SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!
PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
 ART 1. NAME OF DECREE
 LABOR LEGISLATION - Consists of
statutes, regulations and jurisprudence
governing the relations between capital and
labor, by providing for certain standards of terms
and conditions of employment or providing a
legal framework within which these terms and
conditions and the employment relationship may
be negotiated, adjusted and administered. It is
divided into labor standards and labor relations.
 LABOR STANDARDS - Are the minimum
requirements prescribed by existing laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.
 LABOR RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
- The law which
seeks to stabilize the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
 ART. 2. DATE OF EFFECTIVITY
 The Labor Code took effect on November 1,
1974 (six months after its promulgation on May
1,1974)
 SEVEN (7) BASIC RIGHTS OF
WORKERS AS GUARANTEED BY
THE CONSTITUTION (OCESHLP):
1. Right to Organize
2. Right to Conduct Collective Bargaining
or Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities including strike in accordance
with law
4. Right to Enjoy Security of Tenure
5.Right to Work Under Humane Conditions
6.Right to Receive a Living Wage
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
7.Right to Participate in Policy &
Decision-Making Processes affecting
their rights and benefits as may be
provided by law
 RELATED LAWS:
1. CIVIL CODE: see Arts. 1700, 1701and 1703
2. REVISED PENAL CODE: Art. 289
3. OTHERS: SSS Law, GSIS Law, Agrarian
Reform Law, the 13th month pay law, the
Magna Carta for Public Health Workers, etc.
 RATIONALE :
- The raison d’ etre of labor laws is the POLICE
POWER of the State
 ART 3. DECLARATION OF BASIC
POLICY
The State shall afford protection to labor,
promote full employment, ensure equal work
opportunities regardless of sex, age or creed,
and regulate the relations between workers and
employers. The State shall assure the right of
workers to self-organization, collective
bargaining, security of tenure, and just and
humane conditions of work.
 EMPLOYER - one who employs the services
of others; one for whom employees work and
who pays their wages or salaries.
 EMPLOYEE - one who works for an
employer; a person working for salary or wages
 ART 4. CONSTRUCTION IN FAVOR OF
LABOR
 CONSTRUCTION IN FAVOR OF LABOR
CLAUSE -this is with a view to apply the Code
to the greater number of employees to enable
them to avail of the benefits under the law
(Abella vs. NLRC). The working man’s welfare
should be the primordial consideration.
- This rule is applicable if there is a doubt as
to the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its express terms.
- These laws should be interpreted with a
view to the fact that they are remedial in
nature, they are enacted to better the lot
 SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of the

laboring class.  ART 6. APPLICABILITY
- Reservation of essential attributes of  AGRICULTURAL OR FARM WORKER -
sovereign power is read into contracts
one employed in an agricultural or farm
as a postulate of the legal order.
enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
- Courts adopt a liberal approach that
the employer, such as cultivation and tillage of
favors the exercise of labor rights. the soil, dairying, growing and harvesting of any
The mandate under Art. 4 is simply to agricultural and horticultural commodities, the
resolve doubt, if any, in favor of labor. If raising of livestock or poultry, and any activities
there is no doubt in implementing and performed by a farmer as an incident to or in
interpreting the law, labor will enjoy no conjunction with such farming operations.
built-in advantage and the law will have
to be applied as it is. - There may be in one employer both
agricultural as well as industrial workers.
 MANAGEMENT RIGHTS: (CPST)
- PURPOSE of the provision: intended to
C Right to conduct business encourage workers to seek employment in
P Right to prescribe rules agricultural enterprises instead of migrating
S Right to select employees to already overcrowded urban areas to find
T Right to transfer or discharge work in industrial establishments
employees
- The LC applies to all workers, whether
 MANAGEMENT PREROGATIVE agricultural or non-agricultural, including
employees in a government corporation
Except as limited by special laws, an incorporated under the Corporation Code.
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including: FARM
HIRING, WORK ASSIGNMENTS, EMPLOYER- TENANCY
WORKING METHODS, TIME PLACE AND FARM RELATIONSHIP
MANNER OF WORK, TOOLS TO BE USED, WORKER
PROCESSES TO BE FOLLOWED,
RELATIONSHI
SUPERVISION OF WORKERS, WORKING
REGULATIONS, TRANSFER OF EMPLOYEES,
P
WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL - The lease is one - It is the landowner
of labor with the who is the lessor
AND RECALL OF WORKERS. (HW5T2PLSD)
agricultural laborer and the tenant the
as the lessor of his lessee of
- Thus, so long as management services and the agricultural land
prerogatives are exercised in good faith farm employer as
for the advancement of the employer’s the lessee
interest and not for the purpose of
defeating or circumventing the rights of - The agricultural - The tenant derives
employees under special law or under worker works for his income from the
valid agreements, it shall be upheld. the farm employer agricultural produce
and for his labor he or harvest
 ART 5. RULES AND REGULATIONS receives a salary or
wage, regardless of
whether the
- The rules and regulations issued by the DOLE
employer makes a
shall become effective 15 days after
profit.
announcement of their adoption in
newspapers of general circulation.

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 70

CHAPTER II
EMANCIPATION OF TENANTS
(Note: not included as per SC Memo)
 ART 7-11
- Share tenancy has been abolished
placing in its stead leasehold system.
- Under Art. 8, the land covered by operation
land transfer must be private agricultural
land, tenanted, primarily devoted to rice
and/or corn, and more than seven
hectares in are.
 Present retention limits:
- 5 hectares per landowner and 3 hectares
per child provided the child is:
1. Is at least 15 years of age; and
2. Actually tilling the land or directly managing
the farm
 EXCEPTIONS:
- those covered by homestead patents
- those covered by PD 27
 EMANCIPATION PATENT - is the title issued
to the tenant upon compliance with all the
requirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
 PROHIBITION AGAINST ALIENATION IS
INTENDED TO:
1. Preserve the landholding in the hands of the
owner-tiller and his heirs;
2. minimize land speculation; and
3. prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
 ART 13. DEFINITIONS
 WORKER -any member of the labor force,
whether employed or unemployed
 RECRUITMENT AND PLACEMENT - any act
of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for profit
or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
-The number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. The proviso merely
creates the presumption.
 ART 16. PRIVATE RECRUITMENT
 ENTITIES AUTHORIZED TO RECRUIT
1. Public employment offices
2. Private recruitment entities; private
employment agencies
3. Shipping or manning agents or
representatives
4. The POEA
5. Construction contractors if authorized by the
DOLE and the Construction Industry
Authority
6. Members of the diplomatic corps (but hirings
must also go thru POEA)
7. Other persons or entities as may be
authorized by the DOLE secretary
 DOCUMENTATION OF WORKERS:
1. Contract Processing – workers hired thru the
POEA shall be issued the individual
employment contract and such other
documents as may be necessary for travel
2. Passport Documentation
3. Visa Arrangement
 ART 17. (POEA)
- POEA has taken over the functions of the
OEDB
 ADJUDICATORY FUNCTIONS OF THE
POEA :
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
b. Disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Filipino Migrant Workers
 JURISDICTION TRANSFERRED TO THE
LABOR ARBITERS OF THE NLRC :
a. claims arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
 Venue – Money claims or claims for damages
should be filed before the Regional Arbitration
branch of the NLRC where the complainant
resides or where the principal office of the
respondent/employer is situated, at the option of
the complainant.
 Compromise Agreement - Consistent with
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows
resolution by compromise of cases filed with the
NLRC.
 PREMATURE TERMINATION OF
CONTRACT - Where the worker’s employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired
portion of their employment contract. (Tierra
Int’l Construction Corp. vs. NLRC).
HOWEVER, under R.A. 8042, if the illegal
dismissal took place on or after July 15, 1995,
the illegally dismissed overseas worker shall be
entitled to the full reimbursement of his
placement fee with interest at the rate of 12%
per annum plus salary for the unexpired
portion of his employment contract or for 3
mos. for every year of the unexpired term
whichever is LESS.
- Claims for death and burial benefits
involving seamen OCWs which the POEA
has jurisdiction are not the same as the
claims against the State Insurance Fund
of the LC.
- The basis for the award of backwages is the
parties” employment contract, stipulating the
wages and benefits.
- The fact that the employee has signed a
satisfaction receipt does not result in
waiver; the law does not consider as
valid any agreement to receive less
compensation than what the worker is
entitled to recover.
(MR Yard Crew Union vs. PNR)
 ART 18. BAN ON DIRECT-HIRING
 Direct hiring of Filipino workers by a
foreign employer is not allowed.
 EXCEPTIONS :
1. the members of the diplomatic corps;
2. international organizations;
3. such other employers as may be allowed by
the Department of Labor and employment
4. name hirees – individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
 RATIONALE OF THE PROHIBITION
- Filipino workers hired directly by a
foreign employer, without government
intervention may not be assured of the
best possible terms and conditions of
work. The foreign employer must also be
protected and may chance upon a Filipino
worker who do not possess sufficient
knowledge for which he is employed.
 MINIMUM EMPLOYMENT CONDITIONS
OF OVERSEAS EMPLOYMENT:
1. Guaranteed wages for regular working hours
and overtime pay for services rendered
beyond regular working hours in accordance
with the standards established by the
Administration
2. Free Transportation from point of hire to site
of employment and return;
3. Free emergency medical and dental
treatment and facilities;
4. Just causes for termination of the contract or
of the services of the workers;
5. Workmen’s compensation benefits and war
hazard protection;
6. Repatriation of worker’s remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
7. Assistance on remittance of worker’s
salaries, allowances or allotments to his
beneficiaries; and
8. Free and adequate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.
 ART 22. MANDATORY REMITTANCE
OF FOREIGN EXCHANGE EARNINGS
 MANDATORY REMITTANCE
REQUIREMENTS:
1. Seamen or mariners: 80% of the basic
salary;
2. Workers for Filipino Contractors and
Construction Companies: 70% of the basic
salary;
3. Doctors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities: same
as #2
4. All other professionals without board and
lodging: 50% of the basic salary;
5. Domestic and other service of workers; 50%
of the basic salary.
 ART 25. PRIVATE SECTOR
PARTICIPATION IN THE RECRUITMENT
AND PLACEMENT OF WORKERS
 QUALIFICATIONS FOR PARTICIPATION
IN THE OVERSEAS EMPLOYMENT
PROGRAM:
1. Filipino citizens, partnerships or corporations
at least 75% of the authorized and voting
capital stock of which is owned and
controlled by Filipino citizens;
2. Minimum capitalization of 1M in case of
single proprietorship or partnership and a
minimum of 1M paid-up capital for
corporations;
3. Those not otherwise disqualified by law or
these guidelines to engage in the
recruitment and placement of workers for
overseas employment
 DISQUALIFICATIONS:
1. Travel agencies and sales agencies of
airline companies;
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
3. Corporations and partnerships, when any of
its officers, members of the board or
partners, is also an officer, member of the
board or partner of a corporation engaged in
the business of a travel agency.
4. Persons, partnerships, or corporations which
have derogatory records;
5. Persons employed in the Department of
Labor or in other government agencies
directly involved in overseas employment
program and their relatives within the 4 th
degree of consanguinity or affinity; or
6. Those whose license has been previously
canceled or revoked.
CHAPTER II
REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
 ART 29. NON-TRANSFERABILITY OF
LICENSE OR AUTHORITY
- No license or authority shall be used
directly or indirectly by any person other
than the one in whose favor it was issued
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
- Licensees or holders of authority or their
duly authorized representatives may as a
rule, undertake recruitment and placement
activities only at their authorized official
addresses.
- Change of ownership or relationship of
single proprietorship licensed to engage
in overseas employment shall cause the
automatic revocation of the license.
- All overseas landbased workers shall be
provided both life and personal accident
insurance.
 GROUNDS FOR DISCIPLINARY ACTION
(Under the MWA of 1995) ;
1. Commission of a felony punishable by the
laws of the Philippines or by the host
country;
2. Drug addiction or possession or trafficking of
prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the laws of
the of the host country prohibit the same;
5. Gambling, especially where the laws of the
host country prohibit the same;
6. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actions;
7. Creating trouble at the worksite or in the
vessel;
8. Embezzlement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly
weapons;
13. Unjust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agency; and
14. Violation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.
 ART 31. BONDS
- Cash bond filed by applicants for license
or authority is not subject to garnishment
by judgment creditor of agency
 ART 32. FEES TO BE PAID BY
WORKERS
- Suspension or cancellation of licenses may
include award of damages to repair the
injury caused to its victims.
 ART 34. PROHIBITED PRACTICES
- A supplementary contract beneficial to
worker not violative of protection afforded
by the State to workers.
 ART 35. SUSPENSION AND/OR
CANCELLATION OF LICENSE OR
AUTHORITY
 NON-LICENSEE OR NON-HOLDER OF
AUTHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the Secretary of Labor, or whose
license or authority has been suspended,
revoked, or cancelled by the POEA and the
Secretary.
CHAPTER III
MISCELLANEOUS PROVISIONS
 ART 38. ILLEGAL RECRUITMENT (as
per RA 8042 otherwise known as the
Migrant Workers’ Act of 1995)
 ILLEGAL RECRUITMENT - Any act of
canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
PROVIDED that any such non-licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged. It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.
 PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
C to charge or accept amount beyond
amount allowed by law
F to furnish or publish false notice or
information in relation to Recruitment
and Placement
G to give any false notice and information
or commit any act of misrepresentation
to secure license or authority
I Induce or attempt to induce workers to
quit employment to offer him another
except if the transfer is to liberate a
worker from oppressive terms and
conditions of employment (NOTE: it is
not necessary that worker was actually
induced or did quit employment)
I to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the Phil.
O Obstruct or attempt to obstruct
inspection by Secretary
F Fail to file reports
S Substitute or alter employment contracts
B Become officer or Board member of
corporation engaged in travel agency
W Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
F Failure to actually deploy without valid
reason as determined by the DOLE
F Failure to reimburse expenses incurred
by the worker in connection with his
 documentation and processing for
purposes of deployment, in cases where
the deployment does not actually take
place without the worker’s fault
 THE QUALIFYING CIRCUMSTANCES
THAT WOULD MAKE ILLEGAL
RECRUITMENT AS A CRIME
INVOLVING ECONOMIC SABOTAGE
ARE :
(a) When committed by a SYNDICATE i.e.,
if it is carried out by a group of three (3)
or more persons conspiring and
confederating with one another; or
(b) When committed in a LARGE SCALE
i.e., if it is committed against three (3) or
more persons
 VENUE OF ACTIONS ON ILLEGAL
RECRUITMENT:
1. RTC of the province or city where the
offense was committed; or
2. where the offended party resides at the time
of the commission of the offense
 at the option of the complainant
- These circumstances only qualify. They do
not define the offense themselves
- Recruitment and placement activities of
agents or representatives appointed by a
licensee, whose appointments were not
previously authorized by the POEA shall
likewise constitute illegal recruitment.
- ART. 38 ( c ) declared unconstitutional
since only a judge may issue search
warrant/ warrant of arrest. The Sec. Of
Labor may only recommend not issue.
However, Closure of establishments of
illegal recruiters may still be ordered by
Secretary of Labor, same being essentially
administrative and regulatory in nature.
(Salazar vs. Achacoso and Marquez)
 PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.
TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS
 ART 40. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the DOLE upon
determination of the non-availability of a person
in the Philippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.
- Foreigners may not be employed in certain
nationalized business.
- a non-resident alien worker and the
employer shall bind themselves to train at least
2 Filipino understudies.
 PROHIBITION AGAINST EMPLOYMENT
OF ALIENS
Section 2-A of the Anti-Dummy Law prohibits
the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the exercise or enjoyment of which property or
business the exercise or enjoyment of which is
expressly reserved by the Constitution or the
laws to citizens of the Philippines or to
corporations or associations at least 60% of the
capital of which is owned by such citizens.
 EXCEPTIONS TO THE
PROHIBITION:
a. where the Secretary of Justice specifically
authorizes the employment of technical
personnel; or
b. where the aliens are elected members of
the board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.
BOOK TWO
HUMAN RESOURCES
DEVELOPMENT
 TITLE I  ON-THE-JOB TRAINING – the practical work
NATIONAL MANPOWER experience through actual participation in
productive activities given to or acquired by an
DEVELOPMENT PROGRAM apprentice

CHAPTER I  HIGHLY TECHNICAL INDUSTRIES – trade,

NATIONAL POLICIES AND business, enterprise, industry or other activity,
ADMINISTRATIVE MACHINERY FOR which is engaged in the application of advanced
technology
THEIR IMPLELENTATION
 ART 59. QUALIFICATIONS OF
 ART 45. DEFINITIONS APPRENTICES
 MANPOWER - that portion of the nation’s
 Qualifications of an Apprentice
population which has actual or potential
capability to contribute directly to the production
of goods and services. 1. at least 15 years of age; provided those
who are at least 15 years of age but less
 ENTREPRENEURSHIP - training for self- than eighteen may be eligible for
employment or assisting individual or small apprenticeship only in non-hazardous
industries within the purview of this the LC. occupations and the apprenticeship
agreement shall be signed in his behalf by
the parent or guardian or authorized
TITLE II representative of DOLE.
TRAINING AND EMPLOYMENT OF 2. vocational aptitude/ capacity for appropriate
SPECIAL WORKERS test
3. ability to comprehend and follow oral and
CHAPTER I written instructions
APPRENTICES  ART 60. EMPLOYMENT OF
APPRENTICES
Types of Special Workers:
- Only employers in highly technical
1. Apprentice industries may hire apprentices and only in
2. Learners apprenticeable occupations as
3. Handicapped determined by the Sec. Of Labor

 Requisites for a VALID

 ART 58. DEFINITION OF TERMS
APPRENTICESHIP
 APPRENTICESHIP - practical training on the 1. QUALIFICATIONS OF THE APPRENTICE
job supplemented by related theoretical 2. APPRENTICESHIP AGREEMENT DULY
instruction EXECUTED AND SIGNED PROVIDING FOR
COMPENSATION NOT LESS THAN 75% OF
 APPRENTICE - worker who is covered by a THE APPLICABLE MINIMUM WAGE, EXCEPT
written apprenticeship agreement with an ON-THE-JOB TRAINING (OJT)
individual employer or any of the entities 3.APPRENTICESHIP PROGRAM DULY
recognized under this chapter APPROVED BY DOLE
4. PERIOD OF APPRENTICESHIP SHALL NOT
 APPRENTICEABLE OCCUPATION - any EXCEED 6 MONTHS.
trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction

 ART 71. DEDUCTIBILITY OF TRAINING

 APPRENTICESHIP AGREEMENT - an COSTS
employment contract wherein the employer
binds himself to train the apprentice and the  Requisites for tax deductions in case
apprentice in turn accepts the terms of training employers have apprenticeship
programs:
 completion of
1. Program duly recognized by the Department learnership
of Labor
2. Deduction shall not exceed 10% of direct 4. In case of 4. Learner is
labor wage pretermination of considered as a
3. Pay his apprentices the minimum wage the apprenticeship regular employee
agreement, the in case of
 ART 72. APPRENTICES WITHOUT worker is not pretermination of
COMPENSATION considered as a contract after 2
regular employee mos. of training
 Apprentices who may be hired without and the dismissal
is without fault of
compensation:
learner
1.those whose training on the job is
5. Highly technical 5. Semi-skilled /
required by the school;
industries and only industrial
2.Training Program Curriculum;
in industrial occupations
3.Requisite for Graduation; or
occupation
4.A requisite for Board Examination
- Learners in piecework/ incentive - rate
jobs are to be paid in full for the work done.
CHAPTER II
LEARNERS
CHAPTER III
 ART 73. LEARNERS DEFINED HANDICAPPED WORKERS
 LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations  ART 78. DEFINITION
which are non-apprenticeable and which may be
learned thru practical training on the job in a  HANDICAPPED WORKERS - Are those
relatively short period of time which shall not whose earning capacity is impaired by age or
exceed 3 mos. physical or mental deficiency or injury.

- Subject to the provisions of the Code,

APPRENTICESHIP LEARNERSHIP handicapped workers may be hired as
regular workers, apprentices or learners
1. Hiring of persons if their handicap is not such as to
1. Practical training on
as trainees in effectively impede the performance of job
the job
semi-skilled and operations in the particular occupations for
supplemented by
other industrial which they were hired.
related theoretical
instruction. occupations which
are non- - qualified disabled employee shall be
apprenticeable and subject to the same terms and conditions
which may be of employment and the same
learned thru compensation, privileges, benefits, fringe
practical training benefits, incentives or allowances as a
on the job in a qualified able-bodied person. Even a
relatively short handicapped worker can acquire the
period of time. status of a regular employee.

2. Not less than 3 2. Practical training  Duration of employment - no minimum, no

months practical on the job not to maximum. Dependent on agreement but is
training on the job exceed 3 mos. necessary that there is a specific duration
but not more than 6
months BOOK THREE
CONDITIONS OF EMPLOYMENT
3. No Commitment to 3. With Commitment
hire to employ the TITLE I
learner as regular
employee if he
WORKING CONDITIONS AND REST
desires upon PERIODS

CHAPTER I
HOURS OF WORK
 ART 82. COVERAGE
 ELEMENTS OF EMPLOYER-
EMPLOYEE RELATIONSHIP:
1. selection and engagement of the
employee
2. the payment of wages
3. the power of dismissal
4. the employer’s power to control the
employee (with respect to the means
and methods by which the work is to
be accomplished)
- The last element as mentioned above is
what is known as the CONTROL TEST -
whether the employer controls or has
reserved the right to control the employee
not only as to the result of the work to be
done but also as to the means and methods
by which the same is to be accomplished.
This last element is the most important index
of the existence of the relationship.
 EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the “hirer” who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
 Employees Exempt from the Benefits
of E-E Relationship
1. Government Employees
2. Managerial Employees
3. Field Personnel
4. Family Members dependent on the
employer for support
5. Domestic Helpers
6. Persons on the Personal Service of another
7. Workers Paid by Result
 GOVERNMENT EMPLOYEES - Refers only to
employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
not incorporated under the Corporation
Code, meaning those which have original
charters.
 MANAGERIAL EMPLOYEES - Refer to those
whose primary duty consists of the
management of the establishment in which
they are employed or of a department or
subdivision thereof and to other members
of the managerial staff
 Note: Definition applies only to the 8-
hour Labor law
 FIELD PERSONNEL - Refer to non-
agricultural employees who regularly
perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.
 WORKERS PAID BY RESULTS - Method of
computing compensation based on the
work completed and not on the time spent
in working.
 PIECE-RATE METHOD - Where pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardized and easily countable.
DOMESTIC HELPERS/ PERSONS
RENDERING PERSONAL SERVICES - Perform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety
of the employer, as well as the members of the
employer’s household.
- The existence of employment relationship is
determined by law and not by contract.
- Whether or not an employer-employee
relationship exists between the parties is a
question of fact. The findings of the
NLRC are accorded not only respect but
finality if supported by substantial
evidence.
 MANAGEMENT PREROGATIVE - except as
otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
- Management prerogative recognizes the
right of the employer to advance its
interest to prescribe standards of work and
impose reasonable quotas or work
 assignments, and failure on the part of the
employees to meet the requirement, impose
in good faith, constitutes a just cause for his
dismissal.
- New owner/management group has no
obligation to re-employ workers who
freely and voluntarily accepted their
separation pay and other benefits. A
change of ownership in a business concern
is not proscribed by law.
 ART 83. NORMAL HOURS OF WORK
- Shall not exceed 8 hours in a regular working
day
 PURPOSE
- to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts
 REGULAR WORKING DAYS: The regular
working days of covered employees shall not be
more than five days in a workweek. The
workweek may begin at any hour and on any
day, including Saturday or Sunday, designated
by the employer.
 ART 84. HOURS WORKED
SHALL INCLUDE:
1. All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and
2. All time during which an employee is
suffered or permitted to work
 PRINCIPLES IN DETERMINING HOURS
WORKED:
1. All hours are hours worked which the
employee is required to give to his employer,
regardless of whether or not such hour are
spent in productive labor or involve physical
or mental exertion;
2. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
workplace;
3. If the work performed was necessary, or it
benefited the employer, or the employee
could not abandon his work at the end of his
normal working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
work is with the knowledge of his employer
or immediate supervisor
4. The time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
time either if the imminence of the
resumption of work requires the employee’s
presence at the place of work or if the
interval is too brief to be utilized effectively
and gainfully in the employee’s own interest.
- Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
 ENGAGED TO WAIT - when waiting is an
integral part of the job, it is compensable
 WAITING TO BE ENGAGED - idle time is not
working time, not compensable
 WHEN TRAVEL TIME COMPENSABLE:
1. Travel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
2. Travel that is all in a day’s work- time spent
by an employee in travel as part of his
principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
3. Travel away from home- travel that keeps an
employee away from home overnight.
- Work hours of seamen are governed by
the same rules as land based employees.
Thus, they must show sufficient proof that
said work is actually performed.
- Rest Periods of short duration during
working hours shall be considered as
hours worked.
Preliminary activities compensable when
controlled or required by employer and are
pursued necessarily and primarily for the
employer’s benefit,
 ART 85. MEAL PERIODS
 MEAL PERIODS
1. Should not be less than sixty (60) minutes,
and is time-off/non-compensable
2. Under specified cases, may be less than
sixty (60) minutes, but should not be less
 than twenty (20) minutes an must be with full
pay.
3. If less than twenty(20) minutes, it becomes
only a rest period and is thus considered as
work time
 NOTE: Employee must be completely
relieved from duty. Otherwise, it is
compensable as hours worked.
- Mealtime is not compensable EXCEPT in
cases where the lunch period or meal time is
predominantly spent for the employer’s
benefit or where it is less than 60
minutes.
- Employees may request that their meal
period be shortened so that they can leave
work earlier that the previously established
schedule.
 REQUISITES :
1. The employees voluntarily agree in writing to
a shortened meal period and are willing to
waive the overtime pay for such shortened
meal period;
2. No diminution whatsoever in the salary and
other fringe benefits of the employees
existing before the effectivity of the
shortened meal period;
3. Work does not involve strenuous physical
exertion and they are provided with
adequate coffee breaks;
4. The value of benefits is equal with the
compensation due them for the shortened
meal period
5. OT pay will become due and demandable
after the new time schedule; and
6. The arrangement is of temporary duration.
 ART 86. NIGHT SHIFT DIFFERENTIAL
 NIGHT SHIFT DIFFERENTIAL -Additional
compensation of not less than ten percent
(10%) of an employee’s regular wage for every
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the
worker’s regular shift.
- If work done between 10 PM and 6 AM is
overtime work, then the 10% night shift
differential should be based on his
overtime rate.
 RATIONALE
- it serves as an inducement of employment
 ART 87. OVERTIME WORK
 OVERTIME PAY- Additional compensation for
work performed beyond eight (8) hours
within the worker’s 24-hour workday.
1. 30% of 130% if on a special holiday/rest
day
2. 25% of regular wage if done on a regular
workday
3. 30% of 150% if on special holiday AND rest
day
4. 30% of 200% if on a regular holiday
 RATIONALE
- employee is given OT pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
or voluntarily agreed hours of labor he is
supposed to do.
- As a rule, cannot be waived, as it is
intended to benefit laborers and employees.
But when the waiver is made in
consideration of benefits and privileges
which may even exceed the overtime pay,
the waiver may be permitted.
 NOTE: OT pay will not preclude payment of
night shift differential pay.
- Meal periods during overtime work is not
given to workers performing overtime for
the reason that OT work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employee’s OT work.
 WORK DAY - the 24-hour period which
commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
today up to 8 am tom.
- The minimum normal working hours fixed by
the Act need not be continuous to
constitute the legal working day
- Express approval by a superior is not a
prerequisite to make overtime work
compensable. HOWEVER, written
authority after office hours during rest days
and holidays are required for entitlement to
compensation.
- The right to OT pay cannot be waived.
Such waiver is contrary to law and public
policy.
 EXCEPTIONS:
1. When the waiver stipulates higher payment
or rate of OT pay; or
2. Where the contract of employment requires
work for more than eight hours of work at
specified wage per day providing for a fixed
hourly rate or that the daily wages include
overtime pay.
 COMPRESSED WORKWEEK -allowable
under the following conditions:
1. It is voluntary on the part of the worker
2. There will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employees;
3. The value of the benefits that will accrue to
the employees under the proposed schedule
is more than or at least commensurate with
the one-hour OT pay that is due them during
weekdays based on the employee’s
quantification
4. The one-hour OT pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
5. The work does not involve strenuous physical
exertion and employees must have
adequate rest periods
5. The arrangement is of temporary duration.
 ART 88. UNDERTIME NOT OFFSET BY
OVERTIME
- Undertime work on any particular day
shall not be offset by overtime work on
any other day. Permission given to the
employee to go on leave on some other day
of the week shall not exempt the employer
from paying the additional compensation.
 RATIONALE
- An employee’s regular pay rate is lower than
the overtime rate. Offsetting the undertime
hours against the overtime hours would
result in undue deprivation of the
employee’s extra pay for overtime work.
 ART 89. EMERGENCY OVERTIME
WORK
 WHEN WORKER MAY BE REQUIRED
TO RENDER OT:
(WNUNCN)
W 1. Country is at war or any other
national/local emergency has been
declared by the Chief
Executive/Congress
N 2. Necessary to prevent loss of
life/property/ in case of actual/impending
emergency in the locality
U 3. There is urgent work to be performed
on machines, installations, or equipment
in order to avoid serious loss/damage to
the employer or some other causes of
similar nature
N 4. Work is necessary to prevent
loss/damage to perishable goods; and
C 5. where the completion or continuation
of the work started before the eighth
hour is necessary to prevent serious
obstruction or prejudice to the business
or operations of the employer.
N 6. when it is necessary to avail of
favorable weather or environmental
conditions where performance or quality
of work is dependent thereon
 ART 90. REGULAR WAGE
- include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
 ART 91. RIGHT TO A WEEKLY REST
DAY
- Employees should be provided a rest period
of not less than twenty four (24)
consecutive hours after every six (6)
consecutive normal work days.
- Employer shall schedule the weekly rest day
of his employees subject to collective
bargaining agreement. However, the
employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employee’s choice
for at least two (2) days a month
 ART 92. WHEN EMPLOYER MAY
REQUIRE WORK ON A REST DAY
 WHEN EMPLOYEE MAY BE REQUIRED
TO RENDER WORK ON A REST
DAY:
1. In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
2. urgent work to be performed on the
machinery, equipment or installation to avoid
serious loss which the employer would
otherwise suffer
3. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be expected to resort to other
measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous operation
for seven days a week
6. work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work depends
upon them
 ART 93. COMPENSATION FOR REST
DAY, SUNDAY OR HOLIDAY WORK
- this article does not prohibit a stipulation in
the CBA for higher benefits
 SPECIAL HOLIDAYS
1. All Saint’s Day -November 1
2. Last Day of the Year-December 31
3. And all other days declared by law or
ordinances to be a special holiday or non-
working day
NOTE: worked = regular wage plus 30%
premium pay
not worked = none
 ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY, SUNDAY
OR HOLIDAY WORK:
1. Work on a scheduled rest day - 30% of
regular wage
2. No regular workdays and rest days -30% of
regular wage for work on Sundays &
Holidays
3. Work on Special Holidays -30% of regular
wage
4. Holiday Work falls on Scheduled Rest Day -
50% of regular wage
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
 ART 94. RIGHT TO HOLIDAY PAY
 HOLIDAY PAY - A day’s pay given by law to an
employee even if he does not work on a
regular holiday. It is limited to the ten (10)
regular holidays listed by law.
- employee should not have been absent
without pay on the working day preceding the
regular holiday
Art. 94(b) refers to regular holidays, special
holidays are taken care of under Art. 93.
 PREMIUM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.
 REGULAR HOLIDAYS:
1. New Year’s Day -January 1
2. Maundy Thursday -Movable date
3. Good Friday- Movable date
4. Araw ng Kagitingan -April 9
5. Labor Day -May 1
6. Independence Day -June 12
7. National Heroes Day`-Last Sunday of
August
8. Bonifacio Day-November 30
9. Christmas Day-December 25
10. Rizal Day-December 30
Note: Compensable whether worked or
unworked.
DOUBLE HOLIDAY PAY
1. 200% of the basic wage provided, he works
on that day and was present or on leave
with pay on the preceding workday. If
on leave without pay, rate still applies if
leave is authorized.
2. 400% if he worked – as per DOLE Memo if
there are 2 regular holidays in one day eg.
April 9 and Good Friday. Provided the
employee worked on the day prior to the
regular holiday or on leave with pay or on
authorized absence.
3. If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.
REGULAR SPECIAL
HOLIDAY HOLIDAY
 - compensable even - not compensable if considered integrated in their wages on
if unworked subject unworked the basis of the average monthly share of
to certain conditions each employee for the past 12 months
immediately preceding the abolition.
- limited to the 10 - not exclusive since
enumerated by the law may provide for
LC other special TITLE II
holidays WAGES
- rate is twice the - rate is 130% if
regular rate if worked CHAPTER I
worked PRELIMINARY MATTERS

 ART 97. DEFINITION

 ART 95. RIGHT TO SERVICE
INCENTIVE LEAVE
 SERVICE INCENTIVE LEAVE (SIL) - Five (5)
days leave with pay for every employee
who has rendered at least one (1) year of
service.
 BUT DOES NOT APPLY TO THOSE
WHO ARE:
1. already enjoying the said benefits; or
2. enjoying vacation leave with pay for at least
5 days
3. those employed in establishments regularly
employing less than 10 employees
4. those employed in establishments exempted
from granting this benefit by the Secretary of
Labor.
 ONE (1) YEAR OF SERVICE.- service within
12 months, whether continuous or broken,
reckoned from the date the employee started
working including authorized absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than 12 mos.
 WAGE - the remuneration or earnings,
however designated, capable of being
expressed in terms of money, whether fixed
or ascertained on a time, task, piece, or
commission basis or other method or
calculating the same, which is payable by
an employer to an employee under a
written or unwritten contract of employment
for work done or to be done or for services
rendered or to be rendered and includes
the fair and reasonable value of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAY’S WAGE FOR A FAIR DAY’S
LABOR - if there is no work performed by
the employee, there can be no wage or
pay unless the laborer was able, willing,
and ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.
WAGE SALARY
- compensation for - denotes higher
manual labor degree of
employment

- SIL is commutable i.e., convertible to cash- - Not subject to - subject to execution

the cash equivalent is aimed primarily at
encouraging workers to work continuously
and with dedication to the company.
 ART 96. SERVICE CHARGES
 TO BE DISTRIBUTED TWICE A MONTH
AND AT THE RATE OF:
execution (Gaa vs. CA)
 FACILITIES – shall include all articles or
services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employer’s business.

1. 85% for all covered employees to be equally

distributed among them
2. 15% for management (may answer for FACILITIES SUPPLEMENTS
losses and breakages or distributed to
management)

- If collection of service charges is abolished,

the share of covered employees shall be
 2. has ripened into practice over a long period
- Are items of - Constitute extra of time, and the practice is consistent and
expense necessary remuneration or deliberate.
for the laborer’s and special privileges or 3. It is not due to an error in the
his family’s benefits given to or construction /application of a doubtful or
existence and received by the difficult question of law.
subsistence laborers over and
above their ordinary - But even in cases of error, it should be
earnings wages shown that the correction is being done
soon after the discovery of the error.
- part of the wage - independent of the
wage  BONUS - A supplement or employment
benefit given under certain conditions, such
- deductible from the - not wage as success of the business or greater
wage deductible production or output. As a rule, it is an
amount granted voluntarily to an employee
 ART. 98. APPLICATION OF TITLE for his industry and loyalty which
contributed to the success and realization
 This Title shall not apply to the of profits of the employer’s business.
Therefore, from a legal point of view, it is
following:
not a demandable and enforceable
obligation. Unless, it was promised to be
1. household or domestic helpers given without any conditions imposed for its
2. homeworkers engaged in needle-work payment, as such, it is deemed part of the
3. workers employed in any establishment wage.
duly registered with the National Cottage
Industry  13TH MONTH PAY (OR “ITS EQUIVALENT”)
4. Workers in any duly registered cooperatives
-additional income based on wage required by
P.D. 851 which is equivalent to 1/12 of the total
basic salary earned by an employee within a
CHAPTER II calendar year.
MINIMUM WAGE RATES - may be given anytime but not later than Dec.
24
 ART 100. PROHIBITION AGAINST COVERAGE:
ELIMINATION OR DIMUNITION OF - All rank-and-file employees regardless of their
BENEFITS designation or employment status and
irrespective of the method by which their wages
 LEGAL REQ’TS. BEFORE FACILITIES are paid, are entitled to this benefit, provided,
CAN BE DEDUCTED FROM THE that they have worked for at least one (1)
EMPLOYEES’ WAGES: month during the calendar year.

1. Proof that such facilities are customarily FORMS:

furnished by the trade ;
2. Voluntarily Accepted in writing by the
employee
3. Charged at Fair & Reasonable Value
 THE NON-DIMINUTION RULE -the benefits
being given to employees cannot be taken
back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
The rule is applicable if it is shown that
the grant of the benefit is:
1. Christmas bonus
2. midyear bonus
3. profit sharing payments; and
4. other cash bonuses amounting to not less
than 1/12 of its basic salary.
- Difference of opinion on how to compute the
13th month pay does not justify a strike
- It must always be in the form of legal tender
. Free rice, electricity cash and stock
dividends, COLA not equivalent

1. based on an express policy, or

 2. necessary because of special
 ART 101. PAYMENT BY RESULTS circumstances; or
3. as stipulated in the CBA
 CATEGORIES OF PIECE-RATE
WORKERS:
 ART 103. TIME OF PAYMENT
1. those who are paid piece rates as
prescribed in Piece Rate Orders by the  WHEN TO PAY:
DOLE - at least once every two (2) weeks or twice a
2. Those who are paid output rates which are month at intervals not exceeding sixteen
prescribed by the employer and are not yet (16) days
approved by the DOLE
- force majeure or other
 WORKERS PAID ON PIECE-RATE BASIS - circumstances beyond the
shall refer to those who are paid a standard employer’s control, payment must be
amount for every piece or unit of work produced made immediately after such
that is more or less regularly replicated, without occurrence have ceased.
regard to the time spent in producing the same.
 ART.104. PLACE OF PAYMENT
BENEFITS PAYABLE TO PIECE-RATE
WORKERS:  WHERE TO PAY:
- Shall be made at or near the place of
1. Applicable statutory minimum daily rate; undertaking,
2. Yearly service incentive leave of five days
with pay;  EXCEPTIONS:
3. Night shift differential pay
4. Holiday pay
1. When payment cannot be effected at or near
5. Meal and rest periods
the place of work by reason of deterioration
6. OT pay (conditional)
of peace and security
7. Premium pay (conditional)
2. When the employer provides for free
8. 13th month pay
transportation to the employees back and
9. other benefits granted by law, individual or
forth;
collective bargaining agreement or company
3. And under analogous circumstances
policy or practice.
- payment of wages in bars, night or day
CHAPTER III clubs, massage clinics or similar
PAYMENT OF WAGES establishments are prohibited except for the
workers therein.
 ART 102. FORMS OF PAYMENT
PAYMENT THRU BANKS:
 EMPLOYER CANNOT PAY HIS
WORKERS BY MEANS OF: REQUISITES :

1. promissory notes 1. There must be written permission of the

2. vouchers majority of the employees concerned in an
3. coupons establishment;
4. tokens 2. The establishment must have 25 or more
5. tickets employees; and
6. chits 3. The bank must be located within one
7. or any object. kilometer radius to the bank from the
location of the establishment
GENERAL RULE:
- payment by legal tender - payment through the ATM is allowed

EXCEPTIONS:
- checks or money orders may be paid if:

1. the same is customary on the date of

effectivity of the LC;
 ART 105. DIRECT PAYMENT OF 2. the contractor or subcontractor has
WAGES substantial capital or investment; and
3. the agreement between the principal and
contractor or subcontractor assures the
 TO WHOM PAID contractual employees entitlement to all
- wages shall be paid directly to the workers
labor and occupational safety and health
to whom they are due.
standards, free exercise of the right to self-
organization, security of tenure and social
 EXCEPTIONS: and welfare benefits.
a. in case of force majeure/special
circumstances, payment may be made - Substantial capital need not be coupled
through another person under written with investment in tools or equipment.
authority where the worker has died, the This is clear from the use of the conjunction
b. employer may pay the wages of the “or”.
deceased worker to the heirs of the latter,
through the Secretary of Labor or his JOB LABOR ONLY
representative, without the necessity of C CONTRACTING
intestate proceedings, after the heirs have O
executed an affidavit attesting to their NT
relationship to the deceased and the fact R
that they are his heirs to the exclusion of all A
others CT
IN
 ART 106. CONTRACTOR OR G
SUBCONTRACTOR
1. No E- E 1. Employer is treated
 LABOR ONLY CONTRACTING - where the relationship exist as direct employer
person supplying workers to an employer does between of the person
not have substantial capital or investment in employer and the recruited in all
the form of tools, equipment, machineries, work contractor’s instances
premises, among others, and the workers employee except
recruited and placed by such persons are when the
performing activities which are directly related to contractor or
the principal business of such employer. subcontractor
fails to pay the
 INDEPENDENT CONTRACTOR - one who wages of his
exercises independent employment and employees
contracts to do a piece of work according to his
own methods and without being subject to 2. liability is limited 2. liable to all rights
control of his employer except as to the result to unpaid wages duties and liabilities
thereof. and other labor under labor
standards standards laws
- A mere statement in a contract with a violations including the right to
company that laborers who are paid self- organization
according to the amount and quality of work
are independent contractors does not
change their status as mere employees 3. Permissible 3. Prohibited by law
in contemplation of labor laws.
4. Contractor has 4. Contractor has no
 REQUISITES FOR A CONTRACTING OR substantial capital substantial capital/
SUBCONTRACTING TO BE : or investment investment

1. where the contractor or subcontractor  WORKING CONDITIONS - Refers to the

carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
except as to the results thereof;
terms and circumstances affecting the
employment of an employee, including
policies, programs and regulations
governing his employment status, work,
and work relationships. They are, as a rule,
determined by the employer.
 ART. 110. WORKER PREFERENCE IN
CASE OF BANKRUPTCY
- This Article did not sweep away the
overriding preference accorded under the
scheme of the Civil Code to tax claims of the
government.
- just a preference, must yield to special
preferred credit, e.g. secured creditors
- The formal declaration of insolvency or
bankruptcy or a judicial liquidation of the
employer’s business is a condition sine
qua non to the operation of the preference
accorded to workers under Art. 110.
CHAPTER IV
PROHIBITIONS REGARDING WAGES
 ART 112. NON-INTERFERENCE IN
DISPOSAL OF WAGES
In relation to the Civil Code:
Art. 1705. The laborer’s wages shall be paid in
legal currency.
Art. 1706. Withholding of the wages except for
a debt due, shall not be made by the employer
Art. 1707. The laborer’s wages shall be a lien
on the goods manufactured or the work done.
Art. 1708. The laborer’s wages shall not be
subject to execution or attachment except for
debts incurred for food, shelter, clothing, and
medical attendance.
Art. 1709. The employer shall neither seize nor
retain any tool or other articles belonging to the
laborer.
 PROHIBITIONS REGARDING WAGES:
1. Payment of wages with less frequency than
once (1) a month.
2. Limitations/Interference by the employer
with the employees freedom to dispose of
his wages.
3. Forcing, Compelling/Obliging employees to
purchase merchandise , commodities or
other properties from the employer or from
any other person, or to make use of any
store or service of such employer or any
other person
4. Withholding of wages
5. Deduction of wages as consideration of a
promise of employment or retention in
employment
6. Refusal to pay/ Reduction of wages and
benefits, discharge/ discrimination against
any employee as retaliatory measures
against any employee who has filed any
complaint or instituted any proceedings
against his employer
 ART 113. WAGE DEDUCTION
 ALLOWABLE DEDUCTIONS:
WITH EMPLOYEES CONSENT:
1. SSS Payments
2. MEDICARE
3. Contributions to PAG-IBIG Funds
4. value of meals and others
5. payments to third persons with employees
consent
6. deduction of absences
W/OUT EMPLOYEES CONSENT:
1. Worker’s insurance acquired by the employer
2. Union Dues, where the right to check-off has
been recognized by the employer
3. Cases where the employer is authorized by
law or regulations issued by the Secretary of
Labor
4. debts of the employee to the employer which
have become due and demandable
 ART 114. DEPOSITS FOR LOSS OR
DAMAGE
- Deposits for Loss or Damage to tools,
materials and equipment supplied by the
employer shall not be made, EXCEPT
when the trade, occupation or businesses of
the employer recognizes, or considers the
practice of making deductions or requiring
deposits necessary or desirable.
 REQUISITES FOR DEDUCTION FOR
LOSS OR DAMAGE :
1. employee clearly shown responsible
2. opportunity to show cause to show why
deduction should not be made
3. deduction is fair and reasonable and shall
not exceed the actual loss or damage
4. does not exceed 20% of the employees
wages in a week.
CHAPTER V
WAGE STUDIES, WAGE
AGREEMENTS AND WAGE
DETERMINATION
 ART 122. CREATION OF THE
REGIONAL TRIPARTITE WAGES AND
PRODUCTIVITY BOARDS
 WHO MAY SET MINIMUM WAGE:
1. Regional Tripartite Wages and Productivity
Board
2. Congress
MINIMUM WAGE - The lowest wage rate fixed
by law that an employer can pay his
employees.
 ART. 123 WAGE ORDER
 WAGE ORDER – an order issued by the
Regional Board whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the
Regional Board proceeds to determine whether
to issue the same or not.
 EFFECTIVITY of a wage Order – it shall take
effect after 15 days from the its complete
publication in at least one newspaper of general
circulation in the region.
 FREQUENCY of a wage order - Wage Order
issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no
petition for wage increase shall be entertained
during said period. EXCEPTION: When
Congress itself issues a law increasing wages.
 ART 124. STANDARDS/CRITERIA FOR
MINIMUM WAGE FIXING
 FACTORS FOR DETERMINING
REGIONAL MINIMUM WAGE RATES
(DACNNIPFEE)
1. Demand for living wages;
2. Wage Adjustment vis-a vis the consumer
price index;
3. Cost of living and changes or increases
therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in the
countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested and
capacity to pay of employers;
9. Effects on Employment Generation and
Family Income;
10. Equitable Distribution of Income & Wealth
along the imperatives of economic and
social development
 WAGE DISTORTION - situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
quantitative differences in wage or salary rates
between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure
based on skills, length of service or other logical
bases of differentiation.
 CORRECTING WAGE DISTORTION
Unionized Establishment
1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be
resolved through grievance procedure under
their CBA.
3. If the dispute remains unresolved, through
voluntary arbitration.
Establishments without Unions
1. The employers and workers shall endeavor
to correct the distortion.
2. Any dispute arising therefrom shall be
settled through the NCMB and
3. If it remains unresolved after 10 days of
conciliation, it shall be referred to the NLRC.
- Wage distortion is non- strikeable.
 Is the employer legally obliged to try &
correct a wage distortion?
It appears so. Article 124 of the Code
provides that “ the employer and the union shall
negotiate to correct the distortions.” If there is
no union, “ the employer and the workers shall
endeavor to correct such distortions.
 Must the previous pay gaps be
restored?
While that is the aim, it need not
necessarily be restored to the last peso. An
appreciable differential, a significant pay gap
should suffice as correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
 ART. 128. VISITORIAL AND
ENFORCEMENT POWER
 ART. 129. RECOVERY OF WAGES,  employer shall pay the employees
SIMPLE MONEY CLAIMS AND OTHER concerned their salaries in case the
BENEFITS violation is attributable to his fault
- Require employers to keep and maintain
- Under Art. 129, the Regional Director is Employment Records
empowered through summary proceeding - as may be necessary in aid of his
and after due notice, to hear and decide visitorial and enforcement powers
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.
ART 128 ART 129
 REQUISITES :
1. Visitorial and 1. Power of the
enforcement Regional Director or
1. The claim is presented by an employee or
power of the any duly authorized
person employed in domestic or household
Secretary of hearing officers to
service or househelper;
Labor /his duly hear and decide
2. The claim arises from employer-employee
authorized matters involving
relations;
representatives the recovery of
3. The claimant does not seek reinstatement;
exercised through wages, upon
and
routine complaint of any
4. The aggregate money claim of each
inspections of interested party
employee or househelper does not exceed
establishments
P5, 000.00

- Access to employer’s records and 2. requires the 2. E-E relationship not

premises existence of E-E necessary since it
Relationship should not include a
 the day/night whenever work is being
claim for
undertaken therein
reinstatement
 includes the right to copy therefrom,
to question any employee & investigate
3. No limit as to 3. Aggregate claim of
any fact, condition or matter which may
amount of claim each complainant
be necessary to determine violations or
does not exceed
which may aid in the enforcement of the
P5,000
Code and of any labor law, wage order,
or rules and regulations
4. Appeal is with 4. Appeal with NLRC;
- Issue Compliance Orders (ART. 128) Sec.of Labor ; period of appeal is
period of appeal 5 calendar days
based on the findings of labor
is 10 calendar
employment and enforcement officers or
days
industrial safety engineers made in the
course of inspection
5. Person exercising 5. The power is
the power is the vested upon a
- Issue Writs of Execution (ART. 128)
Sec. Of Labor or regional director or
for the enforcement of orders
any of his duly any duly authorized
except in cases where the employer authorized hearing officer of
contests the findings of the said labor representatives the DOLE.
officers and raises issues supported by who may or may
documentary proofs which were not not be a regional
considered in the course of inspection. director
- Order Work Stoppage/Suspension of
Operations
 when non-compliance with the law or TITLE III
implementing rules and regulations WORKING CONDITIONS FOR
poses grave & imminent danger to the SPECIAL GROUP OF EMPLOYEES
health and safety of the workers in the
workplace. CHAPTER I
- Conduct Hearings within 24 hours
 to determine whether an order for
EMPLOYMENT OF WOMEN
stoppage of work/suspension of
operations shall be lifted or not.
 ART 130. NIGHTWORK PROHIBITION
- No woman , regardless of age, shall be
employed or permitted or suffered to work,
with or without compensation in any :
1. Industrial undertaking between 10PM-6AM
2. Commercial/Non-Industrial undertaking
between 12 MN-6AM
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
9 consecutive hours
 ART 131. EXCEPTIONS
1. Actual/Impending Emergencies
caused by serious accident, flood,
typhoon, epidemic or other disasters or
calamity, to prevent loss of life or
property, or in cases of force majeure or
imminent danger to public safety
2. Urgent work to be performed on
machineries, equipment or installation, to
avoid serious loss
3. Work is necessary to prevent serious loss of
perishable goods
4. Where she holds a responsible position of
managerial/technical nature/engaged to
provide health and welfare service
5. Nature of the work requires the manual skill
and dexterity of women workers & cannot be
performed with equal efficiency by male
workers
6. Where women workers are immediate family
members of the family operating the
establishment or undertaking
7. Analogous cases
 ART 132. FACILITIES FOR WOMEN
The Secretary of Labor may require employers
to:
1. Provide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the quality of the work will not be
compromised;
2. To establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for women;
3. To establish a nursery in the establishment;
4. To determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
 ART. 133 MATERNITY LEAVE
BENEFITS
 MATERNITY LEAVE UNDER THE SSS LAW
A female member, who need not be
legally married, who has paid for at least three
(3) monthly contributions in the 12-month
period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to 100% of her
average daily salary credit for 60 days or 78
days, in case of caesarian delivery.
REQUISITES :
1. Employee notified her employer of her
pregnancy of the probable date of her
childbirth
2. Full payment be advanced by the employer
within 30 days from the filing of the maternity
leave application
3. That payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits
4. That the maternity benefits shall be paid
only for the first four (4) deliveries or
miscarriages
5. That the SSS shall immediately reimburse
the employer of 100% of the amount of
maternity benefits advanced to the
employee by the employer
6. That if an employee member should give
birth or suffer a miscarriage without the
required contributions having been remitted
for her by her employer to the SSS, or
without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits
which said employee member would
otherwise have been entitled to.
- ART 133 (b) subsists, i.e., the maternity
leave shall be extended without pay on
account of illness medically certified to arise
out of the pregnancy, delivery, abortion, or
miscarriage, which renders the woman unfit
for work , unless she has earned unused
leave credits from which such extended
leave may be charged.
 LIMIT OF THE BENEFIT: Applies only for the
first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the Social
Security program.
 RA 8187 (PATERNITY LEAVE)
- This law grants paternity leave of seven day
with full pay to all married male employees
in the private and public sectors.
- It is available only for the first four
 deliveries of the legitimate spouse with
whom the husband is cohabiting.
DELIVERY – includes childbirth, miscarriage, or
abortion.
Purpose: to enable the husband to lend support
to his wife during the period of recovery and/or
in the nursing of the newly born child.
 CONDITIONS :
1. he is an employee at he time of the delivery
of his child;
2. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriage;
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a
miscarriage
- Paternity leave, if not availed of, is not
convertible to cash.
WIFE - refers to the lawful wife which means the
woman who is legally married to the male
employee concerned.
- Where the male employee is already
enjoying the paternity leave by reason of
any law, decree, executive orders or any
contract, agreement or policy between
employer and employee and the existing
paternity benefit is greater, the greater
benefit shall prevail; if lesser, the existing
benefit shall be adjusted to the extent of
the difference.
 ART 135. DISCRIMINATION
PROHIBITED
- It shall be unlawful for any employer to
discriminate against any woman employee
with respect to terms and conditions of
employment solely on account of her sex.
 Acts of Discrimination:
a. Payment of a lesser compensation for work
of equal value.
b. Favoring a male employee over a female
employee solely on the account of their
sexes.
Sexual Harassment in a Work-Related or
Employment Environment :
1. the sexual favor is made as a
condition in the hiring or in the
employment, re-employment or
continued employment of said
individual or in granting said individual
favorable compensation, terms,
conditions, promotions, or privileges;
or the refusal to grant the sexual favor
results in limiting, segregating or
classifying the employee which in
anyway would discriminate, deprive or
diminish employment opportunities or
otherwise adversely affect said
employee
2. the above acts would impair the
employee’s rights or privileges under
existing labor laws or
3. The above acts would result in an
intimidating, hostile, or offensive
environment (Sec. 3[a], RA No. 7877)
 ART 136. STIPULATION AGAINST
MARRIAGE
- it shall be unlawful for an employer to require
as a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate expressly or tacitly
that upon getting married a woman employee
shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely
by reason of her marriage.
 ART 138. CLASSIFICATION OF
CERTAIN WOMEN WORKERS
- Any woman who is permitted to work or
suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
establishment, under the effective control or
supervision of the employer for a substantial
period of time as determined by the
Secretary of Labor, shall be considered as
an employee of such establishment for
purposes of labor and social legislation.
CHAPTER II
EMPLOYMENT OF MINORS
 ART 139. MINIMUM EMPLOYABLE AGE
- Any person between ages 15 and 18 may
be employed in any non hazardous work.
 Exception and condition on the
employment of a child below 15:
1. When the child works directly under the sole
responsibility of his/her parents or legal guardian
who employs members of his/her family only
under the following conditions:
a. employment does not endanger the
child’s life, safety, health and morals
b. employment does not impair the child’s
normal development
c. the parent/legal guardian provides the
child with the primary and/or secondary
education prescribed by DECS
2. Where the child’s employment or participation
in public entertainment or information through
cinema, theater, radio, or television is essential,
provided that:
a. employment does not involve
advertisements or commercials
promoting alcoholic beverages,
intoxicating drinks, tobacco and its by-
products or exhibiting violence;
b. There is a written contract approved
by the DOLE; and
c. The conditions prescribed for the
employment of minors {above stated}
are met.
NONHAZARDOUS WORK OR UNDERTAKING
– one where the employee is not exposed to any
risk which constitutes an imminent danger to his
safety and health.
 HAZARDOUS WORKPLACES:
1. Where the nature of the work exposes the
workers to dangerous environmental
elements, contaminants or work conditions;
2. Where the workers are engaged in
construction work, logging, fire-fighting,
mining, quarrying, blasting, stevedoring,
dock work, deep-sea fishing, and
mechanized farming;
3. Where the workers are engaged in the
manufacture or handling of explosives and
other pyrotechnic products;
4. Where the workers use or are exposed to
heavy or power-driven machinery or
equipment; and
5. Where the workers use or are exposed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOUSEHELPERS
 RIGHTS OF HOUSEHELPERS:
1. minimum cash wage
2. non-assignment to non- household work
3. opportunity for education: if under 18 (cause
of education part of compensation)
4. board/ lodging, medical attendance
5. just and humane treatment
6. indemnity for unjust termination of services
7. just causes for termination
8. right not to be required to work more than 10
hours a day
9. for days vacation each month
10. to regular wages if employed in industrial or
commercial or agricultural undertaking
11. funeral expenses must be paid by employer
if the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
12. at least elementary education
13. employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
 INDUSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
 INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOUR
HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL, DENTAL AND
OCCUPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
 ART 156. FIRST-AID TREATMENT
 FIRST-AID TREATMENT – adequate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before a more
extensive medical and/or dental treatment can
be secured.
 FIRST AIDER – any person trained and duly
certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
organization accredited by the former.
TITLE II
EMPLOYEES’ COMPENSATION AND
STATE INSURANCE FUND
 WORKMEN’S COMPENSATON- A general
and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.
 COMPENSATION - Money relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.
3. if the injury is sustained elsewhere, the
employee must have been executing an
order for the employer
4. the injury was not due to the employee’s
intoxication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this Title.
 SICKNESS - Any illness definitely accepted as
an occupational disease listed by the
Commission or any illness caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.

WORKMEN’S EMPLOYEES  Conditions for an occupational disease

COMPENSATION COMPENSATION and the resulting disability or death to be
ACT LAW compensable :
1. There is a 1. no presumption of 1. The employee’s work must involve the risk
presumption of compensability described therein
compensability 2. The disease was contracted as a result of
the employee’s exposure to the described
2. there is a 2. no presumption of risks;
presumption of aggravation 3. The disease was contracted within a period
aggravation of exposure and under such other factors
necessary to contract it;
3. there is a need for 3. no need for the 4. There was no notorious negligence on the
the employer to employer to part of the employee
controvert the controvert
claim within 14  DEATH - Loss of life resulting from injury
days otherwise or sickness
he is deemed to
have waived the  DISABILITY -Loss or impairment of a physical
right or mental function resulting from injury or
sickness.
4. payment of 4. payment of
compensation compensation  DIRECT PREMISES RULE – as a general
made by the made by SSS/GSIS rule, the accident should have occurred at the
employer through the State place of work to be compensable
Insurance Fund
 EXCEPTIONS TO THE DIRECT
PREMISES RULE
 ART 164. DEFINITION OF TERMS.
1. INGRESS- EGRESS/ PROXIMITY RULE-
 INJURY - Any harmful change in the human when the employer is about to leave or
organism from any accident arising out of and in about to enter the premises of the employer
the course of employment. by way of the customary or exclusive means
of ingress or egress.
 GROUNDS FOR AN INJURY TO BE
COMPENSABLE 2. GOING TO OR COMING FROM WORK-
when the injury occurred when the
1. the employee must have been injured at the employee is proceeding to or from his work
place where the work requires him to be on the premises of the employer
2. the employee must have been performing must be a continuing act and has not
his official functions diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
 employee is on a special errand, it must
have been official and in connection with
his work.
3. EXTRA-PREMISES RULE – (or the shuttle
bus rule) where the company provides the
means of transportation in going to or
coming from the place of work is liable to the
injury sustained by the employees while on
board said means of transportation.
4. SPECIAL ERRAND RULE – injury
sustained outside the company premises is
compensable if his being out is covered by
an office order or a locator slip or a pass for
official business.
5. DUAL PURPOSE DOCTRINE – allows
compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.
6. SPECIAL ENGAGEMENT RULE – covers
field trips, outings, intramurals and picnics
when initiated or sanctioned by the employer
7. POSITIONAL AND LOCAL RISKS
DOCTRINE – If an employee by reason of
his duties is exposed to a special or peculiar
danger from the elements, that is, one
greater than that to which other persons in
the community are exposed and an
unexpected injury occurs, the injury is
compensable
8. FORCE MAJEURE OR AN ACT OF GOD-
when one in the course of his employment is
reasonably required to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
 ART 168. COMPULSORY COVERAGE
- ECL applies to all employers, public or
private, and to all employees, public or
private including casual, emergency,
temporary, or substitute employees.
- Every employee is covered who is not over
60 years over 60 years of age or over 60
years of age if he had been paying
contributions prior to the age of 60
 ART 170. EFFECTIVE DATE OF
COVERAGE
- The employer is covered compulsorily from
first day of operation and the employee from
the first day of employment
 ART 172. LIMITATIONS OF LIABILITY
- NO COMPENSATION can be obtained if the
injury, death or disability is a result of the
employee’s:
1. Intoxication;
2. Willful intention to injure or kill himself or
another;
3. Notorious negligence; or
4. Unless otherwise provided by the LC
 NOTORIOUS NEGLIGENCE –deliberate act
of the employee to disregard his own personal
safety.
 Is death through suicide compensable ?
As a rule NO. However as held in NAESS
vs. NLRC, the supreme court ruled that a self
inflicted death could be compensable if :
1. by agreement of the parties
2. The suicide/death is caused by a work
related or compensable illness or
disease.
 ART 173. EXTENT OF LIABILITY
- Simultaneous recovery under the Labor
Code and the Civil Code cannot be made.
The action is selective and the employee
may either choose to file the claim under
either. But once the election is made, the
claimant cannot opt for the other remedy.
- Simultaneous recovery under the LC and
the SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
since PD 1921 has lifted the ban on
simultaneous recovery.
 STATE INSURANCE FUND: all covered
employers are required to remit to a common
fund a monthly contribution equivalent to one
percent of the monthly salary credit of every
covered employee. The employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES:
 TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not exceeding 120 days
 PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period exceeding 120 days
 PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.
 DEATH BENEFITS
- The System shall pay to the primary
beneficiaries upon the death of the covered
employee an amount equal to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not exceeding
five, beginning with the youngest and
without substitution. The income benefit
shall be guaranteed for five years.
 DEPENDENTS:
1. the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of
age provided that he is incapable of self-
support due to a physical or mental defect
which is congenital or acquired during
minority
2. legitimate spouse living with the employee
3. the parents of said employee wholly
dependent upon him for regular support
 BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there are no
primary beneficiaries
3. in no case shall the total benefit be less that
P 15, 000.00
 THE BENEFICIARIES ARE:
PRIMARY BENEFICIARIES
a. Dependent spouse until he remarries
b. dependent children ( legitimate, legitimated,
natural born or legally adopted)
SECONDARY BENEFICIARIES
a. Illegitimate children and legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
 ART 211. DECLARATION OF POLICY
 LABOR RELATIONS LAW - Concerned with
the stabilization of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor disputes through conciliation,
mediation and arbitration.
- Absent an employer-employee relation,
there is no labor relations to speak of.
 PARTIES TO LABOR RELATIONS
CASES:
1. The employee’s organization,
2. management, and
3. the public
- The public is always to be considered in
disputes between labor and capital, and it
ahas been held that the rights of the
general public are paramount.
- Labor relations policy under the LC is
embodied in Section 3 Article XIII of the
1987 Constitution which guarantees to all
workers their right among others to self-
organization, collective bargaining and
negotiations, peaceful land concerted
activities including the right to strike in
accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.
 ART. 212. DEFINITIONS
 LABOR DISPUTE INCLUDES:
1. any controversy or matter concerning terms
or conditions of employment or
2. the association or representation of persons
in negotiating, fixing, maintaining, charging
or arranging the terms and conditions of
employment, regardless of whether the
 disputants stand in the proximate relation of
employer and employee.
 EMPLOYEE- shall not be limited to the
employees of a particular employer.
- it shall include any individual whose
work has ceased: as a result of or in
connection with any current labor
dispute; or because of unfair labor
practice
- If he has not obtained any other:
1. Substantially equivalent and
2. Permanent employment
 MANAGERIAL EMPLOYEE - is one who is
vested with powers or prerogatives to lay down
and execute management policies and /or to
hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees.
 SUPERVISORY EMPLOYEES – are those
who, in the interest of the employer, effectively
recommend such managerial actions if the
exercise of such authority is not merely routinary
or clerical in nature but requires the use of
independent judgment.
 WORKER’S ASSOCIATION - any association
of workers organized for the mutual aid and
protection of its members or for any legitimate
purpose other than collective bargaining.
 INDEPENDENT UNION - any labor
organization operating at the enterprise level
whose legal personality is derived through an
independent action for registration prescribed
under Art. 234. It may be affiliated with a
federation, national or industry union, in which
case it may also be referred to as an affiliate.
NATIONAL UNION/FEDERATION - any labor
organization with at least 10 locals/chapters or
affiliates each of which must be a dully certified
or recognized collective bargaining agent.
 LEGITIMATE WORKER’S ASSOCIATION –
any workers association as defined herein
which is duly registered with the Department of
Labor.
 LABOR ORGANIZATIONS - Any union or
association of employees which exists in
whole or in part for the purpose of collective
bargaining or of dealing with employees
concerning terms and conditions of
employment.
PURPOSES OF LABOR
ORGANIZATIONS:
1. for collective bargaining; and
2. for mutual aid and protection.
 TYPES OF LABOR DISPUTES
1. Labor Standards Disputes :
a) compensation (underpayment of minimum
wage)
b) benefits ( nonpayment of holiday pay,
overtime pay)
c) working conditions ( unrectified working
hazards)
2. Labor Relations Disputes
a) organizational right dispute/unfair labor
practice (coercion, restraint or interference
in unionization efforts)
b) representation disputes
c) bargaining disputes ( refusal to bargain )
d) contract administration or personnel policy
disputes (noncompliance with CBA
provisions)
e) employment tenure disputes
f) ( non regularization of employees)
PARTIES TO A DISPUTE:
1. Primary Parties – employer, employees,
union
2. Secondary Parties – voluntary arbitrator,
agencies of DOLE (BLR, NLRC, VAC, Sec.
Of Labor, Office of the President)
 CONSULTATION ON POLICIES OF
MANAGEMENT AND OF THE EMPLOYER
- What is needed is only consultation or
participation. The employees need not
agree.
1. the last say is still with the management
2. it is still the management prerogative that
prevails
- If there is no labor union, then
consultation should be made with the labor
management council.
- If the employees were not given the right to
participate, then they could file with the NLRC
a grievance.
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION

CHAPTER I
CREATION AND COMPOSITION
 ART. 213. NATIONAL LABOR
RELATIONS COMMISSION
TRIPARTISM
- Five (5) divisions of NLRC.
- Three (3) sectors are represented in the
composition of the NLRC.
- each division (3 commissioners) will
have representative from the
following :
1. Choice of the Sec. Of Labor coming
from the public sector
2. labor
3. employer and management sector
 QUALIFICATIONS OF THE CHAIRMAN
AND THE COMMISSIONER
1. must be a member of the Philippine Bar;
2. must have been engaged in the practice of
law in the Philippines for at least 15 years;
3. must have experience or exposure in
handling labor management relations for at
least 15 years; and
4. preferably a resident of the region where he
is to hold office.
- The Chairman and Commissioners of the
NLRC are not subject to confirmation by the
Commission on Appointments
 THE QUALIFICATIONS OF EXECUTIVE
LABOR ARBITERS
1. must be members of the Philippine Bar;
2. must have been engaged in the practice of
law in the Philippines for at least 7 years;
3. must have experience or exposure in
handling labor management relations for at
least 3 years.
 TERM OF OFFICE OF THE CHAIRMAN,
COMMISIONERS, AND LABOR
ARBITERS:
- until they reach the age of 65 unless
removed for causes as provided by law or
become incapacitated to discharge the
function of his office.
 CASES WERE THE NLRC HAVE
EXCLUSIVE AND ORIGINAL
JURISDICTION:
1. Cases certified to it for compulsory
arbitration by the Secretary of Labor under
Art. 263;
2. Injunction cases under Art. 218 and 264;
and
3. Contempt cases.
 CASES WERE THE NLRC HAS
APPELLATE JURISDICTION:
1. Cases decided by labor arbiters under
Art 217b and Sec 10 RA 8012(Migrant
Workers Act)
2. Cases decided by the Regional Offices
of DOLE in the exercise of its
adjudicatory function under Art 129 of
the Labor Code
THE NLRC ONLY SITS EN BANC FOR
PURPOSES OF:
1. promulgating rules and regulation
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
2. formulating policies affecting its
administration and operations.
- The Commission may only sit en banc for
the determination of policies and NOT for
purposes of adjudication.
- Petitions for certiorari against decisions
of the NLRC should henceforth be
initially filed with the Court of Appeals in
strict observance of the doctrine on the
hierarchy of courts as the appropriate forum
for the relief desired. The SC noted that the
CA is procedurally equipped to resolve
unclear or ambiguous factual finding, aside
from the increased number of its component
divisions. (St. Martin Funeral Homes vs.
NLRC G.R. No. 130866)
- Findings of facts of a labor tribunal are
accorded the utmost respect by the courts
and are well-nigh conclusive if supported by
substantial evidence.
- Labor cases are not subject to Barangay
Conciliation since ordinary rules on
procedure are merely suppletory in
character vis-a- vis labor disputes which are
primarily governed by labor laws.
- The failure of the petitioner to file a motion
for reconsideration of the decision of NLRC
before filing a petition for certiorari has in
 certain instances been held not to be a fatal
omission.
CHAPTER II
POWERS AND DUTIES
 ART 217. JURISDICTION OF LABOR
ARBITERS AND THE COMMISSION.
a. Except as otherwise provided under this
Code the Labor Arbiters shall have original
and exclusive jurisdiction to hear and
decide, within 30 calendar days after the
submission of the case by the parties for
decision without extension, even in the
absence of stenographic notes, the following
cases involving all workers, whether
agricultural or non-agricultural:
1, Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for
reinstatement, those cases that
workers may file involving wages,
rates of pay, hours of work and
other terms and conditions of
employment;
4. Claims for actual, moral,
exemplary and other forms of
damages arising from employer-
employee relations;
5. Cases arising from any violation
of Art 264 of this Code, including
questions involving the legality of
strikes and lockouts; and
6. Except claims for Employees
Compensation, Social Security,
Medicare and maternity benefits,
all other claims arising from
employer-employee relations,
including those of persons in
domestic or household service,
involving an amount exceeding
P5,000.00 regardless of whether
accompanies with a claim for
reinstatement.
7.Monetary claims of overseas
contract workers under the
Migrant Workers Act of 1995.
b. The Commission shall have exclusive
appellate jurisdiction over all cases
decided by Labor Arbiters.
c. Cases arising from the interpretation or
implementation of CBA and those arising
from the interpretation or enforcement of
company personnel policies shall be
disposed of by the Labor Arbiter by referring
the same to the grievance machinery and
voluntary arbitration.
- The labor arbiter has jurisdiction over the
claims of employees against GOCCs if the
latter does not have an original charter and
has been incorporated under the
Corporation Code.
- The labor arbiter and the NLRC have no
jurisdiction over claims filed by employees
against international agencies such as IRRI,
WHO etc.
 ART 218. POWERS OF THE
COMMISSION
 POWERS OF THE NLRC:
a. Rule-making power
b. Power to issue compulsory
processes
c. Power to investigate matters
and hear disputes within its
jurisdiction
d. Contempt power
e. Power to issue injunctions and
Restraining Orders
 REQUISITES BEFORE RESTRAINING
ORDER/ INJUNCTION MAY ISSUE:
1. filing of a verified petition
2. a hearing after due and personal notice has
been served in such manner as the
Commission shall direct, to all known
persons against whom the relief is sought
and also to the Chief Executive or other
public officials of the province or city within
which the unlawful acts have been
threatened or committed charged with the
duty to protect the complainant’s property
3. reception at the hearing of the testimony of
witnesses with opportunity for cross-
examination, in support of the allegations of
the complaint made under oath as well as
testimony in opposition thereto
4. a finding of fact of the Commission to the
effect that :
a) prohibited or unlawful acts have been
threatened and will be committed and
will be continued unless restrained, but
no injunction or temporary restraining
order shall be issued on account of any
threat, prohibited, or unlawful act,
except against the persons, association
or organization making the threat or
committing the prohibited or unlawful
act or actually authorizing or ratifying the
same after actual knowledge thereof.
b) That substantial and irreparable injury to
the complainant’s property will follow
 c) That as to each item of relief to be
granted, greater injury will be inflicted
upon complainant by the denial of the
relief than will be inflicted upon the
defendants by the granting of the relief
d) That complainants has no adequate
remedy at law
e) That public officers charged with the
duty to protect complainant’s property
are unable or unwilling to furnish
adequate protection.
5. Posting of a bond
 REQUISITES BEFORE TRO MAY BE
ISSUED EX PARTE:
1. The complainant shall allege that, unless a
TRO shall be issued without notice, a
substantial and irreparable injury to
complaint’s property will be unavoidable;
2. There is testimony under oath, sufficient, is
sustained, to justify the Commission in
issuing a temporary injunction upon hearing
after notice ;
3. The complainant shall first file an
undertaking with adequate security in an
amount to be fixed by the Commission
sufficient to recompense those enjoined for
any loss, expenses or damage caused by
the improvident or erroneous issuance of
such order or injunction, including all
reasonable costs, together with a
reasonable attorney’s fee, and expense of
defense against the granting of any
injunctive relief sought in the same
proceeding and subsequently denied by the
Commission; and
4. The TRO shall be effective no longer than
20 days and shall become void at the
expiration of said 20 days counted from the
date of the posting of the bond.
- In the absence of service of summons or a
valid waiver thereof, the hearings and
judgment rendered by the labor arbiter are
null and void.
- The procedural and substantial
requirements of Art 218 (e) must be strictly
complied with before an injunction may
issue in a labor dispute.
 THE FF. CAN ISSUE INJUNCTIONS/
TRO IN LABOR DISPUTES
1. President (ART. 263, g)
2. Secretary of Labor (ART. 263, g)
3. Labor Arbiters (ART. 217)
4. NLRC
5. Regional Directors
6. Med- Arbiters
 Art 219. OCULAR INSPECTION
The Chairman, any Commissioner, labor Arbiter
or their duly authorized representatives may, at
anytime during working hours:
a. Conduct an ocular inspection on
any establishment, building,
ship, place or premises,
including any work, material,
implement, machinery,
appliance or any object therein;
and
b. Ask any employee. Laborer, or
any person as the case may be
for any information or date
concerning any matter or
question relative to the object of
the investigation
 ART. 221. TECHNICAL RULES NOT
BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
- An amicable settlement of a labor dispute
should be approved by the labor arbiter
before whom the case is pending after
being satisfied that it was voluntarily entered
by the parties and after having explained to
them the terms and consequences thereof.
PURPOSE: for the employee’s protection for the
labor arbiter before whom the case is pending
would be in a better position than just any labor
arbiter to personally determine the voluntariness
of the agreement and certify its validity.
RES JUDICATA applies only to judicial or
quasi-judicial proceedings and not to the
exercise of administrative powers.
 ART 222. APPEARANCES AND FEES
 APPEARANCE OF NON-LAWYERS
BEFORE THE COMMISSION:
GENERAL RULE: ONLY lawyers can
appear before the NLRC, or any Labor Arbiter,
EXCEPTIONS : Non-Lawyers can appear ONLY
in the following instances:
1. if they represent themselves; or
2. if they represent their organization
or members thereof; or
3. if he is a duly-accredited member of
the legal aid office duly recognized
by the DOJ of IBP in cases referred
thereto by the latter.
ATTORNEY’S FEES: The maximum amount to
be given a lawyer is 10% of the monetary
benefits awarded to the employees excluding
the award for moral and exemplary damages
shall not be included.
- Moral and exemplary damages and other
benefits that employee receives when he is
working are excluded.
- This article prohibits the payment of
attorney’s fees only where the same is
effected through forced contributions from
the workers form their own funds as
distinguished from the union funds.
CHAPTER III
APPEAL
 ART. 223. APPEAL
 GROUNDS FOR APPEAL:
1. If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter or
Compulsory Arbitrator;
2. If the decision, order or award was secured
through fraud or coercion, including graft
and corruption;
3. If made purely on questions of law;
4. If serious errors in the findings of facts are
raised which would cause grave or
irreparable damage or injury to the
appellant.
 PERIODS WITHIN WHICH TO APPEAL:
A. DECISIONS OF THE REGIONAL
DIRECTOR:
- within 5 calendar days from receipt of the
order.
B. DECISIONS OF THE LABOR ARBITER:
- within 10 calendar days from the receipt of
the decision.
- The appeal must be under oath and must
state specifically the grounds relied upon
and the supporting arguments.
- Where the 10th day falls on a Saturday,
Sunday or legal holiday, the appeal may be
filed on the next business day.
IS THE PERIOD OF APPEAL
EXTENDIBLE?
NO. The period of appeal to cases
decided by the regional Director and the Labor
Arbiter is NEVER extendible. It is the policy of
the state to settle expeditiously labor disputes.
 REQUISITES BEFORE APPEAL TO THE
NLRC IS DEEMED PERFECTED:
1. File a verified memo of appeal within the
required period of appeal;
2. In case of monetary award, the employer
should file a bond corresponding to the
monetary award excluding awards for moral,
exemplary damages and attorney’s fees.
3. Appeal fee of P110;
4. Furnish the other party with a copy of the
memo of appeal (proof of service).
- Where the employer failed to post a bond to
perfect its appeal, the remedy of the
employee is not a petition for mandamus by
a motion to dismiss appeal.
- The intention of the lawmakers is to make
the bond an indispensable requisite for the
perfection of an appeal by the employer.
- Tardiness of an appeal form the decision of
the labor arbiter may be considered as a
mere procedural lapse.
 EXECUTION PENDING APPEAL:
- the decision of the labor arbiter ordering the
reinstatement of a dismissed or separated
employee shall immediately executory
insofar as the reinstatement aspect is
concerned and the posting of an appeal
bond by the employer shall not stay such
execution. There is no need for the arbiter to
issue a writ of execution on the
reinstatement order as it is self-executory
(Pioneer Texturizing Case).
 OPTIONS OF THE EMPLOYER TO IN
COMPLYING WITH AN ORDER OF
REINSTATEMENT WHICH IS
IMMEDIATELY EXECUTORY:
1. He can admit the dismissed employee back
to work under the same terms and
conditions prevailing prior to his dismissal or
separation or to a substantially equivalent
position if the former position is already filled
up.
2. He can reinstate the employee merely in the
payroll.
- Failing to exercise any option may be
compelled under pain of contempt and the
employer may be made to pay instead the
salary of the employee.
 A petition for relief from the decision of
the labor arbiter must strictly comply
with 2 reglementary periods:
1. The petition must be filed within 60 days
from knowledge of the judgment; and
2. Within a fixed period of 6 months from entry
of such judgment.
- petitions filed beyond said period
will no longer be entertained.
 APPEAL FROM THE DECISION OF THE
NLRC:
- appeal by certiorari should be filed
with the Court of Appeals(St. Martin
Funeral’s Home)
 ART 224. EXECUTION OF DECISIONS,
ORDER, OR AWARDS
- The decision of the Secretary of Labor, the
Commission, the Bureau or Regional
Director the Labor Arbiter, the Med-Arbiter or
the Voluntary Arbitrator shall be final and
executory after 10 calendar days from
receipt thereof by the parties.
- The foregoing may upon its own initiative or
on motion of any interested party, issue a
writ of execution on a judgment within 5
years from the date it becomes final and
executory.
- The immediate execution of judgment
should be undertaken only when the
monetary award had been carefully and
accurately determined by the NLRC and
only after the employer is given the
opportunity to be heard and to raise
objections to the computation.
TITLE III
BUREAU OF LABOR RELATIONS
 ART. 226 BUREAU OF LABOR
RELATIONS
 EXCLUSIVE AND ORIGINAL
JURISDICTION OF THE BLR:
1. inter- union conflicts
2. intra- union conflicts
3. all disputes, grievances or problems arising
from or affecting labor- management
relations in all workplaces whether
agricultural or non- agricultural.
 CASES WHERE THE BLR HAS NO
JURISDICTION:
- Those arising from the implementation or
interpretation of collective bargaining
agreements which shall be subject of
grievance procedure and/or voluntary
arbitration.
 INTRA- UNION DISPUTES - includes all
disputes or grievances arising from any
violation of or disagreement over any
provision of the constitution and by-laws
of a union.
- It also includes any violation of the rights
and conditions of union membership
provided for in the Labor Code.
 INTER- UNION DISPUTES - refers to
questions involving or arising out of a
representation disputes between or
among the different unions.
- It also includes all other conflicts which
legitimate labor, organizations may have
against each other based on any violation of
their rights as labor organizations.
 DETERMINATION OF EMPLOYER-
EMPLOYEE RELATIONSHIP:
- since the BLR has the original and exclusive
jurisdiction to decide inter alia, all disputes,
grievances or problems arising from or
affecting labor-management relations in all
workplaces. Necessarily, in the exercise of
this jurisdiction over labor-management
relations, the Med-Arbiter has the authority,
original and exclusive, to determine the
existence of an employer-employee
relationship (MY San Biscuits, Inc. v
Laguesma G.R. No. 9511, 22 April 1991).
 SPECIAL REQUIREMENT AS TO THE
FILING OF CASES:
A. INVOLVING ENTIRE MEMBERSHIP
1. The complaint must be signed by at
least 30% of the entire membership
of the union.
2. It must also show exhaustion of
administrative remedies.
B. INVOLVING A MEMBER ONLY:
In such case only the affected
member may file the complaint.
RE : Imposition of fees by the union –
does it affect the entire membership?
 YES. Such being the case, the
complaint should be signed by at least 30% of
the membership of the union.
 ADMINISTRATIVE FUNCTIONS OF THE
BLR:
1. The regulation of registration of the labor
unions;
2. The keeping of a registry of labor unions;
and
3. The maintenance of a file of CBAs.
 NATIONAL CONCILIATION AND
MEDIATION BOARD:
- has absorbed the conciliation, mediation and
voluntary arbitration functions of the BLR
(E.O. 126)
 ART. 227. COMPROMISE
AGREEMENTS
 REQUIREMENTS OF A VALID
QUITCLAIM:
1. The quitclaim must be voluntarily arrived at
by the parties;
2. It must be with the assistance of the Bureau
of Labor Standards, Bureau of Labor
Relations of any representative of the
DOLE; and
3. The consideration must be reasonable.
- if the compromise agreement was entered
into without the assistance of DOLE, it is
valid and binding between the parties but
the parties can still go to the NLRC and
repudiate the agreement.
- if the compromise agreement was entered
into with the assistance of DOLE, it shall
be final and binding between the parties,
EXCEPT:
a. in case of non compliance with
the compromise agreement; or
b. if there is prima facie evidence
that the settlement was obtained
through fraud,
misrepresentation, or coercion
- in such cases, the NLRC of the courts can
assume jurisdiction.
 ART 231. REGISTRY OF UNIONS AND
FILE OF COLLECTIVE AGREEMENT
- The CBA is more than a contract, it is highly
impressed with public interest for it is an
essential instrument to promote industrial
peace.
- An unregistered CBA does not bar
certification election.
 ART 233. PRIVILEGE
COMMUNICATIONS
- Information and statements made at
conciliation proceedings shall be treated as
privileged communication and shall not be
used as evidence in the Commission.
- Conciliators and similar officials shall not
testify in any court or body regarding any
matters taken up at conciliation proceedings
conducted by them.
TITLE IV
LABOR ORGANIZATIONS
CHAPTER I
REGISTRATION AND CANCELLATION
 ART. 234. REQUIREMENT OF
REGISTRATION
 LABOR ORGANIZATION- A labor
organization is any union or association of
employees which exists in whole or in part
for the purpose :
- of collective bargaining or
- of dealing with employers concerning the
terms and conditions of employment.
 PURPOSE OF FORMATION OF LABOR
UNIONS: for securing a fair and just wages and
good working conditions for the laborers; and for
the protection of labor against the unjust
exactions of capital
 REQUIREMENTS BEFORE A LABOR
ORGANIZATION CAN BE REGISTERED
WITH THE BUREAU OF LABOR
RELATIONS:
1. Written application verified by the
Secretary/Treasurer, attested to by the
President;
2. Names of members comprising at least 20%
of the employees in the bargaining unit
where it seeks to operate;
3. Non-existence of CBA, otherwise, if one
exist, state in the application that it is filed
within the freedom period. It shall be
accompanied by the following attachments :
a. Registration fee in the amount of
P50.00;
b. Names of the officers and their
addresses;
 c. Minutes of the organizational meetings;
d. List of workers who participated in the
organizational meetings;
e. Names of all the members and the
number of employees in the bargaining
unit;
f. Annual Financial Report ( if the
applicant has been in the existence for
at least one year);
g. Four (4) copies of the constitution and
by-laws;
h. Minutes of the resolution of the
constitution and by-laws and the list of
members who participated in the
bargaining unit concerned; and
i. If there is an existing collective
bargaining agreement duly submitted to
the DOLE, a sworn statement that the
application for registration is filed during
the last 60 days of the agreement.
MANDAMUS is the proper remedy for the
unjustified refusal of the Bureau in approving the
application and the corresponding issuance of a
certificate of registration, it being a ministerial
duty.
REASON FOR REQUIREMENT OF
REGISTRATION – it is a condition sine qua non
for the acquisition of legal personality by labor
organizations, associations or unions, and the
possession or the rights and privileges granted
by law to legitimate labor organizations
 FEDERATION is an association of national
unions.
 REQUIREMENTS BEFORE
FEDERATION CAN BE ISSUED
CERTIFICATE OF REGISTRATION:
Aside from the application, which must be
accompanied with the requirements for
registration of a labor registration, the
application should also be accompanied by the
following:
1. Proof of affiliation of at least 10
locals or chapters, each of which
must be :
a. a duly recognized collective
bargaining agent in the
establishment of
b. supporting the registration
of such applicant federation
or national union;
2. The names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.
 Can a local union affiliate with a
federation? If so, how?
YES. The procedure of affiliation would
depend on whether the union is individually
registered or not.
If the union is independently registered, the
affiliation is by signing a contract of affiliation
with the labor union and the registration of such
contract with the BLR.
On the other hand, if the union Is not
independently registered, affiliation is done by
the application of the union with the federation
so it may be issued a charter certificate, to be
submitted with the BLR, including the following:
1. Copies of its constitution and by-laws
2. Statement of the set of officers and
books of accounts, all of which must be
certified by the Secretary/Treasurer and
attested to by the President.
 Can a union of supervisory employees
affiliate with a national federation of
labor organizations of rank and file
employees ?
YES, provided that:
a. The federation is not actively
involved in union affairs in the
company and
b. The rank and file employees are not
directly under the control of the
supervisors
A
A  EFFECTS WHEN A LOCAL UNION
DISAFFILIATE:
IT DEPENDS. If the labor union is
independently registered, the disaffiliation of
the union would not affect its being a legitimate
labor organization and therefor would continue
to have the rights and privileges of a legitimate
labor organization as well as the legal
personality as such.
On the other hand, if the labor union is
not independently registered, upon
disaffiliation, it would cease to be a legitimate
labor organization and would therefore no longer
have the legal personality and the rights and
privileges granted by law to legitimate
organization.
 EFFECT OF DISAFFILIATION WITH
EXISTING CBAs:
 IT DEPENDS. If the labor union is  ART 239. GROUNDS FOR
independently registered, existing CBAs would CANCELLATION OF UNION
continue to be valid as the labor organization REGISTRATION.
can continue administering the CBAs.
However, if the labor union is not
independently registered, existing CBAs would  GROUNDS FOR CANCELLATION OF
no longer be valid as there would no longer be UNION REGISTRATION:
any labor organization given by law the right to
administer the CBAs. 1. Misrepresentation, False statement or Fraud
in connection with:
 ENTITLEMENT TO UNION DUES IN - the adoption or ratification of the
CASE OF DISAFFILIATION: constitution and by-laws or
amendments thereto,
- If the labor union is independently - the minutes of ratification, and
registered, then the labor organization is - the list of members who took part in
entitled to the union dues and not the the ratification.
federation from which the labor organization 2. Failure to submit the document mentioned in
disaffiliated. the preceding paragraph
- within 30 days from adoption or
- On the other hand, if the labor union is not ratification of the constitution and
independently registered, then union dues by-laws or amendments thereto.
may no longer be collected as there would 3. Misrepresentation, false statement or fraud
no longer any labor union who is allowed to in connection with the:
collect such union dues from the employees. - election of officers,
- minutes of the election of officer and
- A union can affiliate anytime but disaffiliation the list of voters, or failure to submit
can be done only during the freedom period. these documents together with
If not within the freedom period, can be done - the list of the newly
only with the consent of the majority of the elected/appointed officers and their
workers. Provided it is independently postal addresses
registered otherwise it loses its personality. - within 30 days from election
The exception will only apply if it is not 4. Failure to submit the annual financial report
prohibited by the constitution and by-laws of to the Bureau
the federation of national union. - within 30 days after the closing of
every fiscal year and
misrepresentation, false entries and
 ART 236. DENIAL OF REGISTRATION; fraud
APPEAL - in the preparation of the financial
report itself;
Decisions of the BLR denying the registration 5. Acting as a labor contractor or engaging in
of a labor organization is appealable to the the “cabo” system, or otherwise engaging in
Secretary of Labor within 10 calendar days from any activity prohibited by law;
receipt, on grounds of: 6. Entering into collective bargaining
agreements which provide terms and
a. grave abuse of discretion; and conditions of employment below minimum
b. gross incompetence standard established by law;
7. Asking for or accepting attorney’s fees or
negotiation fees from the employers;
 ART 238. CANCELLATION OF 8. Other than for mandatory activities under
REGISTRATION; APPEAL this Code, checking off special assessment
or any other fees without duly signed
The certificate of registration of any legitimate individual written authorization of the
labor organization shall be cancelled by the BLR members;
if it has reason to believe, after due hearing, 9. Failure to submit a list of individual members
that the said labor organization no longer meets of the Bureau once a year or whenever
one or more of the requirements herein required by the Bureau; and
prescribed. 10. Failure to comply with the requirements
under Articles 237 and 238.
- Appeal may be filed within 15 days from
receipt of the decision to the Secretary of
Labor.
 REMEDY IN CASE THE BUREAU
SHOULD CANCEL THE REGISTRATION
OF THE UNION:
- to appeal to the Secretary of Labor within 10
calendar days on the grounds of:
1. grave abuse of discretion or
2. gross incompetence on the part of
the Bureau
- Should the office of the Secretary affirm the
decision of the Bureau, the final remedy is
a petition for certiorari to the SC under
Rule 65, Rules of Court.
CHAPTER II
RIGHTS AND CONDITIONS OF
MEMBERSHIP IN A LABOR
ORGANIZATION
 ART. 241. RIGHTS AND CONDITIONS
OF MEMBERSHIP IN A
LABOR ORGANIZATION
 REQUIREMENTS IN MAKING SPECIAL
ASSESSMENT
Art. 241(n). No special assessment or other
extraordinary fees may be levied upon the
members of a labor organization:
- UNLESS authorized by a written resolution
of a majority of all the members at a general
membership meetings duly called for the
purpose.
- The secretary of the organization shall
record the minutes of the meeting including:
- the list of all members present,
- the votes cast,
- the purpose of the assessment or fees,
- The record shall be attested by the
President.
- Therefore, the REQUIREMENTS when it
comes to special assessment are as follows:
1. there must be a written resolution
2. the resolution must have been approved by
a majority of all the members
3. the approval must be at a general
membership meeting duly called for the
purpose
 REQUIREMENTS OF THE LAW WITH
REGARDS TO CHECK-OFFS
Art. 241(o). Other than for
MANDATORY ACTIVITIES under the
Code.
- NO special assessment, attorney’s fees,
registration fees or any other extraordinary
fees may be checked off from any amount
due an employee.
- WITHOUT an individual written authorization
duly signed by the employee.
The authorization should specifically state
the:
a. amount
b. purpose and
c. beneficiary of the deduction.
EXCEPTION to the Requirement of
Individual Written Authorization:
- The law does not require individual written
authorizations from the employees when it
comes to fees for mandatory activities under
the Labor Code.
 CHECK-OFF is a method of deducting from an
employee’s pay at prescribed period, the
amounts due to the union for fees, fines or
assessment.
In Special Assessment, there must be a written
resolution authorized by a majority of the
members at a general meeting called for the
purpose.
- Check-off – there must be individual written
authorization of the members.
 PERSONS WHO ARE PROHIBITED
FROM BECOMING MEMBERS OF A
LABOR ORGANIZATION UNDER THE
LABOR CODE:
1. Those who have been convicted of a crime
involving moral turpitude. (Art. 241(f));
2. Subversives or those engaged in subversive
Activities.
- In general, a union is free to select its own
members, and no person has an absolute
right to membership in a trade union.
- The implementing rules require that the
remedies be exhausted within the union
before a complaint for any violation of the
union’s constitution and by-laws may be
filed.
 REQUIREMENTS BEFORE A CHECK-
OFF MAY BE DONE:
 RIGHTS OF LEGITIMATE LABOR
- Individual written authorizations of the ORGANIZATIONS
employees are required before a check-off
may be validly done.
 ART. 242. RIGHTS OF LEGITIMATE
EXCEPTIONS : LABOR ORGANIZATIONS

1. For mandatory activities provided under

the Code; and
2. When non-members of the union avail
of the benefits of the CBA.
- said non-members may be
assessed union dues equivalent to
that paid by members
- only by a Board Resolution
approved by majority of the
members in a general meeting
called for the purpose
NATURE AND PURPOSE OF CHECK-OFF
- to facilitate the collection of dues necessary
for the union’s life and sustenance.
 RIGHTS OF A LEGITIMATE LABOR
ORGANIZATION:
1. Undertake activities for benefit of members
2. Sue and be sued
3. Exclusive representative of all employees
4. Represent union members
5. Furnished by employers of audited financial
statements
6. Own properties
7. Exempted from taxes
 EFFECT OF CANCELLATION OF
REGISTRATION IN THE COURSE OF
PROCEEDINGS;

 GENERAL GROUPINGS OF THE - Where a labor union is a party in a

RIGHTS OF THE UNION MEMBERS: proceeding and later it loses its registration
(Under Art. 241) permit in the course or during the pendency
of the case, such union may continue still as
1. Political right is the right of the members to a party without need of substitution of
vote and be voted for, subject to lawful parties, subject however to the
provisions on qualifications and understanding that whatever decision may
disqualifications. be rendered therein will only be binding
2. Deliberative and Decision-Making Right is upon those members of the union who have
the members right to participate in not signified their desire to withdraw from
deliberations on major policy questions and the case before its trial and decision on the
decide them by secret ballot. merits.
3. Rights Over Money Matters is the right of
the members: TITLE V
a. against excessive fees COVERAGE
b. against unauthorized collection of
contributions or unauthorized  ART. 243. COVERAGE AND
disbursements
EMPLOYEE’S RIGHT TO
c. to require adequate records of
income and expenses SELF –ORGANIZATION

d. to access financial records

e. to vote on officers compensation GOVERNMENT – GOVERNMENT –
f. to vote on special assessment OWNED OR OWNED OR
g. to be deducted a special assessment CONTROLLED CONTROLLED
only with the member’s written CORPORATIONS CORPORATIONS
authorization. WITH A CHARTER WITHOUT
4. Right to Information is the member’s right CHARTER
to be informed about:
a. the organization’s constitution and
1. Employees cannot 1.The GOCC is
by- laws
stage strikes since created under
b. the collective bargaining agreement
they are governed Corporation Code,
c. about labor laws
by the Civil then employees are
Service Law. They covered by the
CHAPTER III are enjoined by Labor Code.
Therefore the
 Civil Service employees have the 9. recreational, social, athletic and cultural
Memorandum same rights as activities and facilities (Rules implementing
Circular No. 6, those as employees WO 180)
under pain of of private
administrative corporations, one of  THE FOLLOWING ARE CONSIDERED NOT
sanctions, from which is the right to NEGOTIABLE :
staging strikes, stage strikes.
demonstrations, 1. Those which require appropriation of
mass leaves, walk- funds, such as :
outs and other a. increase in salary emoluments and
concerted other allowance not presently
activities. provided for by law
b. facilities requiring capital outlays
2.Corporations with 2. The GOCC is c. car plan
original charters created under d. provident fund
cannot bargain with Corporation Code, e. special hospitalization, medical and
the government being governed by dental services
concerning the the Labor Code, they f. rice/sugar/other subsidies
terms and can bargain with the g. travel expenses
conditions of their government h. increase in retirement benefits
employment. concerning the terms
However, they can and conditions of 2. Those that involve the exercise of
negotiate with the their employment. management prerogatives, such as :
government on Thus, they have an
those terms and unlimited bargaining - appointments
conditions of rights. - promotion
employment which - assignments/details
are not fixed by law. - reclassification/upgrading of position
Thus, they have a - revision of compensation structure
limited bargaining - penalties imposed as a result of
rights. disciplinary actions
- selections of personnel to attain
seminar, trainings. Study grants
- distribution of work load
- external communication linkages
3. Can only form, 3. Can form, join or
join or assist Assisi labor - Government employees and employees of
labor organization for government-owned and controlled
organization for purposes of CBA, corporations with original charters may
purposes not etc. bargain, however, such bargaining power
contrary to law. is limited.
 RATIONALE : GOCCs INCORPORATED
UNDER THE CORP. CODE ALLOWED TO
ORGANIZE:
 THE FOLLOWING ARE CONSIDERED 1. they are not involved in public service
NEGOTIABLE IN GOCC WITH ORIGINAL 2. terms of employment are not fixed by law
CHARTER: 3. they are governed by the provisions of the
Labor Code not by the Civil Service Law
1. schedule of vacation and other leaves
2. work assignment of pregnant women  EMPLOYEES COVERED BY THE RIGHT
3. personnel growth and development
TO SELF- ORGANIZATION:
4. communication system – lateral and vertical
5. provision for protection and safely
6. provision for facilities for handicapped 1. Commercial
personnel 2. Industrial
7. provision for first-aid medical services for 3. Agricultural enterprises, including:
married women - charitable
8. annual medical/physical examination - religious
- education or
- medical institution
 EMPLOYEES WITH LIMITED RIGHT TO act as its representatives, and to see to it that its
SELF- ORGANIZATION: interests are well protected. The employer is not
assured of such protection if these employees
1. Self- employed themselves are union members.
2. Without definite employers
3. Ambulant
4. Intermittent and Itinerant  ART. 246.
5. Rural worker “THE RIGHT TO SELF-ORGANIZATION
- they have the right to self-organization but SHALL NOT BE ABRIDGED” MEANS:
only for their mutual aid and protection.
It shall be unlawful for any person to:
restrain,
 EMPLOYEES WHO ARE NOT coerce,
GRANTED THE RIGHT TO SELF- discriminate against, or
ORGANIZATION: unduly interfere
with employees and workers in their
1. Members of the Armed Forces of the exercise of the right to self-organization.
Philippines, including police officers, (Art. 246)
policemen, firemen and jail guards;
2. High-level employees Any act intended to weaken or defeat the
- whose functions are normally right is regarded by law as an offense, which is
considered as policy-making or technically called “unfair labor practice.”
managerial
- whose duties are of a highly confidential
or highly technical in nature ( EO 180,
sections 3-4)
3. Government employees occupying high
positions TITLE VI
4. Employees of international organizations
with immunities
UNFAIR LABOR PRACTICES
5. Confidential employees
6. Cooperative members who are also CHAPTER I
employees CONCEPT
- Foreigners validly working in the
Philippines can form labor organizations,  ART. 247 UNFAIR LABOR
provided, the same right to form, join or PRACTICES
assist in the formation of labor unions is also
given to Filipinos in their country of origin.  NATURE OF UNFAIR LABOR
This embodies the principle of PRACTICES:
reciprocity.
1. violate the constitutional right of workers and
 Extent of the Right to Self-Organization employees to self-organization,
2. are inimical to the legitimate interests of both
a. To form, join and assist labor organizations labor and management, including their right
- for the purpose of collective bargaining to bargain collectively and otherwise deal
through representatives of their own choosing with each other in an atmosphere of
and freedom and mutual respect,
b. To engage in lawful concerted activitiesfor the 3. disrupt industrial peace and
- same purpose 4. hinder the promotion of healthy and stable
- for their mutual aid and protection labor-management relations.

 ART 245. INELIGIBILITY OF  PRESCRIPTIVE PERIOD FOR FILING

MANAGERIAL EMPLOYEES TO JOIN
ANY LABOR ORGANIZATION; RIGHT OF
SUPERVISORY EMPLOYEES.
Reason for ineligibility – in the collective
bargaining process, managerial employees are
supposed to be on the side of the employer, to
CRIMINAL AND CIVIL CASES FOR ULP:
- The prescriptive period of filing ULP cases
whether it be civil or criminal is one year
from the accrual of the ULP act.
- The prescriptive period for the criminal case
is suspended once the administrative case
 has been filed and would only continue
running once the administrative case has
attained finality.
- HOWEVER: Final judgment in the
administrative proceedings shall not be
binding in the criminal case nor shall be
considered as an evidence of guilt but
merely as a proof of compliance of the
requirements prescribed by the Code.
Prerequisite for filing criminal case:
final judgment in the administrative proceeding
finding that ULP has been committed
CHAPTER II
UNFAIR LABOR PRACTICES
OF EMPLOYERS
 ART 248. ULP THAT MAY BE COMMITTED
BY AN EMPLOYER
1. To interfere with, restrain or coerce employees
- in the exercise of their right to self-
organization;
2. To require as a condition for employment
that a person or an employee
- shall not join a labor organization or
- shall withdraw from one to which he
belongs;
3. To contract out services or functions being
performed by union members
- when such will interfere with, restrain or
coerce employees in the exercise of
their right to self-organization;
4. To initiate, dominate, assist or otherwise
interfere
- with the formation or administration of
any labor organization,
- including the giving of financial or other
support to it or its organizers or officers;
5. To discriminate in regard to wages, hours of
work, and other terms and conditions of
employment
- in order to encourage or discourage
membership in any labor organization .
 TEST OF DISCRIMINATION:
a. whenever benefits or privileges given to one
is not given to the other under similar or
identical conditions
b. when directed to encourage or discourage
union membership
6. To dismiss, discharge or otherwise prejudice
or discriminate against an employee
- for having given or being about to give
testimony under this Code;
7. To violate the duty to bargain collectively as
prescribed by this Code;
8. To pay negotiation or attorney’s fees to the
union or its officers or agents
- as part of the settlement of any issue in
collective bargaining or any other
disputes; or
9. To violate a collective bargaining agreement.
NOTE: violation must be gross and with
respect to the economic provision of the
CBA
 YELLOW DOG CONTRACT: A
promise exacted from workers as a
condition employment that they are not to
belong to, or attempt to foster, a union
during their period of employment.
- It is contrary to public policy for it is
tantamount to involuntary servitude.
- It is entered into without consideration for
employees waive their right to self-
organization
- Employees are coerced to sign
contracts disadvantageous to their
family.
 Does Art. 248 (c ) mean that an
employer cannot contract out work?
NO. Contracting out services is not ULP
per se. It is only ULP when the following
conditions exist:
1. the service contracted- out are
being performed by union members;
and
2. such contracting-out interferes with,
restrains, or coerce employees in
the exercise of their right to self-
organization.
- HOWEVER, when the contracting-out is
being done to minimize expenses, then it is
a valid exercise of management prerogative.
 THREE COMPONENTS OF ART. 248
(e ): (DISCRIMINATION)
1. It prohibits discrimination in terms and
conditions of employment in order to
encourage or discourage membership in
the union;
2. It gives validity to union security
agreements;
3. It allows an agency shop arrangement
whereby agency fees may be collected
from non-union members.
SECURITY ARRANGEMENTS are stipulations
in the CBA requiring membership in the
contracting union as a condition for employment
or retention of employment in the company.
 PRINCIPLES OF UNION SECURITY
ARRANGEMENTS:
1. Protection. To shield union
members from whimsical and
abusive exercise of
management prerogatives.
2. Benefits. An additional
membership will insure
additional source of income
to the union in the form of
union dues and special
assessment.
3. Self-preservation. It
strengthens the union
through selective acceptance
of new members on the basis
of commitment and loyalty.
 DIFFERENT KINDS OF UNION
SECURITY ARRANGEMENTS:
1. CLOSED- SHOP AGREEMENT - the
employer undertakes not to employ any
individual who is not a member of the
contracting union and the said individual
once employer must, for the duration of the
agreement, remain a member of the union in
good standing as a condition for continued
employment.
2. UNION – SHOP AGREEMENT -stipulation
whereby any person can be employed by
the employer but once employed such
employee must, within a specific period,
become a member of the contracting union
and remain as such in good standing for
continued employment for the duration of
the CBA.
3. MAINTENANCE OF MEMBERSHIP
CLAUSE - the agreement DOES NOT
require non-members to join the contracting
union BUT provides that those who are
members thereof at the time of the
execution of the CBA and those may
thereafter on their own volition become
members must for the duration of the
agreement maintain their membership in
good standing as a condition for continued
employment in the company for the duration
of the CBA.
4. PREFERENTIAL SHOP AGREEMENT -
The employer agrees to give preference to
the members of the bargaining union in
hiring or filing vacancies and retention in
case of lay-off. But the employer has the
right to hire in open market if union
members are not available. Usually,
descendants (children) are also given
preference in employment.
5. AGENCY SHOP AGREEMENT - An
agreement whereby employees must either
join the union or pay to the union as
exclusive bargaining agent a sum equal to
that paid by the members.
- This is directed against “FREE
RIDER” employees who benefit from
union activities without contributing to
union support to prevent a situation of
non-union members enriching
themselves at the expense of union
members.
 THE REQUIREMENTS FOR A VALID
UNION OR CLOSE SHOP AGREEMENT
(SO THAT THE EMPLOYER CAN
TERMINATE THE EMPLOYEE FOR
VIOLATION OF SAID AGREEMENT):
1. It must be expressed in a clear and
unequivocal way so as not to leave room for
interpretation because it is a limitation to the
exercise of the right to self-organization.
- Any doubt must be resolved against close-
shop.
2. It can only have prospective application and
cannot be applied retroactively.
3. Can only be exercised by giving the
employee his right to due process.
- The employer has the right to satisfy
itself that there are sufficient bases for
the request of the union.
- The termination of the employee is not
automatic upon the request of the union.
4. Cannot be applied to employees who are
already employees of the rival union nor to
the employees based on their religious
beliefs.
CHAPTER III
UNFAIR LABOR PRACTICES OF
LABOR ORGANIZATIONS
 ART. 249. UNFAIR LABOR PRACTICES
OF LABOR ORGANIZATIONS
a. To restrain or coerce employees in the
exercise of their right to self-organization.
However, a labor organization shall have the
right to prescribe its own rules with respect
 to the acquisition or retention of
membership;
b. To cause or attempt to cause an employer to
discriminate against an employee, including
discrimination
c. To violate the duly or refuse to bargain
collectively with the employer provides that it
is the representative of the employees;
d. To cause or attempt to cause an employer to
pay or deliver or agree to pay or deliver any
money or other things of value, in the nature
of an exaction, for services which are not
performed or not to be performed, including
the demand for a fee for union negotiations;
e. To ask for a accept negotiation or attorney’s
fees from employers as part of the
settlement of any issue in collective
bargaining or any other dispute; or
f. To violate a collective bargaining agreement.
NOTE: Violation must be gross with respect to
economic provisions of the CBA.
 COLLECTIVE BARGAINING –negotiation by
an organization or group of workmen, in
behalf of its members, with the employer,
concerning wages, hours of work and other
terms and conditions of employment and
the settlement of disputes by negotiation
between an employer, and the
representative of his employees.
 PROCEDURE IN COLLECTIVE
BARGAINING:
1. Written notice with statement of proposals
2. Reply by the other party
3. In case of differences, either party may
request for a conference
4. If not settled NCMB may intervene and
encourage the parties to submit the dispute
to a voluntary arbitrator
5. If not resolved, the parties may go to where
they want and resort to any other lawful
means.

 PERSONS CIVILLY LIABLE FOR ULP:  COLLECTIVE BARGAINING

AGREEMENT- (CBA)
1. Officers and agents of employer – negotiated contract between a legitimate
2. Labor organization, officers and agents labor organization and the employer
concerning :
 PERSONS CRIMINALLY LIABLE FOR - wages,
ULP: - hours of work and
- all other terms and
1. Agents and officers who participated or - conditions of employment in a
authorized or ratified the act. bargaining unit, including
2. Agents, representatives, members of the mandatory provisions for grievances
government board, including ordinary and arbitration machineries.
members
 MANDATORY PROVISIONS OF THE
 FEATHERBEDDING - refers to the practice of CBA:
the union or its agents in causing or attempting
to cause an employer to pay or deliver or agree 1. wages
to pay or deliver money or other things of value, 2. hours of work
in the nature of exaction, for services which are 3. grievance machinery
not performed or not to be performed, as when a 4. voluntary arbitration
union demands that the employer maintain 5. family planning
personnel in excess of the latter’s requirements 6. rates of pay
7. mutual observance clause
TITLE VII
COLLECTIVE BARGAINING AND In addition, the Bureau requires that the CBA
ADMINISTRATION OF AGREEMENTS should include a clear statement of the terms of
the CBA.
 ART 250. PROCEDURE IN
 ART 253. DUTY TO BARGAIN
COLLECTIVE BARGAINING
COLLECTIVELY WHEN THERE EXISTS A
COLLECTIVE BARGAINING
AGREEMENT
 BARGAINING UNIT- a group of employees of
a given employer, comprised of all or less
that all the entire body of the employees,
consistent with equity to the employer, -
indicate to be best suited to serve the
reciprocal rights and duties of the parties
under the collective bargaining provision of
the law.
 FOUR FACTORS IN DETERMINING THE
APPROPRIATE BARGAINING
AGREEMENT:
1. The Express Will or Desire of the
Employees (Globe Doctrine);
2. The Substantial and Mutuality Interest
Factor;
3. Prior Collective Bargaining History;
4. Employment Status, such as
- temporary
- seasonal, and
- probationary employee
 CERTIFICATION ELECTION - process of
determining by secret ballot the sole and
exclusive bargaining agent of the employees in
an appropriate bargaining unit, for purposes of
collective bargaining.
 DIRECT CERTIFICATION - process whereby
the Med-Arbiter directly certifies a labor
organization of an appropriate bargaining unit of
a company after a showing that such petition is
supported by at least a majority of the
employees in the bargaining unit. It is no
longer allowed. (EO 111)
 VOLUNTARILY RECOGNITION
- process whereby the employer recognizes a
labor organization as the exclusive
bargaining representative of the employees
in the appropriate bargaining unit after a
showing that the labor organization is
supported by at least a majority of the
employees in the bargaining unit.

 THINGS TO CONSIDER IN
DETERMINING THE COMMUNITY OF
INTEREST DOCTRINE:
CERTIFICATION CONSENT
1. similarity in the scale and manner of ELECTION ELECTION
determining earnings
2. similarity in employment benefits, hours of 1. aimed at 1. an agreed one,
work and other terms and conditions of determining the its purpose
employment sole and being merely to
3. similarity in the kinds of work performed exclusive determine the
4. similarity in the qualifications, skills and bargaining agent issue of majority
training of the employees of all the representation of
5. frequency of contract or interchange among employees in an all the workers in
the employees appropriate the appropriate
6. common supervision and determination of bargaining unit collective
labor-relations policy for the purpose bargaining unit
7. history of previous collective bargaining of collective
8. desires of the affected employees bargaining;
9. extent of union organization
2. separate and 2. from the very
 AUTOMATIC RENEWAL CLAUSE - this is distinct from a nature of
under the present Article which establishes an consent election consent election,
automatic renewal clause the CBA is effective it is a separate
and enforceable even after the expiration of the and distinct
period fixed by the parties as long as no new process and has
agreement is reached by them. nothing to do
with the import
 MODES OF CHOOSING THE and effect of a
certification
EXCLUSIVE BARGAINING UNIT: election
1. SELECTION
- certification election EFFECT OF VOLUNTARILY
RECOGNITION BY THE EMPLOYER:
2. DESIGNATION
a) voluntary recognition - By voluntarily recognition of the employer,
b) direct certification the labor organization recognized by the
 employer as the exclusive bargaining agent
may collectively bargain with the employer.
 WHEN IS THE CONDUCT OF A
CERTIFICATION ELECTION MANDATORY
ON THE PART OF THE BLR?
1. In an unorganized company –
a. upon the filing of a verified petition by a
legitimate labor organization; or
b. upon the filing of a petition by the
employer when such employer is
requested by the employees to bargain
collectively.
2. In an organized company upon the filing of
a verified petition by a legitimate labor
organization questioning the majority status
of the incumbent bargaining agent within the
60-day freedom period before the expiration
of a CBA.
- The petition must be supported by
the written consent of at least 25%
of all the employees in the
appropriate bargaining unit.
NOTE: In case the establishment is organized,
the employer cannot file a petition for
certification election; only a legitimate labor
organization can file such petition.
 WHEN MAY A LABOR ORGANIZATION
FILE A PETITION FOR CERTIFICATION
ELECTION:
1. Where the establishment is not
organized, it can file a petition for
certification election at any time, subject
however to the ONE-ELECTION-PER-YEAR
RULE.
2. In an organized establishment –
a. when there is a CBA, the labor
organization can file a petition for
certification election within the 60-day
freedom period (CONTRACT-BAR
RULE )
b. when there is no CBA, then the labor
organization can file a petition for
certification election at any time, subject
to the “Deadlock” bar Rule.
 DEADLOCK BAR RULE, a petition for
certification election can only can only be
entertained if there is no pending bargaining
deadlock submitted to conciliation or arbitration
or had become the subject of a valid notice of
strike or lockout.
 REQUISITES BEFORE A LABOR UNION
CAN BE DECLARED A WINNER:
1. Majority of the eligible voters cast their
votes.
2. Obtained majority of the valid votes cast.
(DOUBLE MAJORITY)
 HOW TO DETERMINE THE TWO
MAJORITY RULE :
1. In determining valid votes, eliminate spoiled
ballots but include challenged votes
2. In determining the eligible votes cast,
include spoiled ballots
 RUN-OFF ELECTIONS
This happens when:
a. The election provides for at least 3
choices(“no union” is always a
choice)
b. The election results in none of the
choices received the majority
votes(50%+1) of the valid votes cast
Run-off shall be conducted:
a. Between the labor union receiving
the two highest number of votes
b. Provided that the total number of
votes for all the contending unions is
at least 50% of the total votes cast
 RULES WHICH WILL PREVENT THE
HOLDING OF A CERTIFICATION
ELECTION:
1. Contract-Bar Rule
2. One-Year Bar Rule
3. Deadlock Bar Rule
 THE CONTRACT-BAR RULE provides that
while a valid and registered CBA is subsisting,
the BLR is not allowed to hold an election
contesting the majority status of the incumbent
union.
EXCEPTIONS TO THE RULE:
1. Where it is shown that because of a
schism in the union the contract can no
longer serve to promote industrial
stability, and the holding of the election
is in the interest of the employees right
in the selection of their bargaining
representatives.
2. Basic to the contract bar rule is the
proposition that the denial of the right to
select representatives can be justified
only where stability is deemed
paramount.
 3. Certain types of contracts which do not
foster industrial stability such as
contracts where the identity of the
representative is in doubt or those that
are prematurely renewed
 REQUIREMENTS IN ORDER TO
INVOKE CONTRACT-BAR RULE:
1. Agreement is in writing, signed by all
contracting parties.
2. It must contain the terms and conditions of
employment.
3. Covered employees in an appropriate
bargaining unit.
4. It is for a reasonable period or duration.
5. It must be ratified.
6. It must be registered with the Bureau.
7. The violation of the contract bar rule or the
existence of a duly registered CBA must be
specifically impleaded as a defense.
EXCEPTIONS TO THE CONTRACT-
BAR RULE:
1. CBA is not registered.
2. CBA deregistered.
3. CBA was hastily concluded way ahead of
the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace
because of schism
6. CBA was concluded in violation of an order
enjoining the parties from entering into a
CBA until the issue of representation is
resolved.
 EFFECT OF AN INVALID AND
UNREGISTERED CBA:
- Then there is no bar and therefore a
certification election may be held.
NOTE: Registration of CBA only puts into effect
the contract-rule bar rule but the CBA itself is
valid and binding even if unregistered.
 “SUBSTITUTIONARY DOCTRINE”-- It
means that where there occurs a shift in the
employees’ union allegiance after the execution
of a collective bargaining contract with the
employer, the employees can change their
agent – the labor union, but the collective
bargaining contract which is still subsisting,
continues to bind the employees up to its
expiration date. They, may, however, bargain
for the shortening of said expiration date.
 DEADLOCK – arises when there is an
impasse which presupposes reasonable effort at
good faith bargaining which, despite noble
intentions, did not conclude in agreement
between the parties.
 JURISDICTIONAL PRECONDITIONS OF
COLLECTIVE BARGAINING: (Kiok Loy
Case)
1. Possession of status of majority
representation
2. Proof of majority representation
3. Clear and unequivocal demand to bargain
collectively
“DUTY TO BARGAIN COLLECTIVELY”-
The performance of a mutual obligation to meet
and convene
- promptly and expeditiously and in good faith,
for the purpose of negotiating an agreement with
the respect to
- wages,
- hours of work and
- all other terms and conditions of
employment, including
- proposals for adjusting any
grievances or questions arising
under such agreement and
- executing a contract incorporating
such agreements if requested by
either party.
- When there is a collective bargaining
agreement, the DUTY TO BARGAIN
COLECTIVELY shall mean that neither party
shall terminate or modify such agreement
during its lifetime.
- However, either party can serve a
written notice to terminate or modify
the agreement at least 60 days prior
to its expiration period.
 Does the Duty to Bargain Collectively
carry with it the duty to agree to a
proposal or to make a concession?
NO. The duty to bargain collectively does
not compel any party
- to agree to a proposal or
- to make a concession
 EXAMPLES OF BAD FAITH
BARGAINING:
1. Surface Bargaining – occurs when
employer constantly changes its positions
over the agreement.
2. Boulwarism – occurs
a. when the employer directly bargains
with the employee disregarding the
union.
 b. Employer submits its proposals and
adopts a take it or leave it stand. This is
not negotiation because the take it or
leave it stand implies threat.
3. Side Bar Technique
 DUTIES OF THE PARTIES DURING THE
60-DAY PERIOD:
1. to keep the status quo and
2. to continue in full force and effect and the
terms and conditions of the existing
agreement during the 60-day period and/or
until a new agreement is reached by the
parties. (Art. 253)
 ART 253 – A. TERMS OF A
COLLECTIVE BARGAINING
AGREEMENT
DURATION OF THE CBA:
1. With respect to the representation aspect
the same lasts for 5 years.
2. With respect to other provisions, the same
shall last for a maximum period of 3 years
after execution.
RULE ON RETROACTIVE EFFECTS OF
AGREEMENT PROVISIONS:
- Any agreement on such other provisions of
the CBA if made within 6 months after the
date of expiry, there is AUTOMATIC
RETROACTION to the day immediately
following such date of expiry.
- If not within 6 months, the parties may
agree to the DATE OF RETROACTION.
This rule applies only if there is an
EXISTING AGREEMENT. IF THERE IS NO
EXISTING AGREEMENT, there is no
retroactive effect because the date agreed
upon shall be the start of the period of
agreement.
TAKE NOTE: Article 253-A on retroaction does
not apply if the provisions were imposed by the
Secretary of Labor by virtue of arbitration. It
applies only if the agreement was voluntarily
made by the parties.
 SUCCESSOR-IN-INTEREST DOCTRINE
occurs when an employer is succeeded by
another employer, the successor-in-interest who
is a buyer in good faith has no liability to
employees in continuing employment and
collectively bargain because they are contracts
in personam, as well as for cases of unfair labor
practice.
EXCEPTIONS TO THE SUCCESSOR-IN-
INTEREST DOCTRINE:
1. If the transfer is done in bad faith;
2. If it was done to circumvent the obligation of
the seller;
3. If the successor expressly assumes the
obligations of the seller
 BARGAINING IMPASSE – exists when good
faith bargaining on the part of the parties filed to
resolve the issue and there are no definite plans
for further efforts to break the deadlock
 ART 254. NO INJUNCTION RULE
No temporary or permanent injunction pr
restraining order in any case involving or
growing out of labor disputes shall be issued
by any court or other entity, except as otherwise
provided in Articles 218 and 264 of this Code.
 ART 255. EXCLUSIVE BARGAINING
REPRESENTATION AND WORKER’S
PARTICIPATION IN POLICY AND
DECISION-MAKING
IN DETERMINING THE APPROPRIATE
BARGAINING UNIT THE FF. MUST BE
CONSIDERED:
1. Will of employees
2. Affinity and unity of employee’s interest
3. Prior collective bargaining history
4. Employment status, such as temporary,
seasonal and probationary employees.
 ONE-UNION, ONE-COMPANY POLICY- the
proliferation of unions in an employer unit is
discouraged as a matter of policy unless there
are compelling reasons which would deny a
certain class of employees the right to self-
organization for purposes of collective
bargaining.
EXCEPTIONS: supervisory employees who are
allowed to form their own unions apart from the
rank-and-file employees
LABOR MANAGEMENT COUNCILS deal with
the employer on matters affecting employee’s
rights, benefits and welfare. They may be
formed even if there is already a union in the
company.
TITLE VII- A
(as incorporated by RA 6715)
 GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
 ART 260. GRIEVANCE MACHINERY
AND VOLUNTARY ARBITRATION
 GRIEVANCE MACHINERY - Mechanism for
the adjustment of controversies or
disputes arising from the
interpretation or implementation of
the CBA and the interpretation or
enforcement of personnel policies
 GRIEVANCE ARISES: when a dispute or
controversy arises over the implementation or
interpretation of a CBA or from the
implementation or enforcement of company
personnel policies, and either the union or the
employer invokes the grievance machinery
provision for the adjustment or resolution of such
dispute or controversy.
- both parties must resort to grievance
machinery
 ART 261. JURISDICTION OF
VOLUNTARY ARBITRATORS OR PANEL
OF VOLUNTARY ARBITRATORS
 JURISDICTION OF VOLUNTARY
ARBITRATORS:
1. EXCLUSIVE ORIGINAL JURISDICTION
CONFERRED BY LAW
a) interpretation or implementation of the
CBA
b) interpretation or enforcement of
company personnel polices
- It is the labor arbiter and not the grievance
machinery which has jurisdiction over
dismissal pursuant to the union security
clause.
2. JURISDICTION BY AGREEMENT OF THE
PARTIES
- voluntary arbitrators shall also hear and
decide all other disputes including ULP and
bargaining deadlocks.
 GROUNDS FOR JUDICIAL REVIEW OF
DECISIONS OF VOLUNTARY
ARBITRATORS:
1. Lack of jurisdiction
2. Grave abuse of discretion
3. Violation of due process
4. Denial of substantial justice
5. Erroneous interpretation of the law
TITLE VIII
STRIKES AND LOCKOUTS AND
FOREIGN INVOLVEMENT IN TRADE
UNION ACTIVITIES
CHAPTER I
STRIKES AND LOCKOUTS
 ART. 263. STRIKES, PICKETING AND
LOCKOUTS
 STRIKE - Any temporary stoppage of work by
the concerted action of employees as a result of
an industrial or labor dispute.
IMPORTANCE
- it is the most effective weapon of labor in
protecting the rights of employees to
improve the stems and conditions of their
employment.
 STRIKE-BREAKER- any person who
obstructs, impedes or interferes by force,
violence, coercion, threats or intimidation with
any peaceful picketing by employees during any
labor controversy affecting wages, hour or
conditions of work or in the exercise of the right
to self organization or collective bargaining
 STRIKE AREA – the establishment,
warehouse, depots, plants or offices, including
the sites or premises used as runaway shops of
the employer struck against, as well as the
immediate vicinity actually used by picketing
strikers in moving to an fro before all points of
entrance to and exit front said establishment
 LOCKOUT - means the temporary refusal of
an employer to furnish work as a result of an
industrial or labor dispute.
 GROUNDS FOR THE DECLARATION
OF STRIKE
1. deadlock in collective bargaining; and/or
2. unfair labor practices
 WHO CAN DECLARE ECONOMIC
(Bargaining Deadlock) STRIKE:
1. Collective bargaining agent
 WHO CAN DECLARE POLITICAL (ULP)
STRIKE:
1. collective bargaining agent
2. Legitimate labor organization in behalf of
members - It is that span of time allotted by law for the
parties to settle their disputes in a peaceful
 SIT-DOWN STRIKE - is characterized by a manner, before staging a strike or lockout.
temporary work stoppage of workers who
thereupon seize or occupy property of the NUMBER OF DAYS IN THE COOLING
employer or refuse to vacate the premises of the OFF PERIOD:
employer.
1. If the ground for the intended strike or
Is a sit-down strike legal? lockout is DEADLOCK IN COLLECTIVE
NO. It borders to a criminal act because BARGAINING, the cooling-off period is 30
the employees trespass on the premises of the days from the filing of the notice of strike.
employer. 2. If the ground for the intended strikes is
UNFAIR LABOR PRACTICE, the cooling-off
 WILDCAT STRIKE- is a work stoppage that period is 15 days from the filing of the notice
violates the labor contract and is not authorized of strike. Therefore:
by the union.
- HOWEVER, in case of dismissal from
Is a wildcat strike valid? employment of union officers duly in
NO. It is not valid because it fails to accordance with the union constitution and
comply with certain requirements of the law, to by-laws, which may constitute union busting
wit, notice of strike, vote, and report on strike where the existence of the union is
vote. threatened, the 15-day cooling-off period
shall NOT apply AND the union may take
Is a “welga ng bayan” legal? action immediately.
NO. A “welga ng bayan” is illegal
because it is a political strike and therefore there - the cooling off periods and seven-day
is no bargaining deadlock nor any ULP. It is a strike ban is mandatory otherwise the
political rally. purposes for which they have been imposed
would not be achieved
 PICKETING - is the marching to and fro the
employer’s premises, usually accompanied by  EXCEPTION TO THE COOLING-OFF
the display of placards and other signs making PERIOD:
knowing the facts involved in a labor dispute.
This is an exercise of ones freedom of speech. - In case of dismissal from employment of
union officers duly elected in accordance
ECONOMIC ULP STRIKE with the union constitution and by-laws,
STRIKE which may constitute union busting where
the existence of the union is threatened, he
1. Voluntary strike 1. Involuntary : 15-day cooling-off period shall NOT apply
because the labor AND the union may take action
employee will organization is immediately but they must still observe the
declare strike to forced to go on mandatory 7 day period before they can
compel strike because stage a valid strike.
management to the ULP
grant its committed  STRIKE VOTE - is a requirement wherein the
demands. against them by decision to declare a strike must be:
the employer. It
is an act of self- 1. approved by a majority of the total union
defense since membership in the bargaining unit
the employees concerned,
are being 2. obtained by secret ballot
pushed to the 3. in meetings or referenda called for the
wall and their purpose.
only remedy is to
strike. PURPOSE OF A STRIKE VOTE - is to ensure
that the intended strike is a majority decision.

 COOLING –OFF PERIOD - that period of time  When should the strike vote be
given the NCMB to mediate and conciliate the submitted?
parties.
 The report on the strike vote must be
submitted to the DOLE at least 7 days before
the intended strike subject to the cooling-off
period.
 TESTS FOR THE LEGALITY OF A
STRIKE:
1. Whether or not is has a lawful PURPOSE.
2. Whether or not is complies with the
PROCEDURAL REQUIREMENTS OF THE
LAW, to wit –
- notice of strike
- 30/15-day cooling-off period
- strike vote
- 7-day strike ban
3. Whether or not it is executed through
LAWFUL MEANS.
- NOTE: The 3 tests must concur.
 EFFECT OF GOOD FAITH OF
STRIKERS ON LEGALITY OF STRIKE:
- A strike may be considered legal where the
union believed that the company committed
ULP and the circumstances warranted such
belief in good faith, although subsequently
such allegations of ULP are found out as not
true.
 WHEN CAN THE SEC. OF LABOR
ASSUME JURISDICTION OVER A
STRIKE?
1. there exists a labor dispute causing or likely
to cause a strike or lockout in a industry
indispensable to the national interest,
2. the Secretary of Labor and Employment
may assume jurisdiction and EITHER:
- decide it or
- certify the same to the Commission for
COMPULSORY ARBITRATION.
INDISPENSABLE INDUSTRY is based solely
upon the discretion of the Secretary of Labor
 EFFECTS OF THE ASSUMPTION OF
JURISDICTION OF THE SECRETARY
1. automatically enjoining the intended or
impending strike or lockout as specified in
the assumption or certification order.
2. if one has already taken place at the time of
assumption or certification, all striking or
locked out employees shall immediately
return to work and
3. the employer shall immediately resume
operations and readmit all workers under
the same terms and conditions prevailing
before the strike or lockout.
4. A motion for reconsideration does not
suspend the effects as the assumption order
is immediately executory.
 TOTALITY DOCTRINE:
“… the culpability of an employer’s remarks
were to be evaluated not only on the basis of
their implicit implications, but were to be
appraised against the background of and in
conjunction with collateral circumstances.
- Under this “doctrine” expressions of
opinion by an employer which, though
innocent in themselves, frequently were held
to be culpable because
- of the circumstances under which they
were uttered,
- -the history of the particular employer’s
labor relations of anti-union bias or
- -because of their connection with an
established collateral plan of coercion or
interference.” (Rothenberg)
 ISSUES THAT THE SECRETARY OF LABOR
CAN RESOLVE WHEN HE ASSUMES
JURISDICTION OVER A LABOR DISPUTE:
1. Only issues submitted to the Secretary may
be resolved by him. (PAL vs. Sec. of
Labor, 23 January 1991)
2. Issues submitted to the Secretary for
resolution and such issues involved in the
labor dispute itself. (St. Scholastica’s
College vs. Torres, 29 June 1992)
3. Secretary of Labor may subsume pending
labor cases before Labor Arbiters which are
involved in the dispute. (Int’l
Pharmaceuticals vs. Sec of Labor, 09
January 1992).
4. Power of Sec. of Labor is plenary and
discretionary. (St. Luke’s Medical Center
vs. Torres, 29 June 1993; reiterated in PAL
vs. Confesor, 10 March 1994).
 TESTS TO DETERMINE VALIDITY OF
STRIKES.
1. PURPOSE TEST - The strike must be due
to either
- -bargaining deadlock and/or
- -unfair labor practice.
2. MEANS EMPLOYED TEST- -A strike may
be legal at its inception but eventually be
declared illegal if the strike is accompanied
by violence which violence is widespread,
pervasive and adopted as a matter of policy
 and not merely violence which is sporadic
which normally occur in a strike area.
3. IN ACCORDANCE WITH PROCEDURAL &
SUBSTANTIVE REQUIREMENTS OF LAW
 In Case the strike is declared legal,
are the strikers entitled to strike duration
pay?
IT DEPENDS.
1. If it is an Economic Strike
NO, the strikers are NOT entitled to strike
duration pay since the employer should get the
equivalent day’s work for what the pays his
employees.
2. If it is a ULP Strike
Would depend on the authority deciding
(discretionary).
GENERAL RULE:
- Strikers are not entitled to their wages
during the period of a strike, even if the
strike is legal.
EXCEPTIONS:
1. Where the strikers voluntarily and
unconditionally offered to return to work,
but the employer refused to accept the
offer.
- -They are entitled to backwages from
the date the offer was made
- -e.g. of Unconditioned offer: “we will
return tomorrow” and NOT “willing to
return provided…”
2. Where there is return-to-work and the
employees are discriminated against.
- -They are entitled to backwages
from the date of discrimination.
 RULES IN STRIKES IN HOSPITALS
1. It shall be the duty of striking employees or
locking-out employer to provide and maintain an
effective skeletal workforce of medical and other
health personnel for the duration of the strike or
lock-out.
2. Secretary of Labor may immediately assume
jurisdiction within 24 hours from knowledge of
the occurrence of such strike or lock-out or
certify it to the Commission for compulsory
arbitration
GOCCs organized under the Corporation Code
with no original charter of its
own can declare a strike.
 ART 264. PROHIBITED ACTIVITIES
1. NO labor organization or employer shall
declare a strike or lockout
- without first having bargained
collectively in accordance with Title
VII of this Book or
- without first having filed the notice
required in the preceding Article or
without the necessary strike or
lockout vote first having been
obtained and reported to the
Department.
- NO strike or lockout shall be declared:
a. AFTER assumption of jurisdiction by
the President or the Secretary or
b. AFTER certification or submission of
the dispute to compulsory or
voluntary arbitration or
-DURING the pendency of cases
involving the same grounds for the strike or
lockout.
b) NO person all obstruct, impede or interfere
with OII by force, violence, coercion, threats or
intimidation FVCTI
- any peaceful picketing by
employees
- during any labor controversy or
in the exercise of the right of self-
organization or collective bargaining
or shall aid or abet such obstruction
or interference.
c) NO employer shall use or employ any
STRIKE-BREAKER
- nor shall any person be employed as a
strike-breaker.
d) NO public official or employee, including
officers and personnel of the New Armed Forces
of the Philippines of the Integrated National
Police, or armed persons,
- shall bring in, introduce or escort
in any manner,
- any individual who seeks to replace
strikes in entering or leaving the
premises of a strike area, or work in
place of the strikers.
- The police force shall keep out of
the picket lines unless actual
violence or other criminal acts occur
therein:
Provided, That nothing herein shall be
interpreted to prevent any public officers from
taking any measure necessary to:
- maintain peace and order,
- protect life and property, and/or
- enforce the law and legal order.
e) NO person engaged in picketing shall
 - commit any act of violence, coercion
or intimidation or
- obstruct the free ingress to or
egress from the employer’s
premises for lawful purposes, or
- obstruct public thoroughfares.
 RULES ON REINSTATEMENT OF
WORKERS:
GENERAL RULE - Striking
employees are entitled to reinstatement,
regardless of whether or not the strike was the
consequences of the employer’s ULP
REASON: because while out of
strike, the strikers are not considered to have
abandoned their employment, but rather have
only ceased from their labor.
- -The declaration of a strike is NOT a
renunciation of employment relation.
EXCEPTIONS: The following strikers are
NOT entitled to reinstatement:
1. union officers who knowingly
participates in an illegal strike;
and
2. any striker/union member who
knowingly participate in the
commission of illegal acts during
the strike.
 ART 265. IMPROVED OFFER
BALLOTING
IMPROVED OFFER BALLOTING: a  REGULAR EMPLOYMENT- One wherein an
referendum conducted by the NCMB on or
before the 30th day of the strike, for the purpose
of determining whether or not the improved offer
of the union is acceptable to the union members.
- applies only to economic strikes (bargaining
deadlock)
PURPOSE: to ascertain the real sentiment
of the silent majority of the union members
on strike.
 REDUCED OFFER BALLOTTING
- a referendum conducted by the NCMB,
- for the purpose of determining whether or
not the reduced offer of the union is
acceptable to the board of directors, trustees
or partners.
- applies only to economic strike
 ART 266. ARREST AND DETENTION
 General rule is that a police officer cannot
arrest or detain a union member for union
activities without previous consultations with the
Secretary of Labor except on grounds of:
a. national security
b. public peace
c. commission of a crime
BOOK SIX
POST EMPLOYMENT
TITLE I
TERMINATION
OF
EMPLOYMENT
 ART 279. SECURITY OF TENURE
 SECURITY OF TENURE is the constitutional
right granted the employee, that the employer
shall not terminate the services of an employee
except for just cause or when authorized by law.
An employee that has been dismissed illegally is
entitled to:
a. Reinstatement
b. Backwages
 ART 280. REGULAR AND CASUAL
EMPLOYMENT
employee is engaged to perform activities which
are usually necessary or desirable in the usual
business or trade of the employer.
 TEMPORARY EMPLOYMENT-One wherein
an employee is engaged to work on a specific
project or undertaking which is usually
necessary or desirable in the usual business or
trade of the employer, the completion of which
has been determined at the time of the
agreement of the employee.
 SEASONAL EMPLOYMENT-One wherein
an employee is engaged to work during a
particular season on an activity that is
usually necessary or desirable in the usual
business or trade of the employer.
 PROBATIONARY PERIOD OF
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e., the
time needed to learn the job.
It is period during which the employer
may determine if the employee is qualified for
possible inclusion in the regular force.
NOTE:The standard which the probationary
employee is to meet must be made known by
the employer to the employee at the time of the
engagement.
Probationary employees may be terminated for
the same causes as a regular employee, except
that there is an additional ground – failure to
meet the standard.
 Is it necessary that probationary employment
be for a period of 6 months?
No. Provided that the following
requisites concur:
1. it is done before the lapse of 6
months;
2.employee must be advised of such extension;
3. employee must agree.
 EFFECT IF PROBATIONARY EMPLOYEE IS
ALLOWED TO WORK BEYOND 6 MONTHS:
If the probationary employee is allowed
to work beyond the period of 6 months or the
agreed probationary period, said employee
become a regular employee by operation of law.
Under the Labor Code, “an employee
who is allowed to work after a probationary
period shall be considered a regular employee.”
(Art. 281.)
 ART. 282. TERMINATION BY EMPOYER
 JUST CAUSES:
1. Serious misconduct or willful disobedience
by the employee of the lawful orders of his
employer or representative in connection
with his work;
2. Gross and habitual neglect by the employee
of his duties;
3. Fraud or willful breach by the employee of
the trust reposed in him by his employer or
duly organized representative;
4. Commission of a crime or offense by the
employee against the person of his
employer or any immediate member of his
family or his duly authorized representative;
and
5. Other causes analogous to the following:
 ART. 283- 284
 AUTHORIZED CAUSES OF TERMINATION
BY THE EMPLOYER:
1. The installation of labor-saving devices
(automation)
2. Redundancy (superfluity in the performance
of a particular work)
3. Redundancy to prevent losses (there is
excess of employees and employer wants to
prevent financial losses)
4. The closing or cessation of operation of the
establishment or undertaking UNLESS the
closing is for the purpose of circumventing
the provisions of the Labor Code.
5. Illness
a. If illness is incurable within 6 months
and is
b. deleterious to his health or his co-
employees.
c. certification from public heath officer
that illness is incurable within 6
months.
 STANDARDS UNDER WHICH AN
EMPLOYER MAY RETRENCH:
1. Losses expected should be imminent and
substantial.
2.It must be reasonably necessary and likely to
effectively prevent the expected losses
3. Alleged losses if already incurred, and the
expected imminent losses sought to be
forestalled, must be proved by sufficient and
convincing evidence.
 ART. 285. TERMINATION BY
EMPLOYEE
 TERMINATION BY THE EMPLOYEE
An employee may terminate WITHOUT
JUST CAUSE the employee-employer
relationship by serving a WRITTEN NOTICE on
the employer at least one month in advance. .
The employer upon whom no such
notice was served may hold the employee liable
for damages.
An employee may put an end to
establish WITHOUT SERVING ANY NOTICE on
the employer for any of the following just
causes:
1. Serious insult by the employer or his
representative on the hour and person of the
employee;
2. Inhuman and unbearable treatment
accorded the employee by the employer or
his representative;
3. Commission of a crime or offense by the
employer or his representative against the
person of the employee or any of the
immediate members of his family; and
4. Other causes analogous to any of the
foregoing.
 SEPARATION PAY
In case of termination due to
a) THE INSTALLATION OF LABOR-SAVING
DEVICES OF
b) REDUNDANCY,
- the worker affected thereby shall be entitled
to a separation pay equivalent to at least
one (1) month pay or to at least one (1)
month pay for every year of service,
whichever is higher.
c) RETRENCHMENT TO PREVENT LOSSES
and CLOSURES OR CESSATION OF
OPERATIONS (NOT due to serious
business losses or financial reverses)
- The separation pay shall be equivalent to
one (1) month pay or at least ½ month pay
for every year of service, whichever is
higher.
d) In the case of ILLNESS
- separation pay equivalent to at least one
month salary or to ½ month salary for every
year of service, whichever is greater, a
fraction of at least 6 months shall be
considered one (1) whole year.
NOTE: If CLOSURE is due to severe financial
losses, it is still debatable whether or not
separation pay should be given.
- I f you are able to prove that such portion of
capital (10%) investment has been impaired,
the employer should be exempt for the
payment of separation pay.
 GUIDELINES TO DETERMINE THE
VALIDITY OF TERMINATION:
1. Gravity of the offence
2. Position occupied by the employee
3. Degree of damage to the employer
4. Previous infractions of the same offense
5. Length of service
 ART 287. RETIREMENT
 RETIREMENT AGE -The age of retirement is
that specified in the CBA or in the employment
contract. If it is not specified,
1. 60-65 -retirement is optional
but the employee must have
served at least 5 years ;
2. 65-compulsory retirement age
(no need for 5 years of
service)
 BENEFITS- A retiree is entitled to a
retirement pay equivalent at least ½ month
salary for every year of service, a fraction of at
least six (6) months being considered as one
whole year.
Unless the parties provide for broader
inclusions, the term “one half (1/2) month” salary
shall mean:
 15 days plus 1/12 of the 13 th month
pay and
 the cash equivalent of NOT more
than 5 days of service incentive
leaves.
(22.5 days per year of service)
 NOTE: Exempted from the payment of
retirement pay are retail, service and agricultural
establishments or operations employing NOT
more than ten (10) employees or workers.
BOOK SEVEN
TRANSITORY AND FINAL
PROVISIONS
TITLE II
PRESCRIPTION OF OFFENSES AND
CLAIMS
 ART. 291. MONEY CLAIMS
 PERIODS OF PRESCRIPTION
A. MONEY CLAIMS-The prescriptive period is
3 years from the accrual of the cause of
action.
B. ULP -The prescriptive period of filing a case
for ULP is 1 year from the accrual of the
cause of action.
 ILLEGAL DISMISSAL
The prescriptive period of filing a case
for illegal dismissal is 4 years from the accrual of
the cause of action. (Art. 1146)
NOTE: The period of prescription mentioned
under Article 281, now Article 292, of the Labor
Code, refers to and “is limited to money claims,
all other cases of injury to rights of a
workingman being governed by the Civil Code.
Hence, reinstatement prescribes in 4 years.
POST- EMPLOYMENT
 FORMS OF REINSTATEMENT:
1. ACTUAL OR PHYSICAL REINSTATEMENT
-the employee shall be admitted back to
work;
2. PAYROLL REINSTATEMENT
- the employee is merely reinstated in
the payroll.
 PERIOD COVERED BY THE PAYMENT OF
BACKWAGES: Backwages shall cover the
period from the date of dismissal of the
employee up to the date of actual
reinstatement.’
 SECURITY OF TENURE: An employer
CANNOT terminate the services of an employee
EXCEPT for a just cause or when authorized by
law.
 REQUIREMENTS OF DUE PROCESS
BEFORE AN EMPLOYEE CAN BE REMOVED:
1. written notice to apprise the employee of the
particular acts or omission for which his
dismissal is sought and is hereby
considered as the proper charge;
2. ample opportunity to be employee to be
heard and if the employee so decides, with
the assistance of counsel; and
3. written notice informing the employee of the
employer’s decision to dismiss him.
“Under the so-called ‘WENPHIL
DOCTRINE” if just or authorized cause exist but
the affected employees right to due process has
been violated, the dismissal is valid but the
employee is entitled to damages by way of
indemnification for the violation of the right.
On Jan. 27, 2000, the SC in the case of
SERRANO vs. ISETANN et. al. Disregarded
this WENPHIL DOCTRINE and ruled that if the
employee’s right to due process is violated, his
dismissal becomes illegal regardless of the
existence of a just and authorized cause.
 REINSTATEMENT - Restoration of the
employee to state from which one has been
removed or separated without loss of seniority
rights and other privileges.
 WHAT HAPPENS IF THERE IS AN ORDER
OF REINSTATEMENT BUT THE POSITION IS
NO LONGER AVAILABLE? If the position
previously occupied by the employee is no
longer available at the time of reinstatement, he
should be given a substantially equivalent
position.
 If THERE IS NO SUBSTANTIALLY
EQUIVALENT POSITION: If no substantially
equivalent position is available, reinstatement
should not be ordered because that would in
effect compel the employer to do the impossible.
In such a situation, the employee should merely
be given separation pay of the one month salary
for every year of service (1:1).
 CIRCUMSTANCES WHEN COMPANY MAY
NOT REINSTATE DESPITE ORDER OF
REINSTATEMENT
1. Transfer of business ownership;- There
is no law requiring a purchasing corporation to
absorb the employees of the selling corporation.
A fortiori, reinstatement of unjustly dismissed
employees CANNOT be enforced against the
new owner UNLESS there is an express
agreement on the assumption of liabilities by
the purchasing corporation.
2. When reinstatement is rendered impossible
due to the abolition of the position;
3. When the business has closed down;
4. Physical incapacity of employee
5. Doctrine of Strained Relations-When the
employer can no longer trust the employee
and vice-versa, reinstatement could not
effectively serve as a remedy. Applies only
to positions which require trust and
confidence; or
Under the circumstances where the
employment relationship has become so
strained to preclude a harmonious working
relationship, and that all hopes at reconciliation
are nil after reinstatement, it would be more
beneficial to accord the employee backwages
and separation pay.
BACKWAGES-Relief given to an employee to
compensate him for lost earnings during the
period of his dismissal.
How computed: Under existing law,
backwages is computed from the time of the
illegal dismissal up to time of actual
reinstatement.
 WHAT ARE INCLUDED IN THE
COMPUTATION OF BACKWAGES
1. transportation and emergency allowances
2. vacation or service incentive leave and sick
leave
3. 13th month pay.
However, facilities such as uniforms, shoes,
helmets and ponchos should NOT be included
in the computation of backwages.
REASON: said items are given free, to
be used only during official tour of duty not for
private or personal use.
 CIRCUMSTANCES THAT PREVENT AWARD
OF BACKWAGES:
1. death of the employee
2. physical and mental incapacity
3. business reverses
4. closure of business
5. reinstatement of dismissed employee
6. confinement in jail
SPECIAL LAWS
SOCIAL SECURITY SYSTEM
 COVERAGE:
Compulsory upon all employees not
over 60 years of age and their employers
In case of domestic helpers, their
monthly income shall not be less than one
thousand pesos
Any benefit already earned by the
employees under private benefit plans existing
at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired and
shall continue to remain under the employer’s
management unless there is an existing
agreement to the contrary
Filipinos recruited by foreign based
employers for employment abroad may be
covered by the SSS on a voluntary basis
Compulsory upon such self- employed
persons as may be determined by the
Commission including but not limited to the
following:
1. all self employed professionals
2. partners and single proprietors
3. actors and actresses directors
4. professional athletes, coaches,
trainers
5. individual farmers and fishermen
 EFFECTIVE DATE OF COVERAGE:
Shall take effect on the first day
of the operation with respect to the
employer and that of the employee on
the day of his employment
 DEPENDENTS:
1. the legal spouse entitled by law to
receive support from the member
2. the legitimate, legitimated or legally
adopted and illegitimate child who is
unmarried, not gainfully employed
and has not reached 21 years of
age or if 21 years of age, he is
congenitally incapacitated or while
still a minor has been permanently
incapacitated and incapable of self-
support, physically and mentally and
3. the parent who is receiving regular
support from the member
 EMPLOYER
Any person natural or juridical,
domestic or foreign, who carries on in
the Philippines, any trade business,
industry undertaking or activity of any
kind and uses the services of another
person who is under his orders as
regards the employment except the
Government and any of its political
subdivisions, branches or
instrumentalities, including corporations
owned or controlled by the Government
Self- employed person shall be both the
employer and employee at the same
time.
 EMPLOYEE
Any person who performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation
for such services, where there is an
employer- employee relationship.
 BENEFICIARIES
The dependent spouse until he or she
remarries, the dependent legitimate,
legitimated or legally adopted and
illegitimate children who shall be the
primary beneficiaries of the member,
PROVIDED that the dependent
illegitimate children shall be entitled to
50% of the share of the legitimate,
legitimated or legally adopted children
In the absence of the
legitimated, legally adopted or legitimate
children, illegitimate children shall be
entitled to 100% of the benefits.
In their absence, the dependent
parents who shall be the secondary
beneficiaries.
In the absence of all of the
foregoing, any person designated by the
covered employee as secondary
beneficiary
MEDICARE
 COVERAGE:
All SSS members are covered under the
Medicare program. Total permanent disability,
unemployed partial permanent disability,
retirement pensioners and survivors of
deceased members of the SSS and their
dependents are also entitled to medical care
benefits without need of additional contributions
 PERIOD OF ENTITLEMENT
The member or pensioner is entitled to a
maximum of 45 days confinement in a hospital
in a given calendar year. His dependents are
given another set of 45 days to be shared
among themselves. Unused benefits cannot be
carried over to the succeeding year.
GOVERNMENT SERVICE
INSURANCE SYSTEM
 COMPULSORY MEMBERSHIP
Compulsory for all employees receiving
compensation who have not reached the
compulsory retirement age, irrespective of
employment status, except members of the
Armed Forces and the PNP, subject to the
condition that they must settle first their financial
obligations with the GSIS and contractuals who
have no employer and employee relationship
with the agencies they serve.
Except for the members of the Judiciary
and constitutional commissions who shall have
life insurance only, all members of the GSIS
shall have life insurance, retirement and all other
social security protection such as disability,
survivorship, separation and unemployment
benefits.
 COMPUTATION OF SERVICE
The computation of service for the
purpose of determining the amount of benefits
payable shall be from the date of the original
appointment/ election including periods of
service at different times under the authority of
the Republic of the Philippines and those that
may be prescribed by the GSIS in coordination
with the Civil Service Commission.
All service credited for retirement,
resignation or separation for which
corresponding benefits have been awarded shall
be excluded in the computation of service in
case of reinstatement in the service of an
employer and subsequent retirement or
separation which is compensable.
 UNEMPLOYMENT OR INVOLUNTARY
SEPARATION BENEFITS
Monthly cash payments equivalent to
50% of the average monthly compensation shall
be paid to a permanent employee who is
involuntarily separated from the service due to
the abolition of his office or position usually
resulting from reorganization.
 RETIREMENT BENEFITS: CONDITIONS
FOR ENTITLEMENT
1. Member has rendered at least 15
years of service
2. He is at least 60 years of age at the
time of retirement
3. He is not receiving a monthly
pension benefit from permanent
total disability
 PERMANENT DISABILITY BENEFITS
Monthly income benefit for life equal to
the basic monthly pension effective from the
date of the disability. Provided:
1. He is in the service at the time of the
disability
2. If separated from service, he has
paid at least 36 monthly
contributions within the 5 year
period immediately preceding the
disability or has paid a total of at
least 180 monthly contributions prior
to the disability
Unless the member has reached the
minimum retirement age, disability benefits shall
be SUSPENDED when:
1. he is reemployed
2. he recovers from his
disability as determined by
the GSIS, whose decision
shall be final and binding
3. he fails to present himself
for medical examination
when required by the GSIS
 TEMPORARY DISABILITY BENEFITS
75% of the current daily compensation
for each day or fraction thereof of temporary
disability benefit not exceeding 120 days in one
calendar year after exhausting all sick leave
credits and collective bargaining agreement sick
leave benefits. PROVIDED:
1. he is in service at the time of his
disability
2. if separated, he has rendered at
least 3 years of service and has
paid at least 6 monthly contributions
in the 12- month period immediately
preceding the disability
HOWEVER:
A member cannot enjoy
temporary total disability benefit and sick leave
pay simultaneously.
 In no case shall it be less than
70 pesos a day.
 SURVIVORSHIP BENEFITS:
Upon the death of a member, the
primary beneficiaries shall be entitled to:
survivorship pension, PROVIDED:
a. member was in service at the time of his
death’
b. if separated from service, has rendered
at least 3 years of service and paid 36
monthly contributions with the 5- year
period immediately preceding his death
or has paid a total of at least 180
monthly contributions.
 LIFE INSURANCE BENEFITS
All employees except members of the
AFP and the PNP shall be compulsorily covered
with life insurance.
 PRESCRIPTION OF CLAIMS
Claims for benefits under the Act except
for life and retirement shall prescribe after 4
years from the date of the contingency.
 JURISDICTION
GSIS shall have the exclusive and
original jurisdiction to settle any dispute arising
under the Act and any other laws administered
by the GSIS.
RA 8042: "MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT 0F 1995"
Approved on 07 June 1995 and took
effect on 15 July 1995. As indicated in its title,
the law institutes the policies of overseas
employment and establishes a higher standard
of protection and promotion of the welfare of
migrant workers, their families, and of overseas
Filipinos in distress.
 GUARANTEE OF PROTECTION FOR
OVERSEAS WORKERS
The State shall deploy overseas Filipino
workers only in countries where the rights of
Filipino migrant workers are protected. The
government recognizes any of the following as a
guarantee for the protection of the receiving
country of the rights of overseas Filipino
workers:
1. It has existing labor and social laws
protecting the rights of migrant
workers;
2. It is a signatory to multilateral
conventions, declarations or
resolutions relating to the protection
of migrant workers;
3. It has concluded a bilateral
agreement or arrangement with the
government protecting the rights of
overseas Filipino workers; and,
4. It is taking positive, concrete
measures to protect the rights of
migrant workers.
 JURISDICTION
- NLRC
RA 8042 has transferred to the NLRC
the jurisdiction over employer-employee cases
1. Money Claims.-, the Labor Arbiters
of the National Labor Relations Commission
(NLRC) shall have the original and exclusive
jurisdiction to hear and decide, the claims arising
out of an employer-employee relationship or by
virtue of any law or contract involving Filipino
workers for overseas deployment including
claims for actual, moral, exemplary and other
forms of damages.
 LIABILITIES
The liability of the principal/employer
and the recruitment/placement agency for any
and all claims under this section shall be joint
and several. The performance bond to be filed
by the recruitment/placement agency, as
provided by law, shall be answerable for all
money claims, or damages that may be awarded
to the workers. If the recruitment/placement
agency is a juridical being, the corporate officers
and directors and partners as the case may be,
shall themselves be jointly and solidarily liable
with the corporation or partnership for the
aforesaid claims and damages.
Such liabilities shall continue during the entire
period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
POEA
The POEA retains original and exclusive
jurisdiction to hear and decide:
1. all cases which are administrative in
character, involving or arising out of
 violations of rules and regulations relating to 2. Loan Guaranty fund
licensing and registration of recruitment and 3. Legal Assistance fund
employment agencies or entities; and, 4. Congressional Migrant Workers Scholarship
2. disciplinary action cases and other special fund
cases which are administrative in character,
involving employers, principals, contracting  GOVERNMENT AGENCIES MOBILIZED:
partners and Filipino migrant workers.
1. DFA
Three Month's Pay Under RA 8042 2. DOLE
3. POEA
The date the employment termination 4. OWWA
occured is material. On or after 15 July 1995,
the law to apply is RA 8042.  GUIDELINES ON THE RIGHT TO ORGANIZE
Under Section 10 of RA 8042, a worker
OF GOVERNMENT EMPLOYEES (E. O. 180)
dismissed from overseas employment without
just, valid or authorized cause as defined by law
COVERAGE
or contract, is entitled to the full reimbursement
of his placement fee with interest at twelve
-Applies to all employees of all
branches, subdivisions, instrumentalities and
percent (12%) per annum, plus his salary for the
agencies of the government, including
unexpired portion of his employment contract or
government- owned or controlled corporations
for three (3) months for every year of the
WITH original charters
unexpired term, whichever is LESS.
All government employees can form,
join or assist employees’ organizations of their
 VENUE own choosing for the furtherance and protection
of their interest. They can also form in
A criminal action arising from illegal conjunction with appropriate government
recruitment shall be filed with the RTC of the authorities, labor- management committees,
province or city where the offense was works councils and other forms of workers’
committed or where the offended party actually participation schemes to achieve the same
resides at the time of the commission of the objectives.
offense. The court where the criminal action is High- level employees whose functions
first filed shall acquire jurisdiction to the are normally considered as policy- making or
exclusion of other courts. managerial or whose duties are of a highly
confidential nature shall not be eligible to join the
organization of rank and file government
 PRESCRIPTIVE PERIODS employees.
Illegal recruitment cases under this Act  PROTECTION OF THE RIGHT TO
shall prescribe in five (5) years; provided, ORGANIZE
however, That illegal recruitment cases involving
economic sabotage as defined herein shall 1. Government employees shall not be
prescribe in twenty (20) years. (Sec. 12, R.A. discriminated against in respect of
8042) their employment by reason of their
membership in employees’
 PROHIBITED ACTS IN THE RECRUITMENT organization or participation in the
AND PLACEMENT OF WORKERS UNDER normal activities of the organization.
THE LABOR CODE ARE RETAINED UNDER 2. Government authorities shall not
THE MIGRANT WORKERS ACT WITH THE interfere in the establishment,
ADDITION OF THE FOLLOWING: functioning or administration of
government employees’
1. Failure to deploy employee without valid organization through acts designed
reason to place such organization under the
2. Failure to reimburse expenses incurred in control of the government authority
connection with his documentation and
processing in cases that deployment did not  REGISTRATION
take place
- Government employees’
 DIFFERENT FUNDS CREATED UNDER THE organization shall register with the Civil
LAW: Service AND the Department of Labor
and Employment .
1. Repatriation fund
 1. Christmas bonus
13TH MONTH PAY LAW 2. Midyear bonuses
(P.D. 851) 3. Cash bonuses

 WHO ARE EXCLUDED FROM

COVERAGE:

1. government employees
2. employees already receiving 13th month pay
3. household helpers
4. employees paid purely on commission basis

 WHAT CAN BE CONSIDERED AS 13TH

MONTH PAY:
X. SOCIAL WELFARE LEGISLATION
COMPARATIVE CHART

SSS (RA 1161)) GSIS (RA 8291 ECC (PD 626)

To establish, develop, promote and perfect a

STATEMENT
sound and viable tax exempt social security
OF POLICIES system suitable to the needs of the people which
shall provide employees and their beneficiaries
protection against the hazards of disability,
sickness, old age, death and other contingencies
resulting in loss of income or financial burden.

EMPLOYER Employers in private sector All government agencies and All employers (private or public)
instrumentalities , including GOCCs

COVERAGE

COMPULSORY 1. Employees not over 60 years of age and their
employers.
2. 2. Domestic helpers whose monthly income
is not less than P1,000.00.
3. Self-employed persons as determined by the
Commission : a) self-employed professionals;
b) partners and single proprietors; c) actors
and actresses, directors, etc; d) professional
athletes, coaches, trainers, etc. and e)
individual farmers and fishermen.
1. Compulsory for all employees
receiving compensation who have not
reached compulsory retirement age
irrespective of employment status.
*Including barangay and sanggunian
officials
 Any person compulsorily covered
by GSIS or SSS
 Any person employed as casual,
emergency, temporary, substitute
or contractual
 VOLUNTARY 1. Spouses who devote full time to managing of
household and family affairs, UNLESS they
are also engaged in other vocation or
employment which is subject to
MANDATORY coverage.
2. 2. Filipinos recruited by foreign-based
employers for employment abroad.
3. Employees separated from employment by
paying TOTAL contribution (meaning : both
employer and employee’s share)
BY-ARRANGEMENT
Any foreign government, international
organization or their wholly owned instrumentality
MAT enter into agreement for the inclusion of
their employees EXCEPT those covered by their
own respective civil service retirement systems.
1. AFP
EXEMPTED 1. purely CASUAL and not for purpose or 2. PNP
occupation of the employer. 3. Contractuals who have no employer
EMPLOYMENT
2. Performed in an alien vessel by an employee and employee relationship
if he is employed when such vessel is outside
of the Philippines. * Members of the judiciary and the
3. By the government of the Philippines or Constitutional Commissions – life
instrumentality or agent thereof. insurance only
4. Foreign government of international
organization.
BENEFITS 1. Monthly pension 1. Life Insurance
2. Dependents’ pension 2. Retirement
3. Retirement 3. Disability
4. Death Benefits 4. Survivorship
5. Permanent Disability benefits 5. Separation
6. Funeral 6. Unemployment
7. Sickness
8. Maternity * Life insurance for the members of the
judiciary and constitutional commissions.

BENEFICIARIES

PRIMARY 1. Dependent spouse until remarriage 1. Legal, dependent spouse until

2. Dependent legitimate, legitimated or legally
adopted and illegitimate children
remarriage
2. Dependent children – defines as the
legitimate, legitimated, legally
adopted child, including the
illegitimate child, who is unmarried,
not gainfully employed, not over the
age of majority, or is over the age of
majority but is incapacitated and
incapable of self-support.

SECONDARY 1. In the absence of primary beneficiaries, 1. Dependent parents

dependent parents 2. Legitimate descendants subject to the
restrictions on dependent children,
the legitimate descendants
CONTRIBUTIONS 1. Employer’s contributions 1. Employer’s contribution
2. Employees’ contribution 2. Employee’s contribution
3. Government contribution

MODE 1. For those with employees – Employee 1. The employer shall deduct each
OF COLLECTION contribution shall be deducted by the month from the salary or compensation of
employees based on an approved schedule. each employee the contribution payment.
Employer shall remit BOTH EMPLOYEE AND Employer shall remit to the system within
EMPLOYER contribution to the system. 10 days the Employer-Employee
2. For self-employed – Self-employed shall pay contributions.
BOTH EMPLOYER AND EMPLOYEE
contributions to the system.
3. For government contribution – remitted to the
SSS within the first 10 days of each calendar
month following the month got which they are
applicable.

* Contributions under this Act in case where an

employer refuses or neglects to pay the same
shall be collected by the SS in the same manner
as taxes are made collectable under the National
Internal Revenue Code.
PENALTIES 1. False statement or misrepresentation as to
any compensation as to any compensation
paid or received or whoever makes or causes
to be made any false statement of a material
fact in any claim for any benefit payable
under this Act – Art. 172 of the RPC
(falsification be private individuals and
falsified documents)
2. Obtaining or receiving any money or check
without being entitled thereto with intent to
defraud any covered employee, employer or
SSS – fine of P5,000.00 to P20,000.00 and
imprisonment of 6 years and 1 day to 12
years or both.
3. Buys, sells, offers for sale, uses, transfers,
takes or gives in exchange, or pledges or
give in pledge, except as authorized in this
Act – fine of P5,000.00 to P20,000.00 or
imprisonment of 6 years and 1 day to 12
years or both.
4. Makes, alters, forges or counterfeits any
stamps, coupon, ticket or other device
prescribed by the Commission, or uses, sells,
lends or in his possession any such altered,
forged, or counterfeited materials, or makes,
uses or sells or has in his possession any
materials used in the manufacture of such
stamp, coupon, ticket or book – fine of
P5,000.00 to P20,000.00 or imprisonment of
6 years and 1 day to 12 years or both.
1. Participating directly or indirectly in
commission of fraud, collusion,
falsification or misrepresentation in
any transaction of the GSIS – Article
172 of the RPC (Falsification by
private individuals and use of falsified
documents)
2. Receiving money or check involving
provision of this act, without being
entities with intent to defraud – fine of
P5,000.00 to P20,000.0 or
imprisonment of 6 years and 1 day to
12 years or both.
3. Refusing to comply with the
provisions of this Act – fine of
P5,000.00 to P20,000.00 or
imprisonment of 6 years and 1 day to
12 years or both.
4. Failure to include in the annual
budget corresponding employer
contributions by finance officers,
treasurers, cashiers, etc. – 6 months
and 1 day to 6 years imprisonment
and a fine of P3,000.00 to P6,000.00
and absolute perpetual
disqualification from holding office.
5. Misappropriation or taking of funds
and property of the GSIS for
purposes other than authorized in this
Act – Article 217 of RPC
 5. Fails or refuses to comply with the provisions
promulgated by the Commission – fine of
P5,000.00 ot P20,000.00 or imprisonment of
6 years and 1 day to 12 years or both.
6. Misappropriation of funds – penalties under
Article 217 of the RPC.
7. Failure to remit the said deductions to the
SSS within 30 days from date they become
due – Article 315 of the RPC (Estafa).
(Malversation of public funds or
properties).
6. For head of officers who fails or
refuses payment or remittance of
GSIS payments within 30 days from
the time its demandable –
imprisonment of 1 year to 5 years and
fine of P10,000.00 to P20,000.00 and
aboslute perpetual disqualification.

ENTITLED TO Member has reached age of 60 or 65. OPTIONAL. Member meets the ff :
RETIREMENT 1. has worked for at least 15 years.
BENEFITS 2. Is at least 60 years of age at time of
retirement, and
3. Is not receiving monthly pension
benefit from permanent total disability

COMPULSORY. Member is 65 years

1. Complete loss of sight in both eyes.
DISABILITIES DEEMED 2. Loss of two limbs at or above the ankle or
PERMANENT TOTAL wrist.
3. Permanent complete paralysis of two limbs.
4. Brain injury resulting in incurable imbecility or
insanity.
5. Other cases determined by SSS.
with at least 15 years of service (if
service is less than 15 years, he may be
allowed to continue in accordance with
Civil Service Rules and Regulations.)
1. Complete loss of sight in both eyes.
2. Loss of two limbs at or above the
ankle or wrist.
3. Permanent complete paralysis of two
limbs.
4. Brain injury resulting in incurable
imbecility or insanity
5. Other cases determined by GSIS.
1. Temporary total disability lasting
over 120 days.
2. Complete loss of sight in both
eyes.
3. Loss of limbs at or above the ankle
or wrist.
4. Permanent complete paralysis of
two limbs.
 5. Brain injury resulting in incurable
imbecility or insanity.
6. Other cases determined by
Medical Director of SSS

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

SYSTEM EXCUSED For permanent disability in the ff. cases :
FROM LIABILITY 1. grave misconduct
2. notorious negligence
3. willful intent to kill self or another
4. habitual intoxication
For all contingencies in the ff. cases :
1. intoxication
2. willful intent to injure or kill one’s
self or another
3. notorious negligence

AMOUNT OF FUNERAL P12,000.00 P12,000.00 (to be raised to P18,000.00 P10,000.00

BENEFITS in year 2002)
Employer And Employee Employer
WHO PAYS Employer and Employee
REMITTANCES?

COVERAGE Occurrence of contingency whether or not Occurrence of contingency whether or Work-related illness or injury.
work-connected. not work-connected.

NOTICE  Employee to notify employer within 5 days  Employee to notify employer within
REQUIREMENT from injury or illness(unless no longer 5 days from injury or illness (unless
necessary under the exceptions) it is no longer necessary under the
  Employer to notify SSS within 5 days from exceptions)
notice.  Employer to record the same in
logbook within 5 days from notice.
 Employer to notify SSS or GSIS
within 5 days from recording in
logbook.

EFFECT OF Legal And eligible claimant may still SSS absolved unless notified of other
ERRONEOUS demand benefits, without prejudice to claim prior to payment.
PAYMENT right of GSIS to sue improper claimant.

DISPUTE SETTLEMENT 1. File claim with SSS. 1. File claim with GSIS. 1. File claim with SSS and GSIS.
2. Appeal to Social Security Commission. 2. Appeal to GSIS Board. 2. Appeal to ECC.
3. Appeal to CA. 3. Appeal to CA. 3. Appeal to CA
4. Appeal to SC 4. Appeal to SC. 4. Appeal to SC

* Appeals shall be governed by Rules 43

and 45 of the 1997 Rules of Civil
Procedure

EXCLUSIVENESS OF  May Apply for same benefits in EC, if in
BENEFITS private sector.
 May not receive benefits for same
contingency under GSIS offers more (he may
then receive deficiency)
 Whenever other laws provide similar
benefits for the same contingencies,
members who qualifies has option to
choose. If benefits chosen are less
than under GSIS, he may get the
difference.
 However, with respect to work-
connected illness and injuries, he
 May apply for the same benefits
under SSS, if in the private sector.
 May apply for same benefits under
GSIS, if in public sector (applying
Mazo Sugar Central vs CA case.
 may also recover in full under ECC,
applying the Mazo Sugar Central vs
CA case.

PRESCRIPTIVE 10 years from the time the right of action 4 years from date of contingency
PERIODS accrues. except life and retirement benefits

XI. CHART ON JURISDICTION

Bureau Of Labor Grievance Machinery Voluntary Arbitration Labor Arbiter NLRC

Relations (UTRCCC-M)
1. Inter-union dispute 1. Interpretation or 1. Unresolved Grievances 1. ULP 1. Appellate jurisdiction
implementation of the over Labor Arbiters
2. Intra-union dispute CBA 2. Agreement on other 2. Termination Disputes
labor dispute(Bargaining 2. Injunction
2. Interpretation or deadlock, ULP) 3. Reinstatement-with
3. Labor Management enforcement of cases involving wages
Relations except company personnel 3. Contempt
interpretation or policies 4. Claims of damages
implementation of the arising from E-E
CBA relationship

5. Cases involving
prohibited acts in strikes
 (ART. 264)

6. Claims arising from E-E

relationship including
those of domestic
service, involving
amount exceeding
P5,000.0

7. Migrant Worker Cases