I.
FUNDAMENTAL PRINCIPLES AND If the fact of dismissal is disputed, it is the
CONCEPTS
Burden of Proof and Quantum of
Evidence
Burden of Proof
GR: BURDEN OF PROOF IS ALWAYS UPON
EMPLOYER to show validity of its exercise
of management prerogatives, especially as
regards termination of employment.
Exception:
When Burden of Proof is upon Employee:
1. Fact of hiring.
2. Fact of firing/dismissal.
In determining the Ee’s entitlement to
monetary claims, the burden of proof is
shifted from the Er or the Ee, depending
on the monetary claim sought.
In an illegal dismissal case, the Ee has the
burden of proof to first show that he was
indeed dismissed from employment. Before
the Er must bear the burden of proving
that the dismissal was legal, the Ee must
first establish by substantial evidence the
fact of his dismissal from service.
Italkarat 18, Inc. vs Gerasmio, G.R.
No. 221411, Sept 28, 2020
J. Hernando Case
In illegal dismissal cases, the burden of
proof is on the employer in providing the
validity of dismissal. However, the fact of
dismissal, if disputed, must be duly proven
by the complaint.
complainant who should substantiate his claim for
dismissal and the one burdened with the
responsibility of proving that he was dismissed from
employment, whether actually or constructively.
Quantum of Evidence
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., G.R. No. 206390, 30
Jan. 2017)
JR Hauling Services v. Solamo, G.R. No.
214294, Sept 30, 2020
J. Hernando Case - Definition of Substantial
Evidence
The quantum of proof required is merely substantial
evidence — which only entails evidence to support a
conclusion, "even if other minds, equally reasonable,
might conceivably opine otherwise."Accordingly,
requiring a quantum of proof that is over and above
substantial evidence is contrary to law.
II. PRE-EMPLOYMENT
Recruitment and Placement
Recruitment and placement consists of any act of
canvassing, enlisting, transporting, contracting,
hiring, utilizing, or procuring workers and includes
contract services, referring, or advertising, promising
for employment abroad, whether for profit or not
when undertaken by a non-licensee or non-holder of
authority contemplated in Article 13 (f) of the Labor
Code (Labor Code, Art. 13 (b); Section 6, R.A. No.
8042 as amended by R. A. No. 10022).
Q: When is illegal recruitment considered as
economic sabotage?
1

A: ILLEGAL RECRUITMENT AS ECONOMIC
SABOTAGE, if any of the qualifying
circumstances exist or when committed:
1. BY A SYNDICATE - If it is carried out
by a group of 3 or more persons
conspiring and/or confederating with
one another;
2. IN LARGE SCALE - If it is committed
against 3 or more persons
individually or as a group.
Theory of Imputed Knowledge
The act of the foreign principal cannot be
imputed or ascribed to the local agency. But
the knowledge of the agent is the
knowledge of the principal although not
communicated to the latter.
Illegal Recruitment vs Estafa
People v. Manalang, G.R. No. 198015,
January 20, 2021
J. Hernando Case
Jurisprudence is settled that a person, for
the same acts, may be convicted
separately for Illegal Recruitment under RA
8042 (or the Labor Code), and Estafa
under Article 315(2)(a) of the RPC. In
estafa, damage is essential, but not in the
crime of illegal recruitment. As to the
latter, it is the lack of the necessary license
or authority, but not the fact of payment
that renders the recruitment activity as
unlawful.
Employer-Employee Relationship
Four tests to determine the existence of an
employer-employee relationship
1. Selection and hiring;
2. payment of Wages;
3. power of Dismissal;
4. Control test.
Parayday v. Shogun Shipping Co., Inc., G.R.
No. 204555, July 6, 2020
J. Hernando Case
Control test: An employer-employee relationship
exists "where the person for whom the services are
performed reserves a right to control not only the
end to be achieved but also the means to be used in
reaching such end." xxx An employer-employee
relationship may cover peripheral or core activities of
the employer's business.
In Dy Keh Beng v. International Labor and Marine
Union of the Philippines, this Court held that an
employer's power of control, particularly over
personnel working under the employer, is deemed
inferred, more so when said personnel are working
at the employer's establishment.
Labor-Only Contracting
It is a prohibited act, an arrangement where the
contractor or subcontractor merely recruits, supplies
or places workers to perform a job, work or service
for a principal.
Elements
1. The contractor does not have substantial
capital or the contractor does not have
investments in the form of tools, equipment,
machineries, supervision and work premises,
and the contractor’s employees recruited
perform activities which are directly related
to the main business of the principal; or
2. The contractor does not exercise control over
the performance of the work of the
employees.
2
Legitimate Job Contracting
There is legitimate job contracting when:
1. The contractor is engaged in a
distinct and independent business
and undertakes to perform the job
under its own responsibility and
according to its own manner and
method;
2. The contractor has substantial
capital to carry out the job
contracted for or investment in the
form of tools, equipment, machinery
and supervision
3. In performing the work, the
contractor is free from the control
and/or direction of the principal on
all matters related to the
performance of the work except as
to the result thereof; and
4. The Service Agreement ensures
compliance with all the rights and
benefits of the employees of the
contractor under labor laws.
Substantial capital
P5 million paid-up capital of for
corporations, partnerships and cooperatives
P5 million net worth for single
proprietorship
III. EMPLOYMENT PROPER
Management Prerogatives
Transfer of Employees
A transfer is a movement from one position
to another of equivalent rank, level or
salary, without break in the service.
Bona Fide Occupational Qualifications
Note: Reasonable Business Necessity
When the employer can prove that the reasonable
demands of the business require a distinction based
on a qualification, and there is no better available or
acceptable policy which would better accomplish the
business purpose, then this is a bona fide
occupational qualification. (Star Paper Corp. v.
Simbol, G.R. No. 164774, [April 12, 2006], 521 PHIL
364-379)
Bonus
Mega Magazine Publications, Inc. v. Margaret
A. Defensor; G.R. No. 162021, 16 June 2014
The grant of a bonus or special incentive, being a
management prerogative, is not a demandable and
enforceable obligation, except when the bonus or
special incentive is made part of the wage, salary or
compensation of the employee, or is promised by the
employer and expressly agreed upon by the parties.
By its very definition, bonus is a gratuity or act of
liberality of the giver, and cannot be considered part
of an employee’s wages if it is paid only when profits
are realized or a certain amount of productivity is
achieved. If the desired goal of production or actual
work is not accomplished, the bonus does not
accrue.
Labor Standards
Conditions of Employment
Holiday Pay
The employee is entitled to the payment of
his regular daily basic wage (100%) during
said holidays, even if the worker did not
report for work on said days; provided that
he was present or was on leave of absence
with pay on the work day immediately
preceding the holiday. If the employee was
3
suffered to work during the said holidays,
they will be entitled to payment of holiday
premium of 200% of his basic wage (100%
of basic wage plus 100%).
Holiday pay does not apply to employees of
retail or service establishments regularly
employing less than ten (10) workers (Sec.
1, Rule IV, Book III, IRR, Labor Code).
Double Holiday Pay Rule (e.g. Araw ng
Kagitingan and Good Friday falling on the
same day)
EE would get paid 200% of the basic pay if
said holiday is unworked 300% if he worked
on 2 regular holidays falling on the same
day (Manual for Labor Standards, 2004).
If the employee reported for work on a
double holiday which is also his rest day, he
is entitled to an additional 30% based on
the rate of 300% for that day, or a total of
390%.
Successive Holiday Pay Rule (e.g.
Maundy Thursday and Good Friday)
An employee is entitled to two (2)
successive regular holidays, like Maundy
Thursday and Good Friday if he works or is
on leave of absence with pay on the day
immediately preceding the first holiday.
Special Holiday Rule - “No work, no pay”
unless otherwise provided in company
policy or CBA or supported by company
practice.
Note: Non-muslims are entitled to holiday
pay during Muslim holidays.
Non-Diminution of Benefits
The rule on non-diminution of benefits
applies when:
1) The practice is consistent and
deliberate
2) The diminution or discontinuance is
done unilaterally by the employer;
3) The grant of the benefit is founded on a
policy or has ripened into a practice over a
long period;
4) The practice is not due to error in the
construction or application of a doubtful or
difficult question of law.
GENERAL RULE: Benefits being given to employees
shall not be taken back or reduced unilaterally by the
employer because the benefit has become part of
the employment contract, written or unwritten
EXCEPTIONS:
1. If the employee also consents to the
deduction.
2. If the deduction is made to correct an error.
3. Paid by mistake of law
4. When the CBA has expired and there is an
on-going negotiation. Note: auto-renewal
clause: as long as there is no new CBA, the
former CBA will still subsist
EXCEPTION TO THE EXCEPTION: If the error is
left uncorrected for a reasonable period of time, it
ripens into a company policy and employees can
demand for it as a matter of right.
Wages
Distinction between wage and salary
The term wage is used to characterize the
compensation paid for manual skilled or unskilled
labor. On the other hand, salary is used to describe
the compensation for higher or superior level of
employment.
4
Payment of Wages
1. Wages shall be paid in cash, legal
tender at or near the place of work
2. Payment may be made through a
bank upon written petition of
majority of the workers in
establishments with 25 or more
employees and within one kilometer
radius to a bank
3. Payment shall be made directly to
the employees
4. Wages shall be given not less than
once every two (2) weeks or twice
within a month at intervals not
exceeding 16 days
Legal Prohibitions on Wages
1. Non-interference with the disposal
of wages. [Labor Code, Art. 112]
2. Unauthorized Deductions, except:
a. In cases where the worker is
insured with his consent by the employer,
and the deduction is to recompense the
emplover for the amount paid by him as
premium on the insurance;
b. For union dues, in cases where the
right of the worker or his union to check-
off has been recognized by the employer or
authorized in writing by the individual
worker concerned and
c. In cases where the employer is
authorized by law Or regulations issued by
the Secretary of Labor and Employment.
[Labor Code, Art. 113 ]
3. Deposits for loss or damage where
such deposits are not a established industry
practice. [Labor Code, Art. 114 and Art.
115]
4. Withholding of wages or inducing to
give up any part of his wages by force,
stealth, intimidation, threat or by any other
means whatsoever without the worker's
consent. [Labor Code, Art. 116)
5. Deduction as consideration of a promise of
employment or retention in employment.
[Labor Code, Art. 117]
Facilities and Supplements
Mabeza v. NLRC, G.R. No. 118506, Apr 18,
1997
The requirements for deducting amount of facilities
are: (i) Proof must be shown that such facilities are
customarily furnished by the trade; (ii) The provision
of deductible facilities must be voluntarily accepted in
writing by the employee; and (iii) The facilities must
be charged at fair and reasonable value.
Mayon Hotel & Restaurant v. Adana, 2005
Foods or other convenience provided by the
employer are deemed supplements if they are
granted for the convenience of the employer. The
criterion in making a distinction between a
supplement and a facility does not lie in the kind but
in its purpose
Wage Orders
Fixing the minimum wage is a power that inherently
belongs to Congress. However, Congress has
delegated the said power to the Regional Tripartite
Wages and Productivity Board (RTWPB).
Minimum wage is promulgated through wage orders
which the RTWPB issues either: (a) motu proprio,
whenever conditions in the region, province or
industry so warrant; or (b) by virtue of a petition
filed by any interested party.
Wage Orders cannot be disturbed for 12 months.
Sanctions for Failure to Comply with the Prescribed
Minimum Wage:
1) Double Indemnity;
5
2) Criminal liability, i.e., fine ranging Conciliation and Mediation Board (NCMB)
from 25,000.00 to P100,000.00 or and if it remains unresolved after ten (10)
imprisonment ranging from two years to days of conciliation, it shall be referred to
four years, or both without the benefit of the NLRC for arbitration.
probation.
Any issue involving wage distortion shall not be a
Wage Distortion ground for a strike/lockout (Ilaw at Buklod ng
Refers to a situation where an increase in Manggagawa vs. NLRC, 1991)
prescribed wage rates results in the
elimination or severe contraction of Examination of alleged salary distortion is limited to
intentional quantitative differences in wage jobs or positions in the same employer in the same
or salary rates between and among region; that is, the comparison of salaries has to be
employee groups in an establishment as to intra-region, not inter-region. (Prubankers
effectively obliterate the distinctions Association v. Prudential Bank & Trust Co., 1999).
embodied in such wage structure based on
Leaves
skills, length of service or other logical
Q: Who are covered by the Service Incentive Leave
bases of differentiation.
(SIL)?
Elements
A: Every employee who has rendered at least 1 year
1. Existing hierarchy of positions with
of service shall be entitled to a yearly SIL of 5 days
corresponding salary rates based on
with рау.
factors such as skill, experience, length of
service etc;
EXCEPTIONS:
2. Significant change or increase in
1. Government employees
the salary rate of a lower pay class without
2. Persons in the personal service of another
a corresponding increase in the salary rate
3. Managerial employees
of the next higher class
4. Officers or members of a managerial staff
5. Field personnel
Correction of Wage Distortion
6. Those enjoying vacation leave with pay of at
1. For organized establishments:
least 5 days; and
Employer and union shall negotiate to
7. Those employed in establishments regularly
correct the distortion. Any dispute arising
employing less than 10 employees. [Art. 95,
therefrom should be resolved through
Labor Code; Sec. 2, Rule V, Book III of the
grievance machinery procedure under the
Omnibus Rules]
CBA and if the dispute remains unresolved,
it shall be resolved through voluntary
Special Groups of Employees
arbitration.
Q: An exclusive school for girls, run by a religious
2. For unorganized
order, has a policy of not employing unwed mothers,
establishments: The employer and
women with live-in partners, and lesbians. Is the
workers shall endeavor to correct the
policy violative of any provision of the Labor Code on
distortion. Any dispute arising therefrom
employment of women?
shall be settled through the National

6

A: No, it is not violative of the Labor Code.
Art. 133 prohibits discrimination against
women who are already employees and
does not apply to applicants for
employment. Similarly, Art. 135 on
prohibited acts applies to women who are
already employees of the employer.
and resolved within 10 days or less upon its
reporting. It likewise expressly provides for
the liability of employers and duties of
co-workers as to sexual harassment. It
allows local government units to impose
heavier penalties on perpetrators. (LBC
Express-Vis, Inc. v. Palco, G.R. No. 217101,
February 12, 2020)

Q: What Is the stipulation against marriage Difference between RA 7877

with regard to female employees? (Anti-Sexual Harassment Act of 1995)
and RA no. 11313 (Safe Spaces Act of
A: It shall be unlawful for the employer to 2019)
do any of the following:
1. Require as a condition of
R.A. No. 7877 or R.A. No. 11313
employment that a female employee shall Anti-Sexual or Safe Spaces
not get married; Harassment Act Act of 2019
2. Require a female employee to of 1995
resign or be deemed resigned upon getting
married; and Anti-Sexual Expands the
Harassment Law Anti-Sexual
3. Dismiss or discriminate against a
does not define Harassment Law
female employee because of her marriage gender-based by defining and
[Art. 136, Labor Code]. sexual harassment. penalizing
gender-based
Sexual Harassment in the Work sexual harassment
Environment
Anti-Sexual
Harassment Law is
Sexual harassment not limited to women
confined to sexual
Sexual harassment can happen to anyone harassment
and everyone. Our society has often committed in the
depicted women as being the weaker sex, workplace,
and the only victims of sexual harassment. education, and
(Toliongco v. Court of Appeals, G.R. training setting
No. 231748, July 8, 2020)
The crux of the Expands the
Anti-Sexual Anti-Sexual
Safe Spaces Act Harassment Law is Harassment Law
It is a law which expanded the definition of limited to asking by broadening the
gender-based sexual harassment in the sexual behavior acts constituting
workplace and has added to the duties of sexual
harassment, e.g.
an employer as to its prevention,
cursing,
deterrence, and punishment. It explicitly
wolf-whistling,
requires that complaints be investigated

7
 catcalling and someone who has a subordinate to a
similar slurs, authority, influence, superior officer, by
exposing private or moral a student to a
parts for sexual ascendancy over teacher, or by a
gratification, the victim. trainee to a
stalking, etc. trainer.

Pertains to Superior-Subordin Penalty under the As a result of the

Superior-Subordina ate Anti-Sexual numerous acts
te relationship. relationship/moral Harassment Law is under the Safe
ascendancy does fixed. Space Act,
*A subordinate not apply. penalties are
cannot commit graduated based
sexual harassment *The crime of on the nature and
against the gender-based gravity of the act.
superior based on sexual harassment
the definition. may also be
committed
*Also cannot apply between peers Social Welfare and Legislation
to co-employees. and those
commuted to a SSS Law (RA. No. 11199)
Note: While these superior officer by
situations are not a subordinate, or a Compulsory Coverage
covered by the teacher by a
Coverage in the SSS shall be compulsory upon all
legal definition of student, or a
Sexual Harassment trainer by a employees not over 60 years of age including
under RA No. 7877, trainee. kasambahays and their employers: (b) all sea-based
it may constitute as and land-based OFWs who are not over 60 years of
a GROSS age.
misconduct and
thus valid ground
Voluntary Coverage
for termination.
The following may be covered on voluntary basis: (a)
The Anti-Sexual Expands the Spouses who devote full time to managing the
Harassment Law Anti-Sexual household and family affairs, unless they are also
does not include Harassment Law engaged in other vocation or employment which is
online sexual by including subject to mandatory coverage, may be covered by
harassment. gender-based
the SSS on a voluntary; (b) OFWs upon termination
online sexual
of their employment overseas; and (c) Filipino
harassment.
migrants.
Under the Expands the
Anti-Sexual Anti-Sexual Coverage in the SSS shall be compulsory upon such
Harassment Law, Harassment Law self-employed persons as may be determined by the
sexual harassment by including acts Commission under such rules and regulations as it
was only punished committed
may prescribe, including but not limited to the
when committed by between peers, by
following:

8
(1) All self-employed professionals;
(2) Partners and single proprietors of
businesses;
(3) Actors and actresses, directors,
scriptwriters and news correspondents who
do not fall within the definition of the term
“employee” in Sec. 8 (d) of this Act;
(4) Professional athletes, coaches,
trainers and jockeys; and
(5) Individual farmers and fishermen.
Dependents and Beneficiaries
The dependents shall be the following:
1. The legal spouse entitled by law to
receive support from the member; (Section
8[e][1])
2. The legitimate, legitimated or legally
adopted and illegitimate child who is:
a. Unmarried,
b. Not gainfully employed, and
c. Has not reached twenty-one (21)
years of age, or if over 21 years of
age, he/she is congenitally or while
still a minor has been permanently
incapacitated and incapable of
self-support, physically or mentally.
(Section 8[e] [2)])
Note: A child who has entered in a
common-law relationship and has not
reached the age of eighteen (18) is still a
dependent. However, upon reaching the age
of 18, the child is no longer qualified as a
dependent.
3. The parent who is receiving regular
support from the member. (Section 8[e][3])
The primary beneficiaries of a member are
the legitimate dependent spouse until he or
she remarries, the dependent legitimate,
legitimated or legally adopted, and
illegitimate children.
Secondary beneficiaries who shall be entitled
to the benefits in the absence of the primary
beneficiaries are the dependent parents. If
the member is single and without children,
the benefits will go to the dependent parents
who are considered the secondary
beneficiaries. In the absence of both primary
and secondary beneficiaries, any other
person designated by the member in his/her
SSS records shall be considered as the
beneficiary.
GSIS Law (RA 8291)
Compulsory Coverage
All government personnel, whether elective or
appointive, irrespective of status of appointment,
provided they are receiving fixed monthly
compensation and have not reached the mandatory
retirement age of 65 years, are compulsorily covered
as members of the GSIS and shall be required to pay
contributions.
Employees who have reached the retirement age of
65 or more shall also be covered, subject to the
following rules:
(1) An elective official who at the time of election to
public office is below 65 years of age and will be 65
years or more at the end of his term of office,
including the period/s of his re-election to public
office thereafter without interruption.
(2) Appointive officials who, before reaching the
mandatory age of 65, are appointed to government
positions by the President of the Republic of the
Philippines and shall remain in government service at
age beyond 65.
9
Contractual employees including casuals and
other employees with an
employee-government agency relationship
are also compulsorily covered, provided they
are receiving fixed monthly compensation
and rendering the required number of
working hours for the month.
Dependents and Beneficiaries
Dependents shall be the following: (a) the
legitimate spouse dependent for support
upon the member or pensioner; (b) the
legitimate, legitimated, legally adopted
child, including the illegitimate child, who
is unmarried, not gainfully employed, not
over the age of majority, or is over the age
of majority but incapacitated and incapable
of self-support due to a mental or physical
defect acquired prior to age of majority;
and (c) the parents dependent upon the
member for support.
Primary beneficiaries include the legal
dependent spouse until he/she remarries
and the dependent children.
Secondary beneficiaries include the
dependent parents and, subject to the
restrictions on dependent children, the
legitimate descendants.
Limited Portability Law (RA No. 7699)
This law is enacted to enable those who
transfer from the private sector to the
government sector or vice-versa to have
their periods of service totalized from SSS
and GSIS in order to enable them to enjoy
the social security benefits which they
would not qualify to receive if their service
years were to be considered independently
of the other.
Disability and Death Benefits
Disability and Death Benefits under the
Labor Code
Employees' compensation (EC) benefits are
granted to employees or their dependents
for work-connected disability or death, or
those resulting from accidents arising out
of and in the course of employment
(Article 166, Labor Code).
Types of disabilities compensated under the Labor
Code
1. Temporary Total Disability - if as a result of
the injury or sickness, the employee is
unable to perform any gainful occupation for
a continuous period not exceeding 120 days
(Art. 197 in rel. to Sec. 2(a), Rule VII,
Amended Rules on Employees’
Compensation)
2. Permanent Total Disability - if as a result of
the injury or sickness the employee is unable
to perform any gainful occupation for a
continuous period exceeding 120 days (Art.
198 in rel. to Sec. 2(b), Rule VII, Amended
Rules on Employees’ Compensation)
3. Permanent Partial Disability - if as a result of
the injury or sickness the employee suffers a
permanent partial loss of the use of any part
of his body (Art. 199 in rel. to Sec. 2(c), Rule
VII, Amended Rules on Employees’
Compensation).
Employee’s Compensation Program (ECP)
The ECP is a government program or mechanism
designed to provide public and private sector
employees and their dependents with income and
other benefits in the event of a work-connected
injury, sickness, disability or death. (An Employer’s
Guide On the Employees’ Compensation Program,
p.1)
10
Coverage of employers shall take effect on
the first day of operation but not earlier
than January 1, 1975. Meanwhile,
coverage of employees shall take effect on
the first day of employment.
Compensability of injuries
Disability benefits are granted an employee
who sustains an injury or contracts a
sickness resulting in temporary total,
permanent total, or permanent partial,
disability. For the injury and the resulting
disability to be compensable, they must
have necessarily resulted from an accident
arising out of and in the course of
employment (Valeriano vs. ECC and GSIS,
G.R. No. 136200, June 8, 2000).
GENERAL RULE: If sickness resulting in
death or disability is among those listed in
POEA-SEC Sec 32-A, then this is
compensable.
EXCEPTION: If not listed in POEA SEC
Sec 32-A, then sickness is disputably
presumed to be work-related. Burden is
upon OFW (or heirs) to prove reasonable
causal connection between work and
sickness.
- POEA SEC, as well as the laws of
the Republic of the Philippines,
international conventions, treaties and
covenants where the Philippines is a
signatory, are deemed automatically
incorporated into any employment contract
entered into by a Filipino OFW.
Note: No compensation and benefits are
payable for injury, incapacity, disability or
death from OFW’s own willful act.
Personal Comfort Doctrine
The injury of an employee who heeded the “call of
nature” and sustained injuries in the performance
of such act is deemed compensable. Likewise, acts
necessary to the health and personal comfort of an
employee while at work such as satisfaction of
thirst, hunger, etc. are incidental to employment
and injuries sustained therefrom are held to be
compensable as they arose out of or in the course
of employment (Poquiz, Labor Standards with
Notes and Comments, 2018, p. 524).
Instances where compensation for injury, sickness,
disability or death not allowed under the ECP
1. Employee’s intoxication;
2. His willful intent to injure or kill himself or
another; or
3. His notorious negligence (Rule IV, Section 1,
2014 Amended Rules on Employees’
Compensation).
24-Hour Doctrine
For purposes of coverage under the ECP, a soldier on
active duty is really on duty 24 hours a day since he
can be called upon anytime by his superiors, except
when he is on vacation leave status (Hinoguin vs.
ECC, G.R. No. 8430, April 17, 1989).
Seaman/seafarer under the POEA-Standard
Employment Contract
V People Manpower Phils., Inc. v. Dominador
C. Buquid, G.R. No. 222311, February 10, 2021
J. Hernando Case
In order to be considered a seaman or seafarer,
one would have to be, at the very least, employed
in a vessel engaged in maritime navigation. Thus,
it is clear that those employed in non-mobile
vessels or fixed structures, even if the said
vessels/structures are located offshore or in the
middle of the sea, cannot be considered as
11
 seafarers under the law. An overseas
employee, in order to be considered as a
"seafarer," must not only perform tasks
concerning manning marine vessels or
marine navigation, but they must also
perform such functions onboard a vessel
engaged in maritime navigation or a mobile
offshore rig or drilling unit in the high seas.
Elements of compensability of injury or
illness under POEA-SEC
Paglinawan v. Dohle Philman Agency,
G.R. No. 230735, April 4, 2022
J. Hernando Case
POEA-SEC provides that for an illness to be
compensable:
a. the injury or illness must be work-related;
and
b. the work-related injury or illness must
have existed during the term of the
seafarer's employment contract.
Work-related Sickness → highlight
“reasonable work connection”
Any sickness as a result of an occupational
disease, and illnesses not listed in the
POEA-SEC may still be compensable as they
are treated as disputably presumed to be
work-related. There is no automatic
compensation, however, as the seafarer has
to prove the correlation of his illness to the
nature of his work and the conditions for
compensability should be satisfied.
Mandatory reporting requirements for a
seafarer to claim disability benefits
Armando H. De Jesus vs. Inter-Orient
Maritime Enterprises, Inc. G.R. No. 203478,
June 23, 2021
J. Hernando Case
Under POEA-SEC, a seafarer is obliged to submit
himself to a post-employment medical examination
by a company-designated physician within three
working days upon his return, except when he is
physically incapacitated to do so, in which case, a
written notice to the agency within the same
period is deemed as compliance.
Gerardo U. Ville vs. Maersk-Filipinas Crewing,
Inc. G.R. No. 217879, February 01, 2021
J. Hernando Case
Non-compliance with the post-employment medical
examination requirement is tantamount to a waiver
or forfeiture of any right to claim disability benefits.
Referral to Third Doctor
If a doctor appointed by the seafarer disagrees with
the assessment, a third doctor may be agreed jointly
between the Employer and the seafarer. The third
doctor’s decision shall be final and binding on both
parties. (Section 20(A)(3)of the 2010 POEA-SEC)
Cessation of seafarer contract
Gerardo U. Ville vs. Maersk-Filipinas Crewing,
Inc. G.R. No. 217879, February 01, 2021
J. Hernando Case
A "contract between an employer and a seafarer
ceases upon its completion, when the seafarer signs
off from the vessel and arrives at the point of hire."
Rules governing seafarer claims on permanent and
total disability benefits
12
Edgardo I. Mabalot vs. Maersk-Filipinas
Crewing, Inc., G.R. No. 224344,
September 13, 2021
J. Hernando Case
1. The company-designated physician
must issue a final medical assessment on the
seafarer's disability grading within a period
of 120 days from the time they reported to
him.
2. If the company-designated physician
fails to give his assessment within the period
of 120 days, without justifiable reason, then
the seafarer's disability becomes permanent
and total;
3. If the company-designated physician
fails to give his assessment within the period
of 120 days with a sufficient justification
(e.g., seafarer required further medical
treatment or seafarer was uncooperative),
then the period of diagnosis and treatment
shall be extended to 240 days. The employer
has the burden to prove that the
company-designated physician has sufficient
justification to extend the period; and
4. If the company-designated physician
still fails to give his assessment within the
extended period of 240 days, then the
seafarer's disability becomes permanent and
total, regardless of any justification.
Note: Before a company-designated
physician should issue a final medical
assessment on the seafarer’s disability
grading, it is mandatory that the employee
submit himself to a post-employment
medical examination within 3 working days
upon sign-off from the vessel. Failure to
report forfeits his/her right to claim total
and permanent disability benefits. (De Jesus
v. Inter-Orient Maritime Services, G.R. No.
203478, June 23, 2021)
Ronnie L. Singson vs. Arktis Maritime Corp.,
G.R. No. 214542, January 13, 2021
J. Hernando Case
When a certain sickness or injury causes a temporary
and total disability which lasts continuously for more
than 120 days, then such total disability is
considered to be permanent.
EXCEPTION: If the said sickness or injury that
caused the temporary total disability requires medical
treatment beyond the 120-day period but not to
exceed 240 days, then the employee is only entitled
to temporary total disability benefits until he is
declared as either: 1) "fit to work," which stops his
entitlement to disability benefits; or 2) "permanently
and totally disabled," which then entitles him to
permanent total disability benefits. In any event, if
the 240 days had lapsed without any certification
issued by the company-designated doctor, then the
employee may pursue an action for permanent total
disability benefits.
Labor Relations
Right to Self-Organization
Right to self-organization pertains to (i) the right to
form or join union for the purpose of collective
bargaining; or (ii) the right to engage in lawful
concerted activities for the same purpose or mutual
aid and protection.
Doctrine of Necessary Implication
Under the doctrine of necessary implication,
the managerial employees cannot be part of
a union as well as confidential employees.
The confidential-employee rule justifies
exclusion of confidential employees because
in the normal course of their duties they
become aware of management policies
relating to labor relations. (Sugbuanon Rural
13
Bank, Inc. v. Laguesma, G.R. No. 116194,
February 2, 2000)
Bargaining Unit
“Bargaining Unit” refers to a group of
employees sharing mutual interests within a
given employer unit. It is composed of all or
less than all of the entire body of
employees in the employer unit or any
specific occupational or geographical
grouping within such employer unit (Section
1[e], Rule I, D.O. No. 40-03 as amended)
Tests to determine the appropriate
bargaining unit
1. Community or mutuality of interest
doctrine
2. Globe Doctrine
3. Collective bargaining history doctrine
4. Employment status doctrine
Modes to Acquire Status as Sole and
Exclusive Bargaining Agent
1. Sole and Exclusive Bargaining Agent
(SEBA) Certification - process where
a union requests the DOLE Regional
Director to recognize and certify the
union as the Sole and Exclusive
Bargaining Agent (SEBA) of the
Bargaining Unit (BU) it purports to
represent for purposes of collective
bargaining with the employer.
Requirements:
● Unorganized establishment (wherein
there is no certified exclusive
bargaining representative)
● Only 1 union in the establishment
representing the same bargaining
unit
● At least majority of the employees
in the bargaining unit support the request
1. Certification Election - process of
determining through secret ballot the sole
and exclusive representative of the
employees in an appropriate bargaining unit,
for purposes of collective bargaining or
negotiation.
Requirements:
● In writing
● Verified under oath
● Members and Officers list
● Description of the bargaining unit
2. Consent Election - election that is voluntarily
agreed upon by the parties with or without
the intervention of DOLE for the purpose of
determining the EBA.
Prohibition against the filing/conduct of
Certification/Consent Election or issuance of
SEBA
1. Contract Bar Rule
- Existing CBA bars any other labor
organization from filing a petition for
Certification Election except within
60-day freedom period.
2. Outside of Freedom Period
- The rule prohibits the filing of a
petition for certification election
during the existence of a collective
bargaining agreement except within
the freedom period when the said
agreement is about to expire.
- CBA is automatically renewed until
new agreement is reached. It shall
be the duty of both parties to keep
the status quo and to continue in full
force and effect the terms and
conditions of the existing agreement
14
 during the 60-day period or until a
new agreement is reached by the
parties.
3. Certification-Year / 12-month bar /
1-year Bar Rule
- Provides that no petition for a
Certification Election may be filed
within one year from the date of a
valid certification, consent, run-off
election, re-run election and SEBA
Certification.
- The same ban shall apply even if
“NO UNION” won in the previous
election. The purpose of this bar is
to give a chance to the union to
conclude a CBA with the employer
within 1 year.
4. Negotiation Bar Rule
- A Certification Election is barred if
union has commenced and sustained
negotiations in good faith within 1
year.
5. Deadlock Bar Rule
- Provides that a petition for
Certification Election can only be
entertained if there is no pending
bargaining deadlock submitted to
conciliation or arbitration or which
has become the subject of a valid
notice of strike or lockout. The
principal purpose is to ensure
stability in the relationship of the
Prohibition against the filing/conduct
of Certification/Consent Election or
issuance of SEBA
6. Contract Bar Rule
- Existing CBA bars any other
labor organization from filing a
petition for Certification
Election except within 60-day
freedom period.
7. Outside of Freedom Period
- The rule prohibits the filing of a
petition for certification election
during the existence of a
collective bargaining agreement
except within the freedom
period when the said agreement
is about to expire.
- CBA is automatically renewed
until new agreement is reached.
It shall be the duty of both
parties to keep the status quo
and to continue in full force and
effect the terms and conditions
of the existing agreement
during the 60-day period or
until a new agreement is
reached by the parties.
8. Certification-Year / 12-month
bar / 1-year Bar Rule
- Provides that no petition for a
Certification Election may be
filed within one year from the
date of a valid certification,
consent, run-off election, re-run
election and SEBA Certification.
- The same ban shall apply even if
“NO UNION” won in the
previous election. The purpose
of this bar is to give a chance to
the union to conclude a CBA
with the employer within 1 year.
9. Negotiation Bar Rule
- A Certification Election is barred
if union has commenced and
sustained negotiations in good
faith within 1 year.
10. Deadlock Bar Rule
- Provides that a petition for
Certification Election can only be
15
entertained if there is no pending
bargaining deadlock submitted to
conciliation or arbitration or which
has become the subject of a valid
notice of strike or lockout. The
principal purpose is to ensure
stability in the relationship of the
Unfair Labor Practice
Q: What is ULP?
A: Unfair Labor Practice are offenses
committed by the employer or the labor
organization which violates the constitution
right of workers and employees to
self-organization.
Q: What are the requisites of ULP?
A:
(1) There is an EE-ER relationship
between the offender and the offended
(2) The act done is expressly defined
in the Labor Code as an act of ULP
Q: What is the totality of conduct doctrine?
A: It is the culpability of an employer’s
remarks are to be appraised against the
background of and in conjunction with
collateral circumstances; Expressions of
opinion by an employer which, though
innocent in themselves, may be held to
constitute ULP because of the
circumstances under which they were
uttered, the history of the particular
employer’s labor relations or anti-union
bias or because of their connection with an
established collateral plan of coercion or
interference.
Assumption of Jurisdiction by the
DOLE Secretary
Q: When can the DOLE Secretary assume jurisdiction
labor disputes?
A: When in the opinion of the SOLE, the labor
dispute causes or will likely to cause a strike or
lockout in an industry indispensable to the national
interest
In such cases, the SOLE is empowered to do two
things:
a. Assume jurisdiction over the labor dispute
and decide it himself
b. Certify it to the NLRC for compulsory
arbitration
Q: What is the effect of an assumption jurisdiction
order?
A: The assumption will have the effect of enjoining a
strike or lockout prior to strike or lockout being held,
or mandating the employees to return to work and
readmit the employees if a strike has already been
staged.
Strike
Valid grounds for strike:
1. Bargaining deadlocks
2. Unfair Labor Practice
No strike may be declared on the following
grounds:
1. Inter-union disputes
2. Intra-union disputes
3. Without first having filed a notice of strike
4. Without the necessary strike vote having
been obtained and reported to the Board
5. After assumption of jurisdiction by the
Secretary or after certification or submission
of the dispute
16
6. To compulsory or voluntary arbitration or
during the pendency of cases involving the
same grounds for the strike. (Sec. 5, Book V,
Rule XXII, Omnibus Rules).
IV. POST-EMPLOYMENT
Kinds of Employment
a) Regular – those who are hired for
activities which are necessary or desirable
in the usual trade or business of the
employer.
b) Casual – There is casual employment
when the employee is engaged to perform
work incidental to the business of the
employer for a limited time made known to
the employee upon engagement.
c) Probationary – those who are hired
generally for regular positions but are
placed on a probationary status for a
period of 6 months (as a general rule).
May become regular once he has qualified
as such in accordance with reasonable
standards made known to him at the time
of hiring. They are considered regular if
they are allowed to work beyond the
probationary period.
Burden of proof is upon the employer to
show that: (a) employee was informed of
the reasonable standards made known to
him at the time of engagement; and (b)
employee failed to qualify in accordance
with said reasonable standards for
regularization.
Q: May a probationary employee who
failed to qualify, justify poor performance
on account of management’s assignment
of a job not within his/her field of
competence?
A: NO. It is the prerogative of the school
to set high standards of efficiency for its
teachers since quality education is a
mandate of the Constitution. Santos
voluntarily agreed to teach the Filipino
classes given to her when she came back
from her leave of absence. Said classes
were not forced upon her by the School.
This much she admitted in the hearing of
the case before the Labor Arbiter. When
she consented to take on the Filipino
classes, it was Santos’s responsibility to
teach them well within the standards of
teaching required by the School, as she
had done previously as a teacher of
Spanish. Failing in this, she must answer
for the consequences. International
School of Manila vs. International
School Alliance of Educations (ISAE),
G.R. No. 162786, 05 February 2014.
d) Project – the principal test for
determining whether particular employees
are properly characterized as "project
employees" as distinguished from "regular
employees" is whether or not the project
employees were assigned to carry out a
"specific project or undertaking," the
duration and scope of which were specified
at the time the employees were engaged
for that project.
Badges of project employment: (i) employee,
while waiting to be engaged on another
project, is free to offer his services to
another employer; (ii) employee is not
continuously rehired but there are
intervening periods when he does not work
after completion of a project or phase of a
17
 project; and (iii) employee is rehired for Telus International Philippines vs. De
another specific undertaking or activity Guzman, G.R. No. 202676, December
(Alcatel vs. Relos). 4, 2019
J. Hernando Case
e) Seasonal – those hired for work or
services which is seasonal in nature, and the No Floating Status in Call Centers
employment is for the duration of the season. The floating status principle does not find
application in the instant case. While it may
f) Fixed-Term – those who are hired for a be argued that the nature of the call center
specific period, the arrival of the date business is such that it is subject to
specified in the contract of which seasonal peaks and troughs because of
automatically terminates the client pullouts, changes in clients'
employer-employee relationship. requirements and demands, and a myriad
other factors, still, the necessity to transfer
Requisites for valid fixed-term employment: De Guzman to another practice/account
(i) knowingly and voluntarily agreed upon; does not depend on Telus' third
and (ii) employer and employee dealt with party-client/contracts.
each other on equal terms.
Termination of Employment by Employer
g) Floating Status
Just Causes Authorized Causes
Floating status is allowed in two instances:
a) For a maximum period of six (6) The employee has The employee did not
months as a result of temporary cessation committed a wrongful commit any
of operations of the business under Article act/omission which act/omission, but there
301, Labor Code, OR caused his/her exists a ground which
termination. the law allows or
b) For a period of three (30 months
authorities to be
under Dept Order No. 174 s 2017, where invoked to justify the
the contract between the principal and the termination.
independent contractor had expired, and
the independent contractor/employer is These are causes These are causes
under obligation to look for alternative directly attributable to brought by the
the fault or negligence necessary and
employment for its regular employees.
of the employee. (DO. exigencies of business,
147-15) changing economic
An employee on “floating status” is not conditions, and illness
entitled to salary. He must however be of the employee. (DO.
recalled to work on or before the end of six 147-15)
(6) months. Otherwise, he shall be deemed
constructively dismissed if not legally
separated and paid the corresponding
separation pay.

18
Just Causes
a. Serious Misconduct
i. It must be serious and be of such
grave and aggravated character;
ii. It must relate to the performance of
the employee’s duties; and
iii. It must show that the employee is
unfit to continue working for the
employer.
b. Gross and Habitual Neglect of duties
i. There must be negligence which is
gross and/or habitual in character;
and
ii. It must be work-related as would
make him unfit to work for his
employer
XPN: An employee who was grossly
negligent in the performance of his/her duty,
though such negligence was not habitual
may be dismissed especially if the grossly
negligent act resulted in substantial damage
to the company. (LBC Express v. Mateo, G.R.
No. 168215, June 9, 2009)
c. Abandonment of Work
i. The employee must have failed to
report for work or must have been
absent without valid or justifiable
reason; and
ii. There must have been a clear
intention on the part of the
employee to sever the
employer-employee relationship
manifested by some overt act.
d. Fraud or Willful Breach of Trust and
Confidence
i. The employee holds a position of
trust and confidence
ii. There exists an act justifying the loss
of trust and confidence, which
means that the act that betrays the
employer’s trust must be real, i.e.,
founded on clearly established facts;
iii. The employee’s breach of the trust
must be done intentionally,
knowingly purposely, without
justifiable excuse;
iv. The act is committed against the
employer or his/her representative;
and
v. The act constituting the breach must
be in connection with the employee’s
work.
e. Commission of a Crime
i. That there be a commission of a
crime or offense; and
ii. That it be against the immediate
family members of the employer,
meaning the spouse, ascendants,
descendants, legitimate, natural, or
adopted brothers or sisters by
affinity, and those by consanguinity
within the fourth civil degree. NOTE:
Conviction is not required.
Lufthansa Technik Philippines, Inc. v. Cuizon,
G.R. No. 184452, February 12, 2020
J. Hernando Case
Gross negligence implies a want or absence of or a
failure to exercise slight care or diligence, or the
entire absence of care. It evinces a thoughtless
disregard of consequences without exerting any
effort to avoid them. Habitual neglect implies
repeated failure to perform one's duties for a period
of time, depending upon the circumstances.
Spouses Maynes v. Oreiro, G.R. No. 206109,
November 25, 2020
J. Hernando Case - Loss of Trust and Confidence
(important topic)
Article 297 (c), which refers to "fraud or willful
breach by the employee of the trust reposed in
[him/her] by [his/her] employer" or simply termed as
19
"loss of trust and confidence," is a just cause for
dismissal.
"The requisites for dismissal on the ground
of loss of trust and confidence are: (1) the
employee concerned must be holding a
position of trust and confidence; and (2)
there must be an act that would justify the
loss of trust and confidence. In addition to
these, such loss of trust relates to the
employee's performance of duties."
Authorized Causes
a. Installation of labor-saving device
i. There must be introduction of
machinery, equipment or other
devices;
ii. Done in good faith;
iii. The purpose must be valid such
as to save on cost, enhance
efficiency and other justifiable
economic reasons;
iv. No other option or alternative
available; and
v. There must be fair and
reasonable criteria in selecting
employees to be dismissed.
b. Redundancy
i. There must be superfluous
positions or services of
employees;
ii. The positions or services are in
excess of what is reasonably
demanded;
iii. Must be in good faith;
iv. There must be fair and
reasonable criteria in selecting
the employees to be dismissed;
and
v. There must be adequate proof
of redundancy.
GR: Last-in first out rule.
XPN: When the employee
volunteers to be separated.
c. Retrenchment
i. The retrenchment must be
reasonably necessary and likely
to prevent business losses;
ii. The losses, if already incurred,
are not merely de minimis, but
substantial, serious, actual and
real, or if only expected, are
reasonably imminent;
iii. The expected or actual losses
must be proved by sufficient and
convincing evidence;
iv. Must be done in good faith; and
v. There must be fair and
reasonable criteria in selecting
the employees to be retrenched.
d. Closure or cessation of business
operations due to serious business losses
and financial reverses.
i. There must be a decision to
close or cease operation of the
enterprise by the management;
ii. The decision was made in good
faith; and
iii. There is no other option
available to the employer except
to close or cease operations.
e. Disease
i. The employee must be suffering
from any disease;
ii. The continued employment of
the employee is prohibited by
law or prejudicial to his/her
health as well as to the health of
his/her co-employees; and
iii. There must be certification by a
competent public health
authority that the disease is
incurable within a period of 6
months even with proper
medical treatment.
20
Due Process
The twin requirements of NOTICE and HEARING
are the essential elements of due process in
termination cases, which cannot be dispensed with
without violating the constitutional right to due
process.
Due process can either be Statutory Due
Process and Contractual Due Process.
Statutory due process refers to the one
prescribed in the Labor Code (Article
292[b] 277[b]); while contractual due
process refers to the one prescribed in the
Company Rules and Regulations. As per
the Abbott Labs ruling the employer should
still comply with the due process
procedure prescribed in its own company
rules. The employer’s failure to observe its
own company-prescribed due process will
make it liable to pay an indemnity in the
form of nominal damages. (Abbott
Laboratories v. Alcaraz, 2013)
XPN: The Twin-Notice requirement applies
to the authorized cause of termination due
to disease (Deoferio v. Intel, 2014)
Hearing
The Labor Code provides that the so-called
standards of due process outlined therein
shall be observed “substantially,” not
strictly. This is a recognition that while a
formal hearing or conference is ideal, it is
not an absolute, mandatory or exclusive
avenue of due process. (Sec. 2(d), Rule I
of the IRR of Book VI of the Labor Code)
Failure to comply with procedural
requirements of due process
Although the dismissal should be upheld, the
employer shall be liable for nominal damages for
non-compliance with the procedural requirements of
due process. (Agabon v. NLRC, 2004)
Termination of Employment by Employee

Twin-Notice Rule Resignation vs. Constructive Dismissal

The Twin-Notice Rule provides that in
dismissing an employee, the employer has
Voluntary Construc
the burden of proving that the former Resignation tive
worker has been served two notices: Dismissa
1. One to apprise him of the l
particular acts or omissions for which his
dismissal is sought; and Definition Constructive Voluntary
dismissal is resignatio
2. The other to inform him of his
involuntary n, is a
employer’s decision to dismiss him (Tan v. resignation formal
NLRC, 1998). and is due to pronounc
harsh, hostile, ement or
NOTE: The two-notice requirement and or unfavorable relinquish
hearing are required only in cases of just conditions in ment of
cause termination but not in authorized his/her an office,
employment accompan
causes.
that renders ied by an
his/her intent to
continued relinquish

21
 one previously occupied by the
employment the office
impossible, and an employee. (Traveloka v. Ceballos,
unreasonable, overt act 2022)
or unlikely. of
relinquishi Backwages
ng the An employee who is unjustly dismissed
same.
from work shall be entitled to his full
Effect Constructive Voluntary backwages, inclusive of allowances,
dismissal is resignatio and to his other benefits or their
considered an n is a monetary equivalent computed from
illegal valid the time his compensation was
dismissal. mode of withheld from him up to the time of
terminatin his actual reinstatement. (Art. 294,
g
Labor Code)
employme
nt by the
employee. Separation Pay alternative to
Reinstatement
Separation pay, as a substitute remedy, is
Reliefs from Illegal Dismissal
only proper for reinstatement but not
Illegally dismissed employee are entitled to
for backwages.
the following reliefs:

It may be issued in lieu of reinstatement

1. Reinstatement without loss of
under the following circumstances:
seniority rights and other privileges;
1. When reinstatement can no longer be
2. Full backwages, inclusive of regular
effected in view of the passage of a
allowances; and
long period of time or because of the
3. Separation Pay in lieu of
realities of the situation;
Reinstatement
2. Reinstatement is inimical to the
4. Other benefits or their monetary
employer's interest;
equivalent.
3. Reinstatement is no longer feasible;
4. Reinstatement does not serve the best
Reinstatement
interests of the parties involved; e. the
Reinstatement is a restoration to a state
employer is prejudiced by the workers'
from which one has been removed or
continued employment;
separated. The person reinstated
5. Facts that make execution unjust or
assumes the position he had occupied
inequitable have supervened; or
prior to his dismissal. Reinstatement
6. Strained relations between the employer and
presupposes that the previous position
employee." (PNB vs. Bulatao, 2019)
from which one had been removed still
exists, or that there is an unfilled
Principle of Strained Relations
position which is substantially
It applies when the reinstatement of the
equivalent or of similar nature as the
employee would create an atmosphere of

22
antagonism between the employer and the Consequences of illegal dismissal
employee. The employer is required to
Cause of Effects
alleged the existence of the strained dismissal
relations and must be proved as matter of
fact, and the nature of the position of the With just cause Dismissal is valid
employee must be one of trust and and with due
confidence process Employee is not
entitled to
reinstatement,
Loss of Confidence backwages,
Requisites of willful breach of trust and damages, and
confidence: attorney’s fees
1. The employee holds a position of
trust and confidence; Without just cause Employee is
and without due illegally dismissed
2. There exists an act justifying the loss
process
of trust and confidence of the Employee is
employer; entitled to
3. The employer’s breach of trust and reinstatement,
confidence must be willful or done backwages,
intentionally, knowingly, or purposely damages, and
without justifiable cause; and attorney’s fees
4. The act must be in relation to his
Without just cause Employee is
work. and with due illegally dismissed
process
Loss of confidence is a valid ground for Employee is
dismissing an employee and proof beyond entitled to
reasonable doubt of the employee's reinstatement,
backwages,
misconduct is not required. It is sufficient if
damages, and
there is some basis for such loss of attorney’s fees
confidence or if the employer has reasonable
ground to believe or to entertain the moral Without just cause Employee is not
conviction that the employee concerned is but with due entitled to
responsible for the misconduct and that the process reinstatement, but
is entitled to
nature of his participation therein rendered
nominal damages
him unworthy of the trust and confidence
of around P30,000
demanded by his position. (Genuino v LNRC, to P50,000
2007) (Agabon v NLRC,
Jaka Food
Processing v.
Pacot)

No proof of actual The employee

dismissal or must continue his

23
 Compulsory v. Optional Retirement
abandonment employment under
the same terms In the absence of of a retirement plan or
and conditions other applicable agreement here are the
(Gososo vs. Leyte differences between Compulsory and
Lumber) Optional Retirement:

Compulsory Optional
No proof of actual dismissal from the Retirement Retirement
employee, but no proof of
abandonment of the employer As to age 65 years old, Upon
Where the employee fails to prove the fact regardless of reaching 60
years of years old.
of his or her illegal dismissal, and the
service. (Sec.
employer has also not demonstrated that 4, Rule II,
the employee abandoned his or her work, Book VI, IRR
the case usually ends with the employee's of the Labor
reinstatement without the payment of Code)
backwages. (Gososo vs. Leyte Lumber,
Who may Employer Exclusive
2021)
exercise prerogative
of the
Retirement Employee
Retirement is the withdrawal from office,
public station, business, occupation, or Duration No service Minimum of
public duty. (Brion v. South Phil. Union of Service requirement 5 years of
service
Mission of the Seventh Day Adventist
Church, 1999) Benefits ½ month for every year of
service, or as expanded upon
Eligible for Retirement by RA 7641, 15 days + 5
1. All employees in the private sector, days service incentive leave
regardless of their position, designation or + 2.5 days prorated 13th
month pay.
status and irrespective of the method by
which their wages are paid.
2. Part-time employees; VI. JURISDICTION AND REMEDIES
3. Employees of service and other job
contractors; Labor Arbiter
4. Domestic workers/kasambahays or The Labor Arbiter is an official in the Arbitration
persons in the personal service of another; Branch of the National Labor Relations Commission
5. Underground mine workers; (NLRC) who hears and decides cases falling under
6. Employees of government-owned his original and exclusive jurisdiction as provided by
and/or controlled corporations organized law.
under the Corporation Code (without
original charters).

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Jurisdiction of the Labor Arbiter
The jurisdiction of a Labor Arbiter is both original and
exclusive, meaning, no other officers or tribunals can
take cognizance of, or hear and decide, any of the
cases falling under the jurisdiction of a Labor Arbiter.
Art. 224 of the Labor Code:
1. Unfair Labor Practices
2. Illegal Dismissal Cases
3. Money Claims exceeding P5,000
4. Claims for actual, moral, exemplary
and other forms of damages arising from
employer-employee relations; and
5. Cases involving the legality of
strikes and lockouts.
6. Monetary claims of Overseas
contract workers arising from employer-
employee relationship or by virtue of any
law or contract, including claims for death
and disability benefits and for actual, moral,
exemplary and other forms of damages.
(Section 10 of RA 8042 amended by RA
10022;)
Jurisdiction of the NLRC
The NLRC shall have exclusive appellate
jurisdiction over:
1. Decisions, awards, or orders of the Labor
Arbiter over:
a. Cases covered by Art. 224(b);
b. Cases covered by Sec. 10 of Migrant
Worker’s Act; and
c. Cases decided under Art. 124 on wage
distortion in non-unionized establishment;
2. Denial of the claim of the third-party
claimant where property was levied by the
Sheriff of LA
3. Cases decided by the Regional Offices of
DOLE in the exercise of its adjudicatory
function under Art. 129 of the LC over
monetary claims of workers amounting to
not more than P5,000 and not accompanied
by claim for reinstatement; and
4. Decision by the LA in contempt cases.
(Art. 225(d), LC)
Jurisdiction of the Court of Appeals
In labor cases, the proper recourse from
the adverse decision or final order of the
NLRC is via a special civil action for
certiorari under Rule 65 of the Rules of
Court to the CA on the ground that the
labor tribunal acted with grave abuse of
discretion amounting to excess or lack of
jurisdiction. (PHILAM v. De Luna, 2021)
Jurisdiction of the Supreme Court
From the CA, the labor suit is elevated to
the Supreme Court via a petition for review
on certiorari pursuant to Rule 45 of the
Rules of Court on pure questions of law;
questions of fact may be entertained and
reviewed only in exceptional
circumstances.(PHILAM v. De Luna, 2021)
Labor Arbiter v. Regional Director
Labor arbiters have no jurisdiction over
small money claims lodged under Article
129 while the DOLE Regional Directors
have jurisdiction over claims amounting to
P5,000 or below. (Art. 129, Labor Code)
In Inspection Of Establishment Cases under Article
128 (Visitorial And Enforcement Power), the DOLE
REGIONAL DIRECTORS have jurisdiction regardless
of whether or not the total amount of claims per
employee exceeds P5,000.00.
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Requisites to Perfect an Appeal With the
National Labor Relations Commission
In order to perfect an appeal with the NLRC the
appeal must be:
1. Filed within the reglementary
period of 10 calendar days from receipt if it
involves a decision, award, or order of the
LA, or 5 calendar days from receipt if it
involves a decision or resolution of the RD;
2. Verified by the appellant himself in
accordance with Sec. 4, Rule 7 of the ROC,
as amended;
3. In the form of a memorandum of
appeal which shall state the grounds relied
upon and arguments in support thereof,
the relief prayed for, and with a statement
of the date the appellant received the
appealed decision, resolution or order;
4. In three legibly typewritten or
printed copies;
5. Accompanied by the following:
a. Proof of payment of the required
appeal fee;
b. Posting of a cash or surety bond as
provided in Sec. 6 of this Rule;
c. A certificate of non-forum shopping;
and
d. Proof of service upon the other
parties.
DOLE Secretary
Powers of the DOLE Secretary (Art.
128, Labor Code)
1. Visitorial and Inquisitorial Power
a. To gain access to the
employer’s records and
premises at any time of the
day or night so long as work
is being undertaken
b. To have a copy of the
aforementioned records
c. Question any employee and
investigate any fact,
condition, or matter which
may be necessary to
determine violations or
which may aid in the
enforcement of the Labor
Code and of any wage order,
rules, and regulations issued
pursuant thereto.
2. Enforcement Powers
a. Issue compliance orders
b. Issue writs of execution for the
enforcement of their orders, except
in cases where the Employer
contests the findings of the labor
officer and raise issues supported by
documentary proof which were not
considered in the course of
inspection
c. Order stoppage of work or
suspension of operation when
noncompliance with the law or
implementing rules and regulations
poses grave and imminent danger to
health and safety of workers in the
workplace.
d. Require Employers to keep and
maintain such employment records
as may be necessary in aid to the
visitorial and enforcement powers
e. Conduct hearings within 24 hours for
the determination on whether an
order for stoppage of work or
suspension of operations shall be
lifted or not.
3. Appellate power or power to review
26
Jurisdiction of the Voluntary Arbitrator in
Cases date of the formal
Labor Disputes dismissal. (Art.
1146, NCC)
1. Grievances in interpretation or
implementation of CBA Money Claims 3 years from the
2. Dispute in Interpretation or enforcement of arising from an time the cause of
Employer-Employe action accrued.
company policies
e relationship (Art. 307, LC)
3. Violations of CBA except gross violations of
economic provisions of CBA Other Offenses 3 years from the
4. Upon agreement of the parties, shall also under the Labor commission of the
hear and decide all other labor disputes Code offense or
including unfair labor practices and discovery thereof.
(Art. 305, LC)
bargaining deadlocks.
Reinstatement 4 years (Art. 1146,
Decisions of the Voluntary Arbitrators NCC)
Once a decision has been rendered in a
case and subsequently becomes final and Simple Illegal 5 years from the
executory, it may be enforced through the Recruitment commission.(Art.
305, LC)
writ of execution issued by the same
Voluntary Arbitrator or panel of Voluntary Syndicated or 20 years from the
Arbitrators who rendered it, addressed to Large-scale Illegal time of
and requiring certain public officers to Recruitment commission. (Sec.
execute the final decision or award. (Art. 12, R.A. No. 8042)
276, Labor Code).
Failure to Remit 20 years from the
SSS Contributions time the
Appeal for Decisions of Voluntary Arbiters
delinquency is
In order to appeal an adverse decision of a known or
Voluntary Arbiter, an appeal to the Court of assessment is
Appeals through Rule 43 must be filed. made by SSS, or
(Sec. 1, Rule 43, Rules of Court) from the time the
benefit accrues, as
the case may be.
Prescriptive Periods
(Sec. 22 (b) R.A.
No. 11199)
Cause of Action Prescriptive
Period Sexual 3 years (Sec. 7,
Harassment R.A. No. 7877)
Unfair Labor 1 year from accrual
Practices of such Unfair
Labor Practice.
(Art. 305, LC)

Illegal Dismissal 4 years from the

27