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6. What provisions on the constitution can we consider as important labor related provisions?
7. Supposing there is a violation of the constitutional provision on labor, could you file a case? Why
or why not?
8. How do we construe provisions of the labor code? Why is it so? Does this mean that the law do
not recognise the right of the management or employer?
According to Article 4 of the Labor Code, doubts in the implementation and interpretation of the
provisions of the Labor Code shall be resolved in favor of labor. This construction of the provisions of
the Labor Code does not mean non-recognition of the rights of employers. The reason for this is that
the employer stands on a higher footing than the employee. The law simply protects the labor to the
extent of raising him to equal footing with the employer in bargaining relations.
9. Please enumerate and explain some management rights.
Rights to Return on Investments. The state must recognize the right of labor to its just share
in the fruits of production and the right of enterprises to reasonable returns on investments,
and to expansion and growth.
Right to Prescribe Rules. This pertains to the rights of employers to make reasonable rules
and regulations to govern conduct of employees. Employees, with knowledge of the
established rules is bound by the stipulations of the contract as long as it not shown to be
grossly oppressive or contrary to law.
Right to Select Employees. This is the right of employers to freedom in selecting personnel to
employ. Employers may accept or refuse to employ as he/she deems fit.
Right to Transfer or Discharge Employees. Employers have the right to transfer, reduce or lay
off personnel in order to ensure stability of the business.
10. Are the provision of the labor code applicable to all workers?
According to Article 6 of the Labor Code, all rights and benefits granted to workers under the Labor
Code shall apply alike to all workers, whether agricultural or non-agricultural, except as otherwise
provided in the code. Additionally, the code may even apply to parties who are not in an employee-
employer relationship.
11. For GOCC, what is the test to determine whether it the labor code is applicable or not?
The test in determining whether a government-owned or controlled corporation is subject to the
Civil Service Law is the manner of its creation. Government corporations created by Congress are
subject to Civil Service rules, while those incorporated under the general Corporation Law are
covered by the Labor Code.
12. Can you also apply the labor code provision when there is no employer-employee relationship? If
yes, could you illustrate?
Yes, Labor Code applies to parties even with the absence of an employer-employee relationship.
Issues regarding such matters may be resolved through the provisions of the code, its implementing
rules, and interpretative court rulings. An example of which are the rules and regulations regarding
hiring of Contract of Service Personnel. Although COSPs technically do not have employee-employer
relationships with their hiring authority, they are still protected by the provisions of the code.
13. Who can engage in recruitment and placement?
According to Article 13 of the Labor Code, any person or entity which offers or promises for a fee
employment to two or more persons are deemed engaged in recruitment and placement.
Likewise, although Article 18 provides that only public employment offices shall engage in
recruitment and placement, Article 25 provides for certain exceptions. Based on the Rules
Implementing the Code, the following are authorized to recruit and place workers:
a. public employment offices;
b. private recruitment entities;
c. private employment agencies;
d. shipping or manning agents or representatives;
e. the POEA;
f. construction contractors if authorized to operate by DOLE and the Construction Industry Authority;
g. members of the diplomatic corps although hirings done by them have to be processed through
the POEA
h. other persons or entities as may be authorized by the DOLE secretary