Bar 2016

Pre-week Guidelines

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LABOR LAW

Prof. Benedict Guirey Kato

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I
DEFINITIONS

Field Personnel
Application: Ejusdem Generis (taxi driver, butcher)
Labor Dispute
Application: Reference to Labor Law Rule (Halaguena Case)
Employer
Application: Carag v. NLRC, Sec. 31, Corporation Code (bad faith; remiss)
Employee
Application: Labor Relations Rights (DO 40-03: forum of appropriate jurisdiction)
Wage
Application: Talent fee; Homework pay; Double Indemnity Law
Wage Distortion
Application: Wage distortion adjustment; preempted wage distortion
Night Worker
Application: Insubordination; nightshifter
Red Circle Position
Application: Redundancy
Preventive Retrenchment
Application: Expected Losses
Lucrum Cessans
Application: Computation
Secondment
Application: Theory of Secondment (Intel v. NLRC)
Piece-rater
Application: Sec. 8(b), Rule IV, Bk III, ORILC; holiday pay
Self-descriptive Position
Application: Failure to Qualify & Nominal Damages
Confidential Employee
Application: Right to vote in a CE
Double Jeopardy
Application: Illegal recruitment & SSS
Forum Non-Conveniens
Application: Exercise of jurisdiction
Equity Jurisdiction
Application: Error of Judgment
Judicial Courtesy
Application: Enforcement of judgments
Novation
Application: Employer-Employee Relationship; Villarama case
Workplace Democracy
Application: Right to participate; 4 pillars of labor relations (Prof. Azucena)
Non-compete Clause
Application:
Confidentiality Clause, Non-solicitation Clause, Non-poaching
Clause
Contract of Adhesion
Application: Dumpit-Murillo Case

II
DISTINCTIONS
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Statutory Due Process v. Constitutional Due Process (effect of violation)

Collective Bargaining v. Collective Negotiation (EBR, ULP, jurisdictional
preconditions)
Conciliation v. Mediation v. Arbitration (ADR)
Simple Recruitment v. Economic Sabotage (Pp v. Navarra)
Economic Life v. Political Life (BPI-FEBTC merger)
Holdover Doctrine v. Automatic Renewal Clause
Retrenchment v. Redundancy
Abandonment v. Constructive Dismissal
Cognate Offenses Rule v. Totality of Infractions Rule (application)
Visitorial Power v. Adjudicatory Power
POEA-SEC v. ECA (work-connection)
Compulsory SSS Coverage v. Voluntary SSS Coverage (benefits)
Backwages v. Reinstatement Wages (refusal to reinstate, corporate
rehabilitation, appeal)
License v. Authority
Overseas Recruitment v. Local Recruitment (D.O. 141-14)
Participation v. Codetermination (2007 Bar)
Learner v. Apprentice (PONDACA)
Closed Shop Agreement v. Union Shop Agreement (arbitral award)
In the Red v. In the Black (Linton v. Hellera)
Organized Establishment v. Unorganized Establishment (uses)
Independent Contractor v. Job Contractor (qualifiers)
Wage v. Talent Fee (Sonza, Begino, Espiritu)
Wage v. Price (types of homework)
Overtime v. Overload (13th month pay)
Regular Holiday v. Special Day (no work with pay v. no work no pay)
Nigh Shift v. Night Work (RA 10151, D.O. 119-12)
Solo Parent v. Single Parent (rights)
SIL v. Other Leaves (SIL of Kasambahay, Parental Leave, VAWC Leave, Magna
Carta for Women)
Retirement Pay v. Separation Pay (CBA)
Project Employee v. Fixed-term Employee
Fixed-term Employee v. Probationary Employee
Independent Registration v. Chartering (LLO, CE, 25% rule)
Blue Sky Bargaining v. Surface Bargaining
Strike v. Lockout (procedure)
Just Cause (Art. 282) v. Just Cause (Art. 285) (due process, separation pay)
Except to Quit v. Except to Continue (Complete Severance Test)
Sickness Benefits (SSS) v. Sickness Allowance (POEA-SEC)
Conferment v. Acquisition (Jurisdiction)
Principle of Non-Diminution v. Principle of Grants (Waterfront case)
Contributory v. Non-contributory retirement plan (Art. 1378, NCC)
Lateral Transfer v. Scalar Transfer (free choice of employment)
Rule 65 (Rules of Court) v. Rule XII (NLRC Rules of Procedure)
Labor Standards Law v. Labor Relations Law
III
ENUMERATIONS

4 Pillars of Labor Relations

New Labor Principles (Sec. 3, Art. XIII, Constitution)
Salient Features of Protection to Labor Provision (1998 Bar)
Acts of Recruitment

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Prohibited Acts
Ineffective IR Defenses
The Taok List
Work Connection (Risk Factors)
Sec. 32-A Diseases (POEA-SEC)
Annex A Diseases (ECA)
Valid OFW Waiver
Promissory Estoppel
Just Causes
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Wilful Disobedience
b)
Serious Misconduct
c)
Loss of Trust
d)
Analogous Causes (Art. 282 v. Art. 285)
Authorized Causes
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Redundancy (Procedural Requisites)
b)
Retrenchment (Guidelines)
Requisites for Compensability of Disability & Death
a) POEA-SEC
b) ECA
Run-off Election
Elements of Strike
Strike Procedure
Jurisdictional Preconditions
Stages of a CBA
National Interest Industries (HEAT d WET BEDS 5-star Roof; D.O. 40-H-13)
Hierarchy of Burdens of Proof (Manalo v. Confessor, Duty Free v. Tria, SMC v.
NLRC, Fuji TV Network v. Espiritu)
Retirement Benefits (Labor Code)
Petition for Certiorari
Petition for Extraordinary Remedy
Exceptions to 1 MR Rule
Grounds for Exercise of Equity Jurisdiction
Requisites of Labor Standards Benefits
Prescriptive Periods
Grounds for Appeal (LA to NLRC)
IV
PREREQUISITES

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Jurisdictional Preconditions (majority representative status & demand)

SEnA Proceedings (Sec. 1, RA 10396, Art. 228, LC))
PAC Remedy (for apprentices)
Verification (CE is a means of verification only)
Verification by some (common cause of action; visitorial power is exercisable
over establishments, not over individual workers)
Third Physician Rule (Phil Hammonia Ruling)
Three-day Mandatory Reporting Rule
Criminal Prosecution for ULP (Bar Problem)
Maternity Benefits (notices & 3 monthly contributions)
Sickness Benefits (exhaustion of leave credits & home/hospital confinement)
Strike Procedure (conversion of notice)
Pre-termination Procedures (types of employees)
Extraordinary Remedy (Rule XII, NLRC Rules of Procedure, as amended)
Run-off Election (Valid CE + Major ELVOT CASVOT)
Reinstatement Wages (refusal to reinstate; note corporate rehabilitation)
Prior SSS Consent (not required for criminal prosecution purposes)
Implementing Laws (PAL Case vis--vis Serrano Case)
Art. 218, old. LC (issue must be raised on appeal)

V
LABOR PRINCIPLES
A.

Social Legislation
1. Reasonable Nexus Rule (absence from place of assignment has reasonable
connection to presence at place of contingency)
2. Proximate Cause Theory (performance of work and disability or death are
connected by a chain of causes unbroken by notorious negligence, habitual
intoxication or intentional attempt against the members life or that of
another)
3. Increased Risk Theory (performance by the member of his work has increased
his risk of contracting the unlisted disease)
4. 24-Hour Duty Rule (exception: soldier or policeman is on official leave)
5. Utmost Liberality Rule (the purpose of social legislation is to give and not to
withhold compensation; hence, doubts must be resolved in favor of the
member)

B.

Labor Standards Law

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Liberal Interpretation Rule (Sources of doubt: PD 442 provisions; ORILC
provisions, labor contracts & evidence in labor proceedings)
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Operative Fact Doctrine (valid and will continue to produce legal effects
until nullified)
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Distinct Impression Rule (Pp v. Goce. Darvin v. CA: respondent
misrepresented his authority, ability, or influence to procure employment
reason the recruit parted with his money)
4.
Principle of Total Insulation (Principle of Separate Legal Personalities)
a)
Principle of Merger of Legal Personalities
b)
Instrumentality Rule
c)
Principle of Unaltered Responsibility
d)
Principle of Piercing the Veil of Corporate Fiction
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Principle of Limited Liability (successor employer)
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Divisor Test (holiday pay of monthly-paid employees)
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Ejusdem Generis (Service Incentive Leave & Holiday Pay: workers paid on
task basis & purely commission basis)
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Quantum Meruit (ordinary v. extraordinary attorneys fees)
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Principle of Aggravation (disclosed pre-existing diseases)
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Theory of Concealment

C.

Labor Relations Law

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Principle of the Necessitous Person (Orchard Golf & Country Club v.
Francisco: left no option except to continue working as a necessitous
person; not free to refuse lower position)
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Principle of Unjust Enrichment (Lledo v. Lledo; )
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Principle of Abuse of Rights (sole reference to labor law rule)
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Principle of Non-Oppression (Art. 7001, NCC)
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Principle of the Least Transmission of Rights (Art. 1378, NCC)
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Principle of Vicarious Liability
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Social Utility Theory (Milan v. NLRC)
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Reasonable Causal Connection Rule (Non-Compete Clause: Portillo v.
Lietz after; hence, damage claim is a post-employment claim; Note:
Century Properties, Inc. v. Babiano during and after employment)
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Reference to Labor Law Rule (Halaguena v. PAL)
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Two-tiered Test
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Ministerial Exception Rule (Ecclesiastical Affair Test)
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The Wage Test (wage v. talent fee; wage v. price; secondment)
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The Control Test (Labor law concept of control (Sonza, Begino, Espiritu);
editorial right (orosco); Tongko v. Manulife)
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Doctrine of Preferred Freedoms (applicability of MISPAP)
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Forum Non-Conveniens (Mla Hotel Case: can hear but should not hear)
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Principle of Effectivity of Judgments
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Principle of Finality of Judgments (Immutability)
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Immunity from Suit (GTZ Case: can hear but should not hear)
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Threefold Liability Rule (Rayala Ruling; sexual harassment)
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Totality of Circumstances Rule

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Principle of the Strong Arm of Equity (injunction represents the strong arm
of equity; it must be issued on the preservative principle)
Theory of Imputed Knowledge (knowledge of agent is knowledge of
principal)
VI
CODAL PROVISIONS
LABOR CODE

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Art. 3: Art. 3, PD 442 v. Sec. 3, Art. XIII, Constitution

Art. 4: Liberal interpretation Rule v. Utmost Liberality Rule
Art. 5: Operative Fact Doctrine v. Raison detre
Art. 6: Four-fold Test v. LACAPH Test
Resident v. Non-resident
Art. 13(b): CUTE CPAs Have CUTE Red Peanuts
Art. 34: Additional prohibited acts
Art. 97: ReMon FixAs PayCon WorSEr Fac
Art. 100: Art. 127
Art. 106-109 (See Diagram)
Art. 110 (Special Preferred Credits v. Ordinary Preferred Credits)
Art. 124 (Wage Distortion)
Art. 126 (No Injunction)
Arts. 128 & 129 (See Distinctions, infra)
Art. 155 (2 kinds of homework)
Art. 212, old (Free Choice of Employment)
Art. 254, old (No Injunction)
Art. 255, old ( CB & CN, Tabigue Ruling)
Art. 277, old (4 principles)
Art. 279-286, old (Security of Tenure)
Art. 287, old (Retirement Benefits)
Art. 291, old (Anabe Ruling; SIL as a curious animal)
NEW CIVIL CODE

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Art. 13 , 1 month = 30 days (Mitsubishi Case; Alcira Case)

Art. 19, Principle of Abuse of Rights (Eviota Case)
Art. 22, Principle of Unjust Enrichment (PAL Cases, Lledo Case, Sec. 18, Rule XI,
NLRC Rules of Procedure)
Arts. 1700-1702 (Becmen Case)
Art. 1306, Principle of Autonomy; (EER is a question of law, Brent Ruling, DumpitMurillo Ruling, PMC ruling)
Art. 1378, Principle of the Least Transmission of Rights
VII
OTHER LABOR STATUTES

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Sec. 5, Magna Carta of Persons with Disability (Bernardo Case)

Sec. 5, Expanded Senior Citizens Act (right to employment; 15% tax deduction)
Sec. 31, Corporation Code (corporate officers, Carag v. NLRC)
Pag-Ibig Fund Act , Retirement Pay: PD 442, SSS (Chan v. Rogelio) & Pag-Ibig
(substitute retirement plan)
Magna Carta for Women (gynecological disorder)
Solo Parents Welfare Act (IF NO DADS Undo Coitus + Less than 18 DULU)
Night Work Law (RA 10151, D.O. 119-12: not less than 7 consecutive hours of
work between 10 pm and 6 am, except FAMI workers)
Kasambahay Act (HeLau GarCYa (Hello Garci, except occasional & sporadic)
Double Indemnity Law (Sapio v. Undaloc Construction)
Anti-Sexual Harassment Act (See Diagram; Phil Aeolus Automotive Case, Acosta
Case, Carpio Case, Rayala Case)

VIII
IMPLEMENTING RULES
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IRR of Art. 277 (PT&T Ruling)

IR of Art. 94 (Ejusdem Generis)
Nb: Sec. 8(b), Rule IV, Bk III
IR of Art. 95 (Ejusdem Generis)
D.O. 119-12 (night worker)
D.O. 40-H-13 (NI Cases: WHOEA )
IX
TESTS

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Manner of Creation Test (Labor Law v. Civil Service Law)

Two-tiered Test (Four-fold Test + Economic Dependence Test, Orosco Case)
Ecclesiastical Affair Test (Ecclesiastical matters: religious belief, faith, dogma,
doctrine, governance of the faithful, ordination, ex-communication)
MISPAP Test (Means - principle of vicarious liability not observed; Injunction Art.
263(g), Innocent Bystander Rule; Statutory Prohibition E.O. 180; Procedure
effect of conversion of notice to preventive mediation; Agreement no strike
clause v. compulsory arbitration clause; Purpose wage distortion issues, intra &
inter-union matters and labor standards issues are not strikable)
Divisor Test (if employer uses lower divisor, or 249 days, he has not paid the
holiday pay of his monthly-paid employees; Proc. 831 - 12 regular holidays)
X
TOOLS FOR ANALYSIS

Illegal Recruitment
Sexual Harassment
Labor Standards Benefits
Job Contracting
Wage Distortion
Compensable Disability & Death (POEA-SEC & ECA)
XI
COMPUTATIONS

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Wage Distortion Adjustment

Retirement Benefits
Backwages
Overtime Pay
Holiday Pay
13th Month Pay

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Conferment of Jurisdiction
a)
First Level Administrative Agencies (LA, VA, RD, Med-Arbiter)
b)
Review Bodies (BLR, spaghetti doctrine; SOLE; NLRC)
Acquisition of Jurisdiction
a)
Med-Arbiter (valid CE petition)
b)
Regional Director (Art. 128, letter authority; Art. 129, complaint)
c)
Labor Arbiter (complaint after SEnA proceedings)
d)
Voluntary Arbitrator (submission agreement, notice to arbitrate,
appointment)
Exercise of Jurisdiction
a)
Regional Director (Bombo Radyo Ruling: determination of EER is a coextensive power)
b)
Med-Arbiter (res judicata, not a litigation)
c)
Labor Arbiter (Execution: motion to quash writ of execution; petition for
certiorari - note judicial courtesy & Sec. 7, Rule 65, Rules of Court;
petition for extraordinary remedy)
d)
Voluntary Arbitrator (alias writ of execution)
Labor Jurisdiction

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XII
LABOR PROCEDURE

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a)
Reasonable Causal Connection Rule
b)
Reference to Labor Law Rule
Principles
a)
Substantial Evidence Rule
b)
Error of Jurisdiction
c)
Equity Jurisdiction
XIII
JURISPRUDENCE
Independent Contractor
Sonza v. ABS-CBN, Begino, et al v. ABS-CBN, De Raedt v. SGV , Fuji TV Network v.
Espiritu, Tongko v. Manulife
Project Employment
Fixed-term Employment
Negative Pregnant (CLEOPAI PPTRS Defenses)
2014 Decisions (See Handout)
2015 Decisions (See Handout)
J Velasco Decisions (See Handout)
___________________________________________
Do Not Read Until Dawn of Sunday. Sleep Early. God Will Take Care of the Rest.
Marichu:

OMG di ko naulit basahin lahat!

Kristine: Ano ka. Even the examiner did not read all. Only God did!
GOOD LUCK
!!!