CHAPTER I  Such as those provided in Article 3 of the

Labor Code, Article II, Section 18 and

GENERAL PROVISIONS Article XIII, Section 3 of the 1987
Constitution
ART 1. NAME OF THE DECREE
2006 BAR EXAMINATION- What is the purpose of labor
Art.1 Name of Decree- This Decree shall be
legislation?
known as the Labor Code of the Philippines
1. HISTORY OF LABOR CODE 6. GENERAL CLASSIFICATIONS OF LABOR
 The drafting of the Labor Code was one of STATUTES
the major objectives of the Marcos a. Labor Standards Law- refers to the
administration. minimum requirements prescribed by
 On November 1, 1974, the Labor Code existing laws, rules and regulations and
took effect after it had undergone final other issuances relating to wages, hours of
revision. work, cost of living allowances and other
o It did not only codify the various monetary and welfare benefits, including
laws enacted from the those set by occupational, safety and health
Commonwealth period up to 1973, standards.
it also outlined the expanded task b. Social Security Law- those laws that
of the DOLE in the labor market in provide for income security and/or medical
a holistic and integrated manner. care for contingencies such as sickness,
2. LABOR STANDARDS PROVISIONS IN THE maternity, invalidity, old age, death of a
LABOR CODE bread winner, unemployment, emergency
a. Book one- Pre employment expenses, and employment injuries
b. Book two- Human Resources Development c. Labor Relations Law- defines the status,
Program rights and duties, and the institutional
c. Book Three- Conditions of Employment mechanisms, that govern the individual and
d. Book Four- Healthy, Safety and Social collective interactions of employers,
Welfare Benefits employees or their representatives
3. LABOR RELATIONS PROVISIONS IN THE LABOR
CODE 2004 BAR EXAMINATION- Distinguish clearly but briefly
a. Book Five- Labor Relations between Social Security and Union Security
b. Book Six- Post-Employment
c. Book Seven- Transitory and Final 2003 BAR EXAMINATION- How do the provisions of the law
Provisions on labor relations interrelate, if at all, with the provisions
4. LABOR LAW DEFINITION pertaining to labor standards?
 Labor law- is the body of rules and
regulations enacted or issued by the State 1997 BAR EXAMINATION- Differentiate labor standards law
to promote the welfare of employees and from labor relations law. Are the two mutually exclusive?
regulate their relations with their
employers. It also includes all judicial 1995 BAR EXAMINATION- What are the 3 general
decisions interpreting said laws, rules and classifications of labor statutes? Describe and give an
regulations example of each classification.
5. LABOR LEGISLATION VS SOCIAL LEGISLATION
7. POLICE POWER AS BASIS FOR LABOR AND
SOCIAL LEGISLATION
 The police power of the State is a power
LABOR LEGISLATION SOCIAL LEGISLATION
coextensive with self-protection, and is not
-consists of statutes, -include laws that
regulations and provide particular kinds aptly termed, “the law of overruling
jurisprudence of protection or benefits necessity.” xxx provided the purposes of the
governing the to society or segments law do not go beyond the great principles
relations between thereof in furtherance of that mean security for the public welfare or
capital and labor, by social justice. do not arbitrarily interfere with the right of
providing for the individual (Rubi vs Provincial Board of
employment standards
Mindoro)
and a legal framework
for negotiating, adjusting  No right is absolute, and the proper
and administering those regulation of a profession, calling, business
standards and other or trade has always been upheld as a
incidents of employment. legitimate subject of a valid exercise of the
1995 BAR EXAM- Is there any distinction between labor police power by the state particularly when
legislation and social legislation? their conduct affects either the execution of
legitimate governmental functions, the
a. PURPOSE OF LABOR LEGISLATION- to preservation of the State, the public health
implement the state policies in the Labor and welfare and public morals.
Code and the Constitution.
  According to the maxim, sic utere tuo ut
alienum non laedas, it must of course be
within the legitimate range of legislative
action to define the mode and manner in
which every one may so use his own
property so as not to pose injury to himself
or others.
8. BASIS OF LABOR LAWS
a. CONSTITUTIONAL PROVISIONS- The
Constitution mandates the protection of
labor and the promotion of the welfare.
i. The State shall promote a just and
dynamic social order that will ensure the
prosperity and independence of the
nation and free the people from poverty
through policies that provide adequate
social services, promote full
employment, a rising standard of living,
and an improved quality of life for all
(Art. II, Section 9)
ii. The State shall promote social justice in
all phases of national development (Art.
II, Section 10)
iii. The State values the dignity of every
human person and guarantees full
respect for human rights. (Art. II,
Section 11)
iv. The State recognizes the vital role of the
youth in nation-building and shall
promote and protect their physical,
moral, spiritual, intellectual, and social
well-being. It shall inculcate in the youth
patriotism and nationalism, and
encourage their involvement in public
and civic affairs. (Art. II, Section 13)
v. The State recognizes the role of women
in nation-building, and shall ensure the
fundamental equality before the law of
women and men. (Art. II, Section 14)
vi. The State affirms labor as a primary
social economic force. It shall protect the
rights of workers and promote their
welfare. (Art. II, Section 18)
vii. The State recognizes the indispensable
role of the private sector, encourages
private enterprise, and provides
incentives to needed investments.
(Art.II, Section 20)
viii. No person shall be deprived of life,
liberty, or property without due process
of law, nor shall any person be denied
the equal protection of the laws. (Art.
III, Section 1)
ix. No law shall be passed abridging the
freedom of speech, of expression, or of
the press, or the right of the people
peaceably to assemble and petition the
government for redress of grievances.
(Art. III, Section 4)
x. The right of the people, including those
employed in the public and private
sectors, to form unions, associations, or
societies for purposes not contrary to
law shall not be abridged. (Art. III,
Section 8)
xi. The civil service embraces all branches,
subdivisions, instrumentalities, and
agencies of the Government, including
GOCC with original charters. (Art. IX-B,
Section 2 [1])
xii. No officer or employee of the civil
service shall be removed or suspended
EXCEPT for cause provided by law. (Art.
IX-B, Section 2 [3])
xiii. The right to self-organization shall not
be denied to government employees.
(Art. IX-B, Section 2[5])
xiv. Temporary employees of the
Government shall be given such
protection as may be provided by law.
(Art. IX-B, Section 2 [6])
xv. The Congress shall provide for the
standardization of compensation of
government officials and employees,
including those in GOCC with original
charters, taking into account the nature
of the responsibilities pertaining to, and
the qualifications required for, their
positions. (Art. IX-B Section 5)
xvi. The use of property bears a social
function, and all economic agents shall
contribute to the common good.
Individuals and private groups, including
corporations, cooperatives, and similar
collective organizations, shall have the
right to own, establishes, and operate
economic enterprises, subject to the
duty of the State to promote distributive
justice and to intervene when the
common good so demands. (Art. XII,
Section 6)
xvii. The State shall promote the preferential
use of Filipino labor, domestic materials
and locally produced goods, and adopt
measures that help make them
competitive (Art. XII, Section 12)
xviii. The sustained development of a
reservoir of national talents consisting of
Filipino scientists, entrepreneurs,
professionals, managers, high-level
technical manpower and skilled workers
and craftsmen in all fields shall be
promoted by the State. The State shall
encourage appropriate technology and
regulate its transfer for the national
benefit.
The practice of all professions in the
Philippines shall be limited to Filipino
citizens, save in cases prescribed by law.
(Art. XII, Section 14)
xix. The Congress shall not, EXCEPT by
general law, provide for the formation,
organization, or regulation of private
corporations. GOCCs may be created or
established by special charters in the
 interest of the common good and subject
to the test of economic viability. (Art.
XII, Section 16)
xx. The Congress shall give highest priority
to the enactment of measures that
protect and enhance the right of all the
people to human dignity, reduce social,
economic, and political inequalities, and
remove cultural inequities by equitably
diffusing wealth and political power for
the common good.
To this end, the State shall regulate the
acquisition, ownership, use, and
disposition of property and its
increments. (Art. XIII, Section 1)
xxi. The promotion of social justice shall
include the commitment to create
economic opportunities based on
freedom of initiative and self-reliance.
(Art. XIII, Section 2)
xxii. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full
employment and equality of
employment opportunities for all.
It shall guarantee the rights of workers
to self-organization, collective
bargaining and negotiations, and
peaceful concerted activities, including
the right to strike in accordance with
law. They shall be entitled to security of
tenure, humane conditions of work, and
a living wage. They shall also participate
in policy and decision-making processes
affecting their rights and benefits as
may be provided by law.
The State shall promote the principle of
shared responsibility between workers
and employers and the preferential use
of voluntary modes in settling disputes,
including conciliation, and shall enforce
their mutual compliance therewith to
foster industrial peace.
The State shall regulate the relations
between workers and employers,
recognizing the right of labor to its just
share in the fruits of production and the
right of enterprises to reasonable ROI,
and to expansion and growth. (Art. XIII,
Section 3)
xxiii. The State shall protect working women
by providing safe and healthful working
conditions, taking into account their
maternal functions, and such facilities
and opportunities that will enhance their
welfare and enable them to realize their
full potential in the service of the nation.
(Art. XIII, Section 14)
2012 BAR EXAMINATION- Which is not a constitutional
right of the worker? A. The right to engage in peaceful
concerted activities; B) The right to enjoy security of tenure;
C) The right to return on investment; D) The right to receive
a living wage.
2011 BAR EXAMINATION- For labor, the Constitutionally
adopted policy of promoting social justice in all phases of
national development means A) The nationalization of the
tools of production; B) The periodic examination of laws for
the common good; C) The humanization of laws and
equalization of economic forces; and D) The revision of laws
to generate greater employment.
2009 BAR EXAMINATION- Enumerate at least four policies
enshrined in Section 3, Article XIII of the Constitution that are
not covered by Article 3 of the Labor Code on the declaration
of basic policy.
b. CIVIL CODE PROVISIONS
i. The relations between capital and labor are not
merely contractual. They are so impressed with
public interest that labor contracts must yield to the
common good. Therefore, such contracts are subject
to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar
subjects. (Art. 1700)
ii. Neither capital nor labor shall act oppressively
against the other, or impair the interest or
convenience of the public. (Art. 1701)
iii. In case of doubt, all labor legislation and all labor
contracts shall be construed in favor of the safety
and decent living for the laborer. (Art. 1702)
iv. No contract which practically amounts to involuntary
servitude, under any guise whatsoever, shall be
valid. (Art. 1703)
v. In collective bargaining, the labor union or members
of the board or committee signing the contract shall
be liable for non-fulfillment thereof. (Art. 1704)
vi. The laborer’s wages shall be paid in legal currency.
(Art. 1705)
vii. Withholding of the wages, EXCEPT for a debt due,
shall not be made by the employer. (Art. 1706)
viii. The laborer’s wages shall be a lien on the goods
manufactures or the work done. (Art. 1707)
ix. The laborer’s wages shall not be subject to execution
or attachment, EXCEPT for debts incurred for food,
shelter, clothing and medical attendance. (Art. 1708)
x. The employer shall neither seize nor retain any tool
or other articles belonging to the laborer. (Art. 1709)
xi. Dismissal of laborers shall be subject to the
supervision of the Government, under special laws.
(Art. 1710)
xii. Owners of enterprises and other employees are
obliged to pay compensation for the death of or
injuries to their laborers, workmen, mechanics or
other employees, even though the event may have
been purely accidental or entirely due to a fortuitous
cause, if the death or personal injury arose out of
and in the course of employment. The employer is
also liable for compensation if the employee
contracts any illness or disease caused by such
employment or as the result of the nature of the
 employment. If the mishap was due to the
employee’s own negligence, or voluntary act, or
drunkenness, the employer shall not be liable for
compensation. If a fellow worker’s intentional or
malicious act is the only cause of the death or injury,
the employer shall not be answerable, UNLESS it
should be shown that the latter did not exercise due
diligence in the selection or supervision of the
plaintiff’s fellow worker. (Art. 1712)
9. CONSTITUTIONAL PRINCIPLES ON LABOR
a. CONSTITUTIONAL DUE PROCESS AND
STATUTORY DUE PROCESS
 The relevant provision on due process can be found
in Art. III, Section 1 of the 1987 Constitution.
The distinction between due process clause under the
Constitution and the Labor Code was discussed in Agabon vs
NLRC
CONSTITUTIONAL DUE STATUTORY DUE PROCESS
PROCESS
-protects the individual from -found in the LC and IRR
the government and assures protects employees from
him of his rights in criminal, being unjustly terminated
civil or administrative without just cause after
proceedings notice and hearing
b. VIOLATION OF NOTICE REQUIREMENT
IS NOT A DENIAL OF CONSTITUTIONAL
DUE PROCESS
 Prior to Agabon doctrine, the SC ruled in Serrano
(2000) that violation by employer of the notice
requirement cannot be considered a denial of due
process under the Constitution.
Reasons:
1. Due Process Clause in the Constitution is a limitation
on governmental powers. It does not apply to the
exercise of private power, such as the termination of
an employee under the LC.
2. Notice and Hearing are required under the Due
Process Clause before the power of organized society
are brought to bear upon the individual.
o Ex. In the case of termination of
employment under Art. 283 (Closure of
establishment and reduction of personnel).
 Here the employee is not faced
with an aspect of the adversary
system.
 The purpose of requiring a 30-day
written notice before an employee
is laid off is not to afford him an
opportunity to be heard on any
charge against him, for there is
none.
 The purpose rather is to give him
time to prepare for the eventual
loss of his job and the DOLE an
opportunity to determine whether
economic causes do exist justifying
the termination of his employment.
o In cases of dismissal in Art. 282
(Termination by employer), the purpose for
the requirement of notice and hearing is not
to comply with Due Process Clause of the
Constitution.
 The time for N & H is at the trial
stage.
 That is the time we speak of N & H
as the essence of procedural due
process.
 Thus, compliance by the employer
with the notice requirement before
he dismisses an employee does not
foreclose the right of the latter to
question the legality of his
dismissal.
 It was only on September 4, 1981
that notice was required to be
given even where the dismissal or
termination of an employee was for
cause.
3. Under Art 283 and 282, the employer cannot really
be expected to be entirely an impartial judge of his
own cause.
c. NON-IMPAIRMENT OF CONTRACTS
 The non-impairment clause under Section 10, Article
III is limited in application to laws about to be
enacted that would in any way derogate from
existing acts or contracts by enlarging, abridging or
in any manner changing the intention of the parties
thereto. (Serrano vs Gallant, 2009)
d. DUE PROCESS AND EQUAL
PROTECTION CLAUSE
 A reasonable classification:
1. Must rest on substantial distinctions;
2. Must be germane to the purposes of the law;
3. Must not be limited to existing conditions only; and
4. Must apply equally to all members of the same class.
e. POLICY OF SOCIAL JUSTICE AND THE
PROTECTION OF THE WORKING CLASS
f. SOCIAL JUSTICE
g. SOCIAL JUSTICE AND EQUAL PROTECTION
2003 BAR EXAMINATION
h. PROTECTION TO LABOR CLAUSE UNDER
THE 1987 CONSTITUTION
1998 AND 1996 BAR
i. CO-DETERMINATION UNDER THE
CONSTITUTION
j. MANAGEMENT PREROGATIVES AND THOSE
WHICH AFFECT THE RIGHTS OF THE
EMPLOYEES
1994 BAR
k. ART XIII, SECTION 3 DESCRIBED TO BE
NOT SELF-ACTUATING
Art. 2 DATE OF EFFECTIVITY
ART. 3 DECLARATION OF BASIC POLICY
 1. DECLARATION OF BASIC POLICY UNDER THE LABOR a. VALIDITY OF POLICY ON RELATIONSHIP
CODE WITH A COMPETITOR’S EMPLOYEE
b. TEST ON VALIDITY OF COMPANY POLICY
2009 BAR ON MARITAL DISCRIMINATION

ART.4 CONSTRUCTION IN FAVOR OF LABOR ART. 5 RULES AND REGULATIONS

2006 BAR 1. RULE MAKING POWER OF DOLE

2. EFFECTIVITY OF RULES AND REGULATIONS
1. INTERPRETATION OF LABOR
LEGISLATION/CONTRACTS UNDER ART 1702 CIVIL ART. 6 APPLICABILITY
CODE
2. JURISPRUDENTIAL DOCTRINES ON THE 1. APPLICABILITY
APPLICATION OF ART 4 2. COVERAGE OF CIVIL SERVICE
3. TEST TO DETERMINE WHETHER A GOCC IS SUBJECT
2017 AND 2009 BAR TO CIVIL SERVICE LAW
a. CORPORATIONS GOVERNED BY THE LABOR
3. JURSIPRUDENTIAL DOCTRINES WHEN ART 4 OF THE CODE
LABOR CODE IS NOT APPLICABLE b. CORPORATIONS COVERED BY THE CIVIL
4. CONCEPT OF MANAGEMENT PREROGATIVES SERVICE LAW
a. CRITERION TO GUIDE IN THE EXERCISE OF 4. EMPLOYERS WITH IMMUNITY FROM SUIT
MANAGEMENT PREROGATIVES
5. ASPECTS MANAGEMENT PREROGATIVES 2014 AND 1994 BAR
a. EMPLOYEE SELECTION
b. TO DISCIPLINE a.WHEN IMMUNITY FROM SUIT IS NOT
c. TO PRESCRIBE REASONABLE RULES AND APPLICABLE
REGULATIONS 5. EXCLUSIONS UNDER ARTICLE 82

2000 BAR ART. 7 STATEMENT OF OBJECTIVES

d. SECURITY OF TENURE ART. 8 TRANSFER OF LANDS TO TENANT-WORKERS

e. TO DISMISS AN EMPLOYEE
f. TO CHARACTERIZE EMPLOYMENT AS NO ART.9 DETERMINATION OF LAND VALUE
LONGER NECESSARY AND TO HIRE
g. TRANSFER AND PROMOTION OF ART. 10 CONDITIONS OF OWNERSHIP
EMPLOYEES
h. OUTSOURCING OF BUSINESS ART. 11 IMPLEMENTING AGNECY

2001 AND 1994 BAR CHAPTER II

i. PRODUCTIVITY STANDARDS EMANCIPATION OF TENANTS

j. THE RIGHT TO DEMOTE
k. THE RIGHT TO DEMOTE IS SUBJECT TO
DUE PROCESS REQUIREMENT
l. GRANT OF BONUS
2015, 2014, 2005, 2003, 2002 AND 1995
BAR
m. CHANGE OF WORKING HOURS
6. POST-EMPLOYMENT BAN, NON-INVOLVEMENT
CLAUSE AND NON-COMPETE CLAUSE
a. ON VALIDITY OF POST-RETIREMENT
COMPETITIVE EMPLOYMENT BAN
b. NON-INVOLVEMENT CLAUSE IS SUBJECT
LIMITATIONS AS TO TIME, TRADE, AND
PLACE
1. THE CARP
a. CONSTITUTIONAL FOUNDATION
2. AGRARIAN REFORM AS DEFINED BY RA 6657
3. SCOPE OF AGRARIAN REFORM
4. RETENTION LIMITS
5. EXEMPTIONS AND EXCLUSIONS
6. COMMERCIAL FARMING
7. PROCEDURE FOR ACQUISITION OF PRIVATE LANDS
8. DETERMINATION OF JUST COMPENSATION
9. VALUATION AND MODE OF COMPENSATION
10. QUALIFIED BENEFICIARIES
11. DISTRIBUTION LIMIT
12. RA 9700
BOOK ONE

2009 BAR PRE-EMPLOYMENT

c. NON-COMPETE CLAUSE (GOODWILL ART. 12. STATEMENT OF OBJECTIVES

CLAUSE), A POST-EMPLOYMENT CIVIL LAW
1. POLICY OF THE STATE ON PRE-EMPLOYMENT UNDER
MATTER
THE LABOR CODE
1. POLICY ON MARITAL DISCRIMINATION
2. DECLARATION OF POLICIES UNDER MIGRANT
WORKERS AND OVERSEAS FILIPINO ACT (1995)
 3. POLICY ON DEPLOYMENT OF MIGRANT WORKERS 4. STRUCTURAL ORGANIZATION
5. REGULATION OF PRIVATE SECTOR
2012 BAR 6. CONSTITUTIONAL CHALLENGE ON THE RULE-
MAKING POWER OF THE POEA
4. POLICY ON TERMINATION OR BAN ON DEPLOYMENT 7. JURISDICTION OF POEA
a. ADMINISTRATIVE ASPECT OF
TITLE I RECRUITMENT VIOLATION CASES
b. VENUE ON THE FILING OF COMPLAINT
RECRUITMENT AND PLACEMENT OF WORKERS
c. WHO MAY FILE
d. PRESCRIPTIVE PERIOD
CHAPTER I
e. IMPOSITION OF ADMINISTRATIVE PENALTY
f. APPEAL
GENERAL PROVISIONS

ART. 13 DEFINITIONS

1. LAWS GOVERNING RECRUITMENT AND PLACEMENT

2. DEFINITION OF RECRUITMENT AND PLACEMENT
3. INTERPRETATION OF THE PROVISO IN ARTICLE 13b
OF THE LABOR CODE
4. CONSTITUTIONALITY OF ARTICLE 13 (b) OF THE
LABOR CODE
5. DEFINITION OF TERMS
a. UNDER D.O. NO. 141-14, SERIES OF 2014
b. UNDER MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT OF 1995, AS
AMENDED
6. LICENSE AND AUTHORITY, DISTINGUISHED
a. UNDER THE LABOR CODE
b. UNDER THE MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT OF 1995, AS
AMENDED BY RA 1002
c. DISTINCTIONS BETWEEN PRIVATE
EMPLOYMENT AGENCY AND PRIVATE
RECRUITMENT ENTITY UNDER THE LABOR
CODE
d. PRIVATE RECRUITMENT/EMPLOYMENT
AGENCY UNDER RA 8042, AS AMENDED

ART. 14 EMPLOYMENT PROMOTION

ART. 15 BUREAU OF EMPLOYMENT SERVICES

1. EO NO. 797 ABOLISHED THE BUREAU OF

EMPLOYMENT SERVICES
2. THE MANDATES AND FUNCTIONS OF BUREAU OF
LOCAL EMPLOYMENT
3. HISTORICAL BACKGROUND

ART. 16 PRIVATE RECRUITMENT

1. PERSON OR ENTITY TO ENGAGE IN THE

RECRUITMENT AND PLACEMENT OF WORKERS
2. PUBLIC AND PRIVATE SECTORS ENGAGED IN THE
RECRUITMENT AND PLACEMENT OF WORKERS
a. THOSE IN THE PUBLIC SECTOR
b. THOSE IN THE PRIVATE SECTOR
3. POEA’S PARTICIPATION IN RECRUITMENT AND
PLACEMENT

ART. 17 OVERSEAS EMPLOYMENT DEVELOPMENT BOARD

1. EO 797 ABOLISHED THE OVERSEAS EMPLOYMENT

DEV’T BOARD
2. EO 797 CREATED THE POEA
3. POWERS AND FUNCTIONS OF POEA