Labor Finals Reviewer

1. Components of retirement pay

A. One-half month salary.
In the absence of a retirement plan or agreement providing for retirement benefits
of employees in the establishment, an employee, upon reaching the optional or
compulsory retirement age specified in Article 287, shall be entitled to retirement pay
equivalent to at least ½ month salary for every year of service, a fraction of at least 6
months being considered as 1 whole year.

B. Components of one-half month salary.

For purposes of determining the minimum retirement pay due an employee under
Article 287, the term “one-half month salary” shall include all of the following:
(1) 15 days salary of the employee based on his latest salary rate
(2) Cash equivalent of 5 days of service incentive leave;
(3) 1/12 of the 13th month pay due the employee; and
(4) All other benefits that the employer and employee may agree upon that should
be included in the computation of the employee’s retirement pay.

C. One-half month salary means 22.5 days

15 days salary;
2.5 days representing 1/12 of the 13th month pay; and
5 days of the service incentive leave

2. Define Contract Bar Rule; 1-year bar rule; deadlock bar rule vis-a-vis certificate election
Contract Bar Rule
Under this rule, a petition for certification election may not be filed when a CBA
between the employer and a duly recognized or certified bargaining agent has been
registered with the Bureau of Labor Relations in accordance with the Labor Code.
Where the CBA is duly registered, a petition for certification election may be filed only
within the 60 day freedom period prior to its expiry. The purpose of this rule is to ensure
stability in the relationship of the workers and the employer by preventing frequent
modifications of any CBA earlier entered into by them in good faith and for the
stipulated original purpose.
When Contract Bar rule does not apply:
1. Where there is an automatic renewal provision in the CBA but proper to the
date when such automatic renewal became effective, the employer seasonably filed a
manifestation with the Bureau of Labor Relations of its intention to terminate the said
agreement if and when it is established that the bargaining agent does not represent
anymore the majority of the workers in the bargaining unit.
2. Where the CBA, despite its due registration, is found in appropriate proceedings
that: (a) it contains provisions lower than the standards fixed by law; or (b) the
documents supporting its registration are falsified, fraudulent or tainted with
misrepresentation.
 3. Where the CBA does not foster industrial stability, such as contracts where the
identity of the representative is double since the employer extended direct recognition
to the union and concluded a CBA therewith less than 1 year from the time a
certification election was conducted where the “no union” vote won. This situation
obtains in a case where the company entered into a CBA with the union when its status
as exclusive bargaining agent of the employees has not been established yet.
4. Where the CBA was registered before or during the last 60 days of a subsisting
agreement or during the pendency of a representation case. It is well settled that the
60-day freedom period based on the original CBA should not be affected by any
amendment, extension, or renewal of the CBA for the purposes of certification election.

Bargaining Deadlock Bar Rule

Under this rule, a petition for certification election may not be entertained when a
bargaining deadlock to which an incumbent or certified bargaining agent is a party, has
been submitted to conciliation or arbitration or has become the subject of a valid notice
of strike or lockout.

3. Modes of determining the sole and exclusive bargaining agent in a bargaining unit
Modes of Determining the Sole and Exclusive Bargaining Agent
1. Voluntary Recognition – refers to the process by which a legitimate labor union
is voluntarily recognized by the employer as the exclusive bargaining representative or
agent in a bargaining unit and reported as such with the Regional Office in accordance
with the Rules to Implement the Labor Code.

2. Certification Election – refers to the process of determining through secret

ballot the sole and exclusive bargaining agent of the employees in an appropriate
bargaining unit for purposes of collective bargaining or negotiations. Certification
election is one ordered by DOLE.

3. Consent Election – refers to the process of determining through secret ballot

the sole and exclusive representative of the employees in an appropriate bargaining unit
for purposes of collective bargaining and negotiation. It is voluntarily agreed upon by
the parties, with or without the intervention of DOLE.

4. Run-off Election – refers to an election between the labor unions receiving the 2
highest number of votes in a certification election or consent election with 3 or more
choices, where such a certification election or consent election results in none of the 3
or more choices receiving the majority of the valid votes cast, provided that the total
number of votes for all contending unions is at least 50% of the number of votes cast.

5. Re-run Election – may be justified if certain irregularities have been committed

during the conduct of the certification election such as, inter alia, disenfranchisement of
the voters, lack of secrecy in the voting, fraud or bribery, in which case, the certification
election should be invalidated. Such invalidation would necessitate the conduct of a re-
 run election among the contending union to determine the true will and desire of the
employee-electorates.

4. Legal picketing: how do you conduct it

“Picketing” is the act of workers in peacefully marching to and fro before an
establishment involved in labor dispute generally accompanies by the carrying and
display of signs, placards and banners intended to inform the public about the dispute.

Requisites for lawful picketing:

1. The picket should be peacefully carried out;
2. There should be no act of violence, coercion or intimidation attendant thereto;
3. The ingress to or engress from the company premises should not be obstructed;
and
4. Public thoroughfares should not be impeded.

5. Union shop clause vs. closed shop agreement/agency shop agreement

Union Shop Agreement
There is “union shop” when all new regular employees are required to join the
union within a certain period as a condition for their continued employment. Its role is
to compel the membership of those who are not yet union members. Under this
scheme, the employer is given the freedom to hire and employ any person who is not a
member of the bargaining agent. Once such person becomes an employee, he is
required to become a member of the bargaining agent and to remain as such member in
good standing for the whole period of the effectivity of the CBA as a condition for his
continued employment.

Closed Shop Agreement

A “closed shop” may be defined as a scheme in which, by agreement between the
employer and its employees through their bargaining union/agent, no person may be
employed unless he or she is, becomes, and, for the duration of the agreement, remains
a member in good standing of the bargaining union. Basically, this kind of agreement
stipulates the undertaking by the employer not to hire or employ any person who is not
a member of the bargaining union. Once employed, it is required that the said person
should remain a member of the bargaining union in good standing as a condition for
continued employment, at least during the whole duration of the CBA.

6. Yellow Dog Contract

It is one which exacts from workers as a condition of employment that they shall
not join or belong to a labor organization, or attempt to organize one during their period
of employment or that they shall withdraw therefrom in case they are already members
of a labor organization.

7. Grounds upon w/c No Strike No Lockout provision in the CBA can be imposed/enforced
by management
 A “No Strike, No Lockout” clause in the CBA is an expression of the firm
commitment of the parties thereof that, on the part of the union, it will not mount a
strike during the effectivity of the CBA, and on the part of the employer, that it will not
stage a lockout during the lifetime thereof.
This clause may be invoked by an employer only when the strike is economic in
nature or one which is conducted to force wage or other concessions from the
employer that are not mandated to be granted by the law itself. It does not bar strikes
grounded on unfair labor practices. This is so because it is presumed that all economic
issues between the employer and the bargaining agent are deemed resolved with the
signing of the CBA.
The same rule also applies in case of lockout. The said clause may only be invoked
by the union in case the ground for the lockout is economic in nature but it may not be
so cited if the ground is unfair labor practice committed by the union.

NOTE: A strike conducted in violation of this clause is illegal.

8. Eng Bee (?) case- statutory cooling off period in a strike (30, 15, 7 days) [Couldn’t find
this one]

The 7 day waiting period or strike ban is a distinct and separate requirement form
the cooling-off period prescribed by law. The latter cannot be substituted for the former
and vice-versa.
The cooling-off period is counted from the time of the filing of the notice of strike.
The 7-day waiting period/strike ban, on the other hand, is reckoned from the time the
strike vote report is submitted to the NCMB-DOLE.
Consequently, a strike is illegal for failure to comply with the prescribed
mandatory cooling-off period and the 7-day waiting period/strike ban after the
submission of the report on the strike vote.

The requirements of cooling-off period and 7-day waiting period/strike ban must
both be complied with. The labor union may take the strike vote and report the same to
the NCMB-DOLE within the statutory cooling-off period. In this case, the 7-day waiting
period/strike ban should be counted from the day following the expiration of the
cooling-off period. A contrary view would certainly defeat and render nugatory the
salutary purposes behind the distinct requirements of cooling-off period and the waiting
period/strike ban.
The NCMB Primer on Strike, Picketing and Lockout, issued by the NCMB, the
agency of government directly tasked with the implementation and enforcement of this
particular legal provision and requirement, is very clear on this point, thus:

“In the event the result of the strike/lockout vote ballot is filed
within the cooling-off period, the 7-day requirement shall be counted
from the day following the expiration of the cooling-off period.”
 In other words, the seven (7) days should be added to the cooling-off period of
fifteen (15) days, in case of unfair labor practice, or thirty (30) days, in case of collective
bargaining deadlock and it is only after the lapse of the total number of days after
adding the two (2) periods that the strike/lockout may be lawfully and validly staged.

9. What is an economic strike?

Economic strike - one declared to demand higher wages, overtime pay, holiday pay, vacation
pay, etc. It is one which is declared for the purpose of forcing wage or other concessions from
the employer for which he is not required by law to grant.

10. Labor-only contracting

- There is Labor only contracting when the requisites of a legitimate job contracting is not
met.

What are the requisites of legitimate job contracting?

(1) The contractor must be duly registered with the DOLE. If not registered, the contractor is
presumed a labor-only contractor.
(2) The contractor carries a distinct and independent business and undertakes to perform the
job, work or service on its own responsibility, according to its own manner and method, and
free from control and direction of the principal in all matters connected with the performance
of the work except as to the results thereof;
(3) The contractor has substantial capital and/or investment in the form of tools, equipment,
machineries, work premises, and other materials which are necessary in the conduct of the
business; and
(4) The Service Agreement between principal and contractor should ensure compliance with all
the rights and benefits of workers under Labor Laws such as labor and occupational safety and
health standards, free exercise of the right to self-organization, security of tenure, and social
and welfare benefits.

Absence of any of the foregoing requisites makes it a labor-only contracting arrangement.

What is the amount of substantial capital under the new Rules?

1. In the case of corporations, partnerships or cooperatives – paid-up capital stocks/shares of

at least P3 Million; or

2. In the case of single proprietorship - a net worth of at least P3 Million.

• “Substantial capital” and “investment in tools, etc.” are two separate requirements.
“Substantial capital” and “investment in tools, equipment, implements, machineries and work
premises” should be treated as two (2) distinct and separate requirements in determining
whether there is legitimate job contracting arrangement.

When is there labor-only contracting?

(a) The contractor does not have substantial capital or investments in the form of tools,
equipment, machineries, work premises, among others, and the employees recruited and
placed are performing activities which are usually necessary or desirable to the operation of
the company, or directly related to the main business of the principal within a definite or
predetermined period, regardless of whether such job, work or service is to be performed or
completed within or outside the premises of the principal; OR

(b) The contractor does not exercise the right of control over the performance of the work of
the employee.

NOTE: Even if only one of the two (2) elements above is present, there is labor-only contracting.

What are the effects of labor-only contracting?

1. The labor-only contractor will be treated as the agent or intermediary of the principal. Since
the act of an agent is the act of the principal, representations made by the labor-only
contractor to the employees will bind the principal.

2. The principal will become the employer as if it directly employed the workers supplied by the
labor-only contractor to undertake the subcontracted job or service. It will be responsible to
them for all their entitlements and benefits under labor laws.

3. The principal and the labor-only contractor will be solidarily treated as the direct employer.

4. The employees will become employees of the principal, subject to the classifications of
employees under Article 280 of the Labor Code

11. Salient features of Paternity Leave (RA 8187)

What is paternity leave benefit?

“Paternity leave” covers a married male employee allowing him not to report for work for
seven (7) calendar days but continues to earn the compensation therefor, on the condition that
his spouse has delivered a child or suffered miscarriage for purposes of enabling him to
effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-
born child.
“Delivery” includes childbirth or any miscarriage.
“Spouse” refers to the lawful wife. For this purpose, “lawful wife” refers to a woman who is
legally married to the male employee concerned.
“Cohabiting” refers to the obligation of the husband and wife to live together

What is the covered total number of deliveries?

Every married employee in the private and public sectors is entitled to a paternity leave of
seven (7) calendar days with full pay for the first four (4) deliveries of the legitimate spouse
with whom he is cohabiting.

Paternity leave benefits are granted to the qualified employee after the delivery by his wife,
without prejudice to an employer allowing an employee to avail of the benefit before or during
the delivery, provided that the total number of days should not exceed seven (7) calendar days
for each delivery.

Is an unavailed paternity leave benefit convertible to cash?

No. In the event that the paternity leave benefit is not availed of, said leave shall not be
convertible to cash.

12. RA 10365 Kasambahay/ RA 10361 Rights of Kasambahay

(RA 10361 aka. “Domestic Workers Act” or “ Batas Kasambahay” approved by President
Benigno S. Aquino III on January 18, 2013)

What is the coverage of the Kasambahay Law?

R.A. No. 10361 applies to all domestic workers employed and working within the country. It
shall cover all parties to an employment contract for the services of the following Kasambahay,
whether on a live-in or live-out arrangement, such as, but not limited to:

(a) General househelp;

(b) Yaya;
(c) Cook;
(d) Gardener;
(e) Laundry person; or
(f) Any person who regularly performs domestic work in one household on an occupational
basis.

Who are excluded from its coverage?

The following are not covered:

(a) Service providers;
(b) Family drivers;
(c) Children under foster family arrangement; and
(d) Any other person who performs work occasionally or sporadically and not on an
occupational basis.
Who is a domestic worker or kasambahay?

“Domestic worker” or “kasambahay” refers to any person engaged in domestic work within an
employment relationship, whether on a live-in or live-out arrangement, such as, but not limited
to, general househelp, "yaya", cook, gardener, or laundry person, but shall exclude service
providers, family drivers, children who are under foster family arrangement, or any person who
performs domestic work only occasionally or sporadically and not on an occupational basis.

This term shall not include children who are under foster family arrangement which refers to
children who are living with a family or household of relative/s and are provided access to
education and given an allowance incidental to education, I.e., "baon", transportation, school
projects, and school activities.

Because of these new terminologies prescribed in the law, the use of the term “househelper”
may no longer be legally correct.

Is the employment contract required to be in writing?

Yes. The employment contract must be in writing and should contain the conditions set by law.

What are the rights and privileges of a kasambahay?

The rights and privileges of the Kasambahay are as follows:
(a) Minimum wage;
(b) Other mandatory benefits, such as the daily and weekly rest periods, service incentive leave,
and 13th month pay;
(c) Freedom from employers' interference in the disposal of wages;
(d) Coverage under the SSS, PhilHealth and Pag-IBIG laws;
(e) Standard of treatment;
(f) Board, lodging and medical attendance;
(g) Right to privacy;
(h) Access to outside communication;
(i) Access to education and training;
(j) Right to form, join, or assist labor organization;
(k) Right to be provided a copy of the employment contract;
(I) Right to certificate of employment;
(m) Right to terminate the employment; and
(n) Right to exercise their own religious beliefs and cultural practices.

The foregoing rights and privileges are discussed below.

-----------------------------
RA 10361
ARTICLE II
RIGHTS AND PRIVILEGES

SEC. 5. Standard of Treatment. – The employer or any member of the household shall not subject a domestic
worker or “kasambahay” to any kind of abuse nor inflict any form of physical violence or harassment or any act
tending to degrade the dignity of a domestic worker.

SEC. 6. Board, Lodging and Medical Attendance.  – The employer shall provide for the basic necessities of the
domestic worker to include at least three (3) adequate meals a day and humane sleeping arrangements that
ensure safety.
The employer shall provide appropriate rest and assistance to the domestic worker in case of illnesses and injuries
sustained during service without loss of benefits.
At no instance shall the employer withdraw or hold in abeyance the provision of these basic necessities as
punishment or disciplinary action to the domestic worker.

SEC. 7. Guarantee of Privacy.  – Respect for the privacy of the domestic worker shall be guaranteed at all times and
shall extend to all forms of communication and personal effects. This guarantee equally recognizes that the
domestic worker is obliged to render satisfactory service at all times.

SEC. 8. Access to Outside Communication. –  The employer shall grant the domestic worker access to outside
communication during free time: Provided,  That in case of emergency, access to communication shall be granted
even during work time. Should the domestic worker make use of the employer’s telephone or other
communication facilities, the costs shall be borne by the domestic worker, unless such charges are waived by the
employer.

SEC. 9. Right to Education and Training.  – The employer shall afford the domestic worker the opportunity to finish
basic education and may allow access to alternative learning systems and, as far as practicable, higher education or
technical and vocational training. The employer shall adjust the work schedule of the domestic worker to allow
such access to education or training without hampering the services required by the employer.

SEC. 10. Prohibition Against Privileged Information. – All communication and information pertaining to the
employer or members of the household shall be treated as privileged and confidential, and shall not be publicly
disclosed by the domestic worker during and after employment. Such privileged information shall be inadmissible
in evidence except when the suit involves the employer or any member of the household in a crime against
persons, property, personal liberty and security, and chastity.
---------------------

What is the minimum wage of kasambahay?

Under the Kasambahay Law, the following are the minimum wages of kasambahays:
(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National
Capital Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first
class municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other
municipalities.

Are the minimum wages subject to review by the RTWPBs or Regional Boards?
Yes. After one (1) year from the effectivity of the Kasambahay Law, and periodically thereafter,
the Regional Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper,
determine and adjust the minimum wage rates of domestic workers.

What are some important principles on wage of kasambahay?

• Frequency of payment of wages. - The wages of the Kasambahay shall be paid at least once a
month. This is so because the minimum wage rates are on a monthly basis.
• The equivalent minimum daily wage rate of the Kasambahay shall be determined by dividing
the applicable minimum monthly rate by thirty (30) days.
• The amount of the minimum wage depends on the geographical area where the Kasambahay
works.
• Payment of wages:
1. To whom paid. - It should be made on time directly to the Kasambahay to whom they
are due in cash at least once a month.

2. Deductions, prohibition; when allowed. - The employer, unless allowed by the

Kasambahay through a written consent, shall make no deductions from the wages other
than that which is mandated by law such as for SSS, Philhealth or Pag-IBIG
contributions.

3. Mode of payment. - It should be paid in cash and not by means of promissory notes,
vouchers, coupons, tokens, tickets, chits, or any object other than the cash wage as
provided for under this Act.

4. Pay slip. – The employer shall at all times provide the Kasambahay with a copy of the
pay slip containing the amount paid in cash every pay day, and indicating all deductions
made, if any. The copies of the pay slip shall be kept by the employer for a period of
three (3) years.

5. Prohibition on Interference in the disposal of wages. – It shall be unlawful for the

employer to interfere with the freedom of the Kasambahay in the disposition of his/her
wages, such as:
(a) Forcing, compelling, or obliging the Kasambahay to purchase merchandise,
commodities or other properties from the employer or from any other person; or
(b) Making use of any store or services of such employer or any other person.

6. Prohibition against withholding of wages. – It shall be unlawful for an employer,

directly or indirectly, to withhold the wages of the Kasambahay. If the Kasambahay
leaves without any justifiable reason, any unpaid salary for a period not exceeding
fifteen (15) days shall be forfeited. Likewise, the employer shall not induce the
Kasambahay to give up any part of the wages by force, stealth, intimidation, threat or by
any other means whatsoever.

What are important terms and conditions of employment of kasambahay?

The following is a rundown of the basic terms and conditions that should be observed in the
employment of a Kasambahay:

a. Employable age. - Children whose age is below 15 years are absolutely prohibited to work as
Kasambahay.

b. Normal daily hours of work. – Because R.A. No. 10361 does not contain any provision on the
number of normal hours of work that a Kasambahay should render in a day but merely
prescribes said daily rest period of eight (8) hours per day, it may be concluded that the
Kasambahay should work for at least a total of sixteen (16) hours per day as normal hours of
work. However, it must be noted that the Labor Code does not contain any provision on the
normal hours of work of househelpers. Article 1695 of the Civil Code, however, specifically
provides that househelpers shall not be required to work for more than ten (10) hours a day.
Since R.A. No. 10361, a special law, is the most recent piece of legislation, it should prevail over
the general provision of the Civil Code.

c. Normal daily hours of work for working child-kasambahay is eight (8) hours per day.

d. 13th month pay. - The Kasambahay who has rendered at least one (1) month of service is
entitled to a 13th month pay which shall not be less than one-twelfth (1/12) of his/her total
basic salary earned in a calendar year. The 13th month pay shall be paid not later than
December 24 of every year or upon separation from employment.

e. Daily rest period. – The Kasambahay shall be entitled to an aggregate daily rest period of
eight (8) hours.

f. Weekly rest period. - The Kasambahay shall be entitled to at least twenty-four (24)
consecutive hours of rest in a week. The employer and the Kasambahay shall agree in writing
on the schedule of the weekly rest day but the preference of the Kasambahay, when based on
religious grounds, shall be respected.

g. Service incentive leave. - A Kasambahay who has rendered at least one (1) year of service
shall be entitled to an annual service incentive leave of at least five (5) days with pay. Any
unused portion of said annual leave shall not be cumulative or carried over to the succeeding
years. Unused leaves shall not be convertible to cash.

h. Social security benefits. - A Kasambahay who has rendered at least one (1) month of service
shall be covered by the Social Security System (SSS), Employees Compensation Commission
(ECC), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual
Fund or Pag-IBIG, and shall be entitled to all the benefits in accordance with their respective
policies, laws, rules and regulations.
i. Obligation of employer to register and enrol with SSS, PhilHealth, and Pag-IBIG. - As
employer of the Kasambahay, he/she shall register himself/herself with, and enroll the latter as
his/her employee to the SSS, PhilHealth, and Pag-IBIG.

j. Deposits for loss or damage. - It shall be unlawful for the employer or any other person to
require a Kasambahay to make deposits from which deductions shall be made for the
reimbursement of loss or damage to tools, materials, furniture and equipment in the
household.

k. Standard of treatment. - The Kasambahay shall be treated with respect by the employer or
any member of the household. He/she shall not be subjected to any kind of abuse, including
repeated verbal or psychological, nor be inflicted with any form of physical violence or
harassment or any act tending to degrade his/her dignity, as defined under the Revised Penal
Code, Violence Against Women and their Children Law (R.A. No. 9262), Special Protection of
Children Against Child Abuse, Exploitation and Discrimination Act (R.A. No. 7610) as amended
by R.A. No. 9231, Anti-Trafficking in Persons Act of 2003 (R.A. No. 9208), and other applicable
laws.

l. Board, lodging and medical attendance. - The employer shall provide for the basic necessities
of the Kasambahay, to include the following: (1) At least three (3) adequate meals a day, taking
into consideration the Kasambahay's religious beliefs and cultural practices; (2) Humane
sleeping condition that respects the person's privacy for live-in arrangement; and (3)
Appropriate rest and medical assistance in the form of first-aid medicines, in case of illnesses
and injuries sustained during service without loss of benefits.

m. Opportunities for education and training. - The Kasambahay shall be afforded the
opportunity to finish basic education, which shall consist of elementary and secondary
education. He/she may be allowed access to alternative learning systems and, as far as
practicable, higher education or technical vocational education and training.

n. Membership in labor organization. - The Kasambahay shall have the right to join a labor
organization of his/her own choosing for purposes of mutual aid and collective negotiation.

r. Health and safety. - The employer shall safeguard the safety and health of the Kasambahay in
accordance with the standards which the DOLE shall develop through the Bureau of Working
Conditions (BWC) and the Occupational Safety and Health Center (OSHC) within six (6) months
from the promulgation of this IRR. The said standards shall take into account the peculiar
nature of domestic work.

s. Prohibition on debt bondage. - It shall be unlawful for the employer or any person acting on
his/her behalf to place the Kasambahay under debt bondage. “Debt bondage” refers to the
rendering of service by the Kasambahay as security or payment for a debt where the length and
nature of service is not clearly defined or when the value of the service is not reasonably
applied in the payment of the debt.
t. Assignment to non-household work. - The employer shall not assign the Kasambahay to
work, whether in full or part-time, in a commercial, industrial or agricultural enterprise at a
wage rate lower than that provided for agricultural or non-agricultural workers.

What are the rules on termination of Kasambahay?

a. Pre-termination of employment. – The following rules shall be observed:

(1) In case the duration of employment is specified in the contract, the Kasambahay and the
employer may mutually agree upon notice to terminate the contract of employment before the
expiration of its term.
(2) In case the duration is not determined by stipulation or by nature of service, the employer
or the Kasambahay may give notice to end the employment relationship five (5) days before the
intended termination of employment.

b. Termination of employment initiated by the Kasambahay. - The Kasambahay may terminate

the employment relationship at any time before the expiration of the contract for any of the
following causes:

(1) Verbal or emotional abuse of the Kasambahay by the employer or any member of the
household;
(2) Inhuman treatment including physical abuse of the Kasambahay by the employer or any
member of the household;
(3) Commission of a crime or offense against the Kasambahay by the employer or any member
of the household;
(4) Violation by the employer of the terms and conditions of the employment contract and
other standards set forth in the law;
(5) Any disease prejudicial to the health of the Kasambahay, the employer, or members of the
household; and
(6) Other causes analogous to the foregoing.

If the Kasambahay leaves without cause, any unpaid salary due, not exceeding the equivalent of
15 days work, shall be forfeited. In addition, the employer may recover from the Kasambahay
deployment expenses, if any, if the services have been terminated within six (6) months from
employment.

d. Invalid ground for termination. - Pregnancy and marriage of the Kasambahay are not valid
grounds for termination of employment.

e. Employment Certification. - Upon the termination of employment, the employer shall issue
the Kasambahay, within five (5) days from request, a certificate of employment indicating the
nature, duration of the service and work description.
13. Wages by check/money order- when allowed

1. when such manner of payment is customary on the date of effectivity of this Code
(Labor Code)
2. When is necessary because of special circumstances as specified in appropriate
regulations to be issued by the Secretary of Labor and Employment
3. When it is stipulated in a collective bargaining agreement

Chapter III
PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall pay the wages of an employee by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal
tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such manner of payment is
customary on the date of effectivity of this Code, or is necessary because of special
circumstances as specified in appropriate regulations to be issued by the Secretary of Labor and
Employment or as stipulated in a collective bargaining agreement.

14. Rest period/ coffee breaks

REST PERIODS
1. WEEKLY REST DAY
What is the duration of weekly rest period?
It shall be the duty of every employer, whether operating for profit or not, to provide each of
his employees a rest period of not less than twenty-four (24) consecutive hours after every six
(6) consecutive normal work days

Is the employer’s prerogative to determine the rest period of its employees subject to
limitations?
Yes. The employer shall determine and schedule the weekly rest day of his employees subject
to CBA and to such rules and regulations as the DOLE Secretary may provide. However, the
employer shall respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds.

2. EMERGENCY REST DAY WORK

When can an employer require work on a rest day?

The employer may require any of its employees to work on their scheduled rest day for the
duration of the following emergency and exceptional conditions:
 a. In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity, to prevent loss of life and
property, or in case of force majeure or imminent danger to public safety;
b. In case of urgent work to be performed on machineries, equipment, or installations,
to avoid serious loss which the employer would otherwise suffer;
c. In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
d. To prevent serious loss of perishable goods;
e. Where the nature of the work is such that the employees have to work continuously
for seven (7) days in a week or more, as in the case of the crew members of a vessel to
complete a voyage and in other similar cases; and
f. When the work is necessary to avail of favorable weather or environmental conditions
where performance or quality of work is dependent thereon.

*Rest Periods or Coffee Breaks running from five (5) to twenty (20) minutes shall be considered
as compensable working time (Sec 7, Book III Rule 1 Omnibus Rules)

15. Globe Doctrine (International School Alliance of Educatiors vs Quisumbing; GR 128845)-

determining the appropriate bargaining unit

TEST TO DETERMINE THE CONSTITUENCY OF AN APPROPRIATE BARGAINING UNIT

What are the four tests to determine appropriate bargaining unit?

Based on jurisprudence, there are certain tests which may be used in determining the
appropriate collective bargaining unit, to wit:

(1) Community or mutuality of interest doctrine;

(2) Globe doctrine or will of the members;
(3) Collective bargaining history doctrine; and
(4) Employment status doctrine.

GLOBE DOCTRINE.
This principle is based on the will of the employees. It is called Globe doctrine because
this principle was first enunciated in the United States case of Globe Machine and Stamping
Co., where it was ruled, in defining the appropriate bargaining unit, that in a case where the
company’s production workers can be considered either as a single bargaining unit appropriate
for purposes of collective bargaining or as three (3) separate and distinct bargaining units, the
determining factor is the desire of the workers themselves. Consequently, a certification
election should be held separately to choose which representative union will be chosen by the
workers.
International School Alliance of Educators [ISAE] v. Quisumbing. - The Supreme Court
ruled here that foreign-hired teachers do not belong to the bargaining unit of the local-hires
because the former have not indicated their intention to be grouped with the latter for
purposes of collective bargaining. Moreover, the collective bargaining history of the school also
shows that these groups were always treated separately.

Case Digest:

ISAE vs. QUISUMBING

OCTOBER 23, 2012 ~ VBDIAZ

INTERNATIONAL SCHOOL ALLIANCE OF EDUCATORS (ISAE), petitioner, vs. HON. LEONARDO A. QUISUMBING in
his capacity as the Secretary of Labor and Employment; HON. CRESENCIANO B. TRAJANO in his capacity as the
Acting Secretary of Labor and Employment; DR. BRIAN MACCAULEY in his capacity as the Superintendent of
International School-Manila; and INTERNATIONAL SCHOOL, INC., respondents.,
G.R. No. 128845, June 1, 2000
 
FACTS:
 
Private respondent International School, Inc. (School), pursuant to PD 732, is a domestic educational institution
established primarily for dependents of foreign diplomatic personnel and other temporary residents. The decree
authorizes the School to employ its own teaching and management personnel selected by it either locally or
abroad, from Philippine or other nationalities, such personnel being exempt from otherwise applicable laws and
regulations attending their employment, except laws that have been or will be enacted for the protection of
employees. School hires both foreign and local teachers as members of its faculty, classifying the same into two:
(1) foreign-hires and (2) local-hires.

The School grants foreign-hires certain benefits not accorded local-hires. Foreign-hires are also paid a salary rate
25% more than local-hires. When negotiations for a new CBA were held on June 1995, petitioner ISAE, a legitimate
labor union and the collective bargaining representative of all faculty members of the School, contested the
difference in salary rates between foreign and local-hires. This issue, as well as the question of whether foreign-
hires should be included in the appropriate bargaining unit, eventually caused a deadlock between the parties.
ISAE filed a notice of strike. Due to the failure to reach a compromise in the NCMB, the matter reached the DOLE
which favored the School. Hence this petition.
 
ISSUE:
Whether the foreign-hires should be included in bargaining unit of local- hires.
 
RULING:
NO. The Constitution, Article XIII, Section 3, specifically provides that labor is entitled to “humane conditions of
work.” These conditions are not restricted to the physical workplace – the factory, the office or the field – but
include as well the manner by which employers treat their employees.

Discrimination, particularly in terms of wages, is frowned upon by the Labor Code. Article 248 declares it an unfair
labor practice for an employer to discriminate in regard to wages in order to encourage or discourage membership
in any labor organization. The Constitution enjoins the State to “protect the rights of workers and promote their
welfare, In Section 18, Article II of the constitution mandates “to afford labor full protection”. The State has the
right and duty to regulate the relations between labor and capital. These relations are not merely contractual but
are so impressed with public interest that labor contracts, collective bargaining agreements included, must yield to
the common good.

However, foreign-hires do not belong to the same bargaining unit as the local-hires.
A bargaining unit is a group of employees of a given employer, comprised of all or less than all of the entire body of
employees, consistent with equity to the employer indicate to be the best suited to serve the reciprocal rights and
duties of the parties under the collective bargaining provisions of the law.

The factors in determining the appropriate collective bargaining unit are (1) the will of the employees (Globe
Doctrine); (2) affinity and unity of the employees’ interest, such as substantial similarity of work and duties, or
similarity of compensation and working conditions (Substantial Mutual Interests Rule); (3) prior collective
bargaining history; and (4) similarity of employment status. The basic test of an asserted bargaining unit’s
acceptability is whether or not it is fundamentally the combination which will best assure to all employees the
exercise of their collective bargaining rights.

In the case at bar, it does not appear that foreign-hires have indicated their intention to be grouped together
with local-hires for purposes of collective bargaining. The collective bargaining history in the School also shows
that these groups were always treated separately. Foreign-hires have limited tenure; local-hires enjoy security of
tenure. Although foreign-hires perform similar functions under the same working conditions as the local-hires,
foreign-hires are accorded certain benefits not granted to local-hires such as housing, transportation, shipping
costs, taxes and home leave travel allowances. These benefits are reasonably related to their status as foreign-
hires, and justify the exclusion of the former from the latter. To include foreign-hires in a bargaining unit with
local-hires would not assure either group the exercise of their respective collective bargaining rights.
WHEREFORE, the petition is GIVEN DUE COURSE. The petition is hereby GRANTED IN PART

16. Distinguish premium pay vs OT pay

OVERTIME WORK, OVERTIME PAY (Article 87, Labor Code)

What are some basic principles on overtime work?

1. Work rendered after normal eight (8) hours of work is called “overtime work.”
2. In computing overtime work, "regular wage" or "basic salary" means "cash" wage only
without deduction for facilities provided by the employer.
3. "Premium pay" means the additional compensation required by law for work performed
within eight (8) hours on non-working days, such as regular holidays, special holidays and rest
days.
4. "Overtime pay" means the additional compensation for work performed beyond eight (8)
hours.
5. Illustrations on how overtime is computed:
a. For overtime work performed on an ordinary day, the overtime pay is plus 25% of
the basic hourly rate.

b. For overtime work performed on a rest day or on a special day, the overtime pay is
plus 30% of the basic hourly rate which includes 30% additional compensation (of his
regular wage) as provided in Article 93 [a] of the Labor Code.

c. For overtime work performed on a rest day which falls on a special day, the
overtime pay is plus 30% of the basic hourly rate which includes 50% additional
compensation (of his regular wage) as provided in Article 93 [c] of the Labor Code.
 d. For overtime work performed on a regular holiday, the overtime pay is plus 30% of
the basic hourly rate which includes 100% additional compensation (of his regular wage)
as provided in Article 94 [b] of the Labor Code.

e. For overtime work performed on a rest day which falls on a regular holiday, the
overtime pay is plus 30% of the basic hourly rate which includes 160% additional
compensation.

What is the distinction between PREMIUM PAY and OVERTIME PAY?

“Premium pay” refers to the additional compensation required by law for work performed
within eight (8) hours on non-working days, such as rest days and regular and special holidays.

“Overtime pay” refers to the additional compensation for work performed beyond eight (8)
hours a day. Every employee who is entitled to premium pay is likewise entitled to the benefit
of overtime pay.

What is built-in overtime pay?

In case the employment contract stipulates that the compensation includes built-in overtime
pay and the same is duly approved by the DOLE, the non-payment by the employer of any
overtime pay for overtime work is justified and valid.

What is emergency overtime work? (ARTICLE 89, LABOR CODE).

a. General rule.
The general rule remains that no employee may be compelled to render overtime work
against his will.

b. Exceptions when employee may be compelled to render overtime work:

1. When the country is at war or when any other national or local emergency has been
declared by the National Assembly or the Chief Executive;

2. When overtime work is necessary to prevent loss of life or property or in case of

imminent danger to public safety due to actual or impending emergency in the locality
caused by serious accident, fire, floods, typhoons, earthquake, epidemic or other
disasters or calamities;

3. When there is urgent work to be performed on machines, installations or equipment,

or in order to avoid serious loss or damage to the employer or some other causes of
similar nature;

4. When the work is necessary to prevent loss or damage to perishable goods;

 5. When the completion or continuation of work started before the 8th hour is
necessary to prevent serious obstruction or prejudice to the business or operations of
the employer; and

6. When overtime work is necessary to avail of favorable weather or environmental

conditions where performance or quality of work is dependent thereon.

May an employee validly refuse to render overtime work under any of the afore-said
circumstances?
No, When an employee refuses to render emergency overtime work under any of the foregoing
conditions, he may be dismissed on the ground of insubordination or willful disobedience of
the lawful order of the employer.

Can overtime pay be waived?

NO. The right to claim overtime pay is not subject to a waiver. Such right is governed by law and
not merely by the agreement of the parties.

17. Definition: bonus

In Philippine Education Co. Inc. (PECO) v. Court of Industrial Relations, 5 the Court explained the

nature of a bonus in the following general terms:

As a rule a bonus is an amount granted and paid to an employee for his industry
loyalty which contributed to the success of the employer's business and made
possible the realization of profits. It is an act of generosity of the employer for
which the employee ought to be thankful and grateful. It is also granted by an
enlightened employer to spur the employee to greater efforts for the success of
the business and realization of bigger profits. . . . . From the legal point of view a
bonus is not and mandable and enforceable obligation. It is so when It is made
part of the wage or salary or compensation. In such a case the latter would be a
fixed amount and the former would be a contingent one dependent upon the
realization of profits. . . . 6 (Emphasis supplied)

In Atok-Big Wedge Mining Co., Inc. v. Atok-Big Wedge Mutual Benefit Association, 7 the Court
amplified:

. . . . Whether or not [a] bonus forms part of waqes depends upon the
circumstances or conditions for its payment. If it is an additional compensation
which the employer promised and agreed to give without any conditions
imposed for its payment, such as success of business or greater production or
output, then it is part of the wage. But if it is paid only if profits are realized or a
certain amount of productivity achieved, it cannot be considered part of
wages. . . . It is also paid on the basis of actual or actual work accomplished. If
 the desired goal of production is not obtained, or the amount of actual work
accomplished, the bonus does not accrue. . . . 8 (Emphasis supplied)

More recently, the non-demandable character of a bonus was stressed by the Court in Traders
Royal Bank v. National Labor Relations Commission: 9

A bonus is a "gratuity or act of liberality of the giver which the recipient has no
right to demand as a matter of right." (Aragon v. Cebu Portland Cement Co., 61
O.G. 4567). "It is something given in addition to what is ordinarily received by or
strictly due the recipient." The granting of a bonus is basically a management
prerogative which cannot be forced upon the employer "who may not be obliged
to assume the onerous burden of granting bonuses or other benefits aside from
the employee's basic salaries or wages . . ." (Kamaya Point Hotel v. NLRC, 177
SCRA 160 [1989]). 10 (Emphasis supplied)

If an employer cannot be compelled to pay a productivity bonus to his employees, it should

follow that such productivity bonus, when given, should not be deemed to fall within the "basic
salary" of employees when the time comes to compute their 13th month pay.

18. Definition: surface bargaining

19. Definition: blue sky bargaining
“Blue-sky bargaining” means making exaggerated or unreasonable proposals. This kind of unfair
labor practice act may only be committed by the bargaining union.
“Surface bargaining” is defined as “going through the motions of negotiating” without any legal
intent to reach an agreement. This kind of unfair labor practice may only be committed by the
employer.

20. Definition: strike- valid requisites

“A strike is the most powerful weapon of workers in their struggle with management in the
course of setting their terms and conditions of employment. Because it is premised on the
concept of economic war between labor and management, it is a weapon that can either
breathe life to or destroy the union and its members, and one that must also necessarily affect
management and its members.
In light of these effects, the decision to declare a strike must be exercised responsibly and must
always rest on rational basis, free from emotionalism, and unswayed by the tempers and
tantrums of hot heads; it must focus on legitimate union interests. To be legitimate, a strike
should not be antithetical to public welfare, and must be pursued within legal bounds. The right
to strike as a means of attaining social justice is never meant to oppress or destroy anyone,
least of all, the employer.
Since strikes affect not only the relationship between labor and management but also the
general peace and progress of the community, the law has provided limitations on the right to
strike. Procedurally, for a strike to be valid, it must comply with Article 26316 of the Labor
Code, which requires that: (a) a notice of strike be filed with the Department of Labor and
Employment (DOLE) 30 days before the intended date thereof, or 15 days in case of unfair labor
practice; (b) a strike vote be approved by a majority of the total union membership in the
bargaining unit concerned, obtained by secret ballot in a meeting called for that purpose; and
(c) a notice be given to the DOLE of the results of the voting at least seven days before the
intended strike.
These requirements are mandatory, and the union’s failure to comply renders the strike illegal.
The 15 to 30-day cooling-off period is designed to afford the parties the opportunity to
amicably resolve the dispute with the assistance of the NCMB conciliator/mediator, while the
seven-day strike ban is intended to give the DOLE an opportunity to verify whether the
projected strike really carries the imprimatur of the majority of the union members.”
(PHIMCO INDUSTRIES, INC. vs. PHIMCO INDUSTRIES LABOR ASSOCIATION (PILA))

21. Definition: assumption of jurisdiction by Sec. of DOLE- certification of case by NLRC

MAY A STRIKE/LOCKOUT BE ENJOINED/PREVENTED BY LEGAL PROCESS?
A. As a general rule, strikes and lockouts validly declared enjoy the protection of law and
cannot be enjoined unless illegal acts are committed in the course of such strikes or lockouts.
Ordinarily, the law vests in the NLRC the authority to issue injunctions to restrain the
commission of illegal acts during strikes and pickets.
In the national interest cases, the certification or assumption of jurisdiction by the Secretary of
Labor over the dispute under Article 263(g) of the Labor Code, as amended, has the effect of
automatically enjoining the intended strike or lockout whether or not a corresponding return to
work order has been issued. The workers shall immediately return to work and the employer
shall immediately resume operations and re-admit all workers under the same terms and
conditions of employment prevailing before the strike.

WHAT IS THE EXTENT OF THE POWER OF THE PRESIDENT OR THE SECRETARY OF LABOR AND
EMPLOYMENT TO ISSUE ASSUMPTION AND CERTIFICATION ORDERS?
A. The power to issue assumption and certification orders is an extraordinary authority
strictly limited to national interest cases and granted to the President or to the Secretary of
Labor, “which can justifiably rest on his own consideration of the exigency of the situation in
relation to the national interest”.
Pursuant to the provisions of Article 263(g) of the Labor Code, as amended, the Secretary of
Labor is vested with the discretionary power to decide not only the question of whether to
assume jurisdiction over a given labor dispute or certify the same to the NLRC, but also the
determination of the industry indispensable to national interest.
The President of the Philippines shall not be precluded from intervening at any time and
assuming jurisdiction over any labor dispute involving industries indispensable to national
interest in order to settle or terminate the same.
Under Article 277(b) of the Labor Code, as amended, the Secretary of the Department of Labor
and Employment may suspend the effects of the termination pending resolution of the dispute
in the event of a prima facie finding by the appropriate official of the Department of Labor and
Employment before whom such dispute is pending that the termination may cause a serious
labor dispute or is in the implementation of a mass lay-off.
WHEN A DISPUTE IS ASSUMED BY THE PRESIDENT OR SECRETARY OF LABOR, OR CERTIFIED TO
THE NLRC FOR COMPULSORY ARBITRATION, MAY A STRIKE OR LOCKOUT BE VALIDLY DECLARED
ON ACCOUNT OF THE SAME DISPUTE?
A. No. The assumption or certification shall have the effect of automatically enjoining the
intended or impending strike or lockout.

22. Definition: bystander

Doctrine of INNOCENT BY-STANDER:
The right to picket is not absolute. The courts can confine the sphere of communication or
demonstration to the disputants and insulate establishments or persons with no industrial
connection or interest to the dispute.

23. Back wages vs. separation pay

“We point out that reinstatement and backwages are two separate reliefs available to an
illegally dismissed employee. The normal consequences of a finding that an employee has been
illegally dismissed are: first, that the employee becomes entitled to reinstatement to his former
position without loss of seniority rights; and second, the payment of backwages covers the
period running from his illegal dismissal up to his actual reinstatement. These two reliefs are
not inconsistent with one another and the labor arbiter can award both simultaneously.
Moreover, the relief of separation pay may be granted in lieu of reinstatement but it cannot be
a substitute for the payment of backwages. In instances where reinstatement is no longer
feasible because of strained relations between the employee and the employer, separation pay
should be granted. In effect, an illegally dismissed employee should be entitled to either
reinstatement – if viable, or separation pay if reinstatement is no longer be viable, plus
backwages in either instance. The rationale for such policy of distinction was vividly explained in
Santos v. NLRC under these terms:
X x x x As the term suggests, separation pay is the amount that an employee receives at the
time of his severance from the service and, as correctly noted by the Solicitor General in his
Comment, is designed to provide the employee with "the wherewithal during the period that
he is looking for another employment." X x x x The grant of separation pay did not redress the
injury that is intended to be relieved by the second remedy of backwages, that is, the loss of
earnings that would have accrued to the dismissed employee during the period between
dismissal and reinstatement. Put a little differently, payment of backwages is a form of relief
that restores the income that was lost by reason of unlawful dismissal; separation pay, in
contrast, is oriented towards the immediate future, the transitional period the dismissed
employee must undergo before locating a replacement job. X x x x”
We emphasize that the basis for the payment of backwages is different from that of the award
of separation pay. Separation pay is granted where reinstatement is no longer advisable
because of strained relations between the employee and the employer. Backwages represent
compensation that should have been earned but were not collected because of the unjust
dismissal. The basis for computing separation pay is usually the length of the employee’s past
service, while that for backwages is the actual period when the employee was unlawfully
prevented from working.
(WENPHIL CORP. vs. ABING)
24. Agency fee vs. Check off of union dues
a. Check-off of agency fee does NOT require the execution by the non-bargaining
union members of individual written authorizations;
b. While such is an indispensable requisite for check-off of union dues and special
assessments from members of the bargaining union
c. Agency fee- neither contractual nor statutory but quasi-contractual; the
bargaining agent which successfully negotiated the CBA with the employer is
given the right to collect a reasonable fee from its non-members in case they
ACCEPT the benefits under the CBA.
i. No law can compel a non-bargaining union member to accept the
benefits provided in the CBA.
ii. Check-off of agency fees is a process or device whereby the employer,
upon agreement with the bargaining union, deducts agency fees from the
wages of non-bargaining union members
1. Right to demand check-off from the moment the non-
bargaining union member accepts and receives the benefits from
the CBA
25. Run-off election
a. A run-off election refers to an election between the labor unions receiving the
two highest number of votes in a certification election or consent election with
three or more choices, where such certification election or consent election
results in none of the three or more choices receiving the majority of the valid
votes cast, provided that the total number of votes for all contending unions is at
least fifty percent of the number of votes cast.
26.When is there a valid election? (with sub questions according to Ma’am)
a. File a petition for certification election by:
i. A legitimate labor organization- independent union; national union or
federation which has already issued a charter certificate to its local
chapter participating in the certification election; or a local chapter which
has been issued a charter certificate by the national union or federation
ii. An employer, when requested by a labor organization to bargain
collectively and its majority status is in doubt
b. In the absence of a CBA duly registered, a petition for certification election may
be filed at any time
c. Requisites for the validity of a petition for certification election:
i. The union should be legitimate which means that it is duly registered and
listed in the registry of legitimate labor unions of the BLR or that its legal
personality has not been revoked or cancelled with finality
ii. In case of organized establishments, the petition for certification election
is filed during (and not before or after) the 60-day freedom period of a
duly registered CBA
 iii. In case of organized establishments, the petition complied with the 25%
written support of the members of the bargaining unit.
iv. The petition is filed not in violation of any of the four bar rules.
d. 2 Kinds of Majorities
i. Number of votes required for the validity of the process of certification
election itself- majority of all eligible voters in the appropriate bargaining
unit must have case their votes
ii. Number of votes required to be certified as the collective bargaining
agent- the union should obtain a majority of the valid votes cast
e. Certification Election in an unorganized establishment- the Med- Arbiter is
required to immediately order the conduct of a certification election upon filing
of a petition for certification election by a legitimate labor organization
f. Certification Election in an organized establishment- Med-Arbiter is required to
automatically order the conduct of a certification election as soon as the
following requisites are met:
i. That a petition questioning the majority status of the incumbent
bargaining agent is filed before the DOLE within the 60-day freedom
period
ii. That such petition is verified
iii. That the petition is supported by the written consent of at least 25% of
all the employees in the bargaining unit
27.How to resolve issues on wage distortion?
a. Wage distortion contemplates a situation where an increase in
prescribed wage rates results in either of the following:
i. Elimination of the quantitative differences in the rates of
wages or salaries; or
ii. Severe contraction of intentional quantitative differences in
wages or salary rates between and among employee groups in
an establishment as to effectively obliterate the distinctions
embodied in such wage structure based on the following
criteria:
1. Skills;
2. Length of service; or
3. Other logical bases of differentiation
b. Wage distortion presupposes a classification of positions and ranking
of these positions at various levels.
c. Element of wage distortion:
i. An existing hierarchy of positions with corresponding salary
rates;
 ii. A significant change in the salary rate of a lower pay class
without a concomitant increase in the salary rate of a higher
one;
iii. The elimination of the distinction in the same region of the
country
d. Formula for RESOLVING wage distortion in the pay scale structures:
i. Minimum Wage/Actual Salary = % x Prescribed Increase=
Distortion Adjustment
28.Who is responsible in determining Minimum Wage?
a. In 2012, the Department of Labor and Employment (DOLE), through the National
Wages and Productivity Commission (NWPC), implemented the two-tiered wage
system (2TWS). The two-tiered wage, as a policy reform measure, is aimed at
minimizing the unintended outcomes of mandated minimum wage, improving
the coverage of the vulnerable sectors, and promoting productivity improvement
and gain-sharing. 
i. HOW DOES THE 2TWS WORK? The two-tiered wage system is a reform
that maintains the mandatory minimum wage (under R.A. 6727 or the
Wage Rationalization Act)  as the first tier; complemented by a voluntary
productivity-based pay scheme as the second tier.
1. TIER 1- Minimum wage rates are determined by factors such as
poverty threshold, prevailing wage rates as determined by the
Labor Force Survey, and socio-economic indicators (i.e. inflation,
employment figures, Gross Regional Domestic Product, among
others), which insures better workers protection.
2. TIER 2- Over and above minimum wage is the voluntary
productivity-based pay, which encourages workers and
enterprises to become more competitive and productive by
rewarding employees supplementary pay based on the quality of
their performance.
ii. HOW IS THE MANDATORY MINIMUM WAGE SET?- There are four factors
that influence the fixing of minimum wage, namely:
1. Needs of workers and their families- Demand for living wage;
Wage adjustment vis-à-vis Consumer Price Index (CPI); Cost of
living and changes therein; Needs of workers and their families;
Improvements in standards of living
2. Capacity to pay- Fair return on capital invested and capacity to
pay of employers; Productivity
3. Comparable wages and incomes- Prevailing wage levels
4. Requirements of economic and social development-Need to
induce industries to invest in the countryside; Effects on
employment generation and family income; Equitable distribution
 of income and wealth along the imperatives of economic social
development
29.Prescriptive period
a. money claims 3 years from the time the cause of action accrues;
b. illegal dismissal 4 years from the time the cause of action accrues;
c. illegal recruitment 5 years; 20 years if cases involving economic
sabotage
d. unfair labor practice 1 year from accrual of such unfair labor
practice;
e. non-remittance of GSIS 20 years
30.Consent election vs. verification election vs voluntary recognition vs run-off
election vs re-run election
a. Consent election- refers to the process of determining through secret ballot the
sole and exclusive representative of the employees in an appropriate bargaining
unit for purposes of collective bargaining and negotiation. It is voluntarily agreed
upon by the parties, with or without the intervention of the DOLE.
i. It’s purpose merely to determine the issue of majority representation of
all the workers in an appropriate collective bargaining unit.
ii. From the very nature of consent election, it is a separate and distinct
process from certification election and has nothing to do with the import
and effect of the latter.
b. Verification election/ Certification election- refers to the process of determining
through secret ballot the sole and exclusive bargaining agent of the employees in
an appropriate bargaining unit for purposes of collective bargaining or
negotiation. A certification election is one which is ordered by the DOLE.
i. Same purpose with consent election
ii. Parties can agree to the conduct of consent election even during the
pendency of certification election. In fact, the Med-Arbiter is required to
determine if the contending labor unions are willing to submit
themselves to a consent election.
c. Voluntary recognition- refers to the process by which a legitimate labor union is
voluntarily recognized by the employer as the exclusive bargaining
representative or agent in a bargaining unit and reported as such with the
Regional Office in accordance with the Rules to Implement in the Labor Code
i. Only in cases where there is only one legitimate labor organization
existing and operating in a bargaining unit
d. Run-off election- an election between the labor unions receiving the two
highest number of votes in a certification election or consent election with three
or more choices, where such certification election or consent election results in
none of the three or more choices receiving the majority of the valid votes cast,
 provided that the total number of votes for all contending unions is at least fifty
percent of the number of votes cast
e. Re-run election- a re-run election may be justified if certain irregularities have
been committed during the conduct of the certification election
i. Ex: disenfranchisement of the voters, lack of secrecy in the voting, fraud
or bribery