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PALS LABOR LECTURE 15APRIL2020 HANDOUTS v2 PDF
PALS LABOR LECTURE 15APRIL2020 HANDOUTS v2 PDF
OVERVIEW AND
BASIC PRINCIPLES
ATTY. ADA D. ABAD
Dean, Adamson College of Law
Legal Counsel, Philippine Association of Colleges And Universities (PACU)
Managing Partner, Abad Abad & Associates Law Offices
Former Vice-Dean, Lyceum College of Law
C. MANAGEMENT PREROGATIVES
AND EMPLOYMENT
CLASSIFICATION
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 3
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 4
1. Constitutional and statutory
basis of labor law and social
legislation
STATE
police power/social justice
interpretation in favor of labor
PRINCIPLE OF INCORPORATION
Only SUBSTANTIAL
EVIDENCE required.
NO RETROACTIVE EFFECT OF
LABOR LAWS
EXCEPTION:
WHEN EXPLICITLY SO PROVIDED
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 16
GENERAL RULE #6:
IN CASE OF DOUBT OR AMBIGUITY, INTERPRET IN
FAVOR OF LABOR
AGES
ISMISSAL
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 18
ONTROL TEST
• IS THE MOST IMPORTANT TEST TO DETERMINE
EXISTENCE OF EMPLOYMENT RELATIONSHIP
VERSUS
LABOR-ONLY CONTRACTING
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 21
JOB-CONTRACTING IS OF TWO FORMS:
1. BILATERAL
(example: Company and retainer lawyer)
2. TRILATERAL
(example: Company and security agency with
security guards)
FIRST PREMISE:
Not all who work for you, need to be your employees
SECOND PREMISE:
Contractual relationship borne out of free will.
Management prerogative on part of the owner of the company
(principal), and freedom to contract and earn a living (property
right) on the part of the job contractor
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 27
THIRD PREMISE:
TRILATERAL RELATIONSHIP (ARRANGEMENT BETWEEN
THREE PARTIES REGARDING WORK)
IND. CONTRACTOR/
PRINCIPAL
SECURITY AGENCY
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 29
FIFTH PREMISE:
The vinculum of the relationship between the independent contractor and
the employees is the EMPLOYER-EMPLOYEE RELATIONSHIP
ER-EE RELNS.
Employees/se
Ind. Contractor/ curity guards
security agency
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 30
SIXTH PREMISE:
The principal (OWNER) does NOT HAVE ANY CONTROL over the
Independent Contractor, nor of the employees of the independent
contractor – EXCEPT as to the results of the job contracted.
NO
CONTROL
1. NO CAP + DIRECT
OR
2. NO CONTROL
DEAN ADA ABAD FOR PALS COVID LECTURE 15APR2020 33
TWO WAYS OF PROVING
LABOR-ONLY CONTRACTING:
(Sec. 5 of Department Order No. 18-02)
(b) The contractor has NO CONTROL over the conduct of the work to
be done by the contractor and/or his employees.
PHILIPPINE AIRLINES VS. LIGAN, GR 146408; 548 SCRA 181 (FEB 2008).
To FIRING