INTEGRATION LECTURE 1 o They can be managerial or non-managerial

employees.
Tues o Standard Charter Bank case: To distinguish
Right to Self-Organization classification of an employee must be
CE proceedings supported by proof. The work description
supersedes than the job title.
Thurs - Employees of Cooperative who are also members
Collective Bargaining o Benguet v. Calleja-Ferrer: They are co-
ULP owners. Only employees who are non-
Concerted Actions members can form and join a union and
bargain collectively.
Next week - Employees of Embassies & International
Tues Organizations with diplomatic immunity
Termination of Employment o ICMC v. Ferrer-Calleja: They cannot join
unions for purposes of collective bargaining
Thurs because it would expose them to legal
Dispute Settlement Mechanisms processes along the way. This holds true
even if it is just at the PCE level, a non-
*Slides will be sent. adversarial proceeding.
*Questions can be entertained throughout. - Government Employees
o They can form labor organizations BUT not
1. RIGHT TO SELF ORGANIZATION labor unions under LC. They are governed by
the Civil Service Law.
Protected by the Art. 13, Sec. 3 of 1987 Constitution and Bill of
Rights on Right to Self-organization. Thus, labor laws should be Union Security Clause (USC)
interpreted liberally. GR: The right to join includes the right not to join.
EX: USC under Art. 259(e) –– nothing in this code or other law
From the exercise of this right, they can collectively bargain or shall stop parties from requiring membership in recognized
conduct peaceful concerted actions. SEBA as a condition for employment.
EXE:
Content and Purpose - Employees already members of another union at the
Form, join, or assist labor organizations. time of the signing of CBA.
- Religious Objectors
Purpose o Victoriano v. Elizalde: If your religion forbids
- Collective bargaining (union – EER required) you to join a labor union, you cannot be
- Mutual aid & protection (workers association – EER not forced.
necessary) o Kapatiran sa Meat and Canning v. Ferrer-
Calleja: Although they can’t be forced to join
Who can join a union, they can form their own.
Union – all employees (note: commingling)
Workers Association – ambulant, intermittent and itinerant You can be dismissed for violation of USC but this cannot be
workers, self-employed, rural workers, those without definite done arbitrarily. The following must be complied:
employers (limited purpose) - There is a valid USC.
- Union requests for the application of USC against an
Samahan ng Manggagawa v. Hanjin: The choice on what type employee.
of labor union they will form depends on the workers, not on the - Employer must conduct its separate investigation. He
employer. cannot merely rely on the union’s request.

Ineligible to Join UNIONS Employer is involved because he is essential in the termination

- Managerial employees (explicit under LC)
o Note difference between Managerial
(decision-making authorities in an enterprise)
and Supervisory (recommendatory capacity
but cannot decide).
o Managers are absolutely prohibited to
organize.
o Supervisory has no prohibition to form unions
subject to the limitation of commingling.
o Opinion: They can form and join workers’
association because there is no express
prohibition on such.
- Confidential employees (implied)
o Refers to confidential employees who, in the
regular course of work, handles information
related to labor relations i.e., matters that
could give undue advantage on one or other
party during the collective bargaining
negotiations.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
process of the employee.
Picop v. Tañeca: The mere signing of authorization to file PCE
outside of freedom period is not an act of disloyalty. It cannot be
a ground for termination based on USC.
Union Registration Requirements
- 50-peso registration fee
- Names of officers, their address, principal address of
union, minutes of the organizational meeting and list of
attendees
- Names of members comprising 20% of all the
employees in the BU
- If existing for 1 year or more, copies of AFS
- 4 copies of Constitution and Bylaws, minutes of its
adoption or ratification, and list of attendees
20% requirement need only to exist at the point of registration.
It is not a continuing requirement.
Independent union: Legal personality exists by the time
Certificate of Registration is issued by BLR-DOLE.
Charter local: Legal personality to file PCE exists by the time
Charter Certificate is issued by mother federation.
Chartering
- Issuance of a charter certificate by a duly registered
mother federation (limited personality: for purposes of
filing PCE only)
- To attain independent personality for the purposes of
exercising full legal personality, submit following:
o Names and addresses of chapter’s officers
and principal address of chapter
o Chapter’s constitution and bylaws.
Registration of Mother Unions
- Requirements for union registration
- Proof of affiliation of at least 10 chartered locals, each
SEBA
- Names and addresses of companies where the local
chapter operates, and list of members in each
company
San Miguel Corp v. San Miguel Packaging: TUCs are not
allowed to issue charter certificates under LC.
Rights and Conditions of Membership (Art. 250)
- Prohibition against arbitrary or excessive fees or fines
- Full and detailed financial reports
- Right to vote by secret ballot (must be in good
standing)
o Probationary employee cannot be excluded
from voting.
- Participate in decision or policy-making of union
- Cannot be engaged in subversive activities
- Those convicted of crime involving moral turpitude
cannot be union officers
Pertaining to Finances
- Only authorized persons can collect/disburse
- It must be receipted
- Funds only used for purposes in the CBL
- Income, revenue, expenditure must be recorded and
made part of reports
- Officers are not paid compensation except salaries and
expenses under CBL or authorized by majority of
members
Other Rights and Conditions of Memberships
- Render true and correct books of account
- Books of account are open to inspection
- Special assessments must be authorized by majority of
members (written resolution)
- Check-off must have individual written authorization of
the employees (this requirement only pertains to union
due and does not apply to agency fees)
o Under LC, agency fees can be automatically
deducted for employees who are non-union
members but benefits from the CBA. Written
authorization is not necessary.
- Inform members of CBL, CBA, prevailing labor
relations system, and all their rights and obligation
under existing laws
Consent of 30% requirement is required for complaint for
violation of rights and conditions of membership.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
More…
- No attorney’s fees or negotiations fees may be
imposed on individual members (can be charged
against union funds)
- File complaint with SOLE to inquire into financial
activities of LLO (need written consent of 20% of
membership) under Art. 289 of LC
- USC
Grounds for Cancellation of Registration
- Misrepresentation, false statement, or fraud
o Adoption or ratification of CBL (or
amendments), minutes, attendees
o Election of officers, minutes, and list of voters
▪ Fraud must be grave and compelling
to vitiate consent of members.
- Voluntary dissolution
o Need vote of 2/3 members of union to
dissolve union.
- Violation of rights and conditions of membership
- Failure to submit periodic financial reports
o Heritage Hotel v. SOLE: It is not anymore
ground to cancel.
o It is not an automatic cancellation because
you have to observe the procedural
requirements under the Rules. You are still
given a chance to comply under Rule 15 of
Book 5:
▪ Failure to file for 5 consecutive years
▪ 3 notices rule
▪ Non-responsiveness even after 3
notices
Commingling
Union Level (Art. 256)
Inclusion of employees under BU is not ground for cancellation
but said employees are automatically removed from the list of
membership.
It became confusing because of this Court’s pronouncement.
- Holy Child v. HCCS-TELU-PIGLAS: The same union
can represent two bargaining units (covering both
supervisors and rank-and-file) but they bargain
separately. They are not removed from the union but
they cannot be bargaining together. CBA of
supervisory separate from that of rank-and-file and vice
versa.
o RDQ: 20% membership requirement should
be computed separately for both BU. But
there is no rule or jurisprudence on this issue
yet.
Federation Level (Art. 255)
Coastal v. SOLE, DLSU, Atlas Lithographic presents
complicated rules on when supervisory and rank-and-file can or
cannot be in the same union. Jurisprudences are repealed.
- Under Art. 255, they can already commingle in the
same federation without qualification.
Petition to Cancel Registration
- Not a bar to the filing of PCE
- Does not suspend CE proceedings
- No collateral attacks against legal personality of union.
One must institute a separate action.
Bargaining Unit
A group of employees sharing mutual interest within a given
employer unit comprising of all or less than all of the entire body
of employees in the employer unit or any specific occupational a probationary employee, it does not mean
or geographical grouping within such employer. that you cannot vote as long as you are a
member of the BU 3 months prior within your
Factors to determine Appropriate BU: 6-months probationary period.
- Will of Employees (Globe Doctrine)
- Substantial Mutual Interests Rule – most important) Process for CE
- Prior Collective bargaining history Overview
- Similarity of employment status - Filing of PCE
- Raffle
See cases: SMC v. Laguesma, UP v. Ferrer-Calleja (difference - Notice of Preliminary Conference
of interests between teaching and non-teaching staff), - Consent election? → skip to Pre-Election Conference
Mechanical Department, international School v. Quisumbing - Decision on PCE
(considered collective bargaining history), DLSU v. DLSUEA - RD: Raffle to an EO
(collective bargaining history is not controlling but may be - CE
considered) - Canvass of Votes
- Transmit records to Med-Arbiter
Union and EBR
Union Who can file: LLO
Any labor organization in the private sector organized for Where to file: Med-Arbiter in the RO where establishment is
collective bargaining and for other legitimate purposes. There When to file: Anytime except when there are bar rules:
may be several unions in a BU. - Certification Year Bar (1-Year Bar rule)
o Applies even if “no union” wins.
Exclusive Bargaining Representative (EBR) o If there is a union that won, it must initiate
Legitimate labor union duly recognized or certified as SEBA of collective bargaining within 1 year. Otherwise,
all employees in the BU. Only one EBR in a BU. others can file PCE after unless there is a
Deadlock/Negotiation bars.
2. CERTIFICATION ELECTIONS - Deadlock Bar
- Negotiation Bar
Determination of EBR - Contract Bar
- SEBA certification o Only within last 60-days of the 5-year period
- Consent election of CBA that a union can file PCE.
- Certification election
o Run-off election Notice of Preliminary Conference
o Re-run elections No set number of hearing but should not exceed 15 days from
the preliminary conference.
SEBA Certification (DO 40-1-15)
- SEBA Certification by RD. Only for unorganized Consent Elections
establishment with only one LLO If you do consent elections, you immediately go to pre-election
- If unorganized but more than 1 LLO – RD will refer to conference. No need to undergo (a) decision of PCE and (b)
an election officer for the conduct of a CE. Raffle to an EO.

Voluntary Recognition repealed by DO. Decision of PCE

Consent Elections
- Voluntary agreement to hold elections
- It may be done with or without DOLE intervention
Certification election
- Unorganized v. organized
o Unorganized – no SEBA yet. Once granted
the PCE, it is unappealable.
o Organized – with SEBA. PCE valid only within
freedom period if with CBA. If none, check bar
rules.
- Employer as a mere bystander rule
o EX: When requested to bargain collectively
- Freedom period (for organized establishments with
CBA)
o 5 years from the registration of the CBA.
o You can file PCE within 60-day before
expiration of the 5-year CBA.
- For organized establishments, need 25% support of
the BU for the filing of the PCE.
- Qualified voters: Member of the BU 3 months prior to
filing of the PCE.
o NUHWRAIN v. SOLE: Ruling is already
ineffective because of the express
qualification of a voter. Nonetheless, if you are
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Must be within 10 days from last hearing
Grounds for denying PCE
- Not a LLO
- Not in the roster of LLO in DOLE
- There is a bar.
Appeal on Decision of PCE
Unorganized and appeal is granted: unappealable
Process: File MoAppeal to RD → Transmit records to Osec →
Reply → SOLE Decision → If denied, file R. 65 with CA
Raffle
RD raffles case to an EO
Pre-Election Conference
- Determine list of voters and ground rules
- Within 10 days from receipt of assignment and
completed within 3 days of first hearing
- Post notices 10 days before election in 2 conspicuous
places in the company premises
Certification Election
Not later than 45 days from first pre-election conference
Double Majority Rule
- Majority casts vote
- Majority of those who casted votes voted for the
winning union

Canvass: By EO

Transmittal: Records transmitted to MA and proclaim results

Run-off Elections
- Valid elections (majority casted votes)
- 3 or more choices including no union choice
- Not one of the choices obtained majority of valid votes
cast
- Contending unions received 50% of votes cast
(excluding the “no union” choice)
- No unresolved challenges on votes that will materially
affect the results of the elections

“No union” choice is not an option in a run-off election.

Only top 2 choices can participate in the run-off elections.

Re-run elections (DO 40-I-15)

It can be resorted to when:
- There is a tie
o There are instances when it is possible to
apply either a re-run or run-off.
o Very Personal Opinion by RDQ: Use run-off
elections because it is contained in the Labor
Code. Re-run is not. Plus, in run-off, you
remove “no union” choice so it is more
expedient.
- There is a failure of elections
o This happens when the first majority is not
met.
o Re-run should be conducted within 10 days
from failure of elections.

“No union” can be a choice.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 2
Today
Collective Bargaining Agreement
ULPs and Strikes
3. COLLECTIVE BARGAINING
Recap
Labor organization → LLO → EBR
Right to form labor organization is a constitutionally protected
right so cancellation of registration is strictly construed.
Who can join labor organization and what are the exceptions?
Union v. BU v. EBR
From here, we presume that there is an ERB already. The duty
to collectively bargain only arise when there is a EBR
Duty to Bargain Collectively
Mutual obligation to meet and convene promptly in good faith for
purposes of negotiating… it does not compel any party to agree
to a proposal or to make concession. (Codal)
Jurisdictional Requirements
Kiok Loy v. NLRC: There are 3 jurisdictional requirements before
this duty arises:
- Majority status
- Proof of majority status
- Demand to bargain
Absent one, there is no duty to bargain collectively yet. This is
important because if there is a duty to bargain and the employer
refuses to bargain but one of the jurisdictional requirement is
absent, union cannot file ULP against employer.
Note: Charter Local has limited legal personality if it did not
submit additional requirements. It can only file PCE; it cannot
collectively bargain.
Collective Bargaining Process
Under Art. 261 of LC:
- Written Notice and proposed CBA
o Typically initiated by the union.
- Within 10 days, submit counterproposal by employer
- Conference
o Where the parties sit down to discuss the
terms and conditions of employment and
grievance procedure as well as all other
matters desired to be included in the CBA.
o Because the CBA is a contract between the 2
parties, this is one of the limits of
management prerogatives.
▪ The employer can validly contract
out parts of management
prerogatives as long as it agrees to
such terms.
▪ Similarly, since it is a contract, it can
be validly suspended (Rivera v.
Espiritu)
- NCMB intervention, if necessary
o It can be by request of one or both parties.
o If it intervenes, it has the power to issue
subpoena to require attendance in the
meetings. It is included so as to avoid the
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
occurrence of a deadlock which can result to
a strike or lockout.
No CBA yet v. there is existing CBA
The freedom period attaches to the CBA. If no CBA, contract-
bar rule does not exist. If there is a CBA, you wait for last 60
days for expiration of CBA before filing PCE.
Trajano: In the process of collective bargaining, the PCE does
not stall collective bargaining process.
Ratification and Registration of CBA
You need CBA to be ratified by the members of majority of the
union. Only representatives of the union sit in the negotiating
panel so need to be ratified.
The effect of CBA registration gives rise to the contract-bar rule.
Otherwise, the rule will not be applicable. See Rule 17 of Book
5 of DO-17-03.
Requirements for registration: Posted, Ratified, and submit with
DOLE/BLR.
- Within 24 hours, DOLE/BLR should already act on the
application for registration. If there are missing
requirements, the DOLE will give union extra time to
comply.
5 years v. 3 years
5 years – pertains to the representation aspect and this is the
anchor for the contract-bar rule.
3 years – pertains to all other aspects of CBA except
representation aspect. These provisions are renegotiated every
3 years, absent any express stipulation.
- GR: 3 years, default
- EX: Stipulated otherwise.
When to reckon the 5-year period for representation aspect
If there is an existing CBA then another union wins EBR during
the freedom period, the 5-year representation will begin from its
election.
If there is no CBA yet, then the 5-year representation period will
begin from the registration of the CBA.
For other terms
If you start with a 2-year CBA then it does not state an express
provision for the duration of the new CBA, the presumption is
that you will not change the duration of CBA in case you
renegotiate. The prior 2-year period will still be applicable for the
new CBA.
In essence, the periods can overlap.
The 60-day freedom period is absolute for representation terms.
Under Art. 264 of LC, if you want to renegotiate earlier then that
is okay because 60-day is not absolute in renegotiating for the
other provisions.
- Hold-over principle (Art. 264 LC): It shall be the duty
of the parties to keep the status quo and/or a new
agreement is reached by the parties.
o This is the basis for holding over of economic
provisions and not the basis for extending the
representative status.
o For representative status, there is no express
provision of holding over the EBR status but
there is no other period that the law allows for
the filing of the PCE except during the
 freedom period. This is also in line with the
principle of presumption of majority status.
Thus, presumption is in favor of retaining the
EBR status.
- If freedom period lapse, contending union will wait for
another 5 years before filing another PCE.
Retroactivity Rules
See Art. 265 of LC.
With voluntary Effectivity
agreement
Within 6 mos. Retroacts to first day after expiration of
CBA
After 6 mos. Depends on parties’ agreement
If they don’t agree with the
retroactivity, then the parties can
exercise their rights under this Code
i.e., strike or lockout
Buclot: As long as provision is not less than the minimum
required by law, it is valid.
SONEDCO: This is, in essence, a stray case. If, as a result of
the certification election, a union other than the union which
executed the interim agreement is certified as the exclusive
bargaining representative, then such union-EBR may adopt the
interim CBA or negotiate with management for a new CBA.
After 3 years, you renegotiated so you have new CBA valid for
another 3 years. But during the last year of the 2nd period, there
is a new EBR. During that, you cannot compel the employer to
change the CBA. It is still binding even if it is a new union
administering it.
Retroactivity Rules for Arbitral Awards:
Arbitral Award Effectivity
[a] Award granted after Depends on parties’ agreement
6 mos.
[b] If parties do not Retroacts to the first day after 6
agree in [a] mos. Following the expiration of
CBA
[c] No CBA (in cases Discretion of SOLE
where negotiations (because there is no reckoning
are for the first date for the 6-month period after
CBA] the expiry of a non-existent CBA)
(MERALCO v. Quisumbing)
RDQ Opinion: in reality, arbitral awards do not happen within 6
months from expiry of CBA. But, if ever, safest rule to apply is to
ask the parties to agree when it shall retroact.
Grievance Machinery
- Interpretation and implementation of the CBA
- Interpretation and enforcement of company personnel
policies
Unsettled grievances within 7 calendar days shall be referred to
voluntary arbitration.
- Decision of the VA/PVA may be elevated to the CA
under Rule 43 but only after you file MR within 10 days
from decision of VA/VPA. In case of denial of MR, apply
fresh period rule ––new 15 days to file R. 43.
It is a mandatory provision of the CBA because of it is specified
under the definition of “duty to bargain collectively.”
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
4. ULP and Strikes & Lockouts
Right to Self-Organization
Formation of LO → LLO → EBR → CBA
Typically, ULP and Concerted Activities cases happen when
there is an EBR but it can also happen there because union-
busting can happen during formation of LO. In that case, you
can file ULP but cannot strike because you are not yet an EBR.
ULP
Go through the codal provisions.
- Affects right to self-organization
o Sepalco: The LOC-contracting itself is a
prohibited activity but it does not automatically
result to ULP. You have to prove that
employer engaged LOC with the intent to
circumvent or undermine the right to self-
organization. But LOC per se is not
tantamount to ULP.
- Committed by either:
o Employer; or
o Labor organization
▪ Medoza v. Officers of Manila Union:
To make a case of ULP against LO,
usually, there is a violation of the
rights and conditions of
membership. Here, because of acts
of union officers, an employer-union
member was deprived of the right to
run for office in the union.
- Elements:
o EER; and
▪ Dismissed employees contesting
dismissal cannot be deprived to file
ULP case against employer just on
the basis that they are already
dismissed. In the words of RDQ,
EER, for purposes of filing ULP
cases, can be extended.
o Characterization of ULP in LC. It has to fall
within the circumstances of ULP as provided
by law under Art. 259 of LC.
▪ HSBC v. NLRC: It is still good law.
The list of ULP in LC is not
exhaustive or exclusive. It is
impossible to conceive of all
scenarios that can amount to ULP so
long as an act done can fall under
the characterization that it affects the
right to self-organization. It can be
proven as ULP.
- Aspects of ULP
o Criminal aspect
▪ This can only be initiated after finality
of labor case.
▪ RDQ: If criminal case is filed first, he
thinks it will not be dismissed
automatically but it will just be held in
abeyance pending determination of
labor case. If ever it is dismissed, it
will be without prejudice to refiling
after determination of labor case. If
there is no ULP then you can seek
for the dismissal.
o Labor aspect
- Prescriptive period: 1 year
ULP: Employers
- Interference to the right to self-organization
- Yellow-dog contract
- Contracting-out (interfering with right to self-
organization)
- Company domination of union
- Discrimination
- Violation of duty to bargain collectively
- Paid negotiation
- Violation of CBA
o Gross violation; and
o Involves an economic provision
For violations of CBA that are not gross or does not involve
economic provision, settle the matter with the grievance
machinery of the CBA.
ULP: Labor Organization
- Restraint or coercion by labor organization
- Union-induced discrimination
o Typically, this happens in USC enforcements.
- Refusal to bargain collectively
o This happens when the employer wants to
continue bargaining but union refuses.
- Featherbedding and make-work arrangements
Strikes and Lockouts
It is the right to engage in concerted activities for CB and mutual
aid and protection. Under the Constitution, the freedom of
association includes the right to strike but must be in accordance
with law.
Strike
Temporary stoppage of work by the concerted action of
employees as a result of an industrial or labor dispute.
Note: Based on jurisprudence, slowdowns, mass leaves, sit
downs, attempt to destroy equipment, shaving heads, etc. are
also consider strikes but it must fit into the definition of a strike
i.e., due to an industrial or labor dispute.
- NUHWARAIN v. CA: Shaving heads was considered
strike because they cannot go to work. It is work
stoppage and there was an existing deadlock.
Picket – this is when employees display placards etc. It is
included in free speech guarantee. As long as it is done without
committing prohibited acts, then it is valid. It does not
necessarily result to strike i.e., done outside work hours.
Lockout
Temporary refusal of an employer to furnish work as a result of
an industrial or labor dispute.
Grounds for Strikes and Lockouts
- Collective Bargaining Deadlock (CBD)
- ULP
Note: Violations of CBA that are not considered as ULP: not
gross and not economic provisions)
Note further: Union recognition strikes are not allowed.
Absent a ground for a strike or lockout, it will be ILLEGAL.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Procedural Requirements
All of these are mandatory. Absent one, strike or lockout is
illegal.
- Notice of strike or lockout
- Cooling-off period
o 30 days – CBD
o 15 days – ULP
o None – Union-busting (this is the only
requirement dispensed in the case of union-
busting. Others still need to be complied with.)
- 24-hour notice to NCMB prior to strike/lockout
- Strike or Lockout Vote
o Majority of union membership or majority of
partners/BOD
- 7-day strike or lockout ban
o Reckoned from the submission of strike or
lockout vote.
o For the purpose of determining the validity of
strike or lockout vote by DOLE.
Cooling-off period – period when parties should not do
anything to aggravate situation and possibly settle issues
amicably.
Strike ban – this is for DOLE to verify validity of strike or lockout
vote.
RDQ: Cooling-off period and strike ban can be counted together.
It is not a 15+7 computation.
- This was cited by Azucena from NCMB Manual citing
a case which does not necessarily say it; in any case,
NCMB has no quasi-legislative power to make this
pronouncement and there is none in the DO.
- There is also a case making this pronouncement but
this is not the main issue in the case. In a sense, it is
just an obiter.
- RDQ: Following a liberal interpretation, it can be
counted together. Further, since they have different
purposes, they can overlap essentially.
Illegal Strikes or Lockouts
- No grounds (no CBD/ULP)
- Non-compliance with procedural requirements
- Commission of prohibited activities in Art. 279 of LC:
o No collective bargaining yet
o Violation of an assumption/certification order
o Obstruction of a peaceful picket
o Strikebreaker
o Use of public officer/employee to escort
persons seeking to replace striking works
o Acts of violence, obstruction of ingress/egress
Consequences
- Termination of Employment
o Union officer – mere participation of illegal
strike will be a ground for termination
o Union officer or member – commission of
prohibited acts will be a ground for termination
o Defiance of assumption/certification order is a
ground for termination for both union officer or
member because it is considered a prohibited
activity or an illegal activity per se.
- Penal provision for commission of prohibited activity
under Art. 287: Fine and/or Imprisonment
- Backwages
Improved Offer Balloting
DOLE Effort to settle a strike or lockout usually based on CBD.

NCMB Conducts referendum by secret ballot on improved offer

of employer or reduced offer of union done on or before the 30th
day of the strike/lockout

Needed: Majority vote of union/members or the majority vote

partners/BOD

Upon signing of agreement, employees must return to work and

employer must readmit employees.

Assumption or Certification Orders

To address a strike/lockout (including impending ones) in an
industry indispensable to the national interest, pursuant to the
police power of the State.
- National interest – determined by SOLE
- SOLE has full authority to resolve all matters related to
the labor dispute.
Issuance of prior notice is not necessary.

Effects of Assumption or Certification Orders

Automatic Injunction: It automatically enjoins an impending
strike/lockout

Employees must return to work and employers must readmit

them under same terms. This must be actual reinstatement.

Parties may submit to voluntary arbitration by mutual consent

Limitation to management prerogative

Defiance is an illegal act during the strike or lockout. It can be

construed as abandonment where reinstatement or backwages
cannot be granted.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 3
Today
Termination of Employment
Addressing of Questions
Conversion doctrine – from an economic strike (CBD), you
convert it to a ULP Strike. In this case, you still need to file a new
notice of strike on the ground of ULP. Cooling-off period will be
15 days.
But this cannot go around the other way i.e., ULP-CBD since it
is impractical to file a notice of strike based on a longer cooling-
off period.
DO 147-15 provides the complete set of elements for just and
authorized causes.
If new EBR is elected but there is a registered CBA, no PCE can
be filed even after lapse of 1-year bar rule because there is still
a contract bar rule. Thus, certification year bar rule applies only
when there is no CBA yet.
Grounds for cancellation is already amended.
4. TERMINATION OF EMPLOYMENT
Resignation
Termination at the instance by employee
- Voluntary severance of EER by employee
- Unconditional
- Clear intent to sever EER or relinquish position
Typically, it is held as inconsistent with the filing of an illegal
dismissal complaint.
GR: No separation pay
EX: Employment contract, company policy, or CBA provides
otherwise
Termination BY EMPLOYEE
Just Cause
- Serious insult
- Inhumane and unbearable treatment
- Commission of crime or offense
- Other analogous cause
Effect is not necessarily constructive dismissal but they are
related. They are not entitled to separation pay.
No Just Cause
Serve written notice 1 month in advance
Without notice, employee can be liable for damages
However, as part of management prerogative, employer can
waive the 1-month notice and make it a resignation effective
immediately.
Employer cannot refuse resignation because it is involuntary
servitude.
Constructive Dismissal
No formal dismissal but the employee is placed in a situation
where continued employment becomes unbearable so he has
no choice but to resign. Possibly, because of clear
discrimination, demotion, or etc.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
Note: Management prerogative to transfer employees. It must
be done in good faith and does not defeat security of tenure.
This is appreciated based on totality of circumstances.
Art. 294: Security of Tenure
In regular employment, employer can only be terminated for
just or authorized causes. Otherwise, worker is entitled to
reinstatement and full backwages computed from the time
compensation is withheld until the time of actual reinstatement.
For some non-regular employee, they can enjoy security of
tenure but only for a limited period of time.
Valid Termination BY EMPLOYER
Aspects:
- Substantive due process (for cause)
- Procedural due process
SUBSTANTIVE DUE PROCESS
Just Causes
1. Serious Misconduct
- Misconduct
- Grave and aggravated character
- Related to performance of duties
- Employee becomes unfit to work
There are cases when, although they are not related to the
performance of duties, if the acts affect the work of the
employee, it can still be serious misconduct i.e., use of drugs
affects the brain which affects the work.
2. Willful disobedience of insubordination
- Disobedience or insubordination
- Willful or intentional, characterized by a wrongful or
perverse attitude
- Order was reasonable, lawful, and made known to
employee
- Order relates to employee’s duties
San Sebastian case: Teacher holding 2 teaching positions in
different school. Court says dismissal is not warranted since
there is no showing of a willful or intentional disobedience
characterized by a wrongful or perverse attitude. She did not
neglect performing work in her main employer. She was facing
financial difficulties. Nonetheless, she was suspended for 1
year.
Even though not all elements are met, employee can still be
imposed disciplinary sanction ––just not dismissal
3. Gross and Habitual Neglect of Duties
- Gross and/or Habitual
o Gross – absence of diligence or prudence of
ordinary person
o Habitual – repeated failure to discharge
duties
There is thoughtless disregard of consequences without effort to
avoid the same.
LBC express v. Mateo: Although loss of company property is not
habitual, it was held as gross neglect of duty because of the
substantial loss of money prejudicial to the employer’s interests.
Employee can be validly terminated.
Note: Past infractions
A related past infraction that has been punished cannot be
punished twice because of double jeopardy. Similarly, unrelated
past infraction should not be used to determine the penalty.
Santos: But a related past infraction can be used to determine
appropriate penalty.
4. Fraud or Willful Breach of Trust
- Act, omission, concealment
- Involves a breach of trust, legal duty, or confidence
justly reposed
- Committed against the employer (or representative)
- Connected with employee’s work
5. Loss of Confidence
- Act, omission, or concealment
- Loss of Trust and confidence is not simulated
- Justifies loss of trust and confidence of the employer to
the employee
- Not used as a subterfuge for causes for improper,
illegal, or unjustified causes
- Employee holds a position of trust and confidence or
managerial position
- Genuine and not a mere afterthought
Employees covered:
- Managerial employee
- Confidential employee – those holding delicate matters
i.e., property, assets, or money of employer e.g., driver
or helper
6. Commission of crime or offense
- Act or omission punishable by law
- Committed against employer (family/representative)
Filing of criminal case and/or conviction are not necessary to
terminate employee. Similarly, termination have no bearing on
the status of criminal case.
Employer must conduct a separate investigation and cannot rely
on the findings of the police, prosecutor, or judge. They
determine probable cause, employee does not.
7. Analogous
- Act or omission similar to just cases
- It must be willful/voluntary on the part of employee
This does not necessarily have to be stipulated in the company
policy or manual because it is impossible to conceive all
circumstances that can happen.
You can determine the scenario vis-à-vis the just causes
provided by LC.
Authorized Causes
1. Installation of Labor-Saving Devices
- Introduction of machinery, equipment, or devices
- Donee in good faith
- Purpose: to save cost, enhance efficiency, other
justifiable
- No other option
- Fair and reasonable criteria
Example: Automation
2. Redundancy
- Superfluous positions or services
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
- Positions or services in excess of what is reasonably
demanded by the actual requirements of an enterprise
- Good faith
- Fair and reasonable criteria
- Adequate proof of redundancy i.e., staffing patterns,
organizational charts, job description, etc.
In proving redundancy, you have to have studies showing the
workforce needed given the output required.
It is done as a last resort.
3. Retrenchment
- Reasonably necessary and likely to prevent losses
- Substantial or reasonably imminent losses proven by
sufficient and convincing evidence i.e., AFS for a span
of couple of years
- Good faith
- Fair and reasonable criteria
It is done as a last resort.
Fair and reasonable criteria i.e., seniority, age, fitness, years of
service etc.
- Cases seem to imply that seniority is an important
factor in determining fair and reasonable criteria but
this is not an absolute rule. Other factors should also
be considered. However, if all things are held equal, put
primacy on the seniority.
If employer contracts-out services that is not a core business of
the employee, that is legal and it can be determined pursuant to
management prerogative. However, if it involves services that
are part of principal business of employee, it is invalid for being
LOC.
4. Closure or cessation of operations
- Decision to cease operations
- Done in good faith
- No other option except to close or cease operations
It may or may not be due to substantial business losses.
If due to business losses, you can prove this through the
elements of retrenchment on business losses.
5. Disease
- Employee suffering from disease
- Continued employment is prohibited by law or
prejudicial to the employee as well as health of co-
employees
- Certification by a competent public health authority
Separation pay
Installation of labor-saving devices and redundancy: 1 month or
1 month for every year of service
Retrenchment, disease, closure (not due to business losses): 1
month or ½ month for every year of service
Closure due to business losses: no separation pay
Other causes of termination
- Illegal strikes
- Violation of assumption/certification orders
- Violation of USC
 PROCEDURAL DUE PROCESS Reinstatement pending appeal
Just Causes If order by LA – self-executory
Twin-Notice Rule: Backwages
- Notice to show cause; and It includes wages, allowances, and other benefits
- termination notice
Note: Statutory benefits and CBA benefits.
Ample opportunity to be heard - These are included as well as wage increases by virtue
- GR: Formal hearing is not required. of wage orders. It presupposes that the position of
- EX: Company practice/rule OR upon request of employee is covered by the wage order.
employee - For CBA benefits, they have to have accrued already
at the time of illegal dismissal.
Deoferio v. Intel: The twin-notice rule is also applicable to
disease as a ground for termination. When the employee is dismissed, employer cannot deduct
earning from other sources.
Authorized Causes
- 1-month notice to employee Computation: From time of illegal dismissal or withholding of
- 1-month notice to DOLE wages up to reinstatement or finality of decision or reversal of
decision by a higher tribunal.
It is up to the employer to prove the validity of such authorized - General wages not included
cause. - Allowances and benefits, to be included, must have
accrued prior to dismissal
Employee can file dismissal case and ask for reinstatement if it
feels there is unfair criteria in determining who are the You exclude the period when there was compensation given i.e.,
employees to be terminated. But employee is not entitled to be actual/payroll reinstatement during LA-NLRC and there was
heard. wages given.

1-month notice to employer is for the chance to look for other Nature of backwages
employment Tomas Claudio: Backwages are a restoration of income lost at
the time of illegal dismissal. It is not a private compensation or
GR: During that 1 month, employee should report to work damages.
EX: PNCC Skyway –––You do not have to require employee to
go to work but you must pay them salaries for that time. Note: Backwages are different from separation pay (distinct
reliefs)
Validity of Dismissal
SDP PDP If dismissal is valid, generally, no backwages unless for financial
Yes Yes Valid dismissal assistance or social justice measures.
No No Illegal dismissal
No Yes Illegal dismissal For probationary employees
Yes No Valid dismissal, but employer must It will only be awarded until 6 months, during period of
pay nominal damages probationary employment.
(Agabon, Jaka cases)
Related matters
50k – authorized
30k – just Temporary Suspension of Operations or Floating Status
But these figures are not absolute. - It cannot exceed 6 months
- Within 6 months, employer must give a new
Reliefs for Illegal Dismissal assignment, which must be particular or specific
Under Art. 279: Remedies for illegally terminated employee is
reinstatement and full backwages. Ibon v. Genghis Khan: If 6-months lapse, you can be sued for
constructive dismissal. Thus, within such period, you must
Reinstatement assign employee to a new assignment to a particular client. It
- same position prior dismissal or at least an equivalent cannot be a general report to work order.
position if the prior positon is filled or remove
Note: 3 months in D.O. 174-17 (Sec. 13) – those covered under
Type of reinstatement, at the option of the employer: this rule is seen in (Department Circular…)
- Actual
- Payroll Preventive Suspension
When employee is under investigation for a serious offense and
Typically, payroll reinstatement happens during the pendency of his presence poses a serious or imminent threat to the life or
case. Once reinstatement is final, employee must be actually property of the employer or his co-workers
reinstated.
Purpose: To prevent harm to the business or other employees
Separation pay in lieu of reinstatement
This presupposes the application of doctrine of strained GR: It cannot exceed 30 days
relations. Mere filing of cases does not mean there is strained EX: It may be extended in good faith but must be with pay.
relations. It must be duly invoked and proven in court.

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

Suspension
Form of penalty. This is part of management prerogative to
discipline employees. Usually, this is applied when not all
elements for just causes are present.

Must observe due process: (a) notice of show cause, (b)

opportunity to be heard, and (c) notice of termination

It can exceed 30 days depending on the gravity of offense.

Retirement
Voluntary agreement between employer and employee about
the severance of EE upon reaching a certain age.

GR: As expressly agreed by parties

EX: Absence of agreement
- Optional retirement age – 60 years old
- Compulsory retirement age – 65 years old

Retirement pay
GR: CBA or other argument
EX: If no CBA or it provides for lower benefits, follow RA 7641
i.e., 1/2 month (22.5 days) for every year of service, provided
employee meets the 5-year service requirement

It is on top of other benefits i.e., SSS or PAGIBIG

RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES

 INTEGRATION LECTURE 4 You go to Single-Entry Assistance Desk Officer (SEADO). You
can seek for full or partial settlement. If you are able to fully settle
Questions an agreement, then it can no longer prosper as a case. If there
If illegally dismissed employee is ordered reinstatement, the is a partial settlement, SEADO will make a report. It can only be
newly-hired employee can keep his position. Notwithstanding, settled when the full claim is settled.
illegally dismissed employee can be reinstated to another
position as long as it is an equal position. Redundancy can also The decision reached by SEnA is binding to all parties, DOLE
be proven but comply with requisites. offices, and attached agencies unless contrary to law, morals,
public policy, etc.
LA – ID
NLRC – ID Under Sec. 3 of DO 151-16
CA – ID GR: Applies to all labor and employment issues.
SC – LD EX: Issues not covered by SEnA ––
- Notices of strike/lockout or preventive mediation cases
From LA-NLRC, reinstatement is self-executory. For backwages under NCMB
aspect, you can seek for execution on the backwages. It is from - Matters under the grievance machinery
the time compensation is illegally withheld until decision is finally - Applications for exemption from Wage Orders (it is
reversed with SC. But the difference lies in the interest. under the NWPC)
- Violations involving AEP, PEA license, WCP,
LA – illegal contracting arrangements, PRC licenses, TESDA
NLRC – legal accreditation, other licenses issued by DOLE or its
CA – legal attached agencies
SC – legal - Occupation Safety and Health Standards (OSH
Backwages from beginning until SC decision. Standards) involving imminent danger situation,
dangerous occurrences, and absence of PPE
LA – illegal
NLRC – legal POEA issues not covered under SEnA
CA – illegal (final) - Violations of POEA Rules and Regulations
Backwages from beginning until SC decision. - Serious offenses and those penalized by license
cancellation
LA – illegal - Disciplinary actions against migrant workers (penalty:
NLRC – legal delisting from POEA registry at first offense)
CA – illegal - Complaints initiated by POEA
SC – legal - Complaints against an agency whose license is
Backwages is deleted. revoked, cancelled, expired, or otherwise delisted
- Complaints categorized by POEA as not subject to
LA – illegal SEnA
NLRC – illegal
CA – illegal Jurisdiction
SC – legal
You are reinstated in LA so you keep getting wages until CA but SOLE/RD
employer cannot ask for refund even if the ultimate decision of Original Jurisdiction
SC was a legal dismissal. - Visitorial and enforcement powers (labor standards
provisions)
On the part of employee: If from lower tribunal until SC, it was - Visitorial power (examination of account of unions)
decided that there was illegal dismissal but no reinstatement - Money claims arising out of EER (no claim for
made, backwages is given in full including interest. reinstatement, not exceeding 5k)
- Union registration
On the part of employer: LA-NLRC reinstatement must be - OSH violations
complied. All else, if it was ultimately decided that the decision - Matters pertaining to recruitment and placement for
was legal, then no backwages should be granted to the local employment
employee.
Money Claims
The computation of backwages continues. The nature of the Under Art. 129, if there is no claim for reinstatement,
monetary consequences of an illegal dismissal case, such - money claim does not exceed 5k = RD
consequences adding up. If you continue to appeal it, - money claim exceeds 5k – LA
backwages still accumulate notwithstanding the non-finality of
the decision. If there is reinstatement, regardless of amount = LA

5. DISPUTE SETTLEMENT Visitorial and Enforcement Powers v-v Money Claims

Single-Entry Approach (RA 10396 – 1-paged law)
Preferential use of voluntary mode of settling disputes including
conciliation-mediation.
30 days of mandatory conciliation-mediation under SEnA.
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
People’s Broadcasting: SOLE can use visitorial and
enforcement power to determine if there is EER, regardless of
amount pursuant to Art. 128 and not Art. 129.
There is yet a determination for any labor violations, if the DOLE
exercises this power. Thus, you are not yet sure if there is a
money claim. There only comes a controversy when after the
exercise of such power, SOLE orders more than 5k money
claim. However, under Art. 128, regardless of the amount
involved, jurisdiction is still lodged with SOLE. According to
Bombo Radyo case, it still holds true when it is initiated by a
complaint or motu propio.
Determination of EER
GR: It is by LA/NLRC
EX: SOLE – exercise of visitorial and enforcement powers under
Art. 128 to the exclusion of the courts. It is reviewable by the CA
via Rule 65.
The determination of EER under Art. 128 is to be exercised
independently from the determination conducted by LA/NLRC.
Primarily, it is a function of LA/NLRC. But under Bombo Radyo,
SOLE can determine EER to give effect to its visitorial and
enforcement power under Art. 128. The standard to be used is
the 4-fold test.
BLR
Original Jurisdiction
- Inter and intra union disputes
- Registration of federations and their chartered locals
which includes merger, consolidation, change of name,
affiliation, etc.
- Examination of accounts of federations
- Registration and de-registration of multi-employer
CBAs
Appellate Jurisdiction
- Decision of RD on union-related matters (registration
examination of books)
- Decision of MA in intra-union disputes
Med-Arbiter
- PCE i.e., consent, run-off, or re-run
- Request for SEBA Certification (also by RD)
o If there are other LLOs in the employer unit, it
shall be directed to the Med-Arbiter for CE.
SOLE
- Appellate jurisdiction
o Visitorial and enforcement powers exercised
by RD
o BLR decisions (in the exercise of original
jurisdiction)
o Med-Arbiter’s decisions in CE cases
- Work stoppage orders for non-compliance with OSH
standards
- Issuance of assumption orders (national interest
cases)
Labor Arbiter
- ULP
- Termination disputes
- Money claims arising out of EER with claim for
reinstatement
- Damages arising out of EER
- Cases arising out of prohibited activities during strikes
- Other money claims arising from EER exceeding 5k
- Cases arising out of non-compliance with compromise
agreements
- Money claims of OFWs
- Wage distortion cases in unorganized establishment
NLRC
- Appellate jurisdiction
o Decision of LA
o Decision of RD in money claims
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES
- Injunction
- Contempt
- Cases certified by SOLE for compulsory arbitration
(national interest cases)
Voluntary Arbitration
- Wage distortion in organized establishment
- Unresolved grievances (after 7 days)
- Other disputes agreed upon by the parties (even after
SOLE assumption)
Manila Pavilion v. Delada: VA can rule on all related issues
which are labor-related. For example, case is for illegal
dismissal. Normally, it is under LA. But if parties agree to submit
it to VA, then it shall be so. Thus, VA can also rule on the
entitlement of wages related to the illegal dismissal complaint.
-----Most importantly, look at Cause of Action-----
Diokno: Violation pertains to the interpretation of constitution
and bylaws so it’s not a matter under SOLE or LA but under BLR.
Endophil v. Adviento: It filed case for damages for the
negligence of the employer in not providing a healthy and
conducive working environment. It seems, at first glance, it is
concerning OSH standards which normally falls under SOLE (if
you are talking about compliance of such standards). Similarly,
if because of non-compliance, worker got sick, then it can be
filed with LA for damages arising out of EER due to non-
compliance. However, in this case, employee got sick because
of employer’s negligence. It takes it out of the jurisdiction of LA
because it now becomes a torts claim. It has become a civil case
to be filed with RTC.
Malayan v. Alibudbud: Employee refused to return Company-
issued car so employer filed a replevin case. Court said that
while it is related to EER because the car’s issuance is by virtue
of employment, asking for replevin has become a civil case. It is
grounded on a debtor-creditor relationship and not EER. This
falls with trial courts.
PAL v. PALEA: [Claim for damages that arose from an illegal
strike which normally falls under LA] Here, even if it arose under
an illegal strike, it is under the SOLE because there was already
an assumption order issued. Thus, all matters related to the
labor dispute can be decided by SOLE.
Remedies
Appeal Bond
Necessary to perfect an appeal.
It is equal to the amount of monetary award.
Art. 224 requires that when you appeal from LA-NLRC, the
mode of perfecting such is by filing an (a) appeal fee, (b) appeal
bond, and (c) memorandum of appeal.
Motion to Reduce Bond
Motion to Reduce Bond will toll the appeal period if a
reasonable amount (10%) of the bond is posted. The Rules did
not provide for what is “reasonable” but jurisprudence did.
- If NLRC grants the Motion, it will proceed to consider
the appeal on its merits.
- If NLRC denies the Motion or it requires you to post an
additional bond, you are given a fresh period of 10-day
to post the additional bond required. Otherwise, case
is dismissed for non-perfection of appeal.
Mcburnie v. Ganzon: 10% of the bond is a reasonable amount Note: If ground for termination is not proven, the quitclaim is
to toll the appeal period. It is the minimum bond to be posted to invalid.
toll the appeal period BUT it does not perfect the appeal.
Attorney’s Fees
Sara Lee v. Macatlang: 10% is not the minimum bond to perfect 2 kinds:
an appeal but it is just the reasonable amount to toll the appeal - Compensation for legal services (to be fixed by
period. agreement of the parties)
- Damages (Art. 111 of LC – 10% threshold imposed by
Note: This is only for cases decided by LA appealed to NLRC court to the losing party)
but it does not apply to decisions by RD appealed to SOLE.
Appellant must file the FULL AMOUNT of the bond. No reduction
is allowed.

Rule 65 Petition – CA
Original Petition brought before the CA (not SC due to hierarchy
of courts; see: St. Martin Funeral Homes).

MR is indispensable
Philtranco: Even if the lower agency does not have a rule for
filing of MR, you file it anyway. Court held that SOLE’s “noting”
of the MR is tantamount to a denial. Thus, Rule 65 is allowed.

PIGLAS: There are exceptions to require an MR i.e., pure

questions of law, public interest, etc. However, these exceptions
need to be proven.

Rule 43 Petition – CA
VA/PVA exercises quasi-judicial powers.

Guagua National Colleges v. CA: Summary of the Rules ––

- From decision of VA/PVA – file an MR within 10 days
from receipt of decision.
- File Rule 43 with CA within 15 days from receipt of
denial of MR.

Rule 45 Petition – SC
From the decision of the CA, file within 15 days from receipt of
decision. Only questions of Law.

Updating of Monetary Awards

Not a violation of the principle of immutability of judgments.

The illegality of the dismissal remains. Only the monetary

consequences of the illegal dismissal judgment are recomputed.

Nature of illegal dismissal cases

Reliefs continue to add up until full satisfaction.

Case is remanded to LA who will compute the final figures for

the award.

Prescriptive Period
Money claims (LC) – 3 years
Illegal dismissal and money claims (CC-QD) – 4 years

Withdrawal of action
Montero v. Times: It is as though no case was filed. The
prescriptive period is not tolled. It is counted from the accrual of
the cause of action.

Quitclaims in Labor Cases

Does not constitute estoppel to file an illegal dismissal cases

When quitclaims can be set aside

- Use of deceit or fraud
- Unreasonable amount
- Terms are contrary to law, public morals, etc and
prejudicial to the rights of third persons
RDQ LABOR INTEGRATION LECTURE | REYNA DE LOS REYES