Professional Documents
Culture Documents
Labor Law
Labor Law
LABORLAW
Q:Whatislabor?
A:Itistheexertionbyhumanbeingsofphysicalor
mental efforts, or both, towards the production of
goodsandservices.
Q:Whatislaborlaw?
1. Thetermsandconditionsofemployment
and
2. Labor disputes arising from collective
bargaining(CB)respectingsuchtermsand
conditions.
Q:Whatisthepurposeoflaborlegislation?
Q:Whataretheclassificationsoflaborlaw?
A:
1. Labor standards The minimum terms
andconditionsofemploymentprescribed
by existing laws, rules and regulations
relatingtowages,hoursofwork,costof
living allowance and other monetary and
welfare benefits. (Batong Buhay Gold
Mines,Inc.v.DelaSerna,G.R.No.86963,
August6,1999)
th
e.g.13 monthpay
2. Labor relations Defines and regulates
the status, rights and duties, and the
institutionalmechanisms,thatgovernthe
individual and collective interactions of
Ers, Ees, or their representatives. It is
concerned with the stabilization of
relations of Er and Ees and seek to
forestall and adjust the differences
between them by the encouragement of
collective bargaining and the settlement
of labor disputes through conciliation,
mediationandarbitration.
e.g. Additional allowance pursuant to
CBA
3.
A:Laborlegislationissometimesdistinguishedfrom
social legislation by the former referring to labor
statutes, like Labor Relations Law and Labor
Standards, and the latter to Social Security Laws.
Laborlegislationfocusesontherightsoftheworker
intheworkplace.
Q:Whatarethesourcesoflaborlaws?
A:
1. Labor Code and other related special
legislation
2. Contract
3. CollectiveBargainingAgreement
4. Pastpractices
5. Companypolicies
A. FUNDAMENTALPRINCIPLESANDPOLICIES
1.CONSTITUTIONALPROVISIONS
A:
1. Sec.3,Art.XIIITheStateshallaffordfull
protection to labor, local and overseas,
organizedandunorganized,andpromote
full employment and equality of
employmentopportunitiesforall.
Itshallguaranteetherightsofallworkers
to selforganization, collective bargaining
andnegotiations,andpeacefulconcerted
activities, including the right to strike in
accordance with law. They shall be
entitled to security of tenure, humane
conditions of work, and a living wage.
They shall also participate in policy and
decisionmaking processes affecting their
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Sec.9,Art.IITheStateshallpromotea
just and dynamic social order that will
ensure the prosperity and independence
of the nation and free the people from
poverty through policies that provide
adequate social services, promote full
employment, a rising standard of living,
andanimprovedqualityoflifeforall.
Sec.18,Art.IITheStateaffirmslaboras
a primary social economic force. It shall
protect the rights of workers and
promotetheirwelfare.
12.
13.
14.
provides
incentives
to
needed
investments.
Q:WhatistheStatepolicyonlaborasfoundinthe
constitution(Sec.3,Art.XIII)?
A:
1. Affordfullprotectiontolabor
2. Promotefullemployment
3. Ensure equal work opportunities
regardlessofsex,race,orcreed
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
5.
A:
1. Securityoftenure
2. Receivealivingwage
3. Humaneworkingconditions
4. Shareinthefruitsofproduction
5. Organizethemselves
6. Conduct collective bargaining or
negotiationwithmanagement
7. Engage in peaceful concerted activities
includingstrike
8. Participate in policy and decision making
processes
Q:Whatistheprincipleofnonoppression?
2.NEWCIVILCODEANDOTHERLAWS
Q:Whatareotherrelatedlawstolabor?
A:
1. CivilCode
a. Art. 1700 The relations between
capital and labor are not merely
contractual. They are so impressed
with public interest that labor
contractsmust yieldtothecommon
good. Therefore, such contracts are
subject to the special laws on labor
unions, collective bargaining, strikes
and lockouts, closed shop, wages,
working conditions, hours of labor
andsimilarsubjects.
b. Art.1701 Neithercapitalnorlabor
shall act oppressively against the
other, or impair the interest or
convenienceofthepublic.
c. Art.1702Incaseofdoubt,alllabor
legislation and all labor contracts
shall be construed in favor of the
2.
3.
RevisedPenalCode
Art. 289 Formation, maintenance and
prohibition of combination of capital or
labor through violence or threats. Any
person who, for the purpose of
organizing, maintaining or preventing
coalitions or capital or labor, strike of
laborers or lockout of employees, shall
employ violence or threats in such a
degreeastocompelorforcethelaborers
or employers in the free and legal
exercise of their industry or work, if the
act shall not constitute a more serious
offenseinaccordancewiththeprovisions
oftheRPC.
SpecialLaws
a. GSISLaw
th
b. 13 MonthPayLaw
c. RetirementPayLaw
d. SSSLaw
e. PaternityLeaveAct
f. AntiChildLaborAct
g. AntiSexualHarassmentAct
h. Magna Carta for Public Health
Workers
i.
SoloParentsWelfareActof2000
j.
National Health Insurance Act as
amendedbyR.A.9241
k. Migrant Workers and Overseas
Filipinos Act of 1995 as amended by
RA10022
l.
PERAActof2008
m. Home Development Mutual Fund
Lawof2009
n. TheMagnaCartaofWomen
o. ComprehensiveAgrarianReformLaw
asamendedbyR.A.9700
3.LABORCODE
Q:Whatistheaimoflaborlaws?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatiscompassionatejustice?
A:Itisdisregardingrigidrulesandgivingdueweight
toallequitiesofthecase.
Q:Howshoulddoubtsintheimplementationand
interpretation of the Labor Code (LC) and its
Implementing Rules and Regulations (IRR) be
resolved?
A:Theyshouldberesolvedinfavoroflabor.
Q:Art.4oftheLCprovidesthatincaseofdoubtin
the implementation and interpretation of the
provisionsoftheLCanditsIRR,thedoubtshallbe
resolved in favor of labor. Art. 1702 of the Civil
Codealsoprovidesthatincaseofdoubt,alllabor
legislation and all labor contracts shall be
construed in favor of the safety and decent living
ofthelaborer.
A:No,theConstitutionprovidesthattheStateshall
afford full protection to labor. Furthermore, the
State affirms labor as a primary economic force. It
shall protect the rights of workers and promote
theirwelfare.(1998BarQuestion)
a.Art.3.DeclarationofBasicPolicy
Q:WhatisthepolicyoftheStateasregardslabor
asfoundintheLaborCode(Art.12)?
A:
1. Promote and maintain a State of full
employment
through
improved
manpower training, allocation and
utilization;
2. Protect every citizen desiring to work
locallyoroverseasbysecuringforhimthe
best possible terms and conditions of
employment;
3. Facilitate a free choice of available
employment by persons seeking work in
conformitywiththenationalinterest;
4. Facilitate and regulate the movement of
workers in conformity with the national
interest;
5. Regulate the employment of aliens,
including the establishment of a
registrationand/orworkpermitsystem;
6. Strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
developmentobjectives;
7. Ensure careful selection of Filipino
workers for overseas employment in
order to protect the good name of the
Philippinesabroad.
A:
1. Greater supply than demand for labor;
and
2. Need for employment by labor comes
from vital and desperate necessity.
(Sanchezv.HarryLyonsConstructionInc.,
G.R.L2779,Oct.18,1950)
Q:Arealllabordisputesresolvedinfavoroflabor?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
1.
b.Art.5.RulesandRegulations
Q:Whoisgiventherulemakingpower?
A:Itmust:
1. Beissuedundertheauthorityofthelaw
2. Not be contrary to law and the
Constitution
c.Art.6.Applicability
Q:Towhomshallallrightsandbenefitsunderthe
LCapply?
XPN:
1. Governmentemployees(Ees)
2. Ees of government corporations created
byspecialororiginalcharter
3. Foreigngovernments
4. Internationalagencies
5. Corporate officers/ intracorporate
disputes which fall under P.D. 902A and
now fall under the jurisdiction of the
regular courts pursuant to the Securities
RegulationCode(SRC).
6. Local water district except where NLRCs
jurisdictionisinvoked.
7. AsmayotherwisebeprovidedbytheLC
Q:WhatisthetestindeterminingwhetheraGOCC
issubjecttotheCivilServiceLaw?
A:Itisdeterminedbythemanneroftheircreation.
Govt corporations that are created by special
(original)charterfromCongressaresubjecttoCivil
Service rules, while those incorporated under the
GeneralCorporationLawarecoveredbytheLC.
Q:Whoisanagricultural/farmworker?
A:
2.
3.
d.Art.211.DeclarationofPolicy
A:Thestateaimstopromote:
1. Free collective bargaining (CB) and
negotiations,
including
voluntary
arbitration, mediation and conciliation as
modes of settling labor or industrial
disputes;
2. Freetradeunionism;
3. Free and voluntary organization of a
strongandunitedlabormovement;
4. Enlightenment of workers concerning
their rights and obligations as union
membersandasEes;
5. Adequate administrative machinery for
the expeditious settlement of labor or
industrialdisputes;
6. Stable but dynamic and just industrial
peace;
7. Participation of workers in the decision
making processes affecting their rights,
dutiesandwelfare;
8. Truly democratic method of regulating
therelationsbetweentheErsandEesby
means of agreements freely entered into
through CB, no court or administrative
agencyorofficialshallhavethepowerto
set or fix wages, rates of pay, hours of
work or other terms and conditions of
employment, except as otherwise
providedundertheLC.
e.Art.212.Definitions
Q:Whoisanemployer(Er)?
A: Any person acting in the interest of an Er,
directly or indirectly. The term does not include a
labor organization (LO) or any of its officers and
agents,exceptwhenactingasanEr.(Art.212[e])
An Er is defined as any person or entity that
employstheservicesofothers;oneforwhomwork
and who pays their wages of salaries; any person
acting in the interest of an Er; refers to the
enterprise where the LO operates or seeks to
operate.(Sec.1[s],RuleI,BookV,IRR)
Q:WhenisalabororganizationdeemedanEr?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatarethekindsoflabordisputes?
A:
1.
Q:Whoisanemployee(Ee)?
A:
1.
2.
3.
AnypersonintheemployoftheEr
Anyindividualwhoseworkhasceasedas
a result of or in connection with any
current labor dispute or because of any
unfair labor practice if he has not
obtained any other substantially
equivalentandregularemployment
One who has been dismissed from work
but the legality of dismissal is being
contested in a forum of appropriate
jurisdiction. (D.O. No. 4003, Mar. 15,
2003)
2.
Q:Whatisalabordispute?
A:Includesanycontroversyormatterconcerning:
1.
2.
3.
Termsandconditionsofemployment,or
The association or representation of
persons
in
negotiating,
fixing,
maintaining, changing or arranging the
termsandconditionsofemployment
Regardless of whether the disputants
stand in the proximate relation of Er and
Ee.(Art.212[l])
2.
AstonatureItdependsonwhetherthe
dispute arises from ErEe relationship,
although disputants need not be
proximatelyErorEeofanother.
in
or
of
Laborstandarddisputes
a. Compensation E.g. Underpayment
of minimum wage; stringent output
quota;illegalpaydeductions
b. Benefits E.g. Nonpayment of
holidaypay,OTpayorotherbenefits
c. WorkingConditionsE.g.Unrectified
workhazards
Laborrelationsdisputes
Q:Whoarethepartiestoadispute?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whatisaninteruniondispute?
A:Anyconflictbetweenandamonglegitimatelabor
unions involving representation questions for the
purposes of CB or to any other conflict or dispute
betweenlegitimatelaborunions.
Q:Whatisanintrauniondispute?
A: Any conflict between and among union
members, grievances arising from any violation of
the rights and conditions of membership, violation
of or disagreement over any provision of the
unions constitution and bylaws, or disputes from
charteringoraffiliationofunion.
Q:Whatarerightsdisputes?
A: They are claims for violations of a specific right
arising from a contract, i.e. CBA or company
policies.
Q:Whatareinterestdisputes?
A: They involve questions on what should be
included in the CBA. Strictly speaking, the parties
maychooseavoluntaryarbitratortodecideonthe
terms and conditions of employment, but this is
impracticablebecauseitwillbeavaluejudgmentof
thearbitratorsandnotoftheparties.
Q:Whatarecontractnegotiationdisputes?
A:ThesearedisputesastothetermsoftheCBA.
Q:Whatarecontractinterpretationdisputes?
A:ThesearedisputesarisingunderanexistingCBA,
involving such matters as the interpretation and
application of the contract, or alleged violation of
itsprovisions.
f.Art.255.ExclusiveBargainingRepresentation
(EBR)andWorkersParticipationinPolicyand
DecisionMaking
Q:Whoshallbethebargainingrepresentativeof
the Employees for purposes of collective
bargaining?
A:Yes,provided:
Q:ThehotelunionfiledaNoticeofStrikewiththe
NCMBduetoULPagainsttheDiamondHotelwho
refused to bargain with it. The hotel advised the
unionthatsinceitwasnotcertifiedbytheDOLEas
the exclusive bargaining agent, it could not be
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
RECRUITMENTANDPLACEMENT
1. RECRUITMENTOFLOCALANDMIGRANT
WORKERS
a.RecruitmentandPlacement
Q:Whoisaworker?
Q:Whatisrecruitmentandplacement?
A:
1. Any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring
orprocuringworkers;and
2. Includes referrals, contact services,
promisingoradvertisingforemployment,
locally or abroad, whether for profit or
not.(Art.13[b],LC)
Q:Whataretheessentialelementsindetermining
whether
one
is
engaged
in
recruitment/placement?
A:Itmustbeshownthat:
Q:Whatistheruleinrecruitmentandplacement?
XPN:
1. Construction contractors if authorized by
the DOLE and Construction Industry
Authority
2. Other persons or entities as may be
authorizedbytheSLE
3.
4.
5.
6.
7.
8.
9.
Q:Whoarenamehires?
A:Immaterial.Thenumberofpersonsdealtwithis
notanessentialingredientoftheactofrecruitment
andplacementofworkers.Theprovisomerelylays
down a rule of evidence that where a fee is
collected in consideration of a promise or offer of
employmentto2ormoreprospectiveworkers,the
individual or entity dealing with them shall be
deemed to be engaged in the act of recruitment
and placement. The words "shall be deemed"
create that presumption. (People v. Panis, G.R. L
5867477,July11,1986)
Q:Whatisaprivateemploymentagency?
A:Anypersonorentityengagedintherecruitment
and placement of workers for a fee which is
charged,directlyorindirectly,fromtheworkersor
employersorboth.
Q:Whatisaprivaterecruitmentagency?
Q:Whoisaseaman?
Q:Whatisoverseasemployment?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:WhoisanoverseasFilipinoworker(OFW)?
A:Apersonwhoistobeengaged,isengagedorhas
been engaged in a remunerated activity in a State
of which he or she is not a citizen or on board a
vessel navigating the foreign seas other than a
government ship used for military or non
commercial purposes or on an installation located
offshore or on the high seas; to be used
interchangeably with migrant worker. (Sec.2, R.A.
10022amendingR.A.8042)
Q:Whoisanemigrant?
A:Anyperson,workerorotherwise,whoemigrates
toaforeigncountrybyvirtueofanimmigrantvisa
or resident permit or its equivalent in the country
ofdestination.
b.IllegalRecruitment,Art.38(Local),Sec.6,Migrant
WorkersAct,RA8042
(a)Licensev.Authority
Q:Whatisalicense?
Q:WhatisanAuthority?
A:ItisadocumentissuedbytheDOLEauthorizing
a person or association to engage in recruitment
and placement activities as a private recruitment
entity.
A:Anyperson,corporationorentity:
1. Whichhasnotbeenissuedavalidlicense
orauthoritytoengageinrecruitmentand
placement by the Secretary of Labor and
Employment(SLE)or
2. Whose license or authority has been
suspended, revoked or cancelled by the
POEAortheSLE
Q:Whatarethegroundsforrevocationoflicense?
A:
1. Incurring an accumulated 3 counts of
suspension by an agency based on final
10
andexecutoryorderswithintheperiodof
validityofitslicense
2. Violationsoftheconditionsoflicense
3. Engaging in acts of misrepresentation for
the purpose of securing a license or
renewal
4. Engagingintherecruitmentorplacement
of workers to jobs harmful to the public
healthormoralityortothedignityofthe
country.(Sec.3,RuleI,BookVI,Rulesand
Regulations
Governing
Overseas
Employment)
A:
1. ProhibitedactsunderArt.34
2. Publishing job announcements w/o
POEAsapproval
3. Chargingafeewhichmaybeinexcessof
theauthorizedamountbeforeaworkeris
employed
4. Deploying workers w/o processing
throughPOEA
5. Recruitment in places outside its
authorized area. (Sec. 4, Rule II, Book IV,
POEARules)
Q:Isthelicenseorauthoritytransferable?
A:No,theyarenontransferable.(Art.29)
Q:ARecruitmentandPlacementAgencydeclared
voluntary bankruptcy. Among its assets is its
licensetoengageinbusiness.Isthelicenseofthe
bankrupt agency an asset which can be sold in
publicauctionbytheliquidator?
Note:Changeofownershiporrelationshipofasingle
proprietorship licensed to engage in overseas
employment shall cause the automatic revocation of
thelicense.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
1. TheDOLEordercancellingthelicensesof
XYZ is void because a report that an
agencyiscovertlytransportingextremists
isnotavalidgroundforcancellationofa
Certificate of Registration (Art. 239, LC
and there is failure of due process as no
hearing was conducted prior to the
cancellation(Art.238,LC).
2. TheDOLEorderimposingthetravelbanis
valid because it is a valid exercise of
police power to protect the national
interest (Sec. 3, Art. XIII, Constitution on
full protection to labor safety of workers)
and on the rule making authority of the
SLE. (Art. 5, LC; Phil. Assn. of Service
Exporters v. Drilon, G.R. No. 81958, June
30,1988).(2004BarQuestion)
Q:Whoarethepersonsprohibitedfromengaging
thebusinessofrecruitingmigrantworkers?
A:
1. UnlawfulforanyofficialorEeofthe:
a. DOLE
b. POEA
c. Overseas
Workers
Welfare
Administration(OWWA)
d. DFA
e. Other govt agencies involved in the
implementationofthisAct
th
2. Their relatives within the 4 civil degree
of consanguinity or affinity, to engage,
directly or indirectly in the business of
recruiting migrant workers. (Sec. 8, R.A.
8042)
(b)IllegalRecruitment
Q:WhataretheelementsofIllegalRecruitment?
A:
1. Offender is a nonlicensee or nonholder
of authority to lawfully engage in the
recruitment/placementofworkers
2. Offenderundertakes:
a. Any act of canvassing, enlisting,
contracting, transporting, utilizing,
hiring or procuring workers, and
includes referrals, contact services,
promising or advertising for
employment, locally or abroad,
whetherforprofitornot(Art.13[b]);
or
b. Any of prohibited practices under
Art.34
Q:WhenisthereSimpleIllegalRecruitment?
A:Itisconsideredsimpleillegalrecruitmentwhen
itinvolveslessthanthree(3)victimsorrecruiters.
Q:WhatisthedifferencebetweentheLCandR.A.
8042 or the Overseas Filipinos and Overseas
MigrantWorkersAct?
A:
LC(Art.38)
R.A.8042,asamendedbyRA
10022
Localrecruitment
Appliestorecruitmentfor
overseasemployment
Illegal recruitment
underArt.38means
any
recruitment
activity
including
prohibited
acts
under
Art.
34
committed by non
IllegalrecruitmentunderSec.6
meansanyrecruitmentactivity
committed by nonlicensees/
nonholders of authority or
prohibited acts (same as Art.
34,LC)
11
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Howdoesoneproveillegalrecruitment?
A:Whenitiscommitted:
1. Byasyndicatecarriedoutby3ormore
persons conspiring/confederating with
oneanotheror
2. In large scale committed against 3 or
more persons individually or as a group.
(Sec.6,10022)
Q:Whileherapplicationforrenewalofherlicense
torecruitworkersforoverseasemploymentwas
still pending Maryrose Ganda recruited Alma and
her 3 sisters, Ana, Joan, and Mavic, for
employment as housemates in Saudi Arabia.
Maryroserepresentedtothesistersthatshehada
license to recruit workers for overseas
employment and demanded and received
P30,000.00 from each of them for her services.
However, her application for the renewal of her
license was denied, and consequently failed to
employ the 4 sisters in Saudi Arabia. The sisters
charged Maryrose with large scale illegal
recruitment. Testifying in her defense, she
declaredthatsheactedingoodfaithbecauseshe
12
Q:SometimeinthemonthofMarch1997,inthe
CityofLasPias,Bugobymeansoffalsepretenses
and fraudulent representation convinced Dado to
givetheamountofP120,000.00forprocessingof
his papers so that he can be deployed to Japan.
Dado later on found out that Bugo had
misappropriated, misapplied and converted the
moneytoherownpersonaluseandbenefit.Can
Dado file the cases of illegal recruitment and
estafasimultaneously?
A:Yes,illegalrecruitmentandestafacasesmaybe
filed simultaneously or separately. The filing of
charges for illegal recruitment does not bar the
filing of estafa, and vice versa. Bugos acquittal in
theillegalrecruitmentcasedoesnotprovethatshe
isnotguiltyofestafa.Illegalrecruitmentandestafa
are entirely different offenses and neither one
necessarilyincludesorisnecessarilyincludedinthe
other. A person who is convicted of illegal
recruitmentmay,inaddition,beconvictedofestafa
underArticle315,par.2(a)oftheRPC.Inthesame
manner, a person acquitted of illegal recruitment
maybeheldliableforestafa.Doublejeopardywill
not set in because illegal recruitment is malum
prohibitum,inwhichthereisnonecessitytoprove
criminal intent, whereas estafa is malum in se, in
theprosecutionofwhich,proofofcriminalintentis
necessary.(Syv.People,G.R.No.183879,April14,
2010)
Q:DistinguishIllegalRecruitmentfromEstafa
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
ILLEGALRECRUITMENT
Malumprohibitum,thus:
1. Criminal intent is NOT
necessary
2. itisacrimewhichinvolves
moralturpitude
ESTAFA
Maluminse,
thus:
1. criminal intent is
necessary
2. crime
which
involves
moral
turpitude
Accused defrauded
another by abuse of
confidence, or by
meansofdeceit
NOTE: It is essential
that
the
false
statement
or
fraudulent
representation
constitutes the very
cause or the only
motive which induces
thecomplainanttopart
withthethingofvalue
Illegalrecruitmentandestafacasesmaybefiled
simultaneouslyorseparately.Thefilingofchargesfor
illegalrecruitmentdoesnotbarthefilingofestafa,and
viceversa.
Doublejeopardywillnotset
(c)Liabilities
Q:Whatistheliabilityoftheprivateemployment
agency and the principal or foreignbased
employer?
Q:Whatisthetheoryofimputedknowledge?
agentatthetimeofthetransactionoracquiredby
him before its completion, is deemed to be the
knowledge of the principal, at least so far as the
transaction is concerned, even though in fact the
knowledgeisnotcommunicatedtotheprincipalat
all.(Leonorv.FilipinasCompania,48OG243)
Q: Sunace International Management Services
(Sunace),deployedtoTaiwanMontehermozoasa
domestic helper under a 12month contract
effective Feb. 1, 1997. The deployment was with
the assistance of a Taiwanese broker, Edmund
Wang, President of Jet Crown International Co.,
Ltd.Afterher 12monthcontractexpiredonFeb.
1,1998,Montehermozocontinuedworkingforher
Taiwanese employer for two more years, after
which she returned to the Philippines on Feb. 4,
2000. Shortly after her return she file before the
NLRC against Sunace, one Perez, the Taiwanese
broker,andtheemployerforeignprincipalalleging
thatshewasjailedforthreemonthsandthatshe
was underpaid. Should Sunace be held liable for
the underpayment for the additional two years
that she worked for her Taiwanese employer
underthetheoryofimputedknowledge?
TherebeingnosubstantialproofthatSunaceknew
of and consented to be bound under the 2year
employment contract extension, it cannot be said
to be privy thereto. As such, it and its owner
cannot be held solidarily liable for and of
Montehermozos claims arising from the 2year
employment extension. (Sunace v. NLRC, G.R. No.
161757,Jan.25,2006)
(d)Preteminationofcontractofmigrantworker
13
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
MoneyClaims.Incaseofterminationofoverseas
employment without just, valid or authorized
cause as defined by law or contract, the workers
shall be entitled to the full reimbursement of his
placement fee with interest of 12% per annum,
plus his salaries for the unexpired portion of his
employment contract or for 3 months for every
yearoftheunexpiredterm,whicheverisless.
Isthesubjectclauseconstitutional?
TheclauseisaviolationoftherightofSerranoand
other OFWs to equal protection and right to
substantive due process, for it deprives him of
property, consisting of monetary benefits, without
anyexistingvalidgovernmentalpurpose.
c.DirectHiring
Q:WhatisDirecthiring?
14
thePOEAorentitiesauthorizedbytheSecretaryof
Labor.
Q:Whatisthebanondirecthiring?
XPN:
Directhiringby
1. Internationalorganizations
2. Namehires
3. Membersofthediplomaticorganizations
4. OtherErsasmaybeallowedbyDOLE
Q:Whyisdirecthiringprohibited?
A:
1. To ensure the best possible terms and
conditionsofemploymentfortheworker.
2. ToassuretheforeignErthathehiresonly
qualifiedFilipinoworkers.
3. To ensure full regulation of employment
inordertoavoidexploitation.
2.REGULATIONANDENFORCEMENT
a.Remittanceofforeignexchangeearnings
A:GR:ItshallbemandatoryforallOFWstoremita
portion of their foreign exchange earnings
to their families, dependents, and/or
beneficiaries ranging from 50% 80%
depending on the workers kind of job.
(RuleVIII,BookIII,POEARules)
XPN:
1. Theworkersimmediatefamilymembers,
beneficiariesanddependentsareresiding
withhimabroad
2. ImmigrantsandFilipinoprofessionalsand
employeesworkingwiththeUNagencies
orspecializedbodies
3. Filipino servicemen working in U.S.
military installations. (Resolution No. 1
83, InterAgency Committee for
ImplementationofE.O.857)
Q:Whatistheeffectoffailuretoremit?
A:
1. WorkersShallbesuspendedorremoved
from the list of eligible workers for
overseasemployment.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
b.ProhibitedActivities
A:
1. Furnishing or publishing any false
notice/information/document related to
recruitment/employment
2. FailuretofilereportsrequiredbySLE
3. Inducingorattemptingtoinduceaworker
alreadyemployedtoquithisemployment
in order to offer him another unless the
transfer is designed to liberate a worker
fromoppressivetermsandconditions
4. Recruitment/placement of workers in
jobs harmful to public health or morality
ortothedignityofthecountry
5. Engaging directly or indirectly in the
managementofatravelagency
6. Substituting or altering employment
contractswithoutapprovalofDOLE
7. Chargingoracceptinganyamountgreater
than that specified by DOLE or make a
worker pay any amount greater than
actuallyreceivedbyhim
8. Committing any act of misrepresentation
tosecurealicenseorauthority
9. Influencingorattemptingtoinfluenceany
person/entity not to employ any worker
who has not applied of employment
throughhisagency
10. Obstructing or attempting to obstruct
inspection by SLE or by his
representatives
11. Withholdingordenyingtraveldocuments
from applicant workers before departure
for monetary considerations other than
authorizedbylaw
12. Granting a loan to an OFW which will be
used for payment of legal and allowable
placementfees
13. Refusingtocondoneorrenegotiatealoan
incurredbyanOFWafterhisemployment
contract
has
been
prematurely
terminatedthroughnofaultofhisorher
own
14. For a suspended recruitment/manning
agency to engage in any kind of
recruitment activity including the
processing
of
pending
workers'
applications;and
15. For a recruitment/manning agency or a
foreign principal/ Er to pass on the OFW
or deduct from his or her salary the
payment of the cost of insurance fees,
premium or other insurance related
charges, as provided under the
compulsoryworker'sinsurancecoverage
16. Imposing a compulsory and exclusive
arrangementwherebyanOFWisrequired
to:
a. Avail a loan only from specifically
designated institutions, entities or
persons
b. Toundergohealthexaminationsonly
fromspecificallydesignatedmedical,
entities or persons, except seafarers
whose medical examination cost is
shoulderedbytheshipowner
c. Toundergotrainingofanykindonly
fromdesignatedinstitutions,entities
or
persons,
except
for
recommendatory
trainings
mandated by principals/shipowners.
(Sec.6,R.A.10022)
c.RegulatoryandVisitorialPowersoftheLabor
Secretary
A:
1. Restrictandregulatetherecruitmentand
placementactivitiesofallagencies
2. Issue orders and promulgate rules and
regulations
Q:Whatconstitutevisitorialpower?
A:
1. Access to employers records and
premisesatanytimeofthedayornight,
wheneverworkisbeingundertaken
2. Tocopyfromsaidrecords
3. Question any employee and investigate
any fact, condition or matter which may
be necessary to determine violations or
whichmayaidintheenforcementofthe
Labor Code and of any labor law, wage
order, or rules and regulation issued
pursuantthereto.
A:Powerto:
15
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
provisions
1.
2.
3.
4.
Q:CanSLEissuesearchwarrantsorwarrantsof
arrest?
d.PenaltiesforIllegalRecruitment
Q:Whatistheconsequenceofconvictionofillegal
recruitment(IR)?
A:
PENALTIES(underR.A.10022)
Offender/Offense
IRaseconomic
sabotage
Provided:
1. Ifpersonillegally
recruitedisbelow
18yearsofageor
2. Illegal
recruitmentis
committedbya
nonlicensee/non
holder
Anypersonfound
guiltyofillegal
recruitment
Anypersonfound
guiltyofthe
prohibitedacts
Licensee/holderof
authorityviolates
16
Penalty
Lifeimprisonment+
fineofP2MP5M
Maximumpenaltyshall
beimposed
12yrsand1day20yrs
imprisonment;or
Fine:P1MP2M
6yrsand1day12yrs
imprisonment;or
FineofP500KP1M
25yrsimprisonment;or
Fine:P10KP50K;
orboth
Nonlicensee/non
holderofauthority
violatesprovisions
Corporation,
partnership,
association,orentity
Alien
Ineverycase
48yrsimprisonment;or
Fine:P20KP100K
orboth
Penaltyimposedupon
officer/sresponsiblefor
violation
PenaltiesprescribedunderRA
10022,
+
Deportationwithoutfurther
proceedings
Automaticrevocationof
licenseorauthorityandall
permitsandprivilegesofthe
recruitmentormanning
agency,lendinginstitutions,
trainingschoolormedical
clinic
A:
CRIMINALACTIONS
RTC
Provinceorcity:
1. Wheretheoffensewascommittedor
2. Wheretheoffendedpartyactuallyresidesatthe
sametimeofthecommissionoftheoffense
MONEYCLAIMS
NLRC
Original and exclusive jurisdiction to hear and decide
claimsarisingoutofanErEerelationshiporbyvirtue
of any law or contract involving Filipino workers for
overseas deployment including claims for actual,
moral,exemplaryandotherformsofdamages.
Theliabilityoftheprincipal/Erandtherecruitment/
placement agency for any and all claims shall be
jointandseveral.
The performance bond to de filed by the
recruitment/placementagencyshallbeanswerable
for all money claims or damages that may be
awardedtotheworkers.
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
partnershipfortheclaimsanddamages.
ADMINISTRATIVEACTIONS
POEA
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
EconomicSabotage
Within5yrsfromthetime
illegalrecruitmenthas
happened
Within20yrsfromthe
timeillegalrecruitment
hashappened.(Sec.
12,R.A.8042)
Q:Whenshallcompromiseagreementsonmoney
claimsbepaid?
DoOTandleavepayformpartofthesalarybasis
inthecomputationofthemonetaryaward?
3.OTHERRELATEDTOPICS
PhilippineOverseasEmploymentAdministration
Q:WhataretheprincipalfunctionsofthePOEA?
A:
1. ProtectionoftherightofFilipinoworkers
to fair and equitable employment
practices
2. Regulation of private sector participation
in the recruitment and overseas
placement of workers by setting up a
licensingandregistrationsystem
3. Deployment of Filipino workers through
govttogovthiring
4. Formulation,
implementation,
and
monitoring of overseas employment of
Filipinoworkerstakinginto consideration
their welfare and domestic manpower
requirements
5. Shall inform migrant workers not only of
their rights as workers but also of their
rightsashumanbeings,instructandguide
theworkershowtoasserttheirrightsand
provide the available mechanism to
redress violation of their rights. (Sec. 14,
R.A.10022)
6. Implementation, in partnership with
other lawenforcement agencies, of an
intensified program against illegal
recruitment activities. (Sec. 14, R.A.
10022)
Q:MaythePOEA,atanytimeterminateorimpose
abanonemploymentofmigrantworkers?
A: Yes,in consultationwiththeDFAbasedonthe
ff.grounds:
2. InpursuitoftheNationalInterestor
17
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
1. Guaranteed wages for regular hours and
overtime, not lower than the minimum
wageprescribedinalloftheff:
a. Thehostcountry
b. Bilateralagreementsorinternational
conventions ratified by the host
countryandthePhilippines
c. ThePhilippines
2. Free transportation to and from the
worksiteoroffsettingbenefit
3. Free food and accommodation or
offsettingbenefit
4. Just/authorized causes of termination of
thecontractorservicesoftheworker
Q:WhatistheruleondeploymentofOFWs?
A:TheStateshallallowthedeploymentofOFWs:
A:
1. It has existing labor and social laws
protectingtherightsofworkers,including
migrantworkers;
2. It is a signatory to and/or a ratifier of
multilateral conventions, declarations or
resolutions relating to the protection of
workers,includingmigrantworkers;and
18
3.
Ithasconcludedabilateralagreementor
arrangementwiththegovernmentonthe
protectionoftherightsofOFWs..(Sec.3,
R.A.10022amendingR.A.8042)
Note:Intheabsenceofaclearshowingthatanyofthe
guarantees exists in the country of destination of the
migrant workers, no permit for deployment shall be
issuedbythePOEA.
Q:Whatistheruleonrepatriation?
A:GR:Therepatriationofthe:
1. Worker and the transport of his personal
belongings shall be the primary
responsibility of the agency which
recruited or deployed the worker
overseas.
2. Remains and transport of the personal
belongings of a deceased worker and all
costsattendanttheretoshallbeborne
bytheprincipaland/orthelocalagency.
XPNs:
1. If the termination of employment is due
solely to the fault of the worker, the
principal/ Er or agency shall not be
responsible for the repatriation of the
formerand/orhisbelongings
2. In cases of war, epidemic, disaster or
calamities, natural or manmade, and
other similar event, and where the
principalorrecruitmentagencycannotbe
identified,theOverseasWorkersWelfare
Administration, in coordination with
appropriate international agencies, shall
take charge of the repatriation. (Sec.15,
R.A.8042)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
1. Regulatory It regulates the private
sector participation in the recruitment
and overseas placement of workers
through its licensing and registration
system.
2. Adjudicatory
a. Administrative cases involving
violations of licensing rules and
regulations and registration of
recruitment
and
employment
agenciesorentities
b. Disciplinary action cases and other
special
cases
which
are
administrative in character involving
employers, principals, contracting
partnersandFilipinomigrants.
Q:Whatarethegroundsfordisciplinaryactionof
OFWs?
A:UnderR.A.8042,theseare:
1. Prostitution
2. Unjustrefusaltodepartfortheworksite
3. Gunrunning or possession of deadly
weapons
4. Vandalism or destroying company
property
5. Violationofthelawsandsacredpractices
ofthehostcountryandunjustifiedbreach
ofemploymentcontract
6. Embezzlement of funds of the company
orfellowworkerentrustedfordeliveryto
relativesinthePhils.
7. Creatingtroubleattheworksiteorinthe
vessel
8. Gambling
9. Initiating or joining a strike or work
stoppage where the laws of the host
countryprohibitsstrikesorsimilaractions
10. Commission of felony punishable by
Philippinelawsorbythehostcountry
11. Theftorrobbery
12. Drunkenness
13. Drugaddictionorpossessionortrafficking
ofprohibiteddrugs
14. Desertionorabandonment
Q:Whatisthedistinctionbetweenthejurisdiction
oftheLAandPOEA?
A:
JURISDICTION
LaborArbiter
Original and exclusive
jurisdiction over all
claims arising out of
ErEe relationship or
byvirtueofanylawor
contract
involving
OFWsincludingclaims
for:
1.Actual
2.Moral
3.Exemplary
4.Other forms of
damages. (Sec. 10,
R.A.8042)
POEA
Original
and
exclusive
jurisdictionover:
1. All cases which are
administrative in character
relating to licensing and
registration of recruitment
andemploymentagencies
Q:Whatmattersfalloutsidethejurisdictionofthe
POEA?
A:
1.
Foreign judgments such claim must be
brought before regular courts. POEA is
notacourt;itisanadministrativeagency,
exercising adjudicatory or quasijudicial
functions.
2. Torts falls under the provisions of the
CivilCode.
19
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:Yes.GMCsclaimthathiringofaforeigncoachis
anErsprerogativehasnolegalbasis.UnderArt.40
of the LC, an Er seeking employment of an alien
must first obtain an employment permit from the
DOLE. GMCs right to choose whom to employ is
limited by the statutory requirement of an
employmentpermit.(GMCv.Torres,G.R.No.9366,
April22,1991)
Art.41.ProhibitionAgainstTransferofEmployment
A:GR:Onlynonresidentaliens;
20
XPNS:
1. Diplomatic services and foreign govt
officials
2. Officers and staff of intl organizations
andtheirlegitimatespouses
3. Members of governing board who has
votingrightsonly
4. Thoseexemptedbyspeciallaws
5. Owners and representatives of foreign
principals who interview Filipino
applicantsforemploymentabroad
6. Alienswhosepurposeistoteach,present
and/orconductresearchstudies
7. Resident aliens. (D.O. 7506, May 31,
2006)
A:Aftertheissuanceofanemploymentpermit,the
alienshallnottransfertoanotherjoborchangehis
employerwithoutpriorapprovaloftheSecretaryof
Labor.
A:AnAlienEmploymentRegistrationCertificate.
A:GR:Minimumof1year
XPN:Unlessrevokedandsubjecttorenewal
Q:Mayaliensbeemployedinentitiesengagedin
nationalizedactivities?
A:GR:No.
XPNs:
1. Sec. of Justice specifically authorizes the
employmentoftechnicalpersonnel
2. Aliens are elected members ofthe board
of directors or governing body of
corporationsorassociationsor
3. EnterprisesregisteredundertheOmnibus
Investment Code in case of technical,
supervisory or advisory positions, but for
alimitedperiod.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whataretheentitiesintheprivatesectorsthat
can participate in recruitment and placement of
workers?
A:
1. Shipping or manning agents or
representatives
2. Privaterecruitmentoffices
3. Publicemploymentoffices
4. Construction contractors if authorized by
the DOLE and Construction Industry
Authority.
5. Persons that may be authorized by the
SLE
6. Private employment agencies. (Sec. 1,
RuleVII,BookI,IRR)
A:
1. Filipino citizens, partnerships or
corporations at least 75% of the
authorized capital stock of which is
ownedandcontrolledbyFilipinocitizens;
(Art.27,LC)
2. Capitalization
a. Singleproprietorshiporpartnership
A minimum capitalization of P2
million
b. Corporation
A minimum paidup capital of P2
million
Provided,thatthosewithexistinglicenses
shall, within 4 yrs from the effectivity
hereof, increase their capitalization or
paidupcapital,asthecasemaybe,toP2
million at the rate of P250,000.00 every
year.(Art.28,LC)
3. Nototherwisedisqualifiedbylaworother
government regulations to engage in the
recruitmentandplacementofworkersfor
overseas employment. (Rule I, Part II,
POEARules)
4. Paymentofregistrationfees
5. Postingofsurety/cashbonds
A:Bysettingupalicensingandregistrationsystem.
(Sec.14,R.A.10022)
Q:Whoaredisqualifiedtoengageinthebusiness
ofrecruitmentandplacementofworkers?
A:
1. Travel agencies and sales agencies of
airlinecompanies;(Art.26,LC)
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel
agency;
3. Corporationsandpartnerships,whenany
of its officers, members of the board or
partners,isalsoanofficer,memberofthe
board or partner of a corporation or
partnership engaged in the business of a
travelagency;
4. Persons, partnerships or corporations
which have derogatory records, such as
butnotlimitedtothose:
a. Certified to have derogatory record
or information by the NBI or by the
AntiIllegal Recruitment Branch of
thePOEA;
b. Against whom probable cause or
primafaciefindingofguiltforillegal
recruitment or other related cases
exists;
c. Convicted for illegal recruitment or
other related cases and/or crimes
involvingmoralturpitude;and
d. Agencies whose licenses have been
previously revoked or cancelled by
the POEA for violation of R.A. 8042,
P.D. 442 as amended and their
implementing rules and regulations
as well as these rules and
regulations.
5. Any official or Ee of the DOLE, POEA,
OWWA, DFA and other government
agencies directly involved in the
implementation of R.A. 8042 and/or any
th
of his/her relatives within the 4 civil
degreeofconsanguinityoraffinity;and
6. Personsorpartners,officersanddirectors
ofcorporationswhoselicenseshavebeen
previously cancelled or revoked for
violationofrecruitmentlaws.(Sec.2,Rule
I, 2002 Rules and Regulations on the
21
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Art.26.TravelAgenciesProhibitedtoRecruit
Art.32.FeestobePaidbyWorkers
Q:Whenmayaworkerbechargedanyfee?
A:Onlywhen:
1. Hehasobtainedworkthroughrecruiters
efforts,and
2. The worker has actually commenced
working
A:
1. Placement fee in an amount equivalent
toonemonthssalaryoftheworkerand
2. Documentationcosts.
22
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
C.LABORSTANDARDS
1.HOURSOFWORK
a.Coverage/Exclusions
Q:Whodeterminesworkingconditions?
A:Generally,theyaredeterminedbytheemployer,
as he is usually free to regulate, according to his
discretion,allaspectsofemployment.
Q:Whatisthelimitationontheemployerspower
toregulateworkingconditions?
Q:Whendoestheconditiononemploymentunder
theLaborCodeapply?
A:OnlyifanErEerelationshipexists.
Q:Whoaretheemployeesthatarecoveredbythe
conditionsofemployment?
A:GR:ItappliestoallEesinallestablishments.
XPN:
1. Govtemployees
2. Managerialemployees
3. Fieldpersonnel
4. The employers family members who
dependonhimforsupport
5. Domestic helpers and persons in the
personalserviceofanother,and
6. Workers who are paid by results as
determinedunderDOLEregulations
Q:Whoaregovernmentemployees(Ees)?
A:TheyareEesofthe:
1. NationalGovernment
2. Anyofitspoliticalsubdivisions
3. Including those employed in GOCCs with
originalcharters.
Q:WhatlawgovernsgovernmentEes?
A:TheCivilServiceLaw,rulesandregulations.
Q:WhoaremanagerialEes?
Theymustmeetalloftheff.conditions,namely:
Q:WhyaremanagerialEesnotcovered?
Q:Whoarefieldpersonnel?
A:Theyare:
1. nonagriculturalemployees
2. whoregularlyperformtheirduties
3. awayfromtheprincipalplaceofbusiness
orbranchofficeoftheemployer;and
4. whose actual hours of work in the field
cannot be determined with reasonable
certainty.
Q:Whoareworkerspaidbyresults?
A:Theyare:
23
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
paidbasedontheworkcompleted;and
notonthetimespentinworking
including those who are paid on piece
work, takay, pakiaw, or task basis if
theiroutputratesareinaccordancewith
thestandardsprescribed.
A:Thosewho:
A:No,thepersonnelisnotadomestichelperbuta
regularemployeeofthecompany.
A:
1. Managerial Ee One who is vested with
the powers or prerogatives to lay down
andexecutemanagementpoliciesand/or
to hire, transfer, suspend, layoff, recall,
discharge,assignordisciplineEes.
2. SupervisoryEethosewhointheinterest
of the Er, effectively recommend such
managerialactionsiftheexerciseofsuch
authority is not merely routinary or
clerical in nature but requires the use of
independentjudgment.
3. RankandFileEeallEesnotfallingwithin
anyoftheabovedefinitions.(Art.212[m])
b.Normalhoursofwork
Q:WhatarethenormalhoursofworkofanEe?
A:Itshouldnotexceed8hoursinageneralworking
day.
Q:Whatareconsideredhoursworked?
24
A:
1.
2.
AlltimeduringwhichanEeisrequiredto
be:
a. Onduty,or
b. AttheErspremises,or
c. Ataprescribedworkplace
AlltimeduringwhichanEeissufferedor
permittedtowork.(Sec.3,RuleI,BookIII,
IRR)
A:
1. AllhourswhichtheEeisrequiredtogive
to his Er regardless of whether or not
such hours are spent in productive labor
orinvolvephysicalormentalexertion.
2. Rest period is excluded from hours
worked, even if Ee does not leave his
workplace,itbeingenoughthat:
a. Hestopsworking
b. Mayrestcompletely
c. May leave his workplace, to go
elsewhere, whether within or
outside the premises of the
workplace
3. All time spent for work is considered
hoursworkedif:
a. The work performed was
necessary
b. IfitbenefitedtheEr
c. OrtheEecouldnotabandonhis
work at the end of his normal
working hours because he had
noreplacement
d. Provided,theworkwaswiththe
knowledge of his Er or
immediatesupervisor
4. ThetimeduringwhichanEeisinactiveby
reasons of interruptions in his work
beyond his control shall be considered
workingtime:
a. If the imminence of the
resumption of the work
requires the Ees presence at
theplaceofworkor
b. If the interval is too brief to be
utilized effectively and gainfully
intheEesowninterest.(Sec.4,
RuleI,BookIII,IRR)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
(a)Exceptions:HealthPersonnel&Compressed
WorkWeek
HealthPersonnel
Q:Whoarecoveredbythe40hourworkweek?
A:
1. Health personnel in cities and
municipalities with a population of at
least1million;or
2. Hospitals and clinics with a bed capacity
ofatleast100
Note:Art.83(2)donotrequirehospitalstopaythe
Ees a full weekly salary with paid 2 days off. (San
Juan de Dios Ees Assoc.AFW et al. vs. NLRC, G.R.
No.126383,Nov.28,1997)
CompressedWorkweek
Q:Whatisacompressedworkweek?
4.
5.
6.
TheEevoluntarilyagreestoit
There is no diminution in their weekly or
monthlytakehomepayorfringebenefits
The benefits are more than or at least
commensurate or equal to what is due
the Ees without the compressed work
week
OTpaywillbedueanddemandablewhen
they are required to work on those days
which should have ceased to be working
days because of the compressed work
weekschedule.
No strenuous physical exertion or that
theyaregivenadequaterestperiods.
It must be for a temporary duration as
determined by the DOLE. (2005 Bar
Question)
A:
1. The Er shall notify the DOLE through the
Regional Office which has jurisdiction
over the workplace, of the adoption of
compressedworkweek.
2. The notice shall be in Report Form
attachedtotheadvisory.
3. The Regional Office shall conduct an
ocular visit to validate whether the
adoption of the flexible work
arrangements is in accordance with this
issuance.(DepartmentAdvisoryOrderNo.
2,Seriesof2009)
25
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
c.WorkinterruptionduetobrownoutS
Q: What are the guidelines on power
interruptions?
A:
1.
d.MealBreak
Q:Whatisthedurationofthemealperiod?
A: Every Er shall give his Ees not less than 60
minutesor1hourtimeoffforregularmeals.
Q:Isthemealperiodcompensable?
A: Beingtimeoff,itisnotcompensable.Employee
mustbecompletelyrelievedfromduty.
Q: When is the meal period considered
compensable?
A: It is compensable where the lunch period or
mealtime:
1.
2.
26
Ispredominantlyspentfortheemployers
benefit;or
Whereitislessthan20minutes
2.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
d.
e.
f.
e.Idletime,waitingtime,commutingtime/travel
time,whetherpartofhoursofworkornot
Q:Whenidletimeisconsideredworkingtime?
A:Whentheemployeeisidleorinactivebyreason
of interruptions beyond his control shall be
consideredworkingtime.
Q:Wheniswaitingtimeconsideredworkingtime?
A:
1. Ifwaitingisanintegralpartofhiswork,or
2. TheEeisrequiredorengagedbytheErto
wait(engagedtowait)
Travelfromhometowork
XPNS:
a. Emergency call outside his regular
working hours where he is required
b.
c.
d.
3. Travelawayfromhome
GR:
a. Travel that requires an overnight
stay on the part of the Ee when it
cutsacrosstheEesworkdayisclearly
workingtime.
b. Thetimeisnotonlyhoursworkedon
regular workdays but also during
corresponding working hours on
nonworking days. Outside of these
regular working hours, travel away
from home is not considered
workingtime.
A:Alloftheff.conditionsmustbepresent:
1. Attendance is outside of the employers
regularworkinghours
2. Attendanceisinfactvoluntaryand
3. The employee does not perform any
productiveworkduringsuchattendance.
f.Overtimework:Undertimeoffsetbyovertime,
Waiverofovertime
Q:Whatisovertimework(OT)?
2.
27
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatisaworkday?
A: The 24hourperiod which commences fromthe
timetheemployeeregularlystartstowork
e.g. If the worker starts to work 8 am today, the
workdayisfrom8amtodayupto8amtomorrow.
Q:WhatistherationalebehindOTpay?
A: Employee is made to work longer than what is
commensurate with his agreed compensation for
the statutory fixed or voluntarily agreed hours of
laborheissupposedtodo.(PNBvs.PEMAandCIR,
G.R.No.L30279,July30,1982)
Discourages the employer (Er) from requiring such
work thus protecting the health and wellbeing of
the worker, and also tend to remedy
unemployment by encouraging Ers to employ
othersworkerstodowhatcannotbeaccomplished
duringthenormalhoursofwork.
Q:DistinguishOvertimepayfrompremiumpay.
A:
OVERTIMEPAY
Additional
compensationfor
work performed
beyond 8 hours
on ordinary days
(within
the
workers 24hour
workday)
PREMIUMPAY
Additionalcompensationforwork
performedwithin8hoursondays
when normally he should not be
working (on nonworking days,
such as rest days and special
days.)
But additional compensation for
work rendered in excess of 8
hours during these days is also
consideredOTpay.
Q:WhataretheOTpayrates?
A:
PAYRATES
OTduringaregularworkingday
Additionalcompensationof25%oftheregularwage
OTduringaholidayorrestday
28
Rateofthefirst8hoursworkedon
plusatleast30%oftheregularwage(RW):
ifdoneonaspecialholidayORrestday:
30%of130%ofRW
IfdoneonaspecialholidayANDrestday:
30%of150%ofRW
ifdoneonaregularholiday:
30%of200%ofRW
Q:WhatisthebasisofcomputingtheOTpayand
additionalremuneration?
A:Regularwagewhichincludesthecashwageonly,
withoutdeductiononaccountoffacilitiesprovided
bytheemployer.(Art.90)
Q: In lieu of OT pay, the employee was given
permission to go on leave on some other day, is
thatvalid?
A:No.Permissiongiventotheemployee(Ee)togo
onleaveonsomeotherdayoftheweekshallNOT
exempt the employer from paying the additional
compensation required because it would prejudice
theEe,forhewillbedeprivedoftheadditionalpay
for the OT work he has rendered and which is
utilized to offset the undertime he may have
incured. Undertime could be charged against the
Eesaccruedleave.
Q: Socorro is a clerktypist in the Hospicio de San
Jose, a charitable institution dependent for its
existence on contributions and donations from
wellwishers.Sherenderswork11hoursadaybut
hasnotbeengivenOTpaysinceherplaceofwork
isacharitableinstitution.IsSocorroentitledtoOT
pay?Explainbriefly.
A:Yes.SocorroisentitledtoOTcompensation.She
does not fall under any of the exceptions to the
coverage of Art. 82, under the provisions of hours
of work. The Labor Code is equally applicable to
nonprofit institutions. A covered Ee who works
beyond 8 hours is entitled to OT compensation.
(2002BarQuestion)
Q: Flores applied for the position of driver in the
motorpool of Gold Company, a multinational
corporation. Danilo was informed that he would
frequently be working OT as he would have to
drive for the company's executives even beyond
the ordinary 8hour work day. He was provided
withacontractofemploymentwhereinhewould
bepaidamonthlyrateequivalentto35timeshis
dailywage,regularsickandvacationleaves,5day
leavewithpayeverymonthandtimeoffwithpay
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
when the company's executives using the cars do
not need Danilo's service for more than eight
hoursaday,inlieuofOT.Aretheaboveprovisions
ofthecontractofemploymentinconformitywith,
orviolativeof,thelaw?
A: Except for the provision that Danilo shall have
time off with pay when the company's executives
usingthecarsdonotneedDanilo'sserviceformore
than8hoursaday,inlieuofOT,theprovisionsof
the contract of employment of Danilo are not
violative of any labor law because they instead
improve upon the present provisions of pertinent
laborlaws.
Q: May an employee be compelled to render OT
work?
A:GR:No.OTworkisvoluntary.
2.
3.
4.
5.
6.
7.
2.
(a)UndertimenotoffsetbyOvertime
Q:Canundertime(UT)offsetOT?
A: Whereaworkerincursundertimehoursduring
hisregulardailywork,saidundertimehoursshould
not be offset against the overtime hours on the
samedayoronanyotherday.Itisbothprohibited
bythestatuteandbyjurisprudence.
(b)WaiverofOvertimepay
Q:CantherighttoOTpaybewaived?
A:GR:TherighttoOTpaycannotbewaivedasit
is governed by law and not merely by the
agreementoftheparties.
XPN:
1. If the waiver is done in exchange for
certain valuable benefits and privileges,
which may even exceed the OT Pay,
waivermaybepermitted.
2. Compressedworkweek
g.Nightwork
Q:Whatisnightwork?
A:Itdepends.
1.
specificwagesperday,withoutproviding
for a fixed hourly rate or that the daily
wagesincludeOTpay,saidwagescannot
be considered as including OT
compensation. (Manila Terminal Co. vs.
CIR,etal.,91Phil.,625)
However, the employment contract may
provideforabuiltinOTpay.Becauseof
this, nonpayment of OT pay by the
employer is valid. (Engg Equipment vs.
Minister of Labor, G.R. No. L64967, Sep.
23,1985)
2.
29
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3.
XPNS:
1. Actualorimpendingemergencies
a. Caused by serious accident, fire,
flood,
typhoon,
earthquake,
epidemic, other disasters, or
calamity
b. Topreventlossoflifeorpropertyor
c. Incaseofforcemajeureor
d. Imminentdangertopublicsafety
2. Urgentwork
a. To be performed on machineries,
equipmentorinstallations,
b. To avoid serious loss which the Er
wouldotherwisesuffer
3. Workisnecessarytopreventseriousloss
toperishablegoods
4. WomanEes
a. Holds a responsible position of
managerialortechnicalnature,or
b. Has been engaged to provide health
andwelfareservices
5. Natureofthework
a. Requires the manual skill and
dexterityofwomenworkersand
b. Thesamecannotbeperformedwith
equalefficiencybymaleworkers
6. Women Ees are immediate members of
theestablishmentorundertaking
7. In analogous cases exempted by the SLE
inappropriateregulations.(Art.131)
Q:Whatisnightshiftdifferential(NSD)?
A: It is additional compensation of not less than
10%ofanEesregularwageforeveryhourworked
between10:00pmto6:00am,whetherornotsuch
periodispartoftheworkersregularshift.
Q:WhoareentitledtoNSD?
A:GR:NSDappliestoallemployees(Ees).
30
XPN:
1. Ees of the Govt and any of its political
subdivisions,includingGOCCs.
2. Retail and service establishments
regularly employing not more than 5
workers.
3. Includestaskandcontractbasis
4. Domestic helpers and persons in the
personalserviceofanother.
5. Field personnel and Ees whose time and
performance is unsupervised by the
employer
6. ManagerialEes
Q:MayanemployeewaivetherighttoNSD?
A: GR: No, such waiver is against public policy.
(Mercury Drug Co., Inc. vs. Dayao, et al., G.R.
No.L30452,Sep.30,1982)
XPN:Higher/betterbenefits
h.CBAprovisionvisvisovertimework
Q:Maytheovertimeratebesubjecttostipulation
oftheEeandEr?
A:Generally,thepremiumforworkperformedon
the employees rest days or on special days or
regularholidaysareincludedaspartoftheregular
rate of the employee in the computation of
overtime pay for any overtime work rendered on
said days especially if the employer pays only the
minimum overtime rates prescribed by law. The
employees and employer, however, may stipulate
in their collective agreement the payment of
overtime rates higher than those provided by law
andexcludethepremiumratesinthecomputation
of overtime pay. Such agreement may be
consideredvalidonlyifthestipulatedovertimepay
rates will yield to the employees not less than the
minimumprescribedbylaw.
2.WAGES
Q:Whatisawage?
A: It is the remuneration or earnings, however
designated,capableofbeingexpressedintermsof
money, whether fixed or ascertained on a time,
task, piece, or commission basis, or other method
of calculating the same, payable by an employer
(Er) to an employee (Ee) under a written or
unwrittencontractofemployment:
1.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
2.
Q:Whatdoyoumeanbycustomary?
XPN:Thelaborerwasable,willingandreadyto
workbutwas:
1. Preventedbymanagement;
2. Illegallylockedout;
3. Illegallysuspended;
4. Illegallydismissed
5. Otherwise illegally prevented from
working. (Aklan Electric Coop. v. NLRC,
G.R.No.129246,Jan.25,2000)
b.CoverageandExclusions
Q:Towhomdoesthetitleonwagesapply?
A:GR:Itappliestoallemployees
XPN:
1. Farmtenancyorleasehold;
2. Householdordomestichelpers,including
familydriversandpersonsworkinginthe
personalserviceofanother;
3. Homeworkersengagedinneedleworkor
in any cottage industry duly registered in
accordancewithlaw;
4. Workers in duly registered cooperatives
when so recommended by theBureau of
Cooperative Development and upon
approval of the Secretary of Labor and
Employment.
5. Workers of a barangay micro business
enterprise(R.A.9178)
c.FacilitiesandSupplements
Q:Distinguishbetweenfacilitiesandsupplement
A:
FACILITIES
Items
of
expenses
necessaryforthelaborers
and his familys existence
andsubsistence
Note:Doesnotincludetools
oftradeorarticles/services
primarily for the benefit of
the Er or necessary to the
conductoftheErsbusiness.
Formspartofthewage
Deductiblefromwage
For the benefit of the
workerandhisfamily.
SUPPLEMENT
Extra remuneration or
special privileges or
benefits given to or
receivedbythelaborers
over and above their
ordinary earnings or
wages (Atok Big Wedge
Mining Co. v. Atok Big
Wedge Mutual Benefit
Assoc, G.R. No. L7349,
July19,1955).
Independentofwage
Notwagedeductible
Granted
for
the
convenienceoftheEr.
Q:Whatisthecriterionindeterminingwhetheran
itemisasupplementorfacility?
A:Thecriterionisnotsomuchwiththekindofthe
benefitoritem(food,lodging, bonusorsickleave)
given, but its purpose. (State Marine v. Cebu
SeamensAssn.,G.R.No.L12444,Feb.28,1963)
Q:Whencanthecostoffacilitiesfurnishedbythe
ErbechargedagainstanEe?
A:InorderthatthecostbechargedagainsttheEe,
the latters acceptance of such facilities must be
voluntary.
Q:Whataretherequirementsfordeductingvalues
forfacilities?
A:
1.
2.
3.
31
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
WAGE
SALARY
(Gaavs.CA,G.R.No.44169,Dec.3,1985)
Paidtowhitecollared
Compensationformanual
workersanddenotes
labor(skilledorunskilled)
higherdegreeof
alsoknownasblue
employmentora
collaredworkers,paidat
superiorgradeofservices
statedtimesand
andimpliesapositionin
measuredbytheday,
office.
week,monthorseason.
Considerablepayfora
Outgestureofalarger
lowerandless
andmoreimportant
responsiblecharacterof
service
employment.
GR:Notsubjectto
execution
Subjecttoexecution.
XPN:Debtsincurredfor
food,shelter,clothingand
medicalattendance.
e.WageDistortion
Q:Whatiswagedistortion(WD)?
A: Asituationwhereanincreaseinwageresultsin
theeliminationorseverecontractionofintentional
quantitative differences in wage or salary rates
between and among the Eegroups in an
establishment as to effectively obliterate the
distinctionsembodiedinsuchwagestructurebased
onskills,length ofserviceorotherlogicalbasesof
differentiation.
Q:WhataretheelementsofWD?
A:
1. An existing hierarchy of positions with
correspondingsalaryrates.
2. A significant change or increase in the
salaryrateofalowerpayclasswithouta
corresponding increase in the salary rate
ofahigherone;
3. The elimination of the distinction
betweenthe2groupsorclasses;and
4. The WD exists in the same region of the
country. (Alliance Trade Unions v. NLRC,
G.R.No.140689,Feb.17,2004)
Q:IstheErlegallyobligedtocorrectWD?
32
Q:WhatarethebasicprinciplesinWD?
A:
1. The concept of WD assumes an existing
group or classification of Ees which
establishes distinctions among such Ees
onsomerelevantorlegitimatebasis.This
classification is reflected in a differing
wagerateforeachoftheclassesofEes
2. Often results from govt decreed
increasesinminimumwages.
3. Should a WD exist, there is no legal
requirement that, in the rectification of
that distortion by readjustment of the
wageratesofthedifferingclassesofEes,
the gap which had previously or
historically existed be restored in
precisely the same amount. In other
words, correction of a WD may be done
by reestablishing a substantial or
significant gap (as distinguished from the
historicalgap)betweenthewageratesof
thedifferingclassesofEes.
4. The reestablishment of a significant
differenceinwageratesmaybetheresult
of resort to grievance procedures or
collectivebargainingnegotiations.(Metro
Transit Org., Inc. v. NLRC, G.R. No.
116008,July11,1995)
Q:DistinguishtheprocessforcorrectionofWDof
organized establishments and unorganized
establishments?
A:
Organized
Establishment
(withunion)
TheErandtheunion
shallnegotiateto
correctdistortion.
Anydisputeshallbe
resolvedthrougha
grievanceprocedure
undertheCBA.
Ifitremainsunresolved,
itshallbedealtwith
throughvoluntary
arbitration.
Thedisputewillbe
resolvedwithin10days
fromthetimethe
disputewasreferredto
voluntaryarbitration.
Unorganized
Establishments
(withoutunion)
TheErandtheworkers
shallendeavortocorrect
thedistortion.
Anydisputeshallbe
settledthroughtheNCMB.
Ifitremainsunresolved
within10daysitshallbe
referredtotheNLRC.
TheNLRCshallconduct
continuoushearingsand
decidethedisputewithin
20daysfromthetimethe
samewasreferred.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q: Can the issue of WD be raised in a notice of
strike?
f.CBAprovisionvisvisWageOrderCBACredibility
Q:DistinguishCBAandWageOrder.
A:
CBA
Not
an
ordinary
contract. It can be
entered into only by an
exclusive
bargaining
agentorunit.
If the CBA provides
betterbenefitsthenthe
employees shall be
entitledtothesame.
WAGEORDER
Administrative issuance
which results from a
statute(RA6727)
Onlysetstheminimum
g.Nondiminutionofbenefits
Q:Whatistheconceptofnondiminution(ND)of
benefits?
A: GR: Benefits being given to employees (Ees)
cannot be taken back or reduced unilaterally by
the employer (Er) because the benefit has
become part of the employment contract,
whetherwrittenorunwritten.
XPN:Tocorrectanerror,otherwise,iftheerroris
notcorrectedforareasonabletime,itripensinto
a company policy and Ees can demand it as a
matterofright.
Q:WhenisNDofbenefitsapplicable?
A: It is applicable if it is shown that the grant of
benefit:
A:Yes,wheretheCBAprovidesawageorsalaryto
be received by the employees which is more than
theamountsetbytheWageOrder,whetherissued
prior to or after the conclusion of the CBA, it is
incumbent upon the employer to compensate the
employees according to the provisions of the CBA
withrespecttowages.
Q: Meycauayan College Faculty and Personnel
Association as the employees union in
Meycauayan College, admits that its members
were paid all the increases in pay as mandated
law.Itappearshoweverthatin1987,shortlyafter
union President Joy Bugo turned over the
presidency,shediscoveredthatArt.IVoftheCBA,
which providesfor higher salary increasewasnot
implemented.Maytheunionclaimthedifference
between their old salaries and those provided by
saidCBAprovision?
A: Yes, the terms and conditions of a collective
bargainingcontractconstitutethelawbetweenthe
parties. Beneficiaries thereof are therefore, by
right, entitled to the fulfillment of the obligation
prescribed therein.Consequently, to deny binding
force to the CBA would place a premium on a
refusalbyapartytheretotocomplywiththeterms
oftheagreement.Suchrefusalwouldconstitutean
unfairlaborpractice.
1.
2.
h.Workerspreferenceincaseofbankruptcy
Q:Whatisbankruptcy?
A:BankruptcyisreferredtointhePhilippinesas
Insolvency. It denotes the state of an entity or
personthathasliabilitiesgreaterthanitsassets.
33
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
3.
4.
5.
34
(a) Incaseswheretheworkerisinsuredwith
his consent by the employer, and the
deductionistorecompensetheemployer
for the amount paid by him as premium
ontheinsurance;
(b) For union dues, in cases where the right
of the worker or his union to check off
has been recognized by the employer or
authorized in writing by the individual
workerconcerned;and
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
(c) Incaseswheretheemployerisauthorized
by law or regulations issued by the
SecretaryofLabor.
Art117DeductiontoEnsureEmploymentItshallbe
unlawfultomakeanydeductionfromthewagesof
anyemployeeforthebenefitoftheemployerorhis
representative or intermediary as consideration of
a promise of employment or retention in
employmentorretentioninemployment.
j.Allowabledeductionswithoutemployees
consent
Q:Whatistheruleinwagedeductions?
A:
GR:Itisstrictlyprohibited
XPN:
1. Deductions under Art. 113 for insurance
premiums
2. Unionduesincaseswheretherightofthe
workerorhisuniontocheckoffhasbeen
recognized by the employer (Er) or
authorized in writing by the individual
k.Attorneysfees
2.
Q:Whatisordinaryattorneysfee?
35
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatisextraordinaryattorneysfee?
Q:Santiago,aprojectworker,wasbeingassigned
by his Er, Bagsak Builders, to Laoag, Ilocos Norte.
Santiago refused to comply with the transfer
claiming that it, in effect, constituted a
constructive dismissal because it would take him
away from his family and his usual work
assignments in Metro Manila. The Labor Arbiter
(LA) found that there was no constructive
dismissal but ordered the payment of separation
pay due to strained relations between Santiago
and Bagsak Builders plus attysfees equivalentto
10%ofthevalueofSantiago'sseparationpay.
Istheawardofatty'sfeesvalid?Statethereasons
foryouranswer.
A: No, the award of attys fees is not valid.
AccordingtotheLC(Art.111[a]),attysfeesmaybe
assessedincasesofunlawfulwithholdingofwages
which does not exist in the case. The worker
refusedtocomplywithalawfultransferorder,and
hence,arefusaltowork.Giventhisfact,therecan
benobasisforthepaymentofatty'sfees.
Could the LA have validly awarded moral and
exemplary damages to Santiago instead of atty's
fees?Why?
A: No, moral and exemplary damages can be
awardedonlyiftheworkerwasillegallyterminated
in an arbitrary or capricious manner. (Nueva Ecija
Electric Cooperative Inc., Ees Assn., vs. NLRC, G.R.
No. 116066, Jan. 24, 2000; Cruz vs. NLRC, G.R. No.
116384, Feb. 7, 2000; Phil. Aeolus etc., vs. NLRC,
G.R. No. 124617, April 28, 2000). (2001 Bar
Question)
36
Q:Whatisunionservicefee?
Thedemandforlivingwages
Wage adjustment visavis the consumer
priceindex
c) The cost of living and changes or
increasestherein
d) Theneedsofworkersandtheirfamilies
e) Theneedtoinduceindustriestoinvestin
thecountryside
f) Improvementsinstandardsofliving
g) Theprevailingwagelevels
h) Fair return of the capital invested and
capacitytopayofemployers
i) Effects on employment generation and
familyincome
j) The equitable distribution of income and
wealthalongtheimperativesofeconomic
andsocialdevelopment
Q:Whatissalaryceilingmethod?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A: A method of minimum wage adjustment
whereby the wage adjustment is applied to Ees
receiving a certain denominated ceiling. In other
words, workers already being paid more than the
existingminimumwagearealsotobegivenawage
increase. (ECOP v. NWCP, G.R. No. 96169, Sep. 24,
1991)
Q:Whatisafloorwagemethod?
A:Itinvolvesthefixingofadeterminateamountto
beaddedtotheprevailingstatutoryminimumwage
rates.
Q:TheRegionalWageBoardofRegionIIissueda
Wage Order granting all Ees in the private sector
throughout the region an acrosstheboard
increaseofP15.00daily.IsthisWageOrdervalid?
A:TheWageOrderisvalidinsofarasthemandated
increase applies to Ees earning the prevailing
minimum wage rate at the time of the passage of
the Wage Order and void with respect to its
application to Ees receiving more than the
prevailing minimum wage rate at the time of the
passage of the Wage Order. Pursuant to its
authority, the Regional Wage Boards may issue
wage orders which set the daily minimum wage
rates. In the present case, the Regional Wage
Board did not determine orfixthe minimum wage
rate.Itdidnotsetawagelevelnorarangetowhich
a wage adjustment or increase shall be added.
Instead, it granted an acrosstheboard wage
increaseofP15.00toallEesintheregion.Indoing
so,theRegionalWageBoardexceededitsauthority
by extending the coverage of the Wage Order to
wage earners receiving more than the prevailing
minimumwagerate,withoutadenominatedsalary
ceiling.TheWageOrdergrantedadditionalbenefits
notcontemplatedbyR.A.No.6727.(MBTCvNWPC
Commission,G.R.No.144322,Feb.6,2007)
A:No.TheEesshouldnotrefundthewageincrease
that they received under the invalidated Wage
Order.Beingingoodfaith,theemployeesneednot
refund the benefits they received. Since they
received the wage increase in good faith, in the
honest belief that they are entitled to such wage
increaseandwithoutanyknowledgethattherewas
no legal basis for the same, they need not refund
the wage increase that they already received.
(MBTCvNWPCCommission,G.R.NO.144322,Feb.
6,2007)
3.RESTDAY
a.Righttoweeklyrestday,Preferemceofthe
employee,whenworkonrestdayauthorized
Q:Whatistherighttoweeklyrestday(WRD)?
A: Every employer shall give his employees a rest
period of not less than 24 consecutive hours after
every6consecutivenormalworkdays.(Sec.3,Rule
III,BookIII,IRR)
Q:WhatisthescopeofWRD?
A:Itshallapplytoallemployerswhetheroperating
forprofitornot,includingpublicutilitiesoperated
byprivatepersons.(Sec.1,RuleIII,BookIII,IRR)
Q:WhodeterminestheWRD?
A:GR:ErshalldetermineandscheduletheWRDof
hisEe.
XPNs:
1. CBA
2. RulesandregulationsastheSLEprovides
3. Preference of employee (Ee) based on
religious grounds Ee shall make known
his preference in writing at least 7 DAYS
beforethedesiredeffectivityoftheinitial
rest day so preferred. (Sec. 4(1), Rule III,
BookIII,IRR)
A:Ershallmakeknownrestperiodbymeansof:
1. Writtennotice
2. Postedconspicuouslyintheworkplace
3. At least 1 week before it becomes
effective.(Sec.5,RuleIII,BookIII.IRR)
37
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
XPN:
1. Urgent work to be performed on the
machinery, equipment or installation, to
avoid serious loss which the Er would
otherwisesuffer;
2. Nature of work requires continuous
operations for 7 days in a week or more
and stoppage of the work may result in
irreparableinjuryorlosstotheEr;
3. Abnormalpressureofworkduetospecial
circumstances, where the Er cannot be
ordinarily expected to resort to other
measures;
4. Actualorimpendingemergencies(serious
accident,fire,flood,typhoon,earthquake,
etc.)
5. Prevent loss or damage to perishable
goods;
6. Analogous or similar circumstances as
determinedbytheSLE;
7. Work is necessary to avail of favorable
weather or environmental conditions
where performance or quality of work is
dependentthereon.
Q.WhatistherulewhenanEevolunteerstowork
onhisrestdayunderothercircumstances?
A:Heshallexpressitinwritingsubjecttoadditional
compensation.(Sec.6[2],RuleIII,BookIII,IRR)
Q:Whatispremiumpay?
Q:CantheErandEeagreeontherateofpremium
payotherthanthatprovidedbylaw?
A:
RATESOFADDITIONAL
COMPENSATION
INSTANCES
38
Workonascheduled
restday
Workhasnoregular
workdaysandrestdays
(Ifperformedon
SundaysandHolidays)
WorkonaSunday
(IfEesscheduledrest
day)
Workperformedonany
SpecialHoliday
Workperformedona
SpecialHolidayand
samedayisthe
scheduledrestday
Workperformedona
SpecialWorkingHoliday
+30%PremiumPay(PP)
of100%regularwage
(RW).(Sec.7,RuleIII,Book
III,IRR)
+30%PPof100%RW.
(Sec.7,RuleIII,BookIII,
IRR
+30%PPof100%RW.
(Sec.7,RuleIII,BookIII,
IRR)
1st8hrs:+30%PPof
100%RW
Excessof8hrs:+30%of
hourlyrateonsaiddate.
(M.C.No.10,Seriesof
2004)
1st8hrs:+50%PPof
100%regularwage
Excessof8hrs:+30%of
hourlyrateonsaiddate.
(M.C.No.10,Seriesof
2004)
Eeisonlyentitledtohis
basicrate.NoPPis
required.
Reason:Workperformed
isconsideredworkon
ordinaryworkingdays.
(Sec.7,RuleIII,BookIII,
IRR)
Note:HolidayworkprovidedunderArt.93pertainsto
specialholidaysorspecialdays.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
tolaw,morals,goodcustoms,publicorderorpublic
policy for an Er and Ee to enter into a contract
where the Ees compensation that is agreed upon
alreadyincludesalltheamountsheistoreceivefor
OT work and for work on weekly rest days and
holidaysandfornightdifferentialpayforlatenight
work.(1996BarQuestion)
4.HOLIDAYS
a.RighttoHolidayPay
holidays.
REGULARHOLIDAYS
NewYearsDay
MaundyThursday
GoodFriday
EidlFitr
ArawngKagitingan
LaborDay
IndependenceDay
A:
1. NationalSpecialPublicHoliday
GR:Nonworkingdays
XPN:Otherwisedeclaredbythe
President
DATE
November1
December31
August21
December24
February25
e.g.Maniladay(in
Manilaonly)
Q:Whatareregularholidays(RH)?
A: They are compensable whether worked or
unworked subject to certain conditions. They are
also called legal holidays. The following are
(Presidential
DATE
January1
April21
April22
MovableDate
April9
May1
June12
Aug.29(lastMondayof
August)
Nov.30
December25
Dec.30
NationalHeroesDay
Q:Whatisholidaypay(HP)?
NATIONALSPECIALDAYS
AllSaintsDay
LastDayoftheYear
NinoyAquinoDay
Otherdaysdeclaredbylaw
1. SpecialNonworking
days
2. SpecialPublicHolidays
3. SpecialNational
Holiday
4. SpecialHoliday(forall
schools)
a. EdsaRevolution
Anniversary
LOCALSPECIALDAYS
Thosedeclaredby:
1. Lawor
2. Ordinance
considered regular
ProclamationNo.18)
BonifacioDay
ChristmasDay
RizalDay
Q:WhatareMuslimHolidays(MH)?
A: The MHs, except Eidl Fitr, are observed in
specified Muslim areas. All private corporations,
offices, agencies and entities or establishments
operating within the designated Muslim provinces
andcitiesarerequiredtoobserveMH.
Q: When shall Eidl Fitr and/or Eidl Adha be
declaredanationalholiday?
A:Theproclamationdeclaringanationalholidayfor
the observance of Eidl Fitr and/or Eidl Adha shall
beissued:
1.
AftertheapproximatedateoftheIslamic
holiday has been determined in
accordancewiththe:
a. IslamicCalendar(Hijra)or
b. LunarCalendaror
c. Uponastronomicalcalculations
d. Whicheverispossibleorconvenient
2. The Office of Muslim Affairs shall inform
the Office of the President on which day
the holiday shall fall. (Sec.2, Proc. No.
1841)
Q: Can a Christian employee (Ee) working within
theMuslimareabecompelledtoworkduringMH?
A: No. Christians working within the Muslim areas
may not report for work during MH. Not only
Muslim but also Christian Ee in the designated
provinces and cities are entitled to HP on the MH.
(SMCv.CA,G.R.146775,Jan.30,2002)
39
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:DistinguishRHfromSD.
A:
REGULARHOLIDAY
SPECIALHOLIDAY
IfUnworked
Regularpay
(subject
to
certain
NoPay
conditions for daily paid
Ees)
Ifworked
+ 30% premium pay of
2xregularpay(200%)
100%regularwage
Othermatters
Setbylaw
Setbyproclamation
Limited to those provided
Notexclusive
underArt.94,LC
Q:WhoareentitledtoHP?
A:GR:Allemployees(Ees)areentitled.(Sec.1,Rule
IV,BookIII,IRR)
XPNS:
1. Govt Ees and any of its political
subdivisions, including GOCCs (with
originalcharter)
2. Retail and service establishments
regularlyemployinglessthan10workers
3. Domestic helpers and persons in the
personalserviceofanother
4. Ee engaged on task or contract basis or
purelycommissionbasis
5. MembersoftheFamilyoftheErwhoare
dependentonhimforsupport
6. Managerial Ee and other member of the
managerialstaff
7. FieldpersonnelandotherEewhosetime
andperformanceareunsupervisedbythe
Er
40
8.
Eepaidfixedamountforperformingwork
irrespective of the time consumed in the
performance thereof. (Sec. 1, Rule IV,
BookIII,IRR)
Q:Whatareretailestablishments?
A: They are engaged in the sale of goods to end
usersforpersonalorhouseholduse.(e.g.Grocery)
Q:Whatareserviceestablishments?
A: They are engaged in the sale of services to
individualsfortheirownorhouseholduse.(e.g.TV
repairshop)
Q:Isanexerciseofprofessionretailorservice?
A:Itisneitherretailnorservice.
Q:MayanErrequireanEetoworkonRH?
Q:WhataretheratesofcompensationforRHon
EesregularworkdayandRHonEesrestday?
A:
FORMULASTOCOMPUTEWAGESON
REGULARHOLIDAYS(RH)
(M.C.No.10,Seriesof2004)
RHonEesregular
RHonEesrestday
workday
Ifunworked
100%
100%
e.g600(200%ofRW)
e.g.300(RW)
X0.3
+300
180
600=TotalWage(TW)
180+600=780(TW)
Ifworked(OT)(excessof8hrs)
230%
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q: Distinguish between monthly paid and daily
paidEes.
A:
MonthlyPaidEes
One who is paid his wage or
salary for everyday of the
month, including rest days,
Sundays, regular or special
days, although he does not
regularlyworkonthesedays.
DailyPaidEes
One who is paid his
wage or salary only
on those days he
actually
worked,
except in cases of
regular or special
days, although he
does not regularly
workonthesedays.
(3)HolidayPayofTeachers,Pieceworkers,
seafarers,seasonalworkers
Q:WhataretheHPsofcertainemployees?
A:
EMPLOYEES
Private
school
teachers (Faculty
members
of
colleges
and
universities)
Eepaidby:
1. resultsor
2. output
(Piece
work
payment)
Q:Discusstheconceptofabsences.
SeasonalWorkers
A:
ABSENCES
LOAwithpayontheday
LOAwithoutpay onthe
immediatleypreceding
dayimmediately
RH.
precedingaRH.
GR: An Ee may not be
paid the required HP
if he has not worked
onsuchRH.
XPN: Where the day
immediately
GR: All covered Ees are
preceding
the
entitledtoHP.
holidayisa:
1. Nonworking day
(NWD)
in
the
establishmentor
2. The scheduled rest
day(RD)oftheEe.
(2)InCaseofTemporaryCessationofWork
Q:Whatistheeffectincasethereisatemporary
or periodic shutdown and temporary cessation of
work?
A:
1.
2.
TEMPORARYORPERIODICSHUTDOWNand
TEMPORARYCESSATIONOFWORK
(Sec.7,RuleIV,BookIII,IRR)
Instances
Rule:
Yearlyinventoryor
RH falling within the
When the repair or period
shall
be
Workershavingno
regularworkdays
Seafarers
RULE
RH
during
semestral
vacations
NotentitledtoHP
2. RH
during
Christmas
vacation
ShallbepaidHP
HP shall not be less than his
average daily earnings for the
last 7 actual work days
precedingtheRH.
Provided: HP shall not be less
than the statutory minimum
wagerate.
MaynotbepaidtherequiredHP
duringoffseasonwheretheyare
notatwork.
1.
ShallbeentitledtoHP
ShallbeentitledtoHP
A:
1. If during regular holiday No. Art. 94 of
LC is silent with respect to faculty members
paidbythehourwhobecauseoftheirteaching
contracts are obliged to work and consent to
be paid only for work actually done (except
whenanemergencyorafortuitouseventora
national need calls for the declaration of
special holidays). RH specified as such by law
areknowntobothschoolandfacultymembers
as "no class days" certainly the latter do not
expect payment for said unworked days, and
this was clearly in their minds when they
enteredintotheteachingcontracts.(JoseRizal
Collegev.NLRC,G.R.No.65482,Dec.1,1987)
2. IfduringspecialpublicholidaysYes.The
law and the IRR governing HP are silent as to
payment on Special Public Holidays. It is
readily apparent that the declared purpose of
the HP which is the prevention of diminution
of the monthly income of the Ees on account
41
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Present
LOAw/pay
MAUNDY
THURSDAY&ARAW
NGKAGITINGAN
unworked
unworked
LOAw/pay
worked
WED
42
Authorized
absence
worked
Same
Workedanddayis
RestDay
300%
(atleast)
390%
(+30%of
each3
100%)
Q:IsdoubleHPapplicableatpresent?
Q:WhatistheconceptofsuccessiveRH?
A:
WED
Worked
LOA
w/pay
LOAw/o
pay
LOAw/o
pay
MAUNDY
THURS
RH
GOOD
FRIDAY
RH
ENTITLED
TOHP
Yes.Both
RH
RH
Yes.Both
RH
RH
No.Both
Worked
RH
Yes.Onlyto
HPon
Friday
st
A:Onthedayimmediatelyprecedingthe1 RH,he
mustbe:
1. Present(worked),or
2. On LOA with pay. (Sec. 10, Rule IV, Book
III,IRR)
Q:Whatiftheconditionsarenotmet?
A:Hemustworkonthe1stRHtobeentitledtoHP
onthe2ndRH.(Sec.10,RuleIV,BookIII,IRR)
5.LEAVES
a.ServiceIncentiveLeavePay
Q:Whatisserviceincentiveleave(SIL)?
A: It is 5 days leave with pay for every employee
who has rendered at least 1 yr of service. It is
commutabletoitsmoneyequivalentifnotusedor
exhaustedattheendofyear.
Q:Whatdoyoumeanbyatleast1yearofservice?
RATE
200%
200%
300%
(atleast)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
practice or policy, or that provided in the
employment contract is less than 12 months, in
which case said period shall be considered as one
year.(Sec.3,RuleV,BookIII,IRR)
theSILmaybeonaproratabasis.(No.VI(c),DOLE
HandbookonWorkersStatutoryMonetaryBenefit)
Q: Are parttime workers entitled to the full
benefitoftheyearly5daySIL?
Q:WhoareentitledtoSIL?
A: GR: Applies to every Ee who has rendered at
least1yearofservice.(Art.95[a])
XPNS:
1. Government Ees and any of its political
subdivisionsincludingGOCCs
2. Thosealreadyenjoyingthebenefit
3. Domestic helpers and persons in the
personalservicesofanother
4. Thosealreadyenjoyingvacationleavewith
payofatleast5days
5. ManagerialEes
6. Field personnel and other Ees whose
performanceisunsupervisedbytheEr
7. Employed in establishments regularly
employinglessthan10workers
8. Exemptestablishments
9. Engaged on task or contract basis, purely
commissionbasis,orthosewhoarepaidin
a fixed amount of performing work
irrespective of the time consumed in the
performancethereof.(Art.95[b])
A:Yes.Art.95ofLaborCodespeaksofthenumber
ofmonthsinayearforentitlementtosaidbenefit.
(Bureau of Working Conditions Advisory Opinion to
Phil.IntegratedExporters,Inc.)
Q: Are piecerate workers entitled to the full
benefitoftheyearly5daySIL?
A:Itdepends.
1.
Yes.Provided:
a. Theyareworkinginsidethepremises
oftheemployer(Er)and
b. Under the direct supervision of the
Er.
2. No.Provided:
a. They are working outside the
premisesoftheEr
b. Hours spent in the performance of
work cannot be ascertained with
reasonablecertainty
c. The are not under the direct
supervisionoftheEr
A:No.Thedifferencebetweentheminimumwage
andtheactualsalaryreceivedbytheEescannotbe
deemedastheir13thmonthpayandSILpayassuch
difference is not equivalent to or of the same
import as the said benefits contemplated by law.
(JPL Marketing Promotions v. CA, G.R. No. 151966,
July8,2005.)
Q: Explain the entitlement of terminated Ees to
SIL.
A:
1.
2.
43
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
b.MaternityLeave
Q:Whatismaternityleavebenefit?
A:Acoveredfemaleemployee(Ee)isentitledtoa
daily maternity benefit equivalent to 100% of her
presentbasicsalary,allowancesandotherbenefits
orthecashequivalentofsuchbenefitsfor60days
or78daysincaseofcaesariandelivery.
Q: What are the requirements in order that
maternitybenefitsmaybeclaimed?
A:
1.
2.
Q:Whataretheconditions?
A:
1.
2.
3.
ThepaymentshallbeadvancedbytheEr
in 2 equal installments within 30 days
from the filing of the maternity leave
application
Incaseofcaesariandelivery,theEeshall
bepaidthedailymaternitybenefitfor78
days
4.
5.
6.
7.
44
c.PaternityLeave
Q:Whatistheconceptofpaternityleavebenefits?
Notifyhisemployer(Er)ofthepregnancy
ofhislegitimatespouseand
Theexpecteddateofsuchdelivery.
2.
A:ThemaleEeis;
1. Legallymarriedto,andiscohabitingwith
thewomanwhodeliversthebaby
2. Eeofprivateorpublicsector;
3. Onlyforthefirst4deliveriesoflegitimate
spousewithwhomheiscohabiting;and
4. Notify his Er of the pregnancy of his
legitimate spouse and the expected date
ofsuchdelivery
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A:
No. Jemuel is not entitled to paternity
leavebecausethefactsofthecaseonlyshowthat
heisonlycohabitingwith Paula.Thelawexpressly
provides that the male must be legally married to
the woman with whom he is cohabiting as a
condition for entitlement of paternity leave. Even
assumingthatJemuelislegallymarriedtoPaula,he
cannotavailalsoofthepaternityleavebecausethe
law limits the deliveries only to four which include
childbirth or miscarriage. Based on the facts, it is
alreadythefifthdeliveryofthewoman.
d.ParentalLeave
Q:Whatisparentalleave?
A:Leavebenefitsgrantedtoasoloparenttoenable
him/her to perform parental duties and
responsibilities where physical presence is
required.
A:
1.Heorshemustfallamongthosereferredtoas
soloparent
2. Must have the actual and physical custody of
thechildorchildren
3. Must have at least rendered service of one
yeartohisorheremployer
4.Heorshemustremainasoloparent
1.Awomanwhogivesbirthasaresultofrape
and other crimes against chastity even
withoutafinalconvictionoftheoffender,
provided, That the mother keeps and
raisesthechild;
2. Parent left solo or alone with the
responsibilityofparenthooddueto:
a.Deathofspouse;
b. Detention or service of sentence of
spouseforacriminalconvictionforat
least1yr;
c. Physical and/or mental incapacity of
spouse
d.Legalseparationordefactoseparation
fromspouseforatleast1yraslongas
e.Leavesforvictimsofviolenceagainstwomen
Q:Whatistheleaveforvictimsofviolenceagainst
women or otherwise known as battered woman
leave?
6.SERVICECHARGES
a.CoverageandExclusion
Q:Whatareservicecharges(SC)?
COVEREDEes
MANAGEMENT
85%
15%
Equally
distributed
1.
2.
45
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
XPN:
1. GovernmentEes
2. Householdhelpers
3. Eespaidpurelyoncommissionbasis
4. Eesalreadyreceiving13thmonthpay
Q:WhoarecoveredEes?
XPN:ManagerialEes.(Sec.2,RuleVI,BookIII,IRR)
b.Distribution
Q:Whenistheshareofemployeedistributedand
paidtothem?
A: Not less than once every 2 weeks or twice a
monthatintervalsnotexceeding16days.
c.Integration
Q: What happens if the Service Charge is
abolished?
A:TheshareofthecoveredEesshallbeconsidered
integrated in their wages on the basis of the
average monthly share of eachEes for thepast 12
monthsimmediatelyprecedingtheabolition.
Note:Servicechargesformpartoftheawardinillegal
dismissalcases.
7.13thMONTHPAYANDOTHERBONUSES
a.Coverage,Exclusion/exemptionsfromcoverage
Q:Whatis13thmonthpayoritsequivalent?
Q:Is13thMonthPaylegallydemandable?
A: Yes. It is a statutory obligation, granted to
covered Ees, hence, demandable as a matter of
right.(Sec1,P.D.851)
b.Natureof13thMonthPay
Q: In what form is the 13th month pay paid or
given?
A:Itisgivenintheformof:
1.
2.
3.
4.
Q:WhoarecoveredbyP.D.851?
A:GR: All rankandfile Ees regardless of the
amount of basic salary that they receive in a
month,iftheiremployers(Er)arenototherwise
exemptedfrompayingthe13thmonthpay.Such
th
Ees are entitled to the 13 month pay
regardless of said designation of employment
status,andirrespectiveofthemethodbywhich
theirwagesarepaid.
46
ChristmasBonus
MidyearBonus
ProfitSharingScheme
Other Cash bonuses amounting to not
lessthan1/12ofitsbasicsalary
Note:Itmustalwaysbeintheformofalegaltender.
Q:Whatarenotpropersubstitutesfor13thMonth
pay?
A:
1.
Freerice
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
2.
3.
4.
Electricity
Cashandstockdividends
COLA(Sec.3)
2.
3.
4.
(1)IstheCompany'sactiontenable?
(2) With respect to the payment of the 13th
month pay after the SMC ruling, what
arrangement, if any, must the Company make in
order to exclude from the 13thmonth pay all
earnings and remunerations other than the basic
pay?
5.
6.
7.
XPN:
1. DistressedErs:
a. Currentlyincurringsubstantiallosses
or
b. In the case of nonprofit institutions
and organizations, where their
income, whether from donations,
contributions, grants and other
earnings from any source, has
consistently declined by more than
40% of their normal income for the
last2years,subjecttotheprovision
ofSec.7ofP.D.851;
Itsequivalentshallinclude:
a. Christmasbonus
b. Midyearbonus
c. Profitsharing payments
and
d. Other
cash
bonuses
amountingtonotlessthan
1/12th of the basic salary
but
Itshallnotinclude:
a. cashandstockdividends,
b. COLA
c. all
other
allowances
regularly enjoyed by the
Ee, as well as non
monetarybenefits.
Q:WhataretheoptionsofcoveredErs?
A:
1.
2.
47
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Howareclaimsadjudicated?
A:Nonpaymentofthe13thmonthpayprovidedby
P.D. 851 and the rules of NLRC shall be treated as
moneyclaimscases.
Q: Are the following Ees entitled to 13th month
pay?
a.
b.
c.
d.
A:
1.
Eeswhoarepaidbyresults
EeswithmultipleErs
Privateschoolteachers
ResignedorseparatedEes
Eepaidbyresultsentitledto13thmonth
pay.
2.
3.
4.
ThosewithMultipleErsGovernmentEes
workingparttimeinaprivateenterprise,
including private educational institutions,
as well as Ees working in 2 or more
private firms, whether full or part time
th
basis, are entitled to the required 13
month pay from all their private Ers
regardless of their total earnings from
eachoralltheirErs.
ResignedorSeparatedEesIfresignedor
separated from work before the time of
th
payment of 13 month pay, entitled to
monetary benefit in proportion to the
length of time he started working during
the calendar year up to the time of
resignation or termination of service.
th
(Prorated13 monthpay)
th
Q:Whendoesprorationof13 MonthPayapply?
48
th
Q:Is14 MonthPaylegallydemandable?
th
A: No. The granting of 14 month pay is a
management prerogative and is not legally
demandable.Itisbasicallyabonusandisgratuitous
in nature. (Kamaya Point Hotel v. NLRC, G.R. No.
75289,Aug.31,1989)
c.Commissionsvisvis13thmonthpay
Q: What is commission in relation to 13th month
pay?
A:
1.
2.
Q:WhatisCBAinrelationto13thmonthpay?
A:TheabsenceofanexpressprovisionintheCBA
obligating the employer to pay the members of a
union thirteenth month pay is immaterial.
Notwithstanding therefore the absence of any
contractualagreement,thepaymentofathirteenth
monthpaybeingastatutorygrant,compliancewith
the same is mandatory and is deemed incorporate
intheCBA.
8.WOMENWORKERS
a.Discrimination(Art.135.LC);ProhibitedActs(Art.
137.LC)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q:WhataretheunlawfulactsagainstwomenEe?
A:
1.
2.
3.
4.
5.
6.
7.
49
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:WhatistheBFOQrule?
A:TheremustbeafindingofanyBFOQtojustifyan
Ers no spouse rule. There must be a compelling
business necessity for which no alternative exist
otherthanthediscriminatingpractice.
c.ClassificationofCertainWomenWorkers(Art.
138,LC)
Q:WhoarecoveredunderthisTitle?
A: Any women who is permitted or suffered to
work:
2.
Q:WhatistheimportanceoftheBFOQRule?
A:
1. To ensure that the Ee can effectively
performhiswork
2. Sothatthenospouserulewillnotimpose
anydangertobusiness.
IsthepolicyofGlaxovalidandreasonablesoasto
constitute the act of Tecson as willful
disobedience?
50
1.
2.
3.
4.
Withorwithoutcompensation
In any night club, cocktail lounge,
massage clinic, bar or similar
establishment
Undertheeffectivecontrolorsupervision
oftheErforasubstantialperiodoftime
Shall be considered as an Ee of such
establishment for purposes of labor and
sociallegislation.
d.AntiSexualHarrasmentAct
RA7877
A:TheStateshall:
1. Valuethedignityofeveryindividual
2. Enhance the development of it human
resources
3. Guarantee full respect for human rights
and
4. Uphold the dignity of workers, Ee,
applicants for employment, students or
those undergoing training, instruction or
education.(Sec.2)
Q:Whomaybeheldliableforsexualharassment?
1. Ee
2. Manager
3. Supervisor
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
4.
5.
6.
7.
Agentofthe(Er)
Teacher,instructor,professor
Coach,trainer,or
Any other person who, having authority,
influence or moral ascendancy over
anotherinaworkortrainingoreducation
environment:
a. Demands
b. Requestsor
c. Requires
any sexual favor from the other,
regardless of whether the demand,
request or requirement for
submissionisacceptedbytheobject
ofR.A.7877.(Sec.3)
Q:Howissexualharassmentcommitted?
A:Generally,apersonliabledemands,requests,or
otherwiserequiresanysexualfavorfromtheother,
regardless of whether the demand, request or
requirement for submission is accepted by the
latter.
Q: Under the Sexual Harassment Act, does the
definition of sexual harassment require a
categoricaldemandorrequestforsexualfavor?
A: No. It is true that the provision calls for a
demand, request or requirement of a sexual
favor. But it is not necessary that the demand,
request or requirement of a sexual favor be
articulated in a categorical manner. It may be
discerned, with equal certitude, from the acts of
theoffender.
Likewise, it is not essential that the demand,
requestorrequirementbemadeasaconditionfor
continued employment or for promotion to a
higher position. It is enough that the respondents
acts result in creating an intimidating, hostile or
offensiveenvironmentfortheemployee.(Domingo
v.Rayala,G.R.No.155831,Feb.18,2008)
Q:Whenissexualharassmentcommitted?
A:Specifically:
1. In a workrelated or employment
environment:
a. The sexual favor is made as a
condition in the hiring or in the
employment, reemployment or
continued employment of said
individual, or in granting said
individual favorable compensation,
terms, conditions, promotions, or
privileges;ortherefusaltograntthe
sexual favor results in limiting,
2. Inaneducationortrainingenvironment:
a. Against one who is under the care,
custody or supervision of the
offender;
b. Against one whose education,
training, apprenticeship or tutorship
isentrustedtotheoffender;
c. Sexual favor is made a condition to
the giving of a passing grade, or the
granting of honors and scholarships,
or the payment of a stipend,
allowance or other benefits,
privileges,orconsiderations;or
d. Sexual advances result in an
intimidating, hostile or offensive
environmentforthestudent,trainee
orapprentice.
Q:WhatarethedutiesoftheErorheadofoffice
in a workrelated, education or training
environment?
A:
1.
2.
Towardsthisend,theErorheadofofficeshall:
Note:Administrativesanctionsshallnotbe
abartoprosecutioninthepropercourtsfor
unlawfulactsofsexualharassment.
The said rules and regulations issued shall
include,amongothers,guidelinesonproper
decorum in the workplace and educational
ortraininginstitutions.
51
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
3.
1.
The Er or head of office, educational or
training institution is informed of such
actsbytheoffendedparty;and
2.
No immediate action is taken thereon.
(Sec.5)
A: Yes.NothingunderR.A.7877shallprecludethe
victimofwork,educationortrainingrelatedsexual
harassment from instituting a separate and
independent action for damages and other
affirmativerelief.(Sec.6)
A:Anactofsexualharassmentmaygiverisetocivil,
criminal and administrative liability on the part of
theoffender,eachproceedingindependentlyofthe
others.
Q:Whendoestheactionprescribe?
A:Anyactionshallprescribein3years.
52
hostileorunfriendlytotheapplicant'schancesfora
job if she turns down the invitation. [Sec. 3(a)(3),
R.A. No. 7877, AntiSexual Harassment Act]. (2000
BarQuestion)
Q: In the course of an interview, another female
applicant inquired from the same Personnel
Manager if she had the physical attributes
required for the position she applied for. The
Personnel Manager replied: "You will be more
attractive if you will wear micromini dresses
without the undergarments that ladies normally
wear." Did the Personnel Manager, by the above
reply, commit an act of sexual harassment?
Reason.
A:Yes.Theremarkswouldresultinanoffensiveor
hostile environment for the Ee. Moreover, the
remarks did not give due regard to the applicants
feelingsanditisachauvinisticdisdainofherhonor,
justifying the finding of sexual harassment
(Villaramav.NLRC,G.R.No.106341,Sep.2,1994)
Q:PedritoMasculado,acollegegraduatefromthe
province,triedhisluckinthecityandlandedajob
asutility/maintenancemanatthewarehouseofa
bigshoppingmall.AfterworkingasacasualEefor
6 months, he signed a contract for probationary
employment for 6 months. Being wellbuilt and
physically attractive, his supervisor, Mr. Hercules
Barak,tookspecialinteresttobefriendhim.When
his probationary period was about to expire, he
was surprised when one afternoon after working
hours, Mr. Barak followed him to the mens
comfort room. After seeing that no one else was
around, Mr. Barak placed his arm over Pedritos
shoulderandsoftlysaid:Youhavegreatpotential
tobecomearegularEeandIthinkIcangiveyoua
favorablerecommendation.Canyoucomeoverto
my condo unit on Saturday evening so we can
have a little drink? Im alone, and Im sure you
want to stay longer with the company. Is Mr.
Barakliableforsexualharassmentcommittedina
workrelatedoremploymentenvironment?
A: Yes, the elements of sexual harassment are all
present. The act of Mr. Barak was committed in a
workplace. Mr. Barak, as supervisor of Pedrito
Masculado, has authority, influence and moral
ascendancyoverMasculado.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
9.MINORWORKERS
a.Regulationofworkinghoursofachild,
Employmentofthechildinpublicentertainment,
Prohibitionofemployingminorsincertain
undertakingsandincertainadvertisements
Q:Whatarethegeneralprohibitions?
A:GR:
1.
2.
XPN:
A. Below15yrs.Old
1. The child works directly under the
sole responsibility of his parents, or
guardians who employ members of
his family, subject to the following
conditions:
a. Employmentdoesnotendanger
the childs safety, health and
morals
b. Employment does not impair
thechildsnormaldevt
c. Erparent or legal guardian
provides the child with the
primary and/or secondary
education prescribed by the
Dept.ofEducation
2. The childs employment or
participationinpublicentertainment
or information through cinema,
theater, radio or television is
essentialprovided:
a. Employment
contract
is
concludedbythechildsparents
orlegalguardian,
b. With the express agreement of
thechildconcerned,ifpossible,
and
c. The approval of DOLE, the
following must be complied
with:
i. The employment does not
involve advertisement or
commercials
promoting
alcoholic
beverages,
intoxicating drinks, tobacco
and its byproducts or
exhibitingviolence
ii. there is a written contract
approvedbyDOLE
B.
C.
Q:WhatisthedutyoftheErbeforeengagingchild
intowork?
A:TheErshallfirstsecureaworkpermitfromthe
DOLE which shall ensure observance of the
requirements.(Sec.12,R.A.7160)
Q:Whatistheruleregardingtheissuanceofwork
certificates/ permits for children at least 15 but
below18yearsofage?
A:TheissuanceofaDOLECertificatetoyouthaged
15tobelow18yearsofageisnotrequiredbylaw.
No employer shall deny opportunity to any such
youthapplyingforemploymentmerelyonthebasis
oflackofworkpermitorcertificateofeligibilityfor
employment. Any young person aged 15 to below
18 years of age may present copy of this DOLE
advisorytoanyemployer,jobprovider,government
authority, or his/her representative when seeking
employmentoranytimeduringemployment.(DOLE
DepartmentAdvisoryNo.0108)
Q:Whatisanonhazardouswork?
A: It is any work or activity in which the Ee is not
exposedtoanyriskwhichconstitutesanimminent
dangertohissafetyandhealth.
Q:Whatarehazardousworkplaces?
A:
1. Nature of work exposes the workers to
dangerous
environmental
elements,
contaminantsorworkconditions
2. Workers are engaged in construction work,
logging, firefighting, mining, quarrying,
blasting, stevedoring, dock work, deepsea
fishing,andmechanizedfarming
3.Workersareengagedinthemanufactureor
handling of explosives and other pyrotechnic
products
4. Workers use or are exposed to heavy or
powerdriventools
53
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Violence
Alcoholicbeverages
Intoxicatingdrinks
Tobaccoanditsbyproducts
54
A:No,heshouldnotbeprohibitedfrombeinghired
andfromperformingasasinger.UnderArt.VIIISec.
12par.2ofR.A.7619asamendedbyR.A.7658,this
constitutesanexceptiontothegeneralprohibition
againsttheemploymentofchildrenbelow15years
of age, provided that the following requirements
arestrictlycompliedwith:
1. TheErshallensuretheprotection,health
safetyandmoralsofthechild
2. TheErshallinstitutemeasurestoprevent
the childs exploitation or discrimination
taking into account the system and level
of remuneration, and the duration and
arrangementofworkingtime;and
3. The Er shall formulate and implement,
subjecttotheapprovalandsupervisionof
competent authorities, a continuing
program for training and skill acquisition
ofthechild.Moreover,thechildmustbe
directly under the sole responsibility of
his parents or guardian and his
employment should not in any way
interferewithhisschooling.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A: Yes, he should be prohibited from working as a
dealer in casino, because Art. 140 of the LC
prohibits the employment of persons below 18
years of age in an undertaking which is hazardous
ordeleteriousinnatureidentifiedintheguidelines
issuedbytheSLE.Workingasadealerinacasinois
classifiedashazardousunderD.O.No.04Seriesof
1999 as it exposes children to physical,
psychologicalorsexualabuses.(2006BarQuestion)
b.ActAgainstChildLabor(RA9231)andChildAbuse
Law(RA7610)
Q:Whatischildlabor?
Q:Whoisaworkingchild?
A:Anychildengagedasfollows:
1. Whenthechildisbelow18yearsofagein
a work or economic activity that is not
childlabor;or
2. Whenthechildisbelow15yearsofage:
a. In work where he/she is directly
under the responsibility of his/her
parents or legal guardianand where
only members of the childs family
areemployed;or
b. In public entertainment or
information
Q:WhenmaytheStateinterveneinbehalfofthe
child?
A:
1. The parent, guardian, teacher or person
havingcareorcustodyofthechildfailsor
is unable to protect the child against
abuse,exploitationanddiscrimination;or
2. When such acts are committed against
the child by the said parent, guardian,
teacher or person having care and
custodyoverthechild
Q:Whatisthelimitationonthehoursofworkofa
workingchild?
A:Ifthechildis:
1. Below15yearsofagenotmorethan20
hoursaweekandnotmorethan4hours
aday
2.
Q:Whataretheworstformsoflabor?
A:
1.
2.
3.
4.
5.
A:
1. Offendedparty
2. Parentsorguardians
3. Ascendants or collateral relatives within
rd
the3 degreeofconsanguinity
4. Officer,socialworkerorrepresentativeof
alicensedchildcaringinstitution
5. OfficerorsocialworkerofDSWD
6. Barangay chairman of the place where
the violation occurred, where the child is
residingoremployed
7. Atleast3concerned,responsiblecitizens
wheretheviolationoccurred
A:TheFamilyCourtsshallhaveoriginaljurisdiction
over all cases involving offenses punishable under
thisAct
55
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
5.
10.EMPLOYMENTOFHOUSEHELPERS
a.Definition
Q:Whatisdomesticorhouseholdservice?
A:
1. ServicesintheErshome
2. Usuallynecessaryordesirable
3. For the maintenance and employment
thereof
4. Includes ministering to the personal
comfortandconvenienceofthemembers
oftheErshousehold
5. Includingservicesoffamilydrivers.
Q:Whoisahousehelper?
A: A househelper is synonymous to domestic
servant
1.Anyperson,maleorfemale;
2.WhorendersservicesinandabouttheErs
homeand;
3. ServicesareusuallynecessaryorDesirable
for the maintenance and enjoyment
thereof,and
4. Ministers exclusively to the personal
comfortandenjoymentofErsfamily
Note:Thechildrenandrelativesofahousehelperwho
live under the Ers roof and who share the
accommodationsprovidedforthehousehelperbythe
Ershallnotbedeemedashousehelpersiftheyarenot
otherwise engaged as such and are not required to
perform any substantial household work. (Sec 3, Rule
XII,BookIII,IRR)
Thedefinitionofahousehelpercannotbeinterpreted
to include househelp or laundry women working in
staffhouses of a company. (APEX Mining CO., Inc., v.
NLRC,G.R.No.94951,April22,1991)
b.Benefitsaccordedhousehelpers
Q:Whataretherightsofhousehelpers?
A:
1.
2.
3.
4.
56
Originalcontractofdomesticserviceshall
notlastformorethan2yearsbutitmay
berenewedbytheparties.(Art.142)
Entitled to minimum wage in addition to
lodging, food, and medical attendance.
(Art.144)
Employmentcontractshouldbereviewed
every 3 years with the end view of
improving the terms and conditions of
employment.(Art.143)
SSS benefits for those who are receiving
atleastP1,000permonth.(Art.143)
Nonassignment to a work in a
commercial, industrial or agricultural
enterprise at a wage or salary rate lower
thanthatprovidedforagriculturalornon
agriculturalworkers.(Art.145)
6. Ees under 18 years of age shall be given
opportunity for at least elementary
education.Thecostofeducationshallbe
part of the HHs compensation, unless
otherwisestipulated.(Art146)
7. Should be treated in a just and humane
manner.(Art.147)
8. Not to be treated with physical violence
(Art.147)
9. Suitable and sanitary living headquarters
as well as adequate food and medical
attendance.(Art.148)
10. Terminationofemploymentshouldbe
a. upon expiration of term of
employment,or
b. basedonjustcause(Art.149)
11. Indemnity for unjust termination of
service
12. Employmentcertificationastonatureand
duration of service and efficiency and
conductofhousehelper.
Q:Whatistheminimumwageforhousehelpers?
A:
1.MetoManilaP800/month
2. Other Chartered Cities or First Class
MunicipalitiesP650/month
3.InotherMunicipalitiesP550/month
Q:IsthereanOTPayforhousehelpers?
A: No. The LC is silent on the grant of OT pay, HP,
Premium Pay and SIL to those engaged in the
domesticorhouseholdservice.MoreoverArt.82of
LC expressly excludes domestic helpers from its
coverage. (Ultra Villa Food Haus v. Geniston, G.R.
No.120473,June23,1999)
Q: Erlinda worked as a cook, preparing the lunch
and merienda of the Ees of Remington Industrial
Sales Corp. She worked at the premises of the
company. When Erlinda filed an illegal dismissal
case,Mr.Tan,themanagingdirectorofRemington
Corp.claimedthatErlindawasadomestichelper,
andnotaregularEeofRemingtonCorp.Mr.Tan
argued that it is only when the househelper or
domestic servant is assigned to certain aspects of
the business of the Er that such househelper or
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
d.ReliefsforUnjustTermination
Q:NBChasaresthouseandrecreationalfacilityin
thehighlandsofTagaytayCityfortheuseofitstop
executives and corporate clients. The resthouse
staff includes a caretaker, two cooks and a
laundrywoman. All of them are reported to the
SSSasdomesticorhouseholdEesoftheresthouse
and recreational facility and not of NBC. Can NBC
legally consider the caretaker, cooks and
laundrywoman as domestic Ees of the resthouse
andnotofNBC?
Q:Whataretherulesforindemnity?
A:
1. If the period for household service is
fixed, neither the Er nor the househelper
may terminate the contract before the
expiration of the term except for just
cause.
2.Ifthehousehelperisunjustlydismissed,he
or she shall be paid the compensation
already earned plus that for the 15 days
bywayofindemnity.
3. If the househelper leaves without
justifiable reason, he or she shall forfeit
any unpaid salary due him or her not
exceeding15days.
11.EMPLOYMENTOFHOMEWORKERS
a.Defintion
Q:Whoarehomeworkers?
A:Theyarethosewhoperforminorabouthisown
home any processing or fabrication of goods or
materials, in whole or in part, which have been
furnished directly or indirectly, by an Er and sold
thereaftertothelatter.
Q:WhoistheErofHomeworker?
A:Includesanyperson,naturalorartificialwho,for
his account or benefit, or on behalf of any person
residing outside the country, directly or indirectly,
or through an Ee, agent contractor, subcontractor
oranyotherperson:
1.
2.
57
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
b.Rightsandbenefitsaccordedhomeworkers
Q:WhatisthedutyoftheErincasehecontracts
withanothertheperformanceofhiswork?
Q:Distinguishhousehelpersfromhomeworkers.
Explosives,fireworksandsimilararticles;
Drugsandpoisons;and
Other articles, the processing of which
requires exposure to toxic substances.
(Sec.13,RuleXIV,BookIII,IRR)
c.Conditionsfordeductionfromhomeworkers
earnings
XPN:Unlesstheff.conditionsaremet:
1. TheHWisclearlyshowntoberesponsible
forthelossordamage
2. TheEeisgivenreasonableopportunityto
showcausewhydeductionsshouldnotbe
made;
3. Theamountofsuchdeductionisfairand
reasonable and shall not exceed the
actuallossordamages;and
58
A:
HOUSEHELPERS
HOMEWORKERS
Performs in or about his
ownhomeanyprocessing
or fabrication of goods or
materials, in whole or in
part, which have been
furnished directly or
indirectly, by an Er and
sold thereafter to the
latter.
a.Apprentices
Q:Whoisanapprentice?
A: Any worker who is covered by a written
apprenticeship agreement with an individual
employer or any of the entities recognized under
theLC.
Q:Whatisapprenticeship?
A: It is practical training on the job supplemented
byrelatedtheoreticalinstruction.
Q:Whatisanapprenticeableoccupation?
A: That which requires more than 3 months of
practicaltrainingwiththeoreticalinstruction
Q:Whatisonthejobtraining(OJT)?
A: It is practical work experience through actual
participation in productive activities given to or
acquiredbyanapprentice.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
Q:Whatarehighlytechnicalindustries?
Q:Whatistheemploymentstatusofapprentices?
Q:Whatarerelatedtheoreticalinstructions?
Note:PriorapprovalbyTESDA(formerlyDOLE)ofthe
proposed apprenticeship program is a condition sine
quanon.Otherwise,apprenticebecomesaregularEe.
(Nitto Enterprises v. NLRC, G.R. No. 114337, Sep. 29,
1995).
A:Mustnotexceed6months:
Q:Whatarethequalificationsofanapprentice?
Q:Whatistheperiodofapprenticeship?
1.
2.
A:
1.
Atleast15yearsofage
Note:Thosebelow18yearsofageshallnot
workinhazardousoccupations
2.
3.
4.
5.
Physicallyfitfortheoccupation
Possessvocationalaptitudeandcapacity
Possess:
a. Theabilitytocomprehend,and
b. Followoralandwritteninstructions
The
company
must
have
an
apprenticeshipprogramdulyapprovedby
theDOLE.
Q:Whenisanoccupationdeemedhazardous?
A:HeisdeemedaregularEe.Hecannotbehiredasa
probationary Ee since the apprenticeship is deemed
theprobationaryperiod.
Q:Whatisthewagerateofanapprentice?
A: Start at not less than 75% of the statutory
minimum wage for the 1st 6 months (except OJT);
thereafter, shall be paid in full minimum wage,
includingthefullCOLA.
Note: GR: Apprenticeship programs shall be primarily
voluntary
A:
1.
2.
3.
4.
Q:Whomayemployapprentices?
A:
1. Only employers in highly technical
industriesand
2. Only in apprenticeable occupations
approvedbySLE
2months/400hours:Tradesoroccupations
whichnormally require 1 yearormorefor
proficiency
1 month/200 hours: Occupations and jobs
whichrequiremorethan3monthsbutless
than1yearforproficiency.(Sec.19,RuleVI,
BookII,IRR)
XPN:Compulsoryapprenticeship:
1. National security or economic
developmentsodemand,thePresident
mayrequirecompulsorytraining
2. Services of foreign technicians are
utilized by private companies in
apprenticeabletrades.
ConformtotherulesissuedbySLE.
The period of apprenticeship shall not
exceed6months.
Apprenticeship agreements providing for
wage rates below the legal minimum
wage, which in no case shall start below
75%oftheapplicablemin.wage,maybe
entered into only in accordance with
59
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
4.
Q:Whosignstheapprenticeshipagreement?
Theemployerorhisagent,or
An authorized representative of any of
therecognizedorganizations,associations
orgroups,and
Theapprentice.
3.
Q:Whowillsigniftheapprenticeisaminor?
A:Anapprenticeshipagreementwithaminorshall
besignedinhisbehalfby:
1.
2.
Q: May apprentices
compensation?
A:Required:
be
hired
without
1.
2.
3.
4.
Byschool
Bythetrainingprogramcurriculum
ForGraduation
Forboardexaminations
Q:Whataretherulesonworkingscholars?
A:ThereisnoErEerelationshipbetweenstudents
on one hand, and schools, where there is written
agreement between them under which the former
agree to work for the latter in exchange for the
privilegetostudyfreeofcharge.Thestudentisnot
consideredanEe.(Sec.14,RuleIX,BookIII,IRR)
Q: Padilla entered into a written agreement with
Gomburza College to work for the latter in
exchange for the privilege of studying in said
institution.Hisworkwasconfinedtokeepingclean
the lavatory facilities of the school. One school
day, he got into a fist fight with a classmate,
Monteverde, as a result of which the latter
sustained a fractured arm. Victor filed a civil case
for damages against him, impleading Gomburza
Collegeduetothelatter'sallegedliabilityashisEr.
Underthecircumstances,couldGomburzaCollege
beheldliablebyVictorMonteverdeasanPadillas
Er?
60
2.
Eitherpartymayterminateanagreement
aftertheprobationaryperiodbutonlyfor
avalidcause.
It may be initiated by either party upon
filing a complaint or upon DOLEs own
initiative.
Q:Whomayappealthedecisionoftheauthorized
agencyoftheDOLE?
A: It may be appealed by any aggrieved person to
theSLEwithin5daysfromreceiptofthedecision.
Note: The decision of the SLE shall be final and
executory.
Q:WhatisExhaustionofAdministrativeRemedies
(EAR)?
A: It is a condition precedent to the institution of
action.(Sec.32b,RuleVI,BookII,IRR)
Q: How is the principle of Exhaustion of
AdministrativeRemediesappliedincaseofbreach
ofapprenticeshipagreement?
A: No person shall institute any action for the
enforcement of any apprenticeship agreement or
damagesforbreachofanysuchagreement,unless
he has exhausted all available administrative
remedies.
Q: Who shall settle differences arising out of
apprenticeshipagreement?
A: The plant apprenticeship committee shall have
the initial responsibility for settling differences
arisingoutofapprenticeshipagreement.(Sec.32b,
RuleVI,BookII,IRR)
Q: What is the procedure for the termination of
apprenticeship?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
A:Thepartyterminatingshall:
1.
2.
3.
b.Learners
Q:Whoarelearners?
A:
1. They are persons hired as trainees in
semiskilled and other industrial
occupations
2. Whicharenonapprenticeableand
3. Which may be learned through practical
training on the job in a relatively short
periodoftime
4. Whichshallnotexceed3months
5. Whether or not such practical training is
supplementedbytheoreticalinstructions.
(Sec.1a,RuleVII,BookII,IRR)
Q:Whenmaylearnersbeemployed?
A:
1.
2.
3.
Whennoexperiencedworkerisavailable
It is necessary to prevent curtailment of
employmentopportunities;and
Employment does not create unfair
competition in terms of labor costs or
impairorlowerworkingstandards.
Q:DistinguishLearnershipfromApprenticeship.
A:
Learnership
Trainingonthejobinsemi
skilledandotherindustrial
occupationortradeswhich
arenonapprenticeable
andwhichmaybelearned
thrupracticaltrainingon
thejobinarelativelyshort
periodoftime.
3.
4.
Min:3months
Max:6months
Commitmenttoemploy
Withcommitmentto
employthelearnerasa
Nocommitmenttohire
regularEeifhedesires
uponcompletionof
learnership
Incaseofpreterminationofcontract
ConsideredaregularEeif
preterminationoccurs
Workernotconsidered
after2monthsoftraining
asregularemployee.
andthedismissalis
withoutfaultofthe
learner.
Coverage
Highlytechnical
Semiskilled/Industrial
industriesandonlyin
occupations
industrialoccupation
Thereisalistoflearnable
Nolist
tradesbyTESDA
Writtenagreement
RequireLearnership
RequiresApprenticeship
Agreement
Agreement
Max:3months
Thenamesandaddressesofthelearners;
The duration of the learnership period,
whichshallnotexceed3months;
The wages or salary rates of the learners
whichshallbeginatnotlessthan75%of
theapplicableminimumwage;and
A commitment to employ the learners if
theysodesire,asregularemployeesupon
completionofthelearnership.
Q:Whatisthequalificationofalearner?
A:Mustbeatleast15yearsofage.
Note: Those below 18 years of age shall not work in
hazardousoccupations.
Q:Whomayemploylearners?
Trainingintradeswhich
areapprenticeable,that
is,practicaltrainingon
thejobsupplemented
byrelatedtheoretical
instructionformore
than3months.
Durationoftraining
Q:Whatisalearnershipagreement?
Apprenticeship
Nature
61
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
13.HANDICAPPEDWORKERS(RA9277)
13.
a.Definition
Q:Whoarehandicappedworkers(HW)?
A:Thosewhoseearningcapacityisimpairedby:
1.
2.
3.
4.
5.
6.
Physicaldeficiency
Age
Injury
Disease
Mentaldeficiency
Illness
Q:Whatisthedurationoftheemploymentperiod
ofhandicappedworkers?
b.Rightsofdisabledworkers
Q: What are the rights and privileges of disabled
workers?
A:
1.
2.
3.
4.
5.
Equalopportunityforemployment
Sheltered employment (the govt shall
endeavourtoprovidethemworkifsuitable
employment for disabled persons cannot
befoundthroughopenemployment)
Apprenticeship
Vocationalrehabilitation(meanstodevelop
theskillsandpotentialsofdisabledworkers
and enable them to compete in the labor
market)
Vocationalguidanceandcounselling
c.Prohibitionsondiscriminationagainstdisabled
persons
A:Yes,iftheirhandicapisnotsuchastoeffectively
impede the performance of job operations in the
particular occupations for which they are hired.
(Art.81)
Q:Whencanhandicappedworkersbeemployed?
d.Incentivesforemployers
Q:Whomayemployhandicappedworkers?
A:
1.
2.
Q:Doesthemerefactthataworkerhasadisability,
makehimahandicappedworker?
A: No, because his disability may not impair his
efficiency or the quality of his work. If despite his
62
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
LABOR STANDARDS
the Department of Health as to his disability, skills
andqualifications
2. Private entities that improve or modify their
physical facilities in order to provide reasonable
accommodation for disabled persons shall also be
entitled to an additional deduction from their net
taxableincome,equivalenttofiftypercent(50%)of
the direct costs of the improvements or
modifications
Q:Distinguishhandicappedfromdisabled?
A:
Handicapped
Disabled
(DifferentlyAbled)
Earningcapacityis
impairedbyage,or
physicalormental
deficiencyorinjury.
Referstoallsufferingfrom
restrictionofdifferentabilities
asaresultofmental,physical
orsensoryimpairmentto
performanactivityinthe
mannerorwithinrange
considerednormalfora
humanbeing.
Coversonlyworkers.
Coversallactivitiesor
endeavors.
Basis:loss/impairment
ofearningcapacity.
Basis:rangeofactivitywhich
isnormalforahuman
being.
Lossduetoinjuryor
physicalormental
defectorage.
Restrictionduetoimpairment
ofmental/physical/sensory
defect.
Ifhired,entitledto75%
ofminimumwage.
Subjecttodefinite
periodsof
employment.
Ifqualified,entitledtoall
termsandconditionsas
qualifiedablebodiedperson.
Employableonlywhen
necessarytoprevent
curtailmentof
employment
opportunity.
Norestrictionson
employment.
Mustgetequalopportunity
andnounfaircompetition.
63
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
1.EMPLOYEREMPLOYEERELATIONSHIP
Q:Theemploymentcontractstipulatesthatthere
is no ErEe relationship between the parties. Is
thatvalid?
A: No. The existence of an ErEe relation is a
questionoflawandbeingsuch,itcannotbemade
the subject of agreement. (Tabas v. California
ManufacturingCo.,G.R.No.L80680,Jan.26,1989)
Q: Banco de Manila and the Ang Husay Janitorial
and Pest Control Agency entered into an
IndependentContractorAgreementwiththeusual
stipulations: specifically, the absence of ErEe
relationship, and the relief from liability clauses.
Can the bank, as a client, and the agency, as an
independent contractor, stipulate that no ErEe
relationship exists between the bank and the Ees
oftheAgencywhomaybeassignedtoworkinthe
Bank?Reason.
A:Yes,theycanstipulateprovidedtherelationship
isjobcontracting.Howeverthestipulationcannot
prevailoverthefactsandthelaws.Theexistenceof
ErEe relationship is determined by facts and law
and not by stipulation of the parties. (Insular Life
AssuranceCo..Ltd.v.NLRC,G.R.No.119930,March
12,1998)
Q:ASIAexecuteda1yearcontractwiththeBaron
Hotel(BARON)fortheformertoprovidethelatter
with 20 security guards to safeguard the persons
andbelongingsofhotelguests,amongothers.The
security guards filled up Baron application form
and submitted the executed forms directly to the
SecurityDepartmentofBaron.Thepayslipsofthe
security guards bore BARON's logo and showed
that Baron deducted therefrom the amounts for
SSS premiums, medicare contributions and
withholdingtaxes.Assignmentsofsecurityguards,
who should be on duty or on call, promotions,
64
IsthereanErEerelationshipbetweentheBARON,
ononehand,andtheASIAsecurityguards,onthe
otherhand?Explainbriefly.
A:Asageneralrule,thesecurityguardsofaprivate
security guard agency are the employees of the
latterandnotoftheestablishmentthathasentered
into a contract with the private security guard
agency for security services. But under the facts in
thequestion,BaronHotelappeartohavehiredthe
security guards, to have paid their wages, to have
the power to promote, suspend or dismiss the
security guards and the power of control over
them, namely, the security guards were under
ordersofBaronHotelasregardtheiremployment.
Because of the abovementioned circumstances,
BaronHotelistheErofthesecurityguards.
Q:AssumingthatASIAistheEr,istheactofASIA
in placing the security guards on "floating status"
lawful?Why?
A:Itislawfulforaprivatesecurityguardagencyto
place its security guard on a "floating status" if it
has no assignment to give to said security guards.
But if thesecurity guardsare placed on a "floating
status"formorethan6months,thesecurityguards
mayconsiderthemselvesashavingbeendismissed.
(1999BarQuestion)
Q:Lacsonwasoneofmorethan100Eeswhowere
terminated from employment due to the closure
ofLBMConstructionCorporation.LBMwasasister
company of Lastimoso Construction, Inc. and RL
Realty & Devt Corp. All 3 entities formed what
came to be known as the Lastimoso Group of
Companies. The 3 corporations were owned and
controlled by members of the Lastimoso family;
their incorporators and directors all belonged to
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
the Lastimoso family. The 3 corporations were
engaged in the same line of business, under one
management, and used the same equipment
including manpower services. Lacson and his co
Ees filed a complaint with the Labor Arbiter
againstLBM,RLRealtyandLastimosoConstruction
to hold them jointly and severally liable for
backwages and separation pay. Lastimoso
Construction, Inc. RL Realty & Development
Corporation interposed a Motion to Dismiss
contending that they are juridical entitles with
distinct and separate personalities from LBM
Construction Corporation and therefore, they
cannot be held jointly and severally liable for the
money claims of workers who are not their Ees.
Rule on the motion to dismiss. Should it be
grantedordenied?Why?
a.Fourfoldtest
Q:WhatfactorsdeterminetheexistenceofanEr
Eerelationship?
A:Thefourfoldtest:
1.
2.
3.
4.
Q:Whatiscontroltest?
A:Thepersonforwhomtheservicesareperformed
reserves a right to control not only the end to be
achievedbutalsothemeanstobeusedinreaching
suchend.
Note:However,incertaincasesthecontroltestisnot
sufficienttogiveacompletepictureoftherelationship
betweentheparties,owingtothecomplexityofsucha
relationshipwhereseveralpositionshavebeenheldby
theworker.Thebetterapproachistoadoptthetwo
tieredtest.(Franciscovs.NLRC,G.R.No.170087,Aug.
31,2006)
65
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
TheputativeErspowertocontroltheEe
with respect to the means and methods
bywhichtheworkistobeaccomplished;
and
The underlying economic realities of the
activityorrelationship.
Ismadetoundergoatrialperiod
DuringwhichtheErdetermineshisfitness
toqualifyforregularemployment,
3. Based on reasonable standards made
known to the Ee at the time of
engagement.(Sec6,RuleI,BookVI,IRR)
Note:TheservicesofanEewhohasbeenengaged
on probationary basis may be terminated only for
66
justcause,whenhefailstoqualifyasaregularEein
accordance with reasonable standards prescribed
bytheEr.
Q: Michelle Miclat was employed on a
probationary basis as marketing assistant by
ClarionPrintingHousebutduringheremployment
shewasnotinformedofthestandardsthatwould
qualify her as a regular employee (Ee). 30 days
after, Clarion informed Miclat that her
employment contract had been terminated
withoutanyreason.Miclatwasinformedthather
termination was part of Clarions costcutting
measures.IsMiclatconsideredasaregularEeand
henceentitledtoitsbenefits?
A:Yes.Probationaryemploymentshallbegoverned
by the following rules: (d) In all cases of
probationaryemployment,theErshallmakeknown
totheEethestandardsunderwhichhewillqualify
as a regular Ee at the time of his
engagement.Wherenostandardsaremadeknown
totheEeatthattime,heshallbedeemedaregular
Ee. In the case at bar, she was deemed to have
been hired from day one as a regular Ee. (Clarion
PrintingHouseInc.,vs.NLRC,G.R.No.148372,June
27,2005)
A:
1. Itisanemploymentforatrialperiod;
2. Itisatemporaryemploymentstatusprior
toregularemployment;
3. It arises through a contract with the
followingelements:
a. The employee (Ee) must learn and
workataparticulartypeofwork
b. Such work calls for certain
qualifications
c. Theprobationisfixed
d. The Er reserves the power to
terminateduringorattheendofthe
trialperiod
e. And if the Ee has learned the job to
the satisfaction of the Er, he
becomesaregularEe.
XPNs:
1. Covered by an apprenticeship or
learnership agreement stipulating a
differentperiod
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
2.
3.
4.
5.
Note:Periodofprobationshallbereckonedfromthe
datetheEeactuallystartedworking.(Sec.6[b],RuleI,
BookVI,IRR)
Afterthelapseoftheprobationaryperiod(6months),
Eebecomesregular.
ProbationaryEesmaybedismissedbeforeendofthe
probationaryperiod.
Q:Isdoubleorsuccessiveprobationallowed?
A: No. The evil sought to be prevented is to
discourage scheming employers from using the
system of double or successive probation to
circumvent the mandate of the law on
regularization and make it easier for them to
dismiss their employees. (Holiday Inn Manila v.
NLRC,G.R.No.109114,Sep.14,2003)
Q: Middleby Phils. Corp. hired Alcira as engg
support services supervisor on a probationary
basis for 6 months. Apparently unhappy with
Alciras performance, Middleby terminated his
services. Alcira contends that he was already a
regular employee (Ee) when he was terminated.
AccordingtoAlcirascomputation,sinceArt.13of
theCivilCodeprovidesthat1monthiscomposed
of 30 days, 6 months totaling 180 days, then his
th
180 daywouldfallonNov.16,96makinghima
regular Ee before his termination. Is the
contentionofthepetitionerinthecomputationof
6monthscorrect?
Q:Whatisthepurposeoftheperiod?
A: To afford the employer an opportunity to
observe the fitness of a probationary employee at
work.
Q: In what instances is a probationary employee
(Ee)deemedaregularEe?
A:
1.
67
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Just/authorizedcauses
WhenhefailstoqualifyasaregularEein
accordance with reasonable standards
made known by the employer (Er) to the
Eeatthetimeofhisengagement(ICMCv.
NLRC,G.R.No.72222,Jan.30,1989)
Note:WhileprobationaryEesdonotenjoypermanent
status, they are afforded the security of tenure
protection of the Constitution. Consequently, they
cannot be removed from their positions unless for
cause. Such constitutional protection, however, ends
upon the expiration of the period stated in their
probationarycontractofemployment.Thereafter,the
parties are free to renew the contract or not. (CSA v.
NLRC,G.R.No.87333,Sep.6,1991)
2.
3.
4.
Q:R.L. CruzwasemployedasgardenerbyManila
HotelonprobationstatuseffectiveSep.22,76.
The appointment signed by Cruz provided for a 6
monthprobationaryperiod.OnMar.20,77,ora
day before the expiration of the probationary
period, Cruzs was promoted to lead gardener
position. On the same day Cruz position was
abolished by Manila Hotel allegedly due to
economic reverses or business recession, and to
salvage the enterprise from imminent danger of
collapse.WasCruzillegallydismissed?
68
WhatmakesCruzdismissalhighlysuspiciousisthat
it took place at a time when he needs only but a
day to be eligible as a regular Ee. That he is
competentfindssupportinhisbeingpromotedtoa
lead gardener in so short span of less than 6
months. By terminating his employment or
abolishing his position with but only one day
remaining in his probationary appointment, the
hotel deprived Cruz of qualifying as a regular Ee
with its concomitant rights and privileges. (Manila
Hotel Corp. v. NLRC, G.R. No. L53453, Jan. 22,
1986)
Q:ColegioSanAgustin(CSA)hiredtheGelaJoseas
a grade school classroom teacher on a
probationary basis for SY 84 85. Her contract
wasrenewedforSYs8586and8687.OnMar.
24, 87, the CSA wrote theGela that "itwouldbe
in the best interest of the students and their
families that she seek employment in another
school or business concern for next school year".
Notwithstandingthesaidnotice,theCSAstillpaid
Gela her salary for April 15 to May 15, 1987. On
April 6, 87, Gela wrote the CSA and sought
reconsideration but she received no reply.
Thereafter, she filed a complaint for illegal
dismissal.WasGelaillegallydismissed?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
a complaint for illegal dismissal against their Er.
AsaLA,howwillyouresolvethecase?
A: AsaLAIwillresolvethecaseinfavorofthe 8
probationary Ees due to theff::
1.
2.
3.
4.
5.
d.Kindsofemployment
(1)Regularemployment
Q:Whatisregularemployment?
A:
1. An employment shall be deemed to be
regularwheretheEehasbeenengagedto
perform activities which are usually
necessary or desirable in the usual
businessortradeoftheEr,theprovisions
of written agreements to the contrary
notwithstanding and regardless of the
oralagreementsoftheparties.(Sec.5[a],
RuleI,BookVI,IRR)
Note:Regularizationisnotamanagementprerogative;
rather,itisthenatureofemploymentthatdetermines
it.Itisamandateofthelaw.(PALv.Pascua,G.R.No.
143258,Aug.15,2003)
(a)Reasonableconnectionrule
Note:Theconnectioncanbedeterminedby
considering the nature of the work
performedanditsrelationtotheschemeof
the particular business or trade in its
entirety. (Highway Copra Traders v. NLRC,
G.R.No.108889,July30,1998)
2.
Also,theperformanceofajobforatleast
a year is sufficient evidence of the jobs
necessity if not indispensability to the
business. This is the rule even if its
performance is not continuous and
merely intermittent. The employment is
considered regular, but only with respect
to such activity and while such activity
exists. (Universal Robina Corp. v.
Catapang, G.R. No. 164736, Oct. 14,
2005).
Q:Isthemodeofcompensationdeterminativeof
regularemployment?
A:No,whiletheEesmodeofcompensationwason
a per piece basis the status and nature of their
employment was that of regular Ees. (Labor
69
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:WhendoesArt.280notapply?
A:ItdoesnotapplyincaseofOFWs.
70
DaguishouldlikewisebeconsideredaregularEeby
the mere fact that he rendered service for the
Tanjangcos for more than one year, that is,
beginning 53 until 82, under Doa Aurora; and
then from 1982 up to June 8, 91 under the
daughter,foratotalof29and9yearsrespectively.
Owing to Dagui's length of service, he became a
regular Ee, by operation of law, one year after he
was employed in 53 and subsequently in 82.
(Aurora Land Projects Corp. v. NLRC, G.R. No.
114733,Jan.2,1997)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
or when there would be an unexpected shortage
of manpower in any of its work places or an
unusually high volume of work. The practice was
fortheworkerstowaiteverymorningoutsidethe
gates of the sales office of the company, if thus
hired,theworkerswouldthenbepaidtheirwages
at the end of the day. Should the workers be
consideredasregularemployees(Ees)ofCCBPI?
A:Yes,therepeatedrehiringoftheworkersandthe
continuing need for their services clearly attest to
the necessity or desirability of their services in the
regular conduct of the business or trade of the
company.Thefactthattheworkershaveagreedto
be employed on such basis and to forego the
protection given to them on their security of
tenure,demonstratenothingmorethantheserious
problem of impoverishment of so many of our
peopleandtheresultingunevennessbetweenlabor
and capital. (Magsalin & CocaCola v. N.O.W.M.,
G.R.No.148492,May9,2003)
(2)ProjectEmployment
Q:Whatisprojectemployment?
(a)Indicatorsofprojectemployment
c.
d.
71
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Theterminationofhisemploymentinthe
particularproject/undertakingisreported
to the Department of Labor and
Employment Regional Office having
jurisdiction over the workplace within 30
days following the date of his separation
from work, using the prescribed form on
employees
termination/dismissal/suspensions
f.
Q:Whataretherequisitesindeterminingwhether
anemployee(Ee)isaprojectEe?
A:
1. TheprojectEewasassignedtocarryouta
specificprojectorundertaking,and
2. The duration and scope of which were
specifiedatthetimetheEewasengaged
for that project. (Imbuido v. NLRC, G.R.
No.114734,Mar.31,2000)
3. The Ee must have been dismissed every
aftercompletionofhisprojectorphase
4. Report to the DOLE of Ees dismissal on
account of completion of contract (Policy
Inst.No.20;D.O.19[1997])
Q:Whatisaproject?
A:Yes,whenthefollowingconcur:
72
projects.Thesefactsarethebasisinconsideringthem
as regular Ees of the company. (Maraguinot v. NLRC,
G.R.No.120969,Jan.22,1998)
Members of a work pool from which a construction
companydrawsitsprojectEes,ifconsideredEesofthe
constructioncompanywhileintheworkpool,arenon
projectEesorEesforanindefiniteperiod.Iftheyare
employedinaparticularproject,thecompletionofthe
projectoranyphasethereofwillnotmeanseverance
of ErEe relationship. Unless the workers in the work
poolarefreetoleaveanytimeandoffertheirservices
to other Ers. (L.T. Datu & Co., Inc. v. NLRC, G.R. No.
113162,Feb.9,1996)
Q:Whatisthedaycertainrule?
A:Itstatesthataprojectemploymentthatendson
a certain date does not end on an exact date but
uponthecompletionoftheproject.
Q:AreprojectEesentitledtoseparationpay?
A: GR: Project Ees are not entitled to separation
pay if they are terminated as a result of the
completionproject.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
the reportorial reqt confirms that Puente was a
projectEe.
ThemererehiringofPuenteonaprojecttoproject
basisdidnotconferuponhimregularemployment
status.Thepracticewasdictatedbythepractical
consideration that experienced construction
workersaremorepreferred.Itdidnotchangehis
status as a project Ee. (Filipinas PreFabricated
Building Systems (FILSYSTEMS), Inc. v. Puente, G.R.
No.153832,Mar.18,2005)
(3)Seasonalemployment
Q:Whatisseasonalemployment?
A: Employment where the job, work or service to
be performed is seasonal in nature and the
employment is for the duration of the season.
(Sec.5[a],RuleI,BookVI,IRR)
An employment arrangement where an employee
(Ee) is engaged to work during a particular season
onanactivitythatisusuallynecessaryordesirable
intheusualbusinessortradeoftheemployer(Er).
Note:ForseasonalEes,theiremploymentlegallyends
upon completion of the project or the season. The
termination of their employment cannot and should
not constitute an illegal dismissal. (Mercado v. NLRC,
G.R.No.79869,Sept.5,1991)
Q:AreseasonalEesentitledtoseparationpay?
Q:Canseasonalemployees(Ees)beconsideredas
regularEes?
IftheEehasbeenperformingthejobforatleasta
year,eveniftheperformanceisnotcontinuousand
merely intermittent, the law deems repeated and
continuing need for its performance as sufficient
evidence of the necessity if not indispensability of
that activity to the business. Hence, the
employment is considered regular, but only with
respect to such activity and while such activity
exists. (Benares v. Pancho, G.R. No. 151827, April
29,2005)
A:No,thefactisthatbigricemillssuchastheone
ownedbythecompanycontinuetooperateanddo
businessthroughouttheyearevenifthereareonly
twoorthreeharvestseasonswithintheyear.Itisa
common practice among farmers and rice dealers
tostoretheirpalayandtohavethesamemilledas
the need arises. Thus, the milling operations are
not seasonal. Finally, considering the number of
years that they have worked, the lowest being 6
years,theworkershavelongattainedthestatusof
regular Ees as defined under Art. 280. (Tacloban
SagkahanRiceMillv.NLRC,G.R.No.73806,Mar.21,
1990)
(4)Casualemployment
Q:Whatiscasualemployment?
A:
1. It is an employment where the Ee is engaged in
an activity which is not usually necessary or
desirable in the usual business or trade of the Er,
provided: such employment is not project nor
seasonal(Art.281).
Note:Butdespitethedistinctionbetweenregular
and casual employment, every Ee shall be
entitled to the same rights and privileges, and
73
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.AnEeisengagedtoperformajob,workorservice
whichismerelyincidentaltothebusinessoftheEr,
andsuchjob,workorserviceisforadefiniteperiod
made known to the Ee at the time of engagement
(Sec.5[b],RuleI,BookVI,IRR)
Note:Ifhehasrenderedatleast1yearofservice,
whethersuchserviceiscontinuousorbroken,he
is considered as regular Ee with respect to the
activity in which he is employed and his
employment shall continue while such activity
exists.
ACasualEeisonlycasualfor1year,anditisthe
passage of time that gives him a regular status.
(KASAMMACCOv.CA,G.R.No.159828,April19,
2006)
74
A:
PROJECTWORKER
Used to designate
workers
in
the
construction industry,
hired to perform a
specificundertakingfor
a fixed period, co
terminuswithaproject
or phase thereof
determinedatthetime
of the engagement of
theEe
Tobeconsideredatrue
project worker, it is
required
that
a
termination report be
submitted to the
nearest
public
employment
office
uponthecompletionof
the
construciton
project. (Aurora Land
Projects Corp. v. NLRC,
G.R. No. 114733, Jan.
2,1997)
CASUALor
CONTRACTUAL
WORKER
There is no such
requirement for an
ordinary contractual
worker
(5)Fixedtermemployment;Requisitesforvalidity
Q:Whatisthenatureoftermemployment?
A: A contract of employment for a definite period
terminates by its own terms at the end of such
period. (Brent School v. Zamora, G.R. No. L48494,
Feb.5,1990)
Q:Whatisafixedtermemployment?
A: It is an employment where a fixed period of
employmentwasagreedupon:
1. Knowinglyandvoluntarilybytheparties,
2. Without any force, duress or improper
pressure being brought to bear upon the
employee(Ee)and
3. Absent any other circumstances vitiating
hisconsent,or
4. WhereitsatisfactorilyappearsthattheEr
andEedealtwitheachotheronmoreor
less equal terms with no moral
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
dominance whatever being exercised by
the former over the latter. (Brent School,
Inc. v. Zamora, G.R. No. 48494, Feb. 5,
1990)
Note:AfixedperiodEedoesnotbecomearegularEe
becausehisemploymentiscoterminuswithaspecific
periodoftime.
Q:DoestheReasonableConnectionRuleapplies
in fixed term employment for a fixed term
employee be eventually classified as regular
employee?
A:No.Petitionersweredismissedbyreasonofthe
expiration of their contracts of employment.
Petitioners'appointmentsasdean,deptheadsand
institutesecretarieswereforfixedtermsofdefinite
periods as shown by their respective contracts of
employment, which all expired on the same date,
May 31, 1988. The validity of employment for a
fixed period has been acknowledged and affirmed
bytheSC.(Blancaflorv.NLRC,G.R.No.101013,Feb.
2,1993)
e.Jobcontractingandlaboronlycontracting
Q:Whenistherejobcontracting?
A:Specifically,thereisjobcontractingwhere:
75
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Phils.,Inc.,G.R.No.179807,July31,2009,
J.CarpioMorales)
Q:Whenistherelaboronlycontracting?
Q:Whatarethefactorstoconsiderindetermining
whethercontractoriscarryingonanindependent
business?
2. Theworkersrecruitedandplacedby
suchpersonareperformingactivities
which are directly related to the
principal business of such employer.
(Baguio v. NLRC, G.R. No. 7900408,
Oct.4,1991)
A:
1.
2.
3.
4.
5.
6.
7.
8.
9.
A:Thefollowingconditionsmustbemet:
3. Theagreementbetweentheprincipaland
contractor or subcontractor assures the
contractual employees entitlement to all
labor and occupational safety and health
standards, free exercise of the right to
selforganization, security of tenure, and
socialwelfarebenefits.(Gallegov.BAYER
76
Natureandextentofwork
Skillrequired
Termanddurationoftherelationship
Right to assign the performance of
specifiedpiecesofwork
Controlandsupervisionofworker
Power of employer to hire, fire and pay
wages
Controlofthepremises
Duty to supply premises, tools,
appliances,materialsandlabor
Mode, manner and terms of payment.
(Vinoya v. NLRC, G.R. No. 126286, Feb 2,
2000)
Note:Individualswithspecialskills,expertiseortalent
enjoy the freedom to offer their services as
independentcontractors.Anindividuallikeanartistor
talent has a right to render his services without any
one controlling the means and methods by which he
performshisartorcraft.(Sonzavs.ABSCBN,G.R.No.
138051,June10,2004)
3. PrincipalAnyErwhoputsoutorfarmsouta
job, service, or work to a contractor or
subcontractor.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
A: They shall be entitled to all the rights and
privilegesduetoaregularEeasprovidedintheLC,
asamendedtoincludetheff:
1.
2.
3.
4.
Safeandhealthfulworkingconditions
ServiceIncentiveLeave,restdays,OTpay,
holiday pay, 13th month pay and
separationpay
Socialsecurityandwelfarebenefits;
Selforganization, CBA and peaceful
concertedactions
Securityoftenure(Sec.8,DO1802)
5.
A:
1. If prior to the expiration of the
employment contract between the
principal and the contractor or
subcontractor The right of CEe to
separation pay or other related benefits
shall be governed by the applicable laws
and jurisprudence on termination of
employment
Q:Whenistheprincipaldeemedtheemployerof
thecontractualemployee?
A:Where:
1. Thereislaboronlycontracting
2. The contracting arrangement falls within
theprohibitedacts
Q:MaytheErorindirectErrequirethecontractor
or subcontractor to furnish a bond equal to the
cost of labor under contract to answer for the
wages due to Ees in case the contractor or
subcontractorfailstopaythesame?
Q:Whatdoestherighttocontrolmean?
A: It refers to the right reserved to the person for
whom the services of the contractual workers are
performed, to determine not only the end to be
achieved, but also the manner and means to be
usedinreachingthatend.(D.O.1802)
Q:SMCandSunflowerCooperativeenteredintoa
1yr Contract of Services, to be renewed on a
month to month basis until terminated by either
party. Pursuant to the contract, Sunflower
engagedprivaterespondentstorenderservicesat
SMCs Bacolod Shrimp Processing Plant. The
contract was deemed renewed by the parties
everymonthafteritsexpirationonJan.1,94and
respondentscontinuedtoperformtheirtasksuntil
Sep.11,95.InJuly95,privaterespondentsfileda
complaintbeforetheNLRC,prayingtobedeclared
asregularEesofSMC,withclaimsforrecoveryof
all benefits and privileges enjoyed by SMC rank
and file Ees. Respondents subsequently filed an
AmendedComplainttoincludeillegaldismissalas
additionalcauseofactionfollowingSMCsclosure
of its Bacolod Shrimp Processing Plant on which
resulted in the termination of their services. SMC
filed a Motion for Leave to File Attached Third
rd
PartyComplainttoimpleadSunfloweras3 Party
Defendant. Are private respondents Ees of the
independent cooperative contractor (Sunflower)
oroftheSMC?
77
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
Note:TheEesofthecontractororsubcontractorshall
be paid in accordance with the provisions of the LC.
(Art.106)
Q:Whatislaboronlycontracting?
A:Itreferstoanarrangementwherethefollowing
conditionsconcur:
1.
2.
3.
Q:Whyislaboronlycontractingprohibited?
78
A:ItgivesrisetoconfusionastowhoistherealEr
of the workers and who is liable to their claims. It
alsodeprivesworkersoftheopportunitytobecome
regularEes.
Q: How do we determine if one is engaged in
labor/jobonlycontracting?
A:Thetesttodeterminewhetheroneisajob/labor
onlycontractingistolookintotheelementsofajob
contractor. If all the elements of a job contractor
arepresent,thenheisajobcontractor.Absentone
of the elements for a job contractor, then the
personisalaboronlycontractor.
Note: It is the opinion of Dean Antonio H. Abad, Jr.
thatthedecisivedeterminantinjobcontractingshould
not be the fact that the contracted workers are
performingactivitieswhicharedirectlyrelatedtothe
mainbusinessof theprincipal,but that the principal
has no right to control the conduct of the employees
astothemeansemployedtoachieveanend;notthe
character of the activities as being usually necessary
ordesirableintheusualbusinessoftheemployer.
It cannot be gainsaid that the activities of the
contractedworkersarealwaysnecessaryordesirable;
even that they are directly related to the main
businessoftheprincipal.Theprimordialconsideration
should be the control test. Hence, if the
arrangement passes the control test, it is job
contracting.Ifitfails,itislaboronlycontracting.
Q:Distinguishbetweenjobcontractingandlabor
onlycontracting
A:
JOBCONTRACTING
Liabilityislimited(shallbe
solidarily liable with Er
only when the Er fails to
comply with reqts as to
unpaid wages and other
laborstandardsviolations)
Permissible, subject only
tocertainconditions
The
contractor
has
substantial capital or
investment
LABORONLY
CONTRACTING
Liability extends to all
those provided under
theLaborStandardslaw
ProhibitedbyLaw
Has no substantial
capitalorinvestment
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
productionorthenumberofworkersandthetime
used in certain areas of work. All work activities
andscheduleswerefixedbythecompany.
1.IsArnoldajobcontractor?Explainbriefly
2.Whoisliablefortheclaimsoftheworkershired
byArnold?Explainbriefly.
A:
1.
2.
A:
1. Nonsubmissionofcontractsbetweenthe
principal and the contractor or
subcontractorwhenrequiredtodoso;
2. Nonsubmissionofannualreport;
3. Findings through arbitration that the
contractor or subcontractor has engaged
in laboronly contracting and other
prohibitedactivities;
4. Noncompliancewithlaborstandardsand
workingconditions.(Sec.16,D.O.1802)
2.TERMINATIONOFEMPLOYMENT
a.Substantivedueprocess
Q:WhatisSubstantivedueprocess?
A:SubstantiveDueProcessprovidesthegroundfor
disciplinaryaction,i.e.correctiveorretributive
(a)Justcauses
A:
1. Serious
misconduct
or
willful
disobediencebytheemployee(Ee)ofthe
lawful orders of his employer (Er) or
representative in connection with his
work
2. Gross and habitual neglect by the Ee of
hisduties
3. Fraud or willful breach by the Ee of the
trust reposed in him by his Er or duly
organizedrepresentative
4. Commission of a crime or offense by the
Ee against the person of his Er or any
immediate member of his family or his
dulyauthorizedrepresentative.
5. Othercausesanalogoustotheforegoing
Note:Theburdenofprovingthattheterminationwas
foravalidorauthorizedcauseshallrestontheEr.(Art.
277[b])
1.SeriousMisconduct
Q:Whatisseriousmisconduct?
Itmustbeseriousorofsuchagraveand
aggravatedcharacter;
Must relate to the performance of the
employees(Ee)duties;
Eehasbecomeunfittocontinueworking
for the employer. (Philippine Aeolus
Automotive United Corp. v. NLRC, G.R.
No.124617,April28,2000)
Q:Givesomeexamplesofseriousmisconduct.
A:
79
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Sexualharassment
Fightingwithinthecompanypremises
Uttering obscene, insulting or offensive
wordsagainstasuperior
Falsificationoftimerecords
Grossimmorality
A:2requisitesmustconcur:
1.
80
2.
Note: ThereisnolawthatcompelsanEetoaccepta
promotion for the reason that a promotion is in the
natureofagiftorreward,whichapersonhastheright
torefuse.TheexerciseoftheEeoftherighttorefusea
promotion cannot be considered in law as
insubordinationorwillfuldisobedience.(PT&TCorp.v.
CA,G.R.No.152057,Sep.29,2003)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
transportationmoneyorassuranceofavailabilityof
workinManila.(Escobinv.NLRC,G.R.No.118159.
April15,1998)
3.Negligence
Q: When is negligence a just cause for
termination?
A:Whenitisgrossandhabitual.
Q:WhenisthereGrossNegligence?
A:Grossnegligenceimpliesawantorabsenceofor
failure to exercise slight care of diligence of the
entire absence of care it evinces thoughtless
disregard of consequences without exerting any
effort to avoid them. However, such neglect must
not only be gross but habitual in character. (Judy
Phils.v.NLRC,G.R.No.111934,April29,1998)
Q:WhenisthereHabitualNeglectofduties?
A: Habitual Neglect implies repeated failure to
perform ones duties over a period of time,
depending upon the circumstance. (JGB and
Associatesv.NLRC,GRNo.10939,Mar.7,1996)
Q: Antiola, as assorter of baby infant dress as for
Judy Phils. erroneously assorted and packaged
2,680 dozens of infant wear. Antiola was
dismissed from employment for this infraction.
Does the single act of misassortment constitute
grossnegligence?
A:No.Suchneglectmustnotonlybegrossbutalso
habitual in character. Hence, the penalty of
dismissal is quite severe considering that Antiola
committed the infraction for the first time. (Judy
Phils.v.NLRC,G.R.No.111934.April29,1998)
Q: Does the failure in performance evaluations
amounttogrossandhabitualneglectofduties?
A: As a general concept poor performance is
equivalent to inefficiency and incompetence in the
performance of official duties. The fact that an
employees(Ees)performanceisfoundtobepoor
or unsatisfactory does not necessarily mean that
the Ee is grossly and habitually negligent of his
duties.Grossnegligenceimpliesawantorabsence
of or failure to exercise slight care of diligence or
theentireabsenceorcare.Heevincesathoughtless
disregard of consequences without exerting any
effort to avoid them. (Eastern Overseas
Employment Center Inc. v. Bea, G.R. 143023,
Nov.29,2005)
Q:Isinefficiencyajustcausefordismissal?
Habitualtardinessandabsenteeism
Abandonment:
a. Failuretoreportforworkorabsence
withoutjustifiablereason
b. Clear intention to sever ErEe
relationship manifested by some
overt acts. (Labor et. al v. NLRC, GR
No.110388,Sep.14,1995)
4.Abandonment
Q: What is abandonment as a just cause for
termination?
A:Itmeansthedeliberate,unjustifiedrefusalofan
employeetoresumehisemployment.
Q:Whataretherequirementsforavalidfindingof
abandonment?
81
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Howtoproveabandonment?
82
Itappliesonlytocasesinvolving:
a. Employees (Ees) occupying positions
of trust and confidence (confidential
and managerial Ees) to this class
belong managerial Ees, i.e., those
vested with the powers or
prerogatives
to
lay
down
managementpoliciesand/ortohire,
transfer, suspend, layoff, recall,
discharge, assign or discipline Ees or
effectively
recommend
such
managerialactions
b. Ees routinely charged with the care
and custody of the employers (Ers)
2.
3.
4.
5.
Q:Whataretheguidelinesforthedoctrineofloss
ofconfidencetoapply?
A:
1.
2.
3.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
4.
5.
Q:MabezaachambermaidatHotelSupremewas
terminated from employment because of her
refusal to sign an affidavit attesting to their
employers(Ers)compliancewithminimumwage
and other labor standards. Mabeza filed a
complaint for illegal dismissal against Hotel
Supreme. As a defense, Hotel Supreme claimed
that she abandoned her work and belatedly
claimed loss of confidence as the ground for the
dismissalofMabezabecauseshestolesomeofthe
properties of her Er. Is loss of confidence a valid
groundfordismissalofahotelchambermaid?
A: No. Loss of confidence as a just cause for
dismissalwasneverintendedtoprovideErswitha
blankcheckforterminatingtheirEes.Evidently,an
ordinarychambermaidwhohastosignoutforlinen
and other hotel property from the property
custodian each day and who has to account for
each and every towel or bed sheet utilized by the
hotel'sguestsattheendofhershiftwouldnotfall
underanyofthesetwoclassesofEesforwhichloss
ofconfidence,ifablysupportedbyevidence,would
normallyapply.(Mabezav.NLRC,G.R.No.118506,
April18,1997)
Q: Abelardo Abel was first hired by Philex Mining
Corp. in Jan. 88. He was later assigned to the
companys Legal Dept as a Contract Claims Asst.,
andheldthepositionfor5yrspriortohistransfer
totheMineEnggandDrawControlDeptwherein
he was appointed Unit Head. In 02, he was
implicated in an irregularity occurring in the
subsidence area of the companys mine site at
Benguet. His coworker Danilo, executed an
affidavit known as the Subsidence Area
Anomaly. The incidents in Lupegas affidavit
supposedly took place when Abel was still a
ContractClaimsAsst.atthecompanyslegaldept.
83
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
9.AnalogousCases
7.TotalityofInfractionsdoctrine
Q:Whatisthetotalityofinfractionsdoctrine?
A:Itisthetotality,notthecompartmentalizationof
company infractions that the Ee has committed,
which justifies the penalty of dismissal. (MERALCO
v.NLRC,G.R.No.114129,Oct.24,1996)
Note: Where the Ee has been found to have
repeatedly incurred several suspensions or warnings
on account of violations of company rules and
regulations, the law warrants their dismissal as it is
akin to habitual delinquency. (Villeno v. NLRC, G.R.
No.108153,Dec.26,1995)
6.
Q:Whatisthedoctrineofincompatibility?
A:Wheretheemployeehasdonesomethingthatis
contrary or incompatible with the faithful
performance of his duties, his employer has a just
cause for terminating his employment. (Manila
ChauffeursLeaguev.BachrachMotorCo.,G.R.No.
L47071,June17,1940)
(b).AuthorizedCauses
Q:Whataretheauthorizedcausesoftermination
bytheemployer(Er)?
A:
1.
A:Gravityoftheoffense
1. Positionoccupiedbytheemployee
2. Degreeofdamagetotheemployer
3. Previousinfractionsofthesameoffense
4. LengthofService
8.CommissionofaCrime
Q: Whatdo you meanby commission of a crime
or offense as a just cause for termination of an
Ee?
84
2.
Redundancy
(superfluity
in
the
performanceofaparticularwork)exists
where the services of an employee (Ee)
are in excess of what is reasonably
demanded by the actual reqts of the
enterprise.(WiltshireFileCo.,Inc.v.NLRC,
G.R.No.82249,Feb.7,1991)
Note:Theredundancyshouldnothavebeen
createdbytheEr.
3.
Reorganization
Note: AnErisnotprecludedfromadopting
a new policy conducive to a more
economicalandeffectivemanagement,and
thelawdoesnotrequirethattheErshould
be suffering financial losses before he can
terminate the services of the employee on
thegroundofredundancy(DOLEPhil.,Inc.v.
NLRC,G.R.No.L55413,July25,1983)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
4.
Note:Thephrasetopreventlossesmeans
that retrenchment or termination from the
service of some Ees is authorized to be
undertaken by the Er sometime before the
anticipated losses are actually sustained or
realized. Evidently, actual losses need not
setinpriortoretrenchment.(CajucomVIIv.
TP Phils Cement Corp., et al, G.R. No.
149090,Feb.11,2005)
5.
6.
Q:Whatareotherauthorizedcauses?
A:
1. TotalandpermanentdisabilityofEe
2. Validapplicationofunionsecurityclause
3. Expiration of period in term of
employment
4. Completion of project in project
employment
5. Failureinprobation
6. Relocationofbusinesstoadistantplace
7. Defianceofreturntoworkorder
8. CommissionofIllegalactsinstrike
9. Violationofcontractualagreement
10. Retirement
A:
1. Written Notice to DOLE 30 days prior to
theintendeddayoftermination.
2.
3.
Redundancy
Q:Whataretherequisitesofavalidredundancy?
A:
1. Written notice served on both the
employees (Ees) and the DOLE at least 1
monthpriortoseparationfromwork
2. Payment of separation pay equivalent to
at least 1 month pay or at least 1 month
payforeveryyearofservice,whicheveris
higher
3. Good faith in abolishing redundant
position
4. Fair and reasonable criteria in
ascertaining what positions are to be
declaredredundant:
a. Lesspreferredstatus,e.g.temporary
Ee
b. Efficiencyand
c. Seniority
Q:Ong,aSalesManagerofWiltshireFileCo.,Inc.,
was informed of the termination of his
employment due to redundancy upon returning
from a trip abroad. Ong maintains that there can
be no redundancy since he was the only person
occupyinghispositioninthecompany.
IsthereredundancyeventhoughOngwastheonly
oneoccupyinghisposition.
A: Redundancy in an employers (Ers) personnel
does not necessarily or even ordinarily refer to
duplication of work. The characterization ofOngs
services as no longer necessary or sustainable and
therefore properly terminable, was an exercise of
business judgment on the part of Wiltshire.
85
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
Thelossesexpectedshouldbesubstantial
and not merely de minimis in extent If
the loss purportedly sought to be
forestalled by retrenchment is clearly
shown to be insubstantial and
inconsequential in character, the bona
fide nature of the retrenchment would
appeartobeseriouslyinquestion.
Thesubstantiallossapprehendedmustbe
reasonablyimminentassuchimminence
can be perceived objectively and in good
faith by the employer (Er). There should
be a certain degree of urgency for the
retrenchment.
3.
Itmustbereasonablynecessaryandlikely
to prevent the expected losse The Er
should have taken other measures prior
or parallel to retrenchment to forestall
losses such as cutting other costs than
laborcosts.
4.
Theallegedlossesifalreadyrealized,and
the expected imminent losses sought to
be forestalled, must be proved by
sufficient and convincing evidence The
reason for requiring this quantum of
proof is readily apparent: any less
exacting standard of proof would render
too easy the abuse of this ground for
termination of services of employees.
(Lopez Sugar Corp. v. Federation of Free
Workers, G.R. No. 7570001, Aug. 30,
1990)
86
Retrenchmentisameansoflastresort.
A:
1. WrittennoticeservedonboththeEeand
the DOLE at least 1 month prior to the
intendeddateofretrenchment
2. Payment of separation pay equivalent to
at least one month pay or at least 1/2
month pay for every year of service,
whicheverishigher
3. Goodfaith
4. Proofofexpectedoractuallosses
5. The employer used fair and reasonable
criteria in ascertaining who would be
retained among the Ees, such as status,
efficiency, seniority, physical fitness, age,
and financial hardship of certain workers
(Asian Alcohol Corp. v. NLRC, G.R. No.
131108,Mar.25,1999).
Q:Whatisthelastinfirstout(LIFO)rule?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
companyfrom
closingshop.
In
determining these issues, management plays a
preeminentrole.Thecharacterizationofpositions
as redundant is an exercise of business judgment
on the part of the Er. It will be upheld as long
as it passes the test of arbitrariness. (2001 Bar
Question)
Q: What is the difference between redundancy
andretrenchment?
A: In redundancy, company has no financial
problems, unlike in retrenchment where the
companywillsufferfinanciallosses.
Q:PhilippineTuberculosisSociety,Inc.retrenched
116 Ees after incurring deficits amounting to 9.1
million pesos. Aside for retrenching some of its
Ees, the company also implemented cost cutting
measurestopreventsuchlossesforincreasingand
minimizing it. The NLRC ruled that the
retrenchmentwasnotvalidonthegroundthatthe
Societydidnottakeseniorityintoaccountintheir
selection. Was the retrenchment done by the
Society not valid for its failure to follow the
criterialaiddownbylaw?
A: No. The Society terminated the employment of
severalworkerswhohaveworkedwiththeSociety
forgreatnumberofyearswithoutconsiderationfor
the number of years of service and their seniority
indicates that they had been retained for such a
longtimebecauseofloyalandefficientservice.The
burdenofprovingthecontraryrestontheSociety.
(Phil. Tuberculosis Society, Inc. v. National Labor
Union,G.R.No.115414,Aug.25,1998)
Q: Due to mounting losses the former owners of
Asian Alcohol Corporation sold its stake in the
companytoPriorHoldings.Upontakingcontrolof
thecompanyandtopreventlosses,PriorHoldings
implementedareorganizationplanandothercost
saving measures and one of them is the
retrenchment of 117 employees (Ees) of which
somearemembersoftheunionandthemajority
held by nonunion members. Some retrenched
workers filed a complaint for illegal dismissal
alleging that the retrenchment was a subterfuge
forunionbustingactivities.
Was the retrenchment made by Asian Alcohol
validandjustified?
A: Yes. Even though the bulk of the losses were
sufferedundertheoldmanagementandcontinued
only under the new management ultimately the
newmanagementofPriorHoldingswillabsorbsuch
losses. The law gives the new management every
right to undertake measures to save the company
frombankruptcy.(AsianAlcoholCorp.v.NLRC,G.R.
No.131108,Mar.25,1999)
Closure
Q:Whataretherequisitesofavalidclosure?
A:
1.
2.
3.
4.
5.
A:Onlywhereclosureisnotduetoseriousbusiness
losses nor due to an act of govt. (North Davao
Mining Corp v. NLRC, G.R. No. 112546, Mar. 13,
1996;NFLv.NLRC,G.R.No.127718,Mar.2,2000)
A:No.Inordertomeetthepurpose,serviceofthe
writtennoticemustbemadeindividuallyuponeach
and every Ee of the company. However, the Court
held that where the dismissal is for an authorized
cause, noncompliance with statutory due process
shouldnotnullifythedismissal,orrenderitillegal,
orineffectual.Still,theemployershouldindemnify
the Ee, in the form of nominal damages, for the
violation of his right to statutory due process.
87
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
AreEesentitledtoseparationpay?
Q:RankandfileworkersofSIMEXfiledapetition
fordirectcertificationandaffiliatedwithUnionof
FilipinoWorkers(UFW).Subsequently,36workers
of the companys lumpia dept and 16 other
workersfromotherdeptswereeffectivelylocked
out when their working areas were cleaned out.
The workers through UFW filed a complaint for
unfairlaborpracticesagainstthecompany.SIMEX
then filed a notice of permanent shutdown/total
closure of all units of operation in the
establishment with the DOLE allegedly due to
businessreversesbroughtaboutbytheenormous
rejectionoftheirproductsforexporttotheUnited
States.
Wastheclosurewarrantedbytheallegedbusiness
reverses?
A: The closure of a business establishment is a
ground for the termination of the services of any
employee unless the closing is for the purpose of
circumventingtheprovisionsofthelaw.But,while
business reverses can be a just cause for
terminating employees, they must be sufficiently
proved.Inthiscase,theauditedfinancialstatement
ofSIMEXclearlyindicatesthattheyactuallyderived
earnings.Althoughtherejectionsmayhavereduced
theirearningstheywerenotsufferinglosses.There
is no question that an employer may reduce its
workforcetopreventlossesbutitmustbeserious,
actual and real otherwise this ground for
termination would be susceptible to abuse by
schemingemployerswhomightbemerelyfeigning
business losses or reverses in their business
ventures to ease out employees. (Union of Filipino
Workersv.NLRC,G.R.No.90519,Mar.23,1992)
Q: Carmelcraft Corporation closed it business
operations allegedly due to losses of P1, 603.88
aftertheCarmelcraftEesUnionfiledapetitionfor
certification election. Carmelcraft Union filed a
complaint for illegal lockout and ULP with
88
XPNs:
1. Where the transferee was found to be
merely an alter ego of the different
mergingfirms.(FilipinasPortServices,Inc.
v.NLRC,G.R.No.97237,Aug.16,1991)
2. Where the transferee voluntarily agrees
to do so. (Marina Port Services, Inc. v.
Iniego,G.R.No.77853,Jan.22,1990)
Q:MarikinaDairyIndustries,Inc.decidedtosellits
assets and close operations on the ground of
heavylosses.Theunionsallegedthatthefinancial
losses were imaginary and the dissolution was a
schememaliciouslydesignedtoevadeitslegaland
social obligations to its employees (Ees). The
unionswantthebuyersofthecorporationsassets
restrained to operate unless the members of the
unions were the ones hired to operate the plant
under the terms and conditions specified in the
collectivebargainingagreements.
Is the buyer of a companys assets required to
absorbtheEesoftheseller?
A:Thereisnolawrequiringthatthepurchaserofa
companys assets should absorb its Ees and the
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
most that can be donefor reasons of public policy
andsocialjusticewastodirectthatbuyersofsuch
assetstogivepreferencetothequalifiedseparated
Ees in the filling up of vacancies in the facilities of
the buyer. (MDII Supervisors & Confidential Ees
Assn(FFW)v.residentialAssistantonLegalAffairs,
G.R.Nos.L4542123,Sep.9,1977)
Q: What is the difference between closure and
retrenchment?
A:
CLOSURE
Is the reversal of
fortune of the Er
whereby there is a
complete cessation of
business operations to
preventfurtherfinancial
drain upon an Er who
cannotpayanymorehis
Ees since business has
alreadystopped.
DoesnotobligatetheEr
for the payment of
separation package if
there is closure of
business due to serious
losses.
RETRENCHMENT
Is the reduction of
personnel for the purpose
ofcuttingdownoncostsof
operations in terms of
salaries
and
wages
resorted to by an Er
because of losses in
operation of a business
occasionedbylackofwork
andconsiderablereduction
inthevolumeofbusiness.
As in the case of
retrenchment, however,
for the closure of a
business or a department
due to serious business
lossestoberegardedasan
authorized cause for
terminatingEes,itmustbe
proven that the losses
incurred are substantial
and actual or reasonably
imminent; that the same
increasedthroughaperiod
of time; and that the
condition of the company
is not likely to improve in
thenearfuture.
LC provides for the
payment of separation
package in case of
retrenchment to prevent
losses.
Disease
Q:Whenisdiseaseagroundfordismissal?
A:WheretheEesuffersfromadisease,and:
1. His continued employment is prohibited
by law or prejudicial to his health or to
the health of his coEes. (Sec.8, Rule I,
BookVI,IRR)
2.
Note:Thereqtforamedicalcertificationcannot
be dispensed with; otherwise, it would sanction
theunilateralandarbitrarydeterminationbythe
ErofthegravityorextentoftheEesillnessand
thusdefeatthepublicpolicyontheprotectionof
labor.(ManlyExpressvPayong,G.R.No.167462,
Oct.25,2005)
A:
1. Theemployer(Er)shallnot terminatehis
employmentunless:
a. There is a certification by a
competentpublichealthauthority
b. Thatthediseaseisofsuchnatureor
at such a stage that it cannot be
cured within a period of 6 months
evenwithpropermedicaltreatment.
Q:Isanemployeesufferingfromadiseaseentitled
toreinstatement?
A:Yes,itisonlywherethereisapriorcertification
fromacompetentpublicauthoritythatthedisease
89
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Closures or cessation
of operation not due
to serious
business
losses/financial
reverses
Equivalenttoatleast1month
pay or at least 1 month pay
for every year of service (if
duetoseverefinanciallosses,
noseparationpay
Disease
Equivalenttoatleast1month
pay or at least month pay
for every year of service,
whicheverishigher
Automation
Redundancy
Retrenchment
90
SEPARATIONPAY
Equivalenttoatleast1month
pay or at least 1 month pay
for every year of service,
whicheverishigher
Equivalenttoatleast1month
pay or at least 1 month pay
for every year of service,
whicheverishigher
Equivalentto1monthpayor
at least month pay for
everyyearorservice
Thereisnoseparationpaywhentheclosureisdueto
anactofthegovt.
A:
1. TogivetheEessometimetopreparefor
the eventual loss of their jobs and their
corresponding income, look for other
employment and ease the impact of the
lossoftheirjobs.
2. TogiveDOLEtheopportunitytoascertain
the verity of the alleged cause of
termination.(Phil.Telegraph&Telephone
Corp. v. NLRC, G.R. No. 147002, April 15,
2005)
Note:NoticetoboththeEesconcernedandtheDOLE
aremandatoryandmustbewrittenandgivenatleast
1 month beforethe intendeddate of retrenchment
and the fact that the Ees were already on temporary
layoff at the time notice should have been given to
them is not an excuse to forego the 1month written
notice. (Sebuguero v. NLRC, G.R. No.115394, Sep. 27,
1995)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
writtennotice,theEesareinformedofthespecific
date of the termination, at least a month prior to
thedateofeffectivity,togivethemsufficienttime
to make necessary arrangements. In this case,
notwithstanding the Ees knowledge of the
cancellationofthedistributorshipagreement,they
remained uncertain about the status of their
employment when DAP failed to formally inform
themabouttheredundancy.(DAPCorp.v.CA,G.R.
No.165811,Dec.14,2005)
1.
2.
b.Proceduraldueprocess
Note:Failuretocomplywiththereqtofthe
2 notices makes the dismissal illegal. The
procedure is mandatory. (Loadstar Shipping
Co.Inc.v.Mesano,G.R.No.138956,Aug.7,
2003)
Substantiveitmustbeforajustcause
Procedural there must be notice and
hearing
2.
3.
Note:Singlenoticeofterminationdoesnot
comply with the requirements of the law.
(Aldeguer & Co.,Inc. vs. Honeyline Tomboc,
G.R.No.147633,July28,2008)
Q:Whatisthepurposeofnoticeandhearing?
A:
b)
c)
91
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatisthedegreeofproof?
92
Gravityoftheoffense
PositionoccupiedbytheEe
Degreeofdamagetotheemployer(Er)
Previousinfractionsofthesameoffense
Lengthofservice(ALUTUCPv.NLRC,G.R.
No.120450,Feb.10,1999;PALv.PALEA,
G.R.No.L24626,June28,1974)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
A: No, In Agabon v. NLRC, G.R. No. 158693, Nov.
17,2004,itwasheldthatwhendismissalisforjust
or authorized cause but due process was not
observed,thedismissalshouldbeupheld.
1. Ifbasedonjustcause(Art.282)buttheEr
failedtocomplywiththenoticereqt,the
sanction to be imposed upon him should
be tempered because the dismissal
process was, in effect, initiated by an act
imputabletotheEe;and
2. If based on authorized causes (Art. 283)
buttheErfailedtocomplywiththenotice
reqt, the sanction should be stiffer
because the dismissal process was
initiated by Ers exercise of his
managementprerogative.
c.Reliefsforillegaldismissal
(1)Reinstatementaspect
Q:Whataretheremediesavailabletoanillegally
dismissedemployee(Ee)?
A:AnEewhoisunjustlydismissedfromworkshall
byentitledto:
1. Reinstatement without loss of seniority
rightsand
2. Full backwages. (Sec. 3, Rule I, Book VI,
IRR)
3. Separationpayinlieuofreinstatement,if
thelatterisnolongerfeasible
Q:Whatisreinstatement?
A:Itistherestorationoftheemployeetothestate
from which he has been unjustly removed or
separatedwithoutlossofseniorityrightsandother
privileges.
(a)Immediatelyexecutory:actualreinstatementand
payrollreinstatement
Q:Whataretheformsofreinstatement?
A:
1.
2.
Note:AnorderofreinstatementbytheLAisnotthe
same as actual reinstatement of a dismissed or
separated Ee. Thus, until the Er continuously fails to
actually implement the reinstatement aspect of the
decision of the LA, their obligation to the illegally
dismissedEe,insofarasaccruedbackwagesandother
benefitsareconcerned,continuestoaccumulate.Itis
only when the illegally dismissed Ee receives the
separation pay (in case of strained relations) that it
could be claimed with certainty that the ErEe
realtionship has formally ceased thereby precluding
thepossibilityofreinstatement.Inthemeantime,the
illegally dismissed Ees entitlement to backwages, 13th
month pay, and other benefits subsists. Until the
paymentofseparationpayiscarriedout,theErshould
notbeallowedtoremainunpunishedforthedelay,if
not outright refusal, to immediately execute the
reinstatementaspectoftheLAsdecision.
Further, the Er cannot refuse to reinstate the illegally
dismissed Ee by claiming that the latter had already
foundajobelsewhere.Minimumwageearnersareleft
with no choice after they are illegally dismissed from
their employment, but to seek new employment in
ordertoearnadecentliving.Surely,wecouldnotfault
them for their perseverance in looking for and
eventually securing new employment opportunities
instead of remaining idle and waiting the outcome of
the case. (TriadSecurity & AlliedServices, Inc. etal v.
Ortega,G.R.No.160871,Feb.6,2006).
Q:DistinguishArts.223from279oftheLC?
A:
Art.279
Presupposes that the
judgment has already
become
final
and
executory.
Consequently, there is
nothing left to be done
except the execution
thereof.
Art.223
Maybeavailedofassoon
as the labor arbiter
renders a judgment
declaring
that
the
dismissal of the Ee is
illegal and ordering said
reinstatement. It may be
availed of even pending
appeal
Q:PALdismissedGarcia,forviolatingPALsCode
of Discipline for allegedly sniffing shabu in PALs
Technical Center Toolroom Section. Garcia then
filed for illegal dismissal and damages where the
Labor Arbiter (LA) ordered PAL to immediately
reinstate Garcia. On appeal, the NLRC reversed
the decision and dismissed Garcias complaint for
lackofmerit.Garciasmotionforreconsideration
wasdeniedbytheNLRC.Itaffirmedthevalidityof
the writ and the notice issued by the LA but
suspended and referred the action to the
93
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
94
2.
3.
4.
Inlieuofreinstatementinillegaldismissal
cases,whereEeisorderedreinstatedbut
reinstatementisnotfeasible.
As Ers statutory obligation in cases of
legal termination due to authorized
causesunderArt.283and284oftheLC.
Asfinancialassistance,asanactofsocial
justiceandevenincaseoflegaldismissal
underArt.282oftheLC.
AsemploymentbenefitgrantedinCBAor
companypolicy.(Poquiz,2005)
Reinstatementcannotbeeffectedinview
ofthelongpassageoftimeorbecauseof
therealitiesofthesituation.
2. It would be inimical to the employers
interest.Whenreinstatementisnolonger
feasible.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
3.
4.
5.
6.
7.
Whenitwillnotservethebestinterestof
thepartiesinvolved.
Company will be prejudiced by
reinstatement.
Whenitwillnotserveaprudentpurpose.
When there is resultant strained relation
(applies to both confidential and
managerialemployees(Ees)only).
When the position has been abolished
(applies to both managerial, supervisory
andrankandfileEes).
Note:Insuchcases,itwouldbemoreprudenttoorder
payment of separation pay instead of reinstatement.
(Quijano v. Mercury Drug Corporation, G.R. No.
126561,July8,1998)
A:No.Whendriversvoluntarilychosenottoreturn
to work anymore, they must be considered as
having resigned from their employment. The
common denominator of those instances where
paymentofseparationpayiswarrantedisthatthe
employeewasdismissedbytheemployer.(Capiliv.
NLRC,G.R.117378,Mar.26,1997)
asthatprovidedunderArt.283oftheLCincaseof
retrenchmenttopreventlosses?
(a)Strainedrelationrule
Q:Whatisthedoctrineofstrainedrelations?
A:WhentheErcannolongertrusttheEeandvice
versa, or there were imputations of bad faith to
each other, reinstatement could not effectively
serve as a remedy. This doctrine applies only to
positionswhichrequiretrustandconfidence(Globe
Mackayv.NLRC,G.R.No.82511,March3,1992).
Note: Under the circumstances where the
employment relationship has become so strained to
preclude a harmonious working relationship and that
all hopes at reconciliation are naught after
reinstatement, it would be more beneficial to accord
theEebackwagesandseparationpay.
A:
1. The Ee concerned occupies a position
whereheenjoysthetrustandconfidence
ofhisEr;and
2. That it is likely that if reinstated, an
atmosphereofantipathyandantagonism
may be generated as to adversely affect
the efficiency and productivity of the Ee
concerned. (Globe Mackay Cable & Wire
95
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:No.Thedoctrineshouldbeappliedonacaseto
casebasis,basedoneachcasespeculiarconditions
and not universally. Otherwise, reinstatement can
never be possible simply because some hostility is
invariably engendered between the parties as a
result of litigation. That is human nature. (Anscor
Transportv.NLRC,G.R.No.85894,Sept.28,1990)
A:
Art.279,LC(Local
Workers)
Reinstatement
Fullbackwagesfromthe
timeofhiscompensation
waswithheldfromhim
uptothetimeofhis
actualreinstatement.
Sec.7,RA10022
(MigrantWorkers)
FullReimbursementofhis
placementfeewith
interestof12%per
annum.
(3)Backwages
(a)Componentsoftheamountofbackwages
Q:Whatarebackwages?
A:Theycoverthefollowing:
Q:Whatisthebasisofawardingbackwagestoan
illegallydismissedemployee(Ee)?
1.
2.
3.
Transportation
and
emergency
allowances
Vacation or service incentive leave and
sickleave
th
13 monthpay
Q:Whatdoesthetermfullbackwagesmean?
96
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
A:TheLaborCodeasamendedbyR.A.6715points
to "full backwages" as meaning exactly that, i.e.,
without deducting from backwages the earnings
derived elsewhere by the concerned Ee during the
periodofhisillegaldismissal.(Buenviajev.CA,G.R.
147806,Nov.12,2002)
The underlying reason for this ruling is that the
employee, while litigating the legality (illegality) of
his dismissal, must still earn a living to support
himselfandfamily,whilefullbackwageshavetobe
paidbytheemployeraspartofthepricehehasto
Q:Whatarethecircumstancesthatpreventaward
ofbackwages?
A:
1. Dismissalforcause
2. Death, physical or mental incapacity of
theemployee
3. Businessreverses
4. Detentioninprison
(4)ConstructiveDismissal
Q:Whatisconstructivedismissal?
A:Aninvoluntaryresignationresortedtowhen:
1.
2.
3.
continued
employment
becomes
impossible,unreasonable,orunlikely
thereisademotioninrankordiminution
inpayor
clear discrimination, insensibility or
disdain by an Er becomes unbearable to
the Ee. (Leonardo v. NLRC, G.R.
No.125303,June16,2000)
Note:Thereisnoformaldismissal.TheEeisplacedin
a situation by the Er such that his continued
employmenthasbecomeunbearable.Abandonmentis
incompatiblewithconstructivedismissal.
97
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
98
Q:CantorandPepitowerepreventivelysuspended
pending application for their dismissal by Manila
Doctors Hospital after being implicated by one
Macatubal when they refused to help him when
he was caught stealing xray films from the
hospital.WasthepreventivesuspensionofCantor
andPepitoproper?
A: Where the continued employment of an Ee
posesaseriousandimminentthreattothelifeand
propertyoftheemployeroronhiscoEes,theEes
preventive suspension is proper. In this case, no
suchthreattothelifeandpropertyoftheErorof
their coEes is present and they were merely
implicated by the Macatubal. (Manila Doctors
Hospitalv.NLRC,G.R.No64897,Feb.28,1985)
(6)Quitclaim
Q:Whatisaquitclaim?
Q:Whatconstitutesreasonablesettlement?
A: Reasonable settlement requires that the
consideration for the quitclaim is credible and
reasonable.(Periquetv.NLRC,G.R.No.91298,June
22,1990)
Q: Is dire necessity a ground to nullify a
quitclaim?
A: Dire necessity is not an acceptable ground for
annulling the releases, especially since it has not
beenshownthattheemployeeshadbeenforcedto
executethem.Ithasnotevenbeenproventhatthe
considerations for the quitclaims were
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
unconscionably low and that the petitioners had
beentrickedintoacceptingthem.Furthermore,no
deception has been established on the part of the
employer that would justify the annulment of the
employees quitclaim. (Veloso v. DOLE, G.R. No.
87297,August5,1991.)
A: Itistheresultofabilateralactoftheparties,a
voluntary agreement between the employer and
the employees whereby the latter after reaching a
certain age agrees and/or consents to sever his
employment with the former. (Soberano v. Sec. of
Labor, G.R. Nos. L4375356 and L50991, Aug. 29,
1980)
(7)Terminationofemploymentbyemployee
Q:Howcananemployee(Ee)terminatehisservice
withhisemployer(Er)?
A:
1. Without just cause by serving written
notice on the Er at least 1 month in
advance. The Er upon whom no such
notice was served may hold the Ee liable
fordamages.
2. WithjustcauseanEemayputanendto
employment without serving any notice
on the Er for any of the following just
causes:
a. Serious insult by the Er or his
representative on the hour and
personoftheEe
b. Inhuman and unbearable treatment
accorded the Ee by the Er or his
representative
c. Commissionofacrimeoroffenseby
the Er or his representative against
the person of the Ee or any of the
immediatemembersofhisfamily
d. Othercausesanalogoustoanyofthe
foregoing
Q:Whenisemploymentnotdeemedterminated?
A:
1. Bona fide suspension of the operation of
abusinessorundertakingforaperiodnot
exceeding6months,or
2. The fulfillment by the Ee of a military or
civic duty shall not terminate
employment.
Note:Inallsuchcases,theErshallreinstatetheEeto
hisformerpositionwithoutlossofseniorityrightsifhe
indicateshisdesiretoresumehisworknotlaterthan1
monthfromtheresumptionofoperationsofhisEror
fromhisrelieffromthemilitaryorcivicduty.(Art.286)
3.RETIREMENTPAYLAW
a.Coverage,Exclusionsfromcoverage,Components
ofretirementpay
Q:Whatisretirement?
Q:Whatarethekindsofretirementschemes?
A:
1. Compulsoryandcontributoryinnature;
2. One set up by the agreement between
theemployer(Er)andemployees(Ees)in
the CBA or other agreements between
them (other applicable employment
contract);
3. One that is voluntarily given by the Er,
expressly as announced company policy
or impliedly as in the failure to contest
the Ees claim for retirement benefits.
(Marilyn Odchimar Gertach v. Reuters
Limited, Phils., G.R. No. 148542, Jan. 17,
2005)
A:
GR:Allemployees(Ees)intheprivatesector:
1. Regardless of their position, designation
orstatus;and
2. Irrespectiveofthemethodbywhichtheir
wages are paid. (Sec.1, Rule II, Book VI,
IRR)
XPN:
1. Ees of the National Govt and its political
subdivisions,includingGOCCs(iftheyare
coveredbytheCivilServiceLaw)
2. Domestic helpers and persons in the
personalserviceofanother
3. Ees of retail, service, and agricultural
establishments or operations employing
notmorethan10Ees(Sec.2,RuleII,Book
VI,IRR)
Q:Whatistheretirementage?
A:Itistheageofretirementthatisspecifiedinthe:
1. CBA;or
2. Employmentcontract;or
3. Retirement plan (Sec. 3, Rule II, Book VI,
IRR).
4. Optional retirement age for underground
mining employees: 5060 years provided
theyhaveatleastservedforaperiodof5
years.(Art.285asamendedbyR.A.8558)
99
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
1. Optional60yearsold/5yearsinservice
(includes authorized absences, vacations,
regular holidays, mandatory military or
civicservice)
Note:Theoptiontoretireuponreachingthe
ageof60yearsormorebutnotbeyond65
istheexclusiveprerogativeoftheemployee
(Ee)ifthereisnoprovisiononretirementin
a CBA or any other agreement or if the
employer (Er) has no retirement plan. (R.A.
7641;Capiliv.NLRC,G.R.No.117378,Mar.
26,1997)
2.
100
Note:UnderSec.26ofR.A.No.4670,otherwiseknown
as Magna Carta for Public School Teachers, public
school teachers having fulfilled the age and service
reqtsoftheapplicableretirementlawsshallbegiven
one range salary raise upon the retirement, which
shallbethebasisofthecomputationofthelumpsum
oftheretirementpayandmonthlybenefitthereafter.
A:Yes,provided:
1. The claimant for retirement benefits was
stilltheemployeeoftheemployeratthe
timethestatutetookeffect;and
2. The claimant was in compliance with the
reqts for eligibility under the statute for
suchretirementbenefits.(PSVSIAv.NLRC,
G.R.No.115019,April14,1997)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TERMINATION OF EMPLOYMENT
years of service, whichever comes first. Rivera
completed30yearsofserviceandUNILABretired
herpursuanttothetermsoftheplan,shereceived
the benefits in 88. At Rivera's request, UNILAB
allowedhertocontinueworkingforthecompany.
She continued working beyond the compulsory
separation from service that resulted from her
retirement.From1993to1994,Riveraservedasa
personal consultant under contract for UNILABs
sister companies which assigned Rivera to render
service involving UNILAB.In 1992, the company
amended its retirement plan, providing, among
others, for an increase in retirement benefits.
Rivera asked that her retirement benefits be
increased in accordance with the amended
retirementprogram.WhetherRiveraisentitledto
theadditionalretirementbenefitsoftheamended
retirementplan?
A: No. Whether these terms included renewed
coverage in the retirement plan is an evidentiary
gap that could have been conclusively shown by
evidenceofdeductionsofcontributionstotheplan
after1988.Twoindicators,however,tellusthatno
suchcoveragetookplace.Thefirstisthattheterms
of the retirement plan, before and after its 1992
amendment,continuedtoexcludethosewhohave
rendered 30 years of service or have reached 60
years of age. Therefore, the plan could not have
coveredher.Thesecondistheabsenceofevidence
of, or of any demand for, any reimbursement of
whatRiverawouldhavepaidascontributionstothe
plan had her coverage and deductions continued
after 1988. Thus, the Court concludes that her
renewed service did not have the benefit of any
retirement plan coverage. (Rivera v. United
Laboratories,Inc.,G.R.No.155639,April22,2009)
Q:Isaspecialretirementplandifferentfromthose
contemplatedundertheLCasagreeduponbythe
partiesvalid?
A:Yes.Apilotwhoretiresafter20yearsofservice
or after flying 20,000 hours would still be in the
prime of his life and at the peak of his career,
comparedtoonewhoretiresattheageof60years
old. Based on this peculiar circumstance that PAL
pilots are in, the parties provided for a special
scheme of retirement different from that
contemplated in the LC. Conversely, the provisions
of Art. 287 of the LC could not have contemplated
thesituationofPAL'spilots.Rather,itwasintended
for those who have no more plans of employment
after retirement, and are thus in need of financial
assistanceandrewardfortheyearsthattheyhave
rendered service. (PAL v. Airline Pilots Assn of the
Phils.,G.R.No.143686,Jan.15,2002)
A:
GRATUITYPAY
Itispaidtothe
beneficiaryforthepast
servicesorfavor
renderedpurelyoutof
thegenerosityofthe
giverorgrantor.Itisnot
intendedtopayaworker
foractualservices
renderedorforactual
performance.Itisa
moneybenefitorbounty
giventotheworker,the
purposeofwhichisto
rewardEeswhohave
renderedsatisfactory
servicetothecompany.
RETIREMENTBENEFITS
Areintendedtohelpthe
Eeenjoytheremaining
yearsofhislife,releasing
himfromtheburdenof
worryingforhisfinancial
support,andareaformof
rewardforhisloyaltyto
theEr.(Sta.Catalina
CollegeandSr.Loreta
Oranza,vs.NLRCand
HilariaTercera,G.R.No.
144483.November19,
2003,J.CarpioMorales)
b.RetirementpayunderRA7641visvisretireent
benefitsunderSSSandGSISlaws
Q:WhatisretirementpayundertheLCinrelation
toretirementbenefitsunderSSSandGSISlaws?
101
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Revised
Government
Service
InsuranceAct
Employees
Compensation
Act
Compulsory
upon all E e s
n o t o v e r 6 0
years of age
andtheirErs.
1.Filipinos
recruited
in
the Phils. by
foreignbased
Ers
for
employment
abroadmaybe
coveredbythe
SSS on a
voluntary
basis.
2.
Compulsory
upon all self
employed
persons
earning P1,800
or more per
annum.
Compulsory for
all permanent
Ees below 60
years of age
upon
appointment to
permanent
status, and for
all
elective
officials for the
duration oftheir
tenure.
1. Any person,
whether elected
or appointed, in
theserviceofan
Er is a covered
Ee if he receives
compensation
forsuchservice.
Compulsory upon
all Ers and their
Ees not over 60
years of age;
Provided, that an
Ee who isover 60
years of age and
paying
contributions to
qualify for the
retirement or life
insurance benefit
administered by
the System shall
be subject to
compulsory
coverage.
102
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
MANAGEMENT PREROGATIVE
E.MANAGEMENTPREROGATIVE
Q:WhatisManagementPrerogative?
A:
GR: It is the right of an Er to regulate,
accordingtohisowndiscretionandjudgment,
allaspectsofemployment,including:
1. Hiring
2. Workassignments
3. Workingmethods
4. Time,placeandmannerofwork
5. Toolstobeused
6. Processestobefollowed
7. Supervisionofworkers
8. Workingregulations
9. TransferofEes
10. Worksupervision
11. Layoffofworkers
12. Discipline
13. Dismissal
14. Recallofworkers
XPNs:Otherwiselimitedbyspeciallaws.
A:
1. No,thepolicydoesnotviolatetheLC.The
practiceisavalidexerciseofmanagement
function. Considering the nature and
reasonforexistenceoftheschool,itmay
adopt such policy as will advance its
laudable objectives. In fact, the policy
accordswiththeconstitutionalpreceptof
inculcating ethical and moral values in
schools. The school policy does not
discriminate against women solely on
account of sex (Art. 135, LC) nor are the
actsprohibitedunderArt.137oftheLC.
2. No,becausetotoleratepregnancyoutof
wedlockwillbeablatantcontradictionof
Q:LittleHandsGarmentCompany,anunorganized
manufacturer of children's apparel with around
1,000workers,sufferedlossesforthe1stfirsttime
in history when its US and European customers
shiftedtheirhugeorderstoChinaandBangladesh.
ThemanagementinformeditsEesthatitcouldno
longer afford to provide transportation shuttle
services. Consequently, it announced that a
normal fare would be charged depending on the
distance traveled by the workers availing of the
service.
WastheLittleHandsGarmentsCompanywithinits
rights to withdraw this benefit which it had
unilaterallybeenprovidingtoitsEes?
1.DISCIPLINE
Q:DiscussbrieflytheErsrighttodisciplinehisEes.
A: TheErhastheprerogativetoinstilldisciplinein
his Ees and to impose reasonable penalties,
including dismissal, on erring Ees pursuant to
company rules and regulations. (San Miguel
Corporationv.NLRC,G.R.No.87277,May12,1989)
103
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:TheErhastheobligationtosharewithitsEesits
prerogativeofformulatingacodeofdiscipline.This
is in compliance with the States policy stated in
Article 211 of the Labor Code, to ensure the
participation of workers in decision and policy
making processes affecting their rights, duties and
welfare. The exercise of management prerogatives
has, furthermore, never been considered to be
boundless.Thisobligationisnotdispensedwithby
a provision in the collective bargaining agreement
recognizing the exclusive right of the Er to make
andenforcecompanyrulesandregulationstocarry
outthefunctionsofmanagementwithouthavingto
discuss the same with the union and much less
obtain the latters conformity thereto. A code of
discipline unilaterally formulated and promulgated
by the Er would be unenforceable. (Philippine
Airlines, Inc. vs. NLRC et al., G.R. No. August 13,
1993.)
2.TRANSFEROFEMPLOYEES
A:Inthepursuitofitslegitimatebusinessinterests,
especially during adverse business conditions,
management has the prerogative to transfer or
assign Ees from one office or area of operation to
another provided there is no demotion in rank or
diminution of salary, benefits and other privileges
and the action is not motivated by discrimination,
bad faith, or effected as a form of punishment or
demotion without sufficient cause. This privilege is
inherent in the right of Ers to control and manage
theirenterpriseseffectively.
A:No.ThereisnolawthatcompelsanEetoaccept
promotion,asapromotionisinthenatureofagift
104
A:TheErmustbeabletoshowthatthetransferis
notunreasonable,inconvenientorprejudicialtothe
Ee; nor does it involve a demotion in rank or a
diminution of his salaries, privileges and other
benefits.ShouldtheErfailtoovercomethisburden
of proof, the Ees transfer shall be tantamount to
constructive dismissal. (Blue Dairy Corporation v.
NLRC,314SCRA401[1999])
3.PRODUCTIVITYSTANDARD
Q:MayanErimposeproductivitystandardsforits
workers?
4.GRANTOFBONUS
Q:Whatisabonus?
A:ItisanamountgrantedandpaidtoanEeforhis
industry and loyalty which contributed to the
success of the Ers business and made possible the
realizationofprofits.
Q:Canbonusbedemanded?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
MANAGEMENT PREROGATIVE
A:
GR: Bonus is not demandable as a matter of
right. It is a management prerogative given in
addition to what is ordinarily received by or
strictlyduetorecipient.(ProducersBankofthe
Phil.v.NLRC,G.R.No.100701,March28,2001)
XPNs:Givenforalongperiodoftime
1. Consistent and deliberate Er continued
giving benefit without any condition
imposedforitspayment
2. Er knew he was not required to give
benefit
3. Nature of benefit is not dependent on
profit
4. Made part of the wage or compensation
agreed and stated in the employment
contract.
5.CHANGEOFWORKINGHOURS
Q:DiscussbrieflytheErsrighttochangeworking
hours.
A:Wellsettledistherulethatmanagementretains
theprerogative,wheneverexigenciesoftheservice
sorequire,tochangetheworkinghoursofitsEes.
oftimehasbeenpayinghisEeswagesdueforeight
hours work although the work shift less than eight
hours (e.g. seven) it cannot later on increase the
workinghourswithoutanincreaseinthepayofthe
employees affected. An Er is not allowed to
withdraw a benefit which he has voluntarily given.
AnErisnotallowedtowithdrawabenefitwhichhe
hasvoluntarilygiven.
6.MARITALDISCRIMINATION
A:TheErmustprove2factors:
1. That the employment qualification is
reasonably related to the essential
operationofthejobinvolved;and
2. Thatthereisafactualbasisforbelieving
that all or substantially all persons
meeting the qualification would be
unabletoproperlyperformthedutiesof
thejob.(StarPaperetal.vs.Simbol,G.R.
No.164774,April12,2006)
105
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Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
7.POSTEMPLOYMENTBAN
8.LIMITATIONSINITSEXERCISE
A:No.Itiscircumscribedbylimitationsfoundin:
1. Law,
2. CBA,or
106
3. Generalprinciplesoffairplayandjustice
Note:Itmustbeestablishedthattheprerogativebeing
invokedisclearlyamanagerialone
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
F.SOCIALLEGISLATION
Q:WhatisSocialLegislation?
1.SOCIALSECURITYLAW
(RA8282)
Q:Whatisthepolicyobjectiveintheenactmentof
(SSS)Law?
A:ItisthepolicyoftheStatetoestablish,develop,
promoteandperfectasoundandviabletaxexempt
SSSsuitabletotheneedsofthepeoplethroughout
the Phils., which shall promote social justice and
provide meaningful protection to members and
their beneficiaries against the hazards of disability,
sickness, maternity, old age, death, and other
contingenciesresultinginlossofincomeorfinancial
burden.(Sec.2)
TheenactmentofSSSlawisalegitimateexerciseof
thepolicepower.Itaffordsprotectiontolaborand
isinfullaccordwiththeconstitutionalmandateon
the promotion of social justice. (Roman Catholic
ArchbishopofManilav.SSS,G.R.No.15045Jan.20,
1961)
Q:Arethepremiumsconsideredastaxes?
A:No.ThefundscontributedtotheSystembelong
to the members who will receive benefits, as a
matterofright, wheneverthehazardsprovidedby
the law occur. (CMS Estate, Inc., v. SSS, G.R. No.
26298Sep.28,1984)
Q:ArebenefitsreceivedunderSSSLawpartofthe
estateofamember?
A:No.BenefitsreceivableundertheSSSLawarein
thenatureofaspecialprivilegeoranarrangement
secured by the law pursuant to the policy of the
Statetoprovidesocialsecuritytotheworkingman.
The benefits are specifically declared not
transferable and exempt from tax, legal processes
andliens.(SSSv.Davac,et.al.,G.R.No.21642,July
30,1966)
Q:Howaredisputessettled?
A:
Social
Security
Commission
(SSC)
CA/SC
Execution
ofdecision
DISPUTESETTLEMENT
Disputesinvolving:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
5. Anyothermatterrelated
thereto.
DecisionsofSSCshallbeappealableto:
1.CAquestionsoflawandfact(Sec.
5c)
2.SCquestionsoflaw.(Sec.5c)
SSCmay,motupropriooronmotionof
any interested party, issue a writ of
execution to enforce any of its
decisions or awards, after it has
becomefinalandexecutory.(Sec.5d)
Q:Whoisanemployer(Er)?
107
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Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whoisanemployee(Ee)?
Q:Whatisemployment?
A:GR:AnyserviceperformedbyanEeforhisEr.
XPNs:
1. Employmentpurelycasualandnotforthe
purposeofoccupationorbusinessofthe
Er;
2. Service performed on or in connection
with an alien vessel by an Ee if he is
employedwhensuchvesselisoutsidethe
Phils;
3. Service performed in the employ of the
Phil. Government or instrumentality or
agencythereof;
4. Service performed in the employ of a
foreign government or international
organization, or their whollyowned
instrumentality:
5. Such other services performed by
temporary and other Ees which may be
excludedbyregulationoftheSSC.Eesof
bona fide independent contractors shall
notbedeemedEesoftheErengagingthe
servicesofsaidcontractors.(Sec.8[j])
Q:Whatisacontingency?
a.Coverage
Q:WhoarecoveredbySSS?
A:
1. CompulsoryCoverage
a. AllEesnot over60yearsofageand
theirErs;
b. Domestic helpers whose income is
notlessthanP1000/monthandnot
over60yearsofageandtheirErs;
Limitations:
a. Any benefit earned by the Ees
under private benefit plans
existing at the time of the
approvaloftheActshallnotbe
108
2.
discontinued,
reduced
or
otherwiseimpaired;
b. Existing private plans shall be
integrated with the SSS but if
the Er under such plan is
contributingmorethanwhatis
required by this Act, he shall
pay to the SSS the amount
required to him, and he shall
continue with his contributions
lesstheamountpaidtoSSS;
c. Any changes, adjustments,
modifications, eliminations or
improvementsinthebenefitsof
theremainingprivateplanafter
the integration shall be subject
to agreementsbetween the Ers
andtheEesconcerned;and
d. The private benefit plan which
theErshallcontinueforhisEes
shall remain under the Ers
managementandcontrolunless
there is an existing agreement
tothecontrary
c. All selfemployed considered both
anErandEe
d. Professionals;
e. Partners and single proprietors of
business;
f. Actors and actresses, directors,
scriptwriters
and
news
correspondents who do not fall
within the definition of the term
Ee;
g. Professional athletes, coaches,
trainersandjockeys;AND
h. Individual farmers and fisherman.
(Sec.9)
Voluntary
a. Spouses who devote full time to
managing the household and family
affairs, unless they arealso engaged
in other vocation or employment
which is subject to mandatory
coverage;(Sec.9[b])
b. Filipinos recruited by foreignbased
Ers for employment abroad may be
covered by the SSS on a voluntary
basis;(Sec.9[c])
c. Ee separated from employment to
maintainhisrighttofullbenefits
d. Selfemployed who realizes no
incomeforacertainmonth
3.
ByAgreement
Any foreign government, international
organization, or their whollyowned
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
instrumentality employing workers in the
Phils., may enter into an agreement with
the Phil. government for the inclusion of
such Ees in the SSS except those already
covered by their respective civil service
retirementsystems.
A:
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment
3. Compulsory coverage of selfemployed
uponhisregistrationwiththeSSS
Q:Whatistheeffectofseparationofanemployee
fromhisemploymentundercompulsorycoverage?
A:
1. His Ers obligation to contribute arising
from that employment shall cease at the
endofthemonthofseparation,
2. But said Ee shall be credited with all
contributions paid on his behalf and
entitled to benefits according to the
provisionsofR.A.9282.
3. He may, however, continue to pay the
totalcontributionstomaintainhisrightto
fullbenefit.(Sec.11)
Q:Whatistheeffectofinterruptionofbusinessor
professionalincome?
A:Iftheselfemployedmemberrealizesnoincome
inanygivenmonth:
b.Exclusionsfromcoverage
Q:Enumeratethekindsofemploymentwhichare
exceptedfromcompulsorycoverageundertheSSS
Law.
A:UnderSection8(j)ofR.A.1161,asamended,the
following services or employments are excepted
fromcoverage:
1. Employmentpurelycasualandnotforthe
purpose of occupation or business of the
employer;
109
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
c.Benefits
Q:WhatarethebenefitsundertheSSSAct?
A:
1. MonthlyPension
2. RetirementBenefits
3. DeathBenefits
4. DisabilityBenefits
5. FuneralBenefits
6. SicknessBenefits
7. MaternityBenefits
Q:WhatarethereportorialrequirementsoftheEr
andselfemployed?
A:
1. Er Report immediately to SSS the names,
ages, civil status, occupations, salaries and
dependentsofallhiscoveredEes
2. SelfemployedReporttoSSSwithin30days
fromthefirstdayofhisoperation,hisname,
age, civil status, occupation, average
monthlynetincomeandhisdependents
MonthlyPension
Q:Howmuchisthemonthlypension?
A:
1. Themonthlypensionshallbethehighest
ofthefollowingamounts:
a. Thesumofthefollowing:
ii. P300.00;plus
110
2.
Q:Whatwillhappentothemonthlypensionofa
retireeincaseofdeath?
A:
1. Upon the death of the retired member,
hisprimarybeneficiariesasofthedateof
his retirement will get 100% of his
monthly pension plus the dependent's
pensionforeachchild.
2.
Ifhedieswithin60monthsfromthestart
of his pension and he has no primary
beneficiaries, his secondary beneficiaries
willreceivealumpsumbenefitequivalent
to the difference of 60 multiplied by the
monthly pension and the total monthly
pensions paid by the SSS excluding the
dependent'spension.(Sec.12B[d])
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
respective marriages to the SSS members were
contracted after the latters retirement; (2) due
process clause because it outrightly deprives
spouses who married the SSS members after their
retirement of the survivors pension, a property
interest, without giving them opportunity to be
heard;and(3)socialjustice.
Q:Whenisthemonthlypensionanddependents
pensionsuspended?
A:
1. Uponthereemploymentorresumptionof
selfemployment
2. Recovery of the disabled member from
hispermanenttotaldisability
3. Failuretopresenthimselfforexamination
at least once a year upon notice by the
SSS.(Sec.13A[b])
RetirementBenefit
Q:Whatisaretirementbenefit?
A:Itisacashbenefitpaidtoamemberwhocanno
longerworkduetooldage.
Q:Whatarethetypesofretirementbenefits?
A:
Q:Whoareentitledforretirementbenefits?
A:
1. Amemberwho
a. has paid at least 120 monthly
contributionspriortothesemesterof
retirement;
b. atleast60yearsold;and
c. already separated from employment
orhasceasedtobeselfemployed,OR
2. Atleast65yearsold,shallbeentitledfor
as long as he lives to the monthly
pension;(Sec12B[a])
3.
Amember
a. At least 60 years old at retirement;
and
b. Doesnotqualifyforpensionbenefits
underparagraph(a)aboveentitled
to a lump sum benefit equal to the
total contributions paid by him and
onhisbehalf;
c. Must
be
separated
from
employment and is not continuing
payment of contributions to the SSS
onhisown.(Sec.12B[b])
A:Themonthlypensionofaretirementpensioner
whoresumesemploymentandislessthan65years
old will be suspended. He and his Er will again be
subjecttocompulsorycoverage.(Sec.12B[c])
A:Yes(Sec.12[A]).However,only5minorchildren,
beginning from the youngest, are entitled to the
dependents' pension. No substitution is allowed.
Where there are more than 5 legitimate and
illegitimate children, the legitimate ones will be
preferred.
Q:Forhowlongwillthedependentchildreceive
thepension?
DeathBenefit
A:
1. Upondeathofamember,ifhehaspaidat
least 36 monthly contributions prior to
thesemesterofdeath:
a. primary beneficiaries shall be
entitledtothemonthlypension;or
b. Iftherearenoprimarybeneficiaries,
secondary beneficiaries shall be
111
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VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
DisabilityBenefit
Q:Whatisadisabilitybenefit?
Q:Whatisthedifferencebetweendeathbenefits
andPermanentTotalDisabilitybenefits?
A:
DeathBenefits
PTDBenefits
Requisite
atleast36monthlycontributions
Benefitspayabletowhom
PrimaryBeneficiaries
Member
Failuretomake36monthlypayments
Benefitsshallbeinlumpsumequivalenttothe
monthlypensiontimesthenumberofmonthly
contributionspaidtoSSSor12timesthemonthly
pension,whicheverishigher.
A:
1. Primary beneficiaries are entitled to
receivemonthlypensionasofthedateof
disability.
2. No primary beneficiaries and he dies
within 60 months from the start of his
monthlypensionsecondarybeneficiaries
shall be entitled to a lump sum benefit
equivalent to the total monthly pensions
corresponding to the balance of the 5
year guaranteed period excluding the
dependentspension.(Sec.13A[c])
112
FuneralBenefit
Q:Whatisthefuneralbenefit?
A:AfuneralgrantequivalenttoP12,000.00shallbe
paid, in cash or in kind, to help defray the cost of
expenses upon the death of a member or retiree.
(Sec.13B)
SicknessBenefit
Q:Whatissicknessbenefit?
A:Itisadailycashallowancepaidforthenumber
ofdaysamemberisunabletoworkduetosickness
orinjury.
A:
1. The member paid at least 3 monthly
contributions in the 12month period
immediately preceding the semester of
sicknessorinjury
2. Confined for more than 3 days in a
hospital or elsewhere with the approval
oftheSSS
3. He has used all current company sick
leaveswithpayforthecurrentyear
4. Notified his Er or the SSS, if he is a
separated, voluntary or selfemployed
member
Q:Whowillpaysicknessbenefits?andhowmuch
isthebenefit?
A:TheErshallpaythe:
1. Ee for each compensable confinementor
fractionthereofor
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
b.
c.
3.
4.
Notpaidformorethan240dayson
account of the same confinement;
and
Ee member shall notify his Er of the
factofhissicknessorinjurywithin5
calendar days after the start of his
confinement
unless
such
confinement:
i.
isinahospital
ii. the Ee became sick or was
injured while working or
withinthepremisesoftheEr
(notification to the Er not
necessary);
Note:Thelawdoesnotrequirethatsicknessmustbe
relatedtothedutiesofthebeneficiaries.
A:
1. Beginsonthe1stdayofsickness
2. Payment of such allowances shall be
promptlymadebytheEr:
a. every regular payday or on the 15th
andlastdayofeachmonth,
b. incaseofdirectpaymentbytheSSS
as long as such allowances are due
andpayable.(Sec.14[b])
Q:WhataretherequirementsinorderthatErmay
claimreimbursementofthesicknessbenefit?
A:
1. 100% of daily benefits shall be
reimbursed by SSS if the following
requirementsaresatisfied:
a. Receipt of SSS of satisfactory proof
ofsuchpaymentandlegalitythereof:
b. The Er has notified the SSS of the
confinement within 5 calendar days
afterreceiptofthenotificationfrom
theEemember:
2.
Q:WhenwillreimbursementbemadebySSS?
XPN:Confinementinahospitalinwhichcasethe
claimforbenefitorreimbursementmustbefiled
within 1 year from the last day of confinement.
(Sec.14[c])
MaternityBenefit
Q:Whatisthematernitybenefit?
A:
1. She has paid at least three monthly
contributionswithinthe12monthperiod
immediately preceding the semester of
herchildbirthormiscarriage.
2. Shehasgiventherequirednotificationof
her pregnancy through her employer if
employed, or to the SSS if separated,
voluntaryorselfemployedmember.
Q:Isthevoluntaryorselfemployedmemberalso
entitledtothematernitybenefit?
Q:Howmuchisthematernitybenefit?
Q:Howisthematernitybenefitcomputed?
113
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Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
1.
2.
3.
Count12monthsbackwardsstartingfrom
the month immediately before the
semesterofcontingency.
Identify the six highest monthly salary
creditswithinthe12monthperiod.
4.
5.
6.
Addthesixhighestmonthlysalarycredits
togetthetotalmonthlysalarycredit.
Divide the total monthly salary credit by
180 days to get the average daily salary
credit. This is equivalent to the daily
maternityallowance.
Multiplythedailymaternityallowanceby
60(fornormaldeliveryormiscarriage)or
78days(forcaesareansectiondelivery)to
getthetotalamountofmaternitybenefit.
Q:Whatisthedifferenceofcompensabilityunder
theLaborLawandtheSocialSecurityLaw?
LABORLAW
SOCIALSECURITYLAW
Purpose
Governs compensability Benefits are intended to
provide insurance or
of:
protection against the
1. workrelated
hazards or risks of
disabilities
2. whenthereisloss disability, sickness, old
of income due to age or death, inter alia,
irrespective of whether
workconnected
or
work theyarosefromorinthe
of
the
aggravated injury course
employment.
orillness.
Nature
may
be
A disability is total and Disability
permanentifasaresultof permanent total or
the injury or sickness the permanentpartial.
Ee is unable to perform
114
anygainfuloccupationfor
a continuous period
exceeding 120 days
regardless of whether he
losestheuseofanyofhis
bodyparts.
d.Beneficiaries
Q:Whoareprimarybeneficiaries?
A:
1. The dependent spouse until he or she
remarries
Q:Whoaresecondarybeneficiaries?
Q:Whoareconsidereddependents?
A:
1. The legal spouse entitled by law to
receivesupportfromthemember;
2. The legitimate, legitimated, or legally
adopted,andillegitimatechildwho:
a. Isunmarried,
b. Notgainfullyemployed,and
c. Hasnotreached21yearsofage,orif
over 21 years of age, he is
congenitallyorwhilestillaminorhas
beenpermanentlyincapacitatedand
incapable of selfsupport, physically
ormentally.
3. The parent who is receiving regular
supportfromthemember.
Q:Whatismeantbydependentforsupport?
Ifawifewhoisalreadyseparateddefactofromher
husband cannot be said to be "dependent for
support"uponthehusband,absentanyshowingto
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
the contrary. Conversely, if it is proved that the
husband and wife were still living together at the
timeofhisdeath,itwouldbesafetopresumethat
she was dependent on the husband for support,
unless it is shown that she is capable of providing
forherself.(SSSv.Aguas,G.R.No.165546,Feb.27,
2006)
Q:Whatiscompensation?
2.GSIS
(R.A.8291)
1. Compulsorylifeinsurance
2. Optionallifeinsurance
3. Retirementbenefits
4. Disability benefits to workrelated
contingencies;and
5. Deathbenefits
A:
1. NationalGovernment
2. Its political subdivisions, branches,
agencies,instrumentalities
3. GOCCs, and financial institutions with
originalcharters
4. Constitutional Commissions and the
Judiciary(Sec.2[c])
Q:CanSSSEesbecoveredbyGSIS?
A:Yes.
Q:WhoisanEmployeeormember?
A:Anyperson,receivingcompensationwhileinthe
service of an Er, whether by election or
appointment,irrespectiveofstatusofappointment,
including barangay and sanggunian officials. (Sec.
2[d])
Q:Whatiscompensation?
115
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:WhatarethesourcesoffundsoftheGSIS?
116
a.Coverage
A:
GR: All Ees receiving compensation who have
not reached the compulsory retirement age,
irrespectiveofemploymentstatus.
XPNs:
1. Uniformedmembersofthe:
a.AFP;and
b.PNP.
2. Contractuals who have no Er and Ee
relationshipwiththeagenciestheyserve.
A:
GR: All members of the GSIS shall have life
insurance, retirement, and all other social
security protections such as disability,
survivorship, separation, and unemployment
benefits.(Sec.3)
XPNs:Membersof:
1. Thejudiciary;and
2. Constitutional commissions who shall
havelifeinsuranceonly.
b.Exclusionsfromcoverage
A:
1. Ees who have separate retirement
schemes (members of the Judiciary,
Constitutional Commissions and others
similarlysituated)
2. Contractual Ees who have no ErEe with
theagenciestheyserve
3. Uniformed members of the AFP, BJMP,
whose coverage by the GSIS has ceased
effectiveJune24,1997
4. Uniformed members of the PNP whose
coveragebytheGSIShasceasedeffective
February1,1996.(Sec.2.4,RuleII,IRR)
Q:Forthepurposeofbenefitentitlement,howare
themembersclassified?
A:
1. Activemembers
a. Still in the service and are paying
integratedpremiums.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
b.
2.Policyholders
a. Coveredforlifeinsuranceonly
b. Canavailofpolicyloanprivilegeonly
c. Mayalsoapplyforhousingloans
d. Judiciary
and
Constitutional
Commissions
3. RetiredMembers
a. Former active members who have
retired from the service and are
already enjoying the corresponding
retirementbenefitsappliedfor
b. Not entitled to any loan privilege,
exceptstockpurchaseloan(Sec.2.2,
RulesII,IRR)
c.Benefits
A:
1. Separation
2. Unemploymentorinvoluntaryseparation
3. Retirement
4. Permanentdisability
5. Temporarydisability
6. Survivorship
7. Funeral
8. LifeInsurance
9. Such other benefits and protection as
may be extended to them by the GSIS
suchasloans.
Q:WhatarethebenefitsunderP.D.1146(Revised
GSIS Act of 1977) that may be granted to the
separatedmembersofthePNP,BJMPandBFP?
A:GR:
1. Oldagebenefit
2. Permanentdisabilitybenefit
3. Survivorshipbenefit
4. Funeralbenefit
5. Retirementbenefit
XPN:Judiciary(Lifeinsuranceonlytaxexempt)
SeparationBenefits
Q:Whataretheeffectsofseparationfromservice
withregardtomembership?
Inthecaseofforfeiture,theseparatedemployeeshall
be entitled to receive only of the cash surrender
valueofhisinsurance.
UnemploymentBenefits
A:
1. The recipient must be a permanent
employeeatthetimeofseparation;
2. Hisseparationwasinvoluntaryduetothe
abolitionofhisofficeorpositionresulting
fromreorganization;and
117
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatwillconsistofanunemploymentbenefit?
Note:Amemberwhohasrenderedatleast15yearsof
service will be entitled to separation benefits instead
ofunemploymentbenefits.
RetirementBenefits
Q:Whataretheconditionsinordertobeentitled
toretirementbenefits?
A:
1. Amemberhasrenderedatleast15years
ofservice;
2. Heisatleast60yearsofageatthetime
ofretirement;and
3. He is not receiving a monthly pension
benefit from permanent total disability.
(Sec.13A)
Q:Whatistheruleincaseofextensionofservice
inordertobeentitledforretirementbenefit?
A:ThedoctrineinCenavs.CSC(G.R.No.97419,July
3, 1992), was modified in Rabor vs. CSC, (G.R. No.
111812,May31,1995),wheretheSCheldthat:The
head of the government agency concerned is
vested with discretionary authority to allow or
disallowextensionoftheserviceofanofficialorEe
who has reached 65 years old without completing
the15yearsofgovernmentservice.However,this
discretion is to be exercise conformably with the
provisions of Civil Service Memorandum Circular
No. 27, series of 1990 which provides that the
extensionshallnotexceed1year.
Q:Whatisthereasonforcompulsoryretirement?
118
Q:Whataretheoptionsoftheretireewithregard
tohisorherretirementbenefits?
A:Theretireemaygeteitherofthefollowing:
1. Lumpsumequivalentto6monthsofthe
basic monthly pension (BMP) payable at
the time of retirement and an oldage
pensionbenefitequaltoBMPpayablefor
life, starting upon the expiration of the 5
yearscoveredbythelumpsum;or
2. Cash payment equivalent to 18 times his
BMPandmonthlypensionforlifepayable
immediately.(Sec.13[a])
PermanentDisabilityBenefits
Q:Whatisdisability?
Q:Whatistotaldisability?
Q:Whatispermanenttotaldisability(PTD)?
Q:Whatispermanentpartialdisability(PPD)?
Q:Whataretheconditionsinordertobeentitled
forpermanentdisabilitybenefits?
1. Gravemisconduct
2. Notoriousnegligence
3. Habitualintoxication
4. Willfulintentiontokillhimselforanother
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
Q: What are the two types of permanent
disability?
A:
1. Permanenttotaldisability(PTD)accrues
or arises when recovery from any loss or
impairment of the normal functions of
the physical and/or mental faculty of a
member which reduces or eliminates his
capacity to continue with his current
gainfuloccupationorengageinanyother
gainful occupation is medically remote.
[Section2(q)and(s)]
PTD
PPD
Causes
and
Completelossofsight Complete
permanent loss of the
ofbotheyes
useof:
2. Lossof2limbsator
abovetheankleor
1.Anyfinger
wrist
3. Permanentcomplete 2.Anytoe
3.Onearm
paralysisof2limbs
4.Onehand
4. Braininjuryresulting
inincurableimbecility 5.Onefoot
6.Oneleg
orinsanity
7.Oneorbothears
5. Suchothercasesas
8.Hearingofoneorboth
maybedetermined
ears
bytheGSIS
9.Sightofoneeye
e.
contribution prior
hisdisability
Heisnotreceiving
oldageretirement
pensionbenefits
2.Ifthememberdoesnot
satisfy the conditions
abovebuthasrenderedat
least 3 years service, he
shallbeadvancedthecash
payment equivalent to
100% of his average
monthlycompensationfor
each year of service he
has pad contributions but
not less than P12,000.00
which should have been
his separation benefit (he
shall no longer receive
separationbenefits)
A:
1. Incaseamemberisreemployed;or
2. Member recovers from disability as
determinedbytheGSIS;or
3. Fails to present himself for medical
examination when required by the GSIS.
(Sec.16[c])
119
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
TemporaryDisabilityBenefits
Q:Whendoestemporarytotaldisabilityarises?
A:
1. Member is entitled to 75% of his current
daily compensation for each day or
fractionthereofoftotaldisabilitybenefit,
th
to start at the 4 day but not exceeding
120daysinonecalendaryearwhen:
120
2.
a. Hehasexhaustedallsickleaves
b. CBAsickleavebenefits
Provided,that:
i. He was in the service at time of
disability;or
ii. If separated, he has rendered at
least 3 years of service and has
paid at least 6 monthly
contributions in the year
precedinghisdisability
The temporary total disability benefits
shallinnocasebelessthanP70aday.
AnapplicationfordisabilitymustbefiledwiththeGSIS
within4yearsfromthedateoftheoccurrenceofthe
contingency.
SurvivorshipBenefits
Q:Whoareentitledtosurvivorshipbenefits?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
hisdeathwithatleast3yearsofservice;
OR
3.Acashpaymentequivalentto100%ofhis
average monthly compensation for each
year of service he paid contributions, but
not less than P12,000.00: Provided, That
the deceased has rendered at least 3
years of service prior to his death but
does not qualify for the benefits under
item(1)or (2)ofthisparagraph.[Sec.21
(a)]
Q:Aftertheendoftheguaranteed30months,are
the beneficiaries still entitled to any survivorship
benefits?
Note:Thedependentchildrenshallbeentitledtothe
survivorship pension as long as there are dependent
children and, thereafter, the surviving spouse shall
receive the basic survivorship pension for life or until
heorsheremarries.
2.
P12,000.00:Provided,Thatthememberis
intheserviceatthetimeofhisdeathand
hasatleast3yearsofservice;or
Intheabsenceofsecondarybeneficiaries,
the benefits under this par. shall be paid
tohislegalheirs.(Sec.21[c])
Q:Whatarethebenefitsthatthebeneficiariesare
entitledtouponthedeathofthepensioner?
A:
1. Upon the death of an oldage pensioner
or a member receiving the monthly
income benefit for permanent disability,
the qualified beneficiaries shall be
entitled to the survivorship pension
defined in Sec. 20 of this Act, subject to
theprovisionsofpar.(b)ofSec.21.
2. When the pensioner dies within the
period covered by the lump sum, the
survivorship pension shall be paid only
aftertheexpirationofthesaidperiod.
121
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:Yes.TobecompensableundertheGSISLaw,the
deathneednotbeworkconnected.
122
FuneralBenefits
Q:Whatcomprisesthefuneralbenefit?
A:CashnotlessthanP12,000tobeincreasedtoat
leastP18,000after5years(specificallyyear2002).
The amount shall be determined and specified by
theGSISthroughaninformationcirculardistributed
to all Ers for posting at their premises. (Sec. 23,
par.1)
Q:Whenwillitbepaid?
A:Uponthedeathof:
1. Anactivemember
2. Amemberwhohasbeenseparatedfrom
the service but is entitled to future
separationorretirementbenefits
3. A member who is a pensioner (excluding
survivorshippensioners)
4. A retiree who is at the time of his
retirement was of pensionable age, at
least 60 years old, who opted to retire
under RA 1616 (An act further amending
Sec.12, C.A. 186, as amended, by
prescribingtwoothermodesofretirement
andforotherpurposes).
LifeInsurance
Q:Whataretheclassesoflifeinsurancecoverage?
A:
1. Compulsorylifeinsurance
2. Optionallifeinsurance
Note:Theplansmaybeendowmentorordinarylife.
Q:Whendoescompulsorylifeinsurancecoverage
takeeffect?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
3.
Forthosewithoutanylifeinsuranceasof
the effectivity of this Act, their insurance
shalltakeeffectfollowingsaideffectivity.
A:
1. A member may at any time apply for
himself and/or his dependents an
insurance and/or preneed coverage
embracing:
a. Life
b. Memorialplans
c. Health
d. Education
e. Hospitalization
f. Other plans as maybe designed by
GSIS
Q:WherecanGSISloansbeinvestedin?
A:
1. In direct housing loans to members and
group housing projects secured by first
mortgage giving priority to the low
incomegroups
2. In short and medium term loans to
members such as salary, policy,
educational, emergency stock purchase
plan,andothersimilarloans
A:
GR:4Yearsfromthedateofcontingency
XPN:Lifeinsuranceandretirement(Sec.28)
A:ThequasijudicialfunctionsoftheGSISshallbe
vestedinitsBoardofTrustees.
2.
3.
Within15daysfromreceiptofthenotice
ofdecisionoraward,theaggrievedparty
mayappealthedecisionoftheGSISBoard
of Trustees to the CA. Appeal shall be
taken by filling a verified petition for
review with the CA. (Sec 1 to 5, Rule 43,
RulesofCourt)
Whennoappealisperfectedandthereis
no order to stay by the Board,by the CA
orbytheSC,anydecisionorawardofthe
Board shall be enforced and executed in
thesamemannerasdecisionsoftheRTC.
Note:Thesocialsecuritybenefitsshallbe
exempt from attachment, garnishment,
execution, levy or other processes issued
by the courts, quasijudicial bodies or
administrative agencies including the
Commission on Audit, disallowances, and
from all financial obligations of the
members.
Q:Mayamemberenjoythebenefitsprovidedfor
in the Revised GSIS Act simultaneous with similar
benefits provided under other laws for the same
contingency?
A:Wheneverotherlawsprovidesimilarbenefitsfor
the same contingencies covered by this Act, the
memberwhoqualifiestothebenefitsshallhavethe
optiontochoosewhichbenefitswillbepaidtohim.
However,ifthebenefitsprovidedbythelawchosen
are less than the benefits provided under this Act,
theGSISshallpayonlythedifference.(Sec.55)
d.Beneficiaries
Q:Whoaretheconsideredbeneficiaries?
A:
1. Primarybeneficiaries
a. The legal dependent spouse until
he/sheremarriesand
b. Thedependentchildren.(Sec.2[g])
2. Secondarybeneficiaries
a. Thedependentparentsand
b. Subject to the restrictions on
dependent children, the legitimate
descendants.(Sec.2[h])
Q:Whoareconsidereddependents?
A:
1. Legitimatespousedependentforsupport
uponthememberorpensioner;
2. Legitimate, legitimated, legally adopted
child,includingtheillegitimatechild,
a. whoisunmarried,
123
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3.
notgainfullyemployed,
not over the age of majority, or if
over the age of majority,
incapacitated and incapable of self
support due to a mental or physical
defect acquired prior to age of
majority;and
Parentsdependentuponthememberfor
support.(Sec.2[f])
3.LIMITEDPORTABILITYLAW
(RA7699)
Q:WhatistheLimitedPortabilityRule?
Q:Howarethe"portability"provisionsofR.A.No.
7699 beneficial or advantageous to SSS and GSIS
members in terms of their creditable employment
servicesintheprivatesectororthegovernment,as
the case may be, for purposes of death, disability
orretirement?
The"portability"provisionsofR.A.7699allowthe
transferoffundsfortheaccountandbenefitofthe
workerwhotransfersfromonesystemtoanother.
124
4.EMPLOYEESSCOMPENSATION
Coverage
Q:WhoaresubjecttocoverageundertheECP?
A:ErsandtheirEesnotoversixty(60)yearsofage
are subject to compulsory coverage under this
program.
TheErmaybelongtoeitherthe:
TheEemaybelongtoeitherthe:
Q:Whendoescompulsorycoveragetakeeffect?
A:
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment
Q:WhatisanOccupationalDisease?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
occupationahazardwhichdistinguishesitfromthe
usual run of occupations and is in excess of the
hazardattendingtheemploymentingeneral
Q:WhatisSickness?
Q:DiscussbrieflythetheoryofIncreasedRisk.
A:ThetermsicknessasdefinedinArticle167(l)of
the Labor Code is a recognition of the theory of
increased risk. To establish compensability under
thesame,theclaimantmustshowsubstantialproof
ofworkconnection,butwhatisrequiredismerely
a reasonable workconnection and not a direct
causalrelation.Proofofactualcauseoftheailment
isnotnecessary.Thetestofevidenceofrelationof
thediseasewiththeemploymentisprobabilityand
notcertainty.(Jimenezv.EmployeesCompensation
Commission, G.R. No. L58176, March 23, 1984;
Panotesvs.ECC,G.R.No.L64802,March29,1984)
A:WheretheillnessisnotlistedbytheEmployees
Compensation Commission as an occupational
disease, it must be established that the risk of
contracting the same is increased by working
conditions.
Q:WhatdefensesmaybeinterposedbytheState
Insurance Fund (SIF) against a claim for
compensation made by a covered Ee or his
dependents?
A:Thefollowingdefensesmaybesetup:
4.
A:
1. Yes.TheinjurywassustainedbyAbrahamDino
in his place of work and while in the
performanceofhisofficialfunctions.
A:Yes.Filipinosworkingabroadintheserviceofan
Er, domestic or foreign, who carries on in the
Philippines any trade, business, industry,
undertaking or activity of any kind, are covered by
theECP.(Rule1,Section5,ECCRules;Art.169,LC)
XPNS:
125
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3.
4.
WheretheEeisproceedingtoorfromhis
workonthepremisesoftheEr;
ProximityRulewheretheEeisaboutto
enter or about to leave the premises of
his Er by way of exclusive or customary
meansofingressandegress;
Eeischarged,whileonhiswaytoorfrom
his place of employment or at his home,
or during this employment with some
dutyorspecialerrandconnectedwithhis
employment;and
Where the Er as an incident of the
employment provides the means of
transportation to and from the place of
employment.
Q:WhoareentitledtobenefitsundertheECP?
Q:WhoarethedependentsoftheEe?
A:
1. Legitimate, legitimated, legally adopted
or acknowledged natural child who is
unmarried, not gainfully employed, and
not over twentyone (21) years of age or
over twentyone (21) years of age
provided he is incapacitated and
incapableofselfsupportduetoaphysical
or mental defect which is congenital or
acquiredduringminority;
2. LegitimatespouselivingwiththeEe;and
3. ParentsofsaidEewhollydependentupon
himforregularsupport.(Art.167(i),LC,as
amendedbyP.D.1921)
Q:Whoareincludedinthetermbeneficiaries?
A:
1. MedicalBenefits
126
2.
3.
4.
DisabilityBenefits
DeathBenefits
FuneralBenefits
MedicalBenefit
A:ForanEetobeentitledtomedicalservices,the
followingconditionsmustbesatisfied:
1. HehasbeendulyreportedtotheSystem
(SSSorGSIS);
2. He sustains a permanent disability as a
resultofaninjuryorsickness;and
3. TheSystemhasbeennotifiedoftheinjury
orsicknesswhichcausedhisdisability.
DisabilityBenefit
Q:Whataredisabilitybenefits?
A:Yes.Thisisinlinewiththesocialjusticeprovision
in the Constitution. A persons disability may not
manifestitselffullyatoneprecisemomentintime
but rather over a period of time. And disability
should not be understood more on its medical
significancebutonthelossofearningcapacity.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
SOCIAL LEGISLATION
Q: May permanent total disability arise although
the Ees does not lose the use of any part of his
body?
DeathBenefit
A:
1. Dependent Spouseuntil he or she
remarries.
2. Dependent Childrenuntil they get
married, or find gainful employment, or
reachtwentyone(21)yearsofage.
3. Dependent Child suffering from physical
or mental defectuntil such defect
disappears.
A: TheEr(Sec.1,RuleX;Sec.1,RuleXI;Sec.1,Rule
XII;Sec.1,RuleXIII;ECCRules)
FuneralBenefit
Q:Whatisthefuneralbenefit?
Q:Whoarerequiredtomakecontributionstothe
SIF?
A:No,asexpresslyprovidedforinArticle173ofthe
Labor Code, payment of compensation under the
SIFshallnotbartherecoveryofbenefitsunderthe
SSS Law, Republic Act No. 1161, as amended.
BenefitsundertheSIFaccruetotheEesconcerned
duetohazardsinvolvedandaremadeaburdenon
the employment itself. On the other hand, social
security benefits are paid to SSS members by
reasonoftheirmembershipthereinforwhichthey
contribute their money to a general fund. (Maao
Sugar Central Co., Inc. vs. CA, G.R. No. 83491,
August27,1990)
127
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
4.
1.RIGHTTOSELFORGANIZATION
5.
a.Whomayunionizeforpurposesofcollective
bargaining
A:Itincludestheright:
A:Theentitiescoveredareallpersonsemployedin:
1. Commercial industrial, and agricultural
enterprises;and
2. In religious, charitable, medical or
educational
institutions
whether
operatingforprofitornot.(Art.243)
A:Thefollowingenjoytherighttoselforganization
formutualaidandprotection:
1. Ambulantworkers
2. Intermittentworkers
3. Itinerantworkers
4. Selfemployedpeople
5. Ruralworkers
6. Those without and definite Ers. (Art.
243)
Q:Whoarethepersons/Eesnotgrantedtheright
toselforganization:
A:
1. High level or Managerial Government
Ees.(Sec.3,E.O.180)
2. Ees of International organizations with
immunities. (ICMC v. Calleja, G.R. No.
85750,Sep.28,1990)
3. ManagerialEmployees.(Art.212ofLC)
128
6.
7.
8.
9.
b.BargainingUnit
Q:Whatisabargainingunit?
A:ItisagroupofEesofagivenEr,comprisedofall
orlessthanalloftheentirebodyoftheEeswhich
thecollectiveinterestofalltheEesconsistentwith
equitytotheemployer,indicatetobebestsuitedto
servethereciprocalrightsanddutiesoftheparties
under the collective bargaining provisions of the
law.
Q:Whatisanappropriatebargainingunit?
A: 1.Agroupofemployees(Ees)
2. Ofagivenemployer
3. Comprised of all or less than all of the
entirebodyofEes
4. WhichthecollectiveinterestofalltheEes
consistentwithequitytotheEr
5. Indicate to be best suited to serve the
reciprocalrightsanddutiesoftheparties
underthecollectivebargainingprovisions
ofthelaw.
(1)Testtodeterminetheconstituencyofan
appropriatebargainingunit
Q:Whatarethefactorsconsideredindetermining
theappropriatenessofabargainingunit?
A:
1. WilloftheEes.(GlobeDoctrine)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
3.
4.
AffinityandunityoftheEesinterest,such
as substantial similarity of work and
duties, or similarity of compensation and
working conditions. (Substantial Mutual
InterestRule)
Priorcollectivebargaininghistory
Similarityofemploymentstatus.(SMCv.
Laguesma, G.R. No. 100485, Sep. 21,
1994)
Q:Whatarethefactorsconsideredindetermining
thesubstantialmutualinterestdoctrine?
Q:AregisteredlaborunioninUP,ONAPUP,fileda
petitionforcertificationelection(PCE)amongthe
nonacademicEes.Theuniversitydidnotoppose,
however,anotherlaborunion,theAllUPWorkers
Union assents that it represents both academic
andnonacademicpersonnelandseekstouniteall
workers in 1 union. Do Ees performing academic
functions need to comprise a bargaining unit
distinctfromthatofthenonacademicEes?
A: Yes. The mutuality of interest test should be
takenintoconsideration.Therearetwoclassesof
rankandfileEesintheuniversitythatis,thosewho
performacademicfunctionssuchastheprofessors
andinstructors,andthosewhosefunctionarenon
academic who are the janitors, messengers, clerks
etc.Thus,notmuchreflectionisneededtoperceive
that the mutuality of interest which justifies the
formation of a single bargaining unit is lacking
between the two classes of Ees. (U.P. v. Ferrer
Calleja,G.R.No.96189,July14,1992)
Q:Isthebargaininghistoryadecisivefactorinthe
determination of appropriateness of bargaining
unit?
A:No.Whiletheexistenceofabargaininghistoryis
afactorthatmaybereckonedwithindetermining
the appropriate bargaining unit, the same is not
decisive or conclusive. Other factors must be
considered. The test of grouping is community or
mutuality of interests. This is so because the basic
testofanassertedbargainingunitsacceptabilityis
whetherornotitisfundamentallythecombination
whichwillbestassuretoallEestheexerciseoftheir
CB rights. (Democratic Labor Assn v. Cebu
Stevedoring Company, Inc., G.R. No. L10321, Feb.
28,1958)
Q:Whatisoneunion,onecompanypolicy?
A:GR:ItistheproliferationofunionsinanErunit.
Suchisdiscouragedasamatterofpolicyunless
therearecompellingreasonswhichwoulddeny
a certain class of Ees to the right to self
organization for purposes of collective
bargaining(CB).
XPNs:
1. SupervisoryEeswhoareallowedtoform
their own unions apart from the rank
andfileEesand
2. ThepolicyshouldyieldtotherightofEes
to form union for purposes not contrary
tolaw,selforganizationandtoenterinto
CBnegotiations.
Q:UnionfiledaPCEamongtherankandfileEes
of three security agencies including the Veterans
Security.Thelatteropposedallegingthatthethree
security agencies have separate and distinct
corporatepersonalities.MayasinglePCEfiledbya
labor union in the three corporations instead of
filing3separatepetitions?
A: Yes. The following are indications that the 3
agencies do not exist and operate separately and
distinctly from each other with different corporate
direction and goals: 1) Veterans Security failed to
rebut the fact that they are managed through the
Utilities Management Corp with all their Ees
drawing their salaries and wages from the said
entity; 2) that the agencies have common and
interlockingincorporatorsandofficers;3)thatthey
haveasinglemutualbenefitsystemandfolloweda
single system of compulsory retirement. 4) they
could easily transfer security guards of one agency
129
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatarethethree(3)conditionstovoluntary
recognition(VR)?
A:VRrequires3concurrentconditions:
1.
2.
(2)VoluntaryRecognition
Q: What are the 3 methods of determining the
bargainingrepresentative?
A:
1.
2.
Voluntaryrecognition
Certificationelectionwithorwithoutrun
off
Consentelection
3.
3.
Q:Whatisvoluntaryrecognition(VR)?
A:Theprocessbywhichalegitimatelaborunionis
recognized by the employer (Er) as the exclusive
bargaining representative or agent in a bargaining
unit, reported with the Regional Office. (Sec. 1
[bbb],RuleI,BookV,IRR)
Onlyoneunionmustaskforrecognition.If
there 2 or more unions asking to be
recognized, the Er cannot recognize any
of them; the rivalry must be resolved
throughanelection.
Q:WhataretherequirementsforVR?
A: The notice of VR shall be accompanied by the
originalcopyand2duplicatecopiesofthefollowing
reqts:
1.
2.
3.
JointstatementunderoathofVR
Certificateofposting
4.
5.
Statementthatthelaborunionistheonly
LLOoperatingwithinthebargainingunit.
130
Q:WhereandwhentofilethepetitionforVR?
2.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
(3)CertificationElection
Q:Whatiscertificationelection(CE)?
Note:SomeoftheEesmaynotwanttohaveaunion;
hence,nounionisoneofthechoicesnamedinthe
ballot. If no union wins, the company or the
bargaining unit remains ununionized for at least 12
months, the period is known as 12month bar. After
thatperiod,apetitionforaCEmaybefiledagain.
Q:Distinguishtherequisitesforapetitionfor
certificationelectionbetweenanorganizedandan
unorganizedestablishment.
Note:TheprocessiscalledCEbecauseitservesasthe
official, reliable and democratic basis for the BLR to
determine and certify the union that shall be the
exclusive bargaining representative of the Ees for the
purposeofbargainingwiththeEr.
Art.256.ORGANIZED
Art.257.UNORGANIZED
Bargainingagent
Present
None
Petitionfiled
Hastobeaverified
Noneedtobeverified
petition
FreedomPeriod
NopetitionforCEexcept
Notapplicable.No
within60daysbeforethe
freedomperiod.Petition
expirationoftheCBA.
canbefiledanytime.
(SeeArt.253&253A)
Substantialsupportrule
Mustbedulysupported
Nosubstantialsupport
by25%ofallthe
rule.
membersofthe
appropriatebargaining
Why?Intentionoflawis
unit(ABU).
tobringintheunion,to
implementpolicybehind
Percentagebase:all
Art.211(a).
membersofanABU.
Q:Whatisthenatureofcertificationelection?
Q:Whatisthepurposeofacertificationelection?
A:Itisameansofdeterminingtheworkerschoice
of:
Q:Whataretheissuesinvolvedinacertification
proceeding?
A: Certification proceedings directly involve two
issues:
1.
2.
A:
A:
1. Anylegitimatelabororganization(LLO)
131
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3.
4.
Note:Anationalunionorfederationfilingapetitionin
behalf of its local/chapter shall not be required to
disclose the names of the local/chapters officers and
members, but shall attach to the petition the charter
certificate it issued to its local/chapter. (Sec. 1, Rule
VIII,BookV,IRRasamendedbyD.O.40F03)
Q:Mayanemployeeinterveneinthepetitionfor
certificationelection(PCE)?
Q:WhereisPCEfiled?
Q:WhoshallhearandresolvethePCE?
A:TheMediatorArbiter.
Q:WhentofilePCE?
1. IfithasnoCBA,thepetitionmaybefiled
anytime outside the 12month bar
(certificationyear).
2. IfithasCBA,itcanbefiledonlywithinthe
th
last60daysofthe5 yearoftheCBA.
Note: Attheexpirationofthefreedomperiod,theEr
shall continue to recognize the majority status of the
incumbentbargainingagentwherenoPCEisfiled.
A:
UNIONELECTION
Heldpursuanttothe
unionsconstitutionand
132
CERTIFICATIONELECTION
Theprocessisordered
andsupervisedbyDOLE
bylaws
Righttovoteisenjoyed
onlybyunionmembers
Winnersofunionelection
becomeofficersand
representativesofthe
uniononly
AllEeswhetherunionor
nonunionmemberswho
belongtotheappropriate
bargainingunitcanvote
ThewinnerinaCEisan
entity,aunion,which
becomesthe
representativeofthe
wholebargainingunit
thatincludeseventhe
membersofthedefeated
unions.
Q:Cana"nounion"wininacertificationElection
(CE)?
A:Yes.BecausetheobjectiveinaCEistoascertain
the majority representation of the bargaining
representative,iftheEesdesiretoberepresented
at all by anyone. Hence, no union is one of the
choicesinaCE.(2006BarQuestion)
AlternativeAnswer:
No.AnounioncannotwininaCE.Thepurposeofa
CE is to select an excusive bargaining agent and a
nounionvotewouldpreciselymeanthatthevoter
isnotchoosinganyofthecontendingunions.Ifthe
nounion votes constitute a majority of the valid
votescast,thisfactwillall themoremeanthatno
union won in CE. A oneyear bar will consequently
stop the holding of another CE to allow the Er to
enjoyindustrialpeaceforatleastoneyear.
Q: In what instance may a PCE be filed outside
the freedom period of acurrentCBA?
A: As a general rule, in an establishment where
there is a CBA in force and effect, a PCE may be
filed only during the freedomperiod of such CBA.
But to have that effect, the CBA should have been
filedandregisteredwiththeDOLE.(Art.231,253A
and256,LC).(1997BarQuestion)
Thus,aCBAthathasnotbeenfiledandregistered
with the DOLE cannot be a bar to a CE and such
electioncanbeheldoutsidethefreedomperiodof
suchCBA.
AlternativeAnswer:
APCEmaybefiledoutsidethefreedomperiodof
acurrentCBAifsuchCBAisanewCBAthathas
been prematurely entered into, meaning, it was
entered into before the expiry date of the old
CBA. The filing of the PCE shall be within the
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whatisdirectcertification?
A: It is the process whereby the MedArbiter
directly certifies a labor organization of an
appropriate bargaining unit (ABU) of a company
after a showing that such petition is supported by
atleastamajorityoftheEesinthebargainingunit.
2.
3.
4.
5.
6.
Thepetitioningunionorfederationisnot
listed in the DOLEs registry of legitimate
labor unions or that its registration
certificate legal personality has been
revokedorcancelledwithfinality
Failure of a local chapter or national
union/federation to submit a duly issued
charter certificate upon filing of the
petition
Thepetitionwasfiledbeforeorafterthe
FREEDOM PERIOD of a duly registered
CBA; provided that the 60day period
based on the original CBA shall not be
affectedbyanyamendment,extensionor
renewaloftheCBA;(contractbarrule)
The petition was filed within 1 year from
entry of voluntary recognition or within
thesameperiodfromavalidcertification,
consentorrunoffelectionandnoappeal
ontheresultsofthecertification,consent
or runoff election is pending; (12month
bar;certificationyearbarrule)
A duly certified union has commenced
and sustainednegotiations with the Er in
accordancewithArt.250oftheLCwithin
the1yearperiod.(negotiationbarrule)
There exists a bargaining deadlock which
had been submitted to conciliation or
arbitration or had become the subject of
avalidnoticeofstrikeorlockouttowhich
an incumbent or certified bargaining
agentisaparty.(deadlockbarrule)
133
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
134
Beinwritingandsignedbyallcontracting
parties
Contain the terms and conditions of
employment
Cover employees in an appropriate
bargainingunit
Beforareasonableperiodorduration
Beratified
BeregisteredwiththeBLR;and
The violation of the contract bar rule or
the existence of a duly registered CBA
mustbespeciallypleadedasadefense.
Q:Whatistheeffectofaninvalidorunregistered
CBA?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TheCBAisunregistered
TheCBAisinadequateandincomplete
The CBA was hastily entered into
(Doctrineofprematureextension)
4. Withdrawal of affiliation from the
contracting union brought about by
schismormassdisaffiliation
5. Contract where the identity of the
representative is in doubt. (ALU v. Ferrer
Calleja,G.R.No.85085,Nov.6,1989)
6. CBAenteredintobetweentheErandthe
union during the pendency of a petition
for CE (Vassar Industries Ees Union v.
Estrella,G.R.No.L46562,Mar.31,1978)
7. CBA conducted between the Er and the
unionisnotbartoacertificationelection
filed by another union and said CBA can
berenegotiatedattheoptionofthenew
bargainingagent.(ATUv.Hon.Noriel,G.R.
No.L48367,Jan.16,1979)
8. ACBAregisteredwithfalsifiedsupporting
documents
9. CBA was concluded in violation of an
orderenjoiningthepartiesfromentering
into a CBA until the issue of
representationisresolved
10. Petition is filed during the 60day
freedomperiod.
Note:Basictothecontractbarruleistheproposition
thatthedelayoftherighttoselectrepresentativescan
bejustifiedonlywherestabilityisdeemedparamount.
Excepted from the contract bar rule are certaintypes
of contracts which do not foster industrial stability,
such as contracts where the identity of the
representativeisindoubt.Anystabilityderivedfrom
such contracts must be subordinated to the Ees
freedom of choice because it does not establish the
type of industrial peace contemplated by law.
(Firestone Tire & Rubber Company Ees Union v.
Estrella,G.R.No.L4551314,Jan.6,1978)
bargainingwhich,despitenobleintentions,didnot
concludeinanagreementbetweentheparties.
Q:Whatisdeadlockbarrule?
A: Apetitionforcertificationelection(PCE) cannot
be entertained if, before the filing of the PCE, a
bargaining deadlock to which an incumbent or
certified bargaining agent is a party, had been
submitted to conciliation or arbitration or had
becomethesubjectofavalidstrikeorlockout.
Q: What are the indications of a genuine
deadlock?
A:
1.
2.
Thesubmissionofthedeadlocktoathird
partyconciliatororarbitrator;and
The deadlock is the subject of a valid
noticestrikeorlockout.
Q:CapitolMedicalCenterEesAssociationAlliance
ofFilipinoWorkers(CMCEAAFW)emergedasthe
certifiedrepresentativeoftherankandfileEesat
Capitol Medical Center (CMC). Due to CMCs
refusaltobargaincollectively,CMCEAAFWfileda
noticeofstrikeandlateronstagedthestrikeafter
complying with the other legal reqts. The SLE
assumed jurisdiction over the case and issued an
order certifying the same to the NLRC for
compulsoryarbitration.Duringalloftheseevents
Capitol Medical Center Alliance of Concerned
employees (Ees)Unified Filipino Service Workers
filedapetitionforCEamongtheregularrankand
fileEesofCMC.ThepetitionforCEwasdismissed
and the CMC was directed to negotiate with
CMCEAAFW.WasthedismissalofthePCEproper?
Thecircumstancesinthiscaseshouldbeconsidered
as similar in nature to a "bargaining deadlock"
whennoCEcouldbeheld.Thisisalsotomakesure
that no floodgates will be opened for the
circumvention of the law by unscrupulous Ers to
prevent any certified bargaining agent from
negotiatingaCBA.Sec.3,(RuleVIII),BookVofthe
IRRshouldbeinterpretedliberallysoastoincludea
circumstancewhereaCBAcouldnotbeconcluded
duetothefailureofonepartytowillinglyperform
its duty to bargain collectively. (Capitol Medical
CenterAllianceofConcernedEesv.Laguesma,G.R.
No.118915,Feb.4,1997)
135
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Shouldthecertificationelectionproceedingsbe
suspended in view of the pending case for
cancellation of the unions certificate of
registration?
A:No,thependencyofacancellationcaseisnota
ground for the dismissal or suspension of a
representation proceeding considering that a
registeredlabororganization(LO)continuestobea
legitimateoneentitledtoalltherightsappurtenant
thereto until a final valid order is issued cancelling
suchregistration.
Once a LO attains the status of a LLO it begins to
possess all of the rights and privileges granted by
law to such organizations. As such rights and
privileges ultimately affect areas which are
constitutionallyprotected,theactivitiesinwhichLO,
associationsandunionsareengageddirectlyaffect
the public interest and should be zealously
protected.(ProgressiveDevtCorp.v.SLE,G.R.No.
115077,April18,1997)
Q:Whatisnegotiationbarrule?
A:APCEcannotbeentertainedif,beforethefiling
of the PCE, the duly recognized or certified union
has commenced negotiations with the Er in
accordancewithArt.250oftheLC.
Q:Whatiscertificationyearrule?
(4)RunoffElection
Q:Whatisarunoffelection?
A:Anelectionconductedwhen:
1.
2.
3.
4.
5.
136
Anelectionwhichprovidesfor3ormore
choicesresultsinnoneofthecontending
unions receiving a majority of the valid
votescast,and
There are no objections or challenges
whichifsustainedcanmateriallyalterthe
results,provided
The total number of votes for all the
contending unions is at least 50% of the
numberofvotescast.(Sec.1,RuleX,Book
V,IRR)
Not one of the choices obtained the
majority of the valid votes cast (50%+ 1
secondmajority);
The two choices which garnered the
highest votes will be voted and the one
which garners the highest number of
Q:Whoarethechoicesinarunoffelection?
nd
A:Theunionsreceivingthehighestand2 highest
number of the votes cast. (Sec.2, Rule X, Book V,
IRR)
(5)RerunElection
Q:WhendoesRerunElectiontakeplace?
A:
1.Ifonechoicereceivesapluralityofthe
voteandtheremainingchoicesresultsina
tie;or
2.Ifallchoicesreceivedthesamenumber
ofvotes.
Note:Inbothinstances,thenounionisalsoachoice.
(5)ConsentElection
Q:Whatisaconsentelection?
Q:Howtodeterminethedoublemajorityrule?
A:
1. Indeterminingtheeligiblevotescast(first
majority)includespoiledballots
2. In determining valid votes (second
majority), eliminate spoiled ballots but
includedthechallengedvotes.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Purpose
Todeterminethesole
andexclusivebargaining
agentofalltheEesinan
appropriatebargaining
unitforthepurposeof
collectivebargaining.
RequirespetitionforCE
filedbyaunionorEr.A
MedArbitergrantsthe
petitionandanelection
officerisdesignatedby
regionaldirectorto
supervisetheelection.
Note:MedArbitermay
determineifthereisErEe
relationshipandifthe
votersareeligible.
ConsentElection
Todeterminetheissueof
majorityrepresentation
ofalltheworkersinthe
appropriateCBunit
mainlyforthepurposeof
determiningthe
Heldbyagreementofthe
administratoroftheCBA
unionswithorwithout
theparticipationofthe
whenthecontracting
MedArbiter.
unionsufferedmassive
disaffiliationandnotfor
thepurposeof
determiningthe
bargainingagentfor
purposeofCB.
DirectCertification
MedArbiterdirectly
ALOisdirectlycertified
certifiesthatalabor
asanappropriate
unionistheexclusiveCB
bargainingunitofa
representativeoftheEes
companyuponshowing
ofanappropriate
thatpetitionissupported
bargainingunitwithout
byatleastamajorityof
holdingaCE,butmerely
theEesinthebargaining
onthebasisofevidence
unit.
ofinsupportofthe
unionsclaimthatisthe
Note:Directcertificationis
choiceofthemajorityof
nolongerallowed.
theEes.
RunOffElection
Takesplacebetweenthe
unionswhoreceivedthe
twohighestnumberof
votesinaCEwith3or
morechoices,wherenot
oneoftheunions
obtainedthemajorityof
thevalidvotescast,
providedthetotalunion
votesisatleast50%of
thevotescast.
RerunElection
Takes place in 2
instances:
1. Ifonechoicereceivesa
plurality of the vote
and the remaining
choicesresultsinatie;
or
2. If all choices received
the same number of
137
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
(7)AffiliationandDisaffiliationoftheLocalUnion
fromtheMotherUnion
Q:Howisalocalchaptercreated?
A: A duly registered federation or national union
may directly create a local/ chapter by issuing a
chartercertificateindicatingtheestablishmentofa
local/chapter.
1. Thechaptershallacquirelegalpersonality
only for purposes of filing a petition for
certificationelectionfromthedateitwas
issuedachartercertificate
2. The chapter shall be entitled to all other
rights and privileges of a legitimate labor
organization (LLO) only upon the
submissionofthefollowingdocumentsin
additiontoitschartercertificate:
a. Names of the chapters officers,
their addresses, and the principal
officeofthechapter
b. Chaptersconstitutionandbylaws
c. Where the chapters constitution
and bylaws are the same as that of
thefederationorthenationalunion,
this fact shall be indicated
accordingly
3. The genuineness and due execution of
thesupportingrequirementsshallbe:
a. Certifiedunderoathbythesecretary
ortreasurerofthelocal/chapter,and
b. Attestedtobyitspresident(Sec.2[e],
Rule III, Book V, IRR, as amended by
D.O.40F03)
Q:Whereistheapplicationforregistrationfiled?
A:
1.
138
processedbytheLaborRelationsDivision
attheRO.
Q:WhatisthedutyoftheBLRafteraLOhadfiled
the necessary papers and documents for
registration?
A:ItbecomesmandatoryfortheBLRtocheckifthe
reqts under Art. 234 of the LC have been
sedulously complied with. If its application for
registration is vitiated by falsification and serious
irregularities,especiallythoseappearingontheface
oftheapplicationandthesupportingdocuments,a
LO should be denied recognition as a LLO.
(ProgressiveDevtCorp.PizzaHutv.Laguesma,G.R.
No.115077,April18,1997)
Q: Within what period should the BLR act on the
applicationssubmittedbeforeit?
A: It shall act on all applications for registration
within10mdaysfromreceipteitherby:
1. Approvingtheapplicationandissuingthe
certificate of registration/acknowledging
thenotice/report;or
2. Denyingtheapplication/noticeforfailure
of the applicant to comply with the
requirementsforregistration/notice(D.O.
4003,RuleIV,Sec.4,seriesof2003)
Note:Allrequisitedocumentsshallbe:
1. Certified under oath by the secretary or
treasurer of the organization, as the case
maybeand
2. AttestedtoitbyitsPresident.
Q:MaytheBLRreviewtheissuanceofacertificate
ofregistration?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
3.
4.
1.
2.
3.
4.
Theapplicantunion'sconstitutionandby
laws, minutes of its adoption or
ratification, and the list of the members
whoparticipatedinit.Thelistofratifying
members shall be dispensed with where
the constitution and bylaws was ratified
or adopted during the organizational
meeting(s). In such a case, the factual
circumstances of the ratification shall be
recorded in the minutes of the
organizationalmeeting(s);
5.
6.
Theresolutionofaffiliation ofatleast10
LLOs, whether independent unions or
charteredlocals,eachofwhichmustbea
duly certified or recognized bargaining
agentintheestablishmentwhereitseeks
tooperate;and
Q:Whataretherequirementsforaffiliation?
5.
Thetotalnumberofmemberscomprising
the labor union and the names of
memberswhoapprovedtheaffiliation;
The certificate of affiliation issued by the
federation in favor of the independently
registeredlaborunion;and
Written notice to the employer
concerned if the affiliating union is the
incumbent bargaining agent. (D.O. 4003,
Rule,III,Sec.7,seriesof2003)
Q:Whatistheeffectofaffiliation?
A:Thelaborunionthataffiliateswithafederationis
subjecttothelawsoftheparentbodyunderwhose
authority the local union functions. The
constitution, bylaws and rules of the mother
federation,togetherwiththecharteritissuestothe
local union, constitutes an enforceable contract
between them and between the members of the
subordinate union inter se. Thus, pursuant to the
constitution and bylaws, the federation has the
righttoinvestigateandexpelmembersofthelocal
union. (Villar v. Inciong, G.R. No. L5028384, April
20,1983)
Q:Whatisthelimitationtodisaffiliation?
A: Disaffiliation should be in accordance with the
rulesandproceduresstatedintheconstitutionand
bylaws of the federation. A local union may
disaffiliatewithitsmotherfederationprovidedthat
thereisnoenforceableprovisioninthefederations
139
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatistheeffectofcancellationofregistration
ofafederationoranationalunion?
A:
GR:Itshalloperatetodivestitslocals/chapters
oftheirstatusasLLO.
XPN: Locals/chapters retain status as LLO if
theyarecoveredbyadulyregisteredCBA.
Note Locals or chapters who retained status as LLO
shall be allowed to register as independent unions. If
they fail to register, they shall lose their legitimate
statusupontheexpirationoftheCBA.
140
CHARTEREDLOCALUNION
Independently
Unregistered
Registered
Howtoaffiliate?
Byapplicationofwiththe
federationforthe
Bysigningcontractof
issuanceofacharter
affiliation
certificatetobe
submittedtotheBLR
EffectofDisaffiliationtotheunion(local)
WouldceasetobeLLO
Wouldnotaffectitsbeing
andwouldnolonger
aLLOandthereforeit
havethelegalpersonality
wouldcontinuetohave
andtherightsand
legalpersonalityandto
privilegesgrantedbylaw
possesallrightsand
toLLO,unlessthelocal
privilegesofLLO.
chapteriscoveredbyits
dulyregisteredCBA.
EffectofDisaffiliationtotheCBA
TheCBAwouldcontinue
AnexistingCBAwould
tobevalid.Thelocal
continuetobevalidas
chapterwillnotloseits
theLOcancontinue
personality,unlessit
administeringthenCBA.
registersanew.
EntitlementtounionduesafterDisaffiliation
Unionduesmayno
LOentitledtotheunion
longerbecollectedas
duesandnotthe
therewouldnolongerbe
federationfromwhich
anylaborunionthatis
theLOdisaffiliated.
allowedtocollectsuch
unionduesfromtheEes.
Q:Whatistheformofthedecisionofthedenialof
applicationforregistration?
A:Itshallbe:
1. Inwriting
2. Stating in clear terms the reason for the
decision
3. Applicantunionmustbefurnishedacopy
ofsaiddecision.
Q:Isthedenialofregistrationappealable?
A:Yes.
1. Decisions of the Regional Office shall be
appealabletotheBLRandCA.
2. The BLRs decisions on cases appealed
from Regional Director are final and not
appealabletotheSLE.
3. Decisions of the BLR denying the
registration of a LO (federation or
national union) is appealable to the SLE
within 10 days from receipt of the
decision,ongroundsof:
a. Graveabuseofdiscretion;or
b. Grossincompetence.
4. DecisionofSLEappealabletoCA.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whocancelsthecertificateofregistration?
A: The certificate of registration of any LLO,
whethernationalorlocal,maybecancelledbythe
BLR, after due hearing, only on the grounds
specifiedinArt.239.(asamendedbyR.A.9481)
Q:Whatistheeffectofapetitionforcancellation
orofunionregistration?
A: It shall not suspend the proceedings for
certification election (CE) nor shall it prevent the
filingofCE.
Incaseofcancellation,nothinghereinshallrestrict
the right of the union to seek just and equitable
remediesintheappropriatecourts.
Q: Where is a petition for cancellation of
registration or application for voluntary
dissolutionfiled?
A:
1.
2.
2.
Q:Whatistheeffectofcancellationofregistration
if the cancellation is made in the course of the
proceedings?
A: Where a labor union is a party in a proceeding
and later it loses its registration permit in the
course or during the pendency of the case, such
union may continue as party without need of
substitution of parties, subject however to the
understanding that whatever decision may be
renderedwillbebindingonlyuponthosemembers
oftheunionwhohavenotsignifiedtheirdesireto
withdrawfromthecasebeforeitstrialanddecision
onthemerits.
Note: Rationale: Principle of agency is applied the
Eesaretheprincipals,andtheLOismerelyanagentof
the former, consequently, the cancellation of the
unionsregistrationwouldnotdeprivetheconsenting
memberEesoftheirrighttocontinuethecaseasthey
areconsideredastheprincipals.
Q:Whatarethegroundsforcancellationofunion
registration?
A:
1. Misrepresentation, false statement or
fraudinconnectionwiththe:
a. Adoption or application of the
constitution and bylaws or
amendmentsthereto
b. Minutesofratificationand
c. Listofmemberswhotookpartinthe
ratification;
d. Electionofofficers
e. Minutes of the election of officers
and
f. Listofvoters(Art.239asamended)
Note:Apronouncementastothelegalityofthestrike
isnotwithinthemeaningofArt.239oftheLC.
141
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
3.
4.
142
Note:Failuretosubmitreportorialrequirementsisno
longer a ground for cancellation but shall subject the
erring officers or members to suspension, expulsion
from membership, or any appropriate penalty (Art.
242A,asinsertedbyR.A.9481).
Q:Whatisthesuccessorininterestdoctrine?
A:
GR: It is when an Er with an existing CBA is
succeeded by another Er, the successorin
interest who is the buyer in good faith has no
liability to the Ees in continuing employment
and the bargaining agreement because these
contractsareinpersonam.
XPNs:
1. When the successorininterest expressly
assumesanobligation;
2. The sale is a device to circumvent the
obligation;or
3. Thesaleortransferismadeinbadfaith.
(a)SubstitutionaryDoctrine
Q:Whatisthesubstitutionarydoctrine?
A: It is where there occurs a shift in the Ees union
allegiance after the execution of a collective
bargaining (CB) contract with the Er, the Ees can
change their agent (labor union) but the CB
contract which is still subsisting continues to bind
the Ees up to its expiration date. They may
however, bargain for the shortening of said
expirationdate.
Note: The Er cannot revoke the validly executed CB
contract with their Er by the simple expedient of
changing their bargaining agent. The new agent must
respectthecontract.(BenguetConsolidatedInc.v.BCI
EesandWorkersUnionPAFLU,G.R.No.L24711,April
30,1968)
Itcannotbeinvokedtosupportthecontentionthata
newlycertifiedCBagentautomaticallyassumesallthe
personalundertakingsoftheformeragentliketheno
strikeclauseintheCBAexecutedbythelatter.
(8)UnionDuesandSpecialAssessments
(a)UnionDues
Q:Whatareuniondues?
A:Theseareregularmonthlycontributionspaidby
the members to the union in exchange for the
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
XPNs:
1. FormandatoryactivitiesundertheLC
2. Foragencyfees
3. Whennonmembersoftheunionavailof
thebenefitsoftheCBA:
a. Nonmembers may be assessed
unionduesequivalenttothatpaidby
unionmembers;
b. Only by board resolution approved
by majority of the members in
general meeting called for the
purpose.
A:
1. Authorization by a written resolution of
themajorityofallmembersatthegeneral
membership meeting duly called for that
purpose;
2. Secretarys record of the minutes of the
meeting,whichmustincludethe:
a. Listofmemberspresent
b. Votescast
c. Purposeofthespecialassessments
d. Recipientofsuchassessments;
3. Individualwrittenauthorization tocheck
off duly signed by the Ee concerned to
levysuchassessments.
SpecialAssessment
Howapproved
(UnionDues)
Byobtainingtheindividual Bywrittenresolution
approvedbymajorityof
writtenauthorizationduly
allthemembersatthe
signedbytheEewhich
meetingcalledforthat
mustspecify:
purpose.
1. Amount
2. Purpose
3. Beneficiary
Exceptiontosuchrequirement
(b)SpecialAssessments
143
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
UnionDues
Isdeductedfrom
membersforthe
paymentofuniondues
Maynotbededucted
fromthesalariesofthe
unionmemberswithout
thewrittenconsentof
theworkersaffected.
Noexception;written
resolutionismandatory
inallinstances.
(9)AgencyFees
Q:Whatisanagencyfee?
A:Itisanamountequivalenttouniondues,whicha
nonunion member pays to the union because he
benefitsfromtheCBAnegotiatedbytheunion.
Note:AgencyfeecannotbeimposedonEesalreadyin
the service and are members of another union. If a
closed shop agreement cannot be applied to them,
neither may an agency fee, as a lesser form of union
security, be imposed to them. Payment by nonunion
membersofagencyfeesdoesnotamounttoanunjust
enrichment basically the purpose of such dues is to
avoid discrimination between union and nonunion
members.
2.RIGHTTOCOLLECTIVEBARGAINING
Q:Whatiscollectivebargaining(CB)?
A:
1. It is the process of negotiation by an
organization or group of workmen, in
behalfofitsmembers,withtheemployer
(Er), concerning wages, hours of work,
and other terms and conditions of
employmentand
2. Thesettlementofdisputesbynegotiation
between an Er and the representative of
hisemployees(Ee)
Note:
GR:Nocourtoradministrativeagencyorofficial
shallhavethepowertosetorfixwages,ratesof
pay,hoursofwork,orothertermsandconditions
ofemployment
A:
Theemployeeispartofthebargainingunit
Heisnotamemberoftheunion
HepartookofthebenefitsoftheCBA
XPNs:AsotherwiseprovidedundertheLC:
1.
Note:TheindividualauthorizationrequiredunderArt.
242, par. O of the LC shall not apply to the non
members of the recognized collective bargaining
agent.
2.
3.
Q:Distinguishunionduesfromagencyfees.
A:
144
Maybedeductedfrom
thesalaryoftheEes
withouttheirwritten
consent.
Q:WhataretherequisitesforassessmentofAgency
fees(Art.248[e],LC)?
1.
2.
3.
AgencyFee
Isdeductedfromnon
membersofthe
bargainingagent(union)
fortheenjoymentofthe
benefitsundertheCBA.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:WhoarethepartiestoaCB?
A:
1. Employer
2. Employees, represented by the exclusive
bargainingagent
A:
1. Possession of the status of majority
representation of the employees
representative in accordance with any of
the means of selection or designation
providedfortheLaborCode
2. Proofofmajorityrepresentation
3. AdemandtobargainunderArt.250(a)of
the LC. (Kiok Loy v. NLRC, G.R. No. L
54334,Jan.22,1986)
a.DutytoBargainCollectively
A:OnlyaftertheunionrequeststheErtobargain.If
thereisnodemand,theErcannotbeindefault.
Wherethereisalegitimaterepresentationissue,there
isnodutytobargaincollectivelyonthepartoftheEr
(LakasngmgaManggagawangMakabayanv.Marcelo
Enterprises,G.R.No.L38258,Nov.19,1982)
Q:Whatisazipperclause?
Q:Whenshallbargainingcommence?
Q:WhatistheprocedureinCB?
A:Whenapartydesirestonegotiateanagreement:
Note:DuringtheconciliationproceedingintheNCMB,
the parties are prohibited from doing any act which
may disrupt or impede the early settlement of
disputes.(Art.250[d],LC)
Q:WhatarethestagesinCB?
A:
145
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2.
3.
4.
5.
6.
7.
8.
3.
4.
Q:Whatarethelimitationstothedutytobargain
collectively?
A:
1. Such duty does not compel any party to
agree to a proposal or to make any
concession.
146
2.
Q:Mayeitherpartybargaintoanimpasse?
A:Itdepends:
Q:Whatisthetestofbargaininginbadfaith?
Note:WiththeexecutionoftheCBA,BFcannolonger
be imputed upon any of the parties thereto. All
provisions in the CBA are supposed to have been
jointly and voluntarily incorporated therein by the
parties. This is not a case where private respondent
exhibited an indifferent attitude towards CB because
the negotiations were not the unilateral activity of
petitionerunion.TheCBAisgoodenoughthatprivate
respondent exerted reasonable effort of GF
bargaining. (Samahang Manggagawa sa Top Form
ManufacturingUnited Workers of the Phils v. NLRC,
G.R.No.113856,Sept.7,1998)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whatisadeadlock?
A:Thepartiesmay:
A:
1. When there is a CBA the duty to bargain
collectively shall also mean that neither
party shall terminate nor modify such
agreementduringitslifetime.
2. Eitherpartycanserveawrittennoticeto
terminate or modify the agreement at
least60dayspriortoitsexpirationdate.
3. Itshallbethedutyofbothpartiestokeep
the status quo and to continue in full
forceandeffectthetermsandconditions
Q:WhatistheautomaticrenewalclauseofCBAs?
A:AlthoughaCBAhasexpired,itcontinuestohave
legaleffectsasbetweenthepartiesuntilanewCBA
hasbeenenteredinto(Pier & Arrastre Stevedoring
Services, Inc. v. Confessor, G.R. No. 110854,
February 13, 1995). This is so because the law
makes it a duty of the parties to keep the status
quo and to continue in full effect the terms and
conditions of the existing agreement until a new
agreementisreachedbytheparties.(Art.253,LC).
(2008BarQuestion)
Q:Whatmaybedoneduringthe60dayfreedom
period?
A:
1. A labor union may disaffiliate from the
mother union to form a local or
independentuniononlyduringthe60day
freedom period immediately preceding
theexpirationoftheCBA.
2. Eitherpartycanserveawrittennoticeto
terminate or modify agreement at least
60dayspriortoitsexpirationperiod.
3. A petition for certification election may
befiled.
Q:WhentofileCBA?
A:Within30daysfromexecutionofCBA.
Q:Whataretherequirementsforregistration?
3.
CBA
A statement that the CBA was posted in
at least 2 conspicuous places in the
establishment concerned for at least 5
daysbeforeitsratification
Statement that the CBA was ratified by
the majority of the Ees in the bargaining
unit.
Q:Whatisasingleenterprisebargaining?
147
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:WhatisamultiErbargainingscheme?
Q:WhatisthedurationofaCBA?
A:
1. Withrespecttotherepresentationaspect
(referstotheidentityandmajoritystatus
of the union that negotiated the CBA as
the exclusive bargaining representative):
5years
2. Withrespecttoallotherprovisions(refers
to the rest of the CBA, economic as well
as noneconomic provisions other than
representationalprovisions):3yearsafter
theexecutionoftheCBA
Q:WhataretheeconomicprovisionsofaCBA?
A:
1. Wages
2. Familyplanning
3. Effectivityoftheagreement
4. Other terms and conditions of
employment
A:
1. Coverageofthebargainingunit
2. Unionsecurityclauses
3. Management
prerogatives
and/or
rights/responsibilitiesofemployees
4. Grievance machinery and voluntary
arbitration
5. Nostrikenolockoutprovision
Q:Whatistheeffectivityandretroactivitydateof
othereconomicprovisionsoftheCBA?
A:
1. If the CBA is the very first for the
bargainingunit,thepartieshavetodecide
theCBAeffectivitydate.
2. Thosemadewithin6monthsafterdateof
expiry of the CBA are subject to
automatic retroaction to the day
immediatelyfollowingthedateofexpiry.
148
3.
Q:MaytheeconomicprovisionsofanexistingCBA
be extended beyond the 3 year period as
prescribed by law in the absence of a new
agreement?
A:Yes.Undertheprincipleofholdover,untilanew
CBAhasbeenexecutedbyandbetweentheparties,
they are duty bound to keep the status quo and
mustcontinueinfullforceandeffectthetermsand
conditionsoftheexistingagreement.Thelawdoes
notprovideforanyexceptionorqualificationasto
which of the economic provisions of the existing
agreement are to retain force and effect.
Therefore, it must be encompassing all the terms
and condition in the said agreement. (New Pacific
Timberv.NLRC,G.R.No.124224,Mar.17,2000)
Q: Mindanao Terminal Company and respondent
union has an existing CBA which was about to
expire. Thus, negotiations were held regarding
certain provisions of the CBA which resulted in a
deadlock. Thus the union filed a notice of strike.
During the conference called by the NCMB the
companyandtheunionwereabletoagreeonall
of the provisions of the CBA except for one.
However, the last unresolved provision was
subsequently settled but no CBA was signed.
Hence,intherecordsoftheMediationArbiter,all
issues were settled before the lapse of the 6
monthperiodaftertheexpirationoftheoldCBA.
DoesthesigningoftheCBAdeterminethedateit
wasenteredintowithinthe6monthperiod?
A:No.ThesigningoftheCBAdoesnotdetermine
whethertheagreementwasenteredintowithinthe
6 month period from the date of expiration of the
old CBA. In the present case, there was already a
meeting of the minds between the company and
the union prior to the end of the 6 month period
after the expiration of the old CBA. Hence, such
meeting of the mind is sufficient to conclude that
anagreementhasbeenreachedwithinthe6month
period as provided under Art. 253A of the LC.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Grievancemachinery
Voluntaryarbitration
Wages
Hoursofwork
Familyplanning
Ratesofpay
Mutualobservanceclause
Q:Whatisgrievance?
A:Itisanyquestionbyeithertheemployerorthe
union
regarding
the
interpretation
or
implementation of any provision of the CBA or
interpretation or enforcement of company
personnelpolicies.(Sec.1[u],RuleI,BookV,IRR)
A:
1. Provisions that will ensure the mutual
observanceofitstermsandconditions.
2. A machinery for adjustment and
resolutionofgrievancesarisingfromthe:
a. Interpretation/implementation of
theCBAand
149
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Interpretation/ enforcement of
company personnel policies. (Art.
260,par.1).
2.
(1)GrievanceProcedure
Q:Whatisgrievancemachinery?
Q:Howisgrievancemachineryestablished?
A:
1. Agreementbytheparties
2. Agrievancecommitteecomposedofat
least 2 representatives each from the
members of the bargaining unit and the
employer, unless otherwise agreed upon
bythepartiesshallbecreatedwithin10
daysfromthesigningofCBA
Q:Whatisgrievanceprocedure?
A:Theyshallautomaticallybereferredtovoluntary
arbitration prescribed in the CBA. (Art. 260, par.2,
LaborCode)
Eitherpartymayservenoticeupontheotherofits
decisiontosubmittheissuetovoluntaryarbitration
(VA):
1. If the party upon whom such notice is
served fails/refuses to respond within 7
150
daysfromreceipt,VA/paneldesignatedin
the CBA shall commence arbitration
proceedings
If the CBA does not designate or if the
parties failed to name the VA/panel, the
regional branch of NCMB appoints
VA/panel
(2)VoluntaryArbitration
Q:Whatisvoluntaryarbitration?
Q:Whatisthebasisforvoluntaryarbitrationand
itsrationale?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
(3)NoStrikeNoLockoutClause
Q:WhendoestheNoStrikeNoLockoutclausein
theCBAapply?
(4)LaborManagementCouncil
A:TheDepartmentshallpromotetheformationof
labormanagement councils in organized and
unorganized establishments to enable the workers
to participate in policy and decisionmaking
processes in the establishment, insofar as said
processes will directly affect their rights, benefits
and welfare, except those which are covered by
collective bargaining agreements or are traditional
areasofbargaining.
c.ULPinCollectiveBargaining
Q:WhataretheformsofULPinbargaining?
A:
1.
2.
3.
4.
5.
6.
Failuretomeetandconvene
Evading the mandatory subjects of
bargaining.
Bad faith in bargaining (boulwarism),
including failure to execute the CBA if
requested
GrossviolationoftheCBA
SurfaceBargaining
Blueskybargaining
Note:ViolationsofCBA,exceptthosewhicharegross
in character, shall no longer be treated as ULP but a
grievanceunderCBA.(Art.261,LC,Silvav.NLRC,G.R.
No.110226,June191997)
Q:Whenisthererefusaltobargain?
A:Aunionviolatesitsdutytobargaincollectivelyby
entering negotiations with a fixed purpose of not
reachinganagreementorsigningacontract.
Q:Whatisfeatherbedding/makeworkactivities?
A:Itreferstothepracticeoftheunionoritsagents
incausingorattemptingtocauseanemployer(Er)
to pay or deliver or agree to pay or deliver money
or other things of value, in the nature of an
exaction, for services which are not performed or
not to be performed, as when a union demands
that the Er maintain personnel in excess of the
lattersrequirements.
Note:Itisnotfeatherbeddingiftheworkisperformed
nomatterhowunnecessaryoruselessitmaybe.
Q:Whatisthesweetheartdoctrine?
A:ItiswhenaLOasksfororacceptsnegotiationsor
attysfeesfromemployersaspartofthesettlement
ofanyissueinCBoranyotherdispute.
Note:TheresultingCBAisconsideredasasweetheart
contractaCBAthatdoesnotsubstantiallyimprove
theemployeeswagesandbenefitsandwhosebenefits
arefarbelowthanthoseprovidedbylaw.
Q:Whatisblueskybargaining?
A: It is defined as making exaggerated or
unreasonableproposals.
Note:Whetherornottheunionisengagedinbluesky
bargainingisdeterminedbytheevidencepresentedby
the union as to its economic demands. Thus, if the
unionrequiresexaggeratedorunreasonableeconomic
demands,thenitisguiltyofULP.(StandardChartered
Bankv.Confessor,G.R.No.114974,June16,2004)
151
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
1.
2.
d.UnfairLaborPractice
(1)ULPofEmployers
A:
1. Interference
2. Yellowdogcondition
3. Contractingout
4. Companyunionism
5. Discrimination for or against union
membership
6. Discriminationbecauseoftestimony
7. Violationofdutytobargain
8. Paidnegotiation
9. GrossviolationofCBA
(a)Interference
Q:Whatismeantbyinterference?
A:TheactofErtointerferewith,restrainorcoerce
Eesintheexerciseoftheirrighttoselforganization.
Q:Whatisthetestofinterference?
A:WhethertheErhasengagedinconductwhich,it
mayreasonablybesaid,tendstointerferewiththe
freeexerciseoftheEesrighttoselforganization.
Note:DirectevidencethatanEewasinfactintended
orcoercedbythestatementsofthreatsoftheErisnot
necessaryifthereisareasonableinterferencethatthe
antiunion conduct of the Er does have an adverse
effect on selforganization and CB. (The Insular Life
AssuranceNATUv. The InsularLife Co.Ltd, G.R.No.L
25291,Jan.30,1971)
Q:Whatisthetotalityofconductdoctrine?
A:ItstatesthattheculpabilityofErsremarksisto
be evaluated not only on the basis of their
implications, but against the background of and in
conjunctionwithcollateralcircumstances.
152
3.
Thecircumstancesunderwhichtheywere
uttered
The history of the particular Ers labor
relationsorantiunionbias
Their connection with an established
collateralplanofcoercionorinterference.
(The Insular Life AssuranceNATU v. The
Insular Life Co. Ltd, G.R. No.L25291, Jan.
30,1971)
Q:Whatisalockout?
Q:WhendoeslockoutorclosureamounttoULP?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
1.
2.
3.
Outrightandunconcealedintimidation
In order that interrogation would not be
deemedcoercive:
a. The Er must communicate to the Ee
thepurposeofquestioning
b. Assure him that no reprisal would
takeplace
c. ObtainEeparticipationvoluntarily
d. Must be free from Er hostility to
unionorganization
e. Mustnotbecoerciveinnature
IntimidatingexpressionsofopinionbyEr
(b)YellowDog
Q:Whatisayellowdogcondition?
A:Itistorequireasaconditionofemploymentthat
apersonoranEeshallnotjoinalabororganization
orshallwithdrawfromonetowhichhebelongs.
Q:Whatisayellowdogcontract?
A:Itisapromiseexactedfromworkersascondition
of employment that they are not to belong to or
attempt to foster a union during their period of
employment.
Q:Isyellowdogcontractvalid?
A:No.Itisnullandvoidbecause:
1. It is contrary to public policy for it is
tantamounttoinvoluntaryservitude.
2. It is entered into without consideration
for Ees in waiving their right to self
organization.
3. Ees are coerced to sign contracts
disadvantageoustotheirfamily.
Q:Whatarethe3usualprovisionsunderayellow
dogcontract?
A:
1. ArepresentationbytheEethatheisnota
memberofalaborunion.
2. A promise by the Ee not to join a labor
union.
3. A promise by the Ee that upon joining a
laborunion,hewillquithisemployment.
(c)ContractingOut
Q:WhatiscontractingoutasaformofULP?
A:
GR:ContractingoutservicesisnotULPperse.
XPNs:ItisULPonlywhentheff.exists:
1. The services contracted out are being
performedbyunionmembers;and
2. Such contracting out interferes with,
restrains,orcoerceEesintheexerciseof
theirrighttoselforganization.
Q:Whatisarunawayshop?
153
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:IsresortingtorunawayshopULP?
(d)CompanyUnionism
Q:Whatisacompanyunion?
Q:Whataretheformsofcompanyunionism?
A:
1. Initiationofthecompanyunionideaby:
a. Outright formation by Er or his
representatives
b. Eeformationonoutrightdemandor
influencebyErand
c. Manageriallymotivatedformationby
Ees
2. Financialsupporttotheunionby:
a. Erdefraysunionexpenses
b. Pays attys feesto the attorneywho
drafted the Constitution or bylaws
oftheunion.
3. Er
encouragement
assistance
4. Supervisory
assistance
Soliciting
membership, permitting union activities
during work time or coercing Ees to join
the union by threats of dismissal or
demotion
154
A: ItisconsideredULPbecausetheofficerswillbe
beholdentotheErsandtheywillnotlookafterthe
interestofwhomtheyrepresent.
(e)Discriminationfororagainstunionmembership
A:Itistodiscriminateinregardtowages,hoursof
work and other terms and conditions of
employment in order to encourage or discourage
membershipinanylabororganization.
Q:WhenisadischargeofanEediscriminatory?
Q:Jobohas3hotels,theTaalVistaLodge,Manila
Hotel and the Pines Hotel. Among the 3, Pines
HotelhadmoreEesandtheonlyonewithalabor
organization(LO).Whenthebonuswasdistributed
among the 3 hotels, Pines Hotel Ees received the
leastamountcomparedtotheEesofManilaHotel
and Taal Vista Lodge. Did the company commit
ULP?
A:Yes.Thesharingofthebonusesisdiscriminatory
andsuchconstituteULP.ThePinesHotelEeswould
bereceivingfewerbonusescomparedtotheEesof
Taal Vista Lodge and Manila Hotel where neither
has a LO nor does the complainant union has a
member. Taking into account that Pines Hotel is
realizingprofitcomparedtothatofTaalVista.Same
analogyappliesinthesalaryincrease.(ManilaHotel
Co. v. Pines Hotel Ees Assn, G.R. No.L30139, Sep.
28,1972)
Q:Whencantherebeavaliddiscrimination?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
1. Failureorrefusaltomeetandconvene
2. Evading the mandatory subject of
bargaining
3. Badfaith(BF)bargaining,includingfailure
toexecutetheCBAifrequested
4. GrossviolationoftheCBA
155
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
1. Delaying negotiations by discussing
unrelatedmatters
2. Refusaltoacceptrequesttobargain
3. Rejecting a unions offer to prove its
majorityclaim
4. Shutdowntoavoidbargaining
5. Engaginginsurfacebargaining
beingamajorityunion.(1997BarQuestion)
Note:AlltheULPactsmusthavearelationtotheEes
exercise of their right to selforganization. Antiunion
orantiorganizationmotivemustbeprovedbecauseit
isadefinitionalelementofULP.
A: No.ItisnotanULPnottobargainwithaunion
which has not presented any proof of its majority
status. The LC imposes on an Er the duty to
bargain collectively only with a legitimate labor
organizationdesignatedorselectedbythemajority
oftheEesinanappropriateCBunit.ItisnotaULP
for an Er to ask a union requesting to bargain
collectively that such union first show proof of its
156
Q:Whatissurfacebargaining?
A: It is the act of going through the motions of
negotiating without any legal intent to reach an
agreement. It involves the question of whether or
nottheErsconductdemonstratesanunwillingness
to bargain in good faith or is merely hard
bargaining. (Standard Chartered Bank v. Confessor,
G.R.No.114974,June16,2004)
Note: Occurs when the Er constantly changes its
positionovertheagreement.
(g)PaidNegotiation
Q:Whatismeantbypaidnegotiationasaformof
ULP?
A:Itistheactoftheemployertopaynegotiationor
attys fees to the union or its officers or agents as
part of the settlement of any issue in collective
bargainingoranyotherdispute.
(h)GrossViolationofCBA
Q: When is the violation of CBA considered as
ULP?
A:OnlywhentheviolationisgrossTheremustbe
a flagrant and/or malicious refusal to comply with
theeconomicprovisionoftheCBA.
Q:AcomplaintforULPwasfiledbyaprosecutorof
the CIR against Alhambra company, upon the
charges of the union that 15 of its members
employedasdriversandhelpersarediscriminated
for being deprived of the benefits under the CBA
with no justifiable reason other than union
membership.IsthecompanyguiltyofULP?
A: Yes. The refusal to extend the benefits and
privileges under the CBA to Ees constitutes ULP.
Failure on the part of the company to live up in
good faith to the terms of the CBA is a serious
violation of the duty to collectively bargain which
againamountstoULP.The15driversandhelpers
are found to be Ees of the company, hence, the
benefit and privileges under the CBA should be
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:WhatarethereliefsavailableinULPcases?
A:Thefollowingreliefsmaybeavailedof:
1. Ceaseanddesistorder
2. Affirmativeorder
3. Courtmayordertheemployertobargain.
CBAmaybeimposed.
4. Strikebyunionmembers
Note:ULPcasesarenotsubjecttocompromiseinview
of the public interest involve. The relation between
capital and labor is not merely contractual. They are
impressed with public interest that labor contracts
mustyieldtocommongood.
A: Yes,becauseULPsarenotonlyviolationsofthe
civil rights of both labor and management but are
alsocriminaloffensesagainstthe State which shall
be subject to prosecution and punishment. (Art.
247LC;SeealsoB.P.Blg.386as amendedbyR.A.
6715).However,thecriminalaspectcanonlybe
filed when the decision of the labor tribunals,
finding the existence of ULP, shall have become
finalandexecutory.(2005BarQuestion)
(2)ULPofLaborOrganizations
Q:WhataretheULPofLOs?
A: It shall be ULP for a LO, its officers, agents or
representatives:
1.
2.
3.
4.
5.
6.
Q:IsinterferencebyaLOanULP?
A:No,becauseinterferencebyaLOintheexercise
of the right to organize is itself a function of self
organizing.
Q:Whatareexamplesofinterferencewhichdoes
notamounttoULP?
A:
1. Union campaigns for membership even
amongmembersofanotherunion
2. Filingbyaunionofapetitiontodislodge
anincumbentbargainingunion
3. A bargaining union, through a union
security clause, requires an incoming
employeetojointheunion.
Q:MayaunioncoerceEestojoinastrike?
A:No.Aunionviolatesthelawwhen,torestrainor
coercenonstrikersfromworkingduringthestrike,
it:
1. Assaultsorthreatenstoassaultthem
2. Threatensthemwiththelossoftheirjobs
3. Blockstheiringresstooregressfromthe
plant
4. Damages nonstrikers automobiles or
forcesthemoffthehighway
5. Physicallypreventingthemfromworking
6. Sabotages the Ers property in their
presence,
thereby
creating
an
atmosphereoffearorviolence
7. Demonstrates loudly in front of a non
strikers residence with signs and shouts
accusingthenonstrikerofscabbing
8. Holdingthenonstrikeruptoridicule
9. Seekingpubliccondemnationofthenon
striker
Q:Whatisacaseofunioninduceddiscrimination
bylabororganization(LO)?
157
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Whatisaconcertedaction?
A: It is an activity undertaken by 2 or more
employees,byoneonbehalfoftheothers.
Q:Areallconcertedactionsstrikes?
A:Notallconcertedactivitiesarestrikes.Theymay
only be protest actions they do not necessarily
cause work stoppage by the protesters. A strike in
contrast is always a group action accompanied by
workstoppage.
Q: The Ees wrote and published a letter to the
bank president, demanding his resignation onthe
grounds of immorality, nepotism, favoritism and
discrimination in the appointment andpromotion
ofbankEes.Thebankdismissedthe8Eesonthe
allegedlibelousletter.WeretheEesengagedina
concertedactivity?
158
A:Yes,assumingthattheyactedintheirindividual
capacities when they wrote the letter, they were
nonethelessprotected,fortheywereengagedina
concertedactivity,intheirrightofselforganization
that includes concerted activity for mutual aid and
protection.Anyinterferencemadebythecompany
willconstituteasULP.
Thejoininginprotestsordemands,evenbyasmall
group of Ees, if in furtherance of their interests as
such is a concerted activity protected by the
IndustrialPeaceAct.Itisnotnecessarythatunion
activitybeinvolvedorthatcollectivebargainingbe
contemplated. (Republic Savings Bank v. CIR, G.R.
No.L20303,Oct.31,1967)
Q:Whatisastrike?
A:Itmeansanytemporarystoppageofworkbythe
concerted action of employees as a result of an
industrialorlabordispute.(Sec.1[uu],RuleI,Book
V,IRR)
Q:Whatisthepurposeofastrike?
Q:Whatisalockout?
Q:Whatispicketing?
A:Itistheactofmarchingtoandfrotheemployers
premises which is usually accompanied by the
display of placard and other signs, making known
thefactsinvolvedinalabordispute.
freedomofspeechguaranteedbytheConstitution.
If peacefully carried out, it can not be curtailed
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Istherighttopicketanabsoluteright?
Therighttopeacefulpicketingshallbeexercisedby
the workers with due respect for the rights of
others.No person engaged in picketing shall
commit any act of violence, coercion or
intimidation.Stationary picket, the use of means
like placing of objects to constitute permanent
blockade orto effectively close points of entry or
exitincompanypremisesareprohibitedbylaw.
Q:Whoisastrikebreaker?
Q:Whatisastrikearea?
A:Itmeanstheestablishment,warehouses,depots,
plants or offices, including the sites or premises
usedasrunawayshops,oftheErstruckagainst,as
well as the immediate vicinity actually used by
picketing strikers in moving to and fro before all
points of entrance to and exit from said
establishment.(Sec.1[vv],RuleI,BookV,IRR)
Q:Whatisaninternaluniondispute?
A:Itincludesalldisputesorgrievancesarisingfrom
anyviolationofordisagreementoveranyprovision
oftheconstitutionandbylawsofaunion,including
any violation of the rights and conditions of union
membershipprovidedforinthisLC.(Art.212[q])
Q:Whatisaboycott?
A: It is an attempt, by arousing a fear of loss, to
coerce others, against their will to withhold from
one denominated unfriendly to labor their
beneficialbusinessintercourse.
Q:Whatisaslowdown?
A: It is a method by which ones employees,
without seeking a complete stoppage of work,
retard production and distribution in an effort to
compelcompliancebytheemployerwiththelabor
demandsmadeuponhim.
Q: Does an overtime boycott or work
slowdown by the employees constitute a strike
and hence a violation of the CBAs No strike, no
lockoutclause?
Q:Whatarethecharacteristicsofastrike?
A:
1. ExistenceofanErEerelationship
2. Existenceofalabordispute
3. Employment relation is deemed to
continuealthoughinastateofbelligerent
suspension
4. Temporaryworkstoppage
5. Workstoppageisdonethroughconcerted
action
6. The striking group is a legitimate labor
organization; in case of a bargaining
deadlock, it must be the employees sole
bargainingrepresentative
159
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:No,anEehasnoinherentrighttoseniority.He
hasonlysuchrightsasmaybebasedonacontract,
statute, or an administrative regulation relative
thereto. Seniority rights which are acquired by an
Ee through longtime employment are contractual
and not constitutional. The discharge of an Ee
thereby terminating such rights would not violate
the Constitution. When the pilots tendered their
respective retirement or resignation and PAL
immediately accepted them, both parties mutually
terminated
the
contractual
employment
relationship between them thereby curtailing
whatever seniority rights and privileges the pilots
hadearnedthroughtheyears.
Q:DoestheactionoftheEesofPALfallunderthe
ambitofconcertedactionsprotectedbylaw?
Q:Whatisalabordispute?
A:
160
1.
2.
3.
4.
Ifreliefissoughtagainsthimorit,and
He or it is engaged in the same industry,
trade, craft, or occupation in which such
disputeoccurs,or
Hasadirectorindirectinteresttherein,or
Is a member, officer, or agent of any
associationcomposedinwholeorinpart
of employees or employers engaged in
suchindustry,trade,craft,oroccupation.
Q:LiwaywayPublicationInc.isasecondsublessee
of a part of the premises of the Permanent
Concrete Products, Inc. It has a bodega for its
newsprintinthesubletpropertywhichitusesfor
its printing and publishing business. The daily
supply of newsprint needed to feed its printing
plant is taken from its bodega. The Ees of the
Permanent Concrete Products Inc. declared a
strike against their company.The union members
picketed, stopped and prohibited Liwayways
trucks from entering the compound to load
newsprintfromitsbodega.
A:Yes,LiwaywayPublicationInc.isnotinanyway
relatedtothestrikingunionexceptforthefactthat
it is the sub lessee of a bodega in the companys
compound.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
existenceoftheunionis
threatened.Itmuststillobserve
themandatory7daystrikeban
periodbeforeitcanstagea
validstrike
Q:Whatarethedifferentformsofstrike?
A:
1.
a.FormsofConcertedActivities
Q:Whatarethetypesofstrike?
2.
A:
1.
2.
3.
Q:Distinguishbetweenaneconomicstrikeandan
ULPstrike.
A:
ULPSTRIKE
Astonature
Involuntarystrike;theLO is
forcedtogoonstrikebecause
Voluntarystrike
oftheULPcommittedagainst
becausetheEewill
thembytheEr.Itisanactof
declareastriketo
selfdefensesincetheEesare
compel
beingpushedtothewalland
managementto
theironlyremedyistostagea
grantitsdemands
strike
Whowillinitiate
TheCBagentof
theappropriate
EithertheCBagentortheLLOin
bargainingunitcan
behalfofitsmembers
declarean
economicstrike
Astothecoolingoffperiod
30daysfrom
noticeofstrike
beforethe
15daysfromthefilingofthe
intendeddateof
noticeofstrike
actualstrike
subjecttothe7
daystrikeban
Astotheexceptiontothecoolingoffperiod
Noexception
Thecoolingoffperiodmaybe
mandatory
dispensedwith,andtheunion
maytakeimmediateactionin
caseofdismissalfrom
Note:noticeof
employmentoftheirofficers
strikeandstrike
dulyelectedinaccordancewith
votemaybe
theunionsconstitutionandby
dispensedwith;
laws,whichmayconstitute
theymaystrike
unionbustingwherethe
immediately
4.
ECONOMICSTRIKE
5.
6.
7.
Q:Whomaydeclareastrikeorlockout?
A:
1.
2.
161
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Incaseofdismissalfromemploymentof
unionofficerswhichmayconstituteunion
busting, the time requirement for the
filing of the Notice of Strike shall be
dispensed with but the strike vote
requirement, being mandatory in
character, shall in every case be
compliedwith.
c.Requisitesforavalidstrike/lockout
Q:Whataretherequisitesofalawfulstrike/
lockout?
1. Itmustbebasedonavalidandfactual
ground;
3. Incasesofdismissalfromemploymentof
union officers duly elected in accordance
with the union constitution and bylaws,
which may constitute UNION BUSTING
where the existence of the union is
threatened,the15daycoolingoffperiod
shall not apply and the union may take
actionimmediatelyafterthestrikevoteis
conducted and the result thereof
submitted to the Department of Labor
andEmployment.
4.
5.
AstrikeorlockoutVOTEshallbereported
to the NCMBDOLE Regional Branch at
least7daysbeforetheintendedstrikeor
lockoutsubjecttothecoolingoffperiod.
6.
162
7.
Thedisputemustnotbethesubjectofan
assumption of jurisdiction by the
President or the Secretary of Labor and
Employment,
a
certification
for
compulsory arbitration, or submission to
compulsoryorvoluntaryarbitrationnora
subject of a pending case involving the
samegroundsforthestrikeorlockout.
Q:Whatarethevalidgroundsfordeclaringa
strikeorlockout?
Note:Itispossibletochangeaneconomicstrikeintoa
ULP strike. (Consolidated Labor Assn of the Phils. v.
MarsmanandCo.,G.R.No.L17038,July31,1964)
Q:Whatisconversiondoctrine?
Q:Canastrikebeconvertedintoalockout?
A:No,astrikecannotbeconvertedintoapureand
simple lockout by the mere expedient of filing
beforethetrial courtanoticeofoffertoreturnto
work during the pendency of the labor dispute
between the union and the employer. (Rizal
Cement Workers Union v. CIR, G.R. No. L18442,
Nov.30,1962).
A:
1. Sitdown strike Characterized by a
temporaryworkstoppageofworkerswho
seize or occupy property of the Er or
refusetovacatethepremisesoftheEr.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
3.
4.
5.
SlowdownStrikeonaninstallmentplan;
an activity by which workers, without
complete stoppage of work, retard
productionortheirperformanceofduties
and functions to compel management to
granttheirdemands
6.
IllegalItisapoliticalrally
A:Yes.Ees,whohavenolabordisputewiththeirEr
but who, on a day they are scheduled to work,
refuse to work and instead join a welga ng bayan
commit an illegal work stoppage. There being no
showing that the two unions notified the
corporations of their intention, or that they were
allowed by the corporations, to join the welga ng
bayan, their work stoppage is beyond legal
protection.(BIFLEX Phils. Inc. Labor Union (NAFLU)
vs.FILFLEXIndustrialandManufacturingCorp.,G.R.
No.155679,Dec.19,2006)
Q:Whatarethetestsindeterminingthelegalityof
strike?
A:Thefollowingmustconcur:
1. Purpose test the strike must be due to
either bargaining deadlock and/or the
ULP
2. Compliance with the procedural and
substantive reqts of the law. (See
requisitesofavalidstrike)
3. Means employed test It states that a
strike may be legal at its inception but
eventuallybedeclaredillegalifthestrike
is accompanied by violence which is
widespread, pervasive and adopted as a
matter of policy and not mere violence
whichissporadicwhichnormallyoccurin
astrikearea.
Q:Whataretheinstanceswhenastrikeorlockout
cannotbedeclared?
A:Nonstrikableissues:
1. CBAviolationsnotgrossincharacter
2. Grounds involving inter/intraunion
disputes
3. When there is no notice of strike or
lockout or without the strike or lockout
vote
163
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
6.
A:
1. Notice of strike filed with the NCMB
taking into consideration the coolingoff
period
2.
3.
164
Strikevote
a. Thedecisiontodeclareastrikemust
be approved by a majority of the
total union membership in the
bargainingunitconcerned.
b. It must be obtained by secret ballot
throughmeetingsorreferendacalled
forthepurpose.
c. Its purpose is to ensure that the
intendedstrikeisamajoritydecision.
The report on the strike vote must
besubmittedtoDOLEatleast7days
beforetheintendedstrikesubjectto
thecoolingoffperiod.
d. The regional branch may supervise
theconductofthesecretballotingat
4.
5.
FurnishtheregionalbranchoftheNCMB
with a notice to conduct a strike vote, at
least 24hours before the meeting for
such purpose (Sec. 10, Rule XXII of the
OmnibusRulesoftheNLRC).
7Daystrikebana7daywaitingperiod
before the date of the purported strike
(within which the union intending to
conduct a strike must at least submit a
report to DOLE as to the result of the
strikevote)
Note:TogiveDOLEanopportunitytoverify
whether the projected strike really carries
theimprimaturofthemajorityoftheunion
members in addition to the coolingoff
period before the actual strike. (Lapanday
Workers Union, et.al. v. NLRC, G.R. Nos.
9549497,Sep.7,1995)
Q:Whatisacoolingoffperiod?
A:Thestrikemaybedeclaredillegal.
A:
1. Inform the NCMB of the intent of the
uniontoconductastrikevote;
2. Give the NCMB ample time to decide on
whether or not there is a need to
supervise the conduct of the strike vote
to prevent any acts of violence and or
irregularities;
3. Ample time to prepare for the
deployment of the requisite personnel.
(Capitol Medical Center v. NLRC, G.R. No.
147080,April26,2005)
Q:Isanostrike/lockoutclauselegal?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whatisapreventivemediationcase?
Q:Whatarethecontentsofthenoticeofstrikeor
lockout?
A:
1. NameandaddressesofEr
2. Unioninvolved
3. Nature of the industry to which the Er
belongs
4. Numberofunionmembers
5. Workersinthebargainingunit
6. Otherrelevantdate
7. In case of bargaining deadlocks:
unresolved issues, written proposals of
the union, counterproposals of the Er
and proof of request for conference to
settledifferences
8. In case of ULP: The acts complained of,
and the efforts taken to resolve the
dispute
Note:NCMBshallinformtheconcernedpartyincase
noticedoesnotconformwiththereqts.
Q:Whatactionwilltheboardtakeonthenoticeof
strikeofstrikeorlockout?
A:
1. Upon receipt of notice, the regional
branchoftheBoardshallexertallefforts
at mediation and conciliation to enable
thepartiestosettlethedisputeamicably.
It shall also encourage the parties to
submit the dispute to voluntary
arbitration.
2.
3.
4.
Q:Wasthestrikeheldbytheunionlegalbasedon
the fact that the notice of strike only contained
generalallegationsofULP?
A:No.RuleXIIISec.4BookVoftheImplementing
RulesoftheLCprovides:IncasesofULP,thenotice
of strike shall as far as practicable, state the acts
complainedofandtheeffortstoresolvethedispute
amicably. (Tiu v. NLRC, G.R. No. 123276, Aug. 18,
1997)
Q: NFSW, the bargaining agent of Central
Azucarera de la Carlota (CAC) rank and file
employees, filed a notice of strike based on non
th
payment of the 13 month pay and 6 days
thereafter they held the strike. A day after the
commencement of the strike, a report of the
strikevote was filed by NFSW with MOLE. CAC
filed a petition to declare the strike illegal due to
noncompliancewiththe15daycoolingofperiod
andthestrikewasheldbeforethelapseof7days
from the submission to the MOLE of the result of
thestrikevote.WasthestrikeheldbyNFSWlegal?
A:No.ThecoolingoffperiodinArt.264(c)andthe
7day strike ban after the strikevote report
prescribed in Art. 264 (f) were meant to be
mandatory.Thelawprovidesthatthelaborunion
may strike should the dispute remain unsettled
untilthelapseoftherequisitenumberofdaysfrom
thefilingofthenotice,thisclearlyimpliesthatthe
union may not strike before the lapse of the
coolingoffperiod.Thecoolingoffperiodisforthe
Ministry of Labor and Employment to exert all
efforts at mediation and conciliation to effect a
voluntarysettlement.
Themandatorycharacterofthe7daystrikebanis
manifest in the provision that in every case the
unionshallfurnishtheMOLEwiththeresultsofthe
votingatleast7daysbeforetheintendedstrike.
Thisperiodistogivetimetoverifythatastrikevote
165
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
166
Q:Whataretheexceptionstothenobackwages
ruleofstrikers?
A:
1. When the Ees were illegally locked thus
compellingthemtostageastrike
2. WhentheErisguiltyofthegrossestform
ofULP
3. WhentheErcommitteddiscriminationin
therehiringofstrikersrefusingtoreadmit
those against whom there were pending
criminalcaseswhileadmittingnonstrikers
who were also criminally charged in
court;
4. When the workers who staged a
voluntary ULP strike offered to return to
work unconditionally but the Er refused
toreinstatethem.(ManilaDiamondHotel
vs.ManilaDiamondHotelEesUnion,G.R.
No.158075,June30,2006)
d.AssumptionofJurisdictionbytheSecretaryof
LabororCertificationoftheLabordisputetothe
NLRCforcompulsoryarbitration
Q: Discuss the assumption of jurisdiction by the
Secretary of Labor and Employment (SLE) on
strikes/lockouts.
A:
1. Discretionary
a. If in his opinion there exists a labor
dispute causing or likely to cause a
strike or lockout in an industry
indispensabletothenationalinterest.
b. He may certify the same to the NLRC
forcompulsoryarbitration
c. Effect Automatically enjoins the
intended or impending strike/lockout
butifonehasalreadytakenplace,all
striking or locked out Ees shall
immediatelyreturntoworkandtheEr
shall immediately resume operations
and readmit all workers under the
same terms and conditions prevailing
before the strike or lockout (Trans
Asia Shipping Lines, Inc.Unlicensed
Crews Ees Union v. CA, G.R. No.
145428,July7,2004)
Note: Amotionforreconsiderationdoesnot
suspend the effects as the assumption order
isimmediatelyexecutory.
2.
Mandatory(within24hours)
a. In labor disputes adversely affecting
the continued operation of hospitals,
clinicsormedicalinstitutions.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Mayassumejurisdictionorcertifyitto
theNLRCforcompulsoryarbitration
c. DutyofstrikingunionorlockingoutEr
to provide and maintain an effective
skeletal workforce of medical and
other health personnel, where
movement and service shall be
unhampered and unrestricted as are
necessary to insure the proper and
adequate protection of the life and
health of its patients most especially
emergency cases for the duration of
thestrikeorlockout(Art.263[g])
Q:Whatdoesthephraseunderthesameterms
andconditionscontemplate?
A:
GR: It contemplates only actual reinstatement.
This is in keeping with the rationale that any
work stoppage or slowdown in that particular
industry can be inimical to the national
economy.
Q:WhatareissuesthattheSLEmayresolvewhen
heassumesjurisdictionoveralabordispute?
A:
1. IssuessubmittedtotheSLEforresolution
and such issues involved in the labor
dispute itself. (St. Scholasticas College v.
Torres,G.R.No.100158,June2,1992)
2. SLE may subsume pending labor cases
before LAs which are involved in the
dispute and decide even issues falling
under the exclusive and original
jurisdictionofLAssuchasthedeclaration
of legality or illegality of strike (Intl.
Pharmaceuticals v. SLE, G.R. Nos. 92981
83,Jan.9,1992)
Q:IsitnecessaryfortheSLEtoissueareturnto
workorderinanassumptionorder?
A:
1. May determine the industries, which are
in his opinion indispensable to national
interest
2. May intervene at any time and assume
jurisdictionoveranysuchlabordisputein
order to settle or terminate the same.
(Art.263[g])
e.NatureofAssumptionOrderorCertification
Order
A:Theassumptionofjurisdictionisinthenatureof
a police power measure. This is done for the
promotionofthecommongoodconsideringthata
prolonged strike or lockout can be inimical to the
national economy. The SLE acts to maintain
industrial peace. Thus, his certification for
compulsory arbitration is not intended to impede
the workers right to strike but to obtain a speedy
settlementofthedispute.(PhiltreadWorkersUnion
v.Confesor,G.R.No.117169,Mar.12,1997)
Art.263(g)doesnotinterferewiththeworkersright
to strike but merely regulates it, when in the
exercise of such right national interest will be
affected. The LC vests upon the SLE the discretion
to determine what industries are indispensable to
nationalinterest.
167
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:DoestheRTChavejurisdictiontodecideonthe
casefiledbythePSBAstudents?
168
WastheSLEcorrectinexceptingfromthereturn
toworkorderthosewhowereterminateddueto
redundancy?
f.EffectofdefianceofAssumptionorCertification
Order
Q:Whatistheeffectofdefiancetothereturnto
workorder?
A:Itshallbeconsideredanillegalactcommittedin
the course of the strike or lockout and shall
authorizetheSLEortheNLRC,asthecasemaybe,
to enforce the same under pain or loss of
employment status or entitlement to full
employment benefits from the lockingout Er or
backwages, damages and/or other positive and/or
affirmative reliefs, even to criminal prosecution
against the liable parties. (Sec. 6, Rule IX, of the
New Rules of Procedure of the NLRC; St.
Scholasticas College v. Torres, G.R. No. 100158,
June2,1992)
g.IllegalStrike
Q:Whenisastrikeillegal?
A:
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
4.
5.
6.
Declaredforanunlawfulpurpose,suchas
inducingtheemployer(Er)tocommitULP
againstnonunionEes;
Employsunlawfulmeansinthepursuitof
its objective, such as widespread
terrorismofnonstrikers;
Declared in violation of an existing
injunction;
Contrary to an existing agreement, such
as a no strike clause or conclusive
arbitrationclause
Q:Whatisgoodfaith(GF)strikedoctrine?
A:Astrikemaybeconsideredlegalwheretheunion
believedthatthecompanycommittedULPandthe
circumstances warranted such belief in GF,
although subsequently such allegations of ULP are
found out as not true. (Bacus v. Ople, GR No. L
56856, Oct. 23, 1984, Peoples Industrial and
CommercialEesandOrganization(FFW)v.Peoples
Industrial and Commercial Corp., G.R. No.37687,
Mar.15,1982)
A:
GR:AstrikegroundedonULPisillegalifnosuch
actsactuallyexist.
XPN:EvenifnoULPactsarecommittedbythe
Er,iftheEesbelieveinGFthatULPactsexistso
as to constitute a valid ground to strike, then
the strike held pursuant to such belief may be
legal. Where the union believed that the Er
committed ULP and the circumstances
warrantedsuchbeliefinGF,theresultingstrike
may be considered legal although,
subsequently, such allegations of ULP were
found to be groundless. (NUWHRAINInterim
Juntav.NLRC,G.R.No.125561,Mar.6,1998)
(1)LiabilityofOfficersoftheUnionandOrdinary
Workers
A:Strikingemployeesareentitledtoreinstatement,
regardless of whether or not the strike was the
consequence of the employers ULP because while
out on strike, the strikers are not considered to
haveabandonedtheiremployment,butratherhave
only ceased from their labor; the declaration of a
strikeisnotarenunciationofemploymentrelation.
Q:Whoarenotentitledtoreinstatement?
A:
Note:Thoseunionmemberswhohavejoinedanillegal
strike but have not committed any illegal act shall be
reinstatedbutwithoutbackwages.
Theresponsibilityfortheillegalactscommittedduring
the strike must be on an individual and not on a
collectivebasis.(FirstCityInterlinkTransportationCo.,
Inc.v.Confesor,G.R.No.106316,May5,1997)
A:
GR:No,evenifsuchstrikewaslegal.
XPN:
1. Where the strikers voluntarily and
unconditionallyofferedtoreturntowork,
but the employer refused to accept the
offerworkersareentitledtobackwages
fromthedatetheirofferwasmade
2. Whenthereisareturntoworkorderand
the Ees are discriminated against other
Ees, workers are entitled to back wages
fromthedateofdiscrimination
3. IncaseofaULPstrike,inthediscretionof
theauthoritydecidingthecase
Q:Whatistheruleinstrikesinhospitals?
A:
1. It shall be the duty of the striking
employees or lockingout employer to
provideandmaintainaneffectiveskeletal
workforce of medical and health
personnelforthedurationofthestrikeor
lockout.
2. SLE may immediately assume jurisdiction
within 24 hours from knowledge of the
169
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q:Moreorless1400Eesofthecompanystageda
masswalkout,allegedlywithoutanybodyleading
them as it was a simultaneous, immediate and
unanimous group action and decision, to protest
thenonpaymentoftheirsalariesandwages.The
MinisterofLaborandEmploymentwhofoundthe
strike to be illegal granted the clearance to
terminate the employment of those who were
instigatorsintheillegalstrike.Wasthedecisionof
the Minister of Employment in granting the
clearancecorrect?
A:No,toexcludeunionofficers,shopstewardsand
thosewithpendingcriminalchargesinthedirective
tothecompanytoacceptbackthestrikingworkers
without first determining whether they knowingly
committed illegal acts would be tantamount to
dismissal without due process of law. (Telefunken
Semiconductors Ees UnionFFW v. SLE, G.R. No.
122743&127215,Dec.12,1997)
(2)WaiverofIllegalityofStrike
170
j.Injunctions
Q:Whatisaninjunction?
A: Itisanorderorawritthatcommandsaperson
to do or not to do a particular act. It may be a
positive (mandatory) or a negative (prohibitory)
command.
(1)RequisitesforLaborInjunctions
Q:Maythecourtorquasijudicialentityissueany
injunctionduringstrikes/lockouts?
A:GR:Nocourtorentityshallenjoinanypicketing,
strikeorlockout,oranylabordispute.
XPN:
1. When prohibited or unlawful acts are
beingorabouttobecommittedthatwill
causegraveorirreparabledamagetothe
complainingparty.(Art.218[e])
2. Onthegroundofnationalinterest
3. The SLE or the NLRC may seek the
assistanceoflawenforcementagenciesto
ensure compliance with this provision as
well as with such orders as he may issue
toenforcethesame(Art.263[g])
(2)InnocentBystanderRule
A:Theinnocentbystandermustshow:
1. Compliancewiththegroundsspecifiedin
Rule58oftheRulesofCourt,and
2. That it is entirely different from, without
any connection whatsoever to, either
party to the dispute and, therefore, its
interestsaretotallyforeigntothecontext
thereof. (MSF Tire & Rubber v. CA, G.R.
128632,Aug.5,1999)
Q:MaytheRTCtakecognizanceofthecomplaint
where the same is but an incident of a labor
dispute?
rd
A: No, where the subject matter of the 3 party
claim is but an incident of the labor case, it is a
matter beyond the jurisdiction of the RTC, such
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Aparty,byfilingits3rdpartyclaimwiththedeputy
sheriff, it submitted itself to the jurisdiction of the
NLRCactingthroughtheLA.
Q:TheemployerfiledwiththeRTCacomplaintfor
damages with preliminary mandatory injunction
againsttheunion,themainpurposeofwhichisto
dispense the picketing of the members of the
union.Theunionfiledamotiontodismissonthe
groundoflackofjurisdiction.TheRTCdeniedthe
motion to dismiss and enjoined the picketing, it
said that mere allegations of ErEe relationship
does not automatically deprive the court of its
jurisdiction and even the subsequent filing of
charges of ULP, as an afterthought, does not
deprive it of its jurisdiction. Was the issuance by
theRTCoftheinjunctionproper?
A:No,theconcertedactiontakenbythemembers
of the union in picketing the premises of the
departmentstore,nomatterhowillegal,cannotbe
regarded as acts not arising from a labor dispute
over which the RTCs may exercise jurisdiction.
(SamahangManggagawangLibertyCommercialv.
Pimentel,G.R.No.L78621,Dec.2,1987)
171
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
1.LABORARBITER
a.Jurisdiction
Q:Whatisthedistinctionbetweenthejurisdiction
of the labor arbiter (LA) and the National Labor
RelationsCommission(NLRC)?
A:
1. The NLRC has exclusive appellate
jurisdictiononallcasesdecidedbytheLA.
2. The NLRC does not have original
jurisdiction on the cases over which the
LAhaveoriginalandexclusivejurisdiction.
3. The NLRC cannot have appellate
jurisdiction if a claim does not fall within
the exclusive original jurisdiction of the
LA.
A:Itisoriginalandexclusive.LAshavenoappellate
jurisdiction.
Q:Whatarethecasesfallingunderthejurisdiction
oflaborarbiters(LAs)?
A: Exclusive and original jurisdiction to hear and
decidethefollowingcasesinvolvingallworkers:
1.
2.
3.
4.
5.
6.
7.
172
ULPcases
Terminationdisputes
If accompanied with a claim for
reinstatement, those that workers file
involving wages, rates of pay, hours of
work and other terms and conditions of
employment
Claims for actual, moral, exemplary and
other forms of damages arising from Er
Eerelations
Cases arising from any violation of Art.
264, including questions involving the
legalityofstrikesandlockouts;
Except
claims
for
Employment
Compensation, Social Security, Philhealth
and maternity benefits, all other claims
arising from ErEe relations, including
those of persons in domestic or
household service, involving an amount
exceeding P5000 regardless of whether
accompanied with a claim for
reinstatement
Monetary claims of overseas contract
workersarisingfromErEerelationsunder
the Migrant Workers Act of 1995 as
amendedbyRA10022
8.
Q:Whatisthenatureofthecaseswhichthelabor
arbiter(LA)mayresolve?
A:
GR:LAshavenojurisdictionoverunresolvedor
unsettled grievances arising from the
interpretation or implementation of the CBA
and those arising from the interpretation or
enforcementofcompanypersonnelpolicies.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
XPN:Actualterminationdisputes
Q:Whatarethecaseswhichdonotfallunderthe
jurisdictionofthelaborarbiters(LA)?
A:LAshavenojurisdictionovertheff:
1.
2.
3.
4.
5.
6.
173
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:TheNLRC.
Q:Whatistheeffectofperfectionofanappealon
execution?
A:
1.
Note:TheprovisionofArt.223isclearthatanaward
by the LA for reinstatement shall be immediately
executor even pending appeal and the posting of a
bondbytheemployershallnotstaytheexecutionfor
reinstatement.(PioneerTexturizingCorp.v.NLRC,G.R.
No.118651,Oct.16,1997)
b.Effectofselfexecutingorderofreinstatementon
backwages
174
2.
Theappealisperfected:
a. Filed within the reglementary period
providedinSec.1ofthisRules
b. Verified by the appellant himself in
accordancewithSec.4,Rule7ofthe
RulesofCourt,asamended
c. In the form of a memorandum of
appealwhichshallstatethegrounds
relied upon and the arguments in
support thereof, the relief prayed
for,andwithastatementofthedate
the appellant received the appealed
decision,resolutionororder
d. In 3 legibly typewritten or printed
copies
e. Accompaniedby(i)proofofpayment
of the required appeal fee; (ii)
posting of a cash or surety bond as
providedinSec.6ofthisRule;(iii)a
certificate of nonforum shopping;
and (iv) proof of service upon the
otherparties.
Merenoticeofappealwithoutcomplying
withtheotherrequisitesaforestatedshall
not stop the running of the period for
perfectinganappeal.
A:Yes.IncasethedecisionoftheLAortheRegional
Director involves a monetary award, an appeal by
the employer may be perfected only upon the
postingofabond.(Sec.6,RuleVI,NLRC2005Rules
ofProcedure)
Q:Whataretheformsoftheappealbond?
Q:Whomayissueasuretybond?
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
4.
5.
6.
7.
8.
AnindemnityagreementbetweentheEr
appellantandbondingcompany;
Proof of security deposit or collateral
securingthebond:provided,thatacheck
shall not be considered as an acceptable
security;
A certificate of authority from the
InsuranceCommission;
CertificateofregistrationfromtheSEC;
Certificate of authority to transact surety
businessfromtheOfficeofthePresident;
Certificate of accreditation and authority
fromtheSC;and
A notarized board resolution or
secretary's certificate from the bonding
company showing its authorized
signatoriesandtheirspecimensignatures.
(Sec. 6, Rule VI, NLRC 2005 Rules of
Procedure)
Q:Whatistheeffectifthebondisverifiedbythe
NLRCtobeirregularornotgenuine?
Q:Maythebondbereduced?
A:
GR:No.
Q:Whatistheeffectifnoserviceofsummonswas
made?
A: Intheabsenceofserviceofsummonsoravalid
waiver thereof, the hearings and judgment
renderedbythelaborarbiterisnullandvoid.
Q:Whatiscompulsoryarbitration?
A:Theprocessofsettlementoflabordisputesbya
government agency which has the authority to
investigate and make an award binding on all the
parties.
175
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
1. All cases which the Labor Arbiters (LAs)
have authority to decide may be filed in
the Regional Arbitration Branch (RAB)
having jurisdiction over the workplace of
thecomplainant/petitioner.
2.
3.
4.
5.
ForOverseasContractWorkerswherethe
complainant resides or where the
principal office of the respondent Er is
located,attheoptionofthecomplainant.
176
2.NATIONALLABORRELATIONSCOMMISSION
(NLRC)
Q:WhatistheNLRC?
A: It is an administrative body with quasijudicial
functionsandtheprincipalgovernmentagencythat
hearsanddecideslabormanagementdisputes;itis
attachedtotheDOLEsolelyforprogramandpolicy
coordinationonly.
Q: How are the powers and functions of theNLRC
allocated?
A:
1. EnBanc
a. Promulgating rules and regulations
and governing the hearings and
disposition of cases before any of its
divisionsandregionalbranches.
b. Formulating policies affecting its
administrationandoperations.
c. Ontemporaryoremergencybasis,to
allow cases within the jurisdiction of
anydivisiontobeheardanddecided
by any other division whose docket
allows the additional workload and
suchtransferwillnotexposelitigants
tounnecessaryadditionalexpense.
2. Division(8Divisionswith3members)
a. Adjudicatory;
b. All other powers, functions and
duties;
c. Exclusive appellate jurisdiction over
cases within their respective
territorialjurisdiction.
a.Jurisdictions
A:
1. ExclusiveOriginalJurisdiction
a. Certified labor disputes causing or
likely to cause a strike or lockout in
anindustryindispensabletonational
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
2.
Q:WhatisthecompositionoftheNLRC?
A:
1. Chairman
2. 23Members
a. 8memberseach,shallbechosenonly
from among the nominees of the
workers and employers (Er)
organizationrespectively.
b. The Chairman and the 7 remaining
members shall come from the public
sector, with the latter to be chosen
preferably
from
among
the
incumbentLaborArbiters.
c. Upon assumption into office, the
members nominated by the workers
and Ers organization shall divest
themselves of any affiliation with or
interest in the federation or
associationtowhichtheybelong.
Q:HowdoestheNLRCadjudicatecases?
A:
1. The NLRC adjudicates cases by division. A
concurrence of 2 votes is needed for a
validjudgment.
Note:Whenevertherequiredmembershipin
a division is not complete and the
concurrence of the Commissioners to arrive
at judgment or resolution cannot be
obtained, the Chairman shall designate such
number of additional Commissioners from
theotherdivisionsasmaybenecessary.
2.
3.
Acertificationthataconsultationhasbeen
conducted, signed by the presiding
commissioner of the division, shall be
issued(copyattachedtotherecordofcase
andservedupontheparties).
Q:WhatarethequalificationsoftheChairmanand
theCommissioners?
A:
1. MemberofthePhilippineBar
2. Engaged in the practice of law in the
Philippinesforatleast15years
3. Atleast5yearsexperienceorexposurein
handlinglabormanagementrelations
4. Preferably a resident of the region where
heistoholdoffice
A:
1. MemberofthePhilippineBar
2. Engaged in the practice of law in the
Philippinesforatleast10years
3. Atleast5yearsexperienceorexposurein
handlinglabormanagementrelations
177
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:Yes,theunionofficersarecorrectinclaimingthat
the NLRC has no jurisdiction over the appealed
ruling of the RD. in Barles v. Bitonio, G.R. No.
120220,June16,1999,theSCruled:
Appellate authority over decisions of the RD
involvingexaminationofunionaccountsisexpressly
conferred on the Bureau of Labor Relations (BLR)
under the Rule of Procedure on Mediation
Arbitration.
Sec. 4. Jurisdiction of the BLR (b) The BLR shall
exercise appellate jurisdiction over all cases
originating from the RD involving complaints for
examinationofunionbooksofaccounts.
The language of the law is categorical. Any
additional explanation on the matter is
superfluous."(2001BarQuestion)
Q:Company"A"andUnion"B"couldnotresolve
their negotiations for a new CBA. After
conciliation proceedings b e f o r e t h e NCMB
proved futile, Bwentonstrike.Violenceduring
the strike prompted A to file charges against
strikermembers of B for their illegal acts. The
SLE assumed jurisdiction, referred the strike to
the NLRC and issued a returntowork order.
The NLRC directedthe parties to submit their
respective position papers and documentary
evidence. At the initial hearing before the NLRC,
the parties agreed to submit the case for
resolution after the submission of the position
papersandevidence.
178
A:Theappealshouldnotprosper.TheSC,inmany
cases, has ruled that decisions made by the NLRC
maybebasedonpositionpapers.Inthequestion,it
isstatedthatthepartiesagreedtosubmitthecase
for resolution after the submission of position
papers and evidence. Given this fact, the striker
membersofBcannotnowcomplainthattheywere
denied due process. They are in estoppel. After
voluntarily submitting a case and encountering an
adversedecisiononthemerits,itistoolateforthe
loser to question the jurisdiction or power of the
court. A party cannot adopt a posture of double
dealing. (Marquez vs. Secretary of Labor, G.R. No.
80685,March16,1989).(2001BarQuestion)
Q:WhatarethepowersoftheNLRC?
A:
1. Rule making power promulgation of
rulesandregulations:
a. Governing disposition of cases
before any of its division/regional
offices.
b. Pertainingtoitsinternalfunctions
c. Asmaybenecessarytocarryoutthe
purposesoftheLaborCode.
2. Power to issue compulsory processes
(administer oaths, summon parties, issue
subpoenas)
3. Power to investigate matters and hear
disputes
within
its
jurisdiction
(adjudicatory power original and
appellatejurisdictionovercases)
4. Contemptpower
5. OcularInspection
6. Powertoissueinjunctionsandrestraining
orders
b.EffectofNLRCreversalofLaborArbitersorderof
reinstatement
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:WhomayissueaTRO?
A:
1. President(Art.263[g])
2. SecretaryofLabor(Art.263[g])
3. NLRC(Art.218)
A:
1. Filingofaverifiedpetition
2. Hearingafterdueandpersonalnoticehas
been served in such manner as the
Commissionshalldirectto:
a. All known persons against whom
reliefissought
b. Also the Chief Executive or other
public officials of the province or
city within which the unlawful acts
have
been
threatened
or
commercial charged with the duty
to protect the complainants
property.
3. Reception at the hearing of the
testimonies of the witnesses with
opportunity for crossexamination, in
support of the allegations of the
complaint made under oath as well as
testimonyinoppositionthereto.
4. Finding of fact of the Commission to the
effectthat:
a. Prohibited or unlawful acts have
been threatened and will be
committed,orhavebeenandwillbe
continued unless restrained, but no
179
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
b.
c.
d.
e.
5.
Thatpublicofficerschargedwiththe
duty to protect complainants
property are unable or unwilling to
furnishadequateprotection.
Postingofabond.
3.BUREAUOFLABORRELATIONS(BLR)MED
ARBITERS
a.Jurisdiction
Note:Jurisdictionoverlabormanagementproblemsor
disputesisalsoexercisedbyotheroffices:
1. DOLERegionalOffices
2. OfficeoftheSecretaryofLabor
3. NLRC
180
4.
5.
6.
7.
8.
9.
POEA
OWWA
SSSECC
RTWPB
NWPC
Regular courts
disputes.
over
intracorporate
Q:Whoisamediatorarbiter?
1. Interuniondisputes
2. Intrauniondisputes
3. Otherrelatedlaborrelationsdisputes
A:Theyshallinclude:
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A:
1. Anyconflictbetween:
a.Alaborunionandtheemployer(Er);or
b.Alaborunionandagroupthatisnota
labororganization(LO);or
c. Alaborunionandanindividualwhois
notamemberofsuchunion
2. Cancellationofregistrationofunionsand
workersassociationsfiledbyindividual/s
other than its members, or group that is
notaLO.
3. ApetitionforInterpleaderinvolvinglabor
relations. (Sec. 2, Rule XI, Book V, IRR as
amendedbyD.O.40F03)
Q:Whomayfileacomplaintorpetitioninvolving
intra/interuniondisputes?
A:Thecomplaintmustbesignedbyatleast30%of
theentiremembershipoftheunion.
Q:Whatiftheissueinvolvesamemberonly?
Note:
GR:Redressmustfirstbesoughtwithintheunion
itself in accordance with its constitution and by
laws
XPNs:
1. Futilityofintraunionremedies;
2. Improperexpulsionprocedure;
3. Undue delay in appeal as to constitute
substantialinjustice;
4. Theactionisfordamages;
5.
6.
7.
8.
Lackofjurisdictionoftheinvestigatingbody;
action for the administrative agency is
patentlyillegal,arbitraryandoppressive;
Issueispurelyaquestionoflaw;
Where the administrative agency had
alreadyprejudgedthecase;and
Where the administrative agency was
practically given the opportunity to act on
thecasebutitdidnot.
A:Yes.
Q:Withinwhatperiodmayanappealtoadecision
of the medarbiter or regional director in an
inter/intrauniondisputebefiled?
A:Thedecisionisappealabletothe:
1. Bureau of Labor Relations (BLR): if the
case originated from the MedArbiter or
RegionalDirector;
2. SLE:ifthecaseoriginatedfromtheBLR.
A:
1. Itmayholdareferendumelectionamong
the members of a union for the purpose
ofdeterminingwhetherornottheydesire
tobeaffiliatedwithafederation.
2. ButtheBLRhasnoauthorityto:
181
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3.
A:
1. Regulationofthelaborunions
2. Keepingtheregistryoflaborunions
3. MaintenanceofafileoftheCBA
4. Maintenanceofafileofallsettlementsor
final decisions of the SC, CA, NLRC and
otheragenciesonlabordisputes
A:
1. Therightsrelationshipsandobligationsof
thepartylitigantsagainsteachotherand
other partiesininterest prior to the
institution of the petition shall continue
to remain during the pendency of the
petitionanduntilthedateofthedecision
rendered therein. Thereafter, the rights,
relationshipsandobligationsoftheparty
litigants against each other and other
partiesininterest shall be governed by
thedecisionordered.
A:
1. FormalRequirements
a. Underoath
b. Consistofamemorandumofappeal.
c. Based on either of the following
grounds:
i.
Graveabuseofdiscretion
ii. Grossviolationoftherules
iii. Withsupportingargumentsand
evidence
2. Period within 10 days from receipt of
decision.
182
4.
Towhomappealable
a. BLRifthecaseoriginatedfromthe
MedArbiter/RegionalDirector.
b. SLEifthecaseoriginatedfromthe
BLR.
Where Filed Regional Office or to the
BLR, where the complaint originated
(records are transmitted to the BLR or
Sec. within 24 hours from the receipt of
the memorandum of appeal). (Rule XI,
D.O.4003)
4.NATIONALCONCILIATIONANDMEDIAITON
BOARD(NCMB)
Q: What are the alternative modes of settlement
oflabordisputeunderArt.211oftheLaborCode?
A:
1. VoluntaryArbitration
2. Conciliation
3. Mediation
a.Conciliationvs.Mediation
Q:WhatisConciliatonandMediation?
A:
CONCILIATION
Is conceived of as a
mild
form
of
intervention by a
neutralthirdparty
The
conciliator
Mediator, relying on
his
persuasive
expertise, who takes
an active role in
assisting parties by
trying
to
keep
disputants talking,
facilitating
other
procedural niceties,
carrying messages
back and forth
between the parties,
andgenerallybeinga
goodfellowwhotries
to keep things calm
and forwardlooking
inatensesituation
It is the process
whereadisinterested
3rd party meets with
management
and
labor,
at
their
requestorotherwise,
during
a
labor
dispute
or
in
MEDIATION
Isamildintervention
by a neutral third
party
The
conciliator
mediator, whereby
hestartsadvisingthe
parties or offering
solutions
or
alternatives to the
problems with the
end in view of
assisting
them
towards voluntarily
reaching their own
mutually acceptable
settlement of the
dispute
Itiswhena3rdparty
studies each side of
the dispute then
makes proposals for
the disputants to
consider.
The
mediator
cannot
make an award nor
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
renderadecision
rd
It is the process where a disinterested 3 party
meetswithmanagementandlabor,attheirrequest
orotherwise,duringalabordisputeorincollective
bargaining conferences, and by cooling tempers,
aidsinreachinganagreement.
Mediationisamildinterventionbyaneutralthird
party, the ConciliatorMediator, whereby he starts
advising the parties or offering solutions or
alternativestotheproblemswiththeendinviewof
assisting them towards voluntarily reaching their
ownmutuallyacceptablesettlementofthedispute.
rd
It is when a 3 party studies each side of the
disputethenmakesproposalsforthedisputantsto
consider.Themediatorcannotmakeanawardnor
renderadecision.
Q:WhatistheLegalBasisofConciliationand
Mediation?
A:Article13,Section3,ofourNewConstitution
provides:
The State shall promote xxx the preferential
use of voluntary modes of setting disputes
including conciliation and shall ensure mutual
compliance by the parties thereof in order to
fosterindustrialpeace.
Q:WhocanavailofConciliationandMediation
ServicesoftheNCMB?
A:Anypartytoalabordispute,eithertheunion
or management, may seek the assistance
of NCMB or any of its Regional Branches by
means of formal request for conciliation and
preventive mediation. Depending on the nature
A:Aninformalorformalrequestforconciliation
and mediation service can be filed at the NCMB
Central Office or any of its Regional Branches.
There are at present fourteen (14) regional
offices of the NCMB which are strategically
located all over the country for the convenient
useofprospectiveclients.
b.PreventiveMediation
Q:WhatisPreventiveMediationCases?
183
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:Certainly,thepartiesareboundtohonorany
agreement entered into by them. It must be
pointed out that such an agreement came into
existenceasaresultofpainstakingeffortsamong
the union, management, and the Conciliator
Mediator.Therefore,itisonlylogicaltoassume
that the Conciliator assigned to the case has to
followupandmonitortheimplementationofthe
agreement.
Q:Whenthedisputehasalreadybeenassumed
or certified to the NLRC, is it also possible to
remandthesametoconciliationandmediation
services?
c.Artbitration
Q:Whatisarbitration?
184
Q:Canthecourtfixresorttovoluntaryarbitration
(VA)?
A:ResorttoVAdispute,shouldnotbefixedbythe
court but by the parties relying on their strengths
andresources.
Q:Whoarethepartiestolaborrelationscases?
A:
1. Employeesorganization
2. Management
3. Thepublic
Q:Whatistheconceptoftripartism?
A:Itistherepresentationof3sectors.Theseare:
1. Thepublicorthegovernment
2. Theemployers
3. Theworkers
inpolicymakingbodiesofthegovt.
5.DOLEREGIONALDIRECTORS
a.SmallMoneyClaims
A:
1. The aggregate money claim of each
employee (Ee) or househelper (HH) does
notexceedP5,000.
2. TheclaimispresentedbyanEeorperson
employed in the domestic or household
serviceorHH.
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
TheclaimarisesfromErEerelationship.
The
claimant
does
not
seek
reinstatement.
Q:WhatistheadjudicatorypoweroftheRegional
Director(RD)?
Q:Anairlinewhichfliesboththeinternationaland
domestic routes requested the SLE to approve the
policy that all female flight attendants upon
reaching age 40 with at least 15 years of service
shall be compulsorily retired; however, flight
attendantswhohavereachedage40buthavenot
worked for 15 years will be allowed to continue
workinginordertoqualifyforretirementbenefits,
but in no case will the extension exceed 4 years.
Does the SLE have the authority to approve the
policy?
A:
Art.128
VPandEPof
SLE
Inspectionof
establishments
andissuance
ofordersto
compel
compliance
withlabor
standards,
wageorders
Art.129
RD
Art.217(a)(6)
LA
Adjudicationof
Eesclaimsfor
wagesand
benefits
LAexercises
originaland
exclusive
jurisdiction
andother
laborlaws
Enforcement
oflabor
legislationin
general
Limitedto
monetaryclaims
Allotherclaims
arisingfromEr
Eerelations
Proceedingis
anoffshootof
routine
inspections
Initiatedby
sworncomplaints
filedbyany
interestedparty
No
jurisdictional
reqts
Jurisdictional
reqts:
1)Complaint
arisesfromErEe
relationship
2)Claimantisan
Eeorperson
employedin
domesticor
household
serviceoraHH
3)Complaint
doesNOTinclude
aclaimfor
reinstatement
4)Aggregate
moneyclaimof
EACHclaimant
doesnotexceed
P5,000
LAdecidescase
within30
calendardays
after
submissionof
thecasebythe
partiesfor
decision
1)Allother
claimsarising
fromErEe
relations
2)Including
thoseof
personsin
domesticor
household
service
3)Involvingan
amount
exceeding
P5,000
4)Whetheror
not
accompanied
withaclaimfor
reinstatement
Appealableto
SLE(Incase
compliance
orderisissued
byRegional
Office)
Appealableto
NLRC
Appealableto
NLRC
6.DOLESECRETARY
a.VisitorialandEnforcementPowers
Q:Whatarethe3kindsofpowersoftheSecretary
ofLaborandEmployment(SLE)?
A:
1. Visitorialpowers
2. Enforcementpowers
3. Appellateorpowertoreview
Q:Whatconstitutevisitorialpower?
185
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
4.
1.
2.
3.
A:Powerto:
Q:Whatisenforcementpower?
A:ItisthepoweroftheSLEto:
1. Issuecomplianceorders
2. Issue writs of execution for the
enforcement of their orders, except in
cases where the employer (Er) contests
thefindingsofthelaborofficerandraise
issues supported by documentary proof
which were not considered in the course
ofinspection
3. Order stoppageof work or suspension of
operationwhennoncompliancewiththe
laworimplementingrulesandregulations
poses grave and imminent danger to
health and safety of workers in the
workplace
186
Q:WhataretheviolationsunderArt.128?
A:
1. Obstruct, impede, delay or otherwise
renderineffectivetheordersoftheSLEor
hisauthorizedrepresentatives
2. Any government employee found guilty
of,orabuseofauthority,shallbesubject
to administrative investigation and
summarydismissalfromservice.
Q:Whatarethelimitationstoothercourts?
A: Inrelationtoenforcementordersissuedunder
Art.128,noinferiorcourtorentityshall:
A:
1. Case does not arise from the exercise of
visitorialpower
2. WhenErEerelationshipceasedtoexistat
thetimeoftheinspection
3. If employer contests the finding of the
Labor Regulation Officer and such
contestable issue is not verifiable in the
normalcourseofinspection
b.PowertoSuspendEffectsofTerminationArt.277
(b),LC
A:Yes,underArticle277(b)oftheLaborCode,the
Secretary of Labor may suspend the effects of the
terminationpendingresolutionofthedisputeinthe
event of a prima facie finding by the appropriate
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
7.VOLUNTARYARBITRATORS
a.SubmissionAgreement
Q:Howisarbitrationinitiated?
A:
1. Submission agreement Where the
partiesdefinethedisputestoberesolved
2. Demand notice Invoking collective
agreementarbitrationclause
Q:Whoisavoluntaryarbitrator(VA)?
A:
1. Any person accredited by the NCMB as
such
2. Any person named or designated in the
CBAbythepartiestoactastheirVA
3. One chosen with or without the
assistance of the NCMB, pursuant to a
selection procedure agreed upon in the
CBA
4. Anyofficialthatmaybeauthorizedbythe
SLEtoactasVAuponthewrittenrequest
and agreement of the parties to a labor
dispute.(Art.212[n])
Q:Whatarethepowersofavoluntaryarbitrator?
A:
1. Holdhearings
2. Receiveevidence
3. Take whatever action necessary to
resolve the dispute including efforts to
effect a voluntary settlement between
parties.(Art.262A)
A:
1. The parties in a CBA shall designate in
advance a VA/panel, preferably from the
listingofqualifiedVAsdulyaccreditedby
theNCMB,or
2. Includeintheagreementaprocedurefor
the selection ofsuch VA or panel of VAs,
preferably from the listing of qualified
VAs duly accredited by the NCMB.
(Art.260,par.3)
A:ItistheNCMBthatshalldesignatetheVA/panel
based on the selection procedure provided by the
CBA. (Manila Central Line Free Workers Union v.
Manila Central Line Corp., G.R. No. 109383, June
15,1998)
A:Yes.ThereisnothinginthelawthatprohibitsLAs
fromalsoactingasVAsaslongasthepartiesagree
tohavehimhearanddecidetheirdispute.(Manila
Central Line Free Workers Union v. Manila Central
LineCorp.,G.R.No.109383,June15,1998)
Q:WhatcasesarewithinthejurisdictionofVA?
A:Originalandexclusivejurisdictionover:
4. ViolationsofCBAprovisionswhicharenot
grossincharacterarenolongertreatedas
ULP and shall be resolved as grievances
undertheCBA
Note:GrossviolationofCBAprovisionsshall
mean flagrant and/or malicious refusal to
comply with the economic provisions of
suchagreement.
187
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Anyotherlabordisputesuponagreement
by the parties including ULP and
bargainingdeadlock.(Art.262)
A:No.Theymustimmediatelydisposeandreferthe
same to the grievance machinery or voluntary
arbitrationprovidedintheCBA
A:ThedecisionorawardoftheVAactingwithinthe
scope of its authority shall determine the rights of
thepartiesandtheirdecisionsshallhavethesame
legal effects as judgment of the courts. Such
mattersonfactandlawareconclusive.
Q:Whatisthenatureofthepowerofavoluntary
arbitrator?
A:Arbitratorsbythenatureoftheirfunctions,act
inaquasijudicialcapacity(BP129,asamendedby
R.A. 9702); where a question of law is involved or
thereisabuseofdiscretion,courtswillnothesitate
topassuponreviewoftheiracts.
b.Rule43,RulesofCourt
188
A:GR:DecisionsofVAarefinalandexecutoryafter
10 calendar days from receipt of the copy of the
awardordecisionbytheparties.(Art.262A)
XPNs:
1. AppealtotheCAviaRule43oftheRules
of Court within 15 days from the date of
receipt of VAs decision. (Luzon Devt
Bank v. Assn of Luzon Devt Bank Ees,
G.R.No.120319,Oct.6,1995)
2. If decision of CA is adverse to a party,
appeal to the SC via Rule 45 on pure
questionsoflaw.
Note:AVAbythenatureofherfunctionsactsinquasi
judicial capacity. There is no reason why the VAs
decisions involving interpretation of law should be
beyond the SCs review. Administrative officials are
presumedtoactinaccordancewithlawandyettheSC
will not hesitate to pass upon their work where a
question of law is involved or where a showing of
abuseofauthorityordiscretionintheirofficialactsis
properly raisedin petitions for certiorari. (Continental
MarbleCorporationv.NLRC,G.R.No.L43825,May9,
1988)
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
DoestheLAhavejurisdictionoverthecase?
Doesthevoluntaryarbitrator(VA)havethepower
topassuponnotonlythequestionofwhetherto
grant the performance bonus or not but also to
determinetheamountthereof?
A:Yes,intheiragreementtoarbitrate,theparties
submitted to the VA the issue of performance
bonus.Thelanguageoftheagreementtoarbitrate
may be seen to be quite cryptic. There is no
indication at all that the parties to the arbitration
agreement regarded the issue of performance
bonusasatwotieredissue,onlyonetierofwhich
wasbeingsubmittedtoarbitration.Possibly,Sime
Q:Apalisok,productionchiefforRPNStation,was
dismissed due to her alleged hostile, arrogant,
disrespectful, and defiant behavior towards the
Station Manager. She informed RPN that she is
waiving her right to resolve her case through the
grievance machinery as provided in the CBA. The
voluntary arbitrator (VA) resolved the case in the
employees(Ees)favor.
Onappeal,theCAruledinfavorofRPNbecauseit
considered the waiver of petitioner to file her
complaint before the grievance machinery as a
relinquishment of her right to avail herself of the
aidoftheVA.TheCAsaidthatthewaiverhadthe
effect of resolving an otherwise unresolved
grievance, thus the decision of the VA should be
setasideforlackofjurisdiction.Istherulingofthe
CAcorrect?
TheEeswaiverofheroptiontosubmithercaseto
grievance machinery did not amount to
relinquishing her right to avail herself of voluntary
arbitration.(Apalisokv.RPN,G.R.No.138094,May
29,2003)
8.COURTOFAPPEALS
189
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Note:Rule65,Section1,RulesofCourt
9.SUPREMECOURT
Q:Howdoesapartyappealfromajudgment,or
finalorderorresolution,oftheCourtofAppeals?
190
Note:Rule45,Section1,RulesofCourt:
FilingofpetitionwithSupremeCourt.Apartydesiring
toappealbycertiorarifromajudgment,finalorderor
resolution
of
the
Court
of
Appeals,theSandiganbayan,theCourtofTaxAppeals,
the Regional Trial Court or other courts, whenever
authorized bylaw, may file withthe Supreme Court a
verified petition for review on certiorari. The petition
may include an application for a writ of preliminary
injunctionorotherprovisionalremediesandshallraise
only questions of law, which must be distinctly set
forth. The petitioner may seek the same provisional
remediesbyverifiedmotionfiledinthesameactionor
proceedingatanytimeduringitspendency.
Q:GivethepolicyoftheSupremeCourtregarding
appealsinlaborcases.
10.PRESCRIPTIONOFACTIONS
Q:Givetherulesasregardstheprescriptiveperiod
providedforintheLaborCode(LC).
A:
SUBJECT
Offensespenalized
undertheLC
ULP
MoneyClaims
Allmoneyclaims
accruingpriortothe
effectivityoftheLC
Workmens
Compensationclaims
accruingpriortothe
PRESCRIPTIVEPERIOD
3years
One(1)yearfrom
accrualofsuchULP;
otherwiseforever
barred(Art.290)
3yearsfromthetime
thecauseofaction
accrued;otherwise
foreverbarred
Withinone(1)year
fromthedateof
effectivity,in
accordancewithIRR;
otherwise,theyshall
foreverbebarred
Dec.31,1974shallbe
filednotlaterthanMar.
31,1975beforethe
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
IllegalDismissalCases
appropriateregional
officesofthe
DepartmentofLabor.
(Art.291)
4years.Itcommences
torunfromthedateof
formaldismissal.
(Mendozav.NLRC,G.R.
No.122481,Mar.5,
1998)
191
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
Facultad de Derecho Civil
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ