Labor Standards

Atty. Cesar E. Santamaria, Jr.

Assignment for August L7,2OL5,

GENERAL PROVISIONS (ArtiCICS 1.6)

Articles 1 and

Article

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,

"protection to labor"
Sanchez v. Harry Lyons Construction; G.R. No. L-2779, October 18,

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.

1950.

Vigilla v. Philippine College of Criminology, Inc.; G.R. No. 200094,

June 10, 2013.
PLDT Co. V. NLRC; G.R. No. 80609, August 23, 1998.

"equal work opportunities regardless of sex, race or creed"

Section 12, Article XIi of the Constitution
Article 40, Labor Code

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.

"regulate the relations betvteen workers and employers"

. Article 7700, Civil Code

The State shall promote a just and dynamic social order that will
ensure the prosperity and independence of the nation and free the
people from poverty through policies tlrat provide adequate social
services, promote full employment, a rising standard of living, arrd
an improved quality of life for all, {li*ci;l*n S, Arllcl* 11}

The State affirms labor as a primary social econonric force.

It

shall

protect the rights of workers and promote their welfare.

(3!*cti*n

1"fi,

Arlicl*

Ili

The State shall promote the preferential use of Filipino labor,

domestic materials and locally produced goods, and adopt measures
that help make them competitive. ($u*tl*n :l?. /:,.;"licic XII)

The State shall afford full protection to labor, local and overseas,
organized and unorganized, and promote full employment and
equality of employment opportunities for all. {!ir,:r:Y)** 3, &ri"irX*:
\/tYY\
,\rljl

o It shall guarantee the rights of all workers to

self-organization,

collective bargaining and negotiations, and peaceful concerted

activities, including the right to strike in accordance witlr law. They
shall be entitled to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by
Iaw. {Jil.)

The State shall promote the principle of shared resJronsibility between

workers and employers and the preferential use of voluntary modes irr
setLling disputes, inclurding conciliation, and shall r:nforce their rnutual
compliance therewith to foster industrial peace. {{t.:t.1

.:.

Article 4

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*

Article

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Torres v. Rural Bank of San Juan,.inc.; G.R. No. 184520, March !3,2073.
Supreme Steel Corp. v. Nagkakaisang Manggagawa ng Supreme
Independent Union; G,R. No. 185556, March 28,20!7.
Songco v, NLRC; G.R. Nos. 50999-51000, March 23,1990.
Pioneer Texturizing Corp. v. NLRC; G.R. No, 118651, October 76, 7997.
5

Administrative rules have the force and effect of law.

Administrative rules must not contravene/ amend, restrict or enlarge the
scope of the laws they seek to implement.

Book VII of the Administrative Code of 7987

,
*

Article

Insular Bank of Asia and America Employees'lJnion v. Inciong; G,R. No. L52475, October 23, 1984,
6

Not every person working for another is an employee.

4 types of Work Arrangements:

1. Employer-employee
2. Job contracting with an individual
3. Job contracting with an enterprise
4. Illegitimate (labor-only) contracting

. fmportance of determining whether an

relationship exists.

employer-employee

Brotherhood Labor Unity Movement of the Philippines,

Zamora, et al., GR 48645, January 7 , 7987; 147 SCRA 49.

1 \\*** that judicial relation spawns obligations

with workmen's compensation, social security,

minimum wage, termination pay, and unionism."

et al.

vs.

connected
medicare,

Statutory Definitions of Employer and Employee

. Article 97 (b), (c)
. Article 1731 (0, (g)

Article 2182 (e), (f)

. "The question of whether an employer-employee relationship

exists in a certain situation continues to bedevil the courts."
(Brotherhood Labor Unity Movement of the Philippines, et al. vs, Zamora,
et al., supra).

The Four-Fold Test

Elements of the Four-Fold Test

Viaffa v. Al-Lagadan and Piga; GR No. L-8967, May 31, 1956; 99

Phit. 408

Formerly 167,
Formerly 212.

"There is no hard and fast rule designed to establish the aforesaid

elements. Any competent and relevant evidence to prove the
relationship may be admitted."
t Meteoro v. Creative Creatures, Inc'; G.R. No. L77275, July 13,
2009.

First Element: Selection and Engagement of the Employee

o
r
r
o

Selection may be done directly, or through a private recruitment

and placement agencY.
A written contract is not required for the creation and enforceability
of an employment relationshiP.
An employment relationship may still exist even if the contract
expl icitly provides otherwise.
Titles are weak indicators of ER-EE relationship

Nature of services performed not controlling.

t Phil. Global Communications, Inc. v, De Vera; GR No. 15721-4,
June 7, 2005; 459 SCRA 260

not the yardstick for determining the existence of

an

employment relationship."
Second Element: Payment of Wages
r Meaning of "wage" - Article 97 (t)
employee for work or for services
. "capable of being expressed in terms of money"; cf. Article
702.
. "however designated"
. "whether fixed or ascertained on a time, task, piece, or
commission basis, or other method of calculating the same"

Jardin v. NLRC; GR 119268, February 23, 2000

only that in excess of the so-called "boundary" they pay to the

owner/operator is not sufficient to withdraw the relationship
between them from that of employer and employee"

Chavez v. NLRC, et al.; GR No. 146530, January 77,2005;448

SCRA 478
significant. This is merely a method of computing compensation
and not a basis for determining the existence or absence of
employer-employee relationship. One may be paid on the basis
of results or time expended on the work, and may or may not
acquire an employment status, depending on whether the
elements of an employer-employee relationship are present or
not. "

Tan v. Lagrama, et a/.; GR No. 75L228, August 75, 2OO2; 387

SCRA 393

no moment. Payment by result is a method of compensation

and does not define the essence of the relation. It is a method
of computing compensation, not a basis for determining the
existence or absence of employer-employee relationship."

Third Element: Power of Dismissal

Chavez

v.

NLRC,

et al.; supra.

in the fact that they engaged the services of the petitioner as

truck driver. They exercised this power by terminating the

petitioner's services albeit

in the guise of

"severance

of

contractual relation" due allegedly to the latter's breach of his

contractual obligation. "

Tan v. Lagrama, et al.; supra.

effect acknowledged Lagrama to be his employee. For the right

to hire and fire is another important element of the employeremployee relationship. "

Assignment for August 24, ?OLS.

Fourth Element: The Right of Control

Most important element.

Right to control not only the result of the work to be done, but also
the means and methods to accomplish it.

15, 1989.
"Logically, the line should be drawn between rules that
merely serve as guidelines towards the achievement of the
mutually desired result without dictating the means or
methods to be employed in attaining it, and those that
control or fix the methodology and bind or restrict the party
hired to the use of such means. The first, which aim only to
promote the result, create no employer-employee
relationship unlike the second, which address both the
result and the means used to achieve it."
Tongko v. Manulife; GR 167622, January 25, 2}ll.
Sonza v. ABS-CBN Broadcasting Corp.; GR No. 138051, June
70,2Q04;431 SCRA 583
. Cf. Dumpit-Murillo v. CA; GR 164652, June B, 2007.
Bernate v, PBA; GR 192084, September 14,2OtL.
Orozco v. CA, et al.; GR No. L55207, August 13, 2008; 562

SCRA 36

732

Zamora, et al., GR L-48645, January 7, 7987; 147 SCRA 49.

"Because

of the nature of the

petitioners' work

as

cargadores or pahinantes, supervision as to the means and

manner of performing the same is practically nil. For, how
many ways are there to load and unload bottles and wooden
shells? The mere concern of both respondent SMC and the
alleged contractor is that the job of having the bottles and
wooden shells brought to and from the warehouse be done.
More evident and pronounced is respondent company,s right
to control in the discipline of petitioners,,,

et al., GR 11t870, June 30, t994;233 SCRA 592.

. "AMWSLAI also exercised its power of control over Salas by
defining his duties and functions as its legal counsel,,
SCRA 478
SCRA 393

Cosmopolitan Funeral llomes, Inc, v. Maalat; GR No, 86693,

July 2, 1990; 187 SCRA 108,
Vallum Security Services vs, NLRC, ef a/., GR 97320-27, July
30, 1993; 224 SCRA7B7.

"the 'control test' only requires the existence of the right to control
the manner of doing the work not necessarily the actual exercise of
the power by him, which he can delegate."
1999.

o
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When control test inaPPlicable.

The Two-Tiered Test

. Francisco v. NLRC; GR No. t70087, August 31, 2006; 500 SCRA 690
o "The better approach would therefore be to adopt a two-tiered test
involving: (1) the putative employer's power to control the
employee with respect to the means and methods by which the
work is to be accomplished; and (2) the underlying economic
realities of the activity or relationship."

Contracting

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Articles 106-109
DOLE Department Order 1B-A, Series of 2011
Mandaue Galleon Trade, Inc. Andales,' GR 159668, March 7, 2AO8.
Baguio v, NLRC; GR 79004-08, October 4, 1991. Including separate
opinion of J, Padilla.
CCBPI v. Agito; GR 179546, February 13, 2009.
Neri v. NLRC; GR 97008-09, July 23, 1993.
SMC v. MAERC Intergrated Seruices,Inc.; GR t44672, July 10, 2003.
Asian Alcohol Corp. v. NLRC; GR 131108, March 25, !999.

Government Workers
. Employees of GOCCs
. LRTAv. Venus, Jr.; GR L63782 & 163881, March 24,2A06.
Suggested authors (in alphabetical order): Azucena, Chan, Poquiz,