Beastly Notes LAB REL 1

Article 3, Labor Code: Declaration of Policy

The State shall:
1. Afford Protection of labor Management Prerogatives
Requisites of the exercise of a
2. Promote full employment valid management prerogative

3. Ensure equal work opportunities 1. In good faith (Bona-fide in character)

Regardless of sex, race or creed, and
2. For the advancement of the employers interest;
4. Regulate the relation bet. Worker and employers and

5. Assure workers self-organization, 3. Not to circumvent the rights of the employees.

6. Collective bargaining Capitol Medical Center v. Meriz

The right to close the operation of an establishment or
7. Security of tenure, and undertaking is explicitly recognized under the Labor Code
as one of the authorized causes in terminating
8. Just and Humane conditions of work. employment of workers, the only limitation being that the
closure must not be for the purpose of circumventing the
provisions on termination of employment embodied in
Existence of Er-Ee Relationship; Four Fold Test the Labor Code.
1. Selection and hiring of Ees;
2. Payment of Wages; ART. 283. Closure of establishment and reduction of
3. Power of Dismissal personnel. The employer may also terminate the
4. Control the means and method of work employment of any employee due to the installation of
labor saving devices, redundancy, retrenchment to
Distinguish bet. Rules that fixed METHODOLOGY v. prevent losses or the closing or cessation of
Rules that are MERE GUIDELINES operation of the establishment or undertaking
unless the closing is for the purpose of
Rules as Guidelines NO Control; NO Er-Ee circumventing the provisions of this Title, by serving
Rel. a written notice on the workers and the Ministry of Labor
and Employment at least 1 month before the intended
Rules fixing Method - Control, Existence of Er- date thereof.
Ee
In case of termination due to the installation of labor
saving devices or redundancy, the worker affected shall
be entitled to a separation pay equivalent to at least his 1
month pay or to at least 1 month pay for every year of
Beastly Notes LAB REL 2

service, whichever is higher. In case retrenchment to 2.1 Taking out of chairs in assembly line
prevent losses and in cases of closures or cessation of Royal Plant Owrkers Union v. Coca-cola Bottles Phil
operations of establishment or undertaking not due to
serious business losses or financial reverses, the The Court has held that management is free to
separation pay shall be equivalent to 1 month pay or at regulate, according to its own discretion and
least 1/2 month pay for every year of service, whichever judgment, all aspects of employment, including
is higher. A fraction of at least six (6) months shall be hiring, work assignments, working methods, time,
considered one (1) whole year. place, and manner of work, processes to be
followed, supervision of workers, working
The ultimate test of the validity of closure or cessation of regulations, transfer of employees, work
establishment or undertaking is that it must be bona fide supervision, lay-off of workers, and discipline,
in character. And the burden of proving such falls upon dismissal and recall of workers.
the employer.
The exercise of management prerogative,
however, is not absolute as it must be exercised in
1. Generally: good faith and with due regard to the rights of
labor.
An employer is free to regulate, according to his own
discretion and judgment, all aspects of employment,
including 2.2 Prohibition against elective office
Ymbong v. ABS-CBN
- hiring, work assignments, working methods,
ABS-CBN Head Office in Manila issued Policy on
- time, place and manner of work, tools to be used, Employees Seeking Public Office. The pertinent portions
read:
- processes to be followed, supervision of workers,
working regulations, 1. Any employee who intends to run for any
public office position, must file his/her
- transfer of employees, letter of resignation,

- work supervision, 2. Any employee who intends to join a

political group/party or even with no
- lay-off of workers and the discipline, political affiliation but who intends to
dismissal and recall of work. openly and aggressively campaign for a
candidate or group of candidates must
2. Examples of the exercise of management file a request for leave of absence subject
prerogative to managements approval.
Beastly Notes LAB REL
Because of the 1998 elections and based on his
immediate recollection of the policy Mr. Dante
Luzon, Assistant Station Manager issued a
memorandum stating any employee/talent
who wants to run for any position in the
coming election will have to file a leave of
absence the moment he/she files his/her
certificate of candidacy. And added further
that The services rendered by the concerned
employee/talent to this company will then be
temporarily suspended for the entire
campaign/election period.
So long as a companys 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, this Court will
uphold them.
In the instant case, ABS-CBN validly justified the
implementation of the Policy. It is well within its rights to
ensure that it maintains its objectivity and credibility and
freeing itself from any appearance of impartiality.
2.3 Transfer of employees
Pharmacia and UPJOHN Inc. (Pfizer Phil, Inc) v.
Albayda, Jr.
Labor Law; Management Prerogatives; Transfers;
It is a management prerogative to transfer or assign
employees
from one office or area of operation to another,
provided there is no demotion in rank or diminution of
salary, benefits, and other privileges, and the action is
not motivated by discrimination, made in bad faith, or
effected as a form of punishment or demotion without
sufficient cause.
3
To determine the validity of the transfer of employees,
the employer must show that the transfer
- is not unreasonable, inconvenient, or prejudicial
to the employee;
- nor does it involve a demotion in rank
or a diminution of his salaries, privileges and other
benefits.
Should the employer fail to overcome this burden of
proof, the employees transfer shall be tantamount to
constructive dismissal.
RULES ON TRANSFER:
It is Management Prerogative to transfer an employee
where he can be most useful to the company;
Insubordination if not followed;
Question: May an Ee refuse to comply with
transfer order of
Management by raising this as a
grievance issue?
Answer: NO. The refusal to obey a valid transfer order
constitutes willful disobedience of a lawful order
of an Er.
Ee may object to, negotiate and seek redress
against
Ers for rules & orders that they regard as unjust
and illegal.
However, until & unless these rules/ orders are
declared illegal or improper by competent
authority, the Ees ignore / disobey them at their
peril. (Manila Pavillion v. Henrry Delada)
Beastly Notes LAB REL
JURISPRUDENTIAL GUIDELINES IN THE TRANSFER OF
EMPLOYEES:
1. Transfer is a movement from one position to another
of equivalent rank, level/ salary without break in the
service, or lateral movement from one position to
another of equivalent rank/ salary;
2. The Er has inherent right to transfer/ reassign an Ee
for legitimate business purposes;
3. Transfer becomes unlawful, when its motivated by
discrimination/ bad faith / is affected as a form of
punishment
or is a demotion without sufficient cause;
4. The Er must be able to show that the transfer is not
unreasonable, inconvenient / prejudicial to the Ee.
Prince Transport v. Garcia
Petitioners in this case have committed unfair labor
practice.
Respondents transfer of work assignments to Lubas
was designed by petitioners as a subterfuge to stop
the formers right to organize themselves into a union.
Under Art. 248 (a) and (e) of the Labor Code, an
employer is guilty of unfair labor practice if it
interferes with, restrains or coerces its employees in
the exercise of their right to self-organization or if it
discriminates in regard to wages, hours of work and
other terms and conditions of employment in order to
encourage or discourage membership in any labor
organization. In this case, after respondents' transfer
to Lubas, petitioners left them high and dry insofar as
4
the operations of Lubas was concerned. Petitioners
withheld the necessary financial and logistic support
such as spare parts, and repair and maintenance of
the transferred buses until only two units remained in
running condition. This left respondents virtually
jobless.
2.4 Terms and Conditions upon hiring;
qualification and change
in law
St. Lukes Medical Center Employees Union AFW v.
NLRC
Petitioner Maribel Santos files a complaint against
private respondent illegal dismissal and non-payment
of salaries, allowances and other monetary benefits.
She further contends that her failure to pass the
board licensure exam for exam for X-ray technicians
did not constitute just cause for termination as it
violated her constitutional right to security of tenure.
The appellate court finds this contention untenable,
hence this petition for certiorari.
Issue: Whether or not the petitioner is legally
dismissed pursuant to R.A. 7431?
Held: Yes, the petitioner dismissal is valid due to her
inability to secure a certificate of registration from
Board of Radiologic Technology.
While the right of workers to security of tenure
is guaranteed by the Constitution, its exercise
may be reasonably regulated pursuant to the
police power of the State to safeguard health,
morals, peace, education, order, safety, and the
general welfare of the people.
Beastly Notes LAB REL
Consequently, persons who desire to engage in the
learned professions requiring scientific or technical
knowledge may be required to take an examination as
a prerequisite to engaging in their chosen careers.
The state is justified in prescribing the specific
requirements for x-ray technicians and/or any other
professions connected with the health and safety of
its citizens.
Respondent being engaged in the hospital and health
care business, is a proper subject of the cited law;
thus, having in mind the legal requirements of these
laws, the latter cannot close its eyes and complainant
private interest override public interest.
The law is clear that the Certificate of Registration
cannot be substituted by any other requirement to
allow a person to practice as a Radiologic Technologist
and/or X-ray Technologist Technician.
2.5 Terms and Conditions upon hiring; ban on
spouses in same company:
Star Paper v. Simbol
ISSUE: Whether the prohibition to marry in the
contract of employment is valid?
HELD: NO. Respondents were hired after they were
found fit for the job, but were asked to resign when
they married a co-employee.
Petitioners failed to show how the marriage of Simbol,
then a Sheeting Machine Operator, to Alma Dayrit,
then an employee of the Repacking Section, could be
detrimental to its business operations.
5
The policy is premised on the mere fear that employees
married to each other will be less efficient.
The failure of petitioners to prove a legitimate business
concern in imposing the questioned policy cannot
prejudice the employees right to be free from arbitrary
discrimination based upon stereotypes of married
persons working together in one company.
Duncan v. Glaxo
ISSUE: Whether the policy of a
pharmaceutical company
prohibiting its employees from marrying
employees of any competitor company is valid.
YES
RULING:
On Equal Protection
Glaxo has a right to guard its trade secrets,
manufacturing formulas, marketing strategies, and other
confidential programs and information from competitors.
The prohibition against pesonal or marital relationships
with employees of competitor companies upon Glaxo's
employees is reasonable under the circumstances
because relationships of that nature might compromise
the interests of the company. That Glaxo possesses the
right to protect its economic interest cannot be denied.
It is the settled principle that the commands of the equal
protection clause are addressed only to the state or those
acting under color of its authority.
Beastly Notes LAB REL
The company actually enforced the policy after repeated
requests to the employee to comply with the policy.
Indeed the application of the policy was made in an
impartial and even-handed manner, with due regard for
the lot of the employee.
On Constructive Dismissal
Constructive dismissal is defined as a quitting, an
involuntary resignation resorted to when continued
employment becomes impossible, unreasonable or
unlikely; when there is demotion in rank, or diminution in
pay; or when a clear discrimination, insensibility, or
disdain by an employer becomes unbearable to the
employee. None of these conditions are present in the
instant case.
HELD:
The challenged policy has been implemented by Glaxo
impartially and disinterestedly for a long period of time.
In the case at bar, the record shows that Glaxo gave
Tecson several chances to eliminate the conflict of
interest brought about by his relationship with Betsy, but
he never availed of any of them.
Classification of Employees
Art. 295. Regular and casual employment.
The provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of
the parties,
an employment shall be deemed to be regular
6
- where the employee has been engaged to perform
activities
which are usually necessary or desirable
in the usual business or trade of the employer,
- except where the employment has been fixed
for a specific project
or undertaking the completion or
termination of which has been determined
at the time of the engagement of the
employee
or where the work or service to be
performed is seasonal in nature and the
employment is for the duration of the
season.
An employment shall be deemed to be casual if it is not
covered by the preceding paragraph:
Provided, That any employee who has rendered at
least
1 year of service, whether such service is
continuous or broken, shall be considered a regular
employee with respect to the activity in which he
is employed and his employment shall continue
while such activity exists.
Art. 28. Probationary employment. Probationary
employment shall not exceed six (6) months from the
date the employee started working, unless it is covered
by an apprenticeship agreement stipulating a longer
period. The services of an employee who has been
engaged on a probationary basis may be terminated for a
just cause or when he fails to qualify as a regular
 Beastly Notes LAB REL 7

employee in accordance with reasonable standards made member of his family or his duly authorized
known by the employer to the employee at the time of representatives; and
his engagement. An employee who is allowed to work
after a probationary period shall be considered a regular Other causes analogous to the foregoing.
employee.

Art. 282. Termination by employer. An employer may

terminate an employment for any of the following causes:
1 Serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or
representative in connection with his work;
2
3 Gross and habitual neglect by the employee of his duties;
4
5 Fraud or willful breach by the employee of the trust
reposed in him by his employer or duly authorized
representative;
6
7 Commission of a crime or offense by the employee
against the person of his employer or any immediate