LABOR LAW NOTES

1. EXPLAIN THE FOUR-FOLD TEST IN DETERMINING EMPLOYER-EMPLOYEE

RELATIONSHIP.
The four-fold test is the established standard for determining the existence of an
employer-employee relationship which pertains to the selection and engagement
of the employee, payment of wages, the power of dismissal, and the power
of control over the employee’s conduct.
a. Selection and engagement refers to the "choice" of the employer to hire
the services of a worker and his commitment to keep the latter as his
employee.
b. "Payment" refers to the compensation that an employee gets for work
performed.
c. “Power of dismissal” refers to a component of the employer’s power to
move or organize employees. It is a management prerogative whom to
hire and/or fire. “Dismissal” is an act of labor force movement done by
the employer that results in the termination of employee. A worker
dismissed from employment is still an employee under the law until and
unless his dismissal is declared valid and final by proper authority.
d. “Power of control” (the most important test) – refers to the employer’s
power to regulate how the work is done.
The power of control refers to the existence of the power and not necessarily to
the actual exercise thereof. It is not essential for the employer to actually supervise
the performance of duties of the employee; it is enough that the employer has the
right to wield that power.
2. WHAT ARE THE VALID CAUSES IN TERMINATING AN EMPLOYEE?
The valid causes in terminating an employee are just causes and authorized
causes. According to Article 297 of the Philippine Labor Code, just causes of
termination refer to (1) serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or representative in connection with
his work, (2) gross and habitual neglect by the employee of his (duty) duties,
(3) fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative, (4) commission of a crime or
offense by the employee against the person of his employer or any immediate
member of his family or his duly authorize representative, and (5) other causes
analogous to the foregoing. On the other hand, Articles 298 and 299 state that
authorized causes of termination refer to (1) installation of labor-saving devices,
(2) redundancy, (3) retrenchment to prevent losses, (4) closing or cessation
of operation of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of the Title, and (5) suffering from any
disease (or illness) and whose continued employment is prohibited by law or is
prejudicial to his health as well as to the health of his co-employees.
3. EXPLAIN THE SUBSTANTIVE DUE PROCESS IN TERMINATING AN
EMPLOYEE.
Substantive due process means that the dismissal must be for any of the:
(1) just causes provided under Article 297 of the Labor Code or the company
rules and regulations promulgated by the employer; or (2) authorized causes
under Article 298 and 299 thereof. For termination, just causes include serious
misconduct, willful disobedience, gross and habitual neglect of duty, fraud, loss of
trust and confidence, commission of a crime, and analogous causes. For
separation, authorized causes include installation of labor-saving devices,
redundancy, retrenchment, closing of a business, and disease. Essentially,
substantive due process in terminating an employee refers to the causes or
grounds.

4. EXPLAIN THE PROCEDURAL DUE PROCESS IN TERMINATING AN

EMPLOYEE.

Procedural due process means that the employee must be accorded due
process required under Article 292(b) of the Labor Code, the elements of
which are the twin-notice rule and the employee’s opportunity to be heard
and to defend himself.” In a termination for just cause, due process involves the
two-notice rule:

a) A notice of intent to dismiss specifying the ground for termination, and

giving said employee reasonable opportunity within which to explain his or
her side;

b) A hearing or conference where the employee is given opportunity to

respond to the charge, present evidence or rebut the evidence presented
against him or her;

c) A notice of dismissal indicating that upon due consideration of all the

circumstances, grounds have been established to justify termination.

In a termination for an authorized cause, due process means a written notice of

dismissal to the employee specifying the grounds at least 30 days before the date
of termination. A copy of the notice shall also be furnished the Regional Office of
the Department of Labor and Employment (DOLE) where the employer is located.
Essentially, procedural due process in terminating an employee refers to the
steps or procedures.
• Employer (capital) & Employee (labor) – not on equal footing
o That’s why social justice, labor laws, and social legislation exist – to
balance the conflicting interests between labor and capital
• Employment = property rights
o Employment undergoes due process
• Social Justice (Bernas) under the Constitution is principally the embodiment
of the people that those who have less in life should have more in law
• Labor Law is under Civil Code
• Labor law – branch of civil law, book IV of Obligation & Contracts (Oblicon), title
VIII, lease, chapter III, work and labor
• The principal law governing the Labor Code is PD 442, as amended
• PD 442 = Labor Code of the Philippines
o Signed on May 1, 1974
o Took effect on November 1, 1974
• Labor Legislation – laws that deal with the legal rights of people and the
organizations that they work for
o Labor Standards – prescribes terms and conditions of employment like
Book in Book IV, Title I and Book VI of the Labor Code.
o These Books of the Labor Code deal with working conditions, wages,
working conditions for women, minors, househelpers and
homeworkers, medical and dental services, occupational health and
safety, termination and retirement.
o Labor Relations - regulates the relations between employers and workers
like Book V of the Labor Code which deals with labor organizations,
collective bargaining, unfair labor practices and strikes and lockouts.
• Social Justice (in the case of Calalang)
o Social justice is "neither communism, nor despotism, nor atomism,
nor anarchy," but the humanization of laws and the equalization of
social and economic forces by the State so that justice in its rational
and objectively secular conception may at least be approximated.
o Article 3, Sec. 1 of the 1987 Constitution
Section 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.
o Fundamental principles of labor
• G.R. No. 10677 – employment is no longer just an ordinary human activity.
For most families the main source of their livelihood, employment has now
leveled off with property rights which no one may be deprived of without due
process of law.
 • Employment – property right, we have to go through due process to achieve
this
• Article 1700 of the New Civil Code – public policy of social justice
Article 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.
• Article 4 will apply if there are doubts in evidence
o It does not only apply in the implementation and interpretation but also in
doubts in evidence
o It also applies to evidence (doubt of evidence)
o If there is doubt, then it shall be resolved in favor of the labor
• Department of Labor and Employment (DOLE)
o Lead agency in enforcing labor laws
o Headed by a secretary appointed by the President
o Maker of rules implementing the labor code
o Makes department orders
o Has a rule-making power
• NLRC is a branch of DOLE
• If the government corporation is incorporated with the corporation code, Labor
Code is applicable
• If the government corporation is not incorporated with the corporation code but
under special law (w/ original charters), Labor Code is not applicable
• Article 40 of the Labor Code
Article 40. Employment permit of non-resident aliens. Any alien seeking
admission to the Philippines for employment purposes and any domestic or
foreign employer who desires to engage an alien for employment in the
Philippines shall obtain an employment permit from the Department of
Labor.

The employment permit may be issued to a non -resident alien or to the

applicant employer after a determination of the non-availability of a
person in the Philippines who is COMPETENT, ABLE and WILLING at
the time of application to perform the services for which the alien is desired.

For an enterprise registered in preferred areas of investments, said

employment permit may be issued upon recommendation of the
government agency charged with the supervision of said registered
enterprise.
• Department Order No. 75-06
o Exemption
o The following categories of foreign nationals are exempt from securing an
employment permit:
▪ All members of the diplomatic foreign service and foreign
government officials accredited by and with reciprocity arrangement
with the Philippine government;
▪ Officers and staff of international organizations of which the
Philippine government is a member, and their legitimate spouses
desiring to work in the Philippines;
▪ Foreign nationals elected as members of the Governing Board who
do not occupy any other position, but have only voting rights in the
corporation;
▪ All foreign nationals granted exemption by law;
▪ Owners and representatives of foreign principals whose companies
are accredited by the Philippine Overseas Employment
Administration (POEA) who come to the Philippines for a limited
period and solely for the purpose of interviewing Filipino applicants
for employment abroad;
▪ Foreign nationals who come to the Philippines to teach, present
and/or conduct research studies in universities and colleges as
visiting, exchange or adjunct professors under formal agreements
between the universities or colleges in the Philippines and foreign
universities or colleges; or between the Philippine government and
foreign government; provided that the exemption is on a reciprocal
basis; and
▪ Resident foreign nationals

• Article 41
Article 41. Prohibition against transfer of employment.

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

Any non-resident alien who shall take up employment in violation of the

provision of this Title and its implementing rules and regulations shall be
punished in accordance with the provisions of Articles 289 and 290 of the
Labor Code.
 In addition, the alien worker shall be subject to deportation after service of
his sentence.

• Alien who has been issued a permit cannot transfer w/o

• If alien does so, they may be liable for violation of art. 289 - 304, and 290 -
305
• Article 58
o Article 58. Definition of Terms. As used in this Title:

"Apprenticeship" means practical training on the job supplemented by

related theoretical instruction.

An "apprentice" is a worker who is covered by a written apprenticeship

agreement with an individual employer or any of the entities recognized
under this Chapter.

An "apprenticeable occupation" means any trade, form of employment or

occupation which requires more than three (3) months of practical training
on the job supplemented by related theoretical instruction .

"Apprenticeship agreement" is an employment contract wherein the

employer binds himself to train the apprentice and the apprentice in turn
accepts the terms of training.