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STUDY GUIDE

LABOR LAW
1. THE EMPLOYER-EMPLOYEE RELATIONSHIP

The existence of an EMPLOYER-EMPLOYEE relationship is the condition sine qua non for the application of the Labor Code, specifically.
Book in (Articles 83-96) on Conditions of Employment to apply. Likewise, the jurisdiction of labor tribunals is premised on the relationship. Excluded
employees; Government employees. Managerial employees, Other officers or members of the managerial staff, and Domestic servants and persons
in the personal service of another.

The term "EMPLOYER" refers to one who engages the services of a worker or employee and pays his wages or salaries. It includes not
only the principal employer but any person acting in his interest, directly or Indirectly. A labor organization, or any of its officers and agents is not an
employer except when acting as such.

An 'EMPLOYEE" is one who renders service to another under a contract for hire, express or implied, oral or written, and is compensated
for his labor or service by wages.

An Individual whose, work has ceased as a result of, or in connection with any unfair labor practice or a current labor dispute. Including
those who participate In a ULP or economic strike is still considered an employee.

The employment relationship is essentially CONTRACTUAL and VOLUNTARY. The relationship cannot be imposed on either the
employer or the employee. The worker is free to sell his labor to anybody just as the employer can purchase labor from anyone he chooses. To
compel the employee to work against his will is involuntary servitude; it is oppression to force an unwilling employer to give work to a worker.

2. TEST TO DETERMINE EXISTENCE OF RELATIONSHIP

Four-fold test or control test

Starting with the case of Viana v. Al Lagadan 99 Phil 408, the Supreme Court used the following criteria in determining the existence of
employer-employee relationship:

a) selection and engagement of the employee;


b) payment of wages;
c) power of dismissal; and
d) power to control employee's conduct.

The "control test" is 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.
The power of control refers 'merely to the "existence" of the power and not to the "actual exercise" thereof.

Not every form of control that a party reserves to himself over the conduct of the other party in relation to services being rendered may be
accorded the effect of establishing an employer-employee relationship. Rules that merely serve as guidelines towards the achievement of the
mutually desired result and do not control or fix the methodology or restrict the party hired to use such means do not establish an employer-
employee relationship.

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Economic reality test

In the early case of Sunripe Coconut Products v. CIR 83 Phil. 518, the Supreme Court used the economic facts of the relation in
determining the existence of employer-employee relationship.

In Sevilla v. Court of Appeals,1 the Supreme Court observed the need to consider the existing economic conditions prevailing between the
parties, in addition to the standard of right-of-control like the inclusion of the employee in the payrolls, to give a clearer picture in determining the
existence of an employer-employee relationship based on an analysis of the totality of economic circumstances of the worker.

Thus, the determination of the relationship between employer and employee depends upon the circumstances of the whole economic
activity,2 such as: (1) the extent to which the services performed are an integral part of the employers business; (2) the extent of the workers
investment in equipment and facilities; (3) the nature and degree of control exercised by the employer; (4) the workers opportunity for profit and loss;
(5) the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; (6) the permanency and
duration of the relationship between the worker and the employer; and (7) the degree of dependency of the worker upon the employer for his
continued employment in that line of business.3

The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment
in that line of business.4 In the United States, the touchstone of economic reality in analyzing possible employment relationships for purposes of the
Federal Labor Standards Act is dependency.5 By analogy, the benchmark of economic reality in analyzing possible employment relationships for
purposes of the Labor Code ought to be the economic dependence of the worker on his employer.

Two-tiered test

In Fransisco v. NLRC, G.R. No. 170087, August 31, 2006, the Supreme Court held:

However, in certain cases the control test is not sufficient to give a complete picture of the relationship between the parties, owing to the
complexity of such a relationship where several positions have been held by the worker. There are instances when, aside from the employers
power to control the employee with respect to the means and methods by which the work is to be accomplished, economic realities of the
employment relations help provide a comprehensive analysis of the true classification of the individual, whether as employee, independent
contractor, corporate officer or some other capacity.

The better approach would therefore be to adopt a two-tiered test involving: (1) the putative employers power to control the employee
with respect to the means and methods by which the work is to be accomplished; and (2) the underlying economic realities of the activity or
relationship.

This two-tiered test would provide us with a framework of analysis, which would take into consideration the totality of circumstances
surrounding the true nature of the relationship between the parties. This is especially appropriate in this case where there is no written agreement
or terms of reference to base the relationship on; and due to the complexity of the relationship based on the various positions and responsibilities
given to the worker over the period of the latters employment.

3. STATUS OF EMPLOYMENT

1
G.R. Nos. L-41182-3, April 15, 1988, 160 SCRA 171, 179-180, citing Visayan Stevedore Transportation Company v. Court of
Industrial Relations, 125 Phil. 817, 820 (1967).
2
Rutherford Food Corporation v. McComb, 331 U.S. 722, 727 (1947); 91 L.Ed. 1772, 1777 (1946).
3
See Brock v. Lauritzen, 624 F.Supp. 966 (E.D. Wisc. 1985); Real v. Driscoll Strawberry Associates, Inc., 603 F.2d 748 (9th Cir.
1979); Goldberg v. Whitaker House Cooperative, Inc., 366 U.S. 28, 81 S.Ct. 933, 6 L.Ed.2d 100 (1961); Bartels v. Birmingham, 332
U.S. 126, 67 S.Ct. 1547, 91 L.Ed. 1947 (1947).
4
Halferty v. Pulse Drug Company, 821 F.2d 261 (5th Cir. 1987).
5
Weisel v. Singapore Joint Venture, Inc., 602 F.2d. 1185 (5th Cir. 1979).

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Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause
or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights
and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time
his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21,
1989)

Art. 280. Regular and casual employment. The provisions of written agreement to the contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are
usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or
undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service
to be performed is seasonal in nature and the employment is for the duration of the season.

An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at
least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which
he is employed and his employment shall continue while such activity exists.

Art. 281. Probationary employment. Probationary employment shall not exceed six (6) months from the date the employee started working, unless
it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary
basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by
the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a
regular employee.
REGULAR
A regular employee enjoys security of tenure and the right to seIf-organization.
The following are considered regular employees:

1. Those who are engaged to perform activities which are usually necessary or desirable in the usual trade or business of the employer.

2. Those "probationary" employees who continue or are suffered to work after the probationary period.

3. Those "casual" employees who have rendered at least one (1) year of service, whether continuous or broken, shall be considered
regular with respect to me activity In which he Is employed and this employment shall continue while such activity exists.

4. Employees of a "labor-only" contractor.

CONTRACTUAL: Contractual employees only have limited right to security of tenure and self-organization.

1. PROJECT/FIXED PERIOD EMPLOYMENT, where the employment has been fixed for a specific project or undertaking the completion
or termination of which has been determined at the time of engagement.
2. SEASONAL EMPLOYMENT, where the work or service to be performed is seasonal in nature and the employment is for the duration
of the season. (Seasonal employees are regular but during the off-season, the employment is merely suspended; the seasonal employees
are merely temporarily laid-off)
REGULAR SEASONAL EMPLOYMENT

In Mercado vs. NLRC, Sept. 5,1991, the Supreme Court held that even if the seasonal workers had rendered more than one year
of service, they could not be considered as regular employees. Petitioners, being project employees, or, to use the correct term, seasonal
employees, their employment legally ends upon the completion of the project or the season. The termination of their employment cannot
and should not constitute an illegal dismissal.

However, in subsequent cases, the Supreme Court ruled otherwise. Seasonal employees may attain regularity in employment.

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Once they attained a regular status, they are called regular seasonal employees. Seasonal employees are regular but during the off-
season, the employment is merely suspended; the seasonal employees are merely temporarily laid-off (Abasolo vs. NLRC, G.R. No.
118475, Nov. 29, 2000).

In Benares vs. Pancho, April 29, 2005, the Supreme Court clarified and explained its seemingly conflicting rulings. In Mercado
case, the workers were engaged to do a particular phase of agricultural work, after which they would be free to render services to other
farm owners who need their services. In the Hacienda Fatima case (G.r. No. 149440, Jan. 28, 2003), the workers performed the same
tasks for petitioners every season for several years. They were considered regular employees for their respective tasks.

3. CASUAL EMPLOYMENT, where employment is neither regular, project or seasonal.


4. PROBATIONARY EMPLOYMENT, where the employee is on trial or probation during which the employer determines the employees
qualifications and fitness for regular employment. (the apprenticeship agreement may stipulate a period longer than 6 months)

4. JOB / LABOR CONTRACTING

4.1. PERMISSIBLE JOB CONTRACTING


4.1.1. The contractor carries on an independent business and undertakes the contract work on his own account under his own
responsibility according to his own manner and method, free from control and direction of his employer or principal in all matters
connected with the performance of the work except as to the results thereof.
4.1.2. The contractor has substantial capital or investment in the form of tools/equipment, machineries, work premises and other
materials, which are necessary in me conduct of business.

4.1 CONDITIONS FOR PERMISSIBLE JOB CONTRACTING

4.1.3. The contractor must be duly licensed by DOLE


4.1.4. There should be a written contract between the contractor and the principal that will assure the employees at least the minimum
labor standards and benefits provided by existing laws.

4.2 PROHIBITED ACTIVITIES

4.2.1. Labor-only contracting.

4.2.2. Contracting out of work or service performed by union members that interferes with, restrains or coerces employees in the
exercise of their right to self-organization
4.2.3. Contracting out of work that will either displace employees of the principal employer or reduce their work hours and/or take-home
pay.

4.2.4. Contracting out of work or service that is directory related to the business and operation of the employer during the existence of a
labor dispute involving his employees, regardless of whether the dispute directly involves work stoppages, except when
authorized by competent authority when justified by public Interest. -

4.2.5. Contracting out with a recruitment, placement or any other agency which is not duly licensed as contractor.

4.2.6. Contracting outof positions vacated by regular employee.

4.3 DISTINCTIONS BETWEEN JOB AND LABOR-ONLY CONTRACTING

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4.3.1 In Job Contracting, there is no employer-employee relationship between the principal and the employees of the contractor; while
in Labor-only Contracting, such relationship exists.

4.3.2 In Job Contracting, the principal Is considered only an "indirect'' employer under Article 107; of the Labor Code; while the principal is
considered the direct employer under Article 106 in Labor-only Contracting.

4.3.3 The principal in Job Contracting .is made jointly and severally liable only, for the payment of wages. Other claims are not included,
unlike in labor-only contracting.

4.3.4 In Job Contracting, the contractor provides specific services or undertakes a specific job while in Labor-only Contractor, what is
provided is only manpower or personnel to work for the principal.

5. KINDS OF EMPLOYEES

5.1 MANAGERIAL EMPLOYEES (ARTICLE 212[m]): primary duty consists of management of establishment or department therein;
customarily and regularity direct the work of two or more employees therein; have authority to hire and fire, or their suggestions as
to hiring, firing, promotion or change of employees status are given particular weight.

5.2 SUPERVISORY EMPLOYEES (ARTICLE 212[m]): 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.

5.3 MANAGERIAL STAFF: primary duty consists of the performance of work directly related to management policies of their employer;
customarily and regularly exercise discretion and independent judgment; regularly assist proprietor or managerial employee,
execute under general supervision work along specialize lines or technical lines requiring special training, experience or
knowledge, execute special assignments or tasks; do not devote more than 20% of their time to other activities not enumerated
above.

5.4 PIECE-RATE WORKERS: those paid a fixed amount for performing work irrespective of time consumed.

5.5 NON-AGRICULTURAL FIELD PERSONNEL: regularly perform their duties away from the principal or branch office or place of
business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

5.6 DOMESTIC SERVANTS/HOUSEHELPERS (ARTICLE 141): those rendering service in the employer's home which is usually
necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and
convenience of the members of the employer's household, including the services of family drivers.

LABOR RELATIONS

Coverage of the right to self-organization

Art. 243. Coverage and employees right to self-organization. All persons employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or educational institutions, whether operating for profit or not, shall have the right to self-organization
and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant
workers, self-employed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and
protection. (As amended by Batas Pambansa Bilang 70, May 1, 1980)

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Art. 244. Right of employees in the public service. Employees of government corporations established under the Corporation Code
shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right
to form associations for purposes not contrary to law. (As amended by Executive Order No. 111, December 24, 1986)

Art. 245. Ineligibility of managerial employees to join any labor organization; right of supervisory employees. Managerial
employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own. (As amended by Section 18,
Republic Act No. 6715, March 21, 1989)

Art. 246. Non-abridgment of right to self-organization. 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. Such right shall include the right to form, join, or assist
labor organizations for the purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities
for the same purpose for their mutual aid and protection, subject to the provisions of Article 264 of this Code. (As amended by Batas Pambansa
Bilang 70, May 1, 1980)

1. QUALIFIED TO FORM, ASSIST, JOIN UNIONS

1.1. RANK-AND-FILE employees of Commercial, industrial, agricultural enterprises and Religious, charitable, medical or educational
institutions whether profit or non-profit.

1.2. SUPERVISORY EMPLOYEES

1.3. SECURITY PERSONNEL/CONFIDENTIAL/TECHNICAL

1.4. GOVERNMENT EMPLOYEES except AFP and PNP personnel

1.5. EMPLOYEES OF GOCCs

1.6. ALIENS WITH EMPLOYMENT PERMITS, subject to reciprocity

2. DISQUALIFIED

2.1. MANAGERIAL EMPLOYEES are ineligible to joint, assist or form any labor organization. Under the DOCTRINE OF NECESSARY
IMPLICATION, members of the managerial staff are under the same prohibition.
2.2. SUPERVISORY EMPLOYEES cannot join the union of rank-and-file employees.
2.3. CONFIDENTIAL EMPLOYEES who have access to confidential data and information relating to labor relations matters are also
disqualified to join the union of rank-and-filers, although they may form their own union.

2.4. SUBVERSIVES

2.5. MEMBER-EMPLOYEES OF COOPERATIVES

2.6. EMPLOYEES EXCLUDED FROM BARGAINING UNIT

BUREAU OF LABOR RELATIONS

Art. 226. Bureau of Labor Relations. The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the
Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on all inter-
union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting labor-management relations in all workplaces,
whether agricultural or non-agricultural, except those arising from the implementation or interpretation of collective bargaining agreements which
shall be the subject of grievance procedure and/or voluntary arbitration.

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The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. (As
amended by Section 14, Republic Act No. 6715, March 21, 1989).

Art. 227. Compromise agreements. Any compromise settlement, including those involving labor standard laws, voluntarily agreed upon
by the parties with the assistance of the Bureau or the regional office of the Department of Labor, shall be final and binding upon the parties. The
National Labor Relations Commission or any court, shall not assume jurisdiction over issues involved therein except in case of non-compliance
thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion.

[Art. 228. Indorsement of cases to Labor Arbiters.

a. Except as provided in paragraph (b) of this Article, the Labor Arbiter shall entertain only cases endorsed to him for compulsory
arbitration by the Bureau or by the Regional Director with a written notice of such indorsement or non-indorsement. The indorsement or non-
indorsement of the Regional Director may be appealed to the Bureau within ten (10) working days from receipt of the notice.
b. The parties may, at any time, by mutual agreement, withdraw a case from the Conciliation Section and jointly submit it to a Labor
Arbiter, except deadlocks in collective bargaining.] (Repealed by Section 16, Batas Pambansa Bilang 130, August 21, 1981)

Art. 229. Issuance of subpoenas. The Bureau shall have the power to require the appearance of any person or the production of any
paper, document or matter relevant to a labor dispute under its jurisdiction, either at the request of any interested party or at its own initiative.

Art. 230. Appointment of bureau personnel. The Secretary of Labor and Employment may appoint, in addition to the present personnel
of the Bureau and the Industrial Relations Divisions, such number of examiners and other assistants as may be necessary to carry out the purpose
of the Code. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

Art. 231. Registry of unions and file of collective bargaining agreements. The Bureau shall keep a registry of legitimate labor
organizations. The Bureau shall also maintain a file of all collective bargaining agreements and other related agreements and records of settlement
of labor disputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and accessible to interested parties under
conditions prescribed by the Secretary of Labor and Employment, provided that no specific information submitted in confidence shall be disclosed
unless authorized by the Secretary, or when it is at issue in any judicial litigation, or when public interest or national security so requires.

Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit copies of the same directly to the
Bureau or the Regional Offices of the Department of Labor and Employment for registration, accompanied with verified proofs of its posting in two
conspicuous places in the place of work and ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall
act upon the application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The Regional
Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days from its submission.

The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a registration fee of not less than one
thousand pesos (P1,000.00) or in any other amount as may be deemed appropriate and necessary by the Secretary of Labor and Employment for
the effective and efficient administration of the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special
Voluntary Arbitration Fund.

The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions, orders and awards of the
Secretary of Labor and Employment, Regional Directors and the Commission. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

Art. 232. Prohibition on certification election. The Bureau shall not entertain any petition for certification election or any other action
which may disturb the administration of duly registered existing collective bargaining agreements affecting the parties except under Articles 253, 253-
A and 256 of this Code. (As amended by Section 15, Republic Act No. 6715, March 21, 1989)

Art. 233. Privileged communication. 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.

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RIGHT TO SELF-ORGANIZATION

LABOR ORGANIZATIONS

Art. 234. Requirements of registration. Any applicant labor organization, association or group of unions or workers shall acquire legal
personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of
registration based on the following requirements.

a. Fifty pesos (P50.00) registration fee;


b. The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings
and the list of the workers who participated in such meetings;
c. The names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it seeks to
operate; (As amended by Executive Order No. 111, December 24, 1986)
d. If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
e. Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the
members who participated in it. (As amended by Batas Pambansa Bilang 130, August 21, 1981)

Art. 235. Action on application. The Bureau shall act on all applications for registration within thirty (30) days from filing.

All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case may be,
and attested to by its president.

Art. 236. Denial of registration; appeal. The decision of the Labor Relations Division in the regional office denying registration may be
appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.

Art. 237. Additional requirements for federations or national unions. Subject to Article 238, if the applicant for registration is a
federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the following:

a. Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining agent in
the establishment or industry in which it operates, supporting the registration of such applicant federation or national union; and
b. The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company
involved.

[Art. 238. Conditions for registration of federations or national unions. No federation or national union shall be registered to engage in
any organization activity in more than one industry in any area or region, and no federation or national union shall be registered to engage in any
organizational activity in more than one industry all over the country.

The federation or national union which meets the requirements and conditions herein prescribed may organize and affiliate locals and
chapters without registering such locals or chapters with the Bureau.

Locals or chapters shall have the same rights and privileges as if they were registered in the Bureau, provided that such federation or
national union organizes such locals or chapters within its assigned organizational field of activity as may be prescribed by the Secretary of Labor.

The Bureau shall see to it that federations and national unions shall only organize locals and chapters within a specific industry or union.]
(Repealed by Executive Order No. 111, December 24, 1986)

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Art. 238. Cancellation of registration; appeal. The certificate of registration of any legitimate labor organization, whether national or
local, shall be cancelled by the Bureau 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.

[The Bureau upon approval of this Code shall immediately institute cancellation proceedings and take such other steps as may be
necessary to restructure all existing registered labor organizations in accordance with the objective envisioned above.] (Repealed by Executive
Order No. 111, December 24, 1986)

Art. 239. Grounds for cancellation of union registration. The following shall constitute grounds for cancellation of union registration:

a. 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;
b. Failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from adoption or ratification of the
constitution and by-laws or amendments thereto;
c. Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, 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
thirty (30) days from election;
d. Failure to submit the annual financial report to the Bureau within thirty (30) days after the closing of every fiscal year and
misrepresentation, false entries or fraud in the preparation of the financial report itself;
e. Acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging in any activity prohibited by law;
f. Entering into collective bargaining agreements which provide terms and conditions of employment below minimum standards
established by law;
g. Asking for or accepting attorneys fees or negotiation fees from employers;
h. Other than for mandatory activities under this Code, checking off special assessments or any other fees without duly signed individual
written authorizations of the members;
i. Failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau; and
j. Failure to comply with requirements under Articles 237 and 238.

Art. 240. Equity of the incumbent. All existing federations and national unions which meet the qualifications of a legitimate labor
organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and
the location of the affiliates.

LABOR ORGANIZATIONS: a union or association of employees which exists in whole or in part for the purpose of COLLECTIVE
BARGAINING and DEALING WITH EMPLOYERS concerning terms and conditions of employment. A LEGITIMATE LABOR ORGANIZATION is one
that is duly registered with the DOLE.

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS (ARTICLE 242)

1. Right to represent members for Collective Bargaining


2. Right to be certified as Collective Bargaining Agent
3. Right to be furnished Audited Financial Statements
4. Right to own property
5. Right to sue and be sued
6. Right to organize and operate cooperatives, housing, welfare, and other projects, etc.

UNION AFFILIATION:

A LOCAL UNION is any labor organization operating at the company/establishment level; a NATIONAL UNION/FEDERATION is any labor

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organization with at least TEN (10) AFFILIATES (local unions or local chapters) each of which must be a duly recognized collective bargaining agent.
Workers may form independent local unions or join national unions or federations either as affiliates or chapters. Affiliation is intended to
strengthen the collective bargaining leverage of local unions. The relationship between affiliate and federation/national union is one of PRINCIPAL-
AGENT.

Once affiliation is effected, the affiliate becomes subject to the rules and laws of the parent organization or mother union under whose
charter or authority the local union exists and functions. The local union, however, remains the basic unit of association, free to serve its own and the
common interest of all, subject to the restraints and limitations imposed by the constitution and by-laws of the parent organization, and free to
renounce the affiliation for mutual welfare.

The affiliate his the constitutionally guaranteed right to DISAFFILIATE from the national union/federation, generally during the SIXTY-(60)-
DAY FREEDOM PERIOD. However, under certain circumstances, the disaffiliation may be effected at any time provided the majority of the members
of the bargaining unit approve the same.

CANCELLATION OF REGISTRATION

1. Misrepresentation as to the Constitution and By-laws


2. Failure to submit proof of ratification of Constitution
3. Misrepresentation and fraud in election of officers
4. Acting as labor-only contractor
5. Entering into CBA violating Labor Standards
6. Asking or accepting Attorneys Fees
7. Violation of Check-Off provisions
8. Failure to submit list of members
9. Failure to comply with reporting and other requirements

RIGHTS AND CONDITIONS OF MEMBERSHIP

Art. 241. Rights and conditions of membership in a labor organization. The following are the rights and conditions of membership in a
labor organization:

a. No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary,
excessive or oppressive fine and forfeiture be imposed;
b. The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as
provided for in the constitution and by-laws of the organization;
c. The members shall directly elect their officers, including those of the national union or federation, to which they or their union is
affiliated, by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any position shall be imposed other
than membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of the newly-elected officers, together with the appointive officers or agents who are
entrusted with the handling of funds, within thirty (30) calendar days after the election of officers or from the occurrence of any change in
the list of officers of the labor organization; (As amended by Section 16, Republic Act No. 6715, March 21, 1989)
d. The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of
the organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of
directors of the organization may make the decision in behalf of the general membership;
e. No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive
organization or who is engaged directly or indirectly in any subversive activity;
f. No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for
appointment to any position in the union;
g. No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any
disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws;
h. Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making
the collection and entered into the record of the organization to be kept and maintained for the purpose;
i. The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and

10
by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the
purpose;
j. Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds
shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such
payment. Such record or receipt shall form part of the financial records of the organization.

Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial
report to the Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever
comes earlier: Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report
requirements under this Code: Provided, further, that failure of any labor organization to comply with the periodic financial reports required
by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the
cancellation of union registration of such labor organization; (As amended by Section 16, Republic Act No. 6715, March 21, 1989)

k. The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions
as specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by a majority of all the members at a
general membership meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be
subject to inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolutions
shall be a ground for impeachment or expulsion from the organization;
l. The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the
collection, management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to the
organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the
last day on which he rendered such account, and of all bonds, securities and other properties of the organization entrusted to his custody
or under his control. The rendering of such account shall be made:
1. At least once a year within thirty (30) days after the close of its fiscal year;
2. At such other times as may be required by a resolution of the majority of the members of the organization; and
3. Upon vacating his office.

The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.

m. The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer
or member thereof during office hours;
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 in a general membership meeting duly called for the purpose. 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 special
assessment or fees and the recipient of such assessment or fees. The record shall be attested to by the president.
o. Other than for mandatory activities under the Code, no special assessments, attorneys fees, negotiation fees or any other
extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the
employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction; and
p. It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws,
collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.

For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education
activities.

Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of
officers from office, whichever is appropriate. At least thirty percent (30%) of the members of a union or any member or members specially
concerned may report such violation to the Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the
appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction
of ordinary courts.

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FINANCIAL RIGHTS

1. No arbitrary or excessive fees, fines, etc,


2. No unauthorized special assessments

3. No check-off except for dues and mandatory activities

4. Right to be Issued receipts for payments 1.2*1.5. No unauthorized collection or disbursement of funds 1.2.1.6. Officers are only entitled
to salaries/expenses duly authorized under the Constitution or majority of members

RIGHT TO INFORMATION

1. Recording of income and expenditures

2. Accounting of all organizational funds

3. Inspection of Books of Accounts/Financial Records

4. Information on rights/duties of members under the Union Constitution and By-laws, CBA, labor laws and jurisprudence.

POLITICAL RIGHTS

1. Direct election of officers every FIVE (5) years

2. Participate by secret ballot in policy-making

3. Right against admission of subversives and engaging in subversive activity


4. Right against election of persons convicted of crimes involving moral turpitude to elective administrative posts.

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:

a. To act as the representative of its members for the purpose of collective bargaining;
b. To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective
bargaining;
c. To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance sheet and
the profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union has been duly
recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in the bargaining unit, or
within sixty (60) calendar days before the expiration of the existing collective bargaining agreement, or during the collective bargaining
negotiation;
d. To own property, real or personal, for the use and benefit of the labor organization and its members;
e. To sue and be sued in its registered name; and
f. To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and
other projects not contrary to law.

Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor
organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar organizations,
local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and other
assessments. The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. (As amended by
Section 17, Republic Act No. 6715, March 21, 1989)

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COLLECTIVE BARGAINING

COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

Art. 250. Procedure in collective bargaining. The following procedures shall be observed in collective bargaining:

a. When a party desires to negotiate an agreement, it shall serve a written notice upon the other party with a statement of its proposals.
The other party shall make a reply thereto not later than ten (10) calendar days from receipt of such notice;
b. Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later
than ten (10) calendar days from the date of request.
c. If the dispute is not settled, the Board shall intervene upon request of either or both parties or at its own initiative and immediately call
the parties to conciliation meetings. The Board shall have the power to issue subpoenas requiring the attendance of the parties to such
meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation meetings the Board may call;
d. During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early
settlement of the disputes; and
e. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator.
(As amended by Section 20, Republic Act No. 6715, March 21, 1989)

Art. 251. Duty to bargain collectively in the absence of collective bargaining agreements. In the absence of an agreement or other
voluntary arrangement providing for a more expeditious manner of collective bargaining, it shall be the duty of employer and the representatives of
the employees to bargain collectively in accordance with the provisions of this Code.

Art. 252. Meaning of duty to bargain collectively. The duty to bargain collectively means the performance of a mutual obligation to meet
and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement with 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 but such duty does not compel any party to agree to a proposal or to make any
concession.

Art. 253. Duty to bargain collectively when there exists a collective bargaining agreement. When there is a collective bargaining
agreement, the duty to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However,
either party can serve a written notice to terminate or modify the agreement at least sixty (60) days prior to its expiration date. It shall be the duty of
both parties to keep the status quo and to continue in full force and effect 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. Terms of a collective bargaining agreement. Any Collective Bargaining Agreement that the parties may enter into shall,
insofar as the representation aspect is concerned, be for a term of five (5) years. No petition questioning the majority status of the incumbent
bargaining agent shall be entertained and no certification election shall be conducted by the Department of Labor and Employment outside of the
sixty-day period immediately before the date of expiry of such five-year term of the Collective Bargaining Agreement. All other provisions of the
Collective Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. Any agreement on such other provisions of
the Collective Bargaining Agreement entered into within six (6) months from the date of expiry of the term of such other provisions as fixed in such
Collective Bargaining Agreement, shall retroact to the day immediately following such date. If any such agreement is entered into beyond six months,
the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the renegotiation of the Collective Bargaining Agreement, the
parties may exercise their rights under this Code. (As amended by Section 21, Republic Act No. 6715, March 21, 1989)

Art. 254. Injunction prohibited. No temporary or permanent injunction or restraining order in any case involving or growing out of labor

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disputes shall be issued by any court or other entity, except as otherwise provided in Articles 218 and 264 of this Code. (As amended by Batas
Pambansa Bilang 227, June 1, 1982)

Art. 255. Exclusive bargaining representation and workers participation in policy and decision-making. The labor organization
designated or selected by the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the
employees in such unit for the purpose of collective bargaining. However, an individual employee or group of employees shall have the right at any
time to present grievances to their employer.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the Secretary of
Labor and Employment may promulgate, to participate in policy and decision-making processes of the establishment where they are employed
insofar as said processes will directly affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management
councils: Provided, That the representatives of the workers in such labor-management councils shall be elected by at least the majority of all
employees in said establishment. (As amended by Section 22, Republic Act No. 6715, March 21, 1989)

Art. 256. Representation issue in organized establishments. In organized establishments, when a verified petition questioning the
majority status of the incumbent bargaining agent is filed before the Department of Labor and Employment within the sixty-day period before the
expiration of the collective bargaining agreement, the Med-Arbiter shall automatically order an election by secret ballot when the verified petition is
supported by the written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit must have cast their votes.
The labor union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining agent of all the workers in the unit. When
an election which provides for three or more choices results in no choice receiving a majority of the valid votes cast, a run-off election shall be
conducted between the labor unions receiving the two highest number of votes: Provided, that the total number of votes for all contending unions is
at least fifty percent (50%) of the number of votes cast.

At the expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent
where no petition for certification election is filed. (As amended by Section 23, Republic Act No. 6715, March 21, 1989)

Art. 257. Petitions in unorganized establishments. In any establishment where there is no certified bargaining agent, a certification
election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor organization. (As amended by Section
24, Republic Act No. 6715, March 21, 1989)

Art. 258. When an employer may file petition. When requested to bargain collectively, an employer may petition the Bureau for an
election. If there is no existing certified collective bargaining agreement in the unit, the Bureau shall, after hearing, order a certification election.

All certification cases shall be decided within twenty (20) working days.

The Bureau shall conduct a certification election within twenty (20) days in accordance with the rules and regulations prescribed by the
Secretary of Labor.

Art. 259. Appeal from certification election orders. Any party to an election may appeal the order or results of the election as
determined by the Med-Arbiter directly to the Secretary of Labor and Employment on the ground that the rules and regulations or parts thereof
established by the Secretary of Labor and Employment for the conduct of the election have been violated. Such appeal shall be decided within
fifteen (15) calendar days. (As amended by Section 25, Republic Act No. 6715, March 21, 1989)

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COLLECTIVE BARGAINING AGREEMENT

Collective Bargaining Agreement refers to the negotiated contract between a duly recognized or certified exclusive bargaining agent of
workers and the employer concerning wages, hours of work and all other terms and conditions of employment in the appropriate bargaining unit,
including mandatory provisions for grievances and arbitration machineries.

BARGAINING UNIT

A group of employees of a gjven employer comprised of all or less than of the entire body of employees, consistent with equity to the
employer, indicated to be best suited to serve the reciprocal rights and duties of the parties under the collective bargaining provisions of the law.
There can only be ONE EXCLUSIVE BARGAINING AGENT in a bargaining unit even if there are more than one union therein. The PRINCIPLES
OR FACTORS In determining the appropriate bargaining may be:

1. SUBSTANTIAL MUTUAL INTERESTS: similarity of employment status, duties and responsibilities, similar compensation scheme and
working conditions.

2. GLOBE DOCTRINE: will or desire of the employees to be joined together in one bargaining unit.
3. COLLECTIVE BARGAINING HISTORY: prior collective bargaining history or affinity of the employees.

4. EMPLOYMENT STATUS: category or kind of employment.

KINDS OF BARGAINING

1. Single-enterprise bargaining involves negotiation between one certified labor union and one employer;

2. Multi-employer bargaining involves negotiation between and among several certified labor unions and employers;

REQUISITES OF COLLECTIVE BARGAINING

1. Employer-employee relationship
2. Proof of majority status of the
3. Demand to Bargain Collectively

DETERMINATION OF MAJORITY STATUS

1. VOLUNTARY RECOGNITION: In UNORGANIZED ESTABLISHMENTS, when there is only one legitimate labor organization in
the bargaining unit.
2. CERTIFICATION, RUN-OFF, CONSENT ELECTION: In ORGANIZED ESTABLISHMENTS, when the majority status of the
incumbent bargaining agent is challenged; or In UNORGANIZED ESTABLISHMENTS, when a petition is filed by a union or the
employer.

CERTIFICATION ELECTION (ARTICLE 256 TO 259)

CONCEPT: Non-adversary fact-finding process/investigation to determine the will of the employees if they wish to have a collecting
bargaining agent/representative in the appropriate bargaining unit for the purpose of collective bargaining. All employees, whether probationary or
permanent, regular or otherwise may be allowed to participate, subject to the exclusion-inclusion proceedings. The employer is simply a bystander in

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certification election proceedings.

REQUISITES FOR PETITIONS

In ORGANIZED ESTABLISHMENTS: Verified petition questioning the majority status of the incumbent bargaining agent filed by at least
TWENTY-FIVE (25%) PER CENT of all the employees in the bargaining unit/during the FREEDOM PERIOD (SIXTY [60] DAYS prior to expiration of
term of CBA)). If no petition is filed during this period, the employer shall continue to recognize the majority status of the bargaining union.

In UNORGANIZED ESTABLISHMENTS: A certification election shall be conducted upon filing the petition by the union or the employer in
case there is a demand for collective bargaining unless there is voluntary recognition.

ELECTION BAN

1. CONTRACT BAR RULE: when there is still a valid and binding CBA, except during the Freedom Period.

2. CERTIFICATION YEAR RULE: within ONE (1) YEAR from the date of the issuance of the final certification election result.

3. DEADLOCK BAR RULE: where on-going CBA negotiations result in a deadlock that has been' submitted for conciliation or mediation or
has become the subject of a notice of strike or lockout.

RUN-OFF ELECTION: when there are three or more choices in the certification election (including NO UNION) and none gets the majority
vote, a run-off shall be held within five (5) days between the two (2) unions receiving the highest votes, provided that the total number of votes for all
the contending unions is at least FIFTY (50%) PERCENT of the total votes cast.

CONSENT ELECTION: By agreement between two or more contending unions within the bargaining unit to determine who has the
majority status even outside of the Freedom Period.

COLLECTIVE BARGAINING PROPER

CONCEPT: The duty to bargain collectively involves:

1. The performance of the mutual obligation TO MEET AND CONVENE promptly, expeditiously and in good faith.
2. To NEGOTIATE an agreement with respect wages, hour% of work and all other terms and conditions of employment, including
proposals for grievance machinery.
3. However, this duty does not compel any party to agree to a proposal or to make concessions.

MANDATORY SUBJECTS OF BARGAINING: wages, work hours/days, vacations/holidays, bonuses, retirement, seniority, layoffs/transfers,
workloads, operating/disciplinary rules and regulations, union security arrangements.

COMMON STIPULATIONS AND CLAUSES IN A CBA

1. Title;
2. Description of the parties;

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3. Preliminary statement of principles;
4. Description of bargaining unit;
5. Exclusionary clause;
6. Check off of union dues, agency fees and other assessments;
7. Statement of management prerogatives;
8. Union commitment;
9. Economic and other fringe benefits;
10. Grievance Machinery;
11. Voluntary Arbitration;
12. No-strike, No-lockout clause;
13. Family planning, health and safety, cooperative, recreation and sports;
14. Waiver and completeness of Agreement;
15. Duration and effectivity of agreement.

Collective Bargaining Process

1. Preliminary Process
2. Negotiation Process
3. Execution Process
4. Publication Process
5. Ratification Process
6. Registration Process
7. Administration Process
8. Interpretation and application process

SUBSTITUTIONARY DOCTRINE: employees cannot revoke the validity of the executed CBA by the simple expediency of changing their collective
bargaining agent. New bargaining agent must respect existing CBA although it may negotiate with the employer for the shortening of the term
thereof.

WILEY DOCTRINE: loss of personality by a legal/valid merger or consolidation of a corporation with an existing CBA with the union does not
automatically terminate all the rights of the covered employees.

ABSORPTION DOCTRINE: accretion doctrine applies when there is absorption and integration by one entity of one or more establishments having
the same kind and line of business and having their respective collective bargaining agreements with different labor union existing therein; the duty to
bargain which originally devolves upon the selling party is transferred to the buying entity.

AUTOMATIC RENEWAL CLAUSE

It shall be the duty of both parties to keep the status quo and to continue in full force and effect 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)

RETROACTIVITY OF CBA

Any agreement on such other provisions of the Collective Bargaining Agreement entered into within six (6) months from the date of expiry
of the term of such other provisions as fixed in such Collective Bargaining Agreement, shall retroact to the day immediately following such date. If
any such agreement is entered into beyond six months, the parties shall agree on the duration of retroactivity thereof. In case of a deadlock in the
renegotiation of the Collective Bargaining Agreement, the parties may exercise their rights under this Code. (Art. 253-A)

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The retroactivity provision under Art. 253-A applies only in cases where the CBA is voluntarily concluded by and between the parties and
not through arbitral awards. In Meralco vs. Quisumbing [G.R. No. 127598] August 1, 2000, the Supreme Court held that the arbitral award should
retroact to the first day after the six-month period following the expiration of the last day of the CBA.

SUSPENSION OF CBA

In the case of Rivera vs. Espiritu, G.R. No. 135547, January 23, 2002, the Supreme Court held as valid the agreement between PAL and
the PALEA to suspend the CBA for a period of ten (10) years subject to certain safeguards. The Supreme Court held, In the instant case, it was
PALEA, as the exclusive bargaining agent of PALs ground employees, that voluntarily entered into the CBA with PAL. It was als PALEA that
voluntarily opted for the 10-year suspension of the CBA. Either case was the unions exercise of its right to collective bargaining. The right to free
collective bargaining, after all, includes the right to suspend it. xxx xxx In sum, we are of the view that the PAL-PALEA agreement dated
September 27, 1998, is a valid exercise of the freedom to contract. Under the principle of inviolability of contracts guaranteed by the Constitution,
the contract must be upheld.

1.4. UNFAIR LABOR PRACTICE (ULP) (ARTICLE 247 TO 249)

1.4.1. CONCEPT: ULP is a violation of the right to self-organization and is inimical to the interest of both labor and management, i.e.,
collective bargaining dealing with each with freedom and mutual respect, disrupts industrial peace and hinder the promotion of a
healthy and stable labor-management relations. ULP is not only a violation of civil rights but is also a criminal offense against the
State, subject to prosecution and punishment. Prescriptive period for filing ULP with labor tribunals is ONE (1) YEAR from accrual of
cause of action (commission) for criminal prescriptions, THREE (3) YEARS from final judgment by labor tribunals that ULP was
committed.

1.4.2. ELEMENTS
1.4.2.1. Existence of an employer-employee relationship
1.4.2.2. Act complained of must be expressly mentioned and defined In the Labor Code as a ULP (Articles 248 and 249)

1.4.3. ULP COMITTED BY EMPLOYER (ARTICLE 248)

1.4.3.1. Interfere, restrain coerce right of employees to organize


1.4.3.2. Require person NOT to join union or WITHDRAW from one

1.4.3.3. Contract out services rendered by union members


1.4.3.4. Initiate, dominate, assist a union
1.4.3.5. Discrimination to encourage/discourage union membership
1.4.3.6. Dismiss employee for giving testimony
1.4.3.7. Violate duty to bargain collectively
1.4.3.8. Pay negotiation/attorney's fees as part of settlement
1.4.3.9. Flagrant violation with terms and conditions of CBA

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1.4.4. ULP COMMITTED BY UNION (ARTICLE 249)

1.4.4.1 Restrain and coerce employees to organize

1.4.4.2. Cause employer to discriminate

1.4.4.3. Violate duty to bargain collectively

1.4.4.4. Cause employee to pay for services not rendered

1.4.4.5. Ask for negotiation/attorneys fees as part of settlement

1.4.4.6. Flagrant violation of CBA

1.8.4. UNION SECURITY ARRANGEMENTS


1.8.4.1. CLOSED SHOP: only members OF THE BARGAINING AGENT can be hired and they must remain union members as a
condition of continued employment.

1.8.4.2. UNION SHOP: Once hired, a person must become a member of the bargaining agent and must remain so during the
period of the CBA for continued employment.

1.8.4.3. MODIFIED UNION SHOP: employees who are not members of the bargaining union upon execution of the CBA are not
required to join the union; only those hired after are required.
1.8.4.4. AGENCY SHOP: non-members are not required to join the bargaining union but they should pay an AGENCY FEE to
the union as a condition for continued employment.

1.8.4.5. MAINTENANCE OF MEMBERSHIP: requires members of the bargaining union to maintain their membership therein for
continued employment. Non-union members are not required to join.

1.8.4.6. PREFERENTIAL HIRING AGREEMENT: preference in hiring is given to members of the bargaining union who are
thereafter required to maintain their membership for continued employment.

1.8.5. TERM OF CBA: FIVE (5) YEARS; however, economic provisions shall be renegotiated not later than THREE (3) YEARS after
execution; if a new CBA is concluded within SIX (6) MONTHS from expiration, the effectivity of the CBA shall retroact to the day
following the expiry date; otherwise, the effectivity of the new CBA shall be subject to negotiation and mutual agreement.
1.8.6. FORMAL REQUIREMENTS: within THIRTY (30) DAYS from execution thereof, the parties shall submit copies of the CBA
directly to the Bureau of Labor Relations (BLR) or with the DOLE Regional Office with verified proof of Its POSTING In two
conspicuous and its RATIFICATION by majority of the workers in the bargaining unit.
1.8.7. SUBSTITUTIONARY DOCTRINE: employees cannot revoke the validity of the executed CBA by the simple expediency of
changing their collective bargaining agent. New bargaining agent must respect existing CBA although it may negotiate with the
employer for the shortening of the term thereof.

1.8.8. WILEY DOCTRINE: loss of personality by a legal/valid merger or consolidation of a corporation with an existing CBA with the
union does not automatically terminate all the rights of the covered employees.

1.9. GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION (ARTICLE 260)

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1.9.1. CONCEPT: The constitution promotes the preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce compliance therewith to foster industrial peace (Section 3, Article XII). The GRIEVANCE PROCEDURE/MACHINERY
refers to the internal rules of procedure established by the parties in their CBA intended to resolve all issues arising from the
implementation and interpretation of their CBA with VOLUNTARY ARBITRATION as the final step, It includes the mechanism for the
adjustment and resolution of grievances arising from the interpretation and/or implementation of the CBA and the enforcement of
company personnel policies.

1.9.2. VOLUNTARY ARBITRATION/ARBITRATOR: refers to the mode of settling labor-management disputes by which the parties
select a competent, trained and impartial ARBITRATOR duly accredited by the National Conciliation and Mediation Board (NCMB), to
decide the merits thereof.

1.9.3. JURISDICTION OF VOLUNTARY ARBITRATORS

1.9.3.1. ORIGINAL AND EXCLUSIVE: all unresolved grievances arising from interpretation or implementation of the CBA and
company personnel policies.
1.9.3.2. GENERAL: all disputes that may be referred by the parties including ULP and bargaining deadlocks.

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STRIKES/PICKETING, LOCKOUTS

1. CONCEPTS

1.1. A STRIKE is any temporary stoppage of work by the concerted action of the employees as a result of a labor dispute. It includes
slowdowns, mass leaves, sit-downs, attempts to damage or sabotage the employer's operations, equipment and facilities, and other similar
activities.

1.2. PICKETING is peaceably marching to and fro before an establishment to publicly make known the existence of a labor dispute usually by
the display of placards, banners and other propaganda materials and activities.

1.3. LOCKOUT means the temporary refusal of an employer to furnish work as a resuIt of a labor dispute.

1.4. INDUSTRIAL/LABOR DISPUTE includes any controversy or matter concerning terms and conditions of employment or the association or
representation of persons in negotiating the fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of
whether the disputants stand in the proximate relationship of employer and employee.

1.5. INTER-UNION DISPUTE is a dispute between two or more unions seeking to represent the employees in a bargaining unit.
1.6. INTRA-UNION DISPUTE is one involving the internal affairs of the union such as accounting of funds, disloyalty of members, etc.

1.7. "NO STRIKE, NO LOCKOUT CLAUSE": a standard provision in the CBA that prohibits resort to strike/lockout as a means to resolve
a controversy. The prohibition applies only to an economic strike and not to a ULP strike.
1.6. NOTICE OF STRIKE refers to the notification filed a duly registered labor union with the appropriate NCMB Regional Branch informing the
latter of the formers intention to go on strike because of deadlock in collective bargaining or the commission of ULP by the employer. A copy of
the notice must be duly served on the employer by personal service or by registered mail. However, if the notice is sent by Registered Mail, the
cooling-off period shall begin from the date of receipt by the employer of the notice.

1.9. COOLING-OFF PERIOD refers to period designed by the law to afford the parties the opportunity to amicably resolve this dispute with the
assistance of the NCMB. The period may either be THIRTY (30) DAYS in case of ECONOMIC STRIKE, or FIFTEEN (15) DAYS for a ULP.
STRIKE. The cooling-off period is dispensed with if the ground for the strike is UNION BUSTING or DISMISSAL OF UNION OFFICERS.

1.10. STRIKE VOTE/LOCKOUT VOTE refers to the approval of the decision to strike/lockout by a majority of the total union membership in the
bargaining unit or the Board of Directors of the employer corporation, concerned obtained by secret ballot.

1.11. STRIKE BAN is the period of SEVEN (7) DAYS after the report of the strike vote result to the NCMB/DOLE within which the strike cannot

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be staged in all kinds of strike. If the strike vote is held arid the result^ thereof is submitted during the cooling-off period, the 7-day ban shall be
reckoned from the expiration of the cooling-off period. The purpose of the strike ban is to enable the NCMB/DOLE the opportunity to verify
whether or not the projected strike was approved by the majority o the union members.

1.12. STRIKE AREA means the establishment, warehouse, depots, plants or office, including the sites or premises used as run-away shops of
the employer struck against as well as the immediate vicinity actually used by picketing-strikers in moving to and fro before all points of entrance
or exit from said establishments

1.13. IMPROVED/REDUCED OFFER BALLOTING: referendum by secret ballot on the improved offer of the employer or reduced offer by the
union conducted by the NCMB on or before the 30th day of the strike.

1.14. PREVENTIVE MEDIATION CASE is a potential labor dispute that is the subject of a formal or informal request for conciliation and
mediation and mediation assistance sought by either or both parties or upon the initiative of the NCMB to avoid the occurrence of an actual
labor dispute.

1.15. ASSUMPTION/CERTIFICATION ORDER; Under Article 263[g] of the Labor Code, when in the opinion of the Secretary of DOLE, the labor
dispute causes or will likely cause a strike or lockout in an industry indispensable to the national interest, he is empowered to do either of two
things:

1.15.1. Assume jurisdiction over the labor dispute and decide it himself;

1.15.2. Certify the labor dispute to the NLRC for compulsory/arbitration (CERTIFIED CASE)

1.16 RETURN-TO-WORK ORDER is the consequence of an Assumption/Certification Order where the striking workers are directed to
return to work, and the employer to accept them back, under the same terms and conditions prevailing before the dispute. If no strike has been
staged yet, the Impending strike or lockout is automatically enjoined. Defiance of the ASSUMPTION/CERTIFICATION/RETURN-TO- WORIK
ORDER will render the strike/lockout illegal.

2. REQUISITES OF A VALID STRIKE

2.1 Strike must be based on a valid and factual ground

2.1.1. Collective Bargaining Deadlock

2.1.2. Unfair Labor Practice (ULP)

2.1.3. Conduct of Strike Vote

2.1.4. Submlsslon of Strike Vote Report/Result

2.1.5. Observance of 15-Day or 30- Day Cooling-Off Period

2.1.6. Observance of 7-Day Strike Ban

3. ILLEGAL STRIKE

3.1. Failure to comply with requirements/requisites

3.2. Based oh non-strikeable issues/unlawful purpose

3.3. Issues have already been submitted for arbitration

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3.4. Commission of prohibited acts

3.5. Notice of Strike has already been converted to Preventive Mediation

3.6. Violation of "NO STRIKE, NO LOCKOUT clause of the CBA, except ULP

3.7. Defiance of Assumption/Certiflcation/Injunctlon Order

4. PROHIBITED ACTS AND PRACTICES

4.1. Declaring a strike/lockout on grounds involving inter-union or Intra-union disputes, or on issues brought to voluntary or compulsory
arbitration.

4.2. Declaring a strike/lockout without first having bargained collectively or without first having filed the required notice of strike or without the
strike or lockout vote.

4.3. Strike in defiance of Return-to-Work Order or after assumption of jurisdiction or certification of dispute to NLRC.

4.4. Obstructing, impeding or interfering with by force, violence, coercion, threats or intimidation, or abetting any such ^
obstruction or interference, any peaceful picketing or exercise of the right to self-organization or collective bargaining.

4.5. Employing a strikebreaker or being employed as such.

4.6. No public official or employee including officers and personnel of the AFP and PNP shall bring in. Introduce or escort in any manner any
individual who seeks to replace strikers in entering or leaving the strike area; or, to work In place of the strikers.

4.7. Stationary pickets or permanent blockades

4.8. Violence, coercion and Intimidation employed by a striker/picketer

4.9. Obstruction of free jngress or egress from the employers premises.

4.10. Obstruction of public thoroughfares.

5. EFFECTS OF PARTICIPATION IN AN ILLEGAL STRIKE; any union officer who knowingly participates in an illegal strike and any worker who
knowingly participates in the commission of illegal acts during the strike may be declared to have lost their employment status. However in case of
DEFIANCE of a (retum-to-work order, it is immaterial whether the violator is a union officer or an ordinary member.

6. SUSPENSION OF EFFECTS OF TERMINATION: Under Article 277 [b] of the Labor Code, the DOLE Secretary may suspend the effects of
termination of employees pending the resolution of dispute in the event of a prima facie finding by the appropriate official before whom such is
dispute is pending, that the termination may cause a serious labor dispute or Is In the Implementation of a mass lay-off.

7. STRIKES IN HOSPITALS, CLINICS ETC.

7.1. It shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other
health personnel whose movement shall and services shall be unhampered and unrestricted, as are necessary to insure the proper and
adequate protection of the life and health of the patients, most especially emergency cases, during the strike or lockout.

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7.2. The DOLE Secretary shall either assume jurisdiction or certify the labor dispute to the NLRC within TWENTY-FOUR (24) HOURS from
knowledge of the occurrence of such strike or lockout.

8. CONCERTED ACTIVITIES AND STRIKES BY GOVERNMENT EMPLOYEES

8.1. Government employees are not allowed declare any strike for the purpose of changing the terms and conditions of employment.
Negotiation is not also allowed on those matters that require appropriation of funds, those fixed by law, and those involving the exercise of
management prerogatives.
8.2. Employees of GOCCs organized under the Corporation Code shall have the right to organize and bargain collectively with their respective
employers. All other employees in the Civil Service shall have the right to form associations for purpose not contrary to law. .

1. SECURITY OF TENURE (ARTICLE 279V

1.1. MANAGEMENT PREROGATIVES: These are the collective rights of the employer In the employment relationship.

1.1.1. REGULATE EMPLOYMENT: The employer is free to regulate all aspects of employment (prescribe working methods, time,
place, manner and other aspects of work) according to his own judgment and discretion, the hiring, firing, transfer, demotion and promotion
is traditionally a management prerogative subject only to the limitations established by: LAW, COLLECTIVE BARGAINING AGREEMENT,
and GENERAL PRINCIPLES OF FAIR PLAY AND JUSTICE.

1.1.2. DISCIPLINE / DISMISSAL OF EMPLOYEES: Discipline of employees is a basic management right and prerogative. The
employer cannot be compelled to maintain in his employ undeserving or undesirable employees. The employer may demand observance
of reasonable company rules and regulations and provide appropriate penalties for violation thereof.

1.2. REQUIREMENTS FOR VALID DISMISSAL: A regular employer may not be dismissed except for just or authorized cause and after due
process.

1.3. JUST CAUSES (ARTICLE 282)

1.3.1. SERIOUS MISCONDUCT

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1.3.1.1. Intentional violation of an established or defined rule of action

1.3.1.2. grave and aggravated in character

1.3.1.3. work-connected

1.3.2. WILLFUL DISOBEDIENCE

1.3.2.1. willful or intentional misconduct characterized by a wrongful or perverse attitude


1.3.2.2. order violated is iteasonabie and lawful and made known to the employee

1.3.2.3. order must pertain or relate to duties of the employee

1.3.3. GROSS AND HABITUAL NEGLECT OF DUTIES

1.3.3.1. NEGLIGENCE MUST BE BOTH "GROSS" (utter disregard or want of slight care of the consequences without
exerting effort to avoid them) and HABITUAL" (implies repetitive acts) However habituality may be disregarded where there
is grave or actual loss or prejudice suffered by the employer.

1.3.3.2. EXCESSIVE ABSENCES or ABANDONMENT is a genre of neglect of duties.

1.3.3.3. FAILURE TO ATTAIN WORK/PRODUCTION QUOTAS may also constitute gross and habitual neglect of duties.

1.3.4. FRAUD OR WILLFUL BREACH OF TRUST/CONFIDENCE

1.3.4.1. FRAUD is malicious non-performance of one's obligation. It connotes bad faith and an intentional act to cause damage or
prejudice to the employer thereby breaching the employer's trust and confidence in the employee.
1.3.4.2. The basic premise for this ground is that the employee occupies a position imbued with trust and confidence as when the
employee handles cash or property of the employer. Ordinarily, a rank-and-file employee's position is not reposed with trust and
confidence similar to a supervisor or managerial employee. However, it is the nature of the employee's work and the scope or special
character of his duties and not his designation that determines whether or not the position is imbued with trust and confidence.
1.3.4.3. To be a valid ground for dismissal, the loss of trust and confidence should not be simulated; it should not be used as a
subterfuge for causes which are improper. Illegal or unjustified; it should not be arbitrarily asserted in the face of overwhelming
evidence to the contrary; and, the loss must be genuine, not a mere afterthought to justify earlier actions taken in bad faith.
1.3.4.4. Proof beyond reasonable doubt Is not required to Justify dismissals for loss of trust and confidence. B: is sufficient that there
Is some basis or reasonable ground to believe If not entertain the moral conviction that the employee concerned is responsible for
misconduct and his participation therein renders him unworthy of the trust and confidence demanded by his position.

1.3.5. COMMISSION OF CRIME

1.3.5.1. To justify dismissal, the crime or felony must have been committed against the employer, an immediate member of his
family, or the employer's duly authorized representative.

1.3.5.2. Criminal conviction is not necessary to provide just cause for dismissal.

1.3.6. ANALOGOUS CAUSES: These are normally causes that have similar connotations as the specific causes mentioned above.
i.e. sexual harassment; immorality, etc. ' '

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1.4. AUTHORIZED CAUSES (ARTICLE 283, 284. 287)
.

1.4.1. INSTALLATION OF LABOR-SAVING DEVICES

1.4.1.1. It Is the employer's prerogative to use the most efficient equipment and technology to remain competitive, streamline
operations or adopt new methods and methodology to remain competitive or maximize profits.
1.4.1.2. Business losses or reverses, whether actual or imminent, are not necessary to justify termination of employment due to
installation of labor-saving devices.

1.4.2. REDUNDANCY
1.4.2.1. Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual
requirements of the enterprises. The stress is on the POSITION and not on the PERSON OCCUPYING" the position. The
characterization of the service / position of the employee as redundant is an exercise of business judgment by the employer over
which labor tribunals must generally recognized and uphold.

1.4.2.2. Redundancy does not require the existence or proof of business losses. It may be availed of by the employer as a cost-
cutting measure and to streamline operations.

1.4.3. RETRENCHMENT

1.4.3.1. Retrenchment or lay-off is reduction of personnel in response to adverse economic losses. Retrenchment is the only
authorized cause requiring proof of actual or imminent losses for dismissal.

1.4.3.2. TO PREVENT LOSSES" means that retrenchment is resorted to before the anticipated losses are actually sustained or
realized. Not every asserted possibility of loss is sufficient legal warrant for the reduction of personnel. AUDITED FINANCIAL
STATEMENTS must properly establish the actual or imminent losses.

1.4.3.3. The standards for valid retrenchment are: the losses should be substantial and not merely de minimis in extent; the
substantial loss apprehended must be reasonably imminent, with a certain degree of urgency to reduce personnel; retrenchment is
reasonably necessary and likely to prevent the expected losses and the reduction of personnel must be resorted to onty after the
employer has taken prior or parallel measures to forestall losses; and proof of actual or imminent losses.

1.4.4. CLOSURE OR CESSATION OF OPERATIONS


1.4.4.1. The employer may close down or cease his business operations even if he is not suffering from financial losses or reverses.
This move is purely a business judgment because no one can be compelled to do something against his will.

1.4.4.2. The prerogative to close down or cease operations extends to closing or abolishing a department or section of the employer's
establishment or operations.

1.4.5. DISEASE: The conditions for dismissal under this provision are:

1.4.5.1. The employee is suffering from a disease that makes his continued employment either prohibited by law or prejudicial to his
health or to the health of his co-workers.

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1.4.5.2. CERTIFICATION by a competent PUBLIC HEALTH AUTHORITY that the disease is of such nature or at such stage that it
cannot be cured within a period of SIX (6) MONTHS even with prior medical treatment.

1.4.5.3. Payment of SEPARATION 'PAY In the amount equivalent to one-half (1/2) month salary for every year of service

1.4.6. RETIREMENT (RA 7641)

1.4.6.1. The Private Retirement Law applies to all employees in the private sector regardless of their position, designation or status
and irrespective of the method by which their wages are paid except employees of retail, service and agricultural establishments or
operations employing not more than TEN (10) employees.

1.4.6.2. The MINIMUM SERVICE REQUIREMENT is at least FIVE YEARS including authorized absences and vacations, regular
holidays and mandatory fulfillment of a military or civic duty.

1.4.6.3. OPTIONAL RETIREMENT is at SIXTY (60) YEARS of age. COMPULSORY RETIREMENT AGE is SIXTY-FIVE (65) YEARS.

1.4.6.4. The components of ONE-HALF MONTH SALARY are;

1.4.6.4.1. FIFTEEN (15) DAYS pay;

1.4.6.4.2. Cash Equivalent of FIVE (5) DAYS Service Incentive Leave

1.4.6.4.3. ONE-TWELFTH (1/12) of the 13th Month Pay


1.4.6.4.4. All other benefits under the employment contract or voluntary employer policy/practice.

1.5. SUSPENSION OFOPERATIONS (ARTICLE 286)


1.5.1. BONA FIDE suspension of operations (partial or full) or the "temporary lay-off" of employees for a period not exceeding SIX (6)
MONTHS. The suspension is bona fide if not resorted to for the purpose of defeating the rights of the employees under the law, i.e. union-
busting. The suspension may be LESS but never MORE than six months.

1.5.2. The principle of "no work, no pay" applies during the suspension. However, at the end of the six-month period, the employer
must either re-open and recall the employees or pay them the appropriate separation pay for the "constructive dismissal". ,
1.5.3. In the event of stoppage or suspension of operations of the employer because of the latter's fault, the employer shall be liable, for
the payment of the wages and benefits of the employees during the period.

1.6. DUE PROCESS

1.6.1. DISMISSAL FOR JUST CAUSE

1.6.1.1. TWO-NOTICE RULE (charges and grounds for dismissal)

1.6:1.2. ADMINISTRATIVE HEARING / INVESTIGATION

1.6.2. DISMISSAL FOR AUTHORIZED CAUSES

1.6.2.1. AT LEAST THIRTY (30) DAYS WRITTEN NOTICE TO BOTH THE DOLE AND THE AFFECTED EMPLOYEES

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1.7. PREVENTIVE SUSPENSION

1.7.1. The employer may place the employee under preventive suspension for a period not exceeding THIRTY (30) DAYS pending
resolution of the administrative charges against him if the continued presence of the employee In the company premises poses a serious
and imminent threat to the life or property of the employer or his co-employee.
1.7.2. Preventive Suspension is NOT a penalty but a preliminary step in an administrative investigation. Subjecting an employee to
preventive suspension does not by itself signify that the employer has adjudged the employee guilty of the charges against him.

1.7.3. As a rule, the employee under preventive suspension is not entitled to wages under the principle of "no work, no pay" unless there is
a company policy/practice or CBA provision mandating payment of his wages.

1.8. CONSTRUCTIVE DISMSSAL / RESIGNATION

1.8.1. "FORCED RESIGNATION" or the act of "quitting" because continued employment is rendered impossible, unreasonable or
unlikely as in the case of demotion in rank or diminution in pay or privileges and benefits, or illegal/invalid transfers/reassignments. A
"VOLUNTARY RESIGNATION" is not constructive dismissal.

1.8.2. "FLOATING/RESERVE STATUS" is the temporary "off-detail' of security guards pending posting or reassignment not to exceed
SIX (6) MONTHS. Thereafter, the employee is considered constructively dismissed if he is not given a new assignment or posting.

1.8.3. Bona fide suspension of operations under Article 286 exceeding six (6) months results in constructive dismissal.

1.9. RELIEFS (ARTICLE 279)

1.9.1. REINSTATEMENT

1.9.1.1. An employee who is unjustly dismissed shall be entitled bo reinstatement without loss of seniority rights and other privileges.
Reinstatement is the restoration of the employee to his employment status prior to dismissal.

1.9.1.2. "REINSTATEMENT PENDING APPEAL": In the event of an order of reinstatement by the Labor Arbiter after a finding of
illegal dismissal, the employer, even during the pendency of an appeal, shall reinstate the employee to his work under the same terms
and conditions prevailing prior to his dismissal (ACTUAL REINSTATEMENT); or reinstate him in the payroll without requiring the
employee to report: for work (PAYROLL REINSTATEMENT). The OPTION to reinstate either actually or in the payroll belongs to the
employer. Upon receipt of the order to reinstate and without need for the issuance of a writ of execution, the employer is obliged to
officially inform the Labor Arbiter and the employee the option chosen.

1.9.2. BACKWAGES

1.9.2.1. The illegally dismissed employee is entitled to his FULL BACKWAGES, inclusive of allowances and to his other benefits or
their monetary equivalent from the time his compensation was withheld from him until his actual reinstatement.

1.9.2.2. The SALARY RATE prevailing at the time of dismissal shall be the basis for the computation of backwages. In case of appeal,
the employer is required to put an APPEAL BOND equivalent to the monetary judgment to answer for the award for backwages, other
money claims, except damages and attorney's fees.

1.9.3. SEPARATION PAY

1.9.3.1. Separation Pay may be ordered IN LIEU OF REINSTATEMENT at the rate of ONE-MONTH PAY for every year of service

28
using the salary prevailing at the time the reinstatement is ordered, when such reinstatement is no longer feasible for certain reasons,
/.e. strained relations, position no longer exists, length of time etc.

1.9.3.2. In termination of employment for authorized causes, the amount of separation is ONE MONTH PAY or at least ONE (1)
MONTH PAY for every year of service in INSTALLATION OF LABOR SAVING DEVICES or REDUNDANCY; ONE MONTH PAY or at
least ONE-HALF MONTH (1/2) PAY for every year of service In RETRENCHMENT TO PREVENT LOSSES and CLOSURE AND OR
CESSATION OF OPERATIONS.

1.9.3.3. The employer is not obliged to pay separation pay in case of retrenchment or closure or cessation of operations due to
losses.

1.9.4. DAMAGES: The legal basis for damages as a consequence of illegal dismissal is the CIVIL CODE not the Labor Code. Damages
may be awarded in cases of dismissals attended by malice or bad faith, or when the acts of the employer are oppressive to labor.

1.9.5. FINANCIAL ASSISTANCE; This is an equitable award given to an employee who was valid I y dismissed for cause out of
compassion taking into account the employee's length of service, gravity of the offense and other equitable considerations. However, the
award is improper if the employee was dismissed for serious misconduct, dishonesty, fraud or willful breach of trust and confidence.

1.10. LIABILITY OF OFFICERS / DIRECTORS: As general rule, officers and directors of a company are not answerable in their personal
capacity for backwages and other related monetary claims unless they acted in bad faith in effecting the employees dismissal or if the
corporation has been dissolved.

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JURISDICTION, RELIEFS, REMEDIES

1. NATIONAL LABOR RELATIONS COMMISSION (NLRC)

1.1. LABOR ARBITER

1.1.1. Unfair Labor Practice (ULP)

1.1.2. Termination Disputes

1.1.3. Legality of Strikes under Article 264

1.1.4. Money claims arising from employer-employee relationship domestic help / house helpers:

1.1.4.1. Small claims less than P 5,000, accompanied by a claim for reinstatement;

l.1.4.2. Claims over P 5,000.00, whether or not accompanied with a claim for reinstatement;

1.1.4.3. Claims for damages;

1.2. Commission Proper

1.2.1. Appellate Jurisdiction

1.2.1.1. Decisions of the Labor Arbiters: Grounds:

1.2.1.1.1. prima facie evidence of abuse of discretion on the part of the Labor Arbiter
1.2.1.1.2. decision was secured through fraud/coercion including graft & corruption
1.2.1.1.3. decision was made purely on questions of law
1.2.1.1.4. serious errors in the findings of facts are raised which would cause grave or irreparable damage/injury to the
appellant

1.2.1.2. Decisions of the Regional Director in small claims under Artide 129 of the Labor Code 1.2.2. Injunction in Strikes (Article
218[e]): Issue TRO or Injunction to restrain the commission of prohibited acts under Article 264 of th4e Labor Code during strikes,
lock-outs and other concerted activities

1.2.3. Certified Cases: Resolve all matters involved In the controversy or dispute certified to the NLRC by the DOLE Secretary pursuant to
Article 263[g] of the Labor Code.

1.2.4. Promulgate Internal Rules and Regulations and such other rules and regulations as may be necessary to carry out the purposes of
the Labor Code.

2. REGIONAL OFFICE/DIRECTOR OF DOLE

2.1. Visitorial / Enforcement Power (Article t28)

2.1.1. Conduct Routine/Complaint Inspection

2.1.2. Issue Compliance Orders for L^bor Standards Violation

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2.1.3. Enforce Occupational Health and Safety Standards

2.2. Small Claims (Article 129); Power to resolve by summary proceedings small claims not exceeding P 5,000.00 arising from employer-
employee relationship/ including domestics/househelpers, when the worker/employee no longer prays for reinstatement.

2.3. Registration/Cancellation Proceedings

2.4. Med-Arbiter

2.4.1. Certification Elections


2.4.2. Inter-union/Intra-union Disputes

3. NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)

3.1. Notice of Strike

3.2. Preventive Mediation

4. BUREAU OF LABOR RELATIONS (BLR)

4.1. Registration/Cancellation Proceedings filed directly with It. In this case, the BLR's decision is appealable to the DOLE Secretary.
4.2. Appellate Jurisdiction over decisions of the DOLE Regional Office in registration/cancellation proceedings. The decision of the BLR in the
exercise of its appellate jurisdiction is no longer appealable to the DOLE Secretary, but to the Court of Appeals by Certiorari proceedings.

5. PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION (POEA)

5.1. Suspension/Cancellation of License


5.2. Civil aspect of Illegal Recruitment; the criminal aspect is prosecuted before the regular courts.

6. VOLUNTARY ARBITRATION

6.1. Grievance Machinery

6.2. Voluntary Arbitrator

7. EMPLOYEES COMPENSATION PROGRAM

7.1. STREET PERIL PRINCIPLE: Also known as the "going and coming rule"; injuries suffered by an employee on his way to work or going
home are generally not compensable under workmen's compensation, in the absence of special circumstances, subject to the following
exceptions:

7.1.1. Direct Premises Rule: Injuries are sustained while still within the work premises;
7.1.2. Proximity Rule: Injuries are sustained when the employee is about to enter or leave the work premises through the exclusive or
usual means of Ingress/egress;

7.1.3. Special Errand Rule: Injuries sustained while the employee is on special errand;

31
7.1.4. Extra-Premises Rule: Injuries are sustained on board the means of transportation supplied by the employer as an incident to
employment;

7.2. BUNKHOUSE PRINCIPLE: When the employee is required to stay in the premises or quarters supplied by the employer, injuries sustained
by the employee therein are compensable regardless of the time the injuries were sustained.

7.3. WORK-CONNECTED PRINCIPLE: Injuries sustained by an innocent or non-culpable employee in course of an assault by a co-employee
or a third, person are compensable when there is reasonable connection between the injury and a cause set in motion by the nature of
employment/ or some other condition, obligation or incident therein and not by some other agency.

7.4. CONSEQUENTIAL INJURIES RULE; The natural/logical injuries arising from a previous compensable injury are likewise compensable.

7.5. PERSONAL DOCTRINE; Injuries sustained within the work premises during lunch/meal break is compensable as having arisen in the
course of employment even if technically, the interval is outside regular work hours because the employee is not entitled to wages at this time
and he is not under the control of the employer as he can use said period of time at his pleasure.

7.6. INCREASED RISK THEORY; a disease is compensable if it is work-connecte'd and the working conditions to which the employee is
exposed increase the risk of contracting the same.

7.7. NOTORIOUS NEGLIGENCE RULE: Injuries/death sustained by the employee due to the employee's deliberate act of disregarding his
own personal safety are not compensable.

8. MISCELLANEOUS CONCERNS

8.1. TERMINATION DISPUTES remain under the original and exclusive jurisdiction of the Labor Arbiter. Termination disputes need not go
through the Grievance Machinery or Voluntary Arbitration unless so desired by the parties.

8.2. PRESCRIPTIVE PERIODS:

8.2.1. Illegal dismissal: four (4) years


8.2.2. Money Claims: three (3) years
8.2.3. Unfair Labor Practice: (One (1) year
8.2.4. Formal Protest in Certification Elections Five (5) days from close of election proceedings, only on grounds raised during the
balloting.
8.2.5. Election Protest (Union Officers): five (5) days from dose of election proceedings
8.3. TECHNICAL RULES OF EVIDENCE/PROCEDURE are generally not binding in labor law determinations. The underlying principle is the
ascertainment of truth behind the controversy. Summary proceedings are desired. For good cause shown, evidence may be presented at any
stage of the proceeding, even on appeal/MR in the interest of justice.

8.4. SUBMISSION OF POSITION PAPERS is generally sufficient for. the requirement of due process. Full-blown/adversarial proceedings are
not essential for the resolution of the controversy before labor tribunals.

8.5. EXHAUSTION OF ADMINISTRATIVE REMEDIES: Appeal/Review of decisions of the DOLE Secretary, NLRC, BLR, VA is generally to
the Court of Appeals by Certiorari proceedings under Rule 65. It is a condition precedent that the appropriate MOTION FOR
RECONSIDERATION is first filed before judicial resort. The decision of the Court of Appeals may be raised to the Supreme. Court on Appeal by
Certiorari under Rule 45.
8.6. APPEAL BOND: Normally, an Appeal Bond equivalent to the amount of the monetary judgment is required for appeals to the next level of
administrative determination/adjudication. In the NLRC, it is required that there shall be a certification from the surety, the appellant and counsel
that the Appeal Bond is genuine and shall remain valid and subsisting until the final determination/resolution of the case.

32