LABOR LAW REVIEW

GENERAL PRINCIPLES
a. Legal Basis
1. Constitution
-heavily based on constitutional provisions because most of the labor law
provisions do not come naturally, they come from the state. Thus consti is the main
basis.
-Very important is the social justice;
-another is constitutional grant of full protection to labor; the full protection
include overseas employment.
-labor is identified as a primary social economic force. Legally, it recognizes labor as
also vital part of economy not only capital.
-Right to self organization. State protects right of employees to form organization to
protect themselves and bargain with their employer not just as an individual but as a
group.
-Due process. Labor is a property right. Thus cannot be deprived of labor without
due process.
-Security of Tenure. Pursuant to due process.
-These provisions are not self-executing. Thus, there should be an enabling law.
Thus, the executing laws are LABOR CODE and CIVIL CODE.
-Art. 1700 The relation of employer and employee are impressed with public
interest. Thus, it is a contract which is governed by the state

Why does state regulate labor?

-Pursuant to police power of state. It exercises police power because it intervenes with
the use of property or liberty or parties, as to how employer will act on erring
employees, or how it should exercise its power. Such is to protect common good.

-Pursuant to Social Justice. Labor laws are based on social justice. Such principle states
that labor has a value. When SJ is basis, such does not give a blanket to underprivileged
to commit something wrong. It simply mitigates the effect of a harsh law to the
underprivileged. At the same time, you should not use social justice paringly,

2. Civil Code
-see art. 1700
 3. Labor Code
-promulgated in 1974,
-Codified labor laws
-amended
-has declarations of policy (see the different of Labor Code policies and policies in
Consti):
-Purpose of Social Legislation-Labor laws gives life to the principles provided in the
consti

Construction of Labor Laws:

-Before interpret, If there is an ambiguity, resolve it in favor of labor.

-Basis is Social Justice, because state recognized that (1)employer is more powerful than
employee, thus such provision, makes them equal. Another reason is there are greater supply
of labor, thus, if (2)there is a greater supply, of laborers, the employers will easily terminate its
employees and can hire from the large amount of willing to be employed.

-This is based on the labor code and civil code, stating that, in case of doubt, the interpretation
should be in favor of the labor. In addition, it should

-If no room for doubt, simply apply provisions of the law.

Who issue regulations?

-DOLE (Art. 5)

-Issues:

a. Only Congress can promulgate laws

-There is a growing complexity, t

That is why laws cannot keep up with this complexity, thus DOLE is given such policy-making
power to enact regulations which still is pursuant to the enacted labor laws.

-example is the laws on work from home. Since it is pandemic, DOLE provide regulations
pursuant to existing complexity.

b. DOLE has authority to interpret provisions of Labor Code.

-On contractualization, what governs is D.O. No. 174 s. 2017 which is the only provision
regulated contractualization
Applicability of Labor Code

-To whom does it apply?

--Applies to Agricultural and non-Agricultural workers, industrial or commercial for profit or not

--Applies to all employers whether they are for profit of not

--Applies to all employees in the private sector

Applies to all employees as a general rule

Who are not covered? (Exception)

1. Gov’t Employees- refers to all employees of gov’t three branches and its subdivisions
2. GOCC w/ original charter

If thereis a problem w/ a gov’t employee, what law governs?

-Civil service law

As to Military civilian employees, Civil service law applies

If a GOCC organized under Corporation Code, labor laws will apply

Gov’t employees, may also organize even if they are not under labor law, but cannot form
UNIONS, thus, they cannot enter in a CBA or enter into strike, but they can appeal to
government for better employment benefits.

Medical frontliners, threatening to make mass resignation, it is valid. But if they will strike, it is
not valid.

Others not governed by labor laws:

-employees of International orgs. Because they are covered under treaty obligations and
pursuant to unsuitability of state and international organizations.(e.g. World Health Org.)

-these employees of international org’s remedy is to enter to modes of settlement of disputes

as to employment INTERNALLY between the orgs. Or through DFA

-employees of IRRI not governed by LC

How to determine whether employer is covered or not?

-look at how org is created

-Employees of water districts are not covered, they are created by P.D.198 a special law. Thus
civil service law governs.

-Corporate officers are not governed. (e.g. President, corporate secretary, treasurer and BOD
or BOT) because they are not employees but officers, they are not receiving wages they are
only receiving allowances and per diems.

-if you are removed as a corporate officer, do not file illegal termination case, their remedy is to
file complaint with the SPECIAL CORPORATE COURT under R.A. 8799 it is the RTC because this is
an INTRA-CORPORATE DISPUTE

Other officers, aside from president, corporate sec or treasurer, as provided in the Corpo Code.
you are considered as regular employee. (example, if you are CEO or Vice Pres, you are
considered as mere employee

RECRUITMENT AND PLACEMENT

-Recruitment and placement, understand that it is applicable if there is a third party involved in
the employment

-This is as to pre-employment process

-Recruitment and placement is a regulated transaction

-General rule is that the basic standard is employees are directly hired by employers.

-Except those employments allowed by law for recruitment and placements (e.g. PESO, private
recruitment entities created through the requirements provided by law, shipping or manning
agencies for sea workers, government agencies such as POEA, Construction companies may
recruit if allowed by DOLE, members of the diplomatic corps)

-POEA is an admin agency implementing rules and monitoring Overseas Employment Workers;
they come up with rules to make sure contracts of OEW are equitable; Deploys the overseas
workers for gov’t to gov’t employment; issues license of those applying for recruitment and
manning agency; has adjudicatory functions for violation of recruitment rules and regulations
and for disciplinary action of employers and employees of the agency by revoking license, or
close the agency or blacklist the agency
-What law governs Migrant Workers of OFW?

R.A. 8042 as amended by R.A 10022

-which provides under Sec. 10 that, in case of termination of OFW w/out justifiable cause, any
deduction to the employee may be collected with interest of 10% per annum with salaries for
the unexpired portion but only for the duration of 3months of the unexpired portion (such
provision is unconstitutional, as provided in Serrano v. Gallant Maritime Services)

-Under R.A. 10022 such provision was reinstated. But said provision is still not valid, because SC
affirmed the unconstitutionality of the said clause

-Venue of cases will be the regional NLRC L.A. in the residence of the Employee. If the Employee
died, the NLRC in the residence of his or her heirs

OWWA

- Does not have any adjudicatory function

- Thus if ther is any complaint do not go to OWWA
- They undertake repatriation of workers in times of disasters, war or other mergency
- Provides loan assistance to OFW who went back to Phils needs social integrations

Ban on Direct Hiring

- Employers abroad are not allowed to directly hire Filipinos to work overseas for them
- Except, when :
1. Member of Diplomatic corps
2. Employee of Int’l orgs
3. Other instances allowed by Sec. of Labor
4. Name hiring
 Employee secured employment without assistance of a recruiter
 But must inform POEA that an employee is hired by filing its application still to
POEA

Earnings of OFW

- Is there a mandate that you should remit earnings in Phils??

 If you are earning abroad, it is mandated by DOLE to remit portion of earnings
for protection of families that were left
  It insures that remittance is done through authorized financial institutions
 For economic dvt.
- How much should be remitted?
 Depends on the kind of employment
- Non-remittance
 You will be denied application on you reapply to POEA

Travel Agencies

- Gen. Rule: Prohibited from engaging in recruitment

Officers of board of Corp engaged in business of travel, directly or indirectly I PROHIBITED to

engage in recruitment.

Individuals whose partners are engaged in the business of travel agency.

Corporation that have derogatory record with POEA or DOLE

Persons or partnership or officers or director whose license was engaged in recruitment was
previously revoked

Capitalization of Recruitment Agency

- Minimum capital under 2006 Revised RR of POEA shall be 5 Million

License to recruit may only be used by person or corp whose favor it was issued.

- Thus, the sale of such license or in any mode of transfer is prohibited

- License and authority are different.

PEA (Private Employment Agency)

- May collect fee

PRE (Private Recruitment Entity)

- They are not allowed to collect directly or indirectly from employees fees

DOLE issues license

If an entity has license, may engage in activity of recruitment and placement

- All activity under Art. 13 or Labor Code.

Purpose of Cash bond to be given by overseas employer:

- If rights of workers are violated, they will have a recourse by imposing the cash bond

Art. 34-Prohibited Practices

- Covered:
1. Individual persons
2. Entities, Association or Corporations
3. Licensee
4. Holder of an authority

If committed any prohibited practices, regardless if licensed or authorized, they will still be
liable for unlawful acts.

PROHIBITED PRACTICES:

1. Charge or accept directly or indirectly amount in excess of that provided by law or what
was provided in the contract.
2. Publish any false information as to recruitment or employment
 Only false information is not allowed
3. Misrepresenting capability in application for license
4. To induce or attempt to induce employee who is already employed to quit and transfer
employment, unless it is necessary to relieve the employee to oppressive terms and
conditions of an employer
5. Influencing or attempt to influence another agency not to employ a person who
previously applied to the agency
6. Recruiting or engaged in recruiting to jobs harmful to health or morality or dignity of the
Republic of the Philippines.
7. Obstructing or attempt to obstruct inspection of Sec. of Labor or his authorized
representatives.
8. Failure to file reports on the status of employment, placement, status and remittances
of an OFW, vacancies of positions abroad.
9. To substitute or alter employment contract duly approved by DOLE without consent of
Sec of Labor.
  Refers to a substantial change in the terms of employment, but if the new
contract only serves to clarify the terms without changing its main intentions are
considered still valid.
10. Exempted entities engaging in act of recruitment.
11. Withholding employment documents for monetary reasons or other unreasonable
reasons.

-Sec. of Labor has authority to cancel or suspend License.

What is the meaning if license or authority is cancelled?

- While suspension is pending, he cannot already be allowed to engage in recruitment

- If cancelled, no authority already

VISITORIAL POWER OF SEC of LABOR

- Sec or his authorized rep, may inspect books of accounts of entities engaged in business
of recruitment.
- Entities are required to submit reports to Sec. of Labor

ILLEGAL RECRUITMENT

- Term refers to one recruitment activities without any license or authority

- Refers to the prohibited activities under Art. 34
- May also be considered as economic sabotage
 Once it is committed in large scale
--- committed against many victims
 If syndicated:
--- Committed by three persons and conspired and confederated with each other
to commit such act

Can Sec. of Labor who has knowledge that an illegal recruitment is done by an entity, can he
order the inspection or seizure of the said entity using his visitorial powers?

- No. such is unconstitutional, because he is not a judge who can issue warrant. Thus, the
remedy is to resort to JUDICIAL PROCESS.

2 elements of illegal Recruitment:

1. Person charged with the crime must have undertaken recruitment activities
2. The person does not have license or authority to engage in recruitment.

*These are the things to be proven

What is the significance of naming illegal recruitment as economic sabotage?

- It matters because it has a higher penalty.

- If it is committed by an individual, it is simple illegal recruitment
- If corporation, charge all those who have direct control of the business, such as the
board, pres, manager.
- If not corp. but group of people, charge them all as principals, accomplices or
accessories

Prescription to file action?

- 5 years
- 20 years if it is economic sabotage

Where to file?

- RTC has jurisdiction

- RTC where the offense was committed
- RTC in the place of residence of offended party at the time the offense was committed

Here there is also a civil liability which may be filed separately from criminal. Such as when
there is a contract of employment and claim for damages, file it with NLRC office of Labor
Arbiter

LIABILITY:

- All the defendants are liable SOLIDARILY

Other prohibited activities: (R.A. 10022)

1. If a loan is granted to OFW the interest exceeded 8%per annum

2. compelling applicant to loan only to a specific agency. Should be made to placement
fees and other fees of OFW.
3. OFW that does not undergo mandatory medical check-up in a clinic or institution of your
choice provided it is duly licensed. Except when the agency is the one who will process
medical application.
4. Imposing to employer to undergo trainings not necessary for the employment, unless
such training is shouldered by employer

Penalty:

Simple- 6yrs and 1 day to 12 yrs

Economic Sabotage- Life imprisonment Fine of 2-5 Million

If licensed:

- Revocation of license
- Prosecution for crime of Estafa
 Thus it may be prosecuted together with violation of labor code because they
have different elements

Employment of Non-resident Aliens

- can a NRA be employed in the Philippines?

 G.R. : Not allowed regardless if the employer is from a foreign country
 Except: if they secure employment permit duly issued by
 DOLE; or they will be employed by In’t Orgs of which Philippines is a cooperating
member; or Diplomatic offices
 How bout the ICC?? Since the SC ruled over the withdrawal of ICC to be valid,
ICC is an org that has no longer connection.
 How bout if in a corporation, NRA are members of the board, exempted to
secure permit.
 Foreign nationals who comes to Phils to teach, to provide information, provided
Filipinos who teach on other countries are not required to secure permit

Requirements for the employment:

1. Competence to egage in employement desired.

 How about POGOs??
---- Here the employees are pure Chinese
---- Here,

Employment of Aliens residing in the Philippines

- Are they allowed? In case they want to work?

- Yes, but they should secure Alien Certificate of Registration, which is in the form of I.D.
- Exemption:
1. Diplomatic offices
2. Int’l Orgs

PROHIBITION AGAINST TRANSFER OF AUTHORITY of EMPLOYMENT

 - Such is prohibited

LABOR STANDARDS