policy and decision making processes affecting their rights and benefits
as may be provided by law.
BOOK FIVE
LABOR RELATIONS
Title I
POLICY AND DEFINITIONS
Chapter I
POLICY
Labor law - The law that defines State policies on labor and
employment and governs the rights and duties of the employer
(Er) and employees (Ee) with respect to:
1. The terms and conditions of employment; and
2. Labor disputes arising from collective bargaining or other
concerted activity respecting such terms and conditions.
Classification of labor laws
1. Labor Standards – Prescribes the terms and conditions of
employment as affecting wages or monetary benefits, hours of
work, cost of living allowances, and occupational health, safety
and welfare of the workers. It provides economic benefits to the
workers who are actually working. e.g. 13th month pay
2. Labor Relations – Defines and regulates the status, rights
and duties, and the institutional mechanisms, that govern the
individual and collective interactions of Ers, Ees or their
representatives. It is concerned with the stabilization of relations
of Ers and Ees and seeks to forestall and adjust the differences
between them by the encouragement of CB and the settlement of
labor disputes through conciliation, mediation and arbitration.
e.g. Collective Bargaining Negotiations
3. Social Legislation – Those laws that provide particular
kinds of protection or benefits to society or segments thereof in
furtherance of social justice .
All laws passed by the State to promote public welfare.
It includes statutes intended to enhance the welfare of the people
even where there is no Er-Ee relationship. It provides economic
benefits to workers who are at work because of the hazards of
employment. e.g. GSIS Law, SSS Law, Philhealth benefits,
Agrarian Laws.
☛ PARTIES TO LABOR RELATIONS
CASES:
1. The employee’s organization,
2. management, and
3. the public
- The public is always to be considered in disputes between labor and
capital, and it has been held that the rights of the general public are
paramount.
- Labor relations policy under the LC is embodied in Section 3
Article XIII of the 1987 Constitution which guarantees to all
workers their right among others to self organization, collective
bargaining and negotiations, peaceful land concerted activities including
the right to strike in accordance with law, and to participate in
TITLE III
Art. 233(227) COMPROMISE AGREEMENT
1. Compromise Agreement
 The assistance of the BLR or the regional office of the DOLE
in the execution of a compromise settlement is generally a
basic requirement; without it there can be no valid
compromise settlement.
 The NLRC or any court shall not assume jurisdiction over
issues involved therein, except:
1. In case of noncompliance with the compromise
agreement or
2. If there is a prima facie evidence that the settlement
was obtained through fraud, misrepresentation or
coercion
 Indeed not all quitclaims are per se invalid or against public
policy, except:
1. Where there is clear proof that the waiver was
wangled from an unsuspecting or gullible person.
2. Where the terms of the settlement are
unconscionable on their faces (Mindoro Lumber
and Hardware vs Baay, et al. GR No. 158753, June
8, 2005)
2. Formal requirements of compromise agreement
 Compromise agreement involving labor standards cases must
be reduced in writing and signed in the presence of the
Regional Director or his duly authorized representative.
(Atilano vs De la Cruz, GR No. 82488, February 28, 1990)
 Special Power of attorney is required before an agent
including a legal counsel can be authorized to enter into a
compromise. (Art. 1878 of Civil Code)
3. Valid Compromise and Quitclaim
 The waiver of reinstatement, like waivers of money claims
must be regarded as a personal right which must be exercised
personally by the workers themselves. “For a waiver thereof
to be legally effective, the individual consent or ratification of
the workers or employees involved must shown. Neither the
officers nor the majority of the union had any authority to
waive the accrued rights pertaining to the dissenting minority
members” General Rubber and Footwear Corporation vs
Drilon 169SCRA 808
 When it comes to individual benefits accruing to members of
a union from a favorable final judgment of any court, the
members themselves become the real parties in interest and it
is for them, rather than for the union, to accept or reject
 individually the fruits of litigation. Esso Philippines Inc.vs
MME 75 scra 73

 Quitclaims executed by employees may be given effect if the

employer is able to prove the following requisites:

1. The employee executes the deed of quitclaim

voluntarily
2. There is no fraud or deceit on the part of any of the
parties
3. The consideration of the quitclaim is credible and
reasonable and
4. The contract is not contrary to law, public order,
public policy, morals or good customs, or
prejudicial to a third person with a right recognized
by law (Goodrich manufacturing vs Ativo et al. GR
No. 188002, February 1, 2010

6. When to effect compromise agreement

 at any stage of the proceeding whether or not there is already
a final executory judgment.se