Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts Protektado ni: Asiong Salonga

General Principles and Concepts Social legislation is a law governing employer-employee More direct in its Governs the effects of
A – Introduction relationship while the latter is not “at work” due to hazards application as it affects employment such as
beyond his control arising from employment which directly actual employment compensation for injuries
Meaning of Labor immobilize him from working. such as wages and death
Designed to meet the daily Involves long-range benefits
In its limited concept, the “labor” refers to physical or It is designed to uplift and protect the welfare of the needs of a worker
mental exertion necessary to produce goods. In its broader worker and his family, on account of the effects of Covers employment or Covers employment gain or
concept, it may include the labor force who are employed employment such as diseases, injuries, disabilities or profit or gain non-profit
or those who are able and willing to work but temporarily death. Affects the work of the Affects the life of employee
or involuntary unemployed. employee
R.A. 7641 is a social legislation 1
Benefits are paid by the Benefits are paid by the
“Manpower” is defined in the Code is within the context
workers’ employer government agencies
of labor, that is, the portion of the nation’s population Taxonomy of labor laws
administering the program
which has actual or potential capability to contribute to
such as the Employee’s
the production of goods and services. 1. Protective legislations – designed to protect the
Compensation Commission
weaker party in an employment contract such as
Narrow in scope Broader in scope
Meaning of labor law laws protecting women against discrimination or
child-labor.
Labor law includes all the rules of law governing the 2. Welfare or social legislations – intended to Capsule history of Philippine labor and social legislation
conditions under which persons may work under the remove or reduce the insecurity of the workers
control of others called employers. such as laws on social security, employees 1. Spanish regime – labor laws and social
compensation or laws that provide benefits to a legislations are found in:
 These laws are designed to look more on the worker while he is “not at work” because of the a. Old Civil Code (Art. 1583 – 1587) –
immediate results of employer-employee hazards of employment. regulating the relations between
relationship 3. Diplomatic legislations – designed to settle labor master and domestic servant
disputes through peaceful modes such as laws b. Code of Commerce (Art. 283 - 302) –
Labor law – it is a body of rules and principles which providing for conciliation, mediation, grievance regulated the relations between
governs the relation between labor and management in machinery or voluntary arbitration. employer and employee
the collective, as distinguished from the principles 4. Administrative legislations – laws creating labor 2. American regime
determining the rights and liabilities consequent to the bodies and agencies for administrative purposes a. Chinese Registry Act
individual relationship of employer and employees. such as DOLE, POEA, NLRC or TESDA. b. Employers Liability Act
5. Labor relations legislations – passed concerning c. Act. No. 2549 of 1916
2 parts of labor law employee organization, concerted activities, or d. Women and Child Labor law of 1932
collective bargaining or negotiation activities. It e. Workmen’s Compensation Act
1. Labor standards – prescribe the terms and includes unfair labor practices committed by the f. Anti-Slavery Law
conditions of employment as affecting wages or employer or the union. g. Acts on Payment of Wages
monetary benefits, hours of work, cost of living 6. Labor standards legislations – Those passed h. Private Employment Agency Law
allowances, and occupational health, safety and prescribing minimum requirements relating to 3. Manuel Quezon – 1935
welfare of the workers. wages, hours of work, cost of living allowances, a. CA 103 – Creating the Court of
2. Labor relations – is used to denote all matters and other monetary and welfare benefits Industrial relations
arising out of employer-employee relationship including occupational, safety and health b. CA 444 - Eight Hour Labor law
involving the concerted action on the part of the standards2 c. CA 104 – Industrial Safety Law
workers which is usually related with right to d. CA 213 – Union Registration Act
self-organization, collective bargaining and Labor law and social legislation distinguished e. CA 647 – granting maternity leave to
negotiation process. women in service
4. Philippine Republic
Labor law Social legislation
Meaning of social legislation a. RA 602 – Minimum Wage Law
1
Oro Enterprise v. NLRC b. RA 1052 as amended by RA 1787 –
2 Termination Pay Law
Maternity Children’s Hospital v. Sec. of Labor
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts Protektado ni: Asiong Salonga
c. RA 946 – Blue Sunday Law abatement by summary proceedings of whatever may be
d. RA 875 – Industrial Peace Act 1. Constitution regarded as a public nuisance4
e. RA 1167 – Peaceful Picketing Law 2. Legislations passed by Congress
f. RA 3600 – Anti-Scab Law 3. Decisions of the SC Conditions to justify the police power5
4. IRR of the DOLE
These were bolstered by the following welfare legislations: 5. Decision of quasi-judicial bodies such as the 1. The interest of the public generally, as
NLRC distinguished from those of a particular class,
a. RA 1161 – Social Security Law 6. ILO conventions require such interference
b. RA 1169 as amended – Agricultural Tenacy Law 2. Means are reasonably necessary for the
c. RA 3844 – Agricultural Land Reform Code Auxiliary sources accomplishment of the purpose and not widely
oppressive upon individuals.
5. Martial Law 1. Opinions of the Secretaries of Labour,
a. P.D. 2 – Declaration of the Philippines Employment and Justice Social justification of class legislation
as a land reform area 2. Reports, debates, hearings made and conducted
b. P.D. 27 – Emancipation Decree by Congress  The principle of equality cannot mean that all
3. Labor law reviews person must under all circumstances be treated
Labor Code of the Philippines 4. Labor law and social legislation textbooks alike, but it can only mean that equal conditions
5. Opinions of legal luminaries must receive equal treatment.
 Signed by the President on May 1, 1974 6. Foreign laws and decisions.  Legislative discrimination is therefore allowed
 Took effect on November 1, 1974 and in many cases has been sanctioned provided
 It will serve as the bible of the workingmen and Legal bases of labor and social legislation there is a reasonable basis for classification.
their shield at the same time against the
arbitrary and abusive practices of management. 1. Police power Right to Property not a limitation to the exercise
2. Social Justice Clause
Purpose of labor legislations 3. Protection to Labor Clause  In conflict between property right and human
4. Doctrine of Incorporation Clause rights, the primacy of the latter over the former
 The state, in the exercise of its police power 5. Social Service Clause is recognized although the Bill of Rights protects
should enact wholesome and reasonable laws to 6. Full Employment Clause both rights6
preclude a feeling of discontent which may lead 7. Freedom from Poverty Clause
to violent and bloody upheavals among workers 8. Freedom of Association Clause Expanding scope of police power
who constitute the bulk of the population of the 9. Due Process and Equal Protection Clause
state3  The development of civilization, the rapidly
 Labor legislation is intended to protect the A. Police Power increasing population, the growth of public
worker from the mighty and to correct the opinion, with a desire on the part of the masses
injustices that are inherent in employer- and of the government to look after and care for
employee relationship. Meaning of police power the interests of the individuals of the State, have
 It provides the set of restrictions upon the brought within the police power of the State
worker in his relationship with the employer and Police power is based on two Latin Maxims: many questions for regulation which formerly
vice-versa in order to maintain industrial peace 1. Salus populi est suprema lex – the welfare of the were not considered7
and harmony; thereby promoting industrial people is the supreme law
democracy. 2. Sic utere tuo ut alienum non laedas – so use your B. Social Justice clause
 It promotes the welfare of the people – salus own as not to injure another’s property
populi est suprema lex.
Extents and limits of police power
Sources of labor laws 4
Police power – includes everything essential to the public Bavier v. Connoly
5
Primary sources safety, health, morals, to justify the destruction or U.S.v. Gomez Jesus
6
Marsh v. Alabama
3 7
Abalos v. POEA People v. Pomar
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts
Art. 2, Sec. 10. The State shall promote social justice in all
phases of national development
Social justice8
Social justice, neither communism nor socialism
Communism is an ideology characterized economically by
the State’s total ownership of all the means of production
and distribution, and politically by a rigid dictatorial control
of an individual under the so-called dictatorship of the
proletariat
Socialism is an economic ideology which advocates
substantial ownership of the means of production and
distribution of the State
Nature of the principle of social justice
 It asserts that the well-being and economic
security of all the people is the end and justice
the means
 Social justice is not necessary for the well-being
and economic security of the higher income
groups, because though their own efforts, they
can stand even without governmental help9
 The object of the social justice clause is the
common man; his social and economic uplift is
its concern.
 Social justice and full protection to labor
guaranteed by the fundamental charter is not
some romantic notion, high in rhetoric but low in
substance10
 Social justice should be a living reality and not a
mere high level abstraction in the fundamental
law11
Social justice tramples not the right of others; Invoking
social justice with clean hands
 Charity and social justice cannot be properly
resorted to trample upon the rights of others nor
to shield wrongdoings or illegal acts prejudicial to
8 12
Calalang v. Williams
9 13
Samanillo v. Cruz, C.A.
10
Marcopper Mining Corp. v. NLRC
11
Magnolia Corp. v. NLRC
the rights of property owners who, under the
Constitution are also entitled to protection12
 Those who invoke social justice may do only if
their hands are clean and their motives
blameless13
 It is never justified to prefer the poor because
they are poor, or to reject the rich simply
because they are rich, for justice must always be
served, for poor and rich alike, according to the
mandate of the law14
Compassion and mercy subordinate to justice for all
 Before there can be an occasion for compassion,
sympathy and mercy, there must be justice for
all. Otherwise, employees will be encouraged to
steal and misappropriate in the expectation that
eventually, in the name of social justice and
compassion, they will not be penalized but
instead financially rewarded 15
 Justicia nemini neganda est – justice is to be
denied to none
 The Employees Compensation Law (PD 626)
operates on the principle of social justice, but
sympathy to the workers should be placed in a
sensible equilibrium with the stability of the ECC
trust fund.
Social justice and regulation of property
 To achieve social justice, regulation of wealth
and diffusion of wealth are constitutionally
decreed.
Social justice and the State as parens patriae
 Parens patriae
 The state may bring suit to protect the property
rights of the people, enforce charities of a public
nature, defend the interests of helpless infants
and lunatics, or provide for the confinement of
PNCCv. NLRC
Gustilo v. Wyeth Phils. Inc.
14
Gelos v. CA
15
SMC v. NLRC
Protektado ni: Asiong Salonga
minors in reformatories where they may receive
training and education16
Concept of laissez faire not fully embraced; Welfare state
concept adopted
Laissez faire is an economic theory based on non-
governmental interference in business or economic affairs
 The Constitution recognizes the significant role
of the private or business sector; however, it has
not embraced fully the concept of laissez faire or,
otherwise, relied on pure market forces to
govern the economy17
 What the Constitution adopted, in lieu of laissez
faire theory, is the welfare state concept which is
manifested in its provisions such as the principle
of social justice and the protection to labor
clause18
C. Protection to labor clause
Art. XIII, Sec. 3.
 All doubts in the implementation and
interpretation of labor laws must be resolved in
favor of labor.
Right to labor, a property right
 A man who has been employed to undertake
certain labor and has put into it his time and
effort is entitled to be protected. The right of a
person to his labor is deemed to be property
within the mantle of constitutional protection.
 Waivers of rights and labor contravene public
policy and are null and void.
 It has been held that the acceptance by the
claimant of separation pay and his signing a
renunciation of any other claim against the
company does not preclude his filing charge for
unfair labor practice; the employer’s claim of
estoppel or laches would be unavailing 19
16
Gov’t of the P.I. v. Monte Piedad
17
Employers Confederation of the Phils. v. NWPC
18
Alalayan v. NPC
19
Phil. Movie Pictures Workers Association v. Premiere
Productions, Inc.
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts
Capital and labor are indispensable partners
 When the conflicting interests of labor and
capital are weighed on the scales of social
justice, the heavier influence of the latter must
be counterbalanced by the sympathy and
compassion the law must accord the
underprivileged worker.20
 Employers who are more in an advantageous
position than their employees should be more
compassionate to their workers’ need for
without them, business would cease to operate 21
Meaning of full employment
Frictional employment – unemployment due to workers
having the wrong skills or being found in wrong places to
get the necessary jobs, full employment still exists.
 Full employment is also consistent with a
situation where people who have the skills
refuse to work because they have more than
enough to sustain themselves.
 Full employment – “those who want to work at
the prevailing rates of pay are able to find work
without undue difficulty”
 It covers a situation under which there are more
job openings than there are job applicants
 Unemployment – is involuntary idleness on the
part of an employee who is able and willing to
work but could hardly find one.
Significance of full employment
1. It ushers economic gain
2. It promotes social and economic security
3. It promotes human dignity
4. It is an antidote against revolutionary ideologies
5. It regulates employers’ discriminatory practices
Constitutional rights of workers
1. Right to self-organization
20
Eastern Shipping Lines, Inc. v. POEA
21
Dela Concepcion v. Mindanao Portland Cement Corp.
 The right to form associations or societies for
purposes not contrary to law shall not be
abridged.
 PD 823 – encourages unionism and free
collective bargaining within the framework of
arbitration, voluntary or mandatory.
2. Right to collective bargaining
 Employees are enabled to obtain a relative
equality of bargaining power with the employer,
for it compels him to deal with them as a group
rather than as isolated individuals.
 The objective and normal end-result of collective
bargaining is the formation of a contract, known
as Collective Bargaining Agreement (CBA)
3. Right to security of tenure
 The employer shall terminate the services of an
employee for just causes as provided in the
Labor Code or when authorized by existing law.
 Tenure may mean permanent or regular status
granted a worker usually after a probationary or
trial period.
 Security of tenure is the right of the worker to
be secure or to continue in employment until the
same is terminated by authorized or just cause
provided by law.
 Not confined to termination, and may also
include unwarranted and unconsented demotion
or transfer.
4. Right to just and humane condition of work
This right includes:
 Right to regular working hours
 Right to regular working days
 Right to overtime work
 Right to weekly rest periods
 Right to additional compensation on scheduled
rest day/special holiday
 Right to compensation for holiday work
 Right to hospitalization;
5. Right to collective negotiations
Protektado ni: Asiong Salonga
 Collective negotiations – unionism in the
government or public sector
Q: May government employees collectively bargain?
A: Yes, it is a right enshrined in the constitution.
However, the constitutional record show that employees in
the government sector cannot collectively bargain on
terms and conditions of employment simply because the
same are fixed by law and determined by civil service law,
rules and regulations.
6. Right to peaceful concerted activities
 Boycott, pickets and strikes provided that it be
conducted in a peaceful manner.
7. Right to strike
 Strike is defined as any temporary stoppage of
work by the concerted action of employees as a
result of any industrial or labor dispute designed
to compel the employer to accede to certain
demands of the employees
 The right to strike must be in accordance with
law.
8. Right to a living wage
Q: Is minimum wage a living wage?
A: Not necessarily. The purpose of minimum wage is to set
a barrier below which wages may not fall.
 Living wage is not a mere subsistence wage but
one sufficient to enable the worker to live in
reasonable comfort; a wage that can provide him
and his family a decent standard of living.
9. Right to participate in policy and decision-
making processes
 “principle of shared responsibility”, “co-
determination”, “co-sharing” or the doctrine of
participatory democracy in labor relations”
 Enshrined in RA 6715
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts
 The SC held that the company should allow the
union to participate in the amendment of the
company’s Code of Discipline for its provisions
have repercussions on the employee’s right to
security of tenure 22
10. Right to just share in the fruits of production
 “The State shall regulate the relations between
workers and employers, recognizing the right to
labor to its just share in the fruits of production”
is not self-executory.
D. Doctrine of Incorporation
 “The Philippines… adopts the generally accepted
principles of international law as part of the law
of the land…”
 The Philippines, a signatory member of the
United Nations and a party to the Convention on
the Privileges and of the Specialized Agencies of
the UN, adheres to the doctrine of immunity
granted to the UN and its specialized agencies 23
Limitations on the enactment of labor legislation
1. Observance of non-impairment of contracts
 There is an impairment when the law deprives a
party to the contract of the benefits provided
therein or changes the terms of the contract by
imposing new conditions, or dispensing with
such conditions.
 XPN: subject to the police power of the state
 Art. 1700. Besides, labor contracts, being
impressed with common interests, are subject to
special laws on labor unions, collective
bargaining agreements, strikes, lockouts, etc.
2. Observance of non-delegation of legislative
power
 The power conferred upon Congress to make
laws cannot be delegated by that department to
any other body or authority. Where the
22
PAL, Inc. v. NLRC
23
Lasco v. NLRC
sovereign power of the state has located the
authority, there it must remain and by that
constitutional authority alone must the law be
made until the Constitution itself is changed.
 The rule is based on the ethical principle that
delegated power constitutes not only a right but
also a duty to be performed by the delegate
through the instrumentality of his own
judgment, acting immediately upon the matter
of legislation and not another. 24
 A law empowering a certain body or agency to
decide a controversy based on justice and equity
and on the merits of the case is a sufficient
standard to guide such body in the
determination of such controversy 25
 Example: Art. 236(g). Empowers the Sec. of
Labor and Employment to assume jurisdiction
over labor disputes causing or likely to cause
strikes or lockouts adversely affecting the
national interest and thereafter to decide or
certify the same to the NLRC. Not
unconstitutional26
3. Observance of the constitutional provision
against involuntary servitude
 “no involuntary servitude in any form shall exist
except as a punishment for a crime whereof the
party shall have been duly convicted.
 Purpose: to abolish slavery of whatever name,
form, and all its badges; to render impossible any
state of bondage; to make labor free by
prohibiting control by which the personal
services of one man is disposed of or coerced for
another’s benefit which is the essence of
involuntary servitude27
 XPN: In the exercise of the police regulation of
the state, citizens may be required to help in the
repair of public highways.
4. Observance of equal protection of the law
24
U.S. v. Barrias
25
Antamok Gold Fields v. CIR
26
Telephone Workers Union v. The Hon. Minister
27
Bailey v. Alabama
Protektado ni: Asiong Salonga
 Equal protection means that no person of class
of persons shall be denied the same protection
of the law which is enjoyed by other classes of
persons under like circumstances, in their lives,
in their liberty, and in their pursuit of happiness.
 GR: Classification violates the very essence of the
principle
o XPN: If the classification is not
capricious or arbitrary but natural and
reasonable, then the guaranty is not
violated
 Test of reasonableness:
o It must rest on substantial and real
distinctions
o It must be germane to the purpose of
law
o It must apply to all members of the
same class
 A law which suspends court actions for
ejectment for leases covered by such law does
not violate the equal protection clause. It is a
police power legislation intended to remedy the
situation of the lessee28
Constitutional and Statutory Basis
Promotion of the common good
 “in order to build a just and humane society and
establish a Government that shall embody our
ideals and aspirations, promote the common
good”
Protective service clause
Art. II, Sec. 5. The enjoyment by the people of the
blessings of democracy can be attained through the
maintenance of peace and order, the protection of life,
liberty and property, and promotion of the general
welfare.
Freedom from poverty
Art. II, Sec. 9 The State is mandated to free the people
from poverty through policies that provide adequate social
service, promote employment, a rising standard of living,
and an improved quality of life for all.
28
Gutierrez v. Cantada
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts Protektado ni: Asiong Salonga
 Constitutional provisions protecting labor are in o Which proceeds upon inquiry, and
 Poverty generally means a low status line with the predominant thinking all over the o Renders judgment only after trial
 Freedom of poverty can be attained only upon world safeguarding human dignity30  Audie alteram partem – no man should be
full satisfaction of the basic necessities of life  The view that the pay or compensation of the condemned unheard
brought about by full employment, a rising worker for his toil should be the topmost priority  It is incumbent upon the employer to conduct a
standard of living and an improved quality of life in the scale of values, which view is anchored on formal investigation and inform him of the
for all. the worth and dignity of the human person, is specific charges against him. The employer must
reiterated.31 be reminded that, under our system of
Standard and cost of living, distinguished government, even the most hardened criminals
Principle of distributive justice are given their day in court.
Standard of living Cost of living  The twin requirement of notice and hearing
Defined as a social and Defined as a social and Art. XII, Sec. 6. The use of property bears a social function, constitutes essential elements of due process
economic concept which economic concept which and all economic agents shall contribute to the common which cannot be dispensed without running
deals with “what” facilities deals with “how much”” good. Individuals and private groups, including afoul of the due process requirement of the
are needed by an facilities that an employee corporations, cooperatives, and similar collective Constitution.32
employee necessary to could cost in order to organizations, shall have the right to own, establish, and
assure himself and his maintain his standard of operate economic enterprises, subject to the duty of the Right to equal protection of the law
family a life worthy of living worthy of human State to promote distributive justice and to intervene
human dignity dignity when the common good so demands.  See Observance of the equal protection of the
law
 Plane of living – the level upon which an To effect the above provisions: Art XIII, Sec. 1. The  The equal protection clause extends only to civil
employee actually lives. It represents his actual Congress shall give highest priority to the enactment of rights. It does not extend to rights which are
expenditures and his actual consumption of measures that protect and enhance the right of all the political or which arises from the form of
goods and services. people to human dignity, reduce social, economic, and government and its mode of administration 33
political inequalities, and remove cultural inequities by  Aliens cannot invoke denial of equal protection
Escalator clause in the CBA equitably diffusing wealth and political power for the against the prohibition that they cannot exercise
common good. the right of suffrage, engage in business reserved
Escalator clauses - wage rates under periodically usually for Filipinos, and hold public office.
with specific rises in the consumer price index or cost-of- To this end, the State shall regulate the acquisition,  Equal protection is designed to safeguard against
living index, but prohibit a decrease to reflect a drop in the ownership, use, and disposition of property and its acts of the State and not against the conduct of
cost of living increments. private individuals or persons; it does not add
anything to the right which a citizen has against
Purpose: To adjust the monetary features of the contract Freedom of initiative and self-reliance another under the Constitution. The right of
to meet inflationary situation which is robbing the equal protection is a restraint on all three grand
employees of the gains they have previously made of any Art. XII, Sec. 2. The promotion of social justice shall include departments of government and on the
of the fruits of their increasing productivity. the commitment to create economic opportunities based subordinate instrumentalities and subdivisions
on freedom of initiative and self-reliance thereof34
Promotion of human dignity Right to due process  Art. 245, as amended by EO 111. “Employees of
government corporations established under the
Art. II, Sec. 11. The State values the dignity of every human  “No person shall be deprived of life, liberty, or Corporation Code shall have the right to organize
person and guarantees full respect for human rights. property without due process of law, nor shall and to bargain collectively with their respective
 In a democracy, the preservation and any person be denied the equal protection of the employers. All other employees in the civil
enhancement of the dignity and worth of the laws” service shall have the right to form associations
human personality is the central core as well as  Due process of law is synonymous with “law of for purposes not contrary to law.
the cardinal article of faith of our civilization 29 the land”
o A law which hears before it condemns 32
Century Textile Mills, Inc., et. al. v. NLRC, et. al.
30 33
Central Textile Mills, Inc. v. NLRC Ex Parte Virginia
29 31 34
PBM Employees Organization v. PBM Co., Inc. DBP v. NLRC People v. Vera
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts
Art. III, Sec. 11. Free access to the courts and quasi-judicial 2.
Q: Do rights to organize and negotiate in the government bodies and adequate legal assistance shall not be denied
sector include the right to strike? to any person by reason of poverty. 3.
A: No. The government as an employer assumes that since  Without this provision, a person is still entitled
it represents the sovereign power, it must reserve the right to free access to courts by reason of the due
to determine the terms and conditions of employment process and equal protection clause of the
under which its employees work. Constitution35 4.
 A strike of gov’t employees which results from Right against involuntary servitude
dissatisfaction over wages, hours of work and
other working conditions becomes, un the light Art. III, Sec. 18. No involuntary servitude in any form shall
of the principle of State sovereignty, an exist except as a punishment for a crime whereof the party
insurrection against public authority shall have been duly convicted.
Protektado ni: Asiong Salonga
Slavery or bondage is the entire subjection of
one to another
Peonage – is service of the peon to another on
account of an enforced indebtedness, usually
arising from advances made by an employer in
the form of food, clothing, housing or
transportation
Padrone system – Is one where the workers are
employed through their leader known as the
padroni who advances transportation charges
and supplies food and clothing for them. In
return for these services, the worker agrees to
serve any employer with whom the padroni had
contracted to sell a worker’s labor 38

Government employees and employees in the private  Art. 272. The RPC penalizes anyone who shall Right against imprisonment for debt
sector, distinguished purchase, kidnap, or detain a human being for
the purpose of enslaving him Art. III, Sec. 20. No person shall be imprisoned for debt or
Government employees Employees in the private  Art. 273. It also penalizes any person who, under non-payment of a poll tax
sector the pretext of reimbursing himself a debt
The government is Private enterprise is created incurred by an ascendant, guardian or person  Conversion of the monetary indemnity imposed
established to promote the for profit or gain entrusted with the custody of a minor, shall as part of criminal liability into subsidiary
common good against the latter’s will, retain him in his service. imprisonment does not violate the prohibition of
Terms and conditions in Employment in the private imprisonment foe debt, obligation to indemnity
gov’t employment are sector is governed by labor XPN: being ex-contractu not ex-delicto.
fixed by law and governed laws and the collective
by civil service law bargaining 1. When involuntary servitude is imposed as a Capital-labor relations impressed with public interest
Public funds are Funds are contributed by punishment for a crime whereof the party shall
appropriated pursuant to private individuals or have been duly convicted;  Art. 1700 to 1712 of the Civil Code
law enacted by Congress institutions 2. When the citizens are required to render  Labor contracts are not merely contracts because
The doctrine of State Private entity does not personal military or civil service; they are impressed with public interest
sovereignty which possess sovereign will 3. It does not apply to an ordinary case of restraint
underlies the existence of of personal liberty, such as the obligation of the Principle of non-oppression
all governments based on child to his parents
salus populi est suprema 4. In the exercise of the police regulation of the  Art. 1702. Neither capital nor labor shall act
lex state or citizen, citizens may be required to help oppressively against the other, or impair the
for the repair of public highways and streets 36 interest or convenience of the public.
5. It does not apply to exceptional service, such as  The law, in protecting the rights of the labourer,
 It is noteworthy that the right to form and join
military or naval enlistment37 authorizes neither oppression nor self-
associations and unions is not absolute or
destruction of the employer 39
unlimited. Thus, if a person accepts employment
Forms of involuntary servitude  The employer may be liable for damages if, in
that falls under the civil service law and his
terminating the employment, it also committed
employer performs governmental function, he
1. Servitude – denotes a condition of voluntary or an anti-social and oppressive abuse of its right to
may resort to and exercise the right to strike
compulsory subjection of a person to a master investigate and dismiss its employee in violation
because that is prohibited by law.
of Art. 1701 of the Civil Code which prohibits
Right to free access to the courts 35
Barbier v. Connolly
36 38
Henley v. State Rubi v. Provincial Board of Mindoro
37 39
Robertson v. Baldwin Colgate-Palmolive Philippines, Inc. v. Ople
Kung ano-anong SHIT sa Labor Standards – General Principles and Concepts
oppression by either capital or labor against the
other40
 As a measure of self-protection against acts
inimical to its interest, a company has the right
to dismiss its erring employees. The law does not
impose unjust situations on either labor or
management41
 To require a company to continue being
generous when it is no longer in a position to do
so would certainly be unduly oppressive, unfair
and most revolting42
Principle of liberal construction in favour of labor
 Art. 1702. “in case of doubt, all labor legislations
and all labor contracts shall be construed in
favour of the safety and decent living for the
labourer”
 Applies only when there is doubt
 Verba legis non est recedendum – from the
words of the statute there can be no departure
 While the Constitution is committed to the policy
of social justice and the protection of the
working class, it should not be supposed that
every labor dispute will be automatically decided
in favour of labor. Management also has its own
rights which are entitled to respect and
enforcement in the interest of simple fair play43
Protektado ni: Asiong Salonga
employees for to do otherwise would violate the
rule on non-suability of the State 44
 Salaries of employees in the private sector can
be subject to garnishment or attachment45
Employer cannot retain laborer’s tool
Art. 1709. “the employer shall neither seize nor retain any
tool or other articles belonging to the labourer.”
 Dismissal of an employee must be done without
abuse of discretion. The right of an employer to
freely select or discharge his employees is
regulated by the State, because the preservation
of the lives of the citizens is a basic duty of the
State, more vital than the preservation of
corporate profit46
 “LIFO” rule” “last in, first out”. In absence of
LIFO, the method shall yield to the sound
discretion of the management47

Labor wages not subject to execution

Art. 1708. “the laborer’s wages shall not be subject to

execution or attachment, except for debts incurred for
food, shelter, clothing and medical attendance.

XPN: debts incurred for food, shelter, clothing and medical

attendance

 It is settled that earned salaries of government

employees still in the hands of public officers
cannot be garnished until they are paid to the

40 44
Hilario v. NLRC Dir. of Commerce and Industry v. Concepcion
41 45
Mercury Drug Corp. v. NLRC Gaa v. CA
42 46
North Davao Mining Corp. v. NLRC Esmalin v. NLRC
43 47
Mercury Drug Corp. v. NLRC Maya Farms Employees Org. v. NLRC