LABOR STANDARDS

Waitresses
Art. 138 LC on classification of certain women workers. Since

complainantsareundertheeffectivecontrolandsupervisionofrespondent,they
arethereforeconsideredasemployeesandentitledtofullbackwagesbasedonthe
minimumwagefortheappropriateperiodplus85%ofthecollectedservice
charges.

PizCorp control test

ApplyingtheControlTest,PizCorpistheemployerofRSCmembersbecauseif
PizCorpismateriallyprejudicesbyanyactofthedeliverycrewthatviolated
PizCorpsdirectivesandorders,PizCorpcandirectlyimposedisciplinary
sanctionson,includingthepowertodismiss,theerringRSCmember/s.clearly,
PizCoropcontrolstheRSCmembersconductnotonlyastotheendtobeachived
butalsoastothemeansofachievingtheends

GROs want form union for collective bargaining

First, allowed. Entitled to same benefits and rights granted to

employee/workers under the consti including right to form labor orgs
for purposes of collective bargaining. 138
Second, not allowed because employees only by ficion of law. Art.243

oftheLaborCodehoweverexcludesambulant,intermittentanditinerant
workersxxxandthosewithoutanydefiniteemployerssuchastheGROshere,
fromexercisingtherighttoselforganizationxxxforpurposesofcollective
bargaining.Theycanonlyformlabororganizationfortheirmutualaidand
protection.

Hired, contract approved but employment denied even before

starting because found new man

AnemployeremployeerelationshipalreadyexistedbetweenRichieandMRA.
MRAandSR,asanagentofMRA,alreadyapprovedandselectedandengaged
theservicesofRichie.

Teacher took pity on 12 year old, makes him fetch water etc,
pays him too

Thedefenseisnottenable.Childrenbelowfifteen(15)yearsofageshallnotbe
employedexcept:
(1)whenachildworksdirectlyunderthesoleresponsibilityofhis/herfamilyare
employedxxx;or
(2)whereachildsemploymentorparticipationinpublicentertainmentor
informationthroughcinema,theater,radio,televisionorotherformofmediais
essentialxxx.(Section12,R.A.No.7610,asamendedbyR.A.No.9231).
Again, general rule is if child is below 15, not allowed to work.
Exception is when under sole responsibility of his parents or when in
public entertainment or information.

Changed weight requirement from that during employment; Fat

Steward

No,whiletheweightstandardsforcabincrewmaybeavalidcompanypolicyin
lightofitsnatureasacommoncarrier,theairlinecompanyisnowestoppedfrom
enforcingtheManualasgroundfordismissalagainstA.ithiredAdespiteher
weightof170pounds,incontraventionofthesameManualitnowinvoked.
However,Ahadalreadybeenemployedfortwo(2)yearsbeforetheairline
companyimposedonherthisweightregulation,andnaryanincidentdidthe
airlinecompanyraisewhichrenderedheramissofherduties.
But again, were it not for the change, and subsequent estoppel, the
constant standard on weight requirement is valid. It is a reasonable
imposition by reason of flight safety.

Flight attendant must be single; stewardess lied reasoned that

annulment on the way

No,whiletheweightstandardsforcabincrewmaybeavalidcompanypolicyin
lightofitsnatureasacommoncarrier,theairlinecompanyisnowestoppedfrom
enforcingtheManualasgroundfordismissalagainstA.ithiredAdespiteher
weightof170pounds,incontraventionofthesameManualitnowinvoked.
Thisiskindofweakbut:itcouldbearguedthathercontentionistenable
consideringArt.138ofLCprohibitingdiscriminationagainstmarriedwomen.

Drug company policy: Valid, but inapplicable until they actually

get married

Five-month contracts: a Circumvention

SupremeCourtsetdownthecriteriaunderwhichfixedcontractsofemployment
donotcircumventthesecurityoftenure,towit:
(1)Thefixedperiodofemploymentwasknowinglyandvoluntarilyagreedupon,
withoutanyforce,duressorimproperpressureupontheemployeeandabsentany
othercircumstancesvitiatinghisconsent;or
(2)Itsatisfactorilyappearsthattheemployerandemployeesdealtwitheach
otheronmoreorlessequaltermswithnomoraldominanceovertheemployee.
Lina,et.al.,arenotonequaltermswiththeiremployersanddidnotagreetoa5
monthcontract.TheschemeofSDStopreventworkersfromacquiringregular
employment,violatessecurityoftenureandcontrarytopublicpolicy.

Reasonable Prohibition; Protect trade secrets

Inday,massagepls

Anemploymentcontractprohibitingemploymentinacompetingcompanywithin
areasonableperiodofoneyearfromseparationisvalid.Theemployerhasthe
righttoguarditstradesecrets,manufacturingformulas,marketingstrategiesand
otherconfidentialprogramsandinformations.

Indaysrefusaltogiveheremployeraprivatemassageemployerisin
accordancewithlawbecausethenatureoftheworkofadomesticworkermustbe
inconnectionwithhouseholdchores.Massagingisnotadomesticwork.

Driver,unknowntoemployed,wasjailedsohewasdismissed

Baldoisentitledtoreinstatement.Althoughheshallnotbeentitledtobackwages
duringtheperiodofhisdetention,butonlyfromthetimethecompanyrefuseto
reinstatehim.(Magtotov.NLRC,140SCRA58[1985].
Youcanalsoargueotherwise:Baldoisnotentitledtoreinstatementand
backwaages.Thedismissalwasforcause,i.e.,AWOL.Baldofailedtotimely
informtheemployerofthecauseofhisfailuretoreportforwork;hence,
prolongedabsenceisavalidgroundtoterminateemployment.

Helpervslabandera

Theforegoingdefinitionclearlycontemplatessuchhousehelperordomestic
servantwhoisemployedintheemployershometoministerexclusivelytothe
personalcomfortandenjoymentoftheemployersfamily.Thecriteriaisthe
personalcomfortandenjoymentofthefamilyoftheemployerinthehomeofsaid
employer.Whileitmaybetruethatthenatureoftheworkofahousehelper,
domesticservantorlaundrywomaninahomeorinacompanystaffhousemaybe
similarinnature,thedifferenceintheircircumstancesisthatintheformer
instancetheyareactuallyservingthefamilywhileinthelattercase,whetheritisa
corporationorasingleproprietorshipengagedinbusinessorindustryoranyother
agriculturalorsimilarpursuit,serviceisbeingrenderedinthestaffhousesor
withinthepremisesofthebusinessoftheemployer.
Themerefactthatthehousehelperordomesticservantisworkingwithinthe
premisesofthebusinessoftheemployerandinrelationtoorinconnectionwith
itsofficersandemployees,warrantstheconclusionthatsuchhousehelperor
domesticservantisandshouldbeconsideredasaregularemployeeofthe
employerandnotconsideredasamerefamilyhousehelperordomesticservantas
contemplatedinRuleXIII,Section1(b),Book3oftheLaborCode,asamended
(ApexMiningCompany,Inc.v.NLRC,

HousehelpervsHomeworker

Art.141.DomesticHelperonewhoperformsservicesintheemployershouse
whichisusuallynecessaryordesirableforthemaintenanceandenjoymentthereof
andincludesministeringtothepersonalcomfortandconvenienceofthemembers
oftheemployershousehold,includingtheservicesofafamilydriver.
Art.153.Homeworkerisanindustrialworkerwhoworksinhis/herhome
processingrawmaterialsintofinishedproductsforanemployer.Itisa
decentralizedformofproductionwithverylimitedsupervisionorregulationof
methodsofwork.

Discuss the statutory restrictions on the employment of

minors? (5%): 272, 278

LaborOnlyvsJobOnly

Laboronlycontracting:
Thecontractorhassubstantialcapitalorinvestmentintheformoftools,
equipment,machineries,workpremises,amongothers,andtheemployeesofthe

contractorareperformingactivitieswhicharedirectlyrelatedtothemainbusiness
oftheprincipal
LegitimateJobContracting:
Thecontractorhasubstantialcapitalandinvestmentintheformoftools,
equipment,etc.andcarriesadistinctandindependentbusinessandundertakesto
performthejob,workorserviceonitsownmannerandmethod,andfreefrom
controlanddirectionoftheprincipalinallmattersconnectedwiththe
performanceoftheworkexceptastotheresultsthereof(Escasinasv.Shangrilas
MactanIslandResort,580SCRA344[2009]).
LaboronlycontractingisprohibitedwhileJobContractingisallowedbylaw.
InJobOnlycontracting,theprincipalisonlyanindirectemployerheisonluliable

foralimitedpurpose:wagesandviolationoflaborstandardlaws,thereisnoyee
yerrel;whereas,inLaboronlycontracting,theprincipalbecomesthedirect
employeroftheemployeesofthelaboronlycontractor,liabilityissolidary
becauseemploymentrelationshipexists.

Presumption:LaborOnlyunlesssubstantialcapitalORsubstantialinvestment

Art. 106 of the Labor Code provides that the contractor has
substantial capital OR investment; the law did not say
substantial capital and investment. Hence, it is in the alternative; it
is sufficiant if the contractor has one or the other, i.e., either the
substantial capital or the investment.
Substantialcapitalneednotbecoupledwithinvestmentintoolsorequipment.Aperson
isnotalaboronlycontractorifhehassubstantialcapitalalthoughwithoutequipmentor
tools.

Had capital, investment control but only has one client and one
of its major owners is a member of the BOD of that one client

MMSI is engaged in labor-only contracting. For one, the workers

supplied by MMSI to Jolli-Mac are performing services which are
directly related to the principal business of Jolli- Mac. This is so
because the duties performed by the workers are integral steps in
or aspects of the essential operations of the principal[la (Baguio, et

al. v. NLRC, et al., 202 SCRA 465 [1991]; Kimberly Independent

Labor Union, etc. v. Drillon, 185 SCRA 190 [1990]. For another,
MMSI was organized by Jolli- Mac itself to supply its personnel
requirements (San Miguel Corporation v. MAERC Integrated
Services

Considerthesefactors:

Apart from the substantial capitalization or investment in the form

of tools, equipment, machinery and work premises, the following
factors need be considered.
(A) whether the contractor is carrying on an independent business;
(B) the nature and extent of the work;
(C) the skill required;
(D) the term and duration of the relationship;
(E) the right to assign the performance of specific pieces of work;
(F) the control and supervision of the workers;
(G) the power of the employer with respect to the hiring, firing and
payment of workers of the contractor;
(H) the control of the premises;
(I) the duty to supply premises, tools, appliances, materials, and
labor; and
(J) the mode, manner and terms of payment.

SSSifLO

Since RSC is a labor-Only contractor and, therefore, considered a

mere agent of PizCorp. PizCorp, as the real employer, has the legal
obligation to report the RSC members as its employees for
membership with the SSS and remit its premium.

Hiredsacruiseshipbutnodeparturewasmade

Employmentalreadyperfected.Breachgivesrisetocausesofaction:

(1) A can file a complaint for Recruitment Violation for XYZs failure

to deploy him within the prescribed period without any valid

reason, a ground for the imposition of administrative sanctions
against XYZ
(2) At the same time, A can file for illegal recruitment under Section
6(L) of Rep. Act No 8042

Say,arguethatthereisnoyeeyerrel,damagescanstillbeclaimed.

A may file a complaint for breach of contract, and claim damages

therefor before the NLRC, despite absence of employer-employee
relationship. Section 10 of Rep. Act No 8042 conferred jurisdiction
on the Labor Arbiter not only claims arising out of EER, but also by
virtue of any law or contract involving Filipino workers for overseas
deployment including claims for actual, moral, exemplary and other
forms of damages.

Apparent authority of unregistered employee

X performed his work with the knowledge that he works for a

licensed recruitment agency. He is in no position to know that the
officers of said recruitment agency failed to register him as its
personnel (People v. Chowdury, 325 SCRA 572 [2000]). The fault
not being attributable to him, he may be considered to have
apparent authority to represent Alpha in recruitment for overseas
employment.
Moreover, failure to reimburse expenses incurred by the worker in
connection with his documentation and processing for purposes of
deployment, in cases where the deployment does not actually take
place without the workers fault, amounts to illegal recruitment.

IllegalRecruitmentRA8042

There are two types of illegal recruitment , particularly simple

illegal recruitment and illegal recruitment which is considered as

an offense involving economic sabotage (by three of more or against

3 or more).
See: LC Arts 13(b), 34 and 38

Searchwarrant:Judgeonly,notallowedangSec.ofDOLE

Under Article III, Section 2, of the l987 Constitution, it is only judges, and no other, who may
issue warrants of arrest and search:
2. The exception is in cases of deportation of illegal and undesirable aliens, whom the
President or the Commissioner of Immigration may order arrested, following a final order of
deportation, for the purpose of deportation.

Grounds for disciplinary action by the Philippine Overseas

Employment Administration (POEA) against overseas workers

A) Pre-employment Offenses
(1)
(2)

Using, providing, or submitting false information or

documents for purposes of job application or employment;
Unjustified refusal to depart for the worksite after all
employment and travel documents have been duly approved
by the appropriate government agency/eis.

(B) Offenses during Employment

(1) Commission of a felony or a crime punishable by Philippine
Laws or by the laws of the host country;
(2) Unjustified breach of employment contract;
(3) Embezzlement of company funds or monies and/or
properties of a fellow worker entrusted for delivery to kin or
relatives in the Philippines; and
(4) Violation/s sacred practice of the host country.

Howfacilitiesformpartorwage

Even if food and lodging were provided and considered as facilities

by the employer, the employer could not deduct such facilities from
its workers wages without compliance with law
1) Proof that such facilities are customarily furnished by the
trade
2) The provision of deductible facilities is voluntarily accepted in
writing by the employee
3) The facilities are charged at the fair and reasonable value.
Mere availment is not sufficient to allow deduction from the
employees wages.

Strike? No work no pay principle applies to supervisors: fair days

wage for a fair days labor

OT waiver

As a general rule, overtime compensation cannot be waived,

whether expressly or impliedly; and stipulation to the contrary is
against the law. An excep0tion would be the adoption of a
compressed work week on voluntary basis
Yes, A may validly refuse to fill in for C. a may not be compelled to
perform overtime work considering that the plant managers
directive is not for an emergency overtime work, as contemplated
under Article 89 of the Labor Code.

Wage Distortion NOT a ground for strike

The existence of wage distortion is not a valid ground for staging a

strike because Art. 124 of the Labor Code provides for a specific
method or procedure for correcting wage distortion. In Ilaw at
Buklod ng Manggagawa vs. NLRC, (198 SCRA586, 594-5 [1991]),
the Court said.
Organized establishment follow the grievance procedure as
provided for in the CBA, ending in voluntary arbitration.

Unorganized establishment employer and workers, with the aid of

the NCMB shall endeavor to correct the wage distortion, and if they
fail, to submit the issue to the NLRC for compulsory arbitration.