Professional Documents
Culture Documents
Labor Relations
Labor Relations
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
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
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.
– 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;
INDEPENDENT CHARTERING
INDEPENDENTLY UNREGISTERED
REGISTRATION REGISTERED
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.
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.
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.
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.
- 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:
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
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.
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
A. FRAUDULENT ACTS
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
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
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
1. Political right - the right to vote and be voted for, subject to lawful provisions on
qualifications and disqualifications.
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.
In general, a union is free to select its own members, and no person has an absolute
right to membership in a union.
b. persons mentioned in Art. 241(e) [subversives] of the labor code are prohibited from
becoming a member a labor organization.
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:
- 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.
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)
- said non-members may be assessed union dues equivalent to that paid by members
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.
CHAPTER III
TITLE V
COVERAGE
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
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
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
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.
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).
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?
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
a. restrain,
b. coerce,
c. discriminate against, or
d. unduly interfere
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
CHAPTER I
CONCEPT
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.
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
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.
HOWEVER, when the contracting-out is being done to minimize expenses, then it is a valid
exercise of management prerogative.
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)
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.
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
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.
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.]
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.
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
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
The mechanics of collective bargaining is set in motion only when the following
JURISDICTIONAL PRECONDITIONS are present:
In addition, the Bureau requires that the CBA should include a clear statement of the
terms of the CBA.
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)
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.
6. union seeks to represent some persons who are excluded from the Code
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
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.
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:
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
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
REASON: injunction contradicts the constitutional preference for voluntary modes of dispute
settlement
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:
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.
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.
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:
2. similarity in employment benefits, hours of work and other terms and conditions of
employment
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
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.
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) 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);
(d) the TOTAL VOTES FOR THE UNIONS IS AT LEAST 50% of the votes cast;
(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
The unions receiving the highest and second highest number of votes cast.
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.
NOTE: Registration of CBA only puts into effect the contract bar rule but the CBA itself is valid
and binding even if unregistered.
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)
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.
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
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.
TITLE VII- A
(as incorporated by RA 6715)
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)
1. Lack of jurisdiction
2. Grave abuse of discretion
3. Violation of due process
4. Denial of substantial justice
5. Erroneous interpretation of the law
TITLE VIII
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.
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.
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.
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)
NOTE: What constitutes indispensable industry is based solely upon the discretion of the
Secretary of Labor.
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.
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]
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.
Those union members who joined an illegal strike but have not committed any illegal
act shall be reinstated but without any backwages.
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.
LABOR ORGANIZATIONS
without the necessary strike or lockout vote first having been obtained and
reported to the Department.
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
EMPLOYERS
3. NO employer shall use or employ any STRIKE-BREAKER nor shall any person be employed as
a strikebreaker.
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:
b. obstruct the free ingress to or egress from the employer’s premises for lawful
purposes,or
c. obstruct public thoroughfares
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)
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
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).
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.
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.
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
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
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
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])
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.
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)
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.
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.
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.
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).
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
TITLE II
PRESCRIPTION OF OFFENSES AND 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.