INTRODUCTION TO LAW NOTES- WEEK 4

LABOR LAW AND SOCIAL LEGISLATION:

1. Balance between Labor and Capital
 Essential Feature of Labor Laws:
“All doubts in the interpretation and implementation of the provisions of the Labor
Code and other labor-related statutes shall be resolved in favor of labor”.
 Labor Code underlines state’s commitment to the constitutional mandate of providing full
protection to labor since it affirmed that labor is a primary social economic force. But this
should not be taken to mean that capital will always be at the losing end of the equation. This
has to be reconciled with another constitutional mandate to harmonize and balance the needs
and demands from both labor and capital since capital is recognized as having an
indispensable role in national development.
 It has to be understood that labor laws are not meant to place the laborer above the employer,
nor to favor labor over capital.
 Labor laws are there only to protect the rights of labor against unscrupulous employers as
well as to protect employers from abusive employees.

Article XIII, Section 3 of the 1987 Constitution provides:

“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 all 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 returns to investments, and to expansion and growth.”

2. Construction in Favor of Labor

 Article 1702 of the CIVIL CODE:
“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.”

 If there is doubt in the meaning of legal and contractual provisions of a labor contract, said
doubt shall be resolved in favor of the labor sector. Conversely, if the provision is clear and
unambiguous, then it must be applied in accord with the express terms of the contract.
(Meralco v. NLRC, GR No, 78763, July 12, 1989)

3. Labor Standards
 INTRODUCTION TO LAW NOTES- WEEK 4

These are provisions in the Labor Code and in other pertinent laws that provide for the
minimum standards as regard working conditions, hours of work, wages and other similar aspects of
employment.
This is a matter of right on the part of the laborer and non-compliance by an employer of said
minimum standards would be met with the punitive force of the law.
Among the terms and conditions of employment that are covered under labor standards are as
follows:
a. Hours of Work;
b. Meal Periods;
c. Minimum Wage;
d. Payment of Wages;
e. Overtime;
f. Night Differential;
g. Weekly Rest Period;
h. Holiday Pay;
i. 13th Month Pay; and
j. Employment of Minors.

Title I, Book III of the Labor Code deals with hours of work, weekly resxt periods, holidays,
service incentive leaves and service charges, covers all employees in all establishments, whether for profit
or not, except the following:
a. Government employees;
b. Managerial employees;
c. Field personnel;
d. Members of the family of the employer who are dependent on him for support;
e. Domestic helpers or persons in the personal service of another; and
f. Workers paid by result.

EMPLOYEE-EMPLOYER RELATIONSHIP

In Sonza vs. ABS-CBN Broadcasting Corporation, the court held that:

“Case law has consistently held that the elements of an employer-employee relationship are: (a)
the selection and engagement of the employee; (b) the payment of wages; (c) the power of dismissal; and
(d) the employer’s power to control the employee on the means and methods by which the work is
accomplished. The last element, the so-called “control test,” is the most important element.”
“Applying the control test to the present case, we find that SONZA is not an employee but an
independent contractor. The control test is the most important test our courts apply in distinguishing an
employee from an independent contractor. This test is based on the extent of control the hirer exercises
over a worker. The greater the supervision and control the hirer exercises, the more likely the worker is
deemed an employee. The converse holds true as well—the less control the hirer exercises, the more
likely the worker is considered an independent contractor.”