION
BENEFITS
Monthly cash payments equivalent to 50% of
the average monthly compensation shall be paid to a
permanent employee who is involuntarily separated
from the service due to the abolition of his office or
position usually resulting from reorganization.
^ RETIREMENT BENEFITS: CONDITIONS FOR
ENTITLEMENT
1.
2.
3.

Member has rendered at least 15 years
of service
He is at least 60 years of age at the time
of retirement
He is not receiving a monthly pension
benefit from permanent total disability

^ PERMANENT DISABILITY BENEFITS

Monthly income benefit for life equal to the
basic monthly pension effective from the date of the
disability. Provided:
1. He is in the service at the time of the
disability
2. If separated from service, he has paid at
least 36
monthly
contributions within the 5 year period
immediately preceding the disability or
has paid a total of at least 180 monthly
contributions prior to the disability
Unless the member has reached the
minimum retirement age, disability benefits shall
be SUSPENDED when:

All employees except members of the AFP
and the PNP shall be compulsorily covered with life
insurance.
^ PRESCRIPTION OF CLAIMS
Claims for benefits under the Act except for
life and retirement shall prescribe after 4 years from
the date of the contingency.
^ JURISDICTION
GSIS shall have the exclusive and original
jurisdiction to settle any dispute arising under the Act
and any other laws administered by the GSIS.

RA 8042: "MIGRANT WORKERS AND OVERSEAS
1.
2.

3.

he is reemployed
he

recovers
from his
disability as determined by the
GSIS, whose decision shall be
final and binding
he fails to present himself
for medical examination
when required by the GSIS
^ TEMPORARY DISABILITY BENEFITS
75% of the current daily compensation for
each day or fraction thereof of temporary disability
benefit not exceeding 120 days in one calendar year
after exhausting all sick leave credits and collective
bargaining agreement sick leave benefits. PROVIDED:
1. he is in service at the time of his
disability
2. if separated, he has rendered at least 3
years of service and has paid at least 6
monthly contributions in the 12- month
period immediately preceding the
disability

FILIPINOS ACT 0F 1995”
Approved on 07 June 1995 and took effect
on 15 July 1995. As indicated in its title, the law
institutes the policies of overseas employment and
establishes a higher standard of protection and
promotion of the welfare of migrant workers, their
families, and of overseas Filipinos in distress.
^ GUARANTEE OF PROTECTION FOR OVERSEAS
WORKERS
The State shall deploy overseas Filipino
workers only in countries where the rights of
Filipino migrant workers are protected. The
government recognizes any of the following as a
guarantee for the protection of the receiving country
of the rights of overseas Filipino workers:
1.
2.

HOWEVER:
A member cannot enjoy temporary
total disability benefit and sick leave pay
simultaneously.
In no case shall it be less than
70 pesos a day.

3.

^ SURVIVORSHIP BENEFITS:

4.

Upon the death of a member, the primary
beneficiaries shall be entitled to: survivorship
pension, PROVIDED:
a. member was in service at the time of his
death’
b. if separated from service, has rendered at
least 3 years of service and paid 36 monthly
contributions with the 5- year period
immediately preceding his death or has paid
a total of at least 180 monthly contributions.
^ LIFE INSURANCE BENEFITS

It has existing labor and social laws
protecting the rights of migrant workers;
It is a signatory to multilateral
conventions, declarations or resolutions
relating to the protection of migrant
workers;
It has concluded a bilateral agreement
or arrangement with the government
protecting the rights of overseas
Filipino workers; and,
It is taking positive, concrete measures
to protect the rights of migrant workers.

^ JURISDICTION
- NLRC
RA 8042 has transferred to the NLRC the
jurisdiction over employer-employee cases
1. Money Claims.-, the Labor Arbiters

of the National Labor Relations Commission
(NLRC) shall have the original and exclusive
jurisdiction to hear and decide, the claims arising
out of an employer-employee relationship or by
virtue of any law or contract involving Filipino workers
for overseas deployment including claims for actual,

moral, exemplary and other forms of damages.

the exclusion of other courts.

^ LIABILITIES
r PRESCRIPTIVE PERIODS
The liability of the principal/employer and
the recruitment/placement agency for any and all
claims under this section shall be joint and several.
The performance bond to be filed by the
recruitment/placement agency, as provided by law,
shall be answerable for all money claims, or damages
that may be awarded to the workers. If the
recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the
case may be, shall themselves be jointly and solidarily
liable with the corporation or partnership for the
aforesaid claims and damages.

Illegal recruitment cases under this Act shall
prescribe in five (5) years; provided, however, That
illegal recruitment cases involving economic sabotage
as defined herein shall prescribe in twenty (20) years.
(Sec. 12, R.A. 8042)
r PROHIBITED ACTS IN THE RECRUITMENT AND
PLACEMENT OF WORKERS UNDER THE LABOR
CODE ARE RETAINED UNDER THE MIGRANT
WORKERS ACT WITH THE ADDITION OF THE
FOLLOWING:
1.
2.

Such liabilities shall continue during the entire period
or duration of the employment contract and shall not
be affected by any substitution, amendment or
modification made locally or in a foreign country of
the said contract.

Failure to deploy employee without valid reason
Failure to reimburse expenses incurred in
connection with his documentation and
processing in cases that deployment did not take
place

r DIFFERENT FUNDS CREATED UNDER THE LAW:
POEA
The POEA retains original and exclusive
jurisdiction to hear and decide:
1. all cases which are administrative in character,
involving or arising out of violations of rules and
regulations relating to licensing and registration
of recruitment and employment agencies or
entities; and,
2. disciplinary action cases and other special cases
which are administrative in character, involving
employers, principals, contracting partners and
Filipino migrant workers.
Three Month's Pay Under RA 8042
The date the employment termination
occured is material. On or after 15 July 1995, the law
to apply is RA 8042.
Under Section 10 of RA 8042, a worker
dismissed from overseas employment without just,
valid or authorized cause as defined by law or
contract, is entitled to the full reimbursement of his
placement fee with interest at twelve percent (12%)
per annum, plus his salary for the unexpired portion
of his employment contract or for three (3) months for
every year of the unexpired term, whichever is LESS.

r VENUE
A criminal action arising from illegal
recruitment shall be filed with the RTC of the province
or city where the offense was committed or where the
offended party actually resides at the time of the
commission of the offense. The court where the
criminal action is first filed shall acquire jurisdiction to

1.
2.
3.

Repatriation fund
Loan Guaranty fund
Legal Assistance fund
4. Congressional Migrant Workers Scholarship fund
r GOVERNMENT AGENCIES MOBILIZED:

1.
2.
3.
4.

DFA
DOLE
POEA
OWWA
r GUIDELINES ON THE RIGHT TO ORGANIZE OF
GOVERNMENT EMPLOYEES (E. O. 180)
COVERAGE
-Applies to all employees of all branches,
subdivisions, instrumentalities and agencies of the
government, including government- owned or
controlled corporations WITH original charters
All government employees can form, join or
assist employees’ organizations of their own choosing
for the furtherance and protection of their interest.
They can also form in conjunction with appropriate
government authorities, labor- management
committees, works councils and other forms of
workers’ participation schemes to achieve the same
objectives.
High- level employees whose functions are
normally considered as policy- making or managerial
or whose duties are of a highly confidential nature
shall not be eligible to join the organization of rank
and file government employees.
r PROTECTION OF THE RIGHT TO ORGANIZE

1.

2.

Government employees shall not be
discriminated against in respect of their
employment by reason of their
membership in employees’ organization
or participation in the normal activities
of the organization.
Government authorities shall not
interfere in the establishment,
functioning or administration of
government
employees’
organization through acts designed to
place such organization under the
control of the government authority

Service AND the Department of Labor and
Employment .

13TH MONTH PAY LAW (P.D. 851)
r WHO ARE EXCLUDED FROM
COVERAGE:
1.
2.
3.
4.

government employees
employees already receiving 13th month pay
household helpers
employees paid purely on commission basis r WHAT
CAN BE CONSIDERED AS 13TH MONTH PAY:

1.
2.

Christmas bonus
Midyear bonuses

r REGISTRATION
- Government
employees’
organization shall register with the Civil

3.

Cash bonuses

X. SOCIAL WELFARE LEGISLATION
COMPARATIVE CHART
SSS (RA 1161))

GSIS (RA 8291

ECC (PD 626)

STATEMENT
OF POLICIES

VOLUNTARY

EMPLOYER

COVERAGE
COMPULSORY
BY-ARRANGEMENT

EXEMPTED
EMPLOYMENT

To establish, develop, promote and perfect a
sound and viable tax exempt social security system
suitable to the needs of the people which shall provide
employees
and
their
beneficiaries
protection
against
the
1. Spouses
who
devote
full time to
managing
of
hazards
of disability,
sickness,
old age,
deaththey
andare
other
household
and family
affairs,
UNLESS
contingencies
resulting
in loss
of income
or financial
also engaged
in other
vocation
or employment
burden.
which is subject to
MANDATORY coverage.
Employers
in private
sector
2. 2. Filipinos
recruited
by foreign-based employers
for employment abroad.
3. Employees separated from employment by paying
TOTAL contribution (meaning : both employer and
employee’s share)
1. Employees not over 60 years of age and their
Any foreign
government, international organization or
employers.
their
owned
instrumentality
MAT enter
into
2. 2.wholly
Domestic
helpers
whose monthly
income
is not
agreement
for the
inclusion of their employees EXCEPT
less than
P1,000.00.
those
covered by their
own respective
civilby
service
3. Self-employed
persons
as determined
the
retirement
systems.
Commission
: a) self-employed professionals; b)
partners and single proprietors; c) actors and
actresses,
directors,
etc;
professional
athletes,1.
1. purely
CASUAL
and not
ford)
purpose
or occupation
coaches,
trainers, etc. and e) individual farmers 2.
of
the employer.
and fishermen.
2. Performed
in an alien vessel by an employee if he is
employed when such vessel is outside of the
Philippines.
3. By the government of the Philippines or
instrumentality or agent thereof.
4. Foreign government of international organization.

All government agencies and
instrumentalities , including GOCCs

All employers (private or public)

1. Compulsory for all employees
receiving compensation who have not
reached compulsory retirement age
irrespective of employment status.
including barangay and sanggunian officials

AFP
PNP
3. Contractuals who have no employer and
employee relationship
* Members of the judiciary and the
Constitutional Commissions - life insurance
only

Any person compulsorily covered by GSIS or
SSS
Any person employed as casual, emergency,
temporary, substitute or contractual

BENEFITS

1.
2.
3.
4.
5.
6.
7.
8.

Monthly pension
Dependents’ pension
Retirement
Death Benefits
Permanent Disability benefits
Funeral
Sickness
Maternity

1.

Dependent spouse until remarriage
2. Dependent legitimate, legitimated or legally
Employer’s
contributions
adopted
and illegitimate children
Employees’ contribution
Government contribution

1.
2.
3.
4.
5.
6.

Life Insurance
Retirement
Disability
Survivorship
Separation
Unemployment

* Life insurance for the members of the
judiciary and constitutional commissions.

BENEFICIARIES

PRIMARY

1.
2.

CONTRIBUTIONS

1.
2.
3.

MODE
OF COLLECTION

1. For those with employees - Employee contribution
shall be deducted by the employees based on an
approved schedule. Employer shall remit BOTH
EMPLOYEE AND EMPLOYER contribution to the
system.
2. For self-employed - Self-employed shall pay BOTH
EMPLOYER AND EMPLOYEE contributions to the
system.
1. In
the absence
of primary beneficiaries,
dependent
3. For
government
contribution
- remitted to the
SSS within
parents
the
first 10 days of each calendar month following the
month got which they are applicable.

SECONDARY

* Contributions under this Act in case where an
employer refuses or neglects to pay the same shall be
collected by the SS in the same manner as taxes are
made collectable under the National Internal Revenue
Code.

1. Legal, dependent spouse until remarriage
2. Dependent children - defines as the
Employer’s contribution
legitimate,
legitimated, legally adopted
Employee’s
contribution
child, including the illegitimate child, who
is unmarried, not gainfully employed, not
1. Theover
employer
shall
deduct each
from
the age
of majority,
or ismonth
over the
the salary
or
compensation
of
each
employee
age of majority but is incapacitated and
the contribution
payment.
Employer shall remit
incapable of
self-support.
to the system within 10 days the EmployerEmployee contributions.

1. Dependent parents
2. Legitimate descendants subject to the
restrictions on dependent children, the
legitimate descendants

PENALTIES

1. False statement or misrepresentation as to
any compensation as to any compensation
paid or received or whoever makes or causes
to be made any false statement of a material

ENTITLED TO RETIREMENT
BENEFITS

fact in any claim for any benefit payable
5. Fails
or this
refuses
comply
provisions
under
Act -toArt.
172 ofwith
the the
RPC
promulgated by the Commission - fine of P5,000.00 ot
(falsification be private individuals and
P20,000.00 or imprisonment of
falsified documents)
6 years and 1 day to 12 years or both.
2. Obtaining or receiving any money or check
6. Misappropriation
of funds
- penalties
undertoArticle 217
without being entitled
thereto
with intent
of the RPC.
defraud any covered employee, employer or
7. Failure to remit the said deductions to the
SSS - fine of P5,000.00 to P20,000.00 and
SSS within 30 days from date they become due imprisonment of 6 years and 1 day to 12
Article 315 of the RPC (Estafa).
years or both.
Member has reached age of 60 or 65.
3. Buys, sells, offers for sale, uses, transfers,
takes or gives in exchange, or pledges or
give in pledge, except as authorized in this
Act - fine of P5,000.00 to P20,000.00 or
imprisonment of 6 years and 1 day to 12
years or both.
4. Makes, alters, forges or counterfeits any
stamps, coupon, ticket or other device
prescribed by the Commission, or uses, sells,
lends or in his possession any such altered,
forged, or counterfeited materials, or makes,

DISABILITIES
DEEMED
PERMANENT TOTAL

uses or sells or has in his possession any
materials used in the manufacture of such
1. Complete loss of sight in both eyes.
stamp, coupon, ticket or book - fine of
2. Loss of two limbs at or above the ankle or wrist.
P5,000.00 to P20,000.00 or imprisonment of
Permanent
complete
paralysis
of two limbs.
6 3.
years
and 1 day
to 12 years
or both.
4. Brain injury resulting in incurable imbecility or
insanity.
5. Other cases determined by SSS.

1. Participating directly or indirectly in
commission of fraud, collusion,
falsification or misrepresentation in
any transaction of the GSIS - Article
172 of the RPC (Falsification by
(Malversation
of public
funds
properties).
private individuals
and use
of or
falsified
6. For head of officers who fails or refuses
documents)
payment or remittance of
2. Receiving money or check involving
GSIS payments within 30 days from the time
provision of this act, without being
its
demandable
- imprisonment
of 1 of
year to
entities
with intent
to defraud - fine
5 years and fine of P10,000.00 to P20,000.00
P5,000.00 to P20,000.0 or
and aboslute perpetual disqualification.
imprisonment of 6 years and 1 day to
12 years or both.
3. Refusing to comply with the
OPTIONAL. Member meets the ff :
provisions
of this
Act 15
- fine
of
1. has
worked for
at least
years.
P20,000.00
2. IsP5,000.00
at least 60toyears
of ageor
at time of
imprisonment
of
6
years
and 1 day to
retirement, and
12
years
or
both.
3. Is not receiving monthly pension benefit from
4. Failure
to include
in disability
the annual
permanent
total
budget corresponding employer
contributions
by finance
officers,
COMPULSORY.
Member
is 65 years
with at least
treasurers,
cashiers,
etc.is- less
6 months
15 years
of service
(if service
than 15
1 day
6 yearsto
imprisonment
years,and
he may
betoallowed
continue in
and
a
fine
of
P3,000.00
to P6,000.00
accordance with
Civil Service
Rules
and
Regulations.)
and absolute perpetual
disqualification from holding office.
5. Misappropriation or taking of funds
1. Complete loss of sight in both eyes.
and property of the GSIS for
2. Loss of two limbs at or above the ankle or
purposes other than authorized in this
wrist.
Act - Article 217 of RPC
3. Permanent complete paralysis of two limbs.
4. Brain injury resulting in incurable imbecility
or insanity
5. Other cases determined by GSIS.

1. Temporary total disability lasting over 120
days.
2. Complete loss of sight in both eyes.
3. Loss of limbs at or above the ankle or
wrist.
4. Permanent complete paralysis of two
limbs.

5. Brain injury resulting in incurable
imbecility or insanity.
6. Other cases determined by
Medical Director of SSS

DISABILITIES DEEMED
PERMANENT PARTIAL

Complete
and permanent
of use
ofnotice.
a digit,
> Employer
to notify
SSS withinloss
5 days
from
limb, ear (or both ears), hearing in one or both ears, or
sight in one eye.

Complete and permanent loss of a digit,
limb, ear (or both ears), hearing in one or both
ears, or sight in one eye.

SYSTEM EXCUSED FROM
LIABILITY

1.
2.
3.
4.

EFFECT OF
ERRONEOUS
PAYMENT

AMOUNT OF FUNERAL
BENEFITSSETTLEMENT
DISPUTE

WHO PAYS REMITTANCES?

P12,000.00
1. File claim with SSS.
2. Appeal to Social Security Commission.
Employer and Employee
3. Appeal to CA.
4. Appeal to SC

COVERAGE

Occurrence of contingency whether or not workconnected.

NOTICE
REQUIREMENT
EXCLUSIVENESS OF
BENEFITS

> Employee to notify employer within 5 days from injury
or illness(unless
nobenefits
longer necessary
> May
Apply for same
in EC, if in under
privatethe
exceptions)
sector.
> May not receive benefits for same contingency
under GSIS offers more (he may then receive
deficiency)

For permanent disability in the ff. cases :
grave misconduct
notorious negligence
Legal And eligible claimant may still demand
willful intent to kill self or another
benefits, without prejudice to right of GSIS to
habitual intoxication
sue improper claimant.

exceptions)
Completetoand
permanent
loss
of use
> Employer
record
the same
in logbook
of a digit,
limb,
ear (or
both
ears), hearing in
within
5 days
from
notice.
one
or both ears,
or sight
in or
one
eye.within 5
> Employer
to notify
SSS
GSIS
days from recording in logbook.
For all contingencies in the ff. cases :
1. intoxication
2. willful intent to injure or kill one’s self or
SSS absolved unless notified of other claim
another
prior to payment.
3. notorious negligence

P12,000.00 (to be raised to P18,000.00 in year
2002)
1. File claim with GSIS.
Employer And Employee
2. Appeal to GSIS Board.
3. Appeal to CA.
4. Appeal to SC.

P10,000.00

Occurrence
contingency
whether
or not
* Appeals
shall beofgoverned
by Rules
43 and
work-connected.
45 of the 1997 Rules of Civil
Procedure

Work-related illness or injury.

> Whenever other laws provide similar
benefits for the same contingencies,
members who qualifies has option to
choose. If benefits chosen are less than
under GSIS, he may get the difference.
> However, with respect to work-

1. File claim with SSS and GSIS.
Employer
2. Appeal to ECC.
3. Appeal to CA
4. Appeal to SC

> Employee to notify employer within
5 >days
injury
or same
illnessbenefits
(unlessunder
it is no
Mayfrom
apply
for the
longerSSS,
necessary
under
the
if in the private sector.
> May apply for same benefits under
GSIS, if in public sector (applying
Mazo Sugar Central vs CA case.

connected illness and injuries, he may also
recover in full under ECC, applying the
Mazo Sugar Central vs
CA case.
PRESCRIPTIVE
PERIODS

10 years from the time the right of action accrues.

4 years from date of contingency except life
and retirement benefits

XI. CHART ON JURISDICTION
Grievance Machinery

Voluntary Arbitration

Bureau Of Labor Relations

1. Inter-union dispute
2. Intra-union dispute

3. Labor
Management
Relations
except
interpretation
or
implementation of the CBA

NLRC

Labor Arbiter (UTRCCCM)

1. Interpretation or
implementation of the
CBA
2. Interpretation or
enforcement of company
personnel policies

1. Unresolved Grievances
2. Agreement on other labor
dispute(Bargaining
deadlock, ULP)

1. ULP

2. Termination Disputes

1. Appellate jurisdiction
over Labor Arbiters
2. Injunction

3. Reinstatement-with cases
3. Contempt
involving wages
4. Claims of damages arising
from E-E relationship
5. Cases involving prohibited
acts in strikes

(ART. 264)
6. Claims arising from E-E
relationship including
those of domestic
service, involving amount
exceeding P5,000.0
7. Migrant Worker Cases

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