LABOR LAW

LABOR RELATIONS

* All doubts in the implementation and interpretation of the Code including its implementing rules and regulations, shall be resolved
in favor of labor.

Rodriguez vs. Park N Ride - Leonen

The rudimentary principle that in the implementation and interpretation of the provisions of the Labor Code and its implementing
regulations, the workingman’s welfare should be the primordial and paramount consideration.

The policy is to extend the applicability of the decree to a greater number of employees who can avail of the benefits under the law,
which is in consonance with the avowed policy of the State to give maximum aid and protection to labor.

Dayo vs. Status Maritime Corp. - Leonen

Settled is the rule that for illness to be compensable, it is not necessary that the nature of the employment be the sole and only
reason for the illness suffered by the seafarer. It is sufficient that there is a reasonable linkage between the disease suffered by the
employee and his work to lead a rational mind to conclude that the work may have contributed to the establishment or, at the very
least, aggravation of any pre-existing condition he might have had.

Article 220 – NLRC

There shall be a National Labor Relations Commission which shall be attached to the Department of Labor and Employment solely
for program and policy coordination only, composed of a Chairman and 23 members.

*The Commission shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of
cases before any of its division and regional branches and formulating policies affecting its administration and operations.

*The divisions of the Commission shall have exclusive appellate jurisdiction over cases within their respective territorial jurisdiction.

Article 222 – LABOR ARBITERS

*Must be members of the Philippine Bar and engaged in the practice of law for at least 10 years. With at least 5 years experience or
exposure in the field of labor-management relations.

Article 224 – JURISDICTION OF THE LABOR ARBITERS

1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, involving wages, rates of pay, hours of work and other terms and conditions of
employment;
4. Claim for actual, moral, exemplary and other forms of damages arising from the employer-employee relations;
5. Cases arising from any violation of Article 279 of this Code, including questions involving the legality of strikes and lockouts; and
6. All other claims arising from employer-employee relations involving an amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for reinstatement;
7. Wage distortion disputes in unorganized establishments not voluntarily settled by the parties;
8. Enforcement of compromise agreements when there is non-compliance by any of the parties;
9. Money claims arising out of employer-employee relationship by virtue of any law or contract involving Filipino workers for
overseas deployment, including claims for damages; and
10. Other cases as may be provided by law.

* All labor-related issues involving kasambahays regardless of the amount must be elevated to the Regional Office of the DOLE
having jurisdiction regarding of the matter.

The NLRC shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.

Milan vs. NLRC – Leonen

One of the issues is whether the Labor Arbiter has jurisdiction to decide an issue on the transfer of ownership of a vehicle assigned
to the employee. It was argued that only regular courts have jurisdiction to decide the issue.

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The court ruled that since the transfer of ownership of the vehicle to the employee was connected to his separation from the
employer and arose from the employer-employee relationship of the parties, the employer’s claim fell within the Labor Arbiter’s
jurisdiction. As a general rule, therefore, a claim only needs to be sufficiently connected to the labor issue raised and must arise from
an employer-employee relationship for the labor tribunals to have jurisdiction.

REPUBLIC ACT NO. 1036

AN ACT INSTITUTING POLICIES FOR THE PROTECTION AND WELFARE OF DOMESTIC WORKERS

Section 37. All labor-related disputes shall be elevated to the DOLE Regional Office having jurisdiction over the workplace without
prejudice to the filing of a civil or criminal action in appropriate cases. The DOLE Regional Office shall exhaust all conciliation and
mediation efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal laws by either party shall be filed with
the regular courts.

* Labor cases should not be dismissed if the only ground is jurisdiction or lack of it.

JURISDICTION OF THE GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION:

(1) Arising from the interpretation or implementation of collective bargaining agreements; and
(2) Arising from the interpretation or enforcement of company personnel policies.

Except: If the violation of the CBA provision is gross violation, it becomes unfair labor practice. It now falls within the jurisdiction of
the Labor Arbiter.

* A gross violation of the CBA is the malicious and flagrant refusal to comply with the economic provisions of the CBA.

Jurisdiction over money claims of workers in cases of liquidation

Alemar’s Sibal and Sons, Inc. vs NLRC

Once the receivership proceedings have ceased and the receiver/liquidator is given the imprimatur to proceed with corporate
liquidation, the SEC order becomes functus officio. Thus, there is no legal impediment for the execution of the decision of the Labor
Arbiter for the payment of separation pay by presenting it with the rehabilitation receiver and liquidator, subject to the rules on
preference of credits.

Article 228 – Appearances and Fees

(a) Non-lawyers may appear before the Commission or any Labor Arbiter only:
1. If they represent themselves; or
2. If they represent their organization or members thereof.
3. He is a duly accredited member of any legal aid office duly recognized by the Department of Justice or the Integrated Bar
of the Philippines in cases referred to by the latter.

(b) No attorney’s fees negotiation fees or similar charges of any kind arising from any collective bargaining agreement shall be
imposed on any individual member of the contracting union: provided, however, that attorney’s fees may be charged against union
funds in an amount to be agreed upon by the parties.

German Marine Agencies Inc. vs NLRC

As to the award of attorney’s fees, the same is justified by the fact that the private respondent actually hired the services of a lawyer
to vindicate his right to claim for his disability benefit which is arbitrarily denied to him by petitioners. Had it not been for the
arbitrary denial of petitioners, private respondent could not have been compelled to hire the services of a lawyer to pursue his
claims in court, for which he is presumed to have incurred costs.

Article 111
(a) In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to 10% of the amount of
wages recovered.
(b) It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages,
attorney’s fees which exceed 10% of the amount of wages recovered.

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*The Labor Arbiter cannot award attorney’s fees to the employer. It is discretionary upon the court to award attorney’s fees or
damages.

Article 229 - Appeal

Decisions, awards, or orders of the Labor Arbiter are final and executory.
Unless appealed to the NLRC by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders.
Such appeal may be entertained only on any of the following grounds:
(1) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
(2) If the decision, order or award was secured through fraud or coercion, including graft and corruption;
(3) If made purely on questions of law; and
(4) If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant.

Laborer/Management  Labor Arbiter (30 days)  NLRC (Appeal or MR within 10 days)  Court of Appeals - Rule 65 (60 days)
 Supreme Court – Rule 45 (15 days)

St. Martin Funeral Home vs. NLRC

Appeals from the NLRC to the Supreme Court are interpreted and hereby declared to mean and refer to petitions for certiorari under
Rule 65. Consequently, all such petitions should hence forth be initially filed in the Court of Appeals in strict observance of the
doctrine on the hierarchy of courts as the appropriate forum for the relief desired.

Protective Maximum Sec. Agency vs. Fuentes – Leonen

In labor cases, if the petitioner before the Supreme Court can show grave abuse of discretion on the part of NLRC, the assailed Court
of Appeals ruling (in the Rule 65 proceedings) will be reversed. Labor officials commit grave abuse of discretion when their factual
findings are arrived at arbitrarily or in disregard of the evidence.

If the petitioner can show that the labor tribunal acted capriciously and whimsically or total disregard of evidence material to the
controversy, the factual findings of the NLRC may be subjected to review and ultimately rejected.

Article 229 – Posting of Bond

In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or
surety bond issued by a reputable bonding company duly accredited by the NLRC in the amount equivalent to the monetary award
in the judgment appealed from.

*Appellant shall pay appeal fee of P500.00 to the Regional Arbitration Branch or Regional Office of origin, and the official receipt of
such payment shall form part of the records of the case.

REINSTATEMENT
- The reinstatement aspect is immediately executory, even pending appeal. No need for writ of execution.
- The employee shall either be admitted back to work under the same terms and conditions or, at the option of the employer, merely
reinstated in the payroll (in case of strained relations).
- The posting of a bond by the employer shall not stay the execution for reinstatement provided therein.

Wenphil Corp. vs. Abing

An order of reinstatement is immediately executory even pending appeal. The employer has the obligation to reinstate and pay the
wages of the dismissed employee during the period of appeal until reversal by the higher court.

Roquero vs. Philippine Airlines, Inc.; Panuncillo vs. CAP Philippines

Even if the order of reinstatement of the Labor Arbiter is reversed on appeal, it is obligatory on the part of the employer to reinstate
and pay the wages of the dismissed employee during the period of appeal until reversal by the higher court.

On the other hand, if the employee has been reinstated during the appeal period and such reinstatement order is reversed with
finality, the employee is not required to reimburse whatever salary he received for he is entitled to such, more so if he actually
rendered services during the period.

Article 230 – Execution of decisions, orders or awards

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The Secretary of Labor and Employment or any Regional Director, the Commission or any Labor Arbiter, or Med-Arbiter or Voluntary
Arbitrator may, motu proprio or on motion of any interested party, issue a writ of execution on a judgment within five (5) years
from the date it becomes final and executory.

Article 232 – Bureau of Labor Relations

The BLR has original and exclusive jurisdiction over the following:
1. “Inter-union disputes” or “representation disputes”
2. “Intra-union disputes” or “internal union dispute”
3. All disputes, grievances or problems arising from or affecting labor-management relations in all workplaces,
except those arising from the interpretation or implementation of the CBA which are subject of the grievance procedure and/or
voluntary arbitration.

ADMINISTRATIVE FUNCTIONS OF THE BLR:

1. Registration of labor unions;
2. Keeping a registry of labor unions; and
3. Maintenance and custody of CBAs.

Article 233 – Compromise Agreements

Any compromise settlement, including those involving labor standard laws, voluntarily agreed upon by the parties with the
assistance of the Bureau or the Regional Office of DOLE, shall be final and binding upon the parties. The NLRC or any court, shall not
assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the
settlement was obtained through fraud, misrepresentation, or coercion.

Aldovino vs. Gold and Green Manpower, June 19, 2019 – Leonen
Quitclaims do not bar employees from filing labor complaints and demanding benefits to which they are legally entitled. They are
ineffective in barring recovery of the full measure of a worker’s rights, and acceptance of benefits therefrom does not amount to
estoppel.

The law does not recognize agreements that result in compensation less than what is mandated by law. These quitclaims do not
prevent employees from subsequently claiming benefits to which they are legally entitled.

THE REQUISITES OF A VALID QUITCLAIM

A quitclaim, in order to be valid, must have the following requisites:
(1) the employee executes a deed of quitclaim voluntarily;
(2) there is no fraud or deceit on the part of any of the parties;
(3) the consideration of the quitclaim is credible and reasonable; and
(4) the contract is not contrary to law, public order, public policy, morals or goods customs, or prejudicial to a third person with a
right recognized by law. (Luis Doble, Jr. vs. ABB, Inc., G.R. No. 215627, June 5, 2017, Peralta, J.)

San Miguel Corporation vs. NLRC

A compromise entered into in good faith by workers and their employer to resolve a pending controversy is valid and binding on the
agreeing parties.

SINGLE ENTRY APPROACH – an administrative approach to provide a speedy, impartial, inexpensive and accessible settlement
procedure for all issues/complaints arising from employer-employee relations to prevent them from ripening into full blown
disputes.

Under this approach, all labor and employment disputes shall undergo a 30-day mandatory conciliation-mediation process to effect
settlement among the contending parties.

Article 237 – Registry of unions and file of collective bargaining agreements

1. The Collective Bargaining Agreement must be submitted directly to the Bureau of Labore Relations or the Regional Offices of the
DOLE for registration within thirty (30) days from execution, accompanied with:
a. verified proofs of its posting in two conspicuous places in the place of work;
b. ratification by the majority of all the workers in the bargaining unit.

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2. The Bureau or Regional Offices shall act upon the application for registration of such CBA within five (5) calendar days from receipt
thereof.
3. The Regional Offices shall furnish the Bureau with a copy of the CBA within five (5) days from its submission.

Article 238 – Prohibition on certification election

The Bureau shall not entertain any petition for certification election or any other action which may disturb the administration of duly
registered collective bargaining agreements affective the parties, except Articles 264, 265 and 268 of the Labor Code.

CONTRACT BAR RULE – the BLR and/or the Regional Director of DOLE are not allowed by law to entertain any petition for
certification election while a valid collective bargaining agreement is existing in the industry.
*The law prohibits the holding of certification elections during the lifetime of the collective bargaining agreement.
Exceptions:
1. During the freedom period – period of sixty (60) days prior to the expiration of the CBA (Life of CBA is 5 years).
2. When CBA is not registered with the Regional Office of the DOLE or the BLR.

SLORD Devt. Corp. vs. Noya

Having ratified the CBA and being members of the union, union members owe fealty and are required under the union security
clause to maintain their membership in good standing during the term thereof. This requirement ceases to be binding only during
the sixty (60)-day freedom period immediately preceding the expiration of the CBA, which enjoys the principle of sanctity or
inviolability of contracts guaranteed by the Constitution.

Article 240 – Requirements of Registration

(a) Fifty pesos (P50.00) registration fee;
(b) Names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational meetings
and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its members comprising at least 20% of all the employees in the
bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the
members who participated in it.

Article 241 – Chartering and Creation of a Local Chapter

A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the
establishment of the local chapter.

*The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued
a charter certificate.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the
following documents in addition to its charter certificate:
(a) Names of the chapter’s officers, their addresses, and the principal office of the chapter; and
(b) The chapter’s constitution and by-laws: Provided, that where the chapter’s constitution and by-laws are the same as that of the
federation or the national union, this fact shall be indicated accordingly.

*Additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter or treasurer of the
chapter and attested by its president.

*The report of creation of a chartered local shall be accompanied by a charter certificate issued by the federation or national union
indicating the creation or establishment of the chartered local.

Affiliation of Local or Independent Unions

Coastal Subic Bay Terminal Inc. vs DOLE Secretary

A local union does not owe its existence to the federation which it is affiliated. It is a separate and distinct voluntary association
owing its creation to the will of its members. Mere affiliation does not divest the local union of its own personality; neither does It

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give the mother federation the license to act independently of the local union. It only gives rise to a contract of agency, where the
former acts in representation of the latter.

Article 242 – Action on Application

The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case
may be, and attested to by its president.

Article 243 – Denial of Registration Appeal

The decision of the Labor Relations Division in the regional office denying registration may be appealed by the applicant union to the
Bureau within ten (10) days from receipt of notice thereof.

Abbot Lab. Phils. vs. Abbot Employees Union

The decision of the Bureau of Labor Relations on cases brought before it on appeal from the Regional Director are final and
executory. Hence, the remedy of the aggrieved party is to seasonably avail of the special civil action of certiorari under Rule 65 of the
Rules of Court.

A decision of the BLR cancelling the union’s certificate of registration may be appealed to the Secretary of Labor whose decision on
the matter shall be final and unappealable.

Registration/Cancellation  filed with Regional Office (decide within 30 days)  Bureau of Labor Relations (Appeal within 10 days;
MR 10 days)  Court of Appeals (Rule 65 - 60 days; may file TRO)  Supreme Court (Rule 45 – 15 days)

Registration/Cancellation >>> directly filed with the Bureau of Labor Relations (decide within 30 days) >>> Secretary of DOLE
(Appeal within 10 days; MR 10 days) >>> Court of Appeals (Rule 65 - 60 days; may file TRO) >>> Supreme Court (Rule 45 – 15 days)

Article 244 – Additional Requirements or Federations or National Unions

Proof of the affiliation of at least ten (10) locals or chapters, each of which must be duly recognized collective bargaining agent in the
establishment or industry in which it operates.

Article - 245 Cancellation of Registration

Coastal Subic Bay Terminal Inc. vs. DOLE Secretary

Once a labor union attains the status of legitimate labor organization, it continues as such until its certificate of registration is
cancelled or revoked in an independent action for cancellation. In addition, the legal personality of a labor organization cannot be
collaterally attacked. Hence, the absence of any independent action for cancellation of registration and unless and until their
registrations are cancelled, each continues to possess a separate legal personality.

Article 246 – Effect of a Petition for Cancellation of Registration

A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the
filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate
courts.

GROUNDS FOR CANCELLATION OF UNION REGISTRATION

(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or
amendments thereto, the minutes of ratification, and the list of members who took part in the ratification;
(b) Misrepresentation, false statement or fraud in connection with the election of officers, minutes of the election of officers, and
the list of voters;
(c) Voluntary dissolution by the members.

Article 248 – Voluntary Cancellation of Registration

The registration of a legitimate labor organization may be cancelled by the organization itself, provided that:
(1) At least two-thirds (2/3) of its general membership votes, in a meeting duly called for that purpose to dissolve the organization;
and

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(2) An application to cancel registration is thereafter submitted by the board of the organization, attested to by the president
thereof.

EQUITY OF THE INCUMBENT – All the existing federations and national unions which meet the qualifications of a legitimate labor
organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of
the industry and the location of the affiliates. (Article 249, Labor Code)

Article 250 – Rights and conditions of membership in a labor organization

1. Political right – right to vote and be voted for subject to the qualifications mandated by law.

Election of Union Officers:

- The members shall directly elect their officers by secret ballot at intervals of five (5) years.
- No qualification requirements for candidacy to any position shall be imposed other than membership in good standing in subject
labor organization.

Qualifications of Union Officers:

- Employee of the company where the union is in operation
- Member of the union in good standing
- Not have been convicted of a crime involving moral turpitude unless he has been given an absolute pardon for such offense

2. Right to participate in policy and decision-making

3. Right over the funds of the union – all union members have the right against imposition of excessive fees, against unauthorized
collection and disbursements, to demand accounting and auditing of union funds, access financial records, vote on compensation of
officers, vote on special assessments and issue written authorization on special assessments.

UNION DUES – money collected for payment of membership fees in the union.

Check off – a method of deducting from an employee’s pay at prescribed period, the amounts due to the union for fees, fines or
assessments for the purpose of raising funds for the union.

*No special assessments, attorney’s fees, negotiation fees or any other extraordinary fees may be checked off from any amount due
to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state
the amount, purpose and beneficiary of the deduction.

Requisites for Special Assessment:

(1) Authorization by a written resolution of the majority of all the members at the general membership meeting called for the
purpose;
(2) Secretary’s record of the minutes of the meeting; and
(3) Individual written authorization for check off duly signed by the employees concerned.

*No deduction can be made from the salaries of the concerned employees other than those mandated by law.

AGENCY FEES – collected from employees in the bargaining unit who are not members of the union but they benefit from the
collective bargaining agreement.

4. Right to information – right to be informed and participate in the adoption and/or ratification of the constitution and by-laws
including amendments thereto and in the adoption and/or ratification of the collective bargaining agreement.

Article 251 – Rights of legitimate labor organization

1. Act as the representative of its members in the collective bargaining.
2. Be the certified exclusive representative of all the employees in an appropriate bargaining unit.
3. To be furnished by the employer, upon written request, with its annual audited financial statements within thirty (30) calendar
days from the date of receipt of the request or within sixty (60) calendar days before the expiration of the existing collective
bargaining agreement, or during the collective bargaining negotiation.

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4. Own property, real or personal.
5. Sue and be sued in its registered name.
6. Undertake all other activities not contrary to law for the benefit of the organization and its members.

Article 252 – Reportorial Requirement

The following are required to be submitted to the BLR by the legitimate labor organization:
(1) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the
ratification within 30 days from the adoption or ratification of the constitution and by-laws or amendments thereto;
(2) List of officers, minutes of the election of officers, list of voters within 30 days from election;
(3) Annual financial report within 30 days after close of every fiscal year;
(4) List of members at least once a year or whenever required by the Bureau.

*Failure to comply shall not be a ground for cancellation of union registration but shall subject the erring officers or members to
suspension, expulsion from membership, or any appropriate penalty.

RIGHT TO SELF-ORGANIZATION

Executive Order 180, June 1, 1987

Providing guidelines for the exercise of the right to organize of government employees, creating a Public Sector Labor Management
Council, and for other purposes.

Arizala vs. Court of Appeals

While EO No. 180 concedes to government employees, the right to engage in concerted activities, including the right to strike, the
executive order is quick to add that those activities must be in accordance with law.

Since the terms and conditions of employment in the government, including any political subdivision or instrumentality thereof and
government-owned and controlled corporations with original charters are governed by law, the employees therein shall not strike
for the purpose of securing changes thereof.

Employees who DO NOT have the right to self-organization:

1. High level government employees – whose functions are normally considered as policy-making or managerial or whose duties are
of a highly confidential nature.
2. Members of the AFP, PNP, firemen, jail guards
3. Employees of International Organizations enjoying immunity from suits
4. Managerial employees
*Supervisory employees on the other hand, shall not be eligible for membership in a labor organization of the rank-and-file
employees but may join, assist or form separate labor organizations of their own.
5. Confidential employees
6. Employees of the cooperative who are members of the cooperative

*Security guards and other personnel employed by the security service contractor shall have the right to form, join or assist in the
formation of a labor organization of their own choosing for purposes of collective bargaining and to engage in concerted activities
which are not contrary to law, including the right to strike. (Meralco vs. Secretary of Labor, May 20, 1991)

Article 254 – Right of employees in the public service

Employees of government corporations established under the Corporation Code shall have the right to organize and bargain
collectively with their respective employers. All other employees in the civil service shall have the right to form associations for
purposes not contrary to law.

GSIS vs. Kapisanan ng mga Manggagawa sa GSIS

Any collective activity undertaken by government employees with the intent of effecting work stoppage or service disruption in
order to realize their demands or force concessions, economic or otherwise, is a prohibited concerted mass action and doubtless
actionable administratively.

In the absence of statute, public employees do not have the right to engage in concerted work stoppages for any purpose.

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MPSTA vs Laguio, Jr.
The mass actions staged by public school teachers were to all intents and purposes a strike, they constituted a concerted and
unauthorized stoppage of, or absence from, work which it was the teacher’s sworn duty to perform, undertaken for essentially
economic reasons it denied the petition, since the right to strike did not extend to civil service employees.

MANAGERIAL EMPLOYEES – vested with powers and prerogatives to lay down and execute management policies and/or hire,
transfer, suspend, lay-off, recall, discharge, assign or discipline employees.
1) Primary duty consists of management of the establishment in which they are employed or of a department or subdivision thereof;
2) They customarily and regularly direct the work of two or more employees therein; and
3) They have the authority to hire and fire other employees of lower rank; or their suggestions and recommendations as to the hiring
and firing and as to the promotion or any other change of status of other employees are given particular weight.

SUPERVISORY EMPLOYEES – those who, in the interest of the employer, effectively recommend such managerial actions if the
exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.

*The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically deemed removed from the list of membership of said union.

Article 257 – Non-abridgement of right to self-organization

It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with employees and workers in their
exercise of the right to self-organization.

UNFAIR LABOR PRACTICE – acts that violate the workers’ right to self-organize.

Adamson University Faculty Union vs. Adamson University – Leonen

In determining whether an act of unfair labor practice was committed, the totality of the circumstances must be considered. If the
unfair treatment does not relate to or affect the workers’ right to self-organize, it cannot be deemed unfair labor practice.

A dismissal of a union officer is not necessarily discriminatory, especially when that officer committed an act of misconduct. In fact,
union officers are held to higher standards.

The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases involving unfair labor practices. They shall
resolve such cases within thirty (30) calendar days from the time they are submitted for decision.

Criminal Aspects of ULP

Criminal aspect can be committed by the agents and officers of the employer who participated, authorized and/or ratified the act.
The ULP falls within the jurisdiction of the regular trial courts and the quantum of proof required is beyond reasonable doubt.

The prescriptive period is within one (1) year from the accrual of the act of ULP.

*The criminal proceeding is suspended once the civil or administrative aspect is filed. The criminal proceeding only continue once
the administrative case has attained finality. The final judgment in the administrative proceeding finding ULP is a pre-requisite in
the filing of the criminal case for ULP.

Article 303 – Penalty for ULP

Fine not less than P1,000.00 nor more than P10,000.00 or imprisonment of not less than three months nor more than 3 years, or
both such fine and imprisonment at the discretion of the court.
Any alien found guilty, shall be summarily deported upon the completion of service of sentence.

Article 259 – Unfair labor practices of employers

1. Interfering, restraining or coercing employees to discourage them from joining, forming or assisting in the formation of labor
union.
2. When an employer requires as a condition of employment that a person or an employee shall not join a labor organization or shall
withdraw from one to which he belongs. This is known as yellow dog contract.

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3. Contracting out of service when such will interfere with, restrain or coerce employees in the exercise of their rights to self-
organization.
4. Company unionism – employer initiating, dominating, assisting or otherwise interfering with the formation or administration of
any labor organization, including the giving of financial or other support to it or its organizers or supporters.
5. Discrimination in regard to wages, hours of work and other terms and conditions of employment in order to encourage or
discourage membership in any labor organization.
6. Retrenchment if it has some relations with the employee’s membership or non-membership with the union.
7. Paid negotiation
8. Refusal to bargain with the union
*Run-away shop – wherein employer moves its business to another location or it temporarily closes its business for anti-
union purposes.
*Blue-sky bargaining – act of making exaggerated or unreasonable proposals.
*Boulwareism – an offer or counter-offer that is not meant to be negotiated. This is a “take it or leave it” strategy.
*Surface bargaining – “going through the motions of negotiating” without any legal intent to reach an agreement.

Article 260 – Unfair labor practices of labor organizations

1. Restrain or coerce employees in the exercise of their right to self-organization
2. Featherbedding – nature of exaction for services which are not performed or not to be performed, including demand for fee for
union negotiations.
3. Refuse to bargain collectively with the employer
4. Ask for or accept negotiation or attorney’s fees from employers as part of the settlement of any issue in collective bargaining or
nay dispute.
*Sweetheart’s contract – contract or the Collective Bargaining Agreement does not substantially improve the employees’
wages and benefits. Worst, the contract may even provide for benefits which are far below those that are provided by law.

UNION SECURITY CLAUSE – a stipulation contained in the Collective Bargaining Agreement whereby the employer undertakes to
recognize the right of the union who negotiated the CBA to maintain and protect its membership by imposing certain terms and
conditions in hiring employees and retention of employment.

“Union security” is a generic term, which is applied to and comprehends “closed shop”, “union shop, “maintenance of membership,”
or any other form of agreement which imposes upon employees the obligation to acquire or retain union membership as a condition
affecting employment.

Purposes of union security clause:

1. Protection
2. Benefits
3. Self-preservation

Closed shop agreement – agreement whereby an employer binds himself to hire only members of the contracting union who must
continue to remain members of the union in good standing for the duration of the agreement as a condition for continued
employment.

Maintenance membership shop – when employees, who are union members as of the effective date of agreement, or who
thereafter become members, must maintain union membership as a condition for continued employment until they are promoted
or transferred out of the bargaining unit, or the agreement is terminated.

Union shop agreement – all new regular employees are required to join the union within a certain period as a condition for their
continued employment.

Agency shop – arrangement that requires an employee, as a condition of employment to pay the contracting union a service fee
known as “agency fee” for the benefits these employees receive from the collective bargaining agreement as a result of the efforts
of the contracting union.

BPI vs BPI Employees Union

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Rank-and-file employees who are not union members because they are “old” employees not covered by the maintenance of
membership clause are covered by the CBA but are not union members; they simply pay “agency fees” to avoid being “free riders”
to the CBA.

Preferential shop agreement – recognizes the right of the employer to select his employees but requires him to give preference to
members of the contracting union who are qualified.

*Members of religious groups may not be compelled to join labor organizations if their religions prohibit their members from joining
such organizations.

Valid termination of employment pursuant to violation of union security clause:

(1) Union security clause is applicable;
(2) Union is requesting for the enforcement of the union security provision in the CBA;
(3) There is sufficient evidence to support the union’s decision to expel the employee from the union.

Article 261 – Procedure in collective bargaining

(a) Serve a written notice upon the other party with a statement of its proposals. The other party shall make a reply not later than
ten (10) calendar days from the receipt of such notice;
(b) Should differences arise, either party may request for a conference which shall begin not later than ten (10) days from the date of
request;
(c) If the dispute is not settled, the National Conciliation and Mediation Board shall intervene upon request of either or both parties
or at its own initiative and immediately call the parties to conciliation meetings.
(d) During conciliation proceedings, parties are prohibited from doing any act which may disrupt or impede the early settlement of
the disputes; and
(e) The Board shall exert all efforts to settle disputes amicably and encourage parties to submit their case to a voluntary arbitrator.

COLLECTIVE BARGAINING AGREEMENT – contract executed upon request of either the employer or the exclusive bargaining
representative incorporating the agreement reached after negotiations with respect to wages, hours of work and all other terms and
conditions of employment.

SONEDCO vs. Universal Robina – Leonen

The CBA is the law between the contracting parties – the collective bargaining representative and the employer-company.
Compliance with a CBA is mandated by the expressed policy to give protection to labor, in the same vein, CBA provisions should be
construed liberally rather than narrowly and technically, and the courts must place a practical and realistic construction upon it,
giving due consideration to the context in which it is negotiated and purpose which it is intended to serve.

A CBA is not an ordinary contract but one impressed with public interest. Where a proposal raised by a party does not find print in
the CBA, it is not part thereof and the proponent has no claim whatsoever to its implementation.

Jurisdictional Pre-conditions in Collective Bargaining:

(1) Possession of the status of majority representation of the employees’ representative in accordance with any of the means of
selection or designation provided for by the Labor Code;
(2) Proof of majority representation; and
(3) Demand to bargain.

Collective Bargaining Process:

(1) Preliminary process – sending of a written notice to bargain
(2) Negotiation – parties provide proposals and counter-proposals
(3) Execution – signing of the agreement
(4) Publication – posting of the agreement for at least five (5) days before the intended date of ratification in two conspicuous areas
in each workplace of the employer units concerned.
*Non-posting of the CBA is a fatal defect and would render the CBA ineffective.
(5) Ratification – by majority of all the workers in the bargaining unit represented in the negotiation
*Said CBA shall affect only those employees in the bargaining units who have ratified it.
(6) Registration – the CBA shall be registered with the DOLE
(7) Administration – jointly administered by the management and bargaining agent for a period of 5 years

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(8) Interpretation and application – in case of ambiguity, it shall be construed in favor of labor

Associated Labor Unions vs. Ferrer-Calleja

The posting of the copies of the collective bargaining agreement is the responsibility of the employer which can easily comply with
the requirement through a mere mechanical act.

Where to register CBA:

1. REGIONAL OFFICE which issued the certificate of registration/certificate of creation of chartered local of the labor union party to
the agreement within 30 days from the execution of the CBA. Where certificate was issued by BLR, agreement shall be filed with the
Regional Office which has jurisdiction over the place where it principally operates.
2. BUREAU OF LABOR RELATIONS in case of multi-employer CBA.

*A CBA that is not registered remains valid and binding between the parties, however, it may not be used to apply the contract
bar rule and prevent any legitimate labor union from filing a petition for certification election.

Article 264 – Duty to bargain collectively when there exists a collective bargaining agreement
Neither party shall terminate nor modify such agreement during its lifetime. However, either party an serve a written notice to
terminate or modify the agreement at least sixty (60) days prior to its expiration date. (Contract Bar Rule)

It shall be the duty of both parties to keep the status quo and to continue in full force and effect the terms and conditions of the
existing agreement during the 60-day period and/or until a new agreement is reached by the parties.

Automatic Renewal Clause (Evergreen Clause) - The CBA shall remain effective and enforceable even after the expiration of the
period fixed by the parties as long as no new agreement is reached by them and no petition for certification election is filed.

Lifetime of the CBA

5 years – representation issue or the status of the union who entered into the CBA
3 years – other provisions (economic)

*Any agreement on other provisions of the CBA entered into within six (6) months from the date of expiry of the term of such other
provisions, shall retroact to the day immediately following such date. If entered beyond six months, the parties shall agree on the
duration of the retroactivity thereof.

FVC Labor vs. Sama-Samang Nagkakaisang Manggagawa sa FVC

Despite an agreement for a CBA with a life of more than five years, either as on original provision or by amendment, the bargaining
union’s exclusive bargaining status is effectively only for five years and can be challenged within sixty (60) days prior to the
expiration of the CBA’s first five year.

Port Workers union of the Philippines vs. Laguesma

A petition questioning the majority status of the incumbent bargaining agent may be entertained and a certification electrion shall
be conducted by the DOLE (BLR). Moreover, a labor union may disaffiliate from the mother union to form a local or independent
union during the freedom period.

Any petition filed before or after the 60-day period shall be dismissed outright.

PICOP Resources Inc. vs. Dequilla

An existing CBA cannot constitute a car to a filing of petition for certification election. When there is representational issue, the
status quo provision in so far as the need to wait the creation of a new agreement will not apply.

SUBSTITUTIONARY DOCTRINE – when there occurs a shift in employees’ union allegiance after the execution of a bargaining
contract with their employer, merely states that even during the effectivity of a collective bargaining agreement executed between
the employer and employees thru their agent, the employees can change said agent but the contract continues to bind them up to
its expiration date.
*They may bargain however for the shortening of said expiration date.

Example:

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Union X is the collective bargaining agent in Company B. On the 2 nd year of the existing CBA, Union Z filed a petition for cancellation
of registration of Union X based on Art. 247. The BLR cancelled Union X’s registration and it became final. In the certification election
held thereafter, Union Q won. Union Q will be the substitute union and it may not repudiate the existing CBA but may request for
that its lifetime be shortened.

Article 266
GR: No temporary or permanent injunction or restraining order in any case involving or growing out of labor disputes shall be issued
by any court or other entity.
XPN: As provided in Articles 218 and 264 of the Labor Code.

Halaguena vs. PAL

The dispute concerns the terms and conditions of employment in PAL, specifically the retirement age. The said issue cannot be
resolved solely by applying the Labor Code. Rather it requires the application of the Constitution, labor statutes, law on contracts
and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), and the power to apply and
interpret the Constitution and the CEDAW is within the jurisdiction of trial courts.

Not every controversy or money claim by an employee against the employer or vice-versa is within the exclusive jurisdiction of the
Labor Arbiter. Actions between employees and employer where the employer-employee relationship is merely incidental and the
cause of action precedes from a different source of obligation is within the exclusive jurisdiction of the regular court.

BARGAINING UNIT – group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of
the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit.

Tests to determine whether an employee belongs to the bargaining unit:

(1) The Globe Doctrine – the express will or desire of the employees shall be considered, they should be allowed to determine for
themselves what union to join or form.
(2) The Community of Interest Rule – the community or affinity of employees’ interest, such as substantial similarity of work and
duties, or similarity of compensation and working conditions in a unit is the determining factor whether or not these employees
belong to one bargaining unit.
(3) Prior collective bargaining history
(4) Employment status – such as temporary, seasonal and probationary employees

Modes of determining the exclusive bargaining agent of the employees in a business:

(1) CERTIFICATION ELECTION – process of determining through secret ballot the sole and exclusive representative of the employees
in an appropriate bargaining unit for purposes of collective bargaining or negotiation. It is ordered by the DOLE.

● Double majority rule: 1. Majority of the bargaining unit must have voted; and 2. The winning union must have garnered majority
of the valid votes

Failure of election – where the number of votes cast in a certification or consent election is less than the majority of the number of
eligible voters and there are no materially challenged votes.

A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent election within
six (6) months form date of failure of election.

*No union as a choice in a certification election can win if this choice gets the majority of all valid votes cast in the said election. This
is premised on the fact that the right to join unions carries with it the right not to join any labor union.

● Run-off election – In a certification or consent election with three (3) or more choices, where such election results in none of the
three (3) or more choices receiving the majority of the valid votes cast; the labor unions receiving the two highest number of votes,
provided that the total number of votes for all contending unions is at least 50% of the number of votes cast.
*The “no union” shall not be a choice in a run-off election.

● Re-run election – when a certification, consent or run-off election results to a tie between the two choices, the election officer
shall immediately notify the parties of a re-run election. The election officer shall cause the posting of a notice of a re-run election

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within five (5) days from the certification, consent or run-off election. The re-run election shall be conducted within ten days after
the posting of notice.

Procedure in the challenge of votes

- The ballot of the voter who has been properly challenged during the pre-election conferences, shall be placed in an envelope which
shall be sealed by the Election Officer in the presence of the voter and the representatives of the contending unions.
- The Election Officer shall indicate on the envelope the voter’s name, the union challenging the voter, and the ground for the
challenge.
- The sealed envelope shall then be signed by the Election Officer and the representatives of the contending unions. The Election
Officer shall note all challenges in the minutes of the election proceedings and shall have custody of all envelopes containing the
challenged votes.
- The envelopes shall be opened and the question of eligibility shall be passed upon by the Mediator-Arbiter only if the number of
segregated votes will materially alter the results of the election.

(2) CONSENT ELECTION - process of determining through secret ballot the sole and exclusive representative of the employees in an
appropriate bargaining unit for purposes of collective bargaining or negotiation. It is voluntarily agreed upon by the parties, with or
without the intervention by the DOLE.

Petition in Unorganized Establishments

A certification election shall be automatically conducted by the Med-Arbiter upon the filing of a petition by any legitimate labor
organization.

(3) VOLUNTARY RECOGNITION – process by which a legitimate labor union is recognized by the employer as the exclusive bargaining
representative or agent in a bargaining unit, reported with the Regional Office.

SOLE AND EXCLUSIVE BARGAINING AGENT (SEBA)

Any legitimate labor organization may file a request for SEBA Certification in the Regional Office which issued its certificate of
registration or certificate of creation of chartered local.

● One-year Bar Rule – entry of voluntary recognition shall bar the filing of a petition for certification election by any labor
organization for a period of one (1) year from the date of entry of voluntary recognition.
Upon expiration of the one-year period, any legitimate labor organization may file a petition for certification election in the same
bargaining unit represented by the voluntarily recognized union, unless a CBA between the employer and voluntarily recognized
labor union was executed and registered with the Regional Office.

● Negotiation Bar Rule – once the negotiation for a new CBA has been commenced, a petition for certification election may no
longer be validly entertained by the DOLE.

● Deadlock Bar Rule – a petition for certification election can only be entertained if there is no impending deadlock submitted to
conciliation or arbitration or had become the subject of a valid notice of strike or lockout.

● Appeal Bar Rule – the filing of the memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any
certification election.

Article 270 – When an employer may file petition for certification election
When requested to bargain collectively, an employer may petition the Bureau of Labor Relations for an election. If there is no
existing certified CBA in the unit, the Bureau shall, after hearing, order a certification election.

All certification cases shall be decided within twenty (20) working days. The Bureau shall conduct a certification election within 20
days.

Article 271 – Employer as Bystander

In all cases, whether the petition for certification election is filed by an employer or a legitimate labor organization, the employer
shall not be considered a party thereto with a concomitant right to oppose a petition for certification election.

The employer’s participation shall be limited to:

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1. Being notified or informed of petitions of such nature; and
2. Submitting the list of employees during the pre-election conference should the Med-Arbiter act favorably on the petition.

Bystander Rule – employers are strangers to these proceedings. They are forbidden from influencing or hampering the employees’
rights under the law. They should not in any way affect, much less stay, the holding of a certification election by mere convenience
of filing an appeal with the labor secretary.

Article 272 – Appeal from certification election orders

The order granting the conduct of a certification election in an organized establishment and the decision dismissing or denying the
petition, whether in an organized or unorganized establishment, may be appealed to the Office of the Secretary within ten (10) days
from receipt thereof. The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically stating the
grounds relied upon by the appellant with the supporting arguments and evidence.

Appeal shall be decided within fifteen (15) days.

Article 273 – Grievance machinery and voluntary arbitration

- Established by the parties and included in the provisions of the CBA.

GRIEVANCE – any question by either the employer or the union regarding the
1. interpretation or implementation of any provision of the CBA or
2. interpretation or enforcement of company personnel policies

In the absence of applicable provision in the CBA, a grievance committee shall be created within ten (10) days from signing of the
CBA. The committee shall be composed of at least two (2) representatives each from the members of the bargaining unit and the
employer, unless otherwise agreed upon.

All grievances submitted to the grievance machinery which are not settled within seven (7) calendar days from the date of its
submission shall be automatically be referred to voluntary arbitration.

VOLUNTARY ARBITRATION – mode of settling labor-management disputes by which the parties select a competent, trained and
impartial third person who shall decide on the merits of the case and whose decision is final and executory.

◦ Compulsory Arbitration – settlement of labor disputes by a government agency which has the authority to investigate and to make
an award which is binding on all the parties, and where the parties are compelled to accept the resolution of their dispute through
arbitration by a third party.

Generally, the arbitrator is expected to decide only those questions expressly delineated by the submission agreement. He can
assume that he has the necessary power to make a final settlement since arbitration is the final resort for the adjudication of
disputes.

◦ Voluntary Arbitrator – any person accredited by the Board as such or any person named or designated in the CBA by the parties.

Article 274 Jurisdiction of Voluntary Arbitrators or Panel of Voluntary Arbitrators

1. All unresolved grievances arising from interpretation or implementation of any provision of the CBA;
2. Those arising from the interpretation or enforcement of company personnel policies;
3. Violations of a collective bargaining agreement;
4. Wage distortion issues arising from the application of any wage orders in organized establishments; and
5. Unresolved grievances arising from the interpretation and implementation of the productivity incentive programs under RA 6971.

GR: Violations of a CBA shall no longer be treated as unfair labor practice and shall be resolved as grievances under the CBA.
XPN: Those which are gross in character. (Which shall be within the jurisdiction of the Labor Arbiter)

Gross violations – flagrant and/or malicious refusal to comply with the economic provisions of the CBA.

WAGE DISTORTION – a situation where an increase in prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to

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effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of
differentiation.

Elements of Wage Distortion:

(1) Existing hierarchy of positions with corresponding salary rates
(2) Significant change in the salary rate of a lower pay class without a concomitant increase in the salary rate of a higher one
(3) Elimination of the distinction between the two levels
(4) Existence of the distortion in the same region of the country

*A wage distortion is a non-strikeable issue.

Correction of wage distortion

◦ Organized establishments – the employer and the union shall negotiate to correct the distortions. Any dispute arising from wage
distortions should be resolved through the grievance procedure, if it remains unsolved, voluntary arbitration.

◦ Unorganized establishments – employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom
shall be settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate branch of the NLRC.

*The NLRC, its regional branches and Regional Directors of the DOLE shall not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and shall immediately dispose and
refer the same to the appropriate grievance machinery or voluntary arbitration provided in the CBA.

*The Voluntary Arbitrators or panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other
labor disputes including unfair labor practice and bargaining deadlocks. May include termination disputes, provided the agreement
states in a clear and unequivocal language that the parties conform to the submission of termination disputes and unfair labor
practices to voluntary arbitration.

Article 276 – Procedures

Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrators or panel of Voluntary Arbitrators to render an
award or decision within twenty (20) calendar days from the date of submission of the dispute to voluntary arbitration. It shall be
final and executory after ten (10) calendar days from receipt of the award or decision by the parties.

Guagua National College vs. Court of Appeals, 2018

The 10-day period stated in Article 276 should be understood as the period within which the party adversely affected by the ruling of
the Voluntary Arbitrators or panel of Voluntary Arbitrators may file a motion for reconsideration. Only after the resolution of the
motion for reconsideration may the aggrieved party appeal to the CA by filing the petition for review under Rule 43 of the Rules of
Court within 15 days from notice.

Grievance >>> Grievance Machinery (decide within 7 days) >>> Voluntary Arbitration (decide within 20 days; final and executory
after 10 days but may file MR within this period) >>> Court of Appeals (Rule 43; 15 days) >>> Supreme Court (Rule 45; 15 days)

*The decisions of a voluntary arbitrator fall within the exclusive appellate jurisdiction of the Court of Appeals.

PHILEC vs. CA – Leonen

PHILEC filed before the CA a petition for certiorari under Rule 65 of the Rules of court against the Voluntary Arbitrator’s decision.
This was not the proper remedy. Instead, the proper remedy to reverse or modify a Voluntary Arbitrator’s or a panel of Voluntary
Arbitrator’s decision or award is to appeal before the CA based on Rule 43 of the Rules of Court.

NATIONAL CONCILIATION MEDIATION BOARD (NCMB)

- Has jurisdiction over conciliation, mediation and voluntary arbitration cases
- Performs preventive mediation and conciliation functions
- Administers the voluntary arbitration program; maintains/updates a list of voluntary arbitrators; compiles arbitration awards and
decisions; and provides counseling and preventive mediation assistance particularly in the administration of collective agreements.

*The NCMB has no coercive powers of injunction.

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*The parties to a CBA shall provide therein a proportionate sharing scheme on the cost of voluntary arbitration including the
Voluntary Arbitrator’s fee.

Article 278 – Strikes, picketing and lockout

STRIKE – temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute.

*Strike is recognized and protected by our labor laws only when waged on account of a labor dispute, In the absence thereof, the
employees who engage themselves in work stoppage commit an illegal strike and should face the consequences thereof.

Collective bargaining deadlock – situation between the labor and the management of the company where there is failure in the
collective bargaining negotiations resulting in a stalemate.

Forms of Strike
1. Economic strike – demand higher wages, overtime pay, holiday pay, vacation pay, and other economic benefits. Collective
bargaining deadlock is the cause of the strike.
2. ULP strike – staged to protest against the employer’s acts of unfair labor practice, including gross violation of the CBA and union
busting.
3. Legal strike – staged for valid purpose and conducted through means allowed by law.
4. Illegal strike – staged for a purpose not recognized by law, or, if for a valid purpose, conducted through violation of the law.
5. Slow down strike – willful reduction in the rate of workers for the purpose of restricting the output of the employer in relation to
a labor dispute; as an activity by which workers, without complete stoppage of work, retard production of their performance of
duties and functions to compel management to grant their demands. It is generally condemned as inherently illicit and unjustifiable.
6. Quickie strike – brief and unannounced temporary work stoppage that is closely related to slow down strike. One of the forms of
illegal strikes.
7. Wildcat strike – staged without the approval of the majority of the members of the recognized bargaining agent. It constitutes a
violation of an existing CBA, so the strike is not protected unless the whole union joins them and ratifies the protest.
8. Sit down strike – where the workers stop working but do not leave their place of work.
9. Sympathy strike – kind of work strike staged by the workers of one company to make common cause with the strikes of other
companies without demands or grievances of their own against their employer. This is an illegal strike because there is no labor
dispute between the workers who are joining the strikes and the latter’s employer.

REQUISITES OF A VALID STRIKE:

1. Valid ground
◦ Bargaining deadlock
◦ Unfair labor practice
◦ Union busting – dismissal from employment of any union officer duly elected in accordance with the union constitution
and by-laws.
2. Notice of strike with the NCMB 30 days before the intended date thereof, 15 days in case of ULP
(In case of union busting, the time requirement for the filing of notice shall be dispensed with but the strike vote requirement,
mandatory in character, shall in every case be complied with.)
3. Cooling-off period – 30 days for economic strike and 15 days for ULP, no cooling-off period required for union busting.
4. Strike vote approved by majority of the total union membership in the bargaining unit concerned obtained by secret ballot in a
meeting called for that purpose. (Notify the NCMB within 24 hours prior the conduct of strike vote)
5. Strike vote report filed to the NCMB of the results of the voting at least seven (7) days before the intended strike.
6. Seven-day strike ban from the time the notice of the results of the strike vote is given to the NCMB.

Cooling-off period + 7-day strike ban (waiting period)

*In the event the result of the strike/lockout ballot is filed within the cooling-off period, the 7-day requirement shall be counted
from the day following the expiration of the cooling-off period.
*The requirements of cooling-off period and 7-day strike ban must both be complied with, although the labor union may take a
strike vote and report the same within the statutory cooling-off period.

*The requisites are mandatory, and union’s failure to comply renders the strike illegal.

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Examples:

Notice of strike - June 1  NCMB

Cooling-off period – June 1 – July 1
Strike Vote – June 20
Strike Vote Report – June 21
Strike Ban – June 21 – 28
Valid Strike to Strike – July 8 (End of colling-off period is July 1 + 7 days strike ban)

Notice of strike - June 1  NCMB

Cooling-off period – June 1 – July 1
Strike Vote – July 1
Strike Vote Report – July 2
Strike Ban – July 2 - 9
Valid Strike to Strike – July 9

Illegal Strike Despite Compliance with the Requisites

Despite the validity of the purpose of a strike and compliance with the procedural requirements, a strike may still be held illegal
where the means employed are illegal.

No person engaged in picketing shall commit any act of violence, coercion or intimidation or obstruct the free ingress or engress
from the employer’s premises for lawful purposes, or obstruct public thoroughfares.

Consequences of illegal strike

For union officers, knowingly participating in an illegal strike is a valid ground for termination of their employment.
But, for union members who participated in a strike, their employment may be terminated only if they committed prohibited and
illegal acts during the strike and there is substantial evidence or proof of their participation.

Capitol Medical Center vs. Trajano

Strikes and lockouts in hospitals, clinics and similar medical institutions shall, to every extent possible, be avoided, and all serious
efforts, not only by labor and management but government as well, be exhausted to substantially minimize, if not prevent, their
adverse effects on such life and health, through the exercise legitimate, by labor of its right to strike.

In labor disputes adversely affecting continued operation of such hospitals, clinics or medical institutions, it shall be the duty of the
striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health
personnel.

Power to assume jurisdiction by the Secretary of Labor and Employment

When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry indispensable to
national interest, the Secretary of Labor and Employment may:
(1) assume jurisdiction over the dispute and decide it or
(2) certify the same to the Commission for compulsory arbitration with the NLRC.

Such assumption or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as
specified in the assumption or certification order. If one has already taken place at the time of assumption or certification, all striking
or locked out employees shall immediately return-to-work and the employer shall immediately resume operations and readmit all
workers under the same terms and conditions prevailing before the strike or lockout.

*Even the President of the Philippines may assume jurisdiction.

*The Secretary and the President has discretion to determine what industries are indispensable to national interest.

Samahan ng mga Manggagawa sa Komunikasyon vs. PLDT

Return-to-work and reinstatement orders are both immediately executory; however, a return-to-work order is interlocutory in
nature, and is merely meant to maintain status quo while the main issue is being threshed out in the proper forum. In contrast, an
order of reinstatement is a judgment on the merits handed down by the Labor Arbiter pursuant to its original and exclusive
jurisdiction.

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*The discretion to assume jurisdiction may be exercised by the Secretary of Labor and Employment without the necessity of prior
notice or hearing given to any of the parties.

Assumption of Jurisdiction is Based on Police Power

The powers granted to the Secretary under Article 263(g) of the Labor Code have been characterized as an exercise of the police
power of the State, with the aim of promoting public good. When the Secretary exercises these powers, he is granted “great breadth
of discretion in order to find a solution to a labor dispute.

LOCKOUT – any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.
*The same requisites with strike.
*Lockout vote must be approved by majority of the board of directors of the corporation or association or of the partners in a
partnership.

*Prohibited activities are found under Article 279 of the Labor Code.

PICKETING – right of workers to peacefully march to and fro before an establishment involved in a labor dipute generally
accompanied by the carrying and display of signs, placards and banners intended to inform the public about the dispute as well as
their grievances.

Article 280 – Improved offer balloting

In an effort to settle a strike, the DOLE shall conduct a referendum by secret ballot on the improved offer of the employer on or
before the 30th day of strike. When at least majority of the union members vote to accept the improved offer, the striking workers
shall immediately return to work and the employer shall thereupon admit them upon the signing of the agreement.

Reduced offer balloting

In case of lockout, the DOLE shall also conduct a referendum by secret ballot on the improved offer of the employer on or before the
30th day of the lockout. When at least majority of the board of directors or trustees or the partners holding the controlling interest in
the case of a partnership, vote to accept the reduced offer, the workers shall immediately return to work and the employer shall
thereupon readmit them upon the signing of the agreement.

Article 284
GR: All aliens, natural or juridical, as well as foreign or organizations are strictly prohibited from engaging directly or indirectly in all
forms of trade union activities without prejudice to normal contracts between Philippine labor unions and recognized international
labor centers.
XPN: Aliens working in the country with valid permits issued by the DOLE that said aliens are nationals of a country which grants the
same or similar rights to Filipino workers.

Article 285
No foreign individual, organization or entity may give any donations, grants or other forms of assistance, in cash or in kind, directly
or indirectly, to any labor organization, group of workers or any auxiliary thereof without prior permission by the Secretary of Labor.

REPUBLIC ACT NO. 10395

National Tripartite Industrial Peace Council (NTIPC) – headed by the Secretary of DOLE; 20 representatives each from the labor and
employers’ sectors to be designated by the President at regular intervals.

Article 291 – Government Employees

The terms and conditions of employment of all government employees, including employees of GOCCs with original charter, shall be
governed by the Civil Service Law, rules and regulations.
*GOCCs without original charter are covered by the Labor Code.

*No docker fee shall be assessed in labor standards disputes.

EMPLOYER-EMPLOYEE RELATIONSHIP
Four-fold Test:
(1) Power of selection and engagement of employees
(2) Control of the employee with respect to the means and methods by which work is to be accomplished

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(3) Power to dismiss and discipline employees
(4) Payment of employee’s wages

Gabriel vs. Bilon

The relationship between jeepney owners/operators and jeepney drivers under the boundary system is that of employer-employee
and not of lessor-lessee because in the lease of chattels the lessor loses complete control over the chattel leased although the lessee
cannot be reckless in the use thereof, otherwise he would be responsible for the damages to the lessor.
In case of jeep owners/operators and jeepney drivers, the former exercises supervision and control over the latter.

Article 294 – Security of tenure

In case of regular employment, the employer shall not terminate the services of an employee except for a just cause or when
authorized by this title.

An employee who is unjustly dismissed from work shall be entitled to:

- Reinstatement without loss of seniority rights and
- other privileges and to his full backwages, inclusive of allowances and to his other benefits
counted from the time his compensation was withheld form him up to the time of his actual reinstatement.

SECURITY OF TENURE – right of every employee not to be dismissed without just or authorized cause and in the absence of due
process.

Rodriguez vs, Park N Ride – Leonen

There is constructive dismissal when an employer’s act of clear discrimination, insensibility or disdain becomes so unbearable on the
part of the employee so as to foreclose any choice on his part except to resign from such employment. It exists where the is
involuntary resignation because of the harsh, hostile and unfavorable conditions set by the employer.

The standard for constructive dismissal is “whether a reasonable person in the employee’s position would have felt compelled to
give up his employment under the circumstances.”

When the strong words from the employer happen without palpable reason or are expressed only for the purpose of degrading the
dignity of the employee, then a hostile work environment will be created.

Probationary employees are entitled to security of tenure

Escorpizo vs. University of Baguio

Employees who are on their period of probation enjoy security of tenure in the sense that during their probationary employment
they cannot be dismissed, except for a cause. However, upon expiration of their contract of employment, probationary academic
personnel cannot claim security of tenure and compel their employers to renew their employment contacts.

Award of reinstatement and backwages

An employee who has been illegally dismissed shall be entitled to:
(1) reinstatement;
(2) full backwages; and
(3) other benefits
for the entire period he was out of work and until actual reinstatement.

Paz vs. Northern Tobacco Co. – Leonen

An award of full backwages is inclusive of allowances and other benefits or their monetary equivalent, from the time their actual
compensation was withheld up to the time of their actual reinstatement. Backwages, considered as actual damages, requires proof
of the loss suffered.

Protective Maximum Sec. Agency vs. Fuentes – Leonen

The period of computation of backwages commenced from the date petitioner refused to allow respondent to return to work, and
not from the date the charges against respondent were dismissed.

Computation of backwages

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The base figure to be used in reckoning the full backwages is the salary rate of the employee at the time of dismissal.

The amount does not include the increases or benefits granted during the period of his dismissal because time stood still for him at
the precise moment of his termination, and move forward only upon his reinstatement. He should only receive backwages that
included the amounts being received by him at the time oh his illegal dismissal but not the benefits granted to his co-employees
after dismissal.

Computation of backwages if reversed by the Court

Period for computing the backwages due to the respondents during the period of appeal should end on the date that a higher court
reversed the labor arbitration ruling of illegal dismissal.

Instances when an illegally dismissed employee may be awarded separation pay in lieu of reinstatement:
1. Old age (force retirement age)
2. The position no longer exists
3. Establishment is taken over by another company
4. Insolvency of the employer
5. Closure of business
6. Strained relations

Sargasso Construction vs. NLRC

In addition to full backwages, in cases where reinstatement is no longer feasible due to strained relations, then separation pay may
be awarded instead of reinstatement. Separation pay should be equivalent to one (1) month salary for every year of service.

DOCTRINE OF STRAINED RELATIONS – the payment of separation pay is considered an acceptable alternative to reinstatement
when the latter option is no longer desirable or viable. On one hand, such payment liberates the employee from what could be a
highly oppressive work environment. On the other hand, it releases the employer from the grossly unpalatable obligation of
maintaining in its employ a worker it could no longer trust.

Kinds of Employees
1. Regular employees – engaged to perform activities which are usually necessary and desirable in the usual business or trade of the
employer.
- Any employee who has rendered at least one year of service, whether such service is continuous or broken.
2. Project employees – those whose employment has been fixed for a specific project or undertaking, the completion or termination
of which has been determined at the time of the employees’ engagement.
3. Seasonal employees – perform services which are seasonal in nature, and whose employment lasts during the duration of the
season.
4. Casual employees – engaged to perform functions which are not necessary and desirable to the usual business and trade of trade
of the employer.
5. Fixed-term employees – hired only for a definite period of time. (based on jurisprudence)

Maraguinot vs. NLRC

If there is continuous rehiring for the same tasks or nature of tasks under different projects, which tasks are vital, necessary and
indispensable to the usual business or trade of the employer, an employee who was initially hired as a project employee may
eventually acquire regular status.

Parajele vs. GMA Network, July 13, 2020 - Leonen

Only casual employees performing work that is neither necessary nor desirable to the usual business and trade of the employer are
required to render at least one (1) year of service to attain regular status. Employees who perform functions which are necessary
and desirable to the usual business and trade of the employer attain regular status from the time of engagement.

“Project” could refer to one or the other of at least two (2) distinguishable types of activities.
Firstly, a project could refer to a particular job or undertaking that is within the regular or usual business of the employer company,
but which is distinct and separate, and identifiable as such, from the other undertakings of the company. Secondly, it could also refer
to, secondly, a particular job or undertaking that is not within the regular business of the corporation. Such job or undertaking must
also be identifiably separate and distinct from the ordinary or regular business operations of the employer, and begins and ends at
determined or determinable times

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*Repeated rehiring of project employees to different projects does not ipso facto make them regular employees. The length of
service through rehiring is not the controlling determinant of the employment tenure of project-based employees, but “whether the
employment has been fixed for a specified project or undertaking, with its completion having been determined at the time of their
engagement.”

Feati University vs. Bautista

A university controls the work of the members of its faculty; a university prescribes the courses or subjects that professors teach,
and when and where to teach. The professor’s work is characterized by regularity and continuity for a fixed duration.

Universal Robina vs. Acibo

When the “seasonal” workers are continuously and repeatedly hired to perform the same tasks or activities for several seasons or
even after the cessation of the season, this length of time may likewise serve as a badge of regular employment. Even though
denominated as “seasonal workers”, if these workers are called to work from time to time and are only temporarily laid off during
the off-season, the law does not consider them separated from the service during the off-season period. The law simply considers
these seasonal workers on leave until re-employed.

Article 296 – Probationary Period

The probationary employment shall not exceed six months from the date the employee started working, unless it is covered by an
apprenticeship agreement stipulating a longer period.

The services of an employee who has been engaged in a probationary basis may be terminated for a just cause or when he fails to
qualify as a regular employee in accordance with reasonable standard made known by the employer to the employee at the time of
his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee.

*Probationary employees also enjoy security of tenure.

*In all cases involving employees on probationary status, the employer shall make known to the employee at the time he is hired,
the standards by which he will qualify for the positions applied for.

Probationary period for private school teachers

The probationary period for academic personnel shall not be more than:
◦ Three (3) consecutive years of satisfactory service for those in the elementary and secondary levels
◦ Six (6) consecutive regular trimesters of satisfactory service for those in the tertiary levels
◦ Nine (9) consecutive trimesters of satisfactory service for those in the tertiary level where collegiate courses are offered on the
trimester basis

Legal requisites for acquisition by a teacher of permanent employment, or security of tenure:

1. Teacher is a full-time teacher;
2. Must have rendered three (3) consecutive years of service; and
3. Such service must have been satisfactory.

Full-time teacher – whose total working day is devoted to the school, has no other remunerative employment, paid on a regular
monthly basis regardless of number of teaching hours, and that in college, the nominal teaching load shall be eighteen (18) hours a
week.

University of La Salette of Santiago, Inc., vs. NLRC

Teachers appointed to serve as administrative officials do not normally, and should not expect to, acquire a second or additional
tenure. The acquisition of such an additional tenure is not normal, is the exception rather than the rule and should therefore be
clearly specifically provided by the law or contract.

Grounds for Termination of Probationary Employees

1. Just cause; or
2. When he fails to qualify as regular employee in accordance with the reasonable standards made known by the employer to the
employee at the time of his engagement.

*Double probationary period is illegal.

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Hiring and Firing Employees
The employer has absolute discretion in hiring his employees in accordance with his standards of competence and probity. This is his
prerogative. Once hired, however, the employees are entitled to the protection of the law even during the probation period and
more so after they have become members of the regular force.

MANAGEMENT PREROGATIVE – right of the employer to regulate all aspects of employment, such as the freedom to prescribe work
assignments, working methods, processes to be followed, regulation regarding transfer of employees, supervision of their work, lay-
off and discipline, and dismissal and recall of work, presupposing the existing of employer-employee relationship.

Adamson University Faculty Union vs. Adamson University, March 9, 2020 - Leonen
An employer’s management prerogative to dismiss and employee is valid as long as it is done in good faith and without malice. It is
the prerogative of management to regulate, according to its discretion and judgment, all aspects of employment.
Philippine Airlines, Inc. vs. Joselito Pascua
The exercise of management prerogative is not absolute. While it may be conceded that management is in the best position to know
its operational needs, the exercise of management prerogative cannot be utilized to circumvent the law and public policy on labor
and social justice.

Management’s right to penalize employees

Infractions committed by an employee should merit only the corresponding sanction demanded by the circumstances. The penalty
must be commensurate with the act, conduct or omission imputed to the employee and imposed in connection with the employer’s
disciplinary authority.

Preventive suspension
The employer may place the worker concerned under preventive suspension if his continued employment poses a serious and
imminent threat to the life or property of the employer or of his co-workers.

No preventive suspension shall last longer than 30 days. The employer shall thereafter reinstate the worker in his former or in a
substantially equivalent position or the employer may extend the period of suspension provided that during the period of extension,
he pays the wages and other benefits due to the worker.

Grounds for validly terminating the services of an employee based on JUST CAUSE
1. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection
with his work.
*Misconduct – improper or wrong conduct. It is the transgression of some established and definite rule of action, a
forbidden act, a dereliction of duty, willful in character and implies wrongful intent and not mere error of judgment.
*Misconduct to be serious must be of such grave and aggravated character and not merely trivial or unimportant.

Example: Sexual harassment committed by a person with moral ascendancy over his victim.

2. Gross and habitual neglect by the employee of his duties.

*Implies a want or absence of or failure to exercise slight care or diligence, or the entire absence of care. The negligence, to
warrant removal from service, should not merely be gross but also habitual.

3. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative.
*For loss of trust and confidence to be a valid ground for dismissal of an employee, it must be substantial and founded on
clearly established facts, sufficient to warrant the employee’s separation from employment.
*Employee must be holding a position of trust and confidence.

4. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or
his duly authorized representative.
*Should be in connection to the work of the employee.

5. Other causes analogous to the foregoing.

◦ Abandonment – deliberate and unjustified refusal of an employee to resume his employment; a form of neglect of duty.
Elements:
(1) Failure of the employee to report to work without a valid and justifiable reason; and

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 (2) Existence of overt acts which show that the employee has no intention to return to work.

Chua-Qua vs. Clave - (30-year-old teacher married the 16-year-old student)

If the two eventually fell in love, despite the disparity in their ages and academic levels, this only lends substance to the truism that
the heart has reasons of its own which reason does not know. But, definitely, yielding to this gentle and universal emotion is not to
be so casually equated with immorality. The deviation of the circumstances of their marriage from the usual societal pattern cannot
be considered as a defiance of contemporary social mores.

LBC vs. Mateo - (LBC rider left the motor vehicle without locking it and it was thereafter stolen)
An employer cannot legally be compelled to continue with the employment of a person admittedly guilty of gross negligence in the
performance of his duties.

What happened was not a simple case of oversight and could not be attributed to a simple lapse of oversight and could not be
attributed to a simple lapse of judgment. No amount of good intent, or previous conscientious performance of duty can assuage the
damage Mateo caused LBC when he failed to exercise the requisite degree of diligence required of him under the circumstances.

Due Process for Dismissing Employees

Two notices requirement
1. Notice informing the employee of his acts or omissions which are deemed violations of the law or the company rules and
regulations;
2. Notice informing him of the decision of the employer to terminate his employment.
Hearing requirement
3. Opportunity to be heard

Bravo vs. Urios College – Leonen

In termination based on just cause, the employer must comply with procedural due process by furnishing the employee a written
notice containing the specific grounds or causes for dismissal. The notice must also direct the employee to submit his or her written
explanation within a reasonable period from the receipt of the notice.

Afterwards, the employer must give the employee ample opportunity to be heard and defend himself or herself. A hearing,
however, is not a condition sine qua non.

*While the phrase “ample opportunity to be heard” may in fact include an actual hearing, it is not limited to a formal hearing only.

*The burden to prove a just cause for dismissal must be met by the employer.

Hubilla vs. HSY Marketing Ltd., January 10, 2018 – Leonen

Where both parties in a labor case have not presented substantial evidence to prove their allegations, the evidence is considered to
be in equipoise. In such a case, the scales of justice are tilted in favor of labor.

Grounds for validly terminating the services of an employee based on AUTHORIZED CAUSE
1. Installation of labor-saving device
*Payment of separation pay equivalent to at least one pay or at least one month pay for every year of service, whichever is
higher
2. Redundancy – the services of an employee are in excess of what is reasonably demanded by the actual requirements of the
enterprise.
Requisites:
(i) written notice served on both the employees and the DOLE at least one month prior the intended date of redundancy
(ii) payment of separation pay equivalent to at least one pay or at least one month pay for every year of service, whichever
is higher
(iii) good faith in abolishing the redundant positions
(iv) fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished
3. Retrenchment to prevent losses
*Payment of separation pay equivalent to at least one pay or at least 1/2 month pay for every year of service, whichever is
higher. A fraction of at least six (6) months is considered as one whole year.
4. Closing or cessation of operation of the establishment or undertaking

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 *No separation pay in case of retrenchment due to closure or cessation of operations of establishment due to serious
business losses or financial reverses.
5. Employee suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well
as to the health of his co-employees
Requisites:
(i) An employee suffering from any disease
(ii) His continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees
(iii) A competent public health authority certifies that the disease is of such nature or at such a stage that it cannot be cured
within a period of six (6) months even with proper medical treatment.
*Payment of separation pay equivalent to at least one pay or at least 1/2 month pay for every year of service, whichever is
higher. A fraction of at least six (6) months is considered as one whole year.

CAUSE (Just/Authorize) DUE PROCESS DISMISSAL

Yes Yes Legal
No No Illegal
No Yes Illegal
Yes No Ineffectual

Ineffectual Dismissal – the failure to hear the employee before he is dismissed renders the termination of his employment without
legal effect and therefore, be struck down as ineffectual.
*The employer is liable for the payment of indemnity in the form of nominal damages, the amount of which would be addressed to
the sound discretion of the court.

Termination by Employee
An employee may terminate without just cause the employer-employee relationship by serving a written notice on the employer at
least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.

An employee may put an end to the employer-employee relationship WITHOUT NOTICE on the employer for any of the following
just causes:
(1) Serious insult by the employer or his representative on the honor and person of the employee;
(2) Inhuman and unbearable treatment accorded the employee by the employer or his representative;
(3) Commission of a crime or offense by the employer or his representative against the person of the employee or any of the
immediate members of his family;
(4) Other causes analogous to the foregoing.

GR: An employee who voluntarily resigns from employment is not entitled to separation pay.
XPNS: (1) There is a stipulation for payment of such in the employment contract or collective bargaining agreement; or
(2) Payment of the amount is sanctioned by established employer practice or policy.

Article 301 – When employment not deemed terminated

The bona fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment
by the employee of a military or civic duty shall not terminate employment.

Padilla vs. Airbone Security Service – Leonen

The practice of placing security guards on “floating status” or “temporary off-detail” is a valid exercise of management prerogative.
The period of temporary off-detail must not exceed six (6) months. Beyond this, a security guard’s floating status shall be
tantamount to constructive dismissal.

Temporary displacement or off-detail of a security guard is, generally, allowed in a situation where a security agency’s client decided
not to renew their service contract with the agency and no post is available for the relieved guard. Such situation does not normally
result in constructive dismissal.

Article 302 – Retirement Pay

In the absence of a retirement plan or agreement providing for retirement benefits, an employee may retire at the age of sixty (60)
years or more, but not beyond sixty-65 (65) years which is hereby declared as the compulsory age, has served at least five (5) years

25
in the establishment, and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of
service, a fraction of at least six (6) months being considered as one whole year.

*One-half month salary: 15 days + 1/12 of the 13 th month pay and the cash equivalent of not more than 5 days of service incentive
leaves = 22.5 days

*Retirement age for underground and surface miners is 50-60 years old, 60 years old is the compulsory retirement age.

Jaculbe vs. Silliman University

An employer is free to impose a retirement age less than 65 years for as long as it has the employees’ consent.
Having terminated the petitioner solely on the basis of a provision of a retirement plan which was not freely assented to by her,
respondent was guilty of illegal dismissal.
Cercado vs Uniprom, Inc.
Acceptance by the employees of an early retirement age option must be explicit, voluntary, free, and uncompelled. While an
employer may unilaterally retire an employee earlier than the legally permissible ages under the Labor Code, this prerogative must
be exercised pursuant to a mutually instituted early retirement plan.

Article 306 – Prescription of Action

◦ Illegal dismissal – 4 years
◦ Claim for backwages – 4 years
◦ Money claims arising from employer-employee relationship – 3 years
(If pure money claim does not arise from employer-employee relationship – 10 years based on the Civil Code)

LABOR LAW
LABOR STANDARDS AND SOCIAL LEGISLATION

*In the hierarchy of rights, workers’ right is considered as human rights.

◦ State affirms labor as a primary social economic force

◦ State shall protect the rights of workers; and
◦ Promote their welfare

Article XIII, Section 3 of the 1987 Philippine 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 on investments, and to expansion and growth.”

Employer-Employee Relationship
- By operation of law
- Not by parties’ agreement
- Not dependent on compensation

Tongko vs. Manufacturers Life Insurance

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Guidelines indicative of labor law “control,” should not merely relate to the mutually desirable result intended by the contractual
relationship; they must have the nature of dictating the means or methods to be employed in attaining the result, or of fixing the
methodology and of binding or restricting the party hired to the use of these means.

Bernante vs. PBA

PBA Referees are not employees. The contractual stipulations do not pertain to, much less dictate, how and when the referees will
blow the whistle and make calls. They merely serve as rules of conduct or guidelines in order to maintain the integrity of the
professional basketball league.

Officer vs. Employee

A position must be expressly mentioned in the By-Laws in order to be considered as corporate office. Thus, the creation of an office
pursuant to or under a By-Law enabling provision is not enough to make a position a corporate office.
The criteria for distinguishing between corporate officers who may be ousted from office at will, on one hand, and ordinary
corporate employees who may only be terminated for just cause, on the other hand, do not depend on the nature of the services
performed, but on the manner of creation of the office.

Fulache vs. ABS-CBN

Production assistants, drivers/cameramen, security guards, are not “talents.” They are employees.

Article 58 - Apprentice
Apprenticeship – practical training on the job
Apprentice – worker who is covered by a written apprenticeship agreement with an individual employer
Apprenticeable occupation – any trade, form of employment or occupation which requires more than three (3) months of practical
training on the job supplemented by related theoretical instruction.
Apprenticeship agreement – employment contract wherein the employer binds himself to train the apprentice and the apprentice in
turn accepts the terms of training.

*The Secretary of DOLE may authorize the hiring of apprentices without compensation whose training on the job is required by the
school or training program curriculum or as a requisite for graduation or board examination.

Atlanta Industries vs. Sebolino

The fact that the workers were already rendering service to the company when they were made to undergo apprenticeship renders
the apprenticeship irrelevant as far as the employees are concerned, especially since, prior to the apprenticeship, the employees
performed tasks that were usually necessary and desirable to the company’s usual business. Even assuming that there was a valid
apprenticeship, the expiration of the first agreement and the retention of the employees was a recognition by the employer of their
training and acquisition of a regular employee status.

Article 73 – Learners
Person hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned
through practical training on the job in a relatively short period of time which shall not exceed three months.

Article 136 – Women Workers

Any woman who is permitted or suffered to work with or without compensation in any night club, cocktail lounge, massage clinic,
bar or similar establishment, under the effective control or supervision of the employer for a substantial period of time as
determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishments for purposes of
labor and social legislation.

Regulating Contracting
The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the contracting out of labor to protect
the rights of workers. He may make appropriate distinctions between labor-only contracting and job contracting as well as
differentiations within these types of contracting, and determine who among the parties involved shall be considered the employer,
to prevent any violation or circumvention of any provisions of the Labor Code.

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Labor-only contracting – person supplying workers to an employer does not have substantial capital or investment in the form of
tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing
activities which are directly related to the principal business of such employer.

*Substantial capital: P5,000,000.00

*Labor-only contracting is prohibited.

*The person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the
same manner and extent as if the latter were directly employed by him.

Liability for Wages

In the event that the contractor or sub-contractor fails to pay the wages of his employees, the employer shall be jointly and
severally liable with his contractor or sub-contractor to such employees to the extent of the work performed under the contract, in
the same manner and extent that he is liable to employees directly employed by him.

*The employer will not be excused if already paid the contractor in full.

Solidary Liability
Every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision
of the Labor Code.
*Applicable only to situations where the principal or employer directly participated or connived in the commission of the violation.

In legitimate contracting or subcontracting arrangement there exists:

(a) An employer-employee relationship between the contractor and the employees if it engaged to perform the specific job, work or
service being contracted; and
(b) A contractual relationship between the principal and the contractor as governed by the provisions of the Civil Code.

Coca-Cola Bottlers vs. Agito

Mere compliance with the substantial capital requirement will not suffice for a contractor to be considered a legitimate contractor. If
the workers supplied by the contractor work alongside the principal’s regular employees who are performing identical work, such is
an indicium of labor-only contracting.

It is the totality of the facts and the surrounding circumstances of the case which is determinative of the parties’ relationship.
Several factors may be considered.

Quintamar vs. Coca-Cola Bottlers

The possession of sufficient capital is only one element. Labor-only contracting exists when any of the two elements is present. Even
if the contractor had more than sufficient capital or investment in the form of tools, equipment, machineries, work premises, still it
cannot be denied that the workers were performing activities which where directly related to the principal business of such
employer.

Effect of Illicit arrangements

In the event that there is a finding that the contractor or subcontractor is engaged in labor-only contracting and other illicit forms of
employment arrangements, the principal shall be deemed the direct employer of the contractor’s or subcontractor’s employees.

Effect of Termination of Employment

The mere expiration of the Service Agreement shall not be deemed as a termination of employment of the
contractor’s/subcontractor’s employees who are regular employees of the latter.

Where the termination result from the expiration of Service Agreement, or from the completion of the phase of the job or work for
which the employee is engaged, the latter may opt to wait for re-employment within three (3) months to resign and transfer to
another contractor-employer. Failure of the contractor to provide a new employment for the employee shall entitle the latter to
payment of separation benefits as may be provided by law or the Service Agreement, whichever is higher, without prejudice to
his/her entitlement to completion bonuses or other emoluments, including retirement benefits whenever applicable.

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Mandatory Registration
It shall be mandatory for all persons or entities acting as contractors to register with the Regional Office of the DOLE where it
principally operates. Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.

*The foregoing (D.O. No. 174) does not apply to BPOs and construction industry.

WAGE – paid to any employee shall mean the renumeration or earnings capable of being expressed in terms of money, whether
fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an
employer to an employee under a written or unwritten contract of employment for work done or to be done or for services
rendered or to be rendered.
*Includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of board, lodging or other
facilities customarily furnished by the employer to the employee.

Facility – for the benefit of the employee or his/her family

Supplement – for the benefit of the employer
*The nature of the articles or services is not the determining factor. A service may be a facility or a supplement depending on who is
primarily benefited.

The Regional Tripartite Wages and Productivity Boards (RTWPB)

-Determines and fixes the MINIMUM WAGE RATES applicable in their regions, provinces or industries.
-Issue wage orders.
-May issue wage orders which set the daily minimum wage rates.
-No authority to grant an across-the-board wage increase.

Two-Tiered Wage System – an approach to minimum wage setting which aims to improve the coverage of minimum wages;
promote worker and enterprise productivity and; address the negative effects of minimum wage policies.
Pay system consisting of:
(1) Minimum wage; and (2) Incentive pay based on productivity improvement and gainsharing

Forms of Payment of Wages

No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits or any
object other than LEGAL TENDER, even when expressly requested by the employee.
*Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity
of the Labor Code or is necessary because of special circumstances as specified in appropriate regulations to be issued by the
Secretary or is stipulated in a collective bargaining agreement.

Time and place of payment

Wages shall be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days.
Shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary may prescribe
under conditions to ensure greater protection of wages.

Prohibitions:
(1) Non-interference in disposal of wages
(2) Wage deduction
(3) Deposits for loss or damage
(4) Withholding of wages and kickbacks
(5) Deduction to ensure employment
(6) Retaliatory measures
(7) False reporting

Worker preference
In the event of bankruptcy or liquidation of an employer’s business, his workers shall enjoy first preference as regards their unpaid
wages and other monetary claims, any provision of law to the contrary notwithstanding. Such unpaid wages and monetary claims
shall be paid in full before the claims of the Government and other creditors may be paid.

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13th Month Pay
GR: All employers are required to pay their rank-and-file employees thirteenth-month pay, regardless of the nature of their
employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during
the calendar year.

*Should be given not later than December 24 of every year.

*Not be less than 1/12 of the total basic salary earned by an employee in a calendar year. The “basic salary” shall include all
remunerations or earnings paid by his or her employer for services rendered. It does not include allowances and monetary benefits
which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick
leave credits, overtime, premium, night shift differential and holiday pay, and cost of living allowance.

XPN: Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for
performing specific work, irrespective of the time consumed in the performance thereof.
XPN to XPN: Where the workers are paid on piece rate basis in which case the employer shall grant the required 13 th month pay to
such workers.

Service Charges
GR: All service charges collected by hotels, restaurants and similar establishments shall be distribute completely and equally among
the covered workers.
XPN: Managerial employees

*In the event that the minimum wage is increased by law or wage order, service charges paid to the covered employees shall not be
considered in determining the employer’s compliance with the increased minimum wage.

Hours of Work
◦ Normal hours of work – shall not exceed eight (8) hours in a day

*Health personnel in cities/municipalities with a population of at least one million or in hospitals or clinics with a bed capacity of at
least one hundred shall hold regular office hours for eight hours a day for five (5) days a week, or a total of forty (40) hours a week,
exclusive of time for meals, except where the exigencies of service require that such personnel work for six (6) days, forty eight
hours, in which case they shall be entitled to an additional compensation of at least 30% of their regular wage for work on the sixth
day.

◦ Emergency overtime work in any of the ff. cases:

1. Country is at was or when any other national or local emergency has been declared by Congress or the Chief Executive
2. Necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending in the
locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity
3. Urgent work to be performed on machineries, installation or equipment, in order to avoid serious loss or damage to the employer
4. Work is necessary to prevent loss or damage to perishable goods
5. Completion or continuation of the work started before the 8 th hour is necessary to prevent serious obstruction or prejudice to the
business or operations of the employer

◦ Hours worked shall include:

(a) All time during which an employee is required to be on duty or to be at a prescribed workplace, and
(b) All the time during which an employee is suffered or permitted to work
*Rest periods of short duration during working hours shall be counted as hours worked.

Meal Period
It shall be the duty of the employer to give his employees not less than 60 minutes time-off for their regular meals.

GR: Not less than 1 hour time-off for regular meals is non-compensable.
XPNs: Meal period of not less than 20 minutes: (compensable)
- Where the work is non-manual in nature or does not involve strenuous physical exertion
- Establishment regularly operates not less than 16 hours a day
- Actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations
- Work necessary to prevent serious loss of perishable good

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- Rest periods or coffee breaks

Overtime Pay
Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work an additional
compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof.

*Overtime work must be with the consent of the employer.

Work may be performed beyond eight (8) hours on a holiday or rest day shall be paid an additional compensation equivalent to the
rate for the first 8 hours on a holiday or rest day plus at least thirty percent (30%) thereof.

- 25% OT Premium for ORDINARY DAYS

- 30% OT Premium for EXTRAORDINARY DAYS (Holidays/Special days/Rest days)

*For purposes of computing overtime and other additional remuneration, the “regular wage” shall include the cash wage only,
without deduction on account of facilities provided by the employer. (Shall include amount of facilities like meal allowance etc.)

Example: (If what is asked is the amount of overtime pay)

10 hours of work rendered in one day
Employee’s wage rate: P640 per day

- Compute hourly rate: P640/8 = P80 per hour

- Overtime premium: 25%
P80 x 25% = P20
- Total overtime pay per hour: P80 + P20 = P100
- Total overtime pay for 2 hours of overtime work: P200

Article 88 – Undertime not offset by overtime

Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go
on leave on some other day of the week shall not exempt the employer from paying the additional compensation required.

Night shift differential

Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work
performed between ten o’ clock (10:00) in the evening and six o’ clock (6:00) in the morning.

- 10% Night shift differential

- Time: 10pm to 6am
*Night shift differential is on top of overtime premium

Example:
Employee’s wage rate: P640 per day

- Compute hourly rate: P640/8 = P80 per hour

(If falls under overtime work, use P100 per hour based on the sample computation in overtime pay)

Employee rendered 8 hours of work and 2 hours of which rendered from 10pm-12 midnight
- Night shift differential: 10%
P80 x 10% = P8
(P100 x 10% = P10) – in case of overtime
- Total night shift differential for 2 hours: P16
(P20, in case of overtime)

GR: Hours of work provisions shall apply to employees in all establishments and undertakings, whether for profit or not.
XPNs: (1) Government employees; (2) Managerial employees; (3) Field personnel; (4) Members of the family of the employer who
are dependent on him for support; (5) Domestic helpers; (6) Persons in the personal service of another and workers who are paid by
results as determined by the Secretary of DOLE.

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Field personnel – non-agricultural employees who regularly perform their duties away from the principal place of business or branch
office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.
*Time and performance are unsupervised by the employer.

Women Night Workers

Alternative to night work may be available to women night workers:
(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between the time before and after
childbirth;
(b) Additional periods, in respect of which a medical certificate is produced stating that said periods are necessary for the health of
the mother or the child during pregnancy or during a specified time beyond the period.

Pregnant women and nursing mothers may be allowed to work at night only if a competent physician, other than the company
physician, shall certify their fitness to render night work, and specify, in the case of pregnant employees, the period of pregnancy
that they can safely work.

*May include transfer to day work where this is possible.

Mandator facilities for night workers:

- First-aid facilities
- Safe and healthful working conditions and adequate reasonable facilities
- Sleeping or resting quarters
- Transportation

*Night workers who are certified as unfit for night work, due to health reasons, shall be transferred, whenever practicable, to a
similar job for which they are fit to work. If such transfer is not practicable, they shall be granted the same benefits as other workers
who are unable to work, or to secure employment during such period.

Flexible arrangements:
1. Compressed work week - the normal week is reduced to less than 6 days but the total number of work hours of 48 hours per week
shall remain. The normal work day is extended to more than 8 hours, but should not exceed 12 hours without the corresponding
overtime premium.
2. Gliding or flexi-time schedule – employees are required to complete the core work hours, but are free to determine their arrival
and departure time.
3. Flexi-holidays schedule – employees agree to avail the holidays at some other days, provided there is no diminution of existing
benefits

Rest day
It is the duty of the employer to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.

The employer shall determine and schedule the weekly rest days of his employees, subject to collective agreement and to such rules
and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of
employees as to their weekly rest day when such preference is based on religious grounds. Except, when the choice of the employee
based on religious grounds cannot be accommodated by the employer since it will inevitably result prejudice or obstruction to the
operations, the employer may so schedule the weekly rest day of his choice for at least two (2) days in a month. (The other 2 days
will be on the preference of the employee based on religious grounds.

Compensation for rest day, Sunday or holiday work

- Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at
least 30 percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on
Sunday only when it is his established rest day.

- When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled,
he shall be paid additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.

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Holiday pay
GR: Every worker shall be paid his regular daily wage during regular holidays.
XPN: In retail and service establishments regularly employing less than ten (10) workers.

Employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his
regular rate.

Absences
(a) All covered employees shall be entitled to the benefits provided when they are on leave of absence with pay. Employees who are
on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he
has not worked on such regular holiday.

(b) Where the day immediately preceding the holiday is a non-working day in the establishment of the scheduled rest day of the
employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay he
worked on the day immediately preceding the non-working day or rest day.

Successive regular holidays

Where there two (2) successive regular holidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays
if he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which
case he is entitled to his holiday pay on the second holiday.

Work on Special Day

Work performed on any special holiday shall be paid an additional compensation of at least 30% of the regular wage of the
employee.
Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least
50% of his regular wage.

*Rest day and special day – no work no pay

HOLIDAY SPECIAL DAY

No work, with pay No work, no pay
With work, DOUBLE pay With work, EXTRA pay (30% premium)

HOLIDAY SPECIAL DAY

New Year’s Day – Jan 1 Chinese New Year

Maundy Thursday EDSA Revolution Anniversary – Feb 25
Good Friday Ninoy Aquino Day – Aug 21
Araw ng Kagitingan – Apr 9 All Saints’ Day – Nov 1
Labor Day – May 1 Last Day of the Year – Dec 31
Independence Day – June 12
National Heroes Day – Aug 30 Feast of the Immaculate Concepcion –
Bonifacio Day – Nov 30 December 8
Christmas – Dec 25
Rizal Day – Dec 30
Eid’l Fitr
Eid’l Adha

Example:
10 hours of work rendered on a holiday
Employee’s wage rate: P640 per day

- Compute rate for the day: P640 x 2 = P1280

- Compute hourly rate: P1280 / 8 = P160 per hour

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- Overtime premium: 30% (because it is a holiday; not 25% - only on regular working day)
P160 x 30% = P48
- Total overtime pay/hour: P160 + P48 = P208
- Total OT pay for 2 hours of OT work: P416

Example:
10 hours of work rendered on a special day or rest day
Employee’s wage rate: P640 per day

- Compute rate for the day: P640 x 130% = P832

- Compute hourly rate: P832 / 8 = P104 per hour
- Overtime premium: 30% (because it is a holiday; not 25% - only on regular working day)
P104 x 30% = P31.20
- Total overtime pay/hour: P104 + P31.20 = P135.20
- Total OT pay for 2 hours of OT work: P270.40

Service Incentive Leave

GR: Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days
with pay.
XPNS:
(1) Those already enjoying the benefit already herein provided;
(2) Those enjoying vacation leave with pay at least five days; and
(3) Those employed in establishments regularly employing less than ten employees or establishments exempted form granting this
benefit.

*Service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.
*Employee can recover all the unpaid money equivalent of unused service incentive leave since it is carried over until the last day of
the employee. The reckoning point of the 3-year prescriptive period is the last day of the employment.

EXPANDED MATERNITY LEAVE ACT (RA 11210)

◦ 105 days maternity leave with pay
◦ If SOLO PARENT: additional 15 days with pay
◦ OPTIONAL: additional 30 days without pay
◦ Married or unmarried (marital status not material)
◦ Leave can be availed through a combination of pre-natal and post-natal, post-natal shall be at least 60 days.
(Can be 45 days before delivery and 60 days after; or 40 days before delivery and 65 days after)
◦ For miscarriage/emergency termination of pregnancy: 60 days only.

Exempted from the application of maternity leave:

1. Operating distressed establishments;
2. Retail/service establishments and other enterprises employing not more than ten (10) workers;
3. Considered as micro-business enterprises and engaged in the production, processing, or manufacturing of products or
commodities including agro-processing, trading, and services whose total assets are not more than three million pesos
(P3,000,000.00); and
4. Those who are already providing similar or more than the benefits herein provided.

Paternity Leave
◦ 7 days
◦ Married and cohabiting with the wife
*Under the Expanded Maternity Leave Act, 7 days of the maternity leave can be assigned to the child’s father (married or
unmarried)

Leave for VAWC victims

◦ 10 days for legal and medical concerns
◦ As the need arises, at the option of the employee

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Special leave for women
◦ 2 months with pay
◦ For gynecological disorders requiring surgical procedure

Parental (Solo Parent) Leave RA 8972

◦In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days every year shall be
granted to any solo parent employee who has rendered service of at least one (1) year.

Migrant Workers and Overseas Filipinos Act

Overseas Filipino worker – who is to engaged, is engaged or has been engaged in a remunerated activity in a state of which he or she
is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for military or non-commercial
purposes or on an installation located offshore or on the high seas; to be used interchangeably with migrant worker.
*Whether deployed or not.

Overseas Filipinos – dependents of migrant workers and other Filipino nationals abroad who are in distress.

Overseas Filipino in distress – who has a medical, psychosocial or legal assistance problem requiring treatment, hospitalization,
counselling, legal representation or any other kind of intervention with the authorities in the country where he or she is found.

PH government recognizes any of the ff. as guarantee on the part of the receiving country for the protection of the rights of OFWs:
1. Country has existing labor and social laws protecting the rights of workers, including migrant workers;
2. It is a signatory and/or a ratifier of multilateral conventions, declarations or resolutions relating to the protection of workers; and
3. It concluded a bilateral agreement or arrangement with the government on the protection of the rights of overseas Filipino
workers.

*The DFA shall issue certification to the POEA, specifying therein the pertinent provisions of the receiving country’s labor/social law,
or the convention/declaration/resolution, or the bilateral agreement/arrangement which protect the rights of migrant workers.
*Absence of any of the guarantees, no permit for deployment shall be issued by the POEA.

Deployment Ban
In the pursuit of the national interest or when public welfare so requires, the POEA Governing Board, after consultation with the
DFA, may, at any time, terminate or impose a ban on the deployment of migrant workers.

ILLEGAL RECRUITMENT

Under the Migrant Workers Act

- Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract
services, promising or advertising for employment abroad, whether for profit or not, when taken by non-licensee or non-holder of
authority.
- Acts enumerated under Section 6, whether committed by any person, whether a non-licensee, non-holder, licensee or holder or
authority.

● Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of
deployment, in cases where the deployment does not actually take place without the worker's fault. Illegal recruitment when
committed by a syndicate or in large scale shall be considered an offense involving economic sabotage.
- even with or without the recruitment agency’s fault, as long as the worker is not at fault
● Allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

Citizenship requirement
Only Filipino citizens or corporations, partnerships or entities a least seventy-five percent (75%) of the authorized and voting capital
stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of
workers, locally or overseas.

Under the Labor Code

- Any recruitment activities to be undertaken by non-licensees or non-holders of authority.

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Illegal recruitment by a syndicate – if carried out by a group of three (3) or more persons conspiring or confederating with one
another.
Illegal recruitment in large scale – if committed against three (3) or more persons individually or as a group.

*Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage.
*Penalty of life imprisonment and a fine not less than 2M or more than 5M.

Venue
A criminal action arising from illegal recruitment shall be filed with the Regional Trial Court of the province or city where the offense
was committed or where the offended party actually resides at the same time of the commission of the offense.

Money Claims
The Labor Arbiter shall have the original and exclusive jurisdiction to hear and decide, within 90 calendar days after the filing of the
complaint, the claims arising out an employer-employee relationship or by virtue of any law or contract involving Filipino workers for
overseas deployment including claims for actual, moral, exemplary and other forms of damage.

*The liability of the principal/employer and the recruitment/placement agency shall be joint and several or solidary.
*Such liabilities shall continue during the entire period or duration of the employment contract and shall not affect by any
substitution, amendment or modification made locally or in a foreign country of the said contract.

Remedy
In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, the workers
shall be entitled to the full reimbursement of his placement fee with interest of twelve percent (12%) per annum, plus his salaries for
the unexpired portion of his employment contract

Prescriptive period
Illegal recruitment cases under this Act shall prescribe in five (5) years: Provided, however, that illegal recruitment cases involving
economic sabotage as defined herein shall prescribe in twenty (20) years.

Mandatory Repatriation
Upon discovery or being informed of the presence of migrant workers whose actual ages fall below the minimum age requirement
(below 18) for overseas deployment, the responsible officers in the foreign service shall without delay repatriate said workers.

The license of a recruitment/manning agency which recruited or deployed an underage migrant worker shall be AUTOMATICALLY
REVOKED and shall be imposed a fine not less than P500,000.00 but not more than P1,000,000.00.

COUNTRY-TEAM APPROACH - all officers, representatives and personnel of the Philippine government posted abroad regardless of
their mother agencies shall, on a per country basis, act as one country-team with a mission under the leadership of the ambassador.
In this regard, the ambassador may recommend to the Secretary of the Department of Foreign Affairs the recall of officers,
representatives and personnel of the Philippine government posted abroad for acts inimical to the national interest such as, but not
limited to, failure to provide the necessary services to protect the rights of overseas Filipinos.

Direct Hires – refer to workers directly hired by employers for overseas employment as authorized by the Secretary of Labor and
Employment and processed by the POEA, including: (they do not go through recruitment agencies)
1. Those hired by international organizations;
2. Those hired by members of the diplomatic corps; and
3. Name hires or workers who are able to secure overseas employment opportunities with
employers without the assistance or participation of any agency.

Employment of Aliens
Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to
engage an alien for employment in the Philippines shall obtain an employment permit from the DOLE.

Employment permit may be issued to a NON-RESIDENT alien or to the applicant employer after a determination of the non-
availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for
which the alien is desired.

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GR: Employers in the Philippines should only hire Filipinos.
XPN: No Filipino is competent, able and willing at the time of application to perform the services.

Prohibition against transfer of employment

After the issuance of an employment permit, the alien shall not transfer to another job or change his employer without the prior
approval of the Secretary of Labor.

McBurnie vs. Ganzon, EGI-Managers, Inc.

A foreigner who alleged illegal dismissal and sought to claim under our labor laws is required to establish first that he was qualified
and duly authorized to obtain employment within our jurisdiction. A requirement for foreigners who intend to work within the
country is an employment permit.
The failure of the foreigner to obtain an employment permit, by itself, necessitates the dismissal of his labor complaint.

Special Provisions for Women Workers

It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of
employment solely on account of her sex.

Stipulation against marriage

It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed
resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of
her marriage.

Prohibit acts:
(1) Deny any woman employee of benefits or to discharge any woman employed for the purpose of preventing her from enjoying
any of the benefits.
(2) Discharge such woman on account of her pregnancy, or while on leave or confinement due to her pregnancy.
(3) Discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant.

ANTI-SEXUAL HARASMENT ACT (RA 7877)

Sexual harassment - committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor,
professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or
training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether
the demand, request or requirement for submission is accepted by the object of said act.

Work-related or employment environment, sexual harassment is committed when:

(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said
individual, or in granting said individual favorable compensation, terms of conditions, promotions, or privileges; or the refusal to
grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or
diminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee’s rights or privileges under existing labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive environment for the employee.

*Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the
commission thereof by another without which it would not have been committed, shall also be held liable.
*Sexual harassment is considered as serious misconduct which is a ground for termination of employment.

Liability of the Employer

The employer or head of office, educational or training institution shall be solidarily liable for damages arising from the acts of sexual
harassment committed in the employment, education or training environment if the employer or head of office, educational or
training institution is informed of such acts by the offended party and no immediate action is taken.

Safe Spaces Act (RA 11313)

Section 16. Gender-Based Sexual Harassment in the Workplace. -The crime of gender-based sexual harassment in the workplace
includes the following:

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(a) An act or series of acts involving any unwelcome sexual advances, requests or demand for sexual favors or any act of sexual
nature, whether done verbally, physically or through the use of technology such as text messaging or electronic mail or through any
other forms of information and communication systems, that has or could have a detrimental effect on the conditions of an
individual’s employment or education, job performance or opportunities;

(b) A conduct of sexual nature and other conduct-based on sex affecting the dignity of a person, which is unwelcome, unreasonable,
and offensive to the recipient, whether done verbally, physically or through the use of technology such as text messaging or
electronic mail or through any other forms of information and communication systems;

(c) A conduct that is unwelcome and pervasive and creates an intimidating, hostile or humiliating environment for the recipient:
Provided, That the crime of gender-based sexual harassment may also be committed between peers and those committed to a
superior officer by a subordinate, or to a teacher by a student, or to a trainer by a trainee; and

(d) Information and communication system refers to a system for generating, sending, receiving, storing or otherwise processing
electronic data messages or electronic documents and includes the computer system or other similar devices by or in which data are
recorded or stored and any procedure related to the recording or storage of electronic data messages or electronic documents.

*Violation of this law may be committed even without sexual favor.

Employment of Children
GR: A child below fifteen (15) years of age shall not be employed.
XPN:
(1) When a child works directly under the sole responsibility of his parents or legal guardian and where only members of the
employer's family are employed: Provided, however, that his employment neither endangers his life, safety and health and morals,
nor impairs his normal development: Provided, further, That the parent or legal guardian shall provide the said minor child with the
prescribed primary and/or secondary education; or
(2) When a child's employment or participation in public & entertainment or information through cinema, theater, radio or
television is essential: Provided, the employment contract concluded by the child's parent or guardian, with the express agreement
of the child concerned, if possible, and the approval of the Department of Labor and Employment: Provided, That the following
requirements in all instances are strictly complied with:
(a) The employer shall ensure the protection, health, safety and morals of the child;
(b) the employer shall institute measures to prevent the child's exploitation or discrimination taking into account the
system and level of remuneration, and the duration and arrangement of working time; and;
(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a
continuing program for training and skill acquisition of the child.

In the above exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child,
a work permit from the Department of Labor and Employment which shall ensure observance of the above requirement.

*No child shall be employed as model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks,
tobacco and its by-products, gambling or any form of violence or pornography.

 Hours of Work of a Working Child

1. A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week: Provided, That the
work shall not be more than four (4) hours at any given day;
2. A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day, and in
no case beyond forty (40) hours a week;
3. No child below fifteen (15) years of age shall be allowed to work between eight o’clock in the evening and six o’clock in the
morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten
o’clock in the evening and six o’clock in the morning of the following day.

Wages of a working child

The wages, salaries, earnings and other income of the working child shall belong to him/her in ownership and shall be set aside
primarily for his/her support, education or skills acquisition and secondarily to the collective needs of the family: Provided, that not
more than twenty percent (20%) of the child’s income may be used for the collective needs of the family.

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The income of the working child and/or the property acquired through the work of the child shall be administered by both parents.
In the absence or incapacity of either of the parents, the other parent shall administer the same. In case both parents are absent or
incapacitated, the order of preference on parental authority as provided for under the Family Code shall apply.
The parent or legal guardian of a working child below eighteen (18) years of age shall set up a trust fund for at least thirty percent
(30%) of the earnings of the child whose wages and salaries from work and other income amount to at least two hundred thousand
pesos (₱200,000.00) annually, for which he/she shall render a semi-annual accounting of the fund to the DOLE. The child shall have
full control over the trust fund upon reaching the age of majority.

Household Service under the Labor Code

Domestic or household service – service in the employer’s home which is usually necessary or desirable for the maintenance and
enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer’s household,
including service of family drivers.

KASAMBAHAY LAW (RA 10361)

Domestic worker or “Kasambahay” – any person engaged in domestic work within an employment relationship such as, but not
limited to, the following: general househelp, nursemaid or “yaya”, cook, gardener, or laundry person, but shall exclude any person
who performs domestic work only occasionally or sporadically and not on an occupational basis.

*Term shall not include children who are under foster family arrangement, and are provided access to education and given an
allowance incidental to education, i.e. “baon”, transportation, school projects and school activities.
*This law does not cover family drivers.

Non-household work
No domestic worker shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage rate lower than that
provided for agricultural or non-agricultural workers. In such cases, the domestic worker shall be paid the applicable minimum wage.

Assignment to another household

The domestic worker and the employer may mutually agree for the former to temporarily perform a task that is outside the latter’s
household for the benefit of another household. However, any liability that will be incurred by the domestic worker on account of
such arrangement shall be borne by the original employer.

In addition, such work performed outside the household shall entitle the domestic worker to an additional payment of not less than
the existing minimum wage rate of a domestic worker. It shall be unlawful for the original employer to charge any amount from the
said household where the service of the domestic worker was temporarily performed.

Termination of Service (Sec 32)

Neither the domestic worker nor the employer may terminate the contract before the expiration of the term except for grounds
provided for in Sections 33 and 34 of this Act.

If the domestic worker is unjustly dismissed, the domestic worker shall be paid the compensation already earned plus the
equivalent of fifteen (15) days work by way of indemnity. If the domestic worker leaves without justifiable reason, any unpaid salary
due not exceeding the equivalent fifteen (15) days work shall be forfeited. In addition, the employer may recover from the domestic
worker costs incurred related to the deployment expenses, if any: Provided, that the service has been terminated within six (6)
months from the domestic worker’s employment.

If the duration of the domestic service is not determined either in stipulation or by the nature of the service, the employer or the
domestic worker may give notice to end the working relationship five (5) days before the intended termination of the service.
The domestic worker and the employer may mutually agree upon written notice to pre-terminate the contract of employment to
end the employment relationship.

Minimum Wage
Not less than:
(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first-class municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

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Payment of wages shall be made on time directly to the domestic worker to whom they are due in cash at least once a month. The
employer, unless allowed by the domestic worker through a written consent, shall make no deductions from the wages other than
that which is mandated by law. No employer shall pay the wages of a domestic worker by means of promissory notes, vouchers,
coupons, tokens, tickets, chits, or any object other than the cash wage.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

Rest Day
◦ Daily Rest Period: the domestic worker shall be entitled to an aggregate daily rest period of eight (8) hours per day.
◦ Weekly Rest Period: the domestic worker shall be entitled to at least twenty-four (24) consecutive hours of rest in a week.

The employer and the domestic worker shall agree in writing on the schedule of the weekly rest day of the domestic worker:
Provided, that the employer shall respect the preference of the domestic worker as to the weekly rest day when such preference is
based on religious grounds.

Nothing in this provision shall deprive the domestic worker and the employer from agreeing to the following:
(a) Offsetting a day of absence with a particular rest day;
(b) Waiving a particular rest day in return for an equivalent daily rate of pay;
(c) Accumulating rest days not exceeding five (5) days; or
(d) Other similar arrangements.

Leave Benefits
A domestic worker who has rendered at least one (1) year of service shall be entitled to an annual service incentive leave of five (5)
days with pay.
*Any unused portion of said annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves shall not be
convertible to cash.

Handicapped Worker (under the Labor Code)

Those whose earning capacity is impaired by age or physical or mental deficiency or injury.

*They may be employed when their employment is necessary to prevent curtailment of employment opportunities and when it does
not create unfair competition in labor costs or impair or lower working standards.

*The rate to be paid to the handicapped workers shall not be less than 75% of the applicable legal minimum wage.

MAGNA CARTA FOR DISABLED PERSONS (RA 7277)

Disabled Persons - those suffering from restriction of different abilities, as a result of a mental, physical or sensory impairment, to
perform an activity in the manner or within the range considered normal for a human being.
*Impairment is any loss, diminution or aberration of psychological, physiological, or anatomical structure of function.

Qualified Individual with a Disability - an individual with a disability who, with or without reasonable accommodations, can perform
the essential functions of the employment position that such individual holds or desires. However, consideration shall be given to
the employer’s judgement as to what functions of a job are essential, and if an employer has prepared a written description before
advertising or interviewing applicants for the job, this description shall be considered evidence of the essential functions of the job.

Employment
No disabled persons shall be denied access to opportunities for suitable employment. A qualified disabled employee shall be subject
to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or
allowances as a qualified able-bodied person.
Five percent (5%) of all casual, emergency and contractual positions in the Department of Social Welfare and Development; Health;
Education, Culture and Sports; and other government agencies, offices or corporations engaged in social development shall be
reserved for disabled persons.

Homeworkers
A person who receives goods or articles from the employer for processing in or about a home.

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The employer of homeworkers includes any person who, for his account or benefit, or on behalf of any person residing outside the
country, directly or indirectly, or through an employee, agent contractor, sub-contractor or any other person:
(1) Delivers any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be
disposed of or distributed in accordance with his directions; or
(2) Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such
processing or fabrication either by himself or through some other person.

SOCIAL SECURITY ACT OF 2018 (RA 11199)

Coverage in the SSS shall be COMPULSORY upon all employees including kasambahays or domestic workers not over 60 years of age
and their employers.

◦ Spouses who devote their full time to managing the household and family affairs, unless they are also engaged in other vocation or
employment which is subject to mandatory coverage, may be covered by the SSS on a VOLUNTARY basis.

Compulsory Coverage of the Self-Employed

(1) All self-employed professionals;
(2) Partners and single proprietors of businesses;
(3) Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term
"employee" in Section 8(d) of this Act;
(4) Professional athletes, coaches, trainers and jockeys; and
(5) Individual farmers and fishermen.

Benefits:
-Monthly pension
-Dependent’s pension
-Retirement benefits
-Death benefits
-Permanent disability benefits
-Funeral benefits
-Sickness benefits
-Unemployment Insurance or Involuntary Separation Benefits

The dependents shall be the following:

(1) The legal spouse entitled by law to receive support from the member;
(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed, and has not
reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or while still a minor has been
permanently incapacitated and incapable of self-support, physically or mentally: and
(3) The parent who is receiving regular support from the member.

Beneficiaries – The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted, and
illegitimate children, who shall be the primary beneficiaries of the member.
Provided, the dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children.
Provided, further, that in the absence of the dependent legitimate, legitimated or legally adopted children of the member, his/her
dependent illegitimate children shall be entitled to one hundred percent (100%) of the benefits. In their absence, the dependent
parents who shall be the secondary beneficiaries of the member. In the absence of all the foregoing, any other person designated by
the member as his/her secondary beneficiary.

GOVERNMENT SERVICE INSURANCE ACT OF 1997 (RA 8291)

Compulsory Membership
Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory
retirement age, irrespective of employment status, except members of the Armed Forces of the Philippines and the Philippine
National Police, subject to the condition that they must settle first their financial obligation with the GSIS, and contractuals who have
no employer and employee relationship with the agencies they serve.

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Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS
shall have life insurance, retirement, and all other social security protections such as disability, survivorship, separation, and
unemployment benefits.

Dependents shall be the following:

(1) Legitimate spouse dependent for support upon the member or pensioner;
(2) Legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not over
the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and
(3) Parents dependent upon the member for support.

◦ Primary beneficiaries- The legal dependent spouse until he/she remarries and the dependent children.

◦ Secondary beneficiaries- The dependent parents and, subject to the restrictions on dependent children, the legitimate
descendants.

Benefits:
Monthly pensions
Separation benefits
Unemployment Insurance or Involuntary Separation Benefits
Retirement benefits
Disability benefits
Survivorship benefits
Funeral benefits
Life insurance benefits

LIMITED PORTABILITY LAW (RA 7699)

Sec. 3. Provisions of any general or special law or rules and regulations to the contrary notwithstanding, a covered worker who
transfers employment from one sector to another or is employed in both sectors shall have his credible services or contributions in
both Systems credited to his service or contribution record in each of the Systems and shall be totalized for purposes of old-age,
disability, survivorship and other benefits in case the covered member does not qualify for such benefits in either or both Systems
without totalization: Provided, however, That overlapping periods of membership shall be credited only once for purposes of
totalization.

UNIVERSAL HEALTH CARE ACT (RA 11223)

Population Coverage
Every Filipino citizen shall be automatically included into the NHIP, hereinafter referred to as the Program.

Service Coverage
(a) Every Filipino shall be granted immediate eligibility and access to preventive, promotive, curative, rehabilitative, and palliative
care for medical, dental, mental and emergency health services, delivered either as population-based or individual-based health
services: Provided, that the goods and services to be included shall be determined through a fair and transparent HTA process;
(b) Within two (2) years from the effectivity of this Act, PhilHealth shall implement a comprehensive outpatient benefit, including
outpatient drug benefit and emergency medical services in accordance with the recommendations of the Health Technology
Assessment Council (HTAC) created under Section 34 hereof;
(c) The DOH and the local government units (LGUs) shall endeavor to provide a health care delivery system that will afford every
Filipino a primary care provider that would act as the navigator, coordinator, and initial and continuing point of contact in the health
care delivery system: Provided, that except in emergency or serious cases and when proximity is a concern, access to higher levels of
care shall be coordinated by the primary care provider; and
(d) Every Filipino shall register with a public or private primary care provider of choice. The DOH shall promulgate the guidelines on
the licensing of primary care providers and the registration of every Filipino to a primary care provider.

ANTI-AGE DISCRIMINATION IN EMPLOYMENT ACT (RA 10911)

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It shall be unlawful for an employer to:
(1) Print or publish, or cause to be printed or published, in any form of media, including the internet, any notice of advertisement
relating to employment suggesting preferences, limitations, specifications, and discrimination based on age;
(2) Require the declaration of age or birth date during the application process;
(3) Decline any employment application because of the individual’s age;
(4) Discriminate against an individual in terms of compensation, terms and conditions or privileges of employment on account of
such individual’s age;
(5) Deny any employee’s or worker’s promotion or opportunity for training because of age;
(6) Forcibly lay off an employee or worker because of old age; or
(7) Impose early retirement on the basis of such employee’s or worker’s age.

*It shall be unlawful for a labor contractor or subcontractor, if any, to refuse to refer for employment or otherwise discriminate
against any individual because of such person’s age.

Exceptions. - It shall not be unlawful for an employer to set age limitations in employment if:
(a) Age is a bona fide occupational qualification reasonably necessary in the normal operation of a particular business or where the
differentiation is based on reasonable factors other than age;
(b) The intent is to observe the terms of a bona fide seniority system that is not intended to evade the purpose of this Act;
(c) The intent is to observe the terms of a bona fide employee retirement or a voluntary early retirement plan consistent with the
purpose of this Act: Provided, that such retirement or voluntary retirement plan is in accordance with the Labor Code, as amended,
and other related laws; or
(d) The action is duly certified by the Secretary of Labor and Employment in accordance with the purpose of this Act.

TELECOMMUTING (RA 11165)

Telecommuting - refers to a work from an alternative workplace with the use of telecommunications and/or computer technologies.

Employees on a voluntary bases, and upon such terms and conditions as they may mutually agree upon: Provided, that such terms
and conditions shall not be less than the minimum labor standards set by law, and shall include compensable work hours, minimum
number of work hours, overtime, rest days, and entitlement to leave benefits. In all cases, the employer shall provide the
telecommuting employee with relevant written information in order to adequately apprise the individual of the terms and
conditions of the telecommuting program, and the responsibilities of employee.

Fair Treatment
The employer shall ensure that the telecommuting employee are given the same treatment as that of comparable employees are
given the same treatment as that of comparable employees working at the time employer's premises. All telecommuting employee
shall:
(a) Receive a rate of pay, including overtime and night shift differential, and other similar monetary benefits not lower than those
provided in applicable laws, and collective bargaining agreements.
(b) Have the right to rest periods, regular holidays, and special nonworking days.
(c) Have the same or equivalent workload and performance standards as those of comparable workerat the employer's premises.
(d) Have the same access to training and career development opportunities as those of comparable workers at the employer's
premises, and be subject to the same appraisal policies covering these workers.
(e) Receive appropriate training on the technical equipment at their disposal, and the characteristics and conditions of
telecommuting.
(f) Have the same collectible rights as the workers at the employer's premises, and shall not be barred from communicating with
workers' representatives.

The employer shall also ensure that measures are taken to prevent the telecommuting employee from being isolated from the rest
of the working community in the company by giving the telecommuting employee the opportunity to meet with colleagues on a
regular basis, and opportunity to meet with colleagues on a regular basis, and allowing access to company information.

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