NOTES ON LABOR LAW REVIEW

PART TWO
First Semester, SY 2022-2023

BY:

ATTY. VON LOVEL D. BEDONA, LL.M.

Professor

JURISDICTION

Jurisdiction is the power and authority of a court or a tribunal to hear, try, and decide a case
before it. A judgment rendered by a body without jurisdiction is void and may be attacked any
time. It is settled that jurisdiction over the subject matter is conferred by law and determined by
the allegations in the complaint, including the character of the reliefs prayed for.

Regional Director

Article 129 – Recovery of Wages, Simple Money Claims and Others

Money Claims not exceeding P 5,000.00

Labor Arbiters

Article 224 – Jurisdiction of the Labor Arbiters and the Commission

(a)
(1) Unfair labor practice cases;

(2) Termination disputes;

(3) If accompanied with a claim for reinstatement, those cases that workers may
file involving wages, rates of pay, hours of work and other terms and conditions of employment;

(4) Claims for actual, moral, exemplary and other forms of damages arising from
the employer-employee relations;

(5) Cases arising from any violation of Article 264 of this Code, including
questions involving the legality of strikes and lockouts; and

(6) Except claims for Employees Compensation, Social Security, Medicare and
maternity benefits, all other claims arising from employer-employee relations, including those of
persons in domestic or household service, involving an amount exceeding five thousand pesos (P
5,000.00) regardless of whether accompanied with a claim for reinstatement.

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(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor
Arbiters.

(c) Cases arising from the interpretation or implementation of collective bargaining agreements
and those arising from the interpretation or enforcement of company personnel policies shall
be disposed of by the Labor Arbiter by referring the same to the grievance machinery and
voluntary arbitration as may be provided in said agreements.

Bureau Of Labor Relations

Article 232

The Bureau of Labor Relations and the Labor Relations Divisions in the regional offices of the
Department of Labor shall have original and exclusive authority to act, at their own initiative or
upon request of either or both parties, on all inter-union and intra-union conflicts, and all
disputes, grievances or problems arising from or affecting labor-management relations in all
workplaces, whether agricultural or non-agricultural, except those arising from the
implementation or interpretation of collective bargaining agreements which shall be the subject of
grievance procedure and/or voluntary arbitration.

Grievance Machinery And Voluntary Arbitration

Article 224 (c)

(c) Cases arising from the interpretation or implementation of collective bargaining agreements
and those arising from the interpretation or enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary
arbitration as may be provided in said agreements.

Article 274 (formerly 261) – Jurisdiction of Voluntary Arbitrators or Panel of Voluntary

Arbitrators

The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel policies referred to in the immediately preceding article.
Accordingly, violations of a Collective Bargaining Agreement, except those which are gross in
character, shall no longer be treated as unfair labor practice and shall be resolved as grievances
under the Collective Bargaining Agreement. For purposes of this article, gross violations of
Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the
economic provisions of such agreement.

APPEAL

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Article 129

Decision or resolution of the regional director or hearing officer may be appealed on the same
grounds provided in Article 229 of the Labor Code within five (5) days.

Article 224 (b) The Commission shall have exclusive appellate jurisdiction over all cases decided
by Labor Arbiters.

Article 232

LRD to BLR
BLR to SOLE

If in the exercise of appellate jurisdiction to the CA

Article 274

VA to CA via Petition for review under Rule 43 of the Rules of Court (Note: Motion for
reconsideration of the Decision of VA is required to exhaust the administrative remedies. The
Rules of Procedure in the Conduct of Voluntary Arbitration Proceedings that eliminates the
motion for reconsideration of the losing party had been nullified by the SC.)

CONSTITUTIONAL PROVISIONS

ARTICLE II

Section 10 - The State shall promote social justice in all phases of national development.

Social Justice Applies To Employers And Employees Alike

The Employees Who Are Terminated Based On Article 297 Of The Labor Code Are Generally
Not Entitled To Separation Pay Or Financial Assistance

Section 18 – The state affirms labor as a primary social economic force. It shall protect the
rights of workers and promote their welfare.

The State is bound under the Constitution to afford full protection to labor. When conflicting
interests of labor and capital are to be weighed on the scales of social justice, the heavier
influence of the latter should be counterbalanced with the sympathy and compassion the law
accords the less privileged workingman.

Hence, labor is not a mere employee of capital but its active and equal partner. Evidently, courts
should be ever vigilant in the preservation of the constitutionally enshrined rights of the
working class. Certainly, without the protection accorded by our laws and the tempering of

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courts, the natural and historical inclination of capital to ride roughshod over the rights of labor
would run unabated.

Security of tenure remains even if employees, particularly the overseas Filipino workers
(OFW), work in a different jurisdiction. Since the employment contracts of the OFWs are
perfected in the Philippines, and following the principle of the law of the place where the
contract is made (lex loci contractus) these contracts are governed by our laws, primarily the
Labor Code of the Philippines and its implementing rules and regulations.

ARTICLE III

Section 1 – No person shall be deprived of life, liberty or property without due process of law,
nor shall any person be denied of the equal protection of laws.

No person shall be deprived of life, liberty or property without due process of law, nor
shall any person be denied of the equal protection of laws.

A worker’s employment is property in constitutional sense – he cannot be deprived of his work

without due process. Asuncion v. NLRC, 362 SCRA 56

“the right of a person to his labor is deemed to be property within the meaning of constitutional
guarantees”.

Due Process Is Constitutionally Guaranteed Right

The Procedural Aspect Of Due Process

Under the Labor Code, there are twin requirements to justify a valid dismissal from
employment: (a) the dismissal must be for any of the causes provided in Article 297 of the
Labor Code (substantive aspect) and (b) the employee must be given an opportunity to be heard
and defend himself (procedural aspect). Article 292 

Wilfredo T. Mariano v. G.V. Transport and Virgilio Florida, Jr., G.R. No. 240882, September
16, 2020; Neren Villanueva v. GANCO Resort and Recreation et al., G.R. No. 227175, January
8, 2020, citing the case of King of Kings Transport, Inc. v. Mamac

Section 8 - The right of the people, including those employed in the public and private sectors,
to form unions, associations or societies for purpose not contrary to law shall not be abridged.

The Civil Servants Enjoy the Right to Self-Organization But Their Right To Collective
Bargaining Negotiation Is Subject To Limitations

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The right to self-organization is not limited to private employees and encompasses all workers
in both the public and private sectors. "The right to self-organization shall not be denied to
government employees."

Government employees may, therefore, through their unions or associations, either petition the
Congress for the betterment of the terms and conditions of employment which are within the
ambit of legislation or negotiate with the appropriate government agencies for the improvement
of those which are not fixed by law. GSIS Family Bank Employees Union v. Sec. Cesar L.
Villanueva et al., G.R. No. 210773, January 23, 2019

ARTICLE XIII

Section 3 – The state shall afford 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
negotiation, and peaceful and concerted activities, including the right to strike in accordance
with law. They shall be entitled to security of tenure, humane conditions of work and a living
wage. They shall also participate in policy and decision-making processes affecting their rights
and benefits as maybe provided by law.

The state shall promote the shared responsibility between workers and employers and the
preferential use of voluntary modes of settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace.

The state shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
on investments, and to expansion and growth.

The State Has The Duty To Protect The Rights Of Overseas Contract Workers

They must keep in mind that this country is not exporting slaves but human beings, and above
all, fellow Filipinos seeking merely to improve their lives. The dignity of all workers is a value
that we all should protect. It is definitely protected under our laws. Donna B. Jacob v. First Step
Manpower Int’l. Services, Inc., G.R. No. 229984, July 8, 2020

The Cap On Money Claims Of Overseas Filipino Workers As Provided In Republic Act No.
10022 Was Invalidated By The Supreme Court

Reiterating the finding of the Supreme Court in Serrano case, it ruled that limiting wages that
should be recovered by an illegally dismissed overseas worker to three months is both a
violation of due process and the equal protection clauses of the Constitution.

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Putting a cap on the money claims of certain overseas workers does not increase the standard of
protection afforded to them.

In The Hierarchy Of The Rights Of Employees, The Right To Security Of Tenure Is High, If Not
The Highest

Management Prerogative

The law, in protecting the rights of the laborers, authorizes neither oppression nor self-
destruction of the employer. While the Constitution is committed to the policy of social justice
and the protection of the working class, it should not be supposed that every labor dispute will
be automatically decided in favor of labor. The management also has its own rights, as such, are
entitled to respect and enforcement in the interest of simple fair play.

The Constitutionally Guaranteed Right To Security Of Tenure

It should be noted that a mere desire to reinstate an employee to his/her former position does not
satisfy the requirement of the law. Such cannot amount to substantial compliance on the part of
the employer nor will it effectively negate the idea that the employee was not being dismissed
after the period of preventive suspension.

The Constitutional Right Of Employees To Participate In Matters Affecting Their Benefits And
The Sanctity Of The CBA

The Constitutional Freedom of Expression

A laborer does not lose his or her right to freedom of expression upon employment. This is "a
political right essential to man's enjoyment of his or her life, to his or her happiness, and to his or
her full and complete fulfillment." While the Constitution and the courts recognize that
employers have property rights that must also be protected, the human rights of laborers are
given primacy over these rights. Property rights may prescribe. Human rights do not.

THE LABOR CODE

Article 218 (formerly 211) – Declaration of Policy

Article 219 (formerly 212) – Definitions

Article 220 (formerly 213) – National Labor Relations Commission

Article 221 – 223

Article 224 - The jurisdiction of Labor Arbiters and the National Labor Relations Commission

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(Note: Jurisdiction was earlier discussed)

Delineation Between Jurisdiction Of The Labor Arbiters And The Regular Courts

Article 224 Of The Labor Code Also Applies To Employers' Claim For Damages, Which Arises
From Or Is Connected With The Labor Issue

Section 10, Republic Act 8042 Grants The Labor Arbiters Exclusive Jurisdiction Over Claims
Of Filipino Overseas Contract Workers Arising Out Of Employer-Employee Relationship

The Labor Arbiter Has Original And Exclusive Jurisdiction Over Termination Dispute Except
When The Parties, Under Article 273 Unmistakably Express That They Agree To Submit The
Same To Voluntary Arbitration

Voluntary Arbitrator Or Panel Of Voluntary Arbitrators Acquires Jurisdiction Over The Claims
Of Filipino Seafarers If Covered By Collective Bargaining Agreement (CBA)

As A Rule, Labor Arbiters And The National Labor Relations Commission Have No Power Or
Authority To Grant Reliefs From Claims That Do Not Arise From Employer-Employee
Relations.

The Labor Arbiter And The NLRC Have No Jurisdiction Over Claims Arising From Tort Or
Negligence If It Has No Causal Connection With Employer-Employee Relations

The Labor Arbiter Has No Jurisdiction Over Intra-Corporate Controversy

Relationship Test

A dispute is considered an intra-corporate controversy under the relationship test when

the relationship between or among the disagreeing parties is any one of the following:
(a) between the corporation, partnership, or association and the public; (b) between the
corporation, partnership, or association and its stockholders, partners, members, or
officers; (c) between the corporation, partnership, or association and the State as far as
its franchise, permit or license to operate is concerned; and (d) among the stockholders,
partners, or associates themselves.

The "Reasonable Connection Rule" Applies To Claim For Damages Under Paragraph 4 of
Article 224

Article 225 (formerly 218) – Powers of the Commission

(No original and exclusive jurisdiction over labor disputes except (a) promulgation of its own
rules; (b) certified cases; and (c) petition for injunction and issuance of TRO)

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Article 226 (formerly 219)– Ocular inspection

Article 227 (formerly 221) – Technical Rules Not Binding and Prior Resort to Amicable
Settlement

Article 228 (formerly 222) – Appearances and Fees

Article 228(b) likewise prohibits attorney's fees, negotiations fees and similar charges arising out
of the conclusion of a collective bargaining agreement from being imposed on any individual
union member. The collection of the special assessment partly for the payment for services
rendered by union officers, consultants and others may not be in the category of "attorney's fees
or negotiations fees.” But there is no question that it is an exaction which falls within the
category of a "similar charge," and, therefore, within the coverage of the prohibition in the
aforementioned article.

Article 229 (formerly 223) – Appeal

(Note: To be perfected in ten (10) days for cases decided by LA and five (5) days for cases
decided by the Regional Director.)

The right to appeal, however, is not a constitutional, natural or inherent right. It is a statutory
privilege of statutory origin and, therefore, available only if granted or provided by statute.

Relaxation Of the Rules on Appeal;

Liberal Application of The Requirements for The Appeal Bond

Reinstatement Pending Appeal

Article 229 (3rd paragraph) of the Labor Code, provides that an order of reinstatement by the
Labor Arbiter is immediately executory even pending appeal.

Article 230 (formerly 224) – Execution of Decisions, Orders, or Awards

The Re-Computation Of The Consequences Of Illegal Dismissal Upon Execution Of The

Decision Does Not Constitute An Alteration Or Amendment Of The Final Decision Being
Implemented.

The Nature Of An Illegal Dismissal Case Requires That Backwages Continue To Add On Until
Full Satisfaction

The Doctrine Of Piercing The Corporate Veil

Article 231 (formerly 225) – Contempt Powers of the Secretary of Labor and Employment

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In the exercise of his powers under this Code, the Secretary of Labor may hold any person in
direct or indirect contempt and impose the appropriate penalties therefor.

Article 232 (formerly 226) – Bureau of Labor Relations

(Intra-unio and inter-union conflicts)

The Bureau Of Labor Relation (BLR) And The Labor Relations Division (LRD) Have
Concurrent Original And Exclusive Jurisdiction On All Inter-Union And Intra-Union Conflicts

Jurisdiction Over Expulsion Of Local Officers Of The Union

Dispute On Disaffiliation Of The Local Union From The National Union Or Federation Is
Within The Jurisdiction Of The BLR Or LRD

The Assent Of 30% Of The Union Members Is Not A Factor In The Acquisition Of Jurisdiction
By The Bureau Of Labor Relations In Intra-Union Conflicts.

The BLR And LRD Have No Jurisdiction Over Claims For Actual, Moral, Exemplary And
Other Forms Of Damages Even If These Arise From Inter-Union Or Intra-Union Conflicts.

Appellate Jurisdiction Of The Secretary Of Labor And Employment And Bureau Of Labor
Relations

Article 233 (formerly 227) – Compromise Agreements

Standard Requirements Of A Valid Quitclaim

In order to prevent disputes on the validity and enforceability of quitclaims and waivers of
employees under Philippine laws, said agreements should contain the following:

1. A fixed amount as full and final compromise settlement;

2. The benefits of the employees, if possible, with the corresponding amounts, which the
employees are giving up in consideration of the fixed compromise amount;

3. A statement that the employer has clearly explained to the employee in English, Filipino, or
in the dialect known to the employees — that by signing the waiver or quitclaim, they are
forfeiting or relinquishing their right to receive the benefits which are due them under the
law; and

4. A statement that the employees signed and executed the document voluntarily, and had fully
understood the contents of the document and that their consent was freely given without any

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 threat, violence, duress, intimidation, or undue influence exerted on their person. Raymond
D. Jacob et al. v. Villaseran Maintenance Service Corp., G.R. No. 243951, January 20,
2021

The Requisites Of The Valid Deed Of Release, Waiver Or Quitclaim

To be valid, a deed of release, waiver or quitclaim must meet the following requirements: (1)
that there was no fraud or deceit on the part of any of the parties; (2) that the consideration for
the quitclaim is sufficient and reasonable; and (3) that the contract is not contrary to law, public
order, public policy, morals or good customs, or prejudicial to the third person with a right
recognized by law.

The Parties May Enter Into A Valid Compromise Agreement Without The Intervention Of Their
Lawyers;

The Final Judgment Cannot Preclude A Client From Entering Into Compromise

Waivers And Quitclaims Made Under Circumstances Of Dire Need And With A Gross
Disparity Between The Actual Claim And The Amount Of The Settlement Are Invalid

A Deed Of Release Or Quitclaim Does Not Bar An Employee From Demanding Benefits To
Which He Is Legally Entitled.

Settlement May Not Later Be Disowned Simply Because Of Change Of Mind.

The Claim Of "Dire Necessity" Is Not An Acceptable Ground For Annulling The Release When
It Is Not Shown That The Employee Has Been Forced To Execute It.

Improper Notarization Of Receipt, Release And Quitclaim Will Not Invalidate The Settlement.

The Limited Application Of The Compromise Agreement Entered Between The Union And The
Employer

Articles 234 (formerly 228) Mandatory Conciliation and Endorsement of Cases

Article 235 (formerly 229) Issuance of Subpoenas

Article 236 (formerly 230) Appointment of Bureau Personnel.

Article 237 (formerly 231) Registry of Unions and File of Collective Bargaining Agreements

The Bureau shall keep a registry of legitimate labor organizations. The Bureau shall also maintain
a file of all collective bargaining agreements and other related agreements and records of

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settlement of labor disputes and copies of orders and decisions of voluntary arbitrators or panel of
voluntary arbitrators.
The bureau issues certificate of registration of CBA

Article 238 (formerly 232) – Prohibition on Certification Election

Exception: (1) Remaining sixty (60) days prior to the expiration of CBA; (2) The contract bar
rule; (3) In the organized establishments.

Article 239 (formerly 233) – Privileged Communication

Article 240 (formerly 234) – Requirements of Registration

To Comply The Requirement Of Paragraph (c) Of Article 240 Of The Labor Code, The
Bargaining Unit In The Establishment Must First Be Established.

An Independently Registered Affiliate Does Not Owe Its Existence To The Federation Which It
Affiliated

The Mandatory Requirement Of Twenty Per Cent (20%) Of The Employees In The Bargaining
Unit Explained.

Jurisdiction On Merger Or Consolidation Of Labor Unions

Article 241 (formerly 234 – A) Chartering and Creation of a Local Chapter

When Legal Personality Of The Chartered Or Chapter Acquired

The issuance of the certificate of registration by the Bureau or Regional Office is not the
operative act that vests legal personality upon a local/chapter under Department Order
No. 9. Such legal personality is acquired from the filing of the complete documentary
requirements enumerated in Section 1, Rule VI.

A local or chapter need not be independently registered to acquire legal personality. The task of
determining whether the local or chapter has submitted the complete documentary requirements
is lodged with the Regional Office or the BLR, as the case may be.

Chartered Local Union Distinguished From Independently Registered Local Union

Under the Labor Code, a chartered local union acquires legal personality through the charter
certificate issued by a duly registered federation or national union and reported to the Regional
Office. "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.
Mere affiliation does not divest the local union of its own personality neither does it give the

Last Minute Lecture in Labor Law – October 31, 2022

mother federation the license to act independently of the local union. It only gives rise to a
contract of agency, where the former acts in representation of the latter. Hence, local unions are
considered principals while the federation is deemed to be merely their agent."

The Charter Certificate Need Not Be Certified Under Oath By The Local Union's Secretary Or
Treasurer And Attested To By Its President.

Article 242 (formerly 235) – Action on Application

Article 243 (formerly 236) Denial of Registration; Appeal

Article 244 (formerly 237) – Additional Requirements for Federations or National Unions

(Affiliation of not less than ten (10) local unions certified as the sole and exclusive bargaining
agents.)

Union Affiliation; Direct Membership With A National Union

In any case, the submission of the local union of the following would sufficiently satisfy the
requirements for registration: (1) copies of the ratified CBL; (2) the minutes of the CBL's
adoption and ratification; (3) the minutes of the organizational meetings; (4) the names and
addresses of the union officers; (5) the list of union members; (6) the list of rank-and-file
employees in the company; (7) a certification of non-existence of a CBA in the company; (8) the
resolution of affiliation with the federation and the latter's acceptance; and (9) their Charter
Certificate. These submissions should be properly verified as required by the rules.

Only The Local Union May Invoke The Union Security Clause In The CBA.

The Right Of The Independently Registered Local Union To Disaffiliate From The National
Union Or Federation

A local union has the right to disaffiliate from its mother union or declare its autonomy. A local
union, being a separate and voluntary association, is free to serve the interests of all its members
including the freedom to disaffiliate or declare its autonomy from the federation which it
belongs when circumstances warrant, in accordance with the constitutional guarantee of freedom
of association

Let it be noted that the issue of disaffiliation is an inter-union conflict the jurisdiction of which
properly lies with the Bureau of Labor Relations (BLR) and not with the Labor Arbiter.

A Local Union Which Has Affiliated Itself With A Federation Is Free To Sever Such Affiliation
Anytime And Such Disaffiliation Cannot Be Considered Disloyalty

Article 245 (formerly 238) – Cancellation of Registration

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Article 246 (formerly 238 - A) – Effect of a Petition for Cancellation of Registration

Pendency Of The Cancellation Of A Union's Registration Cannot Bar The Certification

Election

Article 247 (formerly 239) – Grounds for Cancellation of Union Registration

Cancellation Of Union’s Registration Grounded Upon Misrepresentation, False Statement Or

Fraud As provided In Article 247 (a) And (b) Of The Labor Code

The 20% Minimum Membership Is Merely Required During The Application For Union
Registration. It Is Not Required All Throughout The Union’s Existence.

However, this does not prevent another union within the same company from challenging the
status of the union as the legitimate labor organization authorized to represent the interests of
the employees with the management.

To Be A Valid Ground For Cancellation Of The Union’s Registration, The Nature Of The
Fraud And Misrepresentation Must Be Grave And Compelling Enough To Vitiate The
Consent Of A Majority Of Union Members.

Effect Of The Inclusion Of Disqualified Employees In A Union

The inclusion as union members of employees who are outside the bargaining unit shall not be a
ground to cancel the union registration. The ineligible employees are automatically deemed
removed from the list of membership of the union.

Certification Election Is The Sole Concern Of The Workers And The Employer Is Purely A
Bystander

Mixed Membership Does Not Result In The Illegitimacy Of The Registered Labor Union
Unless The Same Was Done Through Misrepresentation, False Statement Or Fraud According
To Article 239 Of The Labor Code.

Article 248 (formerly 239 – A) Voluntary Cancellation of Registration

The registration of a legitimate labor organization may be cancelled by the organization itself:
Provided, That at least two – thirds of its general membership votes, in a meeting duly called for
that purpose to dissolve the organization: Provided, further, That an application to cancel
registration is thereafter submitted by the board of the organization, attested to by the president
thereof.

Article 249 (formerly 240) Equity of the Incumbent

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All existing federations and national unions which meet the qualifications of a legitimate labor
organization and none of the grounds for cancellation shall continue to maintain their existing
affiliates regardless of the nature of the industry and the location of the affiliates.

Article 250 (formerly 241) – Rights and Conditions of Membership in a Labor Organization

Attorney’s Fees May Not Be Deducted Or Checked Off From Any Amount Due To An
Employee Without His Written Consent

An Individual Written Authorization Duly Signed By Every Employee In Order That A Special
Assessment May Be Validly Checked-Off Is Required.

Article 251 (formerly 242) – Rights of Legitimate Labor Organizations

Legitimate labor organization shall have the right:

(a) Act as the representative of its members for the purpose of collective
bargaining;

(b) To be certified as the exclusive representative of all the employees in an

appropriate bargaining unit for purposes of collective bargaining;

(c) To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss statement, within thirty
(30) calendar days from the date of receipt of the request, after the union has been duly
recognized by the employer or certified as the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the collective bargaining negotiation;

(d) To own property, real or personal, for the use and benefit of the labor
organization and its members;

(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not contrary to law.

Notwithstanding any provision of a general or special law to the contrary, the income and the
properties of legitimate labor organizations, including grants, endowments, gifts, donations and
contributions they may receive from fraternal and similar organizations, local or foreign, which
are actually, directly and exclusively used for their lawful purposes, shall be free from taxes,
duties and other assessments. The exemptions provided herein may be withdrawn only by a
special law expressly repealing this provision.

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Article 252 (formerly 242 - A) – Reportorial Requirements

Failure To Comply With The Reportorial Requirements Shall Not Be A Ground For
Cancellation Of Union Registration But Shall Subject The Erring Officers Or Members To
Suspension, Expulsion From Membership, Or Any Appropriate Penalty

Article 253 (formerly 243) – Coverage and Employees' Right to Self – organization

All persons employed in commercial, industrial and agricultural enterprises and in religious,
charitable, medical, or educational institutions, whether operating for profit or not, shall have
the right to self – organization and to form, join, or assist labor organizations of their own
choosing for purposes of collective bargaining.

Right To Self-Organization Includes The Right To Form A Union, Workers 'Association And
Labor Management Councils

Right To Choose Whether To Form Or Join A Union Or Workers' Association Belongs To

Workers Themselves

The Protection Of Workers' Right To Self-Organization In No Way Interfere With Employer's

Freedom To Enforce Such Rules And Orders As Are Necessary To Proper Conduct Of His
Businesses

The Test Of Whether An Employer Has Interfered With And Coerced Employees In The
Exercise Of Their Right To Self-Organization

In the case of Insular Life Assurance Co., Ltd. Employees Association-NATU v. Insular Life
Assurance Co. Ltd., the Court had occasion to lay down the test of whether an employer has
interfered with and coerced employees in the exercise of their right to self-organization, that is,
whether the employer has engaged in conduct which, it may reasonably be said, tends to
interfere with the free exercise of employees' rights; and that it is not necessary that there be
direct evidence that any employee was in fact intimidated or coerced by statements of threats of
the employer if there is a reasonable inference that anti-union conduct of the employer does
have an adverse effect on self-organization and collective bargaining.

The Constitutionally Guaranteed Right To Strike Is Not Without Limitations.

Article 254 (formerly 244) – Right of Employees in the Public Service

Right To Self-Organization Of Government Employees May Not Include CBA Negotiations

Officers and employees of government-owned or controlled corporations without original

charters are covered by the Labor Code, not the Civil Service Law. However, non-chartered
government-owned or controlled corporations are limited by law in negotiating economic terms

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with their employees. This is because the law has provided the Compensation and Position
Classification System (departure from my previous lecture), which applies to all government-
owned or controlled corporations, chartered or non – chartered.

The right to self-organization is not limited to private employees and encompasses all workers in
both the public and private sectors, as shown by the clear declaration in Article IX (B), Section 2
(5) that "the right to self-organization shall not be denied to government employees." Article III,
Section 8 of the Bill of Rights likewise states, "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."

While the right to self-organization is absolute, the right of government employees to collective
bargaining and negotiation is subject to limitations.

Article 255 (formerly 245) – Ineligibility of Managerial Employees to Join Any Labor
Organization; Right of Supervisory Employees

The present Article 245 (Article 255) of the Labor Code expressly allows supervisory
employees who are not performing managerial functions to join, assist or form their separate
union but bars them from membership in a labor organization of the rank-and-file employees.
"This provision obviously allows more than one union in a company.

Article 256 (formerly 245 - A) – Effect of Inclusion as Members of Employees Outside the
Bargaining Unit

Even assuming that there is a violation of Article 255, such violation will not result in the
cancellation of the certificate of registration of a labor organization.

Said employees are automatically deemed removed from the list of membership of said union.

Article 257 (formerly 246) – Non-abridgment of Right to Self-organization

The right to form a union or association or to self-organization comprehends two notions, to wit:
(a) the liberty or freedom, that is, the absence of restraint which guarantees that the employee
may act for himself without being prevented by law; and (b) the power, by virtue of which an
employee may, as he pleases, join or refrain from joining an association.

Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management but are also criminal offenses against the State which shall be subject to
prosecution and punishment as herein provided.

Article 258 (formerly 247) – Concept of Unfair Labor Practice and Procedure for Prosecution
Thereof

Last Minute Lecture in Labor Law – October 31, 2022

Unfair labor practices violate the constitutional right of workers and employees to self-
organization, are inimical to the legitimate interests of both labor and management, including
their right to bargain collectively and otherwise deal with each other in an atmosphere of
freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and
stable labor-management relations.

Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management but are also criminal offenses against the State which shall be subject to
prosecution and punishment as herein provided.

Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil
Code.

No criminal prosecution under this Title may be instituted without a final judgment finding that
an unfair labor practice was committed, having been first obtained in the preceding paragraph.
During the pendency of such administrative proceeding, the running of the period of prescription
of the criminal offense herein penalized shall be considered interrupted: Provided, however,
That the final judgment in the administrative proceedings shall not be binding in the criminal
case nor be considered as evidence of guilt but merely as proof of compliance of the
requirements therein set forth.

Unfair Labor Practices Violate The Constitutional Rights Of Workers And Employees To Self-
Organization

Unfair Labor Practice (ULP) Relate To The Workers' Right To Self-Organization And To The
Observance Of A Collective Bargaining Agreement (CBA)

Unfair Labor Practices Are Not Only Violations Of The Civil Rights Of Both Labor And
Management But Are Also Criminal Offenses Against The State Which Shall Be Subject To
Prosecution And Punishment.

The Labor Code Has Again Criminalized The Unfair Labor Practices.

The Status Of A Company-Dominated Union Must Be First Cleared In The Unfair Labor
Practice Proceeding Before The Voting In Certification Election Could Take Place.

Quitclaims And/Or Complete Releases Of Claims Arising From Unfair Labor Practices Of The
Employer Are Against Public Policy

The Employer Must Respect The CBA To Avoid The Risk Of Committing ULP.

Article 259 (formerly 248) – Unfair Labor Practices of Employers

“Surface Bargaining” Violates The Duty To Bargain Collectively

Last Minute Lecture in Labor Law – October 31, 2022

“Interference” Under Article 259 (a) Of The Labor Code Is Unfair Labor Practice

The interference, restraint or coercion of the employer in the employees’ exercise of their rights
to self-organization and to bargain collectively through representatives of their own choosing
and the refusal of the employer to bargain collectively with the employees’ representatives
constitutive of Unfair Labor Practice.

******
"Union security is a generic term which is applied to and comprehends 'closed shop,' 'union
shop,' 'maintenance of membership' or any other form of agreement which imposes upon
employees the obligation to acquire or retain union membership as a condition affecting
employment. There is union shop when all new regular employees are required to join the union
within a certain period for their continued employment. 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, 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. A closed shop, (It is "the most prized achievement of unionism.") on the other
hand, 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 of which the
employees in interest are a part."
Article 260 (formerly 249) – Unfair Labor Practices of Labor Organizations

Contracting Out Of Services In The Exercise Of Management Prerogative Is Not Unfair Labor
Practice

Termination Of Union Members And Officers Grounded Upon Enforcement Of Union Security
Clause Constitutes Unfair Labor Practice If Not Supported By Substantial Evidence

To validly terminate the employment of an employee through the enforcement of the union
security clause, the following requisites must concur: (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 decision of the union to expel the employee from
the union.

“Blue-Sky Bargaining” constitutes unfair labor practice

Blue-sky bargaining is committed when the union is making exaggerated or unreasonable

proposals for collective bargaining negotiation.

Article 261 (formerly 250) – Procedure in Collective Bargaining

Last Minute Lecture in Labor Law – October 31, 2022

The Employer Has No Legal Duty To Initiate Contract Negotiation.

The Labor Organization Must Be The Exclusive Bargaining Representative Of The Employees
In The Bargaining Unit.

The factors in determining the appropriate collective bargaining unit are (1) the will of the
employees (Globe Doctrine); (2) affinity and unity of the employees' interest, such as
substantial similarity of work and duties, or similarity of compensation and working conditions
(Substantial Mutual Interests Rule); (3) prior collective bargaining history; and (4) similarity of
employment status. The basic test of an asserted bargaining unit's acceptability is whether or not
it is fundamentally the combination which will best assure to all employees the exercise of their
collective bargaining rights.

The test of grouping is community or mutuality of interest. This is so because the basic test of
an asserted bargaining unit's acceptability is whether or not it is fundamentally the combination
which will best assure to all employees the exercise of their collective bargaining rights.

Article 262 (formerly 251) – Duty to Bargain Collectively in the Absence of Collective Bargaining
Agreement

"It has been held that the crucial question whether or not a party has met his statutory duty
to bargain in good faith typically turns on the facts of the individual case. There is no per se
test of good faith in bargaining. Good faith or bad faith is an inference to be drawn from
the facts." "The effect of an employer's or a union's actions individually is not the test of
good-faith bargaining, but the impact of all such occasions or actions, considered as a
whole."

In the cases of Kiok Loy, Divine Word University of Tacloban v. Secretary of Labor and
Employment, and General Milling Corporation v. Hon. Court of Appeals, General Milling
Corporation Independent Labor Union, the Court unilaterally imposed upon the employers the
CBAs proposed by the unions after the employers were found to have violated their duty to
bargain collectively. This is on the premise that the said employers, by their acts which bespeak
of insincerity, had lost their statutory right to negotiate or renegotiate the terms and conditions
contained in the unions' proposed CBAs.

Article 263 (formerly 252) – Meaning of Duty to Bargain Collectively

Such duty to bargain collectively means the performance of the mutual obligation to meet and
confer promptly and expeditiously and in good faith, for the purpose of negotiating an
agreement with respect to wages, hours, and/or terms and conditions of employment, and of
executing a written contract incorporating such agreement if requested by either party, or for the
purpose of adjusting any grievances or question arising under such agreement, but such duty
does not compel any party to agree to a proposal or to make concession."

Last Minute Lecture in Labor Law – October 31, 2022

As A Contract, The Collective Bargaining Agreement Is Binding Between The Employer And
The Bargaining Representative Of The Employees In The Bargaining Unit.

“Surface Bargaining”; “Blue-sky Bargaining”

Surface bargaining is defined as “going through the motions of negotiating” without any legal
intent to reach an agreement.

Blue-sky bargaining is committed when the union is making exaggerated or unreasonable

proposals for collective bargaining negotiation.

The Pendency Of A Petition For Cancellation Of Union Registration Does Not Preclude
Collective Bargaining
Article 264 (formerly 253) – Duty to Bargain Collectively When There Exists a Collective
Bargaining Agreement

Article 264 mandates the parties to keep the status quo and to continue in full force and effect
the terms and conditions of the existing agreement during the 60-day period prior to the
expiration of the old CBA and/or until a new agreement is reached by the parties. In the same
manner that it does not provide for any exception nor qualification on which economic
provisions of the existing agreement are to retain its force and effect, the law does not
distinguish between a CBA duly agreed upon by the parties and an imposed CBA like the one
under consideration.

Article 265 (formerly 253 - A) – Terms of a Collective Bargaining Agreement

Any Collective Bargaining Agreement that the parties may enter into shall, insofar as the
representation aspect is concerned, be for a term of five (5) years.

The Freedom Period

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.

The “Contract Bar Rule”

Article 266 (formerly 254) – Injunction Prohibited

Article 267 (formerly 255) – Exclusive Bargaining Representation and Workers Participation in
Policy and Decision-making

With or without collective bargaining agreement, the workers have the right to participate in
policy and decision – making processes of the establishment if the same will directly affect their
rights and welfare. For this reason, the majority of the employees, representing the majority,

Last Minute Lecture in Labor Law – October 31, 2022

shall elect their representatives in the labor – management council that maybe formed by the
employer and workers.

Article 268 (formerly 256) – Representation Issue in Organized Establishments

Certification Election is only confined to the members of the bargaining unit.

Certification Election Shall Proceed Even With Pending Petition For Cancellation Of Union’s
Registration

Article 269 (formerly 257) – Petitions in Unorganized Establishments

Article 270 (formerly 258) – When an Employer May File Petition

When requested to bargain collectively, an employer may petition the Bureau for an election. If
there is no existing certified collective bargaining agreement in the unit, the Bureau shall, after
hearing, order a certification election.

Article 271 (formerly 258 - A) – Employer as Bystander

In Certification Elections, The Employer Is A Bystander (Bystander Rule)

Article 272 (formerly 259) – Appeal from Certification Election Orders

Article 273 (formerly 260) – Grievance Machinery and Voluntary Arbitration

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

It should be remembered that a grievance procedure is part of the continuous process of collective
bargaining (Republic Savings Bank vs. CIR, 1967). It is intended to promote a friendly dialogue
between labor and management as a means of maintaining industrial peace. The employer’s
refusal to heed the union’s request to undergo the grievance procedure clearly demonstrated its
lack of intent to abide by the terms of the CBA.

Article 274 (formerly 261) – Jurisdiction of Voluntary Arbitrators or Panel of Voluntary

Arbitrators

The Exclusive And Original Jurisdiction Of The Voluntary Arbitrator Or Panel Of Voluntary
Arbitrators

Appeal As A Remedy To Reverse Or Modify A Voluntary Arbitrator's Or A Panel Of Voluntary

Arbitrators' Decision Or Award

Last Minute Lecture in Labor Law – October 31, 2022

To CA under Rule 43 of the Rules of Court

The Motion For Reconsideration Of The Decision Of Voluntary Arbitrator Or Panel Of

Voluntary Arbitrators Is Allowed

The Supreme Court had settled the issue on whether the motion for reconsideration of the
decision of the voluntary arbitrator or panel of voluntary arbitrators is allowed.
By disallowing reconsideration of the VA's decision, Section 7, Rule XIX of DO 40-03 and
Section 7 of the 2005 Procedural Guidelines went directly against the legislative intent behind
Article 262-A of the Labor Code.

Article 275 (formerly 262) – Jurisdiction Over Other Labor Disputes

The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall also
hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks.

The Voluntary Arbitrator Or Panel Of Voluntary Arbitrators Lacks Jurisdiction To Hear And
Decide Tax Matters. (Its jurisdiction is confined to the labor disputes.)

Article 276 (formerly 262 - A) – Procedures

What Should Now Be The Period To Be Followed In Appealing The Decisions Or Awards Of
The Voluntary Arbitrators Or Panel Of Arbitrators?

Rule 43 of the Rules of Court requires exhaustion of available remedies as a condition precedent
to a petition under that Rule.

Article 277 (formerly 262 - B) Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee

Article 278 (formerly 263) – Strikes, Picketing and Lockouts

The Right To Strike Is Guaranteed By The Constitution; Limitations

Picketing And Strike Distinguished

To strike is to withhold or to stop work by the concerted action of employees as a result of an

industrial or labor dispute.

A picket simply means to march to and from the employer's premises, usually accompanied by
the display of placards and other signs making known the facts involved in a labor dispute.

Last Minute Lecture in Labor Law – October 31, 2022

Notice Of Strike Must Be Accompanied By Union’s Proposal And Management’s Counter-
Proposal And Request For Conference To Settle Differences; Exception

The Implementing Rules use the words "as far as practicable". Attaching the counter-
proposal of the company to the notice of strike of the union was not practicable as it is absurd
to expect the union to produce the company's counter-proposal which it did not have. One
cannot give what one does not have.

Article 278(g) Grants The Secretary Of Labor And Employment The Power To Assume
Jurisdiction Over The Dispute And Decide Or To Certify The Same To The National Labor
Relations Commission For Compulsory Arbitration

The No Strike No Lockout Provision Of The CBA Applies Only To Economic Strike

Government Employees Are Prohibited From Staging A Strike

The Police Power Of The State To Regulate The Employees’ Right To Strike Is Exercised By
The Secretary Of Labor

Prior Notice In Assumption Of Jurisdiction Is Not Necessary

A Return-To-Work Order Is A Statutory Part And Parcel Of Assumption Of Jurisdiction

Striking Workers Not Entitled To Salaries During The Strike; Exception

Jurisprudential law recognizes several exceptions to the “no backwages rule,” to wit: when the
employees were illegally locked to thus compel them to stage a strike; when the employer is
guilty of the grossest form of ULP; when the employer committed discrimination in the rehiring
of strikers refusing to readmit those against whom there were pending criminal cases while
admitting nonstrikers who were also criminally charged in court; or when the workers who
staged a voluntary ULP strike offered to return to work unconditionally but the employer
refused to reinstate them.

The Decision Of The Secretary Of Labor Can Be Reviewed By The Court Of Appeals Via
Petition For Certiorari Under Rule 65 Of The Rules Of Court

Article 279 (formerly 264) – Prohibited Activities

Article 280 (formerly 265) – Improved Offer Balloting

In an effort to settle a strike, the Department of Labor and Employment shall conduct a
referendum by secret balloting on the improved offer of the employer on or before the 30th day
of the strike.

Last Minute Lecture in Labor Law – October 31, 2022

In case of a lockout, the Department of Labor and Employment shall also conduct a referendum
by secret balloting on the reduced offer of the union on or before the 30th day of the lockout.

Article 281 (formerly 266) – Requirement for Arrest and Detention

Article 282 (formerly 267) – Assistance by the Department of Labor and Employment

Article 283 (formerly 268) – Assistance by the Institute of Labor and Manpower Studies

Article 284 (formerly 269) – Prohibition Against Aliens; Exceptions

Article 285 (formerly 270) – Regulation of Foreign Assistance

Article 286 (formerly 271) – Applicability to Farm Tenants and Rural Workers

Article 287 (formerly 272) – Penalties

Article 288 (formerly 273) – Study of Labor-Management Relations

Article 289 (formerly 274) – Visitorial Power

Article 290 (formerly 275) – Tripartism and Tripartite Conferences and Tripartite Industrial
Peace Councils

Article 291 (formerly 276) – Government Employees

The terms and conditions of employment of all government employees, including employees of
government-owned and controlled corporations, shall be governed by the Civil Service Law,
rules and regulations. Their salaries shall be standardized by the National Assembly as provided
for in the New Constitution. However, there shall be no reduction of existing wages, benefits and
other terms and conditions of employment being enjoyed by them at the time of the adoption of
this Code.

Article 292 (formerly 277) – Miscellaneous Provisions

Clearly, in order that a particular act may not be impugned as violative of the due process
clause, there must be compliance with both substantive and the procedural requirements thereof.
Substantive due process refers to the intrinsic validity of a law that interferes with the rights of a
person to his property.

Last Minute Lecture in Labor Law – October 31, 2022

The Employers Are Allowed To Place Their Employees Under Preventive Suspension During
Investigation

Due Process v. Management Prerogatives

Due Process Requirement On Termination Grounded Upon Just And Valid Causes

King of Kings Transport, Inc. v. Mamac

Due Process Requirement On Termination Grounded Upon Authorized Causes

(Jaka v. Pacot)

WENPHIL Corporation v. National Labor Relations Commission (NLRC) and Roberto Mallari,
G.R. No. 80587, February 8, 1989

Ruben Serrano v. National Labor Relations Commission (NLRC) and ISETAN Department
Store, G.R. No. 117040, May 4, 2000

Jenny M. Agabon and Virgilio C. Agabon v. National Labor Relations Commission (NLRC) and
Vicente Angeles, G.R. No. 158693, November 17, 2004

Article 294 (formerly 279) – Security of Tenure

Separation pay is intended to provide the employee money during the period in which he will be
looking for another employment. Backwages, on the other hand, are granted on grounds of
equity for earnings lost by an employee due to his illegal dismissal.

Legal And Jurisprudential Basis For

Computation Of The Award Of Backwages

Verily, the Court now ordains the uniform rule that the award of backwages and/or separation
pay due to illegally dismissed employees shall include all salary increases and benefits granted
under the law and other government issuances, Collective Bargaining Agreements, employment
contracts, established company policies and practices, and analogous sources which the
employees would have been entitled to had they not been illegally dismissed. On the other hand,
salary increases and other benefits which are contingent or dependent on variables such as an
employee's merit increase based on performance or longevity or the company's financial status
shall not be included in the award.

An Overseas Contract Worker Is Entitled To Salary Equivalent To The Unexpired Portion Of

The Contract

Sea Based Overseas Contract Workers Are Not Regular Employees And Therefore Not Entitled
To Reinstatement And Full Backwages

Last Minute Lecture in Labor Law – October 31, 2022

Payroll Reinstatement Is The Option Only Available To The Employer

The Compassionate Justice; Good Faith Of The Employer Limits The Employee’s Backwages
To One Year

Financial Assistance Maybe Allowed Under Exceptional Circumstance

Where The Dismissal Was Without Just Or Authorized Cause And There Was No Due Process

Compassionate Justice When Dismissal Was Too Harsh

Distinction Between Reinstatement And Rehire

The Supreme Court clarified in its previous rulings how an employee who returns to work for
the same employer is considered a new hire if prior employment was validly terminated, either
voluntarily or under any of the just and authorized causes provided in the Labor Code.
Therefore, the reckoning point of the length of service, for purposes of security of tenure, begins
on the date the employee was re-hired.

Article 295 (formerly 280) – Regular and Casual Employment

Under the four-fold test, the employer-employee relationship is determined if the following are
present: a) the selection and engagement of the employee; b) the payment of wages; c) the power
of dismissal; and d) the power to control the employee's conduct, or the so-called control test.
Here, the control test is the most important and crucial among the four tests. However, in cases
where there is no written agreement to base the relationship on and where the various tasks
performed by the worker bring complexity to the relationship with the employer, the better
approach would therefore be to adopt a two-tiered test involving: a) the putative employer's
power to control the employee with respect to the means and methods by which the work is to be
accomplished; and b) the underlying economic realities of the activity or relationship.

In applying the second tier, the determination of the relationship between employer and
employee depends upon the circumstances of the whole economic activity (economic reality or
multi-factor test), such as: a) the extent to which the services performed are an integral part of
the employer's business; b) the extent of the worker's investment in equipment and facilities; c)
the nature and degree of control exercised by the employer; d) the worker's opportunity for profit
and loss; e) the amount of initiative, skill, judgment or foresight required for the success of the
claimed independent enterprise; f) the permanency and duration of the relationship between the
worker and the employer; and g) the degree of dependency of the worker upon the employer for
his continued employment in that line of business. Under all of these tests, the burden to prove
by substantial evidence all of the elements or factors is incumbent on the employee for he or she
is the one claiming the existence of an employment relationship.

Last Minute Lecture in Labor Law – October 31, 2022

Brent School, Inc. v. Zamora

The Doctrine Of Apparent Authority

Citystate Savings Bank v. Teresita Tobias
G.R. No. 227990, March 7, 2018

The power to affect the legal relations of another person by transactions with third
persons arising from the other's manifestations to such third person such that the liability
of the principal for the acts and contracts of his agent extends to those which are within
the apparent scope of the authority conferred on him, although no actual authority to do
such acts or to make such contracts has been conferred.

Article 296 (formerly 281) – Probationary Employment

Rehire

Hence, the services of a probationary employee may be terminated for any of the following: (1)
a just cause; (2) an authorized cause; and (3) when he or she fails to qualify as a regular
employee in accordance with the reasonable standards prescribed by the employer. In other
words, the employer is mandated to comply with two requirements when dealing with a
probationary employee, viz.: (1) the employer must communicate the regularization standards to
the probationary employee; and (2) the employer must make such communication at the time of
the probationary employee's engagement. If the employer fails to abide by any of the
aforementioned obligations, the employee is deemed as a regular, and not a probationary
employee.

For the valid extension of the probationary period, it is required that (1) there should be
evaluation of the performance of the probationary employee upon the expiration of the period of
probationary employment; (2) the extension of the probationary period should be made before
the lapse of the original period agreed by the parties. There is no more period to be extended if
the probationary period had already lapsed and the probationary employee has already become
regular.

Probationary Period For Private School Teacher

the probationary period for academic personnel shall not be more than three (3) consecutive
years of satisfactory service for those in the elementary and secondary levels, six (6)
consecutive regular semesters of satisfactory service for those in the tertiary level, and nine (9)
consecutive trimesters of satisfactory service for those in the tertiary level where collegiate
courses are offered on the trimester basis.

Simply put, the services of a probationary employee may be terminated for any of the
following: (1) a just cause; (2) an authorized cause; and (3) failure to qualify as a regular

Last Minute Lecture in Labor Law – October 31, 2022

employee in accordance with the reasonable standards prescribed by the employer. Skyway O &
M Corporation v. Wilfredo M. Reinante, G.R. No. 222233, August 28, 2019

Article 297 (formerly 282) – Termination by Employer

An employer may terminate an employment for any of the following causes:

(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or
representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;

d. Commission of a crime or offense by the employee against the person of his employer or any immediate
member of his family or his duly authorized representatives; and

(e) Other causes analogous to the foregoing.

Serious Misconduct

Misconduct is defined as 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 in judgment."

"Insubordination" requires that the orders, regulations or instructions of the employer or

representative must be (a) reasonable and lawful; (b) sufficiently known to the employee; (c) in
connection with the duties which the employee has been engaged to discharge; and (d) the
employee's assailed conduct must have been willful or intentional, the willfulness being
characterized by a wrongful and perverse attitude.

Animated Discussion Between The Subordinate And Superior Or Co-Employee Does Not
Constitute Fighting; Fighting As Ground For Dismissal

Gross Negligence

Gross neglect of duty denotes a flagrant and culpable refusal or unwillingness of a person to
perform a duty. It refers to negligence characterized by the want of even slight care, acting or
omitting to act in a situation where there is a duty to act, not inadvertently, but willfully and
intentionally, with a conscious indifference to consequences insofar as other persons may be
affected. Furthermore, to warrant removal from service, the negligence should be gross and
habitual. Thus, a single or isolated act of negligence does not constitute a just cause for the
dismissal of an employee.

Last Minute Lecture in Labor Law – October 31, 2022

Abandonment Of Work Is Another Form Of Gross
Neglect

The Remedy When There Is No Abandonment

And Absence Of Dismissal, Each Party Should
Bear Its Losses

Article 297(c) – Fraud or willful breach of trust

Notably, in holding a position requiring full trust and confidence, "gave up some of the rigid
guarantees available to ordinary employees."

The law contemplates two (2) classes of positions of trust. The first class consists of managerial
employees. They are as those who are vested with the power or prerogative to lay down
management policies and to hire, transfer, suspend, layoff, recall, discharge, assign or discipline
employees or effectively recommend such managerial actions. The second class consists of
cashiers, auditors, property custodians, etc. who, in the normal and routine exercise of their
functions, regularly handle significant amounts of money or property.

Article 298 – Closure of Establishment and Reduction of Personnel

Article 299 – Disease as Ground for Termination

Article 300 (formerly 285) – Termination by Employee

Resignation V. Constructive Dismissal

The pronouncement of the Honorable Supreme Court:

The Court emphasizes that the constitutional policy to provide full protection to labor is
not meant to be a sword to oppress employers. Indeed, the commitment to the cause of
labor does not prevent us from sustaining the employer when it is right.

Constructive dismissal is defined as quitting or cessation of work because continued

employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank
or a diminution of pay and other benefits. It exists if an act of clear discrimination, insensibility,
or disdain by an employer becomes so unbearable on the part of the employee that it could
foreclose any choice by him except to forego his continued employment. There is involuntary
resignation due to the harsh, hostile, and unfavorable conditions set by the employer. The test of
constructive dismissal is whether a reasonable person in the employee's position would have felt
compelled to give up his employment/position under the circumstances.

Resignation, on the other hand, is the voluntary act of an employee who is in a situation where
one believes that personal reasons cannot be sacrificed in favor of the exigency of the service,

Last Minute Lecture in Labor Law – October 31, 2022

and one has no other choice but to disassociate oneself from employment. It is a formal
pronouncement or relinquishment of an office, with the intention of relinquishing the office
accompanied by the act of relinquishmnent. As the intent to relinquish must concur with the
overt act of relinquishment, the acts of the employee before and after the alleged resignation
must be considered in determining whether he or she, in fact, intended to sever his or her
employment.

In one case, the Court enumerated the requisites for intimidation to vitiate one's consent,
including: (1) that the intimidation caused the consent to be given; (2) that the threatened act be
unjust or unlawful; (3) that the threat be real or serious, there being evident disproportion
between the evil and the resistance which all men can offer, leading to the choice of doing the
act which is forced on the person to do as the lesser evil; and (4) that it produces a well-
grounded fear from the fact that the person from whom it comes has the necessary means or
ability to inflict the threatened injury to his person or property.

Acts Of Disdain And Hostile Behavior Such As

Demotion, Uttering Insulting Words, Asking For
Resignation, And Apathetic Conduct Towards An
Employee Constitute Constructive Illegal
Dismissal.

Good faith in the transfer of employees

Article 301 – When Employment Not Deemed Terminated

one (1) month from the resumption of operations of his employer or from his relief from the
military or civic duty.

Article 302 – Retirement

Underground mining employee 50/60

Retail, service and agricultural establishments or operations employing not more than ten
(10) employees or workers are exempted from the coverage of this provision.

A Worker Who Is Paid On Commission Basis Is

Entitled To Retirement Benefits

Republic Act No. 7641 which was enacted on December 9, 1992 amended Article 287 of the
Labor Code by providing for retirement pay to qualified private sector employees in the absence
of any retirement plan in the establishment. Even a bus conductor who is paid on commission
basis falls within the coverage of R.A. 7641 and its implementing rules.

Last Minute Lecture in Labor Law – October 31, 2022

Distinction Between Reinstatement And Rehire
For Purposes Of Computing Retirement Benefits

Article 303 (formerly 288) – Penalties

Article 304 (formerly 289) – Who are Liable When Committed by Other Than Natural Person

Article 305 (formerly 290) – Offenses

Article 306 (formerly 291) – Money Claims

Actions for damages due to illegal dismissal are likewise actions "upon an injury to the rights of
the plaintiff." Article 1146 of the Civil Code of the Philippines, therefore, governs these actions.
George A. Arriola v. Piipino Star Ngayon, Inc., G.R. No. 175689, August 13, 2014

Article 307 (formerly 292) – Institution of Money Claims

Articles 308 (formerly 293) – Application of Law Enacted Prior to this Code

Article 309 (formerly 294) – Secretary of Labor to Initiate Integration of Maternity Leave
Benefits

Article 310 (formerly 295) – Funding of the Overseas Employment Development Board and
National Seamen's Board

Article 311 (formerly 296) – Termination of the Workmen's Compensation Program

Article 312 (formerly 297) – Continuation of Insurance Policies and Indemnity Bonds

Article 313 (formerly 298) – Abolition of the Court of Industrial Relations and the National
Labor Relations Commission

Article 314 (formerly 299) – Disposition of Pending Cases

Article 315 (formerly 300) – Personnel Whose Services are Terminated

Article 316 (formerly 301) – Separability Provisions

Article 317 (formerly 302) – Repealing Clause

Last Minute Lecture in Labor Law – October 31, 2022