2018 BAR EXAMINATIONS

LABOR LAW AND SOCIAL LEGISLATION

I. FUNDAMENTAL PRINCIPLES AND CONCEPTS
A. Legal basis
B. 1987 Constitution (State Policies, Bill of Rights &
Social Justice)
1. Article II, Sections 9, 10, 18, 20
2. Article III, Sections 4, 8, 10, 16, 18(2)
3. Article XIII, Sections 2, 3, 13, 14
C. Civil Code
1. Articles 1700 to 1703
II. RECRUITMENT AND PLACEMENT
A. Illegal recruitment (Labor Code and R.A. No. 8042
or the Migrant Workers and Overseas Filipinos Act of
1995, as amended by R.A. No. 10022)
1. Elements
2. Prohibited activities (Article 34, Labor Code)
3. Types of illegal recruitment
4. Illegal recruitment vs. estafa
5. Liability of local recruitment agency and foreign
employer
a) Solidary liability
b) Theory of imputed knowledge
6. Termination of contract of migrant worker without just
or valid cause
7. Ban on direct hiring
B. Regulation of Recruitment and Placement Activities
1. Suspension or cancellation of license or authority
2. Regulatory and visitorial powers of the Department
of Labor and Employment (DOLE) Secretary
3. Prohibited activities
III. LABOR STANDARDS
A. Conditions of employment 2018 Bar Examinations
LABOR LAW AND SOCIAL LEGISLATION
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1. Scope
2. Hours of work
a) Principles in determining hours worked
b) Normal hours of work
(1) Compressed work week
(2) Power interruptions/brownouts
c) Meal Break
d) Waiting time
e) Night shift differential
f) Overtime work
g) Rest periods
3. Holiday pay, 13th month pay
4. Service charge
B. Wages
1. Wage versus salary
2. Payment of wages
3. Facilities versus supplements
4. Non-diminution of benefits
5. Prohibitions regarding wages
6. Wage Order, Wage Distortion
a) General concepts
C. Leaves
1. Service Incentive Leave
2. Maternity Leave
3. Paternity Leave
4. Parental Leave for solo parents (R.A. No. 8972)
5. Leave benefits for women workers under special
laws (R.A. No. 9710 or the Magna Carta of Women,
and R.A. 9262 or the Anti-Violence against Women and
Their Children Act of 2004)
D. Special Groups of Employees
1. Women
a) Discrimination
b) Stipulation against marriage
c) Prohibited acts
d) Sexual Harassment 2018 Bar Examinations LABOR
LAW AND SOCIAL LEGISLATION
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2. Minors (R.A. No. 7610, as amended by R.A. No.
9231)
3. Kasambahay Law (R.A. No. 10361)
4. Homeworkers
5. Night workers
6. Migrant Workers (R.A. No. 8042 or the Migrant
Workers and Overseas Filipinos Act of 1995, as
amended by R.A. No. 10022)
a) Claims for compensability of work-related death,
sickness, or disability
7. Apprentices and learners
8. Disabled Workers
a) Equal opportunity
b) Discrimination on employment
c) Incentives for employers
IV. POST-EMPLOYMENT
A. Employer-employee relationship
1. Tests to determine employer-employee
relationship
There must be: (1) selection and engagement of
employee; (2) payment of wage; (3) power of
dismissal; and (4) power of control
2. Kinds of employment
What is Regular Employment? A: (1) Involves activities
which are usually necessary or desirable to the trade or arrangements: 1. Principal – who decides to farm out
business of the employer (Art 295 LC); or (2) Where
any employee has rendered at least one (1) year of
service
: Define casual/temporary employment. A: It is where
the employment has been fixed for a specific project,
the completion of which has been determined at the
time of the agreement of the employee
Seasonal: It is one where work during a particular
season on an activity that is usually necessary or
desirable in the usual business or trade
project employment- It is one where work is fixed for a
specific project or undertaking the completion of which
has been determined at the time of engagement of the
employee. The period is not the determining factor, so
that even if the period is more than one (1) year, the
employee does not necessarily become regular
probationary employee- As a general rule, probationary B. Termination of Employment
employment shall not exceed a period of 6 months.
The exception is when it is covered by an
apprenticeship agreement covering a longer period
3. Subcontracting versus Labor-Only Contracting authorized by law. It extends to regular (permanent) as
a) Elements
There is permissible job contracting when: (1) The
contractor carries on an independent business and
undertakes to contract work on his own account under employer has become so unbearable as to leave an
his own responsibility according to his own manner and employee with no choice but to forego continued
method, free from the control and method, free from
the control and direction of his employer or principal in (694 SCRA 312, 2013), the SC found that by not
all matters connected with the performance of the
work, except as to the results thereof; and (2) When
the contractor has substantial capital or investment in
the form of tools, equipment, machineries, work
premises, and other material which are necessary in
the conduct of his business
***Q: How does one determine whether or not there is
labor-only contracting? A: (DEL CASTILLO) To
determine whether a contractor is engaged in labor-
only contracting or permissible job contracting, “the
totality of the facts and the surrounding circumstances Misconduct or Willful Disobedience by the employee of
of the case are to be considered.”
The law presumes a contractor to be a laboronly
contractor and the employees are not expected to
prove the negative fact that the contractor is a labor-
only contractor. As held in Alilin v. Petron Corporation,
"where the principal is the one claiming that the
contractor is a legitimate contractor, the burden of
proving the supposed status of the contractor rests on
the principal."
Labor only: : The elements are as follows – 1. The
contractor does NOT a. have substantial capital - or -
b. have investments in the form of tools, equipment,
machineries, supervision, work premises among
others, and 2. The contractor’s or subcontractor’s
employees recruited and placed are performing
activities which are directly related to the main
business operation of the principal; or 3. The contractor
or subcontractor does not exercise the right of control
over the work of the employee
b) Trilateral relationship
It refers to a job contracting or subcontracting
arrangement where there is a contract for a specific
job, work or service between the principal and the
contractor, and a contract of employment between the
contractor and its workers.
Three parties involved in contracting or subcontracting
the job, work or service to a contractor 2. Contractor –
who has the capacity to independently undertake the
performance of the job, work or service 3. Workers –
who are engaged by the contractor to accomplish the
job, work or service
c) Solidary liability
ci) 1. Liable directly as an employer for all money
claims including those punitive in nature 2.
Liable to pay employees of supposed
contractor the same rate for regular employees
performing similar functions, because they are
deemed employees of the principal now 3.
Liable for salary differentials
cii) The labor-only contractor is solidarily liable
with the principal. Thus, releases, waivers, and
quitclaims in favor of the contractor redounds
to the benefit of the principal.
Security of tenure is the constitutional right granted to
the employee, that the employer shall not terminate the
services of the employee except for just cause or when
well as non-regular (temporary) employment.
C. Termination by Employee
1. Resignation versus Constructive dismissal
constructive dismissal : : It exists when an act of clear
discrimination, insensibility or disdain on the part of the
employment. In the case of Bañares vs. TAWTRASCO
providing proper office space, office supplies, or a
living allowance after being transferred to the province,
there was a clear case of constructive dismissal.
: What are the stages of resignation? (1) Conduct
before resignation (2) Resignation itself (3) Conduct
after resignation
D. Termination by Employer
1. Just Causes
Just causes: (SoMe WiD GAN FWeT CO) 1. Serious
the lawful orders of his employer or representative in
connection with his work (work-related) 2. Gross And
habitual Neglect by the employee of his duties 3. Fraud
or Willful breach by employee of the Trust reposed in
him by his employer or duly authorized representative
(not mere suspicion) 4. Commission of a Crime or
offense by the employee against the person of his
employer or any immediate member of his family or
duly authorized representative 5. Other analogous
cases
***Q: Is theft of company property a serious
misconduct? A: (DEL CASTILLO) YES. Jurisprudence
has classified theft of company property as a serious
misconduct and denied the award of separation pay to
the erring employee. The employee in this case
attempted to steal the property of her longtime
employer.
2. Authorized Causes
The following are examples of authorized causes: (1)
Installation of labor-saving devices (automation); (2)
Redundancy (superfluity in the particular work); (3)
Retrenchment (a) That the retrenchment is reasonably
necessary to prevent business losses which, if already
incurred, are not merely de minimis, but substantial,
serious, actual, and real or, if only expected, are
reasonably imminent; (b) That the employer served
written notice both to the employees and to the
Department of Labor and Employment at least one
month prior to the intended date of retrenchment; (c)
That the employer pays the retrenched employees
separation pay equivalent to one month pay or at least
one month pay for every year of service, whichever is
higher; (d) That the employer exercises its prerogative
to retrench employees in good faith for the
advancement of its interest and not to defeat or
circumvent the employee's’ right to security of tenure;
and (e) That the employer used fair and reasonable
criteria in ascertaining who would be dismissed and
who would be retained among the employees, such as
status efficiency, seniority, physical fitness, age, and
financial hardship for certain workers (Asian Alcohol
Corp. v. NLRC, 1999). (4) The closing or cessation of
operation of the establishment or undertaking and not
for the purpose of circumventing the provisions of the
Labor Code; and (5) Illness
3. Due Process
a) Twin-notice requirement
The employer has the burden of proving that a
dismissed worker has been served two notices: 1. First
written notice: served on the employee specifying the
ground or grounds for termination, and giving said
employee reasonable opportunity within which to
explain his side. 2. Second written notice: served upon
the employee, indicating that upon due consideration
of all the circumstances, grounds have been
established to justify his termination.
b) Hearing; Ample opportunity to be heard
After serving the first notice, the employer should
schedule and conduct a hearing or conference wherein
the employee will be given the opportunity to: 1.
explain and clarify his defenses to the charge/s against
him; 2. present evidence in support of his defenses;
and 3. rebut the evidence presented against him by the
management.
E. Reliefs from Illegal Dismissal
An employee who is unjustly dismissed from work shall
be entitled to reinstatement without loss of seniority
rights and other privileges and to his full backwages,
inclusive of allowances and to his other benefits or their
monetary allowances, and to his other benefits or their
monetary equivalent computed from the time his
compensation was withheld from him up to the time of
his actual reinstatement
Q: What is the effect if reinstatement is no longer
possible? A: According to the SC, “in lieu of
reinstatement, petitioner is entitled to separation pay
equivalent to one (1) month salary for every year of
service reckoned from the time he commenced his
employment with TAWTRASCO until finality of this
Decision.
F. Preventive Suspension
: Preventive suspension may be imposed upon an
employee who is under investigation for certain serious
offenses. As its purpose is to prevent harm from
befalling the company/business/other workers, this can
only be resorted to when an employee’s continued
presence poses a serious and imminent threat to the
life or property of the employer. (
G. Retirement
Q: Who are eligible to receive retirement pay? A: All
employees in the private sector, regardless of their
position, designation or status, and irrespective of the
method by which their wages are paid. The exceptions
are: (1) Employees covered by the Civil Service Law;
(2) Employees in retail, service and agricultural
establishments or operations regularly employing not
more than 10 employees
The minimum retirement pay shall be equivalent to ½
month salary for every year of service, a fraction of at
least 6 months being considered as one whole year
For the purpose of computing retirement pay, ½ month
salary shall include the following: (1) 15 days salary
based on the latest salary rate; (2) Cash equivalent of
5 days of service incentive leave; and (3) ½ of the 13th
month pay
Exceptions: (1) Retail, service and agricultural
establishment or operations employing not more than
10 employees or workers who are exempted from the
coverage of the provision on retirement benefits in the
Labor Code; and (2) Where there is a retirement plan
of the employer that grants more than what the Labor
Code grants (Sec. 1 RA 7641).
Any employee may retire or be retired by his/her
employer upon reaching the age established in the
CBA; Provided, that such retirement benefits shall not
be less than the retirement pay
*****Q: Is an employee who was terminated for
authorized causes (redundancy), also entitled to avail
of early retirement benefits? Otherwise stated, may an
employee be paid both retirement and separation pay
benefits? A: (DEL CASTILLO) YES, as a general rule.
Exception: When there is an explicit provision in the
company rules prohibiting the availment of both.
Employees are legally entitled to recover both
separation pay and retirement benefits in the absence
of a specific prohibition in the Retirement Plan or CBA.
In such an instance where both the company rules or
CBA and the retirement plan are silent, an employee is
not barred from claiming his early retirement benefits,
even if he/she had already received his retrenchment
pay, and has executed a Quitclaim to that effect. This
must be so because he is legally entitled thereto as a
general rule.
V. MANAGEMENT PREROGATIVE
A: In the case of Republic Planter’s Bank v. NLRC
(G.R. No. 117460, 1997), the Court ruled that it was
valid for an employer to establish as policy that
once an employee is found guilty of an
administrative charge, he shall forfeit his bonus in
favor of the employer. However, as enunciated in
Sime-Darby Pilipinas vs. NLRC (G.R. 119205, 1998),
management retains the prerogative to change the
working hours of its employees whenever
exigencies of the service so require.
A. Discipline
Except as limited by special laws, an employer is free
to regulate, according to his own discretion and
judgment, all aspects of employment, including hiring,
work assignments, working methods, time, place and
manner of work, tools to be used, process to be
followed, supervision of workers, working regulations,
transfer of employees, work supervision, lay – off
workers and the discipline, dismissal and recall of
work.
B. Transfer of employees
: It is the prerogative of the company to promote,
transfer or even demote its employees to other
positions when the interests of the company
reasonably demand it. Unless there are instances
which directly point to interference by the company with
the employee’s right to self – organization, the transfer
of an employee should be considered within the
bounds allowed by law
***Q: What are the jurisprudential guidelines on the
transfer of employees? A: (DEL CASTILLO) 1. A
transfer is a movement from one position to another of
equivalent rank, level or salary without break in the
service or a lateral movement from one position to
another of equivalent rank or salary; 2. The employer
has the inherent right to transfer or reassign an
employee for legitimate business purposes; 3. A
transfer becomes unlawful where it is motivated by
discrimination or bad faith or is effected as a form of
punishment or is a demotion without sufficient cause;
4. The employer must be able to show that the transfer
is not unreasonable, inconvenient, or prejudicial to the
employee.
C. Productivity standard
Q: Is the imposition of productivity standards an
allowable practice? A: The SC said, in the case of
Leonardo v. NLRC (G.R. Not. 125303, 2000), that this
arrangement appears to be an allowable exercise of
company rights. An employer is entitled to impose
productivity standards for its workers and
noncompliance may be visited with a penalty even
more severe than demotion.
D. Bonus
An employer cannot be forced to distribute bonuses
when it can no longer afford to pay. The granting of a
bonus is a management prerogative, something given
in addition what is ordinarily received by or strictly due
the recipient
E. Change of working hours
management is free to regulate, according to its own
discretion and judgment, all aspects of employment,
including hiring, work assignments, working methods,
time, place and manner of work, processes to be
followed, supervision of workers, working regulations,
transfer of employees, work supervision, layoff of
workers and discipline, dismissal and recall of workers
F. Marriage between employees of competitor-
employers
G. Post-employment ban
Q: What factors does the Court consider in deciding
the validity of a Post-employment ban? A: In
determining whether the contract is reasonable or not,
the trial court should consider the following factors: (a)
whether the covenant protects a legitimate business
interest of the employer; (b) whether the covenant
creates an undue burden on the employee; (c) whether
the covenant is injurious to the public welfare; (d)
whether the time and territorial limitations contained in
the covenant are reasonable; and (e) whether the
restraint is reasonable from the standpoint of public
policy
VI. SOCIAL WELFARE LEGISLATION
A. SSS Law (R.A. No. 8282)
1. Coverage and Exclusions
The following are subject to compulsory coverage
under the SSS Law: (1) All employees not over 60
years of age and their employees; (2) Domestic
helpers whose income is not less than P1,000; (3) Self-
employed
Q: Who are subject to voluntary coverage under the
SSS Law? A: The following are subject to voluntary
coverage under the SSS Law: (1) Spouses who devote
full time managing the household and family affairs;
(Sec. 9(a), RA 8282) (2) Filipinos recruited by foreign
based employers for employment abroad
The following are excluded from the compulsory
coverage of the SSS Law: (1) Employment of purely
casual and not for the purpose of the occupation or
business of the employer; (2) Service performed on or
in connection with an alien vessel if he is employed
when such vessel is outside the Philippines; (3)
Services performed in the employ of the Philippine
Government or on instrumentality of agency thereof;
(4) Service performed in the employ of a foreign
government of international organization, or their
wholly-owned instrumentality; and (5) Such other
service performed by temporary employees (
2. Dependents, beneficiaries
: Under both laws, the following shall be considered as
dependents: 1. Legal spouse entitled for support; 2.
Child, whether legitimate, legitimated, legally adopted
or illegitimate; 3. Parents receiving regular support
from the member.
3. Benefits
1. Monthly Pension 2. Dependents Pension 3.
Retirement 4. Death 5. Permanent Disability 6. Funeral
7. Sickness 8. Maternity (ONLY 1ST FOUR
DELIVERIES OR MISCARRIAGES) 9. Loan Grant
B. GSIS Law (R.A. No. 8291)
1. Coverage and Exclusions
All employees receiving compensation who have not
reached the compulsory retirement age, irrespective of
employment status; and members of the judiciary and
constitutional commissions for life insurance policy
Exclusion:
1. Members of the AFP and PNP, subject to the
condition that they must settle first their financial
obligation with the GSIS; 2. Contractual employees,
who have no employeremployee relationship with the
agencies they serve; 3. Uniformed personnel of the
Bureau of Fire Protection (BFP); 4. Uniformed
personnel of the Bureau of Jail Management and
Penology (BJMP); 5. Barangay and Sanggunian
Officials who are not receiving fixed monthly
compensation; 6. Employees who do not have monthly
regular hours of work and are not receiving fixed
monthly compensation
2. Dependents, beneficiaries
: Under both laws, the following shall be considered as
dependents: 1. Legal spouse entitled for support; 2.
Child, whether legitimate, legitimated, legally adopted
or illegitimate; 3. Parents receiving regular support
from the member.
3. Benefits
The following are the benefits under the GSIS Law : (1)
Employees compensation which shall include both
income and medical and related benefits, including
rehabilitation; (2) Temporary total disability benefit; (3)
Permanent total disability benefit; (4) Separation
benefit; and (5) Retirement benefit
C. Employee’s compensation – coverage and
when compensable
CI. Q: Who are covered under the ECC Law? A: 1.
Every employer 2. Every employee not over 60
years old 3. Any employee over 60 years of
age if he had been paying contributions prior to
age 60 and has not been compulsorily retired.
4. An employee who is coverable by both the
GSIS and SSS shall be compulsorily covered
by both systems. (Sec. 2, Rule I, Amended
Rules on Employees’ Compensation,
implementing Title II, Book IV of the Labor
Code.) 5. Filipinos working abroad in the
service of an employer as defined in Section 3
hereof shall be covered by the System, and
entitled to the same benefits as are provided
for employees working in the Philippines
Q: What are the grounds for compensability under the
ECC law? A: 1. For the injury and the resulting
disability or death to be compensable, the injury must
be the result of accident arising out of and in the
course of the employment. 2. For the sickness and the
resulting disability or death to be compensable, the
sickness must be the result of an occupational disease
listed under the Annex of the IR dealing with
occupational diseases with the conditions set therein
satisfied. Otherwise, proof must be shown that the risk
of contracting the disease is increased by the working
conditions
VII. LABOR RELATIONS
A. Right to self-organization
1. Who may/may not exercise the right
The following may exercise the right to self-
organization for purposes of collective bargaining: (1)
All persons employed in commercial, industrial, and
agricultural enterprises; (2) Employees of government-
owned or controlled corporations established under the
Corporation Code; (3) Employees of religious,
charitable, medical or educational institutions whether
operating for profit or not; (4) Supervisory employees,
provided that they do not join the same union as rank
and file employees; (5) Alien employees (Sec. 2, Rule
II, Book V, IRR of the Labor Code, as amended); (6)
Working children (Art. 111; P.D. 603); (7) Home
workers (Sec. 3, D.O. 05-92); (8) Cooperative’s
employees which are not members or co-owners
thereof (CENECO v. Secretary of Labor, 1991); (9)
Employees of legitimate contractors
a) Doctrine of necessary implication
While Art. 255 of the Labor Code singles out
managerial employees as ineligible to join, assist or
form any labor organization, under the doctrine of
necessary implication, confidential employees are
similarly disqualified. This doctrine states that what is
implied in a statute is as much a part thereof as that
which is expressed
2. Commingling/Mixture of membership
3. Rights and conditions of membership
a) Nature of relationship
The relationship of the union and the member is
fiduciary in nature. The union may be considered the
agent of its members for the purpose of securing for
them fair and just wages and good working conditions
and is subject to the obligation of giving the members
as its principals all information relevant to union and
labor matters entrusted to it.
(1) Member-Labor union
(2) Labor union-Federation
Mere affiliation does not divest the local union of its
own personality, neither does it give the mother
federation the license to act independently of the local
union. It only gives rise to a contract of agency, where
the former acts in representation of the latter.
(i) Disaffiliation
General Rule: a labor union may disaffiliate from the
mother union to form a local or independent union
ONLY during the 60 day freedom period immediately
preceding expiration of CBA
Exception: Shift of allegiance of majority. In such a
case, however, the CBA continues to bind members of
the new or disaffiliated and independent union up to
the CBA’s expiration date. (
(ii) Substitutionary doctrine
A new collective bargaining agency cannot repudiate
an existing collective bargaining agreement, because
the existing collective bargaining agreement must be
honored by a new exclusive bargaining representative
because of the policy of stability in labor relations
between an employer and the workers
B. Bargaining Unit
It is a group of employees of a given employer,
comprised of all or less than all of the entire body of
employees, which the collective interest of all
employees, consistent with equity to the employer
indicate to be the best suited to serve the reciprocal
rights and duties of the parties under the collective
bargaining provisions of the law
****(DEL CASTILLO) The labor organization’s charter
certificate need not be certified under oath in order for
it to be considered a legitimate labor organization
C. Bargaining Representative
1. Determination of representation status
It has to be certified as such through either: 1. Sole and
exclusive bargaining agent (SEBA) Certification
proceeding - applies to an unorganized establishment
with only one LLO 2. Certification Election - the
process of determining, through secret ballot, the sole
and exclusive bargaining agent of the employees in an
appropriate bargaining unit, for purposes of collective
bargaining. 3. Consent Election - one that is voluntarily
agreed upon by the parties, with or without the
intervention by the DOLE, in determining the sole and
exclusive bargaining representative of the employees
in an appropriate bargaining unit.
D. Rights of labor organization
1. Check off, Assessment, Agency fees
A check-off is a process whereby the employer, on
agreement with the EBR, deducts union dues or
agency fees from the latter's wages and remits them
directly to the union. No special assessments,
attorney’s fees, negotiation fees or any other
extraordinary fees may be may be checked off from
any amount due to an employee without a. An
INDIVIDUAL WRITTEN authorization duly signed by
the employee b. The authorization should specifically
state the (1) amount, (2) purpose and (3) Beneficiary of
the deduction
A special assessment or extraordinary fee may be
levied when authorized by a WRITTEN resolution of a
MAJORITY of all the members in a general
membership meeting duly called for the purpose. The
Secretary of the organization shall record the minutes
of the meeting including the (a) list of all members
present, (b) votes cast, (c) purpose of the special
assessment or fees and (d) recipient of such
assessment or fees. The record shall be attested to by -Observes the procedural requirements, which are
the president mandatory, and nonobservance makes strikes illegal i.
notice of strike ii. cooling-off period iii. strike vote iv.
: This is an amount, equivalent to union dues, which a strike vote repor
nonunion member pays to the union because he -Conducted for a lawful purpose. The only two
benefits from the CBA negotiated by the union. It is an strikeable grounds that may validly support a strike are:
agency fee because in negotiation the CBA, the union i. collective bargaining deadlock; and/or ii. employer’s
served as the employees’ agent. unfair labor practice
2. Collective bargaining illegal strike: Contrary to a specific prohibition of law,
a) Duty to bargain collectively such as strike by government employees; or
It is the performance of a mutual obligation to meet and -Violates a specific requirement of law (failure to
convene promptly and expeditiously in good faith for comply with the procedural requirements set by law); or
the purpose of negotiating an agreement with respect -Is declared for an unlawful purpose, such as inducing
to wages, hours of work, and all other terms and the employer to commit a ULP against non-union
conditions of employment, including proposals for employees; or
adjusting any grievances or questions arising from b) Picket
such agreement and executing a contract incorporating It is the marching to and fro at the employer’s
such agreements if requested by either party, but such premises, usually accompanied by the display of
duty does not compel any party to agree to a proposal placards and other signs making known the facts
or to make any concession. involved in a labor dispute.
b) Collective Bargaining Agreement (CBA) 2. By employer
: It is the negotiated contract between a duly a) Lockout
recognized or certified exclusive bargaining agent of A lock-out is proper only when the following requisites
workers and their employer, concerning wages, hours are met: 1. Notice of intention to declare a lock-out has
of work, and all other terms and conditions of been filed with the DOLE; 2. At least thirty days has
employment in the appropriate bargaining unit, elapsed since the filing of the notice before lock-out is
including mandatory provisions for grievances and declared; 3. An impasse has resulted in the
arbitration machineries. negotiations; and 4. The lock-out is not discriminatory
(1) Mandatory provisions of CBA 3. Assumption of jurisdiction
1. Wages 2. Hours of Work 3. Other Terms and : The power to issue assumption or certification orders
Conditions of Employment 4. Grievance procedure is an extraordinary authority granted to the President
E. Unfair Labor Practice and to his alter ego, the DOLE Secretary, the exercise
1. Nature, aspects of which is strictly limited to national interest cases.
Unfair labor practices (hereinafter “ULP”) violate the
constitutional right of workers and employers to self- The Secretary of Labor may issue an assumption of
organization, are inimical to the legitimate interests of jurisdiction order when in his opinion there exists a
both labor and management, including their right to labor dispute causing or likely to cause a strike or lock-
bargain collectively and otherwise deal with each other out in an industry indispensable to the national interest
in an atmosphere of freedom and mutual respect.
2. By employers *****(DEL CASTILLO) The impending strike in
: Rundown of Acts Constituting Unfair Labor Practice of Philtranco, a public transportation company whose
Employers (YIP-C2-D2-V2) 1. Interference 2. Yellow business is imbued with public interest, required that
dog condition 3. Contracting out 4. Company unionism the Secretary of Labor assume jurisdiction n over the
5. Discrimination for or against union membership 6. case, which in fact, he did
Discrimination because of testimony 7. Violation of duty a) Nature
to bargain 8. Paid negotiation 9. Violation of CBA b) Effects of assumption of jurisdiction
3. By labor organizations Automatically enjoins the intended or impending strike
1. To restrain or coerce employees in the exercise of or lock-out; and If one has already taken place, all
their right to self-organization. 2. To attempt to or cause striking or locked-out employees shall immediately
an employer to discriminate against an employee to return to work and the employer shall immediately
whom membership in the labor organization was resume operations and readmit all workers under the
denied or to terminate an employee on any ground same terms and conditions prevailing before the strike
other than the usual terms and conditions under which or lock-out.
membership or continuation of membership is made VIII. JURISDICTION AND REMEDIES
available to other members. 3. To refuse to bargain A. Labor Arbiter
collectively with the employer, if it is the representative 1. Jurisdiction
of the employee. 4. To attempt to or cause the 2. : Labor Arbiters have jurisdiction over the
employer to pay money or other things of value, in the following cases, involving all workers, whether
nature of an exaction, for services which are not agricultural or nonagricultural: (1) Unfair labor
performed or not to be performed. This includes fees practice cases; (2) Termination disputes; (3) If
for union negotiations. 5. To ask or accept negotiations accompanied with a claim for reinstatement,
or attorney’s fees from employers as part of the those cases involving wages, rates of pay,
settlement in any dispute. 6. Violation of CBA hours of work and other terms and conditions
F. Peaceful concerted activities of employment; (4) Claims for actual, moral,
1. By labor organization exemplary and other forms of damages arising
a) Strike from employer-employee relations; (5) Cases
A strike is a temporary stoppage of work as a result of arising from any violation of Art. 279 of the
an industrial or labor dispute. Labor Code, including the legality of strikes
(1) Valid versus Illegal strikes and lockouts; (6) All other claims arising from
Valid: Not contrary to a specific prohibition of law employer-employee relations, including those
(government employees do not have the right to strike) in domestic or household service, involving an
 amount exceeding P5,000.00 whether or not
accompanied with a claim for reinstatement;
Exception: Claims for Employment
Compensation, Social Security, Philhealth and
maternity benefits. (7) Wage distortion disputes
in unorganized establishments nor voluntarily
settled pursuant to R.A. 6727; (8) Enforcement
of compromise agreements when there is non-
compliance by any of of the parties pursuant to
Art. 233, Labor Code; (9) Money claims arising
from employer-employee relations or by virtue
of any law or contract involving overseas
contract workers under the Migrant Workers
Act of 1995 (R.A. 8042, as amended by R.A.
10022); (10)Other cases as may be provided
by law
a) Labor Arbiter versus Regional Director
Q: Who has jurisdiction over small money claims? A:
The Regional Director has jurisdiction. It is empowered
through summary proceedings and after due notice, to
hear and decide cases involving recovery of wages
and other monetary claims and benefits, including legal
interest, provided that the following requisites are
present: (1) The aggregate money claims of each
employee or house-helper does not exceed P5,000.00;
(2) The claim is presented by an employee or person
employed in domestic or household service or house
helper; (3) The claim arises from the employer-
employee relations; and (4) The claimant does not
seek reinstatemen
2. Requirements to perfect appeal to NLRC
: To perfect an appeal to the NLRC, the following must
be complied with: (1) It must be verified by the
appellant in accordance with Sec 4, Rule 7 of the rules
of Court (2) It must be in the form of a memorandum of
appeal which shall state the grounds relied upon and
the arguments in support thereof, the relief prayed for,
and with a statement of the date when appellant
receive the appealed decision, award or order. (3) It
must be in three (3) typewritten or printed copies; and
(4) It must be accompanied by: (a) Proof of payment of
appeal fee and legal research fee; (b) Posting of cash
and surety bond; and (c) Proof of service upon the
other parties.
****(DEL CASTILLO) The right to appeal is neither a
natural right nor a component of due process, and it
must be exercised in the manner prescribed by law.
Financial difficulties may not be invoked as a valid
ground to reduce bond. At any rate, it was not
substantiated by proof
3. Reinstatement pending appeal
4. : If reinstatement is ordered in an illegal
dismissal case, it is immediately executory
even pending appeal. This means that the
perfection of an appeal shall stay the execution APPELLATE JURISDICTION
of the decision of the Labor Arbiter except
execution of the reinstatement pending appeal. Med-Artbitration Unit (Med-Arbiter) 1. Accounts
Self-executing with no need for a writ of
execution – only applicable to order issued by
Labor Arbiter. Writ of execution required when
reinstatement is ordered by NLRC on appeal,
or subsequently by the court of appeals or
Supreme Court, as the case may be. Either
admitted back to work under the same terms
and conditions prevailing prior to his dismissal misappropriation or nonaccounting of funds of
or separation or merely reinstated in the payroll independent unions, chartered locals, or workers’
(at the option of the employer, i.e. confidential associations, in violation of Art. 250 C. All decisions of
employee, but the choice must be
communicated to the employee by the
employer) Posting of a bond shall not stay the
execution of reinstatement. The unjustified
refusal of the employer to reinstate an illegally
dismissed employee entitles the employee to
payment of his salaries.
B. National Labor Relations Commission
1. Jurisdiction
The NLRC has original jurisdiction over the following
cases: (3) Petition for injunctions or TRO in ordinary
labor disputes. (Art. 225, LC; Sec. 1, Rule X, 2011
NLRC Rules of Procedure); (4) Petition for injunction in
strikes and lockouts (Sec. 2, Rule X, 2011 NLRC,
Rules of Procedure); (5) Certified cases by the
secretary of Labor in an industry indispensable to the
national interest. (Art. 278 (g), LC; Sec. 2, Rule VIII,
2011 NLRC Rules of Procedure); (6) Petition to annul
or modify the decision of the Court of Appeals.
C. Court of Appeals
1. Appeal via Rule 65, Rules of Court
If the labor case was decided by: 1. the DOLE
Secretary, in his appellate jurisdiction; 2. the
Commission (NLRC); and 3. the Director of the Bureau
of Labor Relations (BLR) in cases decided by him in
his appellate jurisdiction (as distinguished from those
he decides in his original jurisdiction which are
appealable to the DOLE Secretary).
D. Supreme Court
1. Rule 45, Rules of Court
E. Bureau of Labor Relations
1. Jurisdiction
ORIGINAL JURISDICTION
1. Union registration of federations, national
unions, or workers’ associations operating in
more than one region 2. Change of name or
merger or consolidation of federation or
national 1 union 3. Direct or indirect contempt
for acts committed against BLR Director 4.
Petition for certification election by an
employer who was requested to bargain
collectively 5. Petitions for conduct of election
of union officers of federations, national or
industry unions and trade union centers 6.
Requests or complaint for accounts
examination of federations or national unions
and trade union centers pursuant to Art. 289 7.
Inter/intra-union and other labor relations
disputes involving federations, national or
industry unions, trade union centers and their
chartered locals, affiliates or member
organixations, except those arising from
implementation and interpretation of CBA 8.
Complaint or petition alleging mishandling,
misappropriation or nonaccounting of funds of
federations or national unions and trade union
centers, in violation of Art. 250 (treated as an
intra-union dispute)
A. All disputes from the Labor Relations Division B.
examination of independent unions, chartered locals,
and worker’s associations pursuant to Art. 289 2. Other
inter-intra-union and labor relations disputes of
independent unions, chartered locals, and workers’
association not under RD’s jurisdiction and not arising
from implementation and interpretation of CBA 3.
Complaint or petition alleging mishandling,
the Regional Directo
F. National Conciliation and Mediation Board
 1. Conciliation vs. Mediation
conciliation: : It is the process of dispute
management whereby parties in dispute are
brought together for the purpose: (1) Amicably
settling the case upon a fair compromise; (2)
Determining the real parties in interest; (3)
Defining and simplifying the issues in the case;
(4) Entering into admissions or stipulations of
facts; and (5) Threshing out all other
preliminary matters
2. Mediation: It is a voluntary process of settling
disputes where the parties elect a mediator to
facilitate the communication and negotiation
between the parties in dispute for the purpose
of assisting them in reaching a compromise.
2. Preventive mediation
Labor disputes which are the subject of a formal or
informal request for conciliation and mediation
assistance sought by either or both parties or upon the
initiative of the NCMB
: Only a certified or duly recognized bargaining agent
may file a notice or request for preventive mediation.
G. DOLE Regional Directors
1. Recovery/Adjudicatory power
Requisites for Regional Director to Decide Small
Money Claims 1. Claim is presented by an employee,
or a person employed in domestic or household
service, or employer; 2. The claim arises from an EER;
3. The claimant does not seek reinstatement; and 4.
The aggregate money claim of each claimant does not
exceed PhP 5,000
The DOLE Regional Director has original jurisdiction
over small money claims cases arising from labor
standards violations in the amount not exceeding
P5,000.00 and not accompanied with a claim for
reinstatement under Article 129 of the Labor Code.
H. DOLE Secretary
1. Visitorial and enforcement powers
1. Access to employer’s records and premises at any
time of the day or night whenever work is being
undertaken therein, and 2. the right to copy therefrom,
3. to question any employee and investigate matters
which may be (1) necessary to determine violations or
(2) which may aid in the enforcement of labor laws or
rules. 4. to issue compliance orders to give effect to the
labor standards 5. issue writs of execution, except in
cases where the employer (1) contests the findings and
(2) raises issues supported by documentary proofs
which were not considered in the course of inspection.
6. (limited to the Secretary) order stoppage of work due
to non-compliance with the law or IRR that poses grave
and imminent danger to the health and safety of
workers in the workplace. (a hearing within 24 hours
shall determine if the suspension should be lifted or
not.) In case the violation is attributable to the
employer, he shall pay the employees’ salaries during
suspension. 7. (limited to the Secretary) by appropriate
regulations, require employers to keep and maintain
such employment records as may be necessary in aid
of his visitorial and enforcement powers
2. Power to suspend effects of termination
3.
4. The Secretary of Labor and Employment may
suspend the effects of the termination pending
resolution of the dispute in the event of a prima
facie finding by the appropriate official of the
Department of Labor and Employment before
whom such dispute is pending that the
termination may cause a serious labor dispute
or is in implementation of a mass lay-off
3. Remedies
Decisions of the DOLE Secretary are appealable to the
NLRC within 5 calendar days
Remedy where no EER exists Where no employer-
employee relation exists between the parties and no
issue is involved which may be resolved by reference
to the Labor Code, other labor statutes, or any
collective bargaining agreement, it is the RTC that has
jurisdiction.
The RTC has jurisdiction over the claim of an
independent contractor to adjust the contractor’s fee
I. Voluntary arbitrator
1. Jurisdiction
2. 1. Article 261 of the Labor Code provides that
Voluntary Arbitrator shall have original and
exclusive jurisdiction over unresolved
grievances arising from the interpretation or
implementation of the CBA and those arising
from the interpretation or enforcement of
company personnel policies. 2. Violations of
the CBA which are not gross in character if not
resolved through the grievance machinery. 3.
All other labor disputes including ULP and
bargaining deadlock upon agreement of the
parties
2. Remedies
3. Q: What are the instances when an order of
execution may be appealed? A: 1. When
execution becomes impossible or unjust, it
may be modified or altered on appeal to
harmonize the same with justice and the facts
(Torres vs. NLRC, G.R. No. 107014, 2000). 2.
Supervening events may warrant modification
in the execution of judgment, as when
reinstatement is no longer possible because
the position was abolished as a cost-cutting
measure due to losses. (Abalos vs. Philex
Mining Corp, G.R. No. 140374, 2002). 3.
Where the writ is found defective, exceeds or
varies the award and/or is irregularly issued.
J. Prescription of actions
General Rule: 3 years from the time the cause of action
accrued. Exception: ULP cases prescribe within 1 year
from accrual of such unfair labor practice
1. Money claims
2. Illegal dismissal
3. Unfair labor practice
4. Offenses under the Labor Code
5. Illegal recruitment – 5 years