employment/job; therefore, it is
GENERAL PRINCIPLES
Constitutional Provisions
• Art. II State Policies
1. Sec. 9: The State shall promote a just and
dynamic social order that will ensure the
prosperity and independence of the nation and
free the people from poverty through policies that
provide adequate social services, promote full
employment, a rising standard of living, and an
improved quality of life for all.
2. Sec. 10: The State shall promote social justice in
all phases of national development.
3. Sec. 11: The State values the dignity of every
human person and guarantees full respect for
human rights.
® Atty. Manuel: In the hierarchy of rights
(human rights v. property right), workers’
rights should be considered as human right.
4. Sec. 18: The State affirms labor as a primary
social economic force. It shall protect the rights of
and promote their welfare.
® An affirmation of the importance given
by the State to the labor sector as a
primary social economic force. And
because of that importance, the labor
sector workforce, in general, to the
country’s economy we see the two-
pronged policy concerning workers –
protection of workers’ rights and
promotion of workers’ welfare.
® 3 parts:
a. Labor as a primary social
economic force
b. The state is mandated to protect
worker’s rights and
c. To promote workers’ welfare.
5. Sec. 20: The State recognizes the indispensable
role of the private sector, encourages private
enterprise, and provides incentives to needed
investments.
® Parallel provision of Sec. 18
® Talks about the perspective of the
employer (private sector) in a ER-EE
relationship
• Art. III Bill of Rights
1. Sec. 1: No person shall be deprived of life, liberty,
or property without due process of law, nor shall
any person be denied the equal protection of the
laws.
® There are cases decided by the Court
referring to a person’s job as property
within the meaning of Sec. 1 Art. III
® When we talk about deprivation of life,
liberty and property without due
process of law, always bear in mind
property here includes workers’
covered by the due process guarantee.
® Equal protection clause with respect to
discriminatory policies of employers or
in some cases the state
2. Sec. 4: No law shall be passed abridging the
freedom of speech, of expression, or of the press,
or the right of the people peaceably to assemble
and petition the government for redress of
grievances.
® Workers’ concerted actions were
considered by the court as legitimate
exercise of their freedom of expression
(i.e., wearing of armbands)
3. Sec. 8: The right of the people, including those
employed in the public and private sectors, to
form unions, associations, or societies for
purposes not contrary to law shall not be
abridged.
® Freedom to organize in general
® The reference to unions refers to labor
unions.
® Refers to workers’ rights to self-
organization
4. Sec. 16: All persons shall have the right to a
speedy disposition of their cases before all
judicial, quasi-judicial, or administrative bodies.
5. Sec. 18 (2): No involuntary servitude in any
form shall exist except as a punishment for a
crime whereof the party shall have been duly
convicted.
• Sec. 3 Art. XIII Social Justice and Human Rights
1. Sec. 1: The Congress shall give highest priority to
the enactment of measures that protect and
enhance the right of all the people to human
dignity, reduce social, economic, and political
inequalities, and remove cultural inequities by
equitably diffusing wealth and political power for
the common good.
To this end, the State shall regulate the acquisition,
ownership, use, and disposition of property and its
increments.
® The mandate for Congress is to enact
measures thru legislation
2. Sec. 2: The promotion of social justice shall
include the commitment to create economic
opportunities based on freedom of initiative and
self-reliance.
3. Sec. 3: 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.
HOBIBII NOTES in LABOR LAW 2021 1
 They shall also participate in policy and decision-
making processes affecting their rights and
benefits as may be provided by law.
® Divisions in par. 2:
a. 1st sentence refers to Collective
rights of workers: these are rights
which can be exercised only if the
workers are organized; concerted
activities mean doing an act in
union or collective effort to
engage in a particular act. (labor
relations)
b. 2nd sentence refers Individual
rights: you don’t need a union to
enjoy these rights (labor
standards)
c. 3rd sentence talks about the right
to participate
Con’t of Sec. 3: The State shall promote the
principle of shared responsibility between workers
and employers and the preferential use of
voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between
workers and employers, recognizing the right of
labor to its just share in the fruits of production
and the right of enterprises to reasonable returns
to investments, and to expansion and growth.
® Principle of Shared responsibility – in a
way this is the State taking a hands-off
position and letting the parties resolve
their own disputes; the State will not
interfere in all cases and there is
preference for the use of voluntary
modes which will allow the parties to
resolve their own dispute without or
with minimal state involvement
® 2nd sentence: The state is also mandated
to regulate the relations between
workers and employers taking into
consideration workers’ rights to just
share in the fruits of production and the
employers’ right to reasonable returns
of investments
• Recognizes the role of Women workers and
Women in general
1. Sec. 14, Art. II: The State recognized the
role of women in nation-building, and shall
ensure the fundamental equality before the
law of women and men.
2. Sec. 14, Art. XIII: The State shall protect
working women by providing safe and
healthful working conditions, taking into
account their maternal functions, and such
facilities and opportunities that will enhance
their welfare and enable them to realize their
full potential in the service of the nation.
7 Basic Rights of Workers guaranteed by the
Constitution:
1. To participate in policy and decision-making
processes affecting their rights and benefits as
may be provided by law (Principle of Co-
determination)
2. To receive a living wage
3. To conduct collective bargaining or negotiation
with management
4. To work under humane conditions
5. Right to organize
6. To enjoy security of tenure
7. To engage in peaceful concerted activities,
including strike in accordance with law
Labor Code Provisions
• Art. 3. Declaration of basic policy. The State shall
afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race
or creed and regulate the relations between workers
and employers. The State shall assure the rights of
workers to self-organization, collective bargaining,
security of tenure, and just and humane conditions of
work.
• Art. 4. Construction in favor of labor. All doubts in
the implementation and interpretation of the
provisions of this Code, including its implementing
rules and regulations, shall be resolved in favor of labor
® It is erroneous to state that all cases
involving workers shall be resolved in favor
of labor.
® A Statutory construction principle, comes in
when there is doubt in the application of
law. Thus, construction in favor of labor will
only be applied when there is any doubt
® Article 4 talks about the law and its
implementing rules
• Art. 218. Declaration of policy. A. It is the policy of
the State:
a. To promote and emphasize the primacy of
free collective bargaining and negotiations,
including voluntary arbitration, mediation
and conciliation, as modes of settling labor
or industrial disputes;
® Points out that collective
bargaining is a mode of settling
labor disputes
® Collective bargaining was
presented not only as a right of
workers but also as a mode of
settling disputes
b. To promote free trade unionism as an
instrument for the enhancement of
democracy and the promotion of social
justice and development;
HOBIBII NOTES in LABOR LAW 2021 2
 ® Free trade unionism refers to an
employees’ right to join or form a
union or collectively rights of
workers to organize themselves;
® Why free? Because it should not be
interfered by the employer or the
State
c. To foster the free and voluntary
organization of a strong and united labor
movement;
® Talks about a labor movement;
refers to interconnection or unity
of workers or unions
® It is a policy of the State to
encourage unions to be together in
federations, federations to be in
union with trade union centers;
and workers to be together and to
be a part of a strong and united
labor movement.
d. To promote the enlightenment of workers
concerning their rights and obligations as
union members and as employees;
® Talks about workers’ education
concerning their rights and
obligations as union members and
employees
e. To provide an adequate administrative
machinery for the expeditious settlement of
labor or industrial disputes;
f. To ensure a stable but dynamic and just
industrial peace; and
g. To ensure the participation of workers in
decision and policy-making processes
affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating
the relations between the employers and employees by
means of agreements freely entered into through collective
bargaining, no court or administrative agency or official
shall have the power to set or fix wages, rates of pay, hours
of work or other terms and conditions of employment,
except as otherwise provided under this Code.
® The State will not interfere/intervene
because the parties should regulate
themselves thru collective bargaining
® What we have in the code are minimum
standards; labor standards should be the
starting point of the negotiation
• Art. 290. Tripartism, Tripartite Conferences, and
Tripartite Industrial Peace Councils. – a. Tripartism
in labor relations is hereby declared a State policy.
Towards this end, workers and employers shall, as far
as practicable, be represented in decision and policy-
making bodies of the government
® Tripartism refers to 3 parties: government,
employers, and workers
® As amended by RA 10395, An Act
Strengthening Tripartism, March 14, 2013
Civil Code Provisions
• Art. 19 (catch-all provision)
• Art. 1700: The relations between capital and labor are
not merely contractual. They are so impressed with
public interest that labor contracts must yield to the
common good. Therefore, such contracts are subject
to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar
subjects.
® Employment contracts do not merely
concern the parties – employer and
employee – they are so impressed with
public interest that the common good is also
involved in the relationship
• Art. 1702. In case of doubt, all labor legislation and
all labor contracts shall be construed in favor of the
safety and decent living for the laborer.
® Similar to Art. 4 of the labor code
• Art. 1701
• Art. 1703
General Rules from Dean Abad:
1. Existence of an Employer-Employee
Relationship is condition sine qua non for the
application of labor law
2. Principle of Incorporation: The minimum labor
standards and benefits in Labor Code are
considered inherent in every employer-
employee relationship even absent a written
employment contract.
3. The burden of proof is always upon employer to
show validity of its exercise of management
prerogatives, especially as regards termination
of employment.
® However, complainant employee initially has
the burden of proving the fact of hiring (Danilo
“Bitoy” Javier v. CA, 2012) and the fact of
firing (Remoticado v. Typical Construction
Trading Corp., 2018, Leonen)
4. Only substantial evidence required
® It is an oft-repeated rule that in labor cases, as
in other administrative and quasi-judicial
proceedings, “the quantum of proof necessary is
substantial evidence, or such amount of
relevant evidence which a reasonable mind
might accept as adequate to justify a
conclusion.” (Valencia v. Classique Vinyl
Products Corp., 2017)
5. No retroactive effect of labor laws except when
explicitly so provided
6. In case of doubt or ambiguity interpret in favor
of labor
® Where the contract of employment, being a
contract of adhesion, is ambiguous, any
ambiguity therein should be construed strictly
against the party who prepared it. (Price v.
Innodate Phils., 2008)
HOBIBII NOTES in LABOR LAW 2021 3

RECRUITMENT & PLACEMENT
License
• Refers to the document issued by the DOLE
Secretary authorizing a person, partnership
or corporation to operate a private
recruitment/manning agency
Authority
• Refers to document issued by the DOLE
Secretary authorizing the officers, personnel,
agents or representatives of a licensed
recruitment/manning agency to conduct
recruitment and placement activities in a
place stated in the license or in a specified
place
Recruitment and placement
• Refers to any act of canvassing, enlisting,
contracting, transporting, hiring or
procuring workers, and includes referrals,
contract services, promising or advertising
for employment, locally or abroad, whether
for profit or not; provided that any person or
entity which, in any manner, offers or
promises for a fee employment to two or
more persons shall be deemed engaged in
recruitment and placement.
Migrant Workers Act of 1995
OFWs
• Refers to a person who is to be 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
Elements of Illegal Recruitment (criminal aspect)
1. The offender undertakes any of the activities
within the meaning of recruitment and
placement
2. The offender has no valid license or authority
required by law to enable him to lawfully
engage in recruitment and placement of worker
OR
3. The offender has a license or authority but he
commits any of the acts enumerated in Sec. 6 of
RA 8042, as amended (14 acts)
Three modes of committing Illegal Recruitment
1. Illegal recruitment per se, when recruitment is done
by a non-licensee or non-holder of authority;
2. Illegal recruitment practices, as listed [a to m] in the
same provision; and
3. Prohibited practices amounting to illegal recruitment
as numerically listed, still in Sec. 6 of RA 8042
(Toston y Hular v. People, 2021)
14 Acts considered as Illegal recruitment
a. To charge or accept directly or indirectly any
amount greater than that specified in the
schedule of allowable fees prescribed by the
Sec. of Labor and Employment, or to make a
worker pay or acknowledge any amount
greater than that actually received by him as
a loan or advance;
b. To furnish or publish any false notice or
information or document in relation to
recruitment or employment;
c. To give any false notice, testimony or
document or commit any act of
misrepresentation for the purpose of
securing a license or authority under the
Labor Code, or for the purpose of
documenting the hired workers with the
POEA, which include the act of reprocessing
workers through a job order that pertains to
nonexistent work, work different from the
actual overseas work, or work with a
different employer whether registered or not
with the POEA;
d. To include or attempt to induce a worker
already employed to quit his employment in
order to offer him another unless the transfer
is designed to liberate a worker from
oppressive terms and conditions of
employment;
e. To influence or attempt to influence any
person or entity not to employ any worker
who has not applied for employment
through his agency or who has formed,
joined or supported, or has contacted or is
supported by any union or workers’
organization;
f. To engage in the recruitment or placement of
workers in jobs harmful to public health or
morality or to the dignity of the Republic of
the Philippines;
g.
h. To fail to submit reports on the status of
employment, placement vacancies,
remittance of foreign exchange earnings,
separation from jobs, departures and such
other matters or information as may be
required by the Secretary of Labor and
employment;
i. To substitute or alter to the prejudice of the
worker, employment contracts approved
and verified by the DOLE from the time of
actual signing thereof by the parties up to
and including the period of the expiration of
the same without the approval of the DOLE;
HOBIBII NOTES in LABOR LAW 2021 4
 j. For an officer or agent of a recruitment or recruitment shall suffer fine of not less than 2M
placement agency to become an officer or the penalty of nor more than 5M shall
member of the Board of any corporation imprisonment of not be imposed if illegal
engaged in travel agency or to be engaged less than 12 years and 1 recruitment constitutes
directly or indirectly in the management of day but not more than economic sabotage as
travel agency; 20 years and a fine of defined therein.
k. To withhold or deny travel documents from not less than 1M nor
applicant workers before departure for more than 2M "Provided, however,
monetary or financial considerations, or for That the maximum
any other reasons, other than those penalty shall be
authorized under the Labor Code and its imposed if the person
implementing rules and regulations; illegally recruited is less
l. Failure to actually deploy a contracted than eighteen (18) years
worker without valid reason as determined of age or committed by
by the DOLE; a non-licensee or non-
m. Failure to reimburse expenses incurred by holder of authority.
the worker in connection with his
documentation and processing for purposes "In every case,
of deployment, in cases where the conviction shall cause
deployment does not actually take place and carry the automatic
without the worker’s fault; revocation of the license
n. To allow a non-Filipino citizen to head or or registration of the
manage a licensed recruitment/manning recruitment/manning
agency. agency, lending
institutions, training
4 Types of Illegal Recruitment school or medical clinic.
1. Simple or Licensed: Illegal recruitment
committed by a licensee or holder of authority Shall prescribe in 5 Shall prescribe in 20
against one or two persons only if they commit years years
any of the acts enumerated under Sec. 6 of RA
8042 Nature of the Liability of Local Recruitment Agency
2. Non-licensed: committed by a person who has and Foreign Principal
neither a license nor authority • Local agency is solidarily liable with foreign
3. Syndicated: that carried out by a group of 3 or principal.
more persons in conspiracy or confederation • Severance of relations between local agents and
with one another foreign principal does not affect liability of local
4. Large Scale or qualified: that committed recruiter.
against 3 or more persons, individually or as a
group 7 Prohibited Acts (committed by those with authority
or license to recruit):
ILLEGAL RECRUITMENT 1. Grant a loan to an overseas Filipino worker
(involving economic sabotage) with interest exceeding eight percent (8%)
a syndicate in large scale per annum, which will be used for payment
If carried out by a If committed against 3 of legal and allowable placement fees and
group of 3 or more or more persons make the migrant worker issue, either
persons conspiring or individually or as a personally or through a guarantor or
confederating with one group accommodation party, postdated checks in
another relation to the said loan;
2. Impose a compulsory and exclusive
ILLEGAL RECRUITMENT arrangement whereby an overseas Filipino
Simple Illegal Involving Economic worker is required to avail of a loan only
Recruitment Sabotage from specifically designated institutions,
If the recruitment is When committed by a entities or persons;
carried out by not more syndicate or in a large 3. Refuse to condone or renegotiate a loan
than 2 persons or scale incurred by an overseas Filipino worker after
committed against not the latter's employment contract has been
more than 2 persons prematurely terminated through no fault of
Any person found The penalty of life his or her own;
guilty of illegal imprisonment and a

HOBIBII NOTES in LABOR LAW 2021 5

 4. Impose a compulsory and exclusive
arrangement whereby an overseas Filipino
worker is required to undergo health
examinations only from specifically
designated medical clinics, institutions,
entities or persons, except in the case of a
seafarer whose medical examination cost is
shouldered by the principal/shipowner;
5. Impose a compulsory and exclusive
arrangement whereby an overseas Filipino
worker is required to undergo training,
seminar, instruction or schooling of any kind
only from specifically designated
institutions, entities or persons, except for
recommendatory trainings mandated by
principals/shipowners where the latter
shoulder the cost of such trainings;
6. For a suspended recruitment/manning
agency to engage in any kind of recruitment
activity including the processing of pending
workers' applications; and
7. For a recruitment/manning agency or a
foreign principal/employer to pass on the
overseas Filipino worker or deduct from his
or her salary the payment of the cost of
insurance fees, premium or other insurance
related charges, as provided under the
compulsory worker's insurance coverage.
o Any person found guilty of any of the
prohibited acts shall suffer the penalty of
imprisonment of not less than 6 years and 1
day but not more than 12 years and a fine of
not less than P500,000.00 nor more than 1M
o If the offender is an alien, he or she shall, in
addition to the penalties herein prescribed,
be deported without further proceedings.
o In every case, conviction shall cause and
carry the automatic revocation of the license
or registration of the recruitment/manning
agency, lending institutions, training school
or medical clinic.
NB: A person may be charged and convicted for both
illegal recruitment and estafa because they are
entirely different offenses and neither one necessarily
includes or is necessarily included in the other. Illegal
recruitment is malum prohibitum, while estafa is
mala in se. In the first, criminal intent of the accused is
not necessary for conviction. In the second, such
intent is imperative.
Theory of Imputed Knowledge ascribes knowledge of
the agent to the principal. The principal is cognizant
of a circumstance of fact attributed to the agent
because his position or relationship with the later.
Sunace International v. NLRC
Facts: Sunace deployed Divina as a DH in Taiwan for a
one-year contract. After the expiration of her contract, she
continued working for the foreign principal for two more
years. When she arrived in Manila, she filed a complaint
against Sunace because she was jailed for 3 months and she
was underpaid. Sunace denied liability because it has no
knowledge nor did it consent to the extension of Divina’s
contract. Divina insists on Sunace’s liability based on the
theory of imputed knowledge.
Ruling: Sunace is not liable. Theory of Imputed Knowledge
is not applicable because the theory of imputed knowledge
ascribes the knowledge of the agent (Sunace) to the foreign
principal not the other way around. There being no
substantial proof that Sunance knew of and consented to the
bound under the 2-year extension, it cannot be said be privy
thereto.
Further, there was an implied revocation of Sunance’s
agency relationship with the foreign principal when, after
the termination of the original employment contract, the
foreign principal direcly negotiated with Divina and entered
into a new and separate contract in Taiwan.
COURTS EXERCISING JURISDICTION ON
ILLEGAL RECRUITMENT CASES
Criminal Action Money Claims
RTC where the offense LA where the offended
was committed or party resides or the
where the offended principal place of
party actually resides at business of the agency,
the time of the at the option of the
commission of the OFW
crime
Sec. 10
LA has jurisdiction over complaints filed by OFW. The
liability of the principal and the placement agency for
any and all claims of OFW is joint and several. If the
recruitment or placement agency is a juridical being,
the corporate officers and directors and partners as the
case may be, shall themselves be jointly and solidarily
liable with the corporation or partnership for the
aforesaid claims and damages.
o In case of termination of overseas employment
without just, valid or authorized cause as
defined by law or contract, or any unauthorized
deductions from the migrant worker’s salary,
the worker shall be entitled to the full
reimbursement of his placement fee and the
deductions made with interest at 12% per
annum, plus his salaries for the unexpired
portion of his employment contract.
When can a foreign law govern an overseas employment
contract?
Only if the following elements are present:
1. That is expressly stipulated in the overseas
employment contract that a specific foreign
law shall govern;
HOBIBII NOTES in LABOR LAW 2021 6
 2. That the foreign law invoked must be proven
before the courts pursuant to the Philippine
rules on evidence;
3. That the foreign law stipulated in the
overseas employment contract must not be
contrary to law, morals, good customs,
public order or public policy; and
4. That the overseas employment contract must
be processed through POEA
Ban on Direct-Hiring
• GR: Direct Hiring of Filipino workers overseas
employment is not allowed
• Exceptions: (DION)
1. Members of the Diplomatic corps;
2. International organizations;
3. Other employers as may be allowed by
DOLE; and
4. Name hires – individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation of any agency. Their hiring,
nonetheless, shall pass through the POEA
for processing purposes.
Mandatory Remittances of FOREX Earnings
• Objective: To ensure volume of the Philippine
FOREX reserves
• All Overseas Filipino Workers must remit a
portion of their FOREX earnings to their families
EXCEPTION:
® OFW’s immediate family is residing with
him abroad
® Filipino servicemen working in US military
installations
® Immigrants and Filipino
professionals/workers with United
Nations agencies or specialized bodies.
• Amount of Remittance
® 80% for Seamen/Mariners
® 70% - contractors and construction
companies, doctors, engineers, teachers,
nurses, other professional workers whose
employment contracts provide for free
board and lodging
® 50% - other professionals without free
board and lodging
® 50% - domestic and service and others
Private Recruitment and Placement Agency (PRPA)
for Local Employment – DO 141-14
Who are qualified to open PRPA?
1. Filipino citizen or 75% of authorized capital
stock is owned and controlled by Filipino
citizen;
2. Minimum net worth of P1M or paid-up capital
of P1M
3. Not otherwise disqualified by law or other
government rules and regulations to engage in
the business of recruitment and placement of
workers for local employment.
Who are disqualified?
1. Those who are convicted of illegal recruitment,
trafficking in persons, anti-child labor violation
or crimes involving moral turpitude;
2. Those against whom probable cause or prima
facie finding of guilt for illegal recruitment or
other related cases exist
3. Those who licenses have been previously
revoked
4. Cooperatives whether registered or not under
the Cooperative Act of the Philippines
5. Law enforcers and any officials and employees
of DOLE
6. Sole proprietors of duly licensed agencies are
prohibited from securing another license to
engage in recruitment and placement
7. Sole proprietors, partnerships or corporations
licensed to engage in private recruitment and
placement for local employment are prohibited
from engaging in job contracting or sub-
contracting
LABOR STANDARDS
Labor Standards
• refer to the terms and conditions of
employment that the employers must
comply with and to which employees are
entitled as a matter of legal right; it deals
with the minimum requirements prescribed
by existing laws, rules and regulations
relating to wages, hours of work, cost-of-
living allowance, and other monetary and
welfare benefits.
Labor Relations
• defines the status, rights, and duties and the
institutional mechanisms that govern the
individual and collective interactions of
employers, employees, or their
representatives
Security of tenure is a constitutionally guaranteed
right. Employees may not be terminated from their
regular employment except for just or authorized
causes under the Labor Code and other pertinent laws.
(SME Bank, Inc. v. Gaspar, 2013).
Just Causes Authorized Causes
Art. 297 Arts. 298 and 299
HOBIBII NOTES in LABOR LAW 2021 7
Two-Fold Due Process Requirement: • National consultative and advisory body to the
1. Substantive aspect – deals with the legality of President and Congress on matters relating to
the act of dismissal (Arts. 294, 297 to 299) wages, incomes and productivity
2. Procedural aspect – deals with the legality of the • Formulates policies and guidelines on wages,
manner of dismissal (Arts. 292 b and 298); two incomes and productivity improvement
notice rule • Does not set wage rates
• Review wage rates set by regional wage boards
WAGES • Composed of: (example of tripartism)
• Sec. 97 (f) ® Secretary of Labor
• Consequence of entering an ER-EE relationship; ® Director General of NEDA
it is the responsibility of the employer
® 2 members representing workers
® 2 members representing employers
Facilities Supplements
® Executive Director
Shall include all articles Constitute extra
or services for the remuneration or special
Regional Tripartite Wages and Productivity Boards
benefit of the employee privileges or benefits
(RTWPB)
or his family but shall given to or received by
• Determines and fixes MINIMUM WAGE RATES
not include tool of the the laborers over and
in their regions, province or industries
trade or articles or above their ordinary
services primarily for earnings or wages • Issues WAGE ORDERS
the benefit of the
Pursuant to its authority, the Regional Wage Boards may
employer or necessary
issue wage orders which set the daily minimum wage rates.
to the conduct of the
employer’s business It has no authority to grant an across-the-board wage
increase. (Metropolitan Bank and Trust Company v.
Part of the wage
NWPC, 2007)
For the benefit of the For the benefit of the
employee or his/her employer
13th Month Pay (PD 851, as amended)
family
• Shall not be less than 1/12 of the total basic salary
earned by an employee in a calendar year
NB: The nature of the articles or services is not the
determining factor. A service may be a facility or a • The basic salary of an employee for the purpose
of computing the 13th month pay shall include all
supplement depending on who is primarily benefitted.
remunerations or earnings paid his/her
Requirements before deducting facilities from wages: employer for services rendered. It does not
include allowances and monetary benefits which
1. Proof that the facilities are customarily furnished
are not considered or integrated as part of the
by the trade
regular or basic salary, such as the cash
2. Voluntarily accepted in writing by the employee
3. Facilities are charged at a fair and reasonable equivalent of unused vacation and sick leave
value credits, overtime, premium, night shift
differential and holiday day, and cost of living
allowance (COLA)
BONUS
• NO 13th MONTH: those who are paid on purely
• It is an amount granted and paid to an employee
for his industry and loyalty which contributed to commission, boundary or task basis, and those
the success of the employer’s business and made who are paid a fixed amount for performing
possible the realization of profits specific work, irrespective of the time consumed
in the performance
• Bonus, as a GR, is not demandable as a matter of
right. It is a management prerogative, given in
HOURS OF WORK
addition to what is ordinarily received by or
• Shall not exceed 8 hours of work in a day (Art.
strictly due to the recipient
83); normal work hours is 8, it can be lower
• EXCEPTIONS:
1. When it was promised to be given without • GR: no worker can be compelled to work beyond
any conditions imposed for its payment in 8 hrs
which case it is deemed part of the wage; • Actual work or performance of task + waiting
2. When it has ripened into practice time + rest periods of short duration during
working hours = hours worked (Art. 84)
Wage Fixing (RA 6727)
National Wages and Productivity Commission WAITING TIME IS CONSIDERED AS HOURS WORK
(NWPC) IF:
• It is an integral part of his work;

HOBIBII NOTES in LABOR LAW 2021 8

• The employee is required or engaged by the
employer to wait; OR
• When employee is required to remain on call in
the employer’s premises or so close thereto that
he cannot use the time effectively and gainfully
for his own purpose.
WORKING WHILE ON CALL IS COMPENSABLE:
• When employee is required to remain on call in
the employer’s premises or so close thereto that
he cannot use the time effectively and gainfully
for his own purpose
• HOWEVER, if he is not required to remain on the
employer’s premises but is merely required to
leave word at his home or with company officials
where he may be reached, he is not considered
working while on call.
POWER INTERRUPTIONS
• First 20 minutes is compensable but the
succeeding minutes not compensable
• If despite the lapse of the 1st 20 minutes, the
employees are required to stay in their
workplaces, such time is compensable
• Brownout running for more than 20 minutes is
not compensable if employee can use the time
effectively for their own interest
TRAVEL TIME
• Travel from home to work – not compensable
• EXCEPT:
1. Where the worker is made to work on an
emergency call and travel is necessary in
proceeding to the workplace;
2. Travel is done through a conveyance
provided by the employer
3. Travel is done under the supervision and
control of the employer.
• Travel that is all in a day’s work and travel away
from home are compensable
MEAL PERIOD
• May be less than 60 minutes, but should not be
less than 20 minutes and the shortened meal
time must be with full pay, under the following
instances:
a. Where the work is non-manual work in
nature or does not involve strenuous
physical exertion;
b. Where the establishment regularly operates
not then 16 hours a day;
c. In cases of actual or impending
emergencies or there is urgent work to be
performed on machineries, equipment or
installations to avoid serious loss which the
employer would otherwise suffer;
d. Where the work is necessary to prevent
serious loss of perishable goods
• If less than 20 minutes, it becomes only a rest
period and is thus considered as work time
OVERTIME PAY
• Overtime work must be with the consent of the
employer or the employer has to allow the
employee to work overtime
• At least 25% for ordinary days while at least 30%
if done during holiday or rest day (Art. 87)
• Overtime pay cannot be waived expressly or
impliedly. Any contrary stipulation is null and
void, as it is intended to benefit laborer and
employees.
® EXCEPTIONS:
a. When the waiver is made in
consideration of benefits and
privileges which may be more than
what will accrue to them in overtime
pay; and
b. Compressed work week
• Basis of overtime pay (basic pay + facilities if any)
• How computed:
1. Compute hourly rate
2. Compute overtime premium: hourly rate x
25%
3. Compute overtime pay per hour: hourly rate
+ overtime premium
4. Multiply number of OT hours to the overtime
pay per hour
• Sample Problem: 10 hours of work rendered in
one day and the employee’s wage rate is
P640/day
1. Hourly rate: P640/8 hrs = P80/hr
2. Overtime premium: P80 x 25% = P20
3. OT pay per hour: P80 + P20 = P100
4. Total OT pay for 2 hrs: P200 (P100 x 2 hrs)
NIGHT SHIFT DIFFERENTIAL (NSD)
• From 10PM to 6am
• 10% of his regular wage for each hour of work
• Note that night shift differential is on top of
Overtime Premium
• Sample Problem: Employee’s wage rate is
P640/day and 2 hours were rendered from 10pm-
12mn
1. Hourly rate: P640/8 hrs = P80/hr
2. NSD rate: P80 x 10% = P8
3. NSD for 2 hrs: P16 (P8 x 2 hours)
Problem: X works from 8am to 5pm. In June 1, he was
asked by his employer to work from 8am to 11pm.
How much is his compensation for June 1, if he
receives P600 per day?
1. Get the hourly wage: P600/8 hours = P75
2. Compute the OT premium between 5-11pm
(25% x wage hour) + wage/hour x no. of hrs
= (18.75 + 75) x 6
= 93.75 x 6
HOBIBII NOTES in LABOR LAW 2021 9
 = 562.50 1. Be present on the
3. Compute NSD (10% of OT hourly rate) x no day immediately
of hours worked from 10pm to 5am preceding the 1st
= 93.75 x 10% x 1 hour holiday
= 9.38 2. Be on leave with pay
4. Total
= P600 + P562.50 + P9.38 New Year’s Day Chinese New Year
= P1,171.88 *Maundy Thursday EDSA Revolution
*Good Friday Anniversary
COMPRESSED WORK WEEK (DOLE Department Araw ng Kagitingan *Ninoy Aquino Day
Advisory No. 4, s. 2010) Labor Day *All Saints’ Day
• Flexible work arrangement: Independence Day *Last Day of the Year
1. Compressed work week, where the normal National Heroes Day *Feast of the
week is reduced to less than 6 days, but the Bonifacio Day Immaculate Conception
total number of work hours of 48 hours per Christmas of Mary
week shall remain. In this arrangement, the Rizal Day
normal work day is extended to more than 8 *Eid’l Fitr *Nonworking
hours, but should not exceed 12 hours, *Eid’l Adha
without corresponding overtime premium
2. Gliding or flexi-time schedule, where the *movable date
employees are required to complete the core
work hours, but are free to determine their Sample Problems:
arrival and departure time • OT Pay - Holiday: 10 hours of work rendered on
3. Flexi-holidays schedule, where the employees a holiday; Employee’s wage rate: P640/day
agree to avail the holidays at some other days, 1. Compute rate for the day: P640 x 2 = P1,280
provided there is no diminution of existing 2. Compute hourly rate: P1,280/8hrs = P160/hr
benefits as a result of such arrangement. 3. OT Premium (at 30% not 25%): P160 x 30% =
P48
• Conditions of Compressed Work Week: 4. Total OT/hour: P160 + P48 = P208
1. It is expressly and voluntarily supported by 5. Total OT pay for 2 hrs: P416
majority of the employees affected
2. If work is hazardous, a certification is needed • OT Pay – Special/Rest Day: 10 hours of work
from an accredited safety organization of the rendered on a holiday; Employee’s wage rate:
firm’s safety committee that work beyond 8 P640/day
hours is within the limits or levels of exposure 1. Compute rate for the day: P640 x 130% = P832
set by DOLE’s occupational safety and health 2. Compute hourly rate: P832/8hrs = P104/hr
standards. 3. OT Premium (at 30% not 25%):
3. DOLE is duly notified. P104 x 30% = P31.20
4. Total OT/hour: P104 + P31.20 = P135.20
HOLIDAY SPECIAL DAY 5. Total OT pay for 2 hrs: P270.40
No work, WITH PAY Employee is not
required to work NON-DIMINUTION OF BENEFITS
NO WORK, NO PAY • Benefits being given to employees cannot be
taken back or reduced unilaterally by the
With work, DOUBLE With work, EXTRA pay employer because the benefit has become part of
PAY (30% premium) the employment contract written or unwritten
® 200% of the basic • The rule is applicable if:
wage if worked 1. The grant of the benefit is founded on a policy
® 100% even if said or has ripened into a practice over a long
holiday is period;
unworked 2. The practice is consistent and deliberate
® 300% if he worked 3. The practice is not due to error in the
on 2 regular construction or application of a doubtful or
holidays falling on difficult question of law; and
the same day 4. The diminution or discontinuance is done
unilaterally by the employer
To be entitled to 2
successive holiday, the
employee must:

HOBIBII NOTES in LABOR LAW 2021 10

LEAVES ® Under RA 11210, 7 days of the
maternity leave can be
Service ® 5 days leave with pay assigned to the child’s father
Incentive ® Has rendered at least 1 year of (married or unmarried)
Leave (Sec. 95) service, whether continuous ® It applies to first 4 deliveries
or broken of the employee’s lawful wife
® Shall be commutable to its with whom he is cohabiting
money equivalent if not used Leave for ® 10 days for legal and medical
or exhausted at the end of the VAWC victims concerns
year (RA 9262) ® As the need arises, at the
Expanded ® 105 days maternity leave option of the employee
Maternity WITH PAY ® Requirement: A certification
Leave (RA ® If SOLO parent: additional 15 that an action relative to the
11210, 105-Day days WITH PAY; additional matter is pending
Expanded 30 days WITHOUT PAY Special Leave ® Any female employee
Maternity (Optional) for Women regardless of age and civil
Leave Act) ® Married or unmarried (RA 9710) status shall be entitled to a
(marital status of the special leave benefit under
employee is immaterial) such terms and conditions
® Leave can be availed through provided herein
a combination of pre-natal ® 2 months WITH PAY based
and post-natal, provided on her gross monthly
post-natal shall be at least compensation
60days (new) ® For gynecological disorders
® For miscarriage or emergency requiring surgical procedure
termination of pregnancy: 60 ® Gynecological disorders refer
days only to disorders that would
® No longer limited to 4 require surgical procedures
deliveries such, but not limited to
® Employers not covered: dilatation and curettage and
a. Those operating those involving female
distressed reproductive organs such as
establishments; the vagina, cervix, uterus,
b. Those retail/service fallopian tubes, ovaries,
establishments and breast, adnexa and pelvic
other enterprises floor, as certified by a
employing not more competent physician. It shall
than 10 workers; also include hysterectomy,
c. Those considered as ovariectomy and
micro-business mastectomy.
enterprises and engaged ® Conditions for Entitlement:
in the production, 1. She has rendered at least
processing, or 6 months continuous
manufacturing of aggregate employment
products or service for the last 12
commodities including months prior to surgery;
agro-processing, 2. She has filed an
trading, and services, application for special
whose total assets are leave with her employer
not more than P3M within a reasonable
d. Those who are already period of time from the
providing similar or expected date of surgery
more than the benefits or within such period as
herein provided may be provided by
Paternity ® 7 days company rules and
Leave (RA ® Married and cohabiting with regulations or CBA
8187) the wife 3. She has undergone
surgery due to

HOBIBII NOTES in LABOR LAW 2021 11

 gynecological disorders
as certified by a within a reasonable
competent physician
Parental (Solo ® Not more than 7 days every
Parent) Leave year shall be granted to any
RA 8972 solo parent employee who
has rendered service of at
least 1 year
® Parent left solo/alone due to
the ff:
1. Death of spouse
2. Detention or service of
sentence of spouse for at
least 1 year
3. Physical and/or mental
incapacity of spouse
4. Legal or de facto
separation from spouse
for at least 1 year
5. Declaration of nullity or
annulment of marriage
as decreed by a court or
by a church
6. Abandonment of spouse
for at least 1 year
® Solo Parents
a. Unmarried
mother/father who
preferred to keep and
rear her/his
child/children
b. Any other person who
solely provides parental
care and support to a
child or children
c. Any family member
who assumes the
responsibility of head of
family as result of the
death, abandonment,
disappearance or
prolonged absence of
the parents or solo
parent
d. A woman who give
birth as a result of rape
and other crimes against
chastity even without a
final conviction of the
offender, provided, that
the mother keeps and
raises the child
® Conditions for entitlement:
1. Employee has rendered
at least 1 year of service,
whether continuous or
broken;
2. Employee has notified
the employer that
he/she will avail of it,
period of time; and
3. Employee has presented
to the employer a solo
parent ID card, which
may be obtained from
the DSWD office of the
city or municipality
where he/she resides.
® In the event that the parental
leave is not availed of, it shall
not be convertible to cash,
unless specifically agreed on
previously
MIGRANT WORKERS & OVERSEAS FILIPINO ACT
(RA 8042, as amended by RA 10022
OFWs
• a person who is to be 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
® “who is to be engaged” – no need for actual
deployment to happen before this law shall
apply
® Distinguished from overseas Filipinos,
OFWs are the workers
Overseas Filipinos
• Dependents of migrant workers and other
Filipino nationals abroad who are in distress as
mentioned in Secs. 24 and 26
Overseas Filipino in distress
• An overseas Filipino who had a medical,
psycho-social or legal assistance problem
requiring treatment, hospitalization, counselling,
legal representation as specified in Rule IX of
these Rules or any other kind of intervention
with the authorities in the country where he or
she is found
Sec. 4. Deployment of Migrant Workers. – The State shall
allow the deployment of overseas Filipino workers only in
countries where the rights of Filipino migrant workers are
protected. Xxx The government recognizes any of the
following as a guarantee on the part of the receiving
country for the protection of the rights of overseas Filipino
workers:
a. It has existing labor and social laws protecting the
rights of workers, including migrant workers;
HOBIBII NOTES in LABOR LAW 2021 12
b. It is a signatory to and/or bilateral agreement or
arrangement with the government on the protection
of the rights of overseas Filipino workers;
c. It has concluded a bilateral agreement or
arrangement with the government on the protection
of the rights of overseas Filipino workers;
Provided that, the receiving country is taking
positive, concrete measures to protect the rights of
migrant workers in furtherance of any of the
guarantees under subparagraphs a, b and c hereof.
EMPLOYMENT OF ALIENS
• Arts. 40-42 of the Labor Code
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. xxx The
failure of the foreigner to obtain an employment permit, by
itself, necessitates the dismissal of his labor complaint.
(McBurnie v. Ganzon, EGI-Managers, Inc., 2013)
SPECIAL PROVISIONS FOR WOMEN WORKERS
• Art. 135 Prohibited Acts
• Acts of Discrimination:
1. Payment of a lesser compensation,
including wage, salary or other form of
remuneration and fringe benefits, to a
female employees as against a male
employee, for work of equal value; and
2. Favoring a male employee over a female
employee with respect to promotion,
training opportunities, study and
scholarship grants solely on account of
their sexes.
• Stipulation against marriage (Art. 136)
• Facilities for women:
1. Provide seats proper for women and
permit them to use the seats when they are
free from work or during office hours
provided the quality of the work will not
be compromised;
2. Established separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for women;
3. Lactation station (employer may be
exempted if they have no female clients,
and it has no nursing or pregnant
employee)
• SEXUAL HARASSMENT (RA. 7877)
® Work, education or training-related sexual
harassment is 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, request 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.
® In a 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
® In an education or training environment,
Sexual Harassment is committed:
1. Against one who is under the care,
custody or supervision of the
offender;
2. Against one whose education,
training, apprenticeship or tutorship
is entrusted to the offender;
3. When the sexual favor is made a
condition to the giving of a passing
grade, or the granting of honors and
scholarships, or the payment of a
stipend, allowance or other benefits,
privileges, or consideration; or
4. When the sexual advances result in
an intimidating, hostile or offensive
environment for the student, trainee
or apprentice
® 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)
HOBIBII NOTES in LABOR LAW 2021 13
 ® The crime of gender-based sexual influence or moral • Perpetrator need
harassment in the workplace includes the ascendancy over not be a person
following: the offended party having authority
1. An act or series of acts involving • Domingo v. Reyala or moral
any unwelcome sexual advances, • The gravamen of the ascendancy over
requests or demand for sexual offense in sexual the victim; it may
favors or any act of sexual nature, harassment is not be committed
whether done verbally, physically the violation of the between peers or
or through the use of technology employee’s sexuality by a subordinate
such as text messaging or electronic but the abuse of against a superior
mail or through any other forms of power by the (Sec. 16)
information and communication employer. • Duties of
systems, that has or could have a Employees and
detrimental effect on the conditions Co-workers (Sec.
of an individual’s employment or 18) – not found in
education, job performance or sexual harassment
opportunities; law
2. A conduct of sexual nature and
other conduct-based on sex The purpose or policy The purpose or policy
affecting the dignity of a person, are: are:
which is unwelcome, unreasonable, o To value the o To value the
and offensive to the recipient, dignity of every dignity of every
whether done verbally, physically individual; human person and
or through the use of technology o To enhance the guarantee full
such as text messaging or electronic development of its respect for human
mail or through any other forms of human resources; rights;
information and communication o To guarantee full o To recognize the
systems; respect for human role of women in
3. A conduct that is unwelcome and rights; and nation-building
pervasive and creates an o To uphold the and ensure the
intimidating, hostile or humiliating dignity of fundamental
environment for the workers, equality before the
recipient: Provided, That the crime employees, law of women and
of gender-based sexual harassment applicants for men; and
may also be committed between employment, o To recognize that
peers and those committed to a students or those both men and
superior officer by a subordinate, or undergoing women have
to a teacher by a student, or to a training, equality, security
trainer by a trainee; and instruction or and safety not
4. Information and communication education. only in private,
system refers to a system for Towards this end, but also on the
generating, sending, receiving, all forms of sexual streets, public
storing or otherwise processing harassment in the spaces, online,
electronic data messages or employment, workplaces and
electronic documents and includes education or educational and
the computer system or other training training
similar devices by or in which data environment are institutions.
are recorded or stored and any hereby declared
procedure related to the recording unlawful.
or storage of electronic data The classification made The classification made
messages or electronic documents. in violation of Anti- in violation of Safe
Sexual Harassment Law Spaces are:
ANTI-SEXUAL SAFE SPACES ACT are: a. Gender-Based
HARASSMENT ACT (Bawal Bastos Law) a. In a work-related Sexual
• There is a • Acts constituting or employment Harassment in
demand/request sexual harassment environment Streets and Public
for sexual favors are broader than sexual harassment Spaces
• Offender has the Sexual b. In an education or
authority, Harassment Act training

HOBIBII NOTES in LABOR LAW 2021 14

 environment b. Gender-Based employer’s family are employed: Provided,
sexual harassment Online Sexual however, That his employment neither
Harassment endangers his life, safety, health and morals, or
c. Gender-Based impairs his normal development; Provided
Sexual further, That the parent or legal guardian shall
Harassment in the provide the said minor child with the
Workplace prescribed primary and/or secondary
d. Gender-Based education; or
Sexual 2. Where a child’s employment or
Harassment in participation in public entertainment or
Educational and information through cinema, theater,
Training radio or televisions is essential: Provided,
Institution The employment contract is concluded by the
Who may be victims? child concerned, if possible, and the approval
Any person or a. in Streets and of the DOLE; and Provided, That the following
employee who is Public Spaces requirements in all instances are strictly
subjected to a sexual ® Any person complied with:
favor made as a a. The employer shall ensure the
condition in hiring, b. Online Sexual protection, health, safety, morals and
employment, re- Harassment normal development of the child;
employment or ® Any person b. The employer shall institute measures to
continued employment c. in the Workplace prevent the child’s exploitation or
of an individual, or ® employer discrimination taking into account the
granting said individual ® employee system and level of remuneration, and
favorable the duration and arrangement of
d. in Educational and
compensations, terms working time; and
Training
and conditions of c. The employer shall formulate and
Institution
employments, implement, subject to the approval and
® minor
promotions, privileges supervision of competent authorities, a
students
or the refusal to grant continuing program for training and
® principals,
sexual favor results in skills acquisition of the child.
school heads
limiting, segregating, or • Allowed Hours of Work
® teachers,
classifying in any way Below 15 years 15 year but below 18
instructors,
that would years
professors
discriminate, deprive, Not more than 4 Not more than 8
® coaches,
or diminish the hours/day hours/day
trainers; or
employment Not more than 20 In no case shall exceed
opportunities; impair ® any older
hours/week and 40 hours/week
the employees’ rights or person who
Not allowed to work Not allowed to work
privileges under the has
between 8PM and 6AM between 10PM and
labor laws; would result authority,
of the following day 6AM of the following
in an intimidating, influence or
day
hostile, or offensive moral
environment. ascendancy
EMPLOYMENT OF HOUSEHELPERS
over another
In an education or in an
Labor Code Kasambahay Law
training environment, education or
(RA 10361)
against one who is training
instittion “Domestic or household “Domestic worker or
under the care, custody service” shall mean service Kasambahay” refers to any
or supervision of the in the employer’s home person engaged in
offender which is usually necessary domestic work within an
or desirable for the employment relationship
EMPLOYMENT OF MINORS maintenance and such as, but not limited to,
• RA 7610, as amended by RA 7658 & RA 9231 enjoyment thereof and the following: general
• Children below 15 years of age shall not be includes ministering to the househelp, nursemaid or
employed EXCEPT: personal comfort and “yaya”, cook, gardener, or
1. When a child works directly under the convenience of the laundry person, but shall
sole responsibility of his parents or legal members of the employer’s exclude any person who
guardian and where only members of the performs domestic work

HOBIBII NOTES in LABOR LAW 2021 15

 household, including only occasionally or
services of family drivers. sporadically and not on an
occupational basis.
*does not include family
drivers
Kasambahay Law
• Does not apply to :
1. Service providers
2. Family drivers
3. Children under foster arrangement
4. Any other person who performs work
occasionally or sporadically on an
occupational basis
• Basic Rights of a Kasambahay:
1. Minimum Wage
2. Mandatory benfits, daily and weekly rest
periods, SIL pays, 13th month pay
® SIL non-cummulative
3. Freedom from interference in the disposal
of wages
4. Coverage under SSS, Philhealth and Pagibig
® Only after 1 month of service
® If not more then 5K, shouldered solely
by the employer
® If more than 5K, the ER-EE share table
shall be followed
5. Standard Treatment, Board, Lodging and
Medical Attendance
6. Right to Privacy
7. Access to education
8. Join and form a labor organization
9. Provided with copy of employment contract
and certificate of employment
10. Terminate the employment
• Minimum Wage:
® P2,500/month – NCR
® P2,000/month – chartered and 1st class
municipalities
® P1,500/month – other municipalities
• Domestic worker is entitled to 13th month pay
(Sec. 25)
• Rest periods: 8 hrs/day and at least 24 hrs/week
• 5 day Service Incentive Leave
® Has rendered at least 1 year of service
® Unused portion shall not be cumulative or
carried over to the succeeding years
® Unused leaves shall not be convertible to
cash
Sample Problem: X is the household helper of E. X
asked E if she can go on a vacation leave on December
2015. E refused. X threatened E that if he does not allow
her to go on a vacation leave, she will run away. To
ensure that X will not leave, E withheld the payment of
X’s salaries.
a. Did E violate any of X’s rights?
b. What entity has jurisdiction over a complaint
that X may file against E?
Answer:
a. Yes, E is guilty of economic abuse
b. DOLE Field/Provincial/Regional Office
having jurisdiction over the workplace or LA
Procedure for Settlement/Disposition of Labor Related
Disputes:
1. File complaint before DOLE Regional Office
having jurisdiction over the workplace and
undergoes 30 days SENA to settle dispute
2. If the parties settle the case, the complaint will
be dismissed. If no settlement is reached, the
DOLE Regional/Field Office will conduct
mandatory conference for 30 days.
3. If still no settlement, the DOLE RD will issue
a compliance order.
4. If the party is not satisfied with the order,
he/she can file an MR within 10 days with the
DOLE RD
5. If the party is still not satisfied, appeal to the
Secretary of Labor within 10 days
6. Decision of the Sec. of Labor is final and
executory but in order to file a petition for
certiorari under Rule 65, file an MR (following
the rules of exhaustion of administrative
remedies)
HANDICAPPED WORKER
• Art. 78 to 81
• Handicapped workers are those whose earning
capacity is impaired by age or physical or mental
deficiency or injury
• Magna Carta for Disabled Persons (RA 7277)
® Disabled Persons are 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
® Handicap refers to a disadvantage for a
given individual, resulting from an
impairment or a disability, that limits or
prevents the function or activity, that is
considered normal given the age and sex of
an individual
® Rights of a Disabled Person:
1. Equal Opportunity of Employment
2. Eligible to become learners and
apprentices
3. Right to Organize
4. Right against discrimination from
employment
® Sec. 5,
HOBIBII NOTES in LABOR LAW 2021 16
 ® Sec. 32. Discrimination on Employment
® Sec. 33. Employment Entrance Examination
® Incentives of Employers:
1. Employer employing disabled persons
are entitled to an additional deduction,
from their gross income, an amount
equivalent to 25% of the total amount
paid as salaries and wages to a
disabled person
2. Employers who modified or improved
their physical facilities to provide
reasonable accommodation to
disabled persons is entitled to an
additional deduction, an amount
equivalent to 50% of the direct costs of
improvements and modifications.
Labor Code RA 7277
Impairment of earning
capacity not physical
disability
HOMEWORKERS
• Art. 155
• Industrial Homework
® A system of production under which work
for an employer or contractor is carried by a
homeworker at his home. Materials may or
may not be furnished by the employer or
contractor.
® It differs from regular factory production
principally in that it is decentralized form of
production where there is ordinarily very
little supervision or regulation of methods
or work
• Homeworkers are entitled to:
1. SSS, Philhealth and Pagibig
2. Right to self-organization
• Distinguished from Work from Home
Arrangements (possible bar question)
ANTI-AGE DISCRIMINATION IN EMPLOYMENT
ACT (RA 10911)
• Applies to all employers, publishers, labor
contractors, or subcontractors, labor
organization, whether registered or not
• Prohibited discrimination by employer/
contractor:
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
• Exceptions to prohibited discrimination:
1. Age is a bona fide occupational
qualification necessary in the normal
operation of a particular business or
where the differentiation is based on
reasonable factors other than age;
2. The intent is to observe the terms of a
bona fide seniority system that is not
intended to evade the purpose of this
Act;
3. 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
4. The action is duly certified by the Sec. 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 (Sec. 3)
® Essentially work from home
• Work from home arrangement but the employee
shall be entitled to benefits that otherwise would
apply if the employee is working in the
employer’s premises (Sec. 4)
• Conditions for Telecommuting:
1. It may be offered in a voluntary basis or
as a result of collective bargaining
2. It should comply with the minimum
labor standards set by law, which shall
include compensable hours work,
minimum number of work hours,
overtime, rest days, leave benefits, social
welfare benefits, and security of tenure
3. The employer should provide the
telecommuting employee with relevant
written information on the terms and
conditions of employment
HOBIBII NOTES in LABOR LAW 2021 17
 4. Telecommuting employees should be
given the same treatment as employees
working at the employer’s premises
(rates of pay, benefits, performance
standards, free training on the technical
equipment at their disposal, and the
characteristics and conditions of
telecommuting)
5. The employer and the employee shall
agree on minimum standards that will
protect personal information and shall
utilize available technologies that
promote security and privacy (The
employee should commit to the
employers data privacy policy)
• Sec. 5 Fair Treatment. All telecommuting
employee shall:
1. 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;
2. Have the right to rest periods, regular
holiday, and special nonworking days
3. Have the same or equivalent workload
and performance standards as those of
comparable workers at the employer’s
premises
4. 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
5. Receive appropriate training on the
technical equipment at their disposal,
and the characteristics and conditions of
telecommuting
6. Have the same collectible rights as the
workers at the employer’s premises, and
shall not be barred from communicating
with worker’s representatives.
POST EMPLOYMENT
Key Principles in determining ER-EE Relationship:
1. The main basis is the law itself meaning the
parties cannot define their relationship. ER-EE
relationship is determined by operation of law
and not by any contractual agreement or
stipulations between the parties.
2. Compensation – mode, manner or designation –
is immaterial in determining the existence of ER-
EE relationship
Four-Fold Test:
1. HIRING – selection, engagement
2. WAGES – payment of compensation
3. FIRING – termination of relationship
4. CONTROL
• 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 sue of these
means. (Tongko v. Manufacturers Life Insurance,
2011)
® When we say “means” we are not
referring to tools or equipment we are
referring to the process of producing the
desired output/product
® The worker is not free to do anything;
the employer is interested not only in the
results but also in the methodology or in
the process in producing the results
® CONTROL Over the work v. Over the
Result: Control over the work is the
indicative of the ER-EE relationship
• The contractual stipulations do not pertain to,
much less dictate, how and when 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.
(Bernante v. PBA, 2011)
• To determine the existence of [an employer-
employee relationship], a case law has consistently
applied the four-fold test, to wit; (a) the selection
and engagement of the employee; (b) the payment
of wages; (c) the power of dismissal; and (d) the
employer’s power to control the employee on the
mean and methods by which the work is
accomplished. Of these criteria, the so called
“control test” is generally regarded as the most
crucial and determinative indicator of the presence
or absence of an er-ee relationship. Under this test,
an er-ee relationship is said to exist where the
person for whom the services are performed
reserves the right to control not only the end result
but also the manner and means utilized to achieve
the same. (Paragele v. GMA Network, Inc., 2020,
Leonen)
Art. 295 is not the basis of ER-EE relationship; it is a test of
regularity of employment
A position must be expressly mentioned in the By-law in
order to be considered as a corporate office. Thus, the creation
of an 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 the 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. (Matling Industrial v. Coros, 2010)
HOBIBII NOTES in LABOR LAW 2021 18
Workers who are not Employees:
• Corporate officers
• Talents (Jay Sonza case)
• Apprentice
• Learners
Art. 106
DO 174, 2017
Art. 109
Contracting
• Trilateral relationship in contracting
arrangement; Solidary liability
• In legitimate contracting or subcontracting
arrangement there exists:
a. An ER-EE relationship between the
contractor and the employees 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
Trilateral Relationship
• Parties:
a. Principal
b. Contractor
c. Employees
• Contracts:
1. Contract for a specific job, work or service
between the Principal and the Contractor
2. Contract of employment between the
Contractor and the employees
Permissible Contracting (Sec. 8, DO 174, 2017)
• Notwithstanding Sec. 5 and 6 hereof, contracting
or subcontracting shall only be allowed if all the
following circumstances concur:
a. The contractor or subcontractor is engaged
in a distinct and independent business and
undertakes to perform the job or work on its
own manner and method;
b. The contractor or subcontractor has
substantial capital to carry out the job
farmed out by the principal on his account,
manner and method, investment in the form
of tools, equipment, machinery and
supervision;
c. In performing the work farmed out, the
contractor or subcontractor is free from the
control and/or direction of the principal in
all matters connected with the performance
of the work except as to the results hereto;
and
d. The Service Agreement ensures compliance
with all the rights and benefits for all the
employees of the contractor or
subcontractor under the labor laws.
Labor-Only Contracting (Sec. 5, DO 174, 2017)
• which is totally prohibited refers to an
arrangement where:
a. i. the contractor or subcontractor does not
have substantial capital (capacity or
qualification of contractor), or
a. ii. The contractor or subcontractor does not
have investments in the form of tools,
equipment, machineries, supervision,
work premises, among others (nature of
the job contracted); and
a. iii. The contractor’s or subcontractor’s
employees recruited and placed are
performing activities which are directly
related to the main business operation of
the principal; OR
b. The contractor or subcontractor does not
exercise the right to control over the
performance of the work of the
employee.
Mere compliance with substantial capital requirement will
not suffice for a contractor to be considered as 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 totally of the facts and the surrounding
circumstances of the case which is determinative of the
parties’ relationship. Several factors may be considered, such
as,
® Whether the contractor was carrying on an
independent business;
® The nature and extent of the work;
® The skill required;
® The term and duration of the relationship;
® The right to assign the performance of specified
pieces of work;
® The control and supervision of the workers the power
of the employer with respect to the hiring, firing, and
payment of the workers of the contractor;
® The control of the premises;
® The duty to supply premises, tool, appliances,
materials and labor; and
® The mode, manner and terms of payment. (Coca-
Cola Bottlers v. Agito, 2009)
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 were directly
related to the principal business of such employer. Despite
the registration with DOLE and the capitalization of
27Million and machineries and equipment worth 12M
pesos, labor-only contracting still exists. (Quintanar v.
Coca-cola Bottlers, 2016, EN BANC)
HOBIBII NOTES in LABOR LAW 2021 19
Industries not covered by DO 174
• DO 174 applies only to trilateral relationship
which characterized contracting or
subcontracting arrangement. It does not
contemplate to cover information technology-
enabled services involving an entire or specific
business process such as:
® Business Process Outsourcing
® Knowledge Process Outsourcing
® Legal Process Outsourcing
® IT Infrastructure Outsourcing
® Application Development
® Hardware and/or Software Support
® Medical Transcription
® Animation Services
® Back Office Operations/Support
• Construction Industry, under the licensing
coverage of the Philippine Construction
Accreditation Board (PCAB), governed by DO 19
KINDS OF EMPLOYMENT
1. Regular employee
® (Art. 295) perform activities which are
usually necessary or desirable in the
usual business or trade of the employer
® Atty. Manual: this is the general rule
2. Non-regular employee
® Exceptions:
a. Project employment (Art. 295)
b. Seasonal employment (Art. 295)
c. Probationary employment (Art.
296)
d. Casual employment (Art. 295)
e. Fixed-Term employment (Brent
School v. Zamora, 1990)
NB: Security of Tenure (Art. 294) is not only applicable to
regular employees
Essentially, the Labor Code classifies 4 kinds of employees,
namely:
a. Regular employees;
b. Project employee;
c. Seasonal employees; and
d. Casual employees. (Minsola v. New City Builders,
Inc. 2018)
Regular Employees
That any employee who has rendered at least one year of
service, whether such service is continuous or broken, shall
be considered as regular employee with respect to the activity
in which he is employed and his employment shall continue
while such activity exists.
Project Employment
“Project” could refer to one or the other of at least two
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. Such job or
undertaking begins and ends at determined or determinable
times. The term “project” could also refer to, secondly, a
particular job or undertaking that is not within the regular
business of the corporation. Such a job or undertaking must
also be identifiably separate and distinct from the ordinary
or regular business operations of the employer. The job or
undertaking also begins and ends at determined or
determinable time. (Leyte Geothermal Power Progressive
Employees Union v. PNOC, 2011)
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.
(Maraguinot v. NLRC, 1998)
A work pool may exist although the workers in the pool do
not receive salaries and are free to seek other employment
during temporary breaks in the business, provided that the
worker shall be available when called to report for a project.
Although primarily applicable to regular seasonal workers,
this set-up can likewise be applied to project workers insofar
as the effect of temporary cessation of work is concerned.
(Maraguinot v. NLRC, 1998)
Seasonal Employment
As with project employment, although the seasonal
employment involves work that is seasonal or periodic in
nature, the employment itself is not automatically
considered seasonal so as to prevent the employee from
attaining regular status. To exclude the asserted “seasonal”
employee from those classified as regular employees, the
employer must show that: (1) the employee must be
performing work or services that are seasonal in nature; and
(2) he had been employed for the duration of the season.
When the “seasonal” workers are continuously and repeated
hired to perform the same asks or activities for several
seasons or even after the cessation of the season, this length
of time may likewise serves 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. (Universal Robina v.
Acibo, 2014)
Casual Employee
A casual employee is one whose work is neither regular,
project or seasonal. An employee is engaged to perform a job,
work or service which is merely incidental to the business of
the employer and that job, work or service is for a definite
period made known to the employee at the time of
engagement.
HOBIBII NOTES in LABOR LAW 2021 20
An employee is regarded a casual employee if he or she was employee dealt with each other on more or less equal terms
engaged to perform functions which are not necessary and with no moral dominance whatever being exercised by the
desirable to the usual business and trade of the employer. former over the latter. (Brent School v. Zamora, 1990)
(Paralege v. GMA Network, 2020, Leonen)
TERMINATION OF EMPLOYMENT:
Probationary Employment 1. Just Causes ( Art. 297, Labor Code)
There is probationary employment where the employee upon 2. Authorized Causes (Art. 298 and 299, Labor
his engagement is made to undergo a trial period during Code)
which the employer determines his fitness to qualify for 3. Failure to qualify as a regular employee (Art. 281,
regular employment based on reasonable standards made Labor Code)
known to him at the time of engagement (Tamson’s ® Peculiar to a probationary employee
Enterprises v. CA, 2011)
JUST CAUSES AUTHORIZED
It is settled that even if probationary employee do not enjoy CAUSES
permanent status, they are accorded the constitutional 1. Serious Disease
protection of security of tenure. This means they may only misconduct or Installation of Labor
be terminated for a just cause or when they otherwise fail to willful Saving Device
qualify as regular employees in accordance with reasonable disobedience by Retrenchment
standards made known to them by the employer at the time the employee Redundancy
of their engagement. (Ibid) 2. Gross and habitual Closure not due to
neglect by the Serious Losses
Double probationary period – illegal employee of his
The system of double probation a transparent scheme to duties;
circumvent the plain mandate of the law and make it easier 3. Fraud or willful
for it to dismiss its employees even after they shall have breach by the
already passed probation. (Holiday Inn Manila v. NLRC, employee of the
1993) trust reposed in
him by his
The legal requisites, for acquisition by a teacher of permanent employer;
employment, or security of tenure, are as follows: 4. Commission of a
1. The teacher is a full time teacher; crime or offense by
® whose total working day is devoted to the school the employee
® has no other regular remunerative employment against the person
® paid on a regular monthly basis regardless of the of his employer;
number of teaching hours; and and
® that in college, the nominal teaching load of a 5. Other causes
full-time instructor shall be 18 hrs a week analogous to the
2. The teacher must have rendered three consecutive foregoing
years of service;
3. such service must have been satisfactory (University
of Sto. Tomas v. NLRC, 1990) JUST CAUSE FOR LEGAL DISMISSAL
• The employee has committed some serious
Fixed-Term Employment misconduct, is guilty of some fraud against the
Since the entire purpose behind the development of employer, or has neglected his duties. Thus it can
legislation culminating in the present Article 280 of the be said that the employee himself initiated the
Labor Code clearly appears to have been, as already observed, dismissal process. (Jaka Food Processing
to prevent circumvention of the employee’s right to be secure Corporation v. Pacot, et. al. 2005).
in his tenure, the clause in said article indiscriminately and
completely ruling out all written or oral agreements 1. Serious Misconduct
conflicting with the concept of regular employment as ® To be a valid ground for termination,
defined therein should be construed to refer to the the following be present:
substantive evil that the Code itself has singled out: a. There must be misconduct
agreements entered into precisely to circumvent security of b. The misconduct must be of such
tenure. It should have no application to instances where a grave and aggravated character;
fixed period of employment was agreed upon knowingly and c. It must relate to the performance
voluntarily by the parties, without any force, duress or of the employee’s duties; and
improper pressure being brought to bear upon the employee d. There must be showing that the
and absent any other circumstances vitiating his consent, or employee becomes unfit to
where it is satisfactorily appears that the employer and

HOBIBII NOTES in LABOR LAW 2021 21

 continue working for the
employer
® Examples:
o An employee who utters obscene
insulting or offensive words
against the superior;
unprovoked insolence or
disrespect; slander by deed;
printing of libelous remarks
against officials
o Sexual harassment
o Misappropriation of company
funds or other forms of
dishonesty
o Theft of company property
® The misconduct to be serious within the
meaning of the act must be of such a grave
and aggravated character and not merely
trivial or unimportant. Such misconduct,
however serious, must nevertheless be in
connection with the work of the employee
to constitute just cause from his
separation. (Moreno v. San Sebastian
College, 2008)
® Misconduct is defined as 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. The use of expletives as a casual
expression of surprise or exasperation is
not serious misconduct per se that
warrants an employee’s dismissal.
However, the employee’s subsequent acts
showing willful and wrongful intent may
be considered in determining whether
there is a just cause for their employment
termination. (Adamson University
Faculty Union v. Adamson University,
2020)
2. Will Disobedient or Insubordination
® To be a valid ground for termination,
the following be present:
a. There must be disobedience or
insubordination;
b. The disobedience or
insubordination must be willful
or intentional characterized by a
wrongful and perverse attitude;
c. The order violated must be
reasonable, lawful, and made
known to the employee; and
d. The order must pertain to the
duties which he has been
engaged to discharge.
3. Fraud
® To be a valid ground for termination,
the following be present:
HOBIBII NOTES in LABOR LAW 2021
a. There must be an act, omission or
concealment
b. The act, omission or concealment
involves a breach of legal duty,
trust of confidence justly
reposed;
c. It must be committed against the
employer or his/her
representative; and
d. It must be in connection with the
employee’s work
® Example: misappropriation of
company funds
4. Loss of confidence
® To be a valid ground for termination,
the following be present:
a. There must be an act, omission or
concealment;
b. The act, omission or concealment
justifies the loss of trust and
confidence of the employer to the
employee
c. The employee concerned must be
holding a position of trust and
confidence
d. The loss of trust and confidence
should not be simulated;
e. It should not be used as a
subterfuge for causes which are
improper, illegal or unjustified;
and
f. It must be genuine and not a
mere afterthought to justify an
earlier action taken in bad faith
5. Habitual Delinquency
® Totality of Infractions Ruling: where the
employee has been found to have repeated
incurred several suspensions or warnings
on account of violations of company rules
and regulations, dismissal is valid (Villeno
v. NLRC)
® Pattern of offense
6. Abandonment
Abandonment is the deliberate and unjustified
refusal of an employee to resume his
employment. It is a form of neglect of duty,
hence, a just cause for termination of
employment by the employer. (Klaudia’s Kitchen
v. Tagnguin, 2017)
Atty. Duka: Abandonment is analogous to gross
and habitual neglect of duty.
The first element of abandonment is the failure
of the employee to report to work without a valid
and justifiable reason. The second element is the
existence of over acts which show that the
employee has no intention to return to work.
22
(Protective Maximum Sec. Agency v. Fuentes,
2015, Leonen)
Abandonment of work has been construed as “a
clear and deliberate intent to discontinue one’s
employment without any intention of returning
back.” To justify the dismissal of an employee on
this ground, two elements must concur, namely:
a. The failure to report for work or
absence without valid or justifiable
reason; and
b. A clear intention to server the
employer-employee relationship.
Mere failure to report to work is insufficient to
support a charge of abandonment. The employer
must adduce clear evidence of the employee’s
“deliberate, unjustified refusal…to resume his
or her employment,” which is manifested
through the employee’s overt acts. (Demex
Rattancraft v. Leon, 2017, Leonen)
For a valid finding of abandonment, these two
factors should be present:
1. The failure to report for work or absence
without valid or justifiable reason; and
2. A clear intention to sever employer-
employee relationship, with the second as
the more determinative factor which is
manifested by overt acts from which it may
be deduced that the employees has no more
intention to work. (Agabon v. NLRC,
2004)
Is it a well-settled rule that to constitute a valid
dismissal two requisites must concur:
1. The dismissal must be or any of the causes
express in Art. 282 of the Labor Code; and
2. The employee must have been accorded due
process, basic of which is the opportunity
to be heard and to defend himself (RDS
Trucking v. NLRC, 1998)
Procedurally if the dismissal is based on a just
cause under Article 282 (297) the employer must
give the employee two written notices and a
hearing or opportunity to be heard if requested
by the employee before terminating the
employment:
® A notice specifying the grounds for which
dismissal is sought;
® A hearing or an opportunity to be heard;
and
® After hearing or opportunity to be heard, a
notice of the decision to dismiss.
Valid termination requires the employer to send
an initial notice to the employee, stating the
specific grounds or causes for dismissal and
directing the submission of a written
HOBIBII NOTES in LABOR LAW 2021
explanation answering the charges. After
considering the employee’s answer, the employer
must give another notice informing the employee
of the employer’s findings and reason for
termination. These are the operative acts that
terminate an employer-employee relationship.
(Datamex Rattancraft v. Leron, 2017, Leonen)
MODIFICATION ON NOTICE
REQUIREMENT:
The first notice should contain a detailed
narration of facts and circumstances that
will serve as basis for the charge against the
employee. A general description of the
charge will not suffice.
The notice should specifically mention which
company rules, if any, are violated (King of
Kings Transport v. Mamac, 2007); and that the
employer seeks dismissal for the act or omission
charged against the employee; otherwise, the
notice does not comply with the rules. (Magro
Placement v. Hernandez, 2007)
In termination based on just causes, 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. (Bravo
v. Urios College, 2017, Leonen)
A hearing means that a party should be given a
chance to adduce his evidence to support his side
of the case and that the evidence should be taken
into account in the adjudication of the
controversy. “To be heard” does not mean verbal
argumentation alone inasmuch as one may be
heard just as effectively through written
explanations, submissions or pleadings.” (Perez
v. Philippine Telegraph and Telephone
Company, 2009)
The rule is well established that in termination
causes, the burden of proving just and valid
cause for dismissing an employee rests on the
employer and his failure to do so shall result in a
finding that the dismissal is unjustified. The
burden to prove a just cause for dismissal must
be met by the employer. It is basic rule in
evidence that each party must prove his
affirmative allegation. While technical rules are
not strictly followed in the NLRC, this does not
mean that the rules on proving allegations are
23
 entirely dispensed with. Bare allegations are not month pay for every year of service,
enough; these must be supported by substantial whichever is higher;
evidence at the very least. (Protective Maximum 3. Good faith in abolishing the redundant
Sec. Agency v. Fuentes, 2015, Leonen) positions; and
4. Fair and reasonable criteria in
CLOSURE OF ESTABLISHMENT AND REDUCTION ascertaining what positions are to be
OF PERSONNEL declared redundant and accordingly
• Art. 298. The employer may also terminate the abolished. (Samahan ng mga
employment of any employee due to: Manggagawa sa Komunikasyon v.
1. The installation of labor-saving devices; PLDT, 2017, Leonen)
2. Redundancy;
3. Retrenchment to prevent losses; or • Separation Pay
4. The closing or cessation of operation of The amount of separation pay is based on two
the establishment or undertaking unless factors:
the closing is for the purpose of 1. The amount of monthly salary; and
circumventing the provisions of this 2. The number of years of service
Title However, Article 283 (298) and 283 (299) both
state in connection with separation pay that a
Retrenchment fraction of at least 6 months shall be
a. The losses expected should be substantial and considered one whole year. (Pax v. Northern
not merely de minimis in extent Tobacco Co., 2015, Leonen)
b. The substantial losses apprehended must be
reasonably imminent Authorized
Separation Pay
c. The retrenchment must be reasonable necessary Causes
and likely to effectively prevent the expected Installation of • At least his one month
losses; and labor-saving pay or at least one
d. The alleged losses, if already incurred and the devices or month pay for every
expected imminent losses sought to be redundancy year of service,
forestalled, must be proved by sufficient and whichever is higher
convincing evidence (San Miguel Jeepney ® 9 months service –
Services v. NLRC, 1996) 1 month salary
® 4 year service – 4
Redundancy months salary
Redundancy exists when “the services of an employee Retrenchment • Separation pay shall be
are in excess of what is reasonably demanded by the to prevent equivalent to 1 month
actual requirements of the enterprise.” While a losses and pay or at least ½ month
declaration of redundancy is ultimately a management closures or pay for every year of
decision in exercising its business judgment, and the cessation of service, whichever is
employer is not obligated to keep in its payroll more operations higher.
employees than are needed for its day-to-day
• A fraction of at least 6
operations, management must not violate the law nor
months being
declare redundancy without sufficient basis.
considered as 1 whole
(Samahan ng mga Manggagawa sa Komunikasyon v.
year
PLDT, 2017, Leonen)
® 9 months service –
1 month salary
• Due Process Requirement
® 4 year service – 2
It could be done by serving a written notice on the
months salary
workers and the DOLE at least one month before
the intended date. Retrenchment • To require the company to
due to closure continue being generous
For the implementation of a redundancy or cessation when it is no longer in a
program to be valid, the employer must comply due to serious position to do so would
with the following requisites: business certainly be unduly
1. Written notice served on both the losses or oppressive, unfair and
employees and the DOLE at least one financial most revolting to the
month prior to the intended date of reverses. conscience (Benson
retrenchment; Industries Employees
2. Payment of separation pay equivalent to Union-ALU-TUCP v.
at least one month pay or at least one

HOBIBII NOTES in LABOR LAW 2021 24

 Benson Industries, Inc.,
2014)
CAUSE (J/A) DUE PROCESS DISMISSAL
!" !" Legal
#" #" Illegal
#" !" Illegal
!" #" Ineffectual
• WITH Just/Authorize Case + WITH Due Cause
® Employee is NOT entitled to reinstatement
+ full back wages + attorney’s fees +
damages (moral & exemplary)
® Employee is entitled to, depending on
company policy, pro-rated 13th month pay +
last pay + all such leave credits he is entitled
to
• WITHOUT Just/Authorize Cause + WITHOUT
Due Process (ILLEGAL)
® Employee is entitled to reinstatement + full
back wages+ attorney’s fees + damages
• WITHOUT Just Cause + With Due Process
® Employee is entitled to reinstatement + full
back wages+ attorney’s fees + damages
• Ineffectual Dismissal
® No reinstatement & No Backwages BUT shall be
liable for nominal damages
® Company will be penalized for (pay to employee):
a. P30,000 – Just cause + WITHOUT Due
Process
b. P50,000 – Authorize cause + WITHOUT
Due Process (Jaka v. NLRC)
The failure to hear him before he is dismissed renders
the termination of his employment without legal effect
and therefore be struck down as ineffectual (De Jesus
v. Aquino, 2013)
Even so, in Agabon, the Court still deplored the
employer’s violation of the employee’s right to
statutory due process by directing the payment of
indemnity in the form of nominal damages, the
amount of which would be addressed to the sound
discretion of the labor tribunal upon taking into
account the relevant circumstances. Such form of
damages as a deterrent to employers from committing
in the future violations of the statutory due process
rights of employees (Ibid).
CONSTRUCTIVE DISMISSAL
• 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 there is
involuntary resignation because of the harsh, hostile
and unfavorable conditions set by the employer.
(Rodriguez v. Park and Ride, 2017, Leonen)
• We have held that 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.” (Ibid)
• When these 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. In a sense,
the doctrine of constructive dismissal has been a
consistent vehicle by this Court to assert the dignity of
labor. (Ibid)
Article 297 vs. Article 298
• The clear-cut distinction between a dismissal for just
cause under Art. 282 and a dismissal for authorized
cause under Art. 283 is further reinforced by the fact
that in the first, payment of separation pay, as a rule,
is not required, while in the second, the law requires
payment of separation pay. (Jaka Food Processing
Corporation v. Pacot, et. al., 2005)
Article 299. Disease as ground for termination
• (1) An employee has been found to be suffering from
any disease; (2) His continued employment is
prohibited by law or prejudicial to his health, as well
as to the health of his co-employee; (3) 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 6 months even with proper medical
treatment. (Deoferio v. Intel Tech, 2014)
• He is paid separation pay equivalent to at least 1
month salary or to ½ month salary for every year of
service, whichever is greater. A fraction of at least 6
months being considered as 1 whole year.
® 9 months service – 1 month salary
® 4 years of service – 2 months salary
• Separation pay is required in the cases enumerated in
Art. 283 (298) and 284 (299) of the Labor Code, which
include retrenchment, and is computed at least one
month salary or at the rate of ½ month salary for every
month of service, whichever is higher. We have held
that it is a statutory right designed to provide the
employee with the wherewithal during the period that
he is looking for another employment. (Samahan ng
mga Manggagawa sa Komunikasyon v. PLDT, 2017,
Leonen)
• For Disease, employer must furnish employee two
written notices on terminations due to disease
(Deoferio v. Intel Technology Philippines, Inc., 2014)
• In Sy v. CA (2003) and Manly Express, Inc. v.
Payong, Jr. (2005), the Court finally pronounced the
rule that the employer must furnish the employee two
written notices in terminations due to disease, namely:
1. The notice to apprise the employee of the ground
for which his dismissal is sought; and
2. The notice informing the employee of his
dismissal, to be issued after the employee has
been given reasonable opportunity to answer
and to be heard on his defense.
HOBIBII NOTES in LABOR LAW 2021 25

TERMINATION BY EMPLOYEE
• Art. 300
• The unreasonably harsh conditions that compel
resignation on the part of an employee must be way
beyond the occasional discomforts brought about by
the misunderstandings between the employer and
employee. Strong words may sometimes be exchanged
as the employer describes her expectations or as the
employee narrates the conditions of her work
environment and the obstacles she encounters as she
accomplished her assigned tasks. As in every human
relationship, there are bound to be disagreements.
• The general rule is that an employee who voluntarily
resigns from employment is not entitled to separation
pay. Unless, there is a stipulation for payment of such
in the employment contract or CBA or payment of the
amount is sanctioned by established employer practice
or policy. (Travelaire & Tours Corporation vs. NLRC,
1998)
WHEN EMPLOYMENT NOT DEEMED
TERMINATED
• Art. 301
• The practice of placing security guards on “floating
status” or “temporary off-detail” is a valid exercise of
management prerogative. Jurisprudence has settled
that the period of temporary off-detail must not exceed
6 months. Beyond this, a security guard’s floating
status shall be tantamount to constructive dismissal.
Temporary displacement or temporary off-detail of
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 security guard. Such
situation does not normally result in a constructive
dismissal. (Padilla v. Airborne Security Service, 2017,
Leonen)
RETIREMENT PAY
• Art. 302
• It is clear in the law that the term one-half (1/2) month
salary means 22.5 days: 15 days + 2.5 days
(representing 1/12 of the 13th month pay) + 5 days SIL
(Capitol Wireless v. Confessor, 1996)
• The term “one-half month salary” shall include all the
following: (a) 15 days salary of the employee based on
his latest salary rate, (d) all other benefits that the
employer and employee may agree upon that should be
included in the computation of the employee’s
retirement pay. The foregoing rules are clear that the
whole 5 days of SIL are included in the computation of
a retiring employees’ pay. (Enriquez Security
Services, Inc. v. Cabotaje, 2006)
RETIREMENT
• Retirement is the result of a bilateral act of the parties,
a voluntary agreement between the employer and the
employee whereby the latter, after reaching a certain
age, agrees to sever his or her employment with the
former. Article 287 (302) as amended, allows for
optional retirement at the age of at least 60 years old.
Consequently, if the intent to retire is not clearly
established or if the retirement is involuntary, it is to
be treated as a discharge. (Paz v. Northern Tobacco
Co., 2015, Leonen)
• An employer is free to impose a retirement age less
than 65 for as long as it has the employees’ consent.
Stated conversely, employees are free to accept the
employer’s offer to lower the retirement age if they feel
they can get a better deal with the retirement plan
presented by the employer. Thus, having terminated
petitioner soley on the basis of a provision of a
retirement plan which was not freely assented to by
her, respondent was guilty of illegal dismissal. (Jaculbe
v. Siliman University, 2007) – Compulsory
Retirement
• 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. In other words, only the
implementation and execution of the option may be
unilateral, but not the adoption and institution of the
retirement plan containing such option. For the option
to be valid, the retirement plan containing it must be
voluntarily assented to by the employees or at least by
a majority of them through a bargaining
representative. (Cercado v. Uniprom, Inc., 2010) –
Optional Retirement
• Indeed, a perusal of the retirement law does not
exclude a part time employee from enjoying retirement
benefits. (De Lasalle Araneta Univ. v. Bernando,
2017)
• Article 291 (306) covers claims for overtime pay,
holiday pay, service incentive leave pay, bonuses,
salary differentials, and illegal deductions by an
employer. It also covers money claims arising from
seafarer contracts. (Protective Maximum Sec. Agency
v. Fuentes, 2015, Leonen)
MONEY CLAIMS
• Article 291 (301) covers claims for overtime pay,
holiday pay, service incentive leave pay, bonuses,
salary differentials, and illegal deductions by an
employer. It also covers money claims arising from
seafarer contracts. The provision, however, does not
cover “money claims” consequent to an illegal
dismissal such as backwages. It also does not cover
claims for damages due to illegal dismissal. (Protective
Maximum Sec. Agency v. Fuentes, 2015, Leonen)
• Prescription: 3 years (money claims) except in case of
illegal dismissal which is 4 years based on Art. 1146 of
the Civil Code
HOBIBII NOTES in LABOR LAW 2021 26

LABOR RELATIONS
Labor Relations Laws are the laws, rules and
regulations which govern the relationship between
employee and their employers, promote the right of
the employees to self-organization and collective
bargaining, strikes and picketing, penalize unfair labor
practice, and provide modes for the settlement of labor
disputes such as conciliation, mediation, grievance
machinery, voluntary arbitration and compulsory
arbitration.
• Covered by Books V-VII of the Labor Code
Social Legislations are laws, rules and regulations that
promote the welfare of all sectors of society. Social
legislation includes laws that provide particular kinds
of protection or benefits to the society, in furtherance
of social justice.
• All labor laws are social legislations but not all
social legislations are labor laws.
• Labor contracts are subject to special laws on wages,
working conditions, hours of labor, and similar
subjects. In other words, labor contracts are subject to
the police power of the State. (PBOAP v. DOLE, 2018,
J. Leonen)
Exercise of Police Power:
• Article 128 – Visitorial and enforcement power
• Article 278 (g)
The policy of social justice is not intended to countenance
wrongdoing simply because it is committed by the
underprivileged. Social justice cannot be permitted to be
refuge of scoundrel any more than can equity be an
impediment to the punishment of the guilty. Those who
invoke social justice may do so only if their hands are clean
and their motives blameless and not simply because they
happen to be poor. (PLDT v. NLRC, 1988)
• Social justice for the deserving
Security of Tenure (Art. 294, LC)
• This is the right of every employee not to be dismissed
without just or authorized cause and in the absence of
due process. (Imasen Phils. v. Alcon, 2014)
• To determine whether there is an ER-EE relationship
apply the 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;
3. The power to dismiss and discipline employees
• Security of tenure dictates that no worker shall be
dismissed except for just cause provided by law and
after due process. An illegally dismissed employee is
entitled to either:
1. Reinstatement, if viable, or separation pay, if
reinstatement is no longer viable; and
2. Backwages (Dumapis v. Lepanto Consolidated,
2020)
® Full backwages are computed from the time
employee’s compensation was withheld up
to the time of his actual reinstatement.
® Backwages are granted on grounds of equity
to workers for earnings lost due to their
illegal dismissal from work. They are a
reparation for the illegal dismissal of an
employee based on earnings which the
employee would have obtained, either by
virtue of a lawful decree or order, as in the
case of a wage increase under a wage order,
or by rightful expectation, as in the case of
one’s salary or wage.
• An employee who has been illegally dismissed shall be
entitled to:
1. Reinstatement;
2. Full backwages; and
3. Other benefits for the entire period that he was
out of work until actual reinstatement
The Supreme Court had consistently held payment of
full backwages is the price or penalty that the employer
must pay for having illegally dismissed an employee.
(Equitable Banking Corporation v. Sadac, 2006)
• 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. (Paz v. Northern Tobacco Co., 2015, J.
Leonen)
• The period of computation of backwages commenced
from the date petitioner refused to allow respondent to
return to work. (Protective Maximum Sec. Agency v.
Fuentes, 2015, Leonen)
• The 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. In this case, the
higher court which first reversed the NLRC’s ruling
was not the SC but rather the CA. (Wenphil, v. Abing,
2014)
• In addition to full backwages, the Court has also
repeatedly ruled that in cases where reinstatement is
no longer feasible due to strained relations, then
separation pay may be awarded instead of
reinstatement. The Court reiterated that the separation
pay, as an alternative to reinstatement, should be
equivalent to 1 month salary for every year of service.
(Sargasso Construction v. NLRC, 2010)
• Under the law, an illegally dismissed employee is
entitled to reinstatement and backwages, and if
reinstatment is no longer possible, he may be given
separation pay in lieu of reinstatement. (Bunagan v.
Sentinel Watchman & Protective Agency, Inc., 2006)
• Award of Separation Pay in Lieu of Reinstatement:
1. Old Age (Espejo v. NLRC, 1996)
HOBIBII NOTES in LABOR LAW 2021 27
 2. The position no longer exists (Tanduay whatever manner the right of an employee to self-
Distillery Labor Union, et. al. v. NLRC, 1994) organize. (Adamson University Faculty Union v.
3. The establishment is taken over by another Adamson University, 2020, Leonen).
company (Callanta v. Carnation Philippiness, • In determining whether an act of ULP was committed,
Inc. and NLRC, 1986) the totality of the circumstances must be considered. If
4. Insolvency of the employer (Electruck Asia, the unfair treatment does not relate to or affect the
Inc. v. Meris et. al, 2004) worker’s right to self-organize, it cannot be deemed
5. Closure of business (Philtread Tire & Rubber ULP. (Ibid)
Corporation v. Vicente, 2004) • Consequently, ULP are not only violations of the civil
6. Strained Relations (Cabatulan v. Buat, et. al, rights of both labor and management but are also
2005) criminal offenses against the State which shall be
® Under the doctrine of strained relations, subject to prosecution and punishment as herein
the payment of separation pay is provided. (Ibid)
considered an acceptable alternative to
reinstatement when the latter option is
no longer desirable or viable. On one
hand, such payment liberates the UNFAIR LABOR PRACTICE
employee from what could be a highly Civil Aspect Criminal Aspect
oppressive work environment. On the ® Can be committed ® Can be committed by
other hand, it releases the employer from by the officers and the agents and
the grossly unpalatable obligation of agents of the officers of the
maintaining in its employ a worker it employers or officers employers who
could no longer trust. (Klaudia’s and agents of the participated,
Kitchen v. Tanguin, 2017) labor organization authorized and/or
® Strained relations must be demonstrated ® This aspect of ratified the act
as a fact. The doctrine of strained ULP is ® This ULP falls
relations should not be used recklessly or cognizable and within the
applied loosely nor be based on fall within the jurisdiction of the
impression alone. (Ibid). jurisdiction of regular trial courts
the LA and the quantum of
RIGHT TO UNIONIZE ® The quantum of proof required is
• EO 180, June 1, 1987 proof required is beyong reasonable
• xxx the Rules and Regulations implementing EO 180 only substantial doubt
explicitly provide that since the “terms and conditions evidence and the ® The prescriptive
of employment in the government, including any prescriptive period is within 1
political subdivision or instrumentality thereof and period is one year from the accrual
GOCCs with original charters are governed by law, year from the of the act of the ULP
the employees therein shall not strike for the purpose accrual of ULP
of securing changes thereof. (Arizala v. CA, 1990)
• The mass actions staged by the public schools teachers Yellow Dog Contract
from September 17 to September 19, 1990, were “to all • Article 259 (b)
intents and purposes a strike,” they constituted a • A yellow dog contract is an undertaking by the
concerted and unauthorized stoppage of, or absence employees that as a condition for employment
from, work which it was the teachers’ sworn duty to they will not join, assist, form or even attempt to
perform, undertaken for essentially economic reasons foster a union for the duration of their
it denied the petition, since the right to strike did not employment with the employer.
extend to civil service employees. (MPSTA v. Laguio, • This is a void undertaking
Jr., 1991)
A company or “yellow” union is a worker
UNFAIR LABOR PRACTICE organization which dominated or influenced by
• ULP is any act of an employer, his representatives and an employer, and is therefore not an independent
agents and any labor union, its officers and members trade union. Company unions are contrary to
which affects the rights of any employee to self- international labor law.
organization (Philcom Employees Union v. Phil.
Global Communication, 2006) Run-away shop is one wherein the employer
• There should be no dispute that all the prohibited acts moves its business to another location or it
constituting ULP in essence relate to the worker’s temporarily closes its business for anti-union
right to self-organization. Thus, an employer may be purposes. A run-away shop in this sense, is a
held liable under this provision if his conduct affects in

HOBIBII NOTES in LABOR LAW 2021 28

 relocation motivated by anti-union animus rather
than for business reasons. An industrial plant
moved by its owners to escape union, labor
regulations or state laws, but the term is also used
to describe a plant removed to a new location in
order to discriminate against employees at the
old plant because of their union activities.
(Complex Electronics Employees Association v.
NLRC, 1999)
UNION REGISTRATION
Bureau of Labor Regional Office
Relations
® Federation (Art. ® Independent
244)/National Union – union but provides that those who do join
Union Operating in just
® Independent one region
Union – penalty of discharge.
operating in more
than 1 region
(Art. 240)
Bargaining Unit (Art. 267) is a group of employees
sought to be represented by a petitioning union. Such
employees need not be members of a union seeking the
conduct of a certification election. (Holy Child
Catholic School v. Sto. Tomas, 2013)
A local labor union is a separate and distinct unit
primarily designed to secure and maintain and
equality of bargaining power between the employer ad
their employee-members. A local union does not owe
its existence to the federation with which it is affiliated.
It is a separate and distinct voluntary association
owing its creation to the will of its members. (National
Union of Bank Employees v. Philnabank Employees
Association, 2013)
UNION SECURITY CLAUSE
• A stipulation contained in the CBA 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
• Purpose of Union Security Clauses:
1. Protection to shield union members from
whimsical and abusive exercise of
management prerogatives
2. Union security clauses grant benefits in the
sense that additional union membership will
insure additional source of income to the
union from union dues and special
assessment
3. It is also a means of self-preservation because
it strengthens the union through selective
acceptance of new members on the basis of
commitment and loyalty
• Common Types of Union Security Clauses
1. Close shop
® A closed shop, may be defined as an
enterprise in which, by agreement between
the employer and his employees or their
representatives, no person may be employed
in any or certain agreed departments of the
enterprise unless he or she is, becomes, and,
for the duration of the agreement, remains a
member in good standing of a union entirely
comprised of or which the employees in
interest are a part. (PICOP Resources, Inc
v. Dequilla, 2011)
2. Maintenance of membership clause
® It does not require non-members to join the
must maintain their membership for the
duration of the union contract, under
® There is maintenance of membership shop
when employees, who are union members as
of the effective date of the agreement, or who
thereafter become members as of the effective
date of the 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. (Ibid)
3. Union Shop agreement
® It is a clause in a collective bargaining
agreement whereby the employer enjoys
the right to hire persons without regard to
their membership or non-membership in
the labor union that represents the
employees, with the provision that the
person so hired must become a member of
the union after a specified period must and
maintain his membership therein in good
standing for the duration of the agreement.
4. Agency Shop
® It is an 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 received from the CBA as a
result of the efforts of the contracting
union. A limited exemption to the agency
shop requirement exists for employees
with bona-fide religious objections to
joining a labor union. It is also known as
the anti-free rider or hitchhiker.
5. Preferential shop agreement
® It recognized the right of the employer to
select his employees but requires him to
give preference to members of the
contracting union who are qualified.
• Valid termination of employment pursuant to
union security clause
HOBIBII NOTES in LABOR LAW 2021 29
 ® In terminating the employment of an employee
by enforcing the union security clause, the
employer needs only to determine and prove
that:
1. The union security clause is applicable;
2. The union is requesting for the
enforcement of the union security
provision in the CBA; and
3. There is sufficient evidence to support the
unions decision to expel the employee from
the union.
These requisites constitute just cause for
terminating an employee based on the CBAs
union security provision. (Alabang Town and
Country Club v. NLRC, 2008)
COLLECTIVE BARGAINING AGREEMENT (CBA)
• The CBA is the law between the contracting
parties – the collective bargaining representative
and the employer-company. (SONEDCO v.
Universal Robina, 2016, Leonen)
• Precisely, the purpose of collective bargaining is
the acquisition or attainment of the best possible
covenants or terms relating to economic and non-
economic benefits granted by employers and due
the employees. The Labor Code has actually
imposed as a mutual obligation of both parties,
this duty to bargain collectively (Union of Filipro
Employees – Drug v. Nestle Philippines,
Incorporated, 2006).
• Lifetime of the CBA
® The representation issue or the status of the
union who entered into the CBA has a lifetime of
5 years from the time of its effectivity.
® While the other provisions (economic) shall be
effective for a period of 3 years from its
execution.
• Freedom Period: It is the 60-day period prior to
the end of the 5 year period
® If the CBA was executed and made effective on
June 9, 2015, then the expiration date is June 9,
2015. Consequently, the economic provisions
expired on June 9, 2018 and the freedom period
is from April 9, 2020 to June 9, 2020 (60 days)
• What can be done during the during the freedom
period:
® A petition questioning the majority status of the
incumbent bargaining agent may be entertained
and a certification election shall be conducted by
the Department of Labor and Employment
(BLR). Moreover, a labor union may disaffiliate
from the mother union to form a local or
independent union during the freedom period.
Any petition before or after the 60 day freedom
period shall be dismissed outright. [Port
Workers Union of the Philippines (PWUP) v.
Laguesma, 1992]
• At the expiration of the freedom period, the employer
shall continue to recognize the majority status of the
incumbent bargaining agent where no petition for
certification election is filed. (SONEDCO v.
Universal Robina, 20016, Leonen)
• Automatic Renewal: A bargaining contract which
provides for automatic renewal in the absence of notice
by one of the contracting parties to alter or terminate
it prior to a specified period preceding the termination
date, will usually operate as a bar to a certification
election. (PLDT Employees Union v. PLDT, 1955)
® Evergreen Clause: An evergreen provision is
used in various contracts, including CBAs,
which provides for automatic renewal of the
length of the agreement after a predetermined
period, unless notice for termination is given. In
practical terms, it extends the rights,
responsibilities, and remedies under the CBA
while the parties are negotiating for a new
contract.
® The old CBA is extended until a new one is
signed. The rule is that despite the lapse of the
formal effectivity of the CBA the law still
considers the same as continuing in force and
effect until a new CBA shall have been validly
executed (Colegio de San Juan de Letran v.
Association of Employees and Faculty of Letran,
2000)
• Automatic Retroaction of the CBA: The effectivity of
the CBA is dependent upon the agreement of the
parties to it. Other provisions of the CBA entered into
within 6 months from the date of expiry of the term of
such other provisions as fived in such CBA, shall
retroact to the day immediately following such date. If
any such agreement is entered into beyond 6 months,
the parties shall agree on the duration of the
retroactivity thereof.
• If the CBA is a result of arbitration (arbitral award)
the date of effectivity of the said CBA will be based on
the arbitral award. Therefore, in the absence of the
specific provision of law prohibiting retroactivity of the
effectivity of the arbitral awards issued by the
Secretary of Labor…public respondent is deemed
vested with plenary powers to determine the effectivity
thereof. (LMG Chemicals Corporation v. Sec. of
DOLE, 2001)
Contract Bar Rule
® The existence of the CBA (a contract between the
employer and the union) bars the modification or
termination of the CBA except during the freedom
period. The parties are mandated by law to keep the
status quo and to continue with full force and effect the
terms and conditions of the existing CBA.
® This provision prohibits the Bureau of Labor Relations
and/or the Regional Director of the DOLE from
entertaining any petition while a valid collective
bargaining agreement is existing in an industry. The
law prohibits the holding of certification elections
HOBIBII NOTES in LABOR LAW 2021 30
 during the lifetime of the CBA. (Port Worker’s Union
v. Laguesma, 1992)
Blue-Sky Bargaining
® The act of making exaggerated or unreasonable
proposal. (Standard Chartered Bank v. Confesor,
2004)
Boulwaresim
® In negotiation, Boulwarism is an offer or counter-offer
that is not meant to be negotiated. This is a “take it or
leave it” strategy named after Lemuel Boulware a
former vice president of General Electric.
® Due to its nature, boulwaresim is prohibited in
Philippine Labor laws because the parties – the
employer and the labor union are mandated to bargain
in good faith.
Surface Bargaining
® Surface bargaining is defined as “going through the
motions of negotiating” without any legal intent to
reach an agreement. It involves the question of whether
an employer’s conduct demonstrates an unwillingness
to bargain in good faith or is merely hard bargaining.
(Standard Chartered Bank v. Confesor, 2004)
Good Faith Bargaining
® There is no per se test of good faith bargaining. Good
faith or bad faith is an inference to be drawn from the
facts, to be precise, the crucial question of whether or
not a party has met his statutory duty to bargain in
good faith typically turns on the facts of the individual
case. (Union of Filipro Employees v. Nestle
Philippines, Incorporated, 2006)
Featherbedding
® It is in the nature of exaction, for services which are
not performed or not to be performed, as when a union
demands that the employer maintains personnel in
excess of the latter’s requirements.
® It is an ULP of the union through coercive means for
exacting or attempting to exact from employers for
services not rendered or not intended to be rendered.
® However, there is no featherbedding if the paid work is
performed made no matter how unnecessary or useless
it may be to the employer.
Sweetheart’s Contract
® The contract or the CBA is considered as a “sweetheart
contract” or sweetheart’s deal because it does not
substantially improve the employees’ wages and
benefits. Worst, the contract may even provide for
benefits are far below those that are provided by law.
BARGAINING UNIT
® A bargaining unit is a group of employees of a given
employer, comprised of all or less than all of the entire
body of employees, consistent with equity to the
employer, indicate to the best suited to serve the
reciprocal rights and duties of the parties under the
collective bargaining provisions of the law.
(International School Alliance of Educators v.
Quisumbing, 2000)
• Test in determining the appropriate bargaining unit:
1. Will of the employees (Globe Doctrine);
2. Affinity and unit of employees’ interest, such
as substantial similarity of work and duties, or
similarity of compensation and working
conditions;
3. Prior collective bargaining history; and
4. Employment status, such as temporary,
seasonal and probationary employees.
(International School Alliance of Educators v.
Quisimbing, 2000)
CERTIFICATION ELECTION
• The certification election is the best method of
determining the will of the workers on the crucial
question of who shall represent them in their
negotiations with the management for a CBA that will
best protect and promote their interests. (Port Workers
Union of the Philippines v. Usec. of Labor, 1992)
• It is well-settled that under the so-called “Double
Majority Rule” for there to be a valid certification
election
® First majority vote: majority of the bargaining
unit must have voted.
® Second majority vote: the winning union
must have garnered majority of the valid
votes cast (National Union of Workers in Hotels
– Manila Pavilion v. SOLE, 2009)
® Sample: 100 employees in the bargaining unit,
at least 51 must have cast their votes (1st
majority, 50%+1). Union A- 15 votes, Union B
– 9 votes, Union C – 7 votes, No union – 20
votes. There is no winner because no one got
26 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, the election officer
shall declare a failure of election in the minutes of
the election proceedings. -Sec. 17, Rule IX, D.O.
40-03
• A failure of election shall not bar the filing of a
motion for immediate holding of another
certification or consent election within 6 months
from date of declaration of failure of election. -
Sec. 17, Rule IX, DO 40-03
Run-off Election
• In a certification or consent election with 3 or
more choices, where such a certified or consent
election results in none of the 3 or more choices
receiving the majority of the valid votes cast; the
labor unions receiving the 2 highest number of
HOBIBII NOTES in LABOR LAW 2021 31
 votes provided that the total number of votes for
all contending unions is at least 50% of the
number of votes cast. – Sec. 1(ss), Rule I, DO 40-
03 (SONEDCO v. Universal Robina, 2016)
• Sample: 100 employees in the bargaining unit, at
least 51 must have cast their votes (1st majority,
50%+1). Union A- 15 votes, Union B – 9 votes,
Union C – 7 votes, No union – 20 votes.
® 2 unions with highest votes: Union A and B
® Since majority wants to be represented by a
union, therefore, in a run-off election, No Union
is no longer a choice. The only question in the
run-off election will be: which union do you
want?
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 within 5 days from the certification,
consent or run-off election, shall be conducted
within 10 days after the posting of notice. – Sec.
15, DO 40-1-15
CONSENT ELECTION
• Consent election is the 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. A consent election is
voluntarily agreed upon by the parties, with or
without the intervention by the Department. –
Sec. 19(h), Rule I, DO 40-03
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.
Statement of the existence/non existence of other
labor organizations/CBA. – Sec. 1, Rule VII, DO
40-1-15
DEADLOCK BAR RULE
• The deadlock bar rule simply provides that a petition
for certification election can only be entertained if there
is no pending bargaining deadlock submitted to
conciliation or arbitration or had become the subject of
a valid notice of strike or lockout. (National Congress
of Unions in the Sugar Industry of the Philippines –
TUCP v. Trajano, 1992)
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. – DO No. 40-
03, Rule VIII Sec. 21
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
certification election by the mere convenience of filing
an appeal with the labor secretary. To allow them to do
so would do violence to the letter and spirit of welfare
legislations intended to protect labor and to promote
social justice. (Notre Dame of Greater Manila v.
Laguesma, 2004)
• In petitions for certification election, the employer is a
mere bystander and cannot oppose the petition or
appeal the Med-Arbiter’s decision (Sta. Lucia East
Comm. Corp. v. Sec. of Labor, 2009)
GRIEVANCE
• Grievance refers to 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. – DO 40-03, Rule I, Sec.
1[u]
• The parties to a CBA shall establish a machinery
for the expeditious resolution of grievances.
Unresolved grievances will be referred to
Voluntary Arbitration. – DO No. 40-03, Rule XIX,
Sec. 1
Establishment of Grievance Committee
• In the absence of applicable provision in the CBA,
a grievance committee shall be created within 10
days from signing of the CBA. The committee
shall be composed of at least 2 representatives
each from the members of the bargaining unit
and the employer, unless otherwise agreed upon
by the parties.
• The representative from amng the members of
the bargaining unit shall be designated by the
union. – DO 40-03, Rule XIX Sec. 1
VOLUNTARY ARBITRATION
• Refers to the 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. – NCMB Revised
Procedural Guidelines in the Conduct of
Voluntary Arbitration Proceedings.
• Who are voluntary arbitrators? Any person
accredited by the board as such or any person
named or designated in the CBA by the parties to
act as their Voluntary Arbitrators, or one chosen
with or without the assistance of the National
HOBIBII NOTES in LABOR LAW 2021 32
 Conciliation and Mediator Board (NCMB) – Art.
212 [n] of the Labor Code
COMPULSORY ARBITRATION
• Is the process of settlement of labor disputes by a
government agency which has the authority to
investigate and to make an award which is
binding on all parties, and as a mode of
arbitration where the parties are compelled to
accept the resolution of their dispute through
arbitration by a third party. (Ludo & Luym Corp.,
v. Saornido, 2003)
• Who are compulsory arbitrators? Regional
Director, Sec. of Labor, BLR, Labor Arbiter, and
NLRC
STRIKE
• As defined under Art. 219 (o) of the Labor Code, a
strike means any temporary stoppage of work by the
concerted action of employees as a result of an
industrial or labor dispute. (Biggs’ Inc. v. Boncacas,
2019)
• Purpose: The strike is indeed a powerful weapon of the
working class. But precisely, if not because of this, it
must be handled carefully, like a sensitive explosive,
lest it blows up in the workers’ own hands. Simply put,
a 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. (PASVIL/Pascual Liner,
Inc. Workers Union -NAFLU v. NLRC, 1999)
• Procedurally, for a strike to be valid, it must comply
with Art. 263 (278) of the Labor Code, which requires
that a notice of strike be filed with the DOLE 30 days
before the intended date thereof, or 15 days in case of
ULP (Phimco Industries v. PILA, 2010)
• Requisites:
1. Valid Ground
® Bargaining Deadlock
® Unfair Labor Practice (ULP) (Art. 259
and 260)
® Union Busting – dismissal from
employment of any union officer
duly elected in accordance with the
union constitution and by-laws
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. While an act or
decision of an employer may be unfair,
certainly not every unfair act or decision
constitutes ULP as defined and
enumerated under Art. 258 of the Labor
Code. (Adamson University Faculty
Union v. Adamson University, 2020,
Leonen)
HOBIBII NOTES in LABOR LAW 2021
2. Notice of strike filed with the NCMB
a. 30 days before the intended date
thereof; or
b. 15 days in case of ULP
c. In case of union busting, no need to
notify the NCMB (Atty. Duka)
3. Cooling-off Period
a. 30 days for economic strike
b. 15 days for ULP
c. No cooling-off period is required for
union busting
The 15 to 30-day cooling-off period is
designated to afford the parties the
opportunity to amicably resolve the dispute
with the assistance of the NCMB
conciliator/mediator. (Phimco Industries v.
PILA, 2010)
4. Strike vote approved by a majority of the
total union membership in the bargaining
unit concerned obtained by secret ballot in
a meeting called for that purpose.
The requirement of giving notice of the
conduct of a strike vote to the NCMB at least
24 hours before the meeting for the said
purpose is designed to:
a. Inform the NCMB of the intent of the
union to conduct a strike vote;
b. Give the NCMB ample time to decide on
whether or not ther is a need to supervise
the conduct of the strike vote to prevent
any acts of violence and/or irregularities
attendant thereto.
The failure of a union to comply with the
requirement of the giving of notice to the
NCMB at least 24 hours prior to the holding
of a strike vote meeting will render the
subsequent strike staged by the union illegal.
(Capitol Medical Center v. NLRC, 2005)
5. Strike vote report filed to the NCMB of the
results of the voting at least 7 days before
the intended strike.
6. 7 days strike ban reckoned from the time
the notice of strike is given to the DOLE
(NCMB) of the results of the strike voting.
While the 7-day strike ban is intended to give
the DOLE an opportunity to verify whether
the projected strike really carries the
imprimatur of the majority of the union
members (Phimco Industries v. PILA, 2010)
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 (NFSW v. Overeja, 1982)
33
 It must be stressed that the requirements of of the minimum ® Compensation of
cooling-off period and 7 -day strike ban must wage not less than 75%
both be complied with although the labor union ® Possibility of no of the minimum
may take a strike vote and report the same compensation wage
within the statutory cooling-off period. ® No commitment to ® All learners must
These requirements are mandatory, and the hire the apprentice be compensated
union’s failure to comply renders the strike ® Commitment to
illegal. (Phimco Industries v. PILA, 2010). hire the learner
® If dismissed
ASSUMPTION OF JURISDICTION illegally – treated
• When a strike has already taken place at the time Lock as regular
When the Secretary exercises these powers, he is employee
granted “great breadth of discretion” in order to find a
solution to a labor dispute. The power is plenary and
discretionary in nature to enable him to effectively and
efficiently dispose of the dispute. (Philcom Employees MANAGEMENT PREROGATIVE
Union v. Philippine Global Communications, 2006)
• It is the discretionary power to decide all aspects
LOCKOUT of operations. In the aspect of employment, it
• Lockout means any temporary refusal of an employer includes everything from hiring to firing and
to furnish work as result of an industrial or labor everything in between.
dispute (Art. 212 [p]). • Examples:
• Lockout is the temporary refusal to furnish work on ® Work assignments and working methods
accont of a labor dispute. (Ilaw at Buklod ng
® Time, place and manner of work
Mangagawa (IBM) v. NLRC, 1991)
® Tools to be used, processes to be followed
® Supervision and discipline of employees
PICKETING
• Management is free to regulate, according to its
• Picketing or peaceful picketing is the right of workers
discretion and judgment, all aspects of employment,
to peacefully march to and fro before an establishment
involved in a labor dispute generally accompanied by including hiring, work assignments, working
methods, time, place and manner of work, processes to
the carrying and display of signs, placards and
be followed, supervision of workers, working
banners intended to inform the public about the
regulations, transfer of employees, work supervision,
dispute as well as their grievances. (Ilaw at Buklod ng
lay-off of workers, and discipline, dismissal and recall
Mangagawa (IBM) v. NLRC, 1991)
of workers. (Malcaba v. Prohealth Pharma Philippines,
Inc, 2018, Leonen citing San Miguel Brewery Sales
APPRENTICE v. LEARNER
Force Union v. Ople)
APPRENTICE LEARNER • The free will of the management to conduct its own
affairs to achieve its purpose cannot be denied,
Apprentice as a worker Learners are persons hired
PROVIDED that the same is exercises:
who is covered by a as trainees in semi-skilled
1. In good faith
written apprenticeship and other industrial
2. For the advancement of the employer’s interest;
agreement with an occupations which are
and
employer. (Century non-apprenticeable and
3. Not to circumvent the rights of the employees.
Canning Corp. v. CA, which may be learned
(San Miguel Brewery and Union Carbide cases)
2007) through practical training
on the job in a relatively • An employee is entitled to prescribe reasonable work
short period of time which standards, rules, and regulations necessary for the
shall not exceed 3 months conduct of its business, to provide certain disciplinary
(Art. 73, Labor Code) measures in order to implement them, and to assure
that the same would be complied with. This
management prerogative of requiring standards may
® Apprenticeable ® Semi-skilled, non-
be availed of so long as they are exercised in good faith
occupation apprenticeable
for the advancement of the employer’s interest.
® 3 to 6 months of occupation
(Telephilippines, Inc. v. Jacolbe, 2019)
training ® Not to exceed
• As long as no arbitrary or malicious action on the part
® Deductibility of 3months
of an employer is shown, the wisdom of a business
training cost ® No experienced
judgment to implement a cost saving device is beyond
® Compensation of workers available
this court’s determination. After all, the free will of
not less than 75% management to conduct its own business affairs to

HOBIBII NOTES in LABOR LAW 2021 34

 achieve its purposes cannot be denied. (citing Maya
Farms Employees Org. v. NLRC, 1994)
• Manila Pavillion v. Henry Delada, 2012:
Management Prerogative being presumed initially
valid until overturned by competent public authority.
• Jurisprudential Guidelines regarding Transfer of
Employees:
1. Transfer is a movement from one place to
another. It is lateral without any break in service
and no diminution in salary and rank.
2. The employer has the inherent right to transfer
or reassign an employee for legitimate business
purposes.
3. A transfer becomes unlawful when it is
motivated by discrimination or bad faith or is
effected as form of punishment.
4. Employer has the burden of proving that such
transfer is not unreasonable, inconvenient or
prejudicial to the employee.
® Chateau Royale case (issue on
inconvenience of the transfer)
® Julie’s Bakeshop case (whimsical)
SOCIAL LEGISLATION
SOCIAL SECURITY ACT
• Who are covered? (Sec. 9 and Sec. 9-A)
1. All private sector employees not over 60
years of age and their employers
2. Kasambahay who has rendered at least 1
month service
3. Filipino Seafarer upon actual deployment
by manning agency and foreign principal
shipowner
4. Self-employed persons, such as:
a. Self-employed professionals
b. Partners and single proprietors
c. Actors and actresses, directors,
scriptwriters and news
correspondents who do not fall within
the definition of the term employee of
this act
d. Professional athletes, coaches, trainers
and jockeys
e. Individual farmers and fishermen
f. Informal sector workers (sidewalk
vendors etc.)
• Who are excluded?
1. Government employees, including
those of GOCCs with original charters
2. Private employment which is purely
Casual and not for the purpose of
occupation or business of the employer
3. Filipino Seafarer
4. Filipinos employed by foreign govt or
international organization EXCEPT
when it includes its employees with SSS
for coverage
5. Temporary employees as may be
defined by the Commission
• Voluntary Coverage:
® Separated members
® OFWs
® Non-working spouses of SSS members
• Who are the Beneficiaries?
1. PRIMARY
a. Legitimate spouse of SSS member,
living with employee at time of latter’s
death until he/she remarries
b. Dependent legitimate, legitimated,
illegitimate, or legally adopted
children; Not gainfully employed and
not reached 21 years of age. If over 21,
must be incapable of supporting
himself, mentally or physically
2. SECONDARY
a. Legitimate dependent parents
b. In absence of parents, any other person
designated by the SSS member
• Benefits
1. Maternity
2. Sickness
3. Retirement
4. Disability
5. Death
6. Funeral
® Monthly Pension (Sec. 12)
® Dependents’ pension (Sec. 12-A)
® Retirement Benefits (Sec. 12-B)
® Death Benefits (Sec. 13)
® Permanent Disability Benefits (Sec. 13-A)
® Funeral Benefits (Sec. 13-B)
® Sickness Benefits (Sec. 14)
® Unemployment Insurance or Involuntary
Separation Benefits (Sec. 14-B)
GOVERNMENT SERVICE INSURANCE ACT OF 1997
RA 8291
• Who are covered? ALL Government Personnel
whether elective or appointive, temporary,
casual, permanent or contractual, receiving a
basic pay or salary, and have not reached the
retirement age of 65
• Who are excluded?
1. Those who are not receiving basic pay or
salary but only honoraria, allowances or per
diems
2. Uniformed members of the AFP and the
PNP
3. Members of judiciary or constitutional
commissions, who shall have life insurance
only
• Who are the Beneficiaries:
1. PRIMARY
HOBIBII NOTES in LABOR LAW 2021 35
 a. Legitimate spouse of GSIS member,
dependent for support
b. Dependent legitimate, legitimated,
illegitimate, or legally adopted
children not gainfully employed and
not reached 21 years of age. If over 21,
must be incapable of supporting
themselves
2. SECONDARY
a. Legitimate dependent parents and
legitimate descendants subject to
restrictions on dependent children
• Benefits:
1. Separation
2. Unemployment
3. Retirement
4. Disability
5. Death
6. Funeral
7. Compuslory Life Insurance
® Monthly pensions (Sec. 9)
® Separation Benefits (Sec. 11)
® Unemployment or Involuntary Separation
Benefits (Sec. 12)
® Retirement Benefits (Sec.13)
® Disability Benefits (Sec.15 & 18)
® Survivorship Benefits (Sec. 20)
® Funeral Benefits (Sec. 23)
® Life Insurance Benefits (Sec. 24)
LIMITED PORTABILITY (RA 7699)
• Dean Abad: Simply means
1. a person who was hired both the
government and private sector
2. a person who was previously a government
employee who is now transferred to the
private sector; or
3. he was previously a private sector employee
now transferring to the government
• Portability means that you transferred your
funds and benefits from one system to another.
• Limited Portability means that you can only use
is once. Contributions here refer to contributions
paid to either SSS or GSIS under your name.
® Covered? Any person who is a member of
the SSS or GSIS transfers from one sector to
another or is employed by both and wish to
retain their membership in both system.
® Effect? The covered worker will have his
creditable services or contributions in both
systems credited to his service in each of the
system and it shall be totalized (aggregate)
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 system without
Totalization.
• Totalization refers to the process of adding up the
periods of creditable services or contributions
under each of the systems for purposes of
eligibility and computation of benefits.
® When applicable?
1. If the worker is not qualified for any of
the benefits from either system
2. If the worker in the public sector is not
qualified in any of the benefits in the
GSIS
3. If the worker in the private sector is
not qualified in any of the benefits in
the SSS
MIGRANT WORKERS
• General Principles, Compensability of Death or
Injury
1. Lex Loci Contractus or Lex Loci Celebratonis:
The law of the place where the contract is
made shall govern
® Employees are not striped of their
security of tenure when they move to
work in a different jurisdiction. With
respect to the rights of overseas
Filipino workers, we follow the
principle of lex loci contractus which
governs this jurisdiction. (Sameer
Overseas Placement Agency v.
Cabiles, 2014, Leonen)
® Doctrine of Processual Presumption
or “Presumed Identity Approach”
The party invoking the application of
foreign law has the burden of proof of
proving that foreign law. If the foreign law
is not pleaded, or even if pleaded, is not
proved, then the presumption is that the
foreign law is the same as Philippine Law.
(Edi-staffbuilders v. NLRC, 2007)
2. Principle of Incorporation: The minimum
labor standards and benefits in Labor Code
are considered inherent in every employer-
employee relationship even absent a
written employment contract
® By our laws, OFWs may only be
terminated for a just or authorized
cause and after compliance with
procedural due process requirements
3. Monetary claims of OFWs are governed by
the RA 8042, as amended by RA10022, and
NOT the Labor Code. Therefore,
® Reliefs such as reinstatement with full
backwages or separation pay are NOT
applicable to OFWs because of the
contractual nature of their
employment
® Monetary claims under Sec. 10 of RA
8042 will be available only for illegal
termination (without just or
authorized) but not peculiarity
HOBIBII NOTES in LABOR LAW 2021 36
 ® In case of termination of overseas
employment without just, valid or
authorized cause as defined by law or
contract, the worker shall be entitled
to:
a. The full reimbursement of his
placement fee with interest at
12% per annum PLUS
b. His salaries for the unexpired
portion of his employment
contract. [Sec. 10 of RA 8042 was
declared unconstitutional in the
Serrano v. Gallant Martime Ruling
(2009) as it is discriminatory and in
violation of equal protection of the
law]
Sec. 10 of RA 8042 has already been
declared unconstitutional by the SC.
It is thus, null and void,
notwithstanding reincorporation or
re-enactment by the new law (RA
10022). (Sameer Overseas
Placement Agency v. Cabiles, 2014,
Leonen)
• Seafarers are contractual employees (Antonio E. Unica
v. Anscor Swire Ship Management Corp., 2014)
® Filipinos hired as seafarers are contractual
employees whose employment is governed by
their respective contracts with their employers:
“[t]heir employment is governed by the
contracts they sign every time they are rehired
and their employment is terminated when the
contract expires.”
Seafarers must be registered with the POEA.
The POEA Standard Employment Contract
(POEA-SEC) must be executed by seafarers and
their employers “as a condition sine qua non
prior to the deployment for overseas work” and
is “deemed incorporated in [seafarer]
employment contract[s]. (Manansala v. Marlow
Navigation Phils., Inc. 2017)
• Important Updates:
® In resolving claims under the POEA Standard
Employment Contract, the element of work-
relatedness only demands a reasonable link
between the illness and the seafarer’s work. It is
not required that the seafarer’s work is the sole
contributor or factor in the aggravation of the
illness. The test is only reasonable proof of work-
connection, and not direct causation. (Castillon
v. Magsaysay Mitsui Osk Marine, Inc, 2020,
Leonen)
® For an occupational disease and the resulting
disability or death to be compensable, ALL of the
following conditions must be satisfied:
1. The seafarer’s work must involve the risk
described herein;
2. The disease was contracted as a result of the
seafarer’s exposure to the described risks;
3. The disease was contracted within a period
of exposure and under such other factors
necessary to contract it; and
4. There was no notorious negligence on the
part of the seafarer. (Ebuenga v. Southfield
Agencies, Inc. et. al, 2018, Leonen)
• If the employment contract expires while the
OFW is in the middle of the sea, OFW will
continue working until he/she reaches the next
nearest port.
® When his contract expired when he was still at
sea, his employment is automatically
terminated, there being no mutually agreed
renewal. However, he is entitled to be paid his
wages after the expiration of his contract until
the vessel’s arrival at a convenient port.
(Antonio E. Unica v. Anscor Swire Ship
Management Corp., 2014)
® If a vessel is outside the Philippines upon
the expiration of the contract, the seafarer
shall continue his service on board until the
vessel’s arrival at a convenient port and/or
after arrival of the replacement crew;
provided that, in any case, the continuance
of such service shall not exceed three
months. The seafarer shall be entitled to
earned wages and benefits as provided in
his contract. (Sec. 19 of the Standard Terms
and Conditions Governing the
Employment of Filipino Seafarers on-board
Ocean Going Vessels)
• Three requirements that must concur for the complete
termination of the employment contract of seafarers:
1. Termination due to expiration or other
reasons/causes;
2. Signing off from the vessels; and
3. Arrival at the point of hire
• The obligations and liabilities of the local agency and
its foreign principal do not end upon the expiration of
the contracted period as they were duty bound to
repatriate the seaman to the point of hire to effectively
terminate the contract of employment
• The liability of the principal/employer and the
recruitment/placement agency for any and all claims
under this section shall be joint and several.
• To substitute or alter employment contracts approved
and verified by DOLE is a prohibited practice under
Art. 34 (i) of the Labor Code. Further, contract
substitution constitutes illegal recruitment under Art.
38 (l) of the code. (Princess Joy Placement and General
Services v. Binalla, 2014)
• On referral to 3rd doctor:
® If issue is degree of disability or return to
work to same position, then may be referred
to 3rd physician
® If issue is on “work-relatedness,” then no
need to refer to a 3rd physician. May already
file case with NLRC/POEA
HOBIBII NOTES in LABOR LAW 2021 37
• When is the injury, illness or death NOT ® ER-EE relationship as condition sine qua
compensable: (MEMORIZE) non for application of labor code:
1. When the injury, illness or death is not jurisdiction of labor courts
reasonably connected or linked with work ® Reasonable causal connection rule: Under
2. Self-inflicted injury or death (suicide) this rule, there is reasonable causal
3. When seafarer fails to disclose a connection between the claim asserted and
preexisting illness, constituting fraudulent the er-ee relations, then the case is within
misrepresentation the jurisdiction of our labor courts. In the
absence of such nexus, it is the regular
AGRARIAN RELATIONS courts that have jurisdiction.
• Agrarian reform – redistribution of lands
regardless of the crops or the fruits to the farmers • In determining the nature of the case, check the
or regular farm workers who are landless principal relief/prayer sought by the
regardless of tenurial agreement complainant. That is the main factor that
• Rationale: emancipation of the tiller of the soil determines jurisdiction.
from his bondage
• Founded on the right of the farmers who are CASE RELIEF JURISDICTION
landless to own directly or collectively the lands Smart v. Replevin; Return RTC
they till and to receive a just share of the fruits Astorga of the car of the
thereof manager
• Scope: all public and private agricultural lands Grandteq Illegal termination Labor Arbiter
• The landowner can retain not more than 5 v. with prayer for
hectares, however, aside from the 5 hectares he Margallo reimbursement of
can award 3 hectares to his children. Provided, downpayment for
that the child is at least 15 years old and the child car
is actually tilling or directly managing the land) Indotextile Damages for RTC
• Commercial farming (livestock and poultry) is v. company’s failure
not included in land reform Adviento to provide safe and
• Sec. 11 healthy working
• Payment by the government thru the Landbank environment
Matling v. Termination of VP Labor Arbiter
UNIVERSAL HEALTH CARE ACT Coros for Finance and
• Ensure that all Filipinos will be guaranteed Administration,
equitable access to healthcare goods and services which position is
• Every Filipino citizen shall be automatically not in Articles or
included in the Universal Healthcare Program By-laws
(Sec. 5) Cosare v. Termination of Labor Arbiter
• What Benefits can we get? Broadcom Asst. VP for Sales,
® Preventive, promotive, curative, who was also a
rehabilitative, palliative care, stockholder, AVP-
Sales not a corp
® medical, dental, mental and emergency
officer
healthcare
Malayan v. Replevin; Return RTC
• Primary Healthcare focus healthcare system,
Alibudbud of the Car of the
every Filipino will now have a trusted primary
Manager
care provider. If higher health services are
needed, the primary care provider will refer the
patient to a specialist
• How to gain access? Every Filipino shall register
with a public or private healthcare provider of
choice
• Read: Sec. 6, 7, 8, 9

JURISDICTION *Illegal Dismissal Case Flow

SEnA (Single Entry Approach)
• Is this a labor or a civil dispute? Laborer v. Management

HOBIBII NOTES in LABOR LAW 2021 38

 30 calendar days
LABOR ARBITER
30 calendar days from the time is submitted for
resolution
NATIONAL LABOR RELATIONS
COMMISSION
Appeal within 10 days; post bond (cash or surety)
MR within 10 day
COURT OF APPEALS
Rule 65 within 60 days
TRO under Rule 58
NB: Execution pending appeal is allowed
SUPREME COURT
Rule 45 within 15 days
• In labor cases, grave abuse of discretion may be
ascribed to the NLRC when its findings and
conclusions are not supported by substantial evidence,
which refer to that amount of relevant evidence that a
reasonable mind might accept as adequate to justify a
conclusion. Thus, if the NLRC’s ruling has basis in the
evidence and the applicable law and jurisprudence,
then no grave abuse of discretion exists and the CA
should so declare and, accordingly, dismiss the
petition. (SLORD Dev. Corp. v. Noya, 2019)
• In labor cases, if the petitioner before this court can
show grave abuse of discretion on the part of the
NLRC, the assailed CA 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. (Protective Maximum Sec. Agency v.
Fuentas, 2015, Leonen)
• The order of the Regional Director shall be final and
executory unless appealed to the Secretary of Labor
and Employment within 10 calendar days from
receipts thereof.
® Sec. 1, Rule IV, Rules on the Disposition of
Labor Standards Cases in the Regional Offices
REGIONAL DIRECTOR
SECRETAR OF LABOR
Appeal within 10 days; MR within 10 day
COURT OF APPEALS
Rule 65 within 60 days
TRO under Rule 58
SUPREME COURT
Rule 45 within 15 days
• Under Art. 129, the Regional Director has jurisdiction
if the following concur:
1. The claim must arise from employer-employee
relationship;
2. The claimant is no longer employed and does
not seek reinstatement;
3. The aggregate money claim of each employee
does not exceed P5,000 (Brokenshire Memorial
Hospital, Inc. v. Minister of Labor and
Employment, 1990)
• RA 10361, Sec. 37 Mechanism for Settlement of
Disputes:
® 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 offense committed under
the Revised Penal Code and other special penal
laws by either party shall be filed with the
regular courts
• Any decision or resolution of the regional director or
office pursuant to this provision may be appealed on
the same grounds provided in Art. 223 (229) of this
Code, within 5 calendar days from receipt of a copy of
said decision or resolution, to the NLRC which shall
resolve the appeal within 10 calendar days from
submission of the last pleading required or allowed
under the its rules. (Urbanes, Jr. v. Sec. of Labor, 2003)
APPEAL
Art. 128 Art. 129
Appeal to the Secretary of Appeal to the NLRC (5
Labor (10 calendar days) calendar days only)
• Money Claims
REGIONAL DIRECTOR
Money Claims
NATIONAL LABOR RELATIONS
COMMISSION
Appeal within 5 days; MR within 10 day
COURT OF APPEALS
Rule 65 within 60 days
TRO under Rule 58 (otherwise, there can be
execution pending appeal)
SUPREME COURT
Rule 45 within 15 days
• Registration/Cancellation of Labor Union
REGIONAL OFFICE
30 days
BUREAU LABOR RELATIONS
Appeal within 10 days; MR within 10 day
COURT OF APPEALS
Rule 65 within 60 days
TRO under Rule 58
HOBIBII NOTES in LABOR LAW 2021 39
 SUPREME COURT • Migrant Issues
Rule 45 within 15 days RTC Criminal Case: Illegal recruitment (RA
8042, Sec. 9)
• Registration/Cancellation of Labor Union (BLR NLRC Illegal termination, compensation and
original jurisdiction) other claims relating to ER-EE
BUREAU LABOR RELATIONS relationship involving overseas Filipino
30 days workers
POEA • Licensing, registration and
SECRETARY OF LABOR recruitment of employment
Appeal within 10 days; MR 10 days agencies and other entities
• Disciplinary cases involving
COURT OF APPEALS employer, principals, contracting
Rule 65 within 60 days partners
TRO under Rule 58 OWWA Repatriation of workers in cases of war,
epidemic, disaster or calamities, natural
SUPREME COURT or man-made
Rule 45 within 15 days
VOLUNTARY ARBITRATORS
• Unresolved grievances
• Grievance Machinery and Voluntary Arbitration • Other labor disputes referred by the parties
GRIEVANCE
Laborer v. Management LABOR ARBITER
• Jurisdiction:
GRIEVANCE MACHINERY ® Termination disputes
7 days ® Money claims, if with a claim for
reinstatement
VOLUNTARY ARBITRATION ® Money claims exceeding P5,000
Final and Executory - 10 days ® ULP; legality of strikes and lockouts
File MR during this period ® All other claims arising from employer-
employee relationships, including
COURT OF APPEALS damages, except social security benefits
Rule 43 within 15 days ® Claim of OFWs
• Decision appealable to NLRC (not subject to
SUPREME COURT
MR) within 10 days
Rule 45 within 15 days**
• If there is a finding of illegal dismissal,
reinstatement aspect immediately executory
pending appeal; employer may choose between
**Do not use Rule 65
actual or payroll reinstatement
The decisions of a voluntary arbitrator fall within the
• Employer’s appeal must be perfected by filing
exclusive appellate jurisdiction of the Court of
an appeal bond equivalent to the monetary
Appeals. Indeed, this Court took this decision into
award (subject to rules on reduction)
consideration in approving the 1997 Rules of Civil
Procedure. A special civil action for certiorari under • Where the resolution of the dispute requires
expertise in the application of the general civil
Rule 65 lies only when “there is no appeal, nor plain,
speedy and adequate remedy in the ordinary course of law, LA has no jurisdiction
law. (Nippon Paint Employees Union – Olalia v. CA,
2004) NLRC
• Jurisdiction:
We note that PHILEC filed before the CA a petition for ® Appellate jurisdiction over cases decided
certiorari under Rule 65 of the ROC against by LA
Voluntary Arbitrator Jimenez’ decision. This was not ® Appellate jurisdiction over decisions of
the proper remedy. Instead, the proper remedy to Regional Director/hearing officer in simple
reverse or modify a Voluntary Arbitrator’s or a panel money claims
of Voluntary Arbitrator’s decision or award is to ® Injunction/restraining order against
appeal the award or decision before the CA based on prohibited acts
Rule 43, Secs. 1 and 3 of the ROC ® Cases referred by the DOLE Secretary
through a certification order

HOBIBII NOTES in LABOR LAW 2021 40

• Decision subject to MR, becomes final after 10 PRESCRIPTION
days from resolution • Money claims – 3 years
• Decision subject to Original Action for Certiorari • ULP – 1 year
under Rule 65, within 60 days • Dismissals – 4 years
• A decision finding illegal dismissal and ordering
reinstatement is not immediately executory, it
will require a Writ of Execution

REGIONAL OFFICE
• Jurisdiction:
® Simple money claims up to P5,000 per
employee, if no claim for reinstatement
® Visitorial & enforcement powers –
inspection cases; premise on existing
employer-employee relationship
® Certification election cases
• Procedure:
® Simple money claims cases appealable to
NLRC
® Inspection cases/writ of compliance
appealable to DOLE Secretary
® CE cases appealable to DOLE Secretary

DOLE SECRETARY
• Jurisdiction:
® Assumption of jurisdiction cases (cases
subject of Certification Order will be
decided by NLRC)
® Visitorial & enforcement powers –
inspection cases; premise on existing
employer-employee relationship
® Appellate jurisdiction over CE cases &
inspection cases subject to Writ of
Compliance
• Procedure:
® Decision in CE cases not subject to MR
® Decision subject to Original Action for
Certiorari under Rule 65, within 60 days

BLR/INDUSTRIAL RELATIONS DIVISION (IRD) IN

REGIONAL OFFICES
• Inter/Intra Union disputes
® BLR – original jurisdiction over cases
involving federations and appellate
jurisdiction over cases involving
independent unions and chapters
® IRD of Regional Office (Med-Arbiter) –
original jurisdiction over cases involving
independent unions and chapters
• Decision of IRD-Reg Office appealable to BLR
• Decision of BLR in federation cases appealable
to Secretary of Labor
• Decision of BLR in appealed cases decided by
the IRD Regional Office subject to Original
Action under Rule 65, Petition for Certiorari

“Therefore, I tell you, whatever you ask in prayer, believe that you have received it and it will be yours.”
That in all things God may be glorified.

HOBIBII NOTES in LABOR LAW 2021 41