Labor Relations: it defines the status, rights and duties and the institutional mechanisms that govern the

individual and collective interactions of employers, employees and their representatives

Collective labor relations: it starts when the workers organize themselves into a union or some
other form of association. This should be free from the employers interference because such
interference is tantamount to unfair labor practice.
Main objective of a union: to represent to the employer the needs and interests of the
employees.
Work stoppage: strike (laborers) or lockout (employer). It is a legal right but regulated.

SYLLABUS #2 EMPLOYEE-EMPLOYER RELATIONSHIP

Employer- any person, natural or juridical, domestic or foreign, who carries it in the Philippines,
any trade, business or activity of any kind and uses the service of another person under his
control.
Employee- any person who performs services for an employer, in which either of both mental
and physical efforts are used and who receives compensation for such services.
Characteristics of an Employee
1. It includes any employee, that shall not be limited to the employee of any particular
employer, unless the act states otherwise.
2. It shall include any individual whose work has ceased by reason of a current labor dispute;
and who had not obtained any substantial equivalent and regular employment.
Independent contractor vs. agent

DEFINITIONS

Independent contractor- engaged in a legitimate contracting of sub-contracting arrangement

providing either services, workers, temporary workers or a combination of services to a principal
under a service agreement.

Contractor/sub-contractor- an arrangement whereby the principal agrees to farm out with a

contractor or service within a definite or predetermined period, regardless whether such job be
completed within or outside the premises of the principal.

Agent- it is a labor-only contracting. It merely recruits, supplies or places workers to perform a

job, service.

Control- over the manner and method, not merely the results.

Independent contractor Agent

It has a substantial capital or investment in the
form of tools, equipment or machineries
The contractor exercises control over the
performance of the employees. It undertakes
to perform the job or service on his own
responsibility , according to its own manner
and method and free from control and
No substantial capital or investment
The performance of activities directly related
or usually or desirable to the principals main
business
The contractor does not have control over the
performance of the employees
 direction of the principal except as to the
results thereof

Principals liability in legitimate contracting: it shall be solidarily liable with the contractor in
the event of any violation of any provisions of the labor code including failure to pay wages; to
the extent of the work performed under the contract.

Contractors liability in legitimate contracting: solidarily liable; but has the right to be
reimbursed by the principal.

Essentiality of EE-EER relationship.

To determine if the conditions and standards of employment apply.

Test of EE-ER

Four fold test- a) selection and engagement of the employee; b) the payment of wages;
c) power to dismiss; d) employers power to control the employee with respect to the
means and methods by which the work is to accomplished.
Power to control- best test of EE-ER
Two- tiered test (economic dependence test)- Sevilla vs Court of Appeals points out
that there is no uniform test to determine the existence of EE-ER relationship. 1) the
putative employers power to control the employee with respect to the means and
methods by which the work is to be accomplished; 2) economic realities of the activity
or relationship.

2.a The extent to which the services performed are an integral part of the
employers business.

2.b The extent of the workers investment in equipment and facilities

2.c The nature and degree of control exercised by the employer

2.d The degree of dependency of the worker upon the employer for his
continued employment in that line of business

2.f. The permanency and duration of the relationship of the worker and the
employer

Note: The existence of EE-ER relationship is determined by law and not by contract.

SYLLABUS #3 RIGHT TO SELF-ORGANIZATION

Freedom of association; 2 broad concepts (Right to self-Organization)
1. Right to form, join or assist labor organization
2. Right to engage in lawful concerted activities
- These are twin rights but they may be exercised separately
- An unregistered LO does not have the right to represent its members because it is not a
legal person and does not possess legal representative status. In their individual names,
should be the complainants.
Constitutional and Statutory Basis
Section 3, Article 13- The rights of the people, including those employed in the public or
private sectors, to form unions, associations or societies for purposes not contrary to law
shall not be abridged.
 Section 8, Article 3. The right of self-organization shall not be denied to government
employees. No officer of employee of the civil service shall be removed or suspended
except by cause provided by law.

DO No. 40-03: provides the following definitions:

o Labor organization- refers to any union or association of employees in the
private sector which exist in whole or in part for the purpose of collective
bargaining, mutual aid interest, cooperation and protection.
o Legitimate Labor organization- labor organizations in the private sector
registered or reported with the DOLE.
o Union- refers to any LO in the PS organized for collective bargaining and other
legitimate purposes. Not every union is Legitimate. Non registration does not
automatically mean illegitimacy, it is simply unregistered and no legal
personality.
o Exclusive bargaining representative- it is a legitimate labor organization
recognized by the employer or through an election among the employees whom
the union will represent. It is the sole agent of all employees in a bargaining unit
o Workers association- it is organized for the mutual aid and protection of its
members of for any legitimate purpose other than collective bargaining.
Purpose of the exercise of the right
1. Collective bargaining- it is a right acquired by a LO after being recognized by DOLE as
the ERB of the employees.
2. Dealing with the employer- generic term of for interaction between the employer
and the employees concerning grievances, wages, work hours and other terms and
conditions of employment.
Registration of union
-it gives a labor union the legal personality to demand collective bargaining with
the employer, petition for a certification election or request a preventive
mediation and to hold strike.
-however, it is not a limitation to the right of assembly or association but only a
sine qua non for the acquisition of legal personality
Where to file: regional offices
Classification of Labor Organization

National level

1. Federation/ national union- it has at least 10 chapters, each of which are duly certified
CBU.
2. Industry union- operating within an identified industry organized for CB of for dealing
with employers
3. Trade Union- for mutual aid and protection of its menbers in CB
4. Alliance- it is an aggregation of unions existing in one line of industry to help one
another in the attainment of a particular purpose.
 Affiliation/ disaffiliation
Affiliation- when an independently registered union enters into an agreement of
affiliation with a federation or a national union
Reasons to affiliate:
1. To secure assistance in preparing and pursuing bargaining proposals
2. Marshal mind and manpower in the course of group action.

Principal-agent relationship- relationship between a local chapter and a labor

organization. The local is the principal; federation is the agent. The local has a distinct
existence, owing its creation to the will of the members.

Disaffiliation- separation of a local union from a federation.

Basis; local unions has a separate and voluntary association.

When to disaffiliate: 60 day freedom period immediately preceding the expiration of the
CBA. It must be a majority decision.

Substitutionary doctrine- the employees cannot revoke the validly executed CBA with
their employer by reason of changing their bargaining agent. The new agent must
respect the contract. EXP; to negotiate with the management to the shortening thereof.

Merger- or absorption. A labor organization absorbs another. The existence of the

absorbed union ceases and the absorbing union continues.

Consolidation- formation of a new union arising from the unification of two or more
unions.

BLR Jurisdiction (Bureau of Labor Relations); Intra and Inter union disputes
- It has the original and exclusive authority to act in their own initiative or by request
of either or both parties on:
1. All inter union and intra union disputes
2. Disputes, grievances or problems arising from or affecting labor management
relations.
EXP: Grievances, disputes or conflicts arising from the implementation or
interpretation of CBA- this is subject to grievance procedure or voluntary
arbitration.

Inter union dispute- between and among labor unions involving representation for the
purposes of CB or to any dispute between LLU.

Intra union dispute- conflict between and among members, including grievances arising from
violation of rights and conditions of membership or disagreement over any provision of the
unions by-laws.

Who will file?: LLO or its members; at least 30% of the membership
 Cancellation of Registration- can be cancelled by the BLR
Grounds for Cancellation
1. Misrepresentation, false statement or fraud in the connection with the ratification
or adoption of the constitution, by-laws, minutes of ratification and the list of
members who took part in the ratification.
2. MFF in connection with the election of officers, minutes of such election and the list
of members who voted.
3. Voluntary dissolution

Voluntary dissolution of members

1. Desire to dissolve or cancel the registration of the union through secret balloting
2. Balloting shall take place in a meeting, duly called for that purpose.
3. 2/3 of its general membership will actually participate
4. It must be submitted by the board of the organization, duly attested to by the president

Effect of cancellation- it divest the organization from the status of being an LLO and it reverts
to its character prior to registration.

Invalid Grounds

1. Illegal strike
2. Non-renewal of registration
3. Non-renewal of permit

Filed by: any interested party. E.g employer