Ateneo Labor Law Reviewer PDF

ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law and Social Legislation SUMMER REVIE
WER
Head: Labor Standards: Labor Relations:
Ryan Quan Kukay Malabanan Peewee Estrella
Socail Legislation: Binkki Hipolito Understudy: Volunteers: Kate Sabado Aren Sam
onte, Vina Padilla, Ria Campos, Ina Quintanilla, Athena Zosa
TABLE OF CONTENTS LABOR STANDARDS I. GENERAL PRINCIPLES ........................
................................................................................
............. 1 A. ARTICLE 3: Declaration of Basic Policies B. ARTICLE 4: Constr
uction in Favor of Labor C. ARTICLE 5: Rules and Regulations D. ARTICLE 6: Appli
cability of Labor Code II. EMPLOYER EMPLOYEE RELATIONSHIP ......................
................................................... 2 A. Elements of Relationshi
p B. Independent Contractors and Labor-Only Contractors C. Special Cases III. PR
E EMPLOYMENT....................................................................
......................................... 6 A. Principles and Definitions B. Rec
ruitment and Placement
TIFF (Uncompressed) decompressor 1. Definition: Illegal Recruitment; Prohibited
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2. Regulation of Recruitment and Placement 3. 4. Contracts Dispute Settlements
C. Employment of Aliens D. Human Resources and Manpower Development 1. Governmen
t Machinery
Labor Law and Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2
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2. Apprenticeship and Learnership IV. WORKING CONDITIONS .......................
...............................................................................
13 A. Coverage B. Hours of Work C. Rest Periods and Holidays D. Service Charge a
nd Service Incentive Leaves E. Others V. WAGES..................................
................................................................................
................ 20 A. Concept and Definition B. Wage Fixing C. Payment of Wages
D. Liability for Wages VI. WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES .
.............................. 26 A. Women B. Minors C. Househelpers D. Homework
ers E. Handicapped/Disabled VII. ADMINISTRATION AND EMPLOYMENT .................
............................................................ 30 A. ARTICLE 128:
Visitorial and Enforcement Powers B. Power of DOLE Secretary VIII. MEDICAL, DENT
AL AND OCCUPATIONAL SAFETY .....................................................
... 31 IX. EMPLOYEES COMPENSATION.. .................................................
........................ 31 A. Workmens Compensation
LABOR RELATIONS I. RIGHT TO SELF ORGANIZATION.....................................

........ 35
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1. ARTICLE 243: Coverage and E,mployees Right to Self-Organization 2. ARTICLE 246
: Non-Abridgment of Right to Self-Organization B. Labor Organization. .............
................................................................................
..... 35 1. Definition and Types 2. Registration of Labor Organizations
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i. Requirements for Registration See ANNEX A ii. Requirements in Case of Merger/
Consolidation See ANNEX B iii. Procedure for Registration of labor Organization
See ANNEX C 3. Cancellation of Registration i. Procedure for Cancellation of Reg
istration See ANNEX D 4. Rights of Labor Organization ii. iii. ARTICLE 242: Righ
ts of Legitimate Labor Organizations ARTICLE 277: Miscellaneous Provisions
C, Special Groups of Employees .......................................................

............ 37 1. Manegerial and Supervisory Employees 2. Confidential Employee
s 3. Security Guards 4. Members of Cooperatives 5. Members of Iglesia ni Kristo
6. Government Employees i. ii. ARTICLE 244: Rights of Employees in the Public Se
rvice ARTICLE 276: Government Employees
7. Employees of International Organizations D. Acquisition and Retention of Memb

ership; Union Security Agreements........ 39 1. ARTICLE 277: Miscellaneous Provisions
2. ARTICLE 248: Unfair Labor Practice of Employers E. Membership; Rights of Memb
ers.. ............................................................. 40 1. ARTICLE 241:
Rights and Conditions of Membership in a Labor Organization 2. ARTICLE 274: Visi
torial Powers
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4. Rights of Union Members i. ii. iii. iv. Political Right Deliberative and Deci
sion-Making Right Right Over Money Matters Right to Information
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v. Other Rights and Conditions Under Article 241 5. Elections Under Rule 12 of t
he Implementing Rules and Regulations See ANNEX F 6. Check-Offs and Assessments
II. UNFAIR LABOR PRACTICES. .............................................. 42 A.
Concept of Unfair Labor Practice ..............................................
.................. 42 B. Elements of Unfair labor Practice............................
.................................. 42 C. ARTICLE 248: Unfair Labor Practice of E
mployers ................................... 43 1. Interference 2. Yellow Dog Contract
3. Contracting Out 4. Company Domination of Union 5. Discrimination 6. Discrimin
ation Because of Testimony 7. Violation of the Duty to Bargain 8. Paid Negotiati
on 9. Violation of the CBA D. Relief in ULP Cases...................................
........................................................... 49 E. ARTICLE 249: U
nfair labor Practices of labor Organization ....................................
........... 50 1. Restraint or Coercion of labor Organization 2. Refusal to Barg
ain 3. Featherbedding and Make-Work Arrangements III. RIGHT TO COLLECTIVE BARGAI
NING ...........................................................................
... 51 A. Duty to Bargain Collectively ............................................
.................................. 51 1. Collective Bargaining Agreement 2. Bargai
ning Procedure under the Labor Code See ANNEX G 3. Violation of the Duty to Barg
ain Collectively
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5. Rules on Effectivity and Retroactivity of New CBA B. Bargaining Agent and Cer
tification Election Proceedings ................................................
... 54 1. Voluntary Recognition 2. Certification Election i. Procedure for Petit
ion for Certification Election
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See ANNEX H ii. Procedure for Conduct of Certification Election See ANNEX I C. B
ars to Certification Election .....................................................
.....................59 1. Contract Bar 2. Deadlock Bar 3. Negotiation Bar 4. Certi
fication Year Rule Bar D. Administration If Agreement; Grievance and Voluntary A
rbitration....................... 59 1. Establishments of Grievance Machinery 2. Pro
cedure in Handling Grievances See ANNEX J E. Labor Management Cooperation Scheme
s......................................................................... 61 IV
. STRIKES, LOCKOUTS AND CONCERTED ACTIONS.......................................
................. 61 A. Strike.. ....................................................
........................................................... 61 B. Lockout............
................................................................................
.................. 61 C. Notice of Strike or Lockout .................................
....................................... 62 D. Prohibited Activities During Strik
e or Lockouts. ............................................. 63 E. Injunction.. ..
................................................................................
.............. 63 F. Assumption of Jurisdiction by DOLE Secretary ..................
.................................. 63 G. Powers of the President Under Article 2
63 (g). ........................................................ 64 V. POST EMPLOYM
ENT ............................................................................
............................ 65 A. Regular, Casual, Probationary Employment .........
.............................. 65 1. Regular Employment 2. Casual Employment 3.
Fixed-Term Employment 4. Project Employment 5. Probationary Employment
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B. Security of Tenure.................................................................
.................... 67 1. ARTICLE 279: Security of Tenure C. Just Causes, Autho
rized Causes, Constructive Dismissal ................................... 67 1. ARTIC
LE 282: Just Causes for Termination by Employer 2. ARTICLE 283: Authorized Cause
s for Termination
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3. Constructive Dismissal 4. ARTICLE 284: Disease as Ground for Termination 5. A
RTICLE 285: Termination by Employee 6. ARTICLE 286: When Employment Not Deemed T
erminated D. Due Process.. .........................................................
.............................................. 70 1. ARTICLE 277 (b): Miscellane
ous Provisions E. Reliefs for Illegal Dismissal.......................................
..................................... 71 F. Retirement ...............................
...................................................................... 72 1. ART
ICLE 287: Retirement VI. DISPUTE SETTLEMENT.....................................
.................................................................. 72 A. Jurisdi
ction of the Different Agencies. ....................................................
........... 72 1. Bureau of Labor Relations 2. Labor Arbiters 3. NLRC 4. Med-Arb
iters/BLR 5. POEA 6. DOLE Regional Directors 7. NCMB See ANNEX L B. Procedure........
................................................................................
.................. 74 C. Appeal.. .................................................
................................... 75 1. Appeal of LAs Decision 2. Appeal Involv
ing Monetary Award 3. Appeal of Voluntary Arbitrators Decision 4. Appeal of BLRs D
ecision 5. Appeal of Regional Directors Decision Under Article 129 VII. PENAL PRO
VISIONS AND LIABILITIES ........................................................
..................... 77
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SOCIAL LEGISLATION
I.
THIRTEENTH MONTH PAY (P.D. 851).................................................
............................ 78
II. ANTI-SEXUAL HARASSMENT ACT OF 1995 (RA 7877)................................
.................... 78 III. EXECUTIVE ORDER NO. 180............................
................................................................... 79 IV. SALIE
NT PROVISIONS OF THE SSS LAW AND GSIS LAW See ANNEX O V. NATIONAL HEALTH INSURAN
CE ACT OF 1995 (R.A. 7875)............................................ 80
ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law & Social Legislation SUMMER REVIEWE
R
LABOR STANDARDS
I. GENERAL PRINCIPLES Labor Code principal labor law of the country. But even no
w, there are Labor Laws that are not found in the Labor Code. Social Legislation
the promotion of the welfare of all the people, the adoption by the government
of measures calculated to insure economic stability of all the component element
s of society thru the maintenance of proper economic and social equilibrium in t
he interrelations of the members of the community, constitutionally, thru the ad
option of measures legally justifiable, or extra-constitutionally, thru the exer
cise of powers underlying the existence of all governments, on the time honored
principle of salus populi esta suprema lex (Calalang v. Williams, 02 December 19
40) Social Justice humanization of laws and the equalization of social and econo
mic forces by the State so that justice in its rational and objective secular co
nception may at least be approximated Labor Standards sets out the minimum terms
, conditions, and benefits of employment that employers must provide or comply w
ith and to which employees are entitled as a matter of legal right Labor Relatio
ns defines the status, rights and duties, as well as the institutional mechanism
s that govern the individual and collective interactions between employers, empl
oyees and their representatives Art. 3. Declaration of basic policy
Afford prote
ction to labor Promote full employment
Ensure equal work opportunities regardles
s of sex, race, or creed QuickTimebetween and a
Regulate the relations workers an
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Ass
ure workers rights to self-organization, collective bargaining, security of tenur
e, and just and humane conditions of work Seven basic rights of workers guarante
ed by the Constitution: 1. right to organize 2. to conduct collective bargaining
or negotiation with management
3. to engage in peaceful concerted activities, including strike in accordance wi
th law 4. to enjoy security of tenure 5. to work under humane conditions 6. to r
eceive a living wage 7. to participate in policy and decision-making processes a
ffecting their rights and benefits as may be provided by law. Art. 4. Constructi
on in favor of labor When the interest of labor and capital collide, the heavier
influence of capital should be counterbalanced with the sympathy and compassion
of law for the less privileged workers. But protection to labor does not mean o
ppression or destruction of capital. The employers act will be sustained when it
is in the right. [Eastern Shipping Lines v. POEA, 166 SCRA 523 (1998)]
Court dec
isions adopt a liberal approach that favors the exercise of labor rights. The ma
ndate is simply to resolve doubt in favor of labor. If there is no doubt in impl
ementing and interpreting the law, labor will enjoy no built-in advantage and th
e law will have to be applied as it is.
When the subject matter is covered by th
e Labor Code, doubts which involve implementation and interpretation of labor la
ws should be resolved in favor of labor, even if the question involves Rules of
Evidence. Management Rights / Prerogative except as limited by special laws, an
employer is free to regulate, according to his own discretion and judgment, all
aspects of employment, including hiring, work assignments, working methods, time
, place and manner of work, tools to be used, processes to be followed, supervis
ion of workers, working regulations, transfer of employees, work supervision, la
y-off of workers and the discipline, dismissal and recall of workers Capitol Med
ical Center, Inc. v. Meris (16 September 2005) As long as the companys exercise o
f the same is exercised in good faith for the advancement of the employers intere
st, and not for the purpose of defeating or circumventing the rights of the empl
oyees under special laws or valid agreements, the courts will uphold them.
Adviser: Atty. Marlon J. Manuel; Head: Ryan Quan; Understudy: Kate Sabado; Labor
Standards: Kukay Malabanan; Labor Relations: Peewee Estrella; Social Legislation
: Binkki Hipolito
Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 200
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Philippine Blooming Mills Employees Association v. Philippine Blooming Mills, GR
No. L-31195, 05 June 1973 The primacy of human rights freedom of expression, of
peaceful assembly and of petition for redress of grievances over property right
s has been sustained. PAL v. NLRC, GR No. 85985 (1993) The exercise of managemen
t prerogatives is not unlimited. A line must be drawn between management preroga
tives regarding business operations per se and those which affect the rights of
employees. In treating the latter, management should see to it that its employee
s are at least properly informed of its decisions and modes of action. Wages are
defined as remuneration or earnings, however designated, capable of being expre
ssed in terms of money, whether fixed or ascertained on a time, task, piece or c
ommission basis, or other method of calculating the same, which is payable by an
employer to an employee under a written or unwritten contract of employment for
work done or to be done, or for services rendered or to be rendered, and includ
ed the fair and reasonable value, as determined by the Secretary of Labor, of bo
ard, lodging, or other facilities customarily furnished by the employer to the e
mployee. [Ruga v. NLRC, 181 SCRA 266 (1990)] 2. Hiring employment relation arise
s from contract of hire, express or implied [Ruga v. NLRC, 181 SCRA 266 (1990)]
Selection and engagement of the workers rests with the employers Not a conclusiv
e test since it can be avoided by the use of subcontracting agreements or other
contracts other than employment contracts 3. Firing disciplinary power exercised
by employer over the worker and the corresponding sanction imposed in case of v
iolation of any of its rules and regulations 4. Control, not only over the end p
roduct / RESULT of the work, but more importantly, control over the MEANS throug
h which the work is accomplished. (most essential element; without it, there is
no EER) B. Economic Relations Test a subordinate / alternative test. Existing ec
onomic conditions between the parties are used to determine whether EER exists.
1. payment of PAG-IBIG Fund contributions 2. payment / remittance of contributio
ns to the State Insurance Fund 3. deduction of withholding tax 4. deduction / re
mittance of SSS contributions Insular Life Assurance Co., Ltd. v. NLRC, GR No. 1
19930, 12 March 1998 The employment status of a person is defined and prescribed
by law and not by what the parties say it should be. Algon Engineering Construc
tion Corp. v. NLRC, GR No. 83402, 06 October 1997 No particular evidence is requ
ired to prove the existence of an EER. All that is necessary is to show that the
employer is capable of exercising control over the employee. In labor disputes,
it suffices that
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Art. 5. Rules and regulations Department of Labor and Employment (DOLE)

Lead age
ncy in enforcing labor laws and it possesses rule-making power in the enforcemen
t of the Code But a rule or regulation that exceeds the Departments rule-making a
uthority is void. Art. 6. Applicability of Labor Code
Applies alike to all worke
rs, except as otherwise provided by law, whether agricultural or nonagricultural
. Applies to a government corporation incorporated under the Corporation Code
II. EMPLOYER EMPLOYEE RELATIONSHIP (EER) A. ELEMENTS OF RELATIONSHIP Jurisprudent
ial Tests to Determine Existence of EER: A. The employer has the ability (need n
ot be actual) to exercise control over the following: 1. Payment of Wages QuickT
ime and a
payment TIFF of (Uncompressed) compensation way of decompressor by are
needed to see this picture. commission does not militate against the conclusion
EER exists. Under Art. 97 of the Labor Code, "wage" shall mean "however designat
ed, capable of being expressed in terms of money, whether fixed or ascertained o
n a time, task, price or commission basis" (Insular Life Assurance Co., Ltd. V. N
LRC, GR No.119930, 12 March 1998)
7
there be a causal connection between the claim asserted and the EER. Control of
the employee s conduct is commonly regarded as the most crucial and determinativ
e indicator of the presence or absence of an employer-employee relationship. Aur
ora Land Projects Corp. v. NLRC, GR No. 114733, 02 January 1997 Whenever the exi
stence of EER is in dispute, four elements constitute the reliable yardstick (fo
urfold test); (a) the selection and engagement of the employee; (b) the payment
of wages; (c) the power of dismissal; and (d) the employer s power to control th
e employee s conduct. It is the so-called "control test," and that is whether th
e employer controls or has reserved the right to control the employee not only a
s to the result of the work to be done but also as to the means and methods by w
hich the same is to be accomplished, which constitute the most important index o
f the existence of the employer-employee relationship Stated otherwise, an EER e
xists where the person for whom the services are performed reserves the right to
control no only the end to be achieved but also the means to be used in reachin
g such end. Filipinas Broadcasting Network, Inc. v. NLRC, GR No. 118892, 11 Marc
h 1998 There could be no EER where "the element of control is absent; where a pe
rson who works for another does so more or less at his own pleasure and is not s
ubject to definite hours or conditions of work; and in turn is compensated accor
ding to the result of his efforts and not the amount thereof, we should not find
that the relationship of employeremployee exists." Dy Keh Beng v. International
Labor, GR No. L32245, 25 May 1979 It should be borne in mind that the control t
est calls merely for the existence of the right to control the manner of doing t
he work, not the actual exercise of the right. AFP Mutual Benefit Association v.
NLRC, GR No. 102199, 28 January 1997 QuickTime and a is control. The However, no
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re. fact that private respondent was required to solicit business exclusively fo
r petitioner could hardly be considered as control in labor jurisprudence. Under
Memo Circulars No. 2-81 and 2-85 issued by the Insurance Commissioner, insuranc
e agents are barred from serving more than one insurance company, in order to pr
otect the public and to enable insurance companies to exercise exclusive supervi
sion over their agents in their solicitation work. Thus, the exclusivity restric
tion clearly springs from a regulation issued by the Insurance Commission, and n
ot from an intention by petitioner to establish control over the method and mann
er by which private respondent shall accomplish his work. This feature is not me
ant to change the nature of the relationship between the parties, nor does it ne
cessarily imbue such relationship with the quality of control envisioned by the
law. So too, the fact that private respondent was bound by company policies, mem
o/circulars, rules and regulations issued from time to time is also not indicati
ve of control. With regard to the territorial assignments given to sales agents,
this too cannot be held as indicative of the exercise of control over an employ
ee. Further, not every form of control that a party reserves to himself over the
conduct of the other party in relation to the services being rendered may be ac
corded the effect of establishing an employer-employee relationship. Ruga v. NLR
C, 181 SCRA 266 (1990) The employer-employee relationship between the crew membe
rs and the owners of the fishing vessels engaged in deep-sea fishing is merely s
uspended during the time the vessels are drydocked or undergoing repairs or bein
g loaded with the necessary provisions for the next fishing trip. The said rulin
g is premised on the principle that all these activities i.e., drydock, repairs,
loading of necessary provisions, form part of the regular operation of the comp
any fishing business. B. INDEPENDENT CONTRACTORS AND LABOR-ONLY CONTRACTORS Inde
pendent Contractors has sufficient substantial capital OR investment in machiner
y, tools or equipment directly or intended to be related to the job contracted c
arries an independent business different from the employers undertakes to perform
the job under its own account and responsibility, FREE from the principals contr
ol NO EER except when the contractor or subcontractor fails to pay the employees
wages. Labor Only Contractors has NO substantial capital OR investment in the fo
rm of machinery, tools or equipment
has no independent business performs activities directly related to the main bus
iness of the principal Principal treated as direct employer of the person recrui
ted in all instances (contractor is deemed
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LIMITED liability (principal solidarily liable with contractor or subcontractor
only when latter fails to comply with requirements as to unpaid wages and other
labor standards violations. PERMISSIBLE agent of the principal) Principals liabil
ity extends to all rights, duties and liabilities under labor standard laws incl
uding the right to self-organization 2. The employees recruited, supplied or pla
ced by such contractor or subcontractor are performing activities which are dire
ctly related to the main business of the principal; or 3. The contractor does no
t exercise the right to control over the performance of the work of the contract
ual employee. Substantial capital or investment capital stocks and subscribed ca
pitalization in the case of corporations, tools, equipment, implements, machiner
ies and work premises, actually and directly used by the contractor or subcontra
ctor in the performance or completion of the job, work or service contracted out
. Right to Control right reserved to the person for whom the services of the con
tractual workers are performed, to determine not only the end to be achieved, bu
t also the manner and means to be used in reaching that end.
The test to determi
ne whether one is a job or labor-only contractor is to look into the elements of
a job contractor. If ALL elements of a job contractor are present, then he is a
job contractor. Otherwise, he is a labor-only contractor. Absent one of the ele
ments for being a job contractor, the person is a labor-only contractor. On the
other hand, not all requisites of a laboronly contractor need to be present. As
long as any one of the elements is present, then the person is a labor-only cont
ractor.
PROHIBITED
Contracting or subcontracting an arrangement whereby a principal agrees to put o
ut or farm out with a contractor or subcontractor the performance or completion
of a specific job, work or service within a definite or predetermined period, re
gardless of whether such job, work or service is to be performed or completed wi
thin or outside the premises of the principal Contractor or subcontractor any pe
rson or entity engaged in a legitimate contracting or subcontracting arrangement
Contractual employee one employed by a contractor or subcontractor to perform o
r complete a job, work or service pursuant to an arrangement between the latter
and a principal Principal any employer who puts out or farms out a job, service
or work to a contractor or subcontractor Permissible Job Contracting; Conditions
a. The contractor carries on an independent business; b. Undertakes the contrac
t work on his own account under his own responsibility according to his own mann
er and method, free from the control and direction of his employer or principal
in all matters connected with the performance of the work except as to the resul
ts thereof; and c. The contractor has substantial capital or investment in the f
orm of tools, equipment, machineries, work premises, and other materials which a
re necessary in the conduct of his QuickTime and a business. TIFF (Uncompressed)
decompressor
are needed to see this picture.
Posting of Bond an employer or indirect employer may require the contractor or s

ubcontractor to furnish a bond equal to the cost of labor under contract, on con
dition that the bond will answer for the wages due the employees should the cont
ractor or subcontractor, as the case may be, fail to pay the same Civil liabilit
y of employer and contractors Every employer or indirect employer shall be joint
ly and severally liable with his contractor or sub-contractor for the unpaid wag
es of the employees of the latter. Such employer or indirect employer may requir
e the contractor or sub-contractor to furnish a bond equal to the cost of labor
under contract on condition that the bond will answer for the wages due the empl
oyees should the contractor or subcontractor, as the case may be, fail to pay th
e same Liability of the principal to the employee in cases of illegal dismissal
Page 4 of 83
Labor-only Contracting an arrangement where the contractor or subcontractor mere
ly recruits, supplies or places workers to perform a job, work or service for a
principal, and any of the following elements are present: 1. The contractor or s
ubcontractor does not have substantial capital or investment which relates to th
e job, work or service to be performed
7
1. Joint and several with the employer, but with the right to reimbursement from
the employercontractor 2. Wage differentials only to the extent where the emplo
yee performed the work under the principal. 3. Separation pay and backwages, onl
y when the principal has some relation to the termination (such as when he consp
ired to terminate) (Rosewood Processing Inc. v. NLRC, GR Nos. 116476-84, 21 May
1998) NOTE: this ruling is an obiter and made an unjustified interpretation of A
rt. 109 of the Labor Code. Art. 109 makes the principal liable in illegal dismis
sal WON there was fault on his part. Prohibited Acts (DO 18-02): a. Contracting
out of a job, work or service when not done in good faith and not justified by t
he exigencies of the business and the same results in the termination of regular
employees and reduction of work hours or reduction or splitting of the bargaini
ng unit b. Contracting out of work with a "cabo" as defined in Section 1 (ii), R
ule I, Book V of these Rules. "Cabo" refers to a person or group of persons or t
o a labor group which, in the guise of a labor organization, supplies workers to
an employer, with or without any monetary or other consideration whether in the
capacity of an agent of the employer or as an ostensible independent contractor
c. Taking undue advantage of the economic situation or lack of bargaining stren
gth of the contractual employee, or undermining his security of tenure or basic
rights, or circumventing the provisions of regular employment, in any of the fol
lowing instances: i. In addition to his assigned functions, requiring the contra
ctual employee to perform functions which are currently being performed by the r
egular employees of the principal or of the contractor or subcontractor; QuickTi
me ii. Requiring him to sign, and asa a precondition to TIFF (Uncompressed) decom
pressor are needed to see this picture. employment or continued employment, an a
ntedated resignation letter; a blank payroll; a waiver of labor standards includ
ing minimum wages and social or welfare benefits; or a quitclaim releasing the p
rincipal, contractor or subcontractor from any liability as to payment of future
claims; and iii. Requiring him to sign a contract fixing the period of employme
nt to a term shorter than the term of the contract between the principal and the
contractor or subcontractor, unless the latter contract is divisible into phase
s for which substantially different skills are required and this is made known t
o the employee at the time of engagement
d. Contracting out of a job, work or service through an in-house agency which re
fers to a contractor or subcontractor engaged in the supply of labor which is ow
ned, managed or controlled by the principal and which operates solely for the pr
incipal e. Contracting out of a job, work or service directly related to the bus
iness or operation of the principal by reason of a strike or lockout whether act
ual or imminent f. Contracting out of a job, work or service being performed by
union members when such will interfere with, restrain or coerce employees in the
exercise of their rights to self organization as provided in Art. 248 (c) of th
e Labor Code, as amended
Existence of EER The contractor or subcontractor shall be considered the employe
r of the contractual employee for purposes of enforcing the provisions of the La
bor Code and other social legislation.
The principal, however, shall be solidari
ly liable with the contractor in the event of any violation of any provision of
the Labor Code, including the failure to pay wages. The principal shall be deeme
d the employer of the contractual employee in any of the following cases as decl
ared by a competent authority: a. where there is labor-only contracting; or b. w
here the contracting arrangement falls within the prohibited acts
Registration of Contractors and Subcontractors

The registration of contractors a
nd subcontractors shall be necessary for purposes of establishing an effective l
abor market information and monitoring.
Failure to register shall give rise to t
he presumption that the contractor is engaged in labor-only contracting. Neri v.
NLRC, GR Nos. 97008-09, 23 July 1993

Page 5 of 83
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The law does not require both substantial capital and investment in the form of
tools, equipment and machineries. This is clear from the use of the conjunction o
r. If the intention was to require the contractor to prove that he has both capit
al and the requisite investment, then the conjunction and should have been used. W
hile these services (janitorial, security and even technical or other specific s
ervices) may be considered directly related to the principal business of the emp
loyer, nevertheless, they are not necessary in the conduct of the principal busi
ness of the employer. Lapanday Agricultural Devt Corp. v. CA, GR No. 112139, 31 J
anuary 2000 It will be seen from the above provisions that the principal (petiti
oner) and the contractor (respondent) are jointly and severally liable to the em
ployees for their wages. The joint and several liability of the contractor and t
he principal is mandated by the Labor Code to assure compliance with the provisi
ons therein including the minimum wage. The contractor is made liable by virtue
of his status as direct employer. The principal, on the other hand, is made the
indirect employer of the contractor s employees to secure payment of their wages
should the contractor be unable to pay them. Even in the absence of an EER, the
law itself establishes one between the principal and the employees of the agenc
y for a limited purpose i.e. in order to ensure that the employees are paid the
wages due them. Several factors to consider to Determine Whether Contractor is c
arrying on an independent business: 1. nature and extent of work 2. skill requir
ed 3. term and duration of the relationship 4. right to assign the performance o
f specified pieces of work 5. control and supervision of worker 6. power of empl
oyer with hiring, firing, and payment of wages 7. control of the premises 8. dut
y to supply premises, tools, appliances, QuickTime and a TIFF (Uncompressed) deco
mpressor materials and labor are needed to see this picture. 9. mode, manner, te
rms of payment (Vinoya v. NLRC, GR No. 126286, 02 February 2000) C. SPECIAL CASE
S 1. Working scholars no EER between students on one hand, and schools, colleges
or universities on the other, where: a. there is written agreement between them
under which the former agree to work for the latter in exchange for the privile
ge to study free of charge b. provided, the students are given real opportunitie
s, including such facilities as may be reasonable and necessary to finish their
chosen courses under such agreement 2. Resident physicians in training There is
EER between resident physicians and the training hospital unless: a. There is a
training agreement between them b. The training program is duly accredited or ap
proved by the appropriate government agency.
III. PRE-EMPLOYMENT A. PRINCIPLES AND DEFINITIONS JMM Promotion & Management Inc
. v. CA, GR No. 120095, 05 August 1996 The POEA Rules are clear. A reading there
of readily shows that in addition to the cash and surety bonds and the escrow mo
ney, an appeal bond in an amount equivalent to the monetary award is required to
perfect an appeal from a decision of the POEA. Obviously, the appeal bond is in
tended to further insure the payment of the monetary award in favor of the emplo
yee if it is eventually affirmed on appeal to the NLRC. Overseas recruiters are
subject to more stringent requirements because of the special risks to which our
workers abroad are subjected by their foreign employers, against whom there is
usually no direct or effective recourse. The overseas recruiter is solidarily li
able with the foreign employer. The bonds and the escrow money are intended to i
nsure more care on the part of the local agent in its choice of the foreign prin
cipal to whom our overseas workers are to be sent. Every intendment of the law m
ust be interpreted in favor of the working class, conformably to the mandate of
the Constitution. By sustaining rather than annulling the appeal bond as a furth
er protection to the claimant employee, this Court affirms once again its commit
ment to the interests of labor. PNB v. Cabansag, GR No. 157010, 21 June 2005 Not
eworthy is the fact that respondent likewise applied for and secured an Overseas
Employment Certificate from the POEA through the Philippine Embassy in Singapor
e. The Certificate, issued on March 8, 1999, declared her a bona fide contract w
orker for Singapore. Under Philippine law, this
Page 6 of 83
7
document authorized her working status in a foreign country and entitled her to
all benefits and processes under our statutes. Thus, even assuming that she was
considered at the start of her employment as a direct hire governed by and subject
to the laws, common practices and customs prevailing in Singapore she subsequen
tly became a contract worker or an OFW who was covered by Philippine labor laws
and policies upon certification by the POEA. At the time her employment was ille
gally terminated, she already possessed the POEA employment Certificate. Whether
employed locally or overseas, all Filipino workers enjoy the protective mantle
of Philippine labor and social legislation, contract stipulations to the contrar
y notwithstanding. This pronouncement is in keeping with the basic public policy
of the State to afford protection to labor, promote full employment, ensure equ
al work opportunities regardless of sex, race or creed, and regulate the relatio
ns between workers and employers. B. RECRUITMENT AND PLACEMENT 1. Definition: Il
legal Recruitment; Prohibited Acts Recruitment and Placement any act of (CETCHUP
) canvassing, enlisting, transporting, contracting, hiring, utilizing or procuri
ng workers and includes (CRAP) includes contract services, referrals, advertisin
g for employment, promising for employment locally or abroad, whether for profit
or not: Provided, That any person or entity which, in any manner, offers or pro
mises for a fee, employment to two or more persons shall be deemed engaged in re
cruitment and placement Prohibited Practices 1. To charge or accept, directly or
indirectly, any amount greater than that specified in the schedule of allowable
fees prescribed by the Secretary of Labor, or to make a worker pay any amount g
reater than that actually received by him as a loan or advance 2. To furnish or
publish any false notice or information or document in relation to recruitment Q
uickTime and a (Uncompressed) decompressor or employmentTIFF are needed to see th
is picture. 3. To give any false notice, testimony, information or document or c
ommit any act of misrepresentation for the purpose of securing a license or auth
ority under this Code 4. To induce or attempt to induce a worker already employe
d to quit his employment in order to offer him to another unless the transfer is
designed to 11. liberate the worker from oppressive terms and conditions of emp
loyment To influence or to attempt to influence any person or entity not to empl
oy any worker who has not applied for employment through his agency To engage in
the recruitment or placement of workers in jobs harmful to public health or mor
ality or to the dignity of the Republic of the Philippines To obstruct or attemp
t to obstruct inspection by the Secretary of Labor or by his duly authorized rep
resentatives To fail to file reports on the status of employment, placement vaca
ncies, remittance of foreign exchange earnings, separation from jobs, departures
and such other matters or information as may be required by the Secretary of La
bor To substitute or alter employment contracts approved and verified by the Dep
artment of Labor from the time of actual signing thereof by the parties up to an
d including the periods of expiration of the same without the approval of the Se
cretary of Labor To become an officer or member of the Board of any corporation
engaged in travel agency or to be engaged directly or indirectly in the manageme
nt of a travel agency To withhold or deny travel documents from applicant worker
s before departure for monetary or financial considerations other than those aut
horized under this Code and its implementing rules and regulations Failure to ac
tually deploy without valid reason as determined by DOLE Failure to reimburse ex
penses incurred by the worker in connection with his documentation and processin
g for purposes of deployment, in cases where the deployment does not actually ta
ke place without the workers fault
5.
6.
7.
8.
9.
10.
12. 13.
Art. 38. Illegal recruitment
Any recruitment activities, including the prohibite
d practices enumerated under Article 34 of this Code, to be undertaken by non-li
censees or nonholders of authority, shall be deemed illegal and punishable under
Article 39 of this Code. The Department of Labor and Employment or any law enfo
rcement officer may initiate complaints. People v. Panis, 142 SCRA 664 (1986) Th
e number of persons dealt with is not the basis in determining WON an act consti
tutes recruitment and placement. Any of the acts mentioned in Article 13 (b) wil
l constitute recruitment and placement even if only one prospective worker is in
volved. In that case, a license or authority from POEA is needed.
Page 7 of 83
7
The proviso about two or more persons merely lays down a rule of evidence: where f
ee is collected because of a promise or offer of employment to two or more prosp
ective workers, the individual or entity dealing with them shall be deemed to be
engaged in the act of recruitment and placement. The words shall be deemed create
that presumption. RA 8042 Overseas Filipinos and Overseas Migrant Workers Act a
pplies to recruitment for overseas employment Illegal Recruitment (Sec. 6):
Any
recruitment activity committed by nonlicensees / non-holders of authority; OR Pr
ohibited Acts (same as Art. 34 of LC) committed by any person, whether a nonlice
nsee, non-holder, licensee or holder of authority. Added the following in the li
st of Prohibited Acts: 1. fail to actually deploy without valid reason; 2. fail
to reimburse expenses incurred by the worker in connection with his/her document
ation and processing for purposes of deployment, in cases where the deployment d
oes not actually take place without the workers fault. 1. By a syndicate carried
out by a group of 3 or more persons confederating with one another 2. In large
scale committed against 3 or more persons individually or as a group People v. F
ernandez, et. al., 07 March 2002 These categories are separate or independent ca
tegories. If there is only one complainant in several complaints, there is no il
legal recruitment in large. But where there are three conspiring recruiters, the
re is illegal recruitment by a syndicate. Non-licensee / Non-Holder of authority
any person, corporation or entity which has not been issued a valid license or
authority to engage in recruitment and placement by the Secretary of Labor, or w
hose license or authority has been suspended, revoked or cancelled by the POEA o
r the Secretary Who are liable:
Principals, accomplices, and accessories For jur
idical persons, the officers having control, management or direction of their bu
siness shall be liable.
Where illegal recruitment is proved but the elements of l
arge scale or syndicate are absent, the accused can be convicted only of simple ille
gal recruitment. (People v. Sagun, GR No. 110554, 19 February 1999) Illegal recru
itment (IR) involving Economic Sabotage (Art. 38 (b) Labor Code & Sec. 10 RA 804
2): 1. IR committed by syndicate carried out by a group of 3 or more persons con
spiring and/or confederating with one another in carrying out any unlawful or il
legal transaction, enterprise or scheme falling under illegal recruitment 2. IR
committed in large scale - committed against 3 or more persons individually or a
s a group Estafa a person convicted for illegal recruitment under Labor Code can
be convicted for violation of the Revised Penal Code provisions on estafa provi
ded the elements of the crime are present. Art. 39 (c) of Labor Code unconstitut
ional Only a Judge may issue warrants of search and arrest. The labor authoritie
s must go through the judicial process. Venue filed with the RTC of the province
or city, Where offense committed; OR
Where offended party actually resides at t
he time of the commission of the offense
Labor Code local recruitment and employment Illegal Recruitment (Art. 38): Any r
ecruitment activity including Prohibited Acts under Art. 34 committed by nonlice
nsees or nonholders of authority.
Elements: 1. That the offender has no valid li
cense or authority required by law to enable one to lawfully engage in recruitme
nt and placement of workers; and, 2. That the offender undertakes either any act
ivity within the meaning of recruitment and placement defined under Article 13(b
), or any prohibited practices enumerated under Article 34.
To prove illegal recruitment, it must be shown that the accused gave the distinc
t impression that QuickTime and a TIFF (Uncompressed) decompressor he had the pow
er or ability to send complainants are needed to see this picture. abroad for wo
rk such that the latter were convinced to part with their money in order to be d
eployed. A person is guilty of illegal recruitment when he gives the impression
that he has the power to send workers abroad.
Illegal recruitment involving economic sabotage
Page 8 of 83
7
Prescriptive Periods:
Simple IR within 5 years from time IR happened Economic Sa
botage within 20 years from time IR happened People v. Diaz, 259 SCRA 441 (1996)
The acts of the appellant, which were clearly described in the lucid testimonie
s of the three victims, such as collecting from each of the complainants payment
for passport, medical tests, placement fee, plane tickets and other sundry expe
nses, promising them employment abroad, contracting and advertising for employme
nt, unquestionably constitute acts of large scale illegal recruitment. Aquino v.
CA, 204 SCRA 240 (1991) Receipt of payments, after the expiration of the licens
e, for services rendered before said expiration does not constitute illegal recr
uitment. Recruitment refers to the offering of inducements to qualified personne
l to enter a particular job or employment. The advertising, the promise of futur
e employment and other come-ons took place while Ms. Aquino was still licensed.
True, the payments for services rendered are necessary consequences of the appli
cations for overseas employment. However, it is asking too much to expect a lice
nsed agency to absolutely at the stroke of midnight stop all transactions on the
day its license expires and refuse to accept carry-over payments after the agen
cy is closed. In any business, there has to be a winding-up after it ceases oper
ations. The collection of unpaid accounts should not be the basis of a criminal
prosecution. The prosecution is based on the date of the prohibited activity, no
t on the payments being illegal exactions even if effected during the correct pe
riod. The payments are necessary in order to defray the expenses entailed in any
overseas contract of employment. They are intended for administrative and busin
ess expenses and for the travelling expenses of the applicants once cleared for
overseas travel. People v. Senoron, 267 SCRA 278 (1997) QuickTime and a According
to TIFF the Labor Code, it is not the (Uncompressed) decompressor are needed to
see this picture. issuance or signing of receipts for the placement fees that m
akes a case for illegal recruitment, but rather the undertaking of recruitment a
ctivities without the necessary license or authority. Absent any other participa
tion in the IR activities, mere receiving of placement fees or signing of receip
t do not constitute IR. Darvin v. CA, 292 SCRA 534 (1998)
Page 9 of 83
By themselves, procuring a passport, airline tickets and foreign visa for anothe
r individual, without more, can hardly qualify as recruitment activities. IR mus
t be proved beyond reasonable doubt. 2. Regulation of Recruitment and Placement
Activities Entities authorized to engage in recruitment and placement a. public
employment offices b. Philippine Overseas Employment Administration (POEA) c. pr
ivate recruitment entities d. private employment agencies e. shipping or manning
agents or representatives f. such other persons or entities as may be authorize
d by the DOLE Secretary g. construction contractors Is direct-hiring of OFWs all
owed? Why? No. Employers cannot directly hire workers for overseas employment ex
cept through authorized entities see (enumeration above).
The reason for the ban
is to ensure full regulation of employment in order to avoid exploitation. Fees
to be Paid by Workers: No worker shall be charged with any fee until employee:
(1) obtained work through recruiters efforts; and (2) worker has actually commenc
ed working. Placement fee in an amount equivalent to one months salary of the wor
ker and documentation costs are the ONLY AUTHORIZED PAYMENTS that may be collect
ed from a hired worker. Eastern Assurance and Surety Corp. v. Secretary of Labor
, 181 SCRA 110 (1990) POEA has the power to order refund of illegally collected
fees. Implicit in its power to regulate the recruitment and placement activities
of all agencies is the award of appropriate relief to the victims of the offens
es committed by the respondent agency or contractor. Such relief includes the re
fund or reimbursement of such fees as may have been fraudulently or otherwise il
legally collected, or such money, goods or services imposed and accepted in exce
ss of what is licitly prescribed. Nature of the liability of local recruitment a
gency and foreign principal 1. Local Agency is solidarily liable with foreign pr
incipal.
7
2. Severance of relations between local agent and foreign principal does not aff
ect liability of local recruiter. Joint and solidary liability of recruiter with
Foreign Principal
A recruitment agency is solidarily liable for the unpaid sala
ries of a worker it recruited for employment overseas.
Even if the recruiter and
the principal had already severed their agency agreement at the time employee w
as injured, the recruiter may still be sued for a violation of the employment co
ntract because no notice of the agency agreement s termination was given to the
employee. Catan v. NLRC, 160 SCRA 691 (1988) This must be so, because the obliga
tions covenanted in the recruitment agreement entered into by and between the lo
cal agent and its foreign principal are not coterminous with the term of such ag
reement so that if either or both of the parties decide to end the agreement, th
e responsibilities of such parties towards the contracted employees under the ag
reement do not at all end, but the same extends up to and until the expiration o
f the employment contracts of the employees recruited and employed pursuant to t
he said recruitment agreement. Otherwise, this will render nugatory the very pur
pose for which the law governing the employment of workers for foreign jobs abro
ad was enacted. Posting of cash bond by recruiter Capricorn Travel & Tours v. CA
, 184 SCRA 123 (1990) The requirement for the posting of a cash bond is also an
indispensable adjunct to the requirement that the agency undertakes to assume jo
int and solidary liability with the employer for all claims and liabilities whic
h may arise in connection with the implementation of the contract of overseas em
ployment and to guarantee compliance with existing labor and social legislation
of the Philippines and the country of employment. The undertaking to QuickTime an
d a TIFF (Uncompressed) decompressor assume joint and solidary liability and to
guarantee are needed to see this picture. compliance with labor laws, and the co
nsequent posting of cash and surety bonds, may be traced all the way back to the
constitutional mandate for the State to "afford full protection to labor, local
and overseas." The peculiar nature of overseas employment makes it very difficu
lt for the Filipino overseas worker to effectively go after his foreign employer
for employment-related claims and, hence, public policy dictates that, to affor
d overseas workers protection from unscrupulous employers, the recruitment or pl
acement agency in the Philippines be made to share in the employer s responsibil
ity. Stronghold Insurance Co. v. CA, 205 SCRA 605 (1992) The surety bond require
d of recruitment agencies is intended for the protection of our citizens who are
engaged for overseas employment by foreign companies. The purpose is to insure
that if the rights of these overseas workers are violated by their employers, re
course would still be available to them against the local companies that recruit
ed them for the foreign principal. The foreign principal is outside the jurisdic
tion of our courts and would probably have no properties in this country against
which an adverse judgment can be enforced. This difficulty is corrected by the
bond, which can be proceeded against to satisfy that judgment. Liability of sure
ty
In a surety bond, the surety unequivocally bound itself to answer for all lia
bilities which the POEA may adjudge or impose against the principal in connectio
n with the recruitment of Filipino seamen Stronghold Insurance Co. v. CA, 205 SC
RA 605 (1992) The surety agreed to answer for whatever decision might be rendere
d against the principal, whether or not the surety was impleaded in the complain
t and had the opportunity to defend itself. There is nothing in the stipulation
calling for a direct judgment against the surety as a co-defendant in an action
against the principal. Power to suspend or cancel any license or authority to re
cruit employees for overseas employment is concurrently vested with the POEA and
the Secretary of Labor.
The penalties of suspension and cancellation of license
or authority are prescribed for violations of the above quoted provisions, amon
g others. And the Secretary of Labor has the power under Section 35 of the law t
o apply these sanctions, as well as the authority, conferred by Section 36, not
only to restrict and regulate the recruitment and placement activities of all a
gencies, but also to promulgate rules and regulations to carry out the objecti
ves and implement the provisions governing said activities. Pursuant to this ru
lemaking power thus granted, the Secretary of Labor gave the POEA on its own ini
tiative or upon filing of a complaint or report or upon request for investigatio

n by any aggrieved
Page 10 of 83
7
person, (authority to) conduct the necessary proceedings for the suspension or c
ancellation of the license or authority of any agency or entity for certain enu
merated offenses including 1. the imposition or acceptance, directly or indirect
ly, of any amount of money, goods or services, or any fee or bond in excess of w
hat is prescribed by the Administration 2. any other violation of pertinent prov
isions of the Labor Code and other relevant laws, rules and regulations.
The Adm
inistrator was also given the power to order the dismissal of the case or the s
uspension of the license or authority of the respondent agency or contractor or
recommend to the Minister (now Secretary) the cancellation thereof. possible und
er the circumstances, the proper disposition thereof, upon prior arrangement wit
h the workers next-of-kin and the nearest Embassy or Consulate through the Office
of the Labor Attache 7. Assistance in the remittance of workers salaries, allowa
nces or allotments to his beneficiaries 8. Free and adequate lodging facilities
or compensatory food allowance at prevailing cost of living standards at the job
site 4. Dispute Settlement Regulatory power DOLE Secretary shall have the power
to restrict and regulate the recruitment and placement activities of all agencie
s within the coverage of this Title and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives and implement the
provisions of this Title. Jurisdiction of the POEA Original and exclusive jurisd
iction to hear and decide: a. all cases, which are administrative in character,
involving or arising out of violations of rules and regulations relating to lice
nsing and registration of recruitment and employment agencies or entities b. dis
ciplinary action cases and other special cases, which are administrative in char
acter, involving employers, principals, contracting partners and Filipino migran
t workers Money Claims of OFWs A worker dismissed from overseas employment witho
ut just, valid or authorized cause as defined by law or contract, is entitled to
: a. full reimbursement of the placement fee with interest at 12% per annum PLUS
b. his salary for unexpired portion of his employment contract OR salary for 3
3-months option
months for every year of the unexpired term, WHICHEVER IS LESSER
available ONLY IF the employment contract is for at least one year. If the cont
ract is shorter than that, the salary paid should be that for the unexpired port
ion.
3. Contracts Freedom to Stipulate Vir-Jen Shipping v. NLRC, 115 SCRA 347 (1992);
125 SCRA 577 (1983) The form contracts approved by the National Seamen Board [n
ow POEA] are designed to protect Filipino seamen not foreign shipowners who can
take care of themselves. The standard forms embody the basic minimums which must
be incorporated as parts of the employment contract. They are not collective ba
rgaining agreements or illimitable contracts which the parties cannot improve up
on or modify in the course of the agreed period of time. Terms and conditions an
d other benefits not provided by the minimum requirements are valid if the whole
employment package is more beneficial to the worker than the minimum. But the s
tipulations should not contradict law, public policy and morals.
Minimum Provisions for Contract 1. Guaranteed wages, for regular working hours a
nd overtime pay for services rendered beyond regular work hours in accordance wi
th the standards established by the Administration QuickTime and a 2. Free transp
ortation from point of hire to site of TIFF (Uncompressed) decompressor are need
ed to see this picture. employment and return 3. Free emergency medical and dent
al treatment and facilities 4. Just causes for the termination of the contract o
r of the services of the workers 5. Workmens compensation benefits and war hazard
protection 6. Repatriation of workers remains and properties in case of death t
o the point of hire, or if this is not
Jurisdiction over Money Claims Labor Arbiters have jurisdiction over all monetar
y claims of Overseas Filipino Workers arising from employer-employee relationshi
p or by virtue of any law or contract involving Filipino workers for overseas de
ployment, including claims for actual, moral, exemplary and other forms of damag
es.
Page 11 of 83
7
C. EMPLOYMENT OF ALIENS Requisites for Employment of Non-Resident Aliens 1. work
ing permit from DOLE 2. certification that there is no available Filipino willin
g and competent to do the job for the employer 3. alien must train at least two
Filipino understudies for such undertaking 4. FOR ENTERPRISES REGISTERED IN PREF
ERRED AREAS OF INVESTMENT employment permit issued upon recommendation of govern
ment agency charged with the supervision of said registered enterprise Exemption
from Permit 1. All members of Diplomatic Services and foreign government offici
als accredited with the Phil. Government 2. Members of international organizatio
ns with which the Phil. Government is a cooperating member (i.e. ADB, IRRI) 3. M
issionaries actually engaged in missionary work 4. All aliens granted exemption
by special laws and all those whose employment in the Phil. Have been determined
by the Sec. of Labor to be beneficial to national interest. Duration of Permit
Valid for 1 year from date of issuance, unless sooner revoked by the Secretary o
f Labor Renewable upon showing of good cause Non-transferable Other Prohibitions
Aliens shall not transfer to another job or change his employer without prior a
pproval of the secretary of labor
Non-resident alien shall not take up employmen
t in violation of the provisions of the Code. D. HUMAN RESOURCES & MANPOWER DEVE
LOPMENT
QuickTime and a 1. Government Machinery TIFF (Uncompressed) decompressor are need
ed to see this picture.
Power and Functions of TESDA Responsible for formulating, continuing, coordinati
ng, and fully integrating technical education and skills development policies, p
lans and programs 2. Apprenticeship and Learnership Learners Apprentices Persons
hired as
Practical What trainees in semitraining on the skilled and other job i
ndustrial Supplemented occupations by related
Nontheoretical apprenticeable inst
ruction May be learned Covered by a through practical written training on the ap
prenticeship job in a relatively agreement with short period of an individual ti
me employer or Shall not exceed entity 3 months
Needs DOLE approval
Shall not ex
ceed 6 months No experienced Only in highlyWhen workers technical may be availab
le industries hired
Prevent
Only in curtailment of apprenticeable employment occ
upations opportunities Not to create unfair competition in labor costs and lower
working standards List of learnable
At least 14 trades provided years old by TE
SDA Possesses vocational aptitude and capacity for tests
Ability to comprehend
A
bility to follow oral and written instructions Any form of employment requiring
beyond 3 mos. practical
Page 12 of 83
Policy It is the policy of the State to provide relevant, accessible, high quali
ty and efficient technical education and skills development in support of the de
velopment of high-quality Filipino middle-level manpower responsive to and in ac
cordance with Philippine development goals and priorities.
7
training on the job supplemented by related theoretical instruction
No list Requ
isites for a Valid Apprenticeship 1. qualifications of apprentice are met 2. the
apprentice earns not less than 75% of the prescribed minimum salary 3. apprenti
ceship agreement duly executed and signed 4. apprenticeship program approved by
the Sec. of Labor; otherwise, the apprentice shall be deemed as a regular employ
ee 5. period of apprenticeship not exceed 6 months
At the termination of the app
renticeship, the employer is not required to continue the employment. Employer m
ay not pay wage if the apprenticeship is a requirement for graduation required b
y the School required by the Training Program Curriculum requisite for Board exa
mination
V. WORKING CONDITIONS Coverage Book III of the Labor Code provides the condition
s or standards of employment. These standards apply only if there exists EER. Ex
cluded Employees 1. Government employees whether employed by the National Govern
ment or any of its political subdivisions, including those employed in GOCCs 2.
Management employees. If they meet ALL of the following conditions: i. Their pri
mary duty consists of the management of the establishment in which they are empl
oyed or of a department or subdivision thereof ii. They customarily and regularl
y direct the work of two or more employees therein iii. They have authority to h
ire or fire other employees of lower rank; or there suggestions and recommendati
ons as to the hiring and firing and as to the promotion or any other change of s
tatus of other employees are given particular weight 3. Officers or members of m
anagerial staff if they perform the following duties and responsibilities i. Pri
mary duty consists of performance of work directly related to management policie
s of employer ii. Customarily and regularly exercise discretion and independent
judgment iii. (a) Regularly and directly assist a proprietor or a managerial emp
loyee; (b) Execute under general supervision work along specialized or technical
lines requiring special training, experience or knowledge; (c) execute under ge
neral supervision special assignments and tasks; and iv. who do not devote more
than 20% of their hours worked in a workweek to activities which are not directl
y and closely related to the performance of work in i-iii above. 4. domestic ser
vants and persons in the personal service of another if i. they perform such ser
vices in the employers home which are usually necessary or desirable for the main
tenance and enjoyment thereof, or ii. minister to the personal comfort, convenie
nce, or safety of the employer as well as members of the employers household
Page 13 of 83
Venue of Apprenticeship Programs The plant, shop, premises of the employer or fi
rm concerned if the apprenticeship program is organized by an individual employe
r or firm. The premises of one or several firms designated for the purpose by th
e organizer of the program if such organizer is an association of employers, civ
ic groups and the like.
DOLE training center or other public training institutio
ns with which the Bureau has made appropriate arrangements. Contents of Learners
hip Agreement 1. names and addresses of employer and learner 2. occupation to be
learned and the duration of the training period which shall not exceed 3 months
3. wage of the learner which shall be at least 75% QuickTime and a of the applic
able minimum wage TIFF (Uncompressed) decompressor are needed to see this pictur
e. 4. commitment to employ the learner, if he so desires, as a regular employee
upon completion of training
A learner who has worked during the first two months
shall be deemed a regular employee if training is terminated by the employer be
fore the end of the stipulated period thorough no fault of the learner.
7
5. workers paid by results, including those who are paid on piece-work, takaw, p
akyaw or task basis 6. non-agricultural field personnel if they regularly perfor
m their duties away from the principal or branch office of place of business and
whose actual hours of work in the field cannot be determined with reasonable ce
rtainty. Managerial Employees refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a department or
subdivision thereof, and to other officers or members of the managerial staff F
ield Personnel non-agricultural employees who regularly perform their duties awa
y from the principal place of business or branch office of the employer and whos
e actual hours of work in the field cannot be determined with reasonable certain
ty Mercidar Fishing Corp. v. NLRC, 297 SCRA 440 (1998) Fishermen are not field p
ersonnel since throughout the duration of their work, they are under the effecti
ve control and supervision of the employer. Autobus Transport Systems Inc. v. Ba
utista, GR No. 156367, 16 May 2005) It is of judicial notice that along the rout
es that are plied by bus companies, there are its inspectors assigned in strateg
ic places, mandatory once-a-week car barn or shop day, drivers/conductors must b
e at a specific place at a specific time, as they generally observe prompt depar
ture and arrival from their point of origin to their point of destination. They
are under the constant supervision while in the performance of this work. Thus,
drivers/conductors are not field personnel. B. HOURS OF WORK
Work hours shall no
t exceed 8. Thus, part-time work, or a days work of less than 8 hours, not prohib
ited. goods and services or when there is lack of raw materials. Instead of work
ing 6 days a week, the employees will be regularly working for less than 6 days
but each workday exceeds 8 hrs. For the hours exceeding 8 in a workday, the empl
oyees waive their OT pay because, in return, they will no longer incur transport
and other expenses. Allowed on condition that it is freely agreed upon between
the employer and majority of the employees. Further, the arrangement should not
diminish the employees monthly or daily pay or their established employment benef
its. Extended workday in CWW should not exceed 12 hrs. Work exceeding 12 hrs. in
a day or 48 hrs. in a week should be considered OT. Should the work shift rever
t to 8 hrs., the reversion shall not constitute a diminution of benefits.
Hours of Work of Hospital and Clinic Personnel; Coverage 1. all hospitals and cl
inics situated in cities or municipalities with a population of 1 million or mor
e 2. all hospitals and clinics with a bed capacity of at least 100 Hospitals and
Clinics place devoted primarily to maintenance and operation of facilities for
the diagnosis, treatment, and care of individuals suffering from illness, diseas
e, injury or deformity or in need of obstetrical or other medical and nursing ca
re Regular Working Hours and Days of Hospital and Clinic Personnel
Not more than
8 hrs. in any one day and not more than 40 hrs. in any one week Not more than 5
days in a work week. The workweek may begin at any hour and on any day Overtime
Work of Hospital and Clinic Personnel May be scheduled to work for more than 5
days or 40 hrs. a week, provided employee is paid for overtime work
Overtime: ad
ditional compensation of regular wage + at least 30% thereof Considered as Compe
nsable Hours Worked 1. All time during which an employee required to be on duty
or to be at the employers premises or to be at a prescribed work place; and 2. Al
l time during which an employee suffered or permitted to work. 3. Rest periods o
f short duration during working hours.
Page 14 of 83
Work Day 24-hr period commencing from the time QuickTime and a an employee regula
rly starts to work regardless of TIFF (Uncompressed) decompressor are needed to
see this picture. whether the work is broken or continuous Calendar Day 24-hr. p
eriod commencing at 12 midnight and ending at 11:59 p.m. Compressed Work Week (C
WW)
Resorted to by the employer to prevent serious losses due to causes beyond h
is control, such as when there is substantial slump in demand for his
7
Principles in Determining Hours Worked 1. All hours are hours worked which the e
mployee is required to give to his employer, regardless of whether or not such h
ours are spent in productive labor or involve physical or mental exertion 2. An
employee need not leave the premises of the workplace in order that his rest per
iod shall not be counted, it being enough that he stops working, may rest comple
tely and may leave his workplace 3. If the work performed was necessary or it be
nefited the employer, or the employee could not abandon his work at the end of h
is normal working hours because he had no replacement, all time spent or such wo
rk shall be considered as hours worked, if the work was with the knowledge of hi
s employer or immediate supervisor. 4. The time during which an employee is inac
tive by reason of interruptions in his work beyond his control shall be consider
ed working time either if a. the imminence of the resumption of work requires th
e employee s presence at the place of work; or b. if the interval is too brief t
o be utilized effectively and gainfully in the employee s own interest. Waiting
Time Waiting time spent by an employee shall be considered as working time if 1.
waiting is an integral part of his work or 2. the employee is required or engag
ed by the employer to wait.
Working while on call - an employee who is required
to remain on call in the employer s premises or so close thereto that he cannot
use the time effectively and gainfully for his own purpose. Travel Time Travel t
hat is Travel Away All in Days from Home Work Normal travel from Time spent by T
ravel that QuickTime and a home to work an employee keeps an TIFF (Uncompressed)
decompressor are needed to see this picture. which is not work in travel as empl
oyee time part of his away from principal home activity, like overnight travel f
rom jobsite to jobsite during the workday GR: not Compensable Work time Travel F
rom Home to Work compensable because it is a normal incident of employment Excep
tions: 1. where employee made to work on an emergency call and travel is necessa
ry in proceeding to the workplace 2. travel is done through a conveyance provide
d by the employer 3. travel is done under the supervision and control of the emp
loyer 4. travel is done under vexing and dangerous circumstances and counted as
hours worked when it cuts across an employees workday because it substitutes for
the hours the employee should have been in the office
Univ. of Pangasinan Faculty Union v. Univ. of Pangasinan, 127 SCRA 691 (1984) Se
mestral break of teachers is compensable hours worked for it is a form of interr
uption beyond their control. Applies only for regular full-time teachers. Rada v
. NLRC, 205 SCRA 69 (1992) The fact that he picks up employees at certain specif
ied points in EDSA in going to the project site and drops them off at the same t
ime on his way back from the field office going home to Marikina is not merely i
ncidental to petitioners job as a driver. Said transportation arrangement had bee
n adopted not so much for the convenience of the employees, but primarily for th
e benefit of the employer. Since the assigned task of fetching and delivering em
ployees is indispensable and consequently mandatory, then the time required of a
nd used by petitioner in going from his residence to the field office and back s
hould be paid as overtime work. Lectures, Meeting, Trainings, Programs
Page 15 of 83
7
NOT considered working time if ALL the following conditions are met: 1. Attendan
ce is outside of the employee s regular working hours 2. Attendance is in fact v
oluntary 3. The employee does not perform any productive work during such attend
ance. daily wage is divided by 8 to get the hourly base rate. If employee is pai
d on a monthly salary basis, the daily rate is obtained by the following formula
: Daily Rate = monthly salary x 12_____ Total no of days considered paid in a ye
ar
Meal and Rest Periods GR: not less than 1 hour time-off for regular meals non-co
mpensable Except: meal period of not less than 20 mins. in the following cases c
ompensable hours worked: 1. Where the work is non-manual work in nature or does
not involve strenuous physical exertion 2. Where the establishment regularly ope
rates not less than 16 hours a day 3. In case of actual or impending emergencies
or there is urgent work to be performed on machineries, equipment or installati
ons to avoid serious loss which the employer would otherwise suffer 4. Where the
work is necessary to prevent serious loss of perishable goods
Rest periods or c
offee breaks running from 5 to 20 mins. considered as compensable working time.
To shorten meal time to less than 20 mins, is not allowed. If the so-called meal
time is less than 20 mins., it becomes only a rest period.
Permissible for the employer to stipulate that the employees monthly salary const
itutes payment for all the days of the month, including rest days and holidays,
where the employees monthly salary, when converted by the increased divisor into
its daily equivalent, would still meet minimum wage.
Regular Wage includes the cash wage only, without deduction on account of facili
ties provided by the employer Conditions to be entitled to OT pay 1. Actual rend
ition of OT work 2. Submission of sufficient proof that said work was actually p
erformed 3. OT work is with the knowledge and consent of the employer Compulsory
OT Work (provided employee paid the additional compensation required) 1. Countr
y at war/National or Local Emergency th 2. Completion of work started before the
8 hour and is necessary to prevent serious obstruction or prejudice to the busi
ness 3. Urgent work to be performed on Machines to avoid serious loss or damage
to employer 4. Necessary to Prevent loss of life/property or Imminent danger to
public safety 5. Necessary to prevent loss or damage to perishable goods 6. Nece
ssary to avail of favorable weather or environmental condition Undertime NOT Off
set by OT an employees regular pay rate is lower than the OT rate. Offsetting the
undertime hours against the OT hours would result in undue deprivation of the e
mployees extra pay for OT work.
Right to OT pay cannot be waived. But when the al
leged waiver of OT pay is in consideration of benefits and privileges which may
even exceed the OT pay, the waiver may be permitted.
Sime Darby Pilipinas v. NLRC, 289 SCRA 86 (1998) The employer may change the mea
l break from 30 mins. fully paid to 60 mins. without pay. For a full one hour un
disturbed lunch break, the employees can freely and effectively use this hour no
t only for eating but also for their rest and comfort. Since the employees are n
o longer required to work during this 1-hour lunch break, there is no more need
for them to be compensated for this period. Overtime Pay (OT) work exceeding eig
ht hours QuickTime and a within the workers TIFF 24-hour workday. Work within the
(Uncompressed) decompressor are needed to see this picture. Eees shift is not over
time.
OT on a Regular Day: regular wage + at least 25% thereof OT on a Holiday/Ee
es Rest Day: rate of 1st 8 hrs. on holiday/rest day + at least 30% thereof. Since
the OT work is considered hourly, the pay rate is computed also on per hour bas
is. The
Page 16 of 83
7
Night Shift Differential (NSD) every employee shall be paid a night shift differ
ential of not less than 10% of his regular wage for each hour of work performed
between ten oclock in the evening and six oclock in the morning. NSD = (10% x regu
lar wage/hr.) x no. of hrs. of work between 10 pm 6 am
If work done between 10 p
m and 6 am is OT work, the NSD should be based on the OT rate. the desired effec
tivity of the initial rest day so preferred. Where, however, the choice of the e
mployee as to his rest day based on religious grounds will inevitably result in
serious prejudice or obstruction to the operations of the undertaking and the em
ployer cannot normally be expected to resort to other remedial measures, the emp
loyer may so schedule the weekly rest day of his choice for at least 2 days in a
month.
Employees NOT Covered by NSD 1. Those of the government and any of its political
subdivisions, including government-owned and/or controlled corporations 2. Thos
e of retail and service establishments regularly employing not more than 5 worke
rs 3. Domestic helpers and persons in the personal service of another 4. Manager
ial employees 5. Field personnel and other employees whose time and performance
is unsupervised by the employer including those who are engaged on task or contr
act basis, purely commission basis, or those who are paid a fixed amount for per
forming work irrespective of the time consumed in the performance thereof C. RES
T PERIODS AND HOLIDAYS Weekly Rest Periods applies to all employers whether oper
ating for profit or not, including public utilities operated by private persons
Business on Sundays/Holidays All establishments and enterprises may operate or o
pen for business on Sundays and holidays provided that the employees are given t
he weekly rest day and the benefits as provided. Weekly Rest Day Every employer
shall give his employees a rest period of not less than 24 consecutive hrs. afte
r every 6 consecutive normal work days. QuickTime and a
TIFF (Uncompressed) decompressor are needed to see this picture.
Schedule of Rest Day a. Where the weekly rest is given to all employees simultan
eously the employer shall make known such rest period by means of a written noti
ce posted conspicuously in the work place at least one week before it becomes ef
fective b. Where the rest period is not granted to all employees simultaneously
and collectively the employer shall make known to the employees their respective
schedules of weekly rest through written notices posted conspicuously in the wo
rk place at least one week before they become effective Work on Rest Day Authori
zed (UAAP NAF) 1. In case of urgent work to be performed on machineries, equipme
nt or installations to avoid serious loss which the employer would otherwise suf
fer 2. In case of actual or impending emergencies caused by serious accident, fi
re, flood, typhoon, earthquake, epidemic or other disaster or calamity, to preve
nt loss of life or property, or in cases of force majeure or imminent danger to
public safety 3. In the event of abnormal pressure of work due to special circum
stances, where the employer cannot ordinarily be expected to resort to other mea
sures 4. To prevent serious loss of perishable goods 5. Where the nature of the
work is such that the employees have to work continuously for 7 days in a week o
r more, as in the case of the crew members of a vessel to complete a voyage and
in other similar cases 6. Under other analogous or similar circumstances 7. When
the work is necessary to avail of favorable weather or environmental conditions
where performance or quality of work is dependent thereon.
Other than the above
circumstances, no employee shall be required against his will to work on his sc
heduled rest day.
Page 17 of 83
Preference of employee The preference of the employee as to his weekly day of re
st shall be respected by the employer if the same is based on religious grounds.
The employee shall make known his preference to the employer in writing at leas
t 7 days before
7
When an employee volunteers to work on his rest day under other circumstances, h
e shall express such desire in writing, subject to payment of additional compens
ation. An employee shall be entitled additional compensation for work performed
on a Sunday only when it is his established rest day. vacations. Paid for the re
gular holidays during Christmas vacation 2. Employee paid by results (payment on
piecework) holiday pay shall not be less than his average daily earnings for th
e last 7 actual working days preceding the regular holiday; Provided, However, t
hat in no case shall the holiday pay be less than the applicable statutory minim
um wage rate 3. Seasonal workers may not be paid the required holiday pay during
off-season when they are not at work 4. Workers without regular working days en
titled to the benefits Double Holiday an employee who is entitled to holiday pay
should receive at least 200% of his basic wage even if he did not work on that
day, provided, he was present or on leave wit pay on the preceding work day. If
he worked, he is entitled to 300% of his basic wage. Holiday-Sunday a legal holi
day falling on a Sunday creates no legal obligation for the employer to pay extr
a, aside from the usual holiday pay, to its monthly-paid employees Successive Re
gular Holidays Where there are 2 successive regular holidays, like Holy Thursday
and Good Friday, an employee may not be paid for both holidays if he absents hi
mself from work on the day immediately preceding the first holiday, unless he wo
rks on the first holiday, in which case he is entitled to his holiday pay on the
second holiday. To be entitled to 2 successive holidays, employee must: (1) st
be present on the day immediately preceding the 1 holiday; or (2) be on leave wi
t pay. Holidays 1. New Years Day 2. Maundy Thursday 3. Good Friday 4. Araw ng Kag
itingan 5. Labor Day 6. Independence Day 7. Natl Heroes Day 8. Bonifacio Day 9. E
idul Fitr 10. Christmas Day 11. Rizal Day
Holidays with Pay; Applies to ALL employees. EXCEPT: 1. Those of the government
and any of the political subdivision, including government-owned and controlled
corporation 2. Those of retail and service establishments regularly employing le
ss than ten 10 workers 3. Domestic helpers and persons in the personal service o
f another 4. Managerial employees 5. Field personnel and other employees whose t
ime and performance is unsupervised by the employer including those who are enga
ged on task or contract basis, purely commission basis, or those who are paid a
fixed amount for performing work irrespective of the time consumed in the perfor
mance thereof. Absences
Employee on Leave of absence with pay entitled to the be
nefit provided herein Employee on leave of absence without pay on the day immedi
ately preceding a regular holiday may not be paid the required holiday pay if he
has not worked on such regular holiday
Where the day immediately preceding the
holiday is a non-working day in the establishment or the scheduled rest day of t
he employee, he shall not be deemed to be on leave of absence on that day, in wh
ich case he shall be entitled to the holiday pay if he worked on the day immedia
tely preceding the non-working day or rest day Temporary or Periodic Shutdown an
d Temporary Cessation of Work (i.e. yearly inventory, repair or cleaning of mach
ineries or equipment, etc) regular holidays falling within this period compensab
le
QuickTime and a TIFF (Uncompressed) decompressor Temporary or Periodic Shutdown a
nd Temporary are needed to see this picture. Cessation of Work Due to Business R
everses employer may not pay the regular holidays during this period
Jan. 1 Movable Date Movable Date April 9 May 1 June 12 Last Sun. of Aug. Nov. 30
Movable Date Dec. 25 Dec. 30
Holiday Pay of Certain Employees 1. Private School teachers including faculty me
mbers of college and universities may not be paid for the regular holidays durin
g semestral
Special Days 1. Special Non-Working Days 2. Special Public Holidays 3. Special N
ational Holiday
Page 18 of 83
Labor Law & Social Legislation Summer Reviewer ATENEO CENTRAL BAR
7
4. All Saints Day 5. Last Day of the Yr 6. Ninoy Aquino Day Nov.
21 D. SERVICE CHARGE & SERVICE INCENTIVE LEAVE Service Incentive
ery employee who has rendered at least 1 year of service shall be
yearly service incentive leave of 5 days with pay
Commutable to
lent if not used or exhausted at the end of the year.
OPERATIONS 200
1 Dec. 31 August
Leave (SIL) ev
entitled to a
its money equiva
Muslim Holidays while the regular holidays are observed in the whole country, th
e Muslim holidays, except Eidul Fitr, are observed only in specified areas. Musl
im employees working outside of the specified areas shall be excused from report
ing for work during the observance of the Muslim holidays as recognized by law,
without diminution of salary or wages during the period. Rules on Payment of Hol
iday Pay: 1. REGULAR HOLIDAYS a. If it is employees regular work day: - Unworked:
100% - Worked: st 200% 1 8 hrs excess of 8 hrs. + 30% of hourly rate on said da
y b. If it is employeees rest day: - Unworked: 100% - Worked: - + 30% of 200% 1st
8 hrs. excess of 8 hrs. + 30% of hourly rate on said day 2. SPECIAL DAYS a. Unw
orked no pay unless there is a favorable company policy, practice or CBA grantin
g payment of wages on special days even if unworked b. Worked
st 1 8 hrs.
At least 1 year service service for not less than 12 months, whether continuous
or broken reckoned from the date the employee started working, including authori
zed absences and paid regular holidays unless the working days in the establishm
ent as a matter of practice or policy, or that provided in the employment contra
ct is less than 12 months, in which case said period shall be considered as one
year Employees NOT Covered 1. Those of the government and any of its political s
ubdivisions, including government-owned and controlled corporations 2. Domestic
helpers and persons in the personal service of another 3. Managerial employees 4
. Field personnel and other employees whose performance is unsupervised by the e
mployer including those who are engaged on task or contract basis, purely commis
sion basis, or those who are paid a fixed amount for performing work irrespectiv
e of the time consumed in the performance thereof 5. Those who are already enjoy
ing the benefit herein provided 6. Those enjoying vacation leave with pay of at
least five days 7. Those employed in establishments regularly employing less tha
n ten employees Service Charges apply only to establishments collecting service
charges such as hotels, restaurants, lodging houses, night clubs, cocktail loung
e, massage clinics, bars, casinos and gambling houses, and similar enterprises,
including those entities operating primarily as private subsidiaries of the Gove
rnment Employees Covered all employees of covered employers, regardless of their
positions, designations or employment status, and irrespective of the method by
which their wages are paid EXCEPT to managerial employees
+ 30% of the daily rate of 100% excess of 8 hrs. + 30% of hourly rate on said da
y
c. Falling on employees rest day QuickTime and a and if worked (Uncompressed) deco
mpressor 8 are hrs. + 50% of the 1st TIFF needed to see this picture. daily rate
of 100% excess of 8 hrs. + 30% of hourly rate on said day 3. SPECIAL WORKING HO
LIDAYS only basic rate.
Page 19 of 83
7
Distribution
85% distributed equally among the covered employees
15% for the dis
position by management to answer for losses and breakages and distribution to ma
nagerial employees at the discretion of the management in the latter case
distri
buted and paid to the employees not less than once every 2 weeks or twice a mont
h at intervals not exceeding 16 days Supervisors share in the 15%. LC speaks of m
anagement, and not managerial employees. E. OTHERS Vacation Leave (VL) / Sick Leave
(SL) not required by law and depends on voluntary employer policy or collective
bargaining. Solo Parent Leave (RA 8972: Solo Parents Welfare Act of 2000) a pare
ntal leave of not more than 7 working days every years shall be granted to any s
olo parent employee who has rendered service of at least 1 year
Solo Parent woma
n who gives birth as a result of rape or crimes against chastity, a widow or wid
ower, a spouse separated legally or de facto for at least one year, and so forth
. The claimant parent has to show that he/she is left alone with the responsibil
ity of parenthood. growing and harvesting of any agricultural and horticultural
commodities, the raising of livestock or poultry, and any practices performed by
a farmer on a farm as an incident to or in conjunction with such farming operat
ions, but does not include the manufacturing or processing of sugar, coconuts, a
baca, tobacco, pineapples or other farm products Wage paid to any employee shall
mean the: 1. remuneration or earnings, however designated, capable of being exp
ressed in terms of money, whether fixed or ascertained on a time, task, piece, o
r commission basis, or other method of calculating the same, which is payable by
an employer to an employee under a written or unwritten contract of employment
for work done or to be done, or for services rendered or to be rendered; and inc
ludes 2. the fair and reasonable value, as determined by the DOLE Secretary, of
board, lodging, or other facilities customarily furnished by the employer to the
employee. "Fair and reasonable value" shall not include any profit to the emplo
yer, or to any person affiliated with the employer. Fair Wage for Fair Work; No
Work No Pay Principle if there is no work performed by the employee, there can b
e no wage or pay unless the laborer was able, willing, and ready to work but was
prevented by management or was illegally locked out, suspended or dismissed. Bu
t where the failure of employees to work was not due to the employers fault, the
burden of economic loss suffered by the employees. Should not be shifted to the
employer. Each party must bear his own loss. Equal Pay for Equal Work persons wh
o work with substantially equal qualifications, skill, effort and responsibility
, under similar conditions, should be paid similar salaries. Facilities articles
or services for the benefit of the employee or his family but shall not include
tools of the trade or articles or service primarily for the benefit of the empl
oyer or necessary to the conduct of the employers business. May be deducted from
the employees wages. Acceptance of Facilities in order that the cost of faciliti
es furnished by the employer may be charged against an employee, the employees ac
ceptance of such facilities MUST BE VOLUNTARY. Mabeza v. NLRC, 271 SCRA 670 (199
7) Requirements for deducting value of facilities:
Page 20 of 83
Leave under RA 9262 (Anti-Violence Against Women and their Children Act of 2004)
allows the victim of violence, which may be physical, sexual, or psychological,
to apply for the issuance of a protection order. If such victim is an employee,
she is entitled to a paid leave of up to 10 days in addition to other paid leav
es under the Labor Code, other laws and company policies. The employee has to su
bmit a certification from the Punong Barangay or Kagawad or prosecutor or Clerk
of Court that an action under RA 9262 has been filed and is pending.
VI. WAGES A. CONCEPT AND DEFINITION Agriculture includes farming in all its bran
ches and, among other things, includes cultivation and tillage of soil, dairying
, the production, cultivation,
7
1. Proof must be shown that such facilities are customarily furnished by the tra
de 2. The provision of deductible facilities must be voluntarily accepted in wri
ting by the employee 3. The facilities must be charged at fair and reasonable va
lue Facilities items of expense necessary for the laborers and his familys existen
ce and subsistence Supplements extra remuneration or special privileges or benef
its given to or received by the employees over and above their ordinary earnings
or wages. independent of the wage not wage deductible therein, with a salary of
not less than the statutory or established minimum wage, shall be presumed to b
e paid for all the days in the month whether worked or not. The monthly min. wag
e shall not be less than the statutory minimum wage multiplied by 365 days divid
ed by 12. Agricultural Rate farm work from land preparation to harvesting Indust
rial Rate manufacturing or processing of farm products Non-Diminution Rule GR: N
othing in the Labor Code shall be construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed at the time of promulgatio
n of the Labor Code. Benefits being given to employees shall not be taken back o
r reduced unilaterally by the employer because the benefit has become part of th
e employment contract, written or unwritten. Exception: To correct an error, oth
erwise, if the error is left uncorrected for a reasonable period of time, it rip
ens into a company policy and employees can demand for it as a matter of right.
When Non-Diminution Rule Applicable The rule is applicable if it is shown that t
he grant of the benefit is 1. based on an express policy 2. has ripened into pra
ctice over a long period of time; and the practice is consistent and deliberate,
and is not due to an error in the construction/application of a doubtful or dif
ficult question of law Bonus a benefit which is contingent or conditional; its d
It is an amount granted voluntar
emandability depends on certain pre-conditions.
ily to an employee for his/her industry and loyalty which contributed to the suc
cess and realization of profits of the employers business. It is not a demandable
and enforceable obligation unless it was promised to be given without any condi
tions imposed for its payment in which case it is deemed part of the wage.
part of the wage deductible from the wage
Employees NOT Covered by Provisions on Wages 1. farm tenancy / leasehold 2. dome
stic service 3. persons working in their respective homes in needle work or in a
ny cottage industry duly registered in accordance with law 4. Barangay micro bus
iness enterprise (BMBE) under RA 9178, the BMBE Law. BMBE any business entity or
enterprise engaged in the production, processing, or manufacturing of products
or commodities, including agroprocessing, trading and services, whose total asse
ts including those arising from loans but exclusive of the land on which the par
ticular business entitys office, plant and equipment are situated, shall not be m
ore than P3M B. WAGE-FIXING Regional Minimum Wages the minimum wage rates for ag
ricultural and non-agricultural employees and workers in each and every region o
f the country shall be those prescribed by the Regional Tripartite Wages and Pro
ductivity Boards Minimum Wage lowest wage rate fixed by law that QuickTime and a
an employer can TIFF pay his employee; payment of (Uncompressed) decompressor ar
e needed to see this picture. minimum wages is not dependent on the employers abi
lity to pay Daily-Paid Employee paid only for days he actually worked Monthly-Pa
id Employee employees paid by the month, irrespective of the number of working d
ays
Payment by Results regulated by DOLE Secretary to ensure the payment of fair and
reasonable wage rates, preferably through time and motion studies or in consult
ation with representatives of workers and
Page 21 of 83
7
employers organizations. Includes pakyaw, piece work and other noontime work. Two
Categories of Piece-Rate Employees 1. Employees paid piece rates which are pres
cribed in Piece Rate orders issued by DOLE wages are determined by multiplying t
he number of pieces produced by the pay rate per piece. 2. Employees paid output
rates which are prescribed by the employer and are not yet approved by the DOLE
to determine wage, the number of pieces produces is multiplied by the rate per
piece as determined by the employer. If the result is equal to or greater than t
he applicable legal daily rate in proportion to the number of hours worked, the
worker receives such increased amount. If the amount is lower, the employer must
make up the difference. Benefits Payable to Piece-Rate Workers (HANS MOTO) 1. H
oliday Pay 2. Applicable Statutory Minimum Daily Rate 3. Night Differential Pay
4. Service Incentive Leave 5. Meal and Rest Periods 6. Overtime and Premium Pay
7. Thirteenth Month Pay 8. Other Benefits Basic Wage means all remuneration or e
arnings paid by an employer to a worker for services rendered on normal working
days and hours but does not include cost-of-living allowances, profit sharing pa
yments, premium payments, 13th month pay or other monetary benefits which are no
t considered as part of or integrated into the regular salary of the workers Min
imum Wage lowest wage rate fixed by law than an employer can pay his employees W
ho Sets Minimum Wage 1. Regional Tripartite Wages and Productivity Board 2. Cong
ress National Wages and Productivity Commission TIFF (Uncompressed) decompressor
are needed to see this picture. 1. Prescribes rules and guidelines for the dete
rmination of appropriate minimum wage and productivity measures at the regional,
provincial, or industry levels 2. Reviews regional wage levels set by the Regio
nal Tripartite Wages and Productivity Boards to determine if these are in accord
ance with prescribed guidelines and national development plans
QuickTime and a
Regional Tripartite Wages and Productivity Boards 1. Determine and fix minimum w
age rates applicable in their regions, provinces or industries therein and to is
sue the corresponding wage orders, subject to guidelines issued by the National
Wages and Productivity Commission. 2. Develop plans, programs and projects relat
ive to wages, incomes and productivity improvement for their respective regions
3. Receive, process and act on applications for exemption from prescribed wage r
ates as may be provided by law or any Wage Order 4. Other functions Composition
of Each Regional Board 1. Regional Director of DOLE 2. Regional Director of NEDA
3. Regional Director of DTI 4. 2 members from Employer sector 5. 2 members from
Employee sector Wage Order an order issued by the Regional Board whenever the c
onditions in the region so warrant after studying and investigating and studying
all pertinent facts and based on the standards and criteria prescribed by the L
A wage order adjusts the minimum level but not the levels above the m
abor Code.
inimum. It does not mandate across the board salary increase.
Employees NOT Covered 1. Household or domestic helpers, including family drivers
and workers in the personal service of another 2. Workers and employees in reta
il/service establishments regularly employing not more than 10 workers, when exe
mpted from compliance, for a period fixed by the Commission/Boards 3. Workers an
d employees in new business enterprises outside the National Capital Region and
export processing zones for a period of not more than two or three years, as the
case may be, from the start of operations when exempted Effectivity of Wage Ord
ers takes effect after 15 days from its complete publication in at least one new
spaper of general circulation in the region Public Hearings and Consultations Ma
ndatory notice must be given to employees and employers
Page 22 of 83
7
groups, provincial, city and municipal officials and other interested parties.
A
wage order issued without the required public consultation and newspaper public
ation is null and void. 2. Any dispute arising should be resolved through grieva
nce procedure under CBA 3. If dispute remains unresolved, through voluntary arbi
tration B. UNORGANIZED ESTABLISHMENT 1. The employer and employees shall endeavo
r to correct the distortion 2. Any dispute shall be settled through National Con
ciliation and Mediation Board (NCMB) 3. If remains unresolved after 10 days of c
onciliation, it shall be referred to the NLRC Amount of Distortion Adjustment th
e restoration of the previous pay advantage is the aim but not necessarily to th
e last peso. Restoration of appreciable differential, a significant pay gap, sho
uld suffice as correction. Suggested Formula to Correct a Salary Distortion Mini
mum Wage = % x Prescribed Increase Actual Salary Prubankers Association v. Prude
ntial Bank and Trust Co., 302 SCRA 74 (1999) Wage distortion involves comparison
of jobs located in the same region. Examination of alleged salary distortion is
limited to jobs or positions in the same employer in the same region; thus, the
comparison of salaries has to be intra-region, not inter-region. Bankard Employ
ees Union WATU v. NLRC, GR No. 140689, 17 February 2004 The distortion that shou
ld be rectified refers to distortion arising from compliance with a government w
age order. It does not refer to distortion caused by salary revisions voluntaril
y initiated by the employer unless such a duty exists because of a CBA stipulati
on or company practice. C. PAYMENT OF WAGES Manner of wage payment wages shall b
e paid in legal tender and the use of tokens, promissory notes, vouchers, coupon
s, or any other form alleged to represent legal tender is absolutely prohibited
even when expressly requested by the employee. Payment by check Payment of wages
by bank checks, postal checks or money orders is allowed where
Frequency a wage order issued by the Board may not be disturbed for a period of
12 months from its effectivity and no petition for wage increase shall be entert
ained during said period EXCEPT when Congress itself issues a law increasing wag
es. Standards/Criteria for Minimum Wage Fixing must be economically feasible to
maintain the minimum standards of living necessary for the health, efficiency an
d general well-being of the employees within the framework of the national econo
mic and social development program. Factors to Consider: 1. The demand for livin
g wages 2. Wage adjustment vis--vis the consumer price index 3. The cost of livin
g and changes or increases 4. The needs of workers and their families 5. The nee
d to induce industries to invest in the countryside 6. Improvements in standards
of living 7. The prevailing wage levels 8. Fair return of the capital invested
and capacity to pay of employers 9. Effects on employment generation and family
income 10. The equitable distribution of income and wealth along the imperatives
of economic and social development Wage Distortion a situation where an increas
e in prescribed wage rates results in the elimination or severe contraction of i
ntentional quantitative differences in wage or salary rates between and among em
ployee groups in an establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length of service QuickTime and
a or other logical basis of differentiation. Simply, if the TIFF (Uncompressed)
decompressor are needed to see this picture. pay advantage of a position over an
other is removed or significantly reduced by a pay adjustment required by a wage
order, such pay advantage should be restored. Correction of Wage Distortion A.
ORGANIZED ESTABLISHMENT 1. Employer and union shall negotiate to correct the dis
tortion
Page 23 of 83
7
1. such manner of wage payment is customary on the date of the effectivity of th
e Labor Code, 2. where it is so stipulated in a collective agreement, or 3. wher
e all of the following conditions are met: a. There is a bank or other facility
for encashment within a radius of 1 kilometer from the workplace b. The employer
or any of his agents or representatives does not receive any pecuniary benefit
directly or indirectly from the arrangement c. The employees are given reasonabl
e time during banking hours to withdraw their wages from the bank which time sha
ll be considered as compensable hours worked if done during working hours d. The
payment by check is with the written consent of the employees concerned if ther
e is no collective agreement authorizing the payment of wages by bank checks Tim
e of payment GR: 1. not less than once every 2 weeks; or 2. twice a month at int
ervals not exceeding 16 days Except: 1. In case payment cannot be made with such
regularity due to force majeure or circumstances beyond the employer s control
the employer shall pay the wages immediately after such force majeure or circums
tances have ceased. 2. In case of payment of wages by results involving work whi
ch cannot be finished in 2 weeks, payment shall be made at intervals not exceedi
ng sixteen days in proportion to the amount of work completed. Final settlement
shall be made immediately upon completion of the work. Place of payment the plac
e of payment shall be at or near the place of undertaking. Payment in a place ot
her than the work place shall be permissible only under the following circumstan
ces: 1. When payment cannot be effected at or near the place of work by reason o
f the deterioration of QuickTime and a peace and order conditions, or by reason o
f TIFF (Uncompressed) decompressor are needed to see this picture. caused by fir
e, actual or impending emergencies flood, epidemic or other calamity rendering p
ayment thereat impossible 2. When the employer provides free transportation to t
he employees back and forth 3. Under any other analogous circumstances; Provided
, That the time spent by the employees in collecting their wages shall be consid
ered as compensable hours worked Prohibited Place of Payment bar, night or day c
lub, drinking establishment, massage clinic, dance hall, or other similar places
or in places where games are played with stakes of money or things representing
money except in the case of persons employed in said places Payment through Ban
ks; Requisites 1. There must be a written permission of the majority of the empl
oyees concerned in an establishment 2. The establishment must have 25 or more em
ployees 3. The establishment must be located within 1 km. radius to the bank.
Pa
yment through ATM allowed Direct Payment of Wages GR: paid directly to workers t
o whom they are due Exceptions: 1. Payment Through Another Person a. In case of
force majeure rendering such payment impossible provided such person is under wr
itten authority given by the worker for the purpose b. When authorized under exi
sting law including: i. payments for the insurance premiums of the employee ii.
union dues where the right to check-off has been recognized by the employer in a
ccordance with a collective agreement iii. authorized in writing by the individu
al employees concerned 2. Payment Through Heirs of Worker in case the worker has
died, employer may pay wages of the deceased to the heirs of the latter without
necessity of intestate proceedings Procedure: 1. When the heirs are of age, the
y shall execute an affidavit attesting to their relationship to the deceased and
the fact that they are his heirs to the exclusion of all other persons. 2. In c
ase any of the heirs is a minor, such affidavit shall be executed in his behalf
by his natural guardian or next of kin. 3. Affidavit shall be presented to the e
mployer who shall make payment through the DOLE Sec. or his representative 4. Pa
yment of wage shall absolve the employer of any other liability with respect to
the amount paid. 3. Payment through Member of Workers Family where the employer i
s authorized in writing by the
Page 24 of 83
7
employee to pay his wages to a member of his family Non-interference in Disposal
of Wages No employer shall limit or otherwise interfere with the freedom of any
employee to dispose of his wages and no employer shall in any manner oblige any
of his employees to patronize any store or avail of the services offered by any
person. Wage Deductions GR: NOT allowed Except: 1. In cases where the worker is
insured with his consent by the employer, and the deduction is to recompense th
e employer for the amount paid by him as premium on the insurance 2. For union d
ues, in cases where the right of the worker or his union to check-off has been r
ecognized by the employer or authorized in writing by the individual worker conc
erned 3. In cases where the employer is authorized by law or regulations issued
by the DOLE Secretary Other Allowable Deductions 1. In cases where employee inde
bted to employer, where such indebtedness has become due and demandable 2. In co
urt awards, wages may be the subject of execution or attachment, but only for de
bts incurred for food, shelter, clothing, and medical attendance 3. Withholding
Tax 4. Salary deductions of a legally established cooperative 5. Deductions for
payment to 3rd persons, upon written authorization of the employee 6. Union dues
7. Agency fee 8. Deductions for value of meals and other facilities 9. Deductio
ns for loss or damage 10. SSS, Medicare, Pag-IBIG premiums Deductions for Loss o
r Damage GR: No employer shall require his worker to make deposits for the reimb
ursement of loss of or damage QuickTime and a TIFF (Uncompressed) decompressor to
material, equipment, or tools supplied by the are needed to see this picture. e
mployer. Except: When the trade, occupation or business of the employer recogniz
es or considers the practice of making deductions or requiring deposits necessar
y or desirable. Requisites for Valid Deduction for Loss/Damage 1. The employee c
oncerned is clearly shown to be responsible for the loss or damage 2. The employ
ee is given reasonable opportunity to show cause why deduction should not be mad
e 3. The amount of such deduction is fair and reasonable and shall not exceed th
e actual loss or damage 4. The deduction from the wages of the employee does not
exceed 20% of the employee s wages in a week Prohibited / Unlawful Acts 1. With
hold any amount from the wages of a worker or induce him to give up any part of
his wages by force, stealth, intimidation, threat or by any other means whatsoev
er without the workers consent. 2. Deduction from the wages of any employee for t
he benefit of the employer or his representative or intermediary as consideratio
n of a promise of employment or retention in employment. 3. Refuse to pay or red
uce the wages and benefits, discharge or in any manner discriminate against any
employee who has filed any complaint or instituted any proceeding under this Tit
le or has testified or is about to testify in such proceedings. 4. Make any stat
ement, report, or record filed or kept pursuant to the provisions of this Code k
nowing such statement, report or record to be false in any material respect. D.
LIABILITY FOR WAGES Worker Preference in Case of Employers Bankruptcy workers sha
ll enjoy first preference as regards their wages and other monetary claims, any
provisions of law to the contrary notwithstanding. Such unpaid wages and monetar
y claims shall be paid in full before claims of the government and other credito
rs may be paid.
A declaration of bankruptcy or a judicial liquidation must take
place before the workers preference may be enforced. Establishes a preference of
credit and NOT a lien.
Attorneys Fees 1. In case of unlawful withholding of wages, the culpable party ma
y be assessed attorneys fees equivalent to ten percent of the amount of wages rec
overed. 2. It shall be unlawful for any person to demand or accept, in any judic
ial or administrative proceedings for the recovery of wages, attorneys
Page 25 of 83
7
fees which exceed ten percent of the amount of wages recovered. and during worki
ng hours, provided they can perform their duties in this position without detrim
ent to efficiency 2. To establish separate toilet rooms and lavatories for men a
nd women and provide at least a dressing room for women 3. To establish a nurser
y in a workplace for the benefit of the women employees therein 4. To determine
appropriate minimum age and other standards for retirement or termination in spe
cial occupations such as those of flight attendants and the like Maternity Leave
(under RA 1161 SSS Law)
A female member, who need not be legally married, who h
as paid for at least 3 monthly contributions in the 12-month period immediately
preceding the semester of her childbirth or miscarriage shall be paid a daily ma
ternity benefit equivalent to 100% of her average daily salary credit for o 60 d
ays normal delivery o 78 days caesarian delivery
Benefits shall be paid only for
the FIRST 4 deliveries or miscarriages
Maternity benefits, like other benefits
granted by the SSS, are granted in lieu of wages and therefore, may not be inclu
ded in computing the employees 13th month pay for the calendar year The employer
shall advance the payment subject to reimbursement by the SSS. It is not necessa
ry that the woman be impregnated by her legitimate husband. It is immaterial who
the father is.
Every pregnant woman in the private sector, whether married or u
nmarried, is entitled to the maternity leave benefits. Paternity Leave (under RA
8187 Paternity Leave Act of 1996) Grants 7 working days of paternity leave with
full pay to married male employees in the private and public sectors. (Sec. 1(a
), RA 8187 IRR)
Conditions to entitlement: a. The claimant, a married male emplo
yee, is employed at the time of delivery of his child b. He is cohabiting with h
is spouse at the time she gives birth or suffers a miscarriage c. He has applied
for paternity leave d. His wife has given birth or suffered a miscarriage Wife
lawful wife; woman legally married to male employee concerned Family Planning Se
rvices; Incentives for Family Planning employers who habitually employ more
Page 26 of 83
VII. WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES A. WOMEN Night Work Proh
ibition no woman regardless of age shall be employed or permitted or suffered to
work, with or without compensation in any: 1. In any industrial undertaking or
branch thereof between 10 pm 6 am of the following day; or 2. In any commercial
or non-industrial undertaking or branch thereof, other than agricultural - betwe
en 12 mn 6 am of the following day; or 3. In any agricultural undertaking at nig
httime unless she is given a period of rest of not less than nine (9) consecutiv
e hours. Exceptions: Prohibitions DO NOT APPLY 1. In cases of actual or impendin
g emergencies caused by serious accident, fire, flood, typhoon, earthquake, epid
emic or other disasters or calamity, to prevent loss of life or property, or in
cases of force majeure or imminent danger to public safety; 2. In case of urgent
work to be performed on machineries, equipment or installation, to avoid seriou
s loss which the employer would otherwise suffer; 3. Where the work is necessary
to prevent serious loss of perishable goods; 4. Where the woman employee holds
a responsible position of managerial or technical nature, or where the woman emp
loyee has been engaged to provide health and welfare services; 5. Where the natu
re of the work requires the manual skill and dexterity of women workers and the
same cannot be performed with equal efficiency by male workers; 6. Where the wom
en employees are immediate and a operating members of TIFF (Uncompressed) the Qu
ickTime family the decompressor are needed to see this picture. establishment or
undertaking; and 7. Under other analogous cases exempted by the Secretary of Lab
or and Employment in appropriate regulations. Facilities for Women The DOLE Secr
etary may require employers to: 1. Provide seats proper for women and permit the
m to use such seats when they are free from work
7
than 200 workers in any locality shall provide free family-planning services to
their employees and their spouses which shall include but not limited to, the ap
plication or use of contraceptives Discrimination Prohibited unlawful for any em
ployer to discriminate against any woman employee with respect to terms and cond
itions of employment solely on account of her sex Acts of Discrimination 1. Paym
ent of a lesser compensation, including wage, salary or other form of remunerati
on and fringe benefits, to a female employees as against a male employee, for wo
rk of equal value 2. Favoring a male employee over a female employee with respec
t to promotion, training opportunities, study and scholarship grants solely on a
ccount of their sexes
Person guilty of committing these acts are criminally liab
le under Arts. 288-289 of the Labor Code That the institution of any criminal ac
tion under this provision shall not bar the aggrieved employee from filing an en
tirely separate and distinct action for money claims, which may include claims f
or damages and other affirmative reliefs. The actions hereby authorized shall pr
oceed independently of each other. Stipulation Against Marriage It shall be unla
wful for the employer to: 1. require as a condition of employment or continuatio
n of employment that a woman employee shall not get married 2. to stipulate expr
essly or tacitly that upon getting married, a woman employee shall be deemed res
igned or separated 3. to actually dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of her marriage PT&T Co. v. NLRC, 27
2 SCRA 596 (1997) A woman worker may not be dismissed on the ground of dishonest
y forQuickTime havingand written single on a (Uncompressed) decompressor the space
for civilTIFF status on the application sheet, are needed to see this picture. c
ontrary to the fact that she was married. Prohibited Acts It is unlawful for any
employer: 1. To discharge any woman employed by him for the purpose of preventi
ng such woman from enjoying the maternity leave, facilities and other benefits p
rovided under the Code 2. To discharge such woman employee on account of her pre
gnancy, or while on leave or in confinement due to her pregnancy 3. To discharge
or refuse the admission of such woman upon returning to her work for fear that
she may be pregnant 4. To discharge any woman or child or any other employee for
having filed a complaint or having testified or being about to testify under th
e Code 5. To require as a condition for a continuation of employment that a woma
n employee shall not get married or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed resigned or separated, or to a
ctually dismiss, discharge, discriminate or otherwise prejudice a woman employee
merely by reason of her marriage Classification of Certain Women Workers Any wo
man who is permitted or suffered to work, with or without compensation, in any n
ight club, cocktail lounge, massage clinic, bar or similar establishments under
the effective control or supervision of the employer for a substantial period of
time as determined by the Secretary of Labor and Employment, shall be considere
d as an employee of such establishment for purposes of labor and social legislat
ion. B. MINORS Below 15 Not employed EXCEPT: 1. when the child works directly un
der the sole responsibility of his/her parents/legal guardian who employs only m
embers of his/her family under the ff conditions a. employment does not endanger
the childs life, safety, health and morals b. employment does not impair the chi
lds normal development; and c. the parent/legal guardian provides the child with
primary/secondary education 2. when the childs employment or participation in pub
lic entertainment or information through cinema, theater, radio or television is
essential, provided that:
Page 27 of 83
7
a. employment does not involve advertisements or commercials promoting alcoholic
beverages, intoxicating drinks, tobacco and its by-products or exhibiting viole
nce b. there is a written contract approved by the DOLE, if possible c. the cond
itions prescribed for the employment of minors in No. 1 are met d. the following
requirements are complied with: i. employer shall ensure protection, health, mo
rals, and normal development of the child ii. employer shall institute measures
to prevent childs exploitation / discrimination taking into account the system an
d level of remuneration, duration, and arrangement of working time iii. employer
shall formulate and implement a continuing program for training and skills acqu
isition of the child, subject to approval and supervision of competent authoriti
es (as amended by RA 9231) ALLOWED ONLY in: nonhazardous or non-deleterious unde
rtakings No prohibition d. Exposed to or use of heavy power-driven machinery or
equipment e. Workers use or are exposed to power-driven tools C. HOUSEHELPERS Do
mestic or Household Service services in the employers home which is which is usua
lly necessary or desirable for the maintenance and enjoyment thereof and include
s ministering to the personal comfort and convenience of the members of the empl
oyers household, including services of family drivers. Rights of Househelpers 1.
Not to be assigned to non-household work 2. Reasonable compensation (minimum cas
h wage) 3. Lodging, food and medical attendance 4. If under 18 years, an opportu
nity for elementary education cost of which shall be part of househelpers compens
ation 5. Contract for household service shall NOT EXCEED 2 years renewable from
year to year 6. Just and humane treatment 7. Right not to be required to work fo
r more than 10 hrs. a day if the househelper agrees to work overtime and there i
s additional compensation, the same is permissible 8. Right to 4 days vacation e
ach month with pay if the helper does not ask for the vacation, the number of va
cation days cannot be accumulated, he is only entitled only to its monetary equi
valent. 9. Funeral expenses must be paid by the employer if the househelper has
no relatives with sufficient means in the place where the head of the family liv
es 10. Termination only for just cause 11. Indemnity for unjust termination of s
ervice 12. Employment certification as to nature and duration of service and eff
iciency and conduct of the househelper Indemnity for Unjust Termination of Servi
ce 1. If the period for household service is fixed, neither the employer nor the
househelper may terminate the contract before the expiration of the term except
for a just cause. 2. If the househelper is unjustly dismissed, he or she shall
be paid the compensation already earned + that for 15 days by way of indemnity 3
. If the househelper leaves without justifiable reason, he or she shall forfeit
any unpaid salary due him/her not exceeding 15 days.
15 Below 18
18 years and above
Hazardous Workplaces QuickTime and a a. Nature of theTIFF work exposes the worker
s to (Uncompressed) decompressor are needed to see this picture. dangerous envir
onmental elements, contaminants or work conditions b. Workers are engaged in con
struction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring
, dock-work, deep sea fishing, and mechanized farming c. Workers are engaged in
the manufacture or handling of explosives and other pyrotechnic products
Page 28 of 83
7
Employment for Certification upon the severance of the household service relatio
nship, the househelper may demand from the employer a written statement of the n
ature and duration of the service and his/her efficiency and conduct as househel
per Apex Mining Co. Inc. v. NLRC, 196 SCRA 251 (1991) The criteria are the perso
nal comfort and enjoyment of the family of the employer in the home of said empl
oyer. While it may be true that the nature of the work of a househelper, domesti
c servant or laundrywoman in a home or in a company staffhouse may be similar in
nature, the difference in their circumstances is that in the former instance th
ey are actually serving the family while in the latter case, whether it is a cor
poration or a single proprietorship engaged in business or industry or any other
agricultural or similar pursuit, service is being rendered in the staffhouses o
r within the premises of the business of the employer. In such instance, they ar
e employees of the company or employer in the business concerned entitled to the
privileges of a regular employee. D. HOMEWORKERS Homeworker applies to any pers
on who performs industrial homework for an employer, contractor or sub-contracto
r Industrial Homeworker system of production under which work for an employer or
contractor is carried out by a homeworker at his/her home. Materials may or may
not be furnished by the employer or contractor Employer of Homeworker includes
any person, natural or artificial who, for his account or benefit, or on behalf
of any person residing outside the country, directly or indirectly, or through a
n employee, agent contractor, sub-contractor or any other person: a. Delivers, o
r causes to be delivered, any goods, QuickTime and a TIFF (Uncompressed) decompre
ssor or fabricated articles or materials to be processed are needed to see this
picture. in or about a home and thereafter to be returned or to be disposed of o
r distributed in accordance with his directions b. Sells any goods, articles or
materials to be processed or fabricated in or about a home and then rebuys them
after such processing or fabrication, either by himself or through some other pe
rson Deductions No employee, contractor, or subcontractor shall make any deducti
on from the homeworker s earnings for the value of materials which have been los
t, destroyed, soiled or otherwise damaged unless the following conditions are me
t: 1. The homeworker concerned is clearly shown to be responsible for the loss o
r damage; 2. The employee is given reasonable opportunity to show cause why dedu
ctions should not be made; 3. The amount of such deduction is fair and reasonabl
e and shall not exceed the actual loss or damages; and 4. The deduction is made
at such rate that the amount deducted does not exceed 20% of the homeworker s ea
rnings in a week. Liability of employer and contractor Whenever an employer shal
l contract with another for the performance of the employer s work, it shall be
the duty of such employer to provide in such contract that the employees or home
workers of the contractor and the latter s sub-contractor shall be paid in accor
dance with the provisions of this Rule. In the event that such contractor or sub
-contractor fails to pay the wages or earnings of his employees or homeworkers a
s specified in this Rule, such employer shall be jointly and severally liable wi
th the contractor or subcontractor to the workers of the latter, to the extent t
hat such work is performed under such contract, in the same manner as if the emp
loyees or homeworkers were directly engaged by the employer. Prohibitions for Ho
mework 1. explosives, fireworks and articles of like character 2. drugs and pois
ons 3. other articles, the processing of which requires exposure to toxic substa
nce E. HANDICAPPED / DISABLED Handicapped Workers those whose earning capacity i
s impaired by age or physical or mental deficiency or injury, disease or illness
There must be a link between the deficiency and the work which entitles the emp
loyer to lessen the workers wage. If the disability of the person is not in any w
ay related to the work for which he was hired, he should not be so considered as
a handicapped worker. Handicapped Person (RA 7277 Magna Carta
Page 29 of 83
Handicapped Worker (Art. 78 LC)
7
Those whose earning capacity is impaired by age or physical or mental deficiency
or injury for Disabled Persons) Those suffering from restriction or different a
bilities as a result of a mental, physical or sensory impairment, to perform an
activity in the manner or within the range considered normal for a human being.
which may be necessary to aid in enforcement of the Labor Code or any labor law
or order 5. issue compliance orders to give effect to labor legislation based on
the findings of employment and enforcement officers or industrial safety engine
ers made in the course of inspection Compliance Order must observe due process i
n administrative proceedings: a. alleged violator must first be heard and given
adequate opportunity to present evidence on his behalf b. evidence presented dul
y considered before any decision reached c. decision is based on substantial evi
dence d. decision based on evidence presented in the hearing, or at least contai
ned in the record and disclosed to the parties e. decision is that of the decisi
on-making authority and not mere views of subordinates f. decision should explai
n the issues involved and the reasons for the decisions rendered 6. Issue writs
of execution to the appropriate authority for the enforcement of their orders, E
XCEPT in cases where the employer contests the findings of the labor employment
and enforcement officer and raises isues supported by documentary proofs which w
ere not considered in the course of inspection in the latter case, the case will
have to be forwarded to a Labor Arbiter Appeal
If order issued by duly authoriz
ed representative of DOLE Sec. appeal to the latter
If order involves monetary a
ward an appeal by the employer may be perfected upon only upon posting of CASH o
r SURETY bond in the amount equivalent to the monetary award in the order appeal
ed from Power of DOLE Secretary May order stoppage of work OR suspension of any
unit or department where non-compliance with the law or implementing rules and r
egulations poses grave and imminent danger to the health and safety of workers i
n the workplace. Within 24 hrs a hearing shall be conducted to determine whether
an order for the stoppage of work or suspension of operations shall be lifted
I
f violation is attributable to FAULT OF THE EMPLOYER, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of work or
suspension of operations.
Page 30 of 83
When Employable 1. their employment is necessary to prevent curtailment of emplo
yment opportunities 2. does not create unfair competition in labor costs 3. does
not impair or lower working standards Handicapped Workers May Become Regular Em
ployees if their handicap is not such as to effectively impede the performance o
f job operations in the particular occupations for which they were hired. Equal
Opportunity for Employment no disabled person shall be denied access to opportun
ities for suitable employment. Qualified disabled employees shall be subject to
same terms and conditions of employment and the same compensation, privileges, b
enefits, fringe benefits, incentives or allowances as a qualified able-bodied pe
rson Employment Agreement; Contents 1. Names and addresses of the employer and t
he handicapped worker 2. Rate of pay of the handicapped worker which shall not b
e less than 75% of the legal minimum wage 3. Nature of work to be performed by t
he handicapped worker 4. Duration of the employment
VIII. ADMINISTRATION AND EMPLOYMENT Art. 128. Visitorial and enforcement power.
QuickTime and a Power of the Sec.TIFF of Labor or his duly authorized (Uncompress
ed) decompressor are needed to see this picture. representative, including labor
regulation officers to: 1. have access to employers records and premises at any
time of the day or night whenever work is being undertaken therein 2. right to c
opy records 3. to question any employee 4. investigate any fact, condition, or m
atter which may be necessary to determine violations or
7
POWER Unlawful
For any person or entity to obstruct, impede, delay or otherwise
render ineffective the orders of the Sec. or his authorized representatives issu
ed pursuant to the authority under Art. 128
No inferior court shall issue tempor
ary or permanent injunction or restraining order or otherwise assume jurisdictio
n over any case involving the enforcement orders. Enforcement Power cannot be Us
ed Case does not arise from exercise of visitorial power
When EER ceased to exis
t at the time of inspection
If employer contests finding of the labor officer an
d such contestable issue is not verifiable in the normal course of inspection Re
covery of Wages, Simple Money Claims and Other Benefits (Art. 129) Jurisdiction:
DOLE Regional Director (summary proceeding and non-litigious) Claimant: Employe
e or person in domestic or household service, provided: 1. no claim for reinstat
ement 2. aggregate claims of each employee or househelper DOES NOT EXCEED P5,000
. Guico v. Sec. of Labor, 298 SCRA 666 (1998) If the claim later exceeds P5,000,
the Regional Director still retains jurisdiction based on inspections findings i
n the nature of enforcement action 3. claims arise from EER NOTE:
Notice and hea
ring Resolution of complaint within 30 days from filing (Appeal within 5 calenda
r days to NLRC)
NLRC to resolve appeal within 10 QuickTime and a calendar days TI
FF (Uncompressed) decompressor from submission are of needed last to pleading se
e this picture. Not Included: claims for Employees Compensation, Social Security
benefits, Medicare benefits and Maternity Benefits Art. 128 DOLE Sec. OR his dul
y Art. 129 Regional Director or any LIMITS AS TO AMOUNT OF CLAIM authorized repr
esentative who may or may not be a Regional Director Visitorial and enforcement
power exercised through routine inspections of establishment Requires existence
of EER duly authorized hearing officer of DOLE
NATURE OF POWER
Adjudicatory power on matter involving recovery of wage EER not necessary since
it should not include a claim for reinstatement Sworn complaint filed by interes
ted party Aggregate claim of each complainant does not exceed P5,000 Appeal to N
LRC within 5 calendar days
EXISTENCE OF EER
HOW INITIATED
Enforcement power is an offshoot of visitorial power No limit
APPEAL
Appeal to Sec. of Labor within 10 calendar days
IX. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY First Aid Treatment adequate, immedi
ate and necessary medical and dental attention or remedy given in case of injury
or illness suffered by a worker during employment, irrespective of whether or n
ot such injury or illness is work-connected, before a more extensive medical and
/or dental treatment can be secured. First-Aider any person trained and duly cer
tified as qualified to administer first aid by the PNRC or by any other organiza
tion accredited by the former
X. EMPLOYEES COMPENSATION Workmens Compensation a general and comprehensive term a
pplied to those laws providing for compensation for loss resulting from the inju
ry,
WHO EXERCISES
Page 31 of 83
7
disablement or death of a workman through industrial accident, casualty or disea
se Compensation money relief offered according to the scale established under th
e statute as differentiated from compensatory damages recoverable in an action a
t law for breach of contract or for tort WORKMENS COMPENSATION ACT (WCA) Presumpt
ion of compensability Presumption of aggravation There is a need for the employe
r to controvert the claim within 14 days otherwise he is deemed to have waived t
he right Payment of compensation is made by the employer EMPLOYEES COMPENSATION
LAW (ECL) No presumption of compensability No presumption of aggravation No need
for the employer to controvert the claim Conditions for Occupational Disease an
d Resulting Disability or Death to be Compensable 1. Employees work must involve
the risk described therein 2. the disease was contracted as a result of the empl
oyees exposure to the described risks 3. the disease was contracted within the pe
riod of exposure and other such factors necessary to contract it 4. there was no
notorious negligence on the part of the employee Death loss of life resulting f
rom injury or sickness Disability loss or impairment of a physical or mental fun
ction resulting from injury or sickness Direct Premises Rule GR: The accident sh
ould have occurred at the place of work to be compensable. Exceptions: 1. INGRES
S-EGRESS / PROXIMITY RULE when the injury is sustained when the employee is proc
eeding to or from his work on the premises of the employer, the injury is compen
sable. 2. GOING TO OR COMING FROM WORK when the injury is sustained when the emp
loyee is proceeding to or from his work on the premises of the employer, the inj
ury is compensable. a. The act of the employee of going to, or coming from, the
work place, must have been a continuing act, that is, he had not been diverted t
herefrom by any other activity and he had not departed from his usual route to,
or from, his workplace; and b. An employee on a special errand must have been of
ficial and in connection with his work. c. EXTRA PREMISES RULE the company which
provides the means of transportation in going to, or coming from the place of w
ork, is liable to the injury sustained by the employees while on board said mean
s of transportation d. SPECIAL ERRAND RULE injury sustained outside the company
premises is compensable if his being out is covered by an office order or a loca
tor slip or a pass for official business e. DUAL PURPOSE DOCTRINE allows compens
ation where a special trip would have to be made for the employer if the employe
e had not combined the service for the employer with his going or coming trip
Page 32 of 83
Payment of compensation is made by the SSS/GSIS through the State Insurance Fund
. The employers obligation is to pay his counter contribution to the SSS
Injury any harmful change in the human organism from any accident arising out of
and in the course of employment Conditions for Injury to be Compensable 1. The
employee must have been injured at the place where the work required him to be 2
. The employee must have been performing his official functions 3. If the injury
is sustained elsewhere, the employee must have been executing an order of the e
mployer 4. The injury was not due to the employees intoxication, willful intentio
I
n to injure or kill himself or another, or notorious negligence QuickTime and a
njuries incurred by a decompressor health worker while TIFF (Uncompressed) are n
eeded to see this picture. doing overtime work shall be considered work-connecte
d Sickness any illness accepted as an occupational disease listed by the Commiss
ion or any illness caused by the employment subject to proof that the risk of co
ntracting the same is increased by the working conditions
7
SPECIAL ENGAGEMENT RULE covers field trips, outings, intramurals, and picnics wh
en initiated and sanctioned by the employer g. POSITIONAL AND LOCAL RISKS DOCTRI
NE if an employee by reason of his duties is exposed to a special or peculiar da
nger from the elements, that is, one greater than that to which other persons in
the community are exposed and an unexpected injury occurs, the injury is compen
sable Compulsory Coverage ECL applies to all employers, and to all employees, pu
blic or private including casual, emergency, temporary, or substitute employees
An employee over 60 yrs of age and paying contributions to qualify for the retir
ement or life insurance benefit administered by the system shall be subject to c
ompulsory coverage. f. State Insurance Fund all covered employers are required t
o remit to a common fund a monthly contribution equivalent to 1% of the monthly
salary credit of every covered employee. The employee pays no contribution to th
e fund. Any agreement to contrary is prohibited Disability Categories 1. TEMPORA
RY TOTAL if as a result of the injury or sickness, the employee is unable to per
form any gainful occupation for a continuous period not exceeding 120 days 2. PE
RMANENT TOTAL if as a result of the injury or sickness, the employee is unable t
o perform any gainful occupation for a continuous period exceeding 120 days 3. P
ERMANENT PARTIAL - if as a result of the injury or sickness, the employee suffer
s a permanent partial loss of the use of any part of his body Death Benefits The
System shall pay to the primary beneficiaries upon the death of the covered emp
loyee an amount equal to his monthly income benefit, plus 10% thereof for each d
ependent child, but not exceeding 5, beginning with the youngest, and without su
bstitution. The income benefit shall be guaranteed for 5 years. Dependent 1. Leg
itimate, legitimated, and legally adopted or acknowledged natural child who is u
nmarried, not gainfully employed and not over 21 years of age or over 21 years o
f age, provided he is incapable of self-support due to a physical or mental defe
ct which is congenital or acquired during minority 2. legitimate spouse living w
ith the employee 3. parents of said employee wholly dependent upon him for regul
ar support Benefits 1. for life to the primary beneficiaries, guaranteed for 5 y
ears 2. for not more than 60 mos. to the secondary beneficiaries in case there a
re no primary beneficiaries 3. in no case shall the total benefit be less than P
15,000. Beneficiaries A. PRIMARY 1. Dependent spouse until he/she remarries 2. D
ependent children (legitimate, legitimated, natural born or legally adopted)
Effective Date of Coverage the employer is covered from the first day of operati
on and the employee from first day of employment Limits of Liability No compensa
tion if the injury, death or disability is the result of the employees: 1. intoxi
cation 2. willful intention to injure or kill himself or another 3. notorious ne
gligence deliberate act of the employee in disregard to his own personal safety
4. otherwise provided by the Labor Code Death through Suicide GR: not compensabl
e Exceptions: 1. by agreement of the parties 2. if the suicide/death is caused b
y work-related or compensable illness or disease Rules on Simultaneous Recovery
QuickTime a Labor Code 1. Simultaneous recovery underand the TIFF (Uncompressed)
decompressor are needed to see this picture. and the Civil Code cannot be made.
The action is selective and the employee may either choose to file the claim und
er either. But once the election is made, the claimant cannot opt for the other
remedy. 2. Simultaneous recovery under the Labor Code and the SSS can be made.
Page 33 of 83
7
B. SECONDARY 1. Illegitimate children and legitimate descendants 2. Parents, gra
ndparents, grandchildren
Page 34 of 83
7
LABOR RELATIONS
I. RIGHT TO SELF ORGANIZATION A. CONCEPT & SCOPE Art. 243. Coverage and employee
s right to selforganization. Art. 246. Non-abridgment of right to selforganizatio
n. Employer includes any person acting in the interest of an employer, directly
or indirectly; the term shall not include any labor organization or any of its o
fficers or agents except when acting as employer Employee includes any person in
the employ of an employer.
The term shall not be limited to the employees of a
particular employer, unless the Code so explicitly states. It shall include any
individual whose work has ceased as a result of or in connection with any curren
t labor dispute or because of any unfair labor practice if he has not obtained a
ny other substantially equivalent and regular employment.
Any employee, whether
employed for a definite period or not, shall, beginning on his first day of serv
ice, be considered as an employee for purposes of membership in any labor union.
(ART. 277 par.c) Right to Self-Organization The right includes: 1. Forming, joi
ning, or assisting labor organizations for the purpose of collective bargaining
through representatives of their own choosing. 2. To engage in lawful concerted
activities for the purpose of collective bargaining or for their mutual aid and
protection. Who Enjoys the Right to Self Organization General Rule: 1. ALL perso
ns in: Commercial, industrial, agricultural, religious, charitable, medical and
educational institutions, QuickTime and a whether or not TIFF operated for decomp
ressor profit. (Uncompressed)
PURPOSE: Mutual aid and protection. It shall be unlawful for any person to restr
ain, coerce, discriminate against, or unduly interfere with employees and worker
s in their exercise of the right to self organization. B. LABOR ORGANIZATIONS 1.
Definition and Types Labor Organization means any union or association of emplo
yees which exists in whole or in part for the purpose of collective bargaining o
r of` dealing with employers concerning terms and conditions of employment Legit
imate Labor Organization means any labor organization duly registered with the D
OLE, and includes any branch or local thereof Affiliate refers to an independent
union affiliated with a federation or national union or a chartered local which
was subsequently granted independent registration but did not disaffiliate from
its federation, reported to the Regional Office and the Bureau in accordance wi
th Rule III, Sections 6 and 7 of these Rules. Chartered Local refers to a labor
organization that acquired legal personality through the issuance of a charter c
ertificate by a duly registered federation or national union, and reported to th
e Regional Office in accordance with Rule III, Section 2-E of the Rules. Consoli
dation refers to the creation or formation of a new union arising from the unifi
cation of two or more unions Independent Union refers to a labor organization op
erating at the enterprise level that acquired legal personality through independ
ent registration Legitimate Workers Association refers to an association of worke
rs organized for mutual aid and protection of its members or for any legitimate
purpose other than collective bargaining registered with the Department Merger r
efers to a process where a labor organization absorbs another National Union or
Federation refers to a group of legitimate labor unions in a private establishme
nt organized for collective bargaining or for dealing with employers concerning
terms and conditions of
Page 35 of 83
PURPOSE: Collective bargaining, engaging in lawful concerted activities for coll
ective bargaining, and mutual aid and protection. 2. Ambulant, intermittent and
itinerant and rural workers, the self-employed and those with no definite employ
ers may form labor organizations.
7
employment for their member unions or for participating in the formulation of so
cial and employment policies and standards and programs, registered with the Bur
eau Union refers to any labor organization in the private sector organized for c
ollective bargaining and for other legitimate purposes Workers Association refers
to an association of workers organized for the mutual aid and protection of its
members for any legitimate purpose other than collective bargaining. 2. Registr
ation of labor organizations Art. 231. Registry of unions and file of collective
bargaining agreements. Art. 234. Requirements of registration. Art. 235. Action
on application. Art. 236. Denial of registration; appeal. Art. 237. Additional
requirements for federations or national unions. Art. 238. Cancellation of regis
tration; appeal. Art. 239. Grounds for cancellation of union registration. Art.
240. Equity of the incumbent. Requirements for Registration (ANNEX A) Requiremen
ts in Case Of Merger/Consolidation (ANNEX B) Procedure for Registration of Labor
Organization (ANNEX C) 3. Cancellation of registration Grounds for Cancellation
of Union Registration 1. Misrepresentation, False Statement or Fraud in connect
ion with: a. adoption/ratification of the CBL or amendments thereto, minutes of
ratification and the list of members who took part in the ratification QuickTime
and a b. election ofTIFF officers, minutes thereof, list of (Uncompressed) decom
pressor are needed to see this picture. officers/voters c. in the preparation of
the financial reports 2. Failure to Submit: a. CBL, minutes of its adoption/rat
ification, list of members who took part within 30 days from adoption of ratific
ation or amendments thereto Rights of Labor Organizations 1. To act as the repre
sentative of its members for the purpose of collective bargaining; 2. To be cert
ified as the exclusive representative for purposes of collective bargaining; 3.
To be furnished by the employer, with its annual audited financial statements, i
ncluding the balance sheet and the profit and loss statement. 4. To own property
, real or personal, for the use and benefit of the labor organization and its me
mbers; 5. To sue and be sued in its registered name; 6. To undertake all other a
ctivities designed to benefit the organization and its members, including cooper
The income and p
ative, housing, welfare and other projects not contrary to law.
roperties received by legitimate labor organization which are actually, directly
and
Page 36 of 83
b. Minutes of the elections of officers, list of officers/voters within 30 days
from election c. Annual financial report to the BLR within 30 days after the clo
sing of every fiscal year d. List of individual members to the BLR once a year o
r whenever required by the BLR 3. Acting as labor contractor or engaging in the
Cabo System or otherwise engaging in any activity prohibited by law 4. Enterin
g into CBAs with terms and conditions of employment below minimum standards esta
blished by law 5. Asking for or accepting attorney s fees or negotiation fees fr
om employer 6. Checking off special assessments or any other fees without duly s
igned individual written authorizations of the members (other than for mandatory
activities under the Labor Code) Procedure for Cancellation of Registration (AN
NEX D) Procedure for Cancellation of Registration Due to Non-Compliance with Rep
ortorial Requirements (ANNEX E) 4. Rights of Labor Organization Art. 242. Rights
of legitimate labor organizations. Art. 277. Miscellaneous provisions. (a) All
unions are authorized to collect reasonable membership fees, union dues, assessm
ents and fines and other contributions for labor education and research, mutual
death and hospitalization benefits, welfare fund, strike fund and credit and coo
perative undertakings.
7
exclusively used for their lawful purposes shall be free from taxes, duties and
other assessments. Right to Represent its Members
When a union files a case for a
nd in behalf of its members, a member of that union will not be permitted to file
in the same case a complaint-inintervention. Intervention will be allowed only
if there is suggestion of fraud or collusion or that the representative will not
act in good faith for the protection of all interest represented by the union.
Compromise agreement between the union and the company is binding upon the minor
ity members of the union. [Dionela v. Court of Industrial Relations, 8 SCRA 832
(1963)] Compromise of Money Claims Money claims due to laborers cannot be the ob
ject of settlement or compromise effected by a union or counsel without the spec
ific individual consent of each laborer concerned. The beneficiaries are the ind
ividual complainants themselves. The union can only assist them but cannot decid
e for them. [Kaisahan ng mga Manggagawa sa La Campana v. Sarmiento 133 SCRA 220
(1984)] When the Union has the Right to be Furnished with Financial Statements 1
. After the union has been recognized by the employer as sole bargaining represe
ntative of the employees in the bargaining unit. 2. After the union is certified
by DOLE as such sole bargaining representative. 3. Written request from the uni
on 4. Within the last 60 days of the life of a CBA 5. During the collective barg
aining negotiation Right to Collect Fees
Right to collect fees is recognized in
Art. 277(a) and discussed under the topic of check-off under Art. 241 (Rights an
d conditions of membership in a labor organization) C. SPECIAL GROUPS OF EMPLOYE
ES
are needed to see this picture. 1. Managerial & Supervisory Employees
Under Art.
245, managerial employees are not eligible to join, assist or form any labor or
ganization. Supervisory employees shall not be eligible for membership in a labo
r organization of the rank-and-file employees but may join, assist or form separ
ate labor organizations of their own. QuickTime and a TIFF (Uncompressed) decompr
essor
Manager one who is vested with the power or prerogative to lay down an execute m
anagement policies and/or to hire, transfer, suspend, lay-off, recall, discharge
, assign or discipline employees Note that the management policies must pertain
exclusively to labor relations. Supervisor one, who, in the interest of the empl
oyer, effectively recommends managerial actions Power to recommend Must be both
1. Effective, and 2. Requires the Use of Independent Judgment. 2. Confidential E
mployees Confidential employees are also prohibited from forming, joining or ass
isting any labor organization. Confidential Employees a confidential employee is
one who is entrusted with confidence on delicate matters, or with custody, hand
ling, or care and protection of the employers property. (National Association of
Trade Unions (NATU) Republic Planters Bank Supervisors Chapter v. Honorable Rube
n Torres, 1994)
Confidential employees assist and act in a confidential capacity
to, or have access to confidential matters of, persons who exercise managerial
functions in the field of labor relations [Philips Industrial Development v. NLR
C; G.R. No. 88957 (June 25, 1992)] NOTE: Confidential employees may be manageria
l, supervisory or even a rank and file employee. Purpose of Employees Disqualifi
cation of Confidential
Doctrine of Necessary Implication what is implied in s statute is as much part t
hereof as that which is expressed
Under Art. 245, confidential employees are not
prohibited from joining, assisting, or forming any labor organization. But by v
irtue of necessary implication, confidential employees are similarly disqualifie
d. By the very nature of their functions, they assist and act in a confidential
capacity to, or have access to confidential matters of, persons who exercise man
agerial functions in the field of labor relations. As such, the rationale behind
the ineligibility of managerial employees to form,
Page 37 of 83
7
assist or join a labor union equally applies to them. (Metrolab Industries, Inc.
v. RoldanConfesor ,1996) Access to Confidential Labor Relations Information
The
information must be related labor relations matters. When the employee does not
have access to confidential labor relations information, then the prohibition t
o form, join, or assist a union does not apply. (Sugbuanon Rural Bank v. Laguesm
a,2000)
If the access is merely incidental to his duties and not necessary in th
e performance of such duties, the access does not render the employee a confiden
tial employee (San Miguel Corp. Supervisors & Exempt Union, et. al. v. Laguesma
1997) 3. Security Guards Under RA 6715, they may now join a abor organization of
the rank and file or that of the supervisory union, depending on their rank. (M
anila Electric Co. v. Secretary of Labor and Employment, GR No. 91902, 20 May 19
91) 4. Members of Cooperatives Benguet Electric Cooperative v. Ferrer-Calleja, 1
80 SCRA 740 (1989) Issue: Whether employees of a cooperatove are qualified to fo
rm or join a labor organization for purposes of collective bargaining. Held: The
right to collective bargaining is not available to an employee of a cooperative
who at the same time is a member and co-owner thereof. With respect, however, t
o employees who are neither members nor co-owners of the cooperative they are en
titled to exercise the rights to self-organization, collective bargaining and ne
gotiation. The fact that the member-employees of petitioner (cooperative) do not
participate in the actual QuickTime and a management of the cooperative does not
make them TIFF (Uncompressed) decompressor are needed to see this picture. elig
ible to form, assist or join a labor organization purposes of collective bargain
ing. They cannot invoke the right to collective bargaining for certainly an owner
cannot bargain with himself or his coowners. It is the fact of ownership of the
cooperative, and not involvement in the management thereof, which disqualifies a
member from joining any labor organization within the cooperative. 5. Members o
f Iglesia ni Kristo Victoriano v. Elizalde Rope Workers Union, 59 SCRA 54 (1974)
What the Constitution and the Industrial Peace Act recognize and guarantee is th
e right to form or join associations. Nothwithstanding the different theories prop
ounded by the different schools of jurisprudence regarding the nature and conten
ts of a right, it can be safely said that whatever theory one subscribes to, a rig
ht comprehends at least 2 broad notions, namely: first, liberty or freedom, i.e.
the absence of legal restraint, whereby an employee may act for himself without
being prevented by law; and second, power whereby an employee may, as he please
s, join or refrain from joining an association. It is therefore, the employee wh
o should decide for himself whether he should join or not in an association. It
is clear, therefore, that the right to join a union includes the right to abstai
n from joining any union. The legal protection granted to such right to refrain
from joining is withdrawn by operation of law, where a labor union and an employ
er have agreed on a closed shop. What the exception provides is that members of
said religious sects cannot be compelled or coerced to join labor unions even wh
en said unions have close shop agreements with the employers; that in spite of a
ny closed shop agreement, members of said religious sects cannot be refused empl
oyment or dismissed from their jobs on the sole ground that they are not members
of the collective bargaining union. It is clear therefore, that the assailed Ac
t, far from infringing the constitutional provision on freedom of association, u
pholds and reinforces it. It does not prohibit the members of said religious sec
ts from affiliating with labor unions. If, notwithstanding their religious belie
fs, the members of said religious sects prefer to sign up with the labor union,
they can do so; the law does not coerce them to join; neither does the law prohi
bit them from joining; and neither may the employer or labor union compel them t
o join. Kapatiran sa Meat and Canning Division v. FerrerCalleja, 162 SCRA 367 (1
988) This Courts decision in Victoriano v. Elizalde Rope Workers Union upholding t
he right of members of the Iglesia no Kristo sect not to join a labor union for
being contrary to their religious beliefs, does not bar the members of that sect
from forming their own union. The public respondent correctly observed that the
recognition of the tenets of that sect xxx should not infringe on the basic righ
t of self-organization granted by the constitution to workers, regardless of
Page 38 of 83
7
religious affiliation. 6. Government Employees Art. 244. Right of employees in t
he public service. Art. 276. Government employees. Association of Court of Appea
ls Employees v. Ferrer-Calleja, 203 SCRA 596 (1991) The terms and conditions of
employment in the government service are governed by law. Any understanding betw
een the top officials of a government agency and the union which represent the r
ank-and-file is subordinate to the law governing the particular issue or situati
on. Davao City Water District v. Civil Service Commission, 201 SCRA 593 (1991) B
y government owned or controlled corporation with original charter, we mean gove
rnment owned or controlled corporation created by a special law and not under th
e Corporation Code of the Philippines. It is clear that what has been excluded f
rom the coverage of the CSC are those corporations created pursuant to the Corpo
ration Code. Government Employees Not Allowed To Unionize 1. Members of the Arme
d Forces 2. Police Officers/Policemen 3. Firemen 4. Jail Guards
High level emplo
yees are also not allowed to join the organization of rank and file government e
mployees. o High level employees- one whose functions are normally considered po
licy determining, managerial or one whose duties are highly confidential in natu
re. interference by the host country in their internal workings. The exercise of
jurisdiction by the DOLE in these instances would defeat the very purpose of im
munity, which is to shield the affairs of international organizations, in accord
ance with international practice, from political pressure or control by the host
country to the prejudice of member states of the organization, and to ensure th
e unhampered performance of their functions. The immunity granted being from ever
y form of legal process except in so far as in any particular case they have exp
ressly waived in their immunity, it is inaccurate to state that a certification e
lection is beyond the scope of that immunity for the reason that it is not a sui
t against ICMC. A certification election cannot be viewed as independent or isol
ated process. It could trigger off a series of events in the collective bargaini
ng process together with related incidents and/or concerted activities, which co
uld inevitably involve ICMC in the legal process, which includes any penal, civil a
nd administrative proceedings. D. ACQUISITION AND RETENTION OF MEMBERSHIP; UNION
SECURITY AGREEMENTS Art. 277. Miscellaneous provisions. (c) Any employee, whethe
r employed for a definite period or not, shall, beginning on his first day of se
rvice, be considered as an employee for purposes of membership in any labor unio
n. Art. 248. Unfair labor practices of employers. (e) Discrimination. What the la
w prohibits is discrimination to encourage or discourage membership in a labor o
rganization. Where the purpose is to influence the union activity of employees,
the discrimination is unlawful. However, the inclusion of union security clause
in the CBA is not considered ULP.
7. Employees of International Organizations International Catholic Migration Com

mission v. Calleja, 190 SCRA 130 (1989) Labor organizations in the International
Catholic Migration Commission (ICMC) and International Rice QuickTime and a TIFF
(Uncompressed) decompressor Research Institute (IRRI), both international are n
eeded to see this picture. organizations, filed a petition for certification ele
ction. ICMC and IRRI claimed immunity. Held: The grant of immunity from local ju
risdiction to ICMC and IRRI is clearly necessitated by their international chara
cter and respective purposes. The objective is to avoid the danger and partialit
y and
Union Security Clause generic term which comprehends closed shop, union shop, or any
other form of agreement which imposes upon employees the obligation to acquire
or retain union membership as a condition of employment. Kinds of Union Security
Agreements 1. CLOSED-SHOP only union members can be hired and they must remain
as union members to retain employment. 2. UNION SHOP Nonmembers may be hired, bu
t must become union members after a certain period to retain employment. 3. MODI
FIED UNION SHOP Employees who are
Page 39 of 83
7
not union members at the time of the signing the contract is not required to joi
n the union, but all workers hired after is required to join. MAINTENANCE OF MEM
BERSHIP SHOP Employees are not compelled to join the union, but all present or f
uture members must remain in good standing in the union. EXCLUSIVE BARGAINING SH
OP Union is recognized as the exclusive bargaining agent for all employees in th
e bargaining unit, whether union members or not. BARGAINING FOR MEMBERS ONLY Uni
on is recognized as the bargaining agent only for its own members. AGENCY SHOP a
n agreement whereby employees must either join the union or pay to the union as
exclusive bargaining agent a sum equal to that paid by the members. These union
security agreements are opposite of OPEN SHOP. Open shop does not require union
membership as a condition of employment. right of freedom of association guarant
eed by the constitution. (Manila Mandarin Employees Union v. NLRC, GR No. 76989,
29 September 1987)
4.
E. MEMBERSHIP; RIGHTS OF MEMBERS Art. 241. Rights and conditions of membership i
n a labor organization. Art. 274. Visitorial power. Art. 222. Appearances and Fe
es. Rights of Union Members 1. POLITICAL RIGHT a. right to vote b. right to be v
oted for 2. DELIBERATIVE AND DECISION-MAKING RIGHT a. right to participate in de
liberations on major policy questions b. decide on major policy questions by sec
ret ballot 3. RIGHTS OVER MONEY MATTERS a. right against excessive fees b. right
against unauthorized collection c. right against unauthorized disbursements d.
right to require adequate records of income and expenses. e. right to access fin
ancial records f. right to vote on officers compensation g. right to vote on prop
osed special assessments h. right to deduction of special assessments only with
written authorization from member. 4. RIGHT TO INFORMATION a. right to be inform
ed about the organizations constitution and by-laws and the collective bargaining
agreement and about labor laws. Other Rights & Conditions under Art. 241 1. Lab
or organizations cannot knowingly admit or continue in membership any individual
who belongs to a subversive organization or engaged directly or indirectly in a
ny subversive activity. 2. A member who has been convicted of a crime involving
moral turpitude is ineligible for election or appointment in the union. 3. Every
payment of fees, dues or other contributions by a member shall be evidenced by
a receipt signed by the officer and entered into the record of the organization.
4. Every income shall be evidenced by a record showing its source. And every ex
penditure shall be evidenced by a receipt from the person who
Page 40 of 83
5.
6.
7.
Liberty Flour Mills Employees v. Liberty Flour Mills, Inc., GR Nos. 58768-70, 29
December 1989 Union and Company executed a CBA which contained a union shop cla
use Over a year after the execution of the CBA, 2 employees were dismissed after
they formed their own union. Held: It is the policy of the State to promote uni
onism to enable the workers to negotiate with management on the same level and w
ith more persuasiveness than if they were to individually and independently barg
ain for the improvement of their respective conditions. To this end, the Constit
ution guarantees to them the rights "to self-organization, collective bargaining
and negotiations and peaceful concerted actions including the right to strike i
n accordance with law." There is no question that these purposes could be thwart
ed if every worker were to choose to go his own separate way instead of joining
his co-employees in planning collective action and presenting a united front whe
n they sit down to bargain with their employers. It is for QuickTime and a this r
eason that the law has sanctioned stipulations TIFF (Uncompressed) decompressor
are needed to see this picture. for the union shop and the closed shop as a mean
s of encouraging the workers to join and support the labor union of their own ch
oice as their representative in the negotiation of their demands and the protect
ion of their interest vis-a-vis the employer.
A closed shop provision is a valid
for of union security, and such a provision in a collective bargaining agreemen
t is not a restriction of the
7
was paid. The receipt shall state the date, place and purpose of such payment. E
ligibility for Membership
Eligibility for membership depends upon the unions cons
titution and by laws. However, under Art. 277, an employee is already qualified
for union membership starting on his first day of service. Election of Union Off
icers Officers shall be elected directly by members in secret ballot voting. Ele
ction shall take place every 5 years.
The only qualification requirement for can
didacy shall be membership in good standing in labor organization. o Membership
in good standing any person who has fulfilled the requirements for membership in
the union and who has neither voluntarily withdrawn from membership nor has bee
n expelled or suspended from membership. The secretary or any other responsible
union officer shall give the Secretary with a list of the newly-elected officers
, and appointed officers or agents who are entrusted with the handling of funds
within 30 days after the election
Procedure of elections o GR: in accordance wit
h the unions constitution and by-laws or agreement among the members. o If the co
nstitution, by laws are silent or if there is no agreement, then Rule 12 of the
Implementing rules will apply Elections under Rule 12 of the Implementing Rules
(ANNEX F) Eligibility of Voters Only members of the union can take part in the e
lection of union officers. Tancinco v. Pura Ferrer-Calleja GR. No. 78131 (1988)
The question of eligibility to vote may be QuickTime and a determined through the
use of decompressor the applicable payroll TIFF (Uncompressed) are needed to se
e this picture. period and employees status during the applicable period. Submiss
ion of the employees name with the BLR as qualified members of the union is not a
condition sine qua non to enable said members to vote in the election of the un
ion officers. Disqualification of Union Officers 1. Convicted of a crime involvi
ng moral turpitude. 2. Individual who belongs to a subversive organization or en
gaged directly or indirectly in any subversive activity. - one cannot even be a
member of the organization Union Election Protest complaints or protests regardi
ng election of union officers is treated as an intra/inter-union dispute Check-O
ffs & Assessments Check-Off a method of deducting from an employees pay at prescr
ibed period, the amounts due the union for fees, fines or assessments. Deduction
s for union service fee are authorized by law and do not require individual chec
k-off authorizations. Agency Fee amount equivalent to union dues, which a nonuni
on member pays to the union because he benefits from the CBA negotiated by the u
nion Requisites for a Valid Special Assessments 1. Authorization by a written re
solution of the majority of all the members at the general membership meeting du
ly called for that purpose. 2. Secretarys record of the minutes of the meeting. o
must include list of members present, votes cats, purpose of the special assess
ments and the recipient of such assessments. 3. Individual written authorization
for check-off duly signed by the employee concerned to levy such assessments Pa
lacol v. Ferrer-Calleja, 182 SCRA 710 (1990) The union president submitted the a
uthorization for the company to deduct union dues and 10% by way of special asse
ssments. Subsequently, members of the union submitted documents stating that the
y were withdrawing their authorization such that in the end, there ere 528 objec
tors and only 272 supporters. Petitioners question the special assessments. Held
: The failure of the union to comply strictly with the requirements set out by t
he law invalidates the questioned special assessments. Substantial compliance is
not enough in view of the fact that the special assessment will diminish the co
mpensation of the union members. Under Art. 241, (n), the Union must submit to t
he company a written resolution of a majority of all the members at a general me
mbership meeting called for
Page 41 of 83
7
the purpose. In addition, the secretary of the organization must record the minu
tes of the meeting which in turn, must include, among others, the list of all th
e members present as well as the votes cast. The law would not have specified a
general membership meeting had the legislative intent been to allow local meetin
gs in lieu of the latter. There can be no valid check-off considering that the m
ajority of the union members had already withdrawn their individual authorizatio
n. Violation of Rights of Members GR: Complaint for violation of rights must be
reported by at least 30% of the union members. Exception: when the violation dir
ectly affects only one or two members, then only one or two members can report s
uch violation. Consequence of Violation of Rights 1. Cancellation of the union r
egistration 2. Expulsion of the cULPable officers. Remedies for Violation of Rig
hts Litton Mills Employees Association-Kapatiran v. Ferrer-Calleja, GR No. L-780
61 (1988) Despite the practical difficulties in complying with the said procedur
e, petitioners should have shown substantial compliance with said impeachment pr
ocedure, by giving the union officer ample opportunity to defend himself, as con
trasted to an outright impeachment, right after he failed to appear before the f
irst and only investigation scheduled. Diamonon v. Dept. of Labor, et. al. GR. N
o. 108951, 07 March 2000 When the Constitution and by-laws of both unions dictat
ed the remedy for intra-union dispute, this should be resorted to not only to gi
ve the grievance machinery or appeals body of the union the opportunity to decide
the matter by itself, but also to prevent unnecessary and premature resort to a
dministrative or judicial bodies. The underlying principle of the rule on exhaus
tion of administrative remedies rests on the presumption QuickTime and a that whe
n the administrative body, or grievance TIFF (Uncompressed) decompressor are nee
ded to see this picture. machinery, as in this case, is afforded a chance to pas
The Secre
s upon the matter, it will decide the same correctly. Visitorial Power
tary or his duly authorized representative can inquire into the financial activi
ties of any labor organization on the basis of a complaint under oath, supported
by 20% of the membership.
II. UNFAIR LABOR PRACTICES Art. 247. Concept of unfair labor practice and proced
ure for prosecution thereof. Concept of Unfair Labor Practices The aim of labor
relations policy is industrial democracy whose realization is most felt in a fre
e collective bargaining or negotiation over terms and conditions of employment.
Because self organization is a prerequisite of industrial democracy, the right t
o self organize has been enshrined in the Constitution, and any attack to it any
attack to it any act intended to defeat or debilitate the right is regarded by
law as an offense. The victim of the offense is not just the workers as a body a
nd the well meaning employees who value peace, but the State as well. Thus, the
attack to this constitutional right is considered a crime which carries both civ
il and criminal liabilities. Elements of Unfair Labor Practice 1. EER between th
e offender and the offended.
ULP is negation of a counteraction to the right to
organize which is available only to employees in relation to their employer. No
organizational right can be negated or assailed if the employer employee relatio
nship is absent in the first place. 2. The act done is expressly defined in the
Code as an act of unfair labor practice.
Art. 212(k) defines unfair labor practi
ce as any unfair labor practice as defined by this Code.
The prohibited acts are
all related to the workers self organizational right and to the observance of a
collective bargaining agreement. Because ULP is and has to be related to the rig
ht to self organization and to the observance of the CBA, it follows that not ev
ery unfair act is unfair labor practice. ULP therefore, refers only to acts oppo
sed to workers right to organize. When committed by the employer, it commonly con
notes anti unionism. Aspects of Unfair Labor Practice 1. Civil Aspect 2. Crimina
l Aspect
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7
Civil aspect may include liability for damages and may be passed upon by the lab
or arbiter. Prosecution of ULP as a criminal offense can be initiated only after
the finality of judgment in the labor. But judgment in the labor case will not
serve as evidence of ULP in the criminal case. light of indefinite combinations
of events which may be charged as violative of its terms. When There is no ULP:
Instance of Valid Exercise of Management Rights
The law on unfair labor practice
s is not intended to deprive the employer of his fundamental right to prescribe
and enforce such rules as he honestly believes to be necessary to the proper, pr
oductive and profitable operation of his business. The only condition imposed up
on this control is that it must not be exercised so as to effect a violation of
the Act and its several prohibitions.
Where, however, an employer does violate t
he Act and is found guilty of the commission of an unfair labor practice, it is
no excuse that his conduct was unintentional and innocent. Rubberworld Phils., I
nc., et al. v. NLRC, GR No. 75704, 19 July 1989 As a rule, it is the prerogative
of the company to promote, transfer or even demote its employees to other posit
ions when the interests of the company reasonably demand it. Unless there are in
stances which directly point to interference by the company with the employees r
ights to self organization, the transfer of an employee should be considered with
in the bounds allowed by law, e.g. where despite his transfer to a lower positio
n, his original rank and salary remained undiminished. Enriquez v. Zamora, GR No
. 51382, 29 December 1986 Acceptance of a voluntary resignation is not ULP. In a
Philippine Airlines case the courts said that the pilots protest retirement/resi
gnation was not a concerted activity which was protected by law. They did not as
sume the status of strikers. They cannot, therefore, validly claim that the comp
any committed unfair labor practice. When the pilots voluntarily terminated thei
r employment relationship with the company, they cannot claim that they were dis
missed Wise and Co., Inc. v. Wise & Co., Employees Union, GR No. 87672, 13 Octob
er 1989 There can be no discrimination committed by the employer as the situatio
n of the union employees is different from that of the nonunion employees. Discr
imination per se is not unlawful. There can be no discrimination where the emplo
yees concerned are not similarly situated. The grant by the employer of profit s
haring benefits to the employees outside the bargaining unit falls under the amb
it of its managerial prerogative. It appears to have been done in good faith and
without
Page 43 of 83
Jurisdiction of Criminal Charge of ULP The criminal charge fall under the concur
Only substantial evidence is required i
rent jurisdiction of the MTC or the RTC.
n the labor case while proof beyond reasonable doubt is need in the criminal pro
secution. Recovery of civil liability in the administrative proceedings shall ba
r recovery under the Civil Code.
Who are Liable when ULP is Committed by Other than a Natural Person The penalty
shall be imposed upon the guilty officers of a corporation, partnership, associa
tion or entity (Art. 289). If the ULP is committed by a labor organization, the
parties liable are the officers, members of governing boards, representatives or
agents or members of labor associations or organizations who have actually part
icipated in, authorized or ratified such (Art. 249). Prescription of actions for
ULP The offense prescribes in 1 year (Art. 290). Art. 248. Unfair labor practic
es of employers. Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Vol
untary Arbitrators. Conditions precedent to the ULP charge 1. The injured party
is within the definition of employee. 2. The act charged as ULP must fall under th
e prohibitions of Art. 248 (acts of the employer) or 249 (acts of the union). Th
e Hongkong and Shanghai Banking Corp. Employees Union ns. NLRC, GR No. 125038, 0
6 QuickTime and a November 1997 TIFF (Uncompressed) decompressor are needed to se
e this picture. The Code enumerates the acts or categories of acts considered as
ULP. The enumeration does not mean an exhaustive listing of ULP incidents. The
Labor Code does not undertake the impossible task of specifying in precise and u
nmistakable language each incident which constitutes an unfair labor practice. R

ather, it leaves to the court the work of applying the laws general prohibitory l
anguage in the
7
ulterior motive. More so when as in this case there is a clause in the CBA where
the employees are classified into those who are members of the union and those
who are not. In the case of the union members, they derive their benefits from t
he terms and conditions of the CBA which constitutes the law between the contrac
ting parties. Both the employer and the union members are bound by such agreemen
t Philippine Graphic Arts, Inc. v. NLRC, et al., GR No. L-80737, 29 September 19
88 Where the vacation leave without pay, which the employer requires employees t
o take in view of the economic crisis, is neither malicious, oppressive nor vind
ictive, ULP is not committed NLU v. Insular La Yebana Co., 2 SCRA 924 (1961) Exc
ept as limited by special laws, an employer is free to regulate, according to hi
s own discretion and judgment, all aspects of employment, including hiring, work
assignments, working methods, time, place and manner of work, tools to be used,
process to be followed, supervision of workers, working regulations, transfer o
f employees, work supervision, lay off workers and the discipline, dismissal and
recall of work. LVN Picture Workers v. LVN, 35 SCRA 147 (1970) So long as a com
panys management prerogatives are exercised in good faith for the advancement of
the employers interest and not for the purpose of defeating or circumventing the
rights of the employees under special laws or under valid agreements, the Court
will uphold them Determination of validity Necessarily, determining the validity
of an employers acts involve an appraisal of his motives. Thus, there must be a
measure of reliance on the administrative agency. It is for the CIR [NLRC now],
in the first instance, to weigh the employers expressed motive in determining the
effect on the employees of managements otherwise equivocal act. [Republic Saving
s Bank v. CIR, 21 SCRA 226 (1967)]
QuickTime and a AHS/Philippines Employees Union v. NLRC, GR TIFF (Uncompressed) d
ecompressor are needed to see this picture. No. 73721, 30 March 1987 An employer
may treat freely with an employee and is not obliged to support his actions wit
h reason or purpose. However, where the attendant circumstances, the history of
the employers past conduct and like considerations, coupled with an intimate conn
ection between the employers actions and the union affiliations or activities of
the particular employee or employees taken as a whole raise a
suspicion as to the motivation for the employers action, the failure of the emplo
yer to ascribe a valid reason therefore may justify an interference that his une
xplained conduct in respect of the particular employee or employees was inspired
by the latters union membership or activities. Unfair Labor Practice of Employer
s 1. interference 2. yellow dog condition 3. contracting out 4. company unionism
5. discrimination for or against union membership 6. discrimination because of
testimony 7. violation of duty to bargain 8. paid negotiation 9. violation of CB
A First ULP: Interference (Art. 248 (A)) Interference with employee organization
al rights were found where the superintendent of the employer threatened the emp
loyees with cutting their pay, increasing rent of the company houses, or closing
the plant if they supported the union and where the employer encouraged the emp
loyees to sign a petition repudiating the union ULP Even Before Union is Registe
red Judric Canning Corporation v. Inciong, GR No. L51494, 19 August 1982 Under A
rt. 248 (a) of the Labor Code of the Philippines, to interfere with, restrain, or
coerce employees in their exercise of their right to self organization is an unf
air labor practice on the part of the employer. Paragraph (d) of said Article al
so considers it an unfair labor practice for an employers to initiate, dominate,
assist or otherwise interfere the formation or administration of any labor organ
ization, including the giving of financial or other support to it. In this particu
lar case, the private respondents were dismissed, or their services were termina
ted, because they were soliciting signatures in order to form a union within the
plant. Samahan ng mga manggagawa sa Bandolino LMLC et. al. v. NLRC Bandolino Sh
oe Corp., et. al., GR No. 125195, 17 July 1997 In short, an employer who interfe
red with the right to self organization before the union is registered can be he
ld guilty of ULP. Prohibiting organizing activities However, in the absence of s
howing that the illegal dismissal was dictated by anti union motives, the same d
oes not constitute an unfair labor practice

Page 44 of 83
7
as would be a valid ground for strike. The remedy is an action for reinstatement
with backwages and damages. (AHS/Philippine Employees Union v. NLRC, G.R. No. 8
7321, 31 March 1987) Examples of unlawful acts to discourage membership in a lab
or organization: 1. dismissal of union members upon their refusal to give up the
ir membership, under the pretext of retrenchment due to reduced dollar allocatio
ns (Manila Pencil Co. v. CIR, 14 SCRA 953) 2. refusal over a period of years to
give salary adjustments according to the improved salary scales in the collectiv
e bargaining agreements (Benguet Consolidated v. BCI Employees and Workers Union
, 22 SCRA 129) 3. dismissal of an old employee allegedly for inefficiency, on ac
count of her having joined a union and engaging in union activities (East Asiati
c Co. v. CIR, 16 SCRA 820). 4. Dismissal of teachers for fear by the school that
there would be strike the following semester (Rizal Memorial Colleges Faculty U
nion, et. al. v. NLRC GR. Nos. 59012-13, 12 October 1989) 5. A companys capital r
eduction efforts, to camouflage the fact that it has been making profits to just
ify the mass lay-off of its employees especially union members. (Madrigal & Comp
any, Inc. v. Zamora, Gr. No. L-4823, 30 June 1987) CLLG E.G. Gochangco Workers U
nion v. NLRC, GR No. L-67158, 30 May 1988 We have held that unfair labor practic
e cases are not, in view of the public interest involved, subject to comprise. T
otality of Conduct Doctrine
The culpability of employers remarks is to be evaluat
ed on the basis of their implication, against the background of and in conjuncti
on with collateral circumstances.
Under this doctrine, an expression which might
be permissibly uttered by one employer, might be deemed improper when spoken by
a more hostile employer, and consequently actionable as an QuickTime and a unfai
r labor practice. TIFF (Uncompressed) decompressor are needed to see this pictur
e. This doctrine, expressions of opinion by an employer, though innocent in them
selves, frequently were held to be culpable because of the circumstances under w
hich they were uttered, the history of the particular employers labor relations o
r anti union bias or because of their connection with an established collateral
plan of coercion or interference. Lockout or Closure Amounting to ULP
A lockout,
actual or threatened, as a means of dissuading the employees from exercising th
eir rights under the Act is clearly an unfair labor practice. However, to hold a
n employer who actually or who threatens to lock out his employees guilty of a v
iolation of this Act, the evidence must establish that the purpose thereof was t
o interfere with the employees exercise of their rights. Sale in Bad Faith
The sa
le of a business enterprise to avoid the legal consequences of an unfair labor p
ractice is necessarily attended with bad faith and both the vendor and the vende
e continue to be liable to the affected workers. (Cruz v. PAFLU, G.R. No. L-2651
9, 29 October 1971) Where the sale of a business enterprise was attended with ba
d faith, there is no need to consider the applicability of the rule that labor c
ontracts being in personam are not enforceable against the transferee. The latte
r is in the position of tort feasor, having been a party likewise responsible fo
r the damage inflicted on the members of the aggrieved union and therefore canno
t justly escape liability. (Cruz v. PAFLU, G.R. No. L-26519, 29 October 1971) Do
ctrine of Successor-Employer A new company will be treated as a continuation or
successor of the one that closed in the new or take-over company is engaging in
the same business as the closed company or department, or is owned by the same p
eople, and the "closure" is calculated to defeat the worker s organizational rig
ht in which case the closure may be declared a subterfuge. The successor-employe
r doctrine is just an enforcement of the piercing the veil of corporate entity.
Factors to Determine Continuity: 1. Retention of CONTROL 2. Use of the SAME PLAN
T OR FACTORY 3. Use of the SAME OR SUBSTANTIALLY THE SAME EMPLOYEES, workers, su
pervisors or managers 4. Similar or substantially the same work or production un
der SIMILAR OR SUBSTANTIALLY THE SAME WORKING CONDITIONS 5. Use of the SAME MACH
INERY AND EQUIPMENT 6. Manufacture of the SAME PRODUCTS or the performance of th
e same services
Page 45 of 83
7
Second ULP: Yellow Dog (Art. 248 (B)) Yellow Dog Contract a promise exacted from
workers as a condition of employment that they are not to belong to, or attempt
to foster, a union during their period of employment 3 Usual Provisions under t
he Yellow Dog Contract 1. a representation by the employee that he is not a memb
er of a labor union 2. a promise by the employee not to join a labor union 3. a
promise by the employee that, upon joining a labor union, he will quit his emplo
yment Third ULP: Contracting Out [Art. 248 (c)] Contracting Out as ULP
Contracti
ng out services or functions being performed by union members when such act will
interfere with, restrain, or coerce employees in the exercise of their right to
self organize.
However, an employer is not guilty of an unfair labor practice i
n contracting work out for business reasons such as decline in business, the ina
dequacy of his equipment, or the need to reduce the cost, even if the employers e
stimate of his cost is based on a projected increase attributable to unionizatio
n. Runaway shop An industrial plant moved by its owners from one location to ano
ther to escape union labor regulations or state laws or to discriminate against
employees at the old plant because of their union activities.
Resorting to runaw
ay shop is ULP. Where a plant removal is for business reasons but the relocation
is hastened by anti union motivation, the early removal is unfair labor practic
e. It is immaterial that the relocation is accompanied by a transfer of title to
a new employer who is an alter ego of the original employer.
Mere ownership by
a single stockholder or by QuickTime and a another corporation of all or nearly a
ll of the TIFF (Uncompressed) decompressor to see this picture. is not of itself
capital stock of are aneeded corporation sufficient ground for disregarding the
separate corporate personality. [Sunio v. NLRC, 127 SCRA 390 (1984)] Fourth ULP
: Company Domination Of Union (Art. 248 (D)) Manifestations of Domination of a L
abor Union 1. Initiation of the company union idea. This may further occur in th
ree styles: a. outright formation by the employer or his representatives b. empl
oyee formation on outright demand or influence by employer c. managerially motiv
ated formation by employees 2. Financial support to the union. By defraying the
union expenses or pays the attorneys fees to the attorney who drafted the constit
ution and by laws of the union. 3. Employer encouragement and assistance. Immedi
ately granting the union exclusive recognition as a bargaining agent without det
ermining whether the union represents the majority of employees. 4. Supervisory
assistance. This takes the form of soliciting membership, permitting union activ
ities during working time or coercing employees to loin the union by threats of
dismissal or demotion (Philippine American Cigar & Cigarette Factory Workers Uni
on v. Philippine American Cigar & Cigarette Mfg. Co., Inc., 7 SCRA 375). Oceanic
Air Products, Inc. v. CIR, GR No. L18704, 31 January 1963 A labor union is comp
any dominated where it appears that key officials of the company have been forci
ng employees belonging to rival labor union to join the former under pain of dis
missal should they refuse to do so; that key officials of the company, as well a
s its legal counsel, have attended the election of officers of the former union;
that officers and members of the rival union were dismissed allegedly pursuant
to a retrenchment policy of the company, after they had presented demands for th
e improvement of the working conditions despite its alleged retrenchment policy;
and that, after dismissal of the aforesaid officers of the rival labor union, t
he company engages the services of new laborers Fifth ULP: Discrimination (Art.
248 (E)) Pagkakaisang Itinataguyod ng mga Manggagawa sa Ang Tibay, et. al. v. An
g Tibay, et. al., GR No. L-22273, 16 May 1967 Under the Industrial Peace Act (as
under the present Labor Code), to constitute an unfair labor practice, the disc
rimination committed by the
Page 46 of 83
7
employer must be in regard to the hire or tenure of employment or any term or co
ndition of employment to encourage or discourage membership in any labor organiz
ation. The exaction by the Company, from strikers returning to work, of a promis
e not to destroy company property and no to commit acts of reprisal against the
Union members who did not participate in the strike, cannot be considered as int
ended to encourage or discourage Union membership. Taking the circumstances surr
ounding the prescribing of that condition, the requirement by the Company is act
ually an act of self preservation and designed to inure the maintenance of peace
and order in the Company premises Discrimination in Bonus Allocation or Salary
Adjustments There is unfair and unjust discrimination in the granting of salary
adjustments where the evidence shows that (a) the management paid the employees
of the unionized branch; (b) where salary adjustments were granted to employees
of one of its non - unionized branches although it was losing in its operations;
and (c) the total salary adjustments given every ten of its unionized employees
would not even equal the salary adjustments given one employee in the non union
ized branch. (Manila Hotel Company v. Pines Hotel Employees Assn. (CUGCO) and CIR
, G.R. No. L-30818, 28 September 1972) Discrimination in Layoff or Dismissal
Eve
n where business conditions justified a layoff of employees, unfair labor practi
ces in the form of discriminatory dismissal were found where only unionists were
permanently dismissed while non unionists were not. Test of Discrimination
For
the purpose of determining whether or not a discharge is discriminatory, it is n
ecessary that the underlying reason for the discharge be established. The fact t
hat a lawful cause for discharge is available is not a defense where the employe
e is actually discharged because of his union activities. If the discharge is ac
tually motivated by and a a lawful reason, the QuickTime fact decompressor that t
he employee is TIFF (Uncompressed) are needed to see this picture. engaged in un
ion activities at the time will not lie against the employer and prevent him fro
m the exercise of his business judgment to discharge an employee for cause. (NLR
B v. Ace Comb Co., 342 F. 2 841) Discharge due to union activity, a question of
fact Philippine Metal Foundries, Inc., v. CIR, GR Nos. L-34948 49, 15 May 1979 T
he question of whether an employee was discharged because of his union activitie
s is essentially a question of fact as to which the findings of the court of Ind
ustrial Relations are conclusive and binding if supported by substantial evidenc
e considering the record as a whole. When there is Valid Discrimination: Union S
ecurity Clause Union security is a generic term which is applied to and comprehe
nds closed shop, union shop, maintenance of membership or any other form of agre
ement which imposes upon employees the obligation to acquire or retain union mem
bership as a condition affecting employment. It is indeed compulsory union membe
rship whose objective is to assure continued existence of the union. In a sense,
there is discrimination when certain employees are obliged to join a particular
union. But it is discrimination favoring unionism; it is a valid kind of discri
mination.
The employer is not guilty of unfair labor practice if it merely compl
ies in good faith with the request of the certified union for the dismissal of e
mployees expelled from the union pursuant to the union security clause in the co
llective bargaining agreement. (Soriano v. Atienza, GR No. 68619, 16 March 1989)
Villar vs Inciong, 121 SCRA 444 (1983) It is true that disaffiliation from a la
bor union is not open to legal objection. It is implicit in the freedom of assoc
iation ordained by the Constitution. But a closed shop is a valid form of union
security, and such provision in a collective bargaining agreement is not a restr
iction of the right of freedom of association guaranteed by the Constitution. Vi
ctorias Milling Co., Inc. v. Victorias Manapla Workers Organization PAFLU, GR No
. L-18467, 30 September 1963 Another reason for enforcing the closed shop agreem
ent is the principle of sanctity or inviolability of contracts guaranteed by the
Constitution. As a matter of principle, the provision of the Industrial Peace A
ct granting freedom to employees to organize themselves and select their represe
ntative for entering into bargaining agreements, should be subordinated to the c
onstitutional provision protecting the sanctity of contracts. Advantages of Clos
ed Shop Agreement
Page 47 of 83
7
1. increases the strength and bargaining power of labor organizations. 2. preven
ts non union workers from sharing in the benefits of the unions activities withou
t also sharing its obligations. 3. prevents the weakening of labor organizations
by discrimination against union members. 4. eliminates the lowering of standard
s caused by competition with non - union workers. 5. enables labor organizations
effectively to enforce collective agreements. 6. facilitates the collection of
dues and enforcement of union rules. 7. creates harmonious relations between the
employer and employee (NLU v. Aguinaldos Echague, Inc., 51 O.G. 2898) Disadvanta
ges of a Closed Shop Agreement 1. results in monopolistic domination of employme
nt by labor organizations 2. interferes with the freedom of contract and persona
l liberty of the individual worker 3. compels employers to discharge all non uni
on workers regardless of efficiency, length of service, etc. 4. facilitates the
use of labor organizations by unscrupulous union leaders for the purpose of exto
rtion, restraint of trade, etc. 5. denies to non union workers equal opportunity
for employment 6. enables union to charge exorbitant dues and initiation fees V
alid dismissal because of application of union security clause Malayang Samahan
ng mga Manggagawa sa M. Greenfield v. Ramos, GR No. 113907, 28 February 2000 Uni
on security clauses in the collective bargaining agreements, if freely and volun
tarily entered into, are valid and binding. Thus, the dismissal of an employee b
y the company pursuant to a labor unions demand in accordance with a union securi
ty agreement does not constitute unfair labor practice. Manalang, et. al. v. Art
ex Development Co., et. al., GR No. L-20432, 30 October 1967 A union member who
is employed under an agreement between the union and his employer is bound by th
e provisions thereof since it is a joint and several contract of the members of
the union entered into by the union as their agent. Villar v. Inciong, 121 SCRA
444 (1983)
Page 48 of 83
Petitioners, although entitled to disaffiliation from their union and to forma n
ew organization of their own, must, however, suffer the consequences of their se
paration from the union under the security clause. Due process required in enfor
cing union security clause; intra union matter becomes termination dispute with
Although a union security clause in a CBA may be validly enforced and d
employer
ismissal pursuant thereto may likewise be valid, this does not erode the fundame
ntal requirement of due process. The reason behind the enforcement of union secu
rity clauses which is the sanctity and inviolability of contracts cannot overrid
e ones right to due process.
While it is true that the issue of expulsion of the
local union officers is originally between the local union and the federation, h
ence, intra union in character, the issue was later on converted into a terminat
ion dispute when the company dismissed the petitioners from work without the ben
efit of a separate notice and hearing. Thus, notwithstanding the fact that the d
ismissal was at the instance of the federation and that it undertook to hold the
company free from any liability resulting from such a dismissal, the company ma
y still be held liable if it was remiss in its duty to accord the would be dismi
ssed employees their right to be heard on the matter. Liability of union to pay
wage and fringe benefits of illegally dismissed employee Where the employer comp
elled the employee to go on forced leave upon recommendation of the union for al
leged violation by the employee of the closed shop agreement, the NLRC correctly
ordered the reinstatement of the employee and directed the union to pay the wag
es and fringe benefits which employees failed to receive as a result of her forc
ed leave and to pay attorneys fees. The employer would not have compelled the emp
loyee to go on forced leave were it not for the unions insistence and demand to t
he extent that because of the failure of the employer to dismiss the employee as
requested, the union filed a notice of strike on the issue of unfair labor prac
tice. Moreover, under the collective bargaining agreement between the union and
the employer, the union holds the company free and blameless from any liabilitie
s that may arise should the employee question the dismissal. (Manila Mandarin Em
ployees Union v. NLRC, GR No. 76989, 29 September 1987) Employer in good faith n
ot liable
7
Where the employer dismissed his employees in the belief in good faith that such
dismissal was required by the closed shop provisions of the collective bargaini
ng contract with the union, he may not be ordered to pay back compensation to su
ch employees although their dismissal is found to be illegal. (Confederated Sons
of Labor v. Anakan Lumber co., et. al., GR No. L-12503, 29 April 1960) Employee
s not covered by the closed shop provision 1. any employee who at the time the c
losed shop agreement takes effect is a bona fide member of a religious organizat
ion which prohibits its members from joining labor unions of religious grounds 2
. employees already in service and already members of a labor union or unions ot
her than the majority union at the time the closed shop agreement took effect 3.
confidential employees who are excluded from the rank and file bargaining unit
4. employees excluded from the closed shop by express terms of the agreement It
is well settled in this jurisdiction that, in the absence of a manifest intent t
o the contrary, closed shop provisions in a collective bargaining agreement appl
y only to persons to be hired or to employees who are not yet members of any lab
or organization and that said provisions of the agreement are not applicable to
those already in the service at the time of the execution. To hold that the empl
oyees in a company who are members of a minority union may be compelled to disaf
filiate from their union and join the majority or contracting union, would rende
r nugatory the right of all employees to self organization and to form, join or
assist labor organizations of their own choosing, a right guaranteed by the Indu
strial Peace Act as well as by the Constitution. (Kapisanan ng mga Manggagawa ng
Alak (NAFLU) v. Hamilton Distellery Co., et. al., GR No. L-18112, 30 October 19
62) Agency fee instead of union membership Under the agency shop clause of a CBA
, an QuickTime and a the union as a employee is not required to join TIFF (Uncomp
ressed) decompressor are employment, needed to see this picture. condition of co
ntinued but must pay the union a service fee (usually equivalent to union dues a
nd initiation fees). Since a union is required by statute to act as the bargaini
ng representative of all employees, both union and non union, within their barga
ining unit, the justification for the clause is that the nonmember should contri
bute towards the cost of collective bargaining process without supporting it fin
The test
ancially. Sixth ULP: Discrimination Because Of Testimony [Art. 248 (f)]
imony or proceedings might involve wages, employees benefits disciplinary rules,
or organizational rights, or anything covered by the Labor Code. What is chargea
ble as ULP is the employers retaliatory act regardless of the subject of the empl
oyees complaint or testimony. Seventh ULP: Violation of the Duty to Bargain [Art.
248 (g)] Four Forms of ULP in bargaining: a. Failure or refusal to meet and con
vene b. Evading the mandatory subjects of bargaining c. Bad faith in bargaining,
including failure or refusal to execute the collective agreement, if requested
d. Gross violation of the CBA Eighth ULP: Paid Negotiation [Art. 248 (H)] Self o
rganization and collective bargaining are treasured rights of the workers. The l
aw zealously shields them from corruption. It is a punishable act of ULP for the
employer to pay the union or any of its officers or agents any negotiation fee
or attorneys fees as part of the settlement in collective bargaining or any labor
dispute. To do so is not only unlawful. It is ethically reprehensible. Correspo
ndingly, Art. 249 prohibits union officers or agents from asking for or acceptin
g such payments. Such act, furthermore, is a ground for cancellation of union re
gistration under Art. 239 (g). Ninth ULP: Violation of the CBA Implementation of
the CBA is still part of the bargaining process. The duty to bargain requires g
ood faith, and good faith implies faithful observance of what has been agreed up
on. It logically follows that noncompliance with the agreement is non observance
of good faith in bargaining; therefore, the noncompliance amounts to a ULP.
Vio
lation of the CBA must be gross. Relief In ULP Cases 1. Cease and Desist Order T
o support a cease and desist order, the record must show that the restrained mis
conduct was an issue in the case; that there was a finding of fact of said misco
nduct and such finding was supported by evidence.
The Court is not authorized to
issue blank cease and desist orders, but must confine its
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7
injunction orders to specific act or acts which are related to past misconduct.
3. 2. Affirmative Order
In addition to a cease and desist order, the court may i
ssue an affirmative order to reinstate the said employee with back pay from the
date of the discrimination.
If other laborers have been hired, the affirmative o
rder shall direct the respondent to dismiss these hired laborers to make room fo
r the returning employee. 3. Court may order the Employer to Bargain, CBA may be
imposed 4. Strike by union members ULP is not subject to compromise CLLC E.G. G
ochangco Workers Union, et. al. v. NLRC, GR No. 67158, 30 May 1988 ULP cases are
not, in view of the public interest involved, subject to compromises. The relat
ion between capital and labor are not merely contractual. They are so impressed
with public interest that labor contracts must yield to the common good. ULP in
a given period should be included in a single charge Dionela, et. al. v. CIR et.
al., GR No. L-18334, 31 August 1963 When a labor union accuses an employer of a
cts of unfair labor practice allegedly committed during a given period of time,
the charges should include all acts of unfair labor practice committed against a
ny and all members of the union during that period. The union should not, upon t
he dismissal of the charges first preferred, be allowed to split its cause of ac
tion and harass the employer with subsequent charges, based upon acts committed
during the same period of time. Art. 249. Unfair organizations. labor practices
of labor membership or continuation of membership is made available to other mem
bers. To refuse to bargain collectively with the employer, if it is the represen
tative of the employee. To attempt to or cause the employer to pay money or othe
r things of value, in the nature of an exaction, for services which are not perf
ormed or not to be performed. This includes fee for union negotiations. To ask o
r accept negotiations or attorneys fees from employers as part of the settlement
in any dispute. Violation of CBA.
4.
5.
6.
Restraint or Coercion by Labor Organization; Interference by Union is not ULP [A
rt. 249 (a)] A labor organization commits ULP when it restrains or coerces emplo
yees in their right to self organization.
A labor organization may interfere in
the employees right to self organization as long as the interference does not amo
unt to restraint or coercion. Union cannot coerce employees to join a strike Sim
ilarly, violation is committed when a union threatens the employees with bodily
harm in order to force them to strike. A union violates the law when, to restrai
n or coerce nonstrikers from working during the strike, it: o assaults or threat
ens to assault them o threatens them with the loss of their jobs o blocks their
ingress to and egress from the plant o damages nonstrikers automobiles or forces
them off the highway o physically preventing them from working o sabotages the e
mployers property in their presence, thereby creating an atmosphere of fear or vi
olence o demonstrates loudly in front of a nonstrikers residence with signs and s
houts accusing the nonstriker of scabbing o holding the nonstriker up to ridicule
o seeking public condemnation of the nonstriker Union-Induced Discrimination Arb
itrary use of union security clause
The broad rule is that the union has the rig
ht to determine its membership and to prescribe the conditions for the acquisiti
on and retention
TIFF (Uncompressed) decompressor Unfair Labor Practices of Labor Organization ar
e needed to see this picture. 1. To restrain or coerce employees in the exercise
of their right to self organization. 2. To attempt to or cause an employer to d
iscriminate against an employee to whom membership in the labor organization was
denied or to terminate an employee on any ground other than he usual terms and
conditions under which
QuickTime and a
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thereof. Consequently, admission to membership may not be compelled.
This rule,
however, is qualified in the case of labor unions holding a monopoly in the supp
ly of labor, either in a given locality, or as regards a particular employer by
reason of a closed shop or similar agreements. In such case, qualified applicant
s may not be barred by unreasonable rules. Featherbedding employee practices whi
ch create or spread employment by unnecessarily maintaining or increasing the nu
mber of employees used, or the amount of time consumed, to work on a particular
job It may take the form of minimum crew regulations on the railroad, make work
rules such as the setting of and prompt destruction of unneeded bogus type in th
e newspaper industry, stand by pay for musicians when a radio station broadcasts
music from phonograph records or production ceilings for work on the assembly l
ines or at the construction site
Salunga v. Court of Industrial Relations, 21 SCRA 216 (1967) Employee resigned f
rom the union. The union requested the company to enforce the closed shop provis
ion of the CBA. Company deferred action and informed the employee of the possibl
e effects of his resignation from the union. Employee tried to revoke his resign
ation from the union but this denied by the union. Company finally granted the r
equest of the union and terminated the employee. Employee complained of illegal
dismissal. Held: Labor unions are not entitled to arbitrarily exclude qualified
applicants for membership and a closed shop provision will not justify the emplo
yer in discharging, or a union in insisting upon the discharge of, an employee w
hom the union thus refuses to admit to membership, without any reasonable ground
thereof. Having been dismissed from service owing to unfair labor practice on t
he part on the part of the union, petitioner is entitled to reinstatement as mem
ber of the union and to his former or substantially equivalent position in the c
ompany, without prejudice to his seniority and/or rights and privileges, and wit
h back pay. Manila Mandarin Employees Union v. NLRC, 154 SCRA 369 (1987) Union s
ecurity clauses are also governed by law and by principles of justice, fair play
, and legality. Union security clauses cannot be used by union officials against
an employer, much less their own members, except with a high sense of responsib
ility, QuickTime and a fairness, prudence TIFF and judiciousness. (Uncompressed)
decompressor
III. RIGHT TO COLLECTIVE BARGAINING A. DUTY TO BARGAIN COLLECTIVELY Art. 250. Pr
ocedure in collective bargaining. Art. 251. Duty to bargain collectively in the
absence of collective bargaining agreements. Art. 252. Meaning of duty to bargai
n collectively. Art. 253. Duty to bargain collectively when there exists a colle
ctive bargaining agreement. Art. 253-A. Terms of a collective bargaining agreeme
nt. Art. 254. Injunction prohibited. Art. 231. Registry of unions and file of co
llective bargaining agreements. Collective Bargaining Agreement a contract execu
ted upon request of either the employer or the exclusive bargaining representati
ve of the employees incorporating the agreement reached after negotiations with
respect to wages, hours of work and all other terms and conditions of employment
, including proposals for adjusting any grievance or questions under the agreeme
nt Parties to Collective Bargaining 1. Employer 2. Employees, represented by bar
gaining agent
the
exclusive
Refusal To Bargain [Art. 249(c)]
A union violates its duty to bargain collective
ly by entering negotiations with a fixed purpose of not reaching an agreement or
signing a contract. Featherbedding And Make Work Arrangements [Art. 249 (d)]
Jurisdictional Requirements 1. Status of majority representation of the employee
s representative. 2. Proof of majority representation 3. Demand to bargain under

art. 250 (a) (Kiok Loy v. NLRC, 141 SCRA 179)
The duty of the employer to bargai
n collectively arises only after the union requests the employer to bargain. If
there is no demand, the employer cannot be in default. When there is a legitimat
e representation issue,
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7
there is no duty to bargain collectively on the part of the employer [Lakas ng M
anggagawang Makabayan v. Marcelo Enterprises, 118 SCRA 425 (1982)] Commencement
of Bargaining
During Certification Year within 12 months after the determination
and certification of the employees exclusive bargaining representative. Bargaini
ng Procedure The parties may agree on the bargaining procedure. If there is a pr
ocedure agreed upon, the Labor Code Procedure applies suppletorily. Bargaining P
rocedure under the Labor Code (Art. 250) (ANNEX G) Duty to Bargain Collectively
When There Is No Collective Bargaining Agreement 1. the performance of a mutual
(employer and the exclusive bargaining agent) obligation to meet and convene, 2.
promptly and expeditiously in good faith 3. for the purpose of negotiating an a
greement with respect to wages, hours of work and all other terms and conditions
of employment, including proposals for adjusting any grievances or questions ar
ising under such agreement, and 4. Executing a contract incorporating such agree
ments.
The duty does not compel any party to agree to a proposal or to make any
concession. The CBA remains in full force and effect during the 60 day period an
d until a new agreement is reached. Kiok Loy v. NLRC, 141 SCRA 179 (1986) The un
ion gave the employer copies of its proposed CBA and requested the company to ma
ke counter-proposals. The company did not reply. The union again wrote the compa
ny but this was also ignored. Held: It is unfair labor practice for an employer
to refuse to meet and convene promptly and expeditiously in good faith for the p
urpose of negotiating an agreement for wages, hours of work and other terms of e
mployment. A companys refusal to make counter-proposal if considered in relation
to the entire bargaining process, may indicate bad faith and this is especially
true where the Unions request for a counter proposal is left unanswered. We agree
with the pronouncement that it is not obligatory upon either side of a labor co
ntroversy to precipitately accept or agree to the proposals of the other. But an
erring party should not be tolerated and allowed with impunity to resort to sch
emes feigning negotiations by going through empty gestures. Evading the Mandator
y Subjects Mandatory Subjects 1. Wages 2. Hours of Work 3. Other Terms and Condi
tions of Employment
Where the subject of the dispute is a mandatory bargaining s
ubject, either party may bargain to an impasse as long as he bargains in good fa
ith. Where the subject is nonmandatory, a party may not insist on bargaining to
the point of impasse. His insistence may be construed as evasion of the duty to
bargain.
Duty to Bargain Collectively when there is a Collective Bargaining Agreement Whe
n there is a CBA, the duty to bargain also means that neither party shall termin
ate nor modify such agreement during its lifetime. But 60 days before the CBA ex
pires, either party may notify the other in writing that it wants to terminate o
r modify the agreement.
th are needed to see this picture. - Violation of the Duty to 4 Forms of 7 ULP B
argain Collectively 1. Failure or refusal to meet and convene 2. Evading the man
datory subjects of bargaining 3. Bad faith in bargaining 4. Gross violation of t
he CBA
QuickTime and a TIFF (Uncompressed) decompressor
Bargaining in Bad Faith
There is no per test of good faith in bargaining. The go
od faith or bad faith is an inference to be drawn from the facts and is largely
a matter for the NLRBs expertise. The charge of bad faith should be raised while
the bargaining is in progress. Samahang Manggagawa sa Top Form Manufacturing-Uni
ted Workers of the Philippines v. NLRC, GR No. 13856, 07 September 1998 With the
execution of the CBA, bad faith can no longer be imputed upon any of the partie
s thereto. All provisions in the CBA are supposed to have been jointly and volun
tarily incorporated therein by the parties. This is not a case where private res
pondent
Page 52 of 83
Failure or Refusal to Meet and Convene
7
exhibited an indifferent attitude towards collective bargaining because the nego
tiations were not the unilateral activity of petitioner union. The CBA is good e
nough that private respondent exerted reasonable effort of good faith bargaining.
Lakas ng Manggagawang Makabayan v. Marcelo Enterprises, GR Nos. L-38258, 38260,
19 November 1982 It is also evident from the records that the charge of bargaini
ng in bad faith imputed to the respondent companies, is hardly credible. In fact
, such charge is valid as only against the complainant LAKAS. The parties had a
total of 5 conferences for purposes of collective bargaining. It is worth consid
ering that the first strike of Sept. 4 1967 was staged less than a week after th
e 4th CBA conference and without any benefit of any previous strike notice. In t
his connection, it must be stated that the notice of strike filed on June 13, 19
67 could not have been the strike notice for the first strike because it was alr
eady withdrawn on July 14, 1967. Thus, from these stated facts can be seen that
the first strike was held while the parties were in the process of negotiating.
The companys refusal to accede to the demands of LAKAS appears to be justified si
nce there is no showing that these companies were in the same state of financial
and economic affairs. There is reason to believe that the first strike was stag
ed only for the purpose of compelling the respondent companies to accede to the
inflexible demands of the complainant LAKAS. Registration of Collective Bargaini
ng Agreements Where to file
With the Regional Office which issued the certificat
e of registration/certificate of creation of chartered local.
If the certificate
of creation of the chartered local was issued by the bureau, the agreement shal
l be filed with the Regional Office which has jurisdiction over the place where
it principally operates Multi-employer collective bargaining agreements shall be
filed with the Bureau. When to file within 30 days from execution of the CBA. R
equirements for registration The application for CBA registration shall be accom
panied by the original and 2 duplicate copies of the following documents. 1. CBA
2. A statement that the CBA was posted in at least
2 conspicuous places in the establishment concerned for at least 5 days before i
ts ratification. 3. Statement that the CBA was ratified by the majority of the e
mployees in the bargaining unit.
The following documents must be certified under
oath by the representative of the employer and the labor union. No other docume
nt shall be required in the registration of the CBA.
Procedure 1. The Regional Office or the Bureau shall act on the applications wit
hin 5 days form receipt of the application. 2. The Regional Office or Bureau may
within 5 days from receipt of the application, a. approve the application and i
ssue the certificate of registration or b. deny the application for failure to c
omply with the requirements. c. If the supporting documents are not complete, or
are not verified under oath, the Regional Office or the Bureau shall notify the
applicants in writing of the requirements needed to complete the registration.
o If the applicant fails to complete the requirements within 10 days from receip
t of notice, application is denied without prejudice. o The denial shall be in w
riting, stating in clear terms the reason therefore and served upon the applican
t union and employer within 24 hours from issuance. 3. The denial by the Regiona
l Office of the registration of single enterprise collective bargaining agreemen
ts may be appealed to the Bureau while the denial by the Bureau of the registrat
ion of multi-employer collective bargaining agreements may be appealed to the Of
fice of the Secretary, both within 10 days from receipt of the notice of denial.
4. The memorandum of appeal is filed with the Regional Office or the Bureau, as
the case may be. 5. The memorandum of appeal and the entire records of the appl
ication shall be transmitted to the Bureau or the Office of the Secretary within
24 hours from receipt of the memorandum of appeal. 6. Bureau or the Office of t
he Secretary shall resolve within the same period and in the same manner as that
prescribed for inter/intra-union disputes.
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Duration of CBA 1. Representation Aspect: 5 years Refers to the identity and maj
ority status of the union that negotiated the CBA as the exclusive bargaining re
presentative. 2. All other provisions should be renegotiated not later than 3 ye
ars from effectivity. Refers to the rest of CBA, economic as well as non-economi
c other than representational. Hold Over Principle The CBA shall be in full forc
e and effect until the parties reach a new agreement. New Pacific Timber & Suppl
y Company Inc. v. NLRC, 328 SCRA 404 (2000) It is clear from the above provision
of law (Art. 253) that until a new CBA has been executed by and between the par
ties, they are duty-bound to keep the status quo and to continue in full force a
nd effect the terms and conditions of the existing agreement. The law does not p
rovide for any exception nor qualification as to which of the economic provision
s of the existing agreement are to retain force and effect, therefore, it must b
e understood as encompassing all the terms and conditions in the said agreement.
It is the duty of both parties to continue in full force and effect the terms a
nd conditions of the existing agreement during the 60-day period and/or until a
new agreement is reached by the parties. To rule otherwise would be to create a
gap during which no agement would govern, from the time the old contract expired
to the time a new agreement shall have been entered into. Rules on Effectivity
and Retroactivity of New CBA (Apply Only to Provisions Other than Representation
al) I. CBA as a Result of Negotiations A. With Previous CBA 1. Effectivity of ne
w CBA entered into within 6 months after the expiration of the old CBA: QuickTim
e and a TIFF (Uncompressed) decompressor retroact to the date following the expir
y date. are needed to see this picture. 2. Effectivity of new CBA entered into a
GR: effective on the date
fter 6 months following the expiration of the old CBA:
agreed upon by the parties. If there is no agreement, the arbitral award will r
etroact to the day after the end of the 6-month period after the expiry of the o
ld CBA. B. New and First-Ever CBA (No previous CBA) effective on date agreed upo
n by the parties II. Arbitral Awards A. With Previous CBA 1. Arbitral award fina
l within 6 months from old CBA: retroact to the date following the expiry of the
old CBA. 2. Arbitral award final after 6 months following the expiration of the
old CBA:
General Rule: the agreement between the parties. If there is no agreem
ent, retroact to the st 1 day following the 6-month period B. New and First-Ever
CBA (No previous CBA) Labor Secretarys discretion will be followed. B. BARGAININ
G AGENT & CERTIFICATION ELECTION PROCEEDINGS Art. 255. Exclusive bargaining repr
esentation and workers participation in policy and decisionmaking. Art. 256. Repr
esentation issue in organized establishments. Art. 257. Petitions in unorganized
establishments. Art. 258. When an employer may file petition. Art. 259. Appeal
from certification election orders. Bargaining Unit a group of employees sharing
mutual interests within a given employer unit, comprised of all or less than al
l of the entire body of employees in the employer unit or any specific occupatio
nal or geographical grouping within such employer unit Certification Election/Co
nsent Election The process of determining through secret ballot the sole and exc
lusive representative of the employees in an appropriate unit for purposes of co
llective bargaining or negotiation. A certification election is ordered by the D
epartment, while a consent election is voluntarily agreed upon by the parties, w
ith or without the intervention by the Department. Organized Establishment an en
terprise where there exists a recognized or certified sole and exclusive bargain
ing agent Run-off Election an election between the labor unions receiving the 2
highest number of votes in a certification or consent election with 3 or more ch
oices, where such a certified or consent results in
Page 54 of 83
7
none of the 3 or more choices receiving the majority of the valid votes cast; pr
ovided that the total number of votes for all contending unions is at least 50%
of the number if votes cast Voluntary Recognition process by which a legitimate
labor union is recognized by the employer as the exclusive bargaining representa
tive or agent in a bargaining unit, reported with the Regional Office in accorda
nce with Rule VII, section 2 of these Rules. 3 Methods to Determine the Bargaini
ng Union 1. Voluntary Recognition 2. Certification Election 3. Consent Election
Voluntary Recognition When to file
In unorganized establishments with only one l
egitimate labor organization, the employer may voluntarily recognize the represe
ntation status of the union. Within 30 days from such recognition, the employer
and union shall submit a notice of voluntary recognition. Where to file
Regional
Office which issued the recognized labor unions certificate of registration or c
ertificate of creation of a chartered local. Requirements for Voluntary Recognit
ion The notice of voluntary recognition shall be accompanied by the original cop
y and 2 duplicate copies of the following documents: 1. A joint statement under
oath of voluntary recognition attesting to the fact of voluntary recognition. 2.
Certificate of posting of the joint statement of voluntary recognition for 15 c
onsecutive days in at least 2 conspicuous places in the establishment or bargain
ing unit where the union seeks to operate. 3. Approximate number of employees in
the bargaining unit, accompanied by the names of QuickTime and a those who suppo
rt the voluntary recognition TIFF (Uncompressed) decompressor are needed to see
this picture. comprising at least a majority of the members of the bargaining un
it. 4. A statement that the labor union is the only legitimate labor organizatio
n operating within the bargaining unit. These documents shall be certified under
oath by the employers representative and president of he recognized labor union.
Effects of recording of fact of Voluntary Recognition 1. The recognized labor u
nion shall enjoy the rights, privileges and obligations of an existing bargainin
g agent of all the employees in the bargaining unit. 2. A petition for certifica
tion election cannot be filed for 1 year from the date of entry of the voluntary
recognition. Certification Election Who may file 1. any legitimate labor organi
zation 2. employer, when requested to bargain collectively Where to file Regiona
l Office which issued the certificate of registration/certificate of creation. W
hen to file
Anytime, except: 1. When voluntary recognition has been entered, or
a valid certification, consent or run-off election has been conducted within 1 y
ear prior to the filing. 2. negotiations in good faith with the employer 3. barg
aining deadlock had been submitted to conciliation or arbitration or had become
the subject of a valid notice of strike or lockout. 4. Registered CBA may file o
nly within 60 days prior to the expiration of the CBA. Grounds for Denying Petit
ion 1. the petitioner is not listed in the Departments registry of legitimate lab
or unions or that its legal personality has been revoked or cancelled with final
ity in accordance with Rule XIV of these Rules;
Page 55 of 83
Procedure: Voluntary Recognition 1. If notice of voluntary recognition is suffic
ient in form, number and substance, and there is no other registered labor union
operating within the bargaining unit, the Regional Office shall record the fact
of voluntary recognition within 10 days from receipt of notice. 2. Where notice
of voluntary recognition is insufficient, the Regional Office shall notify the
labor union of its findings and advise it to comply with the necessary requireme
nts. If the employer or union failed to complete the requirements for voluntary
recognition within 30 days from receipt of advisory, the Regional Office shall r
eturn.
7
2. the petition was filed before or after the freedom period of a duly registere
d collective bargaining agreement; provided that the sixty-day period based on t
he original collective bargaining agreement shall not be affected by any amendme
nt, extension or renewal of the collective bargaining agreement; (Contract Bar)
3. the petition was filed within 1 year from entry of voluntary recognition or a
valid certification, consent or run-off election and no appeal on the results o
f the certification, consent or run-off election is pending; (12-month Bar/Certi
fication year bar) 4. a duly certified union has commenced and sustained negotia
tions with the employer in accordance with Article 250 of the Labor Code within
the one-year period referred to in Section 14.c of this Rule, or there exists a
bargaining deadlock which had been submitted to conciliation or arbitration or h
ad become the subject of a valid notice of strike or lockout to which an incumbe
nt or certified bargaining agent is a party; (Negotiation Bar) 5. in case of an
organized establishment, failure to submit the 25% support requirement for the f
iling of the petition for certification election. Procedure: Petition for Certif
ication Election (ANNEX H) Procedure: Conduct of Certification Election (ANNEX I
) Preliminary Conference
The Med-Arbiter shall conduct a preliminary conference
and hearing within 10 days from the receipt of the petition to determine the fol
lowing: a. the bargaining unit to be represented; b. contending labor unions; c.
possibility of consent elections; d. existence of any of the bars to certificat
ion election; and e. such other matters as may be relevant for the final disposi
tion of the case In case the contending unions agree to a consent QuickTime andno
t a election, the Med-Arbiter shall issue a formal TIFF (Uncompressed) decompres
sor are needed see this picture. of certification order calling for the to condu
ct election, but shall enter the fact of the agreement in the minutes of the hea
ring.
In organized establishments, no order or decision shall be issued during t
he freedom period. The order granting the petition shall state the following: a.
Name of the employer or establishment b. Description of the bargaining unit c.
Statement that none of the grounds for dismissal exists d. Names of contending l
abor unions e. Directive upon the employer and the contending union(s) to submit
within 10 days from receipt of the order, the certified list of employees in th
e bargaining unit.
Prohibited Grounds for Denial of Petition (must be heard and resolved by the Reg
ional Director in an independent petition for cancellation of registration: 1. v
alidity of petitioning unions certificate of registration 2. legal personality as
a labor organization 3. validity of registration 4. execution of CBAs Appeal a.
order granting conduct of certification election in unorganized establishments
NOT appealable b. all others appealed to the DOLE Sec. within 10 days from recei
pt thereof. Pre-election Conference
Within twenty-four (24) hours from receipt o
f the assignment for the conduct of a certification election, the Election Offic
er shall cause the issuance of notice of pre-election conference upon the conten
ding unions and the employer. Must be scheduled within 10 days from receipt of t
he assignment. Must be completed within 30 days from the last hearing. Purpose o
f Pre-election Conference The pre-election conference shall set the mechanics fo
r the election and determine the following: 1. date, time and place of the elect
ion, not be later than forty-five (45) days from the date of the first pre-elect
ion conference
on a regular working day
within the employers premises, unless cir
cumstances require otherwise 2. list of eligible and challenged voters 3. number
and location of polling places or booths and the number of ballots to be prepar
ed with appropriate translations, if necessary
Order/Decision on the Petition within 10 days from the date of the last hearing,
the Med-Arbiter shall issue a formal order granting or denying the petition.
Page 56 of 83
7
4. name of watchers or representatives and their alternates for each of the part
ies during election 5. mechanics and guidelines of the election Consent Election
In case the contending unions agree to a consent election, the Med-Arbiter shal
l not issue a formal order calling for the conduct of certification election, bu
t shall enter the fact of the agreement in the minutes of the hearing.
The minut
es of the hearing shall be signed by the parties and attested to by the Med-Arbi
ter. The Med-Arbiter shall, immediately thereafter, forward the records of the p
etition to the Regional Director or his/her authorized representative for the de
termination of the Election Officer by the contending unions through raffle.
The
first pre-election conference shall be scheduled within ten (10) days from the
date of entry of agreement to conduct consent election. (See Annex H) Effect of
failure to appear during the pre-election conference considered as a waiver to b
e present and to question or object to any of the agreements reached in said pre
-election conference However, the non-appearing party or the employer still has
the right to be furnished notices of subsequent pre-election conferences and to
attend the same Qualification of Voters
All employees who are members of the app
ropriate bargaining unit at the time of the issuance of the order granting the c
onduct of a certification election shall be eligible to vote.
An employee who ha
s been dismissed from work but has contested the legality of the dismissal in a
forum of appropriate jurisdiction at the time of the issuance of the order for t
he conduct of a certification election shall be considered a qualified voter o u
nless his/her dismissal was declared valid in a final judgment at the time of th
e conduct of the certification election.
needed to see this picture. Inclusion-Exclusionare of Voters In case of disagree
ment over the voters list or over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be segregated and sealed in ind
ividual envelopes. QuickTime and a TIFF (Uncompressed) decompressor
2. in 2 most conspicuous places in the company premises Contents of the Notice 1
. the date and time of the election 2. names of all contending unions 3. the des
cription of the bargaining unit and the list of eligible and challenged voters T
he posting of the notice of election, the information required to be included th
erein and the duration of posting cannot be waived by the contending unions or t
he employer.
Challenging of Votes An authorized representative of any of the contending union
s and employer Before it is deposited in the ballot box
Grounds: a. that there i
s no employer-employee relationship between the voter and the company; b. that t
he voter is not a member of the appropriate bargaining unit which petitioner see
ks to represent. Procedure in Challenging of Votes 1. The Election Officer shall
place the ballot in an envelope. sealed in the presence of the voter and the re
presentatives of the contending unions and employer. indicate on the envelope th
e voters name, the union or employer challenging the voter, and the ground for th
e challenge. envelope shall be signed by the Election Officer and the representa
tives of the contending unions and employer. 2. The Election Officer shall note
all challenges in the minutes of the election and shall be responsible for conso
lidating all envelopes containing the challenged votes. 3. The envelopes shall b
e opened and the question of eligibility shall be passed upon only if the number
of segregated voters will materially alter the results of the election. Protest
Any party-in-interest may file a protest based on the conduct or mechanics of t
he election.
Protests shall be recorded in the minutes of the election proceedin
gs. Protests not so raised are deemed waived.
The protesting party must formaliz
e its protest with the Med-Arbiter, with specific grounds,
Posting of Notices of Election 1. at least 10 days before the actual date of the
election
Page 57 of 83
7
arguments and evidence, within five (5) days after the close of the election pro
ceedings. If not recorded in the minutes and formalized within the prescribed pe
riod, the protest shall be deemed dropped. Action on the motion for the immediat
e holding of another certification or consent election Within 24 hours from rece
ipt of the motion, the Election Officer shall immediately schedule the conduct o
f another certification or consent election within 15 days from receipt of the m
otion and cause the posting of the notice of certification election at least 10
days prior to the scheduled date of election in 2 most conspicuous places in the
establishment. The same guidelines and list of voters shall be used in the elec
tion. Proclamation and Certification of the Result of the Election
Within twenty
-four (24) hours from final canvass of votes.
There being a valid election.
the
Election Officer shall transmit the records of the case to the Med-Arbiter Med-a
rbiter shall issue an order proclaiming the results of the election and certifyi
ng the union which obtained a majority of the valid votes cast as the sole and e
xclusive bargaining agent in the subject bargaining unit, under any of the follo
wing conditions: a. no protest was filed or, even if one was filed, the same was
not perfected within the fiveday period for perfection of the protest; b. no ch
allenge or eligibility issue was raised or, even if one was raised, the resoluti
on of the same will not materially change the results of the elections.
The winn
ing union shall have the rights, privileges and obligations of a duly certified
collective bargaining agent from the time the certification is issued.
Canvassing of Votes
Counted and tabulated by the Election Officer in the presenc
e of the representatives of the contending unions. Each representative entitled
to a copy of the minutes of the election proceedings and results of the election
. The ballots and the tally sheets shall be i. sealed in an envelope ii. signed
by the Election Officer and the representatives of the contending unions iii. tr
ansmitted to the Med-Arbiter, together with the minutes and results of the elect
ion, within 24 hours from the completion of the canvass
Where the election is co
nducted in more than one region, consolidation of results shall be made within 1
5 days from the conduct thereof. Conduct of Election and Canvass of Votes
The el
ection precincts shall open and close on the date and time agreed upon during th
e preelection conference. The opening and canvass shall proceed immediately afte
r the precincts have closed. Failure of any party or the employer or his/her/the
ir representative to appear during the election proceedings shall be considered
a waiver to be present and to question the conduct thereof. Certification of Exc
lusive Bargaining Agent The union which obtained a majority of the valid votes c
ast shall be certified as the sole and exclusive bargaining agent of all the emp
loyees in the appropriate bargaining unit within 5 days from the day of the elec
tion, provided no protest is recorded in the minutes of the election. Failure of
Election and a in a certification
Where the number ofQuickTime votes cast TIFF (
Uncompressed) decompressor are needed to see this picture. or consent election i
s less than the majority of the number of eligible voters and there are no mater
ial challenged votes.
A failure of election shall not bar the filing of a motion
for the immediate holding of another certification or consent election within 6
months from date of declaration of failure of election.
Run-off Election When an election which provides for 3 or more choices results i
n none of the choices (unions or no union choice) receiving a majority of the vali
d votes cast, the Election Officer shall motu propio conduct a run-off election
within 10 days from the close of the election proceedings between the labor unio
ns receiving the two highest number of votes. Provided, that the total number of
votes for all contending unions is at least 50% of the number of votes cast.
An
d there are no objections or challenges which if sustained can materially alter
the results, No Union shall not be a choice in the run-off election.
Page 58 of 83
7
Notice of run-off elections shall be posted by the Election Officer at least fiv
e (5) days before the actual date of run-off election. C. BARS TO CERTIFICATION
ELECTION Art. 232. Prohibition on certification election Grounds for denying pet
ition for certification election 1. Deadlock Bar 2. Contract Bar 3. 12-month bar
/certification year bar 4. Negotiation Bar Contract Bar While a valid and regist
ered CBA is subsisting, the BLR is not allowed to hold an election contesting th
e majority status of the incumbent union. When contract bar rule not applied 1.
CBA is not registered 2. CBA deregistered 3. CBA is incomplete in itself 4. CBA
does not foster industrial peace 5. CBA was concluded in violation of an order e
njoining the parties from entering into a CBA until the issue of representation
is resolved 6. Petition is filed during the 60-day freedom period Deadlock Bar A
petition for certification election cannot be entertained if, before the filing
of the petition for certification election, a bargaining deadlock to which an i
ncumbent or certified bargaining agent is a party, had been submitted to concili
ation or arbitration or had become the subject of a valid notice of strike or lo
ckout. Negotiation Bar A petition for certification election cannot be filed if
the duly certified union has commenced and sustained negotiations in good faith
with the employer in accordance with Art. 250 of the Labor Code within 1 year pr
ior to the filing of the petition for certification election.
are needed to see this picture. Certification Year Rule Bar No petition for cert
ification election may be filed within one year from the date of a valid certifi
cation, consent, or run-off election or from the date of voluntary recognition.
The 12 month prohibition presupposes that there was an actual conduct of electio
n, i.e. ballots were cats and there was a counting of votes. In a case where the
re was no certification election conducted precisely because the first petition
was dismissed on the ground that it did not include all the employees who should
be properly included in the collective bargaining unit, the certification year
bar does not apply. Capitol Medical Center Alliance, etc. v. Laguesma, GR No. 11
8915, 04 February 1997 But in one case the winning union failed to conclude a CB
A with the employer within one year, hence another union filed a petition for ce
rtification election. Although filed outside the 12-month bar, the petition was
nonetheless dismissed, and the court upheld the dismissal and explained that ord
inarily, a bargaining agent who failed to secure a CBA within 12 months could be
suspected as a tool of management and should deserve to be replaced. But if cir
cumstances show that the reason for not having concluded a CBA was not the unions
fault, such union should not be blamed, and a certification election should not
be authorized even though no CBA has been concluded despite passage of 12 month
Certification year rule will
s. The situation takes the nature of a deadlock bar.
not apply if in fact there was a failure of election because less than majority
of the CBU members voted. Another petition for certification election may be fil
ed within 6 months. Certification year rule will apply even if the No union choice
won. (Samahang Manggagawa sa Permex v. Secretary of Labor, GR No. 107792, 02 Ma
rch 1998) D. ADMINISTRATION IF AGREEMENT; GRIEVANCE AND VOLUNTARY ARBITRATION Ar
t. 260. Grievance machinery and voluntary arbitration. Art. 261. Jurisdiction of
Voluntary Arbitrators or panel of Voluntary Arbitrators Art. 262. Jurisdiction
over other labor disputes Art. 277. Miscellaneous provisions. (f) A special Volu
ntary Arbitration Fund is hereby established in the Board to subsidize the cost
of voluntary arbitration in cases involving the interpretation and implementatio
n of the Collective Bargaining Agreement, including the Arbitrators fees, and for
such other related purposes to promote and develop voluntary arbitration. The B
oard shall administer the Special Voluntary Arbitration Fund in
Page 59 of 83
R. Transport Corp v. Laguesma, GR No. 106830, 16 November 1993
7
accordance with the guidelines it may adopt upon the recommendation of the Counc
il, which guidelines shall be subject to the approval of the Secretary of Labor
and Employment. Continuing funds needed for this purpose in the initial yearly a
mount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989 an
nual general appropriations acts. The amount of subsidy in appropriate cases sha
ll be determined by the Board in accordance with established guidelines issued b
y it upon the recommendation of the Council. The Fund shall also be utilized for
the operation of the Council, the training and education of Voluntary Arbitrato
rs, and the Voluntary Arbitration Program. (g) The Ministry shall help promote a
nd gradually develop, with the agreement of labor organizations and employers, l
abor-management cooperation programs at appropriate levels of the enterprise bas
ed on the shared responsibility and mutual respect in order to ensure industrial
peace and improvement in productivity, working conditions and the quality of wo
rking life. (h) In establishments where no legitimate labor organization exists,
labor-management committees may be formed voluntarily by workers and employers
for the purpose of promoting industrial peace. The Department of Labor and Emplo
yment shall endeavor to enlighten and educate the workers and employers on their
rights and responsibilities through labor education with emphasis on the policy
thrusts of this Code. Establishment of Grievance Machinery 1. Agreement by the
parties 2. Grievance committee shall be created within 10 days from the signing
Grievance committee shall be composed of at least 2 representatives
of the CBA.
each from the members of the bargaining unit and the employer, unless otherwise
agreed upon by the parties. o Representatives of the employers designated by the
union.
1. Grievances arising from the implementation or interpretation of CBAs. 2. Aris
ing from interpretation or enforcement of company personnel policies 3. Wage dis
tortion issues arising from the application of any wage orders in organized esta
blishments 4. Arising from interpretation and implementation of the productivity
incentive programs under RA 6971
Any other labor disputes upon agreement by the
parties. The parties may choose to submit the dispute to voluntary arbitration
proceedings before or at stage of the compulsory arbitration proceedings.
Powers of the Voluntary Arbitrators 1. hold hearings 2. receive evidence 3. take
whatever action is necessary to resolve the dispute.
The voluntary arbitrator m
ay conciliate or mediate to aid the parties in reaching a voluntary settlement.
are needed toMachinery see this picture. Disputes under Grievance 1. interpretat
ion or implementation of the CBA 2. interpretation or enforcement of company per
sonnel policies
Procedure in handling grievances (ANNEX J) Jurisdiction of Voluntary Arbitrators
Procedure: Voluntary Arbitration All parties to the dispute shall be entitled to
attend the arbitration proceedings. The attendance of any third party or the ex
clusion of any witness from the proceedings shall be determined by the voluntary
arbitrator or panel of voluntary arbitrators.
Hearing may be adjourned for caus
e or upon agreement by the parties.
It shall be mandatory for the voluntary arbi
trator to render an award or decision within 20 calendar days from the date of s
ubmission for resolution unless the parties agree otherwise. o Failure on the pa
rt of the voluntary arbitrator to render a decision, resolution, order or award
within the prescribed period, shall upon complaint of a party, be sufficient gro
und for the Board to discipline said voluntary arbitrator, pursuant to the guide
lines issued by the Secretary. o In cases that the recommended sanction is de-li
sting, it shall be unlawful for the voluntary arbitrator to refuse or fail to tu
rn over to the board, for its further disposition, the records of the case withi
n 10 calendar days from demand thereof.
Decision final and executory after 10 ca
lendar days from receipt of the copy by the parties. No MR allowed.

Page 60 of 83
7
The voluntary arbitrator or labor arbitrator (if there voluntary arbitrator is a
bsence or incapacitated) may issue a writ of execution upon motion of any intere
sted party. Voluntary arbitrator shall turn over the records of the case to the
regional branch of the Board within 10 days upon satisfaction of the final award
. E. LABOR MANAGEMENT COOPERATION SCHEMES Creation of Labor Management and Other
Councils The Department shall promote the formation of labor-management council
s in organized and unorganized councils. Purpose of the Labor-Management Council
s To enable the workers to participate in policy and decision-making processes i
n the establishment, insofar as said processes will directly affect their rights
, benefits and welfare. Not covered by the Labor-Management Councils 1. Those co
vered by CBAs 2. Traditional areas of bargaining Services to be rendered by the
Department in line with the said policy 1. Conduct awareness campaigns 2. Assist
the parties in setting up labor-management structures, functions and procedures
3. Provide process facilitators upon request of the parties 4. Monitor the acti
vities of labor-management structures as may be necessary and conduct studies on
best practices aimed at promoting harmonious labor-management relations. Select
ion of employees representatives to the council 1. Organized establishments: Nomi
nated by the exclusive bargaining representatives 2. Where there is no legitimat
e labor organization: by the employees at large.
Concerted Action an activity undertaken by two or more employees, by one on beha
lf of others Strike any temporary stoppage of work by the concerted action of th
e employees as a result of an industrial or labor dispute Lockout temporary refu
sal of any employer to furnish work as a result of an industrial or labor disput
e Internal union dispute includes all disputes or grievances arising from any vi
olation of or disagreement over any provision of the constitution and by laws of
a union, including any violation of the rights and conditions of union membersh
ip provided for in this Code Strike-breaker any person who obstructs, impedes, o
r interferes with by force, violence, coercion, threats, or intimidation any pea
ceful picketing affecting wages, hours or conditions of work or in the exercise
of the right of self-organization or collective bargaining Strike Area establish
ment, warehouses, depots, plants or offices, including the sites or premises use
d as runaway shops, of the employer struck against, as well as the immediate vic
inity actually used by picketing strikers in moving to and fro before all points
of entrance to and exit from said establishment Characteristics of a Strike 1.
There must be an employer-employee relationship. 2. Existence of a dispute. 3. E
mployment relation is deemed to continue although in a state of belligerent susp
ension. 4. There is temporary work stoppage. 5. Work stoppage is done through co
ncerted action. 6. The striking group is a legitimate labor organization. In cas
e of bargaining deadlock, it must be the employees sole bargaining representative
. Grounds for lockout 1. Collective Bargaining Deadlock 2. Unfair Labor Practice
violations of CBA must be gross to be considered as ULP
IV. STRIKES, LOCKOUTS AND CONCERTED ACTIONS Art. 263. Strikes, picketing and loc
kouts Art. 264. Prohibited activities Art. 265. Improved offer balloting.
Conversion Doctrine A strike may start as economic and, as it progresses, become
s ULP, or vice-versa.
Page 61 of 83
7
When strike or lockout cannot be declared 1. Violations of CBA which are not gro
ss. 2. Grounds involving inter/intra union disputes 3. When there is no notice o
f strike or lockout or without the strike or lockout vote 4. After assumption of
jurisdiction by the Secretary 5. After certification or submission of dispute t
o compulsory or voluntary arbitration or during the pendency of cases involving
the same grounds for strike or lockout. Who may declare a strike or lockout 1. A
ny legitimate labor organization 2. Any certified or duly recognized bargaining
representative 3. Employer
If there is certified or duly recognized bargaining r
epresentative, any legitimate labor organization may declare a strike but only o
n grounds of unfair labor practice. parties to submit the dispute to voluntary a
rbitration. The regional branch of the Board may, upon agreement of the parties,
treat a notice as a preventive mediation case. During the proceedings, the part
ies shall not do any act which may disrupt or impede the early settlement of the
dispute. They are obliged, as part of their duty to bargain collectively in goo
d faith and to participate fully and promptly in the conciliation meetings calle
d by the regional branch of the Board. A notice, upon agreement of the parties,
may be referred to alternative modes of dispute resolution, including voluntary
arbitration.
Preventive Mediation The regional branch may treat the notice as preventive medi
ation case upon agreement of the parties. Strike or lockout vote 1. approved by
majority of total union membership or by majority of the BOD or partners 2. by a
secret ballot 3. in a meeting called for that purpose
The regional branch may s
upervise the conduct of the secret balloting at its own initiative or upon reque
st of any party. Notice of the meeting must be given at least 24 hours before su
ch meeting, and the results of the voting must be given at least 7 days before t
he intended strike or lockout to the regional branch of the Board. This is subje
ct to the cooling-off period.
Notice of strike or lockout 1. In case of bargaining deadlocks: at least 30 days
before the intended date of strike 2. In case of unfair labor practice: at leas
t 15 days before the intended date of strike 3. In case of ULP involving the dis
missal of a union officer which may constitute union-busting: union may take act
ion immediately after the strike vote and the submission of the results of the s
trike vote to the regional branch of the Board Contents of the notice of strike
or lockout 1. Names and addresses of employer 2. Union involved 3. Nature of ind
ustry to which the employer belongs 4. Number of union members 5. Workers in the
bargaining unit 6. Other relevant data 7. In case of bargaining deadlocks: the
unresolved issues, written proposals of the union, counterproposals of the emplo
yer and proof of request for conference to settle differences 8. In case of unfa
ir labor practice: the acts complained of, and the efforts taken to resolve Quic
kTime and a the dispute TIFF (Uncompressed) decompressor
Board shall inform the concerned party in case notice does not conform with the
requirements.
Lapanday Workers Union, et. al. v. NLRC, 248 SCRA 96 (1995) The result of the str
ike (or lockout voting) should be reported to the NCMB at least 7 days before th
e intended strike or lockout, subject to the cooling off period. This means that
after the strike vote is taken and the result reported to NCMB, seven days must
pass before the union can actually commence the strike. This seven-day reportin
g period is intended to give the Dept. of Labor and Employment an opportunity to

verify whether the projected strike really carries the imprimatur of the majori
ty of the union members. Samahan ng Manggagawa in Moldex Products, et. al. v. NL
RC, et.al. GR No. 119467, 01 February 2000 A strike tagged without the submissio
n of the result of the strike vote is illegal.
Page 62 of 83
Action on notice of strike or lockout
Upon receipt of the notice, the regional b
ranch of the Board shall exert all efforts at mediation and conciliation to enab
le the parties to settle the dispute amicably. It shall also encourage the
7
When labor may strike or when the employer may lock out its workers If the dispu
te remain unsettled after the lapse of the requisite number of days from the fil
ing of the notice of strike or lockout and of the results of the election. The r
egional branch of the Board shall continue mediating and conciliating. Prohibite
d activities during strikes and lockouts 1. strike or lock-out without first hav
ing bargained collectively strike or lock-out without the necessary notice being
filed with the DOLE 2. strike or lock-out without the necessary vote first havi
ng been obtained and reported to the DOLE 3. strike or lock-out after DOLE has a
ssumed jurisdiction or the President or after certification or submission of dis
pute to the compulsory arbitration/voluntary arbitration or during the pendency
of cases involving the same grounds for the strike or lockout 4. knowingly parti
cipating in illegal strike or knowingly participates in the commission of illega
l acts during a strike ground for termination of employment 5. obstruct, impede,
or interfere with by force, violence, coercion, threats, or intimidation any pe
aceful picketing by employees during any labor controversy or shall abeit or aid
such obstruction or interference 6. employment or use of any strikebreaker/ emp
loyed as a strike breaker 7. bringing in, introducing, or escorting by any publi
c officer or employee, including officers and personnel of the AFP or PNP, or an
y armed person in any manner of any individual who seeks to replace strikers in
entering or leaving the premises of a strike area or work in place of strikers 8
. commit any act of violence, coercion or intimidation while engaged in picketin
g or obstruct the ingress or egress from the employer s premises for lawful purp
oses or obstruct public thoroughfares (must be pervasive and widespread/consiste
ntly and deliberately QuickTime and a resorted to as a matter of policy) TIFF (Un
compressed) decompressor
When at least a majority of the union members vote to accept the improved offer,
the striking workers shall immediately return to work and the employer shall th
ereupon re-admit them upon the signing of the agreement. 2. In case of lockout T
he regional branch of the Board shall also conduct a referendum by secret ballot
ing on the reduced offer of the union. th on or before the 30 day of the lockout
. When at least a majority of the board of directors or trustees or the partners
holding the controlling interest in the case of partnership vote to accept the
reduced offer, the workers shall immediately return to work and the employer sha
ll thereupon readmit them upon the signing of the agreement. Injunction GR: No c
ourt or entity shall enjoin any picketing, strike or lockout. Exceptions: 1. Whe
n prohibited or unlawful acts are being or about to be committed that will cause
grave or irreparable damage to the complaining party. 2. National Interest Assu
mption of Jurisdiction by DOLE Secretary 1. Discretionary
In his opinion there e
xists a labor dispute causing or likely to cause a strike or lockout in an INDUS
TRY INDISPENSABLE TO THE NATIONAL INTEREST may certify the same to the commissio
n for COMPULSORY ARBITRATION Effect: AUTOMATICALLY ENJOINS the intended on impen
ding strike or lockout but if one has already taken place, all striking or locke
d out employees SHALL IMMEDIATELY RETURN TO WORK and the employer shall immediat
ely resume operations and re-admit all workers under the same terms and conditio
ns prevailing before the strike or lock-out 2. Mandatory: (within 24 hours)
In l
abor disputes adversely affecting the continued operation of HOSPITALS, CLINICS,
OR MEDICAL INSTITUTIONS May assume jurisdiction or certify it to the NLRC for c
ompulsory arbitration
Duty of striking union or locking out employer to provide
and maintain an effective
Page 63 of 83
Improved Offer Balloting 1. In case of strike Regional branch of the Board shall
, conduct a referendum by secret balloting on the improved offer of the employer
. on or before the 30th day of strike. at its own initiative or upon the request
of any affected party.
7
SKELETAL WORKFORCE of medical and other health personnel, where movement and ser
vice shall be unhampered and unrestricted as are necessary to insure the proper
and adequate protection of the life and health of its patients most especially e
mergency cases for the duration of the strike or lock-out Power of the President
under Art. 263(g) 1. may determine the industries, which are in his opinion ind
ispensable to national interest 2. may intervene at any time and assume jurisdic
tion over any such labor dispute in order to settler or terminate the same
Decis
ion of the President, DOLE Secretary is final and executory after receipt thereo
f by the parties. A strike may be considered legal when the union believed that
the respondent company committed unfair labor acts and the circumstances warrant
ed such belief in good faith although subsequently such allegation of unfair lab
or practices are found out as not true. (Peoples Industrial and Commercial Employ
ees and Workers Organization (FFW) v. Peoples Industrial and Commercial Corp. GR
No. 37687 15 March 1982) Rule on Wages of Strikers GR: Strikers are not entitled
to their wages during the period of a strike, even if the strike is legal. Exce
ptions: 1. In case of a ULP STRIKE, in the discretion of the authority deciding
the case. 2. Where the strikers voluntarily and unconditionally offered to retur
n to work, but the employer refused to accept the offer [e.g. of an unconditional
offer: we will return tomorrow and NOT willing to return provided] o They are entit
led to backwages from the date the offer was made. 3. Where there is RETURN-TO-W
ORK ORDER and the employees are discriminated against. o They are entitled to ba
ckwages from the date of discrimination. Rule on Reinstatement of Striking Worke
rs GR: Striking employees are entitled to reinstatement, regardless of whether o
r not the strike was the consequence of the employers ULP. Exceptions: The follow
ing strikers are NOT entitled to reinstatement: 1. union officers who knowingly
participate in an illegal strike. 2. any striker/union member who knowingly part
icipates in the commission of illegal acts during the strike. Sarmiento v. Tuico
, 162 SCRA 676 (1988) The return-to-work order should benefit only those workers
who comply with it and, regardless of the outcome of the compulsory arbitration
proceedings, are entitled to be paid for the work they have actually performed.
Conversely, those workers who refuse to obey said order and instead wage a stri
ke are not entitled to be paid for work not done or to reinstatement to the posi
tions they have abandoned by their refusal to return thereto as ordered. St. Sch
olasticas College v. Torres, GR No.
Page 64 of 83
Sarmiento v. Tuico, 162 SCRA 676 (1988) The return-to-work order not so much con
fers a right as it imposes a duty. While as a right it may be waived, it must be
discharged as a duty even against the workers will. Returning to work in this si
tuation is not a matter of option or voluntariness but of obligation. If the sto
ppage of work will be unfruitful not only to bith the employer and the employees
, more particularly if the national economy will suffer because if the resultant
reduction in our export earnings and our dollar reserves, not to mntion possibl
e cancellation of the contracts of the company with foreign exporters, the labor
dispute may properly be certified to the National Labor Relations Commission, t
o avoid such a development, with the return-to-work order following as a mater o
f course under the law. Where the return to work order is issued pending the det
ermination of the legality of the strike, it is not correct to say that it may b
e enforced only if he strike is legal and may be disregarded if illegal. Precise
ly, the purpose of the return to work order is to maintain the status quo while
the determination is being made. The discretion to assume jurisdiction may be Qu
ickTime and a exercised by TIFF the Secretary of Labor and (Uncompressed) decompr
essor are needed to see this picture. Employment without the necessity of prior
notice of hearing given to any of the parties disputants (Magnolia Poultry Emplo
yees Union, et.al. v. Sanchez GR. Nos. 76227-28, 05 November 1986)
Consequences of Illegal Strike Good-Faith Doctrine
7
100158, 19 June 1992 A return to work order is immediately effective and executo
ry notwithstanding the filing of a motion for reconsideration. It must be strict
ly complied with even during the pendency of any petition questioning its validi
ty. The respective liabilities of striking union officers and members who failed
to immediately comply with the return-to-work order is outlined in Art. 264 of
the Labor Code which provides that any declaration of a strike or lockout after
the Secretary of Labor and Employment has assumed jurisdiction over the labor di
spute is considered an illegal act. Any worker or union office who knowingly par
ticipates in a strike defying a return-to-work order may, consequently be declare
d to have lost his employment status. Batangas Laguna Tayabas Bus Company v. NLRC
, GR No. 101858, 21 August 1992 But to justify dismissal, the defiance of the re
turnto-work order must be proved. In one case the Court said that the mere fact
that the majority of the strikers were able to return to work does not necessari
ly mean that the rest deliberately defied the return to work order or that they
had been sufficiently notified thereof. As the Solicitor General correctly adds,
some of them may have left Metro Manila and did not have enough time to return
during the period given by the period given by petitioner. Gold City Integrated
Port Services, Inc. v. NLRC, 245 SCRA 627 (1995) Art. 264 makes a distinction be
tween workers and union officers who participate in a strike. An ordinary striki
ng worker cannot be terminated for mere participation in an illegal strike. Ther
e must be proof that he committed illegal acts during a strike. A union officer,
on the other hand, may be terminated from work when he knowingly participates i
n an illegal strike, or when he commits an illegal act during a strike. - A prob
ationary employee is considered regular after 6 months, becomes regular. May be
terminated only for just / authorized causes
Test to determine regular employment Universal Robina Corporation v. Catapang, G

R No. 164736. October 14, 2005 The primary standard of determining regular emplo
yment is the reasonable connection between the particular activity performed by
the employee to the usual trade or business of the employer. The test is whether
the former is usually necessary or desirable in the usual business or trade of
the employer. Also, the performance of a job for at least a year is sufficient e
vidence of the jobs necessity if not indispensability to the business. This is th
e rule even if its performance is not continuous and merely intermittent. The em
ployment is considered regular, but only with respect to such activity and while
such activity exists. The practice of entering into employment contracts which
would prevent the workers from becoming regular should be struck down as contrar
y to public policy and morals. Casual Employment
Activity performed is not usual
ly necessary or desirable in the usual business or trade of the employer, not pr
oject and not seasonal Except: if he has rendered at least 1 year of service, wh
ether such service is continuous or broken, he is considered a REGULAR employee
with respect to the activity in which he is employed and his employment shall co
ntinue while such activity exists.
Despite the distinction between regular and c
asual employment, every employee shall be entitled to the same rights and privil
eges, and shall be subject to the same duties as may be granted by law to regula
r employees during the period of their actual employment. Fixed-Term Employment
Period is agreed upon knowingly and voluntarily by the parties without force, du
ress, or improper pressure exerted on the employee. Brent case: fixed-term emplo
yment repealed by LC. But the Civil Code, a general law, allows fixedterm employ
ment Employee hired on a fixed-term is regular if job is necessary and desirable
to business of employer. (Philips Semiconductor v. Fadriquela, GR No. 141717, A
pril 2004)
Page 65 of 83
V. POST-EMPLOYMENT A. REGULAR, CASUAL, QuickTime and a PROBATIONARY EMPLOYMENT TI
FF (Uncompressed) decompressor

Art. 280. Regular and casual employment Art. 281. Probationary employment Regula
r Employment
Engaged to perform tasks usually necessary and desirable to the bus
iness of the employer
Regular employment does not mean permanent employment
7
Project Employment
One whose employment has been fixed for a specific project or
undertaking the completion of which has been determined at the time of engageme
nt of the employee; the period is not the determining factor, so that even if th
e period is more than 1 year, employee does not necessarily become regular Marag
uinot v. NLRC, 284 SCRA 539 (1998) Repeated hiring on a project to project basis
is considered necessary and desirable to the business of the employer. Thus, em
ployee is regular. FilSystems v. Puente, GR No. 153832, 18 March 2005 Repeated h
iring does not necessarily mean regular employment.
Day Certain Rule project
yment ends on a certain date does not end on an exact date, but on the completio
n of the project. Phil. Global Communication case: usual and desirable does not
matter because employer hires without intent of making them regular. Regularizat
ion is not a management prerogative. It is a mandate of law. (PAL v. Pascua, 15
August 2003) Nature of employment determines regular employment. Art. 280 does n
ot apply to OFWs. (LC does not apply to migrant workers, RA 8042 does.) Poseidon
Fishing case: if engaged in deep-sea fishing, locally-hired employees, 280 appl
ies After lapse of probationary period (6 months), the employee becomes regular.
(Voyeur Visage, 2005) Probationary employee may be dismissed before end of the
probationary period.
Aberdeen Court, Inc. v. Agustin, GR No. 149371, 13 April 2005 There is probation
ary employment where the employee, upon his engagement, is made to undergo a tri
al period during which the employer determines his fitness to qualify for regula
r employment, based on reasonable standards made known to him at the time of eng
agement. The services of an employee who has been engaged on probationary basis
may be terminated only for a just cause, when he fails to qualify as a regular e
mployee in accordance with the reasonable standards prescribed by the employer.
In all cases of probationary employment, the employer shall make known to the em
ployee the standards under which he will qualify as a regular employee at the ti
me of his engagement. Where no standards are made known to the employee at that
time, he shall be deemed a regular employee. Mariwasa Manufacturing, Inc. v. Leo
gardo, Jr., 26 January 1989 Issue: May the employer and the employee validly agr
ee to extend the probationary period beyond six months? Held: YES. Such an exten
sion may be lawfully agreed upon, despite the seeming restrictive language of Ar
ticle 281. A voluntary agreement extending the original probationary period to g
ive the employee a second chance to pass the probation standards constitutes a l
awful exception to the statutory limit. UST v. NLRC, 15 February 1990 Issue: For
private school teachers, what are the legal requirements for acquisition of per
manent employment? Held: (1) The teacher is a full-time teacher; (2) the teacher
must have rendered three consecutive years of service; and (3) such service mus
t have been satisfactory. Seasonal Employment
Probationary Employment GR: Not to exceed 6 months Exceptions: a. covered by an
apprenticeship agreement stipulating a longer period b. voluntary agreement of p
arties (especially when nature of work requires a longer period) c. the employer
gives the employee a second chance to pass the standards set Termination of Pro
bationary Employment a. just / authorized causes b. when he fails to qualify as
a regular employee in accordance with reasonable standards made known by the emp
loyer to employee at the time of his engagement If allowed to work after the pro
bationary period, he shall be considered a REGULAR employee
Page 66 of 83
7
Work or services to be performed is seasonal in nature and the employment is for
the duration of the season Serious Misconduct Improper or wrong conduct; the tr
ansgression of some established and definite rule of action, a forbidden act, a
dereliction of duty, willful in character, and implies wrongful intent and not m
ere error in judgment. To be serious within the meaning and intendment of the la
w, the misconduct must be of such grave and aggravated character and not merely
trivial or unimportant (Villamor Golf Club v. Pehid, 04 October 2005) Elements o
f Serious Misconduct 1. serious; 2. relate to the performance of the employees du
ties; 3. employee has become unfit to continue working for the employer (Phil. A
eolus v NLRC, 2000) Elements of Willful Disobedience 1. employees assailed conduc
t was willful or intentional, the willfulness being characterized by a wrongful
and perverse attitude; 2. the order violated must have been reasonable, lawful,
made known to the employee and must pertain to the duties which he has been enga
ged to discharge (Micro Sales Operation Network v. NLRC,11 October 2005) Gross a
nd Habitual Neglect
GROSS and HABITUAL must concur together. Implies a want or a
bsence of or failure to exercise slight care or diligence, or the entire absence
of care. It evinces a thoughtless disregard of consequences without exerting an
y effort to avoid them.
Previous infractions by the employee should have been ac
ted upon appropriately by the employer before terminating the former. Fraud or W
illful Breach of Trust Can be committed only by confidential and managerial empl
oyees - confidential employees charged with custody and protection of employers p
roperty like a cashier (this is different from the confidential employees in labor
relations)
A criminal case need not be actually filed. Commission of acts const
ituting a crime is sufficient. Analogous Cases; Examples violation of safety rul
es gross inefficiency
wrongful acts of employee against the company
violation of
code of discipline
Page 67 of 83
Hacienda Fatima v. National Federation of Sugarcane Workers-Food and General Tra
de, GR No. 149440, 28 January 2003 The fact that seasonal workers do not work co
ntinuously for one (1) whole year but only for the duration of the season does n
ot detract from considering them in regular employment since in a litany of case
s, the Court has already settled that seasonal workers who are called to work fr
om time to time and are temporarily laid off during off-season are not separated
from service in said period, but merely considered on leave until re-employed.
Workers who have performed the same tasks every season for several years are con
sidered regular employees for their respective tasks. B. SECURITY OF TENURE Art.
279. Security of tenure Applies to all establishment or undertakings whether fo
r profit or not
Project employees have no security of tenure. (see how full back
wages are computed)
Full backwages are computed from the time wages are withheld
up to the time the employee is actually reinstated. In the case of project empl
oyees, you cannot demand wages for the time when there is no project. Thus, 279
does not apply to project employees. C. JUST CAUSES, AUTHORIZED CAUSES, CONSTRUC
TIVE DISMISSAL Art. 282. employer Just Causes for Termination by
Grounds: (SoMe WiD GAN FWeT CO) 1. Serious Misconduct or Willful Disobedience by
the employee of the lawful orders of his employer or representative in connecti
on with his work (work-related) QuickTime and a 2. Gross And habitual N eglect by
the employee of TIFF (Uncompressed) decompressor are needed to see this picture
. his duties 3. Fraud or Willful breach by employee of the Trust reposed in him
by his employer or duly authorized representative (not mere suspicion) 4. Commis
sion of a Crime or offense by the employee against the person of his employer or
any immediate member of his family or duly authorized representative 5. Other a
nalogous cases
7
failure to heed an order not to join an illegal picket immorality sexual harassm
ent 2. The substantial loss apprehended must be reasonably imminent. 3. It be re
asonably necessary and likely to effectively prevent the expected losses. The em
ployer should have taken other measures prior or parallel to retrenchment to for
estall losses. 4. The alleged losses if already realized, and the expected immin
ent losses must be proved by sufficient and convincing evidence. (Oriental Petro
leum & Minerals Corp. v Fuentes, 14 October 2005)
Difference between redundancy
and retrenchment: In redundancy, company has no financial problems; in retrenchm
ent, company suffers from financial problems.
Art. 283. Authorized Causes for Termination Grounds: 1. Introduction of labor-sa
ving devices 2. Redundancy 3. Retrenchment 4. Closure of business as a result of
grave financial loss 5. Closure not due to losses Redundancy
Redundancy exists
where the services of an employee are in excess of what is reasonably demanded b
y the actual requirements of the enterprise. A position has become superfluous a
s an outcome of a number of factors such as overhiring of workers, decreased vol
ume of business, dropping of a particular product line or service activity previ
ously manufactured or undertaken by the enterprise (thus it only requires superf
luity not duplication of work) The redundancy SHOULD NOT have been created by th
e EMPLOYER. Validity of a Redundancy Program DAP v. CA, GR No. 165811, 14 Decemb
er 2005 The employer must comply with the following requisites to ensure the val
idity of the redundancy program: 1. a written notice served on both the employee
s and the Department of Labor and Employment (DOLE) at least one month prior to
the intended date of retrenchment 2. payment of separation pay equivalent to at
least one month pay or at least one month pay for every year of service, whichev
er is higher 3. good faith in abolishing the redundant positions 4. fair and rea
sonable criteria in ascertaining what positions are to be declared redundant and
QuickTime and a accordingly abolished TIFF (Uncompressed) decompressor
Closure Not Due to Losses
In cases of closure not due to losses, it must NOT be
in BAD FAITH. If the dismissal is based on a just cause under Article 282 but th
e employer failed to comply with the notice requirement, the sanction to be impo
sed upon him should be tempered because the dismissal process was, in effect, in
itiated by an act imputable to the employee. If the dismissal is based on an aut
horized cause under Article 283 but the employer failed to comply with the notic
e requirement, the sanction should be stiffer because the dismissal process was
initiated by the employers exercise of his management prerogative Constructive Di
smissal 1. No formal dismissal 2. The employee is placed in a situation by the e
mployer such that his continued employment has become UNBEARABLE. Veterans Secur
ity Agency v. Vargas, GR No. 159293. 16 December 2005 Constructive dismissal exi
sts when an act of clear discrimination, insensibility or disdain on the part of
the employer has become so unbearable as to leave an employee with no choice bu
t to forego continued employment. Abandonment, as a just and valid cause for ter
mination, requires a deliberate and unjustified refusal of an employee to resume
his work, coupled with a clear absence of any intention of returning to his or
her work. Abandonment is incompatible with constructive dismissal.
Retrenchment Resorted primarily to avoid or minimize business losses. Standards
to Justify Retrenchment 1. The losses expected should be substantial and not mer
ely de minimis in extent.
Page 68 of 83
7
Article 286 applies only when there is a bona fide suspension of the employers op
eration of a business or undertaking for a period not exceeding 6 months. In sec
urity agency parlance, being placed off detail or on floating status means waiting to
be posted. It is the inherent prerogative of an employer to transfer and reassig
n its employees to meet the requirements of its business. Be that as it may, the
prerogative of the management to transfer its employees must be exercised witho
ut grave abuse of discretion. The exercise of the prerogative should not defeat
an employee s right to security of tenure. The employers privilege to transfer it
s employees to different workstations cannot be used as a subterfuge to rid itse
lf of an undesirable worker. Art. 284. Disease as ground for termination Disease
as Ground for Termination When his continued employment is prohibited by law or
prejudicial to his health or to the health of his co-employees
There is a certi
fication by a competent public health authority that the disease is of such natu
re or at such stage that it cannot be cured within a period of 6 months even wit
h proper medical treatment The requirement for a medical certificate cannot be d
ispensed with; otherwise, it would sanction the unilateral and arbitrary determi
nation by the employer of the gravity or extent of the employees illness and thus
defeat the public policy on the protection of labor. (Manly Express v. Payong,
25 October 2005) Art. 285. Termination by employee Termination without Just Caus
e 1. at least 1 month prior notice 2. employee may be held liable for damages fo
r failure to give notice Termination with Just Cause 1. Grounds a. serious insul
t on the honor and person of QuickTime and a employee by employer or his TIFFthe
(Uncompressed) decompressor are needed to see this picture. representative b. in
humane and unbearable treatment accorded to the employee c. commission of a crim
e against person of the employee or any of the immediate members of his family d
. other causes analogous to the foregoing 2. Notice not necessary
Resigning empl
oyee not entitled to separation pay, unless company policy gives it.
No Separation Pay in resignation; Exceptions; Waivers and Quitclaims, when valid
Candido Alfaro v. CA, et al., GR No. 140812, 28 August 2001 Generally, separati
on pay need not be paid to an employee who voluntarily resigns. However, an empl
oyer who agrees to expend such benefit as an incident of the resignation should
not be allowed to renege in the performance of such commitment. Not all waivers
and quitclaims are invalid as against public policy. If the agreement was volunt
arily entered into and represented a reasonable settlement, it is binding on the
parties and may not later be disowned, simply because of a change of mind. Art.
286. When employment not deemed terminated The bona-fide suspension of the oper
ation of a business or undertaking for a period not exceeding 6 months, or the f
ulfillment by the employee of a military or civic duty shall not terminate emplo
yment. In all such cases, the employer shall reinstate the employee to his forme
r position without loss of seniority rights if he indicates his desire to resume
his work not later than one (1) month from the resumption of operations of his
employer or from his relief from the military or civic duty. Temporary Lay-off M
ust not exceed 6 months. Options of employer (i.e. security agency) in case of p
ull out by client: 1. retrenchment must give notice 1 month before retrenchment;
pay separation pay 2. closure must comply with 1 month advanced notice; no need
to pay separation pay Abandonment means the deliberate, unjustified refusal of
an employee to resume his/her employment Two elements must be proved 1. the inte
ntion to abandon 2. an overt act from which it may be inferred that the employee
has no more intent to resume his/her work
Page 69 of 83
7
This is negated by immediate filing of an action for ILLEGAL DISMISSAL. contest
the validity or legality of his dismissal by filing a complaint with the regiona
l branch of the National Labor Relations Commission. The burden of proving that
the termination was for a valid or authorized cause shall rest on the employer.
The Secretary of the Department of Labor and Employment may suspend the effects
of the termination pending resolution of the dispute in the event of a prima fac
ie finding by the appropriate official of the Department of Labor and Employment
before whom such dispute is pending that the termination may cause a serious la
bor dispute or is in implementation of a mass layoff.
In cases of dismissal, emp
loyer has the burden of proof to show that the dismissal falls under the just an
d authorized causes. (Tolentino v. PLDT, GR No. 160404, 08 June 2005) Due proces
s refers to the process to be followed; burden of proof refers to the amount of
proof to be adduced In money claims, the burden of proof as to the amount to be
paid the employee rests upon the employer since he is in custody of documents th
at would be able to prove the amount due, such as the payroll. In cases of just
and authorized causes, due process must be observed.
Employment Not Deemed Terminated a. bona fide suspension of the operation of a b
usiness/undertaking for a period of not more than 6 months b. fulfillment by the
employee of a military or civic duty Employer shall reinstate the employee to h
is former position without loss of seniority rights IF employee indicates his de
sire to resume his work not later than 1 month from resumption of operations of
his employer or his relief from the military or civic duty
Preventive Suspension justified where the employees continued employment poses a
serious and imminent threat to the life or property of the employer or of his co
-workers (there is a REASONABLE POSSIBILITY of the employee posing such a threat
) must not exceed 1 month
It is only for the purpose of investigating the offens
e to determine whether he is to be dismissed or not. IT IS NOT A PENALTY.
if mor
e than 1 month, the employee must be actually reinstated or reinstated in the pa
yroll officers liable only if with malice and bad faith Floating Status
It is le
gal, such as in the case of security guards who have no assignment. Such a statu
s should not exceed six-months; if it does, it amounts to a dismissal. D. DUE PR
OCESS Art. 277. Miscellaneous Provisions (b) Subject to the constitutional right
of workers to security of tenure and their right to be protected against dismis
sal except for a just and authorized cause and without prejudice to the requirem
ent of notice under Article 283 of this Code, the employer QuickTime and a shall
furnish the worker whose employment is sought TIFF (Uncompressed) decompressor a
re needed to see this picture. to be terminated a written notice containing a st
atement of the causes for termination and shall afford the latter ample opportun
ity to be heard and to defend himself with the assistance of his representative
if he so desires in accordance with company rules and regulations promulgated pu
rsuant to guidelines set by the Department of Labor and Employment. Any decision
taken by the employer shall be without prejudice to the right of the worker to
Due Process Requirements under Art. 277 (b) Authorized Causes Just Causes (282)
(283) Twin Notice (Before and One notice only After Investigation - notice to em
ployee1 month before - notice of the charge installation of LSD, - notice that e
mployee retrenchment, or is guilty (after closure investigation) - 1 month advan
ced Investigation notice to DOLE Non-compliance with due process requirements Be
fore the Agabon case, the doctrine in Serrano v. NLRC (GR No. 117040, 27 January
2000) was followed. It states that termination due to authorized cause without
giving the notice required under the Labor Code is not a violation of due proces
s. It is valid although declared irregular / ineffectual. He shall however be en
titled to SEPARATION PAY AND BACKWAGES. Agabon v. NLRC, 17 November 2004 modifie
s Serrano Dismissal for an authorized or just cause, w/o procedural due process
is not an illegal dismissal
Page 70 of 83
7
which warrants backwages; employee entitled only to nominal damages. The Court i
nterpreted Art. 279 to the effect that termination is illegal only if it is not
for any of the justified or authorized causes provided by law. Payment of backwa
ges and other benefits, including reinstatement, is justified only if the employ
ee was unjustly dismissed. The Court decided to follow Wenphil that where the di
smissal is for a just cause, the lack of statutory due process should not nullif
y the dismissal or render it illegal. However, the employer should indemnify the
employee for the violation of his rights. The indemnity should be stiffer than
that provided in Wenphil to discourage the abhorrent practice of dismiss now, pay
later. The indemnity should be in the form of nominal damages, which is adjudica
ted in order that a right of plaintiff, which has been violated by the defendant
, may be vindicated. Jaka Food Processing v. Pacot, 28 March 2005 If the dismiss
al is based on a just cause under Article 282 but the employer failed to comply
with the notice requirement, the sanction to be imposed upon him should be tempe
red because the dismissal process was, in effect, initiated by an act imputable
to the employee. On the other hand, if the dismissal is based on an authorized c
ause under Article 283 but the employer failed to comply with the notice require
ment, the sanction should be stiffer because the dismissal process was initiated
by the employers exercise of his management prerogative. SC distinguished betwee
n non-compliance of due process requirements in just and authorized causes.
Auth
orized causes Php 50,000 nominal damages Just causes Php 30,000 nominal damages
(because in just causes, employee is being dismissed due to his fault) Industria
l Timber Corp. v. Ababon, 30 March 2006 Factors to be taken into account in the
determination of the amount of nominal damages in dismissal cases: 1. the author
ized cause invoked, whether it was a retrenchment or a closure or cessation of Q
uickTime and a due to serious operation of the establishment TIFF (Uncompressed)
decompressor are needed this picture. business losses or to see financial revers
es or otherwise 2. the number of employees to be awarded 3. the capacity of the
employers to satisfy the awards, taken into account their prevailing financial s
tatus as borne by the records 4. the employer s grant of other termination benef
its in favor of the employees 5. whether there was a bona fide attempt to comply
with the notice requirements as opposed to giving no notice at all. SC reduced
the nominal damages from Php 30,000 to Php 10,000. Agabon not given retroactive
effect The principle in law giving retroactive effect where the subsequent law i
s corrective in character does not necessarily apply to judicial decisions. Unle
ss the SC provides otherwise, the ruling would have no retroactive effect. E. RE
LIEFS FOR ILLEGAL DISMISSAL 1. Backwages + Reinstatement without loss of seniori
ty rights, or if reinstatement impossible 2. Backwages + Separation Pay
Where re
instatement is ordered, but the position is already filled up, the dismissed emp
loyee must still be reinstated if it is still possible.
Cases where reinstatement is impossible 1. Doctrine of Strained Relations (appli
es to confidential and managerial employees only) 2. In case of position has bee
n abolished (applies to both managerial and rank and file) Moral and exemplary d
amages may also be awarded. Computation of Separation Pay Installation of labor1
month pay or 1 month saving devices pay for every year of service whichever is
Redundancy higher. 1 month pay for every year is always higher if the employee h
as served for more than 1 year. 1 month pay or at least 1/2 month pay for every
year of service whichever is higher
Retrenchment to prevent losses Closures or cessation of operations of establishm
ents or undertaking NOT due to serious business losses or financial reverses Dis
ease Closures or cessation of operations due to serious business losses or finan
cial reverses
no separation pay
Page 71 of 83
7
* a fraction of at least 6 months is considered 1 year
If the retrenchment is la
ter declared illegal, separation pay of 1 month for every year shall be paid. Su
ch computation is because the retrenchment was illegal and the employee was enti
tled to reinstatement. * without valid, just, or authorized cause The option of t
hree months for every year is available only if the employment is for at least on
e year. If the contract is shorter, the salary to be paid should be that for the
unexpired portion. (Marsaman Manning Agency v. NLRC, 25 August 1999) F. RETIREM
ENT Art. 287. Retirement (as amended by the Retirement Pay Law RA 7641) Exempted
: retail, service, agricultural establishments
operations employing not more tha
n employees
Reinstatement; payment of backwages Triad Security & Allied Services, Inc, et al
. v Ortega, GR No. 160871, 06 February 2006 An order of reinstatement by the lab
or arbiter is not the same as actual reinstatement of a dismissed or separated e
mployee. Thus, until the employer continuously fails to actually implement the r
einstatement aspect of the decision of the labor arbiter, their obligation to th
e illegally dismissed employee, insofar as accrued backwages and other benefits
are concerned, continues to accumulate. It is only when the illegally dismissed
employee receives the separation pay (in case of strained relations) that it cou
ld be claimed with certainty that the EER has formally ceased thereby precluding
the possibility of reinstatement. In the meantime, the illegally dismissed empl
oyees entitlement to backwages, 13th month pay, and other benefits subsists. Unti
l the payment of separation pay is carried out, the employer should not be allow
ed to remain unpunished for the delay, if not outright refusal, to immediately e
xecute the reinstatement aspect of the labor arbiters decision. Further, the empl
oyer cannot refuse to reinstate the illegally dismissed employee by claiming tha
t the latter had already found a job elsewhere. Minimum wage earners are left wi
th no choice after they are illegally dismissed from their employment, but to se
ek new employment in order to earn a decent living. Surely, we could not fault t
hem for their perseverance in looking for and eventually securing new employment
opportunities instead of remaining idle and awaiting the outcome of the case. R
eliefs of local workers vs. migrant workers Art. 279, LC Sec. 10, RA 8042 (local
workers) (migrant workers) QuickTime and a TIFF (Uncompressed) decompressor Rein
statement Full reimbursement of are needed to see this picture. his placement fe
e with interest of 12% per annum Full backwages from the Salaries for the time h
is compensation unexpired portion of his was withheld from him employment contra
ct or up to the time of his for 3 months for every actual reinstatement year of
the unexpired term, whichever is less
10
Kinds 1. OPTIONAL 60 years old / 5 years in service (includes authorized absence
s/vacations/regular holidays/mandatory military or civic service). This depends
on the stipulations in the CBA, company retirement plan, or employment contract.
2. COMPULSARY 65 years old/ regardless or years of service (company not bound t
o dismiss employee) Benefits 1/2 month salary per year of service which shall in
clude: 1. 15-day basic wage, plus th 2. 1/12 of the 13 month pay, plus 3. 5-day
Service incentive leave pay plus 4. other benefits as maybe agreed upon by emplo
yer and employee (a fraction of at least 6 months considered as 1 year) Minimum
benefits to be received = (no. 1 + no. 2 + no. 3) x years of service
If CBA / re
tirement plan has no prohibition, an employee can get pay under the law, CBA, an
d the retirement plan. If what is provided in the CBA is lower that what is prov
ided for in law, the employee is entitled to the higher amount.
VI. DISPUTE SETTLEMENT A. JURISDICTIONS OF THE DIFFERENT AGENCIES Bureau of Labo
r Relations
Original jurisdiction: appeal to DOLE Secretary
Page 72 of 83
7
Appellate jurisdiction: decision shall be immediately executory upon issuance of
entry of final judgment; can be reviewed by the CA in a petition for certiorari
under Rule 65 Held: No. Unlike the NLRC which is explicitly vested with the jur
isdiction over claims for actual, moral, exemplary and other forms of damages, t
he BLR is not specifically empowered to adjudicate claims of such nature arising
from intra-union or inter-union disputes.
As long as the agreement is voluntari
ly entered into and has a reasonable award, it is valid. It must be approved by
the LA (NLRC Rules) At the DOLE Secretarys level, the Secretary must approve. On
appeal, the NLRC must approve the agreement. An offer to settle is not proof tha
t something is due to the employee.
Jurisdiction 1. Inter-union conflicts 2. Intra-union conflicts 3. All disputes,
grievances or problems arising from or affecting labor-management relations in a
ll workplaces EXCEPT those arising from the implementation or interpretation of
the CBA which shall be the subject of grievance procedure and/or voluntary arbit
ration 4. Complaint involving federations, national unions, industry unions, its
officers or member organizations Compromise Agreements
If voluntarily agreed up
on by the parties with the assistance of the BLR or the regional office of DOLE
final and binding upon the parties The only time NLRC or any courts can assume j
urisdiction over issues involved therein: a. in case of non-compliance thereof b
. if there is prima facie evidence that the settlement was obtained through frau
d, misrepresentation or coercion Power to Issue Subpoena
When relevant to a labo
r dispute under its jurisdiction either at the request of any interested party o
r at its own initiative Privileged Communication Information and statements made
at conciliation meetings shall NOT be used as evidence in the NLRC
Conciliators
and similar officials shall not testify in any court or body regarding any matt
ers taken up at conciliation proceeding conducted by them Appeal within 10 days
to the DOLE Secretary
Grounds: a. grave abuse of discretion QuickTime and a b. gr
oss incompetence TIFF (Uncompressed) decompressor
Mindoro Lumber and Hardware v. Eduardo D. Bacay, et. al., 08 June 2005 Article 2
77 of the labor code states that any compromise settlement, including those invo
lving labor standard laws, voluntarily agreed upon by the parties with the assis
tance of the Bureau or the regional office of the Department of Labor shall be f
inal and binding upon the parties. A, a member of a labor union and a party to a l
abor dispute executed a compromise settlement. He appeared before the Office of
the Regional Director to file said compromise settlement together with a motion
to dismiss the case. Issue: Is the compromise settlement in compliance with Arti
cle 277? Held: The assistance of the BLR or the regional office of the DOLE in t
he execution of a compromise settlement is a basic requirement. Without it, ther
e can be no valid compromise settlement. Mere appearance before BLR or the regio
nal office of the DOLE to file the already executed compromise settlement is not
the assistance required by the law. As such, the compromise settlement executed b
y A cannot qualify as a valid compromise settlement. Jurisdiction of Labor Arbiter
s 1. ULP (priority resolved within 30 cal days from submission for decision) 2.
termination disputes 3. claims for wages, rates of pay, hours of work and other
terms and conditions of employment 4. claims for actual, moral, exemplary and ot
her forms of damages arising from employeremployee relationship
Page 73 of 83
Marino, Jr., et. al. v. Gamilla, et. al., 31 January 2005 Issue: Does the bureau
of labor relations have jurisdiction over claims for actual, moral, exemplary a
nd other forms of damages arising from intra-union or inter-union disputes?
7
5. cases arising from prohibited activities during strikes, including questions
involving the legality of strikes and lockouts 6. all other claims arising from
employer-employee relationship involving an amount exceeding P5000 regardless of
whether accompanied by a claim for reinstatement except ECC, SSS, Medicare, & m
aternity benefits 7. Wage distortion cases in unorganized establishments 8. All
monetary claims of OFWs arising from EER or by virtue of any law or contract inv
olving Filipino workers for overseas deployment, including claims for actual, mo
ral, exemplary and other forms of damages (RA 8042) 9. Enforcement of compromise
agreements when there is non-compliance by any of the parties pursuant to Art.
227 of the Code (Sec. 1, Rule V, 2005 NLRC Rules) Cooperatives
Termination of me
mbers of cooperatives is not cognizable by the LA (members are not employees)
LA
has jurisdiction over illegal dismissal cases involving employees of cooperativ
es LA does NOT have jurisdiction over Intra-corporate disputes Cases involving c
orporate officers (bec. they are not employees) BUT in Prudential Bank v. Reyes
(G.R. No. 141093, 20 February 2001), it was held that an employee who rose from
the ranks is a regular employee and not a mere corporate officer Cases involving
GOCCs with original charters
Cases involving entities immune from suit (except
when the entity performs proprietary functions)
Local water districts (since the
y are quasi-public corporations) Actions based on tort (Tolosa v. NLRC, 10 April
2003 Claim of a seaman for damages is under torts, regular court has jurisdicti
on.) Jurisdiction of the NLRC 1. Original Jurisdiction QuickTime and a a. Injunct
ion in ordinary labor disputes to enjoin TIFF (Uncompressed) decompressor needed
to see this picture. or or restrain are any actual threatened commission of any
or all prohibited or unlawful acts or to require the performance of a particula
r act in any labor dispute which, if not restrained or performed forthwith , may
cause grave or irreparable damage to any party b. Injunction in strikes or lock
outs under Art. 264 Certified labor dispute causing or likely to cause a strike
or lockout in an industry indispensable to the national interest, certified to i
t by the DOLE Secretary for compulsory arbitration 2. Exclusive Appellate Jurisd
iction a. All cases decided by the LAs, including contempt cases b. Cases decide
d by the DOLE Regional Directors or his duly authorized hearing officers involvi
ng recovery of wages, simple money claims and other benefits not exceeding Php 5
,000 and not accompanied by a claim for reinstatement OCULAR INSPECTION by Labor
Arbiter & NLRC at any time during working hours Jurisdiction of the POEA
Cancel
lation / Suspension of License of Authority to recruit of Recruitment Agencies (
until phase out within 5 years as provided in RA 8042) Disciplinary Action again
st OFWs
Appeal to Secretary of DOLE within 10 calendar days cancellation/ revoca
tion/ supervision of license or authority
Appeal to NLRC within 10 calendar days
1. violation of overseas employment contracts 2. disciplinary cases filed again
st overseas contract workers Jurisdiction of DOLE Regional Directors 1. visitori
al power (Art. 128) 2. claims not exceeding Php 5,000 (Art. 129) 3. violation of
the constitution & by-laws and rights & conditions membership 4. inter-union an
d intra-union disputes involving independent unions and chartered locals Jurisdi
ction of the NCMB conciliation, mediation, and voluntary arbitration cases (SEE
ANNEX L) B. PROCEDURE Art. 221. Technical rules not binding and prior resort to
amicable settlement Art. 222. Appearances and Fees
The rules of evidence prevail
ing in courts of law or equity shall not be controlling. It is the spirit and in
tention of this Code which shall be used as reasonable means to ascertain the fa
cts in each case
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c.
7
Without regard to technicalities of law and procedure all in the interest of due
process Parties may be represented by legal counsel but it shall be the duty of
the Chairman, any presiding Commissioner or any labor arbiter to exercise compe
te control of the proceedings at all stages GR: The only way to acquire jurisdic
tion is to serve summons Voluntary appearance of the lawyer amounts to voluntary
submission to the jurisdiction of the LA. (Santos v. NLRC, GR No. 101699, 13 Ma
rch 1996) Payment of docket fees is not required in labor standards claims under
Art. 277(d). EXCEPT: in case of bargaining deadlock, the fees are shared by the
parties Failure to implead a substitute party is not a fatal defect. (Chu v. Pa
sajo, 13 April 2003) Sec. 3, Rule V of the NLRC Rules allows parties to submit p
osition papers with attachments and they can be made basis of the LAs decision. H
olding of trial on the merits is discretionary on the part of the LA. Due proces
s in Art. 277(b) (termination disputes) end line is hearing with representative
of own choice Due process in Art. 221 opportunity to be heard It is wrong to app
ly opportunity be heard in due process under Art. 277(b). Verification and Certi
fication of Non-Forum Shopping are required BUT Art. 221 can be invoked. NLRC Ru
les provide that before deciding, LA must inform parties that the case has been
submitted for decision. If this is not complied with, decision is still valid be
cause of Art. 221. Art. 218(c) cannot be invoked to support a faulty decision of
the LA. The provision refers to a power of the NLRC and not the LA. C. APPEALS
Art. 223. Appeal Art. 224. Execution of decisions, orders or awards
are needed to see this picture. Appeal of LAs Decision
Appeal from the decision o
f the Labor Arbiter is brought by ordinary appeal to the NLRC within 10 calendar
days from receipt by the party of the decision. From the decision of the NLRC,
there is no appeal. QuickTime and a TIFF (Uncompressed) decompressor
The only way to elevate the case to the CA is by way of the special civil action
of certiorari under Rule 65 of the Rules of Civil Procedure. From the ruling of
the Court of the Appeals, it may be elevated to the SC by way of ordinary appea
l under Rule 45 of the Rules of Civil Procedure. (St. Martin Funeral Home vs. NL
RC, et al., GR No. 130866, 16 September 1998)
Grounds 1. prima facie evidence of abuse of discretion on the part of LA 2. the

decision, order or award was secured through fraud or coercion including graft a
nd corruption 3. pure questions of law 4. raised serious errors in the findings
of facts which could cause grave or irreparable damage or injury to the appellan
t 5. additional Requirement: in case of judgment involving a monetary award-empl
oyer (appellant) may perfect the appeal only upon the posting of a cash or suret
y bond issued by a reputable bonding company duly accredited by the NLRC in the
amount equivalent to the monetary award in the judgment appealed from Requisites
for Perfection of Appeal 1. filed within the reglementary period 2. Memorandum
of Appeal under oath 3. appeal fee 4. cash, property, or surety bond, if judgmen
t involves monetary award 5. proof of service to the adverse party Procedure 1.
File Memorandum of Appeal within 10 calendar days, counted from receipt of decis
ion 2. Other party can file an Answer within 20 calendar days from receipt of Ap
peal 3. NLRC decides 4. NLRC decision becomes final and executory 10 days after
it is rendered Appeal Involving Monetary Award
No monetary award, no appeal bond
required
If LAs decision does not provide for a computation of the monetary awar
d, no appeal bond is required to be filed. Bond should be posted within the 10-d
ay period for filing of appeal If no bond is filed, appeal is not perfected
Reme
dy in case of failure to post bond, remedy is to file a motion to dismiss Motion

to Reduce Bond
Page 75 of 83
7
Motion to reduce bond does not toll the running of the period to perfect appeal
The unjustified refusal of the employer to reinstate an illegally dismissed empl
oyee entitles the employee to payment of his salaries. If despite several writs
of execution, the employer still refuses to reinstate the employee, the remedy i
s not the grant of additional backwages to serve as damages but to file a motion
to cite the employer for contempt. (Christian Literature Crusade v. NLRC, 171 S
CRA 712, 10 April 1989) LA upheld the validity of the dismissal; NLRC reversed.
CA held that dismissal was valid. HELD: The employer is liable to pay for the sa
lary of the employee previously ordered reinstated by the NLRC although later on
, the dismissal of the employee was held not to be illegal. (Roquero v. PAL, G.R
. No. 152329, 22 April 2003) If the former position is already filled up, the em
ployee ordered reinstated under Article 223 should be admitted back to work in a
substantially equivalent position. (Medina v. Consolidated Broadcasting System,
222 SCRA 707)
In order to effectively stop the running of the period within which to perfect t
he appeal, the motion to reduce bond must comply with the requisites that: 1. fi
led within the reglementary period 2. based on meritorious grounds 3. a reasonab
le amount of bond in relation to the monetary award should be posted together wi
th said motion A substantial monetary award, even if it runs into millions, does
not necessarily give the employerappellant a meritorious case and does not automa
tically warrant a reduction of the appeal bond. (Calabash Garments v. NLRC, GR N
o. 110827, 08 August 1996) Partial payment of the bond is deemed substantial com
pliance with the rules while the motion to reduce bond is still pending with the
NLRC. [Rosewood Processing v. NLRC, 352 Phil 1013 (1998)] But the partial payme
nt must be made within the reglementary period. An appellant cannot invoke finan
cial difficulties as a ground in support of a Motion to Reduce Bond. Suffice it
to say that the law does not require outright payment of the total monetary awar
d, but only the posting of a bond to ensure that the award will be eventually pa
id should the appeal fail. (Times Transportation v. NLRC, GR No. 16378, 16 Febru
ary 2005)
Appeal of Voluntary Arbitrators Decision

Appealable by ordinary appeal under Rule
43 of the Rules of Civil Procedure directly to the Court of Appeals.
From the C
A, the case may be elevated to the Supreme Court by way of ordinary appeal under
the same Rule 45. (Luzon Development Bank v. Association of Luzon Development B
ank Employees, et al., GR No. 120319, 06 October 1995) Appeal of BLRs Decision 1.
Denial of application for registration of a union Denial by the Regional Office
, appeal to the BLR
Denial is originally made by the BLR, appeal may be had to t
he DOLE Secretary 2. Cancellation of registration of a union Cancellation by the
Regional Office, appeal to the BLR. Cancellation by the BLR in a petition filed
directly, appeal to DOLE Secretary by ordinary appeal 3. Decision of the BLR re
ndered in its original jurisdiction may be appealed to the DOLE Secretary whose
decision thereon may only be elevated to the CA by way of certiorari under Rule
65. 4. Decision of the BLR rendered in its appellate jurisdiction may not be app
ealed to the DOLE Secretary but may be elevated directly to the CA by way of cer
tiorari under Rule 65. (Abbott
Page 76 of 83
Enforcement
Any law enforcement agency may be deputized by the DOLE Secretary or
the NLRC
Issuance of writ of execution on a judgment within 5 years from date i
t becomes final and executory motu proprio or in motion of any interested party
Reinstatement Pending Appeal If reinstatement is ordered in an illegal dismissal
case, it is immediately executory even pending appeal QuickTime and a for
Self-e
xecuting TIFF with no need a writ of (Uncompressed) decompressor are needed to s
ee this picture. execution Either admitted back to work under the same terms and
conditions prevailing prior to his dismissal or separation or merely reinstated
in the payroll (at the option of the employer, i.e. confidential employee, but
the choice must be communicated to the employee by the employer)
Posting of a bo
nd shall not stay the execution of reinstatement
7
Laboratories Philippines, Inc. vs. Abbott Laboratories Employees Union, et al.,
GR No. 131374, 26 January 2000) Appeal of Regional Directors Decision under Art.
129
Appeal to NLRC Summary
Decision of the Voluntary Arbiter appeal to CA under
Rule 43 (Luzon Devt Bank) Decision of the DOLE and other attached agencies (inclu
ding NLRC) should be brought to the CA under Rule 65 (St. Martin Funeral Homes)
Decision of the DOLE Secretary certiorari to the CA under Rule 65 (NAFLU v. Lagu
esma) Order of the Med-Arbiter in CE in organized establishments not appealable
under DO 40-03 (2003). Thus, the recourse is certiorari under Rule 65. Decisions
of the BLR in its appellate certiorari under Rule 65 (UST Employees Union v. Bit
onio)
Certiorari is not a substitute for lost appeal.
10 days to perfect appeal
by filing a Memorandum of Appeal Property bond is now allowed. [UERM-Memorial Me
dical Center v. NLRC, 269 SCRA 70 (1997)]
Appeal bond must be strictly complied
with. NLRC cannot resuscitate a lost appeal.
Only 1 MR is allowed. LA cannot ent
ertain an MR or a petition for relief of judgment After the decision has become
final and executory, the writ of execution is NOT appealable. To stay writ of ex
ecution, ask for an injunction under Art. 218(e) Period to appeal cannot be exte
nded BUT in a number of cases, SC entertained appeals filed out of time under th
e interest of justice rule (esp. if the appellants are the employees). Doctrine
of supervening event (i.e. closure of company) requires payment of separation pa
y and full backwages up to the time of the closure of the company.
NLRC cannot order a refund of benefits or salaries. Rationale: for the employee
to earn after all he won in the LA level Time to reckon reinstatement is the dat
e of receipt of LAs decision; not NLRC decision Relief of the employer is to ask
for an injunction under Art. 218(e) If the employee is confidential, only payrol
l reinstatement is required.
VII. PENAL PROVISIONS AND LIABILITIES Penalties for Violations of the Provisions
of the Labor Code Fine of Php 1,000 to Php 10,000, or imprisonment for 3 months
to 3 years, or both at the discretion of the court. Persons liable if an offens
e is committed by a juridical person The penalty shall be imposed upon the guilt
y officer or officers of such corporation, trust, firm, partnership, association
or entity. Prescriptive period of offenses penalized by the Labor Code GR: 3 ye
ars from the time the cause of action accrued Exception: ULP cases prescribe wit
hin 1 year from accrual of such unfair labor practice
are needed to see this picture. Reinstatement Pending Appeal (RPA) 1. Decision o
f the LA 2. Independent right 3. Payroll reinstatement 4. Receipt of LAs decision
Even if NLRC reverses LA decision, the employee is still entitled to the benefit
of RPA.
SOCIAL LEGISLATION
THIRTEENTH-MONTH PAY (PD 851)
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All employers are required to pay all their rankand-file employees a 13th month
pay not later than December 24 of every year. Such employees are entitled to the
benefit regardless of their designation or employment status and irrespective o
f the method by which their wages are paid, provided that they have worked for a
t least 1 mo. during a calendar year. 13th Month Pay 1/12th of the basic salary
of an employee within a calendar year 13th Month Pay for Certain Types of Employ
ees 1. Employees paid by results entitled to 13th month pay 2. Those with Multip
le Employers entitled to the 13th month pay from all their private employers reg
ardless of their total earnings from each or all of their employers 3. Private S
chool Teachers entitled regardless of the number of months they teach or are pai
d within a year, if they have rendered service for at least 1 month within a yea
r.
th Month Pay of Resigned or Separated 13 Employee entitled to the benefit in pro
portion to the length of time he worked during the year, reckoned from the time
he started working during the calendar year up to the time of his resignation or
termination from the service
Basic Salary includes all remunerations or earnings paid by an employer to an em

ployee for services rendered but does not include cost of living allowances (COL
A), profit-sharing payments and all allowances and monetary benefits (e.g. unuse
d VL and sick leave credits, OT premium, night differential and holiday pay) whi
ch are not considered or integrated as part of the regular or basic salary of th
e employee. However, the above should be included in the computation if by indiv
idual or collective agreement, company practice or policy. Exempted Employees: 1
. Government and any of its political subdivisions, including GOCCs, except thos
e corporations operating essentially as private subsidiaries of the Government;
2. Employers already paying their employees 13th month pay or more in a calendar
year or its equivalent at the time of issuance of PD 851
Its equivalent includes
Christmas bonus, mid-year bonus, cash bonuses and other payments amounting to no
t less than 1/12 of the basic salary but shall not include cash and stock divide
nds, COLA and all other allowances regularly enjoyed by the Eee as well as non-mo
netary benefits. 3. Employers of household helpers and persons in the personal s
ervice of another in relation to such workers 4. Employers of those who are paid
on commission, boundary, or task basis, and those who are paid a fixed amount f
or performance of a specific work, irrespective of QuickTime the time consumed in
the and a (Uncompressed) decompressor performance TIFF thereof, EXCEPT where th
e are needed to see this picture. workers are paid on a piece-rate basis, in whi
ch case the employer shall grant the required 13th month pay to such workers.
Pi
ece Rate employees who are paid a standard amount for every piece or unit of wor
k produced that is more or less regularly replicated, without regard to the time
spent in producing the same.
May be demanded by the employee upon the cessation of EER.

Non-inclusion in Regular Wage benefit need not be credited as part of regular wa
ge of employees for purposes of determining OT pay and premium pays, fringe bene
fits as well as contributions to the state insurance fund, Social Security, Medi
care, and private retirement plans
ANTI-SEXUAL HARASSMENT ACT OF 1995 (RA 7877) Where Committed working, education,
training environment (WET) Who Commits 1. employer 2. employee 3. manager 4. su
pervisor 5. agent of the employer 6. teacher 7. instructor 8. professor 9. coach
10. trainor 11. any other person having authority, influence or moral ascendanc
y over another How Committed Person liable demands, requests, or otherwise requi
res any sexual favor from the other, regardless of whether the demand, request o
r requirement for submission is accepted by the object of said Act
Page 78 of 83
7
Work-Related/Employment Environment, Sexual Harassment Committed When 1. The sex
ual favor is made as a condition a. in hiring or in the employment, reemployment
or continued employment of said individual b. in granting said individual favor
able compensation, terms, conditions, promotions or privileges c. the refusal to
grant the sexual favor results in limiting, segregating or classifying the empl
oyee which in any way would discriminate, deprive or diminish employment opportu
nities or otherwise adversely affect said employee 2. The above acts would impai
r the employees rights or privileges under existing labor laws 3. The above acts
would result in an intimidating, hostile or offensive environment for the employ
ee Duty of Employer 1. Promulgate appropriate rules and regulations prescribing
the procedure for investigation of sexual harassment cases as well as guidelines
on proper decorum in the workplace 2. Create a committee on decorum and investi
gation of cases on sexual harassment. Liability of Employer / Head of Office Sol
idarily liable for damages arising from the acts of sexual harassment committed
in the employment, education or training environment if the employer is informed
of such acts by the offended party and no immediate action is taken Prescriptio
n: 3 years All government employees can form, join or assist employees organizati
ons of their own choosing for the furtherance and protection of their interests.
They can also form, in conjunction with appropriate government authorities, lab
or-management committees, work councils, and other forms of workers participation
schemes for the same objectives (2) Who are Ineligible to Join Organization of R
ank & File Government Employees High-level employees whose functions are normall
y considered as policy-making or managerial or whose duties are of a highly conf
idential nature (3) Protection of Right to Organize They shall not be discriminat
ed against in respect of their employment by reason of their membership or parti
cipation in employees organizations. Their employment shall not be subject to the
condition that they shall not join or shall relinquish their membership therein
(5) Non-Interference of Government Authorities Government authorities shall not
interfere in the establishment, functioning or administration of government empl
oyees organizations through acts designed to place such organizations under the
control of government authority (6) Place of Registration CSC and DOLE (7) Proced
ure for the Registration of Employees Organizations 1. File application with BLR
or Regional Office, which shall transmit the application to the BLR within 3 day
s from receipt 2. BLR shall process the application in accordance with the Labor
Code (7) 3. Upon approval, a registration certificate will be issued, recognizin
g it as a legitimate employees organization with the right to represent its membe
rs and undertake activities to further and defend its interests 4. The certifica
tes of registration shall be jointly approved by the Chairman of the CSC and Sec
retary of DOLE (8) Appropriate Organizational Unit It is the employers unit consi
sting of rank-and-file employees unless circumstances otherwise require. (9) Sole
and Exclusive Representative of Employees
EXECUTIVE ORDER NO. 180 Guidelines for the exercise of the right to organize of
government employees, creating a public sector labor-management council, and for
other purposes. Coverage It applies to all government employees--employees of a
ll branches, subdivisions, instrumentalities, and QuickTime and a agencies of the
government, including GOCCs with TIFF (Uncompressed) decompressor original char
ters (1) are needed to see this picture. Excluded from Coverage Members of the Ar
med Forces of the Philippines, including police officers, policemen, firemen and
jail guards (4) Right to Organize
Page 79 of 83
7
It is the duly registered employees organization having the support of the majori
ty of the employees in the appropriate organizational unit (10) Voluntary Recogni
tion A duly registered employees organization shall be accorded voluntary recogni
tion upon a showing that no other employees organization is registered or is seek
ing registration, based on records of the BLR, and that the said organization ha
s the majority support of the R&F employees in the organizational unit (11) Certi
fication Election Where there are 2 or more duly registered employees organizatio
ns in the appropriate organizational unit, the BLR shall, upon petition, order t
he conduct of a certification election and shall certify the winner as the exclu
sive representative of the R&F employees in said organization unit (12) Subject o
f Negotiation Terms and conditions of employment or improvements thereof, except
those that are fixed by law, may be the subject of negotiations between duly re
cognized employees organizations and appropriate government authorities (13) Pea
ceful Concerted Activities and Strikes The Civil Service laws and rules governin
g concerted activities and strikes in the government service shall be observed,
subject to any legislation that may be enacted by Congress. (14) Public Sector La
bor-Management Council It is the body charged with implementing and administerin
g EO 180. Composition of Council 1. Chairman, CSC - Chairman 2. Secretary, DOLE
Vice-Chairman 3. Secretary, - DOF - Member 4. Secretary, DOJ Member 5. Secretary
, Department of Budget Management Member (15) Bautista v. CA, GR No. 123375, 28 F
ebruary 2005 The SC affirmed its ruling in Association of Court of Appeals Emplo
yees v Ferrer-Calleja (GR No. 94716, 15 Nov. 1991), where it ruled that the BLR
has the jurisdiction to call for and supervise the conduct of certification elec
tions in the public sector. The Court stated that there is no constitutional obj
ection to DOLE handling the certification process considering its expertise, mac
hinery and experience in this particular activity. EO 180 requires organizations
of government employees to register with both DOEL and CSC. This ambivalence no
twithstanding, the CSC has no facilities, personnel and experience in the conduc
t of certification elections. BLR has to do the job.
SALIENT PROVISIONS OF THE SSS LAW & GSIS LAW (ANNEX O)
NATIONAL HEALTH INSURANCE ACT OF 1995 (RA 7875) General Objectives 1. provide al
l citizens of the Philippines with the mechanism to gain financial access to hea
lth services; 2. create the National Health Insurance Program to serve as the me
ans to help the people pay for health care services; 3. prioritize and accelerat
e the provision of health services to all Filipinos, especially that segment of
the population who cannot afford such services; and 4. establish the Philippine
Health Insurance Corporation that will administer the Program at central and loc
al levels BENEFICIARY - Any person entitled to health care benefits under this A
ct.
and
QuickTime and a Settlement of Disputes TIFF (Uncompressed) decompressor are neede
d to seelaws this picture. The Civil Service and labor and procedures, whenever
applicable, shall be followed in the resolution of complaints, grievances and ca
ses involving government employees. In case any dispute remains unresolved after
exhausting all the available remedies under existing laws and procedures, the p
arties may jointly refer the dispute to the Council, for appropriate action. (16)
CAPITATION - A payment mechanism where a fixed rate, whether per person, family,
household or group, is negotiated with a health care provider who shall be resp
onsible for delivering or arranging for the delivery of health services required
by the covered person under the conditions of a health care provider contract.
CONTRIBUTION - The amount paid by or in behalf of a member to the Program for co
verage, based on salaries or wages in the case of formal sector employees, and o
n household earnings and assets, in the case of the self-employed, or on the oth
er
Page 80 of 83
7
criteria as may be defined by the Corporation in accordance with the guiding pri
nciples set of this Act. DEPENDENT - The legal dependents of a member are: 1. th
e legitimate spouse who is not a member 2. the unmarried and unemployed legitima
te, legitimated, illegitimate, acknowledged children as appearing in the birth c
ertificate; legally adopted or stepchildren below 21 years of age 3. children wh
o are 21 years old and above who are suffering from congenital disability, eithe
r physical or mental, or any disability acquired that renders them totally depen
dent on the member for support 4. the parents who are 60 years old or above whos
e monthly income is below an amount to be determined by the Corporation in accor
dance with the guiding principles set forth of this Act. EMPLOYEE - Any person w
ho performs services for an employer in which either or both mental and physical
efforts are used and who receives compensation for such services, where there i
s an employer-employee relationship. EMPLOYER - A natural or juridical person wh
o employs the services of an employee. ENROLLMENT - The process to be determined
by the Corporation in order to enlist individuals as members or dependents cove
red by the Program. MEMBER - Any person whose premiums have been regularly paid
to the National Health Insurance Program. He may be a paying member, an indigent
member or a pensioner/retiree member. MEDICARE - The health insurance program c
urrently being implemented by the Philippine Medical Care Commission. It consist
s of: a. Program I, which covers members of the SSS and GSIS including their leg
al dependents; and b. Program II, which is intended for those not covered under
the Program I
are needed to see this picture. PROGRAM NATIONAL HEALTH INSURANCE The compulsory
health insurance program of the government as established in this Act, which sh
all provide universal health insurance coverage and ensure affordable, acceptabl
e, available and accessible health care services for all citizens of the Philipp
ines. QuickTime and a TIFF (Uncompressed) decompressor
PENSIONER - An SSS or GSIS member who receives pensions therefrom. RETIREE - A m
ember of the Program who has reached the age of retirement or who was retired on
account of disability. SELF-EMPLOYED - a person who works for himself and is th
erefore both employee and employer at the same time. THE NATIONAL HEALTH INSURAN
CE PROGRAM Purpose 1. To provide health insurance coverage and ensure affordable
, acceptable, available and accessible health care services for all citizens of
the Philippines 2. To serve as the means for the healthy to help pay for the car
e of the sick and for those who can afford medical care to subsidize those who c
annot. (5) Establishment 1. Include sustainable system of funds constitution, col
lection, management and disbursement for financing the availment of a basic mini
mum package and other supplementary packages of health insurance benefits by a p
rogressively expanding proportion of the population. 2. Limited to paying for th
e utilization of health services by covered beneficiaries or to purchasing healt
h services in behalf of such beneficiaries. 3. Prohibited from providing health
care directly, from buying and dispensing drugs and pharmaceuticals, from employ
ing physicians and other professionals for the purpose of directly rendering car
e, and from owning or investing in health care facilities. (5) Coverage All citiz
ens of the Philippines (6) Enrollment 1. Beneficiaries shall be enrolled in order
for them to be placed under coverage that entitles them to avail of benefits. 2
. Enrollment process includes the identification of beneficiaries, issuance of a
ppropriate documentation specifying eligibility to benefits, and indicating how
membership was obtained or is being maintained. 3. Enrollment shall proceed in a
ccordance with these specific policies:
Page 81 of 83
7
a. all persons currently eligible for benefits under Medicare Program I, includi
ng SSS and GSIS members, retirees, pensioners and their dependents, shall immedi
ately and automatically be made members of the National Health Insurance Program
; b. all persons eligible for benefits through health insurance plans establishe
d by local governments as part of Program II of Medicare or in accordance with t
he provisions of this Act, including indigent members, shall also be enrolled in
the Program. c. all persons eligible for benefits as members of local health in
surance plans shall also be deemed to have enrolled in the Program. Enrollment o
f persons who have no current health insurance coverage shall be given priority
by the corporation; and d. all persons eligible for benefits as members of other
government initiated health insurance programs, community-based health care org
anizations, cooperatives, or private non-profit health insurance plans shall be
enrolled in the Program upon accreditation by the Corporation (7) Benefit Package
1. Inpatient hospital care: a. room and board; b. services of health care profe
ssionals; c. diagnostic, laboratory, and other medical examination services; d.
use of surgical or medical equipment and facilities; e. prescription drugs and b
iologicals; subject to the limitations stated in Section 37 of this act f. inpat
ient education packages 2. Outpatient care: a. services of health care professio
nals; b. diagnostic, laboratory and other medical examination services; c. perso
nal preventive services; and d. prescription drugs and biologicals; subject to t
he limitations described in Section 37 of this QuickTime and a Act TIFF (Uncompre
ssed) decompressor
3. drug and alcohol abuse or dependency treatment; 4. cosmetic surgery; 5. home
and rehabilitation services; 6. optometric services; 7. normal obstetrical deliv
ery; and 8. cost-ineffective procedures which shall be defined by the Corporatio
n. (11) ENTITLEMENT TO BENEFITS A. Requisites: 1. A member whose premium contribu
tions for at least 3 months have been paid within the 6 months prior to the firs
t day of his or his dependents availment; 2. He can show that he contributes wi
th sufficient regularity; and 3. He is not currently subject to legal penalties
B. Monthly contributions need not be paid by the following to be entitled to ben
efits: 1. Retirees and pensioners of the SSS and GSIS prior to the effectivity o
f this Act 2. Members who reach the age of retirement and have paid at least 120
monthly contributions; and 3. Enrolled indigents (11) GRIEVANCE SYSTEM Members,
dependents, or health care providers of the Program who believe they have been a
ggrieved by any decision of the implementors of the Program, may seek redress of
the grievance in accordance with the provisions of this Article. Grounds for Gr
ievances 1. any violation of the rights of patients; 2. a willful neglect of dut
ies of Program implementors that results in the loss or nonenjoyment of benefits
by members or their dependents; 3. unjustifiable delay in actions on claims; 4.
delay in the processing of claims that extends beyond the period agreed upon; a
nd 5. any other act or neglect that tends to undermine or defeat the purposes of
this Act. (40) Grievance and Appeal Procedure A. Who may file complaint 1. Membe
r, 2. Dependent, or 3. Health care provider B. Procedure 1. A complaint for grie
vance must be filed with the Local Health Office (LHO)
Page 82 of 83
3. Emergency and transfer services 4. Other health care services (10) Excluded Pe
rsonal Health Service 1. non-prescription drugs and devices; 2. outpatient psych
otherapy and counseling for mental disorders;
7
2. LHO shall rule on the complaint within 90 calendar days from receipt 3. Appea
ls from LHO decisions must be filed with the Board within 30 days from receipt o
f notice of dismissal or disallowance by the Office C. LHO has NO jurisdiction o
ver any issue involving: 1. suspension or revocation of accreditation 2. imposit
ion of fines, or 3. imposition of charges on members or their dependents in case
of revocation of their entitlement. D. All decisions by the Board as to entitle
ment to benefits of members or to payments of health care providers shall be con
sidered final and executory E. Hearing Procedures of Grievance and Appeal Review
Committee (GARC) 1. Upon the filing of the complaint, GARC may dismiss the case
outright due to lack of verification, failure to state the cause of action, or
any other valid ground for dismissal of the complaint after consultation with th
e Board; or require the respondent to file a verified answer within 5 days from
service of summons. 2. Should the defendant fail to answer the complaint within
the reglamentary five-day period, GARC, motu proprio or upon motion of the compl
ainant, shall render the judgment. 3. After an answer is filed and the issues ar
e joined, GARC shall require the parties to submit, within 10 days from receipt
of the order, the affidavits of the witnesses and other evidence on the factual
issues defined therein, together with a brief statement of their positions setti
ng forth the law and the facts relied upon by them. In the event GARC finds, upo
n consideration of the pleadings, the affidavits and other evidence, and positio
n statements submitted by the parties, that a judgment may be rendered thereon a
nd a hearing, it may without need of QuickTime a formal TIFF (Uncompressed) decom
pressor are needed to see this picture. proceed to render judgment not later 10
days from the submission of the position statements of the parties 4. In cases w
here GARC deems it necessary to hold a hearing to clarify specific factual matte
rs before rendering judgment, it shall set the case for hearing for the purpose.
At such hearing, witnesses whose affidavits were previously submitted may be as
ked clarificatory questions by the proponent and by the Committee and may be cro
ssexamined by the adverse party. The hearing shall be terminated within 15 days,
and the case decided by the Committee within15 days from such termination. 5. T
he decision of GARC shall become final and executory 15 days after notice thereo
f 6. Such decision is appealable to the Board by filing the appellant s memorand
um of appeal within 15)days from receipt of the copy of the judgment appealed fr
om. The appellees shall be given15 days from notice to file the appellee s memor
andum after which the Board shall decide the appeal within 30 days from the subm
ittal of the said pleadings. 7. The decision of the Board shall also become fina
l and executory 15 days Such decision is reviewable by the Supreme Court on pure
ly questions of law (41)
Page 83 of 83
ANNEX A: Requirements for Registration

a. b.
c.
Federation / National Union In addition to a, b, c, e and f of the requirements
for Independent Union: a. Resolution of affiliation of at least 10 LLOs whether i
ndependent union or chartered locals(all duly recognized Collective Bargaining a
gents) b. Names and addresses of the companies where the affiliates operate plus
list all members in each company involved d.
Chartered Local a. A charter certificate issued by the federation or national un
ion indicating the creation or establishment of the local/chapter; b. The names
of the local/chapters officers, their addresses, and the principal office of the
local/chapter; and c. The local/chapters constitution and by-laws, provided that
where the local/chapters constitution and by-laws is the same as that of the fede
ration or national union, this fact shall be indicated accordingly.
Independent Labor Organization a. Registration Fee b. Name of the applicant unio
n, its principal address, names and addresses of its officers, approximate numbe
r of employees in the bargaining unit where it seeks to operate, with a statemen
t that it is not reported as a chartered local of any federation or national uni
on; c. Minutes of the organizational meeting; list of workers who participated i
n the meetings d. Names of all its members comprising at least 20% of all the em
ployees in the bargaining unit e. Annual financial report if the applicant has b
een in existence for one or more years, unless it has not collected any amount f
rom the member, in which case a statement to this effect shall be included f. Co
nstitution and by-laws (CBL), minutes of its adoption and ratification, and the
list of the members who participated in it; (list of ratifying members may be di
spensed with where the CBL was ratified or adopted during the organizational mee
ting factual circumstance of the ratification shall be recorded in the meeting)
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Labor organizations operating within an identified industry may a
lso apply for registration as a federation or national union within the specifie
d industry by submitting to the Bureau the same set of documents e.
Workers Association Registration fee Name of the applicant association, its princ
ipal address, the name of its officers and their respective addresses, Minutes o
f the organizational meetings, and names of individual members who attended such
meetings Financial reports of the applicant association if it has been in exist
ence for one or more years, unless it has not collected any amount from the memb
ers, in which case a statement to this effect shall be included in the applicati
on Constitution and By-laws with names of ratifying members, the minutes of adop
tion or ratification of the CBL and the date when ratification was made, unless
ratification was done in the meeting, in which case such fact shall be reflected
in the minutes
Must submit 2 copies. Certified under oath by the Secretary or the Treasurer of
the local/chapter and attested by its President. (DO 40-B-03)
TIFF (Uncompressed) decompressor are needed to see this picture.
all required documents shall be certified under oath by the Secretary or Treasur
er & attested by the President 1 original copy and 2 duplicates copies of all do
cuments accompanying the application or notice shall be submitted to the Regiona
l Office or the Bureau
Application for registration of a workers association operating in more than one

region shall be accompanied, in addition to the requirements in the preceding su
bsection, by a resolution of membership of each member.
ANNEX B: Requirements in Case of Merger / Consolidation / Affiliation

WHERE TO FILE
Affiliation Report of affiliation shall be filed with the Regional Office that i
ssued its certificate of registration a.
b.
Merger Notice of merger of the independent labor unions, chartered locals and wo
rkers association shall be filed with the Regional Office that issued the certifi
cate of registration Notice of merger of federation shall be filed and recorded
with the Bureau
Consolidation a. Notice of consolidation of the independent labor unions, charte
red locals and workers association shall be filed with the Regional Office that i
ssued the certificate of registration of consolidation of federation shall be fi
led b. Notice recorded with the Bureau a. minutes of consolidation convention of
all the consolidating labor organizations, with the list of their respective me
mbers who approved the same b. amended constitution and by-laws, minutes of its
ratification transpired in the consolidation convention or in the same general m
embership meetings, which fact shall be indicated accordingly
REQUIREMENTS
a. Resolution of the labor unions board of directors approving the affiliation b.
minutes of the general membership meeting approving the affiliation c. total nu
mber of members and names of members who approved the affiliation d. certificate
of affiliation issued by the federation in favor of the independently registere
d labor union e. written notice to the employer concerned if the affiliating uni
on is the incumbent bargaining agent
a. minutes of merger convention or general membership meetings of all the mergin
g labor organizations with the list of their respective members who approved the
same b. amended constitution and by-laws and minutes of its ratification, unles
s transpired in the convention, which fact shall be indicated
ANNEX C: Procedure for Registration of Labor Organization Where to file

Regional Office
labor union
Bureau
(Action within 10 days from receipt of application)
Approval - Issuance of certificate of registration
Denial Ground: Failure to comply with requirements
Regional Office in case of applications for registration of independent unions.

Applications for registration of federations, national unions or workers associat
ion operating in more that one region shall be filed with the Bureau or Regional
Offices but shall be processed by the Bureau. A duly-registered federation or n
ational union may directly create a chartered local by submitting the required d
ocuments (See Annex A) to the Regional Office. (DO 40-B-03) DENIAL BY:
If the documents submitted are incomplete or do not contain the required certifi
cation and attestation, The Regional Office should notify the applicant in writi
ng within 5 days from receipt of application. The applicant must be given 30 day
s from notice to complete the requirements If applicant fails to complete the re
quirements within 30 days, the application shall be denied.
Regional Office (transmit records within 24 hours from receipt of Memo of Appeal
)
APPEAL BY MEMO OF APPEAL WITHIN 10 DAYS FROM RECEIPT OF NOTICE
Bureau (transmit records within 24 hours from receipt of Memo of Appeal)
Bureau (decision within 20 QuickTime and a TIFF (Uncompressed) decompressor days
from receipt of are needed to see this picture. records)
GROUNDS: 1. Grave abuse of discretion; 2. Violation of rules as amended
Secretary of DOLE (decision within 20 days from receipt of records)
Supreme Court Rule 65
Supreme Court Rule 65
ANNEX D: Procedure for Cancellation of Registration of Labor Organizations

Any party-in-interest may commence a petition for cancellation
Members of labor organization for actions involving violations of Art. 241
File independent complaint or petition for cancellation based on the grounds
Regional Director in case of independent labor union, chartered local and worker
s association
Bureau Director in case of federations, national or industry unions and trade un
ion centers
GROUNDS: a. Misrepresentation, false statement or fraud in connection with the a
doption or ratification of the constitution and by-laws or amendments thereto, t
he minutes of ratification, the list of members who took part in the ratificatio
n of the constitution and by-laws or amendments thereto, the minutes of ratifica
tion, the list of members who took part in the ratification; b. Failure to submi
t the documents mentioned in the preceding paragraph within thirty (30) days fro
m adoption or ratification of the constitution and by-laws or amendments thereto
; c. Misrepresentation, false statements or fraud in connection with the electio
n of officers, minutes of the election of officers, the list of voters, failure
to submit these documents together with the list of the newly elected or appoint
ed officers and their postal address within thirty (30) days from election; d. F
ailure to submit the QuickTime annual and a TIFF (Uncompressed) decompressor fina
ncial reportare to needed the Bureau within to see this picture. thirty (30) day
s after the close of every fiscal year and misrepresentation, false entries or f
raud in the preparation of the financial report;
e.
Notice and Due Process
f.
Resolved by Regional Director like the procedure of Inter/Intra-Union Disputes (
Rule XI)
g.
h.
i.
j.
k.
Acting as a labor contractor or engaging in the "cabo" system, or otherwise enga
ging in any activity prohibited by law; Entering into collective bargaining agre
ements which provide for terms and conditions of employment below minimum standa
rds established by law; Commission of any of the acts enumerated under Article 2
41 of the Labor Code; provided that no petition for cancellation based on this g
round may be granted unless supported by at least thirty (30%) percent of all th
e members of the respondent labor organization; Asking for or accepting attorney
s fees or negotiation fees from the employer; Other than for mandatory activiti
es under the Labor Code, checking off special assessments or any other fees with
out duly signed individual written authorizations of the members; Failure to sub
mit list of individual members to the Bureau once a year or whenever required by
the Bureau; Failure to comply with the requirements of registration prescribed
under Rules III and IV
ANNEX E: Cancellation of Registration of Labor Organizations due to Non-Complian

ce with the Reportorial Requirements
Labor Relations Division of the Regional Office or the Bureau a) on its own init
iative b) upon complaint filed by any party-in-interest
Conditions for administrative cancellation: (a) Non-compliance is for a continuo
us period of five (5) years; (b) The procedures laid down in this Rule were comp
lied with; and (c) The labor organization concerned has not responded to any of
the notices sent by the Bureau, or its notices were returned unclaimed.
Make a report of the labor organizations non-compliance
Submit to the Bureau for verification of records
Bureau shall send a notice for compliance by registered mail with return card to
the labor organization concerned
Within 10 days from receipt
30 days from release of notice
Comply with the reportorial requirements and submit proof thereof to the Bureau
No response from labor organization
No response within 30 days from release of 2nd notice
Bureau shall cause publication of the notice of cancellation in 2 newspapers of
general circulation
Bureau may conduct investigation: 1) employers premises; and 2) labor organizatio
ns last known address
Bureau has verified the dissolution of the labor organization
No response w/in 30 days from date of publication
Bureau shall: 1) order cancellation of registration 2) cause its de-listing from
the roster of legitimate labor organizations
ANNEX F: Elections under Rule 12 Of The Implementing Rules

President of the labor organization shall constitute a committee on election
Within 60 days before the expiration of the term of the incumbent
Committee shall elect its Chairman
Committee shall exercise its powers 10 days f
rom its constitution 1) set the date, time and venue of the election; 2) prescri
be the rules on the qualification and eligibility of candidates and voters; 3) p
repare and post the voters list and the list of qualified candidates; 4) accredit
the authorized representatives of the contending parties; 5) supervise the actu
al conduct of the election and canvass the votes to ensure the sanctity of the b
allot; 6) keep minutes of the proceedings; 7) be the final arbiter of all electi
on protests; 8) proclaim the winners; and 9) prescribe such other rules as may f
acilitate the orderly conduct of election. Committee composed of at least three
(3) members who are not running for any position in the election. if there are i
dentifiable parties within the labor organization, each party shall have equal r
epresentation in the committee
at least 30% of the members of the labor organization may file a petition for co
nduct of election of union officers with the Regional Office if 1. Terms of offi
cers have expired and officer failed to call for election of new officers, or 2.
Labor organizations constitution and by-laws do not provide for the manner by wh
ich election can be called or conducted. Petition to be heard by Bureau in case
of federations, national or industry unions, trade union centers.
Formal requirements, processes and periods of disposition of this disposition is

the same as those stated in Rule XI of DO 40-03 Inter/Intra Union Dispute. Appo
intment of an election officer and procedures and periods in conduct of pre-elec
tion conference and election proceedings under Rule IX Conduct of Certification
Election will also apply here.
ANNEX G: Bargaining Procedure under the Labor Code (Art. 250) Serve written noti
ce with statement of proposals upon the other party.
Reply not later than 10 days from receipt Reply of other party If differences ar
ise on the basis of notice and reply Conference
If the dispute is not settled. Board shall intervene, call parties to conciliati
on meetings
The recognized or certified labor union and its employer may adopt such procedur
es and processes they may deem appropriate and necessary for the early terminati
on of their negotiations. They shall name their respective representatives to th
e negotiation, schedule the number and frequency of meetings, and agree on wages
, benefits and other terms and conditions of work for all employees covered in t
he bargaining unit.
Board shall have the power to issue subpoenas to require attendance to such meet
ings. Board shall exert all efforts to settle disputes amicably, encourage parti
es to submit case to voluntary arbitrator. Parties are prohibited from doing any
act which may disrupt or impede the early settlement of the disputes.
ANNEX H: PETITION FOR CERTIFICATION ELECTION Who may file? any legitimate labor
organization employer, when requested to bargain collectvely Raffle dispensed wi
th If there is only 1 Med-arbiter Where to file? with the Regional Office which
issued the certificate of registration/certificate of creation When to file? any
time, except: a. When voluntary recognition has been entered, or a valid certifi
cation, consent or run-off election has been conducted within 1 year prior to th
e filing. b. negotiations in good faith with the employer c. bargaining deadlock
had been submitted to conciliation or arbitration or had become the subject of
a valid notice of strike or lockout. d. Registered CBA may file only within 60 d
ays prior to the expiration of the CBA.
File petition for certification election
Raffle
Service of notice of preliminary conference

Preliminary Conference
Must be within 10 days from Receipt of petition
Parties agree to a consent election
Parties fail to agree on consent election
Hearings Forward records of petition to Regional Director/ authorized representa
tive may conduct such number of hearings, but hearings should not exceed 15 days
from preliminary hearing.
within 10 days from last hearing
First pre-election conference Must be within 10 days from Date of entry of agree
ment
Decision
If there is no appeal Within 10 days from Receipt of decision, Med-arbiter shall
enter The finality of the decision In the records of the case
Grounds for Denying Petition a. the petitioner is not listed in the Departments r
egistry of legitimate labor unions or that its legal personality has been revoke
d or cancelled with finality. b. the petition was filed before or after the free
dom period of a duly registered collective bargaining agreement; provided that t
he sixty-day period based on the original collective bargaining agreement shall
not be affected by any QuickTime and a TIFF (Uncompressed) decompressor amendment
, extension or of the collective bargaining agreement; are needed to see thisren
ewal picture. c. the petition was filed within one (1) year from entry of volunt
ary recognition or a valid certification, consent or run-off election and no app
eal is pending; d. a duly certified union has commenced and sustained negotiatio
ns with the employer within the one-year period referred to in Section 14.c of t
his Rule, or the bargaining deadlock existing had been submitted to conciliation
or arbitration or had become the subject of a valid notice of strike or lockout
. e. in case of an organized establishment, failure to submit the twenty-five pe
rcent (25%) support requirement for the filing of the petition for certification
election.
Decision
Unorganized establishment
Organized establishment
Petition Granted
Petition Denied
Petition Granted
Petition Denied
Non-appealable File memorandum of appeal with Regional Office where the petition
originated within 10 days from receipt of decision
Regional Director to transmit entire records within 24 hours from receipt of app
eal to Office of Secretary
Reply
reply may be filed by any party within 10 days from receipt of memorandum of app
eal. Secretary shall have 15 days from receipt of the entire records to decide S
ecretary decision final and executory within 10 days from receipt by the parties
. No motion for reconsideration shall be entertained. The entire records of the
case shall be remanded to the Regional Office for implementation within 48 hours
from notice of receipt of decision.
Secretarys Decision
ANNEX I: Conduct of Certification Election

Receipt of notice of entry of final judgment granting the conduct of certificati
on election 24 hours Regional Director shall cause the raffle of the case to an
Election Officer 24 hours from receipt of the assignment Failure to appear in th
e preelection conference considered a waiver of right to question any agreement
in the pre-election conference. But nonappearing party retains the right to be g
iven notices of subsequent pre-election conferences Election Officer shall cause
the issuance of notice of pre-election conference upon the contending unions an
d the employer
Pre-election conference
Posting of Notices:
at least 10 days before election.
2 most conspicuous places
in company premises Contents: 1. date and time of election 2. names of all conte
nding unions 3. description of the bargaining unit, list of eligible and challen
ged voters
Must be within 10 days from receipt of the assignment Must be completed within 3
days from date of the first hearing
Certification Election
Must not be later than 45 days from date of the first pre-election conference
Election precincts close
the election precincts shall open and close on the date and time agreed upon dur
ing the pre-election conference. the opening and canvass shall proceed immediate
ly after the precincts have closed.
The proclamation must be under any of the ff. conditions: 1. no protest was file
d or, even if one was filed, the same was not perfected within the five-day peri
od for perfection of the protest. 2. no challenge or eligibility issue was raise
d or, even if one was raised, the resolution of the same will not materially cha
nge the results of the elections.
Canvass of votes Failure of Election when the votes cast is less than the majori
ty of the eligible voters, and there are no material challenged QuickTime and a v
otes. TIFF (Uncompressed) decompressor are needed to see this picture. Another c
ertification or Transmit records of the case to consent election may be Med-arbi
ter. Med-arbiter shall held within 6 months. issue an order proclaiming the resu
lts of the election.
ANNEX J: Procedure in Handling Grievances

Present grievance to shop steward Base
d on DO 40-03 This will apply only in the absence of a provision in the CBA or e
xisting company policy.
Immediate supervisor No settlement
Grievance Committee Still unresolved Either party may serve notice upon the othe
r of its decision to submit to voluntary arbitration If the party upon whom the
notice is served fails or refuses to respond favorable within 7 days from receip
t: 1. Designated voluntary arbitrator or panel shall begin voluntary arbitration
proceedings, or 2. Board shall call the parties and appoint a voluntary arbitra
tor or panel. 10 days Grievance committee decision
ANNEX K: Inter/Intra-Union Dispute & Other Related Labor Relations Disputes File
complaint or petition
Raffle
Raffle is dispensed with if there is only one Medarbiter or Hearing Officer in t

he Region
Petition shall be transmitted to Medarbiter Within 3 days from receipt Of petiti
on Prepare, cause service of notice of preliminary conference upon the party fil
ing the petition. Med-arbiter shall cause the service of summons upon the respon
dents.
Preliminary conference
within 10 days from receipt of the complaint or petition

Parties agree to amicable settlement
No amicable settlement
Decision based on the amicable settlement within 5 days from preliminary confere
nce.
Proceed with stipulation of facts, limitation of issues, clarificatory questioni
ng, submission of laws and jurisprudence
Hearing/s
limited to clarificatory ques
tions by Med-arbiter deemed submitted for decision after the last hearing or upo
n expiration of 25 days from preliminary conference, whichever comes first. (max
of 25 days to conduct hearings)
Bureau/Med-arbiter must Decision Decide within 20 days From last hearing QuickTi
me and a (Uncompressed) decompressor Where to file? Who may file? TIFF are needed
to see this picture. 1. Regional Office which issued certificate of registratio
n/creation any legitimate labor - complaints involving labor unions with indepen
dent registration, chartered organization or its members locals, workers associa
tion, its officer/members.
any party-in-interest 2. Bureau
if the issue involves
the entire - involving federations, national unions, industry unions, its membe
rship of the labor officers/members. organization, complaint must 3. Regional Di
rector be supported by 30% of - petitions for cancellation of registration of la
bor unions, petitions for members. deregistration of CBA 4. Med-arbiter - other
inter/intra union disputes and other related labor relations disputes
Med-arbiter/ Regional Director Decision

Bureau Director Decision
Must appeal within 10 days from receipt of decision Bureau Director Office of th
e Secretary May call parties to a clarificatory hearing Must decide within 20 da
ys From receipt of records
Bureau Director Decision
Office of DOLE Secretary
Final and executory If there is no appeal with 10 days Bureau Director Decision
Final and Executory Only 1 MR allowed Office of Secretary Decision Final and Exe
cutory
Records remanded to the Regional Office or Bureau of origin For implementation w
ithin 24 hours From receipt of decision by the parties and finality of decision
Execution of Decision
Med-arbiter and Regional Director Decision, or Bureau Deci
sion, in the exercise of its original jurisdiction automatically stayed pending
appeal. Bureau Decision, Office of Secretary Decision in exercise of its appella
te jurisdiction immediately executory upon entry of final judgment.
ANNEX L: Jurisdiction Supreme Court

Court of Appeals
Office of the DOLE Secretary BLR
Voluntary Arbitration
NLRC Strike Subject to Assumption of Jurisdiction assumed Disputes Submitted to
Voluntary Arbitrator Grievance Machinery
1.
certified
Labor Arbiter (217)
1. 1. Federation / National Union / Trade Union Center Registration, revocation
and cancellation cases
Regional Director (128 / 129)
POEA
Bureau of Labor Relations
1. 2. 3.
2.
4.
Regional Office Med-Arbiter 1. Petition for Certification Election. 2. Complaint
s or petitions involving labor unions with independent registration, chartered l
ocals, workers associations, its officers or members.
3. 4. 5.
2.
5.
6. 2.
Election of Officers CBA Registration Independent Union/Chartered Local Registra
tion Revocation and cancellation cases 6.
7.
Cancellation / Suspension of License of Authority to recruit of Recruitment Agen
cies (until phase out within five years as provided in RA 8042) Disciplinary Act
ion against OFWs 7.
3.
8.
9.
Other inter/intra-union disputes and related labor relations disputes shall be h
eard and resolved by the MedArbiter in the Regional Office. A request for examin
ation of books of accounts of independent labor unions, chartered locals and wor
kers associations (Art. 274)
8. Actions arising from 241 arising from administration and accounting of union
funds
ULP 1. Labor Standards Enforcement Termination Cases Enforcement of labor 2. Occ
upational Standards with claim Safety and Health exceeding P5,000 per Violations
individual 3. Money Claims Damages arising from arising from Labor EER Standard
s All other claims Violations NOT arising from EER exceeding P5,000 Violation of
per individual AND Compromise w/o claims for Agreements reinstatement Execution
of award of QuickTime and a NOTE: The P5,000 Voluntary Arbitrator TIFF (Uncompre
ssed) decompressor are needed to see this picture. limit is applicable to the Ov
erseas adjudicatory powers of Employment the Regional Director Disputes, i.e. mo
ney under Art. 129 and not claims arising from the visitorial and such Wage dist
ortion enforcement power cases (where there is under 128. no CBA)
Complaints involving federations, national unions, industry unions, its officers
or member organizations. 3. A request for examination of books of accounts of f
ederations or national unions and trade union centers pursuant to Article 274
4.
Disputes concerning interpretation or implementation of CBA Disputes concerning
of interpretation or implementation of company personnel policies All others def
ined as grievance by CBA Wage distortion cases (where there is CBA)
ANNEX M: Republic Act No. 9347 An Act Rationalizing the Composition and Function
s of the National Labor Relations Commission, Amending for this Purpose Article
213, 214, 215 and 216 of P.D. No. 442, as Amended, Otherwise Known as the Labor
Code of the Philippines Art. 213. National Labor Relations Commission
NLRC shall
be attached to the DOLE solely for program and policy coordination only, compos
ed of a Chairman and 23 members. 8 members shall be chosen only from the nominee
s of the workers and employers organizations respectively. The Chairman and 7 re
maining members shall come from the public sector, with the latter to be chosen
preferably from among the incumbent labor arbiters.
NLRC may sit en banc or in 8
divisions, with 3 members each. En banc only for purposes of promulgating rules
and regulations governing the hearing and disposition of cases before any of it
s divisions and regional branches and formulating policies affecting its adminis
tration and operations Divisions when in the exercise of its adjudicatory and al
l other powers, functions and duties
1st 6th divisions Luzon & NCR
7th & 8th Vis
ayas and Mindanao
NLRC sitting en banc may, on temporary or emergency basis, all
ow cases within the jurisdiction of any division to be heard and decided by any
other division whose docket allows the additional workload and such transfer wil
l not expose litigants to unnecessary additional expenses. The divisions of the
NLRC shall have exclusive appellate jurisdiction over cases within their respect
ive territorial jurisdiction.
The concurrence of 2 Commissioners of a division s
hall be necessary for the pronouncement of a judgment or resolution. Whenever th
e required membership in a division is not complete and the concurrence of 2 Com
missioners to arrive at a judgment or resolution cannot be obtained, the Chairma
n shall designate such number of additional Commissioners from the other divisio
ns as may be necessary. The conclusions QuickTime of a division on any case and a
TIFF (Uncompressed) decompressor submitted to it for decision shall be reached
in are needed to see this picture. consultation before the case is assigned to a
member for the writing of the opinion. It shall be mandatory for the division t
o meet for purposes of the consultation ordained therein. Art. 214. Headquarters
, branches and provincial extension units
Offices of 1st 6th Divisions Metro Man
ila 7th Division Cebu
8th Division Cagayan de Oro The Commission shall establish
as many regional branches as there are regional offices of the DOLE, sub-region
al branches or provincial extension units. There shall be as many Labor Arbiters
as may be necessary for the effective and efficient operation of the NLRC.
Art. 215. Appointment and qualifications

Chairman and other Commissioners member
s of the Philippine Bar and must have been engaged in the practice of law in the
Philippines for at least 15 years, with at least 5 years experience or exposure
in the field of labormanagement relations, and shall preferably be residents of
the region where they shall hold office LAs members of the Philippine Bar and m
ust have been engaged in the practice of law in the Philippines for at least 10
years, with at least 5 years experience or exposure in the field of labormanagem
ent relations
Term hold office during good behavior until the age of 65 years, u
nless sooner removed for cause as provided by law or become incapacitated to dis
charge duties of their office
But the President may extend the services of the C
ommissioners and LAs up to the maximum of 70 years upon the recommendation of th
e Commission en banc. Chairman, Division Presiding Commissioners and other Commi
ssioners appointed by the President. Appointment to any vacancy in a specific di
vision shall come only from the nominees of the sector which nominated the prede
cessor. LAs appointed by the President, upon recommendation of the Commission en
banc to a specific arbitration branch, preferably in the region where they are
residents, and shall be subject to the Civil Service Law, rules and regulations.
Provided, that the labor arbiters who are presently holding office in the regio
n where they are residents shall be deemed appointed thereat.
Chairman and the C
ommissioners, shall appoint the staff and employees of the Commission, and its r
egional branches as the needs of the service may require, subject to the Civil S
ervice Law, rules and regulations, and upgrade their current
salaries, benefits and other emoluments in accordance with law. Art. 216. Salari
es, benefits and other emoluments
Chairman and Commissioners shall have the same
rank, receive an annual salary equivalent to, and be entitled to the same allow
ances, retirement and benefits as, those of the Presiding Justice and Associate
Justices of the Court of Appeals, respectively.
LAs shall have the same rank, receive an annual salary equivalent to and be enti
tled to the same allowances, retirement and other benefits and privileges as tho
se of RTC Judges. In no case, however, shall the provision of this Article resul
t in the diminution of the existing salaries, allowances and benefits of the afo
rementioned officials.
ANNEX N: Salient Provisions of 2005 Revised Rules of Procedure of the NLRC Suppl
etory Application of the Rules of Court
Pertinent provisions of the Rules of Cou
rt have a suppletory application in the absence of an applicable provision there
to in the interest of expeditious dispensation of labor justice. Appearances A l
awyer appearing for a party is presumed authorized to appear for such purpose. A
non-lawyer may appear or counsel in the proceedings only under the following co
nditions: a. He represents himself as party to the case b. He represents a LLO w
hich is a party case, provided that he represents a certification from the BLR o
r Regional Office of the DOLE attesting that his organization duly registered an
d listed in the roster of legitimate labor organizations, together with a verifi
ed certification issued by the secretary and attested by the president of the la
bor organization stating that he is duly authorized to represent the organizatio
n in the case and a copy of the board resolution granting him such authority c.
He represents a member or members of a LLO existing within an employers establish
ment which is a party to the case provided that he present a verified certificat
ion proving his authority from such member / members and verified certification
issued by the secretary and attested by the president of such organization stati
ng that the person/s he is representing are members of the organization which is
existing in the employers establishment d. He is a duly accredited member of a l
egal aid office recognized by the DOJ and the IBP upon presentation of his accre
ditation e. He is the owner or president of the corporation which is party to th
e case upon presentation of a verified certification of his authority and a boar
d resolution of the corporation granting him such authority. Pleadings Prohibite
d pleadings: QuickTime and a TIFF (Uncompressed) decompressor a. Motion to dismis
s (except are needed to see this picture.on grounds of lack of jurisdiction over
the subject matter, improper venue, prescription and forumshopping) b. Motion f
or a bill of particulars c. Motion for new trial d. Petition for relief from jud
gment when filed with the LA e. Petition for certiorari, mandamus or prohibition
f. Motion to declare defendant in default g. Motion for reconsideration or appe
al from any interlocutory order of the LA Denial of MTD is not appealable Certif
icate of Non-Forum Shopping is required Verification lawyer can sign verificatio
n but not the certificate of non-forum shopping
Venue
All cases within the jurisdiction of the LA to hear and decide may be file
d with the Regional Arbitration Branch (RAB) having jurisdiction over the workpl
ace of the complainant.
Venue place where the employee is regularly employed at
the time the cause of action arose; whether on temporary detail, assignment or t
ravel. For field, ambulant or itinerant workers, the workplace shall mean the pl
ace where they are regularly assigned or where they are supposed to regularly re
ceive their salaries / wages and report the result of their assignment.
If 2 or
more RABs have jurisdiction over the workplace of the complainant, the branch th
at first acquired jurisdiction over the case shall exclude the others. Venue of
a case may be transferred to another branch upon written agreement of the partie
s or upon order of the LA or NLRC, upon motion by the proper party in meritoriou
s cases. Cases involving OFWs RAB having jurisdiction over the place where the c
omplainant resides or where the principal office of any of the respondents is si
tuated, at the option of the complainant.
Subject to Art. 263 (g) of the Code, t
he LA shall dispose of the case assigned to him including any or all incidents t
hereof in the same proceeding to avoid multiplicity of suits. Submission of Posi
tion Paper and Reply When required, the LA should direct the parties to file sim
ultaneously their verified position papers attaching their supporting documents
and affidavits within the inextendible period of 10 calendar days from the date
of the termination of the conciliation conference.
A reply may be filed by eithe
r party within 10 calendar days from receipt of the position papers. No facts or
evidence to prove facts of any cause of action not included in the complaint ar
e allowed to be alleged in the position papers.
LA shall determine whether there
is a need for a hearing or clarificatory conference and at his discretion, the
LA may ask clarificatory questions to elicit further information on facts.
LA has full control and shall personally conduct the hearing / clarificatory con
ference.
pertaining to the appealed case shall thereafter be addressed to and filed with
the Commission. Injunction
A preliminary injunction or TRO may be granted by the
NLRC through its Divisions when it is established on the basis of the sworn all
egations in the petition that the acts complained of involving or arising from a
ny labor dispute before the NLRC which if not restrained may cause grave or irre
parable damage to any party. After the hearing of the testimony of witnesses and
with opportunity for cross examination in support of the allegations of the com
plaint or petition under oath, and testimony by way of opposition thereto, and o
nly after a finding of fact by the Commission: a. that the prohibited acts have
been threatened and will be committed and continued unless restrained; b. that s
ubstantial and irreparable injury to petitioners property will follow; c. that as
to each item of relief to be granted, greater injury will be inflicted upon res
pondents by the granting of relief; d. that the petitioner has no adequate remed
y at law; e. that the public officers charged with the duty to protect petitione
rs property are unable or unwilling to furnish adequate protection.
If the petiti
oner shall also allege that unless a TRO shall be issued without notice, a subst
antial or irreparable injury to petitioners property will be unavoidable, such a
TRO may be issued upon testimony under oath, or by oath, or by affidavits of the
petitioners witnesses, if sufficient, if sustained to justify the Commission in
the issuance thereof.
Appeals
Decisions and orders of the LA are final and executory unless appealed t
o the Commission within 10 calendar days; and in case of orders and resolutions
of the Regional director of the DOLE, within 5 days from receipt thereof.
No mot
ion or request for extension of the period to appeal is allowed. Requisites of p
erfection of appeal: 1. Appeal must be: a) filed within the reglementary period
provided in Sec.1 of this Rule b) verified by the appellant himself in accordanc
e with the Rules of Court Sec.4, Rule 7 c) in form of a memorandum of appeal sta
ting i. the grounds relied upon and arguments in support thereof ii. relief pray
ed for, iii. statement of the date appellant received the appealed decision, d)
in 3 copies e) accompanied by i. proof of payment of required appeal fee ii. pos
ting of a bond iii. certificate of non-forum shopping iv. proof of service upon
other parties
In case the decision of the Labor Arbiter or the Regional Director
involves a monetary award, an appeal by the employer may be perfected only upon
the posting of a bond.
Once an appeal is filed, the LA loses jurisdiction over
the case. All pleadings and motions
ANNEX O: Salient Features of the SSS Law and GSIS Law Social Security Act of 199
7 (RA 8282) WHO ARE COVERED Government Service Insurance Act of 1997 (RA 8291) 1
. EMPLOYER the national government, its political subdivisions, branches, agenci
es or instrumentalities, including GOCCs, and financial institutions with origin
al charters, the constitutional commissions and the judiciary 2. EMPLOYEE any pe
rson receiving compensation while in service of an employer as defined herein, w
hether by election or appointment
DEPENDENTS
CONDITIONS FOR CHILD TO BE CONSIDERED DEPENDENT BENEFICIARIES 1. PRIMARY
1. EMPLOYER any person, natural or judicial, domestic or foreign who carries on
in the Philippines any trade, business, industry undertaking or activity of any
kind and uses the services of another person who is under his orders as regards
employment 8(c) *EXEMPT EMPLOYER: government and any of its political subdivisio
ns, branches and instrumentality, including GOCCs, i.e., those under GSIS 2. EMP
LOYEE any person who performs services for an employer who receives compensation
for such services, where there is an employeremployee relationship 3. SELF-EMPL
OYED considered both employer and employee 1. Legal spouse entitled for support;
2. Child, whether legitimate, legitimated, legally adopted or illegitimate; 3.
Parents dependent for support 1. Unmarried; 2. Not gainfully employed; 3. Has no
t reached 21 years of age; OR 3. Not over age of majority; OR 4. Incapable of su
pporting himself either physically or mentally prior to 21 years of age or age o
f majority, as the case may be a. Dependent Spouse until remarriage AND b. Depen
dent Legitimate or Legitimated or Legally Adopted and Illegitimate Children a. D
ependent Parents b. Absent primary and secondary beneficiaries, any other person
designated by member as secondary beneficiary a. Legal, Dependent Spouse until
remarriage AND b. Dependent Children
2. SECONDARY
a. Dependent Parents AND b. Legitimate descendants subject to restrictions on de
pendent children, legitimate descendants
3. OTHERS
BENEFITS
As to DEATH BENEFITS, if no beneficiary qualifies under the Act, benefits shall
be QuickTime a paid to and Legal Heirs in accordance with Law TIFF (Uncompressed)
decompressor d to Succession see this picture. are neede of 1. Monthly Pension
2. Dependents Pension 3. Retirement 4. Death 5. Permanent Disability 6. Funeral
7. Sickness 8. Maternity (ONLY 1ST FOUR DELIVERIES OR MISCARRIAGES)
1. ALL MEMBERS a. Life Insurance b. Retirement c. Disability d. Survivorship e.
Separation f. Unemployment 2. JUDICIARY
9. Loan Grant COVERAGE 1. COMPULSORY

A. Life Insurance ONLY ALL TAX EXEMPT COMPULSORY for all employees receiving com
pensation who have not reached compulsory retirement age, irrespective of employ
ment status
a. All employees not over sixty (60) years of age and their employers; compulsor
y coverage of the employer shall take effect on the first day of his operation a
nd that of the employee on the day of his employment b. Self-employed persons as
may be determined by the Commission under such rules and regulations as it may
prescribe, including, but limited to: all self-employed professionals; partners
and single-proprietors of business; actors and actresses, directors, scriptwrite
rs and news correspondents not employees; professional athletes, coaches, traine
rs and jockeys, and individual farmers and fishermen; upon their registration wi
th the SSS c. Domestic helpers sixty years of age and below with a monthly incom
e of not less than P1,000 on the date of their employment d. Individual farmers
and fishermen under SSS rules and regulations a. Filipinos recruited by foreignbased employers for employment abroad b. Employee separated from employment to m
aintain his right to full benefits c. Self-employed who realizes no income for a
certain month d. Spouses who devote full time to managing household and family
affairs unless specifically mandatorily covered
2. VOLUNTARY
*By Arrangement: Any foreign government, international organization or wholly ow
ned instrumentality employing workers in the Philippines or employing Filipinos
outside the Philippines may enter agreement with Philippines for inclusion of su
ch employees in SSS EXCEPT those already covered by their respective civil servi
ce retirement system. Q uickTime and a TIFF (Uncompressed) decompressor to see th
is picture. EXCEPTIONS are needed1. Employment purely casual and not FROM for pu
rpose occupation, or business COVERAGE employer 2. Service performed on or in co
nnection with alien vessel, if employed when such vessel is outside of Philippin
es 3. Employees of Philippine government or instrumentality or agency thereof 4.
Service performed in the employ of a foreign government, or international
1. Members of the AFP 2. Members of the PNP 3. Contractual employees, who have n
o employer-employee relationship with the agency to serve 4. Members of judiciar
y and constitutional commissions: covered by life insurance only
COMPENSATION
BASIS OF CLAIM
organizations, or wholly owned instrumentality employing workers in the Philippi
nes or employing Filipinos outside of the Philippines 5. Services performed by t
emporary employees and other employees excluded by SSS regulation; employees of
bona fide independent contractors shall not be deemed employees of the employer
engaging the services of an independent contractor All actual renumeration for e
mployment, including the mandated cost-of-living allowance, as well as the cash
value of any renumeration paid in any medium other than cash except that part of
the renumeration in excess of the maximum salary credit Non-work connected disa
bility, sickness, maternity, death and old age and other contingencies resulting
in loss of income or financial burden (sec. 2)
The basic pay or salary received by an employee, pursuant to his election/appoin
tment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any
other emoluments received in addition to the basic pay Work-connected exempt fr
om liability where permanent disability due to his grave misconduct, habitual in
toxication, or willful intention to kill himself or another (sec. 1517) A member
separated from the service shall continue to be a member, and shall be entitled
to whatever benefits he has qualified to in the event of any contingency compen
sable under this Act
EFFECTS OF SEPARATION FROM EMPLOYMENT
1. Employers contribution on his account ceases 2. Employees obligation to contrib
ute also ceases at the end of the month of separation 3. Employee shall be credi
ted with all contributions paid on his behalf and entitled to benefits according
to the provisions of this Act REPORTING Employer: A. Employer: Report immediate
ly to SSS the names, Report to GSIS the names, employment REQUIREMENTS ages, civ
il status, occupations, salaries status, positions, salaries of the employee and
such other matter as determined by the and dependents of all his covered GSIS e
mployees B. Self-employed: Report to SSS within 30 days from the first day of hi
s operation, his name, age, civil status, occupation, average monthly net income
and his dependents FUNDING 1. Employers contributions 2. Employees/members contrib
utions EXEMPTION Property, assets, and revenues of SSS and GSIS are all exempt f
rom taxes, and all QuickTime and a FROM TAX/LEGAL benefits paid by SSS or GSIS sh
all likewise be exempt from taxes, assessments, fees, TIFF (Uncompressed) decomp
ressor d to see this picture. PROCESS/LIEN are needecharges, and duties of all k
ind DISPUTE Dispute arising from: Any dispute arising under this Act and other 1
. Coverage SETTLEMENT laws administered by GSIS 2. Benefits 3. Contributions Jur
isdiction: GSIS 4. Penalties 5. Any matters related thereto When decision made:
30 days from receipt of the hearing officers findings and Jurisdiction: Social Se
curity Commission recommendations or 30 days after submission for decision
When decision made: Mandatory period of 20 days from submission of evidence Appe
al: CA questions of law and facts SC questions of law only 10 years from accrual
of right of action
Appeal: CA Rule 43, Section 31 SC Rule 45
PRESCRIPTIVE PERIOD
4 years from date of contingency

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ATENEO CENTRAL BAR OPERATIONS 2007 Labor Law and Social Legislation SUMMER REVIE

LABOR RELATIONS I. RIGHT TO SELF ORGANIZATION.....................................

C, Special Groups of Employees .......................................................

7. Employees of International Organizations D. Acquisition and Retention of Memb

Art. 5. Rules and regulations Department of Labor and Employment (DOLE)

Posting of Bond an employer or indirect employer may require the contractor or s

Registration of Contractors and Subcontractors

NLRC, GR Nos. 97008-09, 23 July 1993

tiative or upon filing of a complaint or report or upon request for investigatio

7. Employees of International Organizations International Catholic Migration Com

nmistakable language each incident which constitutes an unfair labor practice. R

oes not constitute an unfair labor practice

s representative. 2. Proof of majority representation 3. Demand to bargain under

R. Transport Corp v. Laguesma, GR No. 106830, 16 November 1993

lendar days from receipt of the copy by the parties. No MR allowed.

g period is intended to give the Dept. of Labor and Employment an opportunity to

Test to determine regular employment Universal Robina Corporation v. Catapang, G

are needed to see this picture.

Grounds 1. prima facie evidence of abuse of discretion on the part of LA 2. the

dy in case of failure to post bond, remedy is to file a motion to dismiss Motion

Appeal of Voluntary Arbitrators Decision

Any law enforcement agency may be deputized by the DOLE Secretary or

Basic Salary includes all remunerations or earnings paid by an employer to an em

May be demanded by the employee upon the cessation of EER.

ANNEX A: Requirements for Registration

TIFF (Uncompressed) decompressor are needed to see this picture.

Application for registration of a workers association operating in more than one

ANNEX B: Requirements in Case of Merger / Consolidation / Affiliation

ANNEX C: Procedure for Registration of Labor Organization Where to file

Regional Office in case of applications for registration of independent unions.

ANNEX D: Procedure for Cancellation of Registration of Labor Organizations

under Rules III and IV

ANNEX E: Cancellation of Registration of Labor Organizations due to Non-Complian

ANNEX F: Elections under Rule 12 Of The Implementing Rules

Formal requirements, processes and periods of disposition of this disposition is

Service of notice of preliminary conference

ANNEX I: Conduct of Certification Election

ANNEX J: Procedure in Handling Grievances

Raffle is dispensed with if there is only one Medarbiter or Hearing Officer in t

within 10 days from receipt of the complaint or petition

Med-arbiter/ Regional Director Decision

ANNEX L: Jurisdiction Supreme Court

Art. 215. Appointment and qualifications

9. Loan Grant COVERAGE 1. COMPULSORY

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