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San Beda College of Law

MEMORY AID IN LABOR LAW

labor and capital, and it has


BOOK FIVE been held that the rights of the
general public are paramount.
LABOR RELATIONS  Labor relations policy under the LC is
embodied in Section 3 Article XIII of
TITLE I the 1987 Constitution which guarantees
to all workers their right among others
POLICY AND DEFINITIONS to:

1. Self-organization,
 ART. 211. DECLARATION OF POLICY
2. Collective bargaining and
negotiations,
 LABOR RELATIONS – the interactions
3. Peaceful and concerted activities
between the employer and employees including the right to strike in
and their representatives and the accordance with law, and
mechanism by which the standards and 4. Participate in policy and
other terms and conditions of decision-making processes
employment are negotiated, adjusted affecting their rights and
and enforced. benefits as may be provided by
law.
 LABOR RELATIONS LAW – those
intended to stabilize the relations of  ART. 212. DEFINITIONS
employees and their employers, adjust
differences between them through the EMPLOYER- one who employs the
encouragement of collective bargaining,
services of others; one for whom
and settle labor disputes through
employees work and who pays their
conciliation, mediation and arbitration.
wages or salaries.
any person acting in the interest of an
 it defines the status, rights, and employer, directly or indirectly. The
duties and the institutional term does not include a labor
mechanisms that govern the organization or any of its officers and
individual and collective agents, EXCEPT when acting as an
interactions of employers, employer.
employees or their
representatives. EMPLOYEE- one who works for an
 Absent an employer-employee employer; a person working for salary or
relation, there is no labor wages.
relations to speak of.  Shall not be limited to the
employees of a particular
- Collective bargaining process is employer, and it shall include
possible only when there is a labor any individual whose work
organization, i.e., (1) labor union has ceased as a result of or in
or (2) employee association. connection with any current
labor dispute or because of any
POLICY is intended to install industrial unfair labor practice IF he has
democracy centered on collective not obtained any other:
bargaining, leading to social justice as 1. Substantially equivalent
the end goal. and
2. Regular employment
PARTIES TO LABOR RELATIONS CASES: (Art.212f)
1. employee’s organization,
2. management, and ICAWO vs. CIR (16 SCRA 562): The
3. the public category of “any employee” is so broad
 The public is always to be as to justify employee status for
considered in disputes between supervisors, regular workers, casual

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

employees, emergency laborers, - Deals with the employer on


substitute workers, seasonal workers, matters affecting the employee’s
part-time workers and other special rights, benefits and welfare.
work groups. - Purposes are to:
a. promote gainful employment
APEX MINING CO., vs. NLRC (196 SCRA b. improve working conditions and
251): Laundrywoman not actually c. achieve increased productivity
serving the family of the employer but (RA 6971)
working in the staff houses or within the
premises of the employer’s business is a LABOR ORGANIZATION — any union or
regular employee and is not included in association of employees which exists in
the definition of domestic helper. whole in part for the purpose of
collective bargaining with employers
FELIX vs. BUENASEDA (240 SCRA 139): concerning terms and conditions of
Residency or resident physician position employment.
in a medical specialty is not employment
but connotes training and temporary LEGITIMATE LABOR ORGANIZATION-
status. (No E-E relationship) any labor organization which is duly
registered with the Department of Labor.
The term includes a local/chapter of the
 WORKER’S ASSOCIATION - any Bureau of Labor Relations directly
association of workers organized for the chartered by a legitimate federation or
mutual aid and protection of its national union which has been duly
members or for any legitimate purpose reported to the Department in
other than for collective bargaining. accordance with Rule VI, Section 2 of
Book V of the Rules Implementing the
 INDEPENDENT UNION – It refers to any LC.
labor organization operating at the
enterprise level whose legal personality  LABOR DISPUTE – includes any
is derived through an independent action controversy or matter concerning:
for registration with the Bureau of Labor
Relations (BLR) of the Department of 1. terms or conditions of employment
Labor and Employment prescribed under OR
2. the association or representation of
Art. 234. It may be affiliated with a
persons in negotiating, fixing,
federation, national or industry union, in maintaining, changing or arranging
which case it may also be referred to as the terms and conditions of
an affiliate. employment

FEDERATION - any labor organization REGARDLESS of whether the disputants


with at least 10 locals/chapters or stand in the proximate relation of
affiliates each of which must be a duly employer and employee.
certified or recognized as the sole and
exclusive collective bargaining agent of  The test
the employees of an appropriate of whether a labor controversy comes
bargaining unit. within the definition of a labor dispute
depends on whether it involves or
LEGITIMATE WORKER’S ASSOCIATION – concerns terms, conditions of
refers to an association of workers employment, or representation.
organized for mutual aid and protection
of its members of for any legitimate  TYPES OF LABOR DISPUTES:
purpose other than collective bargaining 1. Labor Standards Disputes
registered with the Department in a. Compensation [e.g.,
accordance with Rule III, Sections 2-C underpayment of minimum
and 2-D of these rules. wage; stringent output quota;
illegal pay deductions]
 LABOR MANAGEMENT COUNCIL

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

b. Benefits [ e.g., nonpayment of CREATION AND COMPOSITION


holiday pay, overtime pay or other
benefits]  ART. 213. NATIONAL LABOR
c. Working conditions [e.g., unrectified
work hazards] RELATIONS COMMISSION

2. Labor Relations Disputes  NLRC – an administrative body with


a. Organizational right dispute/ quasi-judicial functions and the principal
unfair labor practice [e.g., government agency that hears & decides
coercion, restraint or labor-management disputes; attached to
interference in unionization the DOLE for program & policy
efforts; reprisal or discrimination coordination only.
due to union activities; company
unionism] POWERS of the NLRC – as amended by
b. Representation disputes [e.g., R.A. 6715
determination of the collective
bargaining unit; ULP strike;  EN BANC
uncertainty as to determination
of the sole and exclusive 1. Promulgating rules &
bargaining agent of the regulations governing the
employees in an appropriate hearing & disposition of cases
bargaining unit which is the before any of its divisions and
majority union] regional branches and
c. Bargaining disputes [e.g., refusal formulating policies affecting
to bargain (ULP); bargaining its administration and
deadlock; economic strike or operations.
lockout]
d. Contract administration or 2. Under R.A. 7700: to allow cases
personnel policy disputes [e.g., within the jurisdiction of any
noncompliance with CBA division to be heard and
provisions (ULP if gross decided by any other decision
noncompliance with economic whose docket allows the
provisions); disregard of additional workload.
grievance machinery; violation
no strike/no lockout agreement]  DIVISION
e. Employment tenure disputes
[e.g., non regularization of 1. Exercises adjudicatory or
employees; illegal termination; appellate power over decisions
non-issuance of employment of Labor Arbiters and Regional
contract] Directors of the DOLE over
monetary claims not over
 PARTIES TO A DISPUTE: P5,000.00 and all other powers,
1. PRIMARY PARTIES – employer, functions and duties through its
employees, union divisions.
2. SECONDARY PARTIES – voluntary
arbitrator, agencies of DOLE (BLR,  TRIPARTISM
VAC), NLRC, Sec. of Labor, Office of
the President  The NLRC is composed of five (5)
divisions.
TITLE II
 Three (3) sectors are
NATIONAL LABOR RELATIONS represented in the composition
COMMISSION of the NLRC.

CHAPTER I  Each division composed of three


commissioners will have

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

representatives from the


following: A. EXCLUSIVE AND ORIGINAL
JURISDICTION OF THE NLRC:
1. from the public sector-
nominated by the Secretary 1. Cases certified to it for compulsory
of Labor arbitration by the Secretary of Labor
2. workers organizations- under Art. 263 – CERTIFIED CASES;
nominated by the labor
federation 2. INJUNCTION CASES under Art. 218
3. employer and and 264; AND
management sector- 3. CONTEMPT CASES
nominated by the Employer’s
Confederation of the B. EXCLUSIVE APPELLATE JURISDICTION
Philippines (ECOP) OF THE NLRC:

 QUALIFICATIONS OF THE CHAIRMAN AND 1.Cases DECIDED BY LABOR


THE COMMISSIONERS: ARBITERS under Art 217b of the
1. must be a member of the Labor Code and Sec 10 RA
Philippine Bar; 8012(Migrant Workers Act); and
2. must have been engaged in the
practice of law in the Philippines 2.Cases DECIDED BY THE REGIONAL
for at least 15 years; OFFICES OF DOLE IN THE EXERCISE
3. must have experience or OF ITS ADJUDICATORY FUNCTION
exposure in handling labor under Art 129 of the Labor Code over
management relations for at monetary claims of workers
least 5 years; and amounting to not more that
4. preferably a resident of the P5,000.00
region where he is to hold office.
 THE NLRC ONLY SITS EN BANC FOR
 The appointment of the Chairman PURPOSES OF:
and the Commissioners of the NLRC
are not subject to confirmation by a. promulgating rules and regulations
the Commission on Appointments. governing the hearing and disposition of
cases before any of its divisions and
 QUALIFICATIONS OF EXECUTIVE regional branches, and
LABOR ARBITERS/LABOR ARBITERS:
1. must be members of the b. formulating policies affecting its
Philippine Bar; administration and operations.
2. must have been engaged in the  The Commission may only sit
practice of law in the Philippines en banc for the determination
for at least 7 years; and of policies and NOT for
3. must have experience or purposes of adjudication. (RA
exposure in handling labor 6715)
management relations for at
least 3 years.  Adjudication of cases certified
to the NLRC, or appealed to it
 TERM OF OFFICE OF THE CHAIRMAN, from the decision of its Labor
COMMISIONERS, AND LABOR ARBITERS: Arbiters are referred to and
decided by its five (5) divisions.
 They shall hold office during good
behavior until they reach the age of -Petitions for certiorari (Rule 65)
65 unless removed for causes as against decisions of the NLRC should
provided by law or become henceforth be initially filed with the
incapacitated to discharge the Court of Appeals in strict observance of
function of his office. the doctrine on the hierarchy of courts
as the appropriate forum for the relief

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

desired. The Court of Appeals is 3. If accompanied WITH A


procedurally equipped to resolve unclear CLAIM FOR REINSTATEMENT,
or ambiguous factual finding, aside from those cases that workers may
the increased number of its component file involving wages, rates of
divisions. (St. Martin’s Funeral Homes pay, hours of work and other
vs. NLRC; G.R. No. 130866) terms and conditions of
employment;
- Findings of facts of a labor tribunal
are accorded the utmost respect by the 4. Claims for actual, moral,
courts and are well-nigh conclusive if exemplary and other forms of
supported by substantial evidence. DAMAGES arising from employer-
employee relations;
- Labor cases are not subject to
Barangay Conciliation since ordinary 5. CASES ARISING FROM ANY
rules of procedure are merely suppletory VIOLATION OF ART 264 of this
in character vis-à-vis labor disputes Code, including questions
which are primarily governed by labor involving the legality of strikes
laws. and lockouts;

- The failure of the petitioner to 6. Except claims for Employees


file a motion for reconsideration of the Compensation, Social Security,
decision of NLRC before filing a petition Medicare and maternity benefits,
for certiorari has in certain instances ALL OTHER CLAIMS ARISING
been held not to be a fatal omission. FROM EMPLOYER-EMPLOYEE
RELATIONS, including those of
- In certain cases however the persons in domestic or household
filing of a Motion for Reconsideration is service, involving an amount
deemed a condition sine qua non for the exceeding P5,000.00 regardless
filing of a Petition for Certiorari. of whether accompanies with a
claim for reinstatement;
CHAPTER II
POWERS AND DUTIES 7. MONETARY CLAIMS OF
OVERSEAS CONTRACT WORKERS
under the Migrant Workers Act of
 ART. 217. JURISDICTION OF 1995; and
LABOR ARBITERS AND THE COMMISSION
8. Claims of employees against
 EXCLUSIVE AND ORIGINAL GOCCs if the latter does not
have an original charter and has
JURISDICTION OF LABOR ARBITERS:
been incorporated under the
Corporation Code.
- Except as otherwise provided
under this Code the Labor Arbiters
shall have original and exclusive  Although the provision speaks of
jurisdiction to hear and decide, within EXCLUSIVE AND ORIGINAL
30 calendar days after the submission of JURISDICTION OF labor arbiters,
the case by the parties for decision the cases enumerated may
without extension, even in the absence instead be submitted to a
of stenographic notes, the following voluntary arbitrator by
cases involving all workers, whether agreement of the parties under
agricultural or non-agricultural: Art. 262. The law prefers
voluntary over compulsory
1. ULP cases; arbitration.

2. TERMINATION disputes;  Cases which must be disposed of


by the labor arbiter by referring the

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

same to the grievance machinery and agencies such as IRRI, WHO etc.
voluntary arbitration: unless they expressly waive their
immunity. (Lasco vs. UNRFNRE)
a. Disputes on the
interpretation or implementation of  They also have no jurisdiction over
CBA and illegal dismissal cases of corporate
officers which fall under PD 902-A
b. those arising from the and now fall under the jurisdiction of
interpretation or enforcement of the Regular Courts pursuant to the
company personnel policies. New Securities Regulation Code.
[Formerly under the jurisdiction of
 The labor arbiter and the NLRC have the Securities and Exchange
no jurisdiction over claims filed by Commission (SEC) (Dily-Daly Nakpil
employees against international vs NLRC)]
 In the absence of service of
summons or a valid waiver  PROCEDURE FOR THE ISSUANCE
thereof, the hearings and OF RESTRAINING ORDER/ INJUNCTION:
judgment rendered by the labor a. filing of a verified PETITION
arbiter are null and void.
b. HEARING AFTER DUE AND PERSONAL
 COMPULSORY ARBITRATION: The NOTICE has been served in such manner
process of settlement of labor disputes as the Commission shall direct, to:
by a government agency which has the a. all known persons against
authority to investigate and make and whom the relief is sought and
award binding to the parties. b. also to the Chief Executive
or other public officials of the
The NLRC may conduct compulsory province or city within which the
arbitration only in national interest cases unlawful acts have been
referred to it by the DOLE secretary. threatened or committed
charged with the duty to protect
 Labor arbiters’ jurisdiction is the complainant’s property.
employment related.
c. RECEPTION AT THE HEARING OF
 ART. 218. POWERS OF THE THE TESTIMONIES OF WITNESSES
COMMISSION with opportunity for cross-
examination, in support of the
 POWERS OF THE NLRC: allegations of the complaint made
under oath as well as testimony in
a. R
opposition thereto
ule-making power [promulgation
of rules & regulations governing
d. FINDING OF FACT of the Commission
disposition of cases before any of
to the effect that :
its divisions/regional offices]
b. P  prohibited or unlawful acts
ower to issue compulsory have been threatened and will
processes [administer oaths, be committed, or have been
summon parties, issue committed and will be
subpoenas] continued unless restrained,
c. Power to investigate matters and but no injunction or temporary
hear disputes within its restraining order shall be
jurisdiction [adjudicatory power issued on account of any
—original & appellate threat, prohibited or unlawful
jurisdiction over cases] act, except against the
d. Contempt power [218] persons, association or
e. Power to issue injunctions and organization making the threat
restraining orders or committing the prohibited
or unlawful act or actually

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

authorizing or ratifying the temporary injunction upon


same after actual knowledge hearing after notice;
thereof. 3. The complainant shall first FILE
 That substantial and AN UNDERTAKING WITH
irreparable injury to the ADEQUATE SECURITY/BOND in
complainant’s property will an amount to be fixed by the
follow Commission sufficient to
 That as to each item of relief recompense those enjoined for
to be granted, greater injury any loss, expenses or damage
will be inflicted upon caused by the improvident or
complainant by the denial of erroneous issuance of such order
the relief than will be inflicted or injunction, including all
upon the defendants by the reasonable costs, together with
granting of the relief a reasonable attorney’s fee, and
 That complainants has no expense of defense against the
adequate remedy at law granting of any injunctive relief
sought in the same proceeding
 That public officers charged
and subsequently denied by the
with the duty to protect
Commission.
complainant’s property are
 The TRO shall be effective
unable or unwilling to furnish
adequate protection. for no longer than 20 days and shall
become void at the expiration of
e. Posting of a BOND said 20 days counted from the date
of the posting of the bond.
IRREPARABLE INJURY: An injury  It may be lifted or it may be
which cannot be adequately upgraded to a permanent injunction.
compensated in damages due to the  The procedural and
nature of the injury itself or the nature substantial requirements of Art 218
of the right or property injured or when (e) must be strictly complied with
there exists no pecuniary standard for before an injunction may issue in a
the measurement of damages. labor dispute.

ADEQUATE REMEDY: One that  THE FOLLOWING CAN ISSUE


affords relief with reference to the INJUNCTIONS/ TRO IN LABOR DISPUTES:
matter in controversy and which is
appropriate to the particular 1. President (ART. 263, g)
circumstances of the case. 2. Secretary of Labor (ART. 263, g)
3. NLRC (218)
 The power of the NLRC to enjoin or 4. Labor Arbiters (ART. 217/RULE XI
restrain the commission of any or all Sec. 1 of IR&R)
prohibited or unlawful acts under Art. 5. Regional Directors
218 of the Labor Code can only be 6. Med- Arbiters
exercised in a labor dispute.
 ART. 219. OCULAR INSPECTION
 REQUISITES BEFORE TRO MAY BE
ISSUED EX PARTE:  The Chairman, any Commissioner,
1. The complainant shall ALLEGE labor Arbiter or their duly authorized
THAT, unless a TRO is issued representatives may, at anytime during
without notice, a substantial working hours:
and irreparable injury to a. Conduct an ocular inspection on
complaint’s property will be any establishment, building,
unavoidable; ship, place or premises,
2. TESTIMONY UNDER OATH is including any work, material,
sufficient, if sustained, to justify implement, machinery,
the Commission in issuing a

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

appliance or any object therein; or put an end to one already


and commenced.
b. Ask any employee, laborer, or
any person as the case may be  ART. 222. APPEARANCES AND
for any information or date FEES
concerning any matter or
question relative to the object of APPEARANCE OF NON-LAWYERS
the investigation BEFORE THE COMMISSION:

 ART. 221. TECHNICAL RULES NOT GENERAL RULE: ONLY lawyers can
BINDING AND PRIOR RESORT TO appear before the NLRC or a Labor
AMICABLE SETTLEMENT Arbiter
 The NLRC may disregard technical
rules of procedure in order to give life to EXCEPTIONS: Non-Lawyers can
the constitutional mandate affording appear ONLY in the following instances:
protection to labor. (Principe vs.
Philippine-Singapore Transport Services 1. if they represent
Inc.) themselves;
2. if they represent their
 RES JUDICATA applies only to organization or members
judicial or quasi-judicial proceedings and thereof; or
NOT to the exercise of administrative 3. if he is a duly accredited
powers. member of the legal aid office
duly recognized by the DOJ in
 APPROVAL OF AN AMICABLE cases referred thereto by the
SETTLEMENT BY A LABOR ARBITER latter or by the IBP.
An amicable settlement of a labor
dispute should be approved by the labor ATTORNEY’S FEES:
arbiter before whom the case is pending 1. Art. 111 Labor Code (simple
after being satisfied that: monetary claim)
The maximum amount to be
a. it was VOLUNTARILY ENTERED into given a lawyer for his legal
by the parties and assistance rendered which is 10% of
the total monetary award adjudged
 after having EXPLAINED the employees excluding the award
TO THEM THE TERMS AND for moral and exemplary damages.
CONSEQUENCES thereof. To demand more than this is
unlawful.
PURPOSE: for the employee’s
protection—because the labor arbiter 2. Art. 222
before whom the case is pending would
be in a better position than just any a. Attorney’s fees for CBA
other person to personally determine the negotiations and conclusion shall
voluntariness of the agreement and be in the amount agreed upon by
certify its validity (Periquet vs. NLRC). the parties to be taken from the
union funds and not from
 The Rules of Court are applied in a individual union members.
suppletory character.
b. This article prohibits the
 COMPROMISE, as a way of settling payment of attorney’s fees only
where the same is effected
disputes is encouraged
through forced contributions
 through compromise, the
from the workers form their own
parties, by making reciprocal
funds as distinguished from union
concessions, avoid litigation
funds.

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law

MEMORY AID IN LABOR LAW

c. Neither the lawyer nor the A. decisions of the regional director:


union itself may require the
individual workers to assume the  within 5 calendar days from
obligation to pay the attorney’s receipt of the order [129 LC—
fees from their own pockets. Recovery of wages and simple
Any agreement to the contrary money claims of the amount not
shall be null and void. exceeding P5,000.00].

 ARTICLE 211 VS ARTICLE 222 B. decisions of the labor arbiter:

ART. 211 ART. 222  within 10 calendar days from


Prohibits the Prohibits the the receipt of the decision.
award of attorney’s payment of  The appeal must be under oath
fees which exceed attorney’s fees only
10% of the amount when it is effected
and must state specifically the
of wages through forced grounds relied upon and the
recovered. contribution from the supporting arguments.
workers from their  Where the 10th day falls on a
own funds as Saturday, Sunday or legal
distinguished from holiday, the appeal may be filed
union funds on the next business day. (Rules
PURPOSE: to PURPOSE: to of Procedure of NLRC)
fix the limit on the prevent the
amount of imposition on the
attorney’s fees. workers of the duty  PERIOD TO APPEAL—NOT
The victorious to individually EXTENDIBLE
party may recover contribute their  It is the policy of the state to
in any respective shares in settle expeditiously labor
administrative or the fee to be paid to disputes.
judicial the attorney for his
 The perfection of an appeal
proceeding. services to the union.
within the statutory/
reglementary period is not
CHAPTER III only mandatory but also
jurisdictional and failure to
APPEAL do so renders the questioned
decision final and executory
 ART. 223. APPEAL as to deprive the appellate
court of jurisdiction to alter
 GROUNDS FOR APPEAL: the final judgment of the
RDs and LAs. (Aboitiz
1. If there is prima facie evidence Shipping Employees
of abuse of discretion on the part of Association vs. Trajano)
the Labor Arbiter  REQUISITES FOR THE PERFECTION
2. If the decision, order or award OF AN APPEAL TO THE NLRC:
was secured through fraud or 1. Filing of A VERIFIED
coercion, including graft and MEMORANDUM OF APPEAL within
corruption; the required period of appeal;
3. If made purely on questions of 2. In case of monetary award, when
law; and the appellee is the employer he
4. If serious errors in the findings of should file an APPEAL BOND
facts are raised which would cause corresponding to the monetary
grave or irreparable damage or award excluding awards for moral
injury to the appellant. and exemplary damages and
attorney’s fees.
 PERIODS WITHIN WHICH TO  Where the employer
APPEAL: failed to post a bond to
perfect its appeal, the

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 10

MEMORY AID IN LABOR LAW

remedy of the employee is a adverse party is not a jurisdictional


motion to dismiss the effect and does not justify dismissal of
appeal, NOT a petition for the appeal.
mandamus.
 The intention of the
lawmakers is to make the  AMOUNT OF APPEAL BOND: amount
bond an indispensable equal to the monetary award exclusive
requisite for the perfection of damages (moral and exemplary) plus
of an appeal by the attorney’s fees.
employer.
3. Appeal fee of P150;  OPTIONS OF THE EMPLOYER IN
4. Proof of service - furnish the COMPLYING WITH AN ORDER OF
other party with a copy of the REINSTATEMENT WHICH IS IMMEDIATELY
memo of appeal. EXECUTORY:
1. He can ADMIT THE DISMISSED
 Failure to give a copy of employee back to work under the
the appeal to the appellee same terms and conditions prevailing
within 10 days is not fatal IF prior to his dismissal or separation or
the latter was not to a substantially equivalent position
prejudiced by the delay in if the former position is already
the service of said copy of filled up, OR
the appeal—technical rules
must yield to the broader 2. He can REINSTATE THE
interest of substantial EMPLOYEE MERELY IN THE PAYROLL
justice. (Modern Fishing WITH PAYMENT OF THE ACCRUED
Gear Labor Union vs. Noriel) SALARIES.
 A mere notice of appeal  Failure to exercise one
does not stop the running of of the foregoing options may
the reglementary period of be compelled under pain of
appeal. contempt and the employer
may be made to pay instead
 EXECUTION PENDING APPEAL - the the salary of the employee.
decision of the labor arbiter ordering
the reinstatement of a dismissed or  A petition for relief from the decision
separated employee shall be of the labor arbiter must strictly
immediately executory insofar as the comply with 2 reglementary periods:
reinstatement aspect is concerned and
the posting of an appeal bond by the 1. The petition must be filed within
employer shall not stay such 60 days from knowledge of the
execution. judgment; and
2. The petition must be filed within
 There is no need for a a fixed period of 6 months from
motion for the issuance of entry of such judgment.
writ of execution on the  Petitions filed beyond
reinstatement order as it is said period will no longer be
self-executory. (Pioneer entertained.
Texturizing Co. vs. NLRC)
 APPEAL FROM THE DECISION OF THE
 Perfection of appeal within the NLRC:
reglementary period is both MANDATORY
and JURISDICTIONAL. (ACDA vs NLRC; No law allows an appeal from a
Volkschel vs NLRC) decision of the Secretary of Labor, or the
NLRC, or of a voluntary arbitrator. In
 Non-service of the copy of the these cases, the special civil action of
appeal/appeal memorandum to the certiorari, prohibition or mandamus

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 11

MEMORY AID IN LABOR LAW

under Rule 65 of the Rules of Court may BUREAU OF LABOR RELATIONS


be lodged with the Court of Appeals.
(St. Martin’s Funeral Home vs. CA)
 No Motion for Reconsideration is  ART. 226. BUREAU OF LABOR
allowed for any order, decision RELATIONS
or award of a Labor Arbiter.
However a Motion for Pursuant to E.O. 126, the NATIONAL
Reconsideration of a Labor CONCILIATION AND MEDIATION BOARD
Arbiter’s decision, award or (NCMB) has absorbed the conciliation,
order which has all the elements mediation and voluntary arbitration
of an appeal may be treated as functions of the BLR.
appeal.
 Only one Motion for Jurisdiction over labor-
Reconsideration of the decision, management problems or
award or order of the disputes is also exercised by
commission on appealed cases other offices such as the DOLE
before it. regional offices, and the Office
of the Secretary, NLRC, POEA,
 ART 224. EXECUTION OF OWWA, SSS-ECC, the regional
DECISIONS, ORDER, OR AWARDS wage and productivity boards,
NWPC, and even the regular
The decision of the Secretary of courts over intra-corporate
Labor, the Commission, the Bureau or disputes.
Regional Director the Labor Arbiter, the  EXCLUSIVE AND ORIGINAL
Med-Arbiter or the Voluntary Arbitrator JURISDICTION OF THE BLR
shall be final and executory after 10 -to act at its own initiative or upon
calendar days from receipt thereof by the request of either or both parties on
the parties and shall be executory all:
within ten (10) years.
1. INTRA- union conflicts
 The foregoing may, upon its
own initiative or on motion of 2. INTER- union conflicts
any interested party, issue a
writ of execution on a 3. all DISPUTES, GRIEVANCES OR
judgment within 5 years from PROBLEMS ARISING FROM OR
the date it becomes final and AFFECTING LABOR MANAGEMENT
executory. RELATIONS IN ALL WORKPLACES
 An independent action is WHETHER AGRICULTURAL OR NON-
required for the execution of the AGRICULATURAL.
final judgement within the next
of following 5 years [ Phil.  The parties may however, by
National Railways vs NLRC (177 agreement, settle their
SCRA740, Sept. 19, 1989)] differences by submitting their
 The immediate execution of case to a voluntary arbitrator
judgment should be undertaken rather than taking the case to
only when the monetary award the BLR.
had been carefully and
accurately determined by the  CASES WHERE THE BLR HAS NO
NLRC and only after the JURISDICTION:
employer is given the Those arising from the
opportunity to be heard and to implementation or interpretation of
raise objections to the collective bargaining agreements which
computation. shall be subject of grievance procedure
and/or voluntary arbitration.
TITLE III

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 12

MEMORY AID IN LABOR LAW

 INTRA-UNION DISPUTES – refers to any m. violations of the rights of


conflict between and among union legitimate labor organizations,
members, including grievances arising except interpretation of CBAs;
from any violation of the rights and n. such other disputes or conflicts
conditions of membership, violation of or involving the rights to self-
disagreement over any provision of the organization, union membership,
union’s constitution and by-laws, or and collective bargaining –
disputes arising from chartering or
affiliation. 1. between and among
legitimate labor
 MED-ARBITER- an officer in the organizations
regional office or bureau authorized to 2. between and among
hear, conciliate, and decide members of a union or
representation cases or assist in the worker’s association
disposition of intra or inter-union
disputes. EXTENDED COVERAGE (Section 2 Rule XI
DO 40-03)
COVERAGE OF INTER/INTRA-UNION Other related labor relations
DISPUTES (Sec. 1 Rule XI DO 40-03) disputes shall include any conflict
a. cancellation of registration of a between a labor organization and the
labor organization filed by its employer or any individual, entity, or
members or by any other labor group that is not a labor organization or
organization; worker’s association. This includes:
b. conduct of election of union and
worker’s association 1. cancellation of registration
officers/nullification of election of unions and workers
of union and worker’s association associations; and
officers; 2. a petition for interpleader
c. audit/accounts examination of
union or worker’s association  SPECIAL REQUIREMENTS AS TO THE
funds; FILING OF CASES:
d. deregistration of CBA; A. INVOLVING ENTIRE MEMBERSHIP
e. validity/invalidity of union
affiliation or disaffiliation; 1.The complaint must be signed by
f. validity/invalidity of at least 30% of the entire
acceptance/non-acceptance for membership of the union and
union membership; 2.It must also show exhaustion of
g. validity/invalidity of administrative remedies.
impeachment/ expulsion of
union and worker’s association B. INVOLVING A MEMBER ONLY - In such
officers; case only the affected member may
h. validity/invalidity of voluntary file the complaint.
recognition;
i. opposition to application for  Redress must first be sought
union and CBA registration; within the union itself in
j. violations of or disagreements accordance with its constitution
over any provision in a union or and by-laws EXCEPT under any
worker’s association constitution of the following circumstances:
and by-laws; a. futility of intra-union remedies
k. disagreements over chartering or b. improper expulsion procedure
registration of labor c. undue delay in appeal as to
organizations and CBAs; constitute substantial injustice
l. violations of the rights and d. the action is for damages
e. lack of jurisdiction of the
conditions of union or worker’s
investigating body
association membership;

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 13

MEMORY AID IN LABOR LAW

f. action of the administrative memorandum of appeal


agency is patently illegal, 3. Based on either of
arbitrary, and oppressive the following grounds:
g. issue is purely a question of law a. Grave abuse of
h. where the administrative agency discretion
had already prejudged the b. Gross violation
case of the Rules
i. where the administrative agency 4. With supporting
was practically given the arguments and evidence
opportunity to act on the case but it PERIOD Within 10 days from
did not. receipt of decision
 Imposition of fees by the union TO WHOM 1. Bureau of Labor
affects the entire membership, APPEALABLE Relations—if the case
therefore it requires that the originated from the Med
complaint should be signed by at Arbiter/Regional
Director
least 30% of the membership of
2. Sec. Of Labor—if the
the union. case originated from the
Bureau
 INTER-UNION DISPUTES -refers to any WHERE FILED Regional Office or to the
BLR, where the
conflict between and among legitimate
complaint originated
labor organizations involving (records are transmitted
representation questions for purposes of to the BLR or Sec.
collective bargaining or to any other WHO Withinunder
1. For grounds 24 hours from
Sec. 1:
conflict or dispute between legitimate a. receipt
any LLOof the
labor organizations based on any b. memorandum
member(s) thereof
of appeal)
specially concerned
violations of their rights as labor 2. For grounds under Sec. 2—any
organizations. party-in-interest
WHERE 1. Regional Office that issued its
certificate of registration or
EFFECTS OF FILING/PENDENCY OF FILED
certificate of creation of
INTER/INTRA-UNION DISPUTE AND chartered local- If it involves labor
OTHER LABOR RELATIONS DISPUTES unions with independent
(Section 3 Rule XI DO 40-03) registrations, chartered locals,
worker’s association, its officers or
- The rights, relationships and obligations of members
the parties litigants against each other and 2. Directly with the Bureau—If it
other parties-in-interest prior to the involves a Federation/National
institution of the petition shall continue to Unions/Industry Unions, its
remain during the pendency of the petition officers or members
and until the date of finality of the decision FORMAL 1. in writing
rendered therein. Thereafter, the rights, 2. verified under oath
REQUIRE-
relationships and obligations of the parties 3. contains the following
MENTS averments
litigants against each other and other parties-
a. name, address and other
in-interest shall be governed by the decision personal circumstances of the
so ordered. complainant(s) or petitioner(s);
- The filing or pendency of any inter/intra- b. name, address and other
union disputes is not a prejudicial question to personal circumstances of the
any petition for certification election and respondent(s) or person(s)
shall not be a ground for the dismissal of a charged;
petition for certification election or c. nature of the complaint or
petition;
suspension of proceedings for certification
d. facts and circumstances
election. surrounding the complaint or
petition;
 SUMMARY OF RULES ON INTRA/INTER- e. cause(s) of action or specific
UNION DISPUTES (Rule XI DO 40-03) violation(s) committed;
f. a statement that the
administrative remedies provided
 MODES OF APPEAL IN INTRA/INTER- for in the constitution and by-laws
UNION DISPUTES (Rule XI DO 40-03) -have been exhausted or
HOW (formal 1. Under oath -such remedies are not
2. Consist of a readily available to the
requirements) complainant(s) or
petitioner(s) through no fault
of his/their own or
-compliance with such
LABOR LAW COMMITTEE administrative remedies does
not apply
 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADSto complainant(s)
: Aimee Roselle or
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)petitioner(s);
 EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye g. Pioquinto
relief(s) prayed for;
h. certificate of non-forum
shopping; and
i. other relevant matters
San Beda College of Law 14

MEMORY AID IN LABOR LAW

 Cannot be entered into when


the final judgment is already in
 DETERMINATION OF EMPLOYER- the process of execution.
EMPLOYEE RELATIONSHIP: (Jesalva vs. Bautista)

- Since the BLR has the original and


exclusive jurisdiction to decide,
inter alia, all disputes, grievances or
problems arising from or affecting
labor-management relations in all FORMAL REQUIREMENTS OF A VALID
workplaces, necessarily, in the COMPROMISE AGREEMENT:
exercise of this jurisdiction over 1. in writing
labor-management relations, the 2. signed in the presence of the regional
Med-Arbiter has the authority, director or his duly authorized
original and exclusive, to representative.
determine the existence of an
employer-employee relationship. WITH vs. WITHOUT ASSISTANCE OF
(MY San Biscuits, Inc. vs. Laguesma DOLE-COMPROMISE AGREEMENTS
G.R. No. 9511, 22 April 1991) Without assistance With the
of DOLE assistance of
 In cases where there is DOLE
overlapping of jurisdiction, a.
determine the principal issue. VALIDITY/BINDING
The agency that has jurisdiction EFFECT
thereon may decide on the - Valid and binding - Valid and binding
incidental issues. upon the parties upon the parties
b. REPUDIATION
 ADMINISTRATIVE FUNCTIONS OF THE - Can be - Can no longer be
BLR: repudiated by the repudiated—
1. The REGULATION OF parties by going to becomes final and
REGISTRATION of the labor unions; the Commission binding upon the
2. The KEEPING OF A REGISTRY of parties upon
labor unions; NOTE: ULP cases execution EXCEPT
3. The maintenance of a FILE OF are not subject to a. in case of non
CBAS. ART. 227. COMPROMISE compromise. compliance
AGREEMENTS; and with the
4. The maintenance of a file of all compromise
settlements or final decisions of the agreement;
Supreme Court, Court of Appeals, or
NLRC and other agencies on labor if there is
disputes. prima facie
evidence that the
 REQUIREMENTS: settlement was
a. must be freely entered into; obtained through
b. must not be contrary to law, morals fraud,
or public policy; and misrepresentation,
c. must be approved by the authority or coercion
before whom the case is pending [see
discussion on article 221—approval of OPTIONS WHEN COMPROMISE
labor arbiter of an amicable AGREEMENT IS VIOLATED:
settlement in a case before him. 1. enforce compromise by writ of
 May be effected at any stage execution
of the proceedings and even 2. regard it as rescinded and insist upon
when there is already a final original demand.
executory judgment (2040 NCC).

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 15

MEMORY AID IN LABOR LAW

 REQUIREMENTS OF A VALID  The certification of the CBA by the BLR


QUITCLAIM: is not required to put a stamp of validity
to such contract. Once it is duly entered
1. The quitclaim must be VOLUNTARILY into and signed by the parties, a CBA
ARRIVED at by the parties; becomes effective as between the
2. It must be WITH THE ASSISTANCE of parties regardless of whether or not the
the Bureau of Labor Standards, same has been certified by the BLR.
Bureau of Labor Relations or any
representative of the DOLE; and
3. The CONSIDERATION MUST BE  ART 232. PROHIBITION ON
REASONABLE (required only when CERTIFICATION ELECTION
entered without the assistance of
DOLE) CONTRACT BAR RULE: provides that
while a valid and registered CBA is
 Dire necessity is not an subsisting for a fixed period of 5 years ,
acceptable ground for annulling the Bureau is not allowed to hold an
the releases, especially in the election contesting the majority status
absence of proof that the of the incumbent union except during
employees were forced to the sixty (60) day period immediately
execute them. (Veloso vs. DOLE) prior to its expiration, which period is
called the freedom period.
 WAIVER OF REINSTATEMENT – like
waivers of money claims, a waiver of  The existence of the CBA bars the
reinstatement must be regarded as a holding of an inter-union electoral
personal right which must be contest and the filing of the Petition for
exercised personally by the workers Certification Election except within the
themselves. (Jag & Haggar Jeans and freedom period.
Sportswear Corp. vs. NLRC)
PURPOSE: to minimize union
 ART 231. REGISTRY OF UNIONS “politicking” until the proper time
AND FILE OF COLLECTIVE comes.
AGREEMENT
 ART 233. PRIVILEGED
 The CBA is more than a contract, COMMUNICATION
it is highly impressed with public
interest for it is an essential PRIVILEGED COMMUNICATION: Any
instrument to promote industrial statement of such privacy that the law
peace. exempts the person receiving the
 Must be filed directly with the information from the duty to disclose it.
Bureau or the Regional Offices of
DOLE within thirty (30) days  Information and statements made at
from execution. conciliation proceedings shall be treated
 An UNREGISTERED CBA does not as privileged communication and shall
bar certification election not be used as evidence in the
[contract bar rule will not apply Commission.
in the absence of registration.
[See discussion on Arts. 253 &  Conciliators and similar officials
253-A] may not testify in any court or
body regarding any matters
 Registration of the CBA is not a taken up at conciliation
requisite for its validity. proceedings conducted by them.

LIBERTY FLOUR MILLS EMPLOYEES v.


LFM, INC. 180 SCRA 668

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 16

MEMORY AID IN LABOR LAW

PURPOSE OF FORMATION OF LABOR


UNIONS: for securing a fair and just
wages and good working conditions for
the laborers; and for the protection of
labor against the unjust exactions of
capital

TITLE IV MODES OF ACQUIRING LEGITIMACY FOR


LABOR ORGANIZATIONS
LABOR ORGANIZATIONS
1. Registration with the BLR
(Independent Union)
CHAPTER I
2. Affiliation with a legitimate labor
federation
REGISTRATION AND CANCELLATION
[REGISTRATION REQUIREMENTS FOR
LABOR ORGANIZATIONS (as amended by
 ART. 234. REQUIREMENTS OF DO 40-03)]
REGISTRATION 3. Application for registration
LABOR ORGANIZATION - Any union or 4. Attachments
association of employees which exists in  name of the applicant labor
whole or in part for the purpose of: union, its principal address;
a. collective bargaining or  the name of its officers and their
b. of dealing with employer respective addresses;
concerning terms and conditions of
employment. o approximate number of
 It is the agent of the employees in the bargaining
employees of an appropriate unit where it seeks to
bargaining unit. operate, with a statement
that it is not reported as a
PRINCIPLE OF AGENCY APPLIED chartered local of any
federation or national union;
 Principal – employees
 Agent – local/chapter o the minutes of the
 Agent of agent – federation organizational meeting(s)
and the list of employees
LEGITIMATE LABOR ORGANIZATION or who participated in the said
LABOR UNION meeting(s);

– any labor organization duly registered o the name of all its members
with the Department of Labor and comprising at least 20% of
Employment, and Bureau of Labor the employees in the
Relations. bargaining unit;

 Not every legitimate labor o the annual financial reports


organization can act as if the applicant has been in
bargaining representative and be existence for one or more
certified as such. This is true years, unless it has not
only of a union that has won in collected any amount from
certification election or has been the members, in which case
voluntarily recognized by the a statement to this effect
employer. shall be included in the
application;

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 17

MEMORY AID IN LABOR LAW

 MINISTERIAL DUTY OF THE BLR


othe applicant’s constitution COMPELLABLE BY MANDAMUS- to review
and by-laws, minutes of its the application for registration and not
adoption or ratification, and the issuance of a Certificate of
the list of the members who Registration.
participated in it. The list of
ratifying members shall be - After a labor organization had filed the
dispensed with where the necessary papers and documents for
constitution and by-laws was registration, it becomes mandatory for
ratified or adopted during the BLR to check if the requirements
the organizational meeting. under Article 234 have been sedulously
In such a case, the factual complied with. If its application for
circumstances of the registration is vitiated by falsification
ratification shall be recorded and serious irregularities, especially
in the minutes of the those appearing on the face of the
organizational meeting(s). application and the supporting
(These are called reportorial documents, a labor organization should
requirements) be denied recognition as a legitimate
labor organization. (Progressive
 The application for registration of Development Corporation-Pizza Hut vs.
labor unions xxx, shall be certified under Laguesma et al., GR No. 115077, April
oath by its Secretary or Treasurer, as the 18, 1997)
case may be, and attested by its
president.  PURPOSE OF REGISTRATION -
Registration with the BLR is the
 The attachments must now be in operative act that gives rights to a labor
one(1) original copy and two (2) organization.
duplicate copies which shall accompany
the application or notice, and submitted  It is the fact of being registered
to the Regional Office or the Bureau. with the DOLE that makes a
labor organization legitimate in
 A prescribed registration fee must be the sense that it is clothed with
paid before the issuance of the legal personality to claim
certificate of registration representational and bargaining
rights enumerated in Article 242
Where to file application for or to strike or picket under
registration: Article 263.
 The requirement of registration
1. For registration of independent labor
is NOT a curtailment of the
unions, chartered locals, worker’s
right to association. It is merely
associations shall be filed with the
a condition sine qua non for the
Regional office where the applicant
acquisition of legal personality
principally operates. It shall be
by labor organizations,
processed by the Labor Relations Division
associations or unions and the
at the Regional office.
possession of the rights and
privileges granted by law to
2. Applications for registration of
labor organizations.
federations, national unions or workers’
 A valid exercise of police power
associations operating in more than one
region shall be filed with the bureau or since the activities in which
the regional offices, but shall be labor organizations, associations,
processed by the bureau. or unions of workers are engaged
affect public interest, which
should be protected. (PAFLU vs.
Sec. Of Labor)

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 18

MEMORY AID IN LABOR LAW

FEDERATION- any labor organization is the incumbent bargaining


with at least 10 locals/chapters or agent.
affiliates each of which must be duly
certified or recognized as the sole and  A union of supervisory employees may
exclusive collective bargaining agent of affiliate with a national federation of
the employer they represent. labor organizations of rank and file
employees PROVIDED that:
 REQUIREMENTS BEFORE A
FEDERATION CAN BE ISSUED A a. the federation is not actively
CERTIFICATE OF REGISTRATION: involved in union affairs in the
company; and
Aside from the application, which b. the rank and file employees are not
must be accompanied with the directly under the control of the
requirements for registration of a labor supervisors
registration, the application should also  ONCE AFFILIATED, A LOCAL
be accompanied by the following: UNION MAY DISAFFILIATE FROM THE
1. Proof of affiliation of at least 10 FEDERATION.
locals or chapters, each of which
must be a duly recognized sole and
exclusive collective bargaining agent
in the establishment or industry in
which it operates, supporting the
registration of such applicant
federation or national union;
2. The names and addresses of the
companies where the locals or
chapters operate and the list of all
the members in each company
involved.

 A LOCAL UNION MAY AFFILIATE WITH A


FEDERATION - The procedure of
affiliation would depend on whether the
union is independently registered or not.

REQUIREMENTS OF AFFILIATION (as


amended by DO 40-03)
1. Report of affiliation of independently
registered labor union
2. Attachments:
a. resolution of the labor union’s
board of directors approving the
affiliation;
b. minutes of the general
membership meeting approving
the affiliation;
c. the total number of members
comprising the labor union and
the names of members who
approved the affiliation;
d. the certificate of affiliation
issued by the federation in favor
of the independently registered
labor union; and
e. written notice to the employer
concerned if the affiliating union

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 19

MEMORY AID IN LABOR LAW

INDEPENDENT CHARTERING
INDEPENDENTLY UNREGISTERED
REGISTRATION REGISTERED

 Obtained TO -byA signingduly


a.HOW a contract of -by application of the union
by union
AFFILIATE registered
affiliation with the federation for the
organizers federation/na issuance of a charter
in an tional union certificate to be submitted to
enterprise issues a the Bureau accompanied by
through charter to a the following:
a. Copies of its constitution
their own union in an
and by-laws
action enterprise b. Statement of the set of
and registers officers and
the charter Books of accounts, all of
with the which must be certified by
regional the Secretary/Treasurer and
office or the attested to by the President.
BIR. In such case, the union
becomes a local chapter of
the Federation.
 Indepen-  Chapter/local
dent
union

b.EFFECT OF
With legal - would
No notlegal affect its being a upon severance, it would
DISAFFILIATION
personalit legitimate
personality of organization
labor cease to be a legitimate labor
TO THE and therefore it would organization and would no
y UNION
of its its own as
[local] continue to have legal longer have legal personality
own long as itand
personality has to possess all and the rights and privileges
thenot
rightsavailed
and privileges of a granted by law to legitimate
itself labor
legitimate of organization. organization, unless the local
independent chapter is covered by a duly
registration. registered collective
bargaining agreement. In the
 Applicatio  Charter latter case, the local or
chapter will not lose its legal
n for certificate is personality until the
registratio issued by a expiration of the CBA. After
n is filed federation or the CBA expires it will lose its
with and national legal personality unless it
will be union is filed registers as an independent
acted with the union.
upon by regional
the DOLE office or BLR
c. EFFECT OF
regional - with
an existing
30 days CBA would The CBA would continue to be
DISAFFILIATION continue to be valid as the valid. The local chapter will
office after the
TO THE CBAthe labor organization can not lose its personality until
where issuance of
continue administering the the expiration of the CBA.
applicant’ CBAthe charter After the CBA expires the
s principal certificate. local union looses its
office is personality, unless it registers
located. anew.

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
San Beda College of Law 20

MEMORY AID IN LABOR LAW

d. ENTITLEMENT -labor organization is entitled - union dues may no longer


TO UNION DUES to the union dues and not the be collected as there would
AFTER federation from which the no longer any labor union that
DISAFFILIATION labor organization is allowed to collect such
disaffiliated. union dues from the
employees.
Note: Follow the principle of
agency between federation
and local.
 Principal – employees
 Agent – local/chapter
Agent of agent – federation

LABOR LAW COMMITTEE


 CHAIRPERSON: Francis Benedict Réotutar  ASSISTANT CHAIRPERSON: Juanito Lim, Jr.  SUBJECT HEADS: Aimee Roselle
Sabilala(Labor Standards), Elsa Villaflor(Labor Relations), Maria Fe Taal (Special Laws)  EDP: Flora Sherry Basquiñez
 ASST. EDP’S: Jennifer Trinidad, Ma. Jasmine Isip, Emil Bien Ongkiko, Kareen Faye Pioquinto
WHEN TO DISAFFILIATE

GENERAL RULE: A labor union may disaffiliate from the mother union to form an independent
union only during the 60-day freedom period immediately preceding the expiration of the
CBA.

EXCEPTION: DISAFFILIATION BY MAJORITY

 This happens when there is a substantial shift in allegiance on the part of the majority
of the members of the union. In such a case, however, the CBA continues to bind the
members of the new or disaffiliated and independent union up to the CBA’s expiration
date.

LIMITATION: disaffiliation should be in accordance with the rules and procedures stated in the
Constitution and by-laws of the federation.

 A prohibition to disaffiliate in the Federation’s constitution or by-laws is valid—


intended for its own protection.

 REVOCATION OF CHARTER BY THE FEDERATION - by serving the local/chapter a verified


notice of revocation, copy furnished the Bureau on the ground of disloyalty or such other
grounds as may be specified in its constitution or by-laws.

 The revocation shall divest the local chapter of its legal personality upon receipt of the
notice by the Bureau, unless in the meantime the local chapter has acquired
independent registration. (Rule VIII Section 5 of the IRR)

WORKER’S ASSOCIATION: Association of workers for the mutual aid and protection of its
members or for any legitimate purpose other than collective bargaining.

 ART. 236. DENIAL OF REGISTRATION; APPEAL

- Decisions of the BLR denying the registration of a labor organization is appealable to the
Secretary of Labor within 10 calendar days from receipt of the decision, on grounds of:

a. grave abuse of discretion; or


b. gross incompetence
- even before the onset of the freedom period, disaffiliation may still be carried out, but
such disaffiliation must be effected by a majority of the union members in the bargaining
unit.

decision of the regional office or the bureau denying the application for registration shall be:
1. in writing
2. stating in clear terms the reason for the decision
3. applicant union must be furnished a copy of said decision
 ART. 238. CANCELLATION OF REGISTRATION; APPEAL

The certificate of registration of any legitimate labor organization shall be cancelled by


the BLR if it has reason to believe, after due hearing, that the said labor organization no
longer meets one or more of the requirements prescribed by law.

 GROUNDS FOR CANCELLATION:


1. Failure to comply with any of the requirements prescribed under Arts. 234
(requirements for registration of a labor union) & 237 (add’l. reqts. federation
registration) of the Code.

2. Violation of any of the provisions of Art. 239 (grounds for cancellation of union
registration) of the Code

3. Commission of any of the acts enumerated under Art. 241 (rights and conditions of
membership) of the code- No petition for cancellation based on this ground 0may be
granted unless supported by at least 30% of all the members of the respondent labor
organization or worker’s association.

 A pronouncement as to the illegality of the strike is not within the meaning of


Art. 239 of the Code which provides for the grounds for cancellation of union
registration.

MODES OF APPEAL
DENIAL or CANCELLATION BY:

A. Regional Office
 transmit records within 24
hours from receipt of Memo of
Appeal
 BUREAU decides within 20
days from receipt of records
 SUPREME COURT- Rule 65
B. Bureau
 transmit records within 24
hours from receipt of memo
of appeal
 SEC. OF DOLE decides within
20 days from receipt of
records
 SUPREME COURT- Rule 65

*Appeal by memo of appeal


within 10 days from receipt of
notice.
GROUNDS:
1. Grave abuse of discretion
2. Violation of rules as
amended.
 EFFECT OF CANCELLATION OF REGISTRATION IN THE COURSE OF PROCEEDINGS
- 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 a party without
need of substitution of parties, subject however to the understanding that whatever decision
may be rendered therein will be binding only upon those members of the union who have not
signified their desire to withdraw from the case before its trial and decision on the merits.
[Principle of Agency applied—the employees are the principals, and the labor organization is
merely an agent of the former, consequently, the cancellation of the union’s registration,
would not deprive the consenting member-employees of their right to continue the case as
they are the considered as the principals]
 ART 239. GROUNDS FOR CANCELLATION OF UNION REGISTRATION

 GROUNDS FOR CANCELLATION OF UNION REGISTRATION:

A. FRAUDULENT ACTS

1. Misrepresentation, False statement or Fraud in connection with [RATIFICATION OF


CONSTI/BY-LAWS]:

a. the ADOPTION OR RATIFICATION of the constitution and by-laws or amendments


thereto,
b. the MINUTES of ratification, and
c. the LIST OF MEMBERS who took part in the ratification.

2. Misrepresentation, false statement or fraud in connection with the [ELECTION PAPERS]:

a. ELECTION of officers,
b. MINUTES of the election of officer and the list of voters, or
c. failure to submit these documents together with the list of the newly
elected/appointed officers and their postal addresses within 30 days from election

B. INACTION OR OMISSION

1. Failure to submit the following documents [RATIFICATION OF CONSTI/BY-LAWS]:


a. the adoption or ratification of
the constitution and by-laws or
amendments thereto,
b. the minutes of ratification, and
the list of members who took part in the ratification
*Within 30 days from adoption or ratification of the constitution and by-laws or
amendments thereto.
2. Failure to submit the Annual Financial report to the Bureau within 30 days after the closing
of every fiscal year and misrepresentation, false entries and fraud in the preparation of the
financial report itself;
3. Failure to submit a LIST OF INDIVIDUAL MEMBERS of the Bureau once a year or whenever
required by the Bureau; and
4. Failure to comply with the REQUIREMENTS UNDER ARTICLES 237.

C. UNLAWFUL ACTS
1. Acting as a labor contractor or engaging in the “CABO” SYSTEM, or otherwise engaging in
any activity prohibited by law;
2. Entering into collective bargaining agreements which provide terms and conditions of
employment below minimum standard established by law [CBA-BELOW MINIMUM
STANDARDS]; (Sweetheart Agreements)
3. Asking for or ACCEPTING ATTORNEY’S FEES OR NEGOTIATION FEES from the employers;
4. Other than for mandatory activities under this Code, checking off special assessment or any
other fees without duly signed individual written authorization of the members
[UNLAWFUL ASSESSMENTS];

CANCELLATION OF REGISTRATION
A. FOR:
1. Legitimate individual labor
union.
B. 2.
FOR:
Chartered local
1. 3.
Federations
Worker’s association
2. National or Industry unions
3. Trade union centers
 WHERE TO FILE
Regional Director who has
 WHERE TO FILE
jurisdiction over the place
Bureaurespondent
- where Director ( 30principally
days to
decide)
operates (30 days to decide).

 WHOWHO
MAYMAYFILEFILE
- Only the
- Any party in members
interest,ofifthe
ground
Labor
is: Organization concerned
if grounds
a. Failure are actions
to comply with any of
involving violations
the requirements under of Art.
Arts.
234, 237 and 238 LC 39% rule
241, subject to the
b. Violation of any provision under
Art. 239, LC
Take note of the cancellation
proceedings if violation is D and
J of Art. 239, LC

REPORTING REQUIREMENTS OF LABOR UNIONS AND WORKERS ASSOCIATIONS (Rule V DO 40-


03)
- It shall be the duty of every legitimate labor union and workers’ association to submit to the
Regional Office or Bureau which issued its certificate of registration or certificate of creation
of chartered local, as the case may be, two (2) copies of each of the following documents:
a. any amendment to its constitution and by-laws and the minutes of adoption or
ratification of such amendments, within 30 days from its adoption or ratification;
b. annual financial reports within 30 days after the close of each fiscal or calendar year;
c. updated list of newly-elected officers, together with the appointive offices or agents
who are entrusted with the handling of funds, within 30 days after each regular or
special election of officers, or from the occurrence of any change in the officers of
agents of the labor organization or workers association’
d. updated list of individual members of chartered locals, independent unions and
workers’ associations within 30 days after the close of each fiscal year; and
e. updated list of its chartered locals and affiliates or member organizations, CBAs
executed and their effectivity period, in the case of federations or national unions,
within 30 days after the close of each fiscal year, as well as the updated list of their
authorized representatives, agents or signatories in the different regions of the
country.

 RULES ON ADMINISTRATIVE CANCELLATION OF CERTIFICATE OF REGISTRATION OF LLOs DUE


TO NON-COMPLIANCE WITH THE REPORTORIAL REQUIREMENTS:
WHEN Failure to comply with its
PROPER legal duty to submit the
documents required to
be submitted under Rule
V of DO 40-03 for 5
consecutive years

WHO MAY 1. Motu propio by the


FILE THE Bureau
PETITION 2. Any party-in-interest
1st Notice
THREE- Bureau shall send by
NOTICE registered mail with return
REQUIRE card notice for compliance
indicating the documents it
MENT failed to submit and the
corresponding period in
which they were required,
with notice to comply with
the said reportorial
requirements and to submit
proof thereof to the Bureau
within 10 days from receipt
thereof
2nd Notice
Where no response is
received by the Bureau
within 30 days from the
release of the 1st notice,
another notice for
compliance shall be made
by the Bureau, with warning
that failure on its part to
comply with the reportorial
requirements within the
time specified shall cause
the continuation of the
proceedings for the
administrative cancellation
of its registration
3rd Notice
Where no response is again
received by the Bureau
within 30 days from release
of the 2nd notice, the Bureau
shall cause the publication
of the notice of cancellation
of registration of the labor
organization in 2
newspapers of general
circulation.

When no response is
received by the Bureau
within 30 days from the
date of publication or when
the Bureau has verified the
dissolution of the labor
organization, it shall order
the cancellation of
registration of the labor
organization AND cause its
de-listing from the roster of
legitimate labor
organizations

CHAPTER II

RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR ORGANIZATION

 ART. 241. RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR ORGANIZATION

 GENERAL GROUPINGS OF THE RIGHTS OF THE UNION MEMBERS:

1. Political right - the right to vote and be voted for, subject to lawful provisions on
qualifications and disqualifications.

2. Deliberative and Decision-Making Right - the right to participate in deliberations on major


policy questions and decide them by secret ballot.

3. Rights Over Money Matters - the right of the members:

a. against imposition of excessive fees;


b. right against unauthorized collection of contributions or unauthorized disbursements;
c. to require adequate records of income and expenses;
d. to access financial records;
e. to vote on officers compensation;
f. to vote on special assessment;
g. to be deducted a special assessment only with the member’s written authorization.

4. Right to Information - the right to be informed about:


a. the organization’s constitution and by- laws,
b. the collective bargaining agreement, and labor laws.

 Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union registration or expulsion of an officer from office, whichever is
appropriate. At least 30% of all the members of the union or any member or members
specifically concerned may report such violation to the Bureau.

 PERSONS WHO ARE PROHIBITED FROM BECOMING MEMBERS/OFFICERS OF A LABOR


ORGANIZATION UNDER THE LABOR CODE (see also notes under Art. 243 on persons who are
not granted the right to self-organization):

1. Subversives or those engaged in subversive activities [Art.241 (e)]


2. Persons who have been convicted of a crime involving moral turpitude shall not be eligible
for election as union officer or for appointment to any position in the union. [Art. 241 (f)]

 In general, a union is free to select its own members, and no person has an absolute
right to membership in a union.

LIMITATIONS [see discussion on union security arrangements under Art. 248]:


a. The labor org. cannot compel employees to become members of their labor organization if
they are already member of rival union.

b. persons mentioned in Art. 241(e) [subversives] of the labor code are prohibited from
becoming a member a labor organization.

c. members of religious organization whose religion forbade membership in labor


organization could not be compelled into union membership.

 REQUIREMENTS IN MAKING SPECIAL ASSESSMENTS or OTHER EXTRAORDINARY FEES (Art.


241 [n]):

1. there must be a WRITTEN RESOLUTION


2. he resolution must have BEEN APPROVED BY A MAJORITY of all the members

3. the approval must be AT A GENERAL MEMBERSHIP MEETING DULY called for that
purpose

 The secretary of the organization shall record the minutes of the meeting including:

a. the list of all members present,


b. the votes cast, and
c. the purpose of the assessment or fees

 The record shall be attested by the President.

 Substantial compliance to the aforementioned procedure is not enough—the


requirements must be strictly complied with in view of the fact that the special
assessment will diminish the compensation of union members. (Palacol et. al vs.
Ferrer-Calleja et. al)

 CHECK-OFF - a method of deducting from an employee’s pay at prescribed period, the


amounts due to the union for fees, fines or assessments.

NATURE AND PURPOSE OF CHECK-OFF:


 to facilitate the collection of dues necessary for the union’s life and sustenance.

 Union dues are the lifeblood of the union.

REQUIREMENTS WITH REGARD TO CHECK-OFFS (Art. 241 [o]):

- NO special assessment, attorney’s fees, registration fees or any other extraordinary fees may
be checked off from any amount due an employee WITHOUT an individual written
authorization duly signed by the employee.

The authorization should specifically state the:

a. amount
b. purpose and the beneficiary of the deduction.

 Jurisdiction over check-off disputes is with the Regional Director of the DOLE, not the Labor
Arbiter
 UNION DUES VS. AGENCY FEE
UNION DUES AGENCY FEE
a. DEDUCTED FROM - non-members of the
- members of a bargaining agent
union for the (union) for the
payment of union enjoyment of the
dues. benefits under the
CBA.
b. CONSENT - May be deducted
- May not be from the salary of
deducted from the employees without
salaries of the union their consent.
members without
the written consent
of the workers
affected

 Agency fee cannot be imposed on employees already in 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. (NABAILU vs. San Miguel Brewery
Inc)

 EXCEPTION TO THE REQUIREMENT OF INDIVIDUAL WRITTEN AUTHORIZATION:

1.For mandatory activities provided under the Code; and

2.When non-members of the union avail of the benefits of the CBA.

- said non-members may be assessed union dues equivalent to that paid by members

- only by a Board Resolution approved by majority of the members in a general meeting


called for the purpose

Will the employees-members of another union not be considered as free riders?

No since when the union bids to be the bargaining agent, it voluntarily assumes the
responsibility of representing all employees in the appropriate bargaining unit.

 SPECIAL ASSESSMENT vs. CHECK-OFF


SPECIAL CHECK-OFF
ASSESSMENTS
a. HOW APPROVED (Union Dues)
-by written resolution -by obtaining the
approved by majority individual written
of all the members at authorization duly
a meeting duly called signed by the
for that purpose employee which must
specify:
a. amount
b. purpose and
c. beneficiary of
the deduction.
b. EXCEPTION TO (Agency Fees)
SUCH REQUIREMENT -not necessary if:
-no exception—written 1. For mandatory
resolution is activities provided
mandatory at all under the Code; and
instances. 2. When non-members
of the union avail of
the benefits of the
CBA. Said non-
members may be
assessed agency fees
equivalent to that
paid by members only
by a Board Resolution
approved by majority
of the members in a
general meeting called
for the purpose.

CHAPTER III

RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

 ART. 242. RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

RIGHTS OF A LEGITIMATE LABOR ORGANIZATION [USERFOE]:

1.Undertake activities for benefit of members


2.Sue and be sued
3.Exclusive representative of all employees
4.Represent union members
5.Furnished by employers of audited financial statements
6.Own properties
7.Exempted from taxes

TITLE V

COVERAGE

 ART. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF–ORGANIZATION

 PERSONS/EMPLOYEES ELIGIBLE TO JOIN A LABOR ORGANIZATION FOR PURPOSES OF


COLLECTIVE BARGAINING:

1. All persons employed in commercial, industrial and agricultural (CIA) enterprises, and
2. In religious, charitable, medical or educational (RCME) institutions whether operating for
profit or not

 PERSONS/EMPLOYEES ELIGIBLE TO JOIN A LABOR ORGANIZATION FOR MUTUAL AID AND


PROTECTION (AIRSIW):
1. Ambulant,
2. Intermittent,
3. Rural,
4. Self-employed people
5. Itinerant workers and
6. Workers without any definite employers,
 PERSONS/EMPLOYEES WHO ARE NOT GRANTED THE RIGHT TO SELF-ORGANIZATION:
(HEMACEN)

1. High-level government employees (E.O. 180 Sec. 3) (MANAGERIAL GOVERNMENT


EMPLOYEES)

GOVERNMENT – GOVERNMENT – 2. Employees of international organizations


OWNED OR OWNED OR with immunities (ICMC vs. Calleja)
CONTROLLED CONTROLLED
CORPORATIONS WITH CORPORATIONS 3. Managerial employees
AN ORIGINAL WITHOUT  whose functions are normally
CHARTER ORIGINAL considered as policy-making or
CHARTER managerial
a. LAW
- Employees cannot stage - The GOCC is
 whose duties are of a highly
strikes since they are created under confidential or highly technical in
governed by the Civil Corporation Code, nature (212 LC)
Service Law. They are then employees are
enjoined by Civil Service covered by the Labor 4. Members of the Armed Forces of the
Memorandum Circular Code. Therefore
Philippines, including police officers,
No. 6, under pain of the employees have
administrative sanctions the same rights as policemen, firemen and jail guards (E.O.
from staging strikes, those as employees 180 Sec. 4);
demonstrations, mass of private
leaves, walkouts and corporations, one of 5. Confidential employees (Metrolab vs.
other concerted which is the right to Confesor)
activities. strike.
b. BARGAINING RIGHTS
- Corporations with 6. Employees of cooperatives who are
original charters - The GOCC is members (Benguet Elec. Coop. vs Calleja)
cannot bargain with created under
the government Corporation Code, 7. Non-Employees (Rosario Bros. vs Ople)
concerning the terms being governed by the
and conditions of Labor Code, they can
Foreigners validly working in the Philippines
their employment. bargain with the
However, they can government [with permit from DOLE] can form labor
negotiate with the concerning the terms organizations, provided the same right to
government on those and form, join or assist in the formation of labor
terms and conditions conditions of unions is also given to Filipinos in their country
of employment which their employment. of origin. This embodies the principle of
are not fixed by law. Thus, they have
Thus, they have unlimited bargaining
reciprocity.
limited bargaining rights.
rights. MAY SECURITY GUARDS FORM A LABOR
ORGANIZATION?
c.PURPOSE OF
ORGANIZATION - Can form, join or
YES. Under RA 6715, they may now freely join
- Can only form, join or assist labor a labor organization of the rank-and-file or that
assist labor organization organization for of the supervisory union, depending on their
for purposes not contrary purposes of CBA, etc. rank. (Meralco vs. Secretary of Labor)
to law.
 EXTENT OF THE RIGHT TO SELF-ORGANIZATION
1. To form, join and assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing and
2. To engage in lawful concerted activities for the same purpose- for their mutual aid and
protection.

 ART. 244. RIGHTS OF EMPLOYEES IN THE PUBLIC SERVICE

 THE FOLLOWING ARE CONSIDERED NEGOTIABLE IN GOCCs WITH ORIGINAL CHARTER:


1. schedule of vacation and other leaves
2. work assignment of pregnant women
3. personnel growth and development
4. communication system – lateral and vertical
5. provision for protection and safely
6. provision for facilities for handicapped personnel
7. provision for first-aid medical services for married women
8. annual medical/physical examination
9. recreational, social, athletic and cultural activities and facilities (Rules implementing
WO 180)

 THE FOLLOWING ARE CONSIDERED NOT NEGOTIABLE:

1. Those which require appropriation of funds, such as:

a. increase in salary emoluments and other allowance not presently provided for by
law
b. facilities requiring capital outlays
c. car plan
d. provident fund
e. special hospitalization, medical and dental services
f. rice/sugar/other subsidies
g. travel expenses
h. increase in retirement benefits

2. Those that involve the exercise of management prerogatives, such as:

a. appointments
b. promotion
c. assignments/details
d. reclassification/upgrading of position
e. revision of compensation structure
f. penalties imposed as a result of disciplinary actions
g. selection of personnel to attend seminar, trainings, study grants
h. distribution of work load
i. external communication linkages
 Government employees and employees of government-owned and controlled
corporations with original charters may bargain, however, such bargaining power is
limited.

NOTE: The Public Sector Labor Management Council (PSLMC), created by E.O. 180 has
jurisdiction to hear charges of ULP filed by government employees against their employer.

 REASONS WHY EMPLOYEES IN GOCCs INCORPORATED UNDER THE CORPORATION CODE ARE
ALLOWED TO ORGANIZE:
1. they are not involved in public service
2. terms of employment are not fixed by law
3. they are governed by the provisions of the Labor Code not by the Civil Service Law

 ART. 245. INELIGIBILITY OF MANAGERIAL EMPLOYEES TO JOIN ANY LABOR


ORGANIZATION; RIGHT OF SUPERVISORY EMPLOYEES.

 MANAGERIAL EMPLOYEE - one who is vested with powers or prerogatives to lay down and
execute management policies and /or to hire, transfer, suspend, lay-off, recall, discharge,
assign or discipline employees.

 MANAGERIAL EE UNDER LS AND LR


Managerial Managerial
Employees under Employees
Labor Standards under Labor
Relations
a. POWERS/DUTIES
- primary duty consists - See definition
of the management of above
the establishment in
which they are
employed or of a
department or
subdivision
b. EXTENT - does not include
- includes the officers the managerial
and members of the staff since they are
managerial staff classified as
supervisory
employees [who
may/may not be
eligible to join a
labor union with
the rank and file
employees]
c. PURPOSE OF - to determine an
DEFINITION employee’s
- to determine w/n eligibility in
certain employees are joining/forming a
covered by Book III of labor union.
the LC on Conditions of
Employment.

 Reason for ineligibility in the collective bargaining process, managerial employees are the
alter ego of the employers and thus they are supposed to be on the side of the employer to
act as its representatives, and to see to it that its interests are well protected. The employer
is not assured of such protection if these employees are union members.
 In the same manner, the labor union might not be assured of their loyalty to the union
in view of the evident conflict of interest.
 The union can also become company-dominated with the presence of managerial
employees in Union Membership (Bulletin Publishing Co. Inc. vs. Hon. Augusto
Sanchez).

 SUPERVISORY EMPLOYEES - those who, in the interest of the employer, effectively


recommend such managerial actions if the exercise of such authority is not merely routinary
or clerical in nature but requires the use of independent judgment.
MAY SUPERVISORY EMPLOYEES FORM, ASSIST, JOIN A LABOR ORGANIZATION?

YES, on their own and NOT with the rank-and-file employees (RA 6715).

 The TEST IS: Do they exercise independent judgment which is not subject to
evaluation of other department heads/other superiors? If in the affirmative, then they
may-must form a labor organization of their own [separate from the rank and file
employees]
 If their responsibilities do not inherently require the exercise of discretion and
independent judgment [or merely routinary/clerical in nature] then they may join the
union composed of the rank and file employees.

NOTE: It is the nature of the employee’s functions and not the nomenclature or title given to
his job which determines whether he has a rank and file or managerial status. (Engineering
Equipment, Inc. vs. NLRC)

MAY THEY AFFILIATE WITH A FEDERATION OF LABOR ORGANZATIONS OF RANK AND FILE
EMPLOYEES?

YES. Provided that:


a. the federation is not actively involved in union affairs in the company; and
b. the rank and file employees are not directly under the control of the supervisors
(Adamson vs. Adamson)

 EFFECT OF HAVING MIXED MEMBERSHIP – A union whose membership is a mixture of the


supervisors and the rank and file is not and cannot become a legitimate labor organization. It
cannot petition for a certification election, much less ask to be recognized as the bargaining
representative of employees.

 CONFIDENTIAL EMPLOYEES - by the very nature of their functions, they assist and act in a
confidential capacity to, or, have access to confidential matters of persons who exercise
managerial functions in the field of labor relations. Therefore, the rationale behind the
ineligibility of managerial employees to form, assist or join a labor union equally applies to
them. (Philips Industrial Dev’t Inc. Vs. NLRC)

- they are entrusted with confidence on delicate matters, or with the custody, handling, or
care and protection of the employer’s property. Under the doctrine of necessary implication,
confidential employees are similarly disqualified under Article 245. (Republic Planters Bank vs.
Torres)
NOTE: The phrase “in the field of labor relations” is important. It stresses labor nexus, i.e.,
confidentiality of the position is related or linked to labor relations matters.
 Access to information which is regarded by the employer to be confidential from the
business standpoint, such as financial information or technical trade secrets, will not
render an employee a confidential employee. (SMC Supervisors & Exempt Union vs.
Hon. Laguesma, et al.)
 Confidentiality is not a matter of official rank, it is a matter of job content and
authority. It is not measured by closeness to or distance from top management, but by
the significance of the jobholder’s role in the pursuit of corporate objectives and
strategies.
 Every managerial position is confidential because one does not become a manager
without having gained the confidence of the appointing authority. But not every
confidential employee is managerial; he may be a supervisory or even a rank-and-file
employee.
 ART. 246. NON-ABRIDGEMENT OF THE RIGHT TO SELF-ORGANIZATION

“THE RIGHT TO SELF-ORGANIZATION SHALL NOT BE ABRIDGED” MEANS:

It shall be unlawful for any person to:

a. restrain,
b. coerce,
c. discriminate against, or
d. unduly interfere

- with employees and workers in their exercise of the right to self-organization.

 Any act intended to weaken or defeat the right is regarded by law as an offense, which
is technically called “unfair labor practice.”
TITLE VI

UNFAIR LABOR PRACTICES

CHAPTER I

CONCEPT

 ART. 247. UNFAIR LABOR PRACTICES

 NATURE OF UNFAIR LABOR PRACTICES:

1. VIOLATE THE CONSTITUTIONAL RIGHT of workers and employees to self-organization;


2. are INIMICAL TO THE LEGITIMATE INTERESTS of both
labor and management, including their right to bargain collectively and otherwise deal
with each other in an atmosphere of freedom and mutual respect
3. DISRUPT INDUSTRIAL PEACE; and
4. hinder the promotion of healthy and stable labor-management relations and mutual
respect [LABOR-MNGT RELATIONS-UNSTABLE];

 2 ELEMENTS OF UNFAIR LABOR PRACTICE:

1. employer-employee relationship between the offender and the offended


2. act done is expressly defined in the Code as an act of unfair labor practice
3. it is now considered a criminal offense triable by the criminal court

NOTE: Prohibited acts are all related to the workers' self-organizational right and the the
observance of a CBA, except Art. 248 (f) dismissing or prejudicing an employee for giving
testimony under the Code.

 ULP has a technical meaning.


 It is a practice unfair to labor, although the offender may either be an employer or a
labor organization
 It refers to acts opposed to workers' right to organize. Without this, the act, no matter
how unfair, is not ULP.
 It commonly connotes anti-unionism.
 It also refers to gross violation of CBA provisions. Gross means the act is malicious and
flagrant.

 2 ASPECTS OF UNFAIR LABOR PRACTICE:


CIVIL CASE CRIMINAL CASE
A. PERSONS LIABLE
1. Officers and 1. Agents and officers
agents of who participated or
employer or authorized or ratified
2. Labor the act.
organization, 2. Agents,
officers and representatives, members
agents of the government board,
including ordinary
members
B. JURISDICTION
-Labor Arbiters of -MTC/RTC as the case
the NLRC may be.
C. QUANTUM OF PROOF NEEDED
-substantial -beyond reasonable doubt
evidence [subject to prosecution
and punishment]

D. PRESCRIPTIVE PERIOD
- one year from - one year from the
the accrual of the accrual of the ULP act,
ULP act. however it will be
suspended once the
administrative case has
been filed and would only
continue running once the
administrative case has
attained finality.
Final judgment in the
administrative
proceeding finding that
ULP has been committed
is a prerequisite in filing
a criminal case for ULP
NOTE: Final judgment in
the administrative
proceedings shall not be
binding in the criminal
case nor shall be
considered as an
evidence of guilt but
merely as a proof of
compliance of the
requirements prescribed
by the Code.
CHAPTER II

UNFAIR LABOR PRACTICES


OF EMPLOYERS

 ART 248. ULP THAT MAY BE COMMITTED BY AN EMPLOYER (1-10)


1. To INTERFERE WITH, RESTRAIN OR COERCE EMPLOYEES
- in the exercise of their right to self-organization;

INTERFERENCE

Examples:
- outright and unconcealed intimidation
- interrogation
employer must communicate to the employee the purpose of questioning
1. assure him that no reprisal would take place
2. obtain employee participation voluntarily
3. must be free from employer hostility to union organization
4. must not be coercive in nature
-intimidating expressions of opinion by employer

TEST OF INTERFERENCE OR COERCION - whether the employer has engaged in conduct which
it may reasonably be said tends to interfere with the free exercise of the employees' right and
it is not necessary that there be direct evidence that any employee was in fact intimidated or
coerced by the statements of threats or the employer if there is a reasonable interference that
the anti-union conduct of the employer does have an adverse effect of self-organization and
collective bargaining.

2. TO REQUIRE AS A CONDITION FOR EMPLOYMENT THAT A PERSON OR AN EMPLOYEE


- shall not join a labor organization or
- shall withdraw from one to which he belongs;

 YELLOW DOG CONTRACT - A promise exacted from workers as a condition of employment


that they are not to belong to, or attempt to foster, a union during their period of
employment. It is null and void because:
- It is contrary to public policy for it is tantamount to involuntary servitude.
- It is entered into without consideration for employees in waiving their right to self-
organization
- Employees are coerced to sign contracts disadvantageous to their family.
Does Art. 248 (3) mean that an employer cannot contract out work?
NO. Contracting out services is not ULP per se. It is ULP only when the following conditions
exist:
1. the service contracted- out are being performed by union members; and
2. such contracting-out interferes with, restrains, or coerce employees in the
exercise of their right to self-organization.

HOWEVER, when the contracting-out is being done to minimize expenses, then it is a valid
exercise of management prerogative.

3. To CONTRACT OUT SERVICES OR FUNCTIONS BEING PERFORMED BY UNION MEMBERS


- when such will interfere with, restrain or coerce employees in the
- exercise of their right to self-organization;

4. To INITIATE, DOMINATE, ASSIST OR OTHERWISE INTERFERE


- with the formation or administration of any labor organization,
- including the giving of financial or other support to it or its organizers or officers;
(Formation of Company Union)
5. To DISCRIMINATE IN REGARD TO WAGES, hours of work, and other terms and conditions of
employment in order to encourage or discourage membership in any labor
organization.

TEST OF DISCRIMINATION- whenever benefits or privileges given to one is not given to the
other under similar or identical conditions when directed to encourage or discourage union
membership (see more discussions below)

6. To DISMISS, DISCHARGE OR OTHERWISE PREJUDICE OR DISCRIMINATE against an


employee
- for having given or being about to give testimony under this Code; (The only ULP act
which is not anti-unionism)

DISCRIMINATION BECAUSE OF TESTIMONY


 TEST: the subject matter of the testimony can be anything under the Code
 what is ULP is the employer's retaliatory act regardless of the subject of employee's
complaint or testimony

7. TO VIOLATE THE DUTY TO BARGAIN COLLECTIVELY AS PRESCRIBED BY THIS CODE;

8. TO PAY NEGOTIATION OR ATTORNEY’S FEES TO THE UNION OR ITS OFFICERS OR AGENTS


- as part of the settlement of any issue in collective bargaining or any other
disputes; or

9. To VIOLATE A COLLECTIVE BARGAINING AGREEMENT.(GROSSLY!)


- the violation must be gross and with respect to the economic provision of the CBA
(flagrant and with malice)
 All the aforementioned acts (Nos. 1-9) must have a relation to the employees’ exercise of
their to self-organization. Anti-union or anti-organization motive must be proved because it
is a definitional element of ULP.
 RUNAWAY SHOP - an industrial plant moved by its owners from one location to another to
escape union labor regulations or state laws or to discriminate against employees at the old
plant because of their union activities.

 COMPANY UNIONISM
1. Initiation of the company union idea by:
a. outright formation by employer or his representatives
b. employee formation on outright demand or influence by employer
c. managerially motivated formation by employees
2. financial support to the union by:
a. employer defrays union expenses
b. pays attorney's fees to the attorney who drafted the Constitution or by laws of
the union
3. employer encouragement and assistance by immediate granting of exclusive
recognition as bargaining agent without determining whether the union represents
majority of the employees
4. supervisory assistance by soliciting membership, permitting union activities during work
time or coercing employees to join the union by threats of dismissal or demotion.

 DISCRIMINATION FOR OR AGAINST UNION MEMBERSHIP

TEST OF DISCRIMINATION: That the discharge of an employee was motivated by his union
activity. Such inference must be based on evidence, direct or circumstantial, not upon mere
suspicion.
 CONSTRUCTIVE DISCHARGE - ULP where employer prohibits employees from exercising their
rights under the Code, on pain of discharge, and the employee quits as a result of the
prohibition

 THREE COMPONENTS OF ART. 248(5) (DISCRIMINATION):

1.It prohibits discrimination in terms and conditions of employment in order to encourage


or discourage membership in the union;
2.It gives validity to union security agreements;
3.It allows an agency shop arrangement whereby agency fees may be collected from non-
union members.

 SECURITY ARRANGEMENTS - stipulations in the CBA requiring membership in the contracting


union as a condition for employment or retention of employment in the company.

 PRINCIPLES OF UNION SECURITY ARRANGEMENTS:


1. Protection - To shield union members from whimsical and abusive exercise of management
prerogatives.
2. Benefits - An additional membership will insure additional source of income to the union in
the form of union dues and special assessment.
3. Self-preservation- It strengthens the union through selective acceptance of new
members on the basis of commitment and loyalty.

 DIFFERENT KINDS OF UNION SECURITY ARRANGEMENTS: (EXCEPTIONS TO ULP ON


INTERFERENCE ON THE EMPLOYEES’ EXERCISE OF THEIR RIGHT TO SELF-ORGANIZATION)
1. CLOSED-SHOP AGREEMENT - the employer undertakes not to employ any individual who is
not a member of the contracting union and the said individual once employed must, for the
duration of the agreement, remain a member of the union in good standing as a condition for
continued employment.
- does not have any retroactivity
- apply only to new hires

EXCEPTIONS:
a. employees belonging to any religious sect which prohibit affiliation of their members with
any labor organization are not covered by such agreement—The free exercise of religious
belief is superior to contract rights (Victoriano vs. Elizalde Rope Workers).
b. members of the rival union are not covered by such arrangement.

SEMI-CLOSED SHOP AGREEMENT- has no requirement for the employee to remain as


member of the contracting union in good standing as a condition for continued
employment.

2. UNION SHOP AGREEMENT -stipulation whereby any person can be employed by the
employer but once employed such employee must, within a specific period, become a member
of the contracting union and remain as such in good standing for continued employment for the
duration of the CBA [take note of the exceptions in the preceding number.]

3. MAINTENANCE OF MEMBERSHIP CLAUSE - the agreement DOES NOT require non-members


to join the contracting union BUT provides that those who are members thereof at the time of
the execution of the CBA and those who may thereafter on their own volition become members
must for the duration of the agreement maintain their membership in good standing as a
condition for continued employment in the company for the duration of the CBA.
4. PREFERENTIAL SHOP AGREEMENT – an agreement whereby the employer merely agrees to
give preference to the members of the bargaining union in hiring, promotion or filing vacancies
and retention in case of lay-off. The employer has the right to hire from the open market if
union members are not available.

5. AGENCY SHOP AGREEMENT - an agreement whereby employees must either join the union
or pay to the union as exclusive bargaining agent a sum equal to that paid by the members.

 This is directed against “FREE RIDER” employees who benefit from union
activities without contributing support to the union, to prevent a situation of non-union
members enriching themselves at the expense of union members.

 Employee members of another/rival union are not considered free riders since
when the union [agent] bids to be the bargaining agent, it voluntarily assumed the
responsibility of representing all the employees in the appropriate bargaining unit.

 REQUIREMENTS FOR A VALID TERMINATION BY THE EMPLOYER OF THE SERVICES OF AN


EMPLOYEE PURSUANT TO A UNION OR CLOSED-SHOP AGREEMENT:

1. The agreement must be expressed in a CLEAR AND UNEQUIVOCAL way so as not to leave
room for interpretation because it is a limitation to the exercise of the right to self-
organization.
 Any doubt must be resolved against the existence of a closed-shop agreement.

2. The agreement can only have PROSPECTIVE APPLICATION and cannot be applied
retroactively.

3. It can only be exercised by giving the employee his right to DUE PROCESS.
- The employer has the right to satisfy himself that there are sufficient bases for the
request of the union.
- The termination of the services of the employee is not automatic upon the request of
the union.

4. It cannot be applied to employees who are already MEMBERS OF THE RIVAL UNION or to
the employees based on their religious beliefs.

CHAPTER III

UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS


 ART. 249. UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

a. To RESTRAIN OR COERCE employees in the exercise of their right to self-organization.


However, a labor organization shall have the right to prescribe its own rules with respect
to the acquisition or retention of membership;
b. To CAUSE OR ATTEMPT TO CAUSE AN EMPLOYER TO DISCRIMINATE AGAINST AN
EMPLOYEE, including discrimination
c. To VIOLATE THE DULY OR REFUSE TO BARGAIN COLLECTIVELY with the employer provided
that it is the representative of the employees;
d. TO CAUSE OR ATTEMPT TO CAUSE AN EMPLOYER TO PAY OR DELIVER OR AGREE TO PAY
OR DELIVER ANY MONEY or other things of value, in the nature of an exaction, for services
which are not performed or not to be performed, including the demand for a fee for union
negotiations; (This is called FEATHERBEDDING)
e. To ASK FOR OR ACCEPT NEGOTIATION OR ATTORNEY’S FEES FROM EMPLOYERS as part of
the settlement of any issue in collective bargaining or any other dispute; or
f. To GROSSLY VIOLATE A COLLECTIVE BARGAINING AGREEMENT.
- The violation must be gross and must be with respect to economic provisions of the CBA
flagrantly and with malice.

 PERSONS CIVILLY LIABLE FOR ULP:


1. Officers and agents of employer
2. Labor organization, officers and agents
3. Agents and officers who participated or authorized or ratified the act.
 FEATHERBEDDING - refers to the practice of the union or its agents in causing or
attempting to cause an employer to pay or deliver or agree to pay or deliver money or other
things of value, in the nature of exaction, for services which are not performed or not to be
performed, as when a union demands that the employer maintain personnel in excess of the
latter’s requirements.
 It is not featherbedding if the work is performed no matter how unnecessary or useless
it may be.

 SWEETHEART DOCTRINE – considers it ULP for a labor organization to ask for or accept
negotiation or attorney’s fees from the employer in settling a bargaining issue or dispute

 resulting CBA is considered a “sweetheart contract” – a CBA that does not substantially
improve the employees’ wages and benefits.

TITLE VII

COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

 ART. 250. PROCEDURE IN COLLECTIVE BARGAINING


 COLLECTIVE BARGAINING –negotiation by an organization or group of workmen, in behalf of
its members, with the employer, concerning wages, hours of work and other terms and
conditions of employment and the settlement of disputes by negotiation between an employer
and the representative of his employees.
 Negotiation towards a collective agreement.

 The mechanics of collective bargaining is set in motion only when the following
JURISDICTIONAL PRECONDITIONS are present:

1. POSSESSION OF THE STATUS OF MAJORITY representation by the employees’


representative in accordance with any of the means of selection or designation provided
for by the Labor Code;

2. proof of MAJORITY REPRESENTATION (Certification of the BLR that the representative


of the employees in the sole and exclusive bargaining agent having won in a certification
election); and
3. a DEMAND TO BARGAIN under Article 250 (a) of the Labor Code. (Kiok Loy vs. NLRC)

COLLECTIVE BARGAINING AGREEMENT (CBA) - a negotiated contract between a legitimate


labor organization and the employer concerning:
a. wages,
b. hours of work, and
c. all other terms and conditions of employment in a bargaining unit, including
mandatory provisions for grievances and arbitration machineries.
PROCEDURE IN COLLECTIVE BARGAINING

1. Written NOTICE with statement of proposals


2. REPLY by the other party within 10 calendar days with counter proposals
3. In case of differences, either party may REQUEST FOR A CONFERENCE which must be
held within 10 days from receipt of request.
4. If not settled NCMB MAY INTERVENE AND ENCOURAGE the parties to submit the
dispute to a voluntary arbitrator
5. If not resolved, the parties may go to where they want AND RESORT TO ANY OTHER
LAWFUL MEANS [either to settle the dispute or submit it to a voluntary arbitrator].
 During the conciliation proceeding in the Board, the parties are prohibited from
doing any act which may disrupt or impede the early settlement of the disputes (250[d]
LC).
 8 STAGES IN THE NEGOTIATION FOR A COLLECTIVE BARGAINING AGREEMENT:
1. PRELIMINARY process - written notice for negotiation which must be clear and
unequivocal
2. NEGOTIATION Process
3. EXECUTION Process – signing of the agreement
4. PUBLICATION for at least 5 days before ratification
5. RATIFICATION by the majority of all the workers in the bargaining unit represented in the
negotiation (not necessary in case of arbitral award)
6. REGISTRATION Process
Requisites for registration:
a. mandatory provisions
b. payment of P1, 000
c. 5 copies of CBA
d. proof of ratification
7. ADMINISTRATION Process – the CBA shall be jointly administered by the management and
the bargaining agent for a period of 5 years
8. INTERPRETATION AND APPLICATION Process

 MANDATORY PROVISIONS OF THE CBA:


1. wages
2. hours of work
3. grievance machinery
4. voluntary arbitration
5. family planning
6. rates of pay
7. mutual observance clause

 In addition, the Bureau requires that the CBA should include a clear statement of the
terms of the CBA.

Note: Employer’s duty to bargain is limited to mandatory bargaining subjects; as to other


matters, he is free to bargain or not to bargain.

 ART. 252. MEANING OF DUTY TO BARGAIN COLLECTIVELY

 DUTY TO BARGAIN COLLECTIVELY - the performance of a mutual obligation:

a. to MEET AND CONVENE promptly and expeditiously in good faith for the purpose of
negotiating an agreement with respect to wages, hours of work and all other terms and
conditions of employment including proposals for adjusting any grievances or questions
arising under such agreement and
b. EXECUTING A CONTRACT incorporating such agreements if requested by either party.

LIMITATIONS:

1. the duty to bargain collectively does not compel any party to:
a. agree to a proposal; or
b. make a concession.
No room for “Take it or Leave it” posture.

2. the parties cannot stipulate terms and conditions of employment which are below the
minimum requirements prescribed by law

(Meaning of duty to bargain when there exists a CBA, see discussion under Art. 253)

 Collective bargaining does not end with the execution of the agreement. It is a
continuous process. The duty to bargain imposes on the parties during the term of their
agreement the mutual obligation to meet and confer promptly and expeditiously and in
good faith for the purpose of adjusting any grievances or question arising under such
agreement. (Republic Savings Bank vs. CA)

 FOUR (4) FORMS OF ULP IN BARGAINING:


a. failure or refusal to meet and convene
b. evading the mandatory subjects of bargaining
c. bad faith in bargaining [boulwarism], including failure or refusal to execute the CBA, if
requested
d. gross violation of the CBA

Do economic exigencies justify refusal to bargain?

An employer has been held not guilty of refusal to bargain by adamantly rejecting the union's
economic demands where he is operating at a loss, on a low profit margin, or in a depressed
industry, as long as he continues to negotiate. But financial hardship constitutes no excuse for
refusing to bargain collectively.

ACTS NOT DEEMED REFUSAL TO BARGAIN:


1. adoption of an adamant bargaining position in good faith

2. refusal to bargain over demands for commission of ULP

3. refusal to bargain during period of illegal strike

4. there is no request for bargaining

5. union seeks recognition for an inappropriately large unit

6. union seeks to represent some persons who are excluded from the Code

7. the rank-and-file unit includes supervisors or inappropriate otherwise

8. the demand for recognition and bargaining is made within the year following a certification
election in which the clear choice was no union and no ad interim significant change has taken
place in the unit

9. the union makes unlawful bargaining demands


BARGAINING TO THE POINT OF DEADLOCK OR IMPASSE:
1. over a mandatory subject - party may insist on bargaining and will not be construed as
bargaining in bad faith

REASON: duty to bargain requires meeting and convening on the terms and conditions of
employment but does not require assent to the other party's proposals.

2. over a non-mandatory subject - party may not insist on bargaining to the point of impasse,
otherwise, he will be construed as bargaining in bad faith.

EXAMPLE: The employer's insistence that the union should change its negotiator before
bargaining can proceed to the employees' wage and benefits is an instance of bad-faith
bargaining because the composition of the negotiating panel is not a mandatory subject of
bargaining.

Hence, if Party A insists on first settling a non-mandatory subject before tackling a mandatory
subject, Party B may complain that Party A's posture is just an excuse to avoid bargaining on
the mandatory, essential subjects of bargaining; thus, Party B can charge that Party A is
bargaining in bad faith or is evading bargaining on terms and conditions of employment - in
short, Party A is committing ULP.

NOTE: What the rule forbids is the posture of making settlement of a non-mandatory subject a
pre-condition to the discussion or settlement of a mandatory subject.

 ART. 253. DUTY TO BARGAIN COLLECTIVELY WHEN THERE EXISTS A COLLECTIVE


BARGAINING AGREEMENT

 GENERAL RULE: When there is an existing CBA, the duty to bargain collectively shall also
mean that neither party shall TERMINATE nor MODIFY such agreement during its lifetime. It is
the duty of both parties to:

a. keep the status quo and


253 253-A/256 b. to continue in the full force and effect
the terms and conditions of the existing
A.FREEDOM PERIOD CBA
-the notice of intention to - representation
terminate, amend or alter aspect of the CBA  EXCEPTION: during the 60-day period prior
the provisions of the CBA
shall be filed within the
shall be for a to its expiration, upon service of a written
sixty (60) day period, term of five (5). notice of a party’s intention to terminate or
immediately prior to the A petition for modify the same, a party may choose to
expiration of the CBA. certification terminate or modify the non-representational
-the economic provisions election may be aspect of the CBA only after the expiration of
however may be entertained and CBA of fixed duration.
renegotiated not later than a certification
three (3) years. Those election may be  DUTY TO BARGAIN COLLECTIVELY UNDER
economic provisions conducted within
entered within 6 months 253 AND 253-A/256
the 60-day period
from the expiry of their
term as fixed in the CBA immediately  AUTOMATIC RENEWAL CLAUSE – Art. 253
shall retroact to the day prior to the provides that the CBA shall remain effective
immediately following such expiration of the and enforceable even after the expiration of
date, if beyond 6 months CBA. the period fixed by the parties as long as no
the effectivity is by new agreement is reached by them.
agreement of the parties.

B. WHAT MAY BE  WHAT MAY BE DONE DURING THE 60-


CHANGED DURING THE 60- - representation DAY FREEDOM PERIOD:
DAY FREEDOM PERIOD aspect—it may be
-re-negotiable provisions of resolved by holding
the CBA particularly the certification
non-representation aspect election
(ECONOMIC PROVISIONS
may be renegotiated not
later than three (3) years.
a. A labor union may DISAFFILIATE from the mother union to form a local or independent
union only during the 60-day freedom period immediately preceding the expiration of the
CBA. [take note of the limitation-see discussions on registration of labor unions]
b. either party can serve a written notice to TERMINATE OR MODIFY the agreement at least
60 days prior to its expiration period [on re-negotiable/non-representation aspect of the
CBA—see discussion on 253]
c. a petition for CERTIFICATION ELECTION may be filed

 ART. 253–A. TERMS OF A COLLECTIVE BARGAINING AGREEMENT (CONTRACT BAR RULE)

 DURATION OF THE CBA:

1. With respect to the representation aspect, the same lasts for 5 years

2. With respect to other provisions [economic provisions], the same may last for a
maximum period of 3 years after the execution of the CBA

RULE ON RETROACTIVE EFFECTS OF OTHER ECONOMIC PROVISIONS WITH FIXED TERM OR


DATES OF EXPIRY AS PROVIDED IN THE CBA:

a. Those made within 6 months after the date of expiry of the CBA
- Any agreement on such other provisions of the CBA made within 6 months after the date
of expiry of the CBA is subject to AUTOMATIC RETROACTION to the day immediately following
such date of expiry.

b. Those not made within 6 months the parties may agree to the DATE OF RETROACTION.
- This rule applies only if there is an EXISTING AGREEMENT. If THERE IS NO EXISTING
AGREEMENT, there is no retroactive effect because the date agreed upon shall be the start of
the period of agreement.

NOTE: Article 253-A on retroaction does not apply if the provisions were imposed by the
Secretary of Labor by virtue of arbitration. It applies only if the agreement was voluntarily
made by the parties.
 ART. 254. NO INJUNCTION RULE

No temporary or permanent injunction or restraining order in any case involving or


growing out of labor disputes shall be issued by any court or other entity, except as otherwise
provided in Articles 218 (Powers of the Commission/NLRC) and 264 (Prohibited Activities) of this
Code.

REASON: injunction contradicts the constitutional preference for voluntary modes of dispute
settlement

 In cases of strikes/picketing, third parties or innocent bystanders may secure a court


(regular court) injunction to protect their rights. (PAFLU vs. CLORIBEL)

 ART. 255. EXCLUSIVE BARGAINING REPRESENTATION AND WORKER’S PARTICIPATION IN


POLICY AND DECISION-MAKING

WHAT IS THE MEANING OR EXTENT OF THE WORKERS’ RIGHT TO PARTICIPATE IN POLICY


AND DECISION-MAKING PROCESSES?

Such right refers ONLY to participation in grievance procedures and voluntary modes of
settling disputes and NOT to formulation of corporate programs and policies.
NOTE: An employer may solicit questions, suggestions and complaints from employees
eventhough the employees are represented by a union, provided:

1. the collective bargaining representative executes an agreement waiving the right to be


present on any occasion when employee grievances are being adjusted by the employer
and

2. employer acts strictly within the terms of this waiver agreement.

ONE-UNION, ONE-COMPANY POLICY - the proliferation of unions in an employer unit is


discouraged as a matter of policy unless there are compelling reasons which would deny a
certain class of employees the right to self-organization for purposes of collective bargaining.

EXCEPTION:
- supervisory employees who are allowed to form their own unions apart from the rank-and-
file employees

- the policy should yield to the right of employees to form unions for purposes not contrary to
law, self-organization and to enter into collective bargaining negotiations.

 two companies cannot be treated into a single bargaining unit even if their businesses
are related.

 subsidiaries or corporations formed out of former divisions of a mother company


following a reorganization may constitute a separate bargaining unit.

 LABOR MANAGEMENT COUNCILS - deal with the employer on matters affecting employee’s
rights, benefits and welfare.
 They may be formed even if there is already a union in the company.

 ARTS. 256-259 PETITION FOR CERTIFICATION ELECTION

 BARGAINING UNIT- a group of employees of a given employer, comprised of all or less than
all the entire body of the employees, which, consistent with equity to the employer, indicate
to be best suited to serve the reciprocal rights and duties of the parties under the collective
bargaining provision of the law.

 CERTIFICATION YEAR - refers to the period wherein collective bargaining should begin,
which is within 12 months following the determination and certification of employees' exclusive
bargaining representative.
 FOUR FACTORS IN DETERMINING THE APPROPRIATE BARGAINING UNIT:

1. the EXPRESS WILL OR DESIRE of the employees (Globe Doctrine);


 the desires of all the employees are relevant to the determination of the appropriate
bargaining unit. The relevance of the wishes of the employees concerning their
inclusion or exclusion from a proposed bargaining unit is inherent in the basic right to
self organization

2. the SUBSTANTIAL AND MUTUALITY INTEREST factor;

3. prior collective bargaining HISTORY; and


4. EMPLOYMENT STATUS, such as
a. temporary
b. seasonal, and
c. probationary employee

 THINGS TO CONSIDER IN DETERMINING THE COMMUNITY OF INTEREST


DOCTRINE:

1. similarity in the scale and manner of determining earnings

2. similarity in employment benefits, hours of work and other terms and conditions of
employment

3. similarity in the kinds of work performed

4. similarity in the qualifications, skills and training of the employees

5. frequency of contract or interchange among the employees

6. common supervision and determination of labor-relations policy

7. history of previous collective bargaining

8. desires of the affected employees

9. extent of union organization


 MODES OF CHOOSING THE EXCLUSIVE BARGAINING UNIT:

1. SELECTION - certification election


2. DESIGNATION - voluntary recognition

A. CERTIFICATION ELECTION – the process of determining by secret ballot the sole and
exclusive bargaining agent of the employees in an appropriate bargaining unit, for purposes of
collective bargaining

 CERTIFICATION vs. CONSENT ELECTION


CERTIFICATION CONSENT
ELECTION ELECTION

A. NATURE
- separate and distinct - a separate and
from a consent distinct process
election and has nothing
to do with the
import and
effect of a
certification
election
B. PURPOSE
- to determine the sole - to determine
and exclusive the issue of
bargaining agent of all majority
the employees in an representation of
appropriate bargaining all the workers
unit for the purpose of in the
collective bargaining; appropriate
collective
bargaining unit
mainly for the
purpose of
determining the
administrator of
the CBA when
the contracting
union suffered
massive
disaffiliation but
not for the
purpose of
determining the
bargaining agent
for purposes of
collective
bargaining.

DIRECT CERTIFICATION - the process whereby the Med-Arbiter directly certifies a labor
organization of an appropriate bargaining unit of a company after a showing that such petition
is supported by at least a majority of the employees in the bargaining unit. IT IS NO LONGER
ALLOWED. (EO 111)

VOLUNTARY RECOGNITION – the process whereby the employer recognizes a labor organization
as the exclusive bargaining representative of the employees in the appropriate bargaining unit
after a showing that the labor organization is supported by at least a majority of the employees
in the bargaining unit.

 EFFECT OF VOLUNTARY RECOGNITION BY THE EMPLOYER - through voluntary recognition by


the employer, the labor organization is recognized by the employer as the exclusive bargaining
agent which may collectively bargain with such employer.

 C.E. IN AN ORGANIZED AND AN UNORGANIZED ESTABLISHMENT


ORGANIZED UNORGANIZED
A. WHEN MANDATORY ON
THE PART OF BLR Upon:
- upon the filing of a a. the filing
verified petition by a
legitimate labor
of a verified
organization questioning petition by a
the majority status of the legitimate
incumbent bargaining labor
agent within the 60-day organization;
freedom period before the or
expiration of a CBA. b. upon the
- The petition must be filing of a
supported by the written petition by
consent of at least 25% of
the employer
ALL THE EMPLOYEES IN
THE APPROPRIATE when such
BARGAINING UNIT. employer is
- the employer cannot file requested by
a petition for certification the
election; only a legitimate employees to
labor organization can file bargain
such petition. collectively.

B. PERIOD FOR FILING THE


PETITION
a. when there is a CBA, - any time,
the labor organization can
file a petition for
subject
certification election however to
within the 60-day freedom the ONE-
period (CONTRACT-BAR ELECTION-
RULE) PER-YEAR
b. when there is no CBA, RULE.
then the labor organization
can file a petition for
certification election at
any time, subject to the
Deadlock Bar Rule.

 REQUISITES BEFORE A LABOR UNION CAN BE DECLARED A WINNER (DOUBLE MAJORITY


RULE):

1. Majority of the eligible voters cast their votes AND

2. Majority of the valid votes cast is for such union.

 HOW TO DETERMINE THE DOUBLE MAJORITY RULE:

1. In determining the eligible votes cast [FIRST MAJORITY], include spoiled ballots

2. In determining valid votes [SECOND MAJORITY], eliminate spoiled ballots but include
challenged votes
RUN-OFF ELECTION:

A run-off election is proper if the following conditions exist namely:

(a) a VALID ELECTION took place because majority of the Collective Bargaining
Unit members voted [FIRST MAJORITY];

(b) the said election presented at least THREE CHOICES, e.g., Union One, Union
Two, and No Union (Take Note: “No Union shall not be a choice in the run – off
election);

(c) NOT ONE OF THE CHOICES OBTAINED THE MAJORITY (50%+1-SECOND


MAJORITY) of the valid votes cast;

(d) the TOTAL VOTES FOR THE UNIONS IS AT LEAST 50% of the votes cast;

(e) there is NO UNRESOLVED CHALLENGED VOTES or election protest which if


sustained can materially alter the results

(f) the two choices which garnered the highest votes will be voted and the one
which garners the highest number of votes will be declared the winner provided they
get the majority votes of the total votes cast

Who will participate in the run – off?

The unions receiving the highest and second highest number of votes cast.

 Re – Run Election vs. Run – off Election


RE – RUN ELECTION RUN – OFF
ELECTION
Conducted when
Held in two none of the
instances: choices, including
the choice of No
Union, receives a
1. if one choice majority of the
receives a valid vote cast.
plurality of vote This presupposes
and the no less than three
remaining competing choices.
choices results In this situation, an
in a tie; election is
2. if all choices conducted between
received the the union choices
receiving the
same number of largest and the
votes; second largest
In both number of the valid
instances, the votes cast.
NO UNION is also
a choice

 RULES WHICH PREVENT THE HOLDING OF A CERTIFICATION ELECTION [DONC]:


1. Deadlock bar rule- when there is a deadlock in collective bargaining and the same
has been submitted to NCMB for conciliation and mediation the same bars any petition or
conduct of certification election.
2. One year bar rule
3. Negotiation bar rule
4. Contract bar rule

1. CONTRACT-BAR RULE - while a valid and registered CBA of a fixed duration is subsisting,
the BLR is not allowed to hold an election contesting the majority status of the incumbent
union during the five year term of the CBA except during the sixty day period immediately prior
to the expiration of the CBA.

REQUIREMENTS IN ORDER TO INVOKE CONTRACT-BAR RULE:

1. Agreement is in WRITING AND SIGNED by all contracting parties.


2. It must contain THE TERMS AND CONDITIONS of employment.
3. Covered employees in an appropriate bargaining unit [ABU EES COVERED].
4. It is for a REASONABLE PERIOD or duration.
5. It must be RATIFIED.
6. It must be REGISTERED with the Bureau.
7. The violation of the contract bar rule or the existence of a duly registered CBA must be
specifically IMPLEADED AS A DEFENSE.

 EFFECT OF AN INVALID AND UNREGISTERED CBA- there is no bar and therefore a


certification election may be held.

NOTE: Registration of CBA only puts into effect the contract bar rule but the CBA itself is valid
and binding even if unregistered.

 EXCEPTIONS TO THE CONTRACT-BAR RULE:

1. CBA is not registered


2. CBA deregistered
3. CBA was hastily concluded way ahead of the freedom period
4. CBA is incomplete in itself
5. CBA does not foster industrial peace because of schism
6. CBA was concluded in violation of an order enjoining the parties from entering into a CBA
until the issue of representation is resolved
7. Petition is filed during the 60-day freedom period

SUCCESSOR-IN-INTEREST DOCTRINE – When an employer with an existing CBA is succeeded by


another employer, the successor-in-interest who is a buyer in good faith has no liability to the
employees in continuing employment and the collective bargaining agreement because these
contracts are in personam

EXCEPT:
a. when the successor-in-interest expressly assumes the obligation or
b. the sale is a device to circumvent the obligation or
c. the sale or transfer is made in bad faith

 SUBSTITUTIONARY DOCTRINE – where there occurs a shift in the employees’ union allegiance
after the execution of a collective bargaining contract with the employer, the employees can
change their agent (the labor union) but the collective bargaining contract which is still
subsisting continues to bind the employees up to its expiration date. They may, however,
bargain for the shortening of said expiration date.

 The employees cannot revoke the validly executed collective bargaining contract with
their employer by the simple expedient of changing their bargaining agent. The new
agent must respect the contract. (Benguet Consolidated, Inc. vs. Employees and
Workers Union-PAFLU)

 LIMITATION AS TO ITS APPLICATION – it cannot be invoked to support the contention that a


newly certified collective bargaining agent automatically assumes all the personal undertakings
of the former agent—like the “no strike clause” in the CBA executed by the latter (Benguet
Consolidated Inc. vs. BCI Employees and Workers Union-PAFLU).

2. DEADLOCK BAR RULE - a petition for certification election cannot be entertained if, before
the filing of the petition for certification election, a bargaining deadlock to which an
incumbent or certified bargaining agent is a party, had been submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or lockout.

DEADLOCK – arises when there is an impasse, which presupposes reasonable effort at good
faith bargaining which, despite noble intentions, did not conclude in an agreement between
the parties.

INDICATIONS OF A GENUINE DEADLOCK:


1. the submission of the deadlock to a third party conciliator or arbitrator
2. the deadlock is the subject of
a valid notice of strike or lockout

3. NEGOTIATION BAR RULE - a petition for certification election cannot be entertained if,
before the filing of the petition for certification election, the duly recognized or certified
union has commenced negotiations with the employer in accordance with Art. 250 of the Labor
Code.

4. CERTIFICATION YEAR RULE – no petition for certification election may be filed within one
year from the date of a valid certification, consent, or run-off election or from the date of
voluntary recognition

 EXAMPLES OF BAD FAITH BARGAINING:

1. Surface Bargaining – occurs when employer constantly changes its positions over the
agreement.
2. Boulwarism – occurs:
a. when the employer directly bargains with the employee disregarding the union.

 The aim was to deal with the Union through the employees, rather than with the
employees through the union.
b. Employer submits its proposals and adopts a take it or leave it stand. This is not
negotiation because the take it or leave it stand implies threat.

3. Side Bar Technique

TITLE VII- A
(as incorporated by RA 6715)

GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

 ART. 260. GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION


 GRIEVANCE MACHINERY - a mechanism for the adjustment of controversies or disputes arising
from the interpretation or implementation of the CBA and the interpretation or enforcement of
company personnel policies

 GRIEVANCE - arises when a dispute or controversy arises over the implementation or


interpretation of a CBA or from the implementation or enforcement of company personnel
policies, and either the union or the employer invokes the grievance machinery provision for
the adjustment or resolution of such dispute or controversy.

NATURE OF GRIEVANCE PROCEDURE - It is a “must” provision in any CBA and no collective


agreement can be registered in the absence of such procedure.
It is a part of the continuous process of collective bargaining intended to promote a
friendly dialogue between labor and management as a means of maintaining industrial peace.

 VOLUNTARY ARBITRATION - contractual proceedings where parties to a dispute select a judge


of their own choice and by consent submit their controversy to him for determination.
All grievances not settled within 7 days from the date of its submission to the grievance
machinery shall automatically be referred voluntary arbitration prescribed in the CBA.
 Although the provision mentions “parties to a collective bargaining agreement,” it
does not mean that a grievance machinery cannot be set up in a CBA-less
enterprise. In any work place where grievance can arise, a grievance machinery
(regardless of name) can be established.
 In a unionized company, Art. 255 allows an employee, union member or not, to
raise a grievance directly to the employer.

 ARBITRATION MAY BE INITIATED BY:

1. SUBMISSION AGREEMENT – where the parties define the disputes to be resolved; or


2. DEMAND OR NOTICE invoking a collective agreement arbitration clause.

 ART 261. JURISDICTION OF VOLUNTARY ARBITRATORS OR PANEL OF VOLUNTARY


ARBITRATORS

JURISDICTION OF VOLUNTARY ARBITRATORS:

1. EXCLUSIVE ORIGINAL JURISDICTION CONFERRED BY LAW

a)All grievances arising from the interpretation or implementation of the CBA.


b) Those arising from the interpretation or enforcement of company personnel polices.
c)Hear and decide wage distortion issues arising from the application of any wage orders
in organized establishments.
d) Unresolved grievances arising from the interpretation and implementation of the
productivity incentive programs under RA 6071 .

 It is the labor arbiter and not the grievance machinery which has jurisdiction over
dismissals pursuant to the union security clause.
 violations of CBA, except those which are gross in character, shall no longer be treated
as ULP and shall be resolved as grievances.

GROSS VIOLATION – flagrant and/or malicious refusal to comply with the economic provisions
of the CBA.
2. JURISDICTION BY AGREEMENT OF THE PARTIES (Art. 262)

-all other disputes including ULP and bargaining deadlocks


 The disputes the parties may submit to a Voluntary Arbitrator can include any or all the
disputes mentioned in Art. 217 which otherwise fall under the exclusive jurisdiction of
a labor arbiter.
 Voluntary arbitration may be viewed as a master procedure to prevent or resolve labor
disputes

 GROUNDS FOR JUDICIAL REVIEW OF DECISIONS OF VOLUNTARY ARBITRATORS:

1. Lack of jurisdiction
2. Grave abuse of discretion
3. Violation of due process
4. Denial of substantial justice
5. Erroneous interpretation of the law

 A voluntary arbitrator is a “quasi-judicial instrumentality (Sec 9 BP129 as amended by


RA 7902);” hence, a petition for certiorari under Rule 65 of the Rules of Court will lie
where a grave abuse of discretion or an act without or in excess of jurisdiction of the
voluntary arbitrator is shown, which may be filed with the Court of Appeals.

TITLE VIII

STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES


CHAPTER I
STRIKES AND LOCKOUTS

 ART. 263. STRIKES, PICKETING AND LOCKOUTS

 STRIKE - Any temporary stoppage of work by the concerted action of employ ees as a
result of an industrial or labor dispute.
IMPORTANCE: it is the most effective weapon of labor in protecting the rights of
employees to improve the terms and conditions of their employment.
 Government employees may form labor unions but are not allowed to strike.
 Only legitimate labor organizations are given the right to strike.
 Ununionized workers may hold a protest action but not a strike
 Not all concerted activities are strikes; they may only be protest actions. And they do
not necessarily cause work stoppage by the protesters. A strike, in contrast, is always a
group action accompanied by work stoppage.
 LOCKOUT - means the temporary refusal of an employer to furnish work as a result of an
industrial or labor dispute.

 PICKETING - the act marching to and fro the employer’s premises, usually accompanied
by the display of placards and other signs making known the facts involved in a labor dispute.
This is an exercise of one’s freedom of speech.

 STRIKE-BREAKER - any person who obstructs, impedes or interferes by force, violence,


coercion, threats or intimidation with any peaceful picketing by employees during any labor
controversy affecting wages, hour or conditions of work or in the exercise of the right to self
organization or collective bargaining
 STRIKE AREA – the establishment, warehouse, depots, plants or offices, including the
sites or premises used as runaway shops of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in moving to an fro before all points of
entrance to and exit from said establishment
SOME EXAMPLES OF STRIKES AND THEIR VALIDITY
A. SIT-DOWN STRIKE - is characterized by a temporary work stoppage of workers who
thereupon seize or occupy property of the employer or refuse to vacate the premises of the
employer. ILLEGAL- amounts to a criminal act because the employees trespass on the premises
of the employer.
B. WILDCAT STRIKE- is a work stoppage that violates the labor contract and is not authorized
by the union. ILLEGAL- It is not valid because it fails to comply with certain requirements of
the law, to wit: notice of strike, vote, and report on strike vote.
C. SYMPATHETIC STRIKES- are work stoppages of workers of one company to make common
cause with other strikers of other companies, without demands or grievances of their own
against the employer. ILLEGAL - because there is no labor dispute between the workers who
are joining the strikers and the latter’s employer.
D. SECONDARY STRIKES- are work stoppages of workers of one company to exert pressure
on their employer so that the latter will in turn bring pressure upon the employer of another
company with whom another union has a labor dispute. ILLEGAL- because there is no labor
dispute involved.

IS A “WELGA NG BAYAN” LEGAL?


NO. A “welga ng bayan” is illegal because it is a political strike and therefore there is
neither a bargaining deadlock nor any ULP. It is a political rally.

 GROUNDS FOR THE DECLARATION OF STRIKE:


1. deadlock in collective bargaining (ECONOMIC); and/or

2. unfair labor practices (POLITICAL)

ECONOMIC STRIKE ULP STRIKE


[POLITICAL]
A. NATURE
- A voluntary strike - An involuntary
because the strike; the labor
employee will organization is
declare a strike to forced to go on
compel management strike because of
to grant its demands. the ULP
committed
against them by
the employer. It is
an act of self-
defense since the
employees are
being pushed to
the wall and their
only remedy is to
stage a strike.
B. INITIATED BY:
- The collective - either
bargaining agent of a. Collective
the appropriate bargaining agent
bargaining unit can or
declare an economic b. the legitimate
strike. labor organization
in behalf of its
members
C. COOLING OFF PERIOD
-30 days from the
filing of the notice of
strike before the -15 days from the
intended date of filing of the
actual strike subject notice of strike.
to the 7-day strike
ban.
D. EXCEPTION TO THE COOLING-OFF
PERIOD
- No exception— - the cooling off
mandatory. period may be
dispensed with, and
the union may take
immediate action in
- Notice of strike case of dismissal
and strike vote from employment of
maybe dispensed their officers duly
with. They may elected in
strike immediately. accordance with the
union’s Constitution
and By-laws, which
may constitute
union busting
where the
existence of the
union is
threatened.

- BUT it must still


observe the
mandatory 7-day
period before it
can stage a valid
strike.
E. STRIKE DURATION PAY IN CASE OF A
LEGAL STRIKE

- not entitled to said - may be awarded


pay based on the the said paid in the
principle that a ‘fair discretion of the
authority deciding
day’s wage accrues the case.
only for a fair day’s
labor’

 CHARACTERISTICS OF STRIKES:
1. there must be an established relationship between the strikers and the person/s against
whom the strike is called
2. the relationship must be one of employer and employee
3. the existence of a dispute between the parties and the utilization by labor of the
weapon of concerted refusal to work as a means of persuading or coercing compliance with the
working men’s demands
4. the contention advanced by the workers that although the work ceases, the
employment relation is deemed to continue albeit in a state of belligerent suspension
5. there is work stoppage, which stoppage is temporary
6. the work stoppage is done through the concerted action of the employees
7. the striking group is a legitimate labor organization, and in case of bargaining deadlock,
is the employees’ sole bargaining representative.

 TESTS IN DETERMINING THE LEGALITY OF A STRIKE:


1. Purpose Test
2. Compliance with Procedural and substantive requirements of law
3. Means employed test

1. PURPOSE TEST - The strike must be due to either


- bargaining deadlock and/or
- unfair labor practice.

2. COMPLIANCE WITH PROCEDURAL & SUBSTANTIVE REQUIREMENTS OF LAW to wit (a-d):

a. notice of strike
b. 30/15-day cooling-off period before the intended date of actual strike subject to the
7-day strike ban.

COOLING –OFF PERIOD - that period of time given the NCMB to mediate and conciliate the
parties.
 It is that span of time allotted by law for the parties to settle theirdisputes in a
peaceful manner, before staging a strike or lockout.

c. strike vote

STRIKE VOTE - a requirement wherein the decision to declare a strike must be:
1. approved by a MAJORITY of the total union membership in the bargaining unit
concerned [not of the whole bargaining unit],
2. obtained by SECRET BALLOT
in MEETINGS OR REFERENDA called for the purpose.

PURPOSE OF A STRIKE VOTE: - to ensure that the intended strike is a majority decision
 The report on the strike vote must be submitted to the DOLE at least 7 days
before the intended strike subject to the cooling-off period.

d. 7-day strike ban

7-DAY STRIKE BAN – it is the 7 day waiting period before the date of the purported strike
[within which the union intending to conduct a strike must at least submit a report to the
Department as to the result of the strike vote] intended to give the Department an opportunity
TO VERIFY whether the projected strike really carries the imprimatur of the majority of the
union members in addition to the cooling off period before actual strike.

3. MEANS EMPLOYED TEST-A strike may be legal at its inception but eventually be declared
illegal if the strike is accompanied by violence which violence is widespread, pervasive and
adopted as a matter of policy and not merely violence which is sporadic which normally
occur in a strike area [see prohibited activities under art. 264].

NOTE: The 3 tests must concur. Non-compliance with any of the aforementioned requisites
renders the strike illegal.
 EFFECT OF GOOD FAITH OF STRIKERS ON LEGALITY OF STRIKE - A strike may be
considered legal where the union believed that the company committed ULP and the
circumstances warranted such belief in good faith, although subsequently such allegations of
ULP are found out as not true. (Bacus vs. Ople)

 TOTALITY DOCTRINE - the culpability of an employer’s remarks are to be evaluated not


only on the basis of their implicit implications but are to be appraised against the background
of and in conjunction with collateral circumstances.
Under this “doctrine” expressions of opinion by an employer which, though innocent in
themselves, frequently were held to be culpable because:

a. of the circumstances under which they were uttered


b. the history of the particular employer’s labor relations of anti-union bias or
c. because of their connection with an established collateral plan of coercion or
interference.
WHEN CAN THE SEC. OF LABOR ASSUME JURISDICTION OVER A STRIKE?
1.there exists a labor dispute causing or likely to cause a strike or lockout in a INDUSTRY
INDISPENSABLE TO THE NATIONAL INTEREST,
2.the Secretary of Labor and Employment may:
a. decide it, or
b. certify the same to the NLRC for COMPULSORY ARBITRATION.

NOTE: What constitutes indispensable industry is based solely upon the discretion of the
Secretary of Labor.

 EFFECTS OF THE ASSUMPTION OF JURISDICTION OF THE SECRETARY

1. AUTOMATICALLY ENJOINS the intended or impending strike or lockout as specified in the


assumption or certification order;

2. if one has already taken place at the time of assumption or certification, all striking or
locked-out employees shall IMMEDIATELY RETURN TO WORK; and

3. the employer shall immediately resume operations and READMIT ALL WORKERS under the
same terms and conditions prevailing before the strike or lockout.

 A motion for reconsideration does not suspend the effects as the assumption order is
immediately executory.

 ISSUES THAT THE SECRETARY OF LABOR CAN RESOLVE WHEN HE ASSUMES


JURISDICTION OVER A LABOR DISPUTE:

c. Only issues submitted to the Secretary may be resolved by him. (PAL vs. Sec. of Labor,
23 January 1991).

d. Issues submitted to the Secretary for resolution and such issues involved in the labor
dispute itself. (St. Scholastica’s College vs. Torres; 29 June 1992)

e. Secretary of Labor may subsume pending labor cases before Labor Arbiters which are
involved in the dispute and decide even issues falling under the exclusive and original
jurisdiction of labor arbiters such as the declaration of legality or illegality of strike.
(Int’l Pharmaceuticals vs. Sec of Labor; 09 January 1992).

f. Power of Sec. of Labor is plenary and discretionary. (St. Luke’s Medical Center vs. Torres;
29 June 1993; reiterated in PAL vs. Confesor; 10 March 1994).
IN CASE THE STRIKE IS DECLARED LEGAL, ARE THE STRIKERS ENTITLED TO STRIKE
DURATION PAY?

GENERAL RULE: Strikers are not entitled to their wages during the period of a strike, even
if the strike is legal.

EXCEPTIONS:

1. In case of a ULP STRIKE, in the discretion of the authority deciding the case [see table for
more distinction bet. Economic and ULP strike]

2. Where the strikers VOLUNTARILY AND UNCONDITIONALLY OFFERED TO RETURN TO


WORK, but the employer refused to accept the offer [e.g. of an “unconditional offer”:
“we will return tomorrow” and NOT “willing to return provided]

 They are entitled to backwages from the date the offer was made

3. Where there is RETURN-TO-WORK ORDER and the employees are discriminated against.

- They are entitled to backwages from the date of discrimination.

 RULE ON REINSTATEMENT OF STRIKING WORKERS:

GENERAL RULE : Striking employees are entitled to reinstatement, regardless of whether


or not the strike was the consequence of the employer’s ULP
REASON: because while out on strike, the strikers are not considered to have abandoned
their employment, but rather have only ceased from their labor.

 The declaration of a strike is NOT a renunciation of employment relation.

EXCEPTIONS - The following strikers are NOT entitled to reinstatement:


1. Union officers who knowingly participate in an illegal strike; and
2. any striker/union member who knowingly participates in the commission of illegal acts
during the strike.

 Those union members who joined an illegal strike but have not committed any illegal
act shall be reinstated but without any backwages.

 RULE IN STRIKES IN HOSPITALS

1. It shall be the duty of striking employees or locking-out employer to provide and maintain
an effective SKELETAL WORKFORCE of medical and other health personnel for the duration
of the strike or lockout.

2. SECRETARY OF LABOR MAY IMMEDIATELY ASSUME JURISDICTION WITHIN 24 HOURS FROM


KNOWLEDGE of the occurrence of such strike or lock-out or certify it to the Commission for
compulsory arbitration.

 ART. 264. PROHIBITED ACTIVITIES

 LABOR ORGANIZATIONS

1. No labor organization or employer shall declare a strike or lockout


 without first having bargained collectively in accordance with Title VII of this
Book or

 without first having filed the notice required in Art. 263 or

 without the necessary strike or lockout vote first having been obtained and
reported to the Department.

NO strike or lockout shall be declared:

a. AFTER assumption of jurisdiction by the President or the Secretary or

b. AFTER certification or submission of the dispute to compulsory or voluntary


arbitration or

c. DURING the pendency of cases involving the same grounds for the strike or lockout.

 THIRD PERSONS

2. NO person [3rd persons] all obstruct, impede or interfere with by force, violence, coercion,
threats or intimidation
 any peaceful picketing by employees

 during any labor controversy or in the exercise of the right of self- organization
or collective bargaining or

 shall aid or abet such obstruction or interference.

 EMPLOYERS

3. NO employer shall use or employ any STRIKE-BREAKER nor shall any person be employed as
a strikebreaker.

PUBLIC OFFICIAL OR EMPLOYEE

4. NO public official or employee, including officers and personnel of the New Armed Forces
of the Philippines of the Integrated National Police, or armed persons,

 shall bring in, introduce or escort in any manner, any individual who seeks to
replace strikes in entering or leaving the premises of a strike area, or work in
place of the strikers.

 The police force shall keep out of the picket lines unless actual violence or other
criminal acts occur therein:

Provided, That nothing herein shall be interpreted to prevent any public officers from
taking any measure necessary to:

a. maintain peace and order,

b. protect life and property, and/or

c. enforce the law and legal order.


 PERSONS ENGAGED IN PICKETING
NO person engaged in PICKETING shall:

a. commit any act of violence, coercion or intimidation or

b. obstruct the free ingress to or egress from the employer’s premises for lawful
purposes,or
c. obstruct public thoroughfares

 ART. 265. IMPROVED OFFER vs. REDUCED OFFER BALLOTING

IMPROVED OFFER REDUCED


BALLOTING OFFER
BALLOTING

1. a referendum 1. a
conducted by the NCMB referendum
on or before the 30th day conducted by the
of the strike, for the NCMB for the
purpose of determining purpose of
whether or not the determining
improved offer of the whether or not
employer is acceptable the reduced
to the union members. offer of the
union is
acceptable to
the board of
directors,
trustees or
partners.
PURPOSE
2. to determining 2. to
whether or not the determining
improved offer of the whether or not
EMPLOYER is acceptable the improved
to the union members. offer of the
 to ascertain the UNION is
real sentiment of acceptable to
the silent majority the union
of the union members.
members on strike. to ascertain
the real
sentiment of the
silent majority of
the union
members on
strike.
PERIOD OF FILING
3. on or before the 3. on or
30th day of the strike before the 30th
day of the
lockout
LIMITATION 4. applies
4. applies only to only to economic
economic strikes strikes-deadlock
(deadlock) in bargaining
(lockout)

 ART. 266. ARREST AND DETENTION

 General rule is that a police officer cannot arrest or detain a union member for union
activities without previous consultations with the Secretary of Labor EXCEPT on grounds of:
a. national security

b. public peace

c. commission of a crime

BOOK SIX
POST EMPLOYMENT

TITLE I

TERMINATION OF
EMPLOYMENT

 ART. 279. SECURITY OF TENURE


 SECURITY OF TENURE - the constitutional right granted the employee, that the employer
shall not terminate the services of an employee except for just cause or when authorized by
law.
RELIEFS AVAILABLE TO AN ILLEGALLY DISMISSED EMPLOYEE:

A. REINSTATEMENT - Restoration of the employee to the state from which he has been
unjustly removed or separated without loss of seniority rights and other privileges.

 FORMS OF REINSTATEMENT:
1. ACTUAL OR PHYSICAL REINSTATEMENT
- the employee shall be admitted back to work
2. PAYROLL REINSTATEMENT
- the employee is merely reinstated in the payroll.

May a court order the reinstatement of a dismissed employee even if the prayer of
the complaint did not include such relief?

YES. So long as there is a finding that the employee was illegally dismissed, the court can
order the reinstatement of an employee even if the complaint does not include a prayer for
reinstatement, unless, of course, the employee has waived his right to reinstatement. By law,
an employee who is unjustly dismissed is entitled to reinstatement, among others. The mere
fact that the complaint did not pray for reinstatement will not prejudice the employee,
because technicalities of law and procedure are frowned upon in labor proceedings (General
Baptist Bible College v. NLRC; 219 SCRA 549).

What happens if there is an order of reinstatement but the position is no longer


available?
The employee should be given a SUBSTANTIALLY EQUIVALENT POSITION. If NO
SUBSTANTIALLY EQUIVALENT POSITION IS AVAILABLE, reinstatement should not be ordered
because that would in effect compel the employer to do the impossible. In such a situation, the
employee should merely be given SEPARATION PAY CONSISTING OF ONE MONTH SALARY FOR
EVERY YEAR OF SERVICE (1:1).

 CIRCUMSTANCES WHEN COMPANY MAY NOT REINSTATE DESPITE ORDER OF


REINSTATEMENT
1. TRANSFER OF BUSINESS OWNERSHIP -There is no law requiring a purchasing corporation to
absorb the employees of the selling corporation. A fortiori, reinstatement of unjustly
dismissed employees CANNOT be enforced against the new owner UNLESS there is an
express agreement on the assumption of liabilities by the purchasing corporation;
2. When reinstatement is rendered IMPOSSIBLE due to the abolition of the position;
3. When the business has CLOSED DOWN;
4. PHYSICAL INCAPACITY of the employee; and
5. DOCTRINE OF STRAINED RELATIONS - When the employer can no longer trust the
employee and vice-versa, reinstatement could not effectively serve as a remedy. This
doctrine only applies only to positions which require trust and confidence

- Under the circumstances where the employment relationship has become so


strained to preclude a harmonious working relationship, and that all hopes at
reconciliation are nil after reinstatement, it would be more beneficial to accord the
employee backwages and separation pay.

B. BACKWAGES – the relief given to an employee to compensate him for lost earnings
during the period of his dismissal.

 PERIOD COVERED BY THE PAYMENT OF BACKWAGES - Backwages shall cover the period
from the date of dismissal of the employee up to the date of actual reinstatement

 HOW COMPUTED - Under existing law, backwages is computed from the time of the
illegal dismissal up to time of actual reinstatement.

 INCLUDED IN THE COMPUTATION OF BACKWAGES


1. transportation and emergency allowances
2. vacation or service incentive leave and sick leave
3. 13th month pay.

NOTE: facilities such as uniforms, shoes, helmets and ponchos should NOT be included in
the computation of backwages.
REASON: said items are given free, to be used only during official tour of duty not for
private or personal use.

 CIRCUMSTANCES THAT PREVENT AWARD OF BACKWAGES:


1. death of the employee
2. physical and mental incapacity
3. business reverses
4. closure of business
5. reinstatement of dismissed employee
confinement in jail

Which takes precedence in conflicts arising between employer’s MANAGEMENT


PREROGATIVE and the employees’ right to security of tenure?
The employee’s right to security of tenure. Thus, an employer’s management
prerogative includes the right to terminate the services of the employee but this management
prerogative is limited by the Labor Code which provides that the employer can terminate an
employee only for a just cause or when authorized by law. This limitation is because no less
than the constitution recognizes and guarantees employee’s right to security of tenure. (Art.
279, Labor Code; Art. XIII, Sec. 3, Constitution)

 ART. 280. REGULAR AND CASUAL EMPLOYMENT


REGULAR EMPLOYMENT - one wherein an employee is engaged to perform activities which are
usually necessary or desirable in the usual business or trade of the employer.
- He is a regular employee at the point of hiring.

Test of regularity: nature of employment.

CASUAL EMPLOYMENT – one wherein an employee is engaged to perform activities which are
not necessary or desirable in the usual trade or business of the employer.
- becomes a regular employee after one (1) year of service.
-
REGULAR EMPLOYEE VS.
PROJECT EMPLOYEE

PROJECT REGULAR
EMPLOYEE EMPLOYEE

A project employee is A regular


one whose employee is one
employment is fixed engaged to perform
for a specific project activities which are
or undertaking the usually necessary or
completion of which desirable in the usual
has been determined business or trade of
at the time of the the employer
engagement of the
employee. (See Art.
280 LC)

 TEMPORARY EMPLOYMENT OR EMPLOYMENT FOR A FIXED SPECIFIC PERIOD - one


wherein an employee is engaged to work on a specific project or undertaking which is usually
necessary or desirable in the usual business or trade of the employer, the completion of which
has been determined at the time of the engagement of the employee.
- He does not become a regular employee. The employment is coterminous with the specific
period.

 SEASONAL EMPLOYMENT - one wherein an employee is engaged to work during a


particular season on an activity that is usually necessary or desirable in the usual business or
trade of the employer.
 Pakiao employees are considered employees as long as the employer exercises control
over the means by which such workers are to perform their work.

 Employee is considered an regular employee insofar as the season to which he was


employed is concerned.
- during the off-season his employment is merely suspended not terminated (Phil.
Tobacco Flue Curring and Drying Corp. vs. NLRC).

 PROBATIONARY PERIOD OF EMPLOYMENT - the period needed to determine the fitness


for the job, i .e., the time needed to learn the job.
It is the period during which the employer may determine if the employee is qualified
for possible inclusion in the regular force.
PURPOSE: To afford the employer an opportunity to observe the fitness of a probationary
employee at work.
NOTE:The standard which the probationary employee is to meet must be made known by
the employer to the employee at the time of engagement. The services of probationary
employees may be terminated for the same causes as in the case of regular employee, except
that there is an additional ground – failure to meet the standard.

 LIMITATIONS ON THE EMPLOYER’S POWER TO TERMINATE A PROBATIONARY


EMPLOYMENT CONTRACT:
1. the power must be exercised in accordance with the specific requirements of the
contract [COMPLIANCE WITH SPECIFIC REQUIREMENTS];
2.if a particular time is prescribed, the termination must be within such time and if formal
notice is required, then that form must be used [WITHIN PARTICULAR PRESCRIBED TIME];
3.the employer’s dissatisfaction must be real and in good faith, not feigned so as to
circumvent the contract or the law [DISSATISFACTION—REAL AND IN GOOD FAITH]; and
4.there must BE NO UNLAWFUL DISCRIMINATION in the dismissal.

GENERAL RULE: Probationary employment shall not exceed six months from the date the
employee started working.

EXCEPTIONS:
1. when it is covered by an apprenticeship agreement stipulating a longer period; or
2. when the parties to an employment contract agree otherwise, such as when the same
is established by company policy or when the same is required by the nature of the work to be
performed by the employee

 EFFECT IF PROBATIONARY EMPLOYEE IS ALLOWED TO WORK BEYOND 6 MONTHS

If the probationary employee is allowed to work beyond the period of 6 months or the
agreed probationary period, said employee becomes a regular employee by operation of law.
Under the Labor Code, “an employee who is allowed to work after a probationary period
shall be considered a regular employee.” (Art. 281.)
 ART. 282. TERMINATION BY EMPLOYER

 SECURITY OF TENURE - An employer CANNOT terminate the services of an employee


EXCEPT for a just cause or when authorized by law.
 GUIDELINES TO DETERMINE THE VALIDITY OF TERMINATION:
1. Gravity of the offense
2. Position occupied by the employee
3. Degree of damage to the employer
4. Previous infractions of the same offense
5. Length of service

A. JUST CAUSES [MaNaBaCA]:


1. Serious MISCONDUCT OR WILLFUL DISOBEDIENCE by the employee of the lawful orders of his
employer or representative in connection with his work;
 Misconduct- transgression of some established and definite rule of action, a forbidden
act, a dereliction of duty, willful in character, and implies wrongful intent and not
mere error in judgment. (Dept. of Labor Manual, Sec. 4353.01)

2. Gross and habitual NEGLECT by the employee of his duties; (Repeated absenteeism and
tardiness)
3. FRAUD OR WILLFUL BREACH by the employee of the trust reposed in him by his employer or
duly organized representative
 Fraud must be committed against the employer or his representative and in connection
with the employee’s work. ((Dept. of Labor Manual, Sec. 4353.01 [3])

4. Commission of a CRIME OR OFFENSE BY THE EMPLOYEE AGAINST THE PERSON OF HIS


EMPLOYER or any immediate member of his family or his duly authorized representative;
and
 Conviction or prosecution is not required.

5. Other causes ANALOGOUS to the foregoing.


 A cause must be due to the voluntary or willful act or omission of the employee.
(Nadura v. Benguet Consolidated; G.R. No. L-17780)

 DUE PROCESS TO BE OBSERVED BY THE EMPLOYER - For termination of the employment


based on the any of the just causes for termination, the requirements of due process that an
employer must comply with are: (TWIN NOTICES)

1. Written NOTICE should be served to the employee specifying the ground or grounds for
termination and giving the said employee reasonable opportunity within which to
explain;
2. A HEARING OR CONFERENCE should be held during which the employee concerned, with
the assistance of counsel, if the employee so desires, is given the opportunity to respond
to the charge, present his evidence and present the evidence presented against him;
3. A WRITTEN NOTICE OF TERMINATION, if termination is the decision of the employer,
should be served on the employee indicating that upon due consideration of all the
circumstances, grounds have been established to justify his termination.
 For termination of employment based on authorized causes, the requirements of
due process shall be deemed complied with upon service of a written notice to the
employee and the appropriate Regional office of the Department of Labor and
employment at least thirty days before the effectivity of the termination specifying the
grounds for termination.

NOTE: Under the so-called WENPHIL DOCTRINE if the services of the employee was
terminated due to a just or authorized cause but the affected employee’s right to due process
has been violated, the dismissal is legal but the employee is entitled to damages by way of
indemnification for the violation of the right.

 SERRANO vs. ISETANN et. al. abandoned the WENPHIL DOCTRINE and ruled that if the
employee is dismissed under just or authorized cause but the affected employee’s
right to due process has been violated, his dismissal becomes ineffectual. Therefore,
the employee is entitled to backwages from the time he was dismissed until the
determination of the justness of the cause of the dismissal.

 AGABON vs. NLRC (Nov. 17, 2004) abandoned the Serrano doctrine and REINSTATED
THE WENPHIL DOCTRINE. The sanctions, however must be stiffer than that imposed in
Wenphil.

PREVENTIVE SUSPENSION – when there is an imminent threat to the lives and properties of
the employer, his family and representatives as well as the offender’s co-workers by the
continued service of the employee then he may be placed under preventive suspension pending
his investigation, leading to termination.
 preventive suspension should not last for more than thirty (30) days. The employee
should be made to resume his work after 30 days.

- it can be extended provided the employee’s wages are paid after the 30 day period.

 ARTS. 283-284.

B. AUTHORIZED CAUSES OF TERMINATION BY THE EMPLOYER:

1. installation of labor-saving devices (AUTOMATION)

2. REDUNDANCY (superfluity in the performance of a particular work)

 redundancy, for purposes of the Labor Code, exists where the services of an employee
are in excess of what is reasonably demanded by the actual requirements of the
enterprise. (Wishire File Co. Inc. vs. NLRC)

 Reorganization as a cost-saving device is acknowledged by jurisprudence. An employer


is not precluded from adopting a new policy conducive to a more economical and
effective management, and the law does not require that the employer should be
suffering financial losses before he can terminate the services of the employee on the
ground of redundancy (DOLE PHILIPPINES, INC et al., vs. NATIONAL LABOR RELATIONS
COMMISSION et al.)

3. RETRENCHMENT to prevent losses (there is excess of employees and employer wants to


prevent financial losses)

CONDITIONS UNDER WHICH AN EMPLOYER MAY RETRENCH:


(a) substantial losses which are not merely de minimis in extent;
(b) imminence of such substantial losses;
(c) retrenchment would effectively prevent the expected and additional losses;
(d) the alleged losses and expected losses must be proven by sufficient and convincing
evidence. (NDC-GUTHRIE PLANTATIONS, INC., vs. NATIONAL LABOR RELATIONS COMMISSION, ET. AL)

4. closing or CESSATION OF OPERATION of the establishment or undertaking UNLESS the


closing is for the purpose of circumventing the provisions of the Labor Code.

5. INSTALLATION of labor saving devices(Automation, Robotics)

6. DISEASE

a. the disease is incurable within 6 months and the continued employment of the
employee is prohibited by law or prejudicial to his health as well as to the health
of his co-employees

b. with a certification from public heath officer that the disease is incurable within 6
months despite due medication and treatment.

 Before an employer could dismiss an employee based on a disease, Section 8 of Rule 1,


Book VI of the Omnibus Rules Implementing the Labor Code requires a certification by a
competent public health authority that the disease is of such a nature or at such stage that
it cannot be cured within a period of 6 months even with proper medical treatment.
(Cathay Pacific Airways vs. NLRC and Martha Singson)

 DISCRIMINATION IN ANY FORM FROM PRE-EMPLOYMENT TO POST-EMPLOYMENT,


INCLUDING HIRING, PROMOTION OR ASSIGNMENT, BASED ON THE ACTUAL, PERCEIVED OR
SUSPECTED HIV STATUS OF AN INDIVIDUAL IS PROHIBITED. TERMINATION FROM WORK ON
THE SOLE BASIS OF ACTUAL, PERCEIVED OR SUSPECTED HIV STATUS IS DEEMED UNLAWFUL.
(SEC. 35, RA 8504, HIV/AIDS LAW)

CAUSE OF SEPARATION PAY


TERMINATION
Automation Equivalent to at
least one month pay or
at least one month pay
for every year of
service, whichever is
higher
Redundancy Equivalent to at
least one month pay or
at least one month pay
for every year of
service, whichever is
higher
Retrenchment Equivalent to one
month pay or at least
one-half month pay for
every year of service
Closures or Equivalent to one
cessation of month pay or at least
operations not one-half month pay for
due to serious every year of service
business losses or (If due to severe
financial reverses financial losses, no
separation pay due.)
Disease Equivalent to at
least one-month salary
or to ½ month salary
for every year of
service, whichever is
greater, a fraction of at
least 6 months shall be
considered one (1)
whole year.

NOTE: ARTICLE 283 governs the grant of separation benefits ‘in case of closures or
cessation of operation’ of business establishments NOT due to serious business losses or
cessation of operation [North Davao Mining Corp. vs. NLRC, et al]. Therefore, the employee is
not entitled to such benefit if the closure was due to SERIOUS BUSINESS LOSSES.

 When termination of employment is brought by the failure of an employee to meet the


standards of the employer in case of probationary employment, it shall be sufficient that a
written notice is served the employee within a reasonable time from the effective date of
termination.
 When termination is brought about by the completion of the contract or phase thereof,
no prior notice is required

 ART. 285. TERMINATION BY EMPLOYEE

TERMINATION BY THE EMPLOYEE:

a. WITHOUT JUST CAUSE- by serving a WRITTEN NOTICE on the employer at least one month in
advance. The employer upon whom no such notice was served may hold the employee liable for
damages.
b. WITH JUST CAUSE - An employee may put an end to establish WITHOUT SERVING ANY NOTICE
on the employer for any of the following just causes [SUCA]:

1. SERIOUS INSULT by the employer or his representative on the hour and person of the
employee;
2. Inhuman and UNBEARABLE TREATMENT accorded the employee by the employer or his
representative;
3. Commission of a CRIME OR OFFENSE by the employer or his representative against the
person of the employee or any of the immediate members of his family; and
4. Other causes ANALOGOUS to any of the foregoing.

 ART. 287. RETIREMENT

 RETIREMENT AGE - The age of retirement is that specified in the CBA or in the
employment contract. In the absence of a retirement plan or agreement providing for
retirement benefits of employees in an establishment, an employee upon reaching the age of
60 years or more, but not beyond 65 years which is hereby declared as the compulsory
retirement age, who has served at least 5 years in said establishment.
 The rule is different with respect to underground mining employees whose optional
retirement age is 50-60 provided they have at least served for a period of 5 years (Art.
287 as amended by RA 8558).

BENEFITS- A retiree is entitled to a retirement pay equivalent to at least ½ month salary


for every year of service, a fraction of at least six (6) months being considered as one whole
year.

Unless the parties provide for broader inclusions, the term “one half (1/2) month salary”
shall mean:
 15 days plus 1/12 of the 13th month pay and
 the cash equivalent of NOT more than 5 days of service incentive leaves.
(22.5 days per year of service)

Under Section 26, R.A. No. 4670, otherwise known as the Magna Carta for Public School
Teachers, public school teachers having fulfilled the age and service requirements of the
applicable retirement laws shall be given ONE RANGE SALARY RAISE upon retirement, which
shall be the basis of the computation of the lump sum of the retirement pay and the monthly
benefit thereafter.
NOTE: Exempted from the payment of retirement pay are retail, service and agricultural
establishments or operations employing NOT more than ten (10) employees or workers.

Age Retirement
60-65 Optional but the
employee must have served
at least 5 years
65 Compulsory (no need
for five years of service)

BOOK SEVEN

TRANSITORY AND FINAL PROVISIONS

TITLE II
PRESCRIPTION OF OFFENSES AND CLAIMS

 ART. 291. MONEY CLAIMS

 PERIODS OF PRESCRIPTION

Cause Period of
Prescription
MONEY 3 years from the
CLAIMS accrual of the causes of
action
ULP 1 year from the
accrual of the cause of
action
ILLEGAL 4 years from the
DISMISSAL accrual of the cause of
action
REINSTA 4 years
TEMENT
NOTE: The period of prescription mentioned under Article 292 of the Labor Code refers to
and is limited to money claims, all other cases of injury to rights of a workingman being
governed by the Civil Code. Hence, REINSTATEMENT prescribes in 4 years.

VENUE: The Regional Arbitration Branch where the workplace is located (NLRC Rules of
Procedure.

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