1.

The Labor Code of the Philippines

a. Brief History: began in 1968 under Blas Ople to address needs of economic development
and justice.
b. Name of Decree (Art 1) Labor Code of the Philippines PD 442
c. Date of Effectivity (2) 6 mos. After promulgation which was on (May 1, 1974)
therefore, Nov 1, 1974
d. Declaration of Basic Policy (3) Full employment, Equal work opportunity, Security of
Tenure, etc.
e. Construction in Favor of Labor (4) in favor of safety and decent living of the laborer
however, it must be noted that the management also has rights (management
prerogatives)
Reyes v. CA
Dr. Pedrito demanded PhilMalay for separation payment similar to its employees as well as for underpayment of
salary, a new car, life insurance policy, office rentals and legal service costs he incurred. The LA claimed that the
retrenchment of PhilM is valid. NLRC reduced the awards. His appeal was dismissed by CA for failure to attach
position paper, decision by Labor Arbiter and Memorandul of Appeal.
Leniency should be applied. If the rules of procedure are applied very rigidly, justice would be defeated. Labor laws
mandate speedy disposition of cases without sacrificing fundamental requisites of due process
Salinas Jr. v.NLRC
Constant renewals by AG&P of Salinas etc. contracts as cement workers etc. as project based employees but did not
comply with department order which requires them to submit to DOLE the notice and reason of termination upon the
end of the project. It would be prejudicial and would run counter to the constitutional mandate on social justice and
protection to labor
f. Technical Rules not binding (221) Commission and its members and the Labor Arbiters
shall use every and all reasonable means to ascertain the facts in each case speedily and
objectively and without regard to technicalities of law as well as due process.
Huntington Steel Products, Inc. v. NLRC
Complaint for illegal dismissal by Orbase and 11 other employees against Huntington Steel Products was dismissed
due to the lack of a certificate of non-forum shopping required by Circular No. 28-91 with the petitioners commenting
that the complaint was a mere scrap of paper.
Labor cases must be supported by evidence. Disregarding technical rules of procedure will not sacrifice the
fundamental requisites of due process ALSO the complaint form supplied by the LA were just filled up by them and
therefore, respondents should not be faulted.
CA ruled that technical rules shall not be applied strictly if the result would be detrimental to the working man
REMEDIED BY A POSITION PAPER.
Industrial Timber Corp v. Ababon (2 petitions are consolidated as one)
Industrial Plywood Group Corporation did not continue to lease the plant to ITC (herein petitioner) which led to ITC
to close its operations. ITC posted a final notice of closure of business and asked its workers to collect the benefits
due them. Ababon is one of the 387 workers laid off due to the plants shutdown and thus he and 96 of his co-
workers filed a case of illegal dismissal. LA required (1/2 mo) separation pay, reinstatement etc. ITC filed with the
NLRC who reinstated the LAs decision. Ababon filed with the SC and was referred to the CA which ruled that
retrenchment was valid because of proof on non-renewal of license HOWEVER, ITC did not properly notify its
employees (1 month before) 50k as damages was awarded.
ITC: they were 3 days late in filing the MoR and thus, CA cannot validly overturn NLRCs decision. Apply liberality in
applying technical rules. Substantial Justice is best served by allowing the petition for relief despite the procedural
defect of PETITIONERS of filing the motion for reconsideration 3 days late INJUSTICE TO EMPLOYER.
Art 218 (c), LC: it is within power of commission to correct, amend, or waive any error, defect or irregularity
whether in substance or in form
g. Rules and Regulations or Limitation (5)
- Department of Labor and Employment shall promulgate necessary regulations which shall have the force of
law and is entitled to great respect + ANY OTHER (TO ADMINISTER, ENFORCE AND IMPLEMENT)
- EXCEPT if its in the excess of authority
Kapisanan ng mga manggagawang Pinagyakap v. NLRC
The negotiated daily wage increase of P. 1.33 could be credited to and deducted from the P60/monthly living
allowance which in effect, nullified the P 1. 33 increase. The LA ruled according to Sec 1(k) of the Labor departments
rules implementing PD 1123 (made to protect wages against inflation) which exempts those that have granted the
60-peso monthly allowance from paying for anything extra. ALL DOUBTS SHALL BE RESOLVED IN FAVOR OF LABOR.
In the Philippine Apparel case, this paragraph was already declared void for contravening the statutory authority
granted to the secretary of Labor., Due to facts as well as the ruling with regard to dismissal for lack to serve a
Memorandum of Agreement as being inconsistent with the requirement of social justice to terminate employee of his
employment on a mere technicality, the petition is granted
h. Applicability (6) All rights and benefits granted to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all workers, whether agricultural or nonagricultural.
276: Government employees. The terms and conditions of employment of all government
employeesshall be governed by the Civil Service Law, rules and regulationsHowever, there shall be no reduction
of benefits and other terms and conditions of employment being enjoyed by them at
the time of the adoption of this Code.
Consti Art IX- B Sec (2) 1: The civil service embraces all branches, subdivisions, instrumentalities, and agencies of
the Government, including government-owned or controlled corporations with original charters.
PNOC Energy Development Corp v. NLRC
Danilo Mercado was dismissed for alleged acts of dishonesty (negotiating cost then pocketing the money)
1. The decision was made when the 1987 constitution was in effect and not the 1973 constitution therefore it is
already the Labor Code and not the Civil Service Decree that it in effect. The test is the manner of its creation, those
under the civil service law, CS. Those created under the General Corporation Law, are under the Labor Code. ALSO
case arose in 1973 but it was promulgated on July 1987, therefore under the 1987 constitution.
2. Also, there was no evidence of the alleged violations, in fact the testimony as well as the explanations provided by
Mercados affidavit is satisfactory for the Labor Arbiter.
i. Enforcement and sanctions
217 a Labor Arbiters Jurisdiction
128 Visitorial and enforcement power.
129 Recovery of wages, simple money claims and other benefits.
288 Penalties.
289 Who are liable when committed by other than natural person.
290 Offenses.
291 Money claims
292 Institution of Money claims
Art III Constitution
Sec 11 Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any
person by reason of poverty.
16 All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.
2. Work Relationship
a. Definition
97
a: person- individual, partner etc
B: employer person acting directly or indirectly in interest of employer
167
c: employee employed by employer
F: employer employing employee
G: employee compulsorily covered by GSIS
H: person - any individual, partnership, firm, association, trust, corporation or legal representative thereof.
212
e: employer acting in the interest of employer
F: employee: in employ of employer even those whose work has ceased given unfair labor practices.