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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)

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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

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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

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of a union, including any violation of the rights and conditions of union


membership
o jurisdiction of BLR
- *Strike-breaker = any person who obstructs, impedes, or interferes with
by force, violence, coercion, threats or intimidation any peaceful picketing
affecting wages, hours or conditions of work or in the exercise of the right
to self-or or collective bargaining
- *Strike area = establishment, warehouses, depots, plants or offices,
including the sites or premises used as runaway shops, of the er struck
against, as well as the immediate vicinity actually used by picketing
strikers in moving to and fro before all points of entrance to and exit from
said establishment
o Runaway shop = one wherein the er moves its business to another
location or it temporarily closes its business for anti-union purposes
(Complex Electronics Employees Association v NLRC)
Relocation motivated by anti-union disputes rather than
business reasons
- CBA = law between the parties (Samahang Manggagawa v. NLRC)
o Existing laws are deemed incorporated
o Imbued with public interest; not an ordinary agreement
o Not printed in the CBA = Not part of CBA and therefore, cannot be
implemented and complied with; make sure that an agreement is
contained in the CBA for such to be demandable in law (contractual
commitment)
o In this case, union had the right and opportunity to insist on the
fulfillment of the promise by demanding its incorporation in the
CBA = for failure to do so, the promise has remained a mere
promise

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

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b. 8 divisions = adjudicatory and all other powers, functions and


duties of the NLRC
o 1-6th division = NCR and other parts of Luzon
7th and 8th = VisMin
PROVIDED NLRC en banc may, on temporary or emergency
basis, allow cases within the juris of a division to be heard
and decided by any other division whose docket allows the
addtl workload and such transfer will NOT expose litigants
to unnecessary addtl expenses
o Exclusive appellate jurisdiction over cases within their
respective territorial jurisdiction
o Concurrence of 2 Commissioners of a division = necessary
for the pronouncement of a judgment/resolution
When required # of members and concurrence of 2
Commissioners cannot be obtained = Chair shall
designate such number of additional Commissioners
from other divisions as may be necessary
Territorial divisions do not confer exclusive jurisdiction
to each division and are merely designed for admin
efficiency (Malayang Samahan v. Ramos)
o Conclusions of a division = mandatory for a division to meet
for purposes of consultation BEFORE the case is assigned to
a member for the writing of the opinion
Certification to this effect signed by the the Presiding
Commissioner of the division = issued and a copy
attached to the record of the case and served upon
the parties
- In the performance of such similar or equivalent functions and duties as
are discharged by the Clerk of Court and Deputy Clerks of the Court of the
CA
o Commission when sitting en banc = Executive Clerk of the NLRC
o Acting thru its Divisions
1st Division = Executive Clerk of the NLRC
Seven other divisions = Deputy Executive Clerks
- Commission Attorneys = assist the Commission and its Divisions in its
Appellate and adjudicatory functions whose term shall be coterminous
with the Commissioners with whom they are assigned
o Members of the Philippine Bar with at least 1 yr experience or
exposure in the field of labor-mngt relations
o Receive annual salaries and entitled to the same allowances and
benefits as those falling under Salary Grade 26
o As many Commission Atty as may be necessary for the effective
and efficient operations of the NLRX but in NO CASE more than 5
assigned to the Office of the Chairman and each Commissioner
- Headquarters, Branches and Provincial Extension Units
o Commission and its 1st-6th Division = main office in Metro Manila
7th = Cebu
8th = CDO
o Regional branches = as many as there are regional offices of the
DOLE, sub-regional branches or provincial extension units
o LAs = as many as may be necessary for the effective and efficient
operation of the Commission
- Appointment and Qualifications

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o Chairman and Commissioners


1. Members of the Philippine Bar
2. Engaged in the practice of law in the Philippines for at least
15 yrs
3. At least 5 yrs experience/exposure in the field of labor-mngt
relatons
4. Preferably residents of the region where they shall hold
office
o LAs
1. Members of the Philippine Bar
2. Engaged in the practice of law in the Philippines for at least
10 yrs
3. At least 5 yrs experience/exposure in the field of labor-
mngt relatons
o Chairman, Commissioners and LAs
GR: Hold office during good behavior until they reach the age of 65
yrs
E: Cause provided by law or incapacitated to discharge duties of
their office (may be removed)
PROVIDED the RP President may extend the services of the
Commissioners and LAs up to the max age of 70 upon
recommendation of the Commission en banc
o Appointment
Presidential appointment
1. Chairman
2. Division Presiding Commissioners
3. Other Commissioners
Appointment in any vacancy in a specific division shall
come only from the nominees of the sector which
nominated the predecessor.
4. LA = upon recommendation of the Commission en
banc to a specific arbitration branch and shall be
subject to the Civil Service Law, rules and
regulations
Chairman = appoint staff and employees of NLRC and its
regional branches as the needs of the service may require,
subject to the Civil Service Law, rules and regulations, and
upgrade their current salaries, benefits and other
emoluments in accordance with law
- Salaries, Benefits and Other Emoluments = same rank, receive an
annual salary equivalent to, and same allowances, retirement benefits as
those
o Chairman = Presiding Justice of CA
Members of the Commission = Assoc Justices of CA
LA = RTC judge
o Provision of the article = non-diminution of existing salaries,
allowances and retirement benefits

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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

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- Commission = exclusive appellate jurisdiction over all cases decided by


LAs
- LAs shall refer the following to the grievance machinery and voluntary
arbitration as may be provided in the said agreements:
1. Cases arising from the interpretation or implementation of
collective bargaining agreements; and those
2. Cases arising from the interpretation of company personnel
policies
o Voluntary arbitrators/panel of voluntary arbitrators = express
agreement of the parties to refer to voluntary arbitration
Provisions of the CBA must be read in its entirety not in
isolations = the word may in one provision while other
provisions reflect the clear intention of the parties to refer
cases to mandatory voluntary arbitration
E.g. Whether or not there arose an enforceable
contract by the proposal of a ee (in connection with
the innovation program of the er) which was allegedly
used by the er but was formerly rejected as a valid
proposal enough to garner the price of the program
o Violations of CBA (except those gross in character) = shall no
longer be treated as ULP and shall be resolved as grievances under
the CBA
Parties to the CBA = er and union
Hence, a dispute regarding the violation of the CBA to
be within the jurisdiction of the grievance
machinery/voluntary arbitrators, the dispute must be
between the union and er.
E.g. Some union and non-union members filed an ID
case against the union and er due to their termination
based on violation of the union security clause = LA
since it is an actual termination case and not a dispute
between er and union
- Reasonable causal connection rule = If there is a causal connection
between the claim asserted and EER, then within the jurisdiction of labor
courts
o Regular courts
1. EER merely incidental
Even if money claim arose out of EER BUT resolution
does NOT require expertise in labor laws = regular
court
E.g. Suit for damages for loss of earning capacity due
to negligent acts of co-employees although er is
respondent = regular court since primary relief sought
is anchored on the NCC (tort); refers to the negligent
acts of co-ees
E.g. Unpaid car loan of ee with er = regular since
debtor-creditor relationship
E.g. COA = existence of a K distinct from the
employment K
2. Resolution of dispute requires no expertise in labor laws, or
referral to CBA
E.g. nullity of a CBA provision which discriminates
against women = principal relief sought is to be

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resolved by reference to the constitution and the


CEDAW
3. Intra-corporate dispute (RTC)
Corporate officer = those officers given such character
by the CC or the By-Laws (Sec. 25, CC); otherwise, ee
or subordinate officials only
a. CC
1. President
2. Secretary
3. Treasurer
b. By-Laws = must be expressly provided
Office created by the President of the
corporation through an enabling provision in
the By-Laws is NOT enough; amendment of
the By-Laws to expressly state the office
Considered elements:
1. Status/relationship of parties
a. Between corp, partnership, or association
(CPA) and the public
b. CPA and its stockholders, partners,
members or officers
c. CPA and the State so far as its franchise,
permit, or license to operate is concerned
d. Among the stockholders, partners or
associates themselves
2. Nature of ? that is the subject of the controversy
= intrinsically connected with the regulation of
the corporation
Pertain to the enforcement of the parties
correlative rights and obligations under
the CC and the internal and intra-corp
regulatory rules of the corporation
- LA = given full discretion to determine, motu proprio, on whether to
conduct hearings or not
o E: Formal or clarificatory hearings must be had in cases of
termination of employment
When claims are not properly ventilated for lack of proper
determination whether complainant employee was a rank-
and-file or a managerial employee
That the Labor Arbiter cannot rely solely on the parties bare
allegations when the affidavits submitted presented
conflicting factual issues
Considering the dearth of evidence presented by
complainants the Labor Arbiter should have set the case for
hearing

- Requirement of submission of disputes before the Lupong Tagapayapa


prior to filing with court or other government offices does NOT apply to
labor cases
- A matter that relates to the church and its religious does not ipso facto
give the case a religious significance. When what is involved is the
relationship of the church as an er and a minister as an ee, it is purely

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secular with no relation to the practice of faith, worship or doctrines of the


church.
o Provisions of LC = apply to all establishments
- Suspension of ALL ACTIONS for claims against a corporation embraces ALL
PHASES of the suit before an court, tribunal or board
o What are automatically stayed or suspended are the proceedings of
a suit and not just the payment of claims during the execution
stage after the case had become final and executory.
o Once the process of rehabilitation, however, is completed, this
Court will proceed to complete the proceedings on the suspended
actions.
o Actions that are suspended cover all claims against the corporation
whether for damages founded on a breach of contract of carriage,
labor cases, collection suits or any other claims of a pecuniary
nature. No exception in favor of labor claims is mentioned in the
law.
- Provisions of RoC may be applied by analogy
o Notices of hearings = NOT summons
o Appeared to question jurisdiction over person = NOT a waiver
o NO strict application of RoC
Pro-forma complaints used in the RAB
Verification = merely formal NOT jurisdictional
In a position to verify the truthfulness and
correctness of the allegations in the petition
v Counsel
v Department head of a company
- State in its proprietary capacity = may be sued (implied consent)
o Suability = depends on the consent of the state to be sued
Liability = depends on the applicable law and the established facts.
o The circumstance that a state is suable does not necessarily mean
that it is liable; on the other hand, it can never be held liable if it
does not first consent to be sued.
o Liability is not conceded by the mere fact that the state has allowed
itself to be sued. When the state does waive its sovereign
immunity, it is only giving the plaintiff the chance to prove, if it
can, that the defendant is liable.
- Shop steward = position within the union
o Union official elected to represent members in a shop, department
or plant
o Charged with negotiation and adjustment of grievances of ees with
the supervisor of the employer
- Perpetual employment = violates management prerogative
- Denial of MTD
GR: NO appeal
E:
1. Special or compelling circumstances
2. Merits of the case
3. Cause NOT entirely attributable to the fault/negligence of the party
4. Lack of any showing that the review sought is merely frivolous and
dilatory
5. Other party will NOT be unjustly prejudiced

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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

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Parties may be represented by legal counsel


Duty of Chairman/Presiding Commissioner/Commissioner/LA =
exercise complete control of the proceedings at all stages
- Effort towards amicable settlement
- Appearance and Fees
o Non-lawyers may appear before the Commission/LA (See NLRC
Rules)
o No attys fees, negotiation fees or similar charges of any kind
arising from any CBA shall be imposed on any individual member of
the contracting union*
PROVIDED however, atty fees may be charged against
union funds in an amt agreed upon by the parties
Any contrary agreement = NULL and VOID

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.

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Liberal interpretation of the law CANNOT be applied


when the bond posted was not even genuine to begin
with (Navarro v NLRC)
o Motions to Reduce Bond
Motion shall be entertained by the NLRC subject to the
following conditions:
1. Meritorious ground = worth of arguments; rights and
circumstances
E.g. lack of financial capacity to pay in full
2. Reasonable amt of bond is posted = based primarily on
the merits of the motion and the main appeal
Provisional cash/surety bond = 10% of the
monetary award exclusive of damages and attys
fees
Compliance with the foregoing = suspend the running of
the reglementary pd
NLRC = retains its authority and duty to resolve the motion
to reduce bond and determine the final amount o bond that
shall be posted by the appellant, still in accordance with the
standards of meritorious grounds and reasonable amount
Fresh period of 1- days from notice of the NLRC Order on
the event that
a. NLRC denies the motion to reduce the bond
b. Required a bond the exceeds the amt of the provisional
bond
o Check = accepted as a surety bond
GBMLT v Malinao = Malinao argued that the appeal is not
perfected when the bond posted is paid thru a check; that a
check is not a sufficient surety on the ground that a check
takes 3 days to be cleared; and that a check produces effect
of payment only when they have been cashed. SC noted
that there is no question that NLRC accepted the appeal
bond posted and that Malinao also did not questioned the
sufficiency of the bond nor the statement that the bond is
still in effect.
Another issue in the case is the application of Sec
10, R.A. 8042 = salaries for unexpired portion
applies only to those illegally dismissed
- Order of Reinstatement
o Two options of er:
1. Actual reinstatement
2. Merely in the payroll
o LA = immediately executory
NLRC = NOT self-executory; WoE is necessary (Panuncillo v CAP)
If during the pendency of the review, no order is issued by
the courts enjoining the execution of a decision of the
LA/NLRC decision = LA/NLRC must exercise extreme
prudence and observe judicial courtesy when the
circumstances so warrant [doctrine of judicial courtesy]
In such a case, it is as if a temporary restraining order
was issued which merely suspended the
implementation thereof pending the determination of

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the validity of the NLRC resolutions subject of the


petition.
WoE = necessary only for those final and executor decisions NOT
for order of reinstatement of LA (Art. 229 v Art. 230)
o Refusal to reinstate = liable for salaries
Full backwages from time of ID up to actual reinstatement
o Genuino v NLRC: ee who receives wages pending appeal has to
refund/such may be deducted from his entitled benefits upon the
finding, on appeal, that the ground for dismissal is valid
Genuino = stray decision (Garcia v PAL)
Unfair to employees; does not take into consideration
the fact that the ee, pending reinstatement and
appeal, would have to make do and survive with the
amount he receives, only to end up having to refund
all that in case of a final unfavorable decision
Unduly favorable to the mngt = salaries merely serve
as a bond posted in installment; for in the event of
reversal, er gets back the same amt without having
to spend ordinarily for bond premiums. This
circumvents, if not totally contradicts, the proscription
that the posting of a bond shall not stay the execution
for reinstatement.
o Delay in reinstatement pending appeal without fault of er = ee is
barred from collecting accrued wages, provided:
1. Actual delay = order of reinstatement pending appeal was
NOT executed prior to its reversal
2. NOT due to ers unjustified act/omission = e.g. PAL placed
under a Rehabilitation Receiver
- Appeal = elevation by an aggrieved party of any decision or award of a
lower body to a higher body
o By means of a pleading
1. Assignment of errors
2. Arguments
3. Reliefs prayed for
Perfection of an appeal = includes the filing, within the prescribed pd, of
the memo of appeal
o Containing
1. Assignment of errors
2. Arguments
3. Reliefs prayed for
4. Posting of appeal bond (in appropriate cases)
- Appeal fee = NOT fatal to appeal
- Opposition to Appeal = may be considered as an appeal
- Remedies of a third party (whose property is being levied):
1. Third party claim (NLRC)
2. Regular courts = action for recovery of ownership; action for
injunctive relief
- Answer to an appeal = W10CDR
- NLRC = decide appeals W20CDR of the answer of the appellee
- Labor officials should use every and reasonable means to ascertain the
facts in each case speedily and objectively, without regard to technicalities
of law or procedure, all in the interest of due process

Camille Sapnu Labor II Cadiz


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o De Ocampo v NLRC: NLRC allowed the receipt of additional


evidence based on an MR of its own decision
- Execution of Decisions, Orders, or Awards
o WoE on a judgment within 5 yrs from the date it becomes final and
executory
Motu proprio OR upon motion of ANY interested party
Issued by:
1. DOLE Sec
2. Regional Dir
3. NLRC
4. LA
5. Med-Arbiter
6. Voluntary Arbitrator
Sheriff/duly deputized officer = duty to separately furnish
immediately the counsels of record and the parties with
copies of the said DAO
DOLE Sec and NLRC Chairman = may designate special
sheriff and take any measure under existing laws to ensure
compliance of the DAOs

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)

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o Compromise agreement = judgment on consent


Confession of judgment = judgment by confession
Acknowledgment that a debt is justly due and cuts off all
defenses and right of appeal
Used as a shortcut to a judgment in a case where the
defendant concedes liability
Seen as the written authority of the debtor and a direction
for entry of judgment against the debtor
Sara Lee v Macatlang*: compromise agreement deemed as
confession of judgment (SC considered such still as
compromise agreement)
- Judicial courtesy = principle applies only if there is a strong probability
that the issues before the higher court would be rendered moot and
moribund as a result of the continuation of the proceedings in the lower
court
o Exception rather than the rule
- BLR have the power to issue subpoenas = motu proprio or request of ANY
interested party
- Appointment of Bureau Personnel = DOLE Secretary may appoint such
number of examiners and other assts as may be necessary to carry out
the purposes of this Code
- Registry of Unions and File of CBA
o BLR = keep a registry of legitimate labor orgs
o BLR = maintain a file of all CBAs and other related agreements and
records of settlement of labor disputes and copies of orders and
decisions of voluntary arbitrators
Open and accessible to all interested parties under
conditions prescribed by the DOLE Sec
GR: NO specific information submitted in confidence shall be
disclosed
E:
1. Authorized by the DOLE Sec
2. It is at issue in any judicial litigation
3. When public interest or national security so requires
o CBA = within 30 days from execution submit
1. Copies directly to the BLR/DOLE Regional Offices
2. Proofs of posting in 2 conspicuous places in the place of
work
3. Ratification by the majority of all the workers in the
bargaining unit
BLR/Regional Office= act upon the application W5CDR
Regional Office = furnish the BLR with a copy of the
CBA W5D from its submission
Registration fee = min. 1k; amt deemed as appropriate and
necessary by the DOLE Sec
Amount collected = Special Voluntary Arbitration Fund
Effect of non-registration = contract bar principle [union
can send proposals again] does NOT appl
- Prohibition on Certification Election
o GR: NO Petition for Certification Election
E: Petition filed within 60 days prior expiration of the CBA
- Privileged Communication = information and statements made at
conciliation proceedings; NOT used as evidence in the NLRC

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o Conciliators and similar officials = NOT testify regarding matters


taken up at conciliation proceedings conducted by them

Camille Sapnu Labor II Cadiz


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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

Camille Sapnu Labor II Cadiz


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interest; although they belong to different plants, they


perform work of the same nature, receive the same wages
and compensation, and share a common stake in concerted
activities
Separating the bargaining units would fragmentize the
ees thus diminishing their bargaining leverage
Geographical location can be completely disregarded if
the communal/mutual interests of the ees are not
sacrified
- Right to Self-Organization
GR: Includes right NOT to join
E: Union Shop Clause
o Give way to collective good of all members
o Union Security = generic term which is applied to and
comprehends any form of agreement w/c imposes upon ees the
obligation to obtain union membership as a condition affecting
employment
o Closed Shop = must join immediately unlike in a union security
clause where the ee may join later on
E to E:
1. Religious exemption = those members of a religious org which
prohibits joining any other association
2. Prior membership in another union
3. Confidential ees
4. Expressly excluded by the existing CBA
- Non-abridgement of Right to Self-organization
o It shall be unlawful for any person to restrain, coerce, discriminate
against or unduly interfere with employees and workers in their
exercise of the right to self-organization.
o Such right shall include the right to form, join, or assist labor
organizations for the purpose of collective bargaining through
representatives of their own choosing and to engage in lawful aid
and protection, subject to the provisions of Article 264 of this Code
- Union Election = held pursuant to CBL
o Right to vote in it = enjoyed ONLY by union members
Allowing the er or non-union member to participate =
incompatible with the principle that CBL is the covenant
among union members UNLESS otherwise authorized by the
CBL of the union
UST v Bitonio: The election held was not a certification
election because the issue was union leadership not
representation and more so, because it was not pursuant to
the CBL
The ratification of the new CBA did not validate the
void election = ratified were the terms of the CBA not
the issue of union leadership
o Certification Election = ALL employees belonging to the appropriate
bargaining unit can vote
Determination, through secret ballot, the sole and exclusive
bargaining agent of the ees for purposes of collective
bargaining

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Purpose = whether or not a majority of the ees wish to be


represented by a labor org and, in the affirmative case, by
which particular labor org
Diplomatic immunity covers a certification election
(International Catholic Immigration v Calleja)
Not considered as independent or isolated process
May trigger a series of events in the CB process
together with related incidents and/or concerted
activities, which could inevitably involve the intl org
in a legal process

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

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o Labor Standards: Different definition of a mngr


o Although CBA is the law between the parties, it cannot override the
law, i.e. only mngrial ees are ineligible to join, assist or form a
labor org
o Middle managers = managers per se
Direct activities of other mngrs and sometimes operating
ees
Direct activities that implement company policies and
balance demands of their superiors and capacities of their
subordinates
E.g. plant mngr in an electronics firm, route mngr of Pepsi
(does not merely implement but is a business administrator)
o Top managers = executives
Responsible for overall mngt of the org
Establishes operating policies
E.g. CEO, President, Senior VP
o Franklin Baker: Subject ees who have the power to hire, suspend
or dismiss are only recommendatory and the ultimate power rests
upon the plant personnel mgnr = NOT mngrial ees
Moreover, do NOT participate in policy making but are given
ready policies to execute
- Supervisory employees = NOT be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or form
separate labor organizations of their own
o However those who were already members of a R-F union are
allowed to remain (Arizala v CA)
o Supervisor = one who, in the interest of the er, effectively
recommends such mngt actions if the exercise of such authority is
not merely routinary or clerical in nature but requires the use of
independent judgment
o Labor Standards: Supervisors are considered as mngrs
o First-line managers = direct operation only; do not supervise other
ees (e.g. foreman in a manufacturing plant, technical supervisor in
a research department)
- Confidential ees rule = excludes from the bargaining units who, in the
normal course of their duties, become aware of mngt policies relating to
labor relations
o Criteria (cumulative)
1. Assist/act in a confidential capacity = confidential
relationship must exist between ee and his supervisor
2. To persons who formulate, determine and effectuate mgnt
policies in the field of labor relations = supervisor must
handle the prescribed responsibilities relating to labor
relations
o Impt element = ees need to use labor relations info
o Key question = necessary access to confidential labor relations info
o Rationale:
1. Potential conflict of interest
2. Union may not be assured of loyalty
3. Union may become company dominated with their presence
4. May become spy/spied of either party to a CBA
o E.g. of those who are confidential ees

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Philips Industrial v NLRC: Division secretaries, all staff of


general mgnt, personnel and industrial relations dept,
secretaries of audit, EDP and Financial Systems all are
explicitly excluded by the CBAs. 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 managerial functions in the field of labor relations.
HR Asst = necessarily involves labor relations, recruitment
and selection of ees, access to ees personal files and
compensation package, and HR mngt
Personnel Asst = recording of minutes for mngt during CB
negotiations, assistance to mngt during grievance mtgs and
admin investigations, securing legal advice for labor issues
from the ers team of lawyers, and implementation of
company programs
Quality control staff = exposed to to sensitive, vital and
confidential information about products or have knowledge
of mixtures of the products, their defects, and even their
formulas which are considered trade secrets
o E.g. of those who are not confidential ees
Confidential information relate to internal business
operations
Confidential info although labor relations info = merely
incidental and not necessary in duties
Confidential and Exec Secretaries who were expressly
excluded from CBA = duties involve routine activities of
recording and monitoring, and other paper works while
secretarial tasks such as receiving phone calls and filing of
office correspondence are additional duties
Checkers = routine and mechanical tasks
Ees in confidential payroll = only allegation that they are
considered by mngt as occupying mngr positions and highly
confidential not enough
Computer operators = student records, faculty records,
faculty and staff payroll data, budget allocation
Discipline officers = enforce discipline, act as peace officers,
conduct investigation on violations of university
- Those expressly excluded by the CBA may in the future, be included.
- Members-consumers = an owner cannot bargain with himself and his co-
owners

III. REGISTRATION AND CANCELLATION


A. REQUIREMENTS OF REGISTRATION
- The ff shall acquire the legal personality and shall be entitled to the rights
and privileges granted by law to legit labor orgs upon issuance of the cert
of registration:
1. Federation
2. National Union
3. Industry/Trade Union Center
4. Independent Union
o A labor org not registered = is still a lawful org and can deal with
the employer but it has no legal personality to demand CB, cannot

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petition for certification election, request a preventive mediation, or


hold a legal strike
- Requirements:
1. P50.00 registration fee
2.
a. Names and addresses of officers
b. Principal address of the org
c. Minutes of the organizational mtg
d. List of workers who participated in such mtgs
3. If an independent union = names of all its members compromising at
least 20% of all the ees in the bargaining unit where it seeks to
operate
o 20% req = only during application for union registration
4. If existence for yrs = copies of its annual financial reports
5. 4 copies of the ff:
a. Constitution and by-laws of the union
b. Minutes of its adoption/ratification
c. List of the members who participated in it
- Substitutionary doctrine = new agent must respect the existing CBA
signed by the former agent but may negotiate for shortening of the pd
o New agent does not automatically assumes all the personal
undertakings in the CBA
o NOT vital anymore since the union must follow the freedom pd
- Local Chapter
o A duly registered federation/national union may directly create a
local chapter by issuing a charter certificate indicating the
establishment of the local chapter
o Issuance of charter certificate = local chapter acquires legal
personality ONLY for purposes of filing a petition for certification
election from the date it was issued a charter certificate
o Entitled to all other rights and privileges only upon submission of
the ff documents:
1. Charter certificate
2. Names and addresses of the chapters officers
3. Principal office of the chapter
4. Constitution and by-laws = if same with the
federation/national union, then it shall be indicated
accordingly
#s 2-4 = certified under oath by the secretary/treasurer of the
chapter and attested by its president
o Affiliation = K of agency with local union as principal and the
federation/natl union as agent
When? ANYTIME
Why? Federation/natl union shall assist them since
federation/natl union have more knowledge and experience
(consequence = remit union dues)
o Disaffiliation
Period
GR: Freedom pd [60-day pd immediately preceeding the
expiration of the CBA]
E: Effected by a majority of the members (substantial shift
of allegiance on part of the majority; CBA still binds them)
Right to withdraw depends on the unions CBL and charter

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Does NOT result to loss of legal personality of the local


union
Local union = separate and distinct unit; does not
owe its existence to the federation (Cirtek Employees
Labor Union-FFW v Cirtek Electronics)
Non-compliance with procedure on disaffiliation = purely
technical grounds which cannot rise above the fundamental
right to self-org
- Additional Requirements for Federations/Natl Unions
1. Proof of affiliation of at least 10 locals/chapters
o Each of which must be a duly recognized collective
bargaining agents in the establishment/industry in which it
operates
o Each supporting such registration
2. Names and addresses of the companies where the locals/chapters
operate
3. List of all the members in each company involved
- Reportorial Requirements = The following are documents required to
be submitted to the Bureau by the legitimate labor organization
concerned:
1. Adoption/ratification = W30D from adoption or ratification
a. Constitution and by-laws, or amendments thereto
b. Minutes of ratification
c. List of members who took part in the ratification of the constitution
and by-laws
2. Election = W30D from election
a. List of officers
b. Minutes of the election of officers
c. List of voters
3. Annual financial report = W30D after the close of every fiscal year
4. List of members at least once a year or whenever required by the
Bureau.
Failure to comply = NOT be a ground for cancellation of union registration
but shall subject the erring officers or members to
a. Suspension
b. Expulsion from membership
c. Any appropriate penalty
o Unreasonable to penalize the whole union on the basis of the
negligence of its officers
B. PROCEDURE
- BLR/DOLE Regional Offices = act on the application W30D from filing
o Decision of DOLE RO may be appealed to BLR W10DR of notice
- All requisite documents and papers = certified under oath by the
secretary/treasurer of the chapter and attested by its president
- Procedure for Registration and Application:
a. Union/Association
Regional Office BLR CA SC
b. Federation/National Unions/Trade Center
BLR DOLE Sec CA SC
- Cancellation = by the Bureau, after due hearing, only on the ff grounds:
a. Misrepresentation, false statement or fraud in connection with
the

Camille Sapnu Labor II Cadiz


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1. Adoption/ratification of the constitution and by-laws or


amendments thereto
2. Minutes of ratification
3. List of members who took part in the ratification
b. Misrepresentation, false statement or fraud in connection with
the
1. Election of officers
2. Minutes of the election of officers
3. List of voters
c. Voluntary dissolution by the members
o Discretion o the Regional Dir to determine whether the union still
meets the requirements prescribed by law
o Nature of misrep/false statement/fraud = must be grave and
compelling enough to vitiate the consent of the majority of union
members
o Technical requirements must give way to the more substantive
considerations involving the constitutionally guaranteed freedom of
association and right to self-org
- Effect of a Petition for Cancellation of Registration = shall NOT
suspend the proceedings for the certification election NOR shall it prevent
the filling of a petition for certification election
o In case of cancellation = union still have the right to seek just and
equitable remedies in the appropriate courts
o Does NOT preclude:
1. Certification Election
2. CB
- Voluntary Cancellation of Registration
1. 2/3 of its general membership votes in a meeting duly called for
that purpose to dissolve the org
2. Application to cancel submitted by the board, attested by the
president
- Cancellation of certificate of registration does NOT retroact to time of
issuance
- Legitimacy of legal personality = independent action for Petition for
Cancellation
GR: Not subject to collateral attack
E:
1. Not listed by the BLR/Reg Off in its registry of legit labor orgs
2. Legal personality has been revoked or cancelled with finality
- Mixture of R-F and supervisory = does NOT nullify the legal personality of
the union unless such was brought about by misrep/false
statement/fraud; prohibited but no effects were laid out in the LC
- Withdrawal of union members
a. BEFORE filing of petition = presumed voluntary since names of ees
are supposed to be held secret to the opposite party UNLESS there
is convincing proof to the contrary
b. AFTER = presumed NOT free and voluntary
o Names of ees became known to the opposite party since
names are attached to the petition
- Heritage Hotel Manila: BLR Dir. inhibited himself from the case and the
DOLE Sec rendered decision in his behalf. When the DOLE Secretary
resolved the appeal, she merely stepped into the shoes of the BLR Dir and

Camille Sapnu Labor II Cadiz


26

performed a function the latter could not himself perform. She did so
pursuant to her power of supervision and control over the BLR.

IV. RIGHTS AND CONDITIONS OF MEMBERSHIP


A. Political Right
- Election = directly elect their officers including those of the national
union/federation/trade union/any similar aggrupation to which their union is
affiliated
o Secret ballot
o Interval of 5 years
o Secretary/any other responsible union officer = furnish the DOLE Sec with
a list of the ff:
Newly-elected officers
Appointive officers/agents who are entrusted with the handling of
funds
W30CD
a. After the election
b. From the occurrence of any change in the list of officers
- Membership = should NOT belong to a subversive [against the government]
org NOR engage (directly/indirectly) in any subversive activity
- Elective/Appointive Position = ONLY requirement is membership in good
standing
o Should NOT be CONVICTED of a crime involving moral turpitude

B. Deliberative and Decision-Making Right


1. Determine any question of major policy affecting the entire
membership of the organization
o After due deliberation
o GR: Secret ballot
E: Secret ballot impractical due to
a. Nature of the organization (e.g. located in different
places)
b. Force majeure
In which case, the BoD may make the decision in behalf of
the general membership

C. Rights Over Money Matters


1. No arbitrary/excessive initiation fees [membership fees] shall be
required of the members nor shall arbitrary, excessive or oppressive
fine and forfeiture be imposed
o Fine and forfeiture allowed as long there it follows the defined
procedure in CBL and due process
2. Entitled to full and detailed reports of all financial transactions as
provided in the CBL
o Reports from their officers and representatives
3. No officer/agent/member shall collect any fees, dues, or other
contributions in the behalf of the union or make any disbursement of
its money or funds
E: Duly authorized
4. Every payment of fees, dues or other contributions by a member
1. Evidenced by a receipt signed by the officer/agent making the
collection and

Camille Sapnu Labor II Cadiz


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2. Entered into the record of the organization to be kept and


maintained for the purpose
5. Funds = NOT be applied for any purpose or object other than those
expressly p
a. Provided by CBL
b. Authorized by written resolution adopted by the majority of the
members at a general meeting duly called for the purpose
6. Every income or revenue = evidenced by a record showing its source
Every expenditure of its funds = evidenced by a receipt from the
person to whom the payment is made
o State the:
1. Date
2. Place
3. Purpose of such payment
Such record or receipt shall form part of the financial records of the
organization.
7. Any action involving the funds of the organization = prescribe after 3
years from
a. Date of submission of the annual financial report to the DOLE
b. Date the same should have been submitted as required by law,
whichever comes EARLIER
o This provision applies ONLY to a legitimate labor organization
which has submitted the financial report requirements under
this Code
o Failure to comply = automatically result in the cancellation of
union registration of such labor organization.
8. Officers = NOT be paid any compensation other than the salaries and
expenses due to their positions as specifically provided for
a. In its constitution and by-laws
b. In a written resolution duly authorized by a majority of all the
members at a general membership meeting duly called for the
purpose.
o The following are subj to inspection by DOLE Sec/duly
authorized reps:
1. Minutes of the mtg
2. List of participants
3. Ballots cast
o Any irregularities in the approval of the resolutions = ground for
impeachment or expulsion from the organization
9. Treasurer and every officer thereof who is responsible for the accounts
of such organization or for the collection, management, disbursement,
custody or control of the funds, moneys and other properties of the
organization, shall render to the organization and to its members a
true and correct account of all moneys received and paid by him since
he assumed office or since the last date on which he rendered such
account and of the balance remaining in his hands at the time of
rendering such account, and of all bonds, securities and other
properties of the organization entrusted to his custody or under his
control. The rendering of such account shall be made:
1. At least once a year within thirty (30) days after the close of its
fiscal year;
2. At such other times as may be required by a resolution of the
majority of the members of the organization; and

Camille Sapnu Labor II Cadiz


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3. Upon vacating his office.


The account shall be duly audited and verified by affidavit and a
copy thereof shall be furnished the DOLE Sec
10. Books of accounts and other records of the financial activities of any
labor organization = opened to inspection by any officer or member
thereof during office hours
11.Special Assessment
GR: Only against lump-sum union funds and not upon amt due an ee
o E.g. Payment of compensation for services of officers must be
paid by union dues UNLESS found to be insufficient then can be
subj of special assessment (Palacol v Calleja)
E:
a. Mandatory activities under the Code
b. Authorized by the ee
o Reqs:
1. Authorized by a written resolution of a majority of all
the members at a general membership meeting duly
called for the purpose
2. Secretarys record of the minutes
Indicating the:
1. List of members present
2. Votes cast
3. Purpose of the special assessment/fees
4. Recipient
3. Individual written authorization duly signed by the
employee
Stating the:
1. Amount
2. Purpose
3. Beneficiary
No requirement as to the form; may be
collective (Palacol v. Calleja)
Withdrawal = no authorizaition at all
o Strict compliance with the reqs; substantial compliance
NOT enough (Mario v Gamilla)
- Check-off = process/device whereby the er deducts union fees/agency fees
from the ees wages and directly remits them to the union
o Based on agreement with the union OR prior authorization of ee
o Reason = assurance of continuous funding
o Union dues = based on K or statute
o Agency fees = non-union members
Based on QD; if allowed to enjoy CBA benefits without paying
then, unjust enrichment (Holy Cross of Davao College v
Joaquin)
Recognized by the LC
o Ees check off authorization even if deemed irrevocable = good only as
long as they remain members of the union
Obligation to pay = coterminous with membership/affiliation
o No provision of law makes the er directly liable for the payment to the
labor org of union dues and assessments that the former fails to
deduct from its ees salaries and wages pursuant to a check-off
stipulation. (Holy Cross of Davao College v Joaquin)

Camille Sapnu Labor II Cadiz


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Check-offs in truth impose as extra burden on the er in the


form of additional admin and bookkeeping costs
Burden assumed by the mngt at the instance of the
union and for its benefit, in order to facilitate the
collection of dues necessary for the latters life and
substance
No liability for failure to deduct BUT may constitute a violation
of contractual commitment
Which it may incur liability for ULP
Personal obligation of indl ee to pay union dues/agency fees =
NOT demandable from the er upon default/refusal of er to
consent to a check-off
Principle of unjust enrichment necessarily precludes
recovery of union dues/agency fees from the er =
these being personal obligations of the ees
Where the er fails/refuses to deduct = logic and
prudence dictate that the union itself undertake the
collection and assessments
Right to union dues deducted pursuant to check-off
Directly pertains to the local union
Indirect to the members

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

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o Under this "doctrine" expressions of opinion by an employer which,


though innocent in themselves, frequently were held to be culpable
because of the circumstances under which they were uttered, the
history of the particular employer's labor relations or anti-union bias
or because of their connection with an established collateral plan of
coercion or interference.
- For a charge of ULP to prosper:
1. It must be shown that the er was
a. Motivated by
i. Ill will
ii. BF
iii. Fraud
b. Oppressive to labor
c. Done in a manner that is contrary to
i. Morals
ii. Good customs
iii. Public policy
2. AND, of course, that
a. Social humiliation
b. Wounded feelings
c. Grave anxiety resulted
o Substantial evidence
o CABEU-NFL v CAB: CAB is being accused of violating its duty to
bargain collectively supposedly because of its act in concluding a
CBA with CABELA, another union in the bargaining unit, and its
failure to resume with CABUE-NFL.
SC: Notably, CAB believed that CABEU-NFL was no longer the
rep of the workers. It just wanted to foster industrial peace by
bowing to the wishes of the overwhelming majority of its r&f
workers and by negotiating and concluding in GF a CBA with
CABELA. Such are nowhere tantamount to anti-unionism.
Furthermore, CABEAU-NFL failed to prove BF on part of CAB;
just relied on letter of CAB which stated that the latter lost its
majority states after former members organized CABELA (91%
of r&f ees joined).
o Manila Mining Ees Association v Manila Mining: Suspension was due
to refusal of DENR to issue a permit. Suspension does not amount
to refusal to bargain. Moreover, it even expressed its willingness to
negotiate once the operations resume.
- Acts of Interference
o Test = conduct which, it may be reasonably said, tends to interfere
with the free exercise of employees rights
NOT necessary that there be direct evidence that any ee was in
fact intimidated or coerced by the statements of threats of the
er if there is a reasonable interference that the anti-union
conduct of the er does have an adverse effect on self-org and
collective bargaining (T&H Shopfitters v T&H Shopfitters
Workers Union)
o Insular Life Assurance Ees Association v Insular Life Assurance:
Companies contend that the sending of letters (go home or to sleep
nights at the office where comfortable cots have been prepared
etc.) to striking ees constituted as an exercise of their freedom of
speech.

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SC: NO! It is ULP for an er operating under a CBA to


negotiate or to attempt to negotiate with his ees
individually.
Basis of prohibition: Er is still under obligation to
bargain with the union as the bargaining rep
Individual solicitation of the ees constitutes ULP because
they tend to undermine the concerted activity of the ees, an
activity to which they are entitled free from the ers
molestation.
Act of writing letters to strikers, urging their return to work
on terms inconsistent with their union membership =
interference
Letter notifying to return to work with threat of replacement
= act of interference
o Hacienda Fatima v National Federation of Sugarcane Workers-Food
and General Trade
Refusal to bargain
Acts of economic inducements resulting in the promotion of
those who withdrew
Use of armed guards to prevent organizers to come in the
establishment
Dismissal of union officials and members
- Lack of sincere desire to negotiate with the union regarding CBA proposal
= guilty of ULP
o Colegio de San Juan de Letran v Association of Ees and Faculty of
Letran = School devised ways and means in order to prevent the
negotiation.
Dismissal of union president = clearly designated to frustrate
the union in its desire to forge a new CBA
o Where the er did not even bother to submit an answer to the
bargaining proposals of the union, there is a clear evasion of the
duty to bargain collectively. (Kiok Loy v NLRC)
- Union-busting
o Offered reinstatement and attempted to bribe the strikers so they
would abandon the strike and return to work = strike-breaking
and/or union-busting
o Dismissal of union president
- A group of ees (Aliazas group) filed a petition for conduct of elections;
alleging that the holdover tenure of the incumbent officers of DLSUEA had
long expired. DOLE granted the petition. DLSUEA called for regular
elections without prior notice to DOLE and without the conduct of pre-
election conference. The Aliazas group filed a motion for intervention.
Subsequently, it sent a letter to the er requesting to put on escrow all the
union dues/agency fees. Er took a neutral stand.
o Guilty of ULP = pending resolution of the intra-union dispute,
DLSUEA remained the CB agent; no void in DLSUEA leadership;
incumbent until successors have been elected and qualified
- Contracting out services/funcs being performed by union members when
such will interfere with, restrain or coerce ees in the exercise of their
rights to self-org
o Timing and reason for closure and subsequent opening of a new
dept

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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

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33

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.

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- 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

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prohibit a union from offering and agreeing to reduce wages and


benefits of the employees. In Rivera v. Espiritu, this Court ruled
that the right to free collective bargaining, after all, includes the
right to suspend it.
o Who may file a notice or declare a strike or lockout or
request preventive mediation. -
Any certified or duly recognized bargaining
representative may file a notice or declare a strike or request
for preventive mediation in cases of bargaining deadlocks
and unfair labor practices. The employer may file a notice or
declare a lockout or request for preventive mediation in the
same cases. In the absence of a certified or duly recognized
bargaining representative, any legitimate labor organization
in the establishment may file a notice, request preventive
mediation or declare a strike, but only on grounds of unfair
labor practice.
- Tanduay Distillery Labor Union v NLRC: CBA = joint and several K of the
members; entered into by the Union as their agent
o Law requires loyalty to the union on part of its members = indirect
restriction on the right of ee to self-org
o In this case, CBA expired hence contract bar rule will NOT apply
BUT such will not wipe out act of loyalty of the private respondents
committed when they organized another union while the CBA was
still in force.
- Union cannot demand what is NOT stipulated in the CBA
o Wise and Co., Inc. v Wise & Co., Inc. Ees Union: Profit sharing
privilege given to class of ees who were excluded in the bargaining
unit and who do not derive benefits from the CBA. No
discrimination since the ees concerned are not similarly situated.
Exercise of mngt prerogative does not equate to discrimination.
- Manila Central Line Corp v Manila Central Line Free Workers Union-
National Federation of Labor: LA can be VA
- Republic Flour Mills v Reyes: Ees struck at the establishment of another
er (X). X filed an injunction before the RTC. Granted.
o SC: injunction is proper. NO labor dispute since the strikers do not
have an EER with X.

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

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Nothing in RA 875 tells of how the mingling affects the


legitimacy of the LO; similar to RA 6715 = no exact effect
o International School v Quisumbing = foreign heirs cannot be
included in the BU of local hires due to lack of intention to be
grouped together with locals, CB history, difference in benefits
received and tenure
o NAFTU v MALDECOWU: Sawmill and Logging may be one BU
regardless of 80km distance from each other due to mutuality of
interest. CB history is only a factor.
o Belyca Corp v Calleja et al: Livestock and agri cannot be grouped
together with those ees in the supermarket and cinemas due to
difference in the employment status
o UP v Ferrer-Calleja: non-teaching and teaching cannot be in one
BU
- Certification Election
o Organized establishment = petition but discretion
Unorganized = automatic
o In absence of CBA = may be filed at ANYTIME
o NOT a litigation in the common sense but a mere investigation of
non-adversary, fact-finding character, in which the investigating
agency plays the part of a disinterested investigator seeking
merely to ascertain the desire of the ees as to the matter of their
representation
o Percentage less than the required % = Dir could still order conduct
of CE provided there is no grave abuse of discretion
o Where the company seeks the cancellation of a unions registration
during the pendency of a petition for CE, the same grounds invoked
should NOT be used to bar the CE.
o Protest NOT raised and contained in the minutes = deemed waived
Allegations of vote buying, grave and serious threats, and
force and intimidation = ?s of fact that should be contained
in the minutes
o Not clear from the record whether the union is a LLO = SC is not
ready to incline to believe otherwise especially in the light of pro-
labor policies; DOLE would not have entertained the Petition for CE
if the union was not a LLO (Me-Shurn case)
- Irregularities in the election = re-run
- Certification yr = within 1 yr from the date of issuance of declaration of a
final election result
- Union cannot demand er to bargain if it is NOT the CB agent
- National Union of Workers v Secretary of Labor
o Probationary ees = have the right to vote
All r&f ees in the appropriate BU, whether probationary or
permanent, are entitled to vote. All they need to be eligible
to support the petition is to belong to the BU. (Airtime
Specialists v Ferrer-Calleja)
Any ee, wheter employed for a definite pd or not, shall
beginning on the first day of his/her service, be eligible for
membership in any labor org
CBA provision cannot override consti right to self-org
o Pd of reckoning in determining who shall be included in the list of
eligible voters = with appeal time of DOLE Sec Order BUT due to
amendment then 3 months prior to filing

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- Samahan ng mga Manggagawa sa Hanjin v BLR


o EER = union is mandatory
No EER = association NOT mandatory
o Union = any labor org in the private sector organized for CB and
other legit purposes
Workers association = an org of workers formed for the mutual aid
and protection or for any other legit purpose other than CB
LMC = policy and decision-making purposes
o Hanjin: Members of samahan have definite ers hence form union
instead of association
Court: Nothing in the LC which states that ees with definite
workers may file, join or assist a union only
All other workers, including ambulant may form labor org
for their mutual aid and protection and other legit purposes
except CB
o Misrepresentation as a ground for the cancellation of the cert of
registration = must be done maliciously and deliberately
Mistakes in the application/attachments must be grave or
refer to significant matters
Details as to how the alleged fraud must also be shown
o Removal of word Hanjin Shipyard
As there is no provision in the LC which speak of use of
name by a workers association, the Court refers to Corp
Code = NO corp name may be allowed if the proposed
name is identical or deceptively/confusingly similar to that
of an existing corp
It would be misleading for the members of Samahan to use
Hanjin Shipyard = as it could give the wrong impression
that all of its members are employed by Hanjin
Change of name = does NOT affect the unions legal
personality
- Coca-Cola Bottlers
o Exposure to internal business operation NOT ground for exclusion
in BU
o Compare to case of Laguesma
- LO v BU
LO BU
ANY U/assoc of ees which exists in Appropriate BU
whole or in part for the purpose of
a. CB
b. Dealing with er concerning
terms and conditions of
employment
Inclusion of disqualified = file Exclusion-inclusion proceeding
petition for cancellation of cert.

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

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o VA had plenary j and authority to interpret the agreement to


arbitrate and to determine the scope of his authority, subj only to
certiorari j of SC
o Necessary power to make a final settlement on the related issues
since arbitration is the final resort for the adjudication of disputes
Aim = speedy labor justice
VA has NO competence to rule on the taxability of gas
allowance and on the propriety of the withholding of tax =
clearly tax matters
Sime Darby Pilipinas v Deputy Admin Magsalin = submitted
issue was issue of performance bonus; VA also had the
authority to determine related question of amt of bonus
Ludo & Luym = issue of whether an ee was discharged for
just cause includes power to reinstate the ee or to grant
back wages
- Only authorized members may represent the union in grievance
o Right of group of ees to present grievances to er does NOT imply
the right to submit the same to voluntary arbitration
- Arbitrator is confined to the interpretation and application of the CBA
o Award is legitimate only in so far as it draws its essence from the
CBA, i.e. when there is a rational nexus between award and CBA
o There is an unauthorized amendment/alteration if:
1. Unfounded in reason and fact
2. Unconnected with the working and purpose of the
agreement
3. Without factual support in view of its language, its context,
and any other indicia of the parties intention
4. Ignores/abandons the plain language of the K
5. Mistakenly based on a crucial assumption which concededly
is a non-fact
6. Unlawful, arbitrary or capricious
7. Contrary to public policy
- If terms of the CBA are clear and have no doubt upon the intention of the
parties = literal meaning
o However, if in the CBA, the parties stipulate that the hires must be
presumed of employment qualification standards but failed to state
such = VA may resort to extrinsic evidence to determine the full
agreement intended by the parties.
o The VA may also consider and rely upon negotiating and
contractual history of the parties, evidence of past practices
interpreting ambiguous provisions. The VA has to examine such
practices to determine the scope of their agreement, as where the
provision of the CBA has been loosely formulated.
- ULP and Termination Disputes
GR: LA
E: VA clear agreement
a. CBA
b. Evidence on record showing agreement to resort to VA
o All disputes = NOT an express stipulation; construed to be as
limited to areas of conflict traditionally within the j of VA (SMC
v NLRC)
- Sec. 10, RA 8042 Disputes regarding interpretation of CBA involving
migrant or OFWs (Estate of Dulay v Aboitiz)

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o It is true that RA 8042 is a special law governing OFWs HOWEVER,


it has no specific provision which provides for j over
disputes/unresolved grievances regarding
interpretation/implementation of CBA = specific provision in LC
over general provision in RA 8042
o With respect to disputes involving claims of Filipino
seafarers
GR: parties covered by CBA = j of VA
E: absence of CBA = options:
1. NLRC
2. Voluntary Arb
- Appeal of VA/pVA decision = Petition for Review via Rule 43 before the CA
W10D from receipt of decision of VA (original or MR); fresh pd rule
- Navarro III v Damasco: violation of a Code of Ee Discipline is NOT a subj
of grievance procedure
- Octavio v PLDT: Art 100 does NOT prohibit a union from offering and
agreeing to reduce wages and benefits of the ees as the right to free
collective bargaining includes the right to suspend it.

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40

JURISPRUDENTIAL RULINGS (FINALS)

STRIKES AND LOCKOUTS


VALIDITY OF STRIKES AND LOCKOUTS
- Where a union believes that an er committed ULP and the surrounding
circumstances warranted such belief in GF, the resulting strike may be
considered legal although subsequently, such allegations of ULO were found
to be groundless
o E.g. Earnings of er not enough to cover expenses and other liabilities.
Downsizing contrary to staffing standards adopted by the parties under
a CBA and belief was bolstered when er hired 100 contractual workers
to replace 48 terminated r-f.
- A strike, although valid, may be held invalid if in violation of a no strike, no
lockout provision.
o No law or public policy prohibits the Union and the Company from
mutually waiving the strike and lockout maces available to them to
give way to voluntary arbitration. Indeed, no less that the Constitution
recognized the preferential use of voluntary means to settle disputes.
- Picket = must be moving to allow entry to/exit from the establishment
o March to and from the employers premises
o Strike = focuses on stoppage of work
Picket = focuses on publicizing the labor dispute and its incidents
- NOT CB agent = cannot demand CB
- J of LA = legality of strike within original and exclusive j
o WoN strike is illegal = prejudicial ? as to the issue of WoN
complainants were illegally dismissed
- Money claims = personal right; right that must be personally exercised
- In pari delicto = bear consequences of their wrongdoing (Automotive Engine
Builders v Progresibong Unyon ng mga Manggagawa)

ASSUMPTION AND RtW ORDERS


- Assume jurisdiction = intent of the law is to give DOLE Sec full authority to
resolve all matters within the dispute that gave rise to or which arose out of
the strike or lockout
o Includes and extends to all questions and controversies arising from or
related to the dispute, including cases over which the LA has exclusive
j
- Executory in character and are to be strictly complied with
- Payroll reinstatement = departure from the rule, and special circumstances
which make actual reinstatement impracticable must be shown
o Allowed where the employees previously occupied confidential
positions, because their actual reinstatement, the Court said, would be
impracticable and would only serve to exacerbate the situation
o Option in lieu of actual reinstatement for teachers who were to be
reinstated in the middle of the first term
- Assumption of DOLE Sec over a labor dispute indispensable to national
interest = automatic RtW Order
o RtW does NOT interfere with mngt prerogatives but merely regulates
- Assumption power v Sec 9, Art II (State may provide for compulsory
arbitration)
o NOT unconstitutional
o Not expressly nor impliedly repealed

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o No court ever declared said articles are inconsistent


- Orders of DOLE Sec = does NOT finally dispose of labor dispute
- DOLE Sec = plenary and broad powers and is granted great breadth of
discretion to adopt the most reasonable and expeditious way of writing finis to
labor dispute
- Service of Notice of Order
o DOLE process = presumption of legality in its performance
o Cadiz: Personal service = ONLY mode
Special circumstances warrant = substituted service (FEU-NRMF
v FEU-NRMF Ees Association)

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

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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

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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

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- Lapse of probationary pd WITHOUT notice of being hired as regular =


effectively sever EER
o Mngt prerogative
o No security of tenure after laps
o However still serve termination within reasonable time
- ID = backwages ONLY (security of tenure is limited only to pd)
- If prob stat overlaps with a fixed-term K NOT specifically used for the fixed
term it offers, prob status assumes primacy and the fixed-pd character of the
K must give way
- Apprenticeship counted in the probationary pd
- Manual of Regulations for Private Schools (academic personnel)
o Elementary and secondary levels = 3 consecutive yrs of satisfactory
service
Tertiary level = 6 consecutive regular semesters of satisfactory service
Tertiary level where collegiate courses are offered on a trimester basis
= 9 consecutive trimesters of satisfactory service
o K of employment = specify terms and conditions of employment as
may be consistent with laws, rules, regulations and standards of
school
o Fixed-term during probationary pd = accepted practice in schools
o Reqs to acquire permanent employment
1. Full-time teacher
2. Rendered 3 consecutive yrs of service
3. Such service is satisfactory

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

Procedurally Defective BUT valid cause = NOMINAL DAMAGES

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a. Just cause = 30k


Tempered; act imputable to ee
b. Authorized cause = 50k
Stiffer; dismissal process initiated by employers exercise of mngt
prerogative

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

GROSS AND HABITUAL NEGLECT


- Gross negligence = implies a want/absence of/failure to exercise slight care
or diligence or entire absence of care

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- Habitual neglect = repeated failure to perform ones duties for a pd of time,


depending upon the circumstances
- Gross but NOT habitual = sufficiency of evidence as well as the resultant
damage to the er
o School of Holy Spirit v Taguiam: teacher neglected pupils swimming
the pool; one died as a result of drowning
o PAL v NLRC: delay on PALs flight schedule due to aircraft damage
entails problems like hotel accommodations, re-booking, etc.
o Fuentes v NLRC: bank teller; substantial amt of money was lost
- Gross inefficiency = closely related to gross neglect
o Both involve acts/omission

LOSS OF TRUST AND CONFIDENCE


- Willful breach = done
1. Intentionally
2. Knowingly
3. Purposely
4. Without justifiable excuse
- Premised on the fact that the ee
a. Holds a position of responsibility, trust and confidence (mngr) = mere
existence of a basis for belief that such ee has breached the trust
Mngrial discretion is not without limits; the moment opposed by
immediate supervisor = discretion stops
b. Entrusted with confidence with respect to delicate matters = requires
proof of involvement; such as handling or care of property and assets
- Act must be dishonest, deceitful and fraudulent

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.

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- Terminated due to labor saving devices amounts to redundancy, hence no


need to prove losses

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)

PROCEDURAL DUE PROCESS


A. JUST CAUSES
TWIN WRITTEN NOTICES
1. Specifying the grounds for termination and giving a reasonable opp to explain
his side
2. Indicating that, upon due consideration of all circumstances, grounds have
been established to justify the decision to dismiss the ee
- Served on the employees last known address

AMPLE OPPORTUNITY TO BE HEARD


- Ample opportunity to be heard = enough that the parties were given fair and
reasonable opp to explain their respective sides of the controversy and to
present supporting evidence on which a fair decision can be based
- Does NOT mean verbal argumentation alone, may be heard through written
explanations, submissions or pleadings
- GR: NO need for formal hearing
o LC: ample opp to be heard
IRR: require hearing/conference
N.B. Law prevails over admin regulations implementing it
E:
1. Request of ee
2. Substantial evidentiary disputes exist
3. Company rule or practice requires it
4. Similar circumstances justify it
- Defect of due process
o Complainant submitted paper/memorandum will cure
MR = does NOT cure defect
- Decision without constitutional due process (directly/collaterally) = VOID
Without contractual or statutory due process = VALID but payment of
indemnity
- CSC Resolution
o Formal charge = written specification of the charge/s against the ee
Generally embodies:
1. Brief statement of matl and relevant facts constituting
the basis of charge/s

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2. Directive to answer the charge/s in writing and under


oath, accompanied with evidence
3. Advice to indicate whether he elects a formal
investigation
4. Notice he may secure assistance of a counsel of his own
choice
o Require formal investigation

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

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i. NOT for serious grounds


ii. Did NOT reflect the moral character of the ee
o Doctrine of strained relations = payment of separation pay is
considered an acceptable alternative to reinstatement when the latter
option is no longer desirable or viable
i. When reinstatement can no longer be effected in view of the
passage of a long period of time or because of the realities of
the situation;
ii. Reinstatement is inimical to the employers interest;
Reinstatement is no longer feasible;
iii. Reinstatement does not serve the best interests of the parties
involved;
iv. Employer is prejudiced by the workers continued employment;
v. Facts that make execution unjust or inequitable have
supervened;
vi. Strained relations between the employer and the employee
- Constitutional due process protects the individual from the government and
assures him of his rights in criminal, civil or administrative proceedings
Statutory due process found in the Labor Code and Implementing Rules
protects employees from being unjustly terminated without just cause after
notice and hearing
- In the determination of the amount of nominal damages which is addressed
to the sound discretion of the court, several factors are taken into account:
i. The authorized cause invoked, whether it was a retrenchment or a
closure or cessation of operation of the establishment due to serious
business losses or financial reverses or otherwise;
ii. Number of employees to be awarded;
iii. Capacity of the employers to satisfy the awards, taken into account
their prevailing financial status as borne by the records;
iv. Employer's grant of other termination benefits in favor of the
employees; and
v. Whether there was a bona fide attempt to comply with the notice
requirements as opposed to giving no notice at all
- Computation of awards
o Principle of immutability = a final judgment may no longer be
altered, amended or modified, even if the alteration, amendment or
modification is meant to correct what is perceived to be an erroneous
conclusion of fact or law and regardless of what court, be it the highest
Court of the land, renders it
Re-computation of award does NOT violate the principle
Pure money claim for a specific sum (e.g. salary for a specific
period) or a specific benefit (e.g. 13th month pay for a specific
year) made by a former employee = the labor arbiters
computation would admittedly have continuing currency
because the sum is specific and any variation may only be on
the interests that may run from the finality of the decision
ordering the payment of the specific sum.
A ruling on a specific pure money claim = claim that relates to
status (as in this case, where the claim is the legality of the
termination of the employment relationship).
In this type of cases, the decision or ruling is essentially
declaratory of the status and of the rights, obligations
and monetary consequences that flow from the declared

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status (in this case, the payment of separation pay and


backwages and attorneys fees when illegal dismissal is
found). When this type of decision is executed, what is
primarily implemented is the declaratory finding on the
status and the rights and obligations of the parties
therein; the arising monetary consequences from the
declaration only follow as component of the parties
rights and obligations.
o Exclude general increases
Unqualified award = wage rate at time of dismissal
Salary increase = mere expectancy
o Include fringe benefits
o Computation should not go beyond the date when they are deemed to
have been actually separated from employment

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

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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

Camille Sapnu Labor II Cadiz

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