Constitution/Civil Code

Asia Brewery Case

- the procedure by which the employers were provided with
a means to understate their profitability cannot be
countenanced because this could unduly deprive labor of its
right to a just share in the fruits of production
- this understatement defeated the right of labor to a just
wage when the wage award was inaccurate

Abbot Laboraties Doctrine
- compliance alone with the statutorily-prescribed due
process would not suffice in termination of employment;
additionally, there must be compliance too with the
company-prescribed due process
-otherwise, the termination shall be considered legal and
valid but the employer will be penalized with indemnity in
the form of nominal damages

Serrano Doctrine
- the subject clause has a discriminatory intent because of
the 3-month cap on OFWs whose contract periods are for
more than 1 year than those who are illegally dismissed
with less than 1 year left in their contracts who are entitled
to their salaries for the unexpired portion
* Note that the unconstitutional rule was replicated in RA
10022; hence, according to a case after the Serrano ruling,

all statutes are to be construed as having only a prospective

application

1700 NCC (SC Case)
- A contract of employment is impressed with public
interest; consequently, these contracts are subject to police
power of the state

On construction in favor of labor
- while the constitution and the law tend to favor the
working man, protection to labor is also assured
- the policy of social justice is not intended to countenance
wrongdoing

Principle of co-determination
- The grant of the right of participation does not mean co-
management of business nor intrusion into management
prerogatives
- it just means right to participate in the discussion of
matters affecting their rights

Recruitment

Simple illegal recruitment
- under RA 8042, non-possession of a license or authority to
recruit is no longer an essential ingredient of the crime of
illegal recruitment

- CETCHUP, referring, contract services, promising,

adveritising
- a) charge amount greater than the sched of allowable fees;
b) false notice or info in relation to recruitment; c)
engagement in recruitment in jobs harmful to public health
or morality; d) recruitment of travel agency; e) substitute
employment contracts to the prejudice of the worker

SC: Illegal recruitment as economic sabotage - malum
prohibitum

SC: No need for the directors to be impleaded because
under RA 8042, if the recruitment agency is a juridical being,
the directors shall themselves be solidarily liable with the
corporation

SC: Even if the recruitment agency and the foreign principal
had already severed their agency agreement at the time the
worker was injured, the recruitment agency may still be
sued for violation of the employment contract if no notice
of the termination of the agency's agreement with its
foreign principal was given to the ofw
- legal basis: agency - if the agency has been entrusted for
the purpose of contracting with specified persons, its
revocation shall not prejudice the latter if they were not
given notice

Agency - The agency w/c deployed the employees whose

employment contract were adjudged illegally terminated
shall be jointly and solidarily liable with the principal
SC: hence, previous owner remains liable even if there is an
undertaking to assume responsibility by the new owner
- RA 8042 - severance of relations between the local agent
and foreign principal does not affect the liability of the
foreign principal (local agency is solidarily liable with the
foreign principal)

Theory of imputed knowledge
- knowledge of the agent is knowledge of the principal, but
it is not the other way around
- why? the presumption is that the agent will perform his
duty and communicate to his principal the facts that the
agent acquires

SC: Even if OFWs are not entitled to backwages,
reinstatement and separation pay because their
employment is purely fixed term in character, they are
entitled to actual or compensatory damages on the ground
of breach of contract, i. e. failure of the recruitment agency
to deploy them abroad

SC: findings of company-designated physician are not
conclusive because the OFW has the right to seek a second
opinion from other physicians


Salazar vs Achacoso
- the exercise by the DOLE Secretary of his twin powers to
issue arrest and seizure orders is unconstitutional; however,
the declaration should not affect the exercise of other
distinct power to close violator-companies' establishments
or entities

SC: The power to regulate and restrict the recruitment and
placement of all agencies is a valid grant of police power

RA 8042
- The state shall allow the deployment of OFW only in
countries where the rights of Filipino migrant workers are
protected.
- It is a guarantee that the receiving country has existing
labor and social laws protecting the rights of workers
- It is not a guarantee that the receiving country promotes
and facilitates re-integration of migrants into the national
mainstream

Termination of Employment

Remember: Determine first whether worker is an employee
before you answer whether he is a regular employee

Remember: If a problem mentions "by laws", most likely the

issue is on jurisdiction - a position must be expressly

mentioned in the by-laws to be an officer; if so, the
dismissal is not a labor dispute (not an illegal dismissal case),
but an intra-corporate dispute

Note: Absence of contract is more beneficial of employees
because you are covered by the law for as long as you can
prove that you have worked; contracts only works to restrict
rights

SC: Even if in a boundary hulog system, there is a dual
juridical relationship (E-Er and Vendor-Vendee), one
relationship does not negate the other

SC: The most important factor in determining the existence
of an employer-employee relationship is the power to
control the results achieved and the employee's method of
achieving the task

SC: Elements of a valid fixed-term agreement - voluntariness
in entering the agreement and more or less in equal
bargaining positions
* Notice of termination is not necessary

SC: Their is no labor code provision on fixed-term
employment.

SC: Employee is deemed regular absent any contract to

prove probationary employment.
- The law presumes regularity of employment

SC: 2 categories of project employees:
a) job within the regular or usual business of the employer
company, but which is distinct from the company's other
undertakings
b) job not within the regular business
- Project employees should be informed of their status as
such at the inception of the employment relationship
- written project employment contract is an indispensable
requirement

Work Pool Principle
- Mere membership in a work pool does not result in
becoming regular employees by reason of that fact alone,
but such employee may attain regular status as a project
employee and this kind of employee us known as regular
project employee
- Consequently, he is entitled to a right to be rehired if there
is a new project; otherwise, there is illegal dismissal

SC: Outsourcing is a universally accepted management
prerogative. For as long as the employer is motivated by
good faith, it is not illegal per se.

Department Circular 2012: BPO's removed from the

coverage of the rules on contracting arrangement
- Department Order 18-A 2011 contemplates generic
singular activity in one contract between the principal and
the contractor and does not contemplate information
technology-enabled services involving an entire business
process

Department Order 18-A: requirements to be a legitimate job
contracting arrangement
a) duly-registered
b) distinct and independent business
c) substantial capital and investment (SC: 2 separate req)
d) service agreement should ensure compliance with all the
rights and benefits of workers

SC: (gross and habitual neglect of duties as just cause)
Habituality may be disregarded if negligence is gross or the
damage or loss is substantial

SC: No hearing is required to validly dismiss an employee for
abandonment

SC: Mere accusations by the employee will be sufficient to
dismiss a managerial and supervisorial employee for loss pf
trust and confidence, but not eith respect to rank-and-file.

SC: Religious ground is the only exception that may

effectively be invoked against the application of the union
security clause in the dismissal of an employee.
* Employer is not duty-bound to immediately implement
the recommendation to terminate made by the union. It
must conduct its own hearing independent and separate
from any hearing conducted by the union

Commentary: common requisites in authorized cause -
a) good faith
b) last resort (no other option available after resorting to
cost-cutting measures
c) separation pay is paid
d) fair and reasonable criteria in ascertaining what positions
are to be affected by the termination

SC: (Disease) Burden of proof rests on the employer;
consequently, the medical certificate should be procured by
the employer and not the employee

SC: Theory of increased risks is irrelevant when the ailment
or sickness is not classified as an occupational disease.

Perez Doctrine
- The ample opportunity to be heard (meaningful
opportunity, verbal or written, to answer the charges and
submit evidence to support his defense) in the labor code

prevails over the hearing pr conference requirement in its

IRR. - A formal hearing becomes mandatory only when
requested by the employee in writing or substantial
evidentiary disputes exist or company rule requires it

SC: Separation Pay in lieu of reinstatement is a recourse
based on equity

Doctrine of Strained Relations
- Reinstatement is not possible because of the antagonism
between the employer and employee
* No strained relations should arise from a valid and legal
act of asserting one's right

Bustamante Doctrine
- the term full backwages should mean exactly that, without
deducting from backwages the earnings derived elsewhere
by concerned employrr during the period of his illegal
dismissal

Labor Standards

Department Advisory on CWW
- Normal workweek reduced to less than 6 days, but total
number of normal workday is increased to more than 8
hours but not to exceed 12 hours
- result of an express and voluntary agreement of majority

of the covered employees or their duly authorized

representatives

SC: for a private school teacher to acquire permanent status
in employment, the following requisites must concur: 1) the
teacher is a full-time teacher, 2) must have rendered 3
consecutive years of service, 3) satisfactory service

SC: A disparity in wages between employees holding similar
positions but in different regions does not constitute wage
distortion. It is the hierarchy of positions and the disparity
of their corresponding wages and other emoluments that
are sought to be preserved by the concept of wage
distortion

SC: across-the-board increase create more distortions in the
labor market which in turn affect adversely the income of
workers; the regional board is deemed to have exceeded its
authority by extending the coverage of the wage order to
wage earners receiving more than the prevailing minimum
wage rate without a denominated salary ceiling

Non-diminution Rule
- prohibits employers from eliminating or reducing the
benefits received by their employees
- SC: this rule applies only if the benefit is based on any:
express policy, written contract or company practice

- SC: even if the employer has been enjoying certain benefits

for quite a long period of time, if the circumstances have
changed which no longer justify the continuation of the
grant of said benefits, the removal does not certainly
constitute a violation of the non-diminution of benefits
principle

Art 124
- the employer cannot be legally obligated to correct wage
distortion if the increase in the wages and salaries was not
due to a prescribed law or wage order

SC: solutio indebiti or payment by mistake must fail in the
light of the Labor Code mandate that all doubts in the
implementation and interpretation of this Code, including
its IRR, shall be resolved in favor of labor

Solo Parental Leave
- Catch all provision: Any person who solely provides
parental care and support to a child or children

IRR of RA 9262
- The employer who denies the application for leave and
who shall prejudice the victim-survivor or any person
assisting a co-employee who is a victim-survivor under the
Act shall be held liable for discrimination and violation of RA
9262


SC: Upon acceptance of employment, a contractual
relationship is established giving the employee an
enforceable vested interest in the retirement fund

The Superiority of Benefits Rule
- once an employee retires, it is not Art 287 that is
controlling but the retirement plan under the CBA or other
applicable employment contract
- SC: but if the CBA is below the requirements set by law,
287 applies

Reasonable Business Necessity Rule
- Used to strike down policies, such as one should resign if 2
employees of the same company get married

Anti Sexual Harassment Act
- Sexual favors of a person with moral ascendancy result in
an intimidating, hostile or offensive environment for the
employee, regardless of whether the demand, request or
requirement for submission is accepted by the object of said
act

Kasambahay Law
- requires that a written contract of employment be
executed; a very significant improvement since not even the
labor code requires the execution of a written instrument in

order to create or establish an employer-employee

relationship
- assignment to non-household work is prohibited
- temporary performance of work outside the household is
allowed but it must be a product of a mutual agreement
between the kasambahay and the employer and that the
additional pay is not less than the applicable minimum age;
and that the original employer is not charging any amount
from the other household; not exceeding 30 days

IRR
Conditions for deduction for lost, destroyed or damaged
materials
a) clearly shown to be responsible
b) reasonable opportunity to show cause why deduction
should not be made
c) fair and reasonable amount of deduction
d) amount deducted does not exceed 20% of the earnings in
a week

Labor Relations Law

Doctrine of Necessary implication
- Art 245 does not directly prohibit confidential employees
from engaging in union activities, but their disqualification
proceeds from the application of this doctrine
- managerial employees are the ones mandated as ineligible


SC: The right if the affiliate union to disaffiliate from its
mother federation or national union is a constitutionally-
guaranteed right (freedom of association) which may be
invoked by the former at any time.

Substitutionary doctrine
- cannot be invoked to subvert an existing CBA in derogation
of the principle of freedom of contract
- except in extraordinary circumstances, like union schism or
split

SC: The duty to bargain does not include the obligation to
reach an agreement

Automatic Renewal Clause
- pending the renewal of the CBA, the parties are bound to
keep the status quo and to treat the conditions in full force
and effect until a new agreement is negotiated and
ultimately concluded

SC: The CBA proposed by the bargaining union may be
adopted as the new CBA if employer refused to negotiate

SC: Suspension agreement of the CBA, there being no
express prohibition in the labor code, is a valid exercise of
freedom to contract


SC: the right to abstain from joining a labor organization is
subordinate to the policy of encouraging unionism as an
instrument of social justice

SC: act of self-preservation to maintain industrial peace is
not ULP

Note: The cooling-off period is counted from the time of the
filing of the notice of strike; the strike ban is reckoned from
the time the strike vote report is submitted

Department Order issued in 2013 on Industries
Indispensable to the National Interest:
- hospital sector
- electric power supply
- water supply services to exclude small water supply service
- air traffic control
- such other industries as may be recommended by the
National Tripartite Industrial Peace Council

SC: return-to-work order is compulsory in character and not
offensive to the constitutional provision against involuntary
servitude because said order is in the nature of a police
power measure
- but the act of the strikers in voluntarily returning to work
does not result in the waiver of their original demands


SC: employees who participated in a strike are not entitled
to wages during the period of strike pursuant to the
principle of "no work, no pay"

Innocent Bystander Rule
- the third party employers who have no employer-
employee relationship with the picketing strikers, may apply
for injunction with the regular courts to enjoin the conduct
of the picket

Procedure and Jurisdiction

SC: NCMB is not a quasi- judicial body; they do not have any
decision-making power

SC: if there is a CBA between the foreign employer and the
bargaining union of the OFWs, the jurisdiction over
monetary claims of OFWs belongs to the VA and not to the
LA

SC: Claims for damages arising from breach of non-compete
clause falls under the jurisdiction of the regular courts

Note: LA and the NLRC have no power to grant reliefs in
claims that do not arise from employer-employee
relationship such as those emanating from quasi-delict or

tort cases

Halaguena Doctrine
- it is not the LA but the regular court which has jurisdiction
to rule on the constitutionality of labor contracts such as the
CBA

2011 NLRC rules of procedure - 2 instances when a writ of
execution should still be issued immediately by the LA to
implement his order of reinstatement, even pending appeal:
a) when the employer disobeys the prescribed directive to
submit a report of compliance
b) employer refuses to reinstate
*LA shall motu proprio issue a corresponding writ

2011 nlrc rules
- posting of bond is mandatory and jurisdictional, but
government is exempt (SC: GOCCs not exempt)
- SC: no monetary award, no bond
- partial bond needed in a motion to reduce bond, which
must not be inadequate

Genuino Doctrine - "refund doctrine"
- disregards the social justice principles
- Follow the Garcia Doctrine

Garcia Doctrine

- 2-fold test to determine the liability of the employer to pay

the wages of the dismissed employee from the time he was
ordered reinstated to the reversal of the LA's decision:
a) actual delay or reinstatement order pending appeal not
executed prior to its reversal; and
b) delay not due to the employer's unjustified act or
omission; if so, employer may still be required to pay the
salaries notwithstanding the reversal

SC: the subject of the visitorial and enforcement powers
granted to the DOLE Sec is the establishment which is under
inspection and not the employees; consequently, in case of
an award from such violation by the establishment, all its
existing employees should be benefited thereby

Department Order issued in 2007
- DOLE RDs designated as Ex-Officio Voluntary Arbitrators

Article 277(b)
- Power of the DOLE Sec to suspend the effects of
termination when:
a) termination may cause a serious labor dispute
b) termination is in implementation of a mass lay-off
- termination contemplated need not be related to the
exercise of the right to self-organization
- Commentary based on jurisprudence: suspension has the
same effect assumption of certification as far as the

reinstatement of the affected employees is concerned

SC: Does the DOLE Sec assume the role of voluntary
arbitrator once he assumes jurisdiction over a labor
dispute?
No. It is not a simple arbitration case, but which involves
impending strike by the employees

NCMB procedural guidelines in the conduct of voluntary
arbitration
- cases cognizable by the VA in their original jurisdiction but
filed with the LA, Dole RD or NCMB should be disposed of by
referring them to VA
*SC: cases cognizable by the VA, but filed with regular
courts should be dismissed

Philtranco doctrine
- a motion for reconsideration should be filed even though it
is not required or even prohibited by the concerned
government office
- why? It is the tangible representation of the opportunity
given to the office to correct itself

Prescription of Actions

SC: the 1-year prescriptive perood in Section 28 of POEA-SEC
was declared null and voud because Art 291 is the law

governing the prescription of money claims for seafarers

SC: illegal dismissal cases, not in the nature of money claims,
the prescriptive period is 4 years under the civil code (injury
to the plaintiff)

Art. 247
- As far as ULP cases are concerned, the running of the 1
year prescriptive period is interrupted during the pendency
of the labor proceeding

RA 8042
a) simple illegal recruitmeny - 5
b) economic sabotage - 20

SSS Law
a) against employer for non-remittance of contributions - 20
b) disability claims - 10

GSIS Law
Except for life and retirement - 4

SC: filing of a case with grievance machinery tolls the
running of the prescriptive period

SC: promissory estoppel is a recognized exception to the 3-
year prescriptive period

- if he did not rely on the promise that he would be paid,

there is no reason why he would delay filing the complaint
before the Labor Arbiter

Social Welfare and Legislation

SSS Law
1. Sickness
- 3 monthly contributions within the 12-month period
immediately before the semester of sickness
- sickness benefit for a max of 120 days, not be paid for
more than 240
2. Maternity
- same contributions with sickness
- first 4 deliveries or miscarriages
3. Retirement
- monthly pension: paid at least 120 monthly contributions,
lump sum if not paid 120
- children not 21, only 5, entitled to dependent's pension
4. Disability
- monthly pension: 36, lump sum not paid
- totally and permanently disabled will receive a lifetime
pension
- dependent's pension not for partially disabled pensioner
5. Death and funeral
- monthly - 36, lump sum not paid
- primary and secondary beneficiaries; illeg only 50 percent

of the share of legit

GSIS Law
1. Excluded from coverage
- uniformed personnel, barangay and sangunian officials,
contractual
2. Benefits
a. Compulsory Life
- a policy holder is entitled to dividends subject to the
guidelines as approved by the GSIS board; not a guaranteed
benefit
b. Retirement
- at least 15 years of service, 60 years of age, not receiving
monthly pension from permanent total disability
c. Separation benefit
- at least 3 years service but less 15
d. Unemployment benefit
- permanent employee at the time of separation and
separation was involuntary due to abolition of his/her office
or position resulting from reorganization
e. Disability
f. Survivorship
- primary and secondary beneficiaries except dependent
children
g. Funeral

Limited Portability Law

- apply to all worker-members of GSIS and/or SSS who

transfer from the public sector to the private or vice-versa,
or who wish to retain their membership in both systems
- SC: totalization of service credits is only resorted to when
the retiree does not qualify for benefits in either or both

Employee's Compensation
- employer does not intervene because the table of
occupational diseases require no proof of causation;
consequently, benefits are automatically paid
- coverage is compulsory in nature
- for death to be compensable: cause of death reasonably
connected with his work, or accepted occupational disease,
or working conditions increased the risk of contracting the
disease