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PROJECT PHOENIX 2016 Bureau of Employment Services (BES – Art. 15).

[Trans
Labor Laws and Social Legislations Action Overseas Corporation, vs. Secretary of Labor,
G.R. No. 109583, September 5, 1997]
Atty. Cecilio D. Duka, Ed.D.
Money Claims of OFW
Labor Standards Laws We reiterate our finding in Serrano v. Gallant
Labor standards refers to the minimum Maritime that limiting wages that should be recovered by
requirements prescribed by existing laws, rules and an illegally dismissed overseas worker to three months
regulations relating to wages, hours of work, cost of is both a violation of due process and the equal
living allowance and other monetary and welfare protection clauses of the Constitution. (Sameer
benefits, including occupational, safety and health Overseas Placement vs. Cabiles, August 5, 2014)
standards (BatongBuhay Gold Mines, Inc., vs. Dela
Serna, et. al., G.R. No. 86963, August 6, 1999)They are Rates of OFW Remittance
covered by Books I to IV of the Labor Code. Seamen and mariners – 80% of the basic salary,
Construction companies and their workers – 70% of the
Labor Relations Law basic salary, Professional workers (e.g. doctors, nurses,
Labor relations laws are the laws, rules and engineers, teachers) whose employment contracts
regulations which govern the relationship between provide for free board and lodging – 70% of the basic
employees and their employers, promote the right of the salary, Professionals without free board and lodging –
employees to self-organization and collective bargaining, 50% of the basic salary, Domestic and other service
penalize unfair labor practice, and provide modes for the workers – 50% of the basic salary, all other workers –
settlement of labor disputes such as conciliation, 50% of the basic salary(Section 2, of Executive Order
mediation, grievance machinery, voluntary arbitration 857)
and compulsory arbitration. They are covered by Books
V – VII of the Labor Code. License and authority
A license is a document issued by the
Social Legislations Department of Labor and Employment (DOLE)
Social legislationsare laws, rules, and authorizing a person or entity to operate a private
regulations that promote welfare of all sectors of employment agency, while an authorityis a document
society.Social Legislationincludes laws that provide issued by the DOLE authorizing a person or association
particular kinds of protection or benefits to the society, in to engage in recruitment and placement activities as a
furtherance of social justice. Not all social legislations private recruitment entity.
are labor laws. Labor lawsdirectly affect employment
they directly govern effects of employment. All labor laws Illegal Recruitment
are social legislations. But not all social legislations are Illegal recruitment is committed when two elements
labor laws. concur, namely; (1) the offender has no valid license or
authority required by law to enable one to lawfully
Construction in favor of labor engage in recruitment and placement of workers; and (2)
All doubts in the implementation and he undertakes either any activity within the meaning of
interpretation of the provisions of this Code, including its “recruitment and placement” defined under Article 13(b),
implementing rules and regulations, shall be resolved in or any of the prohibited practices enumerated under
favor of labor. Article 34 of the Labor Code. (People vs. Gutierrez, 422
The liberality of law in favor of the working man SCRA 32)
and woman still prevails and the official agency charged
by law to implement the constitutional guarantee of Economic sabotage
social justice should adopt a liberal attitude in favor of Illegal recruitment when committed by a
the employee in deciding claims for compensability, syndicate or in large scale shall be considered as
especially in light of compassionate policy towards labor offense involving economic sabotage.
which the 1987 Constitution vivifies and enhances. Illegal recruitment is deemed committed in large
(Employees’ Compensation Commission vs. Court of scale if committed against three or more persons
Appeals, G.R. No. 121545, 14 November 1996, 264 individually or as a group. In this case, five
SCRA 248) complainants testified against appellant’s acts of illegal
recruitment, thereby rendering his acts tantamount to
Corporate Officers are not covered by the Labor economic sabotage.
Code
Section 25 of the Corporation Code plainly Syndicated Illegal Recruitment
states that the corporate officers are the President, Illegal recruitment is deemed committed by a
Secretary, Treasurer and such other officers as may be syndicate when carried out by a group of three (3) or
provided for in the By-Laws.Whoever are the corporate more persons conspiring or confederating with one
officers enumerated in the by-laws are the exclusive another. (Section 6, Republic Act No. 8042)
Officers of the corporation and the Board has no power
to create other Offices without amending first the Large Scale Illegal Recruitment
corporate By-laws.(Matling Industrial Corporation vs. It is deemed committed in large scale if
Coros, October 13, 2010) committed against three (3) or more persons individually
or as a group.(Section 6, Republic Act No. 8042)
POEA Illegal recruitment in large scale is committed
Under Executive Order No. 797 (May 1, 1982) when a person "(a) undertakes any recruitment activity
and Executive Order No. 247 (E.O. No. 247), the POEA defined under Article 13 (b) or any prohibited practice
was established and mandated to assume the functions enumerated under Article 34 of the Labor Code; (b) does
of the Overseas Employment Development Board not have a license or authority to lawfully engage in the
(OEDB – Art. 17), the National Seamen Board (NSB – recruitment and placement of workers; and (c) commits
Art. 20), and the overseas employment function of the the same against three or more persons, individually or
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as a group.(People of the Philippines vs. Calonzo, G.R. 3. Must possess the ability to comprehend or
Nos. 115150-55, September 27, 1996) follow oral and written instructions.

Penalties for Illegal Recruitment Features of Apprenticeship Training


The penalties for illegal recruitment today are the 1. The apprentice must be paid not less than
ones provided by Section 6, Republic Act No. 10022 75% of the prescribed minimum salary
which amended Republic Act No. 8042 which provided 2. There must be approval from DOLE Secretary
for an apprenticeship program (without such one shall be
for higher penalties on illegal recruitment than what are deemed a regular employee)
provided by Article 39 of the Labor Code. Thus: 3. The employer is not compelled to continue
one’s employment
Simple illegal recruitment - imprisonment of 12 years 4.One-half (1/2) of the value of labor training
and 1 day to 20 years and a fine of1 million to expenses incurred for developing the productivity and
efficiency of apprentices of the training cost is deducted
2 million pesos.
from the employer’s income tax but it shall not exceed
ten percent (10%) of direct labor wage.
Illegal recruitment deemed as economic sabotage- 5. If the apprenticeship training is part of the
life imprisonment and a fine of2 million to 5 school curriculum, a requirement for graduation, or
Million pesos. board examination, the employer may not pay any wage.
The maximum penalty shall be imposed if the
Working scholars
person illegally recruited is less than eighteen (18) years There is no employer-employee relationship
of age or committed by a non-licensee or non-holder of between students on one hand, and schools, colleges or
authority universities on the other, where there is written
agreement between them under which the former agree
Consequences of Conviction for Illegal Recruitment to work for the latter in exchange for the privilege to
study free of charge, provided the students are given
1. automatic revocation of the license or real opportunities, including such facilities as may be
authority (Art. 39[e]); reasonable and necessary to finish their chosen courses
2. forfeiture of the cash and surety bonds (Art. under such agreement.(Section 14, Rule X,
39[e]); Implementing Rules and Regulations of Book III, The
3. conviction for the crime of estafa, if found Labor Code)
guilty therefor. (People of the Philippines vs.
Calonzo, G.R. Nos. 115150-55, September Learners
27, 1996) Learners refers to persons hired as trainees in
semi-skilled and other industrial occupations which are
Prescription of action for illegal recruitment non-apprenticeable. Learnership programs must be
Illegal recruitment cases under this Act shall approved by the Technical Education and Skills
prescribe in five (5) years: Provided, however, That Development Authority based on the provisions of
illegal recruitment cases involving economic sabotage as Republic Act No. 7796.
defined herein shall prescribe in twenty (20) years.
(Section 12, Republic Act 8042) Features of Learnership
1. The duration of the learnership period, which
Doctrine of Imputed Knowledge shall not exceed three (3) months;
The theory of imputed knowledge ascribes 2. If the learnership of 3 months is completed,
the knowledge of the agent, to the principal, the employer can be compelled to continue with the
employer not the other way around.The services of the learner as a regular employee
knowledge of the principal-foreign employer cannot, 3. There is a commitment from the employer to
therefore, be imputed to its agent.(Sunace employ the learners if they so desire, as regular
International Management Inc. vs. NLRC, G.R. No. employees upon completion of the learnership
161757, January 25, 2006) 4. If the learner is dismissed from the service
without just and valid cause and without due process
Apprentice after 2 months of service, he will be deemed as regular
An apprentice is a worker who is undergoing employee
training for an approved apprenticeable occupation 5. The wages or salary rates of the learners
covered by a written apprenticeship agreement with an which shall begin at not less than seventy- five percent
individual employer. (75%) of the applicable minimum wage; and

Apprenticeable Occupation Disabled persons


An apprenticeable occupation means any trade, Disabled persons are those suffering from
form of employment or occupation which requires more restriction or different abilities, as result of a mental,
than three (3) months of practical training on the job physical or sensory impairment, to perform an activity in
supplemented by related theoretical instruction. the manner or within the range considered normal for a
human being.
Requirements for an apprentice
1. Must at least be 15 years old as Section 12 – Supervisory Employees are deemed managerial
A of Republic Act No. 9231 prohibits the employment of employees in view of Article 82
minor below 15 years old, except those employed in Officers or members of a managerial staff if they
entertainment business where a necessary permit is perform the following duties and responsibilities:
issued by the Department of Labor and Employment. (1) The primary duty consists of the performance
2. Must have the vocational aptitude and of work directly related to management policies of their
capacity for appropriate tests; employer; (2) Customarily and regularly exercise

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discretion and independent judgment; and (3) (i) Overtime pay means the additional
Regularly and directly assist a proprietor or a managerial compensation for work performed beyond 8 hours.
employee whose primary duty consists of the Premium pay means the additional
management of the establishment in which he is compensation required by law for work performed within
employed or subdivision thereof; or (ii) execute under 8 hours on non-working days, such as rest days and
general supervision work along specialized or technical special days.
lines requiring special training, experience, or
knowledge; or (iii) execute, under general supervision, Entitlement to overtime pay must be proven
special assignments and tasks; and (4) Who do not Notwithstanding the foregoing discussion,
devote more than 20 percent of their hours worked in a petitioner failed to show his entitlement to overtime and
work week to activities which are not directly and closely rest day pay due, to the lack of sufficient evidence as to
related to the performance of the work described in the number of days and hours when he rendered
paragraphs (1), (2) and (3) above. (Rule I, Section 2(c), overtime and rest day work. Entitlement to overtime pay
Labor Code Implementing Rules and Regulation, Book must first be established by proof that said overtime
III) work was actually performed, before an employee may
avail of said benefit. To support his allegations, petitioner
Bus Drivers and Conductors are not Field Personnel submitted in evidence minutes of meetings wherein he
The driver is under constant supervision while in was assigned to work on weekends and holidays at
the performance of this work. He cannot be considered Cityland’s housing projects. Suffice it to say that said
field personnel. (Auto Bus Transport Systems, Inc. vs. minutes do not prove that petitioner actually worked on
Bautista, G.R. No. 156367, May 16, 2005) said dates. It is a basic rule in evidence that each party
must prove his affirmative allegations.(Lagatic vs.
Hours worked National Labor Relations Commission, G.R. No. 121004,
The following shall be considered as January 28, 1998)
compensable hours worked:
(a) All time during which an employee is required Overtime pay of seamen
to be on duty or to be at the employer's premises or to The correct criterion in determining whether or
be at a prescribed work place; and not sailors are entitled to overtime pay is not, therefore,
(b) All time during which an employee is suffered whether they were on board and can not leave ship
or permitted to work. (Section 3, Rule I, Labor Code beyond the regular eight working hours a day, but
Implementing Rules and Regulation, Book III) whether they actually rendered service in excess of said
number of hours. (Emphasis supplied) (Legahi vs.
Working while sleeping National Labor Relations Commission,G.R. No. 122240,
Sleepingwhile on duty is compensable if the November 18, 1999) attycdduka
nature of the employee’s work allows sleeping without
interrupting or prejudicing work or when there is an To be entitled to two (2) days successive holidays:
agreement between the employee and his employer to 1. One must be present on the day
that effect. For example, a truck helper may sleep after immediately preceding the first holiday; or
performing his task and while his truck is traveling on its 2. One is on leave with pay
way to its assignment. But of course, the same may not
be done by the driver. Two Regular Holidays Falling on the Same Day
Working while on calliscompensable if the When Araw ng Kagitingan falls on the same day
employee is required to remain on call in the employer’s as Maundy Thursday or Good Friday, a covered
premises or so close thereto that he cannot use the time employee is entitled to at least two hundred percent
effectively and gainfully for his own purpose. (200%) of his/her basic wage even if said day is
unworked. Where the employee is required to work on
Rules on meal periods that day, he/she is entitled to an additional 100% of the
Rest periods or coffee breaks running from five basic wage.(2012 Handbook on Workers’ Statutory
(5) to twenty (20) minutes shall be considered as Monetary BenefitsDole Bureau of Working Conditions)
compensable working time.Thus, the eight-hour work
period does not include the meal break. Nowhere in the Monthly paid employees are not entitled to holiday
law may it be inferred that employees must take their pay
meals within the company premises. Employees are not Monthly paid employees are not entitled to the
prohibited from going out of the premises as long as they holiday pay if their total annual income is divided by
return to their posts on time. Private respondent's act, 365 days resulting in a wage which is beyond the
therefore, of going home to take his dinner does not minimum wage per day because they are considered
constitute abandonment.(Philippine Air Lines, Inc. vs. paid every day of the year including holidays, rest days
National Labor Relations Commission, G.R. No. 132805, and other non-working days.
February 2, 1999)
Requisites for the Enjoyment of Service Incentive
Night shift differential Leave
Night shift differential is the amount which every 1. A total of 5 days leave in one year with pay
employee is entitled to receive which is equivalent to ten 2. The employee must have been in the service
percent (10%) of his regular wage for every hour he has for at least 1 year whether broken or continuous
worked between 10 pm to 6 am. (Section 2 Rule II, 3. If unused the 5 days are paid their cash
Implementing Rules and Regulation, Book III) equivalent at the end of the year
Those who are assigned to work on the so – 4. It covers all employees except the general
called graveyard shift are entitled to night shift exceptions and establishments already giving sick
differential pay. leaves/vacation leaves with pay for at least 5 days.

Overtime pay Service charge

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If the establishments like hotel, motels, of the work. (Section 3, Rule VIII, Implementing Rules
restaurants and the likes collect service charges and/or and Regulations of Book III of the Labor Code)
the customers give tips for their services the following
rules must be observed: Job contracting
1. Services-charges or compensation for service There is "job contracting" where (a) The
rendered contractor carries on a distinct and independent
2. Tips are for the recognition for satisfactory or business and undertakes the contract work on his
efficient service account under his own responsibility according to his
3. The service charges must be pooled own manner and method, free from the control and
4. The amount collected is divided between the direction of his employer or principal in all matters
company (15%) and employees (85%) connected with the performance of his work except as to
5. It shall be given twice a month with intervals the results thereof; (b) The contractor has substantial
of not more than 15 days capital or investment; and (c) The agreement between
6. If discontinued, removed, or stopped, the the principal and the contractor or subcontractor assures
average, share of the employees of their service charge the contractual employees' entitlement to all labor and
or tips shall be integrated with their basic wage occupational safety and health standards, free exercise
of the right to self-organization, security of tenure, and
Facilities are deductible from wages social welfare benefits.(Babas vs. Lorenzo Shipping,
Facilities are items of expense necessary for the December 15, 2010)
laborer's and his family's existence and subsistence so
that by express provision of law they form part of the Department Order No. 18-A, November 14, 2011
wage and when furnished by the employer are Substantial capital refers to paid – up capital
deductible therefrom, since if they are not so furnished, stocks/shares of at least three million pesos (Php
the laborer would spend and pay for them just the same. 3,000,000.00) in the case of corporations, partnerships
They shall include all articles or services for the benefit and cooperatives; in the case of single proprietorship, a
of the employee or his family but shall not include tools net worth of at least three million pesos (Php
of the trade or articles or services, primarily for the 3,000,000.00)
benefit of the employer or necessary to the conduct of
the employer’s business. They form part of the wage and Elements of labor – only contracting
deductible from the wage.(Mabeza vs. National Labor Under the Labor Code, two (2) elements must
Relations Commission, G.R. No. 118506, April 18, 1997 exist for a finding of labor-only contracting: (a) the
(271 SCRA 670) person supplying workers to an employer does not have
substantial capital or investment in the form of tools,
Supplements are not deductible from wages equipment, machineries, work premises, among others,
Supplements constitute extra remuneration or and (b) the workers recruited and placed by such
special privileges or benefits given to or received by the persons are performing activities directly related to the
laborers over and above their ordinary earnings or principal business of such employer. (Filipinas Synthetic
wages. They are independent of the wage and not wage Fiber Corporation (FILSYN) vs. National Labor Relations
deductible. More significantly, the food and lodging, or Commission, G.R. No. 113347, June 14, 1996)
the electricity and water consumed by the petitioner
were not facilities but supplements. A benefit or privilege College Professors are not independent contractors
granted to an employee for the convenience of the This Court takes judicial notice that a university
employer is not a facility. (Mabeza vs. National Labor controls the work of the members of its faculty; that a
Relations Commission, G.R. No. 118506, April 18, 1997) university prescribes the courses or subjects that
professors teach, and when and where to teach; that the
A company practice favoring employees cannot be professors' work is characterized by regularity and
withheld unilaterally by the employer continuity for a fixed duration; that professors are
A company practice favorable to the employees compensated for their services by wages and salaries,
had indeed been established and the payments made rather than by profits; that the professors and/or
pursuant thereto, ripened into benefits enjoyed by them. instructors cannot substitute others to do their work
And any benefit and supplement being enjoyed by the without the consent of the university; and that the
employees cannot be reduced, diminished, discontinued professors can be laid off if their work is found not
or eliminated by the employer, by virtue of Sec. 10 of the satisfactory. All these indicate that the university has
Rules and Regulations Implementing P.D. No. 851, and control over their work; and professors are, therefore,
Art. 100 of the Labor Code of the Philippines which employees and not independent contractors. There are
prohibit the diminution or elimination by the employer of authorities in support of this view. (FEATI University vs.
the employees’ existing benefits. (Sevilla Trading Co. vs. Hon. Jose Bautista, G.R. No. L-21278, December 27,
Semana, G.R. No. 152456, April 28, 2004) 1966)

Time of payment of wages Wage Distortion


(a) Wages shall be paid not less than once every The term "wage distortion", under the Rules
two (2) weeks or twice a month at intervals not Implementing Republic Act 6727, is defined, thus:
exceeding sixteen (16) days, unless payment cannot be Wage Distortion means a situation where an
made with such regularity due to force majeure or increase in prescribed wage rates results in the
circumstances beyond the employer's control in which elimination or severe contradiction of intentional
case the employer shall pay the wages immediately after quantitative differences in wage or salary rates between
such force majeure or circumstances have ceased. (b) In and among employee groups in an establishment as to
case of payment of wages by results involving work effectively obliterate the distinctions embodied in such
which cannot be finished in two (2) weeks, payment shall wage structure based on skills, length of service, or
be made at intervals not exceeding sixteen days in other logical bases of differentiation. (Metropolitan Bank
proportion to the amount of work completed. Final & Trust Company Employees Union-ALU – TUCP, vs.
settlement shall be made immediately upon completion

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National Labor Relations Commission, G.R. No. 102636, Labor and Employment, et. al., G.R. No. 74621,
September 10, 1993) February 7, 1990)

Wage Distortion is a non - strikable issue Batas Kasambahay - R.A. 10361


The solution to the problem of wage distortions SEC. 37. Mechanism for Settlement of Disputes.
shall be sought by voluntary negotiation or arbitration, – All labor-related disputes shall be elevated to the
and not by strikes, lockouts, or other concerted activities DOLE Regional Office having jurisdiction over the
of the employees or management. "Any issue involving workplace without prejudice to the filing of a civil or
wage distortion shall not be a ground for a strike/lockout. criminal action in appropriate cases. The DOLE Regional
(IlawAtBuklod Ng Manggagawa (IBM) vs. National Labor Office shall exhaust all conciliation and mediation efforts
Relations Commission, G.R. No. 91980, June 27, 1991) before a decision shall be rendered.
Ordinary crimes or offenses committed under
Appeal from the orders of DOLE Regional Director the Revised Penal Code and other special penal laws by
under Art 128 either party shall be filed with the regular courts.
The order of the Regional Director shall be final
and executory unless appealed to the Secretary of Labor Period to file the claims
and Employment within ten (10) calendar days from All money claims arising from employer-
receipt thereof.(Section 1, Rule IV, Rules on the employee relations accruing during the effectivity of this
Disposition of Labor Standards Cases in the Regional Code shall be filed within three (3) years from the time
Offices) the cause of action accrued; otherwise they shall be
forever barred. (Article 306, Labor Code)
Jurisdiction of the DOLE Regional Director under
Art. 129 The Anti – Sexual Harassment Law
Under Article 129, the Regional Director or any Sexual harassment abounds in all sick societies.
of the duly authorized hearing officers of DOLE has It is reprehensible enough but more so when inflicted by
jurisdiction over claims for recovery of wages, simple those with moral ascendancy over their victims. We rule
money claims and other benefits, provided that the claim that it is a valid cause for separation from service.
is filed by an employee or person employed in domestic (Villarama vs. National Labor Relations Commission,
or household service or househelper and the following G.R. No. 106341, September 2, 1994 [Puno])
must concur:
1. the claim must arise from employer-employee Mere casual buss on the cheek is not a sexual
relationship; conduct or favor
2. the claimant is no longer employed and does We have reviewed carefully the records of this
not seek reinstatement; case and found no convincing evidence to sustain
3. the aggregate money claim of each employee complainant’s charges. What we perceive to have been
does not exceed P5,000.00. committed by respondent judge are casual gestures of
In the absence of any of the three (3) requisites, friendship and camaraderie, nothing more, nothing less.
the Labor Arbiters have exclusive original jurisdiction In kissing complainant, we find no indication that
over all claims arising from employer-employee respondent was motivated by malice or lewd design.
relations, other than claims for employee's Evidently, she misunderstood his actuations and
compensation, social security, medicare and maternity construed them as work-related sexual harassment
benefits. (Brokenshire Memorial Hospital, Inc., vs. under R.A. 7877. (Atty. Susan M. Aquino vs. Hon.
Minister of Labor and Employment, et. al., G.R. No. Ernesto D. Acosta, Presiding Judge, Court of Tax
74621, February 7, 1990) Appeals, A. M. No. CTA-01-1, April 2, 2002)

Jurisdiction of DOLERegional Director if the amount Maternity Leave under Republic Act No. 8282 (SSS
exceeds P5000 Law)
But even if the amount of the claim exceeds A female member who has paid at least three
P5,000.00, the claim is not on that account necessary (3) monthly contributions in the twelve-month period
removed from the Regional Director's competence. In immediately preceding the semester of her childbirth or
respect thereof, he may still exercise the visitorial and miscarriage shall be paid a daily maternity benefit
enforcement powers vested in him by Article 128 of the equivalent to one hundred percent (100%) of her
Labor Code, as amended, supra; that is to say, he may average daily salary credit for sixty (60) days or
still direct his labor regulations officers or industrial seventy-eight (78) days in case of caesarean
safety engineers to inspect the employer's premises and delivery.
examine his records. (Brokenshire Memorial Hospital,
Inc., vs. Minister of Labor and Employment, et. al., G.R. Paternity Benefit (R.A. 8187)
No. 74621, February 7, 1990) This benefit shall apply to the first four deliveries
or miscarriage of the employee’s lawful wife with whom
Jurisdiction of DOLERegional Director if the he is cohabiting. For this purpose, cohabiting refers to
employer contests the order the obligation of the husband and wife to live together.
The adjudicatory power provided by Article 129 Where the spouses are not physically living together
to the DOLE Regional Director may not be exercised by because of the work station or occupation, the male
him where the employer contests the labor regulation employee is still entitled to the paternity leave benefit.
officers' findings and raises issues which cannot be The leave shall be for seven (7) days, with full
resolved without considering evidentiary matters not pay, consisting of basic salary and mandatory
verifiable in the normal course of inspection. In such an allowances fixed by the Regional Wage Board, if any,
event, the case will have to be referred to the provided that his pay shall not be less than the
corresponding Labor Arbiter for adjudication, since it falls mandated minimum wage.
within the latter's exclusive original jurisdiction. Availment of the paternity leave may be after the
(Brokenshire Memorial Hospital, Inc., vs. Minister of delivery, without prejudice to an employer’s policy of
allowing the employee to avail of the benefit before or

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during the delivery, provided that the total number of (15) years of age shall be allowed to work between eight
days shall not be more than seven (7) days for each o'clock in the evening and six o'clock in the morning of
covered delivery. (Handbook on Workers’ Statutory the following day and no child fifteen (15) years of age
Monetary Benefits, p.38) but below eighteen (18) shall be allowed to work
between ten o'clock in the evening and six o'clock in the
A policy prohibiting an employee from having a morning of the following day.(Section 3, Republic Act
relationship with an employee of a competitor No. 9231)
company is a valid exercise of management
prerogative Republic Act No. 10361 – Batas Kasambahay
Glaxo has a right to guard its trade secrets, January 18, 2013. All articles or provisions of
manufacturing formulas, marketing strategies and other Chapter III of Presidential Decree No. 442, as amended
confidential programs and information from competitors, and renumbered by Republic Act No. 10151 are hereby
especially so that it and Astra are rival companies in the expressly repealed. (Sec. 44). This law governs the
highly competitive pharmaceutical industry. working conditions of all kasambahay.
The prohibition against personal or marital
relationships with employees of competitor companies The term "house helper" as used herein is
upon Glaxo’s employees is reasonable under the synonymous to the term "domestic servant" and shall
circumstances because relationships of that nature refer to any person, whether male or female, who
might compromise the interests of the company. In renders services in and about the employer's home and
laying down the assailed company policy, Glaxo only which services are usually necessary or desirable for the
aims to protect its interests against the possibility that a maintenance and enjoyment thereof, and ministers
competitor company will gain access to its secrets and exclusively to the personal comfort and enjoyment of the
procedures. (Duncan Association of Detailman-PTGWO employer's family. (Section 1, Rule XIII, Implementing
vs. Glaxo Wellcome Philippines, Inc., G.R. No. 162994, Rules and Regulation of Book III, of the Labor Code)
September 17, 2004)
While ahomeworkeris one who performs in or
Republic Act 9710 – Magna Carta of Women about his home any processing of goods or materials, in
Expulsion and non-readmission of women whole or in part which have been furnished directly or
faculty, due to pregnancy outside of marriage shall be indirectly by an employer and thereafter to be returned to
outlawed. the latter.
No school shall turn out or refuse admission to a
female student, solely on the account of her having Republic Act No. 10151 – the night workers law
contracted pregnancy outside of marriage during her It repealed Articles 130 and 131 of the Labor Code
term in school. [Section 13 (c)] The new provisions in the Labor Code covering Articles
A woman employee having rendered continuous 154 to 161 are brought about by Republic Act No. 10151
aggregate employment service of at least six (6) months which was approved on June 21, 2011.
for the last twelve (12) months shall be entitled to a This law also repealed Articles 130 and 131 of the Labor
special leave benefit of two (2) months with full pay Code and abolished the provisions of law which prohibits
based on her gross monthly compensation following night work for women.
surgery caused by gynecological disorders. (Section 18)
Coverage of Night Work
Republic Act No. 10028 – Promotion of This chapter shall apply to all persons, who shall
Breastfeeding be employed or permitted or suffered to work at night
It is hereby mandated that all health and non-health except those employed in agriculture, stock raising,
facilities, establishments or institutions shall establish fishing, maritime transport and inland navigation, during
lactation stations. The lactation stations shall be a period of not less than seven (7) consecutive hours,
adequately provided with the necessary equipment and including the interval from midnight to five o’clock in the
facilities.The lactation station shall not be located in the morning.
toilet.
Health Assessment (Article 155)
Employment of Children At their request, workers shall have the right to
Children below fifteen (15) years of age shall not undergo a health assessment without charge and to
be employed except when a child works directly under receive advice on how to reduce or avoid health
the sole responsibility of his/her parents or legal problems associated with their work:
guardian and where only members of his/her family are (a) Before taking up an assignment as a night
employed provided that his/her employment neither worker;
endangers his/her life, safety, health, and morals, nor (b) At regular intervals during such an
impairs his/her normal development, providedfurther that assignment; and
the parent or legal guardian shall provide the said child (c) If they experience health problems during
with the prescribed primary and/or secondary education. such an assignment which are not caused by factors
For purposes of this Article, the term "child" shall apply other than the performance of night work.
to all persons under eighteen (18) years of age. (Section
2, Republic Act No. 9231) Labor Relations Law
Labor relations laws are the laws, rules and
Hours of Work of a Working Child regulations which govern the relationship between
(1) A child below fifteen (15) years of age may employees and their employers, promote the right of the
be allowed to work for not more than twenty (20) hours a employees to self-organization and collective bargaining,
week provided that the work shall not be more than four penalize unfair labor practice, and provide modes for the
(4) hours at any given day;(2) A child fifteen (15) years of settlement of labor disputes such as conciliation,
age but below eighteen (18) shall not be allowed to work mediation, grievance machinery, voluntary arbitration
for more than eight (8) hours a day, and in no case and compulsory arbitration. They are covered by Books
beyond forty (40) hours a week;(3) No child below fifteen V – VII of the Labor Code.

6
involving Filipino workers for overseas employment
Composition of the NLRC based on R. A. 9347 including claims for actual, moral, exemplary and other
The National Labor Relations Commission shall forms of damages.
be composed of eight (8) divisions with three members
which shall be chosen only from among the nominees of Venue
the workers and employers organizations, respectively. The venue is the Regional Arbitration Branch
The Chairman and the seven (7) members shall where the complainant resides or where the principal
come from the public sector, with the latter to be chosen office of the respondent(s) employer is situated, at the
preferably from among the incumbent labor arbiters. option of the complainant (Sec. 1[e], The 2005 Revised
The Commission may sit en banc or in eight (8) Rules of Procedure of the National Labor Relations
divisions, each composed of three (3)members. Commission)
The Commission shall sit en banc only for
purposes of promulgating rules and regulations Money Claims of OFW’s
governing the hearing and disposition of cases before 100% reimbursement of placement fees plus
any of its divisions and regional branches and 12% interest per annum plus the salaries for the
formulating policies affecting its administration and unexpired portion of the contract. (Sameer Overseas
operations. Placement Agency vs. Cabiles, Aug. 5, 2014,Serrano vs.
Of the eight (8) divisions, the first, second, third, Gallant Maritime Services, Inc., March 24, 2009)
fourth, fifth and sixth divisions shall handle cases coming
from the National Capital Regionand other parts of Jurisdiction of the BLR
Luzon, the seventh and eighth divisions, cases from 1. “Inter-union disputes” or “representation
Visayas and Mindanao, respectively disputes” which refer to cases involving petition for
The divisions of the Commission shall have certification election filed by a duly registered labor
exclusive appellate jurisdiction over cases within their organization which is seeking to be recognized as the
respective territorial jurisdiction. sole and exclusive bargaining agent of the rank-and-file
employees in the appropriate bargaining unit of a
Appointees to NLRC not subject to confirmation of company, firm or establishment.
the Commission on Appointments 2. “Intra-union disputes” or “internal union
Deciding on what laws to pass is a legislative disputes” which refer to disputes or grievances arising
prerogative. Determining their constitutionality is a from any violation of or disagreement over any provision
judicial function. The Court respects the laudable of the constitution and by-laws of the union, including
intention of the legislature. Regretfully, however, the any violation of the rights and conditions of union
constitutional infirmity of Sec. 13 of RA 6715 amending membership provided for in the Labor Code.
Art. 215 of the Labor Code, insofar as it requires The NCMB
confirmation of the Commission on Appointments over The Conciliation, mediation and voluntary
appointments of the Chairman and Member of the arbitration functions of the Bureau of Labor Relations
National Labor Relations Commission (NLRC) is, as we (BLR) shall be absorbed by NCMB. It is an attached
see it, beyond redemption if we are to render fealty to agency under the administrative supervision of the
the mandate of the Constitution in Sec. 16, Art. VII Secretary of Labor and Employment. It is headed by an
thereof. (Calderon vs. Carale, G.R. No. 91636, April 23, Administrator and 2 Deputy Administrators. The NCMB
1992) has jurisdiction over conciliation, mediation and
voluntary arbitration cases.
Jurisdiction of the Labor Arbiters
1. Unfair labor practice cases; Personality of Labor Union not subject to collateral
2. Termination disputes; attack
3. If accompanied with a claim for reinstatement, We rule, however, that such legal personality
those cases that workers may file involving wages, rates may not be subject to a collateral attack but only through
of pay, hours of work and other terms and conditions of a separate action instituted particularly for the purpose of
employment; assailing it. This is categorically prescribed by Section 5,
4. Claims for actual, moral, exemplary and other Rule V of the Implementing Rules of Book V. (Laguna
forms of damages arising from the employer-employee Autoparts Manufacturing Corporation vs. Office of the
relations; Secretary, Department of Labor and Employment G.R.
5. Cases arising from any violation of Article 264 No. 157146. April 29, 2005)
of this Code, including questions involving the legality of Once a labor union attains the status of a
strikes and lockouts; and legitimate labor organization, it continues as such until
6. Except claims for Employees Compensation, its certificate of registration is cancelled or revoked in an
Social Security, Medicare and maternity benefits, all independent action for cancellation. In addition, the legal
other claims arising from employer-employee relations, personality of a labor organization cannot be collaterally
including those of persons in domestic or household attacked. (Coastal Subic Bay Terminal Inc. vs.
service, involving an amount exceeding five thousand Department of Labor and Employment – Office of the
pesos (P5,000.00) regardless of whether accompanied Secretary, G.R. No. 157117, November 20, 2006)
with a claim for reinstatement.(Except those of the
kasambahay, Section 37, RA 10361) Republic Act No. 10396
7. Cases arising from the interpretation or "ART. 228. Mandatory Conciliation and
implementation of collective bargaining agreements and Endorsement of Cases. –
those arising from the interpretation or enforcement of (a) Except as provided in Title VII-A, Book V of
company personnel policies this Code, as amended, or as may be excepted by the
Secretary of Labor and Employment, all issues arising
JurisdictionoverOverseas Filipino Workers from labor and employment shall be subject to
The Labor Arbiter has original and exclusive mandatory conciliation-mediation. The labor arbiter or
jurisdiction over claims arising out of an employer- the appropriate DOLE agency or office that has
employee relationship or by virtue of any law or contract

7
jurisdiction over the dispute shall entertain only endorsed to strike.(Section 10, Department Order N0. 14 Series of
or referred cases by the duly authorized officer. 2001, December 18, 2001)
"(b) Any or both parties involved in the dispute
may pre-terminate the conciliation-mediation Government employees do not have the right to
proceedings and request referral or endorsement to the strike
appropriate DOLE agency or office which has jurisdiction The Court can concede hypothetically that the
over the dispute, or if both parties so agree, refer the protest rally and gathering in question did not involve
unresolved issues to voluntary arbitration." some specific material demand. But then the absence of
such economic-related demand, even if true, did not,
Grounds for cancellation of union registration under the premises, make such mass action less of a
(a) Misrepresentation, false statement or fraud in prohibited concerted activity. For, as articulated earlier,
connection with the adoption or ratification of the any collective activity undertaken by government
constitution and by-laws or amendments thereto, the employees with the intent of effecting work stoppage or
minutes of ratification, and the list of members who took service disruption in order to realize their demands or
part in the ratification; force concessions, economic or otherwise,is a prohibited
(b) Misrepresentation, false statements or fraud concerted mass action and doubtless actionable
in connection with the election of officers, minutes of the administratively. xxx“[i]n the absence of statute, public
election of officers, and the list of voters; employees do not have the right to engage in concerted
(c) Voluntary dissolution by the members work stoppages for any purpose (Government Service
(Republic Act No. 9481, May 25, 2007) Insurance System vs. Kapisanan ng
Republic Act No. 9481which lapsed into law on mgaManggagawasa GSIS, G.R. No. 170132, December
May 25, 2007 has effectively reduced to just three (3) 6, 2006)
the grounds for the cancellation of registration of a
legitimate labor organization. Under the old provisions of Unfair labor practice
Article 239, there were ten grounds for the cancellation Unfair labor practice refers to acts that violate
of union registration. the workers’ right to organize. The prohibited acts are
related to the workers’ right to self-organization and to
Mixture of employees in one union is not a ground the observance of a Collective Bargaining Agreement.
for cancellation of its registration Without that element, the acts, no matter how unfair, are
Clearly then, for the purpose of de-certifying a not unfair labor practices. (Philcom Employees Union vs.
union, it is not enough to establish that the rank-and-file Philippine Global Communications, G.R. No. 144315,
union includes ineligible employees in its membership. July 17, 2006)
Pursuant to Article 239 (a) and (c) of the Labor Code, it
must be shown that there was misrepresentation, false Dismissal due to union security clause
statement or fraud in connection with the adoption or It has been the jurisprudential rule for quite
ratification of the constitution and by-laws or sometime that the employer is not considered guilty of
amendments thereto, the minutes of ratification, or in unfair labor practice if it merely complied in good faith
connection with the election of officers, minutes of the with the request of the certified union for the dismissal of
election of officers, the list of voters, or failure to submit employees expelled from the union pursuant to the union
these documents together with the list of the newly security clause in the CBA (Soriano v. Atienza, G.R. No.
elected-appointed officers and their postal addresses to 68619, March 16, 1989, 171 SCRA 284,289-290).
the BLR. (Air Philippines Corporation vs. Bureau of Hence, the company may not be ordered to grant either
Labor Relations, G.R. No. 155395 June 22, 2006) backwages or financial assistance in the form of
separation pay as a form of penalty. Thus, where
Requisites for the validity of the special assessment reinstatement is adjudged, the award of backwages and
1) authorization by a written resolution of the other benefits continues beyond the date of the Labor
majority of all the members at the general membership Arbiter’s decision ordering reinstatement and extends up
meeting called for the purpose; to the time said order of reinstatement is actually carried
2) secretary's record of the minutes of the out. (Olvido, et. al. vs. Court of Appeals, G. R. Nos.
meeting; and 141166 – 67, October 15, 2007)
3) individual written authorization for check off
duly signed by the employees concerned. (Gabriel vs. Union Security Clause
Secretary of Labor and Employment, G.R. No. 115949 Union Security Clause - is a stipulation
March 16, 2000). contained in the Collective Bargaining Agreement
Employees who do not have the right to self- whereby the employer undertakes to recognize the right
organization of the union who negotiated the CBA to maintain and
The following are the groups of people whose protect its membership by imposing certain terms and
right to self-organization is restricted by the labor laws: conditions in hiring employees and retention of
high ranking government employees, employees of employment.
international organizations enjoying immunity form suits,
managerial employees, members of the AFP, PNP, Common Types of Union Security Clauses
firemen, jail guards, confidential employees and Closed shop, Union shop, Maintenance of
employees of the cooperative who are members of that membership clause, agency shop, preferential shop
same cooperative. agreement.
Jurisdictional preconditions in bargaining
Security Guards’ Right to Self Organization (1)Possession of the status of majority
The security guards and other personnel representation by the employees' representative in
employed by the security service contractor shall have accordance with any of the means of selection and/or
the right to form, join or assist in the formation of a labor designation provided for by the Labor Code; (2) proof of
organization of their own choosing for purposes of majority representation; and (3) a demand to bargain
collective bargaining and to engage in concerted under Article 251, paragraph (a), of the New Labor
activities which are not contrary to law including the right

8
Code. (Associated Labor Unions (ALU) vs. Ferrer – Of Independent and General Labor Organizations, G.R.
Calleja, G.R. No. L-77282, May 5, 1989) No. 176249, November 27, 2009)

Boulwarism Substitutionary doctrine


In negotiation, Boulwarism is an offer or counter- Stated otherwise, the "substitutionary" doctrine
offer that is not meant to be negotiated. This is a "take it only provides that the employees cannot revoke the
or leave it" strategy named after LemuelBoulware a validly executed collective bargaining contract with their
former vice president of General Electric. employer by the simple expedient of changing their
bargaining agent. And it is in the light of this that the
Contract Bar Rule phrase "said new agent would have to respect said
When there is an existing CBA, neither the contract" must be understood. It only means that the
employer nor the union may terminate nor modify the employees, thru their new bargaining agent, cannot
Collective Bargaining Agreement during its lifetime. The renege on their collective bargaining contract, except of
parties are mandated by law to keep the status quo and course to negotiate with management for the shortening
to continue with full force and effect the terms and thereof.
conditions of the existing CBA. This is known as the
contract bar rule – the existence of the CBA (a contract Bargaining Unit
between the employer and the union) bars the A bargaining unit is "a group of employees of a
modification or termination of the CBA except during the given employer, comprised of all or less than all of the
freedom period. entire body of employees, consistent with equity to the
employer, indicate to be the best suited to serve the
Freedom Period reciprocal rights and duties of the parties under the
The freedom period refers to the sixty (60) days collective bargaining provisions of the law.” (International
span prior to the expiration of the CBA. It is the time School Alliance of Educators vs. Quisumbing, G.R. No.
when the parties may terminate or modify the terms and 128845, June 1, 2000)
conditions of the CBA.
Test in determining the appropriate bargaining unit
Automatic Renewal Clause In order to determine the appropriate bargaining
Article 264 provides that the CBA shall remain unit the Supreme Court has time and again applied the
effective and enforceable even after the expiration of the four tests to wit:
period fixed by the parties as long as no new agreement (1) will of the employees (Globe Doctrine);
is reached by them and no petition for certification (2) affinity and unit of employees’ interest, such
election is filed. as substantial similarity of work and duties, or similarity
of compensation and working conditions;
Lifetime of the CBA (3) prior collective bargaining history; and
The representation issueor the status of the (4) employment status, such as temporary,
union who entered into the Collective Bargaining seasonal and probationary employees. (University of the
Agreement has a lifetime of five (5) years from the time Philippines vs. Hon. Pura Ferrer-Calleja, G.R. No. 96189
of its effectivity. While the other provisions (economic) July 14, 1992)
shall be effective for a period of three (3) years from its
execution. Certification election
Certification election refers to the process of
CBA extended to ten years - valid determining through secret ballot the sole and exclusive
We also do not agree that the agreement representative of the employees in an appropriate
violates the five-year representation limit mandated by bargaining unit for purposes of collective bargaining or
Article 265. Under said article, the representation limit negotiation. A certification election is ordered by the
for the exclusive bargaining agent applies only when Department of Labor and Employment (Department
there is an extant CBA in full force and effect. In the Order 40 – 03, Rule I, Section 1 [h])
instant case, the parties agreed to suspend the CBA and
put in abeyance the limit on the representation period. In Members of religious groups who do not want to
sum, we are of the view that the PAL-PALEA agreement join unions may vote in a certification election
dated September 27, 1998, is a valid exercise of the That the INC employees, as employees in the
freedom to contract. Under the principle of inviolability of same bargaining unit in the true sense of the term, do
contracts guaranteed by the Constitution, the contract have the right of self-organization, is also in truth beyond
must be upheld. (Rivera, et. al. vs. Espiritu, G.R. No. question, as well as the fact that when they voted that
135547, January 23, 2002) the employees in their bargaining unit should be
represented by "NO UNION," they were simply
The Exclusive Bargaining Status Cannot Go Beyond exercising that right of self-organization, albeit in its
Five Years negative aspect. No law, administrative rule or precedent
In the event however, that the parties, by mutual prescribes forfeiture of the right to vote by reason of
agreement, enter into a renegotiated contract with a term neglect to exercise the right in past certification
of three (3) years or one which does not coincide with elections. In denying the petitioners' right to vote upon
the said five-year term and said agreement is ratified by these egregiously fallacious grounds, the public
majority of the members in the bargaining unit, the respondents exercised their discretion whimsically,
subject contract is valid and legal and therefore, binds capriciously and oppressively and gravely abused the
the contracting parties. The same will however not same. (Reyes vs. Trajano, G.R. No. 84433, June 2,
adversely affect the right of another union to challenge 1992)
the majority status of the incumbent bargaining agent
within sixty (60) days before the lapse of the original five Deadlock bar rule
(5) year term of the CBA. (FVC Labor Union-Philippine The Deadlock Bar Rule simply provides that a
Transport and General Workers Organization vs. Sama- petition for certification election can only be entertained if
SamangNagkakaisangManggagawa Sa FVC-Solidarity there is no pending bargaining deadlock submitted to

9
conciliation or arbitration or had become the subject of a within the jurisdiction of the Voluntary Arbitrator or panel
valid notice of strike or lockout. The principal purpose is of Voluntary Arbitrators because they are considered as
to ensure stability in the relationship of the workers and unfair labor practice (ULP) under Article 248 thus,
the management (National Congress of Unions in the cognizable by the Labor Arbiter and the NLRC. (Isalama
Sugar Industry of the Philippines (NACUSIP) – TUCP Machine Works Corporation vs. National Labor
vs. Trajano, G.R. No. L-67485, April 10, 1992) Relations Commission, G.R. No. 100167, March 2,
1995)
One – year bar rule / Election year bar
A certification election cannot be held within one Appeals from the Decisions of Voluntary Arbitrator
(1) year from the date of issuance of declaration of a or Panel of Voluntary Arbitrators – Court of Appeals
final certification election result. The one year bar rule The decisions of a voluntary arbitrator fall within
also applies in cases of consent election, run – off the exclusive appellate jurisdiction of the Court of
election and voluntary recognition. (R. Transport Appeals. Indeed, this Court took this decision into
Corporation vs. Laguesma, G.R. No. 106830, November consideration in approving the 1997 Rules of Civil
16, 1993) Procedure.(Nippon Paint Employees Union – Olalia vs.
Court of Appeals, G.R. No. 159010. November 19,
Negotiation Bar Rule 2004)
Once the negotiation for a new CBA has been
commenced pursuant to Article 250, a petition for Strike
certification election may no longer be validly entertained Strikeis any temporary stoppage of work by the
by the Department of Labor and Employment. concerted action of the employees as a result of
industrial or labor dispute. A labor dispute includes any
Appeal bar rule controversy or matter concerning terms or conditions of
The filing of the memorandum of appeal from employment or the association or representation of
the order or decision of the Med-Arbiter stays the holding persons in negotiating, fixing, maintaining, changing or
of any certification election (Department Order No. 40 – arranging the terms and conditions of employment,
03, Rule VIII, Section 21) regardless of whether the disputants stand in the
proximate relation of employer and the employee.
Run – Off election (Bukluran ng ManggagawasaClothman Knitting Corp. –
Run-off Election refers to an election between Solidarity Unions of the Philippines for Empowerment
the labor unions receiving the two (2) highest number of and Reform vs. Court of Appeals, G.R. No. 158158,
votes in a certification or consent election with three (3) January 17, 2005)
or more choices, where such a certified or consent
results in none of the three (3) or more choices receiving The requisites of a valid strike are mandatory
the majority of the valid votes cast; provided that the The requisites for a valid strike are as follows:
total number of votes for all contending unions is at least (a) a notice of strike filed with the DOLE thirty days
fifty percent (50%) of the number of votes cast. (Section before the intended date thereof or fifteen days in case
1(ss), Rule I, Department Order 40 – 03) of unfair labor practice; (b) strike vote approved by a
majority of the total union membership in the bargaining
Voluntary Recognition unit concerned obtained by secret ballot in a meeting
Voluntary Recognition refers to the process by called for that purpose; (c) notice given to the DOLE of
which a legitimate labor union is recognized by the the results of the voting at least seven days before the
employer as the exclusive bargaining representative or intended strike. These requirements are mandatory and
agent in a bargaining unit, reported with the Regional failure of a union to comply therewith renders the strike
Office in accordance with Rule VII, Section 2, illegal (Piñero vs. National Labor Relations Commission,
Department Order 40 – 03 (Department Order 40 – 03, August 20, 2004)
Rule I, Section 1 [bbb]) We explained in National Federation of Labor
vs. NLRC (G.R. No. 113466, December 15, 1997, 283
Grievance SCRA 275, 287-288)that “with the enactment of Republic
Grievancerefers to any question by either the Act No. 6715 which took effect on March 21, 1989, the
employer or the union regarding the interpretation or rule now is that such requirements as the filing of a
implementation of any provision of the collective notice of strike, strike vote, and notice given to the
bargaining agreement or interpretation or enforcement of Department of Labor are mandatory in nature. Thus,
company personnel policies.(Department Order No. 40 – even if the union acted in good faith in the belief that the
03, Rule I, Section 1[u]) company was committing an unfair labor practice, if no
notice of strike and a strike vote were conducted, the
Voluntary arbitration said strike is illegal.”
Voluntary arbitration refers to the mode of (SamahangManggagawasaSulpicio Lines, Inc. – NAFLU
settling labor-management disputes by which the parties vs. Sulpicio Lines, Inc. G.R. No. 140992, March 25,
select a competent, trained and impartial third person 2004)
who shall decide on the merits of the case and whose
decision is final and executory. (NCMB Revised Assumption of jurisdiction is discretionary
Procedural Guidelines in the Conduct of Voluntary The powers granted to the Secretary under
Arbitration Proceedings, Section 1 [d], Rule II [Oct. 15, Article 263(g) of the Labor Code have been
2004]) characterized as an exercise of the police power of the
State, with the aim of promoting public good. When the
Gross Violations of Collective Bargaining Agreement Secretary exercises these powers, he is granted “great
is ULP breadth of discretion” in order to find a solution to a labor
Gross violations of Collective Bargaining dispute. The most obvious of these powers is the
Agreement under Article 261 means flagrant and/or automatic enjoining of an impending strike or lockout or
malicious refusal to comply with the economic provisions its lifting if one has already taken place. The authority of
of such agreement. Such gross violations do not fall the Secretary to assume jurisdiction over a labor dispute

10
causing or likely to cause a strike or lockout in an amended by Rep. Act No. 6715, i.e., without any
industry indispensable to national interest includes and deduction of income the employee may have derived
extends to all questions and controversies arising from from employment elsewhere from the date of his
such labor dispute. The power is plenary and dismissal up to his reinstatement, that is, covering the
discretionary in nature to enable him to effectively and entirety of the period of the dismissal.(Equitable Banking
efficiently dispose of the dispute.(Philcom Employees Corporation vs. Sadac, G.R. No. 164772, June 8,
Union vs. Philippine Global communications, G.R. No. 2006)
144315, July 17, 2006 [495 SCRA 214[) attycdduka
Salary increase not included in the computation of
Strike in violation of arbitration – illegal backwages
This Court has held that strikes staged in There was no lawful decree or order supporting
violation of agreements providing for arbitration are his claim, such that his salary increases can be made a
illegal, since these agreements must be strictly adhered component in the computation of backwages. What is
to and respected if their ends are to be achieved. The evident is that salary increases are a mere expectancy.
rationale of the prohibition under Article 264 is that once They are, by its nature volatile and are dependent on
jurisdiction over the labor dispute has been properly numerous variables, including the company’s fiscal
acquired by competent authority, that jurisdiction should situation and even the employee’s future performance
not be interfered with by the application of the coercive on the job, or the employee’s continued stay in a position
processes of a strike. Indeed it is among the chief subject to management prerogative to transfer him to
policies of the State to promote and emphasize the another position where his services are needed. In
primacy of free collective bargaining and negotiations, short, there is no vested right to salary increases. That
including voluntary arbitration, mediation, and respondent Sadac may have received salary increases
conciliation, as modes of settling labor, or industrial in the past only proves fact of receipt but does not
disputes. In Alliance of Government Workers v. Minister establish a degree of assuredness that is inherent in
of Labor, Chief Justice Fernando declared that the backwages. From the foregoing, the plain conclusion is
principle behind labor unionism in private industry is that that respondent Sadac’s computation of his full
industrial peace cannot be secured through compulsion backwages which includes his prospective salary
by law. Relations between private employers and their increases cannot be permitted.(Equitable Banking
employees rest on an essentially voluntary basis, subject Corporation vs. Sadac, G.R. No. 164772, June 8,
to the minimum requirements of wage laws and other 2006)
labor and welfare legislation.( Sukhothai Cuisine and
Restaurant vs. Court of Appeals, G.R. No. 150437, Ju ly Separation pay in lieu of reinstatement
1 7, 20 06 ) Under the law, an illegally dismissed employee
is entitled to reinstatement and backwages, and if
Mere participation of a worker in a lawful strike reinstatement is no longer possible, he may be given
shall not constitute sufficient ground for termination separation pay in lieu of reinstatement. (Bunagan vs.
of his employment, even if a replacement had been Sentinel Watchman & Protective Agency, Inc., G.R. No.
hired by the employer during such lawful strike. 144376, September 13, 2006)attycdduka
In SamahangManggagawasaSulpicio Lines,
Inc.-NAFLU v. Sulpicio Lines, Inc. this Court explained Repeated rehiring of project employee
that the effects of such illegal strikes, outlined in Article At this time, we wish to allay any fears that this
264, make a distinction between workers and union decision unduly burdens an employer by imposing a duty
officers who participate therein: an ordinary striking to re-hire a project employee even after completion of
worker cannot be terminated for mere participation in an the project for which he was hired. The import of this
illegal strike. There must be proof that he or she decision is not to impose a positive and sweeping
committed illegal acts during a strike. In all cases, the obligation upon the employer to re-hire project
striker must be identified. But proof beyond reasonable employees. What this decision merely accomplishes is
doubt is not required. Substantial evidence available a judicial recognition of the employment status of a
under the attendant circumstances, which may justify the project or work pool employee in accordance with what
imposition of the penalty of dismissal, may suffice. is fait accompli, i.e., the continuous re-hiring by the
Liability for prohibited acts is to be determined on an employer of project or work pool employees who perform
individual basis. ( Sukhothai Cuisine and Restaurant vs. tasks necessary or desirable to the employer’s usual
Court of Appeals, G.R. No. 150437, Ju ly 17 , 20 06 ) business or trade. (Maraguinot, Jr. vs. National Labor
Relations Commission, G.R. No. 120969, January 22,
Elements of employer – employee relationship 1998)
The elements to determine the existence of an
employment relationship are: (a) the selection and Double probationary period - illegal
engagement of the employee (b) the payment of wages (c) The Hotel's system of double probation a
the power of dismissal, and (d) the employer’s power to transparent scheme to circumvent the plain mandate of
control. The most important element is the employer’s the law and make it easier for it to dismiss its employees
control of the employee’s conduct, not only as to the result even after they shall have already passed probation. The
of the work to be done, but also as to the means and policy of the Constitution is to give the utmost protection
methods to accomplish it. (Murillo vs. Court of Appeals to the working class when subjected to such maneuvers
and Associated Broadcasting Corporation, et. el., G.R. as the one attempted by the petitioners. This Court is
No. 164652, June 8, 2007) fully committed to that policy and has always been quick
to rise in defense of the rights of labor, as in this case.
Full backwages (Holiday Inn Manila vs. National Labor Relations
Finally came our ruling in Bustamante which Commission, G.R. No. 109114, September 14, 1993)
superseded Pines City Educational Center and allowed
full recovery of backwages without deduction and Probationary Period of Private School Teachers
without qualification pursuant to the express provisions Section 93 of the 1992 Manual of Regulations
of Article 279 (now Art 294) of the Labor Code, as for Private Schools, provides that full-time teachers who

11
have satisfactorily completed their probationary period employees for loss of confidence, employers are given
shall be considered regular or permanent. Furthermore, wider latitude of discretion, there must, however, be
the probationary period shall not be more than six substantial proof thereof. The employer’s evidence must
consecutive regular semesters of satisfactory service for clearly and convincingly establish the facts and incidents
those in the tertiary level. Thus, the following requisites upon which the loss of confidence may fairly be made to
must concur before a private school teacher acquires rest.(Wah Yuen Restaurant, vs. Jayona, G.R. No.
permanent status: (1) the teacher is a full-time teacher; 159448, December 16, 2005)
(2) the teacher must have rendered three consecutive
years of service; and (3) such service must have been Twin notice requirement
satisfactory. (Saint Mary’s University vs. Court of Procedural due process requires the employer
Appeals, G.R. No. 157788, March 08, 2005) to give the employee two notices. The first is to apprise
him of the particular acts or omissions for which his
Distinction between a dismissal just cause and a dismissal is sought, and the second is to inform him of
dismissal for authorized cause the decision to terminate him.Failure to comply with
The clear-cut distinction between a dismissal for these mandatory procedural requirements taints the
just cause under Article 282 and a dismissal for dismissal with illegality and any judgment rendered by
authorized cause under Article 283 is further reinforced the employer without compliance therewith can be
by the fact that in the first, payment of separation pay, as considered void and inexistent. It should be emphasized
a rule, is not required, while in the second, the law that due process must be observed in effecting an
requires payment of separation pay. (Jaka Food employee’s dismissal because the dismissal of an
Processing Corporation vs. Pacot, et. al., G.R. No. employee affects not only his position but also his
151378, March 28, 2005) means of livelihood and his dependents’ sustenance.
Thus, strict adherence to the requirements set forth in
Serious Misconduct the Labor Code, as amended, is essential. (Wah Yuen
In order to constitute serious misconduct which Restaurant, vs. Jayona, G.R. No. 159448, December
will warrant the dismissal of an employee under 16, 2005)
paragraph (a) of Article 282 (now Art. 297) of the Labor
Code, it is not sufficient that the act or conduct Suspension beyond 30 days – constructive
complained of has violated some established rules or dismissal
policies. It is equally important and required that the act Clearly, constructive dismissal had already set in
or conduct must have been performed with wrongful when the suspension went beyond the maximum period
intent. (Moreno vs. San Sebastian College – Recoletos, allowed by law. Section 4, Rule XIV, Book V of the
Manila, G.R. No. 175283, March 28, 2008) Omnibus Rules provides that preventive suspension
cannot be more than the maximum period of 30 days.
Willful disobedience Hence, after the 30-day period of suspension, the
However, willful disobedience of the employer’s employee must be reinstated to his former position
lawful orders, as a just cause for dismissal of an because suspension beyond this maximum period
employee, envisages the concurrence of at least two amounts to constructive dismissal. (Hyatt Taxi Services
requisites: (1) the employee's assailed conduct must Inc. vs. Catinoy, G.R. No. 143204, June 26, 2001)
have been willful, that is, characterized by a wrongful
and perverse attitude; and (2) the order violated must If dismissal is too harsh suspension can be imposed
have been reasonable, lawful, made known to the We cannot but agree that the extreme penalty of
employee and must pertain to the duties which he had dismissal was too harsh and manifestly disproportionate
been engaged to discharge. (Bascon vs. Court of to the infraction committed, which appears to have been
Appeals, G.R. No. 144899, February 5, 2004) fully explained, and, in fact, to be not inexcusable under
the circumstances. There was no dishonesty, no
Abandonment demonstration of such moral perverseness as would
Abandonment is the deliberate and unjustified have justified the claimed loss of confidence attendant to
refusal of an employee to resume his employment. It is a the job. Perhaps, individual petitioner should first have
form of neglect of duty, hence, a just cause for been given a mere warning, then a reprimand or even a
termination of employment by the employer. For a valid suspension, but certainly not outright dismissal from
finding of abandonment, these two factors should be employment. One must keep in mind that a worker’s
present: (1) the failure to report for work or absence employment is property in the constitutional sense, and
without valid or justifiable reason; and (2) a clear he cannot be deprived thereof without due process and
intention to sever employer-employee relationship, with unless it was commensurate to his acts and degree of
the second as the more determinative factor which is moral depravity. (Coca-Cola Bottlers, Phils., Inc. vs.
manifested by overt acts from which it may be deduced Kapisanan ng MalayangManggagawasa Coca- Cola -
that the employees has no more intention to work. The FFW, G.R. No. 148205, February 28, 2005)
intent to discontinue the employment must be shown by
clear proof that it was deliberate and unjustified. Valid termination due to retrenchment
(Agabon vs. National Labor Relations Commission, G.R. For a valid termination due to retrenchment, the
No. 158693 November 17, 2004) law requires that written notices of the intended
retrenchment be served by the employer on the worker
Requisites for dismissal due to loss of trust and and on the Department of Labor and Employment at
confidence least one (1) month before the actual date of the
Thus, in order to be a valid cause for dismissal, retrenchment. The purpose of this requirement is to give
loss of confidence should not be (a) simulated, (b) used employees some time to prepare for the eventual loss of
as a subterfuge for causes which are improper, illegal or their jobs, as well as to give DOLE the opportunity to
unjustified, (c) arbitrarily asserted in the face of ascertain the verity of the alleged cause of termination.
overwhelming evidence to the contrary, and (d) a mere (EMCO Plywood Corporation vs. Abelgas et. al., G.R.
afterthought to justify earlier action taken in bad faith. No. 148532, April 14, 2004)
While in the termination of services of managerial

12
Amount of separation pay half (1/2) month salary for every year of service, a
As to the amount of separation pay, this Court fraction of at least six (6) months being considered as
has ruled that separation pay may be computed at one one whole year.
(1) month pay, or one (1/2) month pay for every year of Unless the parties provide for broader
service, whichever is higher. It is noteworthy that the inclusions, the term one half (1/2) month salary shall
separation pay being awarded in the instant case is due mean fifteen (15) days plus one-twelfth (1/12) of the 13 th
to illegal dismissal; hence, it is different from the amount month pay and the cash equivalent of not more than five
of separation pay provided for in Article 283 in case of (5) days of service incentive leaves. (Sta. Catalina
retrenchment to prevent losses or in case of closure or College vs. National Labor Relations Commission, G.R.
cessation of the employer’s business, in either of which No. 144483, November 19, 2003)
the separation pay is equivalent to at least one (1) month
or one-half (1/2) month pay for every year of service, Computation of retirement pay
whichever is higher. (F.F. Marine Corporation vs. The For the purpose of determining the minimum
Honorable Second Division National Labor Relations retirement pay due an employee under this Rule, the
Commission, G.R. No. 152039, April 08, 2005) term “one-half month salary” shall include all the
following: (a) Fifteen (15) days salary of the employee
Disease as a ground for dismissal based on his latest salary rate. (b) The cash equivalent
The burden of proving the validity of the of not more than five (5) days of service incentive leave;
dismissal rests on the employer. As such, the employer (c) One-twelfth of the 13th month pay due an employee;
must prove that the requisites for a valid dismissal due to (d) All other benefits that the employer and employee
a disease have been complied with. In the absence of may agree upon that should be included in the
the required certification by a competent public health computation of the employee’s retirement pay. The
authority, this Court has ruled against the validity of the foregoing rules are clear that the whole 5 days of SIL are
employee’s dismissal. (Manly Express Inc. vs. Payong, included in the computation of a retiring employees’ pay.
Jr., G.R. No. 167462, October 25, 2005) (Enriquez Security Services, Inc. vs. Cabotaje, G.R. No.
147993, July 21, 2006)
No separation pay upon resignation – general rule
The general rule is that an employee who Compulsory Retirement
voluntarily resigns from employment is not entitled to An employer is free to impose a retirement age
separation pay unless, however, there is a stipulation for less than 65 for as long as it has the employees’
payment of such in the employment contract or consent. Stated conversely, employees are free to
Collective Bargaining Agreement (CBA), or payment of accept the employer’s offer to lower the retirement age if
the amount is sanctioned by established employer they feel they can get a better deal with the retirement
practice or policy.(Travelaire& Tours Corp. vs. National plan presented by the employer. Thus, having
Labor Relations Commission, G.R. No. 131523, August terminated petitioner solely on the basis of a provision of
20, 1998) a retirement plan which was not freely assented to by
her, respondent was guilty of illegal dismissal.(Jaculbe
Retirement vs. Silliman University, G. R. No. 156934, March 16,
Retirement is a different specie of termination of 2007,Cercado vs. Uniprom, Inc. October 13, 2010)
employment from dismissal for just or authorized causes
under Articles 282 and 283 of the Labor Code. While in Employee’s contribution must be deducted first
all three cases, the employee to be terminated may be Retirement benefits, on the other hand, are
unwilling to part from service; there are eminently higher intended to help the employee enjoy the remaining years
standards to be met by the employer validly exercising of his life, releasing him from the burden of worrying for
the prerogative to dismiss for just or authorized causes. his financial support, and are a form of reward for his
In those two instances, it is indispensable that the loyalty to the employer.Since the computed amount of
employer establishes the existence of just or authorized her retirement pay is much lower than that provided
causes for dismissal as spelled out in the Labor Code. under the law, she is entitled to receive the difference
Retirement, on the other hand, is the result of a bilateral between the actual amount of her retirement benefits as
act of the parties, a voluntary agreement between the required by law and that provided for under the PERAA.
employer and the employee whereby the latter after (Sta. Catalina College vs. National Labor Relations
reaching a certain age agrees and/or consents to sever Commission, G. R. No. 144483, November 19, 2003)
his employment with the former.(Cainta Catholic School
vs. Cainta Catholic School Employees Union, G.R. Retirement of underground miners
No.151021, May 4, 2006, 489 SCRA 468[2006]) On February 26, 1998, Republic Act No. 8558
was signed into law and amended Article 287 of the
Qualification for retirement Labor Code and provided for the retirement benefits of
In case of retirement, the employee shall be underground miners.Based on R.A. 8558, “n
entitled to receive such retirement benefits as he may underground mining employee upon reaching the age of
have earned under existing laws and any collective fifty (50) years or more, but not beyond sixty (60) years
bargaining agreement and other agreements: Provided, which is hereby declared the compulsory retirement age
however, That an employee’s retirement benefits under for underground mine workers, who has served at least
any collective bargaining and other agreements shall not five (5) years as underground mine worker, may retire
be less than those provided herein. and shall be entitled to all the retirement benefits
In the absence of a retirement plan or provided for in this Article.
agreement providing for retirement benefits of
employees in the establishment, an employee upon Prescription
reaching the age of sixty (60) years or more, but not Article 305 Offenses penalized under this Code
beyond sixty-five (65) years which is hereby declared the and the rules and regulations issued pursuant thereto
compulsory retirement age, who has served at least five shall prescribe in three (3) years.
(5) years in the said establishment, may retire and shall The Labor Code, however, does not contain any
be entitled to retirement pay equivalent to at least one- provisions on the mode of computation of the three-year

13
prescriptive period it established.Prescription shall begin Clearly then, when one is arbitrarily and unjustly
to run from the day of the commission of the violation of deprived of his job or means of livelihood, the action
the law, and if the same be not known at the time, from instituted to contest the legality of one's dismissal from
the discovery thereof and institution of judicial employment constitutes, in essence, an action
proceedings for its investigation and punishment.The predicated "upon an injury to the rights of the plaintiff,"
term of prescription shall not run when the offender is as contemplated under Art. 1146 of the New Civil Code,
absent from the Philippine Archipelago. (People of the which must be brought within four [4] years. (Callanta
Philippines vs. Duque, G.R. No. 100285, August 13, vs. Carnation Philippines, Inc., G.R. No. 70615 October
1992) 28, 1986)
In illegal dismissal cases, the employee
concerned is given a period of four years from the time
of his dismissal within which to institute a complaint. This
is based on Article 1146 of the New Civil Code which
states that actions based upon an injury to the rights of
Prescription period for money claims the plaintiff must be brought within four years. Thus, the
Article 291 (now Art. 306) of the Labor Code four-year prescriptive period shall be counted and
which provides that all money claims arising from computed from the date of the employee's dismissal up
employer-employee relationship shall be filed within to the date of the filing of complaint for unlawful
three (3) years from the time the cause of action termination of employment. (Victory Liner, Inc. vs. Race,
accrued. (Central Negros Electric Cooperative G.R. No. 164820, March 28, 2007)
(CENECO), Inc. vs. National Labor Relations
Commission, G.R. No. 106246, September 1, 1994) 13th month pay for certain types of employees
Presidential Decree No. 851 mandating all
Prescription for all money claims employers to pay their rank and file employees
What rules on prescription should apply in cases regardless of the nature of their employment and
like this one has long been decided by this Court. In irrespective of the method by which their wages are paid
illegal dismissal, it is settled, that the ten-year provided they worked for at least one (1) month during a
prescriptive period fixed in Article 1144 of the Civil Code calendar year. The 13th Month Pay must be given to the
may not be invoked by petitioners, for the Civil Code is a employees not later than December 24 of every year.
law of general application, while the prescriptive period The 13th Month Pay is computed by dividing the total
fixed in Article 292 of the Labor Code [now Article 291] is basic salary earned for the year exclusive of overtime,
a SPECIAL LAW applicable to claims arising from holiday, and night shift differential pay divided by 12.
employee-employer relations.The language of Art. 291 of (a) Employees Paid by Results. — Employees
the Labor Code does not limit its application only to who are paid on piece work basis are by law entitled to
"money claims specifically recoverable under said Code" the 13th month pay.
but covers all money claims arising from an employee- Employees who are paid a fixed or guaranteed
employer relations" (Citing Cadalin vs. POEA wage plus commission are also entitled to the mandated
Administrator, 238 SCRA 721, 764 [1994]; and Uy vs. 13th month pay, based on their total earnings during the
National Labor Relations Commission, 261 SCRA 505, calendar year, i.e., on both their fixed or guaranteed
515 [1996]). . . . wage and commission.
It should be noted further that Article 291 of the (b) Those with Multiple Employers. —
Labor Code is a special law applicable to money claims Government employees working part time in a private
arising from employer-employee relations; thus, it enterprise, including private educational institutions, as
necessarily prevails over Article 1144 of the Civil Code, a well as employees working in two or more private firms,
general law. Basic is the rule in statutory construction whether on full or part time basis, are entitled to the
that "where two statutes are of equal theoretical required 13th month pay from all their private employers
application to a particular case, the one designed regardless of their total earnings from each or all their
therefore should prevail." employers.
We base our conclusion not on Article 1144 of (c) Private School Teachers. — Private school
the Civil Code but on which sets the prescription period teachers, including faculty members of universities and
at three (3) years and which governs under this colleges, are entitled to the required 13th month pay,
jurisdiction. (Laureano vs. Court of Appeals, G.R. No. regardless of the number of months they teach or are
114776, February 2, 2000) paid within a year, if they have rendered service for at
least one (1) month within a year.
Prescription period for illegal dismissal
Verily, the dismissal without just cause of an Solo Parent Welfare Act (Republic Act No. 8972)
employee from his employment constitutes a violation of The employer shall provide for a flexible working
the Labor Code and its implementing rules and schedule for solo parents provided that the same shall
regulations. Such violation, however, does not amount to not affect individual and company productivity
an "offense" as understood under Article 291 of the No employer shall discriminate against any solo
Labor Code. In its broad sense, an offense is an illegal parent employee with respect to terms and conditions of
act which does not amount to a crime as defined in the employment on account of his/her status. In addition to
penal law, but which by statute carries with it a penalty leave privileges under existing laws, parental leave of
similar to those imposed by law for the punishment of a not more than seven (7) working days every year shall
crime. be granted to any solo parent employee who has
Indeed there is, merit in the contention of rendered service of at least one (1) year.
petitioner that the four [4]-year prescriptive period under
Article 1146 of the New Civil Code, applies by way of Books Authored by Atty. Duka
supplement, in the instant case, to wit: Art. 1146. The 1. Labor Laws and Social Legislations: A
following actions must be instituted within four years. [1] Barrister’s Companion (Rex Bookstore, 2016)
Upon an injury to the lights of the plaintiff. 2. Constitutional Law: A Barrister’s
Companion (Rex Bookstore, 2010)
14
3. Rizal, His Legacy to the Philippine
Society (Anvil Publishing House, 2010)
4. The Struggle for Freedom: A Textbook in
Philippine History (Rex Bookstore, 2008)
5. The Law and the Teaching Profession in
the Philippines (C and E Publishing, 2008)
6. Philosophy of Education (Rex Bookstore,
Inc., 2006, 1999)
7. Reviewer for the Civil Service
Examination (Manila Review Institute, Inc., 2001)
8. World Geography (Rex Bookstore, Inc.,
2006, 2001)
9. Introduction to Asia: History, Culture and
Civilization (Rex Bookstore, 2005)
10. Reviewer for the Licensure Examination
for Teachers (MRI, 2006, 1998)
11. Historical, Philosophical and Legal
Foundations of Education
(Phoenix Publishing House, 1997)
12. Introduction to Sociology (Anvil Publishing),
2014

Give and it will be given to you. A good


measure, pressed down, shaken together and
running over, will be poured into your lap. For with
the measure you use, it will be measured to you.
(Luke 6:38)
Those who are in possession of this review
material have the obligation to share it with others.
God bless you as you take the Bar Examinations –
Atty. Cecilio D. Duka

15

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