San Beda College of Law: Book Five

San Beda College of Law
MEMORY AID IN LABOR LAW

1. defect which is congenital or
acquired during minority
2. legitimate spouse living with the
employee
3. the parents of said employee wholly
dependent upon him for regular
support
BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there
are not primary beneficiaries
3. in no case shall the total benefit be
less than P1,000.00
BENEFICIARIES
PRIMARY BENEFICIARIES
!. dependent spouse until he
remarries
". dependent children #legitimate,
legitimated, natural born or legally
adopted$
SECONDARY BENEFICIARIES
!. illegitimate children and legitimate
descendants
". parents, grandparents,
grandchildren
TITLE III
MEDICARE
(Repealed by National Health Insurance
Act of 1995)
(See annex for PHILHEALTH)
PAG-IBIG Law% creates a provident
savings system for employees, public and
private, with housing as the primary
investment.
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART. 211. DECLARATION OF
POLICY
LABOR RELATIONS the interactions
between the employer and employees
and their representatives and the
mechanism by which the standards and
other terms and conditions of
employment are negotiated, ad&usted
and enforced.
LABOR RELATIONS LAW those
intended to stabili'e the relations of
employees and their employers, ad&ust
differences between them through the
encouragement of collective bargaining,
and settle labor disputes through
conciliation, mediation and arbitration.
it defines the status, rights, and
duties and the institutional
mechanisms that govern the
individual and collective
interactions of employers,
employees or their
representatives.
!bsent an employer%employee
relation, there is no labor
relations to spea( of.
- )ollective bargaining process is
possible only when there is a labor
organi'ation, i!e., #1$ labor union
or #2$ employee association.
POLICY is intended to install industrial
democracy centered on collective
bargaining, leading to social &ustice as
the end goal.
PARTIES TO LABOR RELATIONS CASES:
1. employee*s organi'ation,
2. management, and
3. the public
+he public is always to be
considered in disputes between
labor and capital, and it has
been held that the ri!"# $% "!&
&'&ra( )*+(i, ar& )ara-$*'".
La+$r r&(a"i$'# )$(i,. *'/&r "!& LC i#
&-+$/i&/ i' S&,"i$' 0 Ar"i,(& 1III $%
"!& 1234 C$'#"i"*"i$' which guarantees
to all wor(ers their right among others
to,
LABOR LAW COMMITTEE
CHAIRPERSON: Francis Benedict Rotutar ASSISTANT CHAIRPERSON: Juanito Lim, Jr S!BJECT HEA"S: Aimee Rose##e
Sa$i#a#a%La$or Standards&, E#sa 'i##a(or%La$or Re#ations&, )aria Fe Taa# %S*ecia# La+s& E"P: F#ora S,err- Bas.uiez
ASST E"P/S: Jenni0er Trinidad, )a Jasmine Isi*, Emi# Bien On12i2o, 3areen Fa-e Pio.uinto
1. -elf%organi'ation,
2. )ollective bargaining and
negotiations,
3. Peaceful and concerted activities
including the right to stri(e in
accordance with law, and
.. Participate in policy and
decision%ma(ing processes
affecting their rights and
benefits as may be provided by
law.
ART. 212. DEFINITIONS
EMPLOYER% one who employs the
services of others/ one for whom
employees wor( and who pays their
wages or salaries.
any person acting in the interest of an
employer, directly or indirectly. +he
term does not include a labor
organi'ation or any of its officers and
agents, E1CEPT when acting as an
employer.
EMPLOYEE- one who wor(s for an
employer/ a person wor(ing for salary or
wages.
-hall not be limited to the
employees of a particular
employer, and it shall include
any individual whose wor(
has ceased as a result of or in
connection with any current
labor dispute or because of any
unfair labor practice IF he has
not obtained any other,
1. -ubstantially equivalent
and
2. 0egular employment
#!rt.212f$

ICAWO 5#. CIR 617 SCRA 8729: +he
category of 1any employee2 is so broad
as to &ustify employee status for
supervisors, regular wor(ers, casual
employees, emergency laborers,
substitute wor(ers, seasonal wor(ers,
part%time wor(ers and other special
wor( groups.
APE1 MINING CO.: 5#. NLRC 6127 SCRA
2819: 3aundrywoman not actually
serving the family of the employer but
wor(ing in the staff houses or within the
premises of the employer*s business is a
regular employee and is not included in
the definition of domestic helper.
FELI1 5#. B;ENASEDA 62<= SCRA 1029:
0esidency or resident physician position
in a medical specialty is not employment
but connotes training and temporary
status. #4o 5%5 relationship$
WORKER>S ASSOCIATION % any
association of wor(ers organi'ed for the
mutual aid and protection of its
members or for any legitimate purpose
other than for collective bargaining.
INDEPENDENT ;NION 6 7t refers to any
labor organi'ation operating at the
enterprise level whose legal personality
is derived through an independent action
for registration with the "ureau of 3abor
0elations #"30$ of the 8epartment of
3abor and 5mployment prescribed under
!rt. 23.. 7t may be affiliated with a
federation, national or industry union, in
which case it may also be referred to as
an affiliate.
FEDERATION % any labor organi'ation
with at least 10 locals9chapters or
affiliates each of which must be a duly
certified or recogni'ed as the sole and
e:clusive collective bargaining agent of
the employees of an appropriate
bargaining unit.
LEGITIMATE WORKER>S ASSOCIATION 6
refers to an association of wor(ers
organi'ed for mutual aid and protection
of its members of for any legitimate
purpose other than collective bargaining
registered with the 8epartment in
accordance with 0ule 777, -ections 2%)
and 2%8 of these rules.
LABOR MANAGEMENT CO;NCIL
- 8eals with the employer on
matters affecting the employee*s
rights, benefits and welfare.
- Purposes are to,
a. promote gainful employment
b. improve wor(ing conditions and
c. achieve increased productivity
#0! 6;<1$
LABOR LAW COMMITTEE
LABOR ORGANI?ATION = any union or
association of employees which e:ists in
whole in part for the purpose of
collective bargaining with employers
concerning terms and conditions of
employment.
LEGITIMATE LABOR ORGANI?ATION-
any labor organi'ation which is duly
registered with the 8epartment of 3abor.
+he term includes a local9chapter of the
"ureau of 3abor 0elations directly
chartered by a legitimate federation or
national union which has been duly
reported to the 8epartment in
accordance with 0ule >7, -ection 2 of
"oo( > of the 0ules 7mplementing the
3).
LABOR DISP;TE 6 includes any
controversy or matter concerning,
1. terms or conditions of employment
OR
2. the association or representation of
persons in negotiating, fi:ing,
maintaining, changing or arranging
the terms and conditions of
employment
REGARDLESS of whether the disputants
stand in the pro:imate relation of
employer and employee.
+he test
of whether a labor controversy comes
within the definition of a labor dispute
depends on whether it involves or
concerns terms, conditions of
employment, or representation.
TYPES OF LABOR DISP;TES:
1. 3abor -tandards 8isputes
a. )ompensation ?e!"!#
underpayment of minimum
wage/ stringent output quota/
illegal pay deductions@
b. "enefits ? e.g., nonpayment of
holiday pay, overtime pay or other
benefits@
c. Aor(ing conditions ?e.g., unrectified
wor( ha'ards@
2. 3abor 0elations 8isputes
a. Brgani'ational right dispute9
unfair labor practice ?e!"!#
coercion, restraint or
interference in unioni'ation
efforts/ reprisal or discrimination
due to union activities/ company
unionism@
b. 0epresentation disputes ?e!"!#
determination of the collective
bargaining unit/ C3P stri(e/
uncertainty as to determination
of the sole and e:clusive
bargaining agent of the
employees in an appropriate
bargaining unit which is the
ma&ority union@
c. "argaining disputes ?e!"!# refusal
to bargain #C3P$/ bargaining
deadloc(/ economic stri(e or
loc(out@
d. )ontract administration or
personnel policy disputes ?e!"!#
noncompliance with )"!
provisions #C3P if gross
noncompliance with economic
provisions$/ disregard of
grievance machinery/ violation
no stri(e9no loc(out agreement@
e. 5mployment tenure disputes
?e!"!# non regulari'ation of
employees/ illegal termination/
non%issuance of employment
contract@
PARTIES TO A DISP;TE:
1. PRIMARY PARTIES 6 employer,
employees, union
2. SECONDARY PARTIES 6 voluntary
arbitrator, agencies of 8B35 #"30,
>!)$, 430), -ec. of 3abor, Bffice of
the President
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION
C@APTER I
CREATION AND COMPOSITION
ART. 210. NATIONAL LABOR
RELATIONS COMMISSION
NLRC an administrative body with
quasi%&udicial functions and the principal
government agency that hears D decides
LABOR LAW COMMITTEE
labor%management disputes/ attached to
the 8B35 for program D policy
coordination only.
POWERS $% "!& NLRC as amended by
0.!. 6<1
EN BANC
1. Promulgating rules D
regulations governing the
hearing D disposition of cases
before any of its divisions and
regional branches and
formulating policies affecting
its administration and
operations.
2. Cnder 0.!. <<00, to allow cases
within the &urisdiction of any
division to be heard and
decided by any other decision
whose doc(et allows the
additional wor(load.
DIVISION

1. 5:ercises ad&udicatory or
appellate power over decisions
of 3abor !rbiters and 0egional
8irectors of the 8B35 over
monetary claims not over
P,000.00 and all other powers,
functions and duties through its
divisions.
TRIPARTISM
+he 430) is composed of five #$
divisions.
+hree #3$ sectors are
represented in the composition
of the 430).
5ach division composed of three
commissioners will have
representatives from the
following,
1. %r$- "!& )*+(i, #&,"$r%
nominated by the -ecretary
of 3abor
2. w$rA&r# $ra'iBa"i$'#-
nominated by the labor
federation
3. &-)($.&r a'/
-a'a&-&'" #&,"$r%
nominated by the 5mployer*s
)onfederation of the
Philippines #5)BP$
C;ALIFICATIONS OF T@E C@AIRMAN AND
T@E COMMISSIONERS:
1. must be a member of the
Philippine "ar/
2. must have been engaged in the
practice of law in the Philippines
for at least 1 years/
3. must have e:perience or
e:posure in handling labor
management relations for at
least years/ and
.. preferably a resident of the
region where he is to hold
office.
+he appointment of the )hairman
and the )ommissioners of the 430)
are not sub&ect to confirmation by
the )ommission on !ppointments.
C;ALIFICATIONS OF E1EC;TIVE
LABOR ARBITERSDLABOR ARBITERS:
1. must be members of the
Philippine "ar/
2. must have been engaged in the
practice of law in the Philippines
for at least < years/ and
3. must have e:perience or
e:posure in handling labor
management relations for at
least 3 years.
TERM OF OFFICE OF T@E C@AIRMAN:
COMMISIONERS: AND LABOR ARBITERS:
+hey shall hold office during good
behavior until they reach the age of
6 unless removed for causes as
provided by law or become
incapacitated to discharge the
function of his office.
A. E1CL;SIVE AND ORIGINAL
E;RISDICTION OF T@E NLRC:
LABOR LAW COMMITTEE
1. )ases certified to it for compulsory
arbitration by the -ecretary of 3abor
under !rt. 263 6 CERTIFIED )!-5-/
2. INE;NCTION )!-5- under !rt. 21E
and 26./ !48
0. CONTEMPT CASES
B. E1CL;SIVE APPELLATE E;RISDICTION
OF T@E NLRC:
1.)ases DECIDED BY LABOR
ARBITERS under !rt 21<b of the
3abor )ode and -ec 10 0!
E012#Figrant Aor(ers !ct$/ and
2.)ases DECIDED BY T@E REGIONAL
OFFICES OF DOLE IN T@E E1ERCISE
OF ITS ADE;DICATORY F;NCTION
under !rt 12; of the 3abor )ode over
monetary claims of wor(ers
amounting to not more that
P,000.00
T@E NLRC ONLY SITS EN BANC
FOR P;RPOSES OF:
a. )r$-*(a"i' r*(&# a'/ r&*(a"i$'#
governing the hearing and disposition of
cases before any of its divisions and
regional branches, and
b. %$r-*(a"i' )$(i,i&# affecting its
administration and operations.
+he )ommission may only sit
en banc for the /&"&r-i'a"i$'
$% )$(i,i&# a'/ NOT %$r
)*r)$#&# $% a/F*/i,a"i$'. #0!
6<1$
!d&udication of cases certified
to the 430), or appealed to it
from the decision of its 3abor
!rbiters are referred to and
decided by its five #$ divisions.
-P&"i"i$'# %$r ,&r"i$rari 6R*(& 789
aai'#" /&,i#i$'# $% "!& NLRC #!$*(/
!&',&%$r"! +& i'i"ia((. %i(&/ wi"! "!&
C$*r" $% A))&a(# in strict observance of
the doctrine on the hierarchy of courts
as the appropriate forum for the relief
desired. +he )ourt of !ppeals is
procedurally equipped to resolve unclear
or ambiguous factual finding, aside from
the increased number of its component
divisions. (St! $artin%s &uneral Ho'es
(s! N)R*+ ,!R! No! 1-./00)
- Gindings of facts of a labor tribunal
are accorded the utmost respect by the
courts and are well%nigh conclusive if
supported by substantial evidence.
- 3abor cases are '$" #*+F&," "$
Bara'a. C$',i(ia"i$' since ordinary
rules of procedure are merely suppletory
in character vis%H%vis labor disputes
which are primarily governed by labor
laws.
- +he failure of the petitioner to
file a motion for reconsideration of the
decision of 430) before filing a petition
for certiorari has in certain instances
been held not to be a fatal omission.
- 7n certain cases however the
filing of a Fotion for 0econsideration is
deemed a condition sine qua non for the
filing of a Petition for )ertiorari.
C@APTER II
POWERS AND D;TIES
ART. 214. E;RISDICTION OF
LABOR ARBITERS AND T@E COMMISSION
E1CL;SIVE AND ORIGINAL
E;RISDICTION OF LABOR ARBITERS:
- EG,&)" as otherwise provided
under this )ode the 3abor !rbiters
shall have original and e:clusive
&urisdiction to hear and decide, within
30 calendar days after the submission of
the case by the parties for decision
without e:tension, even in the absence
of stenographic notes, the following
cases involving a(( w$rA&r#: w!&"!&r
ari,*("*ra( $r '$'-ari,*("*ra(:
1. ;LP cases/
2. TERMINATION disputes/
3. 7f accompanied WIT@ A
CLAIM FOR REINSTATEMENT:
those cases that wor(ers may
file involving wages, rates of
LABOR LAW COMMITTEE
pay, hours of wor( and other
terms and conditions of
employment/
.. )laims for actual, moral,
e:emplary and other forms of
DAMAGES arising from employer%
employee relations/
. CASES ARISING FROM ANY
VIOLATION OF ART 27< of this
)ode, including questions
involving the legality of stri(es
and loc(outs/
6. 5:cept claims for 5mployees
)ompensation, -ocial -ecurity,
Fedicare and maternity
benefits, ALL OT@ER CLAIMS
ARISING FROM EMPLOYER-
EMPLOYEE RELATIONS, including
those of persons in domestic or
household service, involving an
amount e:ceeding P,000.00
regardless of whether
accompanies with a claim for
reinstatement/
<. MONETARY CLAIMS OF
OVERSEAS CONTRACT WORKERS
under the Figrant Aor(ers !ct of
1;;/ and
E. )laims of employees against
IB))s i% "!& (a""&r /$&# '$"
!a5& a' $rii'a( ,!ar"&r and has
been incorporated under the
)orporation )ode.
!lthough the provision spea(s of
5J)3C-7>5 !48 B07I74!3
KC07-87)+7B4 BG labor arbiters,
the cases enumerated may
instead be submitted to a
voluntary arbitrator by
agreement of the parties under
!rt. 262. +he law prefers
voluntary over compulsory
arbitration.
Ca#&# w!i,! -*#" +& /i#)$#&/ $%
+. "!& (a+$r ar+i"&r +. r&%&rri' "!&
#a-& "$ "!& ri&5a',& -a,!i'&r. a'/
5$(*'"ar. ar+i"ra"i$':
a. 8isputes on the
interpretation or implementation of
)"! and

b. those arising from the
interpretation or enforcement of
company personnel policies.
+he labor arbiter and the 430) have
no &urisdiction over claims filed by
employees against international
agencies such as 7007, ALB etc.
unless they e:pressly waive their
immunity. #)asco (s! 1NR&NR2)

+hey also have no &urisdiction over
illegal dismissal cases of corporate
officers which fall under P8 ;02%!
and now fall under the &urisdiction of
the 0egular )ourts pursuant to the
4ew -ecurities 0egulation )ode.
?Gormerly under the &urisdiction of
the -ecurities and 5:change
)ommission #-5)$ #8ily%8aly 4a(pil
vs 430)$@
LABOR LAW COMMITTEE
7n the absence of service of
summons or a valid waiver
thereof, the hearings and
&udgment rendered by the labor
arbiter are null and void.
COMP;LSORY ARBITRATION: +he
process of settlement of labor disputes
by a government agency which has the
authority to investigate and ma(e and
award binding to the parties.
+he 430) may conduct compulsory
arbitration only in national interest cases
referred to it by the 8B35 secretary.
3abor arbiters* &urisdiction is
employment related.
ART. 213. POWERS OF T@E
COMMISSION
POWERS OF T@E NLRC:
a. 0
ule%ma(ing power ?promulgation
of rules D regulations governing
disposition of cases before any of
its divisions9regional offices@
b. P
ower to issue compulsory
processes ?administer oaths,
summon parties, issue
subpoenas@
c. Power to investigate matters and
hear disputes within its
&urisdiction ?ad&udicatory power
=original D appellate
&urisdiction over cases@
d. )ontempt power ?21E@
e. Power to issue in&unctions and
restraining orders
PROCED;RE FOR T@E ISS;ANCE
OF RESTRAINING ORDERD INE;NCTION:
a. filing of a verified PETITION
b. @EARING AFTER D;E AND PERSONAL
NOTICE has been served in such manner
as the )ommission shall direct, to,
a. all (nown persons against
whom the relief is sought and
b. also to the )hief 5:ecutive
or other public officials of the
province or city within which the
unlawful acts have been
threatened or committed
charged with the duty to protect
the complainant*s property.
c. RECEPTION AT T@E @EARING OF
T@E TESTIMONIES OF WITNESSES
with opportunity for cross%
e:amination, in support of the
allegations of the complaint made
under oath as well as testimony in
opposition thereto
d. FINDING OF FACT of the )ommission
to the effect that ,
prohibited or unlawful acts
have been threatened and will
be committed, or have been
committed and will be
continued unless restrained,
but no in&unction or temporary
restraining order shall be
issued on account of any
threat, prohibited or unlawful
act, e:cept against the
persons, association or
organi'ation ma(ing the threat
or committing the prohibited
or unlawful act or actually
authori'ing or ratifying the
same after actual (nowledge
thereof.
+hat substantial and
irreparable in&ury to the
complainant*s property will
follow
+hat as to each item of
relief to be granted, greater
in&ury will be inflicted upon
complainant by the denial of
the relief than will be inflicted
upon the defendants by the
granting of the relief
+hat complainants has no
adequate remedy at law
+hat public officers charged
with the duty to protect
complainant*s property are
unable or unwilling to furnish
adequate protection.
e. Posting of a BOND
IRREPARABLE INE;RY: !n in&ury
which cannot be adequately
compensated in damages due to the
LABOR LAW COMMITTEE
nature of the in&ury itself or the nature
of the right or property in&ured or when
there e:ists no pecuniary standard for
the measurement of damages.
ADEC;ATE REMEDY: Bne that
affords relief with reference to the
matter in controversy and which is
appropriate to the particular
circumstances of the case.
+he power of the 430) to en&oin or
restrain the commission of any or all
prohibited or unlawful acts under !rt.
21E of the 3abor )ode can only be
e:ercised in a labor dispute.
REC;ISITES BEFORE TRO MAY BE
ISS;ED E1 PARTE:
1. +he complainant shall ALLEGE
T@AT, unless a 3R4 is issued
5ithout notice# a substantial
and irreparable in6ury to
co'plaint%s property 5ill be
una(oidable/
2. TESTIMONY ;NDER OAT@ is
sufficient, if sustained, to &ustify
the )ommission in issuing a
temporary in&unction upon
hearing after notice/
3. +he complainant shall first FILE
AN ;NDERTAKING WIT@
ADEC;ATE SEC;RITYDBOND in
an amount to be fi:ed by the
)ommission sufficient to
recompense those en&oined for
any loss, e:penses or damage
caused by the improvident or
erroneous issuance of such order
or in&unction, including all
reasonable costs, together with
a reasonable attorney*s fee, and
e:pense of defense against the
granting of any in&unctive relief
sought in the same proceeding
and subsequently denied by the
)ommission.
+he +0B shall be effective
for no longer than 20 days and shall
become void at the e:piration of
said 20 days counted from the date
of the posting of the bond.
7t may be lifted or it may be
upgraded to a permanent in&unction.
+he procedural and
substantial requirements of !rt 21E
#e$ must be strictly complied with
before an in&unction may issue in a
labor dispute.
T@E FOLLOWING CAN ISS;E
INE;NCTIONSD TRO IN LABOR DISP;TES:
1. President #!0+. 263, g$
2. -ecretary of 3abor #!0+. 263, g$
3. 430) #21E$
.. 3abor !rbiters #!0+. 21<90C35 J7
-ec. 1 of 70D0$
. 0egional 8irectors
6. Fed% !rbiters
ART. 212. OC;LAR INSPECTION
+he )hairman, any )ommissioner,
labor !rbiter or their duly authori'ed
representatives may, at anytime during
wor(ing hours,
a. )onduct an ocular inspection on
any establishment, building,
ship, place or premises,
including any wor(, material,
implement, machinery,
appliance or any ob&ect therein/
and
b. !s( any employee, laborer, or
any person as the case may be
for any information or date
concerning any matter or
question relative to the ob&ect
of the investigation
ART. 221. TEC@NICAL R;LES NOT
BINDING AND PRIOR RESORT TO
AMICABLE SETTLEMENT
+he 430) may disregard technical
rules of procedure in order to give life to
the constitutional mandate affording
protection to labor. (7rincipe (s!
7hilippine8Sin"apore 3ransport Ser(ices
Inc!)
RES E;DICATA applies only to
&udicial or quasi%&udicial proceedings and
4B+ to the e:ercise of administrative
powers.
APPROVAL OF AN AMICABLE
SETTLEMENT BY A LABOR ARBITER
LABOR LAW COMMITTEE
!n amicable settlement of a labor
dispute should be approved by the labor
arbiter before whom the case is pending
after being satisfied that,
a. it was >B3C4+!073M 54+5058 into
by the parties and
after having 5JP3!7458
+B +L5F +L5 +50F- !48
)B4-5NC54)5- thereof.
P;RPOSE, for the employee*s
protection=because the labor arbiter
before whom the case is pending would
be in a better position than &ust any
other person to personally determine the
voluntariness of the agreement and
certify its validity (7eri9uet (s! N)R*)!
+he 0ules of )ourt are applied in a
suppletory character.
COMPROMISE, as a way of settling
disputes is encouraged
through compromise, the
parties, by ma(ing reciprocal
concessions, avoid litigation
or put an end to one already
commenced.
ART. 222. APPEARANCES AND
FEES
APPEARANCE OF NON-LAWYERS
BEFORE T@E COMMISSION:
GENERAL R;LE: B43M lawyers can
appear before the 430) or a 3abor
!rbiter
E1CEPTIONS: 4on%3awyers can
appear B43M in the following instances,
1. if they represent
themselves/
2. if they represent their
organi'ation or members
thereof/ or
3. if he is a duly accredited
member of the legal aid office
duly recogni'ed by the 8BK in
cases referred thereto by the
latter or by the 7"P.
ATTORNEY>S FEES:
1. !rt. 111 3abor )ode #simple
monetary claim$
+he ma:imum amount to be
given a lawyer for his legal
assistance rendered which is 10O of
the total monetary award ad&udged
the employees e:cluding the award
for moral and e:emplary damages.
+o demand more than this is
unlawful.
2. !rt. 222
a. !ttorney*s fees for )"!
negotiations and conclusion shall
be in the amount agreed upon by
the parties to be ta(en from the
union funds and not from
individual union members.
b. +his article prohibits the
payment of attorney*s fees only
where the same is effected
through forced contributions
from the wor(ers form their own
funds as distinguished from
union funds.
c. 4either the lawyer nor the
union itself may require the
individual wor(ers to assume the
obligation to pay the attorney*s
fees from their own poc(ets.
!ny agreement to the contrary
shall be null and void.
ARTICLE 211 VS ARTICLE 222
ART. 211 ART. 222
Prohibits the
award of attorney*s
fees which e:ceed
10O of the amount
of wages
recovered.
Prohibits the
payment of
attorney*s fees only
when it is effected
through forced
contribution from the
wor(ers from their
own funds as
distinguished from
union funds
P;RPOSE: to
fi: the limit on the
amount of
attorney*s fees.
+he victorious
party may recover
in any
P;RPOSE: to
prevent the
imposition on the
wor(ers of the duty
to individually
contribute their
respective shares in
LABOR LAW COMMITTEE
San Beda College of Law 10
administrative or
&udicial
proceeding.
the fee to be paid to
the attorney for his
services to the union.

C@APTER III
APPEAL
ART. 220. APPEAL
GRO;NDS FOR APPEAL:
1. 7f there is prima facie evidence
of abuse of discretion on the part of
the 3abor !rbiter
2. 7f the decision, order or award
was secured through fraud or
coercion, including graft and
corruption/
3. 7f made purely on questions of
law/ and
.. 7f serious errors in the findings of
facts are raised which would cause
grave or irreparable damage or
in&ury to the appellant.
PERIODS WIT@IN W@IC@ TO
APPEAL:
!. decisions of the regional director,
within 8 calendar days from
receipt of the order ?12; 3)=
0ecovery of wages and simple
money claims of the amount not
e:ceeding P,000.00@.
". decisions of the labor arbiter,

within 10 calendar days from
the receipt of the decision.
+he appeal must be under oath
and must state specifically the
grounds relied upon and the
supporting arguments.
Ahere the 10th day falls on a
-aturday, -unday or legal
holiday, the appeal may be filed
on the ne:t business day. #0ules
of Procedure of 430)$
PERIOD TO APPEALHNOT
E1TENDIBLE
7t is the policy of the state
to settle e:peditiously labor
disputes.
+he perfection of an appeal
within the statutory9
reglementary period is not
only mandatory but also
&urisdictional and failure to
do so renders the questioned
decision final and e:ecutory
as to deprive the appellate
court of &urisdiction to alter
the final &udgment of the
08s and 3!s. (Aboiti:
Shippin" 2'ployees
Association (s! 3ra6ano)
REC;ISITES FOR T@E PERFECTION
OF AN APPEAL TO T@E NLRC:
1. Giling of A VERIFIED
MEMORAND;M OF APPEAL within
the required period of appeal/
2. 7n case of monetary award, when
the appellee is the employer he
should file an APPEAL BOND
corresponding to the monetary
award e:cluding awards for moral
and e:emplary damages and
attorney*s fees.
Ahere the employer
failed to post a bond to
perfect its appeal, the
remedy of the employee is a
motion to dismiss the
appeal, 4B+ a petition for
mandamus.
+he intention of the
lawma(ers is to ma(e the
bond an indispensable
requisite for the perfection
of an appeal by the
employer.
3. !ppeal fee of P10/
.. Proof of service % furnish the
other party with a copy of the
memo of appeal.
Gailure to give a copy of
the appeal to the appellee
within 10 days is not fatal 7G
the latter was not
pre&udiced by the delay in
the service of said copy of
the appeal=technical rules
must yield to the broader
interest of substantial
LABOR LAW COMMITTEE
&ustice. ($odern &ishin"
,ear )abor 1nion (s! Noriel)
! mere notice of appeal
does not stop the running of
the reglementary period of
appeal.
EXECUTION PENDING APPEAL - the
decision of the labor arbiter orderin"
the reinstate'ent of a dis'issed or
separated e'ployee shall be
i''ediately executory insofar as the
reinstate'ent aspect is concerned and
the postin o! an appea" bond b# the
e$p"o#e% sha"" not sta# su&h
e'e&ution(
+here is no need for a
motion for the issuance of
writ of e:ecution on the
reinstatement order as it is
self%e:ecutory. (7ioneer
3exturi:in" *o! (s! N)R*)
Perfection of appeal within the
reglementary period is both MANDATORY
and E;RISDICTIONAL. (A*;A (s N)R*+
<ol=schel (s N)R*)
4on%service of the copy of the
appeal9appeal memorandum to the
adverse party is not a &urisdictional
effect and does not &ustify dismissal of
the appeal.
AMO;NT OF APPEAL BOND: amount
equal to the monetary award e:clusive
of damages #moral and e:emplary$ plus
attorney*s fees.
OPTIONS OF T@E EMPLOYER IN
COMPLYING WIT@ AN ORDER OF
REINSTATEMENT W@IC@ IS IMMEDIATELY
E1EC;TORY:
1. Le can ADMIT T@E DISMISSED
employee bac( to wor( under the
same terms and conditions prevailing
prior to his dismissal or separation $r
to a substantially equivalent position
if the former position is already
filled up, OR
2. Le can REINSTATE T@E
EMPLOYEE MERELY IN T@E PAYROLL
WIT@ PAYMENT OF T@E ACCR;ED
SALARIES.
Gailure to e:ercise one
of the foregoing options may
be compelled under pain of
contempt and the employer
may be made to pay instead
the salary of the employee.
A )&"i"i$' %$r r&(i&% %r$- "!& /&,i#i$'
$% "!& (a+$r ar+i"&r -*#" #"ri,"(.
,$-)(. wi"! 2 r&(&-&'"ar. )&ri$/#:
1. +he petition must be filed within
60 days from (nowledge of the
&udgment/ and
2. +he petition must be filed within
a fi:ed period of 6 months from
entry of such &udgment.
Petitions filed beyond
said period will no longer be
entertained.
APPEAL FROM T@E DECISION OF T@E
NLRC:
N$ (aw a(($w# a' a))&a( from a
decision of the -ecretary of 3abor, or the
430), or of a voluntary arbitrator. 7n
these cases, the #)&,ia( ,i5i( a,"i$' $%
&e%tio%a%i, )r$!i+i"i$' $r $anda$us
under 0ule 6 of the 0ules of )ourt may
be lodged with the )ourt of !ppeals.
(St! $artin%s &uneral Ho'e (s! *A)
4o Fotion for 0econsideration is
allowed for any order, decision
or award of a 3abor !rbiter.
Lowever a Fotion for
0econsideration of a 3abor
!rbiter*s decision, award or
order which has all the elements
of an appeal may be treated as
appeal.
Bnly one Fotion for
0econsideration of the decision,
award or order of the
commission on appealed cases
before it.
ART 22<. E1EC;TION OF
DECISIONS: ORDER: OR AWARDS
+he decision of the -ecretary of
3abor, the )ommission, the "ureau or
0egional 8irector the 3abor !rbiter, the
LABOR LAW COMMITTEE
Fed%!rbiter or the >oluntary !rbitrator
shall be %i'a( a'/ &G&,*"$r. a%"&r 1=
,a(&'/ar /a.# %r$- r&,&i)" "!&r&$% +.
"!& )ar"i&# a'/ #!a(( +& &G&,*"$r.
wi"!i' "&' 61=9 .&ar#.
+he foregoing may, upon its
own initiative or on motion of
any interested party, i##*& a
wri" $% &G&,*"i$' $' a
F*/-&'" wi"!i' 8 .&ar# %r$-
"!& /a"& i" +&,$-&# %i'a( a'/
&G&,*"$r..
!n independent action is
required for the e:ecution of the
final &udgement within the ne:t
of following years > 7hil!
National Rail5ays (s N)R* (1??
S*RA?@.# Sept! 19# 19/9)A
+he immediate e:ecution of
&udgment should be underta(en
only when the monetary award
had been carefully and
accurately determined by the
430) and only after the
employer is given the
opportunity to be heard and to
raise ob&ections to the
computation.
TITLE III
B;REA; OF LABOR RELATIONS
ART. 227. B;REA; OF LABOR
RELATIONS
P*r#*a'" "$ E.O. 127: "!& NATIONAL
CONCILIATION AND MEDIATION BOARD
6NCMB9 !a# a+#$r+&/ "!& ,$',i(ia"i$':
-&/ia"i$' a'/ 5$(*'"ar. ar+i"ra"i$'
%*',"i$'# $% "!& BLR.
Kurisdiction over labor%
management problems or
disputes is also e:ercised by
other offices such as the 8B35
regional offices, and the Bffice
of the -ecretary, 430), PB5!,
BAA!, ---%5)), the regional
wage and productivity boards,
4AP), and even the regular
courts over intra%corporate
disputes.
E1CL;SIVE AND ORIGINAL
E;RISDICTION OF T@E BLR
%to act at its own initiative or upon
the request of either or both parties on
all,
1. INTRA% union conflicts
2. INTER% union conflicts
0. all DISP;TES: GRIEVANCES OR
PROBLEMS ARISING FROM OR
AFFECTING LABOR MANAGEMENT
RELATIONS IN ALL WORKPLACES
W@ET@ER AGRIC;LT;RAL OR NON-
AGRIC;LAT;RAL.
+he parties may however, by
agreement, settle their
differences by submitting their
case to a voluntary arbitrator
rather than ta(ing the case to
the "30.
CASES W@ERE T@E BLR @AS NO
E;RISDICTION:
+hose arising from the
implementation or interpretation of
collective bargaining agreements which
shall be sub&ect of grievance procedure
and9or voluntary arbitration.
INTRA-;NION DISP;TES ) refers to any
conflict between and among union
members, including grievances arising
from any violation of the rights and
conditions of membership, violation of or
disagreement over any provision of the
union*s constitution and by%laws, or
disputes arising from chartering or
affiliation.
MED-ARBITER- an officer in the
regional office or bureau authori'ed to
hear, conciliate, and decide
representation cases or assist in the
disposition of intra or inter%union
disputes.
COVERAGE OF INTERDINTRA-;NION
DISP;TES #-ec. 1 0ule J7 8B .0%03$
a. cancellation of registration of a
labor organi'ation filed by its
members or by any other labor
organi'ation/
LABOR LAW COMMITTEE
b. conduct of election of union and
wor(er*s association
officers9nullification of election
of union and wor(er*s association
officers/
c. audit9accounts e:amination of
union or wor(er*s association
funds/
d. deregistration of )"!/
e. validity9invalidity of union
affiliation or disaffiliation/
f. validity9invalidity of
acceptance9non%acceptance for
union membership/
g. validity9invalidity of
impeachment9 e:pulsion of
union and wor(er*s association
officers/
h. validity9invalidity of voluntary
recognition/
i. opposition to application for
union and )"! registration/
&. violations of or disagreements
over any provision in a union or
wor(er*s association constitution
and by%laws/
(. disagreements over chartering or
registration of labor
organi'ations and )"!s/
l. violations of the rights and
conditions of union or wor(er*s
association membership/
m. violations of the rights of
legitimate labor organi'ations,
e:cept interpretation of )"!s/
n. such other disputes or conflicts
involving the rights to self%
organi'ation, union membership,
and collective bargaining 6
1. between and among
legitimate labor
organi'ations
2. between and among
members of a union or
wor(er*s association
E1TENDED COVERAGE #-ection 2 0ule J7
8B .0%03$
Bther related labor relations
disputes shall include any conflict
between a labor organi'ation and the
employer or any individual, entity, or
group that is not a labor organi'ation or
wor(er*s association. +his includes,
1. cancellation of registration
of unions and wor(ers
associations/ and
2. a petition for interpleader
SPECIAL REC;IREMENTS AS TO T@E
FILING OF CASES:
!. INVOLVING ENTIRE MEMBERS@IP
1.+he complaint must be signed by
at least 30O of the entire
membership of the union and
2.7t must also show e:haustion of
administrative remedies.
". INVOLVING A MEMBER ONLY - 7n such
case only the affected member may
file the complaint.
0edress must first be sought
within the union itself in
accordance with its constitution
and by%laws E1CEPT under any
of the following circumstances,
a. futility of intra%union remedies
b. improper e:pulsion procedure
c. undue delay in appeal as to
constitute substantial in&ustice
d. the action is for damages
e. lac( of &urisdiction of the
investigating body
f. action of the administrative
agency is patently illegal,
arbitrary, and oppressive
g. issue is purely a question of law
h. where the administrative agency
had already pre&udged the
case
i. where the administrative agency
was practically given the
opportunity to act on the case but it
did not.
7mposition of fees by the union
affects the entire membership,
therefore it requires that the
complaint should be signed by at
least 30O of the membership of
the union.
LABOR LAW COMMITTEE
INTER-;NION DISP;TES -refers to any
conflict between and among legitimate
labor organi'ations involving
representation questions for purposes of
collective bargaining or to any other
conflict or dispute between legitimate
labor organi'ations based on any
violations of their rights as labor
organi'ations.
EFFECTS OF FILINGDPENDENCY OF
INTERDINTRA-;NION DISP;TE AND
OT@ER LABOR RELATIONS DISP;TES
#-ection 3 0ule J7 8B .0%03$
% +he rights, relationships and obligations of
the parties litigants against each other and
other parties%in%interest prior to the
institution of the petition shall continue to
remain during the pendency of the petition
and until the date of finality of the decision
rendered therein. +hereafter, the rights,
relationships and obligations of the parties
litigants against each other and other parties%
in%interest shall be governed by the decision
so ordered.
% +he filing or pendency of any inter9intra%
union disputes is not a pre&udicial question to
any petition for certification election and
shall not be a ground for the dismissal of a
petition for certification election or
suspension of proceedings for certification
election.
S;MMARY OF R;LES ON INTRADINTER-
;NION DISP;TES #0ule J7 8B .0%03$
MODES OF APPEAL IN INTRADINTER-
;NION DISP;TES #0ule J7 8B .0%03$
@OW 6%$r-a(
r&I*ir&-&'"#9
1. Cnder oath
2. )onsist of a
memorandum of appeal
3. "ased on either of
the following grounds,
a. Irave abuse of
discretion
b. Iross violation
of the 0ules
.. Aith supporting
arguments and evidence
PERIOD
Aithin 10 days from
receipt of decision
TO W@OM
APPEALABLE
1. "ureau of 3abor
0elations=if the case
originated from the Fed
!rbiter90egional
8irector
2. -ec. Bf 3abor=if the
case originated from the
"ureau
W@ERE FILED
0egional Bffice or to the
"30, where the
complaint originated
#records are transmitted
to the "30 or -ec.
Aithin 2. hours from
receipt of the
memorandum of appeal$
DETERMINATION OF EMPLOYER-
EMPLOYEE RELATIONS@IP:
LABOR LAW COMMITTEE
W@O
1. Gor grounds under -ec. 1,
a. any 33B
b. member#s$ thereof
specially concerned
2. Gor grounds under -ec. 2=any
party%in%interest
W@ERE
FILED
1. 0egional Bffice that issued its
certificate of registration or
certificate of creation of
chartered local% 7f it involves labor
unions 5ith independent
re"istrations, chartered locals,
wor(er*s association, its officers or
members
2. 8irectly with the "ureau=7f it
involves a &ederationBNational
1nionsBIndustry 1nions, its
officers or members
FORMAL
REC;IRE-
MENTS
1. in writing
2. verified under oath
3. contains the following
averments
a. name, address and other
personal circumstances of the
complainant#s$ or petitioner#s$/
b! na'e# address and other
personal circu'stances of the
respondent(s) or person(s)
char"ed+
c. nature of the complaint or
petition/
d. facts and circumstances
surrounding the complaint or
petition/
e. cause#s$ of action or specific
violation#s$ committed/
f. a statement that the
administrative remedies provided
for in the constitution and by%laws
%have been e:hausted or
%such remedies are not
readily available to the
complainant#s$ or
petitioner#s$ through no fault
of his9their own or
%compliance with such
administrative remedies does
not apply to complainant#s$ or
petitioner#s$/
g. relief#s$ prayed for/
h. certificate of non%forum
shopping/ and
i. other relevant matters
- -ince the "30 has the original and
e:clusive &urisdiction to decide,
inter alia# all disputes, grievances or
problems arising from or affecting
labor%management relations in all
wor(places, necessarily, in the
e:ercise of this &urisdiction over
labor%management relations, "!&
M&/-Ar+i"&r !a# "!& a*"!$ri".:
$rii'a( a'/ &G,(*#i5&: "$
/&"&r-i'& "!& &Gi#"&',& $% a'
&-)($.&r-&-)($.&& r&(a"i$'#!i).
($C San Discuits# Inc! (s! )a"ues'a
,!R! No! 9511# EE April 1991)
7n cases where there is
overlapping of &urisdiction,
/&"&r-i'& "!& )ri',i)a( i##*&.
+he agency that has &urisdiction
thereon may decide on the
incidental issues.
ADMINISTRATIVE F;NCTIONS OF T@E
BLR:
1. +he REG;LATION OF
REGISTRATION of the labor unions/
2. +he KEEPING OF A REGISTRY of
labor unions/
3. +he maintenance of a FILE OF
CBAS. !0+. 22<. )BFP0BF7-5
!I055F54+-/ and
.. +he maintenance of a file of all
settlements or final decisions of the
-upreme )ourt, )ourt of !ppeals,
430) and other agencies on labor
disputes.
REC;IREMENTS:
a. must be freely entered into/
b. must not be contrary to law, morals
or public policy/ and
c. must be approved by the authority
before whom the case is pending ?see
discussion on article 221=approval of
labor arbiter of an amicable
settlement in a case before him.
Fay be effected at any stage
of the proceedings and even
when there is already a final
e:ecutory &udgment #20.0 4))$.
)annot be entered into when
the final &udgment is already in
the process of e:ecution.
(Fesal(a (s! Dautista)
FORMAL REC;IREMENTS OF A VALID
COMPROMISE AGREEMENT:
1. in writing
2. signed in the presence of the regional
director or his duly authori'ed
representative.
WIT@ 5#. WIT@O;T ASSISTANCE OF
DOLE-COMPROMISE AGREEMENTS
Wi"!$*" a##i#"a',&
$% DOLE
Wi"! "!&
a##i#"a',& $%
DOLE
a.
VALIDITYDBINDING
EFFECT
% >alid and binding
upon the parties
% >alid and binding
upon the parties
b. REP;DIATION
% )an be
repudiated by the
parties by going to
the )ommission
NOTE* ULP &ases
are not sub6ect to
co'pro'ise.
% )an no longer be
repudiated=
becomes final and
binding upon the
parties upon
e:ecution 5J)5P+
a. in case of non
compliance
with the
compromise
agreement/
or
if there is
prima facie
evidence that the
settlement was
obtained through
fraud,
misrepresentation,
or coercion
OPTIONS W@EN COMPROMISE
AGREEMENT IS VIOLATED:
1. enforce compromise by writ of
e:ecution
2. regard it as rescinded and insist upon
original demand.
REC;IREMENTS OF A VALID
C;ITCLAIM:
1. +he quitclaim must be VOL;NTARILY
ARRIVED at by the parties/
LABOR LAW COMMITTEE
2. 7t must be WIT@ T@E ASSISTANCE of
the "ureau of 3abor -tandards,
"ureau of 3abor 0elations or any
representative of the 8B35/ and
3. +he CONSIDERATION M;ST BE
REASONABLE #required only when
entered without the assistance of
8B35$
8ire necessity is not an
acceptable ground for annulling
the releases, especially in the
absence of proof that the
employees were forced to
e:ecute them. (<eloso (s! ;4)2)
WAIVER OF REINSTATEMENT li(e
waivers of money claims, a waiver of
reinstatement must be regarded as a
personal right which must be
e:ercised personally by the wor(ers
themselves. (Fa" G Ha""ar Feans and
Sports5ear *orp! (s! N)R*)
ART 201. REGISTRY OF ;NIONS
AND FILE OF COLLECTIVE
AGREEMENT
+he )"! is more than a contract,
it is highly impressed with public
interest for it is an essential
instrument to promote industrial
peace.
Fust be filed directly with the
"ureau or the 0egional Bffices of
8B35 within thirty #30$ days
from e:ecution.
!n ;NREGISTERED CBA does not
bar certification election
?contract bar rule will not apply
in the absence of registration.
?-ee discussion on !rts. 23 D
23%!@
0egistration of the )"! is not a
requisite for its validity.
LIBERTY FLO;R MILLS EMPLOYEES 5.
LFM: INC. 13= SCRA 773
+he certification of the )"! by the "30
is not required to put a stamp of validity
to such contract. Bnce it is duly entered
into and signed by the parties, a )"!
becomes effective as between the
parties regardless of whether or not the
same has been certified by the "30.
ART 202. PRO@IBITION ON
CERTIFICATION ELECTION
CONTRACT BAR R;LE: provides that
while a valid and registered )"! is
subsisting for a fi:ed period of years ,
the "ureau is not allowed to hold an
election contesting the ma&ority status
of the incumbent union e:cept during
the si:ty #60$ day period immediately
prior to its e:piration, which period is
called the %r&&/$- period.
+he e:istence of the )"! bars the
holding of an inter%union electoral
contest and the filing of the Petition for
)ertification 5lection e:cept within the
freedom period.
P;RPOSE, to minimi'e union
1politic(ing2 until the proper time
comes.
ART 200. PRIVILEGED
COMM;NICATION
PRIVILEGED COMM;NICATION: !ny
statement of such privacy that the law
e:empts the person receiving the
information from the duty to disclose it.
7nformation and statements made at
conciliation proceedings shall be treated
as privileged communication and shall
'$" +& *#&/ a# &5i/&',& in the
)ommission.
)onciliators and similar officials
may not testify in any court or
body regarding any matters
ta(en up at conciliation
proceedings conducted by them.
LABOR LAW COMMITTEE
San Beda College of Law 1!
TITLE IV
LABOR ORGANI?ATIONS
C@APTER I
REGISTRATION AND CANCELLATION
ART. 20<. REC;IREMENTS OF
REGISTRATION
LABOR ORGANI?ATION - !ny union or
association of employees which e:ists in
whole or in part for the purpose of,
a. collective bargaining $r
b. of dealing with employer
concerning terms and conditions of
employment.
7t is the agent of the
employees of an appropriate
bargaining unit.
PRINCIPLE OF AGENCY APPLIED
Principal 6 employees
!gent 6 local9chapter
!gent of agent 6 federation
LEGITIMATE LABOR ORGANI?ATION $r
LABOR ;NION
any labor organi'ation duly registered
with the 8epartment of 3abor and
5mployment, and "ureau of 3abor
0elations.

4ot every legitimate labor
organi'ation can act as
bargaining representative and be
certified as such. +his is true
only of a union that has won in
certification election or has been
voluntarily recogni'ed by the
employer.
P;RPOSE OF FORMATION OF LABOR
;NIONS: for securing a fair and &ust
wages and good wor(ing conditions for
the laborers/ and for the protection of
labor against the un&ust e:actions of
capital
MODES OF ACC;IRING LEGITIMACY FOR
LABOR ORGANI?ATIONS
1. 0egistration with the "30
#7ndependent Cnion$
2. !ffiliation with a legitimate labor
federation
JREGISTRATION REC;IREMENTS FOR
LABOR ORGANI?ATIONS #as amended by
8B .0%03$@
3. !pplication for registration
.. !ttachments
name of the applicant labor
union, its principal address/
the name of its officers and their
respective addresses/
o appro:imate number of
employees in the bargaining
unit where it see(s to
operate, with a statement
that it is not reported as a
chartered local of any
federation or national union/
o the minutes of the
organi'ational meeting#s$
and the list of employees
who participated in the said
meeting#s$/
o the name of all its members
comprising at least 20O of
the employees in the
bargaining unit/
o the annual financial reports
if the applicant has been in
e:istence for one or more
years, unless it has not
collected any amount from
the members, in which case
a statement to this effect
shall be included in the
application/
o the applicant*s constitution
and by%laws, minutes of its
adoption or ratification, and
the list of the members who
LABOR LAW COMMITTEE
San Beda College of Law 1"
participated in it. +he list of
ratifying members shall be
dispensed with where the
constitution and by%laws was
ratified or adopted during
the organi'ational meeting.
7n such a case, the factual
circumstances of the
ratification shall be recorded
in the minutes of the
organi'ational meeting#s$.
#+hese are called reportorial
requirements$
+he application for registration of
labor unions :::, shall be certified under
oath by its -ecretary or +reasurer, as the
case may be, and attested by its
president.
+he attachments must now be in
one#1$ original copy and two #2$
duplicate copies which shall accompany
the application or notice, and submitted
to the 0egional Bffice or the "ureau.
! prescribed registration fee must be
paid before the issuance of the
certificate of registration
W!&r& "$ %i(& a))(i,a"i$' %$r
r&i#"ra"i$':
1. Gor registration of independent labor
unions, chartered locals, wor(er*s
associations shall be filed with the
0egional office where the applicant
principally operates. 7t shall be
processed by the 3abor 0elations 8ivision
at the 0egional office.
2. !pplications for registration of
federations, national unions or wor(ers*
associations operating in more than one
region shall be filed with the bureau or
the regional offices, but shall be
processed by the bureau.
MINISTERIAL D;TY OF T@E BLR
COMPELLABLE BY MANDAM;S% to
review the application for registration
and not the issuance of a )ertificate of
0egistration.
% !fter a labor organi'ation had filed the
necessary papers and documents for
registration, it becomes mandatory for
the "30 "$ ,!&,A i% "!& r&I*ir&-&'"#
*'/&r Ar"i,(& 20< !a5& +&&' #&/*($*#(.
,$-)(i&/ wi"!. 7f its application for
registration is vitiated by falsification
and serious irregularities, especially
those appearing on the face of the
application and the supporting
documents, a labor organi'ation should
be denied recognition as a legitimate
labor organi'ation. (7ro"ressi(e
;e(elop'ent *orporation87i::a Hut (s!
)a"ues'a et al!# ,R No! 115.??# April
1/# 199?)
P;RPOSE OF REGISTRATION -
0egistration with the "30 is the
$)&ra"i5& a," that gives rights to a labor
organi'ation.
7t is the fact of being registered
with the 8B35 that ma(es a
labor organi'ation legitimate in
the sense that it is ,($"!&/ wi"!
(&a( )&r#$'a(i". "$ ,(ai-
r&)r&#&'"a"i$'a( a'/ +arai'i'
ri!"# enumerated in !rticle 2.2
or to stri(e or pic(et under
!rticle 263.
+he requirement of registration
is NOT a ,*r"ai(-&'" $% "!&
ri!" "$ a##$,ia"i$'. 7t is merely
a condition sine 9ua non for the
acquisition of legal personality
by labor organi'ations,
associations or unions and the
possession of the rights and
privileges granted by law to
labor organi'ations.
! 5a(i/ &G&r,i#& $% )$(i,& )$w&r
since the activities in which
labor organi'ations, associations,
or unions of wor(ers are engaged
affect public interest, which
should be protected. (7A&)1 (s!
Sec! 4f )abor)
FEDERATION% any labor organi'ation
with at least 10 locals9chapters or
affiliates each of which must be duly
certified or recogni'ed as the sole and
e:clusive collective bargaining agent of
the employer they represent.
LABOR LAW COMMITTEE
San Beda College of Law 1#
REC;IREMENTS BEFORE A
FEDERATION CAN BE ISS;ED A
CERTIFICATE OF REGISTRATION:
!side from the application, which
must be accompanied with the
requirements for registration of a labor
registration, the application should also
be accompanied by the following,
1. Proof of a%%i(ia"i$' $% a" (&a#" 1=
($,a(# or chapters, each of which
must be a duly recogni'ed sole and
e:clusive collective bargaining agent
in the establishment or industry in
which it operates, supporting the
registration of such applicant
federation or national union/
2. +he 'a-&# a'/ a//r&##&# $% "!&
,$-)a'i&# w!&r& "!& ($,a(# $r
,!a)"&r# $)&ra"& and the list of all
the members in each company
involved.
A LOCAL ;NION MAY AFFILIATE WIT@ A
FEDERATION - +he procedure of
affiliation would depend on whether the
union is independently registered or not.
REC;IREMENTS OF AFFILIATION #as
amended by 8B .0%03$
1. 0eport of affiliation of
independently registered labor union
2. !ttachments,
a. resolution of the labor union*s
board of directors approving the
affiliation/
b. minutes of the general
membership meeting approving
the affiliation/
c. the total number of members
comprising the labor union and
the names of members who
approved the affiliation/
d. the certificate of affiliation
issued by the federation in favor
of the independently registered
labor union/ and
e. written notice to the employer
concerned if the affiliating union
is the incumbent bargaining
agent.
! union of supervisory employees may
affiliate with a national federation of
labor organi'ations of ran( and file
employees PROVIDED that,
a. the federation is '$" a,"i5&(.
i'5$(5&/ in union affairs in the
company/ and
b. the ra'A a'/ %i(& &-)($.&&# ar& '$"
/ir&,"(. *'/&r "!& ,$'"r$( of the
supervisors
ONCE AFFILIATED, A LOCAL
;NION MAY DISAFFILIATE FROM T@E
FEDERATION.
LABOR LAW COMMITTEE
INDEPENDENTLY
REGISTERED
;NREGISTERED
a.@OW TO
AFFILIATE
-+. #i'i' a ,$'"ra," $%
a%%i(ia"i$'
%by application of the union
with the federation for the
i##*a',& $% a ,!ar"&r
,&r"i%i,a"& to be submitted to
the "ureau accompanied by
the following,
a. )opies of its constitution
and by%laws
b. -tatement of the set of
officers and
"oo(s of accounts, all of
which must be certified by
the -ecretary9+reasurer and
attested to by the President.
7n such case, the union
becomes a local chapter of
the Gederation.
+. EFFECT OF
DISAFFILIATION
TO T@E ;NION
J($,a(K
- w$*(/ '$" a%%&," i"# +&i' a
(&i"i-a"& (a+$r $ra'iBa"i$'
and therefore it would
continue to have legal
personality and to possess all
the rights and privileges of a
legitimate labor organi'ation.
upon severance, it would
cease to be a legitimate labor
organi'ation and would no
longer have legal personality
and the rights and privileges
granted by law to legitimate
organi'ation, unless the local
chapter is covered by a duly
registered collective
bargaining agreement. 7n the
latter case, the local or
chapter will not lose its legal
personality until the
e:piration of the )"!. !fter
the )"! e:pires it will lose its
legal personality unless it
registers as an independent
union.
,. EFFECT OF
DISAFFILIATION
TO T@E CBA
- a' &Gi#"i' CBA w$*(/
,$'"i'*& "$ +& 5a(i/ as the
labor organi'ation can
continue administering the
)"!
+he )"! would continue to be
valid. +he local chapter will
not lose its personality until
the e:piration of the )"!.
!fter the )"! e:pires the
local union looses its
personality, unless it registers
anew.
LABOR LAW COMMITTEE
INDEPENDENT
REGISTRATION
C@ARTERING
Bbtained
by union
organi'ers
in an
enterprise
through
their own
action
! duly
registered
federation9na
tional union
issues a
charter to a
union in an
enterprise
and registers
the charter
with the
regional
office or the
"70.
7ndepen%
dent
union
)hapter9local
Aith legal
personalit
y of its
own
4o legal
personality of
its own as
long as it has
not availed
itself of
independent
registration.
!pplicatio
n for
registratio
n is filed
with and
will be
acted
upon by
the 8B35
regional
office
where the
applicant*
s principal
office is
located.
)harter
certificate is
issued by a
federation or
national
union is filed
with the
regional
office or "30
with 30 days
after the
issuance of
the charter
certificate.
/. ENTITLEMENT
TO ;NION D;ES
AFTER
DISAFFILIATION
%labor organi'ation is &'"i"(&/
"$ "!& *'i$' /*&# and not the
federation from which the
labor organi'ation
disaffiliated.
% *'i$' /*&# -a. '$ ($'&r
+& ,$((&,"&/ as there would
no longer any labor union that
is allowed to collect such
union dues from the
employees.
NoteH &ollo5 the principle of
a"ency bet5een federation
and local!
Principal 6 employees
!gent 6 local9chapter
!gent of agent 6 federation
W@EN TO DISAFFILIATE
GENERAL R;LE* ! labor union may
disaffiliate from the mother union to
form an independent union $'(. /*ri'
"!& 7=-/a. %r&&/$- )&ri$/
i--&/ia"&(. preceding the e:piration of
the )"!.
E1CEPTION: DISAFFILIATION BY
MAEORITY
+his happens when there is a
substantial shift in allegiance on
the part of the ma&ority of the
members of the union. 7n such
a case, however, the )"!
continues to bind the members
of the new or disaffiliated and
independent union up to the
)"!*s e:piration date.
LIMITATION: disaffiliation should be in
accordance with the rules and
procedures stated in the )onstitution
and by%laws of the federation.
! prohibition to disaffiliate in
the Gederation*s constitution or
by%laws is valid=intended for its
own protection.
REVOCATION OF C@ARTER BY T@E
FEDERATION % by serving the
local9chapter a verified notice of
revocation, copy furnished the "ureau on
the ground of disloyalty or such other
grounds as may be specified in its
constitution or by%laws.
+he revocation shall divest the
local chapter of its legal
personality upon receipt of the
notice by the "ureau, unless in
the meantime the local chapter
has acquired independent
registration. #0ule >777 -ection
of the 700$
WORKER>S ASSOCIATION: !ssociation of
wor(ers for the mutual aid and
protection of its members or for any
legitimate purpose other than collective
bargaining.
ART. 207. DENIAL OF REGISTRATIONL
APPEAL
% 8ecisions of the "30 denying the
registration of a labor organi'ation is
appealable to the -ecretary of 3abor
within 1= ,a(&'/ar /a.# %r$- r&,&i)" $%
"!& /&,i#i$', on r$*'/# of,
a. grave abuse of discretion/ or
b. gross incompetence
- even before the onset of the
freedom period, disaffiliation may
still be carried out, but such
disaffiliation must be effected by a
ma&ority of the union members in
the bargaining unit.
decision of the regional office or the
bureau denying the application for
registration shall be,
1. in writing
2. stating in clear terms the reason for
the decision
3. applicant union must be furnished a
copy of said decision
ART. 203. CANCELLATION OF
REGISTRATIONL APPEAL
+he certificate of registration of
any legitimate labor organi'ation shall
be cancelled by the "30 if it has reason
to believe, a%"&r /*& !&ari', that the
said labor organi'ation no lon"er 'eets
one or 'ore of the re9uire'ents
prescribed by la5.
GRO;NDS FOR CANCELLATION:
1. Gailure to comply with any of the
requirements prescribed under
!rts. 23. #requirements for
registration of a labor union$ D
23< #add*l. reqts. federation
registration$ of the )ode.
2. >iolation of any of the provisions
of !rt. 23; #grounds for
cancellation of union
registration$ of the )ode
3. )ommission of any of the acts
enumerated under !rt. 2.1
#rights and conditions of
LABOR LAW COMMITTEE
membership$ of the code% 4o
petition for cancellation based
on this ground 0may be granted
unless supported by at least 30O
of all the members of the
respondent labor organi'ation or
wor(er*s association.
! pronouncement as to
the illegality of the
stri(e is not within the
meaning of !rt. 23; of
the )ode which provides
for the grounds for
cancellation of union
registration.
MODES OF APPEAL
EFFECT OF CANCELLATION OF
REGISTRATION IN T@E CO;RSE OF
PROCEEDINGS
% Ahere a labor union is a party
in a proceeding and later it loses its
registration permit in the course or
during the pendency of the case, such
union may continue as a party without
need of substitution of parties, sub&ect
however to the understanding that
whatever decision may be rendered
therein will be binding only upon those
members of the union who have not
signified their desire to withdraw from
the case before its trial and decision on
the merits. ?Principle of !gency applied=
the employees are the principals, and
the labor organi'ation is merely an agent
of the former, consequently, the
cancellation of the union*s registration,
would not deprive the consenting
member%employees of their right to
continue the case as they are the
considered as the principals@
ART 202. GRO;NDS FOR
CANCELLATION OF ;NION
REGISTRATION
GRO;NDS FOR CANCELLATION OF
;NION REGISTRATION:
A. FRA;D;LENT ACTS
1. Fisrepresentation, Galse statement
or Graud in connection with
JRATIFICATION OF CONSTIDBY-
LAWSK,
a. the !8BP+7B4 B0
0!+7G7)!+7B4 of the
constitution and by%laws or
amendments thereto,
b. the F74C+5- of ratification,
and
c. the 37-+ BG F5F"50- who too(
part in the ratification.
2. Fisrepresentation, false statement
or fraud in connection with the
JELECTION PAPERSK,
a. 535)+7B4 of officers,
LABOR LAW COMMITTEE
DENIAL or CANCELLATION BY:
A. Regional Office
transmit records within 24
hours from receipt of Memo of
Appeal
BUREAU decides within 20
days from receipt of records
SUREME !"UR#$ Rule %&
B. B*r&a*
transmit records within 2.
hours from receipt of memo
of appeal
-5). BG 8B35 decides within
20 days from receipt of
records
-CP05F5 )BC0+% 0ule 6
P!ppeal by memo of appeal
within 10 days from receipt of
notice.
I0BC48-,
1. Irave abuse of discretion
2. >iolation of rules as
amended.
b. F74C+5- of the election of
officer and the list of voters, or
c. failure to submit these
documents together with the list of
the newly elected9appointed
officers and their postal addresses
within 30 days from election
B. INACTION OR OMISSION
1. Gailure to submit the following
documents JRATIFICATION OF
CONSTIDBY-LAWSK,
a. the adoption or ratification of
the constitution and by%laws or
amendments thereto,
b. the minutes of ratification, and
the list of members who too(
part in the ratification
PAithin 30 days from adoption or
ratification of the constitution and
by%laws or amendments thereto.
2. Gailure to submit the !nnual Ginancial
report to the "ureau within 30 days
after the closing of every fiscal year
and misrepresentation, false entries
and fraud in the preparation of the
financial report itself/
3. Gailure to submit a LIST OF
INDIVID;AL MEMBERS of the "ureau
once a year or whenever required by
the "ureau/ and
.. Gailure to comply with the
REC;IREMENTS ;NDER ARTICLES
204.
C. ;NLAWF;L ACTS
1. !cting as a labor contractor or
engaging in the MCABON SYSTEM, or
otherwise engaging in any activity
prohibited by law/
2. 5ntering into collective bargaining
agreements which provide terms and
conditions of employment below
minimum standard established by
law ?CBA-BELOW MINIM;M
STANDARDSK/ #-weetheart
!greements$
3. !s(ing for or ACCEPTING
ATTORNEY>S FEES OR NEGOTIATION
FEES from the employers/
.. Bther than for mandatory activities
under this )ode, chec(ing off special
assessment or any other fees without
duly signed individual written
authori'ation of the members
J;NLAWF;L ASSESSMENTSKL
CANCELLATION OF REGISTRATION
A. FOR:
1. 3egitimate individual labor
union.
2. )hartered local
3. Aor(er*s association
AL505 +B G735
0egional 8irector who has
&urisdiction over the place
where respondent principally
operates #30 days to decide$.
ALB F!M G735
- !ny party in interest, if ground
is,
a. Gailure to comply with any of
the requirements under !rts.
23., 23< and 23E 3)
b. >iolation of any provision under
!rt. 23;, 3)
+a(e note of the cancellation
proceedings if violation is 8 and
K of !rt. 23;, 3)
REPORTING REC;IREMENTS OF LABOR
;NIONS AND WORKERS ASSOCIATIONS
#0ule > 8B .0%03$
% 7t shall be the duty of every legitimate
labor union and wor(ers* association to
submit to the 0egional Bffice or "ureau
which issued its certificate of
registration or certificate of creation of
chartered local, as the case may be, two
#2$ copies of each of the following
documents,
a. any amendment to its
constitution and by%laws and the
minutes of adoption or
ratification of such amendments,
within 30 days from its adoption
or ratification/
b. annual financial reports within
30 days after the close of each
fiscal or calendar year/
c. updated list of newly%elected
officers, together with the
appointive offices or agents who
are entrusted with the handling
of funds, within 30 days after
each regular or special election
of officers, or from the
occurrence of any change in the
LABOR LAW COMMITTEE
officers of agents of the labor
organi'ation or wor(ers
association*
d. updated list of individual
members of chartered locals,
independent unions and wor(ers*
associations within 30 days after
the close of each fiscal year/ and
e. updated list of its chartered
locals and affiliates or member
organi'ations, )"!s e:ecuted
and their effectivity period, in
the case of federations or
national unions, within 30 days
after the close of each fiscal
year, as well as the updated list
of their authori'ed
representatives, agents or
signatories in the different
regions of the country.
R;LES ON ADMINISTRATIVE
CANCELLATION OF CERTIFICATE OF
REGISTRATION OF LLO# D;E TO NON-
COMPLIANCE WIT@ T@E REPORTORIAL
REC;IREMENTS:
W@EN
PROPER
Gailure to comply with its
legal duty to submit the
documents required to
be submitted under 0ule
> of 8B .0%03 for
consecutive years
W@O MAY
FILE T@E
PETITION
1. Fotu propio by the
"ureau
2. !ny party%in%interest
T@REE-
NOTICE
REC;IRE
MENT
1
#"
N$"i,&
"ureau shall send by
registered mail with return
card notice for compliance
indicating the documents it
failed to submit and the
corresponding period in
which they were required,
with notice to comply with
the said reportorial
requirements and to submit
proof thereof to the "ureau
within 10 days from receipt
thereof
2
'/
N$"i,&
Ahere no response is
received by the "ureau
within 30 days from the
release of the 1
st
notice,
another notice for
compliance shall be made
by the "ureau, with warning
that failure on its part to
comply with the reportorial
requirements within the
time specified shall cause
the continuation of the
proceedings for the
administrative cancellation
of its registration
0
r/
N$"i,&
Ahere no response is again
within 30 days from release
of the 2
nd
notice, the "ureau
shall cause the publication
of the notice of cancellation
of registration of the labor
organi'ation in 2
newspapers of general
circulation.
Ahen no response is
within 30 days from the
date of publication or when
the "ureau has verified the
dissolution of the labor
organi'ation, it shall order
the cancellation of
registration of the labor
organi'ation AND cause its
de%listing from the roster of
legitimate labor
organi'ations
C@APTER II
RIG@TS AND CONDITIONS OF
MEMBERS@IP IN A LABOR
ORGANI?ATION
ART. 2<1. RIG@TS AND CONDITIONS
OF MEMBERS@IP IN A LABOR
ORGANI?ATION
GENERAL GRO;PINGS OF T@E RIG@TS
OF T@E ;NION MEMBERS:
LABOR LAW COMMITTEE
B. FOR:
1. Gederations
2. 4ational or 7ndustry unions
3. +rade union centers
AL505 +B G735
- "ureau 8irector # 30 days to
decide$
ALB F!M G735
- Bnly the members of the
3abor Brgani'ation concerned
if grounds are actions
involving violations of !rt.
2.1, sub&ect to the 3;O rule
1. P$(i"i,a( ri!" % the right to vote and
be voted for, sub&ect to lawful
provisions on qualifications and
disqualifications.
2. D&(i+&ra"i5& a'/ D&,i#i$'-MaAi'
Ri!" % the right to participate in
deliberations on ma&or policy
questions and decide them by secret
ballot.
0. Ri!"# O5&r M$'&. Ma""&r# % the
right of the members,
a. against imposition of e:cessive
fees/
b. right against unauthori'ed
collection of contributions or
unauthori'ed disbursements/
c. to require adequate records of
income and e:penses/
d. to access financial records/
e. to vote on officers
compensation/
f. to vote on special assessment/
g. to be deducted a special
assessment only with the
member*s written authori'ation.
<. Ri!" "$ I'%$r-a"i$' % the right to
be informed about,
a. the organi'ation*s
constitution and by% laws,
b. the collective bargaining
agreement, and labor laws.
!ny violation of the above rights
and conditions of membership
shall be a ground for
cancellation of union registration
or e:pulsion of an officer from
office, whichever is appropriate.
!t least 30O of all the members
of the union or any member or
members specifically concerned
may report such violation to the
"ureau.
PERSONS W@O ARE PRO@IBITED FROM
BECOMING MEMBERSDOFFICERS OF A
LABOR ORGANI?ATION ;NDER T@E
LABOR CODE #see also notes under !rt.
2.3 on persons who are not granted the
right to self%organi'ation$:
1. -ubversives or those engaged in
subversive activities ?!rt.2.1
#e$@
2. Persons who have been convicted
of a crime involving moral
turpitude shall not be eligible for
election as union officer or for
appointment to any position in the
union. ?!rt. 2.1 #f$@
7n general, a union is free to
select its own members, and no
person has an absolute right to
membership in a union.
LIMITATIONS ?see discussion on union
security arrangements under !rt. 2.E@:
a. +he labor org. cannot compel
employees to become members of
their labor organi'ation if they are
already member of ri5a( *'i$'.
b. persons mentioned in !rt. 2.1#e$
J#*+5&r#i5&#K of the labor code
are prohibited from becoming a
member a labor organi'ation.
c. members of r&(ii$*# $ra'iBa"i$'
whose religion forbade
membership in labor organi'ation
could not be compelled into union
membership.
REC;IREMENTS IN MAKING SPECIAL
ASSESSMENTS $r OT@ER
E1TRAORDINARY FEES 6Ar". 2<1 J'K9:
1. there must be a WRITTEN
RESOL;TION
2. he resolution must have BEEN
APPROVED BY A MAEORITY of all the
members
0. the approval must be AT A
GENERAL MEMBERS@IP MEETING
D;LY called for that purpose
+he secretary of the
organi'ation shall record the
minutes of the meeting
including,
a.
the list of all members present,
LABOR LAW COMMITTEE
b.
the votes cast, and
c.
the purpose of the assessment or
fees
+he record shall be attested by
the President.
-ubstantial compliance to the
aforementioned procedure is not
enough=the requirements must
be strictly complied with in view
of the fact that the special
assessment will diminish the
compensation of union members.
(7alacol et! al (s! &errer8*alle6a
et! al)
C@ECK-OFF % a method of deducting
from an employee*s pay at prescribed
period, the amounts due to the union for
fees, fines or assessments.
NAT;RE AND P;RPOSE OF C@ECK-OFF:
to facilitate the collection of
dues necessary for the union*s
life and sustenance.
Cnion dues are the lifeblood of
the union.
REC;IREMENTS WIT@ REGARD TO
C@ECK-OFFS 6Ar". 2<1 J$K9:
% 4B special assessment, attorney*s
fees, registration fees or any other
e:traordinary fees may be chec(ed off
from any amount due an employee
A7+LBC+ an i'/i5i/*a( wri""&'
a*"!$riBa"i$' /*(. #i'&/ +. "!&
&-)($.&&.
+he authori'ation should specifically
state the,
a. amount
b. purpose and the beneficiary
of the deduction.
Kurisdiction over chec(%off disputes is
with the 0egional 8irector of the 8B35,
not the 3abor !rbiter
;NION D;ES VS. AGENCY FEE
;NION D;ES AGENCY FEE
a. DED;CTED FROM
% members of a
union for the
payment of union
dues.
% non%members of the
bargaining agent
#union$ for the
en&oyment of the
benefits under the
)"!.
b. CONSENT
% Fay not be
deducted from the
salaries of the union
members without
the written consent
of the wor(ers
affected
% Fay be deducted
from the salary of
employees without
their consent.
!gency fee cannot be imposed on
employees already in the service and are
members of another union. 7f a closed
shop agreement cannot be applied to
them, neither may an agency fee, as a
lesser form of union security, be imposed
to them. (NADAI)1 (s! San $i"uel
Dre5ery Inc)
E1CEPTION TO T@E REC;IREMENT OF
INDIVID;AL WRITTEN A;T@ORI?ATION:
1!Gor mandatory activities provided
under the )ode/ and
E!Ahen non%members of the union
avail of the benefits of the )"!.
- said non%members may be assessed
union dues equivalent to that paid by
members
- only by a "oard 0esolution
approved by ma&ority of the members in
a general meeting called for the purpose
+i"" the e$p"o#ees-$e$be%s o!
anothe% union not be &onside%ed as
!%ee %ide%s,
N$ since when the union bids to be the
bargaining agent, it voluntarily assumes
the responsibility of representing all
employees in the appropriate bargaining
unit.
SPECIAL ASSESSMENT 5#. C@ECK-OFF
SPECIAL
ASSESSMENTS
C@ECK-OFF
LABOR LAW COMMITTEE
a. @OW APPROVED
%by written resolution
approved by ma&ority
of all the members at
a meeting duly called
for that purpose
#Cnion 8ues$
%by obtaining the
individual written
authori'ation duly
signed by the
employee which must
specify,
a. amount
b. purpose and
c. beneficiary of
the deduction.
b. E1CEPTION TO
S;C@ REC;IREMENT
%no e:ception=written
resolution is
mandatory at all
instances.
#!gency Gees$
%not necessary if,
1. Gor mandatory
activities provided
under the )ode/ and
2. Ahen non%members
of the union avail of
the benefits of the
)"!. -aid non%
members may be
assessed agency fees
equivalent to that
paid by members only
by a "oard 0esolution
approved by ma&ority
of the members in a
general meeting called
for the purpose.
C@APTER III
RIG@TS OF LEGITIMATE LABOR
ORGANI?ATIONS
ART. 2<2. RIG@TS OF LEGITIMATE
LABOR ORGANI?ATIONS
RIG@TS OF A LEGITIMATE LABOR
ORGANI?ATION J;SERFOEK:
1.;nderta(e activities for benefit of
members
2.Sue and be sued
3.E:clusive representative of all
employees
..Represent union members
.Furnished by employers of audited
financial statements
6.Own properties
<.5:empted from ta:es
TITLE V
COVERAGE
ART. 2<0. COVERAGE AND
EMPLOYEES> RIG@T TO SELF
ORGANI?ATION
PERSONSDEMPLOYEES ELIGIBLE TO
EOIN A LABOR ORGANI?ATION FOR
P;RPOSES OF COLLECTIVE
BARGAINING:
1. !ll persons employed in commercial,
industrial and agricultural 6CIA9
enterprises, and
2. 7n religious, charitable, medical or
educational 6RCME9 institutions
whether operating for profit or not
PERSONSDEMPLOYEES ELIGIBLE TO
EOIN A LABOR ORGANI?ATION FOR
M;T;AL AID AND PROTECTION
6AIRSIW9:
1. Ambulant,
2. Intermittent,
3. Rural,
.. Self%employed people
. Itinerant wor(ers and
6. Wor(ers without any definite
employers,
PERSONSDEMPLOYEES W@O ARE NOT
GRANTED T@E RIG@T TO SELF-
ORGANI?ATION: 6@EMACEN9
1. @igh%level government employees
#5.B. 1E0 -ec. 3$ #F!4!I507!3
IB>504F54+ 5FP3BM55-$
LABOR LAW COMMITTEE
2. 5mployees of international
organi'ations with immunities (I*$* (s!
*alle6a)
-! Fanagerial employees
whose functions are normally
considered as policy%ma(ing or
managerial
whose duties are of a highly
confidential or highly technical
in nature #212 3)$
@! Fembers of the Armed Gorces of
the Philippines, including police
officers, policemen, firemen and &ail
guards #5.B. 1E0 -ec. .$/
5! Confidential employees
($etrolab (s! *onfesor)
0! Employees of cooperatives who
are members (Den"uet 2lec! *oop!
(s *alle6a)
?! Non%5mployees (Rosario Dros! (s
4ple)
F$r&i'&r# 5a(i/(. w$rAi' i' "!&
P!i(i))i'&# Jwi"! )&r-i" %r$- DOLEK
,a' %$r- (a+$r $ra'iBa"i$'#, provided
the same right to form, &oin or assist in
the formation of labor unions is also
given to Gilipinos in their country of
origin. +his embodies the )ri',i)(& $%
r&,i)r$,i"..
-A. /ECURIT. GUARD/ 0OR- A LABOR
ORGANI1ATION,
YES. Cnder 0! 6<1, they may now
freely &oin a labor organi'ation of the
ran(%and%file or that of the supervisory
union, depending on their ran(. #$eralco
(s! Secretary of )abor)
EXTENT O0 THE RIGHT TO /EL0-
ORGANI1ATION
1. +o form, &oin and assist labor
organi'ations for the purpose of
collective bargaining through
representatives of their own choosing
and
2. +o engage in lawful concerted
activities for the same purpose% for
their mutual aid and protection.
ART. 2<<. RIG@TS OF EMPLOYEES IN
T@E P;BLIC SERVICE
THE 0OLLO+ING ARE CON/IDERED
NEGOTIABLE IN GOCCs +ITH ORIGINAL
CHARTER*
1. schedule of vacation and other
leaves
2. wor( assignment of pregnant
women
3. personnel growth and
development
.. communication system 6 lateral
and vertical
. provision for protection and
safely
6. provision for facilities for
handicapped personnel
LABOR LAW COMMITTEE
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS WIT@
AN ORIGINAL
C@ARTER
GOVERNMENT
OWNED OR
CONTROLLED
CORPORATIONS
WIT@O;T
ORIGINAL
C@ARTER
a. LAW
% 5mployees cannot stage
stri(es since they are
governed by the )ivil
-ervice 3aw. +hey are
en&oined by )ivil -ervice
Femorandum )ircular
4o. 6, under pain of
administrative sanctions
from staging stri(es,
demonstrations, mass
leaves, wal(outs and
other concerted
activities.
% +he IB)) is
created under
)orporation )ode,
then employees are
covered by the 3abor
)ode. +herefore
the employees have
the same rights as
those as employees
of private
corporations, one of
which is the right to
stri(e.
+. BARGAINING RIG@TS
% )orporations with
original charters
cannot bargain with
the government
concerning the terms
and conditions of
their employment.
Lowever, they can
negotiate with the
government on those
terms and conditions
of employment which
are not fi:ed by law.
+hus, they have
limited bargaining
rights.
% +he IB)) is
created under
)orporation )ode,
being governed by the
3abor )ode, they can
bargain with the
government
concerning the terms
and
conditions of
their employment.
+hus, they have
unlimited bargaining
rights.
,.P;RPOSE OF
ORGANI?ATION
% )an only form, &oin or
assist labor organi'ation
for purposes not contrary
to law.
% )an form, &oin or
assist labor
organi'ation for
purposes of )"!, etc.
<. provision for first%aid medical
services for married women
E. annual medical9physical
e:amination
;. recreational, social, athletic and
cultural activities and facilities
#0ules implementing AB 1E0$
T@E FOLLOWING ARE CONSIDERED
NOT NEGOTIABLE:
1. +hose which require appropriation of
funds, such as,
a. increase in salary
emoluments and other
allowance not presently
provided for by law
b. facilities requiring capital
outlays
c. car plan
d. provident fund
e. special hospitali'ation,
medical and dental services
f. rice9sugar9other subsidies
g. travel e:penses
h. increase in retirement
benefits
2. +hose that involve the e:ercise of
management prerogatives, such as,
a. appointments
b. promotion
c. assignments9details
d. reclassification9upgrading of
position
e. revision of compensation
structure
f. penalties imposed as a result
of disciplinary actions
g. selection of personnel to
attend seminar, trainings,
study grants
h. distribution of wor( load
i. e:ternal communication
lin(ages
Iovernment employees and
employees of government%owned
and controlled corporations with
original charters may bargain,
however, such +arai'i' )$w&r
i# (i-i"&/.
NOTE: +he Public -ector 3abor
Fanagement )ouncil #P-3F)$, created
by 5.B. 1E0 has &urisdiction to hear
charges of C3P filed by government
employees against their employer.
REASONS W@Y EMPLOYEES IN GOCC#
INCORPORATED ;NDER T@E
CORPORATION CODE ARE ALLOWED TO
ORGANI?E:
1. they are not involved in public
service
2. terms of employment are not fi:ed
by law
3. they are governed by the provisions
of the 3abor )ode not by the )ivil
-ervice 3aw
ART( 234( INELIGIBILIT. O0
-ANAGERIAL E-PLO.EE/ TO 5OIN AN.
LABOR ORGANI1ATION6 RIGHT O0
/UPER7I/OR. E-PLO.EE/(
MANAGERIAL EMPLOYEE - one who is
vested with powers or prerogatives to
lay down and e:ecute management
policies and 9or to hire, transfer,
suspend, lay%off, recall, discharge,
assign or discipline employees.
MANAGERIAL EE ;NDER LS AND LR
Ma'a&ria(
E-)($.&&# *'/&r
La+$r S"a'/ar/#
Ma'a&ria(
E-)($.&&#
*'/&r La+$r
R&(a"i$'#
a. POWERSDD;TIES
% primary duty consists
of the -a'a&-&'" $%
"!& &#"a+(i#!-&'" in
which they are
employed or of a
department or
subdivision
% -ee definition
above
b. E1TENT
% includes the officers
and members of the
managerial staff
% does not include
the managerial
staff since they are
classified as
supervisory
employees ?who
may9may not be
eligible to &oin a
labor union with
the ran( and file
employees@
c. P;RPOSE OF
DEFINITION
% to determine w9n
certain employees are
covered by "oo( 777 of
% to determine an
employee*s
eligibility in
&oining9forming a
labor union.
LABOR LAW COMMITTEE
the 3) on )onditions of
5mployment.
Reason !o% ine"iibi"it# in the
collecti(e bar"ainin" process#
'ana"erial e'ployees are the alter e"o
of the e'ployers and thus they are
supposed to be on the side of the
e'ployer to act as its representati(es#
and to see to it that its interests are
5ell protected! 3he e'ployer is not
assured of such protection if these
e'ployees are union 'e'bers!
In the sa'e 'anner# the labor
union 'i"ht not be assured of
their loyalty to the union in
(ie5 of the e(ident conflict of
interest!
3he union can also beco'e
co'pany8do'inated 5ith the
presence of 'ana"erial
e'ployees in 1nion $e'bership
(Dulletin 7ublishin" *o! Inc! (s!
Hon! Au"usto Sanche:)!
S;PERVISORY EMPLOYEES - those who,
in the interest of the employer,
effectively recommend such managerial
actions if the e:ercise of such authority
is '$" -&r&(. r$*"i'ar. $r ,(&ri,a( i'
'a"*r& +*" r&I*ir&# "!& *#& $%
i'/&)&'/&'" F*/-&'".
-A. /UPER7I/OR. E-PLO.EE/ 0OR-,
A//I/T, 5OIN A LABOR ORGANI1ATION,
YES, on their own and 4B+ with the
ran(%and%file employees #0! 6<1$.
+he TEST IS, 8o they e:ercise
independent &udgment which is
not sub&ect to evaluation of
other department heads9other
superiorsQ 7f in the affirmative,
then they may%must form a labor
organi'ation of their own
?separate from the ran( and file
employees@
7f their responsibilities do not
inherently require the e:ercise
of discretion and independent
&udgment ?or merely
routinary9clerical in nature@
then they may &oin the union
composed of the ran( and file
employees.
NOTE, 7t is the nature of the employee*s
functions and not the nomenclature or
title given to his &ob which determines
whether he has a ran( and file or
managerial status. #5ngineering
5quipment, 7nc. vs. 430)$
-A. THE. A00ILIATE +ITH A
0EDERATION O0 LABOR ORGAN1ATION/
O0 RAN8 AND 0ILE E-PLO.EE/,
YES. Provided that,
a. the federation is '$" a,"i5&(.
i'5$(5&/ in union affairs in the
company/ and
b. the ra'A a'/ %i(& &-)($.&&# ar&
'$" /ir&,"(. *'/&r "!& ,$'"r$( of
the supervisors #!damson vs.
!damson$
EFFECT OF @AVING MI1ED
MEMBERS@IP 6 ! union whose
membership is a mi:ture of the
supervisors and the ran( and file is not
and cannot become a legitimate labor
organi'ation. 7t cannot petition for a
certification election, much less as( to
be recogni'ed as the bargaining
representative of employees.
CONFIDENTIAL EMPLOYEES % by the
very nature of their functions, they
a##i#" a'/ a," i' a ,$'%i/&'"ia( ,a)a,i".
"$: $r: !a5& a,,&## "$ ,$'%i/&'"ia(
-a""&r# $% )&r#$'# w!$ &G&r,i#&
-a'a&ria( %*',"i$'# i' "!& %i&(/ $%
(a+$r r&(a"i$'#. +herefore, the rationale
behind the ineligibility of managerial
employees to form, assist or &oin a labor
union equally applies to them. #Philips
7ndustrial 8ev*t 7nc. >s. 430)$
% they are entrusted with confidence on
delicate matters, or with the custody,
handling, or care and protection of the
employer*s property. Cnder the doctrine
of necessary i'plication, confidential
employees are similarly disqualified
under !rticle 2.. #0epublic Planters
"an( vs. +orres$
NOTE: +he phrase 1in the field of labor
relations2 is important. 7t stresses labor
ne:us, i.e., confidentiality of the
LABOR LAW COMMITTEE
position is related or lin(ed to labor
relations matters.
!ccess to information which is
regarded by the employer to be
confidential from the business
standpoint, such as financial
information or technical trade
secrets, will not render an
employee a confidential
employee. #-F) -upervisors D
5:empt Cnion vs. Lon.
3aguesma, et al.$
)onfidentiality is not a matter of
official ran(, it is a matter of &ob
content and authority. 7t is not
measured by closeness to or
distance from top management,
but by the significance of the
&obholder*s role in the pursuit of
corporate ob&ectives and
strategies.
5very managerial position is
confidential because one does
not become a manager without
having gained the confidence of
the appointing authority. "ut
not every confidential employee
is managerial/ he may be a
supervisory or even a ran(%and%
file employee.
ART. 2<7. NON-ABRIDGEMENT OF
T@E RIG@T TO SELF-ORGANI?ATION
MT@E RIG@T TO SELF-ORGANI?ATION
S@ALL NOT BE ABRIDGEDN MEANS:
7t shall be unlawful for any person to,
a. restrain,
b. coerce,
c. discriminate against, or
d. unduly interfere
% with employees and wor(ers in their
e:ercise of the right to self%organi'ation.
!ny act intended to wea(en or
defeat the right is regarded by
law as an offense, which is
technically called 1unfair labor
practice.2
TITLE VI
;NFAIR LABOR PRACTICES
C@APTER I
CONCEPT
ART. 2<4. ;NFAIR LABOR PRACTICES
NAT;RE OF ;NFAIR LABOR
PRACTICES:
1. VIOLATE T@E CONSTIT;TIONAL
RIG@T of wor(ers and employees to
self%organi'ation/
2. are INIMICAL TO T@E LEGITIMATE
INTERESTS of both
labor and management, including
their right to bargain collectively
and otherwise deal with each
other in an atmosphere of freedom
and mutual respect
3. DISR;PT IND;STRIAL PEACE/ and
@! hinder the pro'otion of healthy and
stable labor8'ana"e'ent relations
and 'utual respect 9LABOR--NGT
RELATION/-UN/TABLE:+
2 ELEMENTS OF ;NFAIR LABOR
PRACTICE:
1. employer%employee relationship
between the offender and the
offended
2. act done is e:pressly defined in
the )ode as an act of unfair
labor practice
3. it is now considered a criminal
offense triable by the criminal
court
NOTE: Prohibited acts are all related to
the wor(ersR self%organi'ational right and
the the observance of a )"!, e:cept !rt.
2.E #f$ dismissing or pre&udicing an
employee for giving testimony under the
)ode.
C3P has a technical meaning.
7t is a practice unfair to labor,
although the offender may either
be an employer or a labor
organi'ation
7t refers to acts opposed to
wor(ersR right to organi'e.
LABOR LAW COMMITTEE
Aithout this, the act, no matter
how unfair, is not C3P.
7t commonly connotes anti8
unionis'!
7t also refers to gross violation
of )"! provisions. Iross means the
act is malicious and flagrant.
2 ASPECTS OF ;NFAIR LABOR
PRACTICE:
CI7IL CA/E *RI$INA) *AS2
A. PERSONS LIABLE
1. Bfficers and
agents of
employer or
2. 3abor
organi'ation,
officers and
agents
1. !gents and officers
who pa%ti&ipated or
autho%i;ed $r %ati!ied
"!& act.
2. !gents,
representatives, members
of the government board,
including ordinary
members
B. E;RISDICTION
%3abor !rbiters of
the 430)
%F+)90+) as the case
may be.
C. C;ANT;M OF PROOF NEEDED
-substantial
evidence
%beyond reasonable doubt
?sub&ect to prosecution
and punishment@
D. PRESCRIPTIVE PERIOD
% one year from
the accrual of the
C3P act.
% one year from the
accrual of the C3P act,
however it will be
suspended once the
administrative case has
been filed and would only
continue running once the
administrative case has
attained finality.
Ginal &udgment in the
administrative
proceeding finding that
C3P has been committed
is a prerequisite in filing
a criminal case for C3P
NOTE, Ginal &udgment in
the administrative
proceedings shall not be
binding in the criminal
case nor shall be
considered as an
evidence of guilt but
merely as a proof of
compliance of the
requirements prescribed
by the )ode.
C@APTER II
;NFAIR LABOR PRACTICES
OF EMPLOYERS
ART 2<3. ;LP T@AT MAY BE
COMMITTED BY AN EMPLOYER 61-1=9
1. T$ INTERFERE WIT@: RESTRAIN OR
COERCE EMPLOYEES
- in the e:ercise of their right
to self%organi'ation/
INTERFERENCE
5:amples,
% outright and unconcealed intimidation
% interrogation
employer must communicate to the
employee the purpose of questioning
1. assure him that no reprisal would
ta(e place
2. obtain employee participation
voluntarily
3. must be free from employer
hostility to union organi'ation
.. must not be coercive in nature
%intimidating e:pressions of opinion by
employer
TEST OF INTERFERENCE OR COERCION %
whether the employer has engaged in
conduct which it may reasonably be said
tends to interfere with the free e:ercise
of the employeesR right and it is not
necessary that there be direct evidence
that any employee was in fact
intimidated or coerced by the
statements of threats or the employer if
there is a reasonable interference that
the anti%union conduct of the employer
does have an adverse effect of self%
organi'ation and collective bargaining.
2. TO REC;IRE AS A CONDITION FOR
EMPLOYMENT T@AT A PERSON OR
AN EMPLOYEE
- shall not &oin a labor
organi'ation or
- shall withdraw from one to
which he belongs/

YELLOW DOG CONTRACT % ! promise
e:acted from wor(ers as a condition of
employment that they are not to belong
to, or attempt to foster, a union during
LABOR LAW COMMITTEE
their period of employment. 7t is null
and void because,
- 7t is ,$'"rar. "$ )*+(i, )$(i,.
for it is tantamount to involuntary
servitude.
- 7t is entered into wi"!$*"
,$'#i/&ra"i$' for employees in
waiving their right to self%
organi'ation
% 5mployees are ,$&r,&/ "$ #i'
,$'"ra,"# /i#a/5a'"a&$*# to their
family.
Does A%t( 23< =>? $ean that an
e$p"o#e% &annot &ont%a&t out @o%A,
NO( Contracting out services is not C3P
per se. 7t is C3P only when the following
conditions e:ist,
1. the service contracted% out
are being )&r%$r-&/ +.
*'i$' -&-+&r#/ and
2. such contracting%out
i'"&r%&r&# wi"!, restrains, or
coerce employees in the
e:ercise of their right to
self%organi'ation.
@OWEVER, when the contracting%out is
being done to minimi'e e:penses, then it
is a valid e:ercise of management
prerogative.
0. T$ CONTRACT O;T SERVICES OR
F;NCTIONS BEING PERFORMED BY
;NION MEMBERS
- when such will interfere with,
restrain or coerce employees in
the
- e:ercise of their right to self%
organi'ation/
<. T$ INITIATE: DOMINATE: ASSIST OR
OT@ERWISE INTERFERE
% with the formation or
administration of any labor
organi'ation,
% including the giving of financial or
other support to it or its
organi'ers or officers/ #Gormation
of )ompany Cnion$
8. T$ DISCRIMINATE IN REGARD TO
WAGES, hours of wor(, and other
employment in order to encourage or
discourage membership in any
labor organi'ation.
TEST OF DISCRIMINATION- whenever
benefits or privileges given to one is not
given to the other under similar or
identical conditions when directed to
encourage or discourage union
membership #see more discussions
below$
7. T$ DISMISS: DISC@ARGE OR
OT@ERWISE PREE;DICE OR
DISCRIMINATE against an employee
- for having given or being about
to give testimony under this
)ode/ #+he only C3P act which is
not anti%unionism$
DISCRIMINATION BECA;SE OF
TESTIMONY
TEST: the sub&ect matter of the
testimony can be anything under
the )ode
what is C3P is the employerRs
retaliatory act regardless of the
sub&ect of employeeRs complaint
or testimony
4. TO VIOLATE T@E D;TY TO BARGAIN
COLLECTIVELY AS PRESCRIBED BY
T@IS CODEL
3. TO PAY NEGOTIATION OR
ATTORNEY>S FEES TO T@E ;NION OR
ITS OFFICERS OR AGENTS
- as part of the settlement of any
issue in collective bargaining
or any other disputes/ or
2. T$ VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.#I0B--3MS$
- the violation must be gross and
with respect to the economic
provision of the )"! #flagrant
and with malice$
!ll the aforementioned acts #4os. 1%
;$ must have a relation to the
employees* e:ercise of their to self%
organi'ation. !nti%union or anti%
organi'ation motive must be proved
because it is a definitional element
of C3P.
RUNA+A. /HOP 8 an industrial plant
'o(ed by its o5ners fro' one location
LABOR LAW COMMITTEE
to another to escape union labor
re"ulations or state la5s or to
discri'inate a"ainst e'ployees at the
old plant because of their union
acti(ities!
COMPANY ;NIONISM
1. 7nitiation of the company union
idea by,
a. outright formation by
employer or his
representatives
b. employee formation on
outright demand or
influence by employer
c. managerially motivated
formation by employees
2. financial support to the union by,
a. employer defrays union
e:penses
b. pays attorneyRs fees to the
attorney who drafted the
)onstitution or by laws of
the union
3. employer encouragement and
assistance by immediate granting
of e:clusive recognition as
bargaining agent without
determining whether the union
represents ma&ority of the
employees
.. supervisory assistance by soliciting
membership, permitting union
activities during wor( time or
coercing employees to &oin the
union by threats of dismissal or
demotion.
DISCRIMINATION FOR OR AGAINST
;NION MEMBERS@IP
TEST OF DISCRIMINATION: +hat the
discharge of an employee was motivated
by his union activity. -uch inference
must be based on evidence, direct or
circumstantial, not upon mere suspicion.
CONSTR;CTIVE DISC@ARGE - C3P
where employer prohibits employees
from e:ercising their rights under the
)ode, on pain of discharge, and the
employee quits as a result of the
prohibition
T@REE COMPONENTS OF ART. 2<3689
6DISCRIMINATION9:
1.7t )r$!i+i"# /i#,ri-i'a"i$' in
employment in order to encourage
or discourage membership in the
union/
2.7t i5&# 5a(i/i". "$ *'i$' #&,*ri".
ar&&-&'"#/
3.7t a(($w# a' a&',. #!$)
arra'&-&'" whereby agency fees
may be collected from non%union
members.
SEC;RITY ARRANGEMENTS -
stipulations in the )"! requiring
membership in the contracting union as
a condition for employment or retention
of employment in the company.
PRINCIPLES OF ;NION SEC;RITY
ARRANGEMENTS:
1. Pr$"&,"i$' - +o shield union members
from whimsical and abusive e:ercise
of management prerogatives.
2. B&'&%i"# - !n additional membership
will insure additional source of
income to the union in the form of
union dues and special assessment.
3. S&(%-)r&#&r5a"i$'- 7t strengthens the
union through selective
acceptance of new members on the
basis of commitment and loyalty.
DIFFERENT KINDS OF ;NION SEC;RITY
ARRANGEMENTS: 6E1CEPTIONS TO ;LP
ON INTERFERENCE ON T@E EMPLOYEES>
E1ERCISE OF T@EIR RIG@T TO SELF-
ORGANI?ATION9
1. CLOSED-S@OP AGREEMENT - the
employer underta(es not to employ any
individual who is not a member of the
contracting union and the said individual
once employed must, for the duration of
the agreement, remain a member of the
union in good standing as a condition for
continued employment.
- does not have any retroactivity
- apply only to new hires
E1CEPTIONS:
a. employees belonging to any
religious sect which prohibit
LABOR LAW COMMITTEE
affiliation of their members with any
labor organi'ation are not covered
by such agreement=+he free
e:ercise of religious belief is
superior to contract rights
#>ictoriano vs. 5li'alde 0ope
Aor(ers$.
b. members of the rival union are not
covered by such arrangement.
SEMI-CLOSED S@OP AGREEMENT- !a#
'$ r&I*ir&-&'" %$r "!& &-)($.&& "$
r&-ai' a# -&-+&r $% "!& ,$'"ra,"i'
*'i$' i' $$/ #"a'/i' a# a ,$'/i"i$'
%$r ,$'"i'*&/ &-)($.-&'".
2. ;NION S@OP AGREEMENT
%stipulation whereby any person can be
employed by the employer but once
employed such employee must, within a
specific period, become a member of
the contracting union and remain as such
in good standing for continued
employment for the duration of the )"!
?ta(e note of the e:ceptions in the
preceding number.@
3. MAINTENANCE OF MEMBERS@IP
CLA;SE % the agreement 8B5- 4B+
require non%members to &oin the
contracting union "C+ provides that
those who are members thereof at the
time of the e:ecution of the )"! and
those who may thereafter on their own
volition become members must for the
duration of the agreement maintain
their membership in good standing as a
condition for continued employment in
the company for the duration of the
)"!.
.. PREFERENTIAL S@OP AGREEMENT
an agreement whereby the employer
merely agrees to give preference to the
members of the bargaining union in
hiring, promotion or filing vacancies and
retention in case of lay%off. +he
employer has the right to hire from the
open mar(et if union members are not
available.
. AGENCY S@OP AGREEMENT % an
agreement whereby employees must
either &oin the union or pay to the union
as e:clusive bargaining agent a sum
equal to that paid by the members.

+his is /ir&,"&/ aai'#"
MFREE RIDERN &-)($.&&# who
benefit from union activities
without contributing support to
the union, to prevent a situation
of non%union members enriching
themselves at the e:pense of
union members.
5mployee members of
another9rival union are not
considered free riders since
when the union ?agent@ bids to
be the bargaining agent, it
voluntarily assumed the
responsibility of representing all
the employees in the
appropriate bargaining unit.
REBUIRE-ENT/ 0OR A 7ALID
TER-INATION B. THE E-PLO.ER O0
THE /ER7ICE/ O0 AN E-PLO.EE
PUR/UANT TO A UNION OR CLO/ED-
/HOP AGREE-ENT*
1. +he agreement must be e:pressed in
a CLEAR AND ;NEC;IVOCAL way so
as not to leave room for
interpretation because it is a
limitation to the e:ercise of the
right to self%organi'ation.
!ny doubt must be resolved
against the e:istence of a
closed%shop agreement.
2. +he agreement can only have
PROSPECTIVE APPLICATION and
cannot be applied retroactively.
3. 7t can only be e:ercised by giving the
employee his right to D;E PROCESS.
- +he employer has the right to
satisfy himself that there are
sufficient bases for the request
of the union.
- +he termination of the services
of the employee is not automatic
upon the request of the union.
.. 7t cannot be applied to employees
who are already MEMBERS OF T@E
RIVAL ;NION or to the employees
based on their religious beliefs.
LABOR LAW COMMITTEE
CHAPTER III
UN0AIR LABOR PRACTICE/ O0
LABOR ORGANI1ATION/
ART( 23C( UN0AIR LABOR PRACTICE/
O0 LABOR ORGANI1ATION/
a! 3o RE/TRAIN OR COERCE e'ployees
in the exercise of their ri"ht to self8
or"ani:ation! Ho5e(er# a labor
or"ani:ation shall ha(e the ri"ht to
prescribe its o5n rules 5ith respect
to the ac9uisition or retention of
'e'bership+
b! 3o CAU/E OR ATTE-PT TO CAU/E
AN E-PLO.ER TO DI/CRI-INATE
AGAIN/T AN E-PLO.EE# includin"
discri'ination
c. +o VIOLATE T@E D;LY OR REF;SE
TO BARGAIN COLLECTIVELY with the
employer provided that it is the
representative of the employees/
d. TO CA;SE OR ATTEMPT TO CA;SE
AN EMPLOYER TO PAY OR DELIVER
OR AGREE TO PAY OR DELIVER ANY
MONEY or other things of value, in
the nature of an e:action, for
services which are not performed or
not to be performed, including the
demand for a fee for union
negotiations/ #+his is called
G5!+L50"58874I$
e. +o ASK FOR OR ACCEPT
NEGOTIATION OR ATTORNEY>S FEES
FROM EMPLOYERS as part of the
settlement of any issue in collective
bargaining or any other dispute/ or
f. +o GROSSLY VIOLATE A COLLECTIVE
BARGAINING AGREEMENT.
- +he violation must be gross and
must be with respect to
economic provisions of the )"!
flagrantly and with malice.
PERSONS CIVILLY LIABLE FOR
;LP:
1. Bfficers and agents of employer
2. 3abor organi'ation, officers and
agents
3. !gents and officers who
participated or authori'ed or
ratified the act.
FEAT@ERBEDDING % refers to the
practice of the union or its agents in
causing or attempting to cause an
employer to pay or deliver or agree to
pay or deliver money or other things of
value, in the nature of e:action, for
services which are not performed or not
to be performed, as when a union
demands that the employer maintain
personnel in e:cess of the latter*s
requirements.
7t is not featherbedding if the
wor( is performed no matter
how unnecessary or useless it
may be.
SWEET@EART DOCTRINE 6 considers it
C3P for a labor organi'ation to as( for or
accept negotiation or attorney*s fees
from the employer in settling a
bargaining issue or dispute
resulting )"! is considered a
1sweetheart contract2 6 a )"!
that does not substantially
improve the employees* wages
and benefits.
TITLE VII
COLLECTIVE BARGAINING AND
ADMINISTRATION OF AGREEMENTS
ART. 28=. PROCED;RE IN
COLLECTIVE BARGAINING
COLLECTIVE BARGAINING negotiation
by an organi'ation or group of wor(men,
in behalf of its members, with the
employer, concerning wages, hours of
wor( and other terms and conditions of
employment and the settlement of
disputes by negotiation between an
employer and the representative of his
employees.
4egotiation towards a collective
agreement.
+he mechanics of collective bargaining
is set in motion only when the following
E;RISDICTIONAL PRECONDITIONS are
present,
1. POSSESSION OF T@E STAT;S OF
MAEORITY representation by the
employees* representative in
LABOR LAW COMMITTEE
accordance with any of the means of
selection or designation provided for
by the 3abor )ode/
2. proof of MAEORITY
REPRESENTATION #)ertification of
the "30 that the representative of
the employees in the sole and
e:clusive bargaining agent having
won in a certification election$/ and
3. a DEMAND TO BARGAIN under
!rticle 20 #a$ of the 3abor )ode.
#Tio( 3oy vs. 430)$
COLLECTIVE BARGAINING AGREEMENT
6CBA9 % a negotiated contract between a
legitimate labor organi'ation and the
employer concerning,
a. wages,
b. hours of wor(, and
c. all other terms and
conditions of employment in
a bargaining unit, including
mandatory provisions for
grievances and arbitration
machineries.
PROCED;RE IN COLLECTIVE
BARGAINING
1. Aritten NOTICE with statement
of proposals
2. REPLY by the other party within
10 calendar days with counter
proposals
3. 7n case of differences, either
party may REC;EST FOR A
CONFERENCE which must be held
within 10 days from receipt of
request.
.. 7f not settled NCMB MAY
INTERVENE AND ENCO;RAGE the
parties to submit the dispute to a
voluntary arbitrator
. 7f not resolved, the parties may
go to where they want AND RESORT
TO ANY OT@ER LAWF;L MEANS
?either to settle the dispute or
submit it to a voluntary arbitrator@.
8uring the conciliation
proceeding in the "oard, the
parties are prohibited from doing
any act which may disrupt or
impede the early settlement of
the disputes #20?d@ 3)$.
3 STAGES IN T@E NEGOTIATION FOR A
COLLECTIVE BARGAINING AGREEMENT:
1. PRELIMINARY process % written
notice for negotiation which must
be clear and unequivocal
2. NEGOTIATION Process
3. E1EC;TION Process 6 signing of the
agreement
.. P;BLICATION for at least days
before ratification
. RATIFICATION by the ma&ority of
all the wor(ers in the bargaining
unit represented in the negotiation
#not necessary in case of arbitral
award$
6. REGISTRATION Process
0equisites for registration,
a. mandatory provisions
b. payment of P1, 000
c. copies of )"!
d. proof of ratification
<. ADMINISTRATION Process 6 the )"!
shall be &ointly administered by
the management and the
bargaining agent for a period of
years
E. INTERPRETATION AND APPLICATION
Process
MANDATORY PROVISIONS OF T@E CBA:
1. wages
2. hours of wor(
3. grievance machinery
.. voluntary arbitration
. family planning
6. rates of pay
<. mutual observance clause
7n addition, the "ureau requires
that the )"! should include a
clear statement of the terms of
the )"!.
NoteH 5mployer*s duty to bargain is
limited to mandatory bargaining
sub&ects/ as to other matters, he is free
to bargain or not to bargain.
ART. 282. MEANING OF D;TY TO
BARGAIN COLLECTIVELY
D;TY TO BARGAIN COLLECTIVELY %
the performance of a mutual obligation,
a. to MEET AND CONVENE promptly
and e:peditiously in good faith for
LABOR LAW COMMITTEE
the purpose of negotiating an
agreement with respect to wages,
hours of wor( and all other terms
and conditions of employment
including proposals for ad&usting
any grievances or questions arising
under such agreement and
b. E1EC;TING A CONTRACT
incorporating such agreements if
requested by either party.
LIMITATIONS:
1. the duty to bargain collectively does
not compel any party to,
a. ar&& "$ a )r$)$#a(/ or
b. -aA& a ,$',&##i$'.
4o room for 1+a(e it or 3eave it2
posture.
2. the parties cannot stipulate ter's
and conditions of e'ploy'ent 5hich
are belo5 the 'ini'u' re9uire'ents
prescribed by la5
#Feaning of duty to bargain when there
e:ists a )"!, see discussion under !rt.
23$
)ollective bargaining does not
end with the e:ecution of the
agreement. 7t is a continuous
process. +he duty to bargain
imposes on the parties during
the term of their agreement the
mutual obligation to meet and
confer promptly and
e:peditiously and in good faith
for the purpose of ad&usting any
grievances or question arising
under such agreement. #0epublic
-avings "an( vs. )!$
0OUR =3? 0OR-/ O0 ULP IN
BARGAINING*
a! failure or refusal to 'eet and
con(ene
b! e(adin" the 'andatory sub6ects
of bar"ainin"
c! bad faith in bar"ainin"
>boul5aris'A# includin" failure or
refusal to execute the *DA# if
re9uested
d! "ross (iolation of the *DA
Do e&ono$i& e'ien&ies Dusti!# %e!usa"
to ba%ain,
!n employer has been held not guilty of
refusal to bargain by adamantly
re&ecting the unionRs economic demands
where he is operating at a loss, on a low
profit margin, or in a depressed industry,
as long as he continues to negotiate.
"ut financial hardship constitutes no
e:cuse for refusing to bargain
collectively.
ACTS NOT DEEMED REF;SAL TO
BARGAIN:
1. adoption of an adamant bargaining
position in good faith
2. refusal to bargain over demands for
commission of C3P
3. refusal to bargain during period of
illegal stri(e
.. there is no request for bargaining
. union see(s recognition for an
inappropriately large unit
6. union see(s to represent some
persons who are e:cluded from the )ode
<. the ran(%and%file unit includes
supervisors or inappropriate otherwise
E. the demand for recognition and
bargaining is made within the year
following a certification election in
which the clear choice was no union and
no ad interim significant change has
ta(en place in the unit
;. the union ma(es unlawful bargaining
demands
BARGAINING TO T@E POINT OF
DEADLOCK OR IMPASSE:
1. over a -a'/a"$r. #*+F&," % party
may insist on bargaining and will not be
construed as bargaining in bad faith
REASON: duty to bargain requires
meeting and convening on the terms and
conditions of employment
but does not require assent to the other
partyRs proposals.
LABOR LAW COMMITTEE
2. over a '$'--a'/a"$r. #*+F&," %
party may not insist on bargaining to the
point of impasse, otherwise, he will be
construed as bargaining in bad faith.
E1AMPLE: +he employerRs insistence
that the union should change its
negotiator before bargaining can
proceed to the employeesR wage and
benefits is an instance of bad%faith
bargaining because the composition of
the negotiating panel is not a mandatory
sub&ect of bargaining.
Lence, if Party ! insists on first settling a
non%mandatory sub&ect before tac(ling a
mandatory sub&ect, Party " may
complain that Party !Rs posture is &ust an
e:cuse to avoid bargaining on the
mandatory, essential sub&ects of
bargaining/ thus, Party " can charge that
Party ! is bargaining in bad faith or is
evading bargaining on terms and
conditions of employment % in short,
Party ! is committing C3P.
NOTE: Ahat the rule forbids is the
posture of ma(ing settlement of a non%
mandatory sub&ect a pre%condition to
the discussion or settlement of a
mandatory sub&ect.
ART. 280. D;TY TO BARGAIN
COLLECTIVELY W@EN T@ERE E1ISTS A
COLLECTIVE BARGAINING AGREEMENT
GENERAL R;LE: Ahen there is an
e:isting )"!, the duty to bargain
collectively shall also mean that neither
party shall +50F74!+5 nor FB87GM such
agreement during its lifetime. 7t is the
duty of both parties to,
a! (eep the #"a"*# I*$ and
b. to ,$'"i'*& i' "!& %*(( %$r,& a'/
&%%&," the terms and conditions of
the e:isting )"!
E1CEPTION, during the 60%day period
prior to its e:piration, upon service of a
written notice of a party*s intention to
terminate or modify the same, a party
may choose to terminate or modify the
non%representational aspect of the )"!
only after the e:piration of )"! of fi:ed
duration.
D;TY TO BARGAIN COLLECTIVELY
;NDER 280 AND 280-AD287
A;TOMATIC RENEWAL CLA;SE 6 !rt.
23 provides that the )"! shall remain
effective and enforceable &5&' after the
e:piration of the period fi:ed by the
parties a# ($' a# no new agreement is
reached by them.
W@AT MAY BE DONE D;RING T@E
7=-DAY FREEDOM PERIOD:
a. ! labor union may DISAFFILIATE
from the mother union to form a
local or independent union only
during the 60%day freedom period
immediately preceding the
e:piration of the )"!. ?ta(e note of
the limitation%see discussions on
registration of labor unions@
b. either party can serve a written
notice to TERMINATE OR MODIFY
the agreement at least 60 days prior
to its e:piration period ?on re%
negotiable9non%representation
aspect of the )"!=see discussion on
23@
c! a petition !o% *2R3I&I*A3I4N
2)2*3I4N $a# be !i"ed
LABOR LAW COMMITTEE
280 280-AD287
!.FREEDOM PERIOD
%the notice of intention to
terminate, amend or alter
the provisions of the )"!
shall be filed within the
si:ty #60$ day period,
immediately prior to the
e:piration of the )"!.
%the economic provisions
however may be
renegotiated not later than
three #3$ years. +hose
economic provisions
entered within 6 months
from the e:piry of their
term as fi:ed in the )"!
shall retroact to the day
immediately following such
date, if beyond 6 months
the effectivity is by
agreement of the parties.
% representation
aspect of the )"!
shall be for a
term of five #$.
! petition for
certification
election may be
entertained and
a certification
election may be
conducted within
the 60%day period
immediately
prior to the
e:piration of the
)"!.
". W@AT MAY BE
C@ANGED D;RING T@E 7=-
DAY FREEDOM PERIOD
-re%negotiable provisions of
the )"! particularly the
non%representation aspect
#5)B4BF7) P0B>7-7B4-
may be renegotiated not
later than three #3$ years.
% representation
aspect=it may be
resolved by holding
certification
election
ART( 24>)A( TER-/ O0 A
COLLECTI7E BARGAINING AGREE-ENT
=CONTRACT BAR RULE?
D;RATION OF T@E CBA:
1. Aith respect to the
representation aspect, the same
lasts for years
2. Aith respect to other provisions
?economic provisions@, the same may
last for a ma:imum period of 3 years
after the e:ecution of the )"!
R;LE ON RETROACTIVE EFFECTS OF
OT@ER ECONOMIC PROVISIONS WIT@
FI1ED TERM OR DATES OF E1PIRY AS
PROVIDED IN T@E CBA:
a. T!$#& -a/& wi"!i' 7 -$'"!# after
the date of e:piry of the )"!
% !ny agreement on such other
provisions of the )"! -a/& wi"!i' 7
-$'"!# after the date of e:piry of the
)"! is sub&ect to A;TOMATIC
RETROACTION to the day immediately
following such date of e:piry.
b. T!$#& '$" -a/& wi"!i' 7 -$'"!# "!&
)ar"i&# -a. ar&& "$ "!& DATE OF
RETROACTION.
% +his rule applies only if there
is an 5J7-+74I !I055F54+. 7f T@ERE IS
NO E1ISTING AGREEMENT, there is no
retroactive effect because the date
agreed upon shall be the start of the
period of agreement.
NOTE: !rticle 23%! on retroaction does
not apply if the provisions were imposed
by the -ecretary of 3abor by virtue of
arbitration. 7t applies only if the
agreement was voluntarily made by the
parties.
ART. 28<. NO INE;NCTION R;LE
4o temporary or permanent
in&unction or restraining order in any
case i'5$(5i' $r r$wi' $*" $% (a+$r
/i#)*"&# shall be issued by any court or
other entity, &G,&)" as otherwise
provided in !rticles 21E #Powers of the
)ommission9430)$ and 26. #Prohibited
!ctivities$ of this )ode.
REASON: in&unction contradicts the
constitutional preference for voluntary
modes of dispute settlement
In &ases o! st%iAesEpi&Aetin, third
parties or innocent bystanders $a#
se&u%e a &ou%t =%eu"a% &ou%t?
inDun&tion to p%ote&t thei% %ihts(
(7A&)1 (s! *)4RID2))
ART( 244( EXCLU/I7E BARGAINING
REPRE/ENTATION AND +OR8ERF/
PARTICIPATION IN POLIC. AND
DECI/ION--A8ING
+HAT I/ THE -EANING OR EXTENT O0
THE +OR8ER/F RIGHT TO PARTICIPATE
IN POLIC. AND DECI/ION--A8ING
PROCE//E/,
-uch right refers B43M to
participation in grievance procedures
and voluntary modes of settling disputes
and 4B+ to formulation of corporate
programs and policies.
NOTE: !n employer may solicit
questions, suggestions and complaints
from employees eventhough the
employees are represented by a union,
provided,
1. the collective bargaining
representative e:ecutes an
agreement waiving the right to be
present on any occasion when
employee grievances are being
ad&usted by the employer and
2. employer acts strictly within the
terms of this waiver agreement.
ONE-;NION: ONE-COMPANY POLICY %
the proliferation of unions in an
employer unit is discouraged as a matter
of policy unless there are compelling
reasons which would deny a certain class
of employees the right to self%
organi'ation for purposes of collective
bargaining.
E1CEPTION:
LABOR LAW COMMITTEE
% supervisory employees who are
allowed to form their own unions apart
from the ran(%and%file employees
% the policy should yield to the right of
employees to form unions for purposes
not contrary to law, self%organi'ation
and to enter into collective bargaining
negotiations.
two companies cannot be
treated into a single bargaining unit
even if their businesses are related.
subsidiaries or corporations
formed out of former divisions of a
mother company following a
reorgani'ation may constitute a
separate bargaining unit.
LABOR MANAGEMENT CO;NCILS %
deal with the employer on matters
affecting employee*s rights, benefits and
welfare.
+hey may be formed even if there
is already a union in the company.
ARTS. 287-282 PETITION FOR
CERTIFICATION ELECTION
BARGAINING ;NIT% a group of
employees of a given employer,
comprised of all or less than all the
entire body of the employees, which,
consistent with equity to the employer,
indicate to be best suited to serve the
reciprocal rights and duties of the
parties under the collective bargaining
provision of the law.
CERTIFICATION YEAR % refers to the
period wherein collective bargaining
should begin, which is within 12 months
following the determination and
certification of employeesR e:clusive
bargaining representative.
FO;R FACTORS IN DETERMINING T@E
APPROPRIATE BARGAINING ;NIT:
1. the E1PRESS WILL OR DESIRE of the
employees #Ilobe 8octrine$/
the desires of all the employees
are relevant to the
determination of the appropriate
bargaining unit. +he relevance
of the wishes of the employees
concerning their inclusion or
e:clusion from a proposed
bargaining unit is inherent in the
basic right to self organi'ation
2. the S;BSTANTIAL AND M;T;ALITY
INTEREST factor/
3. prior collective bargaining @ISTORY/
and
.. EMPLOYMENT STAT;S, such as
a. temporary
b. seasonal, and
c. probationary employee
THINGS TO CONSIDER IN
DETERMINING THE COMMUNITY
OF INTEREST DOCTRINE:
1. similarity in the scale and manner of
determining earnings
2. similarity in employment benefits,
hours of wor( and other terms and
conditions of employment
3. similarity in the (inds of wor(
performed
.. similarity in the qualifications, s(ills
and training of the employees
. frequency of contract or interchange
among the employees
6. common supervision and
determination of labor%relations
policy
<. history of previous collective
bargaining
E. desires of the affected employees
;. e:tent of union organi'ation
MODES OF C@OOSING T@E E1CL;SIVE
BARGAINING ;NIT:
1. SELECTION % certification election
2. DESIGNATION % voluntary recognition
A. CERTIFICATION ELECTION the
process of determining by secret ballot
LABOR LAW COMMITTEE
the sole and e:clusive bargaining agent
of the employees in an appropriate
bargaining unit, for purposes of
collective bargaining
CERTIFICATION 5#. CONSENT
ELECTION
CERTIFICATION
ELECTION
CONSENT
ELECTION
!. NAT;RE
% separate and distinct
from a consent
election
% a separate and
distinct process
and has nothing
to do with the
import and
effect of a
certification
election
". P;RPOSE
% to determine the sole
and e:clusive
bargaining agent of all
the employees in an
appropriate bargaining
unit for the purpose of
collective bargaining/
% to determine
the issue of
ma&ority
representation of
all the wor(ers
in the
appropriate
collective
bargaining unit
mainly for the
purpose of
determining the
administrator of
the )"! when
the contracting
union suffered
massive
disaffiliation but
not for the
purpose of
determining the
bargaining agent
for purposes of
collective
bargaining.
DIRECT CERTIFICATION - the process
whereby the Fed%!rbiter directly
certifies a labor organi'ation of an
appropriate bargaining unit of a
company after a showing that such
petition is supported by at least a
ma&ority of the employees in the
bargaining unit. IT IS NO LONGER
ALLOWED. 6EO 1119
VOL;NTARY RECOGNITION 6 the process
whereby the employer recogni'es a labor
organi'ation as the e:clusive bargaining
representative of the employees in the
appropriate bargaining unit after a
showing that the labor organi'ation is
supported by at least a ma&ority of the
employees in the bargaining unit.
EFFECT OF VOL;NTARY RECOGNITION
BY T@E EMPLOYER % through voluntary
recognition by the employer, the labor
organi'ation is recogni'ed by the
employer as the e:clusive bargaining
agent which may collectively bargain
with such employer.
C.E. IN AN ORGANI?ED AND AN
;NORGANI?ED ESTABLIS@MENT
ORGANI?ED ;NORGANI?ED
!. W@EN MANDATORY ON
T@E PART OF BLR
% upon the filing of a
verified petition by a
legitimate labor
organi'ation questioning
the ma&ority status of the
incumbent bargaining
agent within the 60%day
freedom period before the
e:piration of a )"!.
% +he )&"i"i$' -*#" +&
#*))$r"&/ +. "!& wri""&'
,$'#&'" of at least 2O of
ALL T@E EMPLOYEES IN
T@E APPROPRIATE
BARGAINING ;NIT.
- "!& &-)($.&r ,a''$" %i(&
a )&"i"i$' %$r ,&r"i%i,a"i$'
&(&,"i$'L $'(. a (&i"i-a"&
(a+$r $ra'iBa"i$' ,a' %i(&
#*,! )&"i"i$'.
Cpon,
a. the filing
of a verified
petition by a
le"iti'ate
labor
or"ani:ation/
$r
b. upon the
filing of a
petition by
the e'ployer
5hen such
e'ployer is
re9uested by
the
e'ployees to
bar"ain
collecti(ely.
". PERIOD FOR FILING T@E
PETITION
a. when "!&r& i# a CBA,
the labor organi'ation can
file a petition for
certification election
within the 60%day freedom
period #)B4+0!)+%"!0
0C35$
b. when "!&r& i# '$ CBA,
then the labor organi'ation
can file a petition for
% any time,
sub&ect
however to
the B45%
535)+7B4%
P50%M5!0
0C35.
LABOR LAW COMMITTEE
certification election at
any time, sub&ect to the
8eadloc( "ar 0ule.
REC;ISITES BEFORE A LABOR ;NION
CAN BE DECLARED A WINNER =DOUBLE
-A5ORIT. RULE?:
1. Fa&ority of the eligible voters cast
their votes AND
2. Fa&ority of the valid votes cast is for
such union.

@OW TO DETERMINE T@E DO;BLE
MAEORITY R;LE:
1. 7n determining the eligible votes cast
?G70-+ F!KB07+M@, include spoiled
ballots
2. 7n determining valid votes ?-5)B48
F!KB07+M@, eliminate spoiled ballots
but include challenged votes
R;N-OFF ELECTION:
! run%off election is proper if the
following conditions e:ist namely,
#a$ a VALID ELECTION too(
place because ma&ority of the
)ollective "argaining Cnit
members voted ?G70-+
F!KB07+M@/
#b$ the said election
presented at least T@REE
C@OICES, e.g., Cnion Bne,
Cnion +wo, and 4o Cnion #+a(e
4ote, 14o Cnion shall not be a
choice in the run 6 off
election$/
#c$ NOT ONE OF T@E
C@OICES OBTAINED T@E
MAEORITY #0OU1%-5)B48
F!KB07+M$ of the valid votes
cast/
#d$ the TOTAL VOTES FOR
T@E ;NIONS IS AT LEAST 8=O
of the votes cast/
#e$ there is NO
;NRESOLVED C@ALLENGED
VOTES or election protest
which if sustained can
materially alter the results
#f$ the two choices which
garnered the highest votes will
be voted and the one which
garners the highest number of
votes will be declared the
winner provided they get the
ma&ority votes of the total
votes cast

+ho @i"" pa%ti&ipate in the %un )
o!!,
+he unions receiving the highest
and second highest number of votes
cast.
R& R*' E(&,"i$' 5#. R*' $%%
E(&,"i$'
RE R;N ELECTION R;N OFF
ELECTION
Leld in two
instances,
1. if one choice
receives a
plurality of vote
and the
remaining
choices results
in a tie/
2. if all choices
received the
same number of
votes/
7n both
instances, the
4B C47B4 is also
a choice
)onducted when
none of the
choices, including
the choice of 4o
Cnion, receives a
ma&ority of the
valid vote cast.
+his presupposes
no less than three
competing choices.
7n this situation, an
election is
conducted between
the union choices
receiving the
largest and the
second largest
number of the valid
votes cast.
R;LES W@IC@ PREVENT T@E @OLDING
OF A CERTIFICATION ELECTION JDONCK:
1. Deadloc( bar rule% when there
is a deadloc( in collective bargaining and
the same has been submitted to 4)F"
for conciliation and mediation the same
LABOR LAW COMMITTEE
bars any petition or conduct of
certification election.
2. One year bar rule
3. Negotiation bar rule
.. Contract bar rule
1. CONTRACT-BAR R;LE % while a valid
and registered )"! of a fi:ed duration is
subsisting, the "30 is not allowed to hold
an election contesting the ma&ority
status of the incumbent union during the
five year term of the )"! e:cept during
the si:ty day period immediately prior to
the e:piration of the )"!.
REC;IREMENTS IN ORDER TO INVOKE
CONTRACT-BAR R;LE:
1. !greement is in WRITING AND
SIGNED by all contracting parties.
2. 7t must contain T@E TERMS AND
CONDITIONS of employment.
3. )overed employees in an appropriate
bargaining unit JAB; EES COVEREDK.
.. 7t is for a REASONABLE PERIOD or
duration.
. 7t must be RATIFIED.
6. 7t must be REGISTERED with the
"ureau.
<. +he violation of the contract bar rule
or the e:istence of a duly registered
)"! must be specifically IMPLEADED
AS A DEFENSE.
EFFECT OF AN INVALID AND
;NREGISTERED CBA- there is no bar and
therefore a certification election may be
held.
NOTE: 0egistration of )"! only puts into
effect the contract bar rule but the )"!
itself is valid and binding even if
unregistered.
E1CEPTIONS TO T@E CONTRACT-BAR
R;LE:
1. )"! is not registered
2. )"! deregistered
3. )"! was hastily concluded way
ahead of the freedom period
.. )"! is incomplete in itself
. )"! does not foster industrial peace
because of schism
6. )"! was concluded in violation of an
order en&oining the parties from
entering into a )"! until the issue of
representation is resolved
<. Petition is filed during the 60%day
freedom period
S;CCESSOR-IN-INTEREST DOCTRINE
Ahen an employer with an e:isting )"!
is succeeded by another employer, the
successor%in%interest who is a buyer in
"ood faith has no liability to the
employees in continuing employment
and the collective bargaining agreement
because these contracts are in persona'
E1CEPT,
a. when the successor%in%interest
&G)r&##(. a##*-&# the obligation or
b. the sale is a /&5i,& "$
,ir,*-5&'" the obligation or
c. the sale or transfer is made in
+a/ %ai"!
S;BSTIT;TIONARY DOCTRINE where
there occurs a shift in the employees*
union allegiance after the e:ecution of a
collective bargaining contract with the
employer, the employees can change
their agent #the labor union$ but the
collective bargaining contract which is
still subsisting continues to bind the
employees up to its e:piration date.
+hey may, however, bargain for the
shortening of said e:piration date.
+he employees cannot revo(e
the validly e:ecuted collective
bargaining contract with their
employer by the simple
e:pedient of changing their
bargaining agent. +he new
agent must respect the contract.
#"enguet )onsolidated, 7nc. vs.
5mployees and Aor(ers Cnion%
P!G3C$
LABOR LAW COMMITTEE
LIMITATION AS TO ITS APPLICATION 6
it cannot be invo(ed to support the
contention that a newly certified
collective bargaining agent
automatically assumes all the personal
underta(ings of the former agent=li(e
the 1no stri(e clause2 in the )"!
e:ecuted by the latter #"enguet
)onsolidated 7nc. vs. ")7 5mployees and
Aor(ers Cnion%P!G3C$.
2. DEADLOCK BAR R;LE % a petition for
certification election cannot be
entertained if, before the filing of the
petition for certification election, a
bargaining deadloc( to which an
incumbent or certified bargaining agent
is a party, had been submitted to
conciliation or arbitration or had become
the sub&ect of a valid notice of stri(e or
loc(out.
DEADLOCK 6 arises when there is an
impasse, which presupposes reasonable
effort at good faith bargaining which,
despite noble intentions, did not
conclude in an agreement between the
parties.
INDICATIONS OF A GEN;INE
DEADLOCK:
1. the submission of the deadloc(
to a third party conciliator or
arbitrator
2. the deadloc( is the sub&ect of
a valid notice of stri(e or loc(out
0. NEGOTIATION BAR R;LE % a petition
for certification election cannot be
entertained if, before the filing of the
petition for certification election, the
duly recogni'ed or certified union has
commenced negotiations with the
employer in accordance with !rt. 20 of
the 3abor )ode.
<. CERTIFICATION YEAR R;LE 6 no
petition for certification election may be
filed within one year from the date of a
valid certification, consent, or run%off
election or from the date of voluntary
recognition
E1AMPLES OF BAD FAIT@
BARGAINING:
1. S*r%a,& Barai'i' 6 occurs when
employer constantly changes its
positions over the agreement.
2. B$*(wari#- 6 occurs,
a. when the employer directly
bargains with the employee
disregarding the union.
+he aim was to deal with the
Cnion through the employees,
rather than with the employees
through the union.
b. 5mployer submits its proposals
and adopts a ta(e it or leave it
stand. +his is not negotiation
because the ta(e it or leave it stand
implies threat.
0. Si/& Bar T&,!'iI*&
TITLE VII- A
6a# i',$r)$ra"&/ +. RA 74189
GRIEVANCE MAC@INERY AND
VOL;NTARY ARBITRATION
ART. 27=. GRIEVANCE MAC@INERY
AND VOL;NTARY ARBITRATION
GRIEVANCE MAC@INERY % a mechanism
for the ad&ustment of controversies or
disputes arising from the interpretation
or implementation of the )"! and the
company personnel policies
GRIEVANCE - arises when a dispute or
controversy arises over the
implementation or interpretation of a
)"! or from the implementation or
enforcement of company personnel
policies, and either the union or the
employer invo(es the grievance
machinery provision for the ad&ustment
or resolution of such dispute or
controversy.
NAT;RE OF GRIEVANCE PROCED;RE %
7t is a 1must2 provision in any )"! and
LABOR LAW COMMITTEE
no collective agreement can be
registered in the absence of such
procedure.
7t is a part of the continuous
process of collective bargaining intended
to promote a friendly dialogue between
labor and management as a means of
maintaining industrial peace.
VOL;NTARY ARBITRATION %
contractual proceedings where parties to
a dispute select a &udge of their own
choice and by consent submit their
controversy to him for determination.
All "rie(ances not settled 5ithin ?
days fro' the date of its sub'ission to
the "rie(ance 'achinery shall
automatically be referred (oluntary
arbitration prescribed in the *DA!
Althou"h the pro(ision
'entions parties to a
agreement,2 it does not
'ean that a "rie(ance
'achinery cannot be set up
in a *DA8less enterprise! In
any 5or= place 5here
"rie(ance can arise# a
"rie(ance 'achinery
(re"ardless of na'e) can be
established!
In a unioni:ed co'pany# Art!
E55 allo5s an e'ployee#
union 'e'ber or not# to
raise a "rie(ance directly to
the e'ployer!
ARBITRATION MAY BE INITIATED BY:
1. S;BMISSION AGREEMENT 6
where the parties define the
disputes to be resolved/ or
2. DEMAND OR NOTICE invo(ing a
collective agreement
arbitration clause.
ART 2GH( 5URI/DICTION O0
7OLUNTAR. ARBITRATOR/ OR PANEL
O0 7OLUNTAR. ARBITRATOR/
E;RISDICTION OF VOL;NTARY
ARBITRATORS:
1. E1CL;SIVE ORIGINAL E;RISDICTION
CONFERRED BY LAW
a$!ll grievances arising from the
interpretation or implementation
of the )"!.
b$ +hose arising from the
company personnel polices.
c$Lear and decide wage distortion
issues arising from the
application of any wage orders
in organi'ed establishments.
d$ Cnresolved grievances arising
from the interpretation and
implementation of the
productivity incentive programs
under 0! 60<1 .
7t is the labor arbiter and not the
grievance machinery which has
&urisdiction over dismissals pursuant
to the union security clause.
violations of )"!, e:cept those
which are gross in character, shall no
longer be treated as C3P and shall
be resolved as grievances.
GROSS VIOLATION 6 flagrant and9or
malicious refusal to comply with the
economic provisions of the )"!.
2. E;RISDICTION BY AGREEMENT OF
T@E PARTIES #!rt. 262$
%all other disputes including C3P
and bargaining deadloc(s
+he disputes the parties may
submit to a >oluntary !rbitrator
can include any or all the
disputes mentioned in !rt. 21<
which otherwise fall under the
e:clusive &urisdiction of a labor
arbiter.
>oluntary arbitration may be
viewed as a master procedure to
prevent or resolve labor disputes
GRO;NDS FOR E;DICIAL REVIEW OF
DECISIONS OF VOL;NTARY
ARBITRATORS:
1. 3ac( of &urisdiction
2. Irave abuse of discretion
3. >iolation of due process
LABOR LAW COMMITTEE
.. 8enial of substantial &ustice
. 5rroneous interpretation of the law
! voluntary arbitrator is a
1quasi%&udicial instrumentality #-ec ;
"P12; as amended by 0! <;02$/2
hence, a petition for certiorari under
0ule 6 of the 0ules of )ourt will lie
where a grave abuse of discretion or
an act without or in e:cess of
&urisdiction of the voluntary
arbitrator is shown, which may be
filed with the )ourt of !ppeals.
TITLE VIII
STRIKES AND LOCKO;TS AND
FOREIGN INVOLVEMENT IN TRADE
;NION ACTIVITIES
C@APTER I
STRIKES AND LOCKO;TS
ART. 270. STRIKES: PICKETING AND
LOCKO;TS
STRIKE % !ny temporary stoppage
of wor( by the concerted action of
employees as a result of an industrial
or labor dispute.
IMPORTANCE: it is the most
effective weapon of labor in protecting
the rights of employees to improve the
terms and conditions of their
employment.
Iovernment employees may form
labor unions but are not allowed to
stri(e.
Bnly legitimate labor
organi'ations are given the right to
stri(e.
Cnunioni'ed wor(ers may hold a
protest action but not a stri(e
4ot all concerted activities are
stri(es/ they may only be protest
actions. !nd they do not necessarily
cause wor( stoppage by the
protesters. ! stri(e, in contrast, is
always a group action accompanied
by wor( stoppage.
LOCKO;T % means the temporary
refusal of an employer to furnish wor( as
a result of an industrial or labor dispute.
PICKETING - the act marching to
and fro the employer*s premises, usually
accompanied by the display of placards
and other signs ma(ing (nown the facts
involved in a labor dispute. +his is an
e:ercise of one*s freedom of speech.
STRIKE-BREAKER % any person who
obstructs, impedes or interferes by
force, violence, coercion, threats or
intimidation with any peaceful pic(eting
by employees during any labor
controversy affecting wages, hour or
conditions of wor( or in the e:ercise of
the right to self organi'ation or
STRIKE AREA 6 the establishment,
warehouse, depots, plants or offices,
including the sites or premises used as
runaway shops of the employer struc(
against, as well as the immediate
vicinity actually used by pic(eting
stri(ers in moving to an fro before all
points of entrance to and e:it from said
establishment
SOME E1AMPLES OF STRIKES AND
T@EIR VALIDITY
A. SIT-DOWN STRIKE % is
characteri'ed by a temporary wor(
stoppage of wor(ers who thereupon
sei'e or occupy property of the employer
or refuse to vacate the premises of the
employer. ILLEGAL- amounts to a
criminal act because the employees
trespass on the premises of the
employer.
B. WILDCAT STRIKE% is a wor( stoppage
that violates the labor contract and is
not authori'ed by the union. ILLEGAL- 7t
is not valid because it fails to comply
with certain requirements of the law, to
wit, notice of stri(e, vote, and report on
stri(e vote.
C. SYMPAT@ETIC STRIKES% are wor(
stoppages of wor(ers of one company to
ma(e common cause with other stri(ers
of other companies, without demands or
grievances of their own against the
employer. ILLEGAL - because there is no
labor dispute between the wor(ers who
are &oining the stri(ers and the latter*s
employer.
D. SECONDARY STRIKES% are wor(
stoppages of wor(ers of one company to
e:ert pressure on their employer so that
LABOR LAW COMMITTEE
the latter will in turn bring pressure
upon the employer of another company
with whom another union has a labor
dispute. ILLEGAL- because there is no
labor dispute involved.
I/ A I+ELGA NG BA.ANJ LEGAL,
NO. ! 1welga ng bayan2 is illegal
because it is a political stri(e and
therefore there is neither a bargaining
deadloc( nor any C3P. 7t is a political
rally.
GRO;NDS FOR T@E DECLARATION
OF STRIKE:
1. deadloc( in collective bargaining
#ECONOMIC$/ and9or
2. unfair labor practices #POLITICAL$
ECONOMIC STRIKE C3P -+07T5
JPOLITICALK
!. NAT;RE
% ! voluntary stri(e
because the
employee will
declare a stri(e to
compel management
to grant its demands.
% !n involuntary
stri(e/ the labor
organi'ation is
forced to go on
stri(e because of
the C3P
committed
against them by
the employer. 7t is
an act of self%
defense since the
employees are
being pushed to
the wall and their
only remedy is to
stage a stri(e.
". INITIATED BY:
% +he collective
bargaining agent of
the appropriate
bargaining unit can
declare an economic
stri(e.
% either
a. )ollective
bargaining agent
or
b. the legitimate
labor organi'ation
in behalf of its
members
). COOLING OFF PERIOD
-0= /a.# from the
filing of the notice of
stri(e before the
intended date of
actual stri(e sub&ect
-18 /a.# from the
filing of the
notice of stri(e.
to the <%day stri(e
ban.
8. E1CEPTION TO T@E COOLING-OFF
PERIOD
% 4o e:ception=
mandatory.
% 4otice of stri(e
and stri(e vote
maybe dispensed
with. +hey may
stri(e immediately.
- the cooling off
period may be
dispensed with, and
the union may ta(e
immediate action in
case of dismissal
from employment of
their officers duly
elected in
accordance with the
union*s )onstitution
and "y%laws, w!i,!
-a. ,$'#"i"*"&
*'i$' +*#"i'
w!&r& "!&
&Gi#"&',& $% "!&
*'i$' i#
"!r&a"&'&/.
- B;T i" -*#" #"i((
$+#&r5& "!&
-a'/a"$r. 4-/a.
)&ri$/ +&%$r& i"
,a' #"a& a 5a(i/
#"riA&.
5. STRIKE D;RATION PAY IN CASE OF A
LEGAL STRIKE
% not entitled to said
pay based on the
principle that a Vfair
day*s wage accrues
only for a fair day*s
labor*
% may be awarded
the said paid in the
discretion of the
authority deciding
the case.
C@ARACTERISTICS OF STRIKES:
1. there must be an established
relationship between the stri(ers and
the person9s against whom the stri(e is
called
2. the relationship must be one of
employer and employee
3. the e:istence of a dispute
between the parties and the utili'ation
by labor of the weapon of concerted
refusal to wor( as a means of persuading
or coercing compliance with the wor(ing
men*s demands
.. the contention advanced by the
wor(ers that although the wor( ceases,
the employment relation is deemed to
continue albeit in a state of belligerent
suspension
LABOR LAW COMMITTEE
. there is wor( stoppage, which
stoppage is temporary
6. the wor( stoppage is done
through the concerted action of the
employees
<. the stri(ing group is a legitimate
labor organi'ation, and in case of
bargaining deadloc(, is the employees*
sole bargaining representative.
TESTS IN DETERMINING T@E
LEGALITY OF A STRIKE:
1. Purpose +est
2. )ompliance with Procedural and
substantive requirements of law
3. Feans employed test
1. P;RPOSE TEST % +he stri(e must be
due to either
- bargaining deadloc( and9or
- unfair labor practice.
2. COMPLIANCE WIT@ PROCED;RAL P
S;BSTANTIVE REC;IREMENTS OF
LAW "$ wi" 6a-/9:
a. notice of stri=e
+. -.B158day coolin"8off period
before the intended date of actual
stri=e sub6ect to the ?8day stri=e ban!
COOLING OFF PERIOD - that period
of time given the 4)F" to mediate and
conciliate the parties.
7t is that span of time
allotted by law for the
parties to settle
theirdisputes in a peaceful
manner, before staging a
stri(e or loc(out.
,. st%iAe Kote
STRIKE VOTE % a requirement
wherein the decision to declare a stri(e
must be,
1. approved by a MAEORITY of the
total union membership in the
bargaining unit concerned ?not
of the whole bargaining unit@,
2. obtained by SECRET BALLOT
in MEETINGS OR
REFERENDA called for the
purpose.
P;RPOSE OF A STRIKE VOTE: - to
ensure that the intended stri(e is a
ma&ority decision
+he report on the stri(e
vote must be submitted to the
8B35 at least < days before
the intended stri(e sub&ect to
the cooling%off period.
/. 4-/a. #"riA& +a'
4-DAY STRIKE BAN it is the < day
waiting period before the date of the
purported stri(e ?within which the union
intending to conduct a stri(e must at
least submit a report to the 8epartment
as to the result of the stri(e vote@
intended to give the 8epartment an
opportunity TO VERIFY whether the
pro&ected stri(e really carries the
imprimatur of the ma&ority of the union
members in addition to the cooling off
period before actual stri(e.
0. MEANS EMPLOYED TEST%! stri(e
may be legal at its inception but
eventually be declared illegal if the
stri(e is accompanied by violence
which violence is widespread,
pervasive and adopted as a matter of
policy and not merely violence which
is sporadic which normally occur in a
stri(e area ?see prohibited activities
under art. 26.@.
NOTE: +he 3 tests must concur.
4on%compliance with any of the
aforementioned requisites renders the
stri(e illegal.
EFFECT OF GOOD FAIT@ OF
STRIKERS ON LEGALITY OF STRIKE % !
stri(e may be considered legal where the
union believed that the company
committed C3P and the circumstances
warranted such belief in good faith,
although subsequently such allegations
of C3P are found out as not true. #"acus
vs. Bple$
TOTALITY DOCTRINE - the
culpability of an employer*s remar(s are
to be evaluated not only on the basis of
their implicit implications but are to be
LABOR LAW COMMITTEE
appraised against the bac(ground of and
in con&unction with collateral
circumstances.
;'/&r "!i# M/$,"ri'&N e:pressions
of opinion by an employer which, though
innocent in themselves, frequently were
held to be culpable because,
a. of the ,ir,*-#"a',&#
under which they were uttered
b. the !i#"$r. of the particular
employer*s labor relations of
anti%union bias or
c. because of their ,$''&,"i$'
with an established collateral
plan of coercion or interference.
+HEN CAN THE /EC( O0 LABOR
A//U-E 5URI/DICTION O7ER A /TRI8E,
1.there e:ists a labor dispute causing or
li(ely to cause a stri(e or loc(out in a
IND;STRY INDISPENSABLE TO T@E
NATIONAL INTEREST,
2.the -ecretary of 3abor and
5mployment may,
a. decide it, or
b. certify the same to the 430) for
)BFPC3-B0M !0"7+0!+7B4.
NOTE: Ahat constitutes
i'/i#)&'#a+(& i'/*#"r. is based solely
upon the discretion of the -ecretary of
3abor.
EFFECTS OF T@E ASS;MPTION OF
E;RISDICTION OF T@E SECRETARY
1. A;TOMATICALLY ENEOINS the
intended or impending stri(e or
loc(out as specified in the
assumption or certification order/
2. if one has already ta(en place at
the time of assumption or
certification, all stri(ing or loc(ed%
out employees shall IMMEDIATELY
RET;RN TO WORK/ and
3. the employer shall immediately
resume operations and READMIT ALL
WORKERS under the same terms and
conditions prevailing before the
stri(e or loc(out.
! motion for reconsideration
does not suspend the effects as the
assumption order is immediately
e:ecutory.

ISS;ES T@AT T@E SECRETARY OF
LABOR CAN RESOLVE W@EN @E
ASS;MES E;RISDICTION OVER A LABOR
DISP;TE:
c. Bnly issues submitted to the
-ecretary may be resolved by him.
(7A) (s! Sec! of )abor# E- Fanuary
1991)!
d. 7ssues submitted to the -ecretary
for resolution and such issues
involved in the labor dispute itself.
(St! Scholastica%s *olle"e (s!
3orres+ E9 Fune 199E)
e. -ecretary of 3abor may subsume
pending labor cases before 3abor
!rbiters which are involved in the
dispute and decide even issues
falling under the e:clusive and
original &urisdiction of labor
arbiters such as the declaration of
legality or illegality of stri(e.
(Int%l 7har'aceuticals (s! Sec of
)abor+ .9 Fanuary 199E)!
f. Power of -ec. of 3abor is plenary
and discretionary. (St! )u=e%s
$edical *enter (s! 3orres+ E9 Fune
199-+ reiterated in 7A) (s!
*onfesor+ 1. $arch 199@)!
IN CA/E THE /TRI8E I/ DECLARED
LEGAL, ARE THE /TRI8ER/ ENTITLED
TO /TRI8E DURATION PA.,
GENERAL R;LE: -tri(ers are not
entitled to their wages during the period
of a stri(e, &5&' i% "!& #"riA& i# (&a(.
E1CEPTIONS:
1. 7n case of a ;LP STRIKE, in the
discretion of the authority deciding
the case ?see table for more
distinction bet. 5conomic and C3P
stri(e@
2. Ahere the stri(ers VOL;NTARILY
AND ;NCONDITIONALLY OFFERED
TO RET;RN TO WORK, but the
employer refused to accept the
LABOR LAW COMMITTEE
offer ?e!"! of an 1unconditional
offer2, 1we will return tomorrow2
and 4B+ 1willing to return
provided@
+hey are entitled to bac(wages from
the date the offer was made
3. Ahere there is RET;RN-TO-WORK
ORDER and the employees are
discriminated against.
- +hey are entitled to bac(wages
from the date of discrimination.
R;LE ON REINSTATEMENT OF
STRIKING WORKERS:
GENERAL R;LE , -tri(ing employees
are entitled to reinstatement, regardless
of whether or not the stri(e was the
consequence of the employer*s C3P
REASON, because while out on
stri(e, the stri(ers are not considered to
have abandoned their employment, but
rather have only ceased from their labor.
+he declaration of a stri(e is
4B+ a renunciation of
employment relation.
E1CEPTIONS - +he following stri(ers
are 4B+ entitled to reinstatement,
1. ;'i$' $%%i,&r# who (nowingly
participate in an illegal stri(e/ and
2. any #"riA&rD*'i$' -&-+&r who
(nowingly participates in the
co''ission of illegal acts during the
stri(e.
+hose union members who
&oined an illegal stri(e but have
not committed any illegal act
shall be reinstated but without
any bac(wages.
R;LE IN STRIKES IN @OSPITALS
1. 7t shall be the duty of stri(ing
employees or loc(ing%out employer to
provide and maintain an effective
SKELETAL WORKFORCE of medical
and other health personnel for the
duration of the stri(e or loc(out.
2. SECRETARY OF LABOR MAY
IMMEDIATELY ASS;ME E;RISDICTION
WIT@IN 2< @O;RS FROM
KNOWLEDGE of the occurrence of
such stri(e or loc(%out or certify it to
the )ommission for compulsory
arbitration.
ART. 27<. PRO@IBITED
ACTIVITIES
LABOR ORGANI?ATIONS
1. 4o labor organi'ation or employer
shall declare a stri(e or loc(out
without first having
bargained collectively in
accordance with +itle >77 of
this "oo( or
without first having filed
the notice required in !rt. 263
or
without the necessary
stri(e or loc(out vote first
having been obtained and
reported to the 8epartment.
NO #"riA& $r ($,A$*" #!a(( +&
/&,(ar&/:
a. !G+50 assumption of
&urisdiction by the President
or the -ecretary or
b. !G+50 certification or
submission of the dispute to
compulsory or voluntary
arbitration or
c. 8C074I the pendency of
cases involving the same
grounds for the stri(e or
loc(out.
T@IRD PERSONS
2. 4B person ?3
rd
persons@ all obstruct,
impede or interfere with by force,
violence, coercion, threats or
intimidation
LABOR LAW COMMITTEE
any peaceful pic(eting by
employees
during any labor
controversy or in the
e:ercise of the right of self%
organi'ation or collective
bargaining or

shall aid or abet such
obstruction or interference.
EMPLOYERS
3. 4B employer shall use or employ
any -+07T5%"05!T50 nor shall any
person be employed as a
stri(ebrea(er.
P;BLIC OFFICIAL OR EMPLOYEE
.. 4B public official or employee,
including officers and personnel of
the 4ew !rmed Gorces of the
Philippines of the 7ntegrated
4ational Police, or armed persons,
shall bring in, introduce or
escort in any manner, any
individual who see(s to
replace stri(es in entering
or leaving the premises of a
stri(e area, or wor( in place
of the stri(ers.
+he police force shall (eep
out of the pic(et lines
unless actual violence or
other criminal acts occur
therein,
7ro(ided, +hat nothing herein shall
be interpreted to prevent any public
officers from ta(ing any measure
necessary to,
a. maintain peace and order,
b. protect life and property,
and9or
c. enforce the law and legal
order.
PERSONS ENGAGED IN PICKETING
4B person engaged in P7)T5+74I shall,
a. commit any act of violence,
coercion or intimidation or
b. obstruct the free ingress to or
egress from the employer*s premises
for lawful purposes,or
c. obstruct public thoroughfares
ART. 278. IMPROVED OFFER 5#.
RED;CED OFFER BALLOTING
IMPROVED OFFER
BALLOTING
RED;CED
OFFER
BALLOTING
1. a referendum
conducted by the 4)F"
on or before the 30
th
day
of the stri(e, for the
purpose of determining
whether or not the
improved $%%&r $% "!&
&-)($.&r is acceptable
to the union members.
1. a
referendum
conducted by the
4)F" for the
purpose of
determining
whether or not
the reduced
$%%&r $% "!&
*'i$' is
acceptable to
the board of
directors,
trustees or
partners.
P;RPOSE
2. to determining
whether or not the
improved $%%&r $% "!&
EMPLOYER is acceptable
to the union members.
to ascertain the
real sentiment of
the silent ma&ority
of the union
members on stri(e.
2. to
determining
whether or not
the improved
$%%&r $% "!&
;NION is
acceptable to
the union
members.
to ascertain
the real
sentiment of the
silent ma&ority of
the union
members on
stri(e.
PERIOD OF FILING
3. on or before the
30
th
day of the #"riA&
3. on or
before the 30
th
day of the
($,A$*"
LABOR LAW COMMITTEE
LIMITATION
.. applies only to
economic stri(es
#deadloc($
.. applies
only to economic
stri(es%deadloc(
in bargaining
6($,A$*"9
ART. 277. ARREST AND DETENTION
G&'&ra( r*(& is that a police officer
cannot arrest or detain a union
member for union activities without
previous consultations with the
-ecretary of 3abor E1CEPT on
grounds of,
a. national security
b. public peace
c. commission of a crime
BOOK SI1
POST EMPLOYMENT
TITLE I
TERMINATION OF
EMPLOYMENT
ART. 242. SEC;RITY OF TEN;RE
SEC;RITY OF TEN;RE % the
constitutional right granted the
employee, that the employer shall not
terminate the services of an employee
e:cept for &ust cause or when authori'ed
by law.
RELIEFS AVAILABLE TO AN
ILLEGALLY DISMISSED EMPLOYEE:
A. REINSTATEMENT - 0estoration of
the employee to the state from which he
has been un&ustly removed or separated
without loss of seniority rights and other
privileges.
FORMS OF REINSTATEMENT:
1. ACT;AL OR P@YSICAL REINSTATEMENT
% the employee shall be admitted
bac( to wor(
2. PAYROLL REINSTATEMENT
% the employee is merely reinstated
in the payroll.
-a# a &ou%t o%de% the
%einstate$ent o! a dis$issed
e$p"o#ee eKen i! the p%a#e% o! the
&o$p"aint did not in&"ude su&h %e"ie!,
YES. -o long as there is a finding
that the employee was illegally
dismissed, the court can order the
reinstatement of an employee even if
the complaint does not include a prayer
for reinstatement, unless, of course, the
employee has waived his right to
reinstatement. "y law, an employee who
is un&ustly dismissed is entitled to
reinstatement, among others. +he mere
fact that the complaint did not pray for
reinstatement will not pre&udice the
employee, because technicalities of law
and procedure are frowned upon in labor
proceedings (,eneral Daptist Dible
*olle"e (! N)R*+ E19 S*RA 5@9)!
+hat happens i! the%e is an o%de%
o! %einstate$ent but the position is no
"one% aKai"ab"e,
+he employee should be given a
-C"-+!4+7!33M 5NC7>!354+ PB-7+7B4. 7f
4B -C"-+!4+7!33M 5NC7>!354+
PB-7+7B4 7- !>!73!"35, reinstatement
should not be ordered because that
would in effect compel the employer to
do the impossible. 7n such a situation,
the employee should merely be given
-5P!0!+7B4 P!M )B4-7-+74I BG B45
FB4+L -!3!0M GB0 5>50M M5!0 BG
-50>7)5 #1,1$.
CIRC;MSTANCES W@EN COMPANY
MAY NOT REINSTATE DESPITE ORDER OF
REINSTATEMENT
1! TRANSFER OF B;SINESS OWNERS@IP
%+here is no law requiring a
purchasing corporation to absorb the
employees of the selling corporation.
A fortiori, reinstatement of un&ustly
dismissed employees )!44B+ be
enforced against the new owner
C435-- there is an e:press
agreement on the assumption of
liabilities by the purchasing
corporation/
E! Ahen reinstatement is rendered
IMPOSSIBLE due to the abolition of
the position/
-! Ahen the business has CLOSED
DOWN/
LABOR LAW COMMITTEE
@! P@YSICAL INCAPACITY of the
employee/ and
5! DOCTRINE OF STRAINED RELATIONS
% Ahen the employer can no longer
trust the employee and vice%versa,
reinstatement could not effectively
serve as a remedy. +his doctrine only
applies only to positions 5hich
re9uire trust and confidence
% Cnder the circumstances
where the employment
relationship has become so
strained to preclude a
harmonious wor(ing
relationship, and that all hopes
at reconciliation are nil after
reinstatement, it would be
more beneficial to accord the
employee bac(wages and
separation pay.
B. BACKWAGES the relief given to
an employee to compensate him for lost
earnings during the period of his
dismissal.
PERIOD COVERED BY T@E
PAYMENT OF BACKWAGES - "ac(wages
shall cover the period from the date of
dismissal of the employee up to the date
of actual reinstatement
@OW COMP;TED - Cnder e:isting
law, bac(wages is computed from the
time of the illegal dismissal up to time of
actual reinstatement.
INCL;DED IN T@E COMP;TATION
OF BACKWAGES
1. transportation and emergency
allowances
2. vacation or service incentive leave
and sic( leave
3. 13
th
month pay.
NOTE: facilities such as uniforms,
shoes, helmets and ponchos should NOT
be included in the computation of
bac(wages.
REASON: said items are given free,
to be used only during official tour of
duty not for private or personal use.
CIRC;MSTANCES T@AT PREVENT
AWARD OF BACKWAGES:
1. death of the employee
2. physical and mental incapacity
3. business reverses
.. closure of business
. reinstatement of dismissed employee
confinement in &ail
+hi&h taAes p%e&eden&e in
&on!"i&ts a%isin bet@een e$p"o#e%Fs
-ANAGE-ENT PREROGATI7E and the
e$p"o#eesF %iht to se&u%it# o! tenu%e,
+he employee*s right to security
of tenure. +hus, an employer*s
management prerogative includes the
right to terminate the services of the
employee but this management
prerogative is limited by the 3abor )ode
which provides that the employer can
terminate an employee only for a &ust
cause or when authori'ed by law. +his
limitation is because no less than the
constitution recogni'es and guarantees
employee*s right to security of tenure.
#!rt. 2<;, 3abor )ode/ !rt. J777, -ec. 3,
)onstitution$
ART. 23=. REG;LAR AND CAS;AL
EMPLOYMENT
REG;LAR EMPLOYMENT % one wherein
an employee is engaged to perform
activities which are usually necessary or
desirable in the usual business or trade
of the employer.
- Le is a regular employee at the point
of hiring.
T&#" $% r&*(ari".: nature of
employment.
CAS;AL EMPLOYMENT 6 one wherein an
employee is engaged to perform
activities which are not necessary or
desirable in the usual trade or business
of the employer.
- becomes a regular employee after
one #1$ year of service.
-
REG;LAR EMPLOYEE VS.
PROEECT EMPLOYEE
PROEECT
EMPLOYEE
REG;LAR
EMPLOYEE
LABOR LAW COMMITTEE
! pro&ect employee is
one whose
employment is fi:ed
for a specific pro&ect
or underta(ing the
completion of which
has been determined
at the time of the
engagement of the
employee. #-ee !rt.
2E0 3)$
! regular
employee is one
engaged to perform
activities which are
usually necessary or
desirable in the usual
business or trade of
the employer
TEMPORARY EMPLOYMENT OR
EMPLOYMENT FOR A FI1ED SPECIFIC
PERIOD % one wherein an employee is
engaged to wor( on a specific pro&ect or
underta(ing which is usually necessary or
desirable in the usual business or trade
of the employer, the completion of
which has been determined at the time
of the engagement of the employee.
- Le does not become a regular
employee. +he employment is
coterminous with the specific
period.

SEASONAL EMPLOYMENT % one
wherein an employee is engaged to wor(
during a particular season on an activity
that is usually necessary or desirable in
the usual business or trade of the
employer.
7a=iao e'ployees are considered
employees as long as the
employer e:ercises control over
the means by which such
wor(ers are to perform their
wor(.
5mployee is considered an
regular employee insofar as the
season to which he was
employed is concerned.
% during the off%season his
employment is merely
suspended not terminated
#Phil. +obacco Glue )urring and
8rying )orp. vs. 430)$.

PROBATIONARY PERIOD OF
EMPLOYMENT % the period needed to
determine the fitness for the &ob# i !e!#
the time needed to learn the &ob.
7t is the period during which the
employer may determine if the
employee is qualified for possible
inclusion in the regular force.
P;RPOSE, +o afford the employer an
opportunity to observe the fitness of a
probationary employee at wor(.
NOTE,+he standard which the
probationary employee is to meet must
be made (nown by the employer to the
employee at the time of engagement.
+he services of probationary employees
may be terminated for the same causes
as in the case of regular employee,
e:cept that there is an additional ground
6 failure to meet the standard.
LIMITATIONS ON T@E EMPLOYER>S
POWER TO TERMINATE A PROBATIONARY
EMPLOYMENT CONTRACT:
1. the power must be e:ercised in
accordance with the specific
requirements of the contract
JCOMPLIANCE WIT@ SPECIFIC
REC;IREMENTSK/
2.if a particular time is prescribed,
the termination must be within
such time and if formal notice is
required, then that form must be
used JWIT@IN PARTIC;LAR
PRESCRIBED TIMEK/
3.the employer*s dissatisfaction must
be real and in good faith, not
feigned so as to circumvent the
contract or the law
JDISSATISFACTIONHREAL AND IN
GOOD FAIT@K/ and
..there must BE NO ;NLAWF;L
DISCRIMINATION in the dismissal.
GENERAL R;LE: Probationary
employment shall not e:ceed si: months
from the date the employee started
wor(ing.
E1CEPTIONS:
1. when it is covered by an
a))r&'"i,&#!i) agreement stipulating a
longer period/ or
2. when the )ar"i&# "$ a'
&-)($.-&'" ,$'"ra," ar&& $"!&rwi#&,
such as when the same is established by
company policy or when the same is
required by the nature of the wor( to be
performed by the employee
LABOR LAW COMMITTEE
EFFECT IF PROBATIONARY
EMPLOYEE IS ALLOWED TO WORK
BEYOND 7 MONT@S
7f the probationary employee is
allowed to wor( beyond the period of 6
months or the agreed probationary
period, said employee becomes a regular
employee by operation of law.
Cnder the 3abor )ode, 1an
employee who is allowed to wor( after a
probationary period shall be considered
a regular employee.2 #!rt. 2E1.$
ART. 232. TERMINATION BY
EMPLOYER
SEC;RITY OF TEN;RE - !n
employer )!44B+ terminate the
services of an employee 5J)5P+ for a
&ust cause or when authori'ed by law.
G;IDELINES TO DETERMINE T@E
VALIDITY OF TERMINATION:
1. Iravity of the offense
2. Position occupied by the
employee
3. 8egree of damage to the
employer
.. Previous infractions of the same
offense
. 3ength of service
A. E;ST CA;SES JMaNaBaCAK:
1. -erious M7-)B48C)+ B0 A733GC3
87-B"58754)5 by the employee of
the lawful orders of his employer or
representative in connection with his
wor(/
$isconduct8 transgression of
some established and definite
rule of action, a forbidden act, a
dereliction of duty, willful in
character, and implies wrongful
intent and not mere error in
&udgment. #8ept. of 3abor
Fanual, -ec. .33.01$
2. Iross and habitual N5I35)+ by the
employee of his duties/ #0epeated
absenteeism and tardiness$
3. G0!C8 B0 A733GC3 B05!)L by the
employee of the trust reposed in him
by his employer or duly organi'ed
representative
Graud must be committed
against the employer or his
representative and in connection
with the employee*s wor(.
(#8ept. of 3abor Fanual, -ec.
.33.01 ?3@$
.. )ommission of a C07F5 B0 BGG54-5
"M +L5 5FP3BM55 !I!74-+ +L5
P50-B4 BG L7- 5FP3BM50 or any
immediate member of his family or
his duly authori'ed representative/
and
*on(iction or prosecution is not
re9uired!
. Bther causes A4!3BIBC- to the
foregoing.
! cause must be due to the
voluntary or willful act or
omission of the employee.
(Nadura (! Den"uet
*onsolidated+ ,!R! No! )81??/.)
D;E PROCESS TO BE OBSERVED
BY T@E EMPLOYER - Gor termination of
the employment based on the any of the
&ust causes for termination, the
requirements of due process that an
employer must comply with are, #+A74
4B+7)5-$
1. Aritten NOTICE should be served
to the employee specifying the
ground or grounds for termination
and giving the said employee
reasonable opportunity within
which to e:plain/
2. ! @EARING OR CONFERENCE
should be held during which the
employee concerned, with the
assistance of counsel, if the
employee so desires, is given the
opportunity to respond to the
charge, present his evidence and
present the evidence presented
against him/
3. ! WRITTEN NOTICE OF
TERMINATION, if termination is
the decision of the employer,
should be served on the employee
indicating that upon due
consideration of all the
circumstances, grounds have been
LABOR LAW COMMITTEE
established to &ustify his
termination.
Gor termination of
employment based on
a*"!$riB&/ ,a*#&#, the
requirements of due process
shall be deemed complied with
upon service of a written notice
to the employee and the
appropriate 0egional office of
the 8epartment of 3abor and
employment at least thirty days
before the effectivity of the
termination specifying the
grounds for termination.
NOTE: Cnder the so%called A54PL73
8B)+0745 if the services of the
employee was terminated due to a &ust
or authori'ed cause but the affected
employee*s right to due process has been
violated, the dismissal is legal but the
employee is entitled to damages by way
of indemnification for the violation of
the right.
SERRANO 5#. ISETANN et. al.
a+a'/$'&/ the A54PL73
8B)+0745 and ruled that if the
e'ployee is dis'issed under
6ust or authori:ed cause but the
affected e'ployee%s ri"ht to
due process has been (iolated#
his dismissal becomes
i'&%%&,"*a(. +herefore, the
employee is entitled to
bac(wages from the time he was
dismissed until the
determination of the &ustness of
the cause of the dismissal.
AGABON 5#. NLRC 6N$5. 14:
2==<9 abandoned the -errano
doctrine and REINSTATED T@E
WENP@IL DOCTRINE. +he
sanctions, however must be
stiffer than that imposed in
Aenphil.
PREVENTIVE S;SPENSION 6 when
there is an imminent threat to the lives
and properties of the employer, his
family and representatives as well as the
offender*s co%wor(ers by the continued
service of the employee then he may be
placed under preventive suspension
pending his investigation, leading to
termination.
preventive suspension should not
last for more than thirty #30$
days. +he employee should be
made to resume his wor( after
30 days.
- it can be e:tended provided the
employee*s wages are paid after the
30 day period.
ARTS. 230-23<.
B. A;T@ORI?ED CA;SES OF
TERMINATION BY T@E EMPLOYER:
1. installation of labor%saving devices
6A;TOMATION9
2. RED;NDANCY #superfluity in the
performance of a particular wor($
redundancy, for purposes of the
3abor )ode, e:ists where the
services of an employee are in
e:cess of what is reasonably
demanded by the actual
requirements of the enterprise.
(Iishire &ile *o! Inc! (s! N)R*)
0eorgani'ation as a cost%saving
device is ac(nowledged by
&urisprudence. !n employer is not
precluded from adopting a new
policy conducive to a more
economical and effective
management, and the law does not
require that the employer should
be suffering financial losses before
he can terminate the services of
the employee on the ground of
redundancy #8B35 PL737PP745-,
74) et al., vs. 4!+7B4!3 3!"B0
053!+7B4- )BFF7--7B4 et al.$
0. RETRENC@MENT to prevent losses
#there is e:cess of employees and
employer wants to prevent financial
losses$
LABOR LAW COMMITTEE
CONDITIONS ;NDER W@IC@ AN
EMPLOYER MAY RETRENC@:
#a$ substantial losses which are not
merely de minimis in e:tent/
#b$ imminence of such substantial
losses/
#c$ retrenchment would effectively
prevent the e:pected and additional
losses/
#d$ the alleged losses and e:pected
losses must be proven by sufficient and
convincing evidence. (N;*8,13HRI2
7)AN3A3I4NS# IN*!# (s! NA3I4NA) )AD4R
R2)A3I4NS *4$$ISSI4N# 23! A))
<. closing or CESSATION OF OPERATION
of the establishment or underta(ing
C435-- the closing is for the purpose
of circumventing the provisions of
the 3abor )ode.
8. INSTALLATION of labor saving
devices#!utomation, 0obotics$
7. DISEASE
a! the disease is incurable
5ithin 0 'onths and the
continued employment of
the employee is prohibited
by la5 or pre6udicial to his
health as 5ell as to the
health of his co8e'ployees
b! with a certification from
public heath officer that the
disease is incurable within 6
months despite due
medication and treatment.
"efore an employer could
dismiss an employee based on a
disease, -ection E of 0ule 1, "oo( >7
of the Bmnibus 0ules 7mplementing
the 3abor )ode requires a
certification by a competent public
health authority that the disease is
of such a nature or at such stage
that it cannot be cured within a
period of 6 months even with proper
medical treatment. (*athay 7acific
Air5ays (s! N)R* and $artha
Sin"son)
87-)07F74!+7B4 74 !4M GB0F
G0BF P05%5FP3BMF54+ +B PB-+%
5FP3BMF54+, 74)3C874I L7074I,
P0BFB+7B4 B0 !--7I4F54+, "!-58
B4 +L5 !)+C!3, P50)57>58 B0
-C-P5)+58 L7> -+!+C- BG !4
7487>78C!3 7- P0BL7"7+58.
+50F74!+7B4 G0BF AB0T B4 +L5
-B35 "!-7- BG !)+C!3, P50)57>58
B0 -C-P5)+58 L7> -+!+C- 7- 855F58
C43!AGC3. 6SEC. 08: RA 38=<:
@IVDAIDS LAW9
CA;SE OF
TERMINATION
SEPARATION PAY
A*"$-a"i$'
5quivalent to at
least one month pay $r
at least one month pay
for every year of
service, whichever is
higher
R&/*'/a',. 5quivalent to at
least one month pay $r
at least one month pay
for every year of
higher
R&"r&',!-&'" 5quivalent to one
month pay $r at least
one%half month pay for
every year of service
C($#*r&# $r
,&##a"i$' $%
$)&ra"i$'# '$"
/*& "$ #&ri$*#
+*#i'&## ($##&# $r
%i'a',ia( r&5&r#&#
5quivalent to one
month pay $r at least
one%half month pay for
every year of service
#7f due to severe
financial losses, no
separation pay due.$
Di#&a#& 5quivalent to at
least one%month salary
or to W month salary
for every year of
greater, a fraction of at
least 6 months shall be
considered one #1$
whole year.
NOTE, !0+7)35 2E3 governs the
grant of separation benefits Vin case of
closures or cessation of operation* of
business establishments 4B+ due to
serious business losses or cessation of
operation >North ;a(ao $inin" *orp! (s!
N)R*# et alA! +herefore, the employee
is not entitled to such benefit if the
LABOR LAW COMMITTEE
closure was due to -507BC- "C-745--
3B--5-.
Ahen termination of employment
is brought by the failure of an employee
to meet the standards of the employer in
case of probationary employment, it
shall be sufficient that a written notice
is served the employee within a
reasonable time from the effective date
of termination.
Ahen termination is brought about
by the completion of the contract or
phase thereof, no prior notice is
required
ART. 238. TERMINATION BY
EMPLOYEE
TERMINATION BY T@E EMPLOYEE:
a. WIT@O;T E;ST CA;SE- by serving a
WRITTEN NOTICE on the employer at
least one month in advance. +he
employer upon whom no such notice was
served may hold the employee liable for
damages.
+. WIT@ E;ST CA;SE - !n employee may
put an end to establish WIT@O;T
SERVING ANY NOTICE on the employer
for any of the following &ust causes
JS;CAK,
1. SERIO;S INS;LT by the
employer or his representative
on the hour and person of the
employee/
2. 7nhuman and ;NBEARABLE
TREATMENT accorded the
employee by the employer or his
representative/
3. )ommission of a CRIME OR
OFFENSE by the employer or his
representative against the
person of the employee or any of
the immediate members of his
family/ and
.. Bther causes ANALOGO;S to any
of the foregoing.
ART. 234. RETIREMENT
RETIREMENT AGE 8 +he age of
retirement is that specified in the )"! or
in the employment contract. 7n the
absence of a retirement plan or
agreement providing for retirement
benefits of employees in an
establishment, an employee upon
reaching the age of 60 years or more,
but not beyond 6 years which is hereby
declared as the compulsory retirement
age, who has served at least years in
said establishment.
+he rule is different with respect
to underground mining employees
whose optional retirement age is
0%60 provided they have at least
served for a period of years #!rt.
2E< as amended by 0! EE$.
BENEFITS% ! retiree is entitled to
a retirement pay equivalent to at least
W month salary for every year of service,
a fraction of at least si: #6$ months
being considered as one whole year.
Cnless the parties provide for
broader inclusions, the term 1one half
#192$ month salary2 shall mean,
1 days plus 1912 of the 13
th
month
pay and
the cash equivalent of 4B+ more
than days of service incentive
leaves.
#22. days per year of service$
Cnder -ection 26, 0.!. 4o. .6<0,
otherwise (nown as the Fagna )arta for
Public -chool +eachers, public school
teachers having fulfilled the age and
service requirements of the applicable
retirement laws shall be given B45
0!4I5 -!3!0M 0!7-5 upon retirement,
which shall be the basis of the
computation of the lump sum of the
retirement pay and the monthly benefit
thereafter.
NOTE, 5:empted from the payment
of retirement pay are retail, service and
LABOR LAW COMMITTEE
agricultural establishments or operations
employing 4B+ more than ten #10$
employees or wor(ers.
A& R&"ir&-&'"
60%6 O)"i$'a( but the
employee must have served
at least 8 .&ar#
6 C$-)*(#$r. #no need
for five years of service$
BOOK SEVEN
TRANSITORY AND FINAL PROVISIONS
TITLE II
PRESCRIPTION OF OFFENSES AND
CLAIMS
ART. 221. MONEY CLAIMS
PERIODS OF PRESCRIPTION
Ca*#& P&ri$/ $%
Pr&#,ri)"i$'
MONEY
CLAIMS
0 .&ar# from the
accrual of the causes of
action
;LP 1 .&ar from the
accrual of the cause of
action
ILLEGAL
DISMISSAL
< .&ar# from the
accrual of the cause of
action
REINSTA
TEMENT
< .&ar#
NOTE, +he period of prescription
mentioned under !rticle 2;2 of the
3abor )ode refers to and is limited to
money claims, all other cases of in&ury
to rights of a wor(ingman being
governed by the )ivil )ode. Lence,
REINSTATEMENT prescribes in . years.
VEN;E: +he 0egional !rbitration "ranch
where the wor(place is located #430)
0ules of Procedure.
LABOR LAW COMMITTEE
A))&'/i,&#
SPECIAL LAWS

SOCIAL SEC;RITY SYSTEM
RA1171 a# a-&'/&/ +. RA 3232
COVERAGE:
C$-)*(#$r.:
1. )ompulsory upon all employees
not over 60 years of age and
their employers
2. 7n case of domestic helpers,
their monthly income should not
be less than one thousand pesos
Li-i"a"i$': S&,. 2 6a9
a. !ny benefit already earned
by the employees under
private benefit plans e:isting
at the time of the approval
of the !ct shall not be
discontinued, reduced or
otherwise impaired
b. Private plans which are
e:isting and in force at the
time of compulsory coverage
shall be integrated with the
plan of the --- in such a way
where the employer*s
contribution to his private
plan is more than that
required of him in this !ct,
he shall pay to the --- only
the contribution required of
him and he shall continue his
contribution to such private
plan less his contribution to
the --- so that the
employer*s total contribution
to his benefit plan and and
to the --- shall be the same
as his contribution to his
private benefit plan before
any compulsory coverage.
c. !ny changes, ad&ustments,
modifications, eliminations
or improvements in the
benefits to be available
under the remaining private
plan, which may be
necessary to adopt by reason
of the reduced contribution
thereto as a result of the
integration shall be sub&ect
to agreements between the
employers and the
employees concerned
d. +he private benefit plan
which the employer shall
continue for his employees
shall remain under the
employer*s managementand
control unless there is an
e:isting agreement to the
contrary.
e. 4othing in this !ct shall be
construed as a limitation on
the right of employers and
employees to agree on and
adopt benefits which are
over and above those
provided under this act
3. )ompulsory upon such self% employed
persons as may be determined by the
)ommission including but not limited to
the following #-ec ;%!$, #APAPI9
1. !ll self employed
professionals
2. Partners and single
proprietors
3. !ctors and actresses
directors, scriptwriters and
news correspondents who do
LABOR LAW COMMITTEE
not fall within the definition
of the term employee in
-ection E #d$ of this !ct
.. Professional athletes,
coaches, trainers, and
&oc(eys
. 7ndividual farmers and
fishermen
V$(*'"ar.:
1. -pouses who devote full time to
managing the household and
family affairs, unless they are
also engaged in other vocation or
employment which is sub&ect to
mandatory coverage, may be
covered by the --- on a
voluntary basis.
2. Gilipinos recruited by foreign
based employers for employment
abroad may be covered by the
--- on a voluntary basis
3. 5mployees separated from
employment may continue to
pay contributions to maintain his
right to full benefits #-ec. 11$
.. -elf%employed with no income
#11%!$
BY AGREEMENT:
!ny foreign government,
international organi'ation, or their
wholly%owned instrumentality employing
wor(ers in the Philippines, may enter
into an agreement with the Philippine
government for the inclusion of such
employees in the --- e:cept those
already covered by their respective civil
service retirement systems #-ec.E #& #.$$.
E1CL;DED EMPLOYMENT 6SEC. 3 6E99,
1. 5mployment purely casual and not
for the purpose of occupation or
business of the employer
2. -ervice performed on or in
connection with an alien vessel by
an employee if he is employed when
such vessel is outside the
Philippines.
3. -ervice performed in the employ of
the Philippine government or
instrumentality or agency thereof.
.. -ervice performed in the employ of
a foreign government, international
organi'ation, or their wholly owned
instrumentality/
. -ervices performed by temporary
employees, which may be e:cluded
by regulation of the commission.
EFFECTIVE DATE OF COVERAGE:
1. E-)($.&r, 7t shall ta(e effect on
the first day of his operation
2. E-)($.&&, Bn the day of his
employment
3. S&(%-&-)($.&/, 7t shall ta(e
effect upon his registration with
---
D&%i'i"i$' $% T&r-#
EMPLOYER
!ny person natural or &uridical,
domestic or foreign, who carries on in
the Philippines, any trade business,
industry underta(ing or activity of any
(ind and uses the services of another
person who is under his orders as regards
the employment e:cept the Iovernment
and any of its political subdivisions,
branches or instrumentalities, including
corporations owned or controlled by the
Iovernment
S&(%- &-)($.&/ )&r#$' shall be
both the employer and employee at the
same time
EMPLOYEE
!ny person who performs
services for an employer in which either
or both mental and physical efforts are
used and who receives compensation for
such services, where there is an
employer% employee relationship.
S&(%- &-)($.&/ )&r#$' shall be
both the employer and employee at the
same time
DEPENDENTS:
1. +he legal spouse entitled by law
to receive support from the
member
2. the legitimate, legitimated or
legally adopted and illegitimate
child who is unmarried, not
gainfully employed and has not
reached 21 years of age or if 21
years of age, he is congenitally
LABOR LAW COMMITTEE
incapacitated or while still a
minor has been permanently
incapacitated and incapable of
self% support, physically and
mentally and
3. the parent who is receiving
regular support from the
member
BENEFICIARIES
a. +he dependent spouse until he
or she remarries, the
dependent legitimate,
legitimated or legally adopted
and illegitimate children who
shall be the primary
beneficiaries of the member
b. PROVIDED that the dependent
illegitimate children shall be
entitled to 0O of the share of
the legitimate, legitimated or
legally adopted children.
c. PROVIDED F;RT@ER in the
absence of the legitimated,
legally adopted or legitimate
children, illegitimate children
shall be entitled to 100O of
the benefits.
d. IN T@EIR ABSENCE, the
dependent parents who shall
be the secondary
beneficiaries.
e. IN T@E ABSENCE OF ALL of
the foregoing, any person
designated by the covered
employee as secondary
beneficiary.
B&'&%i"#
1. M$'"!(. )&'#i$'
2. D&)&'/&'"# )&'#i$'
7t shall be paid for each dependent
child conceived on or before the
date of the contingency but not
e:ceeding five, beginning with the
youngest without substitution
P0B>7858 that where there are
legitimate and illegitimate children,
the former shall be preferred.
0. R&"ir&-&'" +&'&%i"#
! member who has paid at least 120
monthly contributions prior to
the semester of retirement and
who,
a. has reached the age of
60 years and is already
separated from
employment or has
ceased to be self%
employed
b. has reached the age of
6 years, shall be
entitled for as
! covered member who is 60 years
old not qualified under 4o. 1
shall still be entitled to
retirement benefits P0B>7858,
he is separated from
employment and is not
continuing payment of
contributions to the --- on his
own.
-C-P54-7B4 BG FB4+L3M P54-7B4,
Cpon the re%employment or
resumption of self%employment
of a retired employee who is
less than 6 years old.
<. D&a"! B&'&%i"#
8. P&r-a'&'" /i#a+i(i". +&'&%i"#
7. F*'&ra( B&'&%i"
! funeral grant equivalent to +welve
thousand pesos #P12, 000.00$ shall
be paid, in cash or in (ind, to help
defray the cost of funeral e:penses
upon the death of a member,
including permanently totally
disabled member or retiree.
4. Si,A'&## +&'&%i"
0equirements,
a. ! member must have paid at
least 3 monthly contributions
in the twelve month period
semester of sic(ness or in&ury
b. and is confined therefor for
more than three days in a
hospital or elsewhere with the
approval of the ---
3. Ma"&r'i". L&a5& B&'&%i"
7t shall be paid to a female
employee who has paid at least 3
monthly contributions in the twelve
LABOR LAW COMMITTEE
month period immediately preceding
the semester of her childbirth or
miscarriage P0B>7858,
a. +hat the employee shall have
notified her employer of her
pregnancy and the probable
date of her childbirth which
notice shall be transmitted to
the ---.
b. +he full payment shall be
advanced by the employer
within 30 days from the filing
of the maternity leave
application
c. Payment of daily maternity
benefits shall be a bar to the
recovery of sic(ness benefits
d. +he maternity benefits
provided under this section
shall be paid only for the first
. deliveries or miscarriages
e. +he --- shall immediately
reimburse the employer 100O
of the benefits advanced by
the latter
f. 7f no contributions were
remitted by the employer or
no notice was given to --, the
employer shall be liable for
damages equivalent to the
benefits which said employee
member would otherwise have
been entitled to.
N$'-"ra'#%&ra+i(i". $% +&'&%i"# 6S&,.
189
-uch benefits are not transferable
and no power of attorney or other
document e:ecuted by those
entitled thereto, in favor of any
agent, attorney or any other person
for the collection thereof on their
behalf shall be recogni'ed, e:cept
when they are physically unable to
collect personally such benefits.
S$*r,&# $% F*'/
1. C$((&,"i$':
"eginning on the last day of the
month when an employee*s
compulsory coverage ta(es effect
and every month thereafter during
his employment, his employer shall
pay the employer*s contribution and
shall deduct and withhold from such
employee*s monthly salary the
employees contribution.
+he same time of collection for
self%employed
2. R&-i""a',&:
7t shall be remitted within the first
10 days of each calendar month
following the month for which they
are applicable or within such time
as the )ommission may prescribe.
Gor self%employed they shall
remit their contributions quarterly
on such dates and schedules as the
)ommission may require.
#NOTE, -55 +!"35 B4 -B)7!3 A53G!05
35I7-3!+7B4 GB0 )BFP!07-B4 A7+L
I-7-$
GO7ERN-ENT /ER7ICE
IN/URANCE /./TE-
RA <2CH
COMP;LSORY MEMBERS@IP 6S&,. 09
)ompulsory for all employees #as
defined in -ection 2 #d$ of I-7- 3aw$
receiving compensation who have not
reached the compulsory retirement age,
irrespective of employment status,
E1CEPT MEMBERS OF T@E ARMED
FORCES AND T@E PNP, sub&ect to the
condition that they must settle first
their financial obligations with the I-7-
and contractuals who have no employer
and employee relationship with the
agencies they serve.
E1CEPT FOR T@E MEMBERS OF
T@E E;DICIARY AND CONSTIT;TIONAL
COMMISSIONS W@O S@ALL @AVE LIFE
INS;RANCE ONLY, all members of the
I-7- shall have life insurance,
retirement and all other social security
protection such as disability,
survivorship, separation and
unemployment benefits.
COMP;TATION OF SERVICE
+he computation of service for
the purpose of determining the amount
of benefits payable shall be FROM T@E
LABOR LAW COMMITTEE
DATE OF T@E ORIGINAL APPOINTMENTD
ELECTION INCL;DING PERIODS OF SERVICE AT
DIFFERENT TIMES ;NDER T@E A;T@ORITY OF
T@E REP;BLIC OF T@E P@ILIPPINES AND T@OSE
T@AT MAY BE PRESCRIBED BY T@E GSIS IN
COORDINATION WIT@ T@E CIVIL SERVICE
COMMISSION.
!ll service credited for
retirement, resignation or separation for
which corresponding benefits have been
awarded shall be E1CL;DED in the
computation of service in case of
reinstatement in the service of an
employer and subsequent retirement or
separation which is compensable.
D&%i'i"i$' $% T&r-#
E-)($.&r:
+he national government, its
political subdivisions, branches,
agencies or instrumentalities
including IB))*s and financial
institutions with original charters,
the constitutional commissions and
the &udiciary
E-)($.&& $r M&-+&r:
!ny person receiving compensation
while in the service of an employer
as defined herein, whether by
election or appointment,
irrespective of status appointment,
D&)&'/&'"#:
1. +he legitimate spouse dependent
for support upon the member or
pensioner
2. +he legitimate, legitimated
legally adopted child, including
the illegitimate child who is,
a. unmarried,
b. not gainfully employed,
c. not over the age of
ma&ority,
d. or is over the age of
ma&ority but
incapacitated and
incapable of self%support
due to a mental or
physical defect acquired
prior to age of ma&ority
3. Parents dependent upon the
member for support
Pri-ar. B&'&%i,iar.
+he legal dependent spouse until
he9she remarries
S&,$'/ar. B&'&%i,iar.
+he dependent parents and sub&ect
to the restrictions on dependent
children, the legitimate descendants
Di#a+i(i".
!ny loss or impairment of the normal
functions of the physical and9or
mental faculty of a member which
reduces or eliminates his9her
capacity to continue with his9her
current gainful occupation or engage
in any other gainful occupation.
T$"a( Di#a+i(i".
)omplete incapacity to continue
with his present employment or
engage in any gainful occupation due
to the loss or impairment of the
normal functions of the physical
and9or mental faculties of the
member
P&r-a'&'" T$"a( Di#a+i(i".
!ccrues or arises when recovery
from impairment mentioned in
-ection 2 #N$ (definin" disability) is
medically remote
T&-)$rar. T$"a( Di#a+i(i".
!ccrues or arises when impaired
physical and9or mental faculties can
be rehabilitated and9or restored to
their normal functions
P&r-a'&'" Par"ia( Di#a+i(i".
!ccrues or arises upon the
irrevocable loss or impairment of
certain portion9s of the physical
faculties, despite which the member
is able to pursue a gainful
occupation.
S $*r,&# $% F*'/
C$'"ri+*"i$'#
1. 7t shall be mandatory for the
member and the employer to
pay the monthly contributions.
2. +he employer shall include in its
annual appropriation the
necessary amounts for its share
of the contributions indicated
LABOR LAW COMMITTEE
above P3C- any additional
premiums that may be required
on account of the ha'ards or
ris(s of its employees
occupation.
3. Gailure to do so shall sub&ect the
employers to penal or
administrative sanctions.
C$((&,"i$' a'/ R&-i""a',&
1. C$((&,"i$', +he employer shall
report to the I-7- all pertinent
information regarding the
employee and shall deduct each
month from the salary or
compensation of each employee
the contribution payable by him.
2. R&-i""a',&: +he employer shall
remit directly to the I-7- the
employees and employers
contributions within the first ten
#10$ days of the calendar month
following the month to which the
contributions apply.
B&'&%i"#
1. SEPARATION BENEFITS 6SEC.
119:
-eparation benefits are given
to the,
a. +he member resigns or
separates from the service
after he has rendered at
least three #3$ years of
service but less than fifteen
#1$ years or
1. +he member resigns or
separates from office after
he has rendered at least
fifteen #1$ years of service
and is below si:ty #60$ years
of age at the time of
resignation or separation.
-eparation benefits li(ewise
include,
;NEMPLOYMENT OR
INVOL;NTARY SEPARATION
BENEFITS 6S&,. 129: shall be
paid to a permanent employee
who is involuntarily separated
from the service due to the
abolition of his office or position
usually resulting from
reorgani'ation PRO7IDED that
he has been paying integrated
contributions for at least one #1$
year prior to contributions.
2. RETIREMENT BENEFITS,
)onditions for entitlement #-ec.
13%!$,
Fember has rendered at least 1
years of service
Le is at least 60 years of age at
the time of retirement
Le is not receiving a monthly
pension benefit from
permanent total disability
0. PER-ANENT DI/ABILIT.
BENE0IT/
,eneral *onditions for
2ntitle'ent (Sec! 15),
+he member must have suffered
permanent disability for reasons
4B+ 8C5 to,
1. Irave misconduct
2. 4otorious negligence
3. Labitual into:ication, or
willful intention to (ill
himself or another.
Specific conditions for
entitle'ent (Sec! 10),
Le shall receive monthly income
benefit for life equal to the
basic monthly pension effective
from the date of the disability.
P0B>7858,
1. Le is in the service at the
time of the disability
2. IF SEPARATED FROM
SERVICE, he has paid at least
36 monthly contributions
within the year period
disability or has paid a total
of at least 1E0 monthly
contributions prior to the
disability
3. IF @E WAS IN SERVICE AND
@AS PAID A TOTAL OF AT
LEAST 13= MONT@LY
CONTRIB;TIONS, in addition
to the monthly income
benefit, he shall receive a
cash payment equivalent to
LABOR LAW COMMITTEE
San Beda College of Law !
1E times his basic monthly
pension
.. Lowever, a member cannot
en&oy the monthly income
benefit for permanent
disability and the old age
retirement simultaneously.
Cnless the member has reached
the minimum retirement age,
disability benefits shall be
-C-P54858 when,
1. Le is reemployed
2. Le recovers from his
disability as determined by
the I-7-, whose decision
shall be final and binding
3. Le fails to present himself
for medical e:amination
when required by the I-7-
PERMANENT PARTIAL
DISABILITY 6S&,. 149:
Le must satisfy specific
conditions 1%3.
<. TEMPORARY DISABILITY
BENEFITS 6S&,. 139
+he member shall be entitled to
<O of the current daily
compensation for each day or
fraction thereof of temporary
disability benefit not e:ceeding
120 days in one calendar year
after e:hausting all sic( leave
credits and collective bargaining
agreement sic( leave benefits.
P0B>7858,
1. Le is in service at the time
of his disability
2. 7f separated, he has
rendered at least 3 years of
service and has paid at least
6 monthly contributions in
the 12% month period
disability
@OWEVER, a member cannot
en&oy temporary total disability benefit
and sic( leave pay simultaneously
IN ADDITION: 7f the disability
requires more e:tensive treatment that
lasts beyond 120 days, the payment of
the temporary total disability benefit
may be e:tended by the I-7- but not to
e:ceed a total of 2.0 days
LASTLY, and in no case shall the
benefit be less than <0 pesos a day.
8. S;RVIVORS@IP BENEFITS:
Gor purposes of survivorship
benefits, legitimate children
shall include legally adopted
and legitimated children.
D&a"! $% a M&-+&r
Cpon the death of a member, the
primary beneficiaries shall be entitled
to,
1. S;RVIVORS@IP PENSION,
P0B>7858,
a. Fember was in service at
the time of his death
b. 7f separated from service,
has rendered at least 3
years of service and paid
36 monthly contributions
with the % year period
immediately preceding his
death or has paid a total of
at least 1E0 monthly
contributions.
2. S;RVIVORS@IP PENSION PL;S A
CAS@ PAYMENT EC;IVALENT TO
1==O OF @IS AVERAGQE
MONT@LY COMPENSATION FOR
EVRY YEAR OF SERVICE
P0B>7858, +he deceased was in
the service at the time of his
death with at least three years of
service
0. S;RVIVORS@IP PENSION PL;S A
CAS@ PAYMENT EC;IVALENT TO
1==O OF @IS AVERAGE MONT@LY
COMPENSATION FOR EVERY YEAR
OF SERVICE @E PAID
CONTRIB;TIONS B;T NOT LESS
T@AN P12: ===
P0B>7858 +hat the deceased has
rendered at least 3 years of
service prior to his death but does
not qualify under 1 and 2.
ORDER OF PAYMENT OF T@E
S;RVIVORS@IP PENSION
1. Ahen the dependent spouse is
the only survivor, he9shall
LABOR LAW COMMITTEE
San Beda College of Law "
receive the basic survivorship
pension for life or until he9she
remarries.@
2. Ahen only dependent children
are the survivors, they shall be
entitled to the basic
survivorship pension for as long
as they are qualified, plus the
dependent children*s pension.
3. Ahen the survivors are the
dependent spouse and the
dependent children, the
dependent spouse shall receive
the basic survivorship pension
for life or until he9she
remarries, and the dependent
children shall receive the
dependents pension.
IN T@E ABSENCE OF PRIMARY
BENEFICIARIES: T@E SECONDARY
BENEFICIARIES S@ALL BE ENTITLED
TO:
1. )ash payment equivalent to
100O of his average monthly
compensation for each year of
service he paid contributions,
but not less than P12,000
P0B>7858 that the member is in
service at the time of his death
and has at least 3 years of
service.
2. 7n the absence of secondary
beneficiaries , the benefits
under this paragraph shall be
paid to the legal heirs
6. F;NERAL BENEFITS,
7t shall not be less than twelve
thousand pesos #P12,000.00$
P0B>7858 that it shall be
increased to at least eighteen
thousand pesos #P1E,000.00$
after five years and shall be paid
upon death.
4. LIFE INS;RANCE BENEFITS
!ll employees e:cept members
of the !GP and the P4P shall be
compulsorily covered with life
insurance.
A/F*/i,a"i$' $% C(ai-# a'/ Di#)*"&#
PRESCRIPTION OF CLAIMS
)laims for benefits under the !ct
e:cept for life and retirement shall
prescribe AFTER < YEARS FROM T@E
DATE OF T@E CONTINGENCY.
K;RISDICTION
I-7- shall have the e:clusive and
original &urisdiction to settle any dispute
arising under the !ct and any other laws
administered by the I-7-.
!ppealable under 0ule .3 and .
Bf the 1;;< 0ules of )ivil Procedure. +he
appeal shall not stay the e:ecution of
the order or award unless ordered by the
"oards, )!, or -) and the appeal shall
be without pre&udice to the special civil
action of certiorari when proper.
LABOR LAW COMMITTEE

San Beda College of Law: Book Five

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MEMORY AID IN LABOR LAW

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