LABOR RELATIONS

• It denotes all aspects of ER-EE relationship w/c involve Q: How may the NLRC exercise its quasi-judicial powers?
concerted action on the part of the workers. A: It is exercised thru the different divisions. There are 8
• It is usually associated w/: divisions. In each division, there are 3 commissioners. The
1. unionism; chairman comes from the gov’t. The others, from both the
2. collective bargaining; management and labor sectors.
3. negotiations; and
4. concerted activities (strike, picket, mass leave) NLRC LABOR ARBITER

• The purpose of LabRel is to align the differences b/w IBP member IBP member
ER-EE so that there will be peace, tranquility and order.
15 years in practice of law 10 years in practice of law
PARTIES:
5 years experience in Labor 5 years experience in Labor
• In the event of labor dispute, there are 4 parties management management
involved:
(a) Immediate/ Active parties (ER & EE) Assigned in the region where
(b) Passive/ Inactive parties (Gov’t & Public) he comes from

Q: Is there an instance where a passive party becomes an

active party? • The functions of NLRC are appointing, investigative
and administrative.
A: YES. In case a LD in an industry indispensable to - BUT the ff. are the quasi-judicial powers:
national interest. In the case of a vital industry
1. Contempt powers
dispute, where the President/ Sec. of Labor can assume
2. Injunctive power
jurisdiction.
3. Power to resolve certified cases under Art.
263-G (assumption power)
ex. There is a LD in PAL, it is a vital industry. The ER & EE
4. Appellate power
are the active parties.
QUASI-JUDICIAL POWERS OF NLRC:
Q: The gov’t and the public are passive parties,
BUT may the gov’t be an active party in this case?
(1) CONTEMPT POWER OF NLRC
A: YES. For purposes of resolving the VID.
• It is to preserve the dignity of the commission. Direct
contempt, pursuant to the NLRC 2011 Rules and
• The Pres or the Sec. of Labor (gov’t) can assume such Procedure of Labor Code. Indirect contempt, pursuant to
jurisdiction over LD in PAL in order to protect national
Rule 71 of the Rules of Procedure.
interest.
(2) INJUNCTIVE POWER
Q: What happens if the gov’t does not intervene?
A: In terms of economy, there will be no income on the • The NLRC can issue of TRO or a writ of injunction.
These must be issued upon the observance of due
part of the ER. There will be no wages, salaries on the
process. The TRO may be issued even without a
part of the EE. In terms of economy of the nation, affected.
hearing. However, in issuing a writ of injunction there
In terms of the production of the workers, if there is a
must be a hearing to be conducted.
strike, then there will be no work. This is why the gov’t can
intervene. • The NLRC may issue a TRO ex parte or without the
presence of the other party because it is a mere
interlocutory order prior issuance of the writ of injunction.
Q: Under what procedure can the gov’t intervene?
BUT in the case of writ of injunction, a hearing must be
A: By assuming jurisdiction over LD in an industry
conducted.
indispensable to national interest.
(3) POWER TO RESOLVE CERTIFIED CASES UNDER
BODIES TO IMPLEMENT LABREL:
ART. 263-G OF THE LC (ASSUMPTION POWER)
1. Office of the President
2. DOLE
Q: How may the Pres of Sec. of Labor assume jurisdiction
3. Regional offices of the DOLE
over a VID?
4. NLRC
A: The ER or the union may petition or do a joint petition
5. Regional Arbitration Branches of the NLRC
or motu proprio.
6. Bureau of LabRel
7. National Conciliation and Mediation Board
• Under Art. 263-G, the nature of this assumption power is
(PFCD) plenary, full, complete & discretionary.
NATIONAL LABOR COMMISSION
• Nature of composition of the NLRC: Q: Can the EE & the union compel the Sec. of Labor to
- It is a tripartite body, trisectoral composition
- Its compositions comes from the: assume jurisdiction?
A: NO, it is discretionary. The Sec. of Labor has a wide
1. government sector
latitude of discretion.
2. management
3. labor sector
LEGAL EFFECTS OF AN ASSUMPTION ORDER:
1. It has the effect of writ of injunction.
• The NLRC sits en banc only of instances of policy 2. A return to work order is deemed written in the AO.
determination and promulgation of the IRR.

Compiled by A.A. Dizon ’15-’16 Page 1 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 - There are cases where the Sec. of Labor had a
separate return to work order.
3. Striking workers should return to work, otherwise, they
are deemed to have lost their employment status or
they can be dismissed upon compliance with due
process.
4. The AO contemplates only actual reinstatement.
- The returning striking workers should be reinstated
actually by the ER thru their former positions under
the same terms and conditions of the ER.
- Under the law on dismissal, the ER is given the
option to reinstate either actually or via payroll. But
on the law of assumption of jurisdiction, payroll is
not allowed.
XPN: Under special circumstances, they should be
reinstated via payroll if there will be an awkward
situation or legal/ physical impossibility.
5. Sec. of Labor has concurrent jurisdiction over cases
that are cognizable by LA.
• Under Art. 224, the LA exercises exclusive
jurisdiction over termination disputes, ULP etc.
XPN: Under assumption order & pending litigation,
the Sec. of Labor can take over pending cases.
UNFAIR LABOR PRACTICE (ULP)
• It is an act by ER w/c violates the constitutional right of
worker to self organization, w/c includes:
1. right to form a union
2. right to take part in its formation
3. right to join or assist a union in CBA
4. right to negotiations
5. right to engage in concerted activities for mutual
help and protection
Q: Are there instances when ULP is committed in the
absence of ER-EE relationship?
A: YES. In the ff. instances:
(a) Doctrine of innocent bystander - ULP can be
committed against a non-ER.
(b) Yellow Dog Contract - an agreement where an
applicant to the job should not be a member of a
union or he is required not to join any labor union.
He renounces his constitutional right to self
organization.
• The nature of ULP is not just administrative or civil
offense but is also a criminal offense. It is the regular
courts which has jurisdiction over the criminal aspect.
However, there must be a final decision on the
administrative or civil aspect before he can file the
criminal aspect.
TYPES OF ULP:
a) ULP COMMITTED BY THE ER
• In ULP, the purpose of any act of the ER is to discourage
unionism. To get rid of the union.
Types of ULP committed by the ER:
1. Interference, restraint, coercion
- This can be committed through the ff:
(a) economic means - sweetheart contract,
where there will be collusion b/w the union &
the ER;
(b) physical means - the ER kidnaps the Pres. of
the union to scare him if they will push
through w/ the CBA; and
(c) psychological means - sending death threats;
sending an empty coffin
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
2. Discrimination
- if the unequal treatment is designed or calculated
to get rid or discourage unionism, it is ULP.
(a) laid off
(b) retrenchment
(c) transfer of EEs
3. Company unionism
- the union is organized at the instance of the co. or
ER.
(a) organized by the co.
Q: How may an employer organize a company union?
A: Thru the ff:
1. economic support - turning the assoc. to a LU,
organized in the instance of the ER;
2. legal support - the ER gives the best lawyer to be
able to build a union; and
3. psychological support - promises of a better future,
trust fund etc.
(b) not organized by the co.
- A militant union but bec. the ER captivated the heart
and emotions of the union, the union became a
company dominated union.
4. Refusal to bargain collectively
- the duty to bargain collectively means the mutual
obligation of the ER to confer promptly and
expeditiously on reasonable terms and conditions
of employment and in good faith, providing the
machineries of settlement therein
Q: When may mutual bargaining start?
A: The union submits a proposal and as a mutual
obligation on the part of the ER, the ER is mandated to
submit a counter CBA proposal w/in 10 days of receipt.
When the ER received the counter CBA and the ER does
not submit a counter CBA, the CBA proposal submitted by
the union will become the governing CBA in the company
premises.
(a) Good faith bargaining (Boulwareism) - this is our
proposal, “take it or leave it”. It was introduced by
Lemuel Boulware (VP of General Electric)
(b) Surface bargaining - the ER procastinates &
delays the proceedings, the ER has no intention
of signing an agreement
(c) Runaway shop - they transfer their business to
another location to avoid CBA
Q: When they discovered it, they held a strike at
the place where the ER transferred. Is the strike
legal?
A: YES.
• The concept of the duty to collective bargaining is it
includes reasonable terms & conditions of employment.
5. Providing negotiation fess & services
- This will result to incomplete, inadequate CBA.
6. Contracting out of service
Page 2 of 18
LABOR RELATIONS REVIEWER
 - If the contracting exceeds 6 months, that will 2 ASPECTS OF DUE PROCESS:
amount to ULP. The purpose is to get rid of the a) Substantive
union w/c is a ULP. - this refers to the legality or illegality of the act of
dismissal; no EE shall be dismissed except in
7. Giving out testimony causes provided by law
b) Procedural
8. Gross flagrant violation of the CBA - this refers to the legality or illegality of the
- This refers to economic provisions. manner of dismissal
• Increase of wages 1. 2-Notice Rule
• Other addtl & labor standards benefits 1st Notice
• Leave credits - it must be formal specific discharge; “violation of
• Increase of benefits Company Rules and Regulations” — it is NOT
• Escalator clause - in the event of sudden considered as specific discharge.
increase in the prime commodities of consumer - you reply w/ an intelligible answer if the discharge is
price index brought about by soaring prices, NOT specific.
this provides that there will be a gradual 2nd Notice
increase in wages if there is increase in - this is the notice of dismissal;
commodities. - inform the EE of the decision to dismiss him;
- give the EE the chance to contest validity by filing
b) ULP COMMITTED BY THE UNION proper complaint
Types of ULP committed by the union:
1. Blue sky bargaining 2. Opportunity to be heard unless the party
- the CBA proposal contains economic demands requests for a hearing (Perez doctrine)
that are unreasonable, exaggerated bargaining
proposals; the economic demands are sky high or D O C T R I N E O F C O M M E N S U R AT E P E N A LT Y /
beyond the economic reach of the employer. PROPORTIONAL RULE:
- penalty imposed proportionate to offense committed
2. Feather bedding activity 1. Length of service
- it means prolonging the work for the union to earn; 2. Gravity of offense
compelling the ER to pay services rendered or not 3. Nature of the position/ employment
rendered, performed or not performed; this is a form 4. Nature of the business
of extortion committed by the union to the ER. 5. First offense rule
ex. the employer only needs 50 people but the union 6. Totality of infractions (Collective infractions
compels the ER to pay for 75 people. rule)
7. Principle of charity, compassion and
3. Restraint, coercion, discrimination on the part of understanding
the union 8. Principle of equity
4. Strike coercion on the part of the union
5. Accepting negotiation fees from the union 2 TYPES OF DISMISSAL: (JUST CAUSE &
6. Violation of the CBA of the union AUTHORIZED CAUSE DISMISSAL)
1. JUST CAUSE DISMISSAL
TERMINATION DISPUTES - this is initiated by the EE;
• It has something to do on law on dismissal; post- - in the Toyota doctrine, all has no payment of
employment separation pay;
- for non-compliance by the ER of the due process of
LAW ON DISMISSAL just cause dismissal, he is liable to pay indemnity or
nominal damages amounting to P30,000.00
• According to Article 3, Section 1. “No person shall be
deprived of his life, liberty and property without due Types of Just Causes:
process of law.” a) Serious misconduct
• Due process class and right to security of tenure. - wrongful or improper conduct that is committed in an
• Labor is a property. One’s labor is property within the aggravated or serious manner.
mantle of the Constitution. A worker may not have any - to be a just cause dismissal, it should be serious; if it
property except his labor. were a minor misconduct, then it is not a just cause for
dismissal (too harsh a penalty).
DUE PROCESS
“Audie alteram partem” examples:
- No one shall be condemned and unheard • Sexual harassment
- the Anti-Sexual Harassment Law is designed to protect
Q: What is the quantum of proof in labor proceedings? employees from over sexed superiors
A: 2 Types of Sexual Harassment
GR: Substansial evidence, w/c a reasonable mind 1. Quid pro quo - “I give that you may give”;
may find adequate to justify conclusions. something for something
XPN: To prove the validity of dismissal rest upon - economic in nature committed by
the ER to prove it under clear, positive, convincing superior officer who has moral
and accurate evidence. dominance, ascendancy over the victim
- procurement of sexual favors
Compiled by A.A. Dizon ’15-’16 Page 3 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 2. Hostile environment
- unwelcome sexual remarks, advances,
utterances, flirtations
- physical conduct of a sexual nature
where an employee is placed in an
intimidating, hostile and offensive
environment.
• Fighting in company premises
- No work, no pay (they stop working when there is fight).
There must be body contact in order to be serious.
• Gambling
- Serious misconduct because of its pernicious effects.
• Sexual intercourse in company premises
- this is inflamed either by lust or affection, these are
immoral acts that affects moral decency. Immoral acts
are any act not accepted by community (ex. married
man w/ another family). The basis of determining
immorality is the public and secular basis.
• Theft
- it is an act of dishonesty, you also have to consider the
amount of the property taken because you need to
consider also if the penalty is proportional to the offense
committed. If it is negligible, dismissal is too harsh a
penalty.
• Drug-use in company premises
- the refusal to take the test (confirmatory test &
screening test) is considered a serious misconduct and
may be dismissed. The ER must inform the EE of the
test results, without this it is considered illegal dismissal.
b) Willfull disobedience
- there is deliberate refusal to obey lawful orders of the
ER; repeated commission of same irregularity.
However, insubordination is an isolated act and not
justified by dismissal.
- It does not mean that if there is a violation of the lawful
order, that automatically dismisses an employee. We
must determine first other circumstances before
imposing the supreme economic death penalty which is
dismissal.
c) Willfull breach of trust and confidence
- it has something to do with protection of company
money and propery
2 Types of positions:
1. Fiduciary/ Rank and file employees
- requires a tedious, rigorous procedure in
the dismissal
2. Managerial employees
- mere finding of the basis of loss of trust and
confidence will justify dismissal; it is the
extension of the personality of the
management/ alter-ego of the ER
d) Commission of a criminal offense
- any commission of a criminal act against the person of
the ER or his immediate family member will justify
dismissal
e) Gross and habitual neglect of duties
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
- because of the EE’s gross negligence, it caused the ER
a tremendous damage
ex. Manager assigned in a very delicate position but he
failed to perform his functions. Several company
properties were spirited out unknowingly by such
manager. This will justify dismissal.
- there were some cases where in although not habitual,
but if it is gross, then that will justify dismissal
e) Other analogous causes
1. violation of company rules
2. unauthorized absences
3. serious insult/ unbearable treatment of ER
4. abandonment
- over acts/ willful intention to ever ER-EE
relationship; there must be willful, deliberate
refusal not to return. The ER must notify the
employee, still need to observe the 2-notice
rule but w/o hearing
2. AUTHORIZED CAUSE DISMISSAL
- this is initiated by the ER;
- mandates payment of the separation pay;
- for non-compliance by the ER, he is liable to pay the
amount of P50,000
Types of Authorized Causes:
a) I n t r o d u c t i o n o f L a b o r S a v i n g D e v i c e
Automation
- replacement of workers by machines resulting to
technological employment
Requirements:
1.
2 separate notice rule - notice to the DOLE and 30
days notice to the EE to be discharged;
2. Fair and reasonable criteria - less preferred status,
seniority based on first in last out rule, length of
service; this is not provided by law but perhaps in
the employment contract or CBA
3. It must be done in good faith
4. There must be payment of separation pay
- If it is done just to get rid of the union, this will amount to
constructive dismissal and ULP.
b) Retrenchment
- ER is on the verge of economic collapse; the ER is
losing
- the ER can embark on retrenchment to prevent losses
- the purpose of retrenchment is to prevent the eventual
economic catastrophe that will lead to the downfall of
the ER; so the ER can reduce company personnel to
prevent losses
- partial closure is also considered as retrenchment
Requirements:
1. 2 separate notice rule - notice to the DOLE and 30
days notice to the EE to be discharged;
2. Fair and reasonable criteria - less preferred status,
seniority based on first in last out rule, length of
service; this is not provided by law but perhaps in
the employment contract or CBA
3. It must be done in good faith
4. Proof of financial pay
5. There must be payment of separation pay - half
month pay for every year of service (company is
losing)
Q: What kind of losses are contemplated under the LC?
A: Actual and anticipated/ impending losses
Page 4 of 18
LABOR RELATIONS REVIEWER
• There is no prohibition for the ER to embark on retrenchment if - to be valid, it must be done in writing by the
he could perceive that its economy will go down the drain. EE and the acceptance must also be in
writing.
c) Redundancy
- it is no the duplication in work function; Q: Can you withdraw resignation prior acceptance?
- a position is redundant when it is superfluous. A: Yes.
Superfluity is the outcome of some factors: Q: After acceptance?
(a) Over-hiring of workers A: No more because there is already
(b) Decline in the volume of business termination of ER-EE relationship.
(c) Closure of a particular line of an economic
activity previously engaged by the ER • If the EE insists on coming back and the ER
- there are excess services that are NOT needed by the accepts, he should be treated as a new EE.
ER. These surplus over-hired additional works are NOT
needed by the ER, so they must be discharged. Q: May resignation be done verbally?
Requirements: A: The verbal resignation can be accepted because
1. 2 separate notice rule - notice to the DOLE and 30 there is no legal prohibition as long as it is accepted
days notice to the EE to be discharged; through writing.
2. It must be done in good faith
3. There must be payment of separation pay - full
month pay for every year of service RELIEFS FOR ILLEGAL DISMISSAL
• If there is violation on the substantive (act) &
d) Disease procedural (manner) aspects of due process,
- the ER must prove it by way of medical certificate there is an illegal dismissal.
issued by a gov’t hospital/ clinic or doctor; • You may file it w/ Regional Arbitration Branch of
- the disease cannot be cured in the period of 6 months; the NLRC having territorial jurisdiction of the
if it is curable w/in 6 months, he should be allowed to on workplace of the complainant.
LOA
Requirements: Q: What are the normal consequences of illegal
1. 2 separate notice rule - notice to the DOLE and 30 dismissal?
days notice to the EE to be discharged; A:
2. It must be done in good faith 1. Reinstatement
3. There must be payment of separation pay - half - restoration of the dismissed EE to his former
month pay for every year of service position
2 Types of Reinstatement:
e) Closure of business a) Actual
Requirements: - employee reinstated to his former position;
1. 2 separate notice rule - notice to the DOLE and 30 perform his services and receives his
days notice to the EE to be discharged; compensation
2. It must be done in good faith - immediately self-executory pursuant to the
3. Proof of financial pay
4. No payment of separation pay Pioneer ruling, there is no more need for a writ
of execution
f) Analogous causes b) Payroll
- he does not perform his services but receives
CONSTRUCTIVE DISMISSAL his compensation
- It is a dismissal in disguise; this is quitting of the job
since continuing the employment has become • ER is given the option to reinstate either actually
impossible, unreasonable, unlikely and unbearable or in the payroll.
under the circumstances. • The ER may reinstate an employee in the payroll
- Authorized dismissal done in bad faith will amount to if the actual reinstatement is no longer possible.
constructive dismissal. It is an involuntary resignation or 2 reasons:
serious insult or unbearable treatment to EE that will (i) the ER believes that there was valid cause
force him to resign. for the dismissal
examples: (ii) ER does not want to see anymore any
1. Demotion in rank unwanted face in the company premises
2. Outsourcing beyond 6 months bec. it may demoralize other workers
3. Resignation - voluntary in nature BUT if it is due
to being oppressed this will amount to Q: Is there violation of “no work, no pay” in payroll
constructive dismissal reinstatement?
4. Preventive suspension - should not be beyond A: Generally, yes. BUT since it is the mandate of
30 days otherwise it will be constructive the law, although it is harsh, there is no violation
dismissal under the dictum dura lex sed lex.

Resignation • In the event that the ER is stubborn and does

- It is a voluntary act of the EE where
personal reasons cannot be sacrificed in
favor of the expediency of the service;
NOT want to reinstate the EE, the lawyer should
do the ff:
(i) File a motion for contempt against the ER;
(ii) File a motion for the payment of monthly
salaries;

Compiled by A.A. Dizon ’15-’16 Page 5 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 (iii) Cause the issuance of writ of execution
only for the reinstatement w/c is motu
proprio on the part of the LA
2. Backwages
- restoration of the loss income brought about by
illegal dismissal
- he should be paid separation pay as a form of
compromise to reinstatement, if reinstatement is
not possible
• Refund Doctrine (Gino-gino case) is already
abandoned by Garcia v. PAL
- Refund salaries pending appeal is NOT
allowed anymore or else it is unjust
enrichment.
3. Damages, attorney’s fees and other
benefits
- it is NOT only stated in the LC but also in NCC.
- moral damages is proper when dismissal is
done in bad faith or against the law etc.
- exemplary damages is proper when dismissal is
done in oppressive, whimsical, arbitrary manner
- moral and exemplary damage can be of equal
amount depending on the LA
- attorney’s fees in Art. III of LC shall not exceed
10% (this should be awarded to the winning
party/ dismissed EE); he was compelled to
litigate, in process he incurred litigation fee.
• can award less than 10%
• attorney’s fees in a form of damages
(extraordinary concept)
There are attorney’s fess in ordinary concept:
a) lawyer/ retainership fees
b) acceptance/ appearance fess
4. 6% legal interest on monetary award to the
illegally dismissed EE
Twin relief of illegal dismissal
Reinstatement and payment of full backwages from
the time he was illegally dismissed until he was
actually reinstated.
INSTANCES WHEN REINSTATEMENT IS NOT
PROPER:
a) Dismissal for Cause
b) Employee does not want to be reinstated
c) Laches or Waiver
• Unreasonable Delay in claiming your right to
reinstatement
- Employee can still look for a job while waiting for the
outcome of his case, and even if there is already an
order of reinstatement, he cannot be charged that
the has already waived his right to be reinstated
because in the meantime, he is earning to feed his
family.
d) Strained relationship w/ the ER
• This cannot be used by the ER just to thwart or frustrate
reinstatement
- There should be extreme reasons to justify strained
relationship
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
- There should already be sever antagonism where
the ER and EE cannot look at each other eye to eye
anymore
- As a form of compromise to reinstatement
o Backwages and Separation Pay
e) The position was already abolished or filled-up
- Legal Impossibility
- He should be reinstated in a substantially equivalent
position
- If this cannot be done, the remedy is payment of
separation pay plus backwages as a form of
compromise.
f) Prescription is four (4) years
- Four (4) years also in illegal dismissal cases
g) Physical Disability
- May undergo medical examination to determine fitness
to work.
• If you have a contagious disease, you cannot be
reinstated
- Occupational disease is compensable
Personal Comfort Doctrine
- Providing comfort and convenience
- Injury or death is compensable
- Act of State
- Not conducive to working harmony
- Employee is too old
- Law does not provide reinstatement
• Kasambahay Law; Migrant Workers Act; Kulangot
Doctrine
- Principle of Fiduciary Relationship
PROCEDURE IN ILLEGAL DISMISSAL CASES
- If there is a violation of the substantive and
procedural aspect — there is ILLEGAL DISMISSAL
Where to File Illegal Dismissal:
• Regional Arbitration Branch of the NLRC having
territorial jurisdiction of the workplace of the
complainant.
• RAB – “over the workplace”
A. Before it is filed with the LA:
• It will be filed with the Single Entry Approach Proceeding
(SENA).
Purpose: Amicable Settlement
B. If SENA is terminated because there is no
settlement reached by the parties, it will now
be raffled with the LA.
1) Once it has been received by the LA,
- it will be scheduled for the first 2 preliminary
conference (PC) for the purpose of amicable
settlement.
• It is a mere duplication of SENA.
- There is no prohibition upon the LA to grant
another PC if it was moved by one or both parties.
Although there are only 2 PC under the rules, it
may still be granted, even if not provided in 2011
Rules of Procedure.
BASIS: ART. 221
Page 6 of 18
LABOR RELATIONS REVIEWER
• “Technical rules are not binding and prior resort to
amicable settlement”
- Relaxed in labor proceedings because the purpose
is administration of speedy labor justice.
2) If after the PC, there is no settlement reached:
a) The LA will require the parties to simultaneously
submit position papers
- This is called Position Paper Proceeding
- Not a violation of due process
because the parties are already
given opportunity to be heard
- This is substantial compliance with
due process
OR
b) The LA can go on with the case on a trial type
proceeding
- Subject to LA’s discretion and not the
parties.
3) If the position papers were submitted on the scheduled
date
- They will require a reply
• A reply under the rule is the last pleading.
• Submitted for resolution (30 days), while OFW
cases (90 days)
4) After a decision is rendered and there is a finding of
illegal dismissal:
- The reinstatement is immediately self-executory
- No more writ of execution
If you were the Lawyer, ask the Client if he would
APPEAL or NOT!
• If they file a MOTION FOR RECONSIDERATION, he
must comply with the requirements of appeal.
- In one SC decision, MR was treated as a mode of
appeal.
• Upon receipt of the decision of the LA, you have 10
calendar days to appeal.
Q: The EE won in the case, but there was no
reinstatement as decided by the LA, the EE
appealed. In the commission level, they ordered
reinstatement provided in the decision of the
NLRD and not the LA, is reinstatement
immediately self-executory?
A: NO.
NOTE:
✓ If done by the LA – YES
✓ If done by the NLRC, COMMISSION
LEVEL – NO because it requires issuance
of a motion
REQUIREMENTS OF APPEAL
a. Payment of docket fees
• If not paid, appeal will be dismissed because it is a
matter of jurisdiction
b. Submission of a memorandum of appeal
• Copy furnish the other party
• Mere procedural or formal lapse if you do not give a
copy; not fatal
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
• File answer within 10 days from receipt of
memorandum of appeal
c. Posting of the appeal bond
• Two Types of Bond to be posted:
o Cash
o Surety
– issued by a reputable bonding company
Q: What is the requirement of the law on bond?
A: Monetary minus damages and attorney’s fees
Q: Does the LA fix the amount of the bond?
A: No. LA is not allowed to fix the appeal bond. The
law itself fixes the appeal bond
Q: How much are you going to post?
A: Reasonable amount of the bond
Q: Can the appellant employer file to reduce bond?
A: Yes, but should be filed during the reglementary
period to appeal accompanied by posting a reasonable
amount of the bond.
Q: What is he did not post a reasonable amount of the
bond, instead he posted 10% of the monetary award.
Is this allowed?
A: In the case of Mcburnie v Ganzon, 10% is allowed
but applicable only for the purposes to reduce the
bond but not to perfect an appeal
Q: What if he filed to reduce bond but did not post
bond, what is the legal effect?
A: The decision of the LA will become final and
executory under the Doctrine of Immutability of Final
Judgment.
XPN: Backwages are continuous/addup until fully
satistfied; Can file motion for recomputation of
backwages even if decision is already final
d. Personal Service
e. Approval of the record of appeal
• XPN to Bond:
o UERMMC Case, wherein the Employer can
post bond provided value of property is
substantial to cover monetary award.
Q: Can you post 10% for perfecting an appeal?
A: No.
• In Macberry v Ganzon, the SC allowed 10%
initial amount.
(4) APPELLATE JURISDICTION
1. Before it is assigned to a ponente commissioner,
there will be a consultation.
- Purpose is to prevent a one-man decision
Q: What if before the commissioner decides on
the merits, he required the parties to have a
conference for purposes of amicable settlement?
Is this allowed?
A: No legal prohibition. Technical rules and
procedures are relaxed in labor proceedings.
Q: If no amicable settlement, they submit for
decision. If the LA affirmed in toto by the
Page 7 of 18
LABOR RELATIONS REVIEWER
 commission, the employer loses again. What
should the employer do?
A: File a motion for reconsideration within 10
days from receipt
Q: What are the purposes of the MR?
A:
- To rectify the error committed
- To c o m p l y w i t h t h e e x h a u s t i o n o f
administrative remedies
- The MR is a requisite sine qua non prior
certiorari
Q: What if, MR is denied, and upon receipt of the
denial, how many days to file a petition in Rule
65?
A: 60 days
Q: What should be included in the petition?
A: Three essential dates
- Date of receipt of the decision of the
NLRC
- Date when MR was filed
- Date of receipt of the denial of the MR
Q: In your petition to the Court of Appeals
A: Submit 3 hard copies and the soft copy & pay
the docket fees and other fees.
2. If duly receive by the CA, it will be raffled.
• The raffling of cases in the CA is always
observed and participated by one justice.
• Every raffling day, there is assigned justice of
CA.
3. Before it is assigned to a Justice member, there will
be another consultation
- To prevent one-man decision
Q: What if the petition is lacking in form because
he only attached photocopied documents?
A: They will ask you to submit certified copies;
The CA may require the other party to submit a
comment, answer, or reply.
Q: Upon submission of the petition, what is the
other party was not notified to submit a
comment? Can you submit a comment without
being notified?
A: Yes. Submit with leave of court.
4. Usually, for the settlement of backwages and reward,
there is mediation, but if there is non, then it will be
decided on the merits based on the documents
submitted.
When all the documents have been submitted,
the CA will notify the parties that it be
submitted for resolution.
• If they lose – file an MR
• If denied – file it within 15 days
Q: Can you file a motion for extension of time to
file?
A: Yes.
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
SUPREME COURT
GR: File with the SC on the ground that there are purely
questions of law and GADALEJ
o Because CA is their fact-finder
XPNs:
- If there are mere speculations
- Possibility that there were facts not given serious
consideration or if given consideration, this may
amend or modify the decision
- The decisions of the LA, NLRC, CA are contrary to
each other; in collision or at odds at each other; when
the decisions are diametrically opposed to each other.
Before Entry of Judgment
Q: If the SC still decides against the ER, can he file an
MR?
A: Yes.
Q: If the MR is denied, can you file MR over the
denial?
A: Yes.
Q: If denied again, can you file another MR?
A: Yes.
• You can file until finally, the SC issues a resolution that
you cannot anymore file a motion, otherwise, it will be
dealt with accordingly.
Entry of Judgment
• Pre-execution conference
• The decision will now go down to the level of the LA for
purposes of execution
Q: What will the prevailing party do?
A: File a motion for the issuance of a writ of
execution, but the LA will not just issue a writ, the
motion shall be subject to a hearing.
Q: The losing party can still appeal. What if the
respondent ER did not appeal?
A: Upon expiration of the period to appeal, you can
file a motion for the issuance of the execution. This
will be subject to a hearing. There will be a pre-
execution conference.
• When the decision is already ripe, for enforcement, then
you can file a motion for the issuance of a writ of
execution.
Q: For the losing party, can they still protect their
interest?
A: Yes. File a motion to quash the writ of execution.
Q: What are the grounds for a motion to quash?
A:
1. That the decision of the LA is incomplete
2. The amount of the awards is not provided in
the dispositive portion
3. That the decision by which execution is
based is a product of graft and corruption
4. That the writ of execution is irregularly
issued
Page 8 of 18
LABOR RELATIONS REVIEWER
 5. That the writ of execution was issued against
the client who is not a party to the case
TYPES OF EMPLOYMENT
(1) REGULAR
- Has been engaged to perform activities which are
usually necessary or desirable in the usual
business or trade of the employer
- Has rendered at least one year of service, whether
such service is continuous or broke, with respect to
the activity in which he is employed.
2 Types of Regular Employment:
a. As to the nature of work
- That the EE performs the job that is
usually necessary and desirable in the
usual business of the employer
b. As to the years of service
- At least one year of service, whether
continuous or with intervals
• Mechanic – Regular because UND
• Carpenter – Not regular; Only performs incidental
work to the principal action; Casual employee
o UNLESS he renders work for 10 years i.e.
auto repair shop
Other types of Regular Employment:
(i) 555 Doctrine
- Constant renewal of contract
- Successive and constant rehiring
- Falls under regular employment
(ii) Probationary EEs
- upon expiration of the probationary period,
he becomes a regular employee
(iii) Project EEs
- if hired constantly, they ceased to be project
employees but they become regular
employees
A: Yes
Q: If the training period in the apprenticeship and
learnership expires, should it be considered as
probationary period?
A: Yes
Q: What if a week before the apprenticeship is done,
the employer told the apprentice that he will consider
him a regular employee, but before you become a
regular employee, you have to undergo probationary
period, is this valid?
A: No, that would amount to double probation that is
not allowed by the law.
(5) SEASONAL
- If the employee was employed from season to
season performing the same task, he is a regular
seasonal employee.
(6) PROJECT
- Akin to contractual employment
- After project, automatic termination of ER-EE
relationship.
- Constant rehiring of a project employee, he becomes
a regular employee
- Upon termination of every project, the employer
should submit a report on termination of projects to
the nearest DOLE office.
o Legal Consequence: Project becomes
regular
- Not entitled to normal consequences of illegal
dismissal because employed for a fixed term.
(7) NON-PROJECT
3 types of Non-Project
a. Casual – Perform incidental work
b. Probationary – After 6mos becomes
regular
c. Regular

• In the case of Millares v NLRC and Zamora case, Q: If the project/non-project are employees belonging
despite constant rehiring, the employee will never to the work pool, they can be taken out any time and
become a regular employee i.e. seafarer. be assigned from one project to another. If you were
assigned in Phase 1 Project A then at Phase 3 of Pr-
(2) CASUAL ject B, is this valid?
(3) CONTRACTUAL A: Yes. You are an employee belonging to the work
(4) PROBATIONARY pool, then you are treated as a regular employee
- Period to learn the job
- Period of evaluation • In apprenticeship, if the contract was prematurely
- Prelude to regular employment terminated, the apprentice does not automatically
- Training ground become a regular employee
• In learnership, the learner becomes a regular employee
GR: 6 months for probationary period if contract was prematurely terminated provided that he
XPN: The ER-EE can agree on probation below or has already been trained for two months.
beyond 6 months, depending on the technicality of the
work RETIREMENT
• The Labor Code is not a source of retirement benefits
• PLDT case – nature of the job required before but the IRR provided for it until the law on
extensive training, probation was agreed to be retirement (RA 7641) has been enacted. Now, it is a
beyond 6mos. source of retirement benefits.
• In case of teachers – full time satisfactory
service for 3 years Q: What is retirement?
A: Bilateral act between employer and employee
Q: What about apprenticeship and learnership, is this where the latter upon reaching a certain age, has to
a training period?

Compiled by A.A. Dizon ’15-’16 Page 9 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 separate himself from employment in order for him to
enjoy yhe remaining years of his life. GR: If more than P5K, LA has jurisdiction
XPNs:
Q: Age of retirement
A: 1. Provided in the original Article of 263-G, on
Compulsory – 65 y/o assumption of jurisdictions
Optional – 60 y/o - That the assumption power is by nature PFCD.
Underground Miners – 50y/o You cannot fault the Secretary of Labor in
assuming jurisdiction in labor dispute.
Q: Component parts of retirement - If one of the instances under assumption is
A: 22.5 x # of yrs of service money claim, even if it’s P5k below or above,
- 15 days a month for every year of service since one of there is under assumption, the
- 5 days service incentice leave President or Secretary has jurisdiction
- 1 ½ for 13th month pay
2. Under Art. 126 of the LC
Q: Can additional benefits be included in the - Visitorial, inspection, and enforcement power of
retirement pay? the Secretary of Labor, but this is exercise
A: through the Regional Office of the DOLE
GR: No - It it’s a money claim, regardless of the amount of
XPN: Unless they are voluntary benefits agreed the claim, Regional Office has jurisdiction
by the parties
Q: How may the RO take cognizance of a money
Q: May the employer and union agree on an early claim regardless of the amount?
retirement plan? A: Can be motu proprio, by way of a labor
A: Yes standards complaint filed by any employee. On
the basis of the labor standards complaint, the
Q: Employer and union agree that an employer for a RO through the RD issues an inspection audit.
just cause is not entitled to retirement benefits, is it Audited for the purposes of determining WON the
valid? employer complies with labor standards rules and
A: SC said it is valid; not against public policy regulations.

PRESCRIPTION 3. Money claim pending with the LA can still be

transmitted for voluntary arbitration by agreement of
• THREE YEARS the parties.
- Purely money claims
- Incremental proceeds from tuition fee hikes Q: Where is the document required under the
- Employees compensation claims law, for the voluntary arbitrator to take
- Union funds cognizance of the case?
- Service Incentive leave from the receipt of the claim A: This is what we call “Submission Agreement”.
of the employee The vital industry dispute can be resolved by a
- Criminal cases under the labor code voluntary agreement of the parties.
XPNs:
- ULP – 1 year • All the matters of employer-employee relationship,
- Simple Illegal Recruitment – 5 years the LA has jurisdiction
- Syndicated illegal Recruitment – 20 • Damages – the usual consequences of an illegal
years dismissal:
- Large scale/qualified illegal recruitment – a) reinstatement
20 years b) payment of backwages
c) 6% etc.
• FOUR YEARS • The LA can award damages, attorney’s fees, and
- Illegal Dismissal other backwages
o Violation of constitutional right to property
o Right to security of tenure based on due process
and equal protection clause STRIKES AND LOCKOUTS
- GSIS Claims
XPN: • Any stoppage of work by concerted action of employees
Retirement and life insurance claims – as a result of any industrial or labor dispute
Imprescriptible - No such thing as permanent strike
- Reinstatement - Counterpart of strike is lockout

• TEN YEARS Active Parties

- Social Security Claims - Employer
- Employee
• TWENTY YEARS
- To collect contribution of employers Passive Parties
- Government
MONEY CLAIMS - Public
Compiled by A.A. Dizon ’15-’16 Page 10 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 - Staged against a non-employer
TYPES OF STRIKE:
1. AUTHORIZED STRIKE 12. UNION RECOGNITION STRIKE
- A strike that is approved by the majority of the total - To compel the employer to recognize one’s union as
union members the employee’s bargaining agent.
- Upon the union’s consent
Q: Four modes in determining the bargaining agent/
Q: How would you determine approval or consent of contracting union/bargaining agency?
workers in union? A:
A: This is done through strike voting 1. Sole Exclusive Bargaining Agency (SEBA)
Certification
Q: What is the purpose of this AS that it should be 2. Consent Election
approved by the union members? 3. Certification Election
A: The SC said, the purpose it to prevent a wildcat 4. Run-off Election
strike, prevent corruption. 5. Re-run Election

2. WILDCAT STRIKE Q: Is strike one of the modes in determining the

- Unauthorized strike bargaining agent?
- Without approval of union membership A: No

3. PARTICULAR STRIKE • In Pascual Liners case, he union staged a strike for the
- In one particular business establishment where a purpose of compelling the employer to recognize them
strike is staged as the bargaining agent. That is illegal because strike is
- Confined not one of the modes in determining representation
status.
4. GENERAL STRIKE
- Political, sympathetic type of strike that is staged 13. LIGHTNING STRIKE
against non-employers because it’s a strike against - Of short duration
the government - Brief and Concise
- Covers a wider area of staging a strike. - Without compliance with the requirements of a lawful
- Strikes by jeepney federations; transportation strikes strike.

Q: Why sympathetic? 14. LABOR PRACTICE

A: No ER-EE relationship 15. GOOD FAITH STRIKE
- Illegal; not a defense in a strike said the SC in the
5. SLOW DOWN STRIKE case of Grand Boulevard Hotel v Dacanay.
- To reduce production - In GF strike, the union stages a strike on the ground
- Illegal because it violates the ‘no work, no pay’ labor that the employer was committing ULP but it was
principle later on found out that the employer was not
committing ULP, in the meantime the union held a
6. SIT DOWN STRIKE strike without compliance with the requirements of
- Other form of slow down strike staging a lawful strike.
- Worker are confined in the plant, they reduce to
perform the work for a short period of time. After 16. LEGAL STRIKE
some time, they resume. - In conformity with the requirements that are not
- Also violates ‘no work, no pay’ principle. complied within declaring a strike

7. QUICKIE STRIKE 17. ILLEGAL STRIKE

- Impromptu - There were requirements that are not complied with
- Of short duration declaring a strike
- Outside of the company premises
Requirements for Staging a Lawful Strike
8. BRIEF 1. There must be a collective bargaining
9. ORDINARY o It must be based on a lawful and factual
10. ECONOMIC STRIKE ground
- A result of a bargaining deadlock on economic 2. It must be approved by the total union
issues membership
- With the breakdown of the negotiation process, the 3. It should be declared only on two strikable
union can file a notice of strike directly with the issues
NCMB a. CBA deadlock
- There are economic concessions where the b. ULP
employer is not ready to five, that is why there is 4. Filing of notice of strike
economic deadlock. o File it with the NCMB (Nat’l Conciliation &
- ULP because this is a strike staged in violation of the Mediation Board)
constitutional right of workers to self-organization. o If it is economic - 30 days; if ULP – 15 days
(pulling off period)
11. SYMPATHETIC STRIKE o Notice of cooling-off period

Compiled by A.A. Dizon ’15-’16 Page 11 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 - To reduce the tension, heightened
emotion
• Pulling-off period
1. Principle of Improved offer
2. Principle of Reduce offer
5. Compliance with the 24-hour prior notice rule
o Notify the employed and NCMB of the
place, date, and time
o In order for NCMB to send a representative
during strike voting
o If no representative, not fatal. Important is
that they were notified.
6. Strike Voting
7. Submission of the strike voting
o 7 days waiting period
Sabay tayo Doctrine
- Same day for notice of strike and strike voting
• No prohibition provided you complied with the 24-hour
prior notice rule and other requirements
• During the cooling off period, an officer of the union was
dismissed which constitutes union busting.
Q: If there is a union busting, can a union
immediately stage a strike?
A: The SC said, if you have already complied with
other requirements, you can immediately stage a
strike. You can dispense with the cooling off period
but you can never dispense with the 7-day waiting
period.
• In the case of strikes in union hospital or clinics, the
parties are required to establish an effective skeletal
workforce. If there are patients in the emergency and
ICU area, and there are no medical helpers to assist,
then it would be a problem. This is the philosophy
behind why there should be an effective workforce
schedule.
8. Compliance with the doctrine of means and
purposes
- The purpose must be legal and the means
used in attaining it should also be legal.
- Must comply with all the requirements
Doctrine of Means and Purposes
• If illegal means were committed during the strike,
according to the SC, the union cannot use slanderous,
libelous, scandalous, scurrilous, utterances.
• If there is massive violence, also illegal.
• In case of the declaration of illegality of strike, those who
are liable for dismissal are the officers of the union under
the doctrine of vicarious liability.
Q: Officers of the union participated during strike.
Liable?
A:
GR: Not liable for ordinary strike
XPN: If actively participated, they can be
dismissed BUT must be categorically identified, if
not, violation of due process.
Q: Will they be entitled to economic benefits?
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
A:
GR: No, because of the no work no pay principle
XPN:
1. On paying the backwages
2. If the strikers were discriminatorily
dismissed or if they did not strike but
were actually illegally locked-out by the
employers
3. The strikers unconditionally offered to
return to work but it was rejected by the
employer
- From the time of rejection, the
strikers are entitled to backwages
• The offer to return to work of the striking workers should
be unconditional.
Q: Can Right to Strike be waived?
A:
GR: No
XPNs:
1. No strike no lockout clause in the CBA
2. In case of assumption order issued by the
President
3. In case of Preventive Mediation Order
LOCKOUT
• A weapon of the employer; same requirements in
staging a strike; refusal to furnish work to
employees
HOW TO HAVE AN EFFECTIVE STRIKE
• There must be an effective picketing to have a strike
Q: Can there be picketing without a strike?
A: Yes. Picketing is a guaranteed freedom under the
constitution. In the words of US SC, stranger picketing
is constitutionally guaranteed. It was resounded by
the PH SC as part of freedom of expression.
Q: During picketing period, illegal acts committed
affected third persons. ULP?
A: Yes, notwithstanding no ER-EE relationship.
Doctrine of Innocent Bystander.
Strike of Government Employees
• Not applicable
• They are granted the right to collective negotiations
• Beyond CAN
o Matter fixed by Law
o Those that pertain to appropriation/Budget
(constitutional prohibition)
o High level employees
- Private Sector – Collective Bargaining Agreement
- Public Sector – Collective Negotiation Agreement
It is settle that Government Employees cannot stage a
strike because:
1. It will be a form of insurrection against public authority
in the light of the principle of state sovereignty. This
principle disqualifies government employees to stage
a strike
2. Government employees are civil servants. They serve
the people that is why if they strike, such strike is a
civil service offense. (PD 807)
Page 12 of 18
LABOR RELATIONS REVIEWER
3. It will affect the delivery of vital and basic services to XPN: Section 10, RA 8042 (Compensation
the people claims of overseas workers)

XPN: GOCCs without original charters known as
corporate offsprings or subsidiaries wherein they can
CBA and strike.
Some Government Employees who cannot strike:
- High level employees
- Members of the AFP, PNP, BJMP, and Firemen
BUREAU OF LABOR RELATIONS (BLR)
• The powers, functions, and jurisdiction of the BLR are
intertwined with the powers and functions of the
Regional Office of the DOLE
• Except conciliation matters
• In case of registration of unions and federations, BLR. In
case of registration of independent unions, RO of DOLE

JURISDICTIONAL AREAS RIGHT TO SELF ORGANIZATION

Q: Does the LA have jurisdiction over matters involving GR: Applies to all
certain churchmen? Austria v NLRC XPN: (Those disqualified by law)
A: On secular matters – YES 1. Managerial employees
On purely religious matters - NO 2. Members of the cooperatives
3. Confidential Employees entrusted w/ confidential
Q: Issuance of writ of execution information
A: LA - Kulangot Doctrine/ Confidential Employee
Principle: On matters of labor relations ONLY –
Q: Over third-party claims because a writ of execution they cannot form union
is issued against a party? 4. High level employees in Govt Sector
A: LA 5. Members of the AFP, PNP, BJMP, BFP

Q: Money claims filed by the employees who are Q: Can aliens or non-resident aliens form a labor
members of a cooperative? union?
A: Arbitration Committee has jurisdiction A:
GR: NO.
• Members of cooperative cannot file money claims XPN: Principle of reciprocity – if their
against cooperative since they are part-owners of the country extends the same rights of Filipino
cooperative workers

Q: Over Foreigner Government? Q: Under the Constitution and Labor Code, what is
A: LA has no jurisdiction the labor organization that is contemplated?
A: Legitimate labor organization – one that is
Q: Over PH government? registered either with the BLR or RO of the DOLE.
A: LA has no jurisdiction
REQUIREMENTS FOR REGISTRATION
Q: Under the Principle of State Sovereignty? –— to be legitimate labor organization
A: COA 1. Payment for registration fee
2. Submission of the constitutional bylaws
• Any money claims filed against the government should 3. Names of officers and members
be with the COA 4. In case of first time registration:
- Minutes of the org meeting by Sec/ Treasurer of the
Q: Does LA have jurisdiction over international union requested by President
agencies? • If the union is already existing for some time:
A: None; imbued with functional immunities - Financial statement of the union

Q: Does LA have jurisdiction over intra-corporate • Upon submission, it is now ministerial on the part of the
cases? RO of the DOLE to issue a certificate of registration
A: None; RTC (no longer the SEC under Securities compellable by Mandamus.
Act of 2000)
LEGAL EFFECTS OF REGISTRATION:
• Corporate officers are created by board – LA has no (Rights of a legitimate labor organization)
jurisdiction 1. Right to representation
• If not corporate officer and he was dismissed – LA has - This applies ONLY to union members
no jurisdiction 2. Right to be certified as the bargaining agent in the
company
Q: Does LA have jurisdiction over training - Applies to ALL employees
agreements? 3. Right to sue and be sued in its registered name
A: None; DOLE 4. Right to own property
5. Right to tax exemption
GR: LA has no jurisdiction over 6. Right to engage in activities that redounds to the
- Death Claim welfare of the members of the union
- Philhealth 7. Right to be copy furnished w/ the audited financial
- Insurance Claim statement of ER – upon request of union

Compiled by A.A. Dizon ’15-’16 Page 13 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
 - Employer will ONLY be liable for ULP (Surface - Most efficacious, most expeditious manner
Bargaining) if there is request coming from the in determining the will of the employees
union.
- Audited FS should be prepared by an • Double Majority Rule
independent, credible, external auditor. Not - First Majority Rule
company auditor otherwise it would be self– • At least a majority of all eligible
serving. voters in the bargaining unit must
have cast their votes
THE RIGHT TO BE CERTIFIED AS COLLECTIVE - Second Majority Rule
BARGAINING AGENT • The union receiving the majority of
the valid votes shall be certified as
Q: What is Agency Shop/ Treasury Shop/ Anti- the exclusive bargaining agent
Hitchhiker Clause / Anti- Free Rider Clause? (provided for all contending unions,
A: Requires non-members to pay fees equivalent to 50% of the votes have been validly
the amount of union dues. cast)

Q: Is there still a need to conclude an agency shop to 4. RE-RUN ELECTION

be concluded by the parties in the CBA?
A: No more need because law itself provided agency
shop. It’s in the law stating that non-union members
who received CBA benefits are required to pay fees
(agency fees) equivalent to the amount of union dues
to support the union that made the benefits possible.
- Or else there will be unjust enrichment.
MODES OF DETERMINING COLLECTIVE BARGAINING
AGENCIES IN THE BARGAINING UNIT
1. SEBA (Sole Exclusive Bargaining Agent)
CERTIFICATION
- Any union can file to be a SEBA in a bargaining unit
- Only 1 union can be certified or recognized as a
SEBA
- Similar to Voluntary Recognition:
o There is only 1 union in the bargaining unit
o It should have majority support
2. CONSENT ELECTION
- Election voluntarily agreed upon by 2 or more
unions, w/ or w/o intervention of the RO of DOLE, to
conduct an election to determine the bargaining
agent in the bargaining unit.
- Between & among unions in the unit, they have
consented among themselves to conduct an
election.
3. CERTIFICATION ELECTION (CE)
- The process of determining thru secret ballot, the
sole and exclusive bargaining agent of the
employees in an appropriate bargaining unit, for the
purposes of collective bargaining.
• Sole concern Rule
- It is the sole concern of the workers/
employees
- Subsequent certification election
- 3 instances:
a. There is failure of Certification Election as
declared by the election officer (below 50%
votes cast)
b. There is a tie between 2 unions
c. There is a tie between a union and a non-
union
5. RUN-OFF ELECTION
- Automatic second election rule: 50% votes cast but
no one garnered majority vote
- When an election which provides for 3 or more
choices, results in no choice receiving a majority of
the valid votes cast, the election officer shall motu
proprio conduct a run-off election bet. the labor
unions receiving the 2 highest number of votes.
- Provided that the total number of votes for all
contending unions is at least 50% of the number of
votes cast.
CERTIFICATION ELECTION (Further discussion)
Consent/ subscription requirement to conduct CE
• 25% of all the employees in the appropriate bargaining
unit
- If met mandatory to conduct CE
- If not met, discretion of RO of DOLE
Vote requirement
• 50% majority vote
Q: What if the 25% consent requirement is not
complied with, may a CE be conducted?
A: Discretionary upon the RO of the DOLE to conduct
CE.
Reason: Because in conducting CE, even if 25% is
not met, this is the most expeditious manner in
determining will of employees.

• Bystander Rule Q: If below 50% there is no valid CE – there is failure

- The employer, who has no legal standing, is
a mere bystander in certification election
- Limited to being notified or informed of the
filing of the petition for CE
XPN: May file a petition for
certification election in order to
determine WON this union has the
majority status
• Best Forum Rule
of CE. If there is failure, what is the legal effect?
A: Re-run election. If there is failure, w/in 6mos, by
motion, a CE can be filed.
Q: Who declares failure of CE?
A: Election officer
Q: If 50% has been complied with but no one garnered
majority vote, what is the legal effect?
A: Run-off election. Automatic 2nd election.

Compiled by A.A. Dizon ’15-’16 Page 14 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER

NO UNION
• Situation wherein there are 3 or more choices but a
“no union” won:
- A no union may win on account of freedom of
religion. There are religious groups allowed by law
not to form unions (Iglesia ni Cristo)
- A non-union cannot exist in a run-off election.
Q: Why does the constitution allow certain religious
groups NOT to join labor unions?
A: Bec. Freedom of religion is freedom of conscience
Q: If a no union won, does the law allow that in a
bargaining unit, there will be no union for some time?
A: No union situation rule will be allowed only for 1
YEAR. There will be a certification to that effect that in
the meantime for 1 year, there will be no union. Those
religious groups may still vote in CE by voting “no
union”.
WHO CAN VOTE IN A CERTIFICATION ELECTION
• ALL rank and file employees
• Probationary employee
• Dismissed employee
- Provided he contested his dismissal.
- If he contested, that means the EE-ER relationship is
just suspended.
Q: Do you determine the eligibility of voters in the CE?
A: NO. The CE is not proper forum. The proper forum
is the “Inclusion-Exclusion” proceedings or the pre-
election conference.


INSTANCES WHERE CE IS BARRED/ CANNOT BE
CONDUCTED – despite compliance with 25% consent
requirement
1. CONTRACT BAR RULE
- CE may not be conducted during existence of the
CBA
XPN: within 60-day freedom period immediately
preceding the 5th year of such CBA (prior to the
expiration of such CBA)
• As to representation: 5 YEARS
• As to negotiation: 3 YEARS
Q: What if there were negotiations, at the end of the 3rd
year the terms and conditions were approved by the
parties, ratified by the employees.
What is the duration of the validity of such terms and
conditions re-negotiated not later than the end of the 3rd
year of 5-year representation aspect of the CBA?
A: Period of validity – 2 years
Q: What if the 5-year representation aspect of the CBA
(old CBA) expired, no new CBA has been agreed upon,
is there hiatus bet. the relationship of employees to the
union?
A: NONE. Automatic Renewal Clause
- Law provides that the old CBA will subsist under the
principle of CBA continuity.
Q: What if CBA exists, and during the lifetime of the
CBA, there was a change in the CB Agent. Effect?
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
A: Still valid, but there is no prohibition upon the new CB
agent to shorten the life of the CBA.
Legal basis:
• New CB agent can move for shortening on
the ground that nature of CBA is a contract
in personam.
• Substitutionary doctrine: allows the
substitution of the old CB Agent with the
new CB agent – but it will not affect the
validity of CBA contracted by old CB agent.
60 DAY FREEDOM PERIOD
• CE shall be conducted in the 60-day freedom period
• Can also file a petition for intervention during this
period.
• Federations can also file petition for disaffiliation from
the federation of a member union.
2. ONE-YEAR CERTIFICATION BAR RULE
- No CE conducted within 1 year following the final
election results
- CE may not be held within 1 year from the date of
issuance of final certification result (there was an
actual conduct of elections)
- Applies to all modes of determining CB agencies
3. DEADLOCK BAR RULE
- CE cannot be conducted during the existence of a
bargaining deadlock
- During the bargaining process, bargaining may break
down, economic concessions cannot be given out by
the employer – it will create a deadlocl
- When you file a notice to strike due to bargaining
deadlock – it prohibits filing of CE
4. OUTSIDE THE FREEDOM PERIOD RULE
- A petition for CE or Motion for Intervention filed
before/after the freedom period – shall be dismissed
outright.
5. NEGOTIATION BAR RULE
- No representation issue may be entertained, if
before the filing of a petition for CE, the certified
bargaining union has commenced negotiations with
the employer w/in 1year from date of mode of
determining CB agencies.
6. APPEAL BAR RULE
- Any representation issue, the one that has
jurisdiction is the Mediation-Arbiter.
- The ruling of the Med-Arbiter is directly appealable to
the DOLE Secretary.
- Pending resolution to the appeal, cannot file CE.
7. CHARGE OF COMPANY UNIONISM RULE
- This is ULP. The employer captivated the hearts and
emotions of the union.
- Cannot conduct CE bec. It is a prejudicial question.
- The charge of ULP shall be resolved first before you
can file CE
Q: In the case of company unionism, can the union file
for CE?
A: No, because SC stated that it is a prejudicial
question which should be resolved ahead of CE.
However, there is a department order that said it is not
a PQ. SC prevails.
Page 15 of 18
LABOR RELATIONS REVIEWER
 Q: What if Union B filed for a CE. Union A contends
8. NOT LISTED IN THE REGISTRY RULE that they filed outside the 60-day period. Is Union A’s
- When the petitioner is not listed in DOLE’s registry of contention valid?
legitimate labor union or that is legal personality has A: No. Because Union B can file a petition for CE
been revoked or cancelled with finality. outside the 60-day period as XP bec of mass
GR: Only legitimate unions can file CE. Non- withdrawal, split from the majority union.
registered unions CANNOT file CE
XPN: RA 9481 COLLECTIVE BARGAINING AGREEMENT
o A chartered local that is used a charter (Usual contents of CBA enumeration, check p. 20 of Dizon
certificate by a federation or national union, Notes)
such local chapter is granted with an
imperfect, partial, incomplete, legal (1) UNION SECURITY CLAUSES
personality WHY?
o Although not registered, it can file but only - For union to have a mass based support, because thru
for purposes of CE this, the union will be a strong union who can maintain
its vitality in the bargaining process with the
Federations are composed of 2 types: management.
1) Affiliates
2) Local chapters issued by chartered “Closed shop agreement”
certificates Q: What is the important provision that should be
injected in the closed-shop agreement?
Q: May a local chapter become a full legal A: A union member should maintain his
person? membership in good standing to retain his
A: Yes. By submission only of the employment.
requirements of the law o If nowhere to be found: It is a mere
• Charter certificate hiring agreement NOT closed shop
• Consti bylaws agreement.
• Names of officers & addresses
• Local chapter’s location and address • SC: The title or nomenclature is not important, what is
important is the BODY which provides the proviso that
INSTANCES WHERE CERTIFICATION ELECTION IS the union member must maintain his membership in
ALLOWED 
 good standing in order to retain his employment. If not
(Exceptions to the Contract Bar Rule) there – construed against its existence
1. CBA is not registered - A closed shop agreement must be accompanied
- CBA is the law of the plant
by maintenance of membership shop
• It shall be approved by the parties, ratified by - In union shop, once employed, you must maintain
the employees, and registered to the RO of the membership with the contracting union and must
DOLE maintain good standing also.
- Purpose of registration: To bar CE
- IF not registered: Any legitimate labor union can
Q: Assuming closed-shop agreement is valid, can
file for CE. the union request the ER to dismiss an expelled
union member?
2. CBA is incomplete/ inadequate A: Yes. Upon request of the union.
- Because of the collusion of the ER and the union,
the contract became a sweetheart contract that Q: If you are a lawyer of the ER, what will you advise
does not provide substantial economic benefits to if there was a request from the union to expel the
the workers. said EE pursuant to the closed-shop agreement?
- The terms and conditions are substandard,
A: I will advise ER to observe due process. If ER did
incomplete and inadequate. not comply with due process even if there was a
- Will not bar CE
closed-shop agreement, it may amount to illegal
dismissal.
3. CBA has been hastily entered into or prematurely - If ER observed due process – the only relief that
extended may be imposed to the ER is REINSTATEMENT.
- Done outside the 60-day freedom period. o For other benefits: the union will be
- CBA has been prematurely extended.
- Doctrine of premature extension – not bar CE liable.

(2) COMMON FORMS OF UNION SECURITY CLAUSES

4. In case of mass disaffiliation, mass withdrawal or
split from majority union
- Union A (majority union members) transferred to
Union B. Union A despite lack of members can
STILL bargain.
- Until and unless the majority union is defeated in
the CE, in the eyes of the law, it is still the majority
union.
(Enumeration, Dizon Notes p. 21)
(3) MUTUAL OBSERVANCE CLAUSE
- Some CBAs provide that upon signing the
agreement, it has become effective, the parties are
required to comply with the terms and conditions of
the CBA in good faith.
- They shall be mutually observed in good faith.

Compiled by A.A. Dizon ’15-’16 Page 16 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER
(4) INCREASE IN WAGES
- Economic in nature.
- Escalator clause
o In the event of sudden increase in the
consumer price index or cost-of-living
index brought about by soaring prices of
prime commodities
o There is an agreement bet. parties that
there should be a corresponding gradual
increase of wages.
o If price decreases – wages not
decreased.
(5) NO STRIKE, NO LOCKOUT CLAUSE
- Waiver on the right to strike
GR: The right to strike cannot be waived
XPN: Instances when right to strike CAN BE
WAIVED:
1. No strike, no lockout clause in the
CBA
2. Issuance of an assumption order
3. Issuance of a preventive mediation
order
- Any notice of strike is filed at the NCMB
- NCMB should issue a preventive mediation order and
the purpose of this is to convert the notice of strike in to
a preventive mediation case.
G R I E VA N C E M A C H I N E R Y A N D V O L U N TA R Y
ARBITRATION
- Also known as Conclusive Arbitration Clause
- The judicial aspect of the CBA
Cases cognizable by the grievance machinery
- Those arising from the interpretation or implementation
of the CBA and those from the interpretation or
enforcement of company personnel policies.
PROCESS:
1. Initially grievance could be resolved w/ the
intervention of the union officer aka SHOP STEWARD
who narrows down the issues for resolution to the
highest mgt officer
2. Still not resolved: It shall be brought to the resolution
of the grievance machinery
3. Still not resolved: It shall be submitted for voluntary
arbitration.
Q: What is the nature of the transmittal from the
grievance machinery to voluntary arbitration?
A: The Labor Code answers this in the nature of
an APPEAL
Q: If instead of submitting to the grievance
machinery, they addressed it directly for voluntary
arbitration, is this allowed?
A: Yes. SC said there is no prohibition and is in
accord w/ speedy labor justice.
In Central Pangasinan Case,
Alleged violation of the CBA grievance
procedure is moot and academic. The parties’
active participation in the Voluntary Arbitration
proceedings and failure to insist that the case be
remanded to the Grievance Machinery – shows
clear intention to have the issue of respondent’s
Compiled by A.A. Dizon ’15-’16
Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz
illegal dismissal directly resolved by the
voluntary arbitrator.
HELD: It is unnecessary to rule on the matter in
light of the preference to bring the illegal
dismissal dispute to voluntary arbitration w/o
passing thru the grievance machinery.
DECISION OF THE VOLUNTARY ARBITRATOR
• The decision of the voluntary arbitrator (VA)–
appealable to the CA RULE 43 (ordinary appeal)
pursuant to Luzon Development Bank case:
HELD: The VA no less performs a state function
pursuant to a governmental power delegated to him
under provisions therefor in the Labor Code – he falls
w/in term “instrumentality” pursuant to Sec. 9 BP 129
- The fact that this functions and powers are
provided for in the LC does not place him w/in the
XPNs to said Sec. 9 since he is a quasi-judicial
instrumentality as contemplated therein.
• The decision of the VA has the legal effect of a decision
of the court that is why it is appealable to the CA.
GRIEVANCE:
• In the absence of a CBA, a grievance may still be
resolved. GM is not confined only when there is CBA.
• A grievance is usually initiated by the EE, but there is no
legal prohibition upon the ER to initiate a complaint on
matters that involve any ambiguity in the enforcement or
interpretation of company policies and collective
bargaining.
Attendance in grievance machinery:
• Parties are required to attend the GM procedures.
• Fails to attend: This party can be liable for ULP bec.
attendance in the GM is a requirement in the CBA
• There will be a violation of the CBA and this can be
treated as an ULP – refusal to bargain
• Do not want to attend because they want it to be
directed to VA - ALLOWED
OTHER MATTERS COGNIZABLE BY VA
1. Cases cognizable by the LA, transmitted for VA, by
agreement of the parties
- Submission agreement should be submitted to
the VA so that VA can recognize the case
- 2 remedies if any one of the parties does not want
to submit:
a) Notice to arbitrate – to compel other party to
submit for arbitration
b) Submission agreement by virtue of the
parties
2. Wage distortion problems in unionized establishments
3. Ordinary violations that will not amount to gross
violation of the CB
4. Matters for compulsory arbitration
ex. Illegal dismissal
- If illegal dismissal is submitted for VA, VA can take
cognizance of other collateral matters like award of
backwages and atty fees
5. Productivity incentives
- VA may resolve vital industry dispute by agreement
of the parties – submission agreement required
- It is allowed: RO of DOLE was appointed as VA
Page 17 of 18
LABOR RELATIONS REVIEWER
Administrative Intervention in an on-going dispute
• There is an order of the DOLE where you can request
for administrative intervention to resolve an on-going
labor dispute on matters of interpretation of company
policies and collective bargaining
• PROVIDED: this on-going dispute is not subject of a
notice of strike or subject to any labor body. It should be
filed by way of request to the Sec. of DOLE.
• This is also a form of arbitration
ex. Poultry raising and Cinema – no same interest so
1 interest = 1 bargaining unit
3. Prior collective bargaining history test
- Consider the bargaining history between the
bargaining unit and the ER
4. Similarity of employment status test
- Determine on account of status of employment

ex. Teachers in college and HS should not have

DOLE REGIONAL DIRECTORS AND ASSISTANT
REGIONAL DIRECTORS AS EX- OFFICIO VOLUNTARY
ARBITRATORS
• It is allowed on matters of interpretation of company
policies and collective bargaining
• Whatever matters involving labor dispute under the
administrative intervention of the DOLE, if the Sec. of
Labor will not resolve it, the Sec. may refer it to the Reg.
Director or Assistant Reg. Director of the DOLE –
because they are designated EVA (Ex-officio VA)
CBA IS THE LAW OF THE PLANT
- It is the fundamental charter that governs the
relationship of the ER and the union.
• IF CBA has a conclusive arbitration clause yet a notice
of strike is filed by the union, union CAN BE SUBJECT
OF ULP.
o SC: What will be the use of this clause if it will not
be complied with. CBA is the law of the plant. If
not complied with either of the parties will be
liable.
separate appropriate bargaining unit
CORPORATE SPIN-OFF RULE
• ALLOWED
• A big company creates small units in order to simplify
CB process.
• The transformation of the companies was a
management prerogative and business judgement must
be governed by the policy of good faith.
STOP LOCK GATE CLAUSE
(Non chargeability clause)
• This is the clause in the CBA where any increase in
wages or benefits in the CBA are exclusive of other
benefits that may later on be decreed by the
government, shall also be granted to the workers
• CBA benefits are exclusive to other benefits decreed
later on by the government. It cannot be charged in the
future.
XPN: Unless the CBA provides for a credibility
clause (that it can be credited against future
benefits decreed by the government)

Q: If there was incumbent bargaining agent who was

responsible for the CBA, approved by the parties, but
later on, there was a change in the bargaining agent
under the Substitutionary Doctrine. May a new
bargaining agent initiate process where the life of CBA
is shortened?
A: Yes. Because the CBA is in nature, a contract in
personam.

• An APPROPRIATE BARGAINING UNIT means the

process of grouping, classifying workers or employees
according to their employment status, qualifications,
salaries, terms and conditions.

4 WAY TEST IN DETERMINING APPROPRIATE CB

UNIT (Factors of determination)
1. Globe Election Doctrine
- The express will or desire of employees test
- Election conducted to determine the appropriate
bargaining unit

2. Community or mutuality of interests test

- There should be a similarity of interest
- Same qualifications, salaries and working conditions
- What is important is they have the same substantial
interest.

ex. Sales agents of beer in L,V.M. Should agents in

Luzon have diff. bargaining unit from Visayas and
Mindanao? – NO. They have same qualifications,
experience and bracket of salaries.

Compiled by A.A. Dizon ’15-’16 Page 18 of 18

Updates by CRUZ.DE DIOS.RUIZ ’17-’18 Notes and comments by Dean Salvador A. Poquiz LABOR RELATIONS REVIEWER