Professional Documents
Culture Documents
LABOR II
DANTE CADIZ
LABOR RELATIONS
I. STATE POLICY
- It is the policy of the State:
1. To promote and emphasize the primary of free collective
bargaining and negotiations, including voluntary arbitration,
mediation and conciliation, as modes of settling labor/industrial
disputes;
o Voluntary arbiter = determined by the parties
Compulsory arbitration = LA
2. To promote free trade unionism as an instrument for the
enhancement of democracy and the promotion of social justice and
development;
3. To foster the free and voluntary organization of a strong and
united labor movement;
o Ees must be allowed to form and organize unions
o ULP = may be committed by the er or labor union
Admin and crim case
4. To promote the enlightenment of workers concerning their rights
and obligations as union members and as employees;
o Obligation of union to conduct seminars
5. To provide an adequate administrative machinery for the
expeditious settlement of labor or industrial disputes;
o Mandatory provisions in CBA concerning grievance
machinery and procedures
CBA must define what constitutes a grievance
Grievance procedure in the CBA must be strictly
observed and LA has no jurisdiction over the case
6. To ensure a stable but dynamic and just industrial peace; and
7. To ensure the participation of workers in decision and policy-
making processes affecting their rights, duties and welfare.
- To encourage truly democratic method of regulating the relations between
the ers and ees by means of agreements freely entered into through
collective bargaining:
GR: NO court or admin agency/official shall have the power to set/fix
1. Wages;
2. Rates of pay;
3. Hours of work; or
4. Other terms and conditions of employment
E: As provided by this Code
o E.g.
1. Industry is indispensable to national interest = DOLE Sec or
NLRC may set terms and conditions of employment
2. Wage orders issued by the RTWRB
- Management prerogatives = valid as long as GF and NOT for
circumventing or defeating the rights of ees (PAL v. NLRC)
1. Business operations per se
2. Those that affect the rights of ees = must at least be properly
informed; principle of shared responsibility (labor-mngt
cooperation)
II. DEFINITIONS
- Commission = NLRC or any of its divisions
- Bureau
1. Bureau of Labor Relations; AND/OR
2. Labor Relations Divisions in the regional offices in DOLE
- Board = National Conciliation and Mediation Board
- Council = Tripartite Voluntary Arbitration Advisory Council
- *Er = any person acting in the interest of an er (directly/indirectly)
o NOT include any labor org or any of its officers/agents except when
acting as er
o HR Mngr = may be considered as an er
o Art. 219 (e) by itseld does NOT make a corporate officer personally
liable for corporate debts (Carag v. NLRC)
Basis is still Sec. 31, CC = willfully and knowingly votes for
or assents to patently unlawful acts
- *Ee = any person in the employ of an er
o NOT limited to the ees of a particular er UNLESS the Code
explicitly states
o *Include any indl whose work has ceased as a result of or in
connection with any current labor dispute or because of any unfair
labor practice IF he had not obtained any other SUBSTANTIALLY
equivalent and regular employment
- *Labor org = any union/association of ees which exists in whole or in part
for the purpose of:
a. Collective bargaining; or
b. Dealing with ers concerning terms and conditions of employment
o *Legitimate labor org = any labor org duly registered with DOLE
and includes any branch or local thereof
Two ways to acquire legitimacy: (San Miguel Foods v.
Laguesma)
a. Upon issuance of a Certificate of Registration by BLR
(registered)
b. Local or chapter of a labor federation/national union
(unregistered union) only upon submission of the ff to
the BLR:
1. Charter cert. issued by the federation/natl
union
2. All of the following certified under oath by
the secretary/treasurer and attested by the
pres of the local/chapter:
1. Constitution
2. By-Laws
3. Statement on set of officers
4. Books of accounts
*Bargaining representative = legitimate labor org WoN
employed by the er
o *Company union = any labor org whose formation, function or
administration has been assisted by any act defined as unfair labor
practice
- Unfair labor practice = any unfair labor practice as expressly defined by
the Code
- *Labor dispute = any controversy/matter concerning
a. Terms and conditions of employment; or
b. Association/representation of persons in
1. Negotiating;
2. Fixing;
3. Maintaining;
4. Changing; or
5. Arranging the terms and conditions of employment
Regardless of whether the disputants stand in the proximate relation of
er and ee
- *Managerial ee = vested with the powers or prerogatives to lay down and
execute management policies and/or to
1. Hire;
2. Transfer;
3. Suspend;
4. Lay-off;
5. Recall;
6. Discharge;
7. Assign; or
8. Discipline employees
o CANNOT organize a union nor join rank-and-file unions
- *Supervisory ees = those who, in the interest of the er, effectively
recommend such managerial actions if the exercise of such authority is
not merely routinary or clerical in nature but requires the use of
independent judgment
o Can organize own union but cannot join rank-and-file unions
- *Rank-and-file = NOT a managerial nor supervisory; may organize own
union
- Voluntary Arbitrator = any person
a. Accredited by the Board as such;
b. Named or designated in the CBA by the parties to act as such;
c. Chosen with/out the assistance of the NCMB, pursuant to a
selection procedure agreed upon in the CBA; or
d. Any official that may be authorized by the DOLE Sec. to act as such
upon written request and agreement of the parties to a labor
dispute
- *Strike = any temporary stoppage of work by the concerted action of ees
as a result of labor/industrial dispute
o Comprise not only concerted work stoppages, but also slowdowns,
mass leaves, sitdowns, attempts to damage, destroy or sabotage
plant equipment and facilities, and other activities (Solidbank v.
Gamier)
In this case, the Court held the boycott and mass
demonstrations in front of the DOLE Secs office to be a
strike since there is a labor dispute. It is NOT an exercise of
freedom of expression because unlike the case of Philippine
Blooming Mills Employees Organization, there was NO on-
going labor dispute, which was the subject of the strike.
o Procedural requirement must be complied with = otherwise, shall
be considered to be illegal
- *Lockout = any temporary refusal of an er to furnish work as a result of
labor/industrial dispute
- *Inter/intra-union dispute = all disputes/grievances arising from any
violation/disagreement over any provision of the constitution and by laws
NLRC
A. CREATION AND COMPOSITION
- Attached to the DOLE solely for program and policy coordination only
- Composed of a Chairman and 23 members
o 8 members = chosen only among nominees of workers and
employers orgs, respectively
Upon assumption into office = divest themselves of any
affiliation or interest in the association to which they belong
o Chairman and the remaining 7 members = public sector; the 7
preferably from among the incumbent Las
Chairman = Presiding Commissioner of the 1st division
7 other members = Presiding of the 2nd, 3rd etc.
Chairman = admin supervision over NLRC and its regional
branches and all its personnel, including the LAs; aided by
the Executive Clerk of the NLRC
Effective absence/incapacity = 2nd division Presiding
Comm shall be the Acting Chair
- May sit en banc or in 8 divisions [each composed of 3 members]
a. En banc = only for purposes of
1. Promulgating rules and regulations governing the hearing
and disposition of cases before any of its divisions and
regional branches; and
2. Formulating policies affecting its admin and operations
B. JURISDICTION
- LA = original and exclusive jurisdiction over the following cases involving
all workers, whether agri or non-agri:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that
workers may file involving wages, rates of pay, hours of work and
other terms and conditions of employment;
4. Claims for actual, moral exemplary and other forms of damages
arising from EER
o Includes the claim of an er from a former ee, where the
basis for the claim arises from/necessarily connected with
the fact of termination = counterclaim in the illegal
dismissal case NOT a separate action for damages
o Compare claim for damages of an er against a former ee
Basis is the alleged modus operandi of ee in using
the business, property and supplies of er in using
the company for the employees own profit =
jurisdiction with LA
Basis is the violation of a non-complete clause in an
employment K (BoK) = regular courts
5. Cases arising from any violation of Art. 264 (now 278) of this
Code, including questions involving the legality of strokes and
lockouts; and
6. Claims arising from EER
o Involving an amt exceeding P5k
o Including those of persons in domestic/household service
o Regardless of whether accompanied with a claim for
reinstatement
o EXCEPT claims for:
1. Employees Compensation
2. Social Security
3. Medicare
4. Maternity benefit
7. Money claims involving OFWs
a. Arising out of EER; or
b. By virtue of any law or contract
Despite absence of EER
Perfection of employment contract = agreement as to
object, cause, and terms and conditions; gives rise to
rights and obligations, breach of which is a COA
Commencement of EER = actual deployment from pt.
of hire
o Including claims for damages and employment termination
8. Wage distortion disputes in unorganized establishments NOT
voluntarily settled by parties
9. Enforcement of compromise agreement when there is non-
compliance by any of the parties
10. Other cases provided by law
o Hear and decide within 30 calendar days after the submission of
the case by the parties for decision without extension, even
without the stenographic notes
C. POWERS
1. Rule-making power = involves the promulgation of rules and
regulations concerning:
a. Disposition of cases
b. Internal functions
c. Matters which may be necessary to carry out the purpose of the LC
2. Power to issue compulsory processes = involves the ff:
a. Administering oaths
b. Summoning parties
c. Issuance of subpoenas
3. Power to investigate = involves the power to investigate matters and
hear disputes within its jurisdiction/adjudicatory power including:
a. Original jurisdiction
b. Appellate jurisdiction
4. Contempt power
a. Direct
b. Indirect
Two ways to initiate proceeding:
1. Motu proprio by the Court
2. Verified petition and upon compliance with the
requirements for initiatory pleadings
o Dismissal of a contempt charge = NOT appealable
Similar to an acquittal in a criminal case
Subject to the double jeopardy rule
E: May be reversed by the SC based on GAD
5. Ocular inspection =Chairman, any Commissioner, LA or their duly
authorized rep may at any time during working hours to conduct an
ocular inspection on any premises including any object therein, and
ask any employee/person for any info/data concerning any matter or
question relative to the object of the investigation
6. Power to issue injunctions and restraining orders
o TRO = 20 days life; hearing but without the other party
o Injunction = hearing is needed
Illegal strikes: (SMC v. NLRC)
1. Non-strikeable matter
Strikeable matter = deadlock on CBA, ULP
2. Lack of a valid notice with NCMB
Notice of strike filed with NCMB may be
converted into a preventive mediation =
conversion has the effect of dismissing the
notices of strike
3. In violation of a CBA provision prohibiting strikes
Prohibited acts = injunction is proper
- The rule that BOTH the party and his counsel be served separate copies of
the order, decision or resolution does NOT apply for the purpose of
computing the period for filing an appeal from NLRC to the CA.
o For appeal from NLRC to CA, the period shall be counted from the
receipt of the decision, order or award by the counsel of record
pursuant to the established rule that notice to the counsel is notice
to the party.
- Technical rules = NOT binding; spirit and intention of the Code is binding
Use every and all reasonable means to ascertain the facts; speedily
and objectively; in the interest of due process
D. APPEAL
- Grounds:
1. Prima facie evidence of abuse of discretion on the part of the LA
2. Decision, award or order = procured through fraud or coercion,
including graft and corruption
3. Made purely on questions of law
4. Serious errors in the findings of fact, if not corrected, would cause
grave/irreparable damage/injury to petitioner
- Reglementary pd = W10CDR
o NO motion to extend/postpone pd
- Memorandum of appeal + bond + appeal fee
- Memorandum of appeal = state the grounds, arguments, relief prayed for
- Appeal bond = necessary to perfect appeal of judgments involving
monetary award
o Equivalent to the monetary award exclusive of damages and attys
fees
o Late posting = allowed based on substantial merits of the case
(e.g. no EER)
Cadiz: NO appeal bond necessary since no EER (Semblante
v CA)
o 90% = substantial compliance
o Once the memo of appeal is filed, pays the required appeal fee and
in some cases, posts an appeal bond/submits a surety bond issued
by a reputable bonding company = appeal is perfected
Requirements for perfecting appeals are given liberal
interpretation and construction
Soliman Security v CA: Respondents posits that the
appeal to NLRC should be considered to have been
made when the petitioner submitted, pursuant to the
NLRC Order, a statement under oath to the effect until
the final termination of the case (which was beyond
the reglementary pd). SC said that the records show
that an appeal bond was posted at the same time that
the appeal memo was filed (which was within the pd).
In fact, NLRC ordered petitioner to submit an affidavit
to confirm that its appeal bond was genuine and
would be in force and effect until the final disposition
of the case.
E. BLR
- BLR = concurrent jurisdiction with DOLE Regional Offices (labor divisions)
in intra- and inter- union disputes [between or inside the union]
o E.g. Principal relief sought is nullification of resolution made by the
union which caused the reduction of salaries of the union members
= BLR; EER is merely incidental; it is NOT a money claim for
underpayment of wages
o Decide W15WD subject to extension agreed upon by the parties
o Decentralized intra-union dispute settlement = filed in the regional
office where the union is domiciled
Domicile = place where union
a. Seeks to operate
b. Established a geographical presence
- Compromise agreement = voluntarily agreed with the assistance of the
BLR or DOLE Regional Offices shall be final and binding upon the parties
o GR: NLRC or any court = NOT assume jurisdiction over the issues
involved
E:
1. Non-compliance
2. Prima facie evidence that the settlement was obtained
through fraud, misrepresentation or coercion
o GR: Quitclaims are frowned upon by the courts
E: If er has proved the ff
1. Voluntary
2. No fraud/deceit on part of any parties
3. Consideration = credible and reasonable
4. Contract = NOT contrary to law, public order, public policy,
morals or good customs, or prejudicial to a third person with
a right recognized by law
o Amount of the consideration of the waiver must NOT be as of a
grossly different amount from the judgment award (e.g. P57k as
compared to P577k)
LABOR ORGANIZATIONS
I. RIGHT TO SELF-ORGANIZATION
- EER = impt in Labor Relations; to join a bargaining unit, one must be an
ee
- When can an ee join a union?
o Already qualified for union membership starting on the first day of
service (Art. 291)
o Azucena: depends on the CBL without prejudice to Art. 291
- Two purposes of a labor organization
1. Collective bargaining = right acquired after registration with DOLE
and after being recognized/certified by DOLE as the exclusive
bargaining representative of the ees
2. Dealing with the er = generic description of the interaction
between er and ees even if the ees group is not registered with
DOLE
o A labor org does NOT always have to be a labor union
- Classification of Labor Organizations
a. National Level
1. National Union/Federation = any labor org with at least 10
locals/chapters or affiliates each of each must be a duly
certifies or recognized collective bargaining agent
o Private establishment organized for:
a. Collective bargaining
b. Dealing with ers
c. Participating in the formulation of social and
employment policies, standards and programs
2. Industry Union = any group of legit labor org operating
within an identified industry
o Organized for:
a. Collective bargaining
b. Dealing with ers
c. Participating in the formulation of social and
employment policies, standards and programs
o May also apply for registration as national
union/federation
3. Trade Union Center = group of national unions/federations
o Organized for:
a. Mutual aid and protection of its members
b. Collective bargaining
c. Participating in the formulation of social and
employment policies, standards and programs
b. Enterprise Level
1. Independent = created by independent registration
o Legal personality NOT derived from federation/union
2. Chapter/local/chaptered local = created through chartering
o Legal personality is derived from federation/national
union
- Bargaining Unit = group of ees of a given er comprised of all or less than
all of the entire body of all ees which is the collective interest of all ees
o Ees must have substantial, mutual interest in the subjects of
collective bargaining
E.g. ees of SMC Magnolia Poultry Division Plants in Otis,
Cabuyao and Sn. Fdo. = have community/mutuality of
II. COVERAGE
- The ff have the right to self-organization and to form, join or assist labor
organizations of their own choosing for purposes of collective bargaining:
ALL persons employed in
1. Commercial
2. Industrial
3. Agricultural enterprises
4. Religious
5. Charitable
6. Medical
7. Educational institutions
Whether operating for profit or not
- The ff may form labor orgs for the purpose of enhancing and defending
their interests and for their mutual aid and protection:
1. Ambulant
2. Intermittent
3. Itinerant workers
4. Self-employed people
5. Rural workers
6. Those without any definite employers
- Right of Employees in the Public Service
o Employees of government corporations established under the
Corporation Code = right to organize and to bargain collectively
with their respective employers
o All other employees in the civil service = right to form associations
for purposes not contrary to law
o Right to organize but NO right to strike
o Precluded from bargaining as to terms and conditions of
employment as these are set by law
- Managerial employees = NOT eligible to join, assist or form any labor
organization
o Mngr = one who has the powers/prerogatives to lay down and
execute and/or to
1. Transfer
2. Hire
3. Suspend
4. Lay off
5. Recall
6. Discharge
7. Assign
8. Dismiss ees
performed a function the latter could not himself perform. She did so
pursuant to her power of supervision and control over the BLR.
D. Right to Information
- Duty of any labor organization and its officers = inform its members on
1. CBL
2. CBA
3. Prevailing labor relations system
4. All their rights and obligations under existing labor laws
o For this purpose, registered labor organizations may assess reasonable
dues to finance labor relations seminars and other labor education
activities.
Violation
- ANY violation = whichever is appropriate
a. Ground for cancellation of union registration
b. Expulsion of an officer from office
- At least 30% of ALL the members OR any member/s specifically concerned
may report such violation to the Bureau
o 30% not complied = discretion of BLR whether to proceed with the
case or not
- The Bureau shall have the power to hear and decide any reported violation
and to mete appropriate penalty.
- Criminal and civil liabilities arising from violations of above rights and
conditions of membership shall continue to be under the jurisdiction of
ordinary courts
ULP
- Totality of Conduct doctrine = the culpability of an employer's remarks
were to be evaluated not only on the basis of their implicit implications,
but were to be appraised against the background of and in conjunction
with collateral circumstances
o Digital Telecom PH, Inc. v Digitel Ees Union = At the height of the
labor dispute, occasioned by Digitels reluctance to negotiate with
the union, I-tech was formed to provide the same services
performed by Digiserv, the union members nominal er.
- Gross violation of CBA = flagrant and/or malicious refusal to comply with
ECONOMIC provisions of CBA
o BPI Ees Union-Davao City-FUBU v. BPI: Union alleges that the
outsourcing of ultimately resulted to the reduction of the members
of the bargaining unit and thus interfered with their right to self-
org because the power of the union primarily depends on its
strength in number.
SC: NO! Contracting out is not illegal per se. It is an exercise
of business judgment or mngt prerogative. Absent proof that
the mngt acted in a malicious or arbitrary manner, the Court
will not interfere with the exercise of judgment by an er.
The bank has exclusive rights and prerogatives,
likewise provided in the CBA, which included the hiring
of ees, promotion, transfers and dismissals for a cause.
The ees were neither transferred nor dismissed from
service. The union failed to prove BF/ill will/anti-
unionism on the transfer of former FEBTC ees.
- Company-dominated union
o Davao Free Workers Front v CIR: Several union members were
called by Sanchez; convincing them to vote for the right man
(Divino) as he was the choice of the company. One who did not
vote for Divino was called a traitor and was illegally dismissed.
After the election, Sanchez sent a letter to complainant union
reiterated the company's previous position regarding CBA
proposals. It stated further "that you can make your choice of
accepting or refusing the draft that we submitted to you. If we
cannot agree among ourselves and observe industrial peace,
then we have to shut up Davao Plant, if necessary. After week of
election, which Divino won, Divino started another union who was
recognized by the er.
- In absence of a showing that the ID was dictated by anti-union motives,
the same does not constitute an ULP as would be a valid ground for strike.
- Discrimination against testifying ee
o Itogon-Suyoc Mines, Inc. v Baldo, et al.: Baldo was suspended
from work for having testified in favor of the union. His supervisor
promised him reinstatement should he resist from testifying.
- Union ULP
o Salunga v CIR: Closed shop provision in the CBA. Salunga resigned
from union membership but withdrew his resignation upon learning
that such also results to resignation from work. But the union
insisted to the er that he be removed from services.
Er not guilty of ULP since company was reluctant if not
unwilling to discharge Salunga.
CBA
- Contract Bar Rule = registered CBA (with DOLE)
GR: NO Petition for
1. CE
2. Intervention
3. Disaffiliation
E: Within the freedom pd
Deviation from the contract bar rule = justified ONLY where the need for
industrial stability is clearly shown to be imperative (Port Workers Union v
Undersecretary)
- Deadlock = synonymous with word of impasse [presupposes reasonable
effort at GF bargaining which, despite noble intentions, does NOT conclude
in agreement between the parties]
o No reasonable effort at GF bargaining = NO deadlock
- Renewal
a. Economic provisions = automatic renewal clause (Art. 264, last
para.)
b. Representation issue = Er may recognize the incumbent
bargaining agent after the expiration of 5 yrs. ONLY when no
petition for CE is filed
If CBA has a life more than 5 yrs (either as an original
provision/amendment), expiry date is based on the original
pd.
Bargaining unions exclusive bargaining status =
effective only for 5 yrs and can be challenged within 60
days prior to the expiration of the CBA
Existing CBA = NOT a bar to filing a petition for CE
- Retroactivity (Manila Central Line Corp v Manila Central Line Free Workers
Union-National Federation of Labor)
a. As result of mutual agreement = day following the expiration date
b. Arbitral award = expiration date of CBA
- Unions draft proposals as CBA (Kiok Loy v NLRC)
1. Union = duly certified CB agent
2. Made definite request to bargain and submitted its proposals
3. Er made no counterproposal whatsoever
- Agency fees = may NOT be collected from nonmembers (National Brewery
& Allied Industries v SMC)
o NOT unjust enrichment = benefits are extended precisely to avoid
discrimination
o When the union bids to be the bargaining agent, it voluntarily
assumes the responsibility of representing all the ees in the BU.
o On the basis of QD = benefits can hardly be termed unjust
enrichment because the benefits extended to them precisely to
avoid discrimination among the ees; benefits are merely incidental
o On the basis of principle of agency = it may be stated that when a
union acts as the bargaining agent, it assumes the responsibility
imposed upon it by law to represent not only its members but all
employees in the appropriate bargaining unit of which it is the
agent. The Civil Code states that agency is presumed to be for
compensation unless there is proof to the contrary. There can be
no better proof that the agency created by law between the
bargaining representative and the employees in the unit is without
compensation than the fact that these employees in the minority
voted against the appellant union.
- CBA language clear and unequivocal and leave no doubt upon the
intention of the contracting parties = the literal meaning of its stipulation
shall prevail.
- CBA must be construed liberally rather than narrowly and technically. The
court must place a practical and realistic construction upon it.
o Practical and realistic construction upon the CBA; giving due
consideration to the context and purpose
- Stipulations in a contract must be read together, not in isolation from one
another.
- Court cannot declare a CBA invalid notwithstanding that the same was not
ratified in view of the fact that the ees had enjoyed benefits under it, for
it is iniquitous to receive benefits from a CBA and later on disclaim its
validity.
- Signing bonus = grant motivated by the goodwill generated when a CBA is
a successfully negotiated by the parties
- Bonus = act of gratuity or act of liberality of the giver
GR: NOT a demandable and enforceable obligation
E: Promised by the er and expressly agreed upon by the parties
o Lepanto Ceramics v Lepanto Ceramics Ees: Given that the CBA in
this case is integrated in the CBA, the same partakes the nature of
a demandable obligation.
The Court is fully aware that implementation to the letter of
the subject CBA provision may further deplete the resources
of Lepanto. However, Lepantos remedy does not lie in the
Courts invalidation of the provision but in the parties
clarification of the same in the subsequent CBA negotiations.
Either party can serve a written notice to modify the
agreement at least 60 days prior to its expiration date.
- Union security clause = in terminating the employment of an ee by
enforcing the union security clause, the er needs only to determine and
prove that:
1. Union security clause is applicable
2. Union is requesting the for the enforcement of the union security
provision
3. There is sufficient evidence to support the decision of the union to
expel the ee from the union
o Due process = upon receipt of the request, er should NOT
immediately terminate
- Mngt prerogatives limited by
1. Law
2. CBA
3. Equity (fair play)
- Insular Hotel Ees Union v Waterfront Insular Hotel Davao: Individual
reconfirmation of employment amounted to an implied ratification of CBA
o Only a certified or duly recognized bargaining agent may file a
notice/request for preventive mediation. Individual members
cannot file. Hence, NCMB has no j to entertain the notice.
o If individual members of the union have no authority to file the
case, may the federation to which the local union is affiliated have
the standing to do so? NO. Mere affiliation does not divest the local
union off its own personality; neither does it give the mother
federation the license to act independently of the local union. It
only gives rise to the K of agency, where the former acts in
representation of the latter.
o Even assuming arguendo that Article 100 applies to the case at
bar, this Court agrees with respondent that the same does not
REPRESENTATION ISSUE
- Appropriate Bargaining Unit
o Basic test = whether it is fundamentally the combination which will
best assure to ALL ees the exercise of their CB rights
o Exclusion-inclusion proceedings = ALLOWED (Holy Child Catholic v
Santo Tomas)
Mingling between supervisory and r&f ees CANNOT affect
legitimacy of LO
UNLESS such was brought about by:
1. Misrep
2. False statement
3. Fraud
Determination of whether the union comprises
mngr/supervisory ees is a factual issue = best left for
resolution in the exclusion-inclusion proveedings
GRIEVANCE MACHINERY
- Company personnel issues = guiding principles states in broad, long-
range terms that express the philosophy/beliefs of an orgs top authority
regarding personnel matters
- Related Issues
BACKWAGES
a. Economic = NO (A fair days wage for a fair days labor)
b. ULP = courts discretion
i. Discriminatorily dismissed for union activities = ENTITLED from date of
act of discrimination OR day discharged
ii. Ees who struck voluntarily = NOT entitled
E:
1. Ee were illegally locked thus to compel them to strike
2. Er = guilty of grossest form of ULP
3. Er committed discrimination in the rehiring of strikers =
refusing to readmit those against whom there are pending crim
cases while admitting nonstrikers who are also criminally
charged in court
4. Strike was legal and ees offered to work unconditionally but
er refused to reinstate them
ILLEGAL STRIKES
- Various categories:
1. Contrary to a specific prohibition of law
2. Violates a specific requirement of law
3. Declared for an unlawful purpose = such as inducing the er to commit
an ULP against non-union ees
4. Employs unlawful means in the pursuit of its objective
5. Declared in violation of an existing injunction
6. Contrary to an existing agreement
- Termination
a. Union officers = mere participation; including shop stewards
Telefunken Semiconductors Ees Union-FFW v. CA = shop
steward NOT a union officer
May = grants er the option of terminating such union officer
even though no case has been filed on legality/illegality of
strike BUT still observe due process
b. Union members = must be shown that such union member, clearly
identified, performed an illegal act/s during the strike
Substantial evidence = may consists of Sheriffs Report, Photos,
positive identification of a non-striking ee
Mere fact that the criminal complaints against the terminated U
members were subsequently dismisses does NOT extinguish
their liability under the LC
- Financial Assistance = social justice and equity considerations
o Union officers and members due to participation/commission of illegal
acts during strike
TYPES OF EES
REGULAR
- Activities are usually necessary or desirable in the usual trade/business
- Primary standard = reasonable connection between particular activity
performed by the ee in relation to the usual trade/business
- Test = whether usually necessary or desirable
o Repeated and continued need for its performance = sufficient evidence
of necessity, if not indispensability, of the activity
- Nature of work must be viewed from a perspective of the business/trade in its
entirety and not in a confined scope
- Rendered at least 1 yr of service, whether continuous or intermittent, with
respect to the activity he performed and while such activity exists
o Regular stat on the day immediately after the end of his first yr of
service
Magsalin case: proj and seasonal included
Hanjin: casual only
- Examples:
o Er: Manufacture and distillery of wine and liquors
Ee: Maintenance man; not only painter
o Er: Coke
Ee: Sales route helpers
o Er: Baguio country club
Ee: Laborer, dishwasher, and gardener
o Er: Tuna cannery plant
Ee: Receiving, skinning, packing, canning
Main bulk of workforce = so called casual ees
PROJECT
- 2 types of ees in the construction industry:
1. Proj = NOT entitled to termination pay if terminated as a result of
completion of proj/phase they are employed; gaps
2. Non-proj
- Regardless of length of service, still proj ees
o Cocomangas Hotel: Proj ees who served for 3-12 yrs held regular
Cadiz: Conflict with established ruling
- Extension after intended proj is completed = regular ees
- Extension of pd when proj not yet completed
o Cadiz: better to execute a new K
SEASONAL
- More than one season = regular seasonal ee
o Seasonal ee called to work from time to time and temporarily laid off
during off-season = considered on leave until re-employed
o Entitled to termination pay
- Mercado: free to offer services to other ers, different phases, not same work
- Hacienda Fatima: more than one phase; same work (regular)
- Necessary and desirable = no need for more than one season, already
deemed regular
FIXED-TERM
- Qualifications
a. Agreed upon knowingly and voluntarily by the parties, without any
force, duress or improper pressing AND absent any other
circumstances vitiating consent
b. Where it satisfactorily appears that the er and ee dealt with each
other on more or less equal terms with no moral dominance whatever
being exercised by the former over the latter
- Based on the Civil COde (Brent v Zamora); no express or implied recognition
in LC
- Essential:
1. OFW
2. Dean, asst. dean, college secretary, principal and other admin offices
in education institutions
3. Company officials which may be elected for what would amt to fixed
pds
- NOT to circumvent security of tenure
- Employment K = K of adhesion
- 555 scheme: hired every month for the duration of 5 months, after which
their services were terminated and they were replaced by other casual ees
on the same five-month duration
o Pure Foods v NLRC: Regular
o Pangilinan v General Milling Comp.: NOT regular; hired for 5 months
for emergency (one time only)
PROBATIONARY
- Regularization standards
GR: Make known at time of engagement
o Time of engagement (two views)
a. 60x3
b. Lapse = same day
E: Self-descriptive in nature (e.g. maid, driver)
- Adequate performance = implied standard of regularization
o Not in all cases quantifiable; also hinged on the qualitative assessment
of work
o The communication of performance standards should be perceived
within the context of the nature of the duties and responsibilities
- Probationary = purpose of term/pd; not length
- Period
GR: 6 months
E:
1. Agreement
2. Established by company policy
3. Required by the nature of the work = especially when ee must learn a
particular kind of work or when the job requires a certain qualification,
skills, experience or training
- Grounds for termination
1. Just/authorized = notice and hearing
2. Failure to meet standards = sufficient that a written notice is served
within a reasonable time from the effective date of termination
- Termination = must explain details of said failure to qualify and the standards
not met
SECURITY OF TENURE
SUBSTANTIAL DUE PROCESS
- Ee must first establish by substantial evidence the fact of dismissal
- No evidence of dismissal = reinstatement WITHOUT backwages
- Damage to er = aggravates NOT mitigate nor absolve liability
- Retirement from service = does not render the case moot and academic
- Penalty must be proportionate to offense and degree of infraction
- Sale
a. Asset = all or substantially all
o Seller in GF = authorized to dismiss + separation pay
o Buyer in GF = NOT obliged to absorb nor liable for claims
b. Stock sales
o Shareholder level
o Corp = continues to be er and NOT entitled to dismiss UNLESS
just/authorized cause
PAST INFRACTIONS
- Past infractions for which the ee suffered corresponding penalty for each
violation cannot be used as justification for the employees dismissal for what
would penalize him twice for the same offense
- Collective infractions = may be used to support justification for subsequent
similar offense
- No punishment for the numerous absences and tardiness have been imposed
so it can be used collectively as ground for dismissal
JUST CAUSE
WILLFUL DISOBEDIENCE
- Elements:
1. Willful = characterized by wrongful and perverse attitude
2. Order violated:
i. Reasonable
ii. Lawful
iii. Made known to the ee
iv. Pertain to the duties which he had been engaged to discharge
SERIOUS MISCONDUCT
- Elements:
1. Serious
2. Relate to performance of duties
3. With wrongful intent
- Strike-related conduct
- Disgraceful/immoral (Leus v St Scho)
1. Consideration of the totality of the circumstances surrounding the
conduct
2. Assessment of the said circumstances vis--vis the prevailing norms of
conduct (i.e. what the society generally considers moral and
respectable)
- Even outside company premises, as long as work related
- Premarital sexual relations
o Leus v St Scho and Cadiz v Brent School: NOT just cause
o Condition of marriage for reinstatement = violation of LCs prohibition
to require as a condition for employment or continuation of
employment
For marriage to be justified as a bona fide occupational
qualification:
1. Qualification is reasonably related to the essential
operation of the job involved
2. There is a factual basis for believing all or substantially
all persons meeting the qualification would be unable to
properly perform the duties of the job
- Extra-marital affair of teachers = immoral (based on Manual of Regulations
for Private Schools)
- Fight within company premises = physical; not mere verbal tussle
- Cause analogous = voluntary and/or willful act/omission attesting to an
employees moral depravity
o Theft
AUTHORIZED CAUSES
RETRENCHMENT
- Last resort
- Financial statements audited by external auditors = normal method of proof
of profit and loss
- Employment of replacements clearly belied the contention that retrenchment
was necessary to prevent/offset the expected losses effectively
- Income merely decreasing = NOT sufficient to prove losses
REDUNDANCY
- Reqs:
1. GF in abolishing the redundant position
2. Fair and reasonable criteria in ascertaining what positions are to be
declared redundant
Seniority
FASAP v PAL: YES
DLSU and Asian Alcohol case: NO; mngt prerogative
- Independent contractor = employers GF in implementing a redundancy
program is NOT necessarily destroyed by availing of the services of an
independent contractor to replace the services if the terminated ees
o Absent proof that the management acted in a malicious or arbitrary
manner in engaging the services of an independent contractor, the
Court has no basis to interfere with the bona fide decision of
management to effect more economic and efficient methods of
production.
CLOSURE
- Either complete or partial
- Must be a unilateral and voluntary act of the er
DISEASE
- Prejudicial to the health of the ee OR his co-ees
CONSTRUCTIVE DISMISSAL
- Ee was forced to remain without work or assignment for a pd exceeding 6
months
- Ee refused to assume work assignment = NOT CD (Exocet v Serrano)
RIGHT TO COUNSEL
Manuel v N.C. Construction; Lopez v Altarus Group: NO and NO obligation to inform
ee of right to counsel
Punzal v ETSI: YES
KING OF KINGS
1. First written notice = contain the specific causes/grounds for termination
against them, and a directive that the ees are given the opp to submit their
written explanation within a reasonable pd
o Detailed narration of facts and circumstances
o Reasonable opp = every kind of assistance to enable ees to prepare
adequately for their defense
o Reasonable pd = at least 5CD from receipt of notice
2. After serving the first written notice, ers should schedule and conduct a
hearing/conference
o Wherein the ees will be given the opp to:
i. Explain and clarify their defenses to charge against them
ii. Present evidence in support of their defenses
iii. Rebut the evidence presented against them by the mngt
o During the hearing/conference, given chance to defen themselves
personally, with the assistance of a representative/counsel of their
choice
o Opportunity to come to an amicable settlement
3. After determining that termination of employment is justified, serve a written
notice of termination indicating that:
i. All circumstances involving the charge
ii. Grounds have been established to justify termination
B. AUTHORIZED CAUSES
- One month notice to ee and DOLE = unnecessary if worker himself consented
- Twin-notice requirement applies to termination due to disease
C. MISCELLANOUS DOCTRINES
- Four situations
Just/Authorized cause Due process Result
Valid Dismissal
Reinstatement
Reinstatement
Valid BUT pay
nominal damages
- Separation Pay
GR: NONE in JUST CAUSES CASES (Separation pay ONLY warranted when the
cause for termination is NOT attributable to the employees fault)
E: Dismissal
RESIGNATION
- Intent to relinquish must concur with the over act of relinquishment
- Acts of ee before and after the alleged resignation must be considered in
determining whether he in fact intended to terminate his employment
PRESCRIPTION
- It should be noted in this regard that Articles 1139 to 1155 of the Civil Code
provide the general law on prescription of actions. Under Article 1139, actions
prescribe by the mere lapse of time prescribed by law. That law may either be
the Civil Code or special laws as specifically mandated by Article 1148.
- In labor cases, the special law on prescription is Article 291 of the Labor Code
which provides: Article 291. Money Claims. All money claims arising from
employer-employee relations accruing during the effectivity of this Code shall
be filed within three (3) years from the time the cause of action accrued;
otherwise they shall be barred forever.
- The Labor Code has no specific provision on when a monetary claim accrues.
Thus, again the general law on prescription applies. Article 1150 of the Civil
Code provides that Article 1150. The time for prescription for all kinds of
actions, when there is no special provision, which ordains otherwise, shall be
counted from the day they may be brought.
o The day the action may be brought is the day a claim started as a
legal possibility
- princo
- The prescription of actions is interrupted when:
1. Filed with the court
2. Written extrajudicial demand by the creditors, and
3. Any written acknowledgment of the debt by the debtor
- Doctrine of promissory estoppel
1. A promise was reasonably expected to induce action/forbearance
2. Such promise did, in fact, induce such action/forbearance
3. Party suffered detriment as a result
RETIREMENT
- month salary = 22.5 days
1. 15 days salary
2. 1/12 of 13th month salary = 2.5 days
3. 5 days SIL
- Above applies ONLY when there is no CBA/applicable agreement OR such
agreement is below the requirement set by law
- Eligibility for retirement benefits = at time of retirement
- Retirement benefits and separation pay = NOT mutually exclusive and ee
entitled to both PROVIDED not prohibited in the retirement plan/CBA
- Only to unjustly dismissed ee
- Retirement plan must be assented to and accepted by the ees explicitly,
voluntarily and freely
- Retirement benefits = purpose is not to enrich ee byt to held him during non-
productive years; different class of benefits
o Hence, ee may be compelled to return unjustly given retirement
benefits